A $1 Million Cap on a Nonprofit Hospital CEOs Salary Could Mean 90 More Nurses on Staff

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imageAn 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

the average nurses annual salary is $65,000 a year in Kansas City, MO

    . Simply Hired puts it at

$49,000 average annual salary for a registered nurse.

    And according to ehow.com, in 2009 the

average registered nurse salary in Missouri  was $55,150

    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.

  1. Randall O’Donnell; Children’s Mercy Hospital and Clinics; Kansas City, Missouri: $6 million
  2. Javon Bea; Mercy Health System; Janesville, Wisconsin: $4.5 million
  3. James Skogsbergh; Advocate Health Care; Oak Brook, Illinois: $4 million
  4. Dean Harrison; Northwestern Memorial Hospital; Chicago, Illinois: $3.4 million
  5. Richard Pettingill; Allina Health System; Minneapolis, Minnesota: $3.3 million
  6. Joseph Swedish; Trinity Health; Novi, Michigan: $2.7 million
  7. Lowell Kruse; Heartland Regional Medical Center; St. Joseph, Missouri: $2.5 million
  8. Steven Lipstein; BJC Health System; St. Louis, Missouri: $2.2 million
  9. Kevin Schoeplein; OSF Healthcare System; Peoria, Illinois: $2.2 million
  10. Thomas Sieber; Genesis Healthcare System; Zanesville, Ohio: $2.1 million
  11. Paul Pawlak; Silver Cross Hospital; Joliet, Illinois: $2 million
  12. Toby Cosgrove; Cleveland Clinic; Cleveland, Ohio: $1.9 million
  13. William Petasnick; Froedtert Memorial Hospital; Milwaukee, Wisconsin: $1.9 million
  14. Fred Manchur; Kettering Medical Center; Dayton, Ohio: $1.9 million
  15. Patrick Magnon; Children’s Memorial Hospital; Chicago, Illinois: $1.8 million
  16. Kenneth Hanover; University Hospital; Cincinnati, Ohio: $1.8 million
  17. J. Luke McGuinness; Central Dupage Hospital; Winfield, Illinois: $1.8 million
  18. Daniel Evans Jr.; Clarian Health Partners; Indianapolis, Indiana: $1.8 million
  19. James Madera; University of Chicago Medical Center; Chicago, Illinois: $1.8 million
  20. James Anderson; Cincinnati Children’s Hospital Medical Center; Cincinnati, Ohio: $1.8 million

Via Medcity News: Nonprofit hospital CEO salaries in the Midwest: Who’s on top?

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.


Where do you think the money should be spent in nonprofits? CEO pockets or on more nurses to better staff the units?

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