Physician executive compensation continues to rise despite recession: median pay up 7 percent to $225,000 over last 2 years.The battered bat·ter 1 v. bat·tered, bat·ter·ing, bat·ters v.tr. 1. To hit heavily and repeatedly with violent blows. 2. To subject to repeated beatings or physical abuse. 3. economy and upheaval in health care appear to have had little impact on physician executive pay over the last two years. Overall, median compensation for physician executives rose 7.1 percent from $210,000 to $225,000 from 2000 to 2002, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the results of the 2003 Physician Executive Compensation Survey conducted by Cejka Search and the American College American College is the name of:
While the increases in compensation could be affected by the shift in sample sizes between the 2001 survey and the 2003 survey, it appears that compensation continued an upward trend for all but a few physician executive positions. The 2003 survey is based on information from 2,060 physician executives. Among the biggest compensation winners were CEOs and presidents of hospitals who saw a big jump from a median of $221,000 in 2000 to $313,000 in 2002--an increase of more than 41 percent. What follows is a quick look at some of the survey numbers. ACPE ACPE Accreditation Council for Pharmacy Education ACPE American Council on Pharmaceutical Education ACPE American College of Physician Executives ACPE Association for Clinical Pastoral Education, Inc. members who participated in the survey receive the complete report for free. Others may purchase the survey results for $150 for ACPE members ($350 nonmembers) by contacting Cejka Search at 800-678 7858 or by ordering on the Web at www.cejkasearch.com/acpe. About the survey The Cejka Search/ACPE Physician Executive Compensation Survey was mailed in April 2003 to 9,67.3 ACPE ineinbers. By August, a total of 2,153 surveys were received by the survey deadline. Of the 2,153 questionnaires received, 93 were discarded dis·card v. dis·card·ed, dis·card·ing, dis·cards v.tr. 1. To throw away; reject. 2. a. To throw out (a playing card) from one's hand. b. from the survey tabulation tab·u·late tr.v. tab·u·lat·ed, tab·u·lat·ing, tab·u·lates 1. To arrange in tabular form; condense and list. 2. To cut or form with a plane surface. adj. Having a plane surface. due to insufficient in·suf·fi·cient adj. 1. Not sufficient. 2. Incapable of proper functioning. information that would have resulted in erroneous erroneous adj. 1) in error, wrong. 2) not according to established law, particularly in a legal decision or court ruling. or misleading results. The total questionnaires used in the survey tabulation were 2,060, representing a 21 percent response. Compensation data reported in this survey is for the 2002 calendar year. Direct compensation includes base salary, bonuses, incentive payments, research stipends, honoraria, and distribution of profits. Compensation reported in this survey includes compensation for both administrative and clinical duties. Compensation does not include the dollar value of expense reimbursements, benefits paid by the organization (health insurance, CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). , malpractice insurance Noun 1. malpractice insurance - insurance purchased by physicians and hospitals to cover the cost of being sued for malpractice; "obstetricians have to pay high rates for malpractice insurance" , etc.), or any employer contributions to a retirement plan (401k, 403b, Keogh For the name, see Kehoe. Keogh plans are full fledged pension plans for self employed people. They are sometimes called HR10 plans and are not Individual Retirement Accounts (IRA). ). Titles The total number of titles reported in the survey is 13. The titles are listed below and are ranked according to the total number of responses and percent of sample. Although some titles received a low number of responses, their respective data was report ed in some of this report to illustrate market supply and penetration The successful unauthorized breach of a security perimeter. See penetration test. . Top Dollars The highest median compensation for all physician executives based on organization type was for those working in practice management companies ($360,000) and single specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. groups ($275,300). Those executives working for government-run institutions reported the lowest compensation earned in 2002 ($162,000). Respectively, the median compensation for all medical directors was $214,000, while the median compensation for medical directors working for a government-run institution was $161,000. High wage earners Member/chair board of" directors lead the list of top earners with a median compensation of $2,200 more than a very close CEO/president and $66,000 more than a medical director. Position median Member/chair board of directors $280,000 CEO/president $277,800 Chief medical officer $253,500 Department/division chair/manager $250,000 Chief operations officer $237,500 Vice president of medical affairs $230,000 Vice president of quality $229,000 Medical director $214,000 Associate/assistant medical director $204,000 Consultant $200,800 Program director $200,000 Professor $198,000 Physician advisor $177,500 Group Leaders For the most part, physician compensation for physician executives employed by a single specialty' group was higher than the compensation for physician executives employed by a multispecialty group. For example, the median compensation for a single