Not-for-profit healthcare executives enjoyed yet another year of healthy wage gains, results of Modern Healthcares yearly survey show.
And starting this year, the publicthanks to changes by the Internal Revenue Servicewill know in greater detail just how well some top-tier, and perhaps midlevel, healthcare jobs pay.
Modern Healthcares yearly look at hospital and health system salaries and cash incentives found chief executive officers median base pay, without bonuses, rose between about 6% to 10% in 2008, depending on the organizations size and ownership. Increases with incentive payouts were roughly identical5% to 10%, according to results of the survey by Sullivan, Cotter and Associates, human resources and executive compensation consultants based in Chicago. (See THE HIGH FIVE.)
There were two exceptions. Base pay for chief executives at free-standing hospitals climbed 2.9%, but jumped 10.6% once cash incentives were included. CEOs at large hospitals within a system saw base pay rise 7.3% but overall payouts increased just 3.9%, suggesting waning incentive payouts.
Incentives, which have flourished in the past decade, paid out nicely for health system chief executives. Their median base pay, without bonuses, rose 5.8% to $731,700 from $691,500. With incentives, system CEOs median cash compensation climbed 9.7% to $867,000 from $790,500 in the prior year.
This years survey, Modern Healthcares 28th annual, was conducted between February and June. The results include salary and cash incentive figures as of Jan. 1, 2008, from 165 health systems and 607 hospitals that provided information for the past two years. Figures do not include all compensation, only cash payouts. Benefits and perquisites are not included.
This years snapshot shows that chief executives again took home healthy increases, as did top managers. Each year, Im wondering if (wage increases) will slow down, says Tom Pavlik, a Sullivan Cotter managing principal. He analyzed wage gains for more than 20 hospital managers and executives. On average, base pay rose 5.2% and total cash payouts climbed 5.3%, he says. We just dont see a slowdown.