- 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 |
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2 to 3 facilities |
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4 to 6 facilities |
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7 to 10 facilities |
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> 11 facilities |
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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 |
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1% to 2.5% public benefit spend |
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2.5% to 5% public benefit spend |
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5% to 10% public benefit spend |
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> 10% public benefit spend |
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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
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Title
Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer and Board Member
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer , Dean
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer / President , Chief Executive Officer
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Title
Chief Executive Officer
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Title
Chief Executive Officer
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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
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Title
Director , President and Chief Executive Officer / Chief Executive Officer - Ccad / Chief of Staff - Ccad
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Title
Past Director and President and Chief Executive Officer / President and Chief Executive Officer / Presidenthenry Ford Health System
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Title
President and Chief Executive Officer David Entwistle President and Chief Executive Officer / Director and Chief Executive Officer
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Title
President and Chief Executive Officer , Inova / President and Chief Executive Officer / Chief Executive Officer , President , Beginning 4 and 9 and 18
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer , / President and Chief Executive Officer and Director / President and Director / President and Chief Executive Officer / Executive Vice President and Cao and Treasurer / Senior Vice President and Chief Financial Officer and Treasurer
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Title
President , Population Health and Chief Executive , Ayin Health / Former Ke - PSJH President Executive Vice President and Pop Health / Former Executive Vice President and Population Health / Executive Vice President and Chief Population Health Officer / Executive Vice President and Population Health
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Title
Director - President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
President , Chief Executive Officer
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Title
Past Executive Director - Cardiac Interventional Services / Director - Interventional Cardiology
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Title
Chief Executive Officer
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Title
Former President and Chief Executive Officer
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Title
President , South Region / And Chief Executive Officer Chi St Luke's Health System
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Chief Executive Officer and Director
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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
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Past Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Director and President and Chief Executive Officer / President and Chief Executive Officer Duhs and Director / Chancellor
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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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
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Title
Executive Vice President and Chief Executive Officer of Uhealth
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Title
President and Chief Executive Officer
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Title
President - SJHMC / President and Chief Executive Officer
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Title
Former LCH President and Chief Executive Officer Untl 12 and 19
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Title
President and Chief Executive Officer
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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
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Title
President and Chief Executive Officer
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Title
Past President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
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Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Ceo* / President and Chief Executive Officer
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Title
Past President and Chief Executive Officer Thru 6 and 30 and 21
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Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
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Title
Past President and Chief Executive Officer Thru 6 and 30 and 21
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Title
President and Chief Executive Officer Thru 6 and 30 and 21 / President and Chief Executive Officer As of July
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Title
Past Chief Executive Officer VMFH / Chairman and Chief Executive Officer / Chairman , Chief Executive Officer
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Title
Trustee - President and Chief Executive Officer
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Title
Former Officer / Trustee and President and Chief Executive Officer
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Title
Former President and Chief Executive Officer / President and Chief Executive Officer Ter
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer , Cape Cod Healthcare and Chief Executive Officer , Cape Cod Hospital
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Title
Past President , Chief Executive Officer / President Chief Executive Officer
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Title
LH Chief Executive Officer and Board Member / President and Chief Executive Officer
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Title
President and Chief Executive Officer / Chief Executive Officer of LCMC / Senior Vice President and Chief Financial Officer
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Title
Trustee and Vandalia Health Chief Executive Officer / President Chief Executive Officer and Trustee / President , Chief Executive Officer and Trustee
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Title
Former President and Chief Executive Officer / President and Chief Executive Officer - Until 9 and 22
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Title
Director and President and Chief Executive Officer
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Title
Director - President and Chief Executive Officer
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Title
GH President and Chief Executive Officer Until January / President and Chief Executive Officer Greater Hudson Valley Health System
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Title
President and Chief Executive Officer / Chief Operating Officer
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Title
President and Chief Executive Officer
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Title
Chief Executive Officer , Maimonides Health
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Title
Chief Executive Officer
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Title
President and Chief Executive Officer ,
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Title
President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Past Trustee , President and Chief Executive Officer
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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
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Title
Former President / Bod and Officer - President and Chief Executive Officer / President and Chief Executive Officer / President / Chief Operating Officer
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Title
Former President and Chief Executive Officer / PHCS President and Chief Executive Officer / Trustee - President and Chief Executive Officer
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Title
Past President and Chief Executive Officer , Ahc; Board Member / President and Chief Executive Officer , Ahc; Board , Secretary / President and Chief Executive Officer , Ahc / Secretary / President and Chief Executive Officer / Executive Vice President and Chief Operating Officer
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Title
Former President and Chief Executive Officer
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Title
President and Chief Executive Officer
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Title
Former President and Chief Executive Officer / Director and Chief Executive Officer and President / Chief Executive Officer and Director and President / President and Chief Executive Officer and Director
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Title
Chief Executive Officer
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Title
President and Chief Executive Officer
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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
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Title
Former President and Chief Executive Officer
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Title
Former FMR President and Chief Executive Officer
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Title
Former President / President and Trustee / President and Chief Executive Officer
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Title
Former Key Emp - CCF / Former Key Emp - Chief Executive Officer Ccad
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Title
Former Key Employee / Former Key Emp - Chief Executive Officer Ccad
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Title
Director and President and Chief Executive Officer / Executive Vice President , Chief Clinical Officer
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Title
WMCF Trustee / President and Chief Executive Officer
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