Union looking to cap hospital executive pay in California: 4 things to know

Service Employees International Union-United Healthcare Workers West, a statewide union of the Service Employees International Union in California, has revived a ballot measure targeting executive pay at hospitals, according to a Sacramento Business Journal report.

Here are four things to know about the ballot measure.

1. The proposed initiative was submitted to the state Friday.

2. It would cap compensation packages for executives, administrators and managers at nonprofit hospitals, hospital groups and affiliated medical entities in California at $450,000 per year, according to the report.

3. The union's move to revive a ballot measure targeting hospital executive pay comes more than one year after the union dropped a similar measure. The measure was dropped when the union signed a partnership agreement with the California Hospital Association to resolve differences and work on a joint campaign to fix Medi-Cal, California's Medicaid welfare program, according to the Sacramento Business Journal. Both parties also have a labor management agreement in place.

4. The CHA has come out against the union's move. "Artificially imposing a cap on compensation will result in a loss of qualified executives and undermine the ability of hospitals to meet the challenges ahead," association CEO Duane Dauner said in a news release, according to the report.

 

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