Dive Brief:
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The HHS Office of the Inspector General is considering whether limits on hospital executive salaries might offer substantial Medicare savings.
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Government health officials plan to review hospital data and Medicare cost reports to see how executive salaries fall within organizations' operating costs.
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Medicare does not impose limits on how much of an executive's salary can be included in hospital cost reports. But by 2015, the OIG expects to release information on how salaries are included in hospital cost reports and what caps they recommend.
Dive Insight:
In taking on the issue of hospital executive compensation, the feds are not alone. Several state governments, such as Massachusetts and New Hampshire, are also taking a closer look at how executives are paid in hospitals. There is no sign yet that they're planning to develop specific caps for executive compensation for hospitals, but it seems likely that will emerge given the direction of their research. Hospital executives who enjoy generous salaries may find themselves getting their pay slashed at some point in the future.