EDMONDS — Stevens Hospital’s chief executive Michael Carter is getting a bonus of $54,119 — extra pay for meeting specific performance goals last year.
The incentive pay is in addition to Carter’s base salary of $364,436, bringing his annual income to $418,555. The decision to give Carter extra pay was unanimously approved by the hospital’s five-member, publicly elected board of commissioners on Wednesday.
The goals were set by board members and included reducing the wait times for patients to be treated in the emergency room, increasing the overall financial stability of the hospital and improving employee morale.
“The board looked at things we felt were most important for 2007 to move us forward,” board president Deana Knutsen said. “I think Mr. Carter has done a good job of going after those goals.”
The additional money was awarded for “going above and beyond” in his efforts to improve the hospital, she said.
Carter also is eligible for an annual raise in June.
Carter was one of eight hospital administrators to receive incentive pay for meeting special goals last year.
Other employees were: Linda Christensen, chief operations officer, salary $165,000, incentive $17,463; Jack Kirkman, chief development officer, salary $215,000, incentive $25,030; Sarah Zabel, chief planning officer, salary $150,000, incentive, $19,050; Steve Losleben, human resources, salary, $126,000, incentive, $6,668; Polly Poole, vice president, support, salary $150,000, incentive $19,050; Gary Wangsmo, chief financial officer, salary $227,000, incentive $28,829; and Dr. Tim Roddy, chief medical officer, salary for part-time $54,621, incentive, $5,336.
Last month, board members approved a 2008 incentive pay plan for Carter, which allows him to earn a maximum of 30 percent more in pay for meeting performance standards. Based on his current salary, that would mean as much as $109,330 in extra pay. Any incentive pay would be paid out next year.
The action on Carter’s 2007 incentive pay came during a meeting in which several people complained that the hospital needs to improve its communication with the public.
John Quast of Edmonds said that he has tried for six months to learn more about the hospital’s strengths and weaknesses.
“How does Stevens compare with other hospitals in the area, in a variety of ways?” he asked.
Quast said he also wanted more information on the hospital, such as financial reports, auditor’s reports and quarterly reports, and contact information for each board member posted on the hospital’s Web site.
“That’s not access,” he said of what’s currently available. “Where’s the public input?”
The hospital board welcomes community input, Knutsen said. “Now, having said that, clearly the public has not gotten that message from us.”
Earlier this month, the hospital was 13 points below state averages on overall patient satisfaction, as measured by a recent survey. It was 12 points below the state average on whether patients would recommend the hospital to someone else.
Hospital officials noted that on earlier tests of performance, the hospital scored well on a separate check on the quality of its medical care, such as caring for heart attack patients. They also predicted that their patient satisfaction scores would improve when results of another survey are released later this summer.
Hospital officials said the most recent auditor’s report, conducted by KPMG, will be posted on its Web site.
The hospital ended the year with a $1.438 million operating loss, due in part to the settlement of a lawsuit, which required the hospital to pay $1.35 million to Cytolab Pathology Services, a Lynnwood pathology lab, to end a two-year legal dispute regarding the lab’s contract.
However, with bond and levy money from taxpayers, the hospital ended the year with an overall profit of $2.442 million.
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