BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 2467


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          Date of Hearing:  April 19, 2016


                            ASSEMBLY COMMITTEE ON HEALTH


                                   Jim Wood, Chair


          AB 2467  
          (Gomez) - As Amended April 5, 2016


          SUBJECT:  Health facilities:  executive compensation.


          SUMMARY:  Establishes the Hospital Executive Compensation  
          Transparency Act of 2016 which requires covered hospitals or  
          medical entities, as defined, to submit an annual hospital  
          executive compensation report to the Office of Statewide Health  
          Planning and Development (OSHPD) which provides specified  
          information regarding executives earning over $250,000 per year;  
          and, for covered hospitals or medical entities with 100 or more  
          employees, requires the report to also include information  
          regarding the pay bands of various employee classifications, as  
          well as voluntarily self-reported information regarding  
          employees' gender, ethnicity, race, sexual orientation, and  
          gender identity, by job categories.  Specifically, this bill: 

          1)Requires, on and after October 1, 2017, each covered hospital  
            or medical entity to submit an annual hospital executive  
            compensation report (annual report) to OSHPD for every  
            hospital executive whose total annual compensation met or  
            exceeded the executive compensation reporting threshold  
            (EXCRT).  

          2)Requires the annual report to include all of the following  
            information for the prior fiscal year:









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             a)   The names, positions, or titles of each hospital  
               executive and the aggregate total annual compensation for  
               each hospital executive at or exceeding the EXCRT, with a  
               description of each entity that has contributed to the  
               total annual compensation of each hospital executive, in  
               any form, and the amount of such compensation;

             b)   A detailed breakdown of all wage and nonwage  
               compensation;

             c)   Identification of any benefit or remuneration excluded  
               from the definition of total annual compensation; and,

             d)   A detailed breakdown of board compensation, which shall  
               include all of the following:

               i)     The name of the publicly traded company, privately  
                 held company, or nonprofit organization that provided the  
                 board compensation; and,

               ii)    The number of hours the hospital executive spent on  
                 matters related to their duties as a director of the  
                 publicly traded company, privately held company, or  
                 nonprofit organization for which the board compensation  
                 was received.

          3)Requires, consistent with the federal annual equal employment  
            opportunity and compensation report on employees' ethnicity,  
            race, and sex by job category and compensation, on or after  
            October 1, 2017, and annually thereafter each covered hospital  
            or medical entity with 100 or more employees to submit to  
            OSHPD all of the following information for the prior fiscal  
            year: 

             a)   The number of employees earning annual total  
               compensation in 12 pay bands, as proposed by the federal  
               Equal Employment Opportunity Commission (EEOC) in the  
               Federal Register, Volume 81 Number 20, on February 1, 2016,  
               on pages 5113 to 5121, inclusive, for each of the eight  








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               employee classifications defined in OSHPD's hospital annual  
               financial data and by self-reported gender, ethnicity, and  
               race, and voluntarily self-reported sexual orientation and  
               gender identity; and, 

             b)   The total number of hours worked by the employees  
               included in each pay band.

          4)Requires OSHPD, on and after January 1, 2018, to post the  
            annual hospital executive compensation report for each covered  
            hospital or medical entity on OSHPD's Internet Website.   
            Requires the report to be submitted on the form or in the  
            format required by OSHPD.

          5)Requires the board of directors (BOD) of any nonprofit or  
            for-profit corporation that owns, operates, or controls, in  
            whole or in part, a covered hospital or medical entity to  
            approve the annual report before it is submitted to OSHPD, and  
            requires each director to act in good faith and with  
            reasonable care and inquiry in approving the annual report and  
            in ensuring the corporation complies with the requirements of  
            this bill.

          6)Requires the annual report for each covered hospital or  
            medical entity governed, owned, or controlled by a BOD, to  
            state that it was approved by the BOD, the date it was  
            approved, and contain an attestation under penalty of perjury  
            by an authorized representative of the covered hospital or  
            medical entity BOD, as specified.

