INFOGRAPHIC | 2018 Not-for-Profit Manager and Executive Compensation Survey

Featuring compensation and benefits data from 121 different not-for-profit organizations

Competitive compensation, benefits and talent strategies are essential to delivering on the mission of high-performing not-for-profit organizations. As organizations look to remain competitive in today's complex operating environment, attracting, retaining and engaging key talent is both a top priority and a constant challenge. Access to the right data is critical, and understanding key compensation benchmarks and pay practices can help to address the complexities that mission-based organizations are facing.

View highlights from the results of our 2018 Not-for-Profit Manager and Executive Compensation Survey, which features data from 121 organizations and focuses exclusively on compensation and benefits practices in service and charitable organizations, trade and professional associations, research institutes, health plans, education and more.

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INFOGRAPHIC | 2018 Benefits Practices in Hospitals and Health Systems Survey

INFOGRAPHIC | 2018 Benefits Practice in Hospitals and Health Systems Survey

Data to to benchmark executive, physician and employee benefits programs

Uniquely focused on only hospitals and health systems, this survey helps organizations address challenges related to executive, physician and employee benefit programs. This includes comprehensive benchmarking data and insights as it relates to optimizing benefit offerings, implementing retirement plans for evolving executive and physician roles, and keeping pace with emerging trends in paid time off allowances, continuing medical education, severance policies, disability programs and more.

View highlights from two different sections of SullivanCotter’s 2018 Benefits Practices in Hospitals and Health Systems Survey, featuring data from more than 200 health care organizations.


Executive Benefits Practices

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Physician Benefits Practices

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AHA Trustee Insights | Key Action Steps for the Compensation Committee

Ensure alignment between executive compensation and key health system objectives

The marketplace for health care continues to evolve, and organizations are increasing the size and scale of their operations in response. New executive positions are emerging and growing in organization-wide impact while selected roles, especially at the subsidiary hospital-level, are narrowing in scope – leaving health care leaders to reconsider whether their current compensation strategy is still the best fit.

To help ensure continued alignment between executive compensation and key organizational objectives, not-for-profit hospitals and health systems must periodically review and update these programs in the context of a rapidly changing health care environment.

Featured in the March edition of the American Hospital Association's Trustee Insights, SullivanCotter highlights important action steps for the compensation committee as they determine if corresponding updates are necessary.

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PODCAST | Governing Health: Executive Compensation Trends

Board Engagement and Expertise

In a rapidly evolving health care environment, establishing executive compensation and related pay practices remains a critical responsibility of the Board of Directors. These decisions are complex, highly regulated and require heightened board engagement and specialized expertise.

In this edition of the Governing Health Podcast Series, Michael Peregrine, Partner, McDermott Will & Emery, welcomes two of the leading voices on executive compensation trends and practices in health care: Ralph DeJong, Partner, McDermott Will & Emery and Tim Cotter, Chairman and Managing Director, SullivanCotter.

This episode includes a discussion of:

  • Latest executive compensation reports
  • Evolving use of metrics, data and performance outcomes
  • Development and maintenance of incentive plans
  • Post-merger compensation trends
  • Relationship between talent management, retention and compensation
  • Impact of the Tax Cuts and Jobs Act

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HFMA | Health Care Executives with Unique Skills are Leading Total Rewards Trends

Evolving Executive and Physician Leadership Talent Requirements

SullivanCotter’s Bruce Greenblatt, Principal, and Kim Mobley, Managing Principal, are featured authors in the Winter 2019 issue of HFMA’s Strategic Financial Planning newsletter.


As healthcare organizations continue to operate in a complex and uncertain environment, the following trends are impacting executive and physician leadership talent requirements and total rewards:

  • Consolidation activity as organizations expand geographically and increase their scale and service offerings
  • Disrupters outside the healthcare sector, including private equity and technology organizations
  • Changing payment models with more revenue at risk that often result in lower margins and capital
  • Care systems are streamlining operations and clinical activity to realize the promise of larger scope and scale
  • Value-based models focus on expanding access, providing a superior patient experience, and delivering high-quality and cost-effective care

To recruit, retain, and engage highly effective leadership in today’s marketplace, organizations must implement competitive total rewards programs. It is important to design rewards strategies that align:

  • Executive and physician leadership talent
  • Total rewards with market trends and benchmarks
  • Total rewards with performance

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Modern Healthcare | New CMS Star Ratings Ignore Socio-Economic Factors

Assessing CMS Star Ratings

In a December issue of Modern Healthcare, SullivanCotter helps to analyze how the inconsistent application of peer groups between CMS’s new star ratings and the Hospital Readmissions Reduction program are creating sizable discrepancies in reported performance. By not risk-adjusting hospitals by peer groups based on their dual-eligible population in the latest preview of the CMS star ratings, hospitals with the largest percentage of dual-eligible stays fared worse than others in the readmissions category - hurting their overall star rating.

