Pay for executives in healthcare includes numerous factors and has varied in recent years.
Overall median base salaries for healthcare executives have increased year over year, reflecting continued pressure to attract top leaders and stabilize executive transitions, according to a survey conducted by Chicago-based consulting firm SullivanCotter.
SullivanCotter's "2023 Healthcare Management and Executive Compensation Survey" is based on data from more than 3,000 organizations representing nearly 42,160 executives and managers. The following is a summary of 16 statistics from the survey, which was conducted from January to April with an analysis of the data that was published Oct. 12:
1. In 2023, median base salaries (i.e., salary, merit, across-the-board, market adjustments) increased by 4.1 percent compared to 2022 for leaders at all healthcare organizations.
2. Median total cash compensation for health system leaders, which is equal to base salaries plus annual incentive awards, increased 3.5% from 2022 to 2023.
3. The year-over-year increase in 2023 total cash compensation for health system leaders was lower than the increase in base salaries.
4. Health system positions with median base salary increases of at least 5% tended to be those focusing on strategy/planning, technology, financial sustainability and risk, integration and workforce strategy.
Here is the increase in median total cash compensation for six health system roles from 2022 to 2023, according to the survey.
CEO
5. Organizations with less than $3 billion in revenue: 6.6%
6. Organizations with more than $3 billion in revenue: 2%
COO
7. Less than $3 billion: 7.5%
8. More than than $3 billion: 3.7%
CFO
9. Less than $3 billion: 5.1%
10. More than than $3 billion: 6%
Senior vice presidents
11. Less than $3 billion: 5.3%
12. More than than $3 billion: 2.8%
Vice presidents
13. Less than $3 billion: 4.3%
14. More than than $3 billion: 3.9%
Management
15. Less than $3 billion: 3.9%
16. More than than $3 billion: 4%