          7)Specifies that any scheme or artifice that has the purpose of  
            avoiding the reporting requirements of this bill is a  
            violation of this bill.

          8)Specifies that payments, compensation, or remuneration by a  
            separate entity that is purported not to be for work performed  
            or services provided at or for a covered hospital or medical  
            entity, but that is disproportionate to its purported purpose  
            so as to evade the annual hospital executive compensation  








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            reporting requirements is a violation of this bill.  

          9)Requires OSHPD to establish and assess reasonable fees, to be  
            submitted with each annual report to cover only the reasonable  
            costs of implementing and ensuring compliance with this bill.

          10)Defines board compensation as the total annual compensation  
            provided to each hospital executive by any publicly traded  
            company, privately held company, or nonprofit organization on  
            whose BOD hospital executive sits and from which the hospital  
            executive received total annual compensation of more than one  
            thousand dollars ($1,000).

          11)Defines covered hospital or medical entity as any of the  
            following:

             a)   A private nonprofit general acute care hospital;

             b)   An acute psychiatric hospital;

             c)   Any private for-profit general acute care hospital;

             d)   A hospital group, or any person, corporation,  
               partnership, limited liability company, trust, or other  
               entity that owns, operates or controls, in whole or in  
               part, any such group;

             e)   A hospital-affiliated medical foundation that is  
               directly or indirectly, including through one or more  
               intermediaries, controlled or owned by, or controlled or  
               owned by the same person or entity as, a hospital, hospital  
               group, hospital-affiliated physicians group, or nonprofit  
               corporation that owned, operates, or controls, in whole or  
               in part, a hospital, hospital group, or hospital-affiliated  
               physicians group.  Specifies that a medical foundation will  
               be deemed a hospital-affiliated medical foundation if  
               either or both of the following are true:

               i)     The medical foundation is a disregarded entity of,  








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                 or would be required to be designated as a related  
                 organization on the Internal Revenue Service (IRS) form  
                 900 (or its accompanying schedules or the successor of  
                 such forms or schedule) of, a hospital, hospital group,  
                 hospital-affiliated physicians group, or a nonprofit  
                 corporation that owns, operates, or controls, in whole or  
                 in part, a hospital, hospital group, or  
                 hospital-affiliated physicians group; and/or;
               ii)    A majority of the medical foundation's assets are  
                 owned by a hospital, hospital group, or  
                 hospital-affiliated physicians group or by a nonprofit  
                 corporation that owns, operates, or controls, in whole or  
                 in part, a hospital, hospital group, or  
                 hospital-affiliated physicians group or of a nonprofit  
                 corporation that owns, operates, or controls, in whole or  
                 in part, a hospital, hospital group, or  
                 hospital-affiliated physicians group;

             f)   A hospital-affiliated physicians group, is any  
               physicians group or medical group that is directly or  
               indirectly, including through one or more intermediaries,  
               controlled or owned by, or controlled or owned by the same  
               person or entity as, a hospital, hospital group,  
               hospital-affiliated medical foundation, or a nonprofit  
               corporation that owns, operates, or controls, in whole or  
               in part, a hospital, hospital group, or hospital-affiliated  
               medical foundation.  A physicians group shall be deemed a  
               hospital-affiliated physicians group if either or both of  
               the following are true:

               i)     The physicians group is a disregarded entity of, or  
                 would be required to be designated as a related  
                 organization on IRS form 990 (or its accompanying  
                 schedules or the successor of such forms or schedules)  
                 of, a hospital, hospital group, or hospital-affiliated  
                 medical foundation or a nonprofit corporation that owns,  
                 operates, or controls, in whole or in part, a hospital,  
                 hospital group, or hospital-affiliated medical  
                 foundation; and/or, 








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               ii)    A majority of the physicians group's assets are  
                 owned by a hospital, hospital group, or  
                 hospital-affiliated medical foundation or a nonprofit  
                 corporation that owns, operates, or controls, in whole or  
                 in part, a hospital, hospital group, or  
                 hospital-affiliated medical foundation.

             g)   A health care district. 

