As hospital compensation committees deal with increased regulatory requirements, a more detailed IRS Form 990 and general public and media scrutiny, their roles have expanded beyond only setting top executive salaries, according to a monograph from the Center for Healthcare Governance.
Because the Patient Protection and Affordable Care Act links government funds to clinical quality measures and patient satisfaction, compensation committees now find themselves more responsible for setting the hospital's strategic goals and appropriately aligning executive pay with those goals, according to the study.
Consequently, compensation boards at not-for-profit hospitals are seeing their responsibilities revolve around goal-setting, performance evaluation and succession planning in addition to determining executive pay.
Because the Patient Protection and Affordable Care Act links government funds to clinical quality measures and patient satisfaction, compensation committees now find themselves more responsible for setting the hospital's strategic goals and appropriately aligning executive pay with those goals, according to the study.
Consequently, compensation boards at not-for-profit hospitals are seeing their responsibilities revolve around goal-setting, performance evaluation and succession planning in addition to determining executive pay.
Related Articles on Hospital Compensation:
Executives at Erlanger Health System in Tennessee Denied Bonuses for 2011
California's Tri-City Medical Center CEO Receives Second Raise
Erlanger Health System's Board Rejects Former CEO Jim Brexler's Severance