University Medical Center CEO receives six-figure bonus during hospital’s ‘challenging’ year

It’s been a challenging year for University Medical Center.

According to UMC, El Paso Children’s Hospital owes it $70 million, which forced UMC to lay off 56 employees earlier this year.

And the hospital’s relationship with Texas Tech has been rocky.

These issues influenced UMC’s board of directors evaluation of UMC CEO Jim Valenti last week.

Valenti still got a six-figure bonus, though.

In his latest evaluation, board members praised the way Valenti has improved patient care at UMC and his work with medical reimbursements.

They said he’s a masterful manager of talent.

But the evaluation also highlights areas where he needs improvement, saying Valenti can be thin-skinned, needs to be more tactful, and could better manage relationships with Texas Tech and the children’s hospital.

“We are making a lot of sacrifices,” Valenti said in August when UMC faced a $60 million shortfall.

It was hit hard by El Paso Children’s Hospital’s inability to pay back UMC’s past investment.

UMC called for a tax increase – then backtracked.

In the end, UMC implemented furloughs, cut benefits, and eliminated positions.

“There’s no doubt that this has been a challenging year,” UMC board chair William Hanson said, adding it has been one of the most difficult years. But one area did not suffer.

“Always patient care,” Hanson said. “Patient satisfaction that’s always at the top of our priority list.”

Hanson says Valenti met the expectations of the board and those of the joint commission, the organization that accredits UMC.

As part of the cuts, no one at UMC, including Valenti, got a raise this year.

Valenti’s base salary is $460,000.

But he did get a bonus because he met goals outlined in his contract. The board awarded him a $119,000 bonus. The El Paso Times reported in 2012 that Valenti received a $117,401 incentive bonus in 2010.

“It’s reasonable in the context of the market that Mr. Valenti works in,” Hanson said.

Hanson says the pay is comparable to the salaries of other hospital CEOs around the region.

Board members do not include their names with their comments in Valenti’s evaluation, but here are a few of the comments:

“UMC and and El Paso is truly blessed to have this gifted and generous hospital leader”

Valenti “needs to use more tact in dealing with the children’s hospital situations. needs to weigh his choice of words when in a difficult and challenging situation.”

Hanson though, believes it was an overall positive performance.

” I think it’s a vote of confidence,” Hanson said.

Some board members commented that Valenti’s handling of UMC affairs in the media have been unprofessional.

And the evaluation proposes a more sophisticated public relations strategy for 2015.