A bill proposed by Connecticut Gov. Dannel Malloy (D) concerning transparency of executive pay in certain hospital transactions has been approved by the state legislature's public health committee, according to a Hartford Courant report.
The bill, Senate Bill 954, would require nonprofit hospitals to disclose their potential financial gain if the institution is purchased or converted to a for-profit facility, according to the report.
"If some senior executive or hospital president stands to make a lot of money as a result of a conversion...I just think that's just part of the equations,'' state Sen. Ted Kennedy Jr. (D) said in the report. "I'm not against paying people money they deserve. I just think we as a state have the right to know if that's the case."
Although the public health committee approved the bill some questions were raised by Republican lawmakers.
For instance, Rep. Eric Berthel (R) questioned the need for the legislation since, he said in the report, nonprofit hospitals are already required to disclose salary information when they file their federal tax returns. And Rep. Jason Perillo (R) questioned how the information would be used after it is put together, asking, "Do we expect that the attorney general's office is going to deny...these mergers and acquisitions because people are making too much money?" the report reads.
The bill, which will continue through the legislative process, would take effect on July 1.
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