Olympic Medical Center board to mull raising CEO’s salary by 10 percent
By Rob Ollikainen
Peninsula Daily News
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Lewis, who earns $176,000 per year, would make $193,600 if the raise is approved at the next board meeting Oct. 2.
Commissioners did not discuss the raise after a presentation from Chief Human Resource Officer Richard Newman at the regular board meeting Wednesday.
Lewis himself was in Washington, D.C., with Commissioner Jim Leskinovitch lobbying Congress on behalf of the hospital district.
Newman used data from two recent hospital surveys that showed Lewis’ salary is considerably below the CEOs of smaller, neighboring hospitals.
Jefferson Healthcare CEO Mike Glenn earns $233,515 per year, and Forks Community Hospital CEO Bill McMillan earns $176,010, the analysis showed.
Both are critical-access hospitals, which are licensed for 25 beds, though the Forks hospital has only 17.
Board Chairman John Beitzel, who also was absent from the meeting, had asked the Human Resource Committee to make a recommendation on Lewis’ salary about three months ago, acting Chairwoman Jean Hordyk said.
“We considered many things,” she added.
Newman said OMC reviews salaries of its managers and staff on an annual basis for recruitment and retention.
“Anytime a highly qualified and skilled employee leaves the organization, they tend to take a lot of organizational knowledge with them, and they’re often very difficult to replace,” Newman said.
Commissioners directed legal counsel to draft a resolution to increase Lewis’ pay by 10 percent.
If the raise is approved, Lewis would leapfrog McMillan and Clallam Public Utility District General Manager Doug Nass, who earns $179,004 a year, to become the second-highest-paid public employee on the North Olympic Peninsula behind Glenn, according to a two-month salary review that the Peninsula Daily News conducted earlier this year.
Lewis also received a 10 percent pay raise in June 2012 — his first raise since being promoted from chief financial officer to interim CEO in December 2006.
Here is Newman’s comparison of eight hospitals compiled from a June 2012 Milliman salary survey and January 2013 Gallagher survey, listed in order of annual revenue:
■ Providence Centralia has 123 beds and $146 million in revenue. The CEO pay is $273,828.
■ OMC has 78 beds and $140 million in revenue. The CEO pay is $176,000.
■ Grays Harbor Community Hospital has 104 beds and $129 million in revenue. The CEO pay is $236,804.
■ Whidbey General Hospital has 25 beds and $88 million in revenue. The CEO pay is $231,252.
■ Island Hospital has 43 beds and $83 million in revenue. The CEO pay is $337,165.
■ Mason General Hospital has 25 beds and $83 million in revenue. The CEO pay is $241,432.
■ Jefferson Healthcare has $65 million in revenue.
■ Forks Community Hospital has $20 million in revenue.
Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at email@example.com.
Senior Staff Writer Paul Gottlieb contributed to this report.
Last modified: September 19. 2013 5:37PM