Published: Thursday, September 24, 2009
Stevens Hospital chief given 3 percent raise
EDMONDS — Stevens Hospital chief executive Michael Carter has received a 3 percent pay raise, bringing his base salary up to $395,449.
The pay raise was approved by the taxpayer-supported hospital’s five-member board on Wednesday. Kimberly Cole was the only board member to vote against the pay raise.
“I don’t feel like giving a 3 percent raise was appropriate,” she said.
Cole said she also was not happy with the evaluation process.
The pay raise was announced following an executive session at the end of the board’s regularly monthly meeting.
In addition to annual pay increases, Carter is eligible for incentive pay. Earlier this year, Carter received an incentive payment of $103,666, awarded by the hospital board for meeting specific performance goals during 2008.
The hospital earned $5 million in overall profit last year, the best financial report for the hospital in 14 years.
Carter’s contract allows him to get as much as 30 percent more in incentive pay. Seven other top administrators can get up to 20 percent more.
The announcement of the pay raise came during a meeting in which hospital officials said that discussions are continuing with three area health care organizations about possible business partnerships or affiliations.
Board members have been discussing the hospital’s future for the past year, in part to help decide how to pay for needed improvements such as a new emergency room, or possibly even building a new hospital.
Without another business partner, voters probably would have to approve a tax increase to pay for the upgrades.
Among the options now under consideration by the board is whether to continue to operate as an independent, taxpayer- supported hospital; leasing or even selling the hospital to another organization; or entering into a business partnership with another organization.
The discussions come at a time when independent community hospitals increasingly are joining up with larger health-care organizations, both in the Puget Sound region and nationally.
Last week, an affiliation was announced between two Seattle medical groups, Northwest Hospital & Medical Center and UW Medicine.
Stevens Hospital officials say that confidentiality agreements prevent them from disclosing the organizations with whom they are talking.
More information on the discussions is expected in the next several weeks, board member Fred Langer said.
Langer said he felt the chances of coming to an agreement with another health-care organization are “better than 70 percent.”
Sharon Salyer: 425-339-3486; salyer@heraldnet.com.
The pay raise was approved by the taxpayer-supported hospital’s five-member board on Wednesday. Kimberly Cole was the only board member to vote against the pay raise.
“I don’t feel like giving a 3 percent raise was appropriate,” she said.
Cole said she also was not happy with the evaluation process.
The pay raise was announced following an executive session at the end of the board’s regularly monthly meeting.
In addition to annual pay increases, Carter is eligible for incentive pay. Earlier this year, Carter received an incentive payment of $103,666, awarded by the hospital board for meeting specific performance goals during 2008.
The hospital earned $5 million in overall profit last year, the best financial report for the hospital in 14 years.
Carter’s contract allows him to get as much as 30 percent more in incentive pay. Seven other top administrators can get up to 20 percent more.
The announcement of the pay raise came during a meeting in which hospital officials said that discussions are continuing with three area health care organizations about possible business partnerships or affiliations.
Board members have been discussing the hospital’s future for the past year, in part to help decide how to pay for needed improvements such as a new emergency room, or possibly even building a new hospital.
Without another business partner, voters probably would have to approve a tax increase to pay for the upgrades.
Among the options now under consideration by the board is whether to continue to operate as an independent, taxpayer- supported hospital; leasing or even selling the hospital to another organization; or entering into a business partnership with another organization.
The discussions come at a time when independent community hospitals increasingly are joining up with larger health-care organizations, both in the Puget Sound region and nationally.
Last week, an affiliation was announced between two Seattle medical groups, Northwest Hospital & Medical Center and UW Medicine.
Stevens Hospital officials say that confidentiality agreements prevent them from disclosing the organizations with whom they are talking.
More information on the discussions is expected in the next several weeks, board member Fred Langer said.
Langer said he felt the chances of coming to an agreement with another health-care organization are “better than 70 percent.”
Sharon Salyer: 425-339-3486; salyer@heraldnet.com.
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