Healthcare CEOs should hold themselves to higher standard

In last month’s article “Detailed rules, transparency should define health system CEOs’ outside directorships,” (ModernHealthcare.com, Dec. 10), a sample of healthcare CEOs from across our country were spotlighted regarding their compensation for sitting on certain for-profit company boards. As a small, rural healthcare CEO, this was a little hard to swallow.

I would venture a guess that all of these CEOs are already paid a living wage by their primary employer. I know I feel I am adequately paid, and I am certain they are all several multiples of my compensation. While I would not question some of the comfortable salaries these individuals make, I would question the legitimacy of accepting six-figure payments for sitting on another board, especially the board of an organization they use as a vendor of goods or services, or could potentially use.

At a time when the public questions our industry’s business practices, these examples only serve to validate the public’s concerns. The idea that these men and women are not swayed by money, that they can manage the internal conflict just fine, thank you very much, is laughable.

If the money does not matter in their determination of sitting on a board or not, then the amount should not matter either. However, if I have the choice between two boards, one that pays me $250,000 per year and one that will simply reimburse me for travel expenses related to board meetings, which one might I choose? Suddenly the money matters in my decision-making, and it will also matter when it comes to issues related to my primary employer and my board position on the outside organization. Money matters or we would not use it universally as a medium to effect influence.

I realize this happens in other industries, but we are not in other industries. We are in the industry that is meant to save and heal and sacrifice, when necessary. We are in an industry that is to be above conflicts of interest, not managing their nuances. We are in a different industry.

Patients and families want to believe we are different. Is it too much to ask for us to hold ourselves to a little higher standard than other industries? If the boards of these not-for-profits would simply recognize the inherent conflict, or at a minimum the appearance of such, and tell their CEOs “no,” that would be an improvement.

There is an enduring truth: You cannot serve two masters. It might be too much to ask, but the not-forprofit boards should help their CEOs understand which master is most important. Part of leadership, perhaps the toughest part, is taking the high road when other roads are available.

Andy Fitzgerald CEO Campbell County Health Gillette, Wyo.