Healthcare Flux Alters Compensation Mix

Not surprisingly, the rate of growth for healthcare executive compensation is outstripping that of the general employee ranks, but not by much and that margin appears to be shrinking.

CEOs at not-for-profit integrated health systems received a median 3.2% increase in base salary for 2012, compared to a 4% increase in 2011, while hospital CEOs received a 3% increase in 2012, compared to a 5% increase in 2011, Hays Group found.

"I have seen over the last several years a much closer parallel, if not an exact parallel, between base salary increases provided to the general employee population and what is being provided to executives," Jim Otto, a senior principal in Hay Group's Healthcare Practice, told HealthLeaders Media.

"Compensation committees are asking specifically ‘what is the range of base salary increase for the rest of the employees?' They're taking that into account and unless there are particular circumstances for a position that general employee population range is the range that the committee works within to determine base salary increases."