AHS executives’ compensation under microscope
Health minister seeks ‘thorough analysis’ from board of province’s health authority
CALGARY Health Minister Sarah Hoffman says the NDP government intends to keep a closer eye on compensation for senior executives at Alberta Health Services, though it doesn’t see their salaries as out of line.
The Health ministry’s 2017-20 business plan released with the provincial budget last week commits to improving governance within the health care system.
In an interview Thursday, Hoffman pointed to a new focus on executive salaries as part of that initiative.
As part of the NDP’s review of remuneration at agencies, boards and commissions released in February, the government is requiring AHS to submit an annual executive compensation plan to the province later this spring.
AHS president and CEO Verna Yiu made $568,321 in 2015, a period in which she was mostly a vicepresident within the organization.
“Certainly the CEO’s compensation is high. I don’t believe it’s out of line with the level of responsibility,” said Hoffman.
“But that’s something I want the AHS board to ensure and look not just at the CEO but at other executives in the organization ... I want to make sure they are doing a thorough analysis with other high-ranking officials within the organization.”
Hoffman noted the ABC review had a difficult task when it looked at AHS because there is no similar overarching health authority within Canada. She said Yiu is paid less than some CEOs of single Canadian hospitals.
The government is also asking Calgary Lab Services, Covenant Health, CapitalCare and Carewest to voluntarily submit compensation plans, though they are not legally required to do so.
The NDP has committed to “bending the curve” on health care spending, the largest single part of the provincial budget, by bringing the rate of increase to two per cent by 2018. In last week’s budget however the government missed its 2.5 per cent growth target for 2017-18, with spending projected to increase by five per cent compared to last year’s budget and 3.3 per cent over what was actually spent in 2016-17.
The health business plan for the first time contains per-capita health expenditure figures, which show an increase from $4,588 in 2012 to an estimated $4,793 in 2016. Hoffman said the government intends to introduce new performance measures, including targets for per capita spending, in the coming years.
As part of its plan to cut healthcare costs, the government has struck a new compensation deal with physicians and is attempting to shift dollars from acute care to home and community care.