10 Statistics About How Non-Profit Hospitals Determine Compensation

Here are 10 statistics about how non-profit hospitals determine compensation for officers, directors, trustees and other key employees, according to the Internal Revenue Service’s Exempt Organizations Hospital Compliance Project Final Report.

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Individuals or entities used to determine compensation:

1. 31 percent of non-profit hospitals reported that compensated was decided by hospital officers.
2. 63 percent of non-profit hospitals reported that compensation was decided by a board of directors.
3. 56 percent of non-profit hospitals reported that compensated was decided by a compensation committee.
4. 32 percent of non-profit hospitals reported that compensated was determined by another source. The report clarified that many organizations selecting “other” provided supplemental explanations, sometimes identifying specific officers that determined compensation or explaining that the human resources division determined compensation.

Tools used to determine compensation:

1. 87 percent of non-profit hospitals said published surveys were used to determine compensation.
2. 28 percent of non-profit hospitals said internet research was used to determine compensation.
3. 21 percent of non-profit hospitals said phone surveys were used to determine compensation.
4. 36 percent of non-profit hospitals said outside experts (related) were used to determine compensation.
5. 48 percent of non-profit hospitals said outside experts (unrelated) were used to determine compensation.
6. 9 percent of non-profit hospitals said written offers were used to determine compensation.

Read the IRS report on non-profit hospital finances.

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