Top Health Care Executives Earned Higher Salaries in 2011, Survey Shows

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The average compensation brought home by top executives of health care systems was slightly higher this year, with increases averaging 3% in 2011 over 2010, reveals a survey conducted by Integrated Health Strategies, a health care management consulting firm with offices in Kansas City, Missouri; Minneapolis, Minnesota; and Dallas, Texas.

In addition to the salary increase, survey results indicate that CEOs and other “C-suite” executives who are eligible for short- and long-term incentives appear to be reaping big rewards. Incentive opportunities reported by eligible CEOs are as high as 80% to100% of these individuals’ salary or expected value.

Short-term incentive awards for C-suite executives range from 25% to 35% at health systems and from 18% to 27% of salary at independent and subsidiary hospitals.

Separate survey results released by the firm cover health care executives’ benefit packages. These results show that approximately 70% of employers supplement their qualified plans with additional employer-funded, non-qualified retirement benefits for the senior executives. Supplemental plans that feature an annual contribution are offered slightly more frequently than those than those that target a specified benefit at retirement.

Moreover, a majority of organizations polled continue to pay executives100% of salary during a short-term disability periods through one or more disability programs. At the executive level, the median salary replacement during a long-term disability is 60%; this is provided by group and supplemental disability plans.

Finally, with the exception of items that can be treated as business expenses, perquisites appear to be losing favor. An automobile or automobile allowance currently ranks as the most frequently provided perquisite, with 86% of CEOs at health care entities queried receiving either one or the other.

To purchase a copy of the survey results and find out how to participate in the next survey, click here: http://www.ihstrategies.com/sur_forms.php

To read the compensation survey press release, click here: http://www.ihstrategies.com/knowledge_center_article.php?article_id=371

To read the benefits survey press release, click here: http://www.ihstrategies.com/knowledge_center_article.php?article_id=370