          12)Exempts the following from the definition of a covered  
            hospital or medical entity:

             a)   Hospitals operated or licensed by the United States  
               Department of Veterans Affairs or public hospitals, with  
               the exception of hospitals owned or operated by a health  
               care district; and,

             b)   Designated public hospitals, as defined.

          13)Specifies that EXCRT means the total annual compensation from  
            any source for work performed or services provided at or for  
            the covered hospital or medical entity that is greater than  
            two hundred fifty thousand dollars ($250,000) in a year.

          14)Specifies that hospital executive means all persons whose  
            primary duties are executive, managerial, or administrative at  
            or for the covered hospital or medical entity, even if that  
            person also performs or performed other duties.

          15)Specifies that hospital executive includes, but is not  
            limited to, chief executive officers, chief executive  
            managers, chief executives, executive officers, executive  
            directors, chief financial officers, presidents, executive  
            presidents, vice presidents, executive vice presidents, and  
            other comparable positions.

          16)Specifies that the definition of hospital executive applies  
            irrespective of whether the person exercising executive,  
            managerial, or administrative authority is or was an employee  








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            of a covered hospital or medical entity or a nonprofit  
            corporation that owns, operates, or controls, in whole or in  
            part, a covered hospital or medical entity.  The definition  
            shall also apply to any person who exercises or exercised such  
            authority even if the arrangements for such authority or for  
            compensation or both are pursuant to a contract or  
            subcontract.

          17)Specifies that the definition of hospital executive includes  
            any person who held the duties described in these provisions  
            during the period covered by the annual report, even if the  
            person is postemployment or post-service.

          18)Specifies that the definition of a hospital executive does  
            not apply to medical or health care professionals whose  
            primary duties are or were the provision of medical services,  
            research, direct patient care, or other non-managerial,  
            nonexecutive, and non-administrative services.

          19)Specifies that total annual compensation means all  
            remuneration paid, earned, or accrued in the course of a  
            fiscal year for work performed or services provided, including  
            the cash value of all remuneration (including benefits) in any  
            medium other than cash, and including, but not limited to, all  
            of the following:

             a)   Wages; salary; paid time off; bonuses; incentive  
               payments; lump-sum cash payments; the fair market value of  
               below-market-rate loans or loan forgiveness; housing  
               payments; payments for transportation, travel, meals, or  
               other expenses in excess of actual documented expenses  
               incurred in the performance of duties; payments or  
               reimbursement for entertainment or social club memberships;  
               the cash value of housing, automobiles, parking, or similar  
               benefits; scholarships or fellowships; the cash value of  
               dependent care or adoption assistance or personal legal or  
               financial services; the cash value of stock options or  
               awards; payments or contributions for insurance, except as  
               exempted in 20) below, to a Section 125 cafeteria plan or  








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               equivalent arrangement, to a health savings account, or for  
               severance or its equivalent; and deferred compensation  
               earned or accrued, even if not yet vested nor paid;

             b)   The total value in the aggregate of the compensation or  
               payments authorized or paid under a severance or similar  
               post-service or post-employment arrangement, to include the  
               fair market value of all cash remuneration as well as the  
               fair market value of all remuneration (including benefits)  
               paid in any medium other than cash;

             c)   Payments, compensation, or remuneration for work  
               performed or services provided at or for a covered hospital  
               or medical entity even if made by a separate person or  
               entity, including, but not limited to, any of the  
               following:

               i)     A for-profit or unincorporated entity;
               ii)    A corporation, partnership, or limited liability  
                 company;


               iii)   A trust or other entity that is controlled by the  
                 same person or persons who govern a covered hospital or  
                 medical entity;


               iv)    A supporting or supported organization within the  
                 meaning of Sections 509(a)(3) and 509(f)(3) of the  
                 Internal Revenue Code; or,


               v)     A disregarded entity of, or related organization as  
                 set forth within, the IRS form 990 of a covered hospital  
                 or medical entity or a nonprofit corporation that owns,  
                 operates, or controls, in whole or in part, a covered  
                 hospital or medical entity.

