Pay Gap Between Specialists, Primary Care Physicians Diminishing, According to Becker's Hospital Review Article
Referencing data from the SullivanCotter Physician Compensation and Productivity Survey, Becker's Hospital Review examines trends in physician compensation levels in their February 26, 2014 article.
SullivanCotter Names John Collins as Principal in Executive Compensation and Welcomes Back Marc Hallee as Consulting Principal
CHICAGO – SullivanCotter, one of the nation’s leading independent compensation, benefits and human resources management consulting firms, has named John Collins as a Principal in its Executive Compensation practice and announced that Marc Hallee has rejoined the firm as a Consulting Principal in its Physician Compensation practice.
John Collins – Principal, Executive Compensation
Mr. Collins joins SullivanCotter with over 20 years of experience in compensation and benefits consulting for a variety of for-profit and not-for-profit organizations. His experience encompasses design and implementation of annual and long-term incentive plans, nonqualified deferred compensation sales incentive plans and benefits strategy design. Prior to joining SullivanCotter, Mr. Collins worked at Towers Watson, where he was a Principal and the Director of Executive Compensation and Rewards in New York. He has a Bachelor of Arts in mathematics from The State University of New York in New York and a Master of Business Administration with a concentration in finance from Columbia Business School in New York.
“We would like to welcome John to the SullivanCotter team,” said Chris Terranova Asselta, Managing Director of SullivanCotter’s Eastern region. “John’s extensive background in executive compensation and benefits consulting will help elevate SullivanCotter’s capabilities to better serve our clients in the for-profit and not-for-profit sectors.”
Marc Hallee – Principal, Physician Compensation
Mr. Hallee returns to SullivanCotter with more than 20 years of experience in compensation and benefits program redesign and overseeing compensation strategies and programs for physicians. He formerly served as Executive Vice President and Chief Human Resources Officer at Scott & White Healthcare in Texas, where he oversaw the strategy and programming for a $2.2 billion health system for more than 14,000 employees. Mr. Hallee has a Bachelor of Arts in economics from Bates College in Maine and a Master of Business Administration in leadership and change management from DePaul University in Illinois.
“As health systems continue to change and evolve, Marc truly understands the real life issues associated with managing physician relationships,” said Jim Rohan, Managing Director of SullivanCotter’s Central region. “His experience as the Chief Human Resources Officer of a major health system in Texas will also be valuable as SullivanCotter continues to look at ways to better meet our clients’ needs in that region.”
SullivanCotter’s 2013 Manager and Executive Compensation Survey Highlights Variation in Salary Increases Among Emerging Positions
SullivanCotter, a human resources and total compensation consulting firm, released the results of its 2013 Manager and Executive Compensation in Hospitals and Health Systems Survey. According to research findings, 2013-budgeted and 2014-projected salary increases for executives have continued at 3%, with greater variation being seen in emerging health care industry positions. Jobs experiencing the highest increases annually include the medical informatics executive (6.5%), the business development executive (11.6%), the ambulatory care executive (8.5%) and the quality management executive (8.4%).
“Due to the mergers and acquisitions in health care and continued reimbursement and cost-cutting concerns, we are seeing changing roles and scopes of responsibility for executive positions, which will affect how executives are paid by both the level and the manner of pay,” said SullivanCotter Executive Compensation Practice Leader Kathy Hastings. “While the general trend is to budget the same level for executive increases as for non-executive employees, organizations are making market adjustments as needed to address the changing scope of responsibilities and recruitment and retention concerns.”
The SullivanCotter Manager and Executive Compensation in Hospitals and Health Systems Survey is the largest survey of its kind for hospitals and health systems nationwide. It provides data to help health care industry leaders meet the challenges of regulatory compliance and performance-driven executive compensation.
“The 2013 survey also provided us with data on new jobs representing emerging roles in the marketplace, such as chief patient experience officer, top accountable care executive and top clinical integration executive,” added Managing Principal Tom Pavlik.
Last year’s report contained data from over 1,300 responding organizations comprising more than 300 health systems and 1,000 hospitals, including data for nearly 23,000 executives and managers. The 2014 survey includes new simplified reporting, particularly around organizational characteristics and background information on the organization. In addition, 35 new positions were added, such as head of accountable care organization (ACO) physician network development, health plan top information services executive, head of innovation and ACO chief medical officer, among others.
Now in its 22nd year, the 2014 survey is open for participation through the SullivanCotter Client Portal. For more information on SullivanCotter surveys, registration or participation, please visit our website or contact us by phone at 888.739.7039.
