Community Citizenry: Aligning compensation with healthcare’s new ideals
The Lown Institute, a nonpartisan think tank dedicated to the improvement of healthcare in America, has developed a new hospital ranking system. The result is a list that celebrates previously unsung heroes.
New criteria to reflect new ideals
Hospitals have long been ranked according to data collected from the HCAHPS survey, a standard patient satisfaction survey. The Lown Institute focused on different criteria such as civic responsibility, patient outcomes, and value of care. The goal was to measure a hospital’s commitment to its community.
In a recent interview with USA today, Dr. Vikas Saini, president of the Lown Institute, said, “The new rankings are not intended for patients to use when deciding their care, but rather for communities to understand whether their hospital is a good member of the community, in addition to treating patients well.”
One determining factor in this new ranking system is pay equality. The survey compares executive pay to that of employees without advanced degrees. In the same USA Today article, Saini said, “There's no right figure for a CEO salary. But what is a fair compensation has never been answered."
The impact of increased scrutiny
This is yet another example of increased scrutiny on executive pay, which we’ve been discussing for quite some time now. This growing trend impacts organizations that are in competition with one another for top executives. At a time when it’s never been more difficult to recruit and retain executive leadership, organizations are faced with the challenge of designing compensation models that are both responsible and effective.
Offer better pay, sustainably
Organizations seeking to retain their leadership while demonstrating a commitment to their civic responsibility can do so by paying better, not more.
For example, it’s possible to prioritize community citizenship by rewarding it financially. This aligns compensation with organizational goals, and it ensures that all team members share a common vision for their organization’s future.
You can also seek out ways to make your compensation more meaningful to executives without simply increasing it. As you explore new strategies, it’s important to keep sustainability in mind. Sustainability allows organizations to continue to offer enticing rewards without compromising their financial responsibility. To ensure the long-term sustainability of their executive pay, organizations can use cost-containment strategies that are commonly employed in the corporate world. Our Healthcare Executive Advantage Plan (HEAP) does just that, allowing our clients to recoup a portion of their compensation expenditure over time.
A chance to be a frontrunner
As a greater focus is placed on responsible executive compensation, organizations have an opportunity to position themselves among the new frontrunners in healthcare. Prioritizing community citizenry and sustainability demonstrates a commitment to healthcare’s changing ideals. As we’ve seen with the success of our HEAP, it’s possible to adapt without falling behind in the competition for executive talent.
REQUEST OUR WHITE PAPER:
Complete the form below and receive a copy of our latest white paper: Rewarding Excellent Administrators
Want to Learn More?
The enduring rise of call pay doesn’t have to be a liability When MaxWorth first created the Call Pay Solution, on-call compensation was one of the most contentious topics in healthcare. At a time when more and more physicians were demanding to be paid for call, most administrators were reluctant…
The Anonymous Physician: Physician Retention The Anonymous Physician column provides physicians with a platform to discuss pressing issues in healthcare. From time to time, we pose a question to a doctor, or a group of doctors, and post their answers anonymously, giving them the freedom to be frank and uninhibited.…
Aligning executive compensation can aid in hospitals’ recovery Healthcare organizations are looking to their boards to help guide them through the transition into a post-pandemic world. Becker’s recently highlighted the top five concerns healthcare boards have as they plan for recovery and a return to normal. One of them is…
Physician input leads to fairness Hospitals often rely on Fair Market Value (FMV) surveys to help them determine how much to pay physicians for services like taking unassigned call. While these surveys are a good place to start, they’re also problematic. Most of the hospitals we visit would only be…