An article discussing the CEO salaries of Midwest hospitals was interesting to me for several reasons. In the article Nonprofit hospital CEO salaries in the Midwest: Who’s on top?. Randall O’Donnell who is the CEO at Children’s Mercy Hospital and Clinics; Kansas City, Missouri, makes a cool $6 million a year.
That’s a $6 million salary at an organization that is nonprofit. The organization may be called a nonprofit, but the CEO certainly ain’t going hungry.
First I thought:
- “I could do it for $3 million.”
Then I thought:
- “What on earth do people do with a $6 million annual salary?”
And finally I thought:
- “How many nurses could they hire if they their CEOs made a measly $1 million a year?”
- So let’s examine the scenario of the CEO taking a pay cut and getting a pitiful $1 million annual salary.
- How many nurses could that hospital employ for 1 year on $5 million?
- According to indeed.com
- . Simply Hired puts it at
- And according to ehow.com, in 2009 the
- So lets pick the median of the 3, and go with $55,150.
How many nurses with a salary of $55,150 annually could be hired for $5 million?
$5,000,000 divided by $55,150 is 90.67.
At least 90 nurses could feed their family and help to provide better patient care if the hospital CEO didn’t need to $6 million annually to stay put.
Here are the rest of the salaries reported in the article.
- Randall O’Donnell; Children’s Mercy Hospital and Clinics; Kansas City, Missouri: $6 million
- Javon Bea; Mercy Health System; Janesville, Wisconsin: $4.5 million
- James Skogsbergh; Advocate Health Care; Oak Brook, Illinois: $4 million
- Dean Harrison; Northwestern Memorial Hospital; Chicago, Illinois: $3.4 million
- Richard Pettingill; Allina Health System; Minneapolis, Minnesota: $3.3 million
- Joseph Swedish; Trinity Health; Novi, Michigan: $2.7 million
- Lowell Kruse; Heartland Regional Medical Center; St. Joseph, Missouri: $2.5 million
- Steven Lipstein; BJC Health System; St. Louis, Missouri: $2.2 million
- Kevin Schoeplein; OSF Healthcare System; Peoria, Illinois: $2.2 million
- Thomas Sieber; Genesis Healthcare System; Zanesville, Ohio: $2.1 million
- Paul Pawlak; Silver Cross Hospital; Joliet, Illinois: $2 million
- Toby Cosgrove; Cleveland Clinic; Cleveland, Ohio: $1.9 million
- William Petasnick; Froedtert Memorial Hospital; Milwaukee, Wisconsin: $1.9 million
- Fred Manchur; Kettering Medical Center; Dayton, Ohio: $1.9 million
- Patrick Magnon; Children’s Memorial Hospital; Chicago, Illinois: $1.8 million
- Kenneth Hanover; University Hospital; Cincinnati, Ohio: $1.8 million
- J. Luke McGuinness; Central Dupage Hospital; Winfield, Illinois: $1.8 million
- Daniel Evans Jr.; Clarian Health Partners; Indianapolis, Indiana: $1.8 million
- James Madera; University of Chicago Medical Center; Chicago, Illinois: $1.8 million
- James Anderson; Cincinnati Children’s Hospital Medical Center; Cincinnati, Ohio: $1.8 million
Let us not forget that nonprofits usually receive sizeable donations to help fund their facilities. And of course they eagerly accept them. But $6 million a year for a CEO responsible for running a hospital? Really?
Personally, I think $6 million could be use much more responsibly to run a hospital.