Several salary and compensation reports of hospital executives and physicians made headlines in 2011. Here are 10 of the biggest hospital compensation stories of the past year.
1. Physician hospital executive compensation is growing at the lowest rate in the last 10 years. The two-year rate of increase in total compensation was 5.9 percent in 2011, the lowest since the 2001 survey reported a 5 percent increase. Overall, though, physician executives are making more in 2011 than in 2009 and 2001.
2. The Merritt Hawkins' report, "2011 Review of Physician Recruiting Incentives," showed that invasive cardiologists had the highest average income offered of the top 20 recruited specialties in 2010-11. Average income for invasive cardiologists was $532,000, slightly higher than the $521,000 average salary of orthopedic surgeons.
3. Several hospital executive perquisites, such as car allowances and country club memberships, are on a downward trend.
4. The compensation figures of several not-for-profit hospital CEOs were released in the past year, but none caught the attention of the masses more than the compensation of Chicago-based Northwestern Memorial HealthCare CEO Dean Harrison. In 2010, Mr. Harrison made approximately $9.7 million in total compensation, the highest of any Chicago hospital CEO. The 2010 compensation figure, which is nearly three times as much the $3.4 million he earned in 2009, included a one-time retirement payment.
5. On the for-profit side, Wayne Smith, chairman, president and CEO of Franklin, Tenn.-based Community Health Systems, made headlines with his compensation in an April Wall Street Journal report. Mr. Smith's total compensation nearly doubled from 2008 to 2010, when he received more than $20.9 million. As part of the $20.9-million package, Mr. Smith received $5.4 million in salary and incentive pay, $6.78 million in restricted stock awards, $8.2 million in deferred earnings and more than $55,400 for personal use of corporate aircraft.
6. Hospital CEO salaries usually absorb most of the attention, but there were several trends in 2011 regarding hospital CFO compensation. For example, average hospital CFO salaries range from $95,000 to the mid-$300,000 level, depending on the size of the hospital, and productivity incentive packages are on the rise.
7. The five medical director positions that had the largest percent increases in hourly rates from 2010 to 2011 were endocrinology/diabetes, chief of medical staff, neurosurgery, general medicine and hyperbaric medicine.
8. Hay Group's 2011 Physician Compensation Survey found that physicians across all types of healthcare organizations can expect their salary increases to be around 2.5 percent in 2012, which is down from the pay increases of 2.7 percent in 2011. The survey also found that hospital-employed physician specialists might only receive 2.4-percent salary increases, which is below the 4.5-percent salary increases group-based physician specialists might see next year.
9. The average salaries of both nurse practitioners and physician assistants have jumped by an average of $25,000 since 2001. In 2010, the average full-time NP salary was $90,770, compared with $63,172 in 2001. In 2010, the average full-time PA salary was $96,876, compared with $71,046 in 2001.
10. In October, the AAPC released its 2011 Salary Survey, and the results indicated that salaries are on the rise for coders, especially those with more post-secondary education and professional development certifications. The average salary in 2011 for a Certified Professional Coder was roughly $46,800, up $1,400 from last year's average. Also, for the first time since AAPC has conducted its survey, more than half of all coders who responded indicated their annual salary was greater than $40,000.
1. Physician hospital executive compensation is growing at the lowest rate in the last 10 years. The two-year rate of increase in total compensation was 5.9 percent in 2011, the lowest since the 2001 survey reported a 5 percent increase. Overall, though, physician executives are making more in 2011 than in 2009 and 2001.
2. The Merritt Hawkins' report, "2011 Review of Physician Recruiting Incentives," showed that invasive cardiologists had the highest average income offered of the top 20 recruited specialties in 2010-11. Average income for invasive cardiologists was $532,000, slightly higher than the $521,000 average salary of orthopedic surgeons.
3. Several hospital executive perquisites, such as car allowances and country club memberships, are on a downward trend.
4. The compensation figures of several not-for-profit hospital CEOs were released in the past year, but none caught the attention of the masses more than the compensation of Chicago-based Northwestern Memorial HealthCare CEO Dean Harrison. In 2010, Mr. Harrison made approximately $9.7 million in total compensation, the highest of any Chicago hospital CEO. The 2010 compensation figure, which is nearly three times as much the $3.4 million he earned in 2009, included a one-time retirement payment.
5. On the for-profit side, Wayne Smith, chairman, president and CEO of Franklin, Tenn.-based Community Health Systems, made headlines with his compensation in an April Wall Street Journal report. Mr. Smith's total compensation nearly doubled from 2008 to 2010, when he received more than $20.9 million. As part of the $20.9-million package, Mr. Smith received $5.4 million in salary and incentive pay, $6.78 million in restricted stock awards, $8.2 million in deferred earnings and more than $55,400 for personal use of corporate aircraft.
6. Hospital CEO salaries usually absorb most of the attention, but there were several trends in 2011 regarding hospital CFO compensation. For example, average hospital CFO salaries range from $95,000 to the mid-$300,000 level, depending on the size of the hospital, and productivity incentive packages are on the rise.
7. The five medical director positions that had the largest percent increases in hourly rates from 2010 to 2011 were endocrinology/diabetes, chief of medical staff, neurosurgery, general medicine and hyperbaric medicine.
8. Hay Group's 2011 Physician Compensation Survey found that physicians across all types of healthcare organizations can expect their salary increases to be around 2.5 percent in 2012, which is down from the pay increases of 2.7 percent in 2011. The survey also found that hospital-employed physician specialists might only receive 2.4-percent salary increases, which is below the 4.5-percent salary increases group-based physician specialists might see next year.
9. The average salaries of both nurse practitioners and physician assistants have jumped by an average of $25,000 since 2001. In 2010, the average full-time NP salary was $90,770, compared with $63,172 in 2001. In 2010, the average full-time PA salary was $96,876, compared with $71,046 in 2001.
10. In October, the AAPC released its 2011 Salary Survey, and the results indicated that salaries are on the rise for coders, especially those with more post-secondary education and professional development certifications. The average salary in 2011 for a Certified Professional Coder was roughly $46,800, up $1,400 from last year's average. Also, for the first time since AAPC has conducted its survey, more than half of all coders who responded indicated their annual salary was greater than $40,000.
Related Articles on Hospital Compensation:
3 Factors Influencing Hospital Executive Compensation
7 Trends for Non-Profit Hospital Executive Salaries
Dr. Linda Brodsky: 5 Major Issues With Physician Compensation