Addressing APC and Staff Pay Disparities
The SullivanCotter white paper titled “Staff and Advanced Practice Clinician Compensation Programs: Addressing Payroll Disparities to Improve Value and Reduce Cost” outlines an approach to help health care organizations understand market standards and best practices to effectively manage APC and staff compensation. Gain additional insight from the paper's case studies that review how two prominent health care systems approached their special pay compensation challenges.
SullivanCotter’s Physician Compensation Survey Reveals Decreasing Gap Between Primary Care and Specialty Physician Compensation
SullivanCotter (SullivanCotter), a health care compensation and human resources management consulting firm, reported that data for physician total cash compensation levels indicate a slight decrease in the gap between primary care physicians and specialists, according to the 2013 Physician Compensation and Productivity Survey Report.
The survey results indicated an overall increase of median total cash compensation of 5.7% for primary care physicians between 2012 and 2013. Conversely, medical and surgical specialists had an increase of 3.2% and 2.3%, respectively, during the same time frame.
“For many years, our survey results have shown a widening gap in the pay relationships between primary care physicians and specialists. The results from our 2013 survey demonstrate a slight shift in the market and these pay relationships. This is consistent with the ever-increasing labor market demand for primary care physicians. With the expanded health care coverage and emphasis on preventative care, population health management and cost control, primary care physicians are in high demand as they are at the forefront of ensuring successful implementation of these initiatives,” notes Kim Mobley, Managing Principal and National Physician Compensation Practice Leader.
Other Key Findings
The survey also found health care organizations are modifying their physician compensation plans. While clinical productivity, utilized by about two-thirds of organizations and most often based on work relative value units (work RVUs) continues to be part of the physician compensation model, many organizations are developing transitional approaches that allow them to include other performance-based metrics such as quality, patient satisfaction and, in some instances, citizenship. The prevalence and amount of compensation tied to these metrics have grown significantly over the past few years, with about one-third reporting the use of quality metrics in their physician compensation plan in 2013. Ms. Mobley indicates that “the amount of compensation paid for achievement of specified quality metrics varies by specialty area.” According to the survey, the overall median amount paid for quality in 2013 was $15,000; however, this varied from $7,000 median quality payments for primary care to $20,000 for medical and surgical specialties. When considered as a percentage of total cash compensation, the overall median amount paid for quality was 5.0%. Ms. Mobley further notes that “we are closely monitoring the amount of compensation tied to quality and patient satisfaction as this will have an impact on future compensation approaches. As reimbursement shifts from fee for service to value based, we expect to see some shifts in the balance of the compensation elements that comprise physician compensation plans.”
Other physician compensation trends published include the continued use of on-call pay, as 64% of health care organizations reported paying at least some physicians for call coverage (up from 48% in 2008); the use of non-compete agreements, as reported by two-thirds of the survey participants; and the use of hiring bonuses, as reported by 74% of the survey participants. It should also be noted that physician benefits are an important part of the total compensation provided to physicians. The 2013 survey found that 44% of physician employers provided benefits to physicians that were more generous than those provided to other employees, which is up from 37% in 2012.
The survey report contains data from 484 organizations covering over 91,000 health care providers. It includes total cash compensation data on 230 physician, PhD and advanced practice clinician (APC) specialties, as well as eight medical group executive positions. The full survey report is now available for purchase.
SullivanCotter also announced the launch of its 2014 Physician Compensation and Productivity Survey, which includes improvements to the Client Portal for faster, easier participation, especially for past participants who are now able to pre-populate questions with responses from their 2013 survey submission.
For more information on the 2013 survey results, or to participate in the 2014 survey, please contact the SullivanCotter Survey Team at 888.739.7039 or surveys@sullivancotter.com.
Agenda for Executive Compensation Committee: Minimizing Regulatory and Reputational Risk by Managing Director Timothy Cotter Published
The American Hospital Association's Center for Healthcare Governance published an article by Managing Director Timothy Cotter in its Winter 2013 edition of its Great Boards newsletter. In "Agenda for Executive Compensation Committee: A Guide for Minimizing Regulatory and Reputational Risk," Tim examines the challenges facing executive compensation committees in meeting the demand for executives with proven leadership abilities alongside increased scrutiny from regulators.
For more information on the American Hospital Association's Great Boards, please visit their website.
