Voters in Los Angeles will decide to cut down hospital executives’ pay next spring.
L.A. voters could clamp down on pay for hospital executives (Source: Los Angeles Times).
After the Los Angeles City Council approved placing the proposed measure on the March 2024 ballot on Wednesday, Los Angeles voters will decide whether to limit hospital executives’ total earnings and other compensation to $450,000 per year.
The Los Angeles ballot measure is supported by a union representing healthcare employees who believe that hospital executive pay has been expensive and inconsistent with the objective of delivering affordable treatment, according to the LA Times.
The SEIU-United Healthcare Workers West claims that hospital executives should not be paid more than the president’s total remuneration, which presently indicates $450,000 per year in the ballot measure, according to KNX News.
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“Healthcare executives receive lavish, million-dollar salaries far above the wages of healthcare workers, and patients struggle to afford basic care,” SEIU-UHW spokesperson Renée Saldaña said in a statement.
According to the proposed ordinance, hospitals and healthcare institutions would be able to attract and maintain “effective executive leadership.”
The Hospital Association of Southern California termed the proposal “deeply flawed” and pointed out that it would have made it more difficult for Los Angeles hospitals to recruit and retain top talent, who would instead prefer employment in other cities’ healthcare facilities.
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