By Clyde Noel and Bruce Barton
 Domanico |
Finding himself in the middle of a controversy over whether his salary should be made public, El Camino Hospital CEO Lee Domanico said he would not reveal any number until the hospital’s board of directors ruled otherwise.
In an exclusive interview with the Town Crier Friday, Domanico also touched on the recent, high-profile departure of veteran anesthesiologists and the hospital’s rebuilding project.
Under recent pressure from local newspapers to reveal his salary, Domanico said, “It has been the board’s position not to disclose the salaries of individuals.”
Domanico felt educating the public on the specifics of the process in determining compensation was more helpful than throwing out a specific figure.
“A compensation committee, which includes two board members, undertakes an extensive and detailed process to determine the appropriate compensation levels for its executives, including the chief executive officer,” Domanico said. “Our hospital base salaries are positioned in the 75th percentile of a peer group of hospitals similar in size and complexity across the country.”
Domanico said the hospital is a non-profit 501(c)(3) and run as a private business although governed by a public, elected district board. The board filed exemption from public disclosure in 1999, and has a legal right to not disclose.
He said the salary issue is surfacing because a minority of doctors and staffers are not happy with hospital management and want to infer that the hospital is overcharging patients to enrich executives’ salaries.
“Are the hospital charges the highest in the area? No,” Domanico said. On the other hand, a recently departed group of anesthesiologists, which refused to honor hospital insurance contracts and has since been replaced, was charging exceedingly high rates, he said.
In a discussion about the departing anesthesiologists from the Northern California Anesthesia Associates last November, Domanico said the problems in the transition have been overcome.
The transition to a new anesthesia team is working out “reasonably well,” Domanico said, with only one complaint during the past month. The old group walked out with 48 hours notice.
“We asked them two or three times to return and they refused,” said Domanico, who made it clear that the old group decided to leave on their own and were not forced out as some reports alleged.
He said the new group, Pacific Physicians Medical Inc., has done more than 1,000 surgeries successfully and a nationally renowned anesthesiologist is helping with peer review.
The new group stands to be upgraded from temporary to provisional status at tonight’s hospital board meeting.
El Camino has had a complete turnabout with its finances under Domanico’s leadership. In the four years since he arrived, the hospital has gone from a $13 million loss to a profit of more than $25 million in the recent fiscal year.
“Back when we were at an operating loss, no one would have loaned us (funding) for hospital construction,” Domanico said. “We’re trying to produce a financial picture that will result in El Camino achieving a high credit rating. The hospital is borrowing $150 million to $200 million in addition to nearly $150 million voters approved under Proposition D.
“What I’m most pleased about is we were able to do that while improving employee and patient satisfaction and lowering turnover rates. Our turnover rates are half the state average. That tells you people like to work here.”
The construction timeline for rebuilding the hospital is on schedule with the demolition of the old tower starting in August. Temporary offices are being erected across from the hospital entrance where administration offices will be located during construction. Because of escalating costs of construction materials, the project will need an additional $40 million. But Domanico said loaners will cover that.
