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Posted on Fri, May 10, 2013 : 12:26 p.m.

University of Michigan names Paul King new executive director of C.S. Mott Children's Hospital

By Ben Freed

Paul A. King, CEO of Children’s Hospital Los Angeles Medical Group will take over as the new executive director of C.S. Mott Children’s Hospital and Von Voigtlander Women’s Hospital, the University of Michigan announced Friday.

King will replace interim director Chris Dickinson in August, the university said in a press release.

King_Mott_Exec_Director.jpg

Paul King will come to Ann Arbor from Los Angeles where he was the President and CEO of the Children's Hospital Los Angeles Medical Group.

Courtesy UMHS

“We are thrilled to have Paul join our team,” U-M executive vice president and Health System CEO Ora Pescovitz said in a statement.

“We’ve invested in a new facility, and we wanted a strong leader to guide the strategic growth of our children’s and women’s programs and services.”

According to a U-M spokesperson, King has signed on for a five year appointment with a starting salary of $420,000. He will also receive the regular U-M Health System benefits package.

According to publically available databases, Dickinson’s salary as interim director of the hospital was $192,198 for the 2012-13 fiscal year. Former director Patricia Warner led the hospital from 2009 to 2012 and had a base salary of $287,224 when she retired.

Mott moved into its new 1.1 million-square-foot home in December 2011. The facility took five years and $754 million to complete and has already been praised as one of the top pediatric hospitals in the country.

In a statement, King said he is excited to take over the reins at Mott. He added that he believes that health care is a calling and that he loves the inherent optimism involved in taking care of children.

“I love… the idea of caring for the future, making their lives better, he said.

“There is a very talented team in place and a wonderful new facility [in Ann Arbor]. I look forward to working with them to create a plan to take health care delivery to the next level.”

The new hospital saw approximately 9,000 inpatient visits, 21,000 emergency department visits, and 290,000 outpatient visits in 2012. The health system as a whole operated at a 0.5 percent loss in 2012, in part due to costs associated with opening the new facility, but increased per-patient revenue at the children’s hospital is expected to help bring the system back into the black in 2013.

For the past eight years, King has been leading the Los Angeles-based pediatric group and serving on the executive team of the 365-bed Children’s Hospital Los Angeles. He previously held a senior management position at the Mayo Clinic in Scottsdale, Ariz..

“We are excited to have someone with Paul’s varied and excellent background join our leadership team,” Timothy Johnson, chair of the Department of Obstetrics and Gynecology, said in a statement.

“He will bring new ideas and new experiences that will be invaluable to the Women’s Health Program at the Von Voigtlander Women’s Hospital.”

King was selected after U-M Hospitals and Health Centers CEO Doug Strong led a nationwide search for Warner’s replacement. Strong said in a statement that King’s prior work showed that he can help further the Mott Children’s Hospital network of partnerships for Children’s care. The hospital recently affiliated with Sparrow Children’s center in Lansing to help provide specialized care in the area.

“Paul has a prominent role in hospital operations and also in leading a large physician group,” he said.

“He understands all the partners needed to continue our efforts to serve our patients in the state of Michigan and beyond.”

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2.

Comments

Mick52

Sat, May 11, 2013 : 6:25 p.m.

I am sure that Mr. King is a nice fellow and I have no animosity toward him. However I see this as further proof the Obama administration's quest for "affordable health care" is folly. I cannot understand why the AHA does not contain provisions to limit this nonsense of allowing executive pay to soar to unbelievable heights while many hospitals try to save by cutting actual care givers. I see nothing in this story, especially the comments by the U spokes people that Mr. King possesses some special knowledge/skills that someone who would accept the previous pay rate hasn't. Ironically , the Freep published this story on May 9, perhaps a scoop of AA.com's announcement of this appointment. It notes how medical charges very within various state hospitals. Guess whose charges are by far the most expensive? http://www.freep.com/article/20130509/NEWS/305090045/State-hospitals-charges-procedures-vary-by-thousands-dollars For me, the legacy of Mary Sue Coleman will be the president who allowed executive pay to reach unreasonable, un-defendable amounts with no benefit.

northside

Sat, May 11, 2013 : 12:13 p.m.

@ Silly: That's an impressive amount of racism to pack into just one comment!

snark12

Sat, May 11, 2013 : 1:02 p.m.

Yes, you don't usually see such blatant old-fashioned racism on display today. Ah, memories.

DJBudSonic

Sat, May 11, 2013 : 3:46 a.m.

First order of business: please have some children's books placed in the waiting rooms on the 9th floor. I spent several hours watching a child while my friend was in surgery with his wife, and there were no kids books in the family waiting room. The woman at the desk had mercy and offered us some crayons and printer paper which helped. It is a beautiful facility, just need some books on the waiting rooms. Thanks.

DennisP

Sat, May 11, 2013 : 7:32 a.m.

It's amazing that that kind of obvious thing is overlooked. BTW, nice of you to care for a child all that time to help your friends out. The news stories are about the directors, CFOs and CEOs, but it's really the everyday heroes who keep the world progressing forward in terms of spirit and civility--which are the kinds of things that really count.

Jim

Sat, May 11, 2013 : 1 a.m.

