Inflation-adjusted CEO pay in nonprofit hospitals climbed between 2012 and 2019, with higher compensation associated with larger size and profits, according to a new study from Houston-based Rice University’s Baker Institute for Public Policy.
The study, published Aug. 12 in Medical Care, analyzed more than 1,800 health systems and independent hospitals using IRS 990 and Schedule H tax filings to identify CEOs and their total compensation.
Key findings from the study include:
1. CEO average pay climbed 34% between 2012 and 2019, rising from about $1 million to $1.3 million. By comparison, registered nurses’ average salaries grew 2.3% during the same period.
2. Compensation was strongly tied to hospital size and profits. In 2019, CEOs of organizations with at least 500 beds earned 157% more than those leading hospitals with fewer than 100 beds.
3. Pay was modestly linked to lower mortality and readmission rates, but these quality-related associations weakened over time, the researchers said.
Read the full study here.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.