Executive compensation in healthcare is at a crossroad. As healthcare executive teams expand to include broader business and medical expertise in clinical integration, insurance risk and overall customer experience, their responsibilities resemble those of C-suites in other industries.
Compensation Committees may offer strategic benefit to their organizations by quickly assessing their overall approach and identifying winning processes from other industries that can help drive the major shifts occurring now in the business of healthcare.
Five current issues for healthcare Compensation Committees to address are:
1) Managing complex business strategies and the impact on compensation;
2) Identifying appropriate variable compensation measures and metrics;
3) Recruiting and retaining executive talent from other industries;
4) Using discretion when evaluating performance against plan; and
5) Determining Board pay for non-profit healthcare Directors.
This article explores effective approaches to addressing each of these major challenges as they relate to independent hospitals and healthcare systems.