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ACHE | Healthcare Changes and New C-Suite Roles

Evolving C-Suite Roles in a Rapidly Changing Health Care Environment

In this article featured in the November/December issue of ACHE’s Healthcare Executive magazine, SullivanCotter’s Mark Rumans, MD, Chief Medical Officer, and Christina Terranova Asselta, Managing Director, discuss how health systems have created and defined new C-Suite roles and changed their leadership teams to adjust to the rapidly changing health care environment.

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Split-Dollar Life Insurance: Risks, Benefits and Key Considerations

Delivering cost-effective executive benefits

Health care organizations are facing increased pressure as they try to recruit and retain top talent. At the same time, the onset of the 2017 Tax Cuts and Jobs Act and the introduction of a 21% employer-paid excise tax on compensation over $1 million for top-paid executives has left some hospitals and health systems asking the following question: Is there a more cost-effective way to deliver compensation and benefits?

These challenges have triggered renewed interest in split-dollar life insurance, although limited adoption rates have been observed to date based on SullivanCotter’s 2018 Benefits Practices in Hospitals and Health Systems Survey. While, under certain circumstances, split-dollar life insurance has the potential to reduce costs for the employer while delivering a similar or greater benefit for the executive, it is a much more complex approach than cash-based compensation structures and carries risks that must be carefully evaluated.

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INFOGRAPHIC | Physician Executive Compensation

Emerging Compensation Trends for Physician Executives

Health care leaders with strong clinical backgrounds are in high demand as the focus on value-based care intensifies. As a result, there are more opportunities than ever before for physicians to move into executive positions at hospitals, health systems and medical groups across the country.

Gain additional insight from SullivanCotter's Physician Executive Compensation Survey and Medical Group Executive Compensation Survey.

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INFOGRAPHIC | 2018 Manager and Executive Compensation in Hospitals and Health Systems Survey

Market Uncertainty and Change Requires Good Business Judgment

In today's unprecedented health care environment, organizations remain focused on two fundamental issues: optimizing clinical care and ensuring financial stability.  These new performance priorities are setting the agenda for executive talent and rewards, and require good business judgment when designing and implementing “best fit” pay programs and setting compensation.

Learn more and view highlights from our Manager and Executive Compensation in Hospitals and Health Systems Survey.

 

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Modern Healthcare | Annual Executive Compensation Article

Prioritizing performance-based incentive strategies

Providing high-quality care and driving greater value for patients while also keeping costs in check remains one of the greatest challenges for hospitals and health systems nationwide - placing a premium on top executive talent with the skills and experience necessary to lead such efforts.

Amid these ongoing cost-containment initiatives, organizations continue to prioritize executive pay and new performance-based incentive strategies in order to attract, retain and engage leadership and keep pace in a world where the demand for talent outweighs supply.

Learn more from Modern Healthcare's annual executive compensation analysis, featuring data from SullivanCotter's 2018 Manager and Executive Compensation in Hospitals and Health Systems Survey and insights from Kathy Hastings, Managing Director, and Tom Pavlik, Managing Principal.

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John Putnam Joins SullivanCotter’s Executive Workforce Practice

SullivanCotter Welcomes New Principal, John Putnam

Jun. 19, 2018 – Minneapolis – SullivanCotter, the nation's leading independent consulting firm in the assessment and development of total rewards programs and workforce solutions for the health care industry and not-for-profit sector, welcomes new Principal, John Putnam, to the firm's Executive Workforce Practice.

John is an emerging leader in the field with more than a decade of health care consulting experience, and serves as a trusted advisor to many of the nation's top hospitals and health systems. He works closely with not-for-profit health care organizations to align executive pay, performance and talent strategy with overall business goals – helping clients to remain competitive, agile and adaptable in an increasingly complex marketplace.

