An article in the Spring 2012 issue of Inquiry Magazine (pdf) posed the question: Is compensating non-profit healthcare board members the right path, or is it equivalent to a minefield?
Last year, Massachusetts Attorney General Martha Coakley challenged the appropriateness of the compensation practices of the state's four major non-profit health insurers. A Governance Institute survey also found that 15 percent of non-profit hospitals and health systems said at least some of their board members are currently compensation, which is up from 10 percent in 2009.
In a roundtable discussion in Inquiry, several healthcare leaders gave their thoughts on when, if at all, it is appropriate to compensate board members of non-profit healthcare institutions.
Bill Kreykes, former board chair of the Novi, Mich.-based Trinity Health System and retired president and CEO of Providence, R.I.-based Lifespan, said compensation for non-profit healthcare board members depends on the size and nature of the organization. For example, he said it could be appropriate for a large healthcare system with many hospitals across the country and a board that requires a national search to compensate board members.
Mike Cascone, retired president and CEO of Blue Cross Blue Shield of Florida, said he is "not generally supportive of board compensation," except in instances where certain talent is required on the board but is not readily available on a volunteer basis.
Last year, Massachusetts Attorney General Martha Coakley challenged the appropriateness of the compensation practices of the state's four major non-profit health insurers. A Governance Institute survey also found that 15 percent of non-profit hospitals and health systems said at least some of their board members are currently compensation, which is up from 10 percent in 2009.
In a roundtable discussion in Inquiry, several healthcare leaders gave their thoughts on when, if at all, it is appropriate to compensate board members of non-profit healthcare institutions.
Bill Kreykes, former board chair of the Novi, Mich.-based Trinity Health System and retired president and CEO of Providence, R.I.-based Lifespan, said compensation for non-profit healthcare board members depends on the size and nature of the organization. For example, he said it could be appropriate for a large healthcare system with many hospitals across the country and a board that requires a national search to compensate board members.
Mike Cascone, retired president and CEO of Blue Cross Blue Shield of Florida, said he is "not generally supportive of board compensation," except in instances where certain talent is required on the board but is not readily available on a volunteer basis.
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