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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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
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Abstract	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.
AbstractList	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. 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.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.
Audience	Academic
Author	Ho, Vivian Short, Marah N. Jenkins, Derek
AuthorAffiliation	1 Baker Institute for Public Policy, Rice University, Houston, Texas, United States of America 3 Department of Medicine, Baylor College of Medicine, Houston, Texas, United States of America University of South Florida, UNITED STATES OF AMERICA 2 Department of Economics, Rice University, Houston, Texas, United States of America
AuthorAffiliation_xml	– name: 3 Department of Medicine, Baylor College of Medicine, Houston, Texas, United States of America – name: 1 Baker Institute for Public Policy, Rice University, Houston, Texas, United States of America – name: 2 Department of Economics, Rice University, Houston, Texas, United States of America – name: University of South Florida, UNITED STATES OF AMERICA
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Notes	ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 14 content type line 23 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.”
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Snippet	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...
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SubjectTerms	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
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Title	The determinants of nonprofit hospital CEO compensation
URI	https://www.ncbi.nlm.nih.gov/pubmed/39046937 https://www.proquest.com/docview/3084293390 https://www.proquest.com/docview/3084766166 https://pubmed.ncbi.nlm.nih.gov/PMC11268666 https://doaj.org/article/ca5e43fe7f184ba09a1fcbd54307f746 http://dx.doi.org/10.1371/journal.pone.0306571
Volume	19
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