Hospital Executive Compensation: Remain Competitive While Controlling Cost

Hospital Executive Compensation: remain competitive while containing cost

By: Kyle Worthy

jeshoots-com-632498-unsplash

Healthcare organizations have been searching for ways to contain cost, so it was only a matter of time before their efforts began to affect executive compensation.

A 2018 Sullivan Cotter survey illustrated this budding trend in healthcare. According to the survey, the average salary of a healthcare facility’s CEO increased 4.1% in 2018, compared to a 4.8% increase in 2017. As financial pressures on healthcare organizations continue to escalate, we can expect these percentages to plateau at a steady rate.

At the same time, it has never been more important for hospitals to attract the right leadership. There is a dwindling number of professionals out there who are equipped to navigate the complexities of today’s healthcare environment, so competition for these top leaders is unlikely to subside anytime soon. Non-profit organizations have been particularly strained by increased competition for executives since the passing of the new tax codes, which placed more regulations and scrutiny on non-profit executive rewards.

So how can hospitals offer competitive pay and contain cost? At MaxWorth, we believe the solution lies in paying better, not more.

Our Hospital Executive Advantage Plan transforms executive compensation into a tool for cost containment. We use funding strategies to establish a platform for cost recovery, which makes executive rewards more sustainable for the hospital long-term.

While the plan benefits hospitals with increased sustainability, it also establishes advantages for executives by enhancing their overall rewards package, making it valuable to both parties.

 

SIGN UP FOR OUR NEWSLETTER

If you would like to receive industry updates and articles like the one you see here, complete the form below
Something went wrong. Please check your entries and try again.

Want to Learn More?

Compensation programs in the age of uncertainty

Compensation programs in the age of uncertainty By: Kyle Worthy As we met with physicians over the past few weeks, we noticed that many of them had a common concern: what will happen to their call pay plan if… There is a multitude of uncertainties in healthcare today as more…

Legacy Makers

Legacy Makers By: Kyle Worthy On a recent visit to a hospital client, I was having coffee in the atrium between meetings, watching as new banners went up on the walls. These banners celebrated a milestone: the hospital’s 75th year of service to its community. This made me think about…

Rural hospitals pay the most for physicians. It’s time for smarter rewards

Rural hospitals pay the most for physicians. It’s time for smarter rewards By: Leah Worthy Becker’s Hospital Review recently published a list of states with the highest average compensation rates for physicians and surgeons. Six of the top ten states on this list have populations under two million. This tells…

Phantom Stock: A unique tool for compensating hospital executives

Phantom Stock: A unique tool for compensating hospital executives By: Steve Worthy A Phantom Stock Plan is a unique nonqualified deferred compensation plan designed to provide a mid to long-term incentive for key executives. The term “phantom stock” means that although potential value (similar to equity) may be transferred to…

maxworth_logo

Compensation Strategies to Attract, Retain and Reward Your Physician Talent.

OUR OFFICE

Charlotte, NC

877-643-7520

800-314-8281

info@maxworthconsulting.com

Office Hours:
M-F 8:00am – 5:00pm EST

Charlotte, NC
P:  877-643-7520
F:  800-314-8281
info@maxworthconsulting.com
M-F: 8AM - 5PM

Malcare WordPress Security