Compensation Issues

State hospital associations are vibrantly active in each U.S. state, but how much do the heads of those associations make?

March Issue; 2013 Annual Meeting

Connecticut Gov. Dannel Malloy (D) recently spoke out on large compensation packages paid to hospital executives, saying it's a national epidemic of pursuing "talent for short-term gains," according to a Journal Inquirer report.

Roanoke, Va.-based Carilion Clinic is a 10-hospital system that offers its own Medicaid and Medicare Advantage plans and provided a community benefit of $131 million last year through education, research and uncompensated care.

The average compensation of hospital employees — including nurses, managers, service workers and others, but not physicians — rose 0.4 percent from March 2012 to September 2012, according to the Bureau of Labor Statistics (pdf).

Hospital and health system CIO base salaries in the 50th percentile were around $300,000 in 2012, according to Mercer's 2012 integrated health networks compensation survey.

The following 46 statistics detail the cumulative base salary, incentive/bonus/stock awards and total compensation of CEOs, CFOs and other key "named executive officers" of the eight largest for-profit hospital companies in the United States over the past five years.

Hospital controllers, often the next-in-line for CFO duties, earned almost $110,000 in total compensation a few years back, according to the Healthcare Financial Management Association's 2011 compensation survey.

FamilyCare, a Portland, Ore.-based, non-profit health insurer that offers Medicare Advantage and Medicaid plans, announced (pdf) it will increase reimbursements to primary care providers by 50 percent this year.

The board of directors for Washington Hospital Healthcare System in Fremont, Calif., awarded CEO Nancy Farber more than $162,000 in incentives and bonuses, increasing her current compensation to nearly $814,000, according to a Fremont Argus report.