Parkland Hospital CEO’s $1.1 Million Salary

The new CEO of Parkland Memorial Hospital could receive over $1.1 million per year in compensation, reported the Dallas Morning News, as part of a new three-year contract. Dr. Fred Cerise was introduced on Monday in a news conference to oversee the publicly funded hospital, which has a new $1.27 billion facility expected to open within a year.

These kind of executive contracts makes sense as part of an institutionalized culture that embraces high administrative and capital outlays at the expense of patient care. As Kevin Carson explained in his paper “The Healthcare Crisis” (summarized here), hospital administrators as the de facto decision makers view this type of spending, rather than waste, as necessarily adding value to the customer experience.