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Healthcare's Senior Leadership Pay Continues to Rise

Karen Minich-Pourshadi, for HealthLeaders Media, December 14, 2012

For not-for-profit CEOs nationwide the median total cash compensation (base plus incentives) increased 3% to 6.7% over last year, and these organizations' senior leadership teams gained similar pay increases, according to IHS' survey and the Sullivan, Cotter and Associates, Inc.  report, 2012 Survey of Manager and Executive Compensation in Hospitals and Health Systems.

Health system CEOs' median base salaries increased to $717,500 (2012) from $650,000 (2011), while independent hospital CEOs' median base salaries rose to $506,100 from $472,000 during that period, according to IHS. Comparatively, Sullivan, Cotter and Associates shows the base pay for system CEOs nationwide increased while the TCC declined slightly—base pay increased to $334,700 from $325,000, while TCC decreased to $411,100 from $412,100 from 2012 to 2011, respectively. Unlike their health system counterparts, independent hospital CEOs' base pay and TCC climbed between 2011 and 2012—base pay went up to $530,000 from $504,000 (a 4.9% gain) and TCC jumped 4.3% to $600,000 from $574,000.

Nationally, CEO compensation has risen year over year, though there are variations in pay for CEOs at health systems versus independent facilities. CEOs at not-for-profit integrated health systems received a median 4% increase in base salary from 2010 to 2011, while independent hospital CEOs saw a salary improvement of 5%, according to the 2011 Hay Group Compensation Survey.

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