PRESS RELEASE | SullivanCotter Welcomes Information Security Officer Jeff Peal

Ensuring client-facing solutions remain highly effective, secure and compliant

April 27, 2021 – Chicago –SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, is pleased to announce the addition of Jeffery A. Peal as its Information Security Officer.

With over 20 years of cybersecurity and information technology experience, Jeff has a longstanding passion for providing business-enabled solutions while also managing risk and strengthening organizational security. His demonstrated ability to envision, lead and implement innovative IT programs helps to enhance security awareness, increase productivity, and mitigate risk and exposure.

“Now more than ever, the not-for-profit and health care industry continues to transform its information security practices at a rapid pace. As our clients look to stay ahead of the curve in an increasingly complex environment, SullivanCotter continues to innovate through its growing suite of technology, survey and data products. With Jeff’s specialized knowledge and expertise in business intelligence, data and information security, he will play a pivotal role in our risk-based approach to ensure the firm’s client-facing technology solutions remain highly effective, secure and compliant,” said David Schwietz, Chief Information Officer.

Jeff works closely with clients to support compliance and assist with the way data is secured, managed and stored. He also directs SullivanCotter’s information security growth initiatives and resources internally to help drive greater value for clients. This includes establishing enterprise-level security initiatives, leading high-performing teams across a number of technical and analytical support areas, designing strategic information security policies, and auditing software and application vulnerability.

Prior to joining SullivanCotter, Jeff spent more than 20 years with the Federal Reserve Bank of Minneapolis where he most recently served as the Information Security Officer.

He also works as an adjunct professor and community faculty member at two Minneapolis-based technical colleges and universities to support higher education in information security and expand and develop local talent in this field.

 About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


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PRESS RELEASE | Benchmarks360™ - APP Utilization and Perceptions Manager

SullivanCotter Releases Comprehensive APP Utilization and Perceptions Manager for its Growing Benchmarks360™ Platform

April 21, 2021 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, is pleased to announce the addition of powerful new capabilities for assessing advanced practice provider (APP) utilization and workforce perceptions to its growing Benchmarks360™ platform.

Powered by SullivanCotter’s proprietary surveys and research, Benchmarks360™ is a suite of intelligent, web-based products that enables health care organizations to analyze and visualize compensation, clinical productivity and workforce perceptions through industry-leading data, analyses and reporting.

"In today's unprecedented health care environment, it is important for organizations to utilize, engage and retain their clinical workforce more effectively. APP turnover can significantly impact cost, morale and operations, and gaining access to the right data and benchmarking tools can help to enhance workforce retention, team-based care practices and organizational performance during such a critical time,” said Amy Noecker, APP Workforce Practice Leader, SullivanCotter.

SullivanCotter’s Benchmarks360™ APP Utilization and Perceptions Manager allows organizations to collect, benchmark and report on the thoughts and experiences of their APPs and physicians related to APP compensation, resources and job responsibilities to help ensure current pay programs and care models are competitive and effective. In addition to data on nurse practitioners and physician assistants, it also provides information and analysis on other members of the APP workforce including certified registered nurse anesthetists and certified nurse midwives.

This new module includes two surveys designed to measure and compare individual organizations to national benchmarks.

APP: Utilization and Perceptions Survey

Learn more about the APP employment experience within your organization regarding scope of practice, clinical and non-clinical responsibilities, and perceptions on culture and compensation. Specific insights include:

  • Organizational structure, support and processes related to the APP workforce
  • Roles on the care team specific to location and specialty
  • Degree of integration and care team support
  • Opportunities for improved utilization and engagement

Physician: APP Utilization and Perceptions Survey

Learn more about your physician workforce and their experience working with APPs. Specific insights include:

  • Perception on APP integration and utilization
  • Roles of APPs on the care team
  • APP impact on quality, access and patient engagement
  • Understanding of regulatory requirements
  • Opportunities for improved alignment and team performance

These surveys may serve as a resource for organizations looking to better understand the current state of their APP workforce – including quantifying opportunities for optimization and readiness for change – and can play an important part in a more holistic review of APP practices when combined with SullivanCotter’s comprehensive advisory services.

“As health care organizations continue to navigate the lasting effects of a global pandemic, SullivanCotter remains committed to providing them with the critical, data-driven insights they need to measure, analyze and report on compensation and workforce performance. With the goal of addressing the increasingly complex and evolving needs of our clients, we are developing one of the industry’s most comprehensive benchmarking solutions by continuously refining our product roadmap and adding innovative new resources and functionality,” said David Schwietz, Chief Information Officer, SullivanCotter.

To learn more about Benchmarks360™, including important licensing information and a full list of features and functionality, visit sullivancotter.com/benchmarks360 or call 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology products to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


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PRESS RELEASE | SullivanCotter Integrates Health Care Contract Management Solution into PPMT™

Partnering with Ntracts to deliver full-scale contract lifecycle management capabilities

November 30, 2020 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, has partnered with Ntracts, a premier health care contract management solution, to incorporate full-scale contract lifecycle management as part of its comprehensive Provider Performance Management Technology™ (PPMT) platform. PPMT™ is an industry-first, cloud-based solution that enables engagement and alignment of the clinical workforce through the automation of performance-based compensation administration, analytical and reporting capabilities. Ntracts allows organizations to mitigate contract compliance risk and streamline the contracting process across the entire enterprise.

Designed to address a spectrum of physician, leadership and other key administrative needs, PPMT™ delivers centralized and actionable data tailored to the unique needs of each stakeholder. It combines years of health care compensation insight and expertise with an intuitive, automated technology platform, and serves as a single source of truth that helps empower physicians to drive desired outcomes and enhance organizational performance.

Ensuring that physician employment agreements align with system-wide compensation terms and payments remains a challenge for health care organizations nationwide. With the addition of Ntracts, PPMT™ will include a cutting-edge contract lifecycle management component that will provide hospitals and health systems with an accurate and comprehensive view of clinical employment contracts across the organization in real-time. By effectively integrating the compensation, performance and contract lifecycle management process into one centralized platform, PPMT™ will help to drive results through greater alignment, transparency and insight.

“Health care continues to evolve at a rapid pace, and there are number of complex moving parts to navigate as it relates to physician compensation and performance. By adding critical contract management capabilities to help health care organizations reduce risk, maintain compliance with changing regulatory requirements, and improve operational efficiency, PPMT™ will be a full-scale solution designed to support the transition from volume to value-based care,” said David Schwietz, Chief Information Officer, SullivanCotter.

David Paschall, Chief Executive Officer of Ntracts, adds, “SullivanCotter shares our commitment to quality and we are proud to combine our industry-leading contract lifecycle management solution with SullivanCotter’s expertise in physician compensation and performance. Together we can offer an unmatched, end-to-end technology solution to support health care organizations as they work to drive change and deliver long-term, sustainable results in this quickly evolving environment.”