specialty group medical director was $249,000 or $34,000 more than the median compensation for a multispecialty group medical director ($215,000). Likewise, the compensation for a CEO/president employed by a single specialty group practice ($300,000) was $50,000 more than CEO/presidents employed by multispecialty groups. Median compensation for all physician executives by single specialty group size was reported as: 1 to 15 physicians $285,000 16 to 50 physicians $275,600 51 to 150 physicians $220,000 Median compensation for all physician executives by multispecialty group size was reported as: 1 to 15 physicians $215,000 16 to 50 physicians $215,000 51 to 150 physicians $244,500 151 or more physicians $246,000 [c] Cejka Search What's Your Specialty? Of the 2,060 respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. , 2,057 (99.85%) reported having a medical specialty medical specialty Any specialty that provides non-interventional Pt management, ie with drugs, or with minimum intervention–eg, balloon catheterization Examples Internal medicine–allergy and immunology, cardiology, gastroenterology, hematology/oncology, . Three primary care specialties (family practice, internal medicine, and pediatrics pediatrics (pēdēă`trĭks), branch of medicine dedicated to the attainment of the best physical, emotional, and social health for infants, children, and young people generally. ) accounted for 47 percent of the survey sample, representing the largest returns of all responding specialties. The 10 highest median compensation amounts for physician executives by specialty with 30 or more respondents includes: Cardiology $310,000 Orthopedic surgery $295,000 Anesthesiology $281,114 Emergency medicine $253,500 Pathology $251,000 General surgery $246,000 Pulmonology $235,000 Obstetrics/gynecology $221,000 Internal medicine $220,000 Pediatrics $219,000 Management Workload The term workload can refer to a number of different yet related entities. An amount of labor While a precise definition of a workload is elusive, a commonly accepted definition is the hypothetical relationship between a group or individual human operator and task demands. The average time devoted to administrative duties for all physician executives was 71 percent, indicating that most of the survey respondents spent a majority of their time in management as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to practicing clinical medicine. Those physician executives who spent the most time in management are ranked below, followed by those physician executives who spent the least time in management. Most time spent in management Chief medical officer 91% Vice president of medical affairs 88% Chief operations Officer 86% Vice president of quality 84% Least time spent in management Member/chair board of directors 35% Physician advisor 43% Professor 50% Department/division chair/manager 53% Administrative Compensation The more time an executive spent in administration, the more compensation the executive received for administrative duties. The median compensation for administrative duties only for all physician executives who spent 25 percent or less of their time in administration was $35,000, compared to $225,000 for those physician executives who allocated 100 percent of their time to administrative duties.
Admin Time % of Sample Median
Compensation
1% to 25% 14% $35,000
26% to 50% 14% $95,000
51% to 75% 8% $162,500
76% to 99% 22% $220,000
100% 41% $225,000
Business Degrees Seventeen Seventeen novel of young love. [Am. Lit.: Booth Tarkington Seventeen in Magill I, 882] See : Adolescence percent of the survey respondents hold a Master of Business Administration degree, qualifying it as the preferred business management degree among all physician executives. Next is a Master of Healthcare Administration Healthcare administration is a term that typically refers to the Master of Health Administration (MHA)—also Master of Healthcare Administration— degree, which is a graduate professional degree that provides training in health policy, economics, project and degree (8%), followed by Juris [Latin, Of right; of law.] A phrase that serves as the root for diverse terms and phrases dealing with the law; for example, jurisdiction, Jurisprudence, or jurist. Doctorate (6%), Master of Public Health (5%), and Master of Medical Management degree (2%). Not only was the Master of Business Administration degree preferred, but it also had the highest median compensation at $239,000 followed closely by physician executives with Master of Medical Management degrees at $232,500. Physician executives with no post-graduate business management degree trailed in compensation only to those who possessed an MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration or MMM MMM Myeloid metaplasia with myelofibrosis, see there . At a median compensation of $225,000, no degree earned the same compensation as an individual with an MHA MHA microangiopathic hemolytic anemia. and more than individuals with an MPH MPH Master of Public Health. MPH Master's Degree in Public Health or JD.
No Degree MBA MMM
CEO/President $260,000 $350,000 $260,000
CMO $247,000 $260,000 $300,000
Medical Director $215,500 $215,500 $193,000
[c] Cejka Search
Management Experience Median compensation for new physician executives was the lowest at $190,000, whereas median compensation for physician executives with 16 or more years experience was the highest at $242,000. However, a majority of the survey respondents had between 10 and 15 years of experience in an administrative position.
