« Indiana Law - IU settles with Ron Felling | Main | Law - Documents trump DNA in Illinois paternity suit »
Friday, September 24, 2004
Indiana Law - Details of Hospital Contract Interesting
The details of the contract of Porter hospital (formerly known as Porter Memorial Hospital in Valparaiso) with its CEO are detailed in the Gary Post Tribune today, in this story. Some quotes:
VALPARAISO — The chairman of Porter hospital’s board of directors says the board will remove a controversial clause in the contract of its CEO. The “rolling term” clause would have renewed CEO Ron Winger’s five-year contract every day he showed up for work.Charges that the clause was added without the knowledge of the board have surfaced in the past week, after copies of the contract were distributed by Julie Wheeland, founder of Porter Watch, a recently formed hospital watchdog group. * * *
The rolling term was news to former board vice president Dan Roszkowski, who oversaw Winger’s hiring in 2001. * * * Roszkowski said he was surprised the board will just now be discussing the amendment 19 months after it was signed by board chairman John Rhame III and Winger. But Rhame said the rolling term clause was never officially ratified by the hospital board and will be removed at the hospital’s next board meeting at 5 p.m. Wednesday.
What does remain in force from the second amendment is a seven-year contract beginning from the original date of agreement on May 7, 2001. Rhame said the perpetual-renewal clause would only have taken effect after the seven years had been completed by Winger. Such rolling term agreements provide a “stability factor” to institutions like the hospital, Rhame said. * * *
The contract allows for a new, full-sized leased automobile for Winger every two years. It also includes gasoline reimbursement, country club memberships, six weeks of annual and accruable paid vacation, and generous pension and severance provisions. Parks said that anything more than a five-year contract is out of the ordinary. But Rhame defended the contract with Winger, and said contracts are usually in a constant state of renegotiation. He said Winger’s pay — a basic total of more than $551,000 in 2003 — is comparable to Chicagoland pay for hospital CEOs.
Posted by Marcia Oddi on September 24, 2004 09:17 AM
Posted to Indiana Law