For more information on Provider Performance Management Technology™, visit www.sullivancotter.com/PPMT or contact us at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

About Ntracts

Ntracts, Inc. offers a software-as-a-service application that enables users to originate, search for and report on contracts. The application also accelerates the contract review and approval process by automatically notifying responsible parties of contract requests, approaching expiration dates and other critical performance milestones, saving clients both time and money. Ntracts, Inc. is based in Indianapolis, Indiana, and was founded by Hall, Render, Killian, Heath & Lyman, the nation's leading health care law firm.


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PRESS RELEASE | Annual results from SullivanCotter's Physician Compensation and Productivity Survey

Physician Compensation Programs Shifting to Address Changing Market Dynamics and Mitigate COVID-19 Financial Implications

November 11, 2020 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, recently released results from the 2020 Physician Compensation and Productivity Surveywhich represents data from more than 800 organizations on nearly 244,000 individual physicians and advanced practice providers. The results reflect calendar year 2019 and, as the last set of benchmark data available prior to the onset of COVID-19, this year’s survey will serve as an important resource for organizations needing pre-pandemic compensation reference points for this critical workforce.

“Although the pandemic has created a great deal of uncertainty – with many organizations making near-term modifications to their physician compensation programs as a result – we’re seeing a slow and steady adjustment to the ‘new normal’ as patient volumes have returned to approximately 90% of pre-COVID-19 levels. In some ways, the fallout from COVID-19 has simply accelerated the forces that were driving physician compensation changes prior to the pandemic, and the 2020 survey data will be very important in helping to determine how organizations are responding to these challenges,” said Tim Stamper, Senior Consultant, SullivanCotter.

Physician Total Cash Compensation (TCC)

While TCC has grown, on average, 2.5% annually since 2012, COVID-19-related reductions in surgical and non-emergent care have impacted the financial condition of many health care organizations nationwide – causing them to implement or consider a number of compensation and benefits-related modifications to help offset significant losses in revenue. According to SullivanCotter’s COVID-19 Physician and Advanced Practice Provider Compensation Practices Survey series, nearly 30% of participants had implemented or were considering pay reductions for front line physicians and nearly 40% of participants were doing the same for non-front line physicians as of May 2020. Median pay cuts were 11% and 15% for front line and non-front line physicians respectively. Other organizations made cuts in physician benefits in response to COVID-19. The most common benefit program changes in 2020 included eliminating or reducing retirement plan contributions, adjustments to PTO policies, and eliminating or reducing CME allowances. The majority of these actions were intended to be temporary and, as patient volumes continue to increase and organizations start to recover financially, many are returning to historical pay and benefits practices.

Due to the financial impact of COVID-19, physician incentive programs have also come under scrutiny in 2020. Among respondents surveyed in May, 16% of organizations reported eliminating or reducing non-productivity incentive compensation in 2020 while an additional 38% were considering this action. Many organizations pay out these incentives at year-end, making these programs an obvious target for cost-reduction.

Physician Productivity

The 2020 Physician Compensation and Productivity Survey results continue to show a trend of flat or even declining median work RVU (wRVU) productivity across all major specialty categories. Since TCC showed modest increases in the 2020 survey, TCC per wRVU ratios have also increased. While we have anticipated growth in value-based incentives, wRVUs and productivity-based incentives still determine the majority of incentive or variable compensation as a percentage of TCC. Approximately 70% of organizations utilize wRVUs to determine compensation for primary care and specialist physicians, with wRVU productivity accounting for about 18% of TCC in plans with a base salary component and over 90% of TCC in plans without a base salary component. Less than half (44%) of organizations surveyed include a wRVU component for hospital-based physicians, who are instead paid primarily on base salary and shift-based models.

As organizations focus their attention on maintaining patient access and minimizing the financial losses created by COVID-19, the emphasis on individual wRVU productivity will remain prominent. While the pandemic itself has had a sizable impact on patient volumes and physician productivity, the Centers for Medicare and Medicaid Services’ (CMS) proposed changes to the Evaluation & Management wRVU values loom large as organizations look ahead to 2021. These adjustments include an increase in wRVUs for most office-visit E&M codes due to added responsibilities physicians have absorbed over the last five years. As a result of the overall projected increased in wRVUs, a 10.6% reduction in the conversion factor was required in order to maintain budget neutrality. The proposed increase in wRVU values ranges from 28%-46% for established office visits, which will have a significant impact on compensation plans that use wRVUs as a determinant of compensation.

Considerations for 2020 and Beyond

Although COVID-19 has sharpened industry focus on supporting financial sustainability, other market dynamics and the timing of anticipated financial recovery are also influencing the way hospitals and health systems are approaching physician compensation in both the short and long-term.

“Considering the implications of COVID-19 in 2020 and the impending impact of wRVU changes in 2021, the 2020 survey benchmark data represents the best data reference point for use in the near future. With appropriate context, it can serve as a foundation for understanding specialty market positioning leading into COVID-19, identifying recruitment and retention risks, and pinpointing areas of focus for targeted compensation adjustments as your organization moves forward with 2021 planning,” said Dave Hesselink, Principal, SullivanCotter.

There are a number of important physician compensation considerations for organizations to assess as they continue to navigate the new normal:

  • Be mindful of how to appropriately use 2020 survey data. Understand the timing of the data and consider what you are trying to assess before using it. It can be helpful in benchmarking the competitiveness of compensation program elements and incentive opportunities.
  • Develop an approach to physician compensation now in response to CMS’ proposed wRVU changes. Organizations should be proactive in assessing how these changes will impact payer reimbursement and physician compensation programs.
  • With continued uncertainty regarding the impact of the pandemic in FY2021 and beyond, be prepared for new pandemic-related challenges to patient revenues and physician compensation. Organizations would be well-advised to have a plan developed in advance of any new restrictions on elective and non-emergent care to mitigate additional financial losses.

For more information on SullivanCotter’s surveys or the upcoming Evaluation and Management wRVU value changes, please visit our website at www.sullivancotter.com, email us or contact us by phone at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology products to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


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PRESS RELEASE | Results from SullivanCotter's Annual Health Care Executive Compensation Survey

Offering insight into pandemic-related pay actions and considerations for 2020 and beyond as health care organizations plan for what lies ahead

November 5, 2020 – ChicagoSullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, recently released results from its 2020 Manager and Executive Compensation in Hospitals and Health Systems Survey which is now in its 28th year. This year’s results include information from more than 2,300 organizations. More importantly, the survey contains the last set of benchmark data compiled prior to the onset of COVID-19 and provides important pre-pandemic reference points for assessing executive compensation programs.

