The American Hospital Association has criticized a news analysis published by The New York Times concerning healthcare executive compensation.
The article — published earlier this month — examines the "proliferation of high earners in the medical business and administration ranks" and the effect rising executive salaries have on total healthcare spending. According to the article, the average annual salary (not including bonuses or incentives) is $386,000 for hospital CEOs and $236,800 for hospital administrators. These amounts "far outstrip" physician salaries, which average $306,000 for a surgeon and $185,000 for a general physician, according to the article.
In a letter to the editor of the Times, AHA President and CEO Rich Umbdenstock wrote the analysis does "a disservice to the dedicated men and women who lead America’s hospitals." Mr. Umdenstock points out hospital executives have complex and demanding jobs — keeping their facilities open 24/7, facing a volatile regulatory environment and negotiating with dozens of payers, among other challenges. Additionally, Mr. Umbdenstock wrote executive compensation at tax-exempt hospitals is subject to a "rigorous process" prescribed by the Internal Revenue Service.
"We take particular issue with a quote suggesting that doctors may be the only ones who want to do well by their patients." he wrote. "Every hospital leader goes into the field to help patients. The trust we place in our hospitals' ability to deliver care relies on the success of the committed people who lead caregiver teams that anchor every community's healthcare safety net."
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