Survey Reveals Advanced Practice Clinician Workforce Continues to Grow and Incentive Pay Is an Increasing Part of the Compensation Mix
February 12 – CHICAGO – Findings released in the 2013 Advanced Practice Clinician Compensation and Pay Practices Survey Report highlight the continuing high demand for advanced practice clinicians (APCs). The report details survey research conducted by the American Medical Group Association (AMGA), a trade association representing medical groups and integrated health systems and SullivanCotter (SullivanCotter), a health care compensation and human resources management consulting firm. The survey revealed that approximately 2/3 of organizations reported an increase in their APC workforce within the past 12 months and 2/3 projected an increase within the next 12 months.
With the continued growth of the APC profession, there has also been an increase in the number of organizations that have APCs serving in administrative roles. This year, 31% of responding organizations indicated that some of their APCs serve in administrative roles, which is an increase from 20% in 2012. In addition, 14% of responding organizations indicated that APCs report to a director of APCs in 2013, compared to 1% in 2012. “This increase may signal a move toward integrating APCs across systems and developing a more comprehensive strategy for managing this important provider group,” Kay Jensen, Principal and Employee Compensation Practice Leader for SullivanCotter, stated.
Total cash compensation varied by broad specialty area, ranging from nurse practitioners and physician assistants in medical specialties earning a median of $97,858 and $97,272, respectively, to a median of $104,000 earned by both nurse practitioners and physician assistants in hospital-based specialties.
While base or guaranteed salary continues to be the primary component of cash compensation for APCs, 45% of respondents use a combination of base or guaranteed salary and incentive pay for at least some of their APCs. In particular, the top measures used by participants for nurse practitioners and physician assistants are work RVUs and quality. When these incentives are provided, they contribute a median of approximately 10% of all compensation plan components.
"These findings provide hard data to demonstrate the importance of APCs in the future of health care delivery," said AMGA President and Chief Executive Officer Donald W. Fisher, Ph.D., CAE. "For years, we have seen the movement towards a more team-based, coordinated approach to patient care. As more and more groups expand these models throughout their organizations, this survey provides a tool to systematically track and benchmark changes in this area, which will help them in their strategic and financial planning for continued growth and success."
Over 300 health systems, hospitals and physician group practices participated in the survey. Total cash compensation data were submitted for more than 27,000 certified registered nurse anesthetists, nurse midwives, nurse practitioners and physician assistants across 83 specialties. Data are effective July 1, 2013. The survey not only provides total cash compensation data for APCs, but also data on pay practices such as on-call pay, shift differentials, compensation plan components and supplemental benefits.
The 2013 Advanced Practice Clinician Compensation and Pay Practices Survey Report is now available for purchase. If you have any questions about the report, please visit www.sullivancotter.com or email surveys@sullivancotter.com.
About American Medical Group Association
The American Medical Group Association (AMGA) represents medical groups and organized systems of care, including some of the nation’s largest, most prestigious integrated health care delivery systems. More than 150,000 physicians practice in AMGA member organizations, providing health care services for 120 million patients (nearly one in three Americans). Headquartered in Alexandria, Virginia, AMGA is the strategic partner for these organizations, providing a comprehensive package of benefits, including political advocacy, educational and networking programs, publications, benchmarking data services and financial and operations assistance. For more information, visit www.amga.org or call 703.838.0033.
About SullivanCotter
SullivanCotter is the leading independent consulting firm in the assessment and development of tailored total compensation and reward programs for the health care industry. For more than 20 years, the Firm has provided executive, physician and employee compensation and governance counsel to a wide variety of health care and higher education organizations, public charities, associations and foundations. A recognized leader in compensation benchmarking trends and analyses, SullivanCotter has also developed the most widely recognized physician and health care executive compensation surveys in the United States. Building from this unparalleled data, the Firm works closely with executives, boards and compensation committees to devise innovative solutions to attract and retain talent while satisfying business objectives and regulatory requirements. For more information, visit www.sullivancotter.com or call 888.739.7039.
Executive Compensation for Tax-Exempt Organizations
The IRS recently released the Final Report of its Colleges and Universities Compliance Project, in which they examine practices regarding executive compensation and other business activities of tax-exempt colleges and universities. Although the report pertains to higher education institutions, its findings have broader implications for the executive compensation governance practices of all tax-exempt organizations. To help organizations ensure that their executive compensation governance processes are above reproach, SullivanCotter has summarized the key findings and takeaways relevant to executive compensation.
Read the full Compensation Insight
"Ten Most Important Matters Your CEO Should Know About His or Her Employment Contract"
SullivanCotter Managing Director Kathy Hastings co-authored an examination of CEO contract considerations along with Ralph E. DeJong of McDermitt Will & Emery LLP, published in the Winter 2014 edition of Practical Tax Lawyer.