“While pay actions are being impacted by the pandemic, the foundational structure of executive compensation programs has generally remained unchanged. The 2020 survey data can be used to assess the competitiveness of base salaries, the level of incentive opportunities and other program design considerations. In light of the impact of the pandemic on business operations, now is an appropriate time to evaluate the broader implications of COVID-19 on your talent strategy, compensation philosophy and program design to ensure they reflect your organization’s new priorities,” said Tom Pavlik, Managing Principal, SullivanCotter.

Executive Base Salaries in 2020

In recent years, executive salaries were trending upward due to the focus on recruitment and retention of key leadership talent and an increasingly complex health care market. When comparing data reported by organizations that participated in SullivanCotter’s survey in both 2019 and 2020, median base salaries going into 2020 increased at a rate of 3.4% to 5.6% for the most senior executives of independent health systems (Vice Presidents, Senior Vice Presidents, CFOs, COOs and CEOs) as opposed to 0.8% to 4.1% for those executive positions at system-owned hospitals.

However, due to the financial impact of COVID-19, many organizations have implemented temporary executive base salary reductions. According to SullivanCotter’s COVID-19 Executive and Employee Compensation Practices Survey series, which was conducted between April 2020 and August 2020 to provide insight into the current practices of more than 100 large health systems, only 14% of organizations were considering or had implemented executive base salary reductions as of April. By May, this number had risen to 31%. Through August, implemented salary reductions reached 45%. However, of this 45%, nearly half had already reinstated the pre-pandemic salaries with the remainder expected to do so by the end of the year.

Executive Base Salary Increase Budgets

An analysis of the survey data indicates that, prior to COVID-19, median salary increase budgets for health care executives were expected to remain consistent with recent years at 2.7% for independent health system executives and 3.0% for system-owned hospital executives. The pandemic has impacted the financial condition of many organizations and is moderating salary increase plans for FY2021.

According to SullivanCotter’s proprietary COVID-19 research, about 40% of organizations had determined their FY2021 executive salary increase budgets by mid-August. The preliminary median executive salary increase budget is 2.5%, with 15% planning to freeze executive salaries. The other 60% of organizations had not yet determined their salary increase budget, and 20%-25% are delaying the timing of these increases. These figures may change over time as financial performance will impact the ability to fully fund planned budgets, and it is anticipated that more organizations may consider executive salary freezes for FY2021.

Executive Annual Incentive Plans

Executive annual incentive plans (AIPs) are still the norm as organizations are increasingly focused on system-wide alignment and pay-for-performance. Prior to COVID-19, 89% of independent health systems and 67% of system-owned hospitals utilized AIPs with award opportunities varying by health system size based on net revenue.

According to SullivanCotter’s research, however, COVID-19 has had a significant impact on executive incentive plans for FY2020. As of mid-August, more than half of the participating organizations had implemented or were still considering changes to FY2020 plans. While one-third did not yet know how they will handle their FY2020 annual incentive payouts, approximately 20% are eliminating or considering eliminating payouts, nearly 30% expect to pay below target, and only about 20% expect to pay at target or above.

Considerations for 2020 and Beyond

As hospitals and health systems plan for what lies ahead and look to support financial sustainability and mitigate risk, organizations should consider both market practices and their individual financial circumstances when determining their executive compensation and workforce-related actions moving forward.

“SullivanCotter’s 2020 survey reflects the most recent normative year prior to COVID-19. Due to the current pandemic and the extremely dynamic environment, the survey data should be used thoughtfully, with appropriate context, and with sound business judgement as you are planning and considering your pay decisions for FY2020 and beyond,” said Bruce Greenblatt, Managing Principal, SullivanCotter.

There are a number of important executive compensation considerations for organizations to consider as they move forward:

  • Be mindful of how to appropriately use 2020 survey data. Understand the timing of the data and consider what you are trying to assess before using them. The data can be helpful in benchmarking the competitiveness of compensation program elements and award opportunities.
  • Rely on sound business judgement and discretion when evaluating base salary actions and incentives for FY2020.
  • Plan to revisit incentive performance goals for FY2021 to ensure they are tailored to the current environment.
  • Assess the broader impact of COVID-19 on executive talent strategy and review the compensation philosophy and program design.
  • With continued uncertainty in FY2021 and beyond, remain mindful of the environment and be flexible.

For more information on SullivanCotter’s surveys, please visit our website at www.sullivancotter.com, email us or contact us by phone at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology products to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


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PRESS RELEASE | SullivanCotter Releases Enhanced Patient Panel Management Capabilities for PPMT™

Automate the assignment of patients to clinician panels through sophisticated organization-defined rules

October 28, 2020 – ChicagoSullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and technology and data products for the health care industry and not-for-profit sector, launches expanded patient panel management functionality in the latest update of its comprehensive Provider Performance Management Technology™ (PPMT). PPMT™ is an industry-first, cloud-based product that enables provider engagement through transparent performance-based compensation administration, reporting and analytical capabilities.

As the focus on optimizing team-based care to achieve better patient outcomes intensifies, health care organizations require more effective strategies and resources for facilitating patient panel management. PPMT™ enables organizations to automate the assignment of patients to clinician panels through sophisticated client-defined rules. It then calculates a risk-adjusted panel size and applies compensation calculations for a group or individual based on an organization’s requirements – providing the flexibility to change patient attribution and/or panel compensation assignments as clinical teams evolve. PPMT™ allows for greater transparency into panel composition and serves as a single, centralized source of truth for clinician compensation.

“Properly attributing patients to the correct clinician’s panel can require hours of administrative time each month. Combined with detailed analytics and powerful auditing and adjustment tools, the new panel management functionality streamlines this process to ensure more accurate attribution and support effective panel management programs,” said Shelly Slowiak, Director, Product Support, Provider Performance Management Technology™, SullivanCotter.

Designed to address a spectrum of physician, leadership and other key stakeholder needs, PPMT™ combines years of health care compensation insight and expertise with an intuitive, automated technology platform to help drive clinician performance and support the transition from volume- to value-based care. It incorporates SullivanCotter’s industry-leading benchmarking data into three integrated modules, including Provider Performance Management, Provider Productivity Insights and Compensation Management Analytics.

“We’re working hard to understand our clients’ changing needs and priorities and, as a result, will continue to refine our product roadmap and deliver the functionality they require to help navigate such a dynamic marketplace. This innovative new functionality will serve to strengthen our existing panel management capabilities, and is a welcome addition to PPMT™ as we strive to develop one of the industry’s most comprehensive, end-to-end technology products for managing clinical compensation and performance,” said David Schwietz, Chief Information Officer, SullivanCotter.

