| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 8:27 pm |
ADVERTISEMENT |
|||||||||
 |
||||||||||
|
||||||||||
|
||||||||||
|
|
||||||||||
|
|
||||||||||
Local News 
|
|||||||||
Stevens Hospital incentive pay for exec questioned The base pay that Stevens Hospital’s chief executive Mike Carter received last year — $383,900 — is near the median, maybe a little below what other people in similar positions are paid, according to a state audit.But the expectations set for Carter to receive incentive pay bonuses may not be challenging enough, according to the report — a point disputed by hospital officials. These findings were included in a performance audit by the state Auditor’s Office of Stevens Hospital. These reviews of the overall performance of government organizations, conducted by the auditor, are required under Initiative 900, passed in 2005. This report included findings on Washington’s three largest taxpayer-supported hospitals: Evergreen Healthcare in Kirkland, Valley Medical Center in Renton and Stevens Hospital in Edmonds. Part of the report dealt with chief executive compensation. In September, Carter received a pay raise bringing his base salary up to $395,449. In addition, Carter’s contract allows him to get as much as 30 percent more in incentive pay for meeting specific goals. For example, in March, he received $103,666 for meeting goals set last year, the same year the hospital earned $5 million in overall profit. That ranked as the best financial report from the taxpayer-supported hospital in 14 years. Seven other top administrators also received extra pay for helping the hospital meet financial and other organizational goals. It was Carter’s incentive pay that came in for some criticism in the auditor’s report. “Organizations should balance the relationship between performance levels and awards,” the report states, so that the money paid out reflects the degree of difficulty in achieving the goals. Since Carter was graded as reaching maximum performance levels for seven of eight goals last year, the hospital “may be making near-maximum payouts for performance that is not truly challenging,” it says. Rick Canning, the hospital’s chief financial officer, said the comment came in part from comparing incentive goals from last year and this year. The goals for 2009 were drawn up last year as the stock market fell and the economy was in decline, he said. For these reasons, they set conservative goals this year for the hospital’s cash on hand – one measure of financial stability. Cash on hand is the amount of money the hospital could use to operate in an emergency with no incoming money. So the goal for both last year and this year was the same – 40 days, he said. Canning estimated that Carter’s incentive pay for this year’s performance will be smaller, about $59,000. The report also took a look at staffing levels, particularly the amount of money spent for temporary fill-in workers, including nurses. The hospital could save $3.1 million over five years by reducing the amount of outside temporary nurses it hires, according to the report. Canning warned, however, that tight staffing levels could lead to staff shortages. “That has to be looked at very, very carefully,” he said. It’s not clear that the hospital could reduce its temporary staffing levels to the degree suggested in the report, he added. Sharon Salyer: 425-339-3486 or salyer@heraldnet.com. |
- A revolutionary 747
- Fire breaks out at Everett car dealer
- Everett rethinks boutique wineries
- A tidy lawn could be law in Lynnwood
- Snohomish County's bargain housing won't last
- Boeing's 747-8 takes off after weather delay
- Plan for I-5 closures this week
- A new bowling alley for Monroe?
- Lake Stevens man homeless after fire
- I-5 bridge joint may give you a jolt, but it isn't damaged
- Vote on school levies by Tuesday
(11) - A tidy lawn could be law in Lynnwood (10)
- State Senate votes to toss I-960's tax-raising hurdle (8)
- Lynnwood sets height limit on grass: 8 inches (6)
- Everett rethinks boutique wineries (5)
- Everett police officers cleared in 2008 shooting death (5)
- 1949 travel aid shows how few places blacks were welcome in Washington (4)
- I-5 bridge joint may give you a jolt, but it isn't damaged (4)
- A new bowling alley for Monroe? (3)
- Three politicians who want Gregoire's job in 2012 (3)
- Edmonds educator, famous announcer dies
- Mill Creek to appeal ruling on annexation
- Through the air, with the greatest of ease
- E-W thriving under new coach
- The path to citizenship
- EUUC puts on ‘Pants & Shoes’
- Wolfpack wins the ‘Battle'
- Lynnwood’s annexation plans OK’d
- Arlington's Cascade Valley Hospital celebrates expansion, national award and 100 years of service
- Business Licences Feb. 2010
- Technology tips for launching your own business
- Business Events Feb. 2010
- Tech Talk: No excuse today for going without a Web site
- State already raising fees and rates that restrict business growth
- Some legislators again targeting people’s initiative petition rights
|
 
|
|
|
|
| TODAY'S TOP JOBS |
| View All Top Jobs |
| Top Cars |
|
| Top Homes |
|
|
ADVERTISEMENT |
|
|
|Contact Us
|Advertiser Services
|Home Delivery
|Newsstand Locations
|Classifieds
|Feedback
|About the Company
|Work@the Herald
|Site Map |
|
COMMENTS | Be the first to comment
Log in or register to post a new comment.
To read other terms and conditions, click here