"In order to address the industry's new value-based performance goals and guidelines, executives are now tasked with measuring and assessing performance across the care continuum, developing targeted approaches to improve quality and patient outcomes, and working towards the advancement of overall organizational objectives. John has many years of experience in designing executive compensation strategies to support these goals, and will play a vital role in helping our clients to engage leadership in driving incremental change and helping to deliver long-term, sustainable results," said Ted Chien, President and CEO, SullivanCotter.

As the transition to value-based care intensifies, John specializes in the development of competitive executive total rewards programs, including both short and long-term incentives, tailored to the unique needs of each organization. He advises boards and compensation committees on best practices in governance to help ensure regulatory compliance, reasonableness and appropriate oversight of executive pay and benefits, and works closely with organizations to implement effective recruitment, retention and engagement practices.

Prior to joining SullivanCotter, John was a Senior Principal in Korn Ferry Hay Group's Executive Compensation Practice, where he worked primarily with health care board members and management on the design, administration and governance of executive pay programs.

About SullivanCotter

SullivanCotter is the leading independent consulting firm in the assessment and development of performance-based total rewards programs and workforce solutions for the health care industry and not-for-profit sector. For over 25 years, the firm has provided unbiased advice to executives and boards to help attract, retain and motivate executives, physicians, advanced practice providers and employees at all levels. Through the Center for Information, Analytics and Insights, SullivanCotter has developed the most widely recognized compensation surveys in the United States. Combining data-driven intelligence with national insights, we act with integrity to help organizations fulfill their missions, business objectives and regulatory requirements.

Contact: Becky Lorentz
SullivanCotter
beckylorentz@sullivancotter.com
314.414.3719


PODCAST | Governing Health - Director Compensation in Nonprofit Health Systems

Health care executive compensation trends

In an industry that continues to undergo unprecedented change, the role of the nonprofit health system director is now more important than ever. Engaging employees at this level is a major concern as their scope of responsibility grows more complex. In a seller's market for director services, devising competitive compensation packages is critical and can be used as a key talent development, recruitment and retention tool.

In the most recent edition of the Governing Health Podcast Series, Michael Peregrine, Partner, of law firm McDermott Will & Emery, welcomes two of the leading voices on executive compensation trends and practices in health care: Ralph DeJong, Partner, McDermott Will & Emery and Tim Cotter, Chairman and Managing Director, SullivanCotter.

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Modern Healthcare | Higher Stakes: Boards Play Pivotal Role in Hospital Direction

Evolution of the health care boardroom

As hospitals and health systems learn to navigate an increasingly consumer-driven marketplace for health care, the scope of the board's responsibility continues to expand in kind.

To help organizations align with the industry's new value-based performance goals and guidelines, trustees are now tasked with providing greater insight into emerging areas of focus such as consumer engagement, data analytics, information security and recruitment and retention.

Featured in the June 4th edition of Modern Healthcare, SullivanCotter discusses the evolution of boardroom activities from traditionally transactional into something much more complex.

In addition to overseeing executive compensation programs, boards are also taking the lead on other important issues such as cultural integration, leadership diversity, pay equity and more. Many are even diving deep into performance benchmarking and analyzing key quality metrics to help ensure alignment with and progress towards overall organizational goals.

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Fundraising Talent Strategy in 2018 and Beyond

Attract and retain high-performing fundraising professionals

As the saying goes, you need money to have a mission. Whether through in-kind donations or the receipt of funds from public or private sources, most not-for-profit organizations rely to some degree on philanthropy to obtain the funds needed to sustain their mission.

For some not-for-profits, the fundraising professionals vital to this process are considered the lifeblood of the organization, and the loss of key talent could mean a loss of momentum and/ or continuity in donor relationships.

In developing a fundraising talent strategy for this year and beyond, consider proactive strategies to attract and retain high-performing and high-potential professionals, while also enhancing the capabilities of existing staff.

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PODCAST | Governing Health - Executive Compensation Trends Update

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With the new provisions set forth by the Tax Cuts and Jobs Act and recent trends associated with pay equity, the use of clawbacks and the expansion of incentive compensation goals and objectives, the governance of executive compensation remains a critical boardroom concern.

