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Hospital Compensation: Nationally Representative Data on Chief Executives' Compensation

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Report Type Reports and Testimonies
Report Date Aug. 16, 1994
Report No. HEHS-94-189
Subject
Summary:

Hospital-reported data showed that chief executives received an average of $129,000 in compensation for overseeing hospital operations in 1991. Actual compensation ranged from $31,000 to $849,000. Differences in compensation are influenced by the hospital's patient load, the number and relative size of nearby hospitals, and the hospital's geographic locations and ownership type. In general, executive compensation is higher at hospitals with greater financial success, greater numbers of patients discharged, higher numbers of similarly sized hospitals nearby, location in large cities, or for-profit operations. Data on executive compensation from related businesses at not-for-profit hospitals showed that relatively few executives received such payments. These payments, however, can be large. Compensation rose from six to 138 percent over the amounts received for hospital administration for the executives who received payments from such related businesses as hospitals and other health care facilities, as well as foundations and property management firms. Dollar amount increases ranged from $13,000 to $530,000.

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