On April 17, the Service Employees International Union-United Healthcare Workers West (UHW) filed a local ballot initiative with the city of Los Angeles that would place a cap on hospital executive compensation. The measure — called the “Public Health and Fair Pay for Hospital Executives Ordinance” — would cap total compensation for “covered executives” at no more than what the U.S. President is paid (currently $450,000 annually).
UHW plans to place this measure on the November 2020 ballot.
The pay cap would apply to any individual whose primary duties are executive, managerial, or administrative. The pay cap would not apply to medical or health care professionals whose primary duties are direct patient care, research, or other non-managerial/non-executive positions.
The measure would amend the Los Angeles Municipal Code and apply to general acute care private and nonprofit hospitals that operate in whole or in part within the city of Los Angeles. However, the measure excludes children’s and public hospitals. UHW claims that at least 15 hospitals in the city of Los Angeles would be affected. CHA believes about 33 hospitals may be impacted by the proposal because of the city’s complex neighborhood structure.
CHA is gathering further information, performing a thorough analysis of the proposed measure and, as always, will serve as point in defending against misuse of the ballot initiative process.