CEO Compensation Paper

“Patient satisfaction is undoubtedly on the minds of hospital administrators in an increasingly consumer-driven healthcare system. With patient

Seven figure salaries are not a normal occurrence among hospital and health system executives. However, according to the Chronicle of Philanthropy, which does an annual national survey of nonprofit salaries, found that the five top-paid nonprofit chief executives in 2003 all worked for hospitals. On top of these exaggerated salaries are the attractive benefits such as bonuses, deferred income, retirement plans, country club memberships, and countless other perks that are attracting the wrong kind of leaders to these organizations. Hospitals must provide their social responsibility to the community before spending outrageous salaries for chief executives. It is an unethical practice to pay executive teams more than the total spending on the necessitous care of the community. For example, the survey identified 17 hospitals in California where the total compensation to CEO’s alone exceeded the total cost of charity care of their respective organizations. These excessive salaries could have easily

The salaries of nurses that are on their feet all day battling the sweat, tears, and physical and mental exhaustion only take up 16% of total hospital costs, while hospital administrators and HMO executives “are doing so well that even doctors look underpaid by comparison” (Gordon 280). Despite this astronomical difference in salaries, nurses are the unwarranted target of hospital restructuring plans. These plans focus around what can be done to reduce their

Compensation of executives at nonprofit or for profit health care providers are determined by several competing forces. For profit health care providers, the control levers for executives and executive compensation are multi-tiered and complex: a board of trustees, shareholders, published financial statements, the people they serve within the organization, patients, outside consultants, and some government oversight (through their IRS filings and Sarbanes-Oxley). For non-profit healthcare providers, there are several ways to control and direct executive performance and compensation through the organization itself and employees they serve: their fundraising arm, outside consultants, information gathered by

Dr. Karen Buhr, PhD is the newly appointed Chief Operating Officer of Bellevue Hospital; a large, a not-for-profit hospital located in New York City. After two weeks of working in the public sector, she misses the benefits of a seemingly endless cash flow available when working in a world renowned, private academic hospital. Bellevue Hospital has been in deficit for the past two years and patient satisfaction regarding care is at an all-time low. Her first task is to develop and implement cost saving measures for the clinical services provided. She has met with clinical and administrative leaders to identify potential savings and other opportunities for improvement. However, she has hit a road block. How

Olden, P. (2011). Management of healthcare organizations: An introduction (Second ed., Vol. 2, p. 329). Chicago, Illionis: Health Administration Press.

Coyne et al. (2009) research question addresses if there are indeed a difference with efficiency and costs among size and ownership of hospitals in Washington State. This research is performed using only small (1-40 beds), medium (41-150 beds) and large (151 or more beds) not-for-profit and government owned hospitals (Coyne et al., 2009).There are other research studies performed on this matter to determine hospital size and performance and the researchers have found that the content is reliable and valid (Coyne et al., 2009).The Coyne et al. study used five efficiency and five cost indicators that are normally used as a measure of hospital performance (Coyne et al., 2009). Data on the differences between ownership type, hospital size and interaction among hospital ownership and size were tested with AVONA, a two-way analysis of variance (Coyne et al., p 166).Coyne et al research study results have shown that yes size and ownership type make a difference in the efficiency and cost results of hospitals. Among the ten measures studied there were five that make a difference in hospital size and costs. Some of the results of this study include current asset turnover imply that size matter but ownership types doesn’t, occupancy results

There is an ongoing debate whether pay for performance improves healthcare. Even large incentives may not change the way medicine is practised. However, in some observational studies incentives do change the practice of medicine, but even when they do, they do not show to improve clinical outcomes. There is criticism concerning pay for performance for reasons as that it is a technique borrowed from corporate management, where the main outcome of concern is profit, and therefore designed to meet the specific

Atlanta values its staff and the dedication team members bring the achievement of overall organization goals. From a human resources perspective, we want to ensure the organization provides an overall rewarding work experience. We review staff compensation on a regular basis to ensure marketplace alignment. As a result of the most recent marketplace review, your base salary will increase to $34,000 and your incentive target will increase to 5%. The change in your compensation will be effective today, September 1,

The article presents the survey conducted by the "Modern Healthcare" publication on the increase of the salaries of chief financial officers (CFOs). It states that the bonus and the incentive income of CFOs in 2012 and 2013 increase by 26.7 percent year over year. The author states that the financial restructuring that follow the not-for-profit hospital consolidations is complicated and it requires chief financial officers to have more advanced skills which leads to higher pay for them. New responsibilities are being placed on CFOs which means base compensation is rising substantially. In addition, there are greater opportunities for them to receive bonus pay. It is noted that the ideal candidate should be someone that is a lot more sophisticated.

Patients’ satisfaction with their hospital is also very important. It includes hospital administrators, physicians, and patients. It is important because it offers insight into patients’ perceptions of interpersonal relations and amenities.

table in appendix). They used the quality ranking ‘US News and World Report (USNWR)’, which is designed to inform patients about where to seek treatments for serious or complex medical problems. According to their findings, the mean of the hospital-quality scores in the three fields are significantly (p< 0,001) higher in physician-headed hospitals compared to manager-headed hospitals (Goodall 2011). Moreover, better hospitals seem to have a wider choice of CEO candidates, because of their status and wealth that they attract. The fact is, that these organisations have chosen to hire physicians as leaders, in the end, even though they have had a vast choice of candidates because of their position. Nevertheless, these observations may not be sufficient to prove that doctors make more effective leaders than professional managers. Indeed, a cross sectional study doesn’t allow concluding causality relations (Institute for Work and Health, Canada 2015), we cannot simply affirm hospitals performed better because of their physician-leaders. It would be more correct to conclude that the studied hospitals improved their performance indeed and they had physicians as CEOs. Moreover, changes over time have not been considered in this study (Goodall 2011), so that it will be difficult to know whether the various hospitals performed better because of the leading physicians or because they have already been doing better than other institutions before the study. Finally, as

Given the effect a CEO can have on a company's success, we can understand why their compensation packages

The primary focus of this paper is to determine what factors play a role in defining compensations for the highest position in Fortune 100 companies, the chief executive officer (CEO). This paper perceives the hypothesis that women CEOs have a lower compensation than men. This study expands research by integrating variables that had not been brought to light in prior literature as well as renewing the findings of Jordan, Clark, and Waldron (2007). This paper uses cross-section data from 2013-2014 to examine which characteristics are relevant. An OLS regression is used to determine which factors play a significant role in determining compensations. This study finds there are three significant factors directly related to a CEO’s compensation: change the company’s stock price, tenure, and race.

The company we selected is a privately owned and operated, for-profit hospital in a large city. The hospital has 400 beds and employs approximately 2,000 healthcare professionals. The hospital offers a full array of medical services including cancer care, emergency services, medical imaging, neurosciences, orthopedics, pharmacy, rehabilitation, surgery, and several other areas. The hospital employs physician’s full time to their location (rather than having physicians switch off between several locations) because the patient demand is high enough. Because these physicians can work full time of the same hospital, they bring in median revenue of about $3 million dollars for the hospital while their median