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Incentive plan payouts contribute to 7.2% boost in executive compensation

Base salaries increased by 5.3% and total cash compensation jumped 7.2% for executives in hospitals and health systems between 2004 and 2005, according to Sullivan, Cotter and Associates' (SCA) annual Survey of Manager and Executive Compensation in Hospitals and Health Systems. The survey, now in its 14th year, measures compensation for managers and executives, reaching 669 hospitals-both freestanding and system-owned or -affiliated-and 205 health systems this year. It has revealed a steady increase in executive compensation, reflecting the difficulties that executives face in running a profitable facility in an increasingly complex healthcare marketplace.