2013 PHYSICIAN EXECUTIVE COMPENSATION SURVEY C-Level Highlights

Transcription

1 0 PHYSICIAN EXECUTIVE COMPENSATION SURVEY C-Level Highlights The 0 Physician Executive Compensation Survey published by the American College of Physician Executives (ACPE) and Cejka Executive Search explores compensation trends for the expanding range of administrative roles in which physician leaders perform. As the demand for physician leaders continues to grow each year through every segment of the health care industry, the survey is a resource to help physician executives navigate the leadership landscape, whether as a seasoned physician executive or a new clinical leader, and for the organizations developing physician leaders.

2 SNAPSHOT OF C-LEVEL EXECUTIVE TRENDS Of the entire survey sample of, respondents, % categorized themselves as C-Level executives, which also includes the title of President. Within the C-Level group, two-thirds are Chief Medical Officers. With the advent of health care reform and the expanded roles for physician executives, new titles have emerged as captured in the category of C-Suite, Other. This category includes individuals such as Chief Operations Officer (), Chief Integration/Implementation Officer (), Chief Administration Officer () or Chief Strategy/Innovation/Transformation Officer (). All Respondents C-Level Respondents % % % % % % % % % % C-Level Senior Level Clinical Academic Consultant and Other Chief Executive Officer / President Chief Medical Officer Chief Information Officer / Chief Medical Information Officer Chief Quality / Patient Safety Officer C-Suite, Other cejkaexecutivesearch.com --

3 TOTAL COMPENSATION TRENDS According to the 0 Physician Executive Compensation Survey results, physician executive median total compensation was $,000 for all physicians, representing a two-year increase of % from $0,000 reported in the 0 survey. Within the C-Level category, two titles exceeded 0%: Chief Quality/Patient Safety Officers (%) and other C-Suite titles (%). Small sample sizes in these two categories may contribute to the variance, but it may also reflect the expanding importance of accountability for outcomes and emphasis on health care delivery transformation necessitated by health care reform. C-Level Compensation % Change Chief Executive Officer / President $, $0,000 % Chief Medical Officer $, $,000 % Chief Information Officer / Chief Medical Information Officer $,00 $,000 % Chief Quality / Patient Safety Officer 0 0 C-Suite, Other $0,00 $,000 $, $,000 % % cejkaexecutivesearch.com --

4 ADMINISTRATIVE, CLINICAL AND RESEARCH DUTIES All physician executives allocate, on average, % of their time to administrative responsibilities, with % spent on clinical duties and % on research. Within the C-Level titles, the administrative allocation is much higher, with Chief Medical Officers spending the greatest percentage (%) of their time on administrative duties. Average Amount of Time Dedicated to Specific Duty Type Chief Executive Officer / President Chief Medical Officer % 0% % % % % %% Chief Information Officer / Chief Medical Information Officer Chief Quality / Patient Safety Officer C-Suite, Other % % % % % % % % % % % % 0% 0% 0% 0% 0% 00% Administrative Clinical Research Other cejkaexecutivesearch.com --

5 ADMINISTRATIVE COMPENSATION FOR C-LEVEL EXECUTIVES Median compensation resulting from administrative duties for all physician executives ranges from $, for those spending % or less of their time in administration to $0,000 for those who allocated 00% of their time to administrative duties. Among C-Level executives spending 00% of their time on administrative duties, the highest median compensation ($,000) was reported by those in the category of C-Suite, Other. Median Compensation for C-Level Executives Spending 00% of Time on Administrative Duties Chief Executive Officer / President Chief Medical Officer $,00 $,00 Chief Information Officer / Chief Medical Information Officer Chief Quality / Patient Safety Officer $,000 C-Suite, Other $,000 $,000 cejkaexecutivesearch.com --

6 POST-GRADUATE MANAGEMENT DEGREES Key findings in the 0 survey include the prevalence of physician executives holding post-graduate management degrees and the differences in the earnings they report. For all respondents, there is a 0% difference in median compensation between those holding a Master of Business Administration (MBA) and those with no post-graduate management degree. Difference in Median Compensation Among All Physician Executives Master of Business Administration Master of Medical Management $,000 $0,000 Master of Public Health Master of Health Administration No Post-Graduate Management Degree $00,000 $,000 $,000 cejkaexecutivesearch.com --

7 POST-GRADUATE MANAGEMENT DEGREES Management training degrees become more significant at the C-Level, with the MBA representing the most prevalent postgraduate business degree among C-Level executives. For these respondents, there is a % to % difference in median compensation between those holding an MBA and those with no post-graduate management degree. Prevalence and Median Compensation for C-Level Executives Holding an MBA Chief Executive Officer / President $0,000 Chief Medical Officer $0,000 0% % % % % % % % % % $,000 $,000 Chief Information Officer / Chief Medical Information Officer $,000 % % % % % $,0 Chief Quality / Patient Safety Officer $,00 C-Suite, Other* % % % 0% $,00 % % % % 0% 0% 0% 0% 0% 00% No Post-Graduate Management Degree Master of Public Health Master of Health Administration Master of Medical Management Master of Business Administration *Sample too small to report median compensation cejkaexecutivesearch.com --

8 COMPENSATION GROWTH WITH EXPERIENCE There was a discernible shift this year in a long-term pattern. From 00 through 0, there was little or no growth in compensation after an executive has spent more than years in administration. For the first time since the 00 report, the rate of increase in median compensation did not drop as significantly between those with 0- years and those with or more years. In an increasingly complex industry, the value of experience and need to encourage retention among experienced executives is growing. This finding could reflect an emerging opportunity for a physician executive to progress in earning power longer into his or her career. Rates of Increase in Compensation Based on Years in Administration % % % % % % % % % % % % Increase after years Increase after years Increase after 0 years Increase after years % % % % % % % % % % 0% 0% 0% cejkaexecutivesearch.com --

9 PROGRESS TOWARD ACCOUNTABLE CARE The Affordable Care Act challenges health care organization to develop more accountable, quality-driven delivery systems, driving the formation of Accountable Care Organizations (ACOs). ACOs are intended to manage the health of a defined population and to be reimbursed based on measurable improvements in quality and patient satisfaction, plus reductions in cost. As health care reform implementation has moved forward since 0, the percentage of physician executives involved with an ACO has grown from % to %. Organizations selecting other mentioned that they are in an HMO, have formed a clinically integrated network or are consultants to organizations forming ACOs. Accountable Care Implementation 0 0 % % % % % % % % % 0% 0% 0% 0% 0% 00% Currently are an ACO/Participating in an ACO Planning to create or participate in an ACO Evaluating participation in an ACO Not planning to participate in an ACO Other* *Other was a new choice in 0 cejkaexecutivesearch.com --

10 TALENT. TEAMS. TRANSFORMATION. Cejka Executive Search Senior Consultants are professionals with diverse backgrounds and experiences in health care executive recruitment. Our skilled and experienced senior team includes former executives of health care organizations, and each member provides an exclusive and highly personalized level of service and advice. Together, they have the collaborative expertise to draw candidates from all sectors of the health care industry, and they consistently receive excellent ratings for their responsiveness, knowledge base and expertise in candidate identification and leadership development. Senior Executive Search Consultants Deedra Hartung Senior Executive Vice President, Managing Director Ben H. Brouhard, MD Executive Vice President, Managing Principal Paul Esselman Executive Vice President, Managing Principal Lois Dister Executive Vice President, Managing Principal Michael Dunford Executive Vice President, Managing Principal cejkaexecutivesearch.com -- Accountable Leadership Solutions