AHA responds to 'short sighted' article on hospital CEO pay

The Axios Vitals newsletter today published an AHA letter responding to its recent article by contributor Steven Brill on hospital CEO pay. “`Stay in a hospital, pay the CEO $56 a night,’ highlighting Steven Brill's short sighted attempt to correlate CEO compensation to patient days is both uninformed and unreliable,” writes AHA President and CEO Rick Pollack. “CEO compensation for tax exempt hospital system executives is determined by individuals with no conflict of interest and who are charged with protecting the best interest of the hospital system and the community it serves. Moreover, Brill's methodology of tying compensation to inpatient volume utterly fails to recognize that hospital systems are much more than the sum of their inpatient beds. Nationally outpatient volume is increasing more rapidly thanks to advances in medicine and technology that reduce the need for an inpatient stay. And hospital systems are complex institutions that typically include other skilled care facilities as well as community outposts to provide more convenient access to care in their communities. The unique challenges hospital and health system CEOs face and the complexity of their jobs and institutions should be reflected in their compensation. Recruiting, retaining and rewarding the most able leaders available is part of the hospital's obligation to the public it serves.”