MANAGED CARE July 1998. ©1998 Stezzi Communications
Home | Daily Briefing | Current Issue | Peer-reviewed Studies | Archives | Subscribe | Search



Click here for more information

COMPENSATION MONITOR

Health care systems turn to bonus pay

For hospitals and health care systems, one response to the need to operate more efficiently has been to shift a portion of senior management compensation from salary -- a fixed expense -- to incentive pay and bonuses, which are variable expenses. Thirty-two percent of providers surveyed by Coopers & Lybrand said incentive plans are part of their executive compensation packages. The larger the system, the more likely it is to offer such a plan. Of those offering variable compensation, job title is the most common criterion for eligibility: The higher a manager is in the hierarchy, the more likely that person is to be eligible for incentives or bonus pay.

SOURCE: TOTAL COMPENSATION IN THE HEALTHCARE INDUSTRY: 1997, COOPERS & LYBRAND, NEW YORK, 1998

See also Managed Care's full collection of
C
OMPENSATION MONITOR articles on physician
and health plan executive compensation