Wednesday, May 28, 2014

Chasing CEO Talent in Healthcare: high costs of healthcare

Chasing CEO Talent in Healthcare: Is It Really About the Money? ::

This is an excellent 2012 article by Steven Lewis. Here is a snippet.

It certainly didn’t hurt the cause for the defence that the Canadian Centre for Policy Alternatives simultaneously
released its report on Canada’s 100 highest-paid CEOs. They average a cool $8.4 million per annum. On this SES gradient, the health of hospital CEOs is at considerable risk, because at $300,000 to about $1,000,000 all-in, they are in this league table depressingly blue-collar. That’s not good. According to a yet-unpublished randomized controlled trial, Ontario hospital CEOs who read the CCPA report developed an instant craving for fast food and began to smoke. The plaque is already forming in their arteries. The hierarchy, the hierarchy.

There is no definitively right amount to pay hospital CEOs. My solution: give them interesting work to do, pay them well, be suspicious of those only in it for status and money, and don’t worry if the odd one gets away. You don’t need every potential star to want your job; you just need one, who wants it for all the right reasons. Healthcare is public service motivated by the desire to do good works. We want it to be great and well led, but we do not want its motivations to reduce to the narrower imperatives of the private sector. Governments and boards should keep the distinction in mind when deciding on how and how much to pay their CEOs, and contemplating the consequences of their approach.

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