After the Los Angeles City Council voted Wednesday to put the bill on the ballot in March 2024, Los Angeles voters will tighten salaries for hospital executives next spring, cutting wages and other compensation totals to $450,000 a year. will decide whether to limit it to

The LA ballot is backed by unions representing health care workers, who argue that hospital executives are overpaid and deviate from their mission to provide affordable health care.

SEIU-United Health Care Workers West argues that hospital executives should not receive more than $450,000 in the total compensation of the President of the United States currently on the ballot.

“Medical executives receive lavish salaries of millions of dollars that far exceed what medical workers earn, yet patients struggle to obtain basic care. We encourage management to maintain the scheme,” SEIU-UHW spokeswoman Renee Saldanha said in a statement. “Excessive executive compensation diverts funds to a small number of individuals who can invest in expanding quality and affordable care for all.”

The Hospital Association of Southern California said the proposal was “majorly flawed.” claimed That would make it harder for Los Angeles hospitals to recruit and retain top talent, and they would instead choose to work at medical facilities in other cities, he said.

It “ultimately undermines the quality and affordability of health care in the city,” the association wrote to parliament.

Jan Emerson Shea, vice president of public affairs for the California Hospital Association, said the move “does nothing to reduce health care costs or improve the quality of care in our communities.” “On the contrary, it will only make it more difficult to recruit qualified hospital leaders, such as doctors and nurse leaders.”

After supporters of the bill successfully gathered enough signatures, city council members had the option of putting the proposal on the ballot or adopting it as is. The City Council voted 10-0 to put the proposal on a voter-determined ballot, and City Councilman John Lee resigned from West Hills Hospital’s board of directors.

Earlier this year, the California Hospital Association said voters were misled because the total compensation for the President of the United States far exceeded the $450,000 proposed by the SEIU-UHW, due to various additional benefits and entitlements. Attempts to stop this action in court were unsuccessful. In April, a judge overruled the association and allowed the action to move forward.

was suggested measurement This caps executive compensation for various executives, including CEOs, chief financial officers, vice presidents and administrators of private hospitals and affiliated clinics, skilled nursing homes and senior housing facilities in the City of Los Angeles. will be

This cap does not apply to medical professionals whose “primary duties” are to provide medical services or provide direct care to patients.

If hospital officials receive more than the annual limit, they must return the amount plus interest. Violations of the law are subject to fines of up to $1,000 per violation, and each day the violation occurs or continues counts as a separate violation.

The annual cap applies not only to wages, but also to a variety of compensation for Los Angeles hospital executives, including paid time off, bonuses, travel expenses, housing benefits, stock options and severance pay.

SEIU-UHW said at least 22 executives would be affected by the measure. However, this figure could be higher because the analysis of public information did not include for-profit hospitals. Similar measures are underway in the cities of Chula Vista and La Mesa, Saldanha said.

The union has previously pushed for salary caps for hospital executives, including a statewide ballot measure that was scrapped after the SEIU-UHW reached an agreement with the hospital nine years ago. .

Featured paid package surpass $ 1,000,000 Annual top executive awards for hospital and health system executives such as Cedars-Sinai. $6 million or more In recent years, he has received compensation through medical centers and related organizations, according to tax returns.

Cedars-Sinai said in a statement that setting executive compensation includes “external independent expert evaluation” and that, if the vote is passed, “the clinical, academic and managerial contributions that have made the company grow”. We will not be able to recruit or retain leaders from It is a world-renowned academic medical center. “

The latest proposal to curb executive pay comes as the hospital industry seeks to sidestep the SEIU-UHW-backed $25 an hour wage policy for healthcare workers. After hospital groups successfully pushed the referendum, the union-backed LA bill was put on hold.

We’ve fought California Hospital Association state bills, SB525This will raise wages to at least $25 an hour in the next few years for workers in a variety of health care facilities and institutions, including hospitals, skilled nursing homes, clinics and home health services.