Heavy media coverage about the size of the compensation packages of some major health system CEOs has led to calls for “pay for performance” and greater transparency. Behind much of this uproar are two key drivers. The first is the growing interest of legislators like Senator Charles Grassley, Chair of the Senate Finance Committee and Governor Cuomo of New York state to convert hospitals from not-for-profit 501©(3) status to taxable entities. The second is the national demand for higher value in healthcare. Media focus on byzantine hospitals billing practices has led to spotlights on multi-million dollar pay packages for CEOs of not-for-profit hospitals, and the general public has responded with concerns
In a recent article in ACO News,
"Hospital pay now at risk for CEOs," Jean Chenoweth, noted the relatively new trend of hospital boards using performance metrics to determine CEO compensation. If this becomes a standard practice, this will align the performance metrics required of physicians with those of executive leadership. Through the 100 Top Hospitals® program, Truven Health is developing performance benchmarks that will be one of the tools available to hospital boards for determining CEO compensation packages. The Balanced Scorecard consists of 10 measures across four domains: quality, efficiency, finance and consumer assessment of care identifies top performing hospitals. The benchmarks include diverse quality and financial matrices to help manage complex health systems and hospitals.
For more information about the 100 Top Hospitals program, please visit
Senior Vice President, Performance Improvement and 100 Top Hospitals