Healthcare executive compensation has seen a notable increase of 4.6% this year, similar to the growth rate of 4.4% observed in the previous year.
This upward trend is particularly evident at the system level, where executives have experienced median salary increases of 5.2%, outpacing the 3.5% rise observed among subsidiary hospital executives.
Top roles within health systems, especially those focused on business strategy, information technology, and regulatory compliance, are commanding median base salary increases of 5% or more. Key positions such as chief executive officer, chief administrative officer, and chief strategy officer are at the forefront of this trend.
Incentive awards have also seen a significant uptick, leading to a higher rate of total cash compensation growth than base salary increases alone.
Despite these positive trends, healthcare systems face challenges such as escalating labor costs, a competitive talent market, and increased scrutiny surrounding executive compensation.
Organizations are advised to reassess their compensation strategies, offer robust packages for external recruits, and regularly review and update executive compensation programs to align with evolving needs.