Nonprofit hospital CEOs make an average of eight times more than workers without advanced degrees, according to an analysis by the Lown Institute of more than 1,000 hospitals.
The study, published in Health Affairs Feb. 10, found the gap between CEO pay and average worker pay varied widely. Some hospital CEOs were paid twice the rate of other workers, while the highest paid received 60 times the hourly pay of general workers.
The analysis revealed a relationship between hospital size and executive compensation.
"Although both CEO compensation and worker wage increase in a stepwise fashion as hospital size increases, increase in CEO compensation tends to exceed that of worker pay for larger hospitals, giving them a higher pay equity ratio," according to the authors of the study.
The researchers found that urban location and teaching status were also associated with higher executive hourly compensation compared to general worker wages.
Across all nonprofit hospitals, the average CEO compensation per hour was $249, and the average hourly worker wage was $29.
Here is the average hospital CEO pay per hour by hospital type and the ratio of CEO wage to other workers wage:
Major teaching hospital
- Average hospital CEO compensation per hour: $529
- Ratio of CEO wage to other workers wage: 14:1
Minor teaching hospital
- Average hospital CEO compensation per hour: $292
- Ratio of CEO wage to other workers wage: 9:1
Non-teaching hospital
- Average hospital CEO compensation per hour: $197
- Ratio of CEO wage to other workers wage: 7:1
Urban hospital
- Average hospital CEO compensation per hour: $319
- Ratio of CEO wage to other workers wage: 9:1
Rural hospital
- Average hospital CEO compensation per hour: $160
- Ratio of CEO wage to other workers wage: 6:1