Phoenix hospital CEO gets $85K raise despite criticism from board members

The CEO of a public and nonprofit safety-net health system in Phoenix will get an $85,000 raise despite objections from two board members who questioned if the increase was excessive, according to the Arizona Republic.

Under a new five-year contract effective Oct. 25, Steve Purves, CEO of Valleywise Health, will see his annual salary rise to $685,000. Mr. Purves could also receive a discretionary $171,250 performance bonus and is eligible for a $68,500 retention bonus on Oct. 25, 2020. In 2020, Mr. Purves' base pay will climb to $753,500, and by 2023 his base salary will be $872,191, according to the contract cited by the Arizona Republic.

The hospital's governing board approved the contract in a 3-2 vote. The two board members who voted against the contract raised concerns about its length as well as the rise in salary and bonuses. They questioned whether a raise of that magnitude was appropriate, given that the hospital has faced federal penalties for five consecutive years over patient injuries and infections. They also noted Valleywise Health anticipates a $3 million deficit this fiscal year.

But the three board members who supported the contract said it was necessary to ensure Mr. Purves remained at Valleywise Health. They argued the package is similar to other CEOs at comparable health systems. They also praised Mr. Purves for steering Valleywise's finances in a better direction, according to the Arizona Republic.

The final contract is $15,000 lower than one proposed in September. In that proposal, Mr. Purves would have received a $100,000 pay hike with a discretionary performance bonus of up to $175,000.

Read the full report here.

More articles on compensation:
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Loophole exposes faith-based hospital workers to pension uncertainty
BJC HealthCare to raise minimum wage

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