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Minnesota nurses union proposes cap on nonprofit hospital CEO pay in 'Healing Greed Agenda'

The Minnesota Nurses Association released its plan for the 2024 legislative session Monday with the goal of putting patient needs ahead of 'corporate greed' at nonprofit hospitals

"Mayo Clinic Bold. Forward. Unbound. in Rochester" Approved
Mayo Clinic CEO Dr. Gianrico Farrugia speaks during an event in Rochester on Tuesday, Nov. 28, 2023, to announce that Mayo Clinic's "Bold. Forward. Unbound. in Rochester" project was approved by Mayo's Board of Trustees. The project amounts to a $5 billion investment that will reshape six blocks of downtown Rochester by 2030.
Joe Ahlquist / Post Bulletin file photo

ROCHESTER — In the wake of Mayo Clinic using the leverage of the state nurses union is proposing a “Healing Greed Agenda” at the Minnesota Legislature that includes a hospital CEO salary cap.

The Minnesota Nurses Association released its agenda for the 2024 legislative session on Monday, Feb. 5, with the stated goal of putting patient needs ahead of “corporate greed” at nonprofit hospitals. The legislative session begins Feb. 12.

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“As corporate health care executives continue to exert greater and greater influence in our communities, it's never been more important for those who provide the care Minnesotans depend on to speak truth to power,” wrote MNA President and Essentia-Duluth RN Chris Rubesch in the announcement. “Hospital executives think they run the show. They have the money to pay more than 60 lobbyists to ensure the system stays exactly like it is.”

While the Nurses Association did not specifically name Mayo Clinic, the agenda appears to target it. In 2023, if the Legislature passed the Keep Nurses at the Bedside Act. The bipartisan bill opposed by Mayo Clinic was eventually pulled by the Health and Human Service omnibus.

“This gross display of corporate bullying made clear the need to put meaningful new regulations on these health care companies, to protect patients and workers from these same corporate abuses in our hospitals,” according to the MNA. “The Healing Greed Agenda would take important steps forward to hold hospital executives accountable to patients before profits. It would limit and shine a light on executive pay at nonprofit hospitals; improve public notice when executives plan to close hospitals, clinics, or units; protect patients from predatory medical debt collections; and make sure tax-exempt hospitals give back to the communities they make billions off of, not just pay out millions to executives at the very top.”

In addition to improving nurse staffing and forgiving nurse loans, the MNA Healing Greed agenda includes provisions to make nonprofit hospitals more transparent and accountable.

“It would limit and shine a light on executive pay at nonprofit hospitals, improve public notice when executives plan to lose hospitals, clinics, or units; protect patients from predatory medical debt collections; and make sure tax-exempt hospitals give back to the communities they make billions off of, not just pay out millions to executives at the very top,” wrote the Minnesota Nurses Association.

The announcement did not state the cap amount that the MNA is proposing for nonprofit hospital CEOs' salaries.

In 2022, Mayo Clinic CEO Gianrico Farrugia was paid $3.72 million, a 6.75% increase

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Many of Farrugia’s peers were paid much more. Cleveland Clinic CEO Dr. Tomslav Mihaljevic was paid $12.38 million in 2021 and Cedars Sinai Medical Center CEO Thomas Priselac made $6.12 million in 2021.

Owatonna resident Javon Bea, the CEO of Javon Bea Hospital and a Rochester developer, received $12.5 million from his health system in 2022.

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Jeff Kiger writes a daily column, "Heard Around Rochester," in addition to writing articles about local businesses, Mayo Clinic, IBM, Hormel Foods, Crenlo and others. The opinions of my employer do not necessarily reflect my opinions. He has worked in Rochester for the Post Bulletin since 1999. Send tips to jkiger@postbulletin.com or via Twitter to  . You can call him at 507-285-7798.
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