             d)   Payment of compensation or remuneration by any person,  








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               corporation, partnership, limited liability company, trust,  
               or other entity that a covered hospital or medical entity,  
               or a nonprofit corporation that owns, operates, or  
               controls, in whole or in part, a covered hospital or  
               medical entity, participates in, belongs to, is a member  
               of, or pays into shall be presumed compensation for work  
               performed or services provided at or for the covered  
               hospital or medical entity.

          20)Specifies that total annual compensation does not include the  
            cost of health insurance or disability insurance or payments  
            or contributions to a health reimbursement account.

          EXISTING FEDERAL LAW:  

          1)Requires non-profit organizations with gross receipts of  
            $200,000 or more or total assets of $500,000 or more to file  
            financial information, including regarding salaries, with the  
            IRS.  The IRS form 990, officially, the "Return of  
            Organization Exempt from Income Tax" is an IRS form that  
            provides the public with financial information about a  
            nonprofit organization.  It is often the only source of such  
            information. It is also used by government agencies to prevent  
            organizations from abusing their tax-exempt status.  Certain  
            nonprofits have more comprehensive reporting requirements,  
            such as hospitals and other health care organizations.

          2)Requires publicly traded companies to file reports with the  
            Securities and Exchange Commission (SEC).  The SEC is one of  
            the regulatory watchdogs of the U.S. government, created in  
            the 1930s to protect investors, maintain fair and efficient  
            markets, and facilitate capital formation.  This is  
            accomplished by collecting and disseminating documents that  
            disclose financial and other company information so the public  
            can make sound investment decisions. To fulfill this  
            responsibility, the SEC has the authority to require  
            publicly-traded companies to file disclosure documents, which  
            are then made available to the investing public via the  
            Electronic Data Gathering, Analysis, and Retrieval system  








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            (EDGAR), the SEC's online database of public company filings.   
            All companies (including foreign entities) that publicly sell  
            securities in the U.S. must be registered with the SEC and  
            comply with its filing requirements.  


          EDGAR performs automated collection, validation, indexing,  
            acceptance, and forwarding of submissions by companies and  
            others who are required by law to file forms with the SEC.   
            Its primary purpose is to increase the efficiency and fairness  
            of the securities market for the benefit of investors,  
            corporations, and the economy by accelerating the receipt,  
            acceptance, dissemination, and analysis of time-sensitive  
            corporate information filed with the SEC.
          








          EXISTING STATE LAW:


          


          1)Requires local agency financial transaction reports to include  
            information about the annual compensation of the local  
            agency's elected officials, officers, and employees, requires  
            local agencies to post this information on their Internet  
            Websites, and requires the State Controller to compile,  
            publish, and make this information publicly available on the  
            Controller's Website.
          2)Establishes OSHPD, and designates OSHPD as the single state  
            agency to collect specified health facility or clinic data for  
            use by all state agencies. 








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          3)Requires private non-profit hospitals to complete a community  
            needs assessment and adopt a community benefits plan, and to  
            annually submit the community benefit plan to OSHPD, along  
            with a report of the economic value of community benefits  
            provided in furtherance of the plan.


          
          FISCAL EFFECT:  This bill has not been analyzed by a fiscal  
          committee.


          COMMENTS:  


          1)PURPOSE OF THIS BILL.  According to the author, currently  
            there is little transparency over whether for-profit or  
            non-profit hospitals use taxpayer dollars to provide  
            high-quality, affordable medical care, or if funds are being  
            diverted to exorbitant executive compensation packages.  The  
            author states that this bill ensures more accountability and  
            transparency in an otherwise opaque environment.


