Hospital Executive Turnover Slows With Salary Growth

A study by the Hay Group revealed turnover of hospital executives in healthcare institutions has decreased dramatically, despite salary growth continuing to slow, according to a Hay Group news release.

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Compensation based on same hospital comparisons indicated that pay increases is 1.5 percent for base salary and 1.7 percent for total cash compensation for all jobs. On a same incumbent comparison — actual person in the position, not just the position itself — base salary increased by a rate of 2.5 percent, a decrease from 4 percent in 2009. Total cash compensation increased by a rate of 3 percent in 2010, slower than the 4.5 percent increase in 2009.

The 2010 study also shows the number of CEOs receiving at least a 6 percent increase in base salary has dropped to 22 percent, its lowest level in 10 years.

The study also reports ongoing merger, acquisition and consolidation activity. For the first time in a significant period, turnover rates for CEOs, CFOs and COOs have decreased.

Read the Hay Group news release on the 2010 Hay Group Healthcare Survey.

Read more coverage on hospital executive compensation.

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