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
                               ___________

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.