          2)BACKGROUND.  


             a)   Rising healthcare costs.  The U.S. Census Bureau has  
               published new estimates of health spending based on their  
               Quarterly Services Survey, published on March 10, 2016.  
               Analysis of the survey data shows that health spending was  
               7.3% higher in the first quarter of 2015 than in the first  
               quarter of last year.  Hospital spending increased 9.2%.  A  
               Kaiser Family Foundation analysis of the data concludes  
               that greater use of health services, as well as more people  
               covered by the Patient Protection and Affordable Care Act  








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               appear to be responsible for most of the increase, noting  
               that people are beginning to use more physician and  
               outpatient services again as the economy improves and that  
               the number of days people spent in hospitals also rose.
             
             b)   Executive compensation.  According to the proponents of  
               this bill, little is known about what factors drive health  
               care costs, however they point to the fact that hospital  
               executive compensation has spiked in recent years.   
               According to the healthcare industry publication "Payers &  
               Providers," 66 executives at the state's three largest  
               hospital systems (Sutter Health, Dignity Health, and Kaiser  
               Permanente) earned more than $1 million each in 2013, up  
               from 52 executives just two years before.





             c)   Publicly available information.


               i)     Non-profit entities.  The IRS 990, officially, the  
                 "Return of Organization Exempt from Income Tax" is an IRS  
                 form that provides the public with financial information  
                 about a non-profit organization.  It is often the only  
                 source of such information.  Non-profit hospitals are  
                 required to file the form 990 in order to maintain their  
                 non-profit/tax-exempt status.  However, only the top 20  
                 wage earners over $150,000 have to be identified on the  
                 forms, and due to differing corporate structures of  
                 hospitals and hospital systems, the data is not easily  
                 comparable.  For example, Kaiser is one corporate entity  
                 with two branches, North and South.  Their 990 covers  
                 their hospitals and health plan, however their medical  
                 group (the doctors) are a for profit entity, so their  
                                                                 salaries are not included on the 990.   Conversely,  
                 Dignity Health (Dignity) files a single 990 for the  
                 entire system.  The top 20 wage earners on Dignity's form  








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                 are system-wide employees, so their 990 excludes many  
                 CEO's.

               According a June 30, 2015 article published in the  
                 Chronicle of Philanthropy, the IRS is working on a  
                 technology that should allow it to release electronic  
                 version of the form 990 by early this year, which would  
                 make it much easier for the public to search for  
                 information about non-profit finances and operations.
               ii)    For-profit entities.   Publicly traded companies  
                 report significant amounts of financial data to  
                 shareholders and the government in their annual U.S. SEC  
                 filings.  Several documents that companies are required  
                 to file include information about the company's executive  
                 compensation policies and practices including; the  
                 company's annual proxy statement; the company's annual  
                 report; and, registration statements filed by the company  
                 to register securities for sale to the public.  The  
                 information is available on the SEC's searchable  
                 database, EDGAR.


               iii)   Private for-profit entities.  Privately owned  
                 for-profit hospitals are not required to report on their  
                 executive's salaries.  Of the 105 for-profit hospitals in  
                 the state, approximately 50 are not publicly traded, and  
                 do not report salary information.


             d)   Federal annual equal employment opportunity and  
               compensation report (EEO-1 Report).   The EEO-1 Report is a  
               compliance survey mandated by federal statute and  
               regulations.  The survey requires company employment data  
               to be categorized by race/ethnicity, gender and job  
               category.  On January 29, 2016, the EEOC announced proposed  
               changes to its EEO-1 report, which requires employers to  
               submit employee W-2 earnings and hours worked.  Under the  
               proposal, all employers with at least 100 employees (not  
               just federal contractors) would be required to comply.  In  








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               addition, the proposed changes will require the submission  
               of payroll data broken down by race/ethnicity, in addition  
               to gender.  The data would be made available to the EEOC  
               and the Office of Federal Contract Compliance Programs for  
               enforcement purposes.  The proposed rule was published on  
               February 1, 2016 and interested parties have 60 days to  
               submit comments.

