Amendment #608 to H4100

An Amendment limiting salaries of hospital administrators,

Representatives Webster of Pembroke, Humason of Westfield, Diehl of Whitman and Lombardo of Billerica moves to amend the bill by adding the following section:

Chapter 17 of the General Laws, as so appearing in the 2008 Official Edition and as amended by chapter 283 of the Acts of 2010, is hereby amended by inserting after section 18, the following section:—

Section 20. (a) Beginning January 1, 2013, the annual salary and compensation package of an administrator of a hospital licensed under chapter 111 may not exceed the annual salary of the governor. A hospital applying for a license or renewal of a license under chapter 111 on or after January 1, 2012 shall certify to the department that the salaries of the administrators of the hospital comply with the limitation imposed by this section.

(b)  Beginning January 1, 2013 the annual salary and compensation package of a chief executive officer at any hospital classified under chapter 111 as a non-profit hospital shall be based on the bed capacity of the institution and shall comply with the following scale:

(i)  <100 beds  $600,000

(ii)  <200 beds  $700,000

(iii) <300 beds  $800,000

(iv)  <400 beds              $900,000

(v)  <500 beds  $1,000,000

(vi)  <600 beds              $1,100,000

(vii) <700 beds              $1,200,000

Any member of a hospitals executive team cannot receive a salary and compensation package greater than 80% of the scale for chief executive officers. For the purposes of this section a compensation package includes deferred compensation, stock options, retirement benefits and insurance and any other remuneration not named.

Said hospitals applying for a license or renewal of a license under chapter 111 on or after January 1, 2013 shall certify to the department  that the salaries of the chief executive officers, chief financial officers, chief operating officers, vice presidents, directors and executive directors. of the hospital comply with the limitation imposed by this section.

These guidelines apply to all non-profit hospitals in the Commonwealth, even if the CEO is employed by an organization based out of state.