Let’s face it, Jim Valenti is going to get a bonus this year. He knows it, we know it and his board has already approved it, we’re all just waiting for it to be deposited into his account. But does he deserve it? In April of this year, KVIA reported: “In order for Valenti to get any bonuses at the end of the current fiscal year, he must avoid another downgrade in the hospital’s bond rating and maintain the Joint Commission Certification at the hospital. The goals are divided into four major categories: patient satisfaction, quality of care, achieving annual performance goals and the financial health of the hospital.” (http://m.kvia.com/news/umc-ceo-valenti-wont-seek-contract-extension-contract-ends-in-may/35672248). Let’s look at these individually:
- Avoid another downgrade in UMC’s bond rating: In February of this year Fitch Ratings put a negative watch on UMC, but then removed the watch in June (read the article here). Four days ago, S&P officially downgraded UMC’s bond rating (read the article here), conveniently AFTER Jim Valenti’s evaluation.
- Maintain Join Commission Certification: One can argue that he did maintain it, after receiving a preliminary denial of accreditation in June of this year (read the article here). From what we know, this wasn’t just because of employees not following policies, but also due to poor sterilization procedures that lead to UMC having to cancel elective surgeries. Eventually, UMC was able to have the Joint Commission come back and re-evaluate them. However, how long did UMC have this problem? Since Joint Commission inspection is only every few years, this problem could have existed for quite some time and its effects are far reaching. In the October 13th board meeting at UMC, we found this (you can read the meeting minutes here:
It would appear that the UMC Medical Executive Committee, at least, is concerned about the far-reaching affects these poorly sterilized instruments may have had on people.
It will be interesting to see what kind of spin the UMC Board puts on this one to justify the bonus. They have already announced a FANTASTIC financial year for UMC in anticipation of giving Jim a bonus. 30% of his base pay, that’s what he gets; what did we get for that money?