LA Voters Set to Decide Whether to Cap Hospital Executive Compensation

Those crazy left coast meddling California kids are at it again.  This time they are taking health care executive compensation into their own hands.  In Los Angeles, a ballot proposal (reprinted below) would limit hospital executive compensation to no more than the salary paid to President Biden, Trump, DeSantis, Christie, Pence, Haley, Hutchinson, Elder, Scott, or Ramaswamy (as the case may be).  Voters will decide next spring.  You can read the LA City Attorney’s summary of the proposal here.  Here is some reporting from the LA Times:

Los Angeles voters will decide next spring whether to clamp down on pay for hospital executives, capping their total wages and other compensation at $450,000 annually, after the Los Angeles City Council voted Wednesday to put the proposed measure on the March 2024 ballot.  The L.A. ballot measure is backed by a union representing healthcare workers, which argues pay for hospital executives has been excessive and out of line with the mission of providing affordable care.

SEIU-United Healthcare Workers West contends that hospital executives should not be making any more than the total compensation of the president of the United States, which the ballot measure states is currently $450,000.  “Health care executives receive lavish, million-dollar salaries far above the wages of health care workers, and patients struggle to afford basic care. The current compensation structure incentivizes wealthy executives to keep the system the same,” SEIU-UHW spokesperson Renée Saldaña said in a statement. “Excessive executive compensation diverts funds to a small group of individuals that could be invested in expanding access to high-quality, affordable care for everyone.”

The Hospital Assn. of Southern California called the proposal “deeply flawed” and argued that it would make it harder for Los Angeles hospitals to recruit and retain top talent, who would instead opt to work at healthcare facilities in other cities. That would “ultimately compromise the quality and affordability of health care in the city,” the association wrote to the council. 

Here is what a bunch of panicking hospitals said in opposition to the ballot initiative:

We firmly believe this measure would create significant disadvantages for local communities and ultimately compromise the quality and affordability of health care in the city. Qualified health care leaders oversee extremely complex organizations. These entities are responsible for caring for patients and communities 24/7; recruiting and leading hundreds — even thousands — of health care experts, including doctors, nurses and other health care workers; investing in appropriate technology and facilities; coordinating with other providers; negotiating with insurance companies; and ensuring that high-quality care is provided.

I wish I had some Constitutional Law chops because this doesn’t seem right;  a restraint on interstate commerce or something.  Anyway, here is the ballot proposal:

darryll k. jones