The Palomar Health board of directors has agreed to a new 27-month contract with its current CEO, Diane Hansen. Her previous contract expired on September 10.
In announcing their decision to extend a new contract to Hansen, which she accepted, Palomar Health Board Chair Richard Engel, MD said Hansen and her administrative team had engineered “a remarkable turnaround in many important areas” of the organization since taking the helm in 2017, first as interim CEO and later as permanent president and CEO.
Some of the successes Dr. Engel cited are: raising the system’s patient quality rankings in Leapfrog to A and B, instituting a capital improvement project that has invested more than $70 million in equipment replacement and program expansion, opening a new Crisis Stabilization Unit, negotiating a new labor agreement and improving the organization’s financial foundation. He also cited her strong leadership during the COVID-19 pandemic.
In an effort to set precedent for all future CEO contract negotiation, the board consulted with multiple nationally recognized experts in CEO contracts and compensation packages and drafted a contract that is commensurate with comparable hospital system CEOs.
“The contract is based on credible, independent and unbiased market analysis that is fair to both Ms. Hansen and the organization,” Dr. Engel said, adding that the COVID pandemic impact on executive compensation was factored into the proposal.
“I am confident Diane is the right leader for Palomar Health and I can unequivocally say we are very fortunate to have her as our CEO at this extremely critical time,” Dr. Engel said.