             The EEOC proposing to change the reporting requirements to  
               include the data on employees' earnings and hours worked,  
               beginning in 2017.  The EEOC's proposed pay bands (which  
               are included in the reporting provisions of this bill) are  
               as follows:

                 i)       $19, 239 and under:
                 ii)      $19,240 - $24, 439;


                 iii)     $24,440 - $30,679;


                 iv)      $30,680 - $38,999;


                 v)       $39,000 - $49,919;


                 vi)      $49,920 - $62,919;


                 vii)     $62,920 - $80,079;


                 viii)    $80,080 - $101,919


                 ix)      $128,960 - $163,799;










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                 x)       $163,800 - $207,999; and,


                 xi)      $208,000 and over.


                 
               The EEOC is prohibited from making public the employment  
               data derived from any of its compliance surveys.  The EEOC  
               uses EEO-1 data to support civil rights enforcement and to  
               analyze employment patterns, such as the representation of  
               female and minority workers within companies, industries or  
               regions.  The EEOC is not proposing to require an employer  
               to begin collecting additional data on actual hours worked  
               for salaried workers, to the extent that the employer does  
               not currently maintain such information. 


               
             e)   Self-reported employee information.  According to the  
               Human Rights Campaign (HRC) unlike other diversity  
               categories, such as race and gender, employers are not  
               required to collect statistics on the number of lesbian,  
               gay, bisexual, and transgender (LGBT) people they employ.   
               Employers have sought to determine the number of their  
               employees who identify as LGBT while balancing privacy  
               concerns.  Some employers use LGBT employee group  
               membership numbers to generate estimates, but this method  
               is limited by the scope of such voluntary groups over a  
               highly dispersed workforce.  More recently, employers have  
               gathered statistics through anonymous employee engagement  
               or satisfaction surveys, which can include upward of 100  
               questions, and through confidential and secure employee  
               records.  In both cases, whether an employee discloses  
               their gender identity or sexual orientation is optional and  
               voluntary and any reporting or direct access to the data is  
               designed to ensure confidentiality of the employee.  In the  
               HRC Corporate Equality Index 2015 survey of 781 employers,  
               46% allow employees to voluntarily disclose their sexual  








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               orientation and gender identity on anonymous surveys or  
               confidential Human Resource records, compared with 141 of  
               the 519 employers (27%) in the 2008 survey and just 17% in  
               the 2006 survey.    

          3)SUPPORT.  The California State Council of the Service  
            Employees International Union (SEIU California) supports this  
            bill, stating, while California public hospitals (city,  
            county, or University of California) are already required to  
            provide complete salary information for all employees through  
            the Controller, which publicly reports these data, significant  
            gaps and inconsistencies exist for our understanding of  
            not-for-profit and for-profit hospitals.
            Hospitals which are publicly-traded must disclose executive  
            compensation for their Chief Executive Officer, Chief  
            Financial Officer, and the next three top paid employees  
            company-wide to the SEC, which seldom capture their California  
            executives if the firm is national.  SEIU California  
            continues, with nonprofits, the public makes a significant  
            investment in the form of over a billion a year in tax  
            exemptions in California, but nonprofit hospitals must only  
            disclose their top five highest compensated employees, beyond  
            their officers and directors, which often obfuscates  
            individual hospital CEO compensation, particularly at large  
            multi-facility nonprofit hospital chains.  In each of these  
            examples there has already been established a compelling  
            policy reason to understand how top executives are being paid  
            - for the sake of understanding public investments, and  
            informing private investor decision-making - but the reporting  
            requirements in each case are different in scope and detail  
            and ultimately become of little use in very large nonprofit  
            chains or national companies, especially for national systems  
            not based in California.  SEIU California notes that, at issue  
            for non-profit operated hospitals is the need to better  
            understand whether the state's investment through tax breaks  
            and others subsidies leads hospitals to provide more charity  
            care and community benefits, or whether it simply serves as a  
            mechanism to provide hospital executives with more excessive  
            pay.  SEIU California points to a 2015 study published in  








