News & Observer | newsobserver.com | Big bonuses at UNC Health Care stir anger

Published: Oct 13, 2006 12:00 AM
Modified: Oct 13, 2006 03:32 AM

Big bonuses at UNC Health Care stir anger

 

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Much to the chagrin of the state-supported UNC Health Care system's critics, the budget year that ended June 30, 2006, yielded a financial windfall for health system managers.

The UNC system paid out more than $2.5 million in bonuses based on financial performance, achievement of quality benchmarks and employee and patient satisfaction.

Health system chief executive Dr. William L. Roper led the pack with a bonus of $110,010. UNC Hospitals CEO Gary Park wasn't far behind with a $103,632 bonus. Dr. Marschall Runge, president of the UNC physician practice, received a bonus of $101,246.

Scores of lower level managers received bonuses ranging from about $1,300 to awards in the tens of thousands of dollars. Bonuses are based partly on the health system's financial performance, partly on quality and partly on employee and patient satisfaction.

John Hammond, a retired professor of medicine at UNC-Chapel Hill and outspoken critic of UNC Health Care's current administration, was not smiling. Hammond helped launch a recent petition signed by more than 1,100 people, excoriating UNC for aggressive collection policies and other tactics that critics say prevent or discourage poor patients from seeking care.

"Money diverted for incentive bonuses directly minimizes the amount available to pay for the historic mission of the hospital, which is to care for the people of North Carolina," Hammond said. "These folks are highly compensated already."

The UNC system's two top executives, Roper and Park, also received increases to their base pay this year. After an increase of $23,280 that took effect July 2, Roper's annual base salary is $489,030. Park received an increase of $26,080, bringing his base pay to $460,780 a year.

Shaheen defended

Federal prosecutors want to be clear about something -- they have no reason to believe that state lottery director Tom Shaheen has any undue connection to lottery vendor GTECH Holdings of Rhode Island.

Shaheen's name had come up a couple of times in the federal trial of former lottery commissioner Kevin L. Geddings, who was charged with hiding his financial ties to Scientific Games -- a chief rival of GTECH -- when Geddings took a seat on the lottery commission last year. He was found guilty Thursday on five of six charges.

In his closing argument this week, Thomas Manning, Geddings' attorney, said that Shaheen had toured the legislative building last year with lobbyists from GTECH and that Shaheen had close ties to the company from his work on lotteries in other states.

"He's a GTECH man," Manning said.

Federal prosecutors, in closing arguments, said they felt the need to defend Shaheen "to save the man's reputation."

"There is no evidence in this trial that Tom Shaheen is a GTECH man," said Assistant U.S. Attorney John Bruce.

Shaheen said in an earlier interview that he does not play favorites and has worked in states where both GTECH and Scientific Games are contractors. Shaheen said he came to North Carolina last year as president of the national lottery association and paid his own way.

Shaheen was hired last year by the state lottery commission, and he oversaw the awarding of contracts to GTECH.

Willoughby honored

Wake District Attorney Colon Willoughby received this year's Outstanding District Attorney Award from the N.C. Victim Assistance Network.

Willoughby received this year's award in part for challenging other district attorneys to join NCVAN and to make a personal contribution to the victim's memorial garden.

Willoughby also was "the primary force" behind prosecutors and victims' advocates working together to write the enabling legislation for the state's victims rights act, according to an NCVAN press release.

Willoughby has been Wake County's top prosecutor since 1983.

Fisher can be reached at 829-4753 or jfisher@newsobserver.com.
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