Universal Health Services, King of Prussia, Pa., awarded a $2 million bonus to Alan Miller, chairman, president and chief executive officer, for his role in the successful sale of the company's French hospital assets, which netted Universal an after-tax gain of $121 million. The sale was completed last spring.
Universal says the bonus was discretionary and not part of Miller's compensation under the company's executive incentive plan. His entire pay package for 2005 won't be revealed until the company files its annual proxy statement in the spring.
In 2004, Miller earned $1.3 million in salary, bonuses and other cash compensation and exercised stock options that earned gross proceeds of $16.6 million. As a result, he had the highest total dollar compensation among executives of publicly traded hospital companies, according to Modern Healthcare's annual executive compensation report (Aug. 1, p. 26).
WellPoint President and CEO Larry Glasscock was elected to the additional role of chairman, replacing Leonard Schaeffer, who resigned from the insurer's 17-member board.
Glasscock, 57, was head of Anthem before its 2004 merger with WellPoint Health Networks. Schaeffer, 60, says his resignation cleared a seat on the board for a new member. The insurer's acquisition of WellChoice, New York, expected to close in 2006, calls for one WellChoice director to join the WellPoint board.
Schaeffer says WellPoint achieved a handful of high-priority goals during its first year, allowing him to step down to focus on U.S. health policy. He declined to describe his specific plans.
Prior to his work at WellPoint, Schaeffer held state and national health policy roles, including administrator of HCFA (now the CMS) from 1978 to 1980. Schaeffer sits on the health board of advisers for the Rand Corp.
Four-hospital Baptist Health System of East Tennessee, Knoxville, has hired a local businessman and the former chairman of its board as its president and CEO.
Warren Payne, 58, recently retired as president and CEO of an equipment-leasing company that he founded and was a top-level executive at two banks in Knoxville before that. He has served on Baptist's board since 1989 and was chairman from 1993 through 1995.
The system was left without a CEO last month when Dale Collins retired unexpectedly, citing the pressures of the job.
Baptist also says Greg Harb, who was hired earlier this year as COO and then served as interim CEO, will leave the system Jan. 31 to take a job with a real estate firm.
William Owens, a former CFO and briefly CEO of HealthSouth Corp., Birmingham, Ala., was sentenced to five years in prison for his role in accounting fraud at the company. Owens pleaded guilty to conspiracy to commit wire fraud, conspiracy to commit securities fraud and filing false certification of financial information with the Securities and Exchange Commission.
He is the last to be sentenced among five former HealthSouth CFOs who pleaded guilty in connection with the scheme, and his sentence, handed down by a U.S. District judge in Birmingham was the longest.