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Rice board backs job efficiency criteria for new CEO

WILLMAR -- Rice Memorial Hospital's board of directors approved a set of criteria Wednesday for rating the performance of their new chief executive, Michael Schramm, during his first six months on the job.

Among the goals for the new leader of the city-owned hospital: Start working on a comprehensive strategic plan, assess the hospital's quality initiatives, and end the fiscal year with a profit.

The guidelines were de-veloped by the b-ard's hu-man resources committee, with input from Schramm, and recommended for adoption by the full board.

Schramm's success at fulfilling all the objectives will determine whether he's eligible for a $10,000 performance incentive for the year.

Wayne Larson, chairman of the hospital board, said half of the CEO's job evaluation will be based on overall leadership in areas such as communication and relationships with the board, hospital employees, physicians and the community.

The other half of the evaluation will be based on specific objectives.

Although many aspects of CEO performance can't be quantified, board members believe it's important to have at least some goals that are measurable, Larson said.

"We spent quite a bit of time talking about the criteria," he said.

The board settled on a list of five.

There'll be a challenge in meeting all five of them, said board member Steve Cederstrom.

Addressing the hospital's quality programs, for instance, will entail going "way deeper" than a surface assessment, he said. "There's going to be some work involved in getting this done."

The new chief executive, who started on June 1, will undergo his first performance review during a closed session with the board at the end of the year. The $10,000 bonus is prorated according to how well he meets all the objectives, and is paid in addition to a $250,000 annual salary.

Next year the bonus jumps to $20,000 for the full year. Board members also will develop a new set of goals they want the chief executive to fulfill.

Anne Polta

Anne Polta covers health care, business/economic development and general assignment. Her HealthBeat blog can be found at Follow her on Twitter at @AnnePolta.

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