Issue link: https://beckershealthcare.uberflip.com/i/674245
41 EXECUTIVE NOTES No Pay Raises for Community Health Systems CEO and CFO in 2016 By Ayla Ellison C ommunity Health Systems Chairman and CEO Wayne T. Smith and the Franklin, Tenn.-based sys- tem's CFO W. Larry Cash will see no change in their base salary in 2016. "In 2015, our performance fell below our financial targets, which significantly impacted the compensation paid to our CEO and CFO," said CHS in a recent Securities and Exchange Commission filing. Mr. Smith's base salary is again set at $1.6 million in 2016. His performance-based restricted stock grants will fall 68 percent from a value of $7.3 million in 2015 to $2.3 million in 2016. There was also no adjustment made to Mr. Cash's salary for 2016, which will remain at $850,000. CHS ended the final quarter of 2015 with a loss of $83 mil- lion, down from a profit of $100 million a year earlier. n Tenet CEO and CFO Compensation Slashed in 2015 By Ayla Ellison T enet Healthcare President and CEO Trevor Fetter and the Dallas-based system's CFO Daniel Cancel- mi experienced compensation cuts of 14.5 percent and 47.2 percent, respectively, in 2015. In 2015, Mr. Fetter received compensation of $15.4 million, down from nearly $18 million the year prior, according to a recent filing with the Securities and Exchange Commis- sion. Mr. Fetter's non-equity incentive plan compensation fell from $3.9 million in 2014 to $2.8 million in 2015. Mr. Cancelmi received compensation of $4.6 million last year, down from $8.8 million in 2014. His pension value and nonqualified deferred compensation earnings fell to $824,015 in 2014, a 64.4 percent drop from $2.3 million the year prior. n Health System Executives' Primary Concerns Shift to Consumers By Tamara Rosin W hile care transformation remains top of mind for hos- pital and health system executives, two of the four most commonly cited concerns relate to patients' non-clini- cal needs, such as meeting consumer expectations and patient en- gagement, according to e Advisory Board Company's Annual Health Care CEO Survey. Of the 209 C-suite executives who responded to the survey, nearly half — 47 percent — of executives indicated they were extremely interested in addressing the challenge of increasing consumer ex- pectations regarding healthcare services. Additionally, 45 percent said they were very interested in identifying patient engagement strategies — a four percentage point increase from e Advisory Board Company's 2015 survey. "Health systems are facing a push toward consumerization, fueled by more patient financial accountability, as well as the push to pop- ulation heath and managing the total cost of care," said Lisa Bielam- owicz, MD, CMO and executive director of research and insights at e Advisory Board Company. "Health systems are seeking strate- gies that bring together these potentially conflicting market forces." Here are the top five concerns for hospital and health system exec- utives in 2016, as indicated by survey responses. 1. Engaging physicians in minimizing clinical variation (53 percent) 2. Redesigning health system services for population health (52 percent) 3. Meeting rising consumer expectations for service (47 percent) 4. Patient engagement strategies (45 percent) 5. Controlling avoidable utilization (44 percent) Research from e Advisory Board Company found patient satis- faction can be significantly impacted when patients are provided with inaccurate price estimates. According to the survey, 31 per- cent of hospital and health system executives expressed extreme interest in addressing this issue and developing consumer-focused pricing strategies. n Wellness initiatives Prompted by the initiatives of their CEOs, these three organizations —Main Line Health, Desert Springs Hospital Medical Center and Temple University Health System — have taken steps to improve the health of their employees. In addition to removing sugar beverages from its vending machines and putting a smoking cessation program in place, Main Line Health opened a wellness garden, through which it ed- ucates children about healthy living habits. For Desert Springs, its weight loss center and Senior Advantage wellness program encourage overall wellbeing within the community. TUHS has a wellness program and a fully equipped gym for its employees. In an age where healthy living is more im- portant than ever, CEOs — especially health- care CEOs — must consider the impact their health has on their organizations, employees and professional lives. In the words of Mr. Lynch, "If you're not physically fit, you're like- ly not going to be mentally fit." n