In the most recent edition of the Governing Health Podcast Series, Michael Peregrine, Partner, of law firm McDermott Will & Emery, welcomes two of the leading voices on executive compensation trends and practices in health care: Ralph DeJong, Partner, McDermott Will & Emery and Tim Cotter, Chairman and Managing Director, SullivanCotter.


CMS Star Ratings Highlight Need to Compare Performance by Hospital Type

Understanding what drives performance

As the marketplace for health care grows increasingly complex, organizations must develop a greater understanding of what drives performance to remain competitive.

The Centers for Medicare and Medicaid Services (CMS) recently published its newest Star Ratings, designed to measure and report hospital quality. These ratings have provoked a number of questions and concerns as more than 3,600 hospitals - regardless of size, breadth of services, or geographic location - are benchmarked against a collective average.

SullivanCotter was recently featured in a Modern Healthcare article which addresses these differences. As organizations use these ratings to help drive improvement efforts, it is important to consider the following:

  • Using national benchmarks like the CMS Star Ratings can be a great way for hospitals nationwide to help drive quality improvement, but only if they understand the nuances and complexities in the data and how to best analyze it.
  • Not all hospitals are the same. To truly identify areas of meaningful improvement, hospitals must be compared to like hospitals.
  • Organizations cannot improve what they cannot measure, and the new CMS Star Ratings continue to provide transparency in health care quality and performance as the industry shifts from volume to value.
  • To drive improvement efforts and help organizations more effectively benchmark performance against their direct peers, the market requires a standard set of national quality metrics that is stratified by hospital type.

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Using CMS Star Ratings to Drive Improvement at Specialty Hospitals

Using national benchmarks to drive quality performance

As the marketplace for health care grows increasingly complex, organizations must develop a greater understanding of what drives performance to remain competitive.

While enhancing patient satisfaction, improving quality and reducing the cost of care remains the overall aim, specialty hospitals operate under a very different set of circumstances than their more mainstream counterparts.

Using national benchmarks like the CMS Star Ratings can be a great way for specialty hospitals to help drive quality improvement, but only if they understand the nuances and complexities in the data and how to best analyze it. SullivanCotter was recently featured in a Modern Healthcare article which addresses the new ratings.

Not all hospitals are alike. Specialty hospitals must benchmark themselves against their direct peers or regional competitors in order to identify areas of meaningful improvement.

Learn more about the new CMS Star Ratings in a recent article by SullivanCotter.

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INFOGRAPHIC: Designing Health Care Executive Compensation

Drive Performance and Engage Leadership

As health care undergoes unprecedented change and the marketplace for talent grows increasingly competitive, hospitals and health systems must design executive compensation programs that effectively support the organization's talent management strategy. The same trends impacting care delivery, such as ongoing industry consolidation and integration, the focus on population health, and the shift to value-based reimbursement, also have significant implications executive and leadership positions. Aligning compensation with organizational goals in a way that drives performance and engages leadership is critical in such a highly competitive environment and requires the proper tools and programs to help build, buy and protect key executive talent. Learn more about the right questions to ask and actions to consider to help ensure your programs properly support the executive talent strategy.

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WEBINAR | A Board Imperative: Designing Executive Compensation to Drive Performance and Engage Leadership

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While ensuring the stability of current executive talent is important, board members need to build a strong pipeline for future leadership. Executive roles are becoming increasingly complex as health care organizations nationwide focus on integration, care delivery redesign, value-based care and, ultimately, improving population health. Hospitals and health systems face a number of challenges when it comes to recruiting, retaining, motivating and engaging the right people.

Supporting the next wave of health care leaders through comprehensive talent management, leadership development and succession planning strategies is imperative. As health care continues to evolve, executive compensation programs are also changing to support these goals.

View a recording of this November 14 webinar, hosted by the Health Forum/American Hospital Association, where industry experts from SullivanCotter discussed how to effectively design executive compensation programs that support your organization’s leadership talent management strategy.

Key Learnings

  • Understand current trends in executive compensation and emerging talent requirements based on the changing health care environment
  • Insight into the specific actions and tools organizations are employing in response to ensure the development of a robust leadership pipeline
  • How effective performance measurement in annual and long-term incentive programs can be used to align with organization strategies, support executive engagement and promote leadership development
  • The potential implications of overlooking executive talent management, leadership development and succession planning strategies