For more information on Provider Performance Management Technology™, visit www.sullivancotter.com/PPMT or contact us at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights, expertise, data and technology to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


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PRESS RELEASE |
Hospital Sisters Health System Implements PPMT™

Hospital Sisters Health System Selects Innovative Technology Product to Automate and Enhance Physician Compensation and Performance Management Capabilities

October 13, 2020 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, has partnered with HSHS Medical Group and Prairie Cardiovascular, two Hospital Sisters Health System ministries, to implement its comprehensive Provider Performance Management Technology™ (PPMT).

Hospital Sisters Health System is a large, multi-institutional health system committed to delivering high-quality, patient-centered care to communities throughout Illinois and Wisconsin. By leveraging PPMT™, an industry-first, cloud-based product that enables physician and APP engagement through transparent performance-based compensation administration and analytical capabilities, the organization is looking to automate and align the management of clinician pay and performance across its medical group.

Driven by the need to provide a growing network of physicians with more accurate compensation and productivity data, HSHS Medical Group and Prairie Cardiovascular started the journey with an in-house application designed to enhance a process that was once very manual. Developing the right mix of internal resources and support to expand the application’s capabilities in line with the system’s evolving needs, however, proved difficult.

“We required a more comprehensive system with the ability to flex and scale with us as we add or change value-based incentives, modify compensation plans and analyze the impact of Evaluation and Management CPT code changes. PPMT™ will now enable us to automatically deliver extensive supporting documentation with drill-down capabilities to the patient-level for our clinicians to access any time they want. Providing this visibility and transparency is critical as we navigate an increasingly complex and rapidly changing health care environment,” said Linda Dace, System Vice President of Finance, Hospital Sisters Health System.

PPMT™ incorporates SullivanCotter’s industry-leading benchmarking data into three integrated modules, including Provider Performance Management, Provider Productivity Insights and Compensation Management Analytics. Hospital Sisters Health System selected all three modules to help support their goals - allowing for a more cohesive approach to compensation and performance management.

For more information on Provider Performance Management Technology™, visit www.sullivancotter.com/PPMT or contact us at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


 

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PRESS RELEASE | SullivanCotter Launches New Physician Needs Assessment

SullivanCotter Launches New Physician Needs Assessment Application to Support Critical Staffing and Service Line Requirements

September 15, 2020 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, announces the launch of its new Physician Needs Assessment (PNA). SullivanCotter’s PNA is an interactive, cloud-based application that delivers actionable, data-driven insight into physician supply and demand to help organizations identify, monitor and respond to changing service line needs and physician workforce staffing requirements.

By leveraging real-time market intelligence, custom analyses and tailored forecasting scenarios, this innovative new PNA application enables organizations to dynamically address emerging market trends, changing population demographics and evolving physician practice patterns.

Using proprietary benchmark data from over 1,500 organizations and 400,000 physicians, SullivanCotter’s advanced methodology analyzes more than 1 billion unique claims annually to accurately calculate the physician surplus or deficit within a specific area by determining supply, forecasting wRVU utilization and adjusting to various market-specific demographics – including geography, economic factors, age/gender, payment types and managed care –  to calculate subsequent demand projections.

“In today’s increasingly uncertain marketplace, health care organizations remain acutely focused on recovery and what lies ahead in a post-COVID-19 operating environment. As hospitals and health systems look for better ways to support financial sustainability, assess clinical optimization opportunities, drive performance, and manage physician resources and service line needs, organizations must determine the right amount and type of physician specialties to operate effectively in the markets they serve ,” said Ted Chien, President and Chief Executive Officer, SullivanCotter.

Additional features and functionality include:

  • A rigorously researched, call-verified and editable physician and APP supply roster based on multiple data sources that includes tracking of employment and affiliations
  • Interactive mapping tool with the ability to select specific zip codes for strategic consideration and to account for any shifts in demographic mix
  • Predictive modeling to assess the impact of virtual care, urgent care, retail health and more
  • Advanced Practice Provider calculator to measure the impact of this workforce across specialties and their corresponding effect on physician supply and demand
  • Comprehensive, customizable reports with 5-year rolling projections and automatic annual updates to demand defined by demographic and geographic data
  • Archived reports providing strategic service area information and annual Stark compliance insights for measuring community need and assessing fair market value and commercial reasonableness considerations

Designed with the unique needs of leadership, physician and administrative stakeholders in mind, SullivanCotter’s PNA combines data-driven technology, industry-leading benchmark data and years of physician workforce consulting experience to provide organizations with the information and insights they need to inform key service line, practice and payer strategies in an evolving health care environment.

To learn more, request a demo, or view a full list of features and functionality, visit sullivancotter.com/PNA or call 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


 

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PRESS RELEASE | SullivanCotter Launches Clinician Pay Functionality for PPMTTM

SullivanCotter Develops Powerful New Clinical Compensation Management Capabilities for its Growing PPMTTM Platform

September 1, 2020 – Chicago – 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, announces the addition of highly anticipated new Clinician Pay functionality to its growing Provider Performance Management TechnologyTM (PPMT) platform. PPMTTM is an industry-first, cloud-based solution that enables provider engagement through transparent performance-based compensation administration and analytical capabilities.

Clinician Pay enables administrative stakeholders to easily manage annual compensation draws and payroll adjustments through a centralized, secure and auditable source within PPMTTM. The new functionality can be added as part of the platform’s comprehensive Compensation Management Analytics module for an additional licensing fee. This module’s broader capabilities allow organizations to integrate physician compensation earned from all sources, review dollars paid and balances due, facilitate settlement reporting, project year-end results, model improvement scenarios and generate accruals for Finance.

“With this automated new functionality, health care organizations can significantly reduce manual intervention and potential for human error when managing important pay adjustments for a large clinical workforce. Not only does this help to free up administrators to work on more critical projects, but it also helps to ensure data quality and instill greater trust in the reporting process by seamlessly communicating important information straight to payroll for payment,” said Shelly Slowiak, Director, Product Support, Provider Performance Management Technology™

PPMT’s Compensation Management Analytics module plus the new Clinician Pay feature also provides the option to utilize payroll data for settlement processing - allowing for a comprehensive end-to-end solution for processing clinician payments and compensation adjustments.

“To help organizations navigate an increasingly complex and uncertain health care environment, we are continuously refining our product roadmap and enhancing PPMTTM based on the evolving needs of our clients. Clinician Pay is an exciting new addition to the platform and demonstrates our commitment to developing one of the industry’s most innovative clinical compensation and performance management solutions,” said David Schwietz, Chief Information Officer, SullivanCotter.

