- Insights
- Compensation of CEOs at nonprofit hospitals
Nonprofit hospitals are in the news recently, with ongoing conversations about whether nonprofit hospitals provide adequate care to the poor and needy given their tax-exempt status, among other issues. At the top of these hospitals are the chief executive officers. The nonprofit hospital CEO is responsible for the overall management of their hospital. They set the strategy and vision for the hospital (such as transitioning to value-based payments), manage the financial resources, oversee operations and personnel, develop partnerships, ensure compliance with regulations, and steer their hospital through pandemics.
The CEOs that run these tax-exempt hospitals are among the highest paid nonprofit executives in the United States. The average nonprofit hospital CEO makes $660,000 in total compensation (base salary, bonus, and benefits) per year. Most of these CEOs make between $214,429 and $834,631 per year, with top five percent of nonprofit hospital CEOs making more than $2,000,482 per year.
What drives hospital CEO compensation
There are over 4,500 nonprofit hospitals in the United States. Not all hospitals are the same, so it makes sense the hospital CEO pay varies hospital-to-hospital. But what differences in hospitals drive the different pay? Commonly-cited factors are hospital size, hospital financial performance, the CEO's experience and qualifications, and the region and market where the hospital is located. Do these match the Cause IQ data? Yes. Below we compare hospital size, as measured by the number of facilities within the hospital entity (according to Form 990, Schedule H, Part V, Section A) to the average CEO compensation of those hospitals. The results show that the larger the hospital, the more the CEO earns.
Number of facilities in hospital system compared to CEO compensation
Number of facilities in hospital | Average CEO compensation |
---|
One facility | | |
2 to 3 facilities | | |
4 to 6 facilities | | |
7 to 10 facilities | | |
> 11 facilities | | |
Hospital CEO compensation compared to percent of all expenses that the hospital spent on public assistance for low-income patients
Percent hospital spent on public assistance | Average CEO compensation |
---|
< 1% public benefit spend | | |
1% to 2.5% public benefit spend | | |
2.5% to 5% public benefit spend | | |
5% to 10% public benefit spend | | |
> 10% public benefit spend | | |
We also wanted to compare nonprofit hospital CEO pay to how much a hospital contributes to its community. Are hospitals that pay their CEOs the most also the greediest, contributing the least to their local communities? Fortunately not. We test this by looking at how much money the hospital spent on public benefit — Medicaid, financial assistance, and means-tested programs — to how much the hospital paid its CEO. We found that the greater percent the hospital spent on public benefit (up to a point), the more the hospital paid its CEO. This warrants further investigation, but a potential explanation could be that larger and more profitable hospitals have the financial health to both pay their CEOs more and provide greater support to their community. This trend does break down for hospitals that spend more than 10% of their budget on public benefit, but these hospitals could have a different mission than other hospitals.
List of highest paid hospital CEOs
Title
President and Chief Executive Officer
Title
Chief Executive Officer
Title
President and Chief Executive Officer and Board Member
Title
President and Chief Executive Officer - Until 9 and 22
Title
Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer , Dean
Title
President and Chief Executive Officer
Title
Trustee and President and Chief Executive Officer
Title
President and Chief Executive Officer / President , Chief Executive Officer
Title
Director , President , Chief Executive Officer - CCF / Director , President , Chief Executive Officer / Director , President and Chief Executive Officer - CCF / Chief Executive Officer - Ccad / Chief of Staff - Ccad
Title
Director , President and Chief Executive Officer / Chief Executive Officer - Ccad / Chief of Staff - Ccad
Title
Director and President and Chief Executive Officer / President and Chief Executive Officer / Presidenthenry Ford Health System
Title
Chief Executive Officer
Title
President and Chief Executive Officer , / President and Chief Executive Officer / Chief Executive Officer , President , Beginning 4 and 9 and 18
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President , Chief Executive Officer
Title
Director and Chief Executive Officer and President / Chief Executive Officer and Director and President / President and Chief Executive Officer and Director
Title
President and Chief Executive Officer
Title
Former President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Chief Executive Officer
Title
Former Key Emp - Chief Executive Officer Ccad
Title
Former Key Emp - Chief Executive Officer Ccad
Title
Past President and Chief Executive Officer SMH and HH , Senior Vice President Urmc / Urmc Vice President , President and Chief Executive Officer SMH and HH
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer, Presbyterian Healthcare Services
Title
President and Chief Executive Officer / CHB , Rush System Chief Executive Officer / Chief Executive Officer Rumc / Chief Executive Officer , Rumc 6 and 12 and 19 / Senior Vice President , Hospital Affairs and Chief Medical Officer / Vice President , Clinical Affairs and Chief Marketing Officer / Vice President Clinical Affairs and Chief Medical Officer
