Hospital CEO pay – Healthcare Economist


How a lot are hospital CEOs getting paid? A paper by Mulligan et al. (2020) gives the reply:

Between 2010 and 2015, imply hospital CEO compensation (in 2015 US$…) elevated 7.8%, from roughly $639,000 to $689,000 (p = .05), and median compensation elevated from $431,000 to $464,000.

Not surprisingly, CEOs of bigger hospitals techniques receives a commission extra.

For all establishments, larger revenues are related to larger CEO compensation, and for hospitals a 10% enhance in revenues ends in a 2.4% enhance in CEO compensation

Moreover, compensation varies dramatically throughout states. Even after controlling for hospital income, the research discovered that:

predicted common state-level hospital CEO compensation is extremely variable, starting from 60% beneath the nationwide median (Utah) to 79% above the nationwide median (New Jersey).

Nonetheless, hospital CEOs make far much less then CEOs within the well being care trade. Whereas hospital CEOs made $689,000 in 2015, CEOs at non-health publicly traded corporations made $6.7 million and people at publicly traded well being care corporations made $8.Three million.

These traits persist even after adjusting for variations in firm revenues.

A CEO at a hospital with median revenues in 2015 would earn roughly $704,000. In distinction, a CEO at a publicly traded well being care (different) establishment with the identical revenues is predicted to earn $3.2 ($1.7) million, or 4.5 instances as a lot as a CEO at a hospital. Predicted
compensation is lowest ($406,000) for CEOs at establishments of upper schooling;

Briefly, hospital CEOs usually are not going to the poor home anytime quickly, however they’re paid far lower than CEOs of each well being and non-health publicly-traded corporations.

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