Designed to address a spectrum of physician, leadership and other key stakeholder needs, PPMTTM combines years of health care compensation insight and expertise with an intuitive and automated technology platform to help drive provider performance and support the transition from volume- to value-based care.

For more information on Clinician Pay or our entire suite of Provider Performance Management TechnologyTM, visit www.sullivancotter.com/PPMT or contact us at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


 

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PRESS RELEASE | SullivanCotter Launches Suite of Health Care Benchmarking Solutions

SullivanCotter Launches Innovative Suite of Products to Help Benchmark Health Care Workforce Compensation and Clinical Productivity

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July 30, 2020 – Chicago – 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, is pleased to announce the launch of Benchmarks360TM. Powered by SullivanCotter's proprietary survey data and research, Benchmarks360TM is a suite of intelligent, web-based products that enables health care organizations to analyze and visualize workforce compensation and clinical productivity.

Designed to address enterprise-wide benchmarking needs for employees at all levels – including executives, physicians, advanced practice providers and other clinical and non-clinical staff positions – Benchmarks360TM provides critical industry-leading data, analyses and reporting to support the compensation decision-making process in an increasingly complex operating environment.

"Amidst a rapidly evolving global pandemic, hospitals and health systems are struggling to navigate a number of unprecedented financial and workforce challenges. Strengthening compensation practices and clinical workforce productivity through unique, data-driven intelligence and insights can help to support long-term sustainability in today's ever-changing marketplace. With the ability to conduct a wide variety of quantitative reviews and custom benchmarking analyses, Benchmarks360TM allows organizations to interactively assess clinical productivity and changes in compensation against national market data," said David Schwietz, Chief Information Officer, SullivanCotter.

As one of the most comprehensive products of its kind, it includes two distinct modules to help balance pay and clinical productivity across the organization:

Workforce Compensation and Clinical Productivity Manager

Compare your organization's compensation and clinical productivity benchmarks to the nation's largest health systems and medical groups. Utilize SullivanCotter's proprietary benchmarking information, representing over one million total incumbents, along with other third-party data sources. This module comes in both a Standard (offered with the purchase of SullivanCotter survey data) and a Pro version (upgrade available for additional licensing fee).

Clinical CPT Manager

Analyze and measure your organization's Current Procedural Terminology (CPT) coding distribution against national physician and advanced practice provider clinical benchmarks at the specialty, work RVU and CPT level. This module can be purchased and added separately.

Benchmarks360TM is offered exclusively to organizations who purchase SullivanCotter survey reports. To learn more, including important licensing information and a full list of features and functionality, visit sullivancotter.com/benchmarks360 or call 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


PRESS RELEASE | Darrell J. Cira Joins Employee Workforce Practice

SullivanCotter Welcomes Nationally Recognized Workforce Rewards
and Career Frameworks Consultant

July 21, 2020 – Chicago – 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, is pleased to announce the addition of Darrell J. Cira, Principal, to the firm's growing Employee Workforce Practice.

With over 25 years of experience advising large and operationally complex organizations outside of and within health care, pharmaceuticals and other life science industries, Darrell is a nationally recognized workforce rewards and career frameworks thought leader and consultant.

Serving as a trusted partner for hospitals and health systems nationwide, Darrell specializes in the design of broad-based employee total rewards programs and talent development strategies to help organizations grow sustainably, achieve key goals and drive performance.

"The industry continues to face unprecedented financial and workforce challenges due to the COVID-19 pandemic, and many organizations are re-evaluating certain policies and practices in light of these recent events. Developing enterprise-wide rewards philosophy, career architecture and compensation frameworks to maintain employee engagement, manage costs and ensure future sustainability is now more critical than ever. Leveraging many years of direct experience within both general industry and health care, Darrell will work with clients to devise and implement strategic workforce programs as the health care industry makes plans for financial recovery and operational transformation," said Ted Chien, President and Chief Executive Officer, SullivanCotter.

Darrell also has an extensive range of additional expertise that will help him to provide greater value for clients in a rapidly evolving health care environment. This includes creating job and compensation infrastructures in the context of today's cloud-based human capital management systems, managing complex compensation plan integrations for a variety of mergers and acquisitions, and conducting pay equity analysis and implementing programs to help address related issues and discrepancies.

Prior to joining SullivanCotter, Darrell spent many years as a partner at a large global consulting firm where he led a number of critical workforce rewards and talent management initiatives.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

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PRESS RELEASE | SullivanCotter Welcomes Health Care Industry Consultant Russell L. Wilson

Leveraging more than 12 years of industry insight and first-hand knowledge of the evolving health care environment

March 17, 2020 – Chicago – 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 Russell L. Wilson to the firm’s Executive Workforce Practice.

Russell is an industry expert with over 12 years of experience in advising leading health care organizations on key issues in talent management and total rewards. Leveraging this deep insight and first-hand knowledge of the evolving health care environment, Russell leads a number of client consulting teams in the development of executive compensation strategies designed to drive performance and enhance organizational outcomes.

“The role of the health care executive in today’s operating environment is changing as the principles of value-based care continue to take shape. To help advance key system-wide objectives, leadership is now tasked with developing targeted approaches to improving quality, outcomes and performance across the entire care continuum. Designing integrated talent management and total rewards strategies to support these goals is critical, and Russell will play a vital role as a trusted advisor in helping our clients to implement customized programs aligned with their mission, vision and values,” said Ted Chien, President and CEO, SullivanCotter.

As a member of the firm’s Executive Workforce Practice, Russell works closely with hospitals, health systems and medical groups nationwide to develop long-standing relationships and understand organizational needs and objectives in the ever-changing marketplace. He specializes in aligning executive pay and performance, including short- and long-term incentive plans, with an organization’s strategic initiatives and advises on implementation to help ensure the delivery of competitive and sustainable workforce solutions. Russell also works directly with boards and compensation committees to provide education on best practices for effective and compliant executive compensation approaches, decision-making processes and governance procedures.

Prior to joining SullivanCotter, Russell served as a senior director at global consulting firm where he led talent and rewards for the Health Care Provider National Industry Team.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

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APP Compensation Programs Shifting to Address Growing Market Demand and Changing Models of Care

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February 4, 2020 – Chicago –SullivanCotter, the nation's leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, recently released survey results indicating that advanced practice provider (APP) compensation programs continue to evolve as organizations recognize the roles APPs play in helping to achieve key organizational goals.

There are a number of key factors driving this shift in APP compensation and pay practices, including (1) the increased integration and utilization of APPs to help enhance access, quality, service and affordability in a value-based health care environment; (2) a need for APPs amidst a growing physician shortage; (3) clinical integration and new team-based models of care, which suggest a potential need for greater alignment between physician and APP rewards strategies and; (4) the rising prevalence of APP leadership positions and structures to support the effective management of this rapidly expanding workforceMany organizations are restructuring their pay programs accordingly as ongoing challenges in recruiting, retaining and engaging key APP talent requires a more competitive approach to compensation.

