The executive incentive plan, modeled after plans in other industries, requires achieving pre-set goals related to each manager’s job, along with hospital-wide goals. For example, the hospital set a goal to reduce pneumonia associated with patients on ventilators by 44 percent, from 119 in 2009 to 68 in 2010.
Last year, the first year of the incentive program, Parkland distributed $2 million among a smaller group of 30 executives. “Through this plan, we set high expectations, created accountability and achieved results for better performance,” said Lauren McDonald, MD, chair of the Parkland board.
Read the Dallas Morning News report on executive compensation.
Read more coverage on hospital executive compensation:
– 15 Statistics on Healthcare Leader Compensation
– 4 Trends in Hospital Executive Compensation
– 10 Steps to Improve Employee Engagement and Drive Results