David Cohn Tapped as Speaker at AHLA's In-House Counsel Program and Annual Meeting
The American Healthcare Lawyer's Association tapped David Cohn as a speaker at its 2013 In-House Counsel Program and Annual Meeting, held June 30-July 3, in San Diego.
Along with co-presenter Mary Samsa of MWE, Cohn discussed the "Top Five Challenges for In-House Counsel on Executive Pay."
For more information on this event, please click here.
Governance Institute Webinar Led by Kim Mobley and Tim Cotter
Managing Principal Tim Cotter and Physician Compensation Practice Leader Kim Mobley examined the subject of "Compensation Oversight: An Emerging Governance Best Practice."
Compensation arrangements for employed as well as independent physicians aligned with a health care organization have the potential for significant financial and regulatory risk. Thus, it is critical for organizations to develop and adhere to a governance process which will help to manage this risk in an efficient and effective manner. This webinar will provide board members and executives with information about how to develop a best practices process for reviewing physician compensation arrangements.
For more information, or to register, go to www.governanceinstitute.com.
Kim Mobley Led AHLA Physicians Organization Bootcamp Webinar
The American Health Lawyer's Association tapped Physician Compensation Leader Kim Mobley to lead its webinar entitled "The Anatomy of Physician Integration, Part II—Governance Issues." Along with co-leader Claire Turcotte of Bricker & Ekler LLP, Kim discussed issues involving physician billing for service and non-financial compensation.
For more information, or to register, click here.
Becker's Hospital Review 2013 Annual Meeting Featured Jim Rohan as Speaker
Managing Director Jim Rohan discussed "The Changing Landscape of CEO and CFO Compensation" at the 2013 Annual Meeting, which took place May 11-13, 2013 in Chicago.
This exclusive conference brings together hospital business and strategy leaders to discuss how to improve your hospital and its bottom line in these challenging but opportunity-filled times. The best minds in the hospital field will discuss opportunities for hospitals plus provide practical and immediately useful guidance on ACOs, physician-hospital integration, improving profitability and key specialties.
To learn more about this event, please click here.
SullivanCotter Principal Craig Pederson Addresses the NAMCP 2013 Spring Managed Care Forum
Craig presented "Next Generation Physician Compensation Design - Getting to 'There' from Here" to the annual conference, sponsored by the National Association of Managed Care Physicians.
Click here for more information on this event.
Managing Principal Kim Mobley publishes "Valuation of Physician On-Call Pay and Coverage Arrangements"
Physician Compensation Practice Leader Kim Mobley's article was featured in the 2013 American Health Lawyer Association's Health Care Guide.
"The Emergency Medical Treatment and Labor Act of 1986 (EMTALA) requires most Medicare participating health care organizations to have physicians available to provide services to patients presenting the in emergency room. Two types of call coverage are typically provided by physicians:
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Unrestricted call coverage, which allows for the physian to remain off of the premises but available to report for duty within a specified timeframe (typically within 30 minutes), and
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Restricted call coverage, which requires the physician to remain on hospital premises."
Maureen Cotter Joins SullivanCotter as Director of Research and Information
SullivanCotter, one of the nation’s leading independent compensation, benefits and human resources management consulting firms, has named Maureen Cotter as Director of Research and Information.
Maureen will lead the research team in providing clients and partners with valuable information on emerging trends and issues in compensation and benefits for the health care industry. She will work with client advisory boards to align the Firm’s research agenda with client needs and leverage technology to create a better user experience for participants in SullivanCotter’s industry-leading surveys. Maureen will also lead the marketing team to bring awareness to the Firm’s emerging services and expanding geographic footprint as well as to strengthen relationships with industry partners.
“Maureen brings more than 30 years of consulting expertise and business leadership to SullivanCotter, making her well-positioned to lead our research and marketing teams,” said SullivanCotter CEO, Ted Chien. “Her experience and understanding of today’s rapidly evolving health care landscape are invaluable assets to our Firm as we continue to leverage our unsurpassed data and information to better serve our clients.”
Prior to joining SullivanCotter, Maureen has held a variety of leadership positions within consulting and private sector companies, most notably serving as Global Director of Group and Health Care Consulting for Watson Wyatt (now TowersWatson), a human resource consulting firm. She has also led projects with a wide variety of health care policy stakeholders as an independent consultant, and served as Senior Director of Health and Welfare Benefits Consulting at HighRoads, a firm specializing in human resources technology and benefits.