APPs are currently among the fastest growing segments of the health care workforce and, on average, comprise more than one-third of an organization's clinical providers.i As APPs move beyond traditional inpatient and outpatient settings, this growth is driven in part by increased utilization in new and/or emerging practice settings such as urgent care, retail-based and skilled nursing. An analysis of results from SullivanCotter's 2019 Advanced Practice Provider Compensation and Pay Practices Survey confirms the demand for APPs as participating organizations reported significant growth in this workforce. In fact, this growth exceeded yearly estimates by 7%. Similarly, actual increases in base pay continue to outpace expectations. In 2018, the projected average increase was 3.2% compared with an actual average increase of 4.8%. The actual average increase in 2019 was 4%, which is slightly higher than what was projected.

"The strong demand for APPs continues to be a significant trend and can place added pressure on an organization's staffing budget. Actual increases in base pay have been consistently outpacing projections for the past five years, and health care organizations must be mindful of the impact this can have on the bottom line - especially if APPs make up a significant portion of your overall workforce," said Amy Noecker, Principal, SullivanCotter.

As with physicians, APP compensation is evolving to reflect differences between major specialty categories – primary care, medical, surgical and hospital-based. While all categories have seen increases in combined nurse practitioner and physician assistant median total cash compensation (TCC, equal to base salary plus annual incentives) from 2017 to 2019, medical and hospital-based rates have seen the most growth at 5.3% and 5.0%, respectively. Primary care, up 4.6%, and surgical, up 4.4%, follow closely behind.

Additionally, incentives are becoming a component of APP total cash compensation as rewards strategies continue to evolve. Nearly half of participating organizations, at 48%, report utilizing incentive pay for at least some of their APPs. While this prevalence has remained steady year over year, median annual incentive amounts have increased across all specialty categories from 2018-2019. Despite having the lowest overall TCC rates, primary care APPs continue to have the highest reported median annual incentive amounts in 2019 expressed as both a dollar amount, $7,701, and as a percentage of base salary, 6.9%. As in past years, these incentive opportunities are predominantly structured as add-on dollars, 73%, rather than at-risk, 15%.

Clinical integration and the focus on new team-based models of care are also driving the evolution of APP compensation programs. "Although there are still some important differences in the design of physician and APP compensation programs, aligning rewards more closely to ensure complementary versus competitive team-based care delivery is important. As organizations look to establish and reinforce a clinical team-based mindset, many are considering a strategic restructuring of their APP compensation plans to reflect certain elements of physician pay programs," said Trish Anen, Principal and APP Workforce Practice Leader, SullivanCotter.

In 2019, 32% of APP incentive programs contained a team-based component. This prevalence has increased by 5% since 2017. Based on survey responses, most APP incentive plans are relatively simple, with 64% of organizations utilizing just one or two metrics. The most prevalent metrics selected in all practice settings are work RVUs, value/quality-based and patient experience. In an effort to better understand and track impact, the interest in APP productivity continues to grow as more organizations collect and report this information. From 2017-2019, there was a substantial 66% increase in the amount of reported work RVU data and a 26% increase in patient visit data.

Lastly, APP leadership compensation continues to evolve as organizations develop new positions and outline key responsibilities to effectively support the management of this growing workforce. As a result, a clear structure of leadership roles has solidified. In 2019, 58% of organizations reported having designated APP leaders. Of these organizations, 26% utilize a top APP leader. This typically represents one or two leaders dedicated to developing the overall APP workforce strategy. Annual TCC for these top APP leader positions falls between $155,527 and $212,850 (25th-75th percentile) and tends to correlate with the number of employed APPs.

SullivanCotter's 2019 Advanced Practice Provider Compensation and Pay Practices Survey Report  is now in its 8th year. With data from more than 560 organizations on nearly 74,000 individual APPs, this survey provides critical information on physician assistants, nurse practitioners and other certified providers across 127 different specialties. The survey includes insight into base salary, TCC, productivity, incentive plan design and other pay practices such as extra shifts, on-call pay, shift differentials, recruitment and retention bonuses, and more. For more information on SullivanCotter's surveys, please visit our website at www.sullivancotter.com or contact us by phone at 888.739.7039.

Don't miss your chance to participate! The 2020 Advanced Practice Provider Compensation and Pay Practices Survey is now open for submission.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.


iSource: SullivanCotter 2019 Organizational Characteristics Database
Clinical provider includes: nurse practitioner, physician assistant, certified registered nurse anesthetist, certified nurse midwife, doctor of medicine and doctor of osteopathic medicine

PRESS RELEASE | Physician Compensation Evolving to Address Complex Operating Environment

Results from SullivanCotter's 2019 Physician Compensation and Productivity Survey

December 3, 2019 – Chicago – SullivanCotter, the nation's leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, recently released survey results indicating that physician compensation programs are evolving as organizations address a variety of new challenges in a rapidly changing health care environment.

Some of the key environmental factors driving the need for new approaches to physician compensation and performance programs include (1) new models of care focusing on population health, supporting the transition from volume to value, and enhancing access, quality, service and affordability; (2) a growing demand for key talent amidst a looming shortage of physicians, resulting in a more competitive labor market; (3) aligning physician performance with overall organizational goals; and (4) developing physician compensation plans that are ready to address the challenges associated with CMS quality programs such as MIPS and potential changes to the Stark Law.

An analysis of the survey data indicates that market supply and demand for physicians continues to drive increases in total cash compensation (TCC, equal to base salary plus annual incentives) as organizations look to remain competitive amidst talent shortages. There is a continued year over year increase in median TCC across all major specialty categories – including primary care, hospital-based, medical and surgical specialties. This has been the case for the past ten years.

Despite increases in TCC across the board for these major specialty categories, productivity remains relatively flat and in many cases is even declining. From 2014-2019, median TCC for primary care physicians increased by 14.7%, whereas work RVU (wRVU) productivity declined by 0.2%. As organizations look to expand their primary care providers, there is upward pressure on family medicine and internal medicine compensation without significant changes in wRVU productivity. To meet population health goals, organizations are adding other measures of performance such as panel management and telehealth to their primary care scorecards. Over the same 5-year time period, hospital-based physicians saw the largest growth in median wRVU productivity at 5.2%. This was the only major specialty group to see an increase greater than 1.5%.