Unbelievable. Is there no limit for salaries? The rot of our country continues.

Michigan Man

Sat, May 11, 2013 : 4:42 p.m.

Jim - hating on the rich?

Jay Thomas

Sat, May 11, 2013 : 12:16 a.m.

So they are raising the salary for this position by a whopping 46% in one go? Just couldn't get anyone else this talented for less, right. Isn't the hospital going through serious financial problems which have only gotten worse under Ora Pescovitz? I think the U is out of control and seriously mismanaged. But then that seems like situation normal in Washtenaw County.

Greg

Fri, May 10, 2013 : 11:49 p.m.

Pretty amazing how the hospital system is always out of money except when the administrators or docs need more.

ManA2

Fri, May 10, 2013 : 11:47 p.m.

Bizarre that the article, and then all the comments, are about his salary. It is totally appropriate for the job. Congratulations to Mr. King and welcome to Ann Arbor. Congratulations to the University for landing a highly qualified candidate. We all look forward to your leadership making it an even finer hospital.

Solitude

Sat, May 11, 2013 : 6:27 p.m.

Right, but you don't always get more by paying more.

ManA2

Sat, May 11, 2013 : 4:01 p.m.

Solitude - sometimes you get what you pay for. His compensation is completely appropriate for the scale of this job.

Solitude

Sat, May 11, 2013 : 3:17 p.m.

How is it bizarre? If it's totally appropriate for the job, then why was the person who did the job for four years making more than $100K less than that at the end of her four-year tenure? If it's so appropriate, why was the interim guy making more than $200K less? Was Warner just pathetically underpaid, at close to $300K per year in base salary? I hardly think so, especially in a place with a cost of living as moderate, comparatively, as Ann Arbor. The cost of living in A2 has got to be half or less than what it is in LA. Did they just throw an extra hundred grand his way for no particular reason? Even if he was making substantially more in LA, which I'll bet he was, the money Warner was making can easily fund a quite lavish lifestyle here in SE Michigan.

Rick Stevens

Fri, May 10, 2013 : 9:38 p.m.

More expensive administrators while staffing is still short. The hallmark of system out of control and destined to fail.

Michigan Man

Sat, May 11, 2013 : 4:41 p.m.

System failing? Mott one of the top Children's Hospitals in the world!

Dr. Fate

Fri, May 10, 2013 : 8:21 p.m.

Why didn't momma tell me to become a CEO?

Michigan Man

Sat, May 11, 2013 : 4:40 p.m.

Dr. F - My mother did tell me to become a hospital executive - have had a really nice 40+ healthcare career + still working + just promoted again two weeks ago, well into the 60's. Sorry your mother did not know my mother growing up! Think I made a pretty good choice. Much success to the new man at Mott!

Solitude

Fri, May 10, 2013 : 8:18 p.m.

Apparently, the health system had an extra $132,776 lying around that it just didn't know what to do with. I'd be interested to hear what the reasoning was behind such a huge salary bump for this guy compared to the woman who left. I also wonder how much the hospital will be paying to move this guy and his family, if he has one, from CA to MI.

nvragain

Fri, May 10, 2013 : 8:04 p.m.

Pat was making $287k in fiscal year 2012 http://www.umsalary.info/?FName=&LName=warner&Year=1&Campus=0 This gent is going to be making $420k Dr. Bove who operates on little baby hearts, $220k http://www.umsalary.info/peoplesearch.php?LName=Bove&FName=Edward+L&Year=0&Campus=1#current Unless Mott starts taking patients who have insurance (not Childrens Special Health) this place will contine to run in the red without a doubt.

jen777

Fri, May 10, 2013 : 10:46 p.m.

Dr. Bove's salary of $220,000 is the standard base pay i terms of full time rate for surgeons at Medical school. The table you are looking at is only full time rate and does not include any bonuses and incentive pay.

Faygo

Fri, May 10, 2013 : 8 p.m.

At least he makes more than the football coach.

a2citizen

Sat, May 11, 2013 : 12:04 a.m.

Why is that so important?

Solitude

Fri, May 10, 2013 : 8:35 p.m.

Oops...not in base salary. But still, Hoke's making some serious cash. Of course, who knows what kind of "other"payments are built into this new hospital guy's total compensation package, in addition to his "base" salary.

Solitude

Fri, May 10, 2013 : 8:25 p.m.

Not really...read the below, from an article dated 3/30/11 in Crain's Detroit Business about Hoke's contract: "The deal for 2011 is a $300,000 base salary bolstered by $1.7 million in additional compensation, which includes broadcast, promotional and other payments. The additional compensation each increases by $100,000 each year. The contract runs through December 2016. Hoke, 52, gets a $1.5 million bonus after the third and sixth seasons of the deal. There also are bonus payments for bowl game appearances and conference championship games. He'll also be paid a deferred compensation credit of $250,000 for the first year on the contract, with increases of $100,000 in deferred compensation credits per year through 2016 as long as he is head coach, the school said. The deferred compensation will be paid at the end of the 2013 and 2016 seasons. If the university wants to replace Hoke for reasons other than violating his contract, the buyout starts at $8 million in his first season and de-escalates to $2 million by the final two years." That means Hoke should be up to at least $500K this year in base salary alone.