Nonprofit hospital CEO pay rose with size, profits: Study

Inflation-adjusted CEO pay in nonprofit hospitals climbed between 2012 and 2019, with higher compensation associated with larger size and profits, according to a new study from Houston-based Rice University’s Baker Institute for Public Policy.

The study, published Aug. 12 in Medical Care, analyzed more than 1,800 health systems and independent hospitals using IRS 990 and Schedule H tax filings to identify CEOs and their total compensation.

Key findings from the study include:

1. CEO average pay climbed 34% between 2012 and 2019, rising from about $1 million to $1.3 million. By comparison, registered nurses’ average salaries grew 2.3% during the same period.

2. Compensation was strongly tied to hospital size and profits. In 2019, CEOs of organizations with at least 500 beds earned 157% more than those leading hospitals with fewer than 100 beds.

3. Pay was modestly linked to lower mortality and readmission rates, but these quality-related associations weakened over time, the researchers said.

Read the full study here. 

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