The survey revealed total cash compensation levels for hospital executives decreased an average of 0.4 percent since 2013 However, compensation levels for health system executives increased by 0.9 percent as a result of lower average payouts under annual incentive plans.
Twelve percent of organizations reported no payouts for the annual incentive plan in 2014. In addition, among health systems with more than $3 billion in net revenue, 57 percent have long-term incentive plans in place in 2014, up from last year.
“Consolidation and integration within the health care industry continues to influence compensation and drive how executives are paid by both the level and manner of pay,” said Kathy Hastings, SullivanCotter’s Executive Compensation Practice Leader.
The Sullivan, Cotter and Associates survey contains data from more than 1,500 organizations comprising more than 370 health systems and 1,150 hospitals, including data for nearly 23,500 executives and managers.
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