Maureen is also a frequent contributor, author and speaker on the topics of health care, benefits finance and industry trends. She is one of the founding directors of the National Business Group on Health’s Institute on Health Care Costs and Solutions and is active in The Healthcare Roundtable. Maureen holds a Bachelor of Science degree in mathematics from the University of Michigan and is an associate of the Society of Actuaries.
SullivanCotter is the leading independent consulting firm in the assessment and development of tailored total compensation and reward programs for tax-exempt, not-for-profit organizations. For more than 20 years, the Firm has provided executive and employee compensation, governance and physician compensation counsel to a wide variety of health care and higher education organizations, associations and foundations. A recognized leader in health care compensation benchmarking, trends and analyses, SullivanCotter has also developed the most widely recognized physician and health care executive compensation surveys in the United States. Building from this unparalleled data, the Firm works closely with executives, boards and compensation committees to devise innovative solutions to attract and retain leadership talent while satisfying not-for-profit missions and regulatory requirements.
"Current Practices in Physician Valuation" Presented by Tim Reed to The Healthcare Roundtable
Managing Principal Tim Reed was the speaker at the 2013 THR for Employed Physicias Networks on March 21 in Bonita Springs, Florida. Tim's topic will be "Current Practices in Physician Valuation."
For more information on this event, please click here.
Managing Principal Warren Kerper Speaks at Great Ideas Conference
In his presentation, "An Innovative Approach to Executive Compensation," Warren's co-presenters were Jennifer Schlener and William Mallon of the Association of American Medical Colleges. The Great Ideas Conference was held March 10-12, 2013 and was sponsored by ASAE. To learn more about this event, please click here.
Managing Principal Kim Mobley Addresses Center for Healthcare Governance Conference
Physician Compensation Practice Leader Kim Mobley spoke at the Center for Healthcare Governance's Winter Symposium on February 19, 2013. Her topic: "Physician Compensaiton Trends for Tomorrow: What Every Board Member Should Know."
The Winter Symposium is designed for governing boards, CEOs and senior executives, physicians and other clinicians with leadership and governance responsibilities, staff members who coordinate and support governing board activities, and executives in health-care related industries. This year's event was held at the Arizona Biltmore Resort & Spa in Phoeniz, Arizona.
To learn more about this event, visit the Center for Healthcare Governance website by clicking here.
Survey Reveals High Demand and Increased Salaries for Advanced Practice Clinicians
Findings released today in the 2012 Advanced Practice Clinician Compensation and Pay Practices Survey Report from SullivanCotter (SullivanCotter), a health care compensation and human resources management consulting firm, and the American Medical Group Association (AMGA), a trade association representing medical groups and integrated health systems, indicated an increase in demand for Advance Practice Clinicians (APCs) as well as an increase in salaries for this group.
The survey revealed a high demand for clinical professionals, as 63% of respondents reported a 17% increase in the APC workforce over the last 12 months and 53% indicated they plan to increase the APC workforce by 15% in the next 12 months. In addition, of 135 organizations responding to APC compensation questions, nearly two-thirds (62%) reported increased salaries with an average and median increase of 3.9 % and 3.0 %, respectively, over the past 12 months. The survey also found that more than half of these organizations (54%) plan to provide salary increases to APCs in the next 12 months, with a projected average and median increase of 3.1% and 3.0%, respectively.
“These findings provide hard data to bolster anecdotal evidence regarding this trend in health care practice,” said AMGA President and Chief Executive Officer Donald W. Fisher, Ph.D., CAE. “For years, we have seen the movement towards a more team-based, coordinated approach to patient care. As more and more groups expand these models throughout their organizations, they now will have the tools to systematically track and benchmark changes in this area, which will help them in their strategic and financial planning for continued growth and success.”
“While reported salary increases continue to be moderate, the increases show no sign of abating,” said SullivanCotter Principal Kay Jensen. “Drivers of demand and salary increases include responses to physician shortages and repositioning of the workforce to ensure all medical professionals can work to the top of their practice level.”
More than 275 health systems, hospitals and physician group practices participated in the survey, submitting data for Certified Registered Nurse Anesthetists (CRNAs), Midwives, Nurse Practitioners (NPs) and Physician Assistants (PAs) with data effective May 1, 2012. Not only does the surveyprovide cash compensation data for APCs, but it also includes data on pay practices such as on-call pay, shift differentials, annual incentive plans and supplemental benefits and perquisites.
The 2012 Advanced Practice Clinician Compensation and Pay Practices Surveyis now available for purchase. If you have any questions about the report visit www.sullivancotter.com or email surveys@sullivancotter.com.