Report: Independent Hospitals’ CEOs See Bigger Salary Increase
CEOs leading independent hospitals saw their salaries increase more this year than those leading integrated health systems, according to consulting firm Hay Group's annual report on health care compensation, Fierce Healthcare reports.
For the report, researchers analyzed data from 1,188 hospitals and 109 health care systems (Cheung, Fierce Healthcare, 7/15). They found that overall compensation for CEOs at independent hospitals, including annual incentives, increased by 6% in 2011. Meanwhile, overall compensation for CEOs at integrated health systems increased by 3.1% (Crain's Health Pulse, 7/15).
The study also showed that the prevalence of long-term incentive plans at health systems continued to rise this year. For example, the study found that 25% of integrated health systems currently provide long-term incentive plans to senior executives, up from 14% in 2006.
According to the study, the finding reflects the industry's increased focus on long-term performance. "Economic uncertainty has forced boards and human resource departments to invest more to attract and retain leaders who can execute in this challenging environment," Hay Group's vice president and executive compensation practice leader said.
In addition, the study found that patient satisfaction remained the most common performance measure for annual incentive payments. Nearly 80% of health providers in 2011 used satisfaction as the primary incentive measure for executives (Fierce Healthcare, 7/15).
Meanwhile, the study showed that employee compensation increased more for health system workers than independent hospital workers. The median base salary of health system employees increased by 3%, while independent hospital employees' base salaries increased by only 2.3% (Crain's Health Pulse, 7/15).