Hospital CEO Compensation

Hospital CEO Compensation Explained... Learn What Factors Determine a Hospital CEO's Total Compensation.

There is a direct correlation between the revenue of a hospital system and the size of hospital CEO compensation.

Hospitals with less than $50M in revenue per year have CEOs that make $274,000 per year on average.

However, hospitals with greater than $1B in revenue per year have CEOs that make $1.4M per year on average.

Does that correlation incentivize hospital CEOs to 1) not take care of poor people, 2) not provide low revenue services like inpatient psychiatric care or 3) not seek out patients from lower-paying programs like Medicaid?

Sources:

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[DrWAS]

Great video and a good insight to finances in healthcare. Thank you for making this video!

[pfgmmoy]

Employee satisfaction is a factor in CEO compensation? Now I know for sure those surveys are inflated.

[michaelcallahan]

Great video overall. Of course, it makes sense that improving the revenue of an individual hospital system would earn a CEO higher comp, but the data presented here suggests the size of the employer matters much more than any metric regarding CEO performance. One would assume that this is because larger systems hire CEOs with more qualifications or experience to handle their more complex systems

As for better incentivization schemes, it seems k-12 teachers in the US have a similar problem. They tend to be assessed more positively if they get a classroom full of kids primed to learn rather than kids from more marginalized communities who are less prepared to excel, but ironically need the help even more.

For teachers, they started using "growth" as a metric by taking comparable assessments of the class before and after the school year and looking at the difference. I imagine healthcare systems could evolve similar metrics for annual trends in surveyed communal health if they really wanted to, and tie that to executive comp.

[jeffkoontz]

I'm enjoying your videos and a lot of good observations, but I immediately thought that this could be a "correlation isn't always causation" situation. Without any hard data to back up my theory, I would guess that the higher revenue hospitals are located in urban areas with higher salaries and higher costs of living, where the smaller hospitals are located in rural areas with lower overall salaries and cost of living, and that while CEO salaries may track with hospital revenues in aggregate, small hospitals are likely more prevalent in areas that have other factors suppressing overall compensation.

[bibinjoy]

I want my ear drum back shouting on me bad words

[DrJaylenPayne]

So Nurses and other healthcrae professionals should get increase in pay with the number of people we help. We are coming for the CEOs pay, because they do nothing. Hospitals sell themselves no need to pay these jerks this much money.