4 Ways Benefits Differ Between Hospital Executives and Physicians

Hospitals looking to employ physicians have a plethora to manage in terms of compensation, and understanding the differences between executive benefits and physician benefits could help compensation arrangements, according to an article from healthcare compensation firm Integrated Healthcare Strategies.

Amber May, a consultant of executive compensation and governance at IHS, wrote there are four main areas where benefits for healthcare executives and physicians differ.

1. Benefit expenses. Compared with healthcare executives, physicians usually receive fewer supplemental benefits and therefore have lower benefit expenses. For example, Ms. May wrote the average market rate of benefits for a hospital CEO is 28 percent of salary. A physician who makes $500,000 has average benefit expenditures of 11.2 percent of total compensation.

2. Retirement benefits. A large majority (about two-thirds) of healthcare executives receive some type of supplemental retirement benefit plan, with half of the pensions being defined benefit and the other half being defined contribution. Retirement benefits are far less common with physicians, and when they are provided, they are usually DC plans, according to the article.

3. Long-term disability benefits. Roughly 50 percent of healthcare executives receive long-term disability benefits, while only 25 percent of employed physicians are usually offered supplemental disability coverage.

4. Business expenses. Business expenses for healthcare executives include cell phones, laptops, professional memberships and subscriptions and other similar perquisites. Physicians, on the other end, usually receive stipends for continuing medical education, malpractice insurance, licensure fees and others.

Related Articles on Compensation and Benefits:

10 Statistics on Average Physician Compensation to Collections Ratios

Compensation & Competency: 4 Factors to Consider When Hiring Physicians

8 Trends for Hospital Executive Perquisites

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