Hospital CEO Pay Out of Alignment with Quality of Care

Cheryl Clark, for HealthLeaders Media , October 16, 2013

Technology Boosts Pay
Other factors linked to higher CEO paychecks included bed size. Researchers found about $550 in additional CEO pay per additional bed and number of hospitals in a system, with $32,609 more for each additional facility.

Perhaps not as surprising, Jha says, is the link between the level of a hospital's technology, as measured by the industry's "technology index," and CEO pay. Hospitals with high levels of technology paid their CEOs about $663,800, or $136,000 more than hospitals with the lowest levels of technology.

Asked if the fact that there was no link between CEO pay and quality of care seemed odd, Jha says that it did surprise the research team.

"We didn't think there would be a big effect, but we were hoping that, given the national conversation we've been having about the importance of quality and reducing unnecessary healthcare spending, that boards would have taken this on a little more and made it a little more a priority, and [tried] to hold their senior managers a little bit more accountable than they are doing."

Asked which quality measures he thinks should be in the equation to determine CEO pay, Jha says that outcomes should be included and "should trump process measures."

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1 comments on "Hospital CEO Pay Out of Alignment with Quality of Care"

Suresh Nirody (10/21/2013 at 3:01 PM)
"mortality rates for 19 medical and surgical conditions" ??? That may refer to the number of measures on Hospital Compare (?), but it is NOT what they looked at in their study, quote: "composite measures of performance on processes of care for acute myocardial infarction, congestive heart failure, and pneumonia... from which we built patient-level hierarchical logistic regression models to calculate 30-day risk adjusted mortality and readmission rates..." Let's not overstate the case!




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