FORT LAUDERDALE, Fla., March 28, 2018 /PRNewswire/ -- With Broward Health facing a growing demand for experienced nurses and top healthcare system managers, the Broward Health Board of Commissioners today took multiple steps to attract and retain top talent based upon fair market valuations.
The Board reviewed wages and bonuses paid by competitive healthcare systems. According to a report by Aon, a risk, retirement and health consulting firm, 88 percent of healthcare organizations with greater than $1 billion net revenue have annual incentive plans for leaders.
The Board also took into consideration the strong economy in Broward County, making acquisition of top talent more challenging. As a result, the Board determined an investment in the workforce through new pay structures and benefits would increase employee satisfaction and loyalty while further enabling recruitment and retention of desirable candidates.
Nurses Salaries Adjusted to Align with Industry Standard
At the Human Resources Committee and Board meetings held today, Commissioners solidified plans to increase salaries for 950 registered nurses. The Board voted to increase hourly pay rates by an average of five percent, depending on the length of service. The increase brings Broward Health salaries in line with those paid by major public healthcare systems in other parts of South Florida.
"Our research shows it costs Broward Health nearly $70,000 to find and train replacements for departing nurses in some areas of specialization," said Peter Nyamora, executive vice president and chief human resources officer. "Broward Health must pay competitive salaries to minimize these hefty replacement and training costs."
Annual Incentive Plan Instituted for Broward Health Managers
Citing a compensation study by Sullivan, Cotter & Associates Sullivan – an independent consulting firm specializing in executive, physician and employee compensation in the healthcare industry – that shows 83 percent of healthcare organizations with annual incentive plans for executives and/or managers use performance triggers to incentivize performance and determine payout, the Broward Health Board of Commissioners also voted today to institute an annual incentive plan. The plan will affect nearly 300 managers at Broward Health, 30 percent of whom are nurse leaders. This is similar to a plan that has existed at Broward Health since 2004.
Gain share amounts will be determined by supervisors based on a manager's contributions to Broward Health's quality of care, patient safety, people and service, incentivizing leadership to further improve the patient experience. System-wide budget achievements will determine eligibility.
Calling the incentive plan "a market standard," Broward Health Executive Vice President and Chief Financial Officer Alan Goldsmith said, "Broward Health budget surpluses are to be reinvested back into the system to reduce the burden on taxpayers while improving Broward Health infrastructure, which includes recruitment and retention of talented management crucial to Broward Health's mission and success."
Goldsmith also said the interim incentive plan capped at 17.5 percent may result in gain shares paid to executives and managers at the end of the current fiscal year.
President/CEO Compensation Set
Commissioners also formalized the salary and bonus plan for Broward Health President/CEO Beverly Capasso, who was named the organization's permanent President/CEO at the January Board meeting. Capasso will be paid $750,000 and be eligible for a 30 percent bonus if the system hits measurable targets and budget achievements. An additional 20 percent bonus will be part of the compensation package based on adherence to a Corporate Integrity Agreement between Broward Health and the U.S. Departments of Justice and Health and Human Services.
This compensation package was based on a remuneration review by Aon of health systems across the U.S. with revenues at approximately $1.2 billion. Capasso's salary fell slightly above the market 25th percentile.
By comparison, in 2015 and 2016, Jackson Health CEO Carlos Migoya was paid a combination of salary and bonuses totaling $1.05 million, according to a Miami Herald report based on information provided by a Jackson Health System spokesperson. Memorial Healthcare System CEO Aurelio Fernandez is paid $790,760 annually and is eligible for bonuses of up to 50 percent, according to a Sun-Sentinel article based on approval of Fernandez' contract by the Memorial Healthcare System Board.
In acknowledging the positive impact of Capasso, Broward Health Vice Chairman and interim Chair Christopher Ure said, "The sun is rising here (at Broward Health) and it is in large part due to your leadership."
About Broward Health
Broward Health, providing service for more than 80 years, is a nationally recognized system in South Florida that offers world-class healthcare to all. The Broward Health system includes the statutory teaching hospital Broward Health Medical Center, Broward Health North, Broward Health Imperial Point, Broward Health Coral Springs, Salah Foundation Children's Hospital, Broward Health Weston, Broward Health Community Health Services, Broward Health Physician Group, Broward Health Urgent Care, Broward Health International, and Broward Health Foundation. For more information, visit BrowardHealth.org.
Jennifer Smith, Director of Corporate Communications
SOURCE Broward Health