Court Rules El Camino Hospital District's Measure M Is Unconstitutional

—Written by Claudia Cruz

After weeks of litigation, the Santa Clara County Superior Court has found Measure M, a voter initiative passed in the November 2012 election, unconstitutional. 

Measure M would have limited what El Camino Hospital, with a campus in Los Gatos at 815 Pollard Rd., could pay its administrators, executives and managers, to twice the California governor’s salary, or $350,000.

The initiative passed 51.45 percent to 48.45 percent of the vote. It had been placed on the ballot by Service Employees International Union United Health Care Workers West, or SEIU-UHW members during tense contract negotiations.

However, the court found that the initiative didn't apply to local healthcare districts and since it didn't create a law to enact a statute or ordinance it was unenforceable. Patch has reached out to SEIU for comment.

"For the last 50 years, the El Camino Healthcare District has been committed to the health and well-being of the community we serve, while maintaining fiscal responsibility," said Dr. Patricia Einarson, chairwoman of the El Camino Healthcare District Board of Directors. "The conclusion of this case allows us to refocus our attention on developing vital programs and services to benefit our community today and well into the future."

The El Camino Hospital Board of Directors manages the hospital’s compensation program, which applies to every employee within the organization. Each year, the hospital board conducts research to compensate employees at the median (50th percentile) of national health systems and hospitals similar in size and complexity to El Camino Hospital, and adjusted for higher costs of labor and living in Silicon Valley.

"We are pleased with the court’s decision, which will enable El Camino Hospital to continue to deliver high-quality and compassionate care by recruiting and retaining a strong leadership team,” said Dr. Neal Cohen, chairman of the El Camino Hospital Board of Directors.

The El Camino Hospital District encompasses the cities of Mountain View, Los Altos, Los Altos Hills, most of Sunnyvale and some unincorporated areas of Santa Clara County. Residents pay taxes to support the district.