Outrageous Fortune of Healthcare CEO's

Vsummer1 · Aug 22, 2002

Originally posted by -jt
My state assemblyman made a good point in response to a similar discussion as your doctors. He said the difference is that CEOs in private industry are paid with the REVENUE of the company. That is private funding. But every hospital that accepts medicare or medicaide pts is funded in part with public funds from the government. (taxpayer dollars) Even the for- profit hospitals receive public funding.

As bad as it seems, you have to remember that the CEO's will work where the money is. You want a good CEO you have to pay a market rate, whether public or private.

Don't get me wrong, I think they are ALL overpaid and I even almost hate defending the buggers, but... you want good leadership you gotta pay for it.

-jt · Aug 22, 2002

EXACTLY! And thats what they told us at one hospital when we asked them to justify their outrageous million dollar salaries & perks (which were obtained thru the freedom of information act & posted here a few months ago) at a time when they were refusing to discuss making improvements to attract & keep RNs...

They said "well theres a shortage of healthcare administrators - we have to offer top dollar to attract & keep the best CEO & leadership". Our immediate response: "sooooooo you DO understand the concept of attractive recruitment & retention incentives. Now apply that to your nurses."

But they still refused & the RNs had a 4 month strike to get it.

If the administrators understand the need to boost their own salary & perks in order to find & keep quality administrators, why wont they apply the same prinicple to finding & keeping quality nursing staff? I fail to see the difference.

Whats good for the gander should be good for the goose.

Sleepyeyes · Aug 22, 2002

this is exactly why I refuse to hear them say they can't "afford" to pay nurses better.

It's a crock.

Home Health Columnist / Guide · Aug 22, 2002

AMEN JT!

rncountry · Aug 22, 2002

Ahh, Karen, I should have asked you for a copy of this article a while back. I had taken my copy of that issue of Revolution in to work, left it on the table on the breakroom and it mysteriously disappeared. First I thought one of my coworkers had taken it home to read and that I would get it back, that's happened before. After a week though I posted in the breakroom for whoever had my magazine would they please drop it in my mailbox as it had an article I wanted to be sure and keep. This article. Still nothing. 3 days later my note was down, so I posted it again. Next day it was down, so I went to my nurse manager and as much as I like my actual job, I dislike her. Asked her about it, and while she attempted to play the innocent, she did it quite poorly. So now when I want to share something with my coworkers I copy it and then lay it on the breakroom table. I'm quite delighted to now have a copy of the article I wanted. Don't think you could find the full study that is quoted in the recent Revolution in which it shows that US government is already paying 60% of healthcare costs could you? I have looked but must not be using the right keywords, because I can't find it. You seem to be able to find everything.

Thanks

Home Health Columnist / Guide · Aug 23, 2002

Helen:

Are there any sources listed to article?

Couldn't find 60% figure quote. DID find federal info pie chart listing federal spending= 45% healthcare.

The Nation's Health Dollar: 2000-Where it came from,Where it went

Link for 2000 breakdown of costs + projections

Look in yellow box at these article; click "Health accounts" for more info.

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Similar Articles of Interest

The US Health Care System: Best in the World, or Just the Most Expensive

http://dll.umaine.edu/ble/U.S.%20HCweb.pdf

"Healthcare Economics: A View into the Future"

http://www.clovercap.com/pdf/letters/49.pdf

Data and reports available on the website at

http://www.aoa.dhhs.gov

http://www.hcfa.gov/stats/NHE-Proj

Many healthcare reports listed at CNA website:

http://www.calnurse.org/hreports/

VickyRN, MSN, DNP, RN · Aug 23, 2002

As bad as it seems, you have to remember that the CEO's will work where the money is. You want a good CEO you have to pay a market rate, whether public or private.

Good CEO, what is that? An oxymoron, haven't ever seen such an animal. The average nurse off the floor has more common sense, business acumen, compassion, and would be able to provide better healthcare leadership than all of the CFO's, CEO's, CNO's together that I have seen. I say get rid of all of them.

sjoe · Aug 23, 2002

Well, Vicky, you could make that suggestion to the board of directors, since they are the people who hire the titles to run the operation. If you truly have a better idea for restructuring, they would no doubt be willing to hear it. Or read it.

Simplepleasures · Feb 17, 2007

UKRNinUSA: You mean that grocery stores should not profit from selling food to people who would otherwise be miserably hungry? If so, they would soon go out of business. And utility companies should not profit from selling electricity or gas to people who would otherwise be miserably cold? If so, why would they bother to do so? And I suppose none of us should accept a salary for providing healthcare services to people who would otherwise be miserable? If so, would YOU show up for work? Neither would I.

OLD POST ALERT!!But I wanted to bring it back to prove a point, 5 years ago this was bad, look how much worse it has gotton , if nothing is done where will it end? As for the person in quotes, the government has stepped in when price gougeing has occured.Runaway profits due to greed may well be the end of private healthcare .

Simplepleasures · Feb 17, 2007

Do any of you think that one day this system will just implode?

The implosion has begun.

Ado Annie, ASN, RN · Feb 18, 2007

As bad as it seems, you have to remember that the CEO's will work where the money is. You want a good CEO you have to pay a market rate, whether public or private.
Don't get me wrong, I think they are ALL overpaid and I even almost hate defending the buggers, but... you want good leadership you gotta pay for it.

I've heard that one before, since of course this discussion doesn't take place only amoung healthcare employees! But I would argue that their pay should be tied to performance. And PART of that performance should be how well managed the place really is -- not just how the stockmarket reacts. Pres. Bush almost said it the other day, but he said to tie it to the "value to the stakeholders" -- and there's so much more to performance than that. I work for an automotive supplier, so I would say that true success would be figuring out how to make profits, please the stockholders, AND keep manufacturing jobs in the US.