Hospital Execs Get Bonus While Cutting Staff Pay

I literally brought this issue up last week in the this blog entry. My concern was with a future bailout but this news item proves that didn’t need to happen:

On April 3, Denver Health CEO Robin Wittenstein emailed hospital workers noting “the current situation will stress us financially.”

She announced a hiring freeze and asked employees to voluntarily take leave without pay, use personal time off or reduce their normal work week.

“The goal is to reduce our total salary expense without the need to lay off employees or implement mandatory PTO/furloughs,” wrote Wittenstein.

She said the hospital was also considering mandating workers to use their paid time off, mandatory leave without pay and other steps.

“The goal is to avoid these extreme measures if at all possible,” she wrote.

One week later, on April 10, Wittenstein and her executive staff saw their 2019 Management Incentive Plan bonuses deposited into their bank accounts. They had been notified in late March that this would occur.

This may be the perfect example of HOW NOT TO LEAD! How much bonus did the admins get? From $50,000 up to $230,000. This was based on their 2019 work so that has to be taken into consideration, I guess.

Then we get this line from the CEO:

“We want to try to pay people fairly,” said Wittenstein. ”Those incentives are what keeps people at the midpoint of the compensation range,” she said, as compared to colleagues around the country.

She said without the bonus payments, Denver Health executives would be paid less than the average for their counterparts nationwide.

And now you know how their salaries and bonuses keep going up and up. They just keep trying to help each other out.

Your thoughts?

(Editor’s Note: See followup post here)

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161110cookie-checkHospital Execs Get Bonus While Cutting Staff Pay