Managed Care

Academic institutions — overpaying their administrators?

Despite suggestions that academic medicine is ripe for the same kind of financial diet that the rest of health care has experienced, pay for its top nonphysician executives already appears comparable to that for similar positions elsewhere in not-for-profit health care. A survey of medical school executives pegged the 1997 median compensation for chief departmental administrators at $75,000, up 3.2 percent from the previous year. The median compensation for chief executive officer of an academic institution's practice plan was just over $100,000. This was the first time surveyors had examined this position, but they caution that this figure appears low.

SOURCE: ACADEMIC PRACTICE MANAGEMENT COMPENSATION SURVEY, MEDICAL GROUP MANAGEMENT ASSOCIATION, ENGLEWOOD, COLO., 1998

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