Dr. Karen E. Joynt of the Harvard School of Public Health in Boston and colleagues reported on how hospital Chief Executive Officers (CEO) are paid and the factors that effect their compensation in the Oct. 14, 2013, edition of the journal JAMA Internal Medicine.
The researchers inspected the 2009 tax records and other publicly available data on 1,877 CEOs responsible for 2,681 hospitals and found the average compensation for a nonprofit hospital CEO was $595,781 in 2009.
The lowest paid CEOs were responsible for the administration of non-teaching hospitals in rural areas and made an average of $117,933 annually. The highest paid nonprofit hospital CEO led large urban teaching hospitals and made an average of $1.6 million per year.
Nonprofit hospital CEO pay was directly correlated with patient satisfaction scores and the level of advanced technology the hospital used.
No correlation between nonprofit hospital CEO pay and the hospital's financial performance could be established by the researchers.
No relationship between nonprofit hospital CEO pay and charity care, readmission rates, mortality, or quality of hospital performance could be established.
The quantities that nonprofit hospitals do not consider in compensating their CEOs are considered to be important in the development and success of the Affordable Car Act.
Nonprofit hospitals are often supported by tax funded research grants and direct federal grants and state aid.
A nonprofit cannot directly contribute to a politician’s campaign but they can use funds the organization receives to lobby politicians.