According to the study, 84 percent of the hospitals surveyed identified their top management official as the highest person compensated in the organization. The average total compensation for these officials was $490,000. High population and urban and suburban hospitals paid the highest, whereas critical access centers paid the lowest salary. Total compensation increased with revenue size.
In addition, 20 hospitals were selected for closer examination due to their high compensation amounts based on the size and circumstances of the hospital. These hospitals paid an average of $1.4 million in total compensation. Although high, this was found to be within the reasonable range of compensation supported under the law.
The study also included an analysis of the community benefit expenditures of nonprofit hospitals across demographics such has hospital size, hospital location, income and health insurance.
Read the full IRS Exempt Organizations Hospital Study (pdf).
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