Proposed legislation to cap Maine hospital CEO compensation at the governor's salary was unanimously rejected by the state legislature's joint health and human services committee.
Legislation aims to cap hospital CEO compensation in Maine
The bill now goes to the House and Senate for a vote with the committee's report that it “ought not to pass.” Hospitals that seek or renew a license would be required to certify the CEO receives no more than the governor earns, under the bill introduced by Democratic Rep. Brian Bolduc.
A fiscal note that accompanied the bill (PDF) said the state's two psychiatric hospitals and its MaineCare health insurance, could see an undetermined savings by capping hospital CEO salaries, though the note did not explain further.
At $70,000, Maine's governor earns less than any other U.S. governor by more than $17,000, according a 2010 survey by the national Council of State Governments.
Jeff Austin, vice president for government affairs for the Maine Hospital Association, said the trade group officials understand the public's interest but do not believe the state should regulate salaries of private entities, including hospitals. Austin said the Internal Revenue Service and the Maine attorney general may enforce rules that prohibit excessive executive pay at not-for-profit hospitals and health systems.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.