Palomar Health CEO to earn $725K in first year
By Elizabeth Marie Himchak
Palomar Health plans to pay its new president and CEO $725,000 during his first year in the post, not including bonuses and other financial perks.
U-T Community Press obtained a copy of Robert “Bob” Hemker’s contract through a California Public Records Act request submitted last week to the taxpayer-funded health district that serves the Inland Corridor communities.
Hemker was unanimously selected by the Palomar Health board of directors on June 23 to succeed Michael Covert, whose resignation went into effect on Aug. 15. Covert, who led the district since 2003, left because he accepted an offer to be the regional market CEO of Catholic Health Initiatives St. Luke’s Health System in Houston, Texas. During the year before he left, Covert was paid $903,000 plus benefits and bonuses. His annual salary increased to $948,150 on July 1.
Prior to becoming Palomar Health’s leader, Hemker was its chief financial officer, a job he held since 2001. In 2002 he also served as the district’s interim CEO before Covert arrived.
Hemker’s new duties include reporting to Palomar Health’s board of directors, serving as the district’s senior executive and being responsible for providing overall strategic direction, leadership plus operational and strategic oversight of Palomar Medical Center and Palomar Health Downtown Campus in Escondido, Pomerado Hospital in Poway and Palomar Health’s other facilities, like its Expresscare health clinics.
According to Hemker’s contract, dated July 29, his base annual salary from Aug. 16, 2014 to June 30, 2015 is $725,000. For each year after, his base salary will be set by the district’s board. In addition, he is eligible to receive an annual performance bonus of up to 30 percent for each of the applicable contract year’s base salary, based on achievement of performance goals established by the board. These could include Palomar Health’s financial performance, quality outcomes, market share, strategic development plus board, physician and employee relations.
As for benefits, they include the district paying 100 percent of the health, dental and vision insurance coverage premiums for Hemker and his eligible dependents. In addition, he is eligible for term life insurance in the amount of four times his base annual salary up to the maximum allowed by Palomar Health’s life insurance coverage plan and it will reimburse Hemker for his personal term life insurance policy premiums for coverage up to a maximum of an additional $1 million.
He is also eligible for long term disability insurance at 66 2/3 percent of his base annual salary and Palomar Health will provide him with an automobile allowance to the same extent generally available to other similarly situated executive employees. He is eligible to receive paid time off and Palomar Health will make total annual employer contributions on behalf of Hemker to the Palomar Health Money Purchase Pension Plan or other plans the district provides that are in comparable amounts and no less than 10 percent per annum.
Hemker’s contract is in effect through June 30, 2018. The board can decide to extend or amend it on or before June 30, 2016 after meeting with him.
At the time of his promotion, district spokeswoman Bobette Brown said the board only looked in-house for Covert’s replacement, which was part of Palomar Health’s succession plan. Hemker, a Carlsbad resident, earned a bachelor’s degree in accounting at San Diego State University and a master’s in healthcare administration from the University of La Verne.
He has worked in the healthcare industry for more than three decades. His experience has included managing the financial and operational aspects of healthcare organizations and working closely with the community, physicians and board members. Prior to joining Palomar Health he was an executive at for-profit, not-for-profit and governmental acute care hospitals in Southern California and Hawaii.