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            Health Affairs that found that California's nonprofit  
            hospitals spent the same amount on uncompensated care as  
            for-profit hospitals, which suggests greater accountability is  
            warranted.  SEIU California concludes this bill will align  
            hospital executive compensation reporting for all non-profit  
            and for-profit hospitals, including investor owned hospitals,  
            and consolidate that reporting within OSHPD, which already  
            collects and reports a myriad of different hospital financial  
            data.



            The California Labor Federations states that increasing  
            transparency of CEO compensation at hospitals is a first step  
            in examining all cost drivers in health care, starting at the  
            top of the hospital chain, and given that the largest  
            California hospitals are non-profits, taxpayers should have  
            access to the compensation and other data about hospitals that  
            they support with tax breaks.

          4)OPPOSITION.  The California Hospital Association (CHA) opposes  
            this bill and states that hospitals and health systems are not  
            opposed to transparency; many hospitals currently report much  
            of the information sought and it is available to the public,  
            however this bill only increases hospital costs and discloses  
            private compensation information without any justification.   
            CHA also notes that the bill raises significant privacy  
            concerns for a broad array of employees, extending to exempt  
            employees, not just executives, thus nurse managers or  
            information technology personnel whose total compensation  
            meets for exceeds $250,000 annually would be reported.  CHA  
            notes that in many organizations, particularly in urban areas,  
            this reporting threshold would reach deep into the  
            organization.



          The Hospital Corporation of America states it is concerned about  
            the unintended consequences of public reporting of salaries,  








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            noting that it could actually drive up labor costs where  
            employees and applicants use the salary information as  
            benchmarks for the myriad of hard to fill positions in health  
            care.

          The California Chamber of Commerce (the Chamber) states that  
            this bill inappropriately assumes that hospital executive  
            compensation is a major driver of overall health care  
            spending.  The Chamber notes that hospital executives play a  
            critical role in ensuring that millions of Californians  
            receive quality health care services, even as cost pressures  
            and increasing demand for hospital services are making it  
            harder and harder for many hospitals to keep their doors open.
          5)RELATED LEGISLATION.  AB 1890 (Dodd) provides that an employer  
            with 100 or more employees in the state and a contract with  
            the state of 30 days or more shall submit a description of its  
            nondiscrimination program to the Department of Fair Employment  
            and Housing, and shall be required to submit periodic reports  
            (no more than annually) of its compliance with that program.   
            AB 1890 is currently pending in the Assembly Appropriations  
            Committee.


          6)PREVIOUS LEGISLATION.  


             a)   AB 2040 (Cristina Garcia), Chapter 894, Statutes of  
               2014, requires local agency financial transaction reports  
               to include information about the annual compensation of the  
               local agency's elected officials, officers, and employees,  
               requires local agencies to post this information on their  
               Internet Websites, and requires the Controller to compile,  
               publish, and make this information publicly available on  
               the Controller's Website.  


             b)   SB 346 (Wieckowski) of 2015 would have repealed the  
               existing hospital community benefit law, and established a  
               new hospital community law to require private non-profit  








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               hospitals to complete a community needs assessment,  
               followed by a community benefits plan, and required 90% of  
               a private non-profit hospital's community benefit moneys to  
               be allocated to charity care and projects that improve  
               community health for underserved and vulnerable  
               populations.  SB 346 died in the Senate Health Committee.


             c)   AB 2180 (Alejo), Chapter 322, Statutes of 2012, requires  
               a written employment agreement between a health care  
               district and a hospital administrator to include all  
               material terms and conditions agreed to between the  
               district and the hospital administrator regarding  
               compensation and other benefits, as specified, that differ  
               from those available to other full-time employees.  


