UMC CEO Valenti responds to ABC-7 about $120,000 bonus

ABC-7 viewers were outraged after learning the CEO of University Medical Center received a nearly $120,000 dollar bonus.

Last week, Jim Valenti passed a board evaluation with “flying colors.” The board president said Valenti met goal No. 1 — quality patient care, praising Valenti’s “exceptional leadership in a rocky year for UMC.”

That year included a $60 million dollar shortfall that led to 100 budget cuts, more than 50 employees laid off and a $20 million dollar line of credit, plus friction with Texas Tech and a Children’s Hospital with millions of dollars in unpaid debt.

Valenti declined a formal interview request made through his staff on Tuesday, but ABC-7 encountered him later in the day at the County Courthouse.

When asked if he would comment on the bonus, Valenti replied: “Well, I’d like you to visit with (UMC board chair) Mr. (William) Hanson.”

Hanson told ABC-7: “The board recognizes that he earned (the bonus) by completing goals and projects that the board itself established. the payment is a legally required payment per the terms of the contract.”

ABC-7 then asked Valenti if he felt comfortable accepting the $120,000 bonus just three months after more than 50 employees were laid off at UMC.

“I think it’s important that you have in all organizations competent leadership,” Valenti replied.

Valenti has received bonuses of more than $100,000 each of the past 10 years. His first year at UMC in 2006 he received the largest one of more than $148,000. His lowest bonus was in 2007 when he received just over $105,000. The past three years Valenti’s bonuses have ranged from $120,000 to $133,000.

ABC-7 pointed out to Valenti that the bonus upset a lot of people and asked him if he had anything to say to those who may still be seeking employment after being laid off at UMC.

“I think there’s plenty of opportunity,” Valenti said. “We’re hiring a lot of people in healthcare.”

“Do I understand the public outrage? I do,” County Judge Veronica Escobar said of the situation.

“I’m certainly not pleased with the board’s decision,” County Commissioner Vince Perez added, “particularly given the timing of all that’s happening at UMC.”

ABC-7 asked Escobar and Perez whether Valenti should consider returning the bonus.

“You know, I think that’s an option he should consider,” Escobar said.

“That’s his decision,” Perez added. “That’s something I would encourage given the timing, because I think the big issue right now is the publics trust.”

So ABC-7 asked Valenti whether he would consider returning the bonus.

“I don’t believe so, I don’t believe so,” Valenti replied, before being asked if he felt like he’d earned it. “Absolutely.”

Hanson further explained that Valenti’s compensation is based on a competitive contract agreed to by the Hospital District and CEO nearly a decade ago.

ABC-7 has also learned that Perez is asking for the resignation of the UMC Board co-chair Laura Ponce, who’s a big Valenti supporter. Ponce was appointed by former commissioner Tania Chozet and was inherited by Perez. Ponce did not return phone calls from ABC-7 Tuesday to her work and cell phones.