The Board of Directors for the Western Maryland Health System is charged with the fiduciary responsibility of assuring that area residents have access to essential health care services. In addition to overseeing the quality of those services, we also are obligated to ensure the appropriate use of funds.
We are fortunate to have skilled and experienced leaders on our senior management team. Running a hospital in today’s environment is a most challenging job based on the complexity of what hospitals do. From the routine to the catastrophic, 24/7 access to care is provided for all patients, regardless of their ability to pay. Virtually all phases of our operations are highly regulated, and our physical facilities must provide each patient with a safe, quality experience. It is becoming increasingly more difficult to keep the hospital financially viable as payment reform in Maryland and national healthcare reform efforts continue.
The WMHS Board of Director’s compensation philosophy is based on our commitment to attract and retain highly competent executives to further our mission. We compete with hospitals across the country for talented individuals to join WMHS, and our salaries must be comparable to hospitals of similar size and complexity.
The compensation for the executive team at WMHS is set by the WMHS Board of Directors based on the recommendation of our Executive Compensation Committee. This committee works with Mercer, a national firm that specializes in wage and compensation issues, to review and determine executive compensation.
Mercer provides the board with data from national compensation surveys of hospitals that are like WMHS. These hospitals are similar in size and scope with $300 million in annual net operating revenue and based in similar locations, both in the region and across the country. The Executive Compensation Committee bases its recommendation on this competitive market analysis and targets compensation at mid-range of comparable institutions.
As a not-for-profit, tax-exempt organization, WMHS also must meet IRS requirements ensuring that our executive compensation is reasonable and appropriate. Mercer provides documentation that WMHS is providing executive compensation at reasonable levels with like organizations in Maryland and across the U.S.
Another benchmark used for comparison is Maryland’s ranking of administrative and general expenses according to equivalent inpatient days. According to the most recent data available, WMHS ranks among the lowest in the state, coming in at 45 out of 48 hospitals in Maryland.
We believe the community is well served to have the caliber of individuals who comprise our senior management team. They had the experience and skills necessary to bring a new state-of-the-art medical center to this community as well as to lead this organization through these challenging times.
It is important, however, to clarify that the WMHS 990 filing for 2010 includes a one-time, 3-year deferred pension payment for Mr. (Barry) Ronan that was held until the successful opening of the new Western Maryland Regional Medical Center November 2009. His base salary for that year was approximately $475,000.
Letters
WMHS board responds to inquiries about executives’ compensation
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‘Forgotten warrior’ not forgotten
The Korean War is often called “The Forgotten War.” My generation remembers the Battle for LZ X-Ray at Ia Drang, The Tet Offensive, and Khe Sahn of the Vietnam War.
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Organization needed to help utilize the Potomac River
I am a committee remember on the Tamiami Trail Scenic Highway which stretches from Palmetto to Venice, Fla.
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Reducing meat consumption can help ease climate change
A review of 12,000 papers on climate change, in the May 15 issue of “Environmental Research Letters,” found that 97 percent of scientists attribute climate change to human activities.
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Maryland has stopped being “The Free State”
I am a lifetime member of the Veterans of Foreign Wars, Disabled American Veterans and, last but not least, the National Rifle Association. I am a yearly member of the American Legion.
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Save the Bridge Program
Please do not close the Frostburg United Methodist Church Bridge Program. The community and many families need this program. Let me enlighten you about a few things.
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Town of Westernport needs a police force and a curfew
Since the consolidation of Bruce and Valley high schools the town of Westernport rapidly deteriorated from what was once a quite respectable community to a community in a decline in residents, and along with that came a collapse in local government due to lack of knowledge and bad decisions that set the town of Westernport back 60 years.
One bad decision was to give up their police force, and with no constant visual law enforcement it has created an open range for drug dealerss, addicts, thieves, drunks and speeding vehicles that choose to ignore our city laws and speed limits and have totally disregard for the safety of the citizens who are on the streets, especially the children who are like deer, you don’t see them until their in front of you. -
Financial gutting will damage school system
I am writing in response to the Allegany County Commissioners’ efforts to cut local education spending to the lowest possible level allowed under state law.
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Cemetery organization plans events to mark Memorial Day
This upcoming Memorial Day marks the 30th anniversary of the Cumberland Historic Cemetery Organization (CHCO).
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Outside water customers pay for town’s mistakes
The following is the opinion of the individual and in no manner reflects the opinion of any other person or organization.
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We’re twisting the meaning of the Founding Fathers’ words
I really had to chuckle when I read a recent comment someone made in a northeastern publication: “I’d like to suggest that Congress make a tiny change in our Second Amendment that would more accurately reflect the Founding Father’s intent (to wit): “A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear muskets, shall not be infringed.”
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‘Forgotten warrior’ not forgotten
