HHS' Office of the Inspector General's announcement of a plan to study hospital executive compensation is roiling C-suites.
One of dozens of projects announced as part of the OIG's 2014 work plan, the compensation study will examine how employee pay at hospitals is reflected on Medicare cost reports. The study will look at whether Medicare spending would decrease if the CMS imposed limits on the compensation that the federal program will cover.
The study is related to the requests sent out to hospitals last year by the OIG's Atlanta office that asked hospitals and health systems to disclose the salaries of their highest-compensated employees. The letters that went to hospitals described it as an “audit of excessive compensation at Medicare participating hospitals,” according to the American Hospital Association. The requests were intended to find out whether compensation was reasonable and necessary and directly related to Medicare patient care.