Erie County legislators weighed in on Thursday to the bonuses granted by the Erie County Medical Center Corporation’s board of directors.
The Legislature, by law, provides millions of taxpayer dollars in subsidies to the struggling hospital every year.
President and Chief Executive Officer Michael Young, who makes $410,970, received a $99,750 bonus, despite the dire financial situation facing the county and the hospital’s significant deficits in operating costs. Chief Financial Officer Sue McCarthy, who makes $265,000, received a $28,167 bonus.
Michele Iannello, D-Kenmore, was disappointed.
“I would have expected more from Mike Young,” she said.
Erie County Comptroller Mark Poloncarz sent a letter to lawmakers Wednesday saying that, because the hospital faces significant challenges and the county serious difficulties, the bonuses are “inappropriate.”
“The payments of these bonuses, while legal, are of questionable nature,” he said.
ECMC is the only trauma center in the region. Erie County taxes make up the subsidies.
“A lot of my constituents use ECMC,” said Legislature Chairperson Lynn Marinelli, D-Town of Tonawanda. “It’s very much one of our community treasures and I would hope the boards are cognizant of today’s economics.”
The county provided ECMC with $19.8 million in 2005, $46.3 million in 2006 and is projected to pay $29 million in 2007.
Young did not return a phone call, and the ECMCC board of directors is not answering questions. The board did issue a statement defending the bonuses.
“This experienced management team has exceeded every clinical and financial goal set by the Board of Directors, which has resulted in a $28 million turnaround in financial performance in the past 20 months,” read the statement from Kevin Cichocki, chair of the ECMCC Board of Director’s Compensation Committee.
The ECMC Board of Directors approved and awarded the bonuses.
The hospital is decreasing the deficit in its operating costs, the letter from Poloncarz read. It lost $17.5 million in 2005, but only projected an operating loss of $7.5 million in 2006.
A study provided by the ECMC showed that, even with the bonus, Smith’s salary falls below the average for free-standing hospitals. That average is $551,400, according to a study by Sullivan, Cotter and Associates.
“If they want to give them bonuses, that’s fine,” said Poloncarz. “But they should wait until the hospital is a profitable and self-sufficient entity.”
Copyright 2006 - The Tonawanda News