"With growing concerns regarding provider supply and demand, organizations are evolving their compensation programs to align with an increasingly competitive talent market. With a looming physician shortage placing pressure on organizational recruitment and retention strategies, this demand continues to push physician compensation upwards without being supported by corresponding gains in productivity or reimbursement – resulting in higher levels of organizational investment per physician," said Dave Hesselink, Principal, SullivanCotter.

Additionally, from 2018 to 2019 the prevalence of value-based incentives, which rewards performance on measures such as clinical quality, patient experience and access, has increased by 5-7% across all four major specialty categories. For primary care, the prevalence of value-based incentive components in plan design was up 5% from last year, with 62% of organizations incorporating these incentives into their physician compensation programs. Medical, surgical and hospital-based specialties all fell in the range of 55-57%.

"While reimbursement models continue to evolve and organizations are focused on incorporating more value-based components into their physician compensation programs, it is important to note that quality incentive payments still only comprise a small portion of TCC. We expect to see continued growth in value-based incentives as organizations work to further develop and refine these programs to ensure they have credible measurement and reporting systems in place before moving forward," said Mark Ryberg, Principal, SullivanCotter.

The actual amounts paid for value-based performance remain relatively small at 6.2% of TCC across all specialties at the median. However, this is up from 5.6% in 2018. Primary care is highest at 7.0% of TCC with hospital-based specialties following at 6.3% and medical and surgical specialties at just below 6.0%.

SullivanCotter's 2019 Physician Compensation and Productivity Survey is now in its 27th year. With data from nearly 700 organizations on more than 206,000 individual physicians and advanced practice providers (APPs), this survey is the largest and most comprehensive dataset of its kind. It provides insight into base salary, TCC and productivity data and ratios including wRVUs, collections, patient visits and panel sizes. For more information on SullivanCotter's surveys, please visit our website at www.sullivancotter.com or contact us by phone at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

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PRESS RELEASE | Industry Disruption and New Talent Requirements are Impacting Health Care Executive Pay

Results from the 2019 Manager and Executive Compensation in Hospitals and Health Systems Survey

November 4, 2019 – Chicago – SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, recently released survey results showing that industry disruption and new talent requirements are impacting executive compensation levels and incentive programs.

The drivers of these changes are: (1) increased complexity of health care organizations due to consolidation, mergers and acquisitions, and new partnerships; (2) changing models of care, as organizations transform to integrate care across the continuum, enhance access, deliver an improved patient experience, and focus on population health/value based care; (3) pressures for cost efficiency; and (4) entry into new businesses to pursue revenue diversification and growth. C-suite leaders of health care organizations must possess the skills and competencies to manage the increased complexity, uncertainty and change. Proven talent is in high demand. Aggressive senior leadership recruitment and retention efforts are being observed in the market, particularly among the largest organizations, which is causing upward pressure on pay. At the same time, less senior roles within health systems and leaders of system-owned entities are experiencing less upward pressure on compensation due to the operational focus of these roles and more talent availability. There is also a growing emphasis on performance-based compensation for senior leaders to tie rewards to attaining short-term and long-term goals.

An analysis of the survey data indicates that median base salaries for the most senior executives of independent health systems with enterprise-wide responsibility (CEOs, COOs and CFOs) increased at a rate of 3.5% to 4.0%, versus 3.0% for these same roles at system-owned hospitals. For senior vice presidents, however, median base salary increases were more aligned at 3.1% for independent health systems and 3.0% for system-owned hospitals.

When considering organization size, salaries are rising faster for CEOs, COOs and CFOs at larger, more complex organizations. For health systems with more than $3B net revenue, median base salaries for these top executives rose between 4% and 5%, compared to 3.0% to 3.5% for smaller independent health systems with less than $3B net revenue. The median change in salaries for management, vice president, and senior vice president roles across both systems and hospitals was almost consistently 3.0% across the board (except senior vice presidents of larger health systems, which was 3.5%).

In addition, performance-based incentive levels are increasing for senior health system leaders. In most executive roles, total cash compensation (TCC, equal to base salary plus annual incentives) increased faster than base salary. Additionally, changes in TCC differed by type of organization, with health systems rising faster than system-owned hospitals. Median change in TCC for CEOs, COOs, CFOs and senior vice presidents at independent health systems ranged from 4.7% to 6.5%. In contrast, the median increase for these roles at system-owned hospitals ranged from 3.0% to 3.9%. As with base salaries, both the level of senior executive TCC increases and target incentive opportunities were higher for larger independent health systems (i.e. revenues greater than $3B) compared to smaller ones.

Furthermore, larger health systems use long-term incentive plans (LTIPs) more commonly for top executives to support the attainment of critical organization-wide objectives. Among health systems with greater than $5B in net revenue, 47% utilize LTIPs, versus 30% for health systems with greater than $1B in net revenue. “Large health systems are shifting their performance focus from individual facility success to measuring outcomes system-wide in the areas of population health management, alignment, integration, quality/patient safety and financial stewardship. Well-designed annual and long-term incentive programs can be effective in supporting these efforts and driving desired performance outcomes,” said Bruce Greenblatt, Managing Principal, SullivanCotter.

“We are seeing upward movement in compensation for health system executive positions, especially those in larger health systems and those located in cities with a high cost of living, reflecting the highly competitive market for talent and the difficulties faced by these organizations to attract talent. Increases are more modest for hospital executive positions, especially those at system-owned hospitals. This speaks to the broader availability of talent for these positions and the increasing operations focus at the hospital-level as shared services and administrative functions are aligned at the system-level,” explains Tom Pavlik, Managing Principal, SullivanCotter.

SullivanCotter’s 2019 Manager and Executive Compensation in Hospitals and Health Systems Survey is now in its 27th year.  It provides critical benchmarking data on compensation levels and pay practices, and is the largest and most comprehensive of its kind for hospitals and health systems nationwide. The survey includes data from over 2,200 organizations, comprising 460 health systems and more than 1,800 hospitals, and captures information for more than 42,000 incumbents. For more information on SullivanCotter’s surveys, please visit our website at www.sullivancotter.com, email us at surveys@sullivancotter.com or contact us by phone at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

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WellStar Health Partners with SullivanCotter to Align and Engage Physicians with Transparent Compensation and Performance Data for Large Multispecialty Medical Group

SullivanCotter, the nation's leading independent consulting firm in the assessment and development of rewards programs and workforce solutions for the health care industry and not-for-profit sector, will partner with WellStar Health System to implement its comprehensive Provider Performance Management Technology™ (PPMT™).

Jan. 23, 2019 – Chicago – WellStar is the largest health system in Georgia and is known for its innovative care models and cutting-edge use of technology to stay ahead of the curve. Developed in cooperation with Mayo Clinic, PPMT™ is an industry-first, cloud-based solution that enables provider engagement and alignment through transparent performance-based compensation administration and analytical capabilities.

