The determinants of nonprofit hospital CEO compensation

Hospital CEO salaries have grown quickly over the past two decades. We investigate correlates of rising nonprofit hospital CEO pay between 2012 and 2019 by merging compensation data from Candid’s IRS 990 forms with hospital data from the National Academy for State Health Policy Hospital Cost Tool. A...

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Bibliographic Details
Published in:PloS one Vol. 19; no. 7; p. e0306571
Main Authors: Jenkins, Derek, Short, Marah N., Ho, Vivian
Format: Journal Article
Language:English
Published: United States Public Library of Science 24.07.2024
Public Library of Science (PLoS)
Subjects:
Charities
Chief executive officers
Chief Executive Officers, Hospital - economics
Compensation
Compensation and benefits
Executive compensation
Executives
Health care
Health policy
Hospital costs
Hospital systems
Hospitals
Hospitals, Voluntary - economics
Humans
Indigent care
Medical care, Cost of
Medical policy
Medicare
Medicine and Health Sciences
Mexico
Nonprofit hospitals
Nonprofit organizations
Operating costs
Organizations, Nonprofit - economics
Patient satisfaction
Physical Sciences
Profits
Research and Analysis Methods
Salaries and Fringe Benefits - statistics & numerical data
Social Sciences
Teaching hospitals
United States
Variables
Wages
Wages & salaries
United States
Mexico
ISSN:1932-6203, 1932-6203
Online Access:Get full text
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Summary:Hospital CEO salaries have grown quickly over the past two decades. We investigate correlates of rising nonprofit hospital CEO pay between 2012 and 2019 by merging compensation data from Candid’s IRS 990 forms with hospital data from the National Academy for State Health Policy Hospital Cost Tool. Almost half of the measured increase in CEO compensation (44.5%) accrued to a “base case” CEO, who was leading a non-teaching hospital system or independent hospital with fewer than 100 beds that earned 0 profits and provided no charity care. Another 28.5% of the measured salary increase resulted from changes in the generosity with which observable metrics were rewarded, particularly the reward for heading a system with 500 or more beds. The remaining 27% resulted mostly from hospital systems or single hospitals that increased their profits or bed size over time. The increase in CEO compensation associated with leading larger healthcare systems and earning greater profits may explain the increase in healthcare system consolidation which has occurred over the last several years.
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Competing Interests: I have read the journal’s policy, and the authors of this manuscript have the following competing interests: the authors receive funding from Arnold Ventures. VH and MNS receive funding from the Health Care Service Corporation and the National Academy of State Health Policy. The funders had no role in study design, data collection and analysis, publication decision, or manuscript preparation. VH is a member of the Blue Cross Blue Shield of Texas Community Advisory Board, Community Health Choice: Houston Business Coalition on Healthcare Advisory Board, Texas Employers for Affordable Health Care Advisory Board, and the Blue Cross Blue Shield Research Alliance. VH receives support for attending membership committee meetings from the National Academy of Medicine. VH owned stock in IBM. “However, this does not alter our adherence to PLOS ONE policies on sharing data and materials.”
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0306571