S T A T E O F N E W Y O R K
________________________________________________________________________
3886
2015-2016 Regular Sessions
I N A S S E M B L Y
January 28, 2015
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Introduced by M. of A. GLICK, JAFFEE, CRESPO -- read once and referred
to the Committee on Health
AN ACT to amend the public health law, in relation to capping compen-
sation for hospital executives
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public health law is amended by adding a new section
2827 to read as follows:
S 2827. LIMITATION ON SALARY FOR HOSPITAL EXECUTIVES. 1. NOTWITH-
STANDING ANY INCONSISTENT SECTION OF LAW, FOR THE PURPOSES OF THIS
SECTION: (A) "HOSPITAL" SHALL MEAN ANY HOSPITAL ORGANIZED UNDER THIS
ARTICLE THAT RECEIVES PAYMENT BY PROVIDING SERVICES TO: RECIPIENTS
ELIGIBLE FOR MEDICAL ASSISTANCE PURSUANT TO TITLE ELEVEN OF ARTICLE FIVE
OF THE SOCIAL SERVICES LAW; ENROLLEES ELIGIBLE FOR MEDICAL ASSISTANCE
PURSUANT TO SUCH TITLE AND ENROLLED IN APPROVED MANAGED CARE ORGANIZA-
TIONS PURSUANT TO SECTION THREE HUNDRED SIXTY-FOUR-J OF SUCH TITLE ELEV-
EN; ENROLLEES ELIGIBLE FOR FAMILY HEALTH PLUS AND ENROLLED IN APPROVED
ORGANIZATIONS PURSUANT TO TITLE ELEVEN-D OF ARTICLE FIVE OF THE SOCIAL
SERVICES LAW; ENROLLEES ELIGIBLE FOR THE CHILD HEALTH INSURANCE PROGRAM
AND ENROLLED IN APPROVED ORGANIZATIONS PURSUANT TO TITLE ONE-A OF ARTI-
CLE TWENTY-FIVE OF THIS CHAPTER; AND ENROLLEES OF THE ELDERLY PHARMACEU-
TICAL INSURANCE COVERAGE PROGRAM, PURSUANT TO TITLE THREE OF ARTICLE TWO
OF THE ELDER LAW; AND
(B) "HOSPITAL EXECUTIVE" SHALL MEAN A PERSON OR GROUP HAVING ADMINIS-
TRATIVE OR MANAGERIAL AUTHORITY OF A HOSPITAL, WHICH SHALL INCLUDE, BUT
NOT BE LIMITED TO, THE FOLLOWING POSITIONS: CHIEF EXECUTIVE OFFICER,
CHIEF EXECUTIVE, EXECUTIVE OFFICER, EXECUTIVE DIRECTOR, CHIEF FINANCIAL
OFFICER, PRESIDENT, EXECUTIVE PRESIDENT, VICE PRESIDENT, EXECUTIVE VICE
PRESIDENT, EXECUTIVE VICE PRESIDENT-CORPORATE, EXECUTIVE VICE PRESI-
DENT-OPERATIONS, SENIOR VICE PRESIDENT, AND SENIOR VICE PRESIDENT OF
FINANCE OR ANY OTHER COMPARABLE POSITION; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03861-01-5
A. 3886 2
(C) "TOTAL ANNUAL SALARY" MEANS THE TOTAL AMOUNT OF COMPENSATION TO BE
PAID TO A HOSPITAL EXECUTIVE FOR SERVICES IN A CALENDAR YEAR, PROVIDED
SUCH TERM SHALL INCLUDE DEFERRED COMPENSATION EARNED DURING THAT CALEN-
DAR YEAR, ANY EMPLOYER CONTRIBUTIONS TO A RETIREMENT PLAN MADE IN SUCH
CALENDAR YEAR, AND ANY LUMP-SUM CASH PAYMENT MADE TO SUCH HOSPITAL EXEC-
UTIVE IN SUCH CALENDAR YEAR INCLUDING, BUT NOT LIMITED TO, CASH BONUSES,
SEVERANCE PAY, OR OTHER BENEFITS UPON TERMINATION OF EMPLOYMENT.
2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, NO EMPLOYMENT
CONTRACT OF A HOSPITAL EXECUTIVE SHALL PROVIDE FOR A TOTAL ANNUAL SALARY
IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS.
3. IN ADDITION TO THE PAYMENT OF THE TOTAL ANNUAL SALARY, A HOSPITAL
MAY PROVIDE FOR THE PAYMENT OF THE COST OF INSURANCE BENEFITS FOR A
HOSPITAL EXECUTIVE, INCLUDING, BUT NOT LIMITED TO HEALTH INSURANCE,
DISABILITY INSURANCE, OR LIFE INSURANCE; PROVIDED THAT ANY SUCH PAYMENTS
FOR WHOLE LIFE, SPLIT DOLLAR OR OTHER LIFE INSURANCE POLICIES HAVING A
CASH VALUE SHALL BE INCLUDED IN THE TOTAL ANNUAL SALARY OF THE HOSPITAL
EXECUTIVE FOR PURPOSES OF THIS SECTION, AND PROVIDED FURTHER THAT ANY
PAYMENTS FOR THE EMPLOYEE CONTRIBUTION, CO-PAY OR UNCOVERED MEDICAL
EXPENSES UNDER A HEALTH INSURANCE PLAN ALSO SHALL BE INCLUDED IN THE
TOTAL ANNUAL SALARY OF THE HOSPITAL EXECUTIVE. NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, PAYMENTS FOR SUCH INSURANCE BENEFITS MAY BE BASED ON
THE HOSPITAL EXECUTIVE'S TOTAL SALARY ONLY. ANY PAYMENTS FOR TRANSPORTA-
TION OR TRAVEL EXPENSES IN EXCESS OF ACTUAL DOCUMENTED EXPENSES INCURRED
IN THE PERFORMANCE OF DUTIES FOR THE HOSPITAL, AND OTHER LUMP SUM
PAYMENT NOT SPECIFICALLY EXCLUDED FROM THE TOTAL ANNUAL SALARY PURSUANT
TO THIS SECTION, SHALL BE INCLUDED IN THE TOTAL ANNUAL SALARY OF THE
HOSPITAL EXECUTIVE FOR PURPOSES OF THIS SECTION. NOTHING IN THIS SECTION
SHALL PROHIBIT A HOSPITAL EXECUTIVE FROM WAIVING ANY RIGHTS PROVIDED FOR
IN AN EXISTING CONTRACT OR AGREEMENT AS HEREAFTER PROHIBITED IN FAVOR OF
REVISED COMPENSATION OR BENEFIT PROVISIONS AS PERMITTED IN THIS SECTION.
S 2. This act shall take effect immediately, provided that the
provisions of this act shall only apply to any employment contracts for
persons serving as hospital executives that are entered into, amended or
extended on or after the date on which this act shall become a law.