Becker's ASC Review

19 HEALTHCARE NEWS 19 10 highest-paid healthcare CEOs By Kelly Gooch CEO compensation at S&P 500 companies reached a new record in 2023, according to findings from e Wall Street Journal. e Journal released its full annual analysis and ranking of S&P 500 CEO pay May 21. e outlet shared findings that the median total compensation for half of CEOs at those large companies reached at least $15.7 million in 2023, a record for the annual survey, with several making more than $50 million. In 2022, median pay, including equity awards and cash pay, for CEOs at the same companies was about $14.5 million, the outlet found through its analysis of data on more than 400 companies from MyLogIQ, a provider of public-company data and analysis. Most CEOs in the analysis received year-over-year raises of 9% or more. ere was little variance in relation to company performance — median total pay for CEOs running companies that recorded the worst returns relative to other companies in the same sector was $14.6 million. Median total pay for CEOs running the best-performing companies was $15.7 million. e pay increases in 2023 are primarily attributed to stock gains. e Journal article said, "Equity awards continued to make up the bulk of most executives' pay, much of it structured to deliver more stock or options if the company meets financial or share-price performance over several years." Of the 25 top-paid CEOs, eight lead tech companies, and among the 25 worst-performing companies in the Journal analysis, nearly a third operated in healthcare, including six pharmaceutical or biotech companies. Here are the 10 top-paid healthcare CEOs, according to the analysis: Note: ese are CEOs under the healthcare and equipment services category. Joseph Hogan, Align Technology Total pay: $28.95 million Peter Arduini, GE Healthcare Technologies Total pay: $24.51 million Andrew Witty, UnitedHealth Total pay: $23.53 million Robert Ford, Abbott Laboratories Total pay: $23.27 million Gail Boudreaux, Elevance Health Total pay: $21.89 million Karen Lynch, CVS Health Total pay: $21.62 million Joseph Zubretsky, Molina Healthcare Total pay: $21.49 million Samuel Hazen, HCA Healthcare Total pay: $21.32 million David Cordani, Cigna Total pay: $21.05 million Kevin Lobo, Stryker Total pay: $20.77 million n Health systems phase out common type of anesthesia By Erica Carbajal A growing number of health systems are moving to end the use of desflurane — a common anesthesia gas that lingers in the atmosphere for more than a decade. Already, Children's Hospital of Philadelphia and Marlton, N.J.-based Virtua Health have stopped using the gas, according to a May 7 report from The Philadelphia Inquirer. Virtua is increasingly moving away from all types of inhaled anesthetics and encouraging physicians to opt for IV- delivered drugs to limit greenhouse gas emissions further. Meanwhile, Radnor Township, Pa.-based Maine Line Health has cut back on its use of desflurane, and Philadelphia- based Penn Medicine has eliminated its use in four of its six hospitals, with plans to phase out the drug in its other two hospitals by the end of the year. Other systems that have taken the step in the past year include Pittsburgh-based UPMC and Vancouver, Wash.- based PeaceHealth. In the past, desflurane was the preferred anesthetic since the body clears it quickly and patients come to within minutes of the gas being turned off. Now, sevoflurane, another inhaled anesthesia, is considered the preferred option for most patients since it's less likely to cause nausea and is easier on patients' airways. It's also less taxing on the environment and known to hang in the air for just over a year. The healthcare sector is responsible for nearly 9% of carbon emissions in the U.S. Hospitals' efforts to reduce the use of desflurane reflect a relatively minor step in larger strategies to become more sustainable and environmentally friendly. Health systems are also focused on shifting to solar power and eliminating waste, which will ultimately translate into significant savings, leaders say. Penn Medicine anticipates it will save about $40,000 per year by eliminating desflurane at just one hospital. n

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