Committee weighs bill to add public appointees to hospital boards and tighten executive pay disclosures

Speaker 2 (role not specified) outlined S.188 to the Senate Health & Welfare committee, saying the bill would require hospitals to include at least two voting public representatives on their boards appointed by the governor and permit public members to serve on board committees, including compensation committees.

Under the bill, compensation decisions for hospital officers and executives would be subject to review: hospitals would file statements with the Green Mountain Care Board before approving executive compensation changes, including benchmarks, peer-group data and any consultant analyses. The board could require hospitals to change their peer group and could retain outside consultants, at hospital expense, to evaluate compensation materials. The proposal would allow hospitals to designate certain materials confidential or proprietary with board confidentiality protections.

Speaker 1 (role not specified) told the committee that "the hospital association is not happy" with these provisions and that governance and compensation have been controversial, citing earlier concerns connected to the UVM network. Committee members said they will invite testimony and consider how to balance oversight and nonprofit corporation law.

No vote was taken. Committee staff flagged that related language appears in a House bill (H.95) and that further testimony from both hospitals and community groups will be scheduled.