Managed Care

Hospital administrators see bump in pay

Hospital administrators oversee physician, nursing, and administrative staffs, and usually take the lead in budget preparation and financial reporting. They are important players who usually sit opposite health plan representatives at the negotiating table. The average base salary for hospital administrators rebounded in 2010 and 2011 after being flat for several years, according to Executive Compensation 2011/2012, published by Compdata Surveys.

This bump in salary for hospital administrators coincides with the power shift going on in health care as hospitals and physician groups consolidate. As we reported last year, “Hospitals in some U.S. health care markets have gained such significant market power that they can negotiate rates that are well above — in some cases 147 percent to 210 percent — the rates most hospitals get in highly competitive markets.”

Executive Compensation 2011/2012 includes data on more than 65 executive and senior management positions in eight industries.

Average base salary and total compensation for hospital administrators, 2007-2011

Hospital administrators for the most part were not offered huge incentives

2011 salaries by revenue for the organization... and by number of employees

*Note: There were not enough responses to include a section for organizations with 501 to 1,000 employees.
Source: Executive Compensation 2011/2012, Compdata Surveys.

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