Healthcare News & Insights

Debate rages: Are hospital executives paid too much?

These days, everyone seems to think hospital executives are overpaid.

But where did this notion come from? And do these people really know their facts when it comes to executive pay?

As you know, healthcare executives aren’t paid more than executives of other businesses. Furthermore, executives of nonprofit hospitals and healthcare systems make much less than they could be making at a for-profit business of the same size.

Setting them straight

Why does everyone seem to think hospital executives are overpaid?

One of the reasons is they view hospitals and health systems as community service agencies, not businesses, and view health care as a right.

This is especially true in the case of nonprofit hospitals. Because of their charitable missions, people seem to think that executives of nonprofit hospitals should receive a lower salary. They also assume that the job of a healthcare executive is less demanding than ones in other industries, and are unaware of the experience and expertise it requires.

As you know, executive jobs in healthcare are worth what they pay because they require a lot of specialized skills that not many people possess and involve a high level of responsibility.

Another point to consider: Hospitals are open 24 hours a day, seven days a week and are often the biggest employer in town.

In addition, healthcare executive jobs are extremely stressful, because of the risk inherent in many hospital  procedures and treatments that can result in death and injury, and lead to malpractice litigation.

In order to succeed, hospitals need executives with proven track records of success, especially in the face of the challenges all hospitals face.

The community should not want an inexperienced executive who can’t handle the job. To maintain the leadership brought to hospitals by first-rate executives, it’s necessary to compensate them appropriately.

 

 

Subscribe Today

Get the latest and greatest healthcare news and insights delivered to your inbox.