Average CEO compensation at non-profit hospitals in New Hampshire has been rising faster than private sector wages, and a new report from the independent New Hampshire Center for Public Policy has found that while CEO pay is IRS compliant, there are a few caveats.
The New Hampshire Department of Justice asked the NHCPP to review non-profit hospitals' CEO compensation in 2011. The report reviews compensation from 2005 through 2010, although 2009 is the most recent year for which CEO earnings are available. The report contains the following key findings:
• Between 2006 and 2009, average CEO pay at non-profit hospitals in New Hampshire grew by roughly 18 percent — higher than the increase in average wages for all private sector workers, all healthcare sector employees and all statewide hospital employees.
• In 2009, CEO pay varied from $150,300 for the CEO of Upper Connecticut Valley Hospital in Colebrook to $1,078,000 for the chief of Catholic Medical Center in Manchester.
• The highest compensation packages were generally found among urban hospitals in southern New Hampshire, whereas packages offered in the northern and western regions of the state lagged behind the state averages.
• In 2009, 15 of the state's non-profit hospitals provided their CEOs with bonuses, which ranged from $8,100 to $161,000. Hospitals also differ in their approach to bonuses as a percent of base salary: Bonuses accounted for 0 percent of base salary at 10 hospitals in 2008, where it accounted for 84 percent of the salary at Catholic Medical Center.
• Generally, CEO pay increases with a hospital's operating expense, but pay for the CEO of the state's largest hospital — Mary Hitchcock Memorial Hospital — represented just 0.07 percent of the hospital's 2010 operating expenses. That is the lowest rate of any non-profit hospital in the state.
7 Risks of Overcompensating Non-Profit Hospital Executives
4 Points on Intermediate Sanctions and Non-Profit Hospital Compensation
The New Hampshire Department of Justice asked the NHCPP to review non-profit hospitals' CEO compensation in 2011. The report reviews compensation from 2005 through 2010, although 2009 is the most recent year for which CEO earnings are available. The report contains the following key findings:
• Between 2006 and 2009, average CEO pay at non-profit hospitals in New Hampshire grew by roughly 18 percent — higher than the increase in average wages for all private sector workers, all healthcare sector employees and all statewide hospital employees.
• In 2009, CEO pay varied from $150,300 for the CEO of Upper Connecticut Valley Hospital in Colebrook to $1,078,000 for the chief of Catholic Medical Center in Manchester.
• The highest compensation packages were generally found among urban hospitals in southern New Hampshire, whereas packages offered in the northern and western regions of the state lagged behind the state averages.
• In 2009, 15 of the state's non-profit hospitals provided their CEOs with bonuses, which ranged from $8,100 to $161,000. Hospitals also differ in their approach to bonuses as a percent of base salary: Bonuses accounted for 0 percent of base salary at 10 hospitals in 2008, where it accounted for 84 percent of the salary at Catholic Medical Center.
• Generally, CEO pay increases with a hospital's operating expense, but pay for the CEO of the state's largest hospital — Mary Hitchcock Memorial Hospital — represented just 0.07 percent of the hospital's 2010 operating expenses. That is the lowest rate of any non-profit hospital in the state.
More Articles on Hospital CEO Pay:
7 Red Flags in Non-Profit Hospital Executive Compensation7 Risks of Overcompensating Non-Profit Hospital Executives
4 Points on Intermediate Sanctions and Non-Profit Hospital Compensation