Arizona voters may get a say in capping the salaries of hospital executives.
Petitions containing more than 281,000 signatures were submitted last Thursday to the Secretary of State's office to limit the total compensation for any hospital executive, manager or administrator to no more than what the President of the United States is paid— currently, $450,000 a year.
Only about 150,000 of those signatures need to be determined as valid to put the issue on the November ballot. The measure drew an expected sharp reaction from Matt Benson of the Arizona Hospital and Healthcare Association who said there's a link between the salaries of hospital execs and quality of care.
"If we're going to have outside interests setting arbitrary caps on what hospital leaders and executives can be paid, it's going to hamper the ability of these hospitals to recruit the best people," Benson said.
The initiative specifically exempts the salaries of medical professionals like surgeons. But Benson insisted that having the right people at the top also matters.
"We're talking about the salary of the people who are leading these institutions, who are determining how they grow and whether they're successful or not," he said.
Steve Trossman, spokesman for the Service Employees International Union which represents hospital workers, disagreed— "I don't think patients die because an executive doesn't move paper across their desk enough," he said. "I think patients die because they're sick. I don't think these guys should be making two and three times what skilled surgeons make. Those are the people who save lives.
And Trossman said voter intervention on hospital salaries is appropriate. He said most are non-profit organizations with tax breaks. And more than half their dollars come from the public through Medicare and Medicaid funds.