CEOs of California’s Not-for-Profit Hospitals Earn High Wages, Study Finds
A recent Payers & Providers study found that CEOs of California's not-for-profit hospitals earned average annual compensation of more than $737,000 during 2007 and 2008, Payers & Providers reports.
For the study, Payers & Providers analyzed tax returns and financial data on nearly 120 hospitals statewide.
The study found that during 2007 and 2008:
- The average base salary for not-for-profit hospital CEOs was $517,123;
- CEOs' additional compensation -- including bonuses, incentive pay, deferred compensation, retirement pay and expense accounts -- averaged $212,309; and
- 16 CEOs earned more than $1 million in annual compensation.
In addition, 11 hospital executives had compensation levels that exceeded the cost of their hospital's charity care contributions, according to data from the Office of Statewide Health Planning and Development.
However, some health care providers noted that the OSHPD charity care data does not account for certain community benefits or make-up payments to compensate for low reimbursements for Medi-Cal, California's Medicaid program (Payers & Providers, 6/24).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.