Years Experience % of Sample Median Compensation
1-2 years 6% $190,000
3-5 years 16% $208,000
6-9 years 27% $225,000
10-15 years 32% $230,000
16 or more years 19% $242,000
2000 AND 2002
MEDIAN PHYSICIAN EXECUTIVE COMPENSATION
Percent
2000 2002 CHANGE
ALL PHYSICIAN $210,000 $225,000 7.1%
ASSOCIATE/ASSISTANT MEDICAL DIRECTOR $170,000 $204,000 20.0%
Hospital $165,000 $212,000 28.5%
Multispecialty Group $196,000 $220,000 12.2%
HMO $169,000 $202,939 20.1%
CEO/PRESIDENT $250,000 $277,800 11.1%
Hospital $221,000 $313,000 41.6%
Single Specialty Group $260,000 $300,000 15.4%
Multispecialty Group $240,000 $250,000 4.2%
HMO $220,000 $270,000 22.7%
CHIEF MEDICAL OFFICER $225,000 $253,500 12.7%
Hospital $220,000 $250,000 13.6%
Multispecialty Group $220,000 $250,000 13.6%
HMO $231,500 $300,000 30.0%
CHIEF OPERATIONS OFFICER $250,000 $237,500 -5.0%
CONSULTANT $180,000 $200,800 11.6%
DEPARTMENT/DIVISION CHAIR/MANAGER $233,000 $250,000 7.3%
Hospital $262,000 $257,840 -1.6%
Single Specialty Group $300,000 $330,000 10.0%
Multispecialty Group $225,000 $220,000 2.2%
MEDICAL DIRECTOR $200,000 $214,000 7%
Hospital $210,000 $220,000 4.8%
Single Specialty Group $250,000 $249,000 -.4%
Multispecialty Group $200,500 $215,000 7.2%
HMO $200,000 $218,500 9.3%
MEMBER/CHAIR BOARD OF DIRECTORS $235,000 $280,000 19.1%
PROFESSOR $931,100 $198,000 2.6%
PROGRAM DIRECTOR $181,750 $200,000 10.0%
VICE PRESIDENT OF MEDICAL AFFAIRS $215,750 $230,000 6.6%
Hospital $215,000 $230,000 7.0%
Academic Health Center $220,000 $250,000 13.6%
VICE PRESIDENT OF QUALITY $215,000 $229,000 6.5%
* The difference in compensation between 2000 and 2002 could be
affected by a shift in survey sample size.
[c] Cejka Search
Across the USA Median compensation by geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. area for physician executives ranged from $220,000 to $230,000. The Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. and North Central regions combined for 54 percent of the responses. Median compensation for each of the regions surveyed is: Northeast $228,000 Southeast $224,000 North Central $230,000 Central $220,000 West $220,000 Several positions had significant differences in median compensation based on geographic area. For example, chief executive officers/presidents working in the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: Scope of Operations Because health care organizations continue to expand into both regional and national markets, it was necessary to differentiate differentiate /dif·fer·en·ti·ate/ (dif?er-en´she-at) 1. to distinguish, on the basis of differences. 2. to develop specialized form, character, or function differing from that surrounding it or from the original. the compensation between executives who are employed by a local organization, regional organization or national organization. Survey results show that executives working in regional organizations were typically paid more than those who worked for local or national organizations. Local $217,000 Regional $230,000 National $226,000 For example, the median compensation for department/ division chair/ managers working for regionally operated organizations was $251,352, compared to $230.000 for those working for local organizations. It was $215,000 for those working for national organizations. Bonuses and Benefits Physician executives earning a salary plus bonus were typically compensated more than those executives earning only a straight salary. The respective medians are: Salary only $200,863 Salary plus bonus $240,000 As the percentage of bonus comprising the executives' overall compensation increased, so did the overall median compensation: 10% or less $220,000 11%-20% $247,000 21%-30% $275,000 31%-40% $300,000 41% or more $342,000 Bonuses When choosing bonus components, respondents could have indicated several components that made up their total bonus. On average, the top three bonus components chosen were: Organizational goals/objectives 49% Organization profit 46% Personal goals/objectives 37% Benefits When choosing benefits, respondents could have indicated several components that made up their total benefits. On average, the top three benefits indicated were: Health insurance 88% 401(k) retirement 80% CME, travel, and paid time-off 79% The average budget for CME, travel, and paid time-off for all physicians was $6,514. Associate/assistant medical directors received $4,105, medical directors rceived $5,509 and CEO/presidents received $9,698. Medical director 38% Chief medical officer 15% CEO/president 10% Department/division chair/manager 9% Vice president of medical affairs 7% Associate/assistant medical director 7% Consultant 3% Member/chair board of directors 2% Program director 2% Vice president of quality 2% Chief operations officer 2% Professor 2% Physician advisor 1% |
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