"Given the complexity of managing compensation and performance data for a growing team of 1,350 physicians and advanced practitioners, we required a software solution to help automate and enhance our administrative, analytical and reporting capabilities. By partnering with SullivanCotter to implement PPMT™, we're able to provide greater insight and transparency into physician productivity, panel benchmarking and performance on quality metrics. Transparency builds trust with our providers and we know that this drives better performance and better outcomes for our patients – all the while supporting our strategic growth plans," said Rob Schreiner, M.D., President of WellStar Medical Group.

Designed to address a spectrum of physician, leadership and other key administrative needs, PPMT™ delivers centralized and actionable data tailored to the unique needs of each stakeholder. It combines years of health care compensation insight and expertise with an intuitive, automated technology platform, and serves as a single source of truth that helps empower physicians to drive desired outcomes and enhance organizational performance.

PPMT™ incorporates SullivanCotter's industry-leading benchmarking data into three integrated modules, including Provider Performance Management, Revenue and Productivity Analytics and Compensation Management Analytics. WellStar selected all three modules to help support its growing network of providers, allowing for a more cohesive approach to compensation and performance management.

For more information on Provider Performance Management Technology™, visit www.sullivancotter.com/PPMT or contact us at 888.739.7039.

About SullivanCotter

SullivanCotter partners with health care and other not-for-profit organizations to understand what drives performance and improve outcomes through the development and implementation of integrated workforce strategies. Using our time-tested methodologies and industry-leading research and information, we provide data-driven insights and expertise to help organizations align business strategy and performance objectives – enabling our clients to deliver on their mission, vision and values.

Contact: Becky Lorentz 
SullivanCotter 
beckylorentz@sullivancotter.com 
314.414.3719


SullivanCotter Hires David Schwietz as Chief Information Officer

Integrating technology solutions, systems and services across the organization

MINNEAPOLISAug. 29, 2018 -- 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, announces the hire of David Schwietz to serve as the firm's first Chief Information Officer.

"Health care continues to evolve at a rapid pace, and innovation is now the cornerstone of driving efficiency in an industry that is highly focused on improving the total cost of care. To help navigate an increasingly complex operating environment, hospitals and health systems are actively looking to integrate technology solutions, systems and services across the organization. David's longstanding expertise and knack for cutting-edge solutions will play a vital role in helping our clients stay ahead of the curve," said Ted Chien, President and CEO, SullivanCotter.

David has over 25 years of consulting, entrepreneurial and executive management experience and has helped to develop strategy and lead key information technology initiatives at some of the nation's most prominent financial, medical and federal organizations. He also has specialized knowledge in blockchain technology and business intelligence, understanding their potential for transforming the way health care organizations manage, store and secure data.

With a particular focus on enhancing data security, expanding infrastructure to enable firmwide solution and information strategies, and developing new and innovative software services, David is responsible for leading SullivanCotter's technology growth initiatives and related resources in a way that helps to drive greater value for clients.

David joins SullivanCotter from the Federal Reserve Bank of Minneapolis, where he served as the Vice President of Information Technology and was responsible for managing the systems, people and platforms required to ensure the safety and stability of the bank's day-to-day technical operations. He frequently speaks on blockchain and other emerging technologies, and is currently co-authoring a book on artificial intelligence.

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.

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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


Alex Barker, Principal, Joins SullivanCotter's Employee Workforce Practice

Jan. 18, 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 Alex Barker, Principal, to the firm’s Employee Workforce Practice.

Alex is an innovative industry leader with more than 20 years of experience in the strategic management of health care operations. Having held leadership positions at some of the nation’s largest hospitals and health systems, Alex is well-positioned to help clients navigate the rapidly changing health care environment as payment models evolve and organizations take on more risk. With direct insight into how large and operationally complex organizations are aligning their compensation and benefits programs as the industry continues its shift from volume to value, Alex specializes in the development of integrated total reward programs for employees at all levels.

“With strategic, value-based goals such as improved quality, access, service and affordability, organizations must look beyond physicians as the only drivers of clinical performance. Understanding how to better support key organizational goals across all segments of the health care workforce is critical. Alex’s unique combination of experience in the executive, provider and employee workforces is rare, and will be a great asset to our clients as they look to implement a more holistic approach to aligning compensation and performance across the board,” said Ted Chien, President and CEO, SullivanCotter.

Alex also has an impressive range of additional experience that will help him to better assist clients, including governance, operational due diligence, post-merger integration and alignment, workforce resource planning and recruitment, onboarding and retention strategy.

Alex joins the firm from his previous role as a Senior Client Partner in Korn Ferry Hay Group’s Physician Compensation and Governance Practice. Prior to this, he served as the VP of Compensation, Benefits and Physician Services at Lahey Health, where he was responsible for managing both provider and non-provider total reward programs for the entire system.

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SullivanCotter Expands Physician Workforce Consulting Services

Jan. 16, 2018 – Minneapolis – SullivanCotter, 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, announces the expansion of the firm’s physician workforce services with the hiring of industry leaders Ron Vance, Patty Bohney and an additional team of five talented consultants. All associates were previously with Navigant’s Healthcare Practice, and bring specialized expertise in physician compensation and workforce performance.

“In the rapidly changing health care environment, we continue to scale our services and broaden our expertise in ways that help our clients address an increasingly diverse set of strategic challenges. With extensive experience in physician alignment and compensation design, Ron and Patty’s team will be a tremendous asset in delivering long-term, sustainable value to the organizations we advise,” said Ted Chien, President and CEO, SullivanCotter.

Ron Vance joins SullivanCotter as a Managing Principal and will help to lead the firm’s client engagements in enterprise workforce alignment alongside newly-appointed Chief Medical Officer, Dr. Mark Rumans. As an attorney, consultant and certified valuation analyst with more than 30 years of experience in strategic planning, physician-hospital alignment and the development of progressive physician compensation arrangements, Ron has advised a wide variety of health care organizations — including community health systems, private physician practices and academic medical centers — through periods of transformative change.

Patty Bohney joins the firm as a Principal in the Physician Workforce Practice. She has nearly 30 years of combined industry experience as a registered nurse, in addition to a variety of operational, management and consulting roles. Leveraging this unique breadth of expertise and a deep working knowledge of the evolving provider landscape, Patty will work closely with clients on the design, implementation and management of strategic, performance-driven physician compensation programs. She is also a certified valuation analyst and will assist a growing team of consultants in determining fair market value and commercial reasonableness.

In addition to Ron and Patty, SullivanCotter welcomes Kevin Hendrickson, Jaclyn Zurawski, Tony Francis, Kaizad Daruwala and Benjamin Shamis to the firm’s Physician Workforce Practice.

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