WhidbeyHealth commissioners decided Monday to give the outgoing CEO her annual incentive compensation.
Whidbey Island Public Hospital District Board of Commissioners president Ron Wallin said the board decided Geri Forbes, who will retire July 1, completed 80 percent of her 2018 goals.
Per her contract, commissioners must pay incentive compensation in an amount up to 25 percent of her base salary, which last year was $390,000, “depending on the extent to which the board reasonably determines in its discretion” that she met her goals and objectives.
Black’s Law Dictionary defines incentive compensation as “payments in excess of agreed wages, a bonus and profit-sharing as an incentive for good performance.”
Wallin said in an interview that because of significant public comment, the next CEO’s contract will not include this type of compensation. He said the commissioners are bound by the contract to grant these bonuses each year if Forbes meets her goals.
The board agreed upon seven goals for 2018, which include design and initiate a women’s health services initiative, develop medically assisted treatment by three to four providers across outpatient continuum of care, meet or exceed schedule for construction completion, get approved for USDA loan, achieve budgeted revenue over expense, and “optimize available dollars and services provided” by North Sound Accountable Communities of Health, according to a list of goals obtained by public records request.
The list additionally included an action, “intensive” survey preparation for the Centers for Medicare and Medicaid Service and Department of Health survey.
Wallin said the amount Forbes will be awarded hasn’t been decided because the period covers two contracts. It’s in the process of being calculated and will be determined by the end of the month, he said.
Chief Financial Officer Ron Telles told commissioners at Monday’s meeting that February continued the trend of low patient volume and low revenue. He said the snow made an impact as well because some clinics closed.
He reported Whidbey-Health’s revenue coming it around $9 million and operational expenses around $9.5 million.
The number of surgeries performed is down from previous years, he said. He also reported discharges and days patients spent at the hospital are the lowest in the last five years.
He said expenses have started to drop now that the hospital is making its own pharmaceutical products again with the completion of the new pharmacy. There were also several large paid time off payouts to outgoing personnel in the last couple of months.
Telles said he doesn’t expect as many of these payouts to occur in upcoming months.
He told commissioners he expects March’s numbers to be an improvement.