Should LA Hospitals Limit Executive Salaries? Voters Will Decide Next Year

In March, L.A. City voters will decide whether or not compensation for health care executives should be limited to $450,000 a year. The L.A. City Council cleared the way for a related ballot measure on Wednesday.

“Excessive compensation diverts funds that could be invested in providing high-quality care and expanding access to affordable medical care for all city residents, undermining public confidence that the chief concern of our major healthcare providers is serving the community, not enriching individuals,” the proposed initiative reads.

According to Renée Saldaña, press secretary for SEIU-United Healthcare Workers West, which put forth the initiative petition in February, the proposed ordinance could affect at least 22 executives at non-profit organizations in L.A.

“Many healthcare workers here in the city of Los Angeles are receiving less than $25 an hour, yet at the same time, healthcare executive salaries and bonuses continue to rise,” Saldaña told LAist.

Last week, the Hospital Association of Southern California sent a letter to the council, urging it to leave the proposal up to voters, rather than adopt it outright.

“This policy is deeply flawed and politically motivated, and would have severe consequences for the recruitment and retention of qualified leaders in our local hospitals,” the letter reads .

Violators of the proposed ordinance could have civil action brought by the City Attorney and face fines.

While the proposal would affect a wide range of executive positions, including chief financial officers and vice presidents, it would not include medical professionals whose primary duties are to provide direct patient care.

L.A. city voters could see the measure on the March 5, 2024 ballot.