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Should the salaries of the medical CEO be limited?

Should the salaries of the medical CEO be limited?


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Two Massachusetts legislators have filed invoices to reduce “excessive” executive compensation.

Should the salaries of the medical CEO be limited?

The corporate offices of the General Hospitals Brigham in Massachusetts from the Somerville Assembly Square. (Lane Turner/Globe staff)

General Mass Brigham (MGB) has launched the biggest dismissals in his history in the last two months due to a $ 250 million budget gap, stirring some physician and Boston legislators to request a ceiling for “excessive” executive compensation of medical assistance.

Two legislators in Worcester, Senator Michael Moore and representative James O’Day, submitted bills in the Chamber (H.1398) and the Senate (S.899), respectively, trying to put a ceiling on CEO payment in publicly financed hospitals, such as MGB.

Anne Klibanski, the executive director of the MGB, received more than 6 million dollars In the total compensation of 2022, according to the latest tax documents submitted by the non-profit health system.

On average, the heads of health care were made $ 11 million in the salary to take home in 2023, while the median was $ 4.1 million, according to a analysis CEO compensation by the statist state. These figures actually represent a low decrease in CEO of an average of $ 13 million and an average of $ 4.3 million in 2022.

“Even in a decreasing year, the CEO of median health care has made 51 times the median income of the American household,” the state found.

The two invoices, which were introduced at the end of February, would reduce the executive compensation of the medical assistance by no more than 50 times more than the “minimum compensation of the installation”, which the draft law defined as the salary received by a full-time employee who earns a minimum wage or if not, then the lowest employee.

The legislation does not stop there. It would also require a civil punishment to any CEO whose salary exceeds 50 times the minimum compensation of the installation. The punishment would be equal to the amount on which the payment of the CEO exceeds the ceiling.

Doctors and health workers in Boston were reinforced behind the legislation. Ciu/Seiu, the largest union representing the “house staff” (ie trainees, resident doctors) from all over the country, organized a “week of action” in Boston to draw attention to the legislation. The Union lobby for Bills Wednesday in front of the State House.

“We cannot afford the uncontrolled greed of the hospital directors to continue at the expense of patient care and the well-being of health workers,” said Dr. Madison Masters, a resident doctor General Brigham, in a press release. “It is time to put our patients first and ask our state legislator to take action.”

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Annie Jonas is a community writer at Boston.com. She was formerly a local editor at Patch and freelancer at the Financial Times.