          7)TECHNICAL AMENDMENTS.  The definition of a covered hospital or  
            medical entity incorrectly cross references the wrong section  
            of current law.  The bill should be amended to correct the  
            drafting error, and to clarify the definition of a  
            hospital-affiliated physicians group.


          8)POLICY COMMENTS.  


             a)   As currently drafted, this bill incorporates  
               requirements that are based on a federal EEOC policy that  
               has yet to be adopted.  The Committee may wish to consider  
               whether it is premature to predicate California law on a  
               pending federal proposal. 


             b)   As currently drafted this bill requires the annual  
               report to include voluntarily self-reported employee data  
               on sexual orientation and gender identity.  Should the bill  
               move forward, the author may wish to consider adding  
               language to clarify that the data is private, and any  








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               reporting of the data will not directly identify the  
               employee by name.


             
          REGISTERED SUPPORT / OPPOSITION:




          Support


          SEIU California (sponsor)


          California Labor Federation


          California Lesbian, Gay, Bisexual and Transgender Health and  
          Human Services Network


          Equality California


          Health Access, California
          United Nurses Associations of California/Union of Health Care  
          Professionals


          Opposition



          Adventist Health and Loma Linda University Health
          Adventist Medical Center-Hanford
          Adventist Medical Center-Reedley
          Adventist Medical Center-Selma








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          Alliance of Catholic Health Care
          Antelope Valley Hospital
          Association of California Healthcare Districts
          Banner Lassen Medical Center
          Barstow Community Hospital
          California Chamber of Commerce
          California Hospital Association
          Citrus Valley Health Partners
          Coalinga Regional Medical Center
          Community Hospital Long Beach
          Community Medical Centers
          Corona Regional Medical Center
          Cottage Health
          Delano Regional Medical Center
          Desert Valley Hospital
          Eisenhower Medical Center
          Enloe Medical Center
          Fairchild Medical Center
          Feather River Hospital
          Good Samaritan Hospital
          Healdsburg District Hospital
          HealthSouth Bakersfield Rehabilitation Hospital
          Hemet Valley Medical Center
          Hospitals Corporation of America
          John Muir Health
          Kaiser Permanente
          Lodi Memorial Hospital
          Long Beach Memorial 
          Mad River Community Hospital
          Madera Community Hospital
          Marin General Hospital
          MemorialCare Health System
          MemorialCare Medical Foundation
          Menifee Valley Medical Center
          Mercy Hospitals
          Methodist Hospital of Southern California
          Miller Children's and Women's Hospital Long Beach
          Monterey Park Hospital
          NorthBay Healthcare








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          Orange Coast Memorial
          Palo Verde Hospital
          Plumas District Hospital
          Pomona Valley Hospital Medical Center
          Prime Healthcare
          Private Essential Access Community Hospitals
          Providence Health & Services
          Providence Holy Cross medical Center in Mission Hills
          Providence Little Company of Mary Medical Center San Pedro
          Providence Little Company of Mary Medical Center Torrance
          Providence Saint John's Health Center
          Providence Saint Joseph Medical Center in Burbank
          Providence Tarzana Medical Center
          Queen of the Valley Medical Center
          Redlands Community Hospital
          Ridgecrest Regional Hospital
          Riverside Community Hospital
          St. Jude Medical Center in Fullerton
          San Bernardino Mountains Community Hospital
          Santa Rosa Memorial Hospital and Petaluma Valley Hospital
          Southwest Healthcare System - Inland Valley and Rancho Springs  
          Medical Centers
          Stanford Health Care
          Tahoe Forest Health System
          Tenet Healthcare
          Ukiah Valley Medical Center
          United Hospital Association
          Valley Children's Healthcare
          Vibra Hospital of Sacramento
          Watsonville Community Hospital
          White Memorial Medical Center


          


          Analysis Prepared by:Lara Flynn / HEALTH / (916) 319-2097










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