Transcript
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"The board of directors and executive teams of healthcare provider organizations are up against challenges that are unprecedented in their industry and in many others, and so we so much value our opportunities to sit down with them and learn about these challenges and some of the difficult decisions they're having to make. |
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What we've learned in these conversations is the fact that the difficulty associated with these challenges is really based on the idea that there's no precedent. The industry is going off in a direction that has not occurred before. And the other reason is there's no data. |
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They are trying to demonstrate high levels of achievement in three key areas. One is high level of clinical quality, the second one is high level of efficiency—financial and operational—and the third one is very, very high levels of patient satisfaction, high ratings of patient experience. |
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It really is the difficulty of these challenges that we see driving a lot of the changes going on in executive compensation and healthcare. A key change that we see, of course, is the growth in the prevalence of the use of long-term incentives, even in the not-for-profit part of healthcare. |
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The trick is to denominate long-term incentive opportunities with those measures and metrics, balance that with short-term incentives and base salary, and come up with an overall compensation model that fits the culture and the pay-for-performance positioning of the organization." |
