Backers withdrew an initiative to limit the compensation of health care administrators for consideration for the November ballot.
What was dubbed the “Hospital Executive Compensation Act of 2016” would have limited the annual compensation of executives, managers, and administrators at hospitals, hospital groups, hospital-affiliated medical foundations and physicians groups, and health care districts — including salary, perks, paid time off, bonuses, stock options — to the salary and expense allowance for the president of the United States, which is currently $450,000.
Penalties for violating terms of the initiative would have included fines, revocation of tax-exempt status and the appointment of a representative of the Attorney General to the boards of directors of nonprofit corporations.
The initiative was backed by the SEIU-United Healthcare Workers West union, which believed it would have reduced the cost of hospital care.
A similar measure was withdrawn from circulation before it could qualify for the November 2014 ballot.
—City News Service
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