The Chattanooga-Hamilton County Hospital Authority Board of Trustees passed five resolutions Friday, including a compensation plan that will pay 99 hospital managers $1.7 million in incentives and increase Erlanger President and CEO Kevin Spiegel's salary by 10 percent.
Board member Gerald Webb was the only dissenting vote on the compensation plan for managers and the increase for Spiegel. Webb stuck to previously voiced beliefs on both resolutions. With regard to Spiegel, Webb agreed that Speigel had done a good job, but said it was more a question of how long he'd served in the position.
"I think there needs to be a longer period of time before we give what I believe is a substantial increase in pay for the CEO," Webb said.
The increase raises Spiegel's base salary to $748,000. Jose Pagoaga, representing Sullivan Cotter and Associates, an executive compensation firm, said Spiegel's performance last year was rated as "exceeds expectations."
Since Speigel took charge in 2013, Erlanger has enjoyed a significant financial turnaround. Staring down a net loss of $8.7 million a year ago, the hospital followed a record-high $12 million in second quarter profits this year with $11.4 million in the third. Its year-to-date net income is $25.3 million.
Board member Henry Hoss said based on the job Spiegel's done, he wished the CEO could get a raise of more than 10 percent.
Webb also took issue with the incentives for the executive team. He was reminded of a time when he was a boy, staying in Children's Hospital at Erlanger for a prolonged illness. He said he remembers his nurses, and a janitor that waved to him every day through the window of his room.
"I don't remember seeing one vice president," Webb said. "I have no doubt they've done a great job, but if there is money available, give it to the nurses, the CNA's, the janitors. Give it to the people that have direct interaction with patients day-to-day."
Other resolutions appeared to address that discrepancy. One proposed a 2 percent pay raise across the board for all eligible employees ($2.4 million annually), and another would authorize the development of an incentive compensation plan for all employees except physicians (they have their own incentive plan). Both passed unanimously.
Friday's vote was essentially a "do-over" of a vote that took place in December. After a public outcry from state and local officials, Tennessee's attorney general ruled that the board had violated open meetings law because they discussed the incentives in private before the meeting. Friday's proceedings took place in front of more than 30 Erlanger physicians and staff, members of the media and video cameras. Board Chairman Donnie Hutcherson said from now on, every board meeting would be videotaped in its entirety and made available on YouTube.
"We're doing everything we can to increase transparency and make our meetings as open as possible," Hutcherson said.
Hutcherson bemoaned too much transparency, however, saying it could give the hospital's competition a leg-up.
"It allows our competitors to telegraph our future plans," Hutcherson said. "When we put our plans in public, it puts us at a competitive disadvantage."
Hutcherson said discussions about certain issues, such as strategic planning, credentialing and legal matters, would still occur behind closed doors.
Contact Will Healey at whealey@timesfreepress.com or 423-757-6731.