Title
President and Chief Executive Officer
Title
Chief Executive Officer and Director
Title
Past Chief Executive Officer
Title
Director and President and Chief Executive Officer / President and Chief Executive Officer Duhs and Director / Chancellor
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer , / Senior Executive Vice President - Chief Administration Officer / Sevp - Chief Administrative Officer / Senior Executive Vice President and Chief Administrative Officer
Title
President and Chief Executive Officer , LVHN and Trustee / President and Chief Executive Officer , LVHN / President and Chief Executive Officer LVHN / Trustee and Chief Executive Officer / Chief Strategy Officer
Title
Executive Director - Cardiac Interventional Services / Director - Interventional Cardiology
Title
President and Chief Executive Officer
Title
Executive Vice President and Chief Executive Officer of Uhealth
Title
Former Ke - PSJH President Executive Vice President and Pop Health / President , Population Health and Chief Executive , Ayin Health / Former Ke - PSJH President Executive Vice President and Pop Health / Former Ke - PSJH President Executive Vice President and Pop Health / Former Executive Vice President and Population Health / Former Executive Vice President and Population Health / Executive Vice President and Chief Population Health Officer / Executive Vice President and Population Health
Title
President and Chief Executive Officer
Title
Former LCH President and Chief Executive Officer Untl 12 and 19
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Treasurer - Senior Vice President Finance Tju and JH / Senior Vice President and Chief Financial Officer / Assistant Treas.; Senior Vice President Finance and Chief Financial Officer / Assistant Treasurer , Senior Vice President Finance and Chief Financial Officer
Title
Past President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Ceo* / President and Chief Executive Officer
Title
Past President and Chief Executive Officer Thru 6 and 30 and 21
Title
Past President and Chief Executive Officer Thru 6 and 30 and 21
Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
Title
President and Chief Executive Officer / Chief Executive Officer of LCMC / Senior Vice President and Chief Financial Officer
Title
And Chief Executive Officer Chi St Luke's Health System
Title
Past Chief Executive Officer VMFH / Chairman and Chief Executive Officer / Chairman , Chief Executive Officer
Title
Former President and Chief Executive Officer / President and Chief Executive Officer Ter
Title
Trustee - President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer , Cape Cod Healthcare and Chief Executive Officer , Cape Cod Hospital
Title
Past President , Chief Executive Officer / President Chief Executive Officer
Title
President - SJHMC / President and Chief Executive Officer
Title
President and Trustee
Title
LH Chief Executive Officer and Board Member / President and Chief Executive Officer
Title
FMR President and Chief Executive Officer
Title
Director and President and Chief Executive Officer
Title
Executive Vice President , Chief Financial Officer , Chief Business Officer
Title
Director - President and Chief Executive Officer
Title
GH President and Chief Executive Officer Until January / President and Chief Executive Officer Greater Hudson Valley Health System
Title
President and Chief Executive Officer / Chief Operating Officer
Title
President and Chief Executive Officer
Title
Director and President and Chief Executive Officer / Executive Vice President , Chief Clinical Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer , St Jude Children's Research Hospital Director , Molecular Pathology Laboratory / President and Chief Executive Officer / Executive Vice President and Scientific Director and Deputy Director
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
President and Chief Executive Officer / Chair and Chief Executive Officer
Title
Past Trustee , President and Chief Executive Officer
Title
Past S Advisor - President and Chief Executive Officer / Special Advisor To the President and Chief Executive Officer / Executive Vice President , G.C and Clo Thru 3 and 2019 / Executive Vice President , Chief Legal Officer and General Counsel / Executive Vice President , Clo and General Counsel / Executive Senior Vice President , Clo and General Counsel
Title
Former President / Bod and Officer - President and Chief Executive Officer / President and Chief Executive Officer / President / Chief Operating Officer
Title
President and Chief Executive Officer Vandalia Health
Title
Former President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Former President and Chief Executive Officer / PHCS President and Chief Executive Officer / Trustee - President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Former President and Chief Executive Officer
Title
President and Chief Executive Officer
Title
Chief Executive Officer
Title
Trust / Trust / Trustee; President and Chief Executive Officer - Ihn / Trustee; President and Chief Executive Officer - Network / Trustee; President and Chief Executive Officer - NTWK / Director;pres and Chief Executive Officer / Executive Vice President and Chief Financial Officer
Title
WMCF Trustee / President and Chief Executive Officer