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AMA Physician Benchmark Reports on Compensation Methods and on Prevalence of New Models of Care

Two 2014 Physician Practice Benchmark Survey reports have been released by the American Medical Association within the past few months. The first looks at compensation models used to pay physicians, and the second provides data on the prevalence of physician participation in accountable care organizations and medical homes and the use of alternative payment methods [capitation, pay-for-performance, bundled payments, or shared savings].

Here are some of the key findings from the reports:

  • For many physicians, compensation was a blend of different methods. Half of compensation for non-solo physicians came from salary, another third was productivity-based, 12% was based on practice financial performance, and 4% came from bonuses. The proportions varied when analyzed by type of practice and its ownership.
  • Fee-for-service is still the dominant payment method for physicians, although 59% of physicians said their practice received some revenue from an alternative payment method. An average 72% of practice revenue came from fee-for-service. Unsurprisingly, practices participating in a medical home or ACO received a larger proportion of their revenue from alternative payment methods.
  • In 2014, 24% of physicians worked in practices that were part of a medical home, and 29% reported working in a practice that was part of an ACO. Participation rates were higher in multi-specialty practices and lower in solo practices. Hospital-owned practices also had higher medical home and ACO participation rates.
  • In single specialty practices, participation in a medical home was lowest for surgery and its subspecialties and highest for family practice and pediatrics. However, ACO participation was highest for general surgery and family practice but low for pediatrics


Kane CK. Payment and delivery in 2014: the prevalence of new models reported by physicians. American Medical Association Policy Research Perspectives, Dec. 2015. http://www.ama-assn.org/ama/pub/advocacy/health-policy/policy-research.page – expand Medical Practice section to select report [free web site registration and login required to view/download]

Kane CK. How are physicians paid? A detailed look at the methods used to compensate physicians in different practice types and specialties. American Medical Association Policy Research Perspectives, Aug. 2015. http://www.ama-assn.org/ama/pub/advocacy/health-policy/policy-research.page – expand Medical Practice section to select report [free web site registration and login required to view/download]

Posted by AHA Resource Center (312) 422-2050, rc@aha.org

SALARY SURVEYS: Hospital OR managers average $115,986 in 2015

Hospital Operating Room Leaders

  • $115,986 (2015) average salary
  • $136,069 (2015) average total compensation*
  • 3.14 percent average raise

These data are from the 25th annual compensation survey conducted by OR Manager magazine.  This survey was conducted Spring 2015 and includes usable responses from 343 nurse leaders who work full time as a manager or director in a hospital OR setting.

Ambulatory Surgery Center Leaders

  • $102,051 (2015) average salary
  • $130,000 (2015) average total compensation*
  • 3 percent average raise

These data were also collected by OR Manager magazine.  Usable responses were received from 106 individuals who work full time in an ASC as manager or director.

*Note: Wages, bonuses, insurance, pension.

Source: Saver, C. (2015, Oct.). Stable benefits but lower salaries noted in annual survey; and, ASC survey respondents stepping up to meet challenges. OR Manager, 31(10), 1, 7-11; and 25-27, 29-32. http://www.ormanager.com/stable-benefits-lower-salaries-noted-annual-survey/ and http://www.ormanager.com/asc-survey-respondents-stepping-meet-challenges/  Posted by AHA Resource Center (312) 422-2050 rc@aha.org


SALARY SURVEYS: Hospital housekeeping managers earn $74,632 (2015 average, U.S.)

The magazine Health Facilities Management has published results from its 2015 Salary Survey.  Here are average salary data for hospital department managers based on primary area of responsibility:

  • $118,139  Construction/projects
  • $117,849  Support services
  • $ 98,950  Facilities management/operations/engineering
  • $ 98,839  Biomedical/clinical engineering
  • $ 81,863  Security
  • $ 78,952  Safety
  • $ 74,632  Environmental services/housekeeping
  • $ 74,548  Maintenance
  • $72,859  Infection prevention
  • $ 72,750  Laundry

Survey results were received from 1,772 readers of this magazine.  Data were also given for each of the above categories for average bonus payments.

Source: Burmahl, B. (2015, July). 2015 salary survey: consolidation presents new challenges as managers assume more responsibilities