Issue link: https://beckershealthcare.uberflip.com/i/1500044
8 CFO / FINANCE Executive pay at Tenet, HCA and CHS: 5 things to know By Alexis Kayser Executive pay cuts marked 2022 at three of the nation's largest for- profit health systems. Five things to know about executive pay at HCA Healthcare (Nashville, Tenn.), Tenet Healthcare (Dallas) and Community Health Systems (Franklin, Tenn.): 1. HCA's newest executive, Michael McAlevey, was one of its highest paid. Mr. McAlevey, the system's new senior vice president and chief legal officer, brought home $6.5 million in total compensation in 2022. All other named executives took a pay cut, including Jon Foster, who was promoted from president of the health system's American group to enterprise chief operating officer on Jan. 1, 2023 and saw his pay decrease $1.9 million in 2022. 2. ree CHS executives, including its CEO and CFO, took home less total pay in 2022 than 2020. However, both were approved for base salary increases and stock incentives in 2023. 3. Tenet's highest earning executive in 2022 was Former Executive Chairman Ron Rittenmeyer, who retired in October and died 10 days later. Mr. Rittenmeyer was the only Tenet executive who made more in 2022 than 2021, receiving $24.3 million in total compensation. 4. All three health systems saw their profits drop from 2022 to 2021. Tenet's dropped $505 million, while CHS' dipped $189 million. HCA's profit fell by $1.32 billion. 5. All three health systems' CEOs and CFOs saw their total compensation decrease in 2022. Here's how much they took home in 2022 — and how much that number declined from 2021. n Fight unfolds over measure to cap pay of LA hospital executives By Molly Gamble A Los Angeles ballot measure backed by SEIU- United Healthcare Workers West would cap pay for hospital executives at the compensation of the U.S. president, or $450,000 per year. The California Hospital Association is challenging the measure, arguing that the president earns more. The proposed limitation would apply to any executive, manager or administrator at privately owned hospitals in Los Angeles, as well as skilled nursing facilities, residential care facilities and all facilities within integrated health systems. The $450,000 cap is inclusive of all compensation, including salary, paid time off, bonuses, incentive payments and lump-sum cash payments. Federal code states that the president is paid $400,000 annually with an expense allowance of $50,000. "The compensation paid to chief executive officers, executives, managers, and administrators of hospitals and other healthcare facilities is often excessive, unnecessary, and inconsistent with the mission of providing high- quality, affordable medical care for all," the measure states, arguing that $450,000 per year in compensation will leave city hospitals "more than able to attract and retain effective executive leadership." The California Hospital Association has filed suit challenging the measure, arguing that the U.S. president earns more than $450,000 per year when travel expenses, discretionary funds and residence in the White House are factored in, according to the Los Angeles Times. The hospital association cited calculations by a consultant who concluded that the total compensation tops $1.2 million. The alleged numerical mismatch means the ballot measure petition contained "calculated untruths" that misled voters who were asked to sign it, the CHA argues. It is calling for the courts to block the initiative from appearing on the ballot. A court hearing is scheduled for April 4. Supporters of the ballot measure have called the CHA's counter-calculation a "tortured explanation" in a court filing, according to the Los Angeles Times. This isn't the first time SEIU-United Healthcare Workers West has moved to cap Los Angeles hospital executives' pay. The union has proposed and abandoned a similar measure but at the state level in the past, and in 2019, it proposed the same ballot measure for the November 2020 election. n HCA Tenet CHS CEO $14.6 million (-6 million from 2021) Samuel Hazen $11 million (-10.1 million) Saum Sutaria, MD $6.3 million (-3.2 million) Tim Hingtgen CFO $5.1 million (-2.1 million from 2021) William Rutherford $3.6 million (-1.7 million) Dan Cancelmi $4.2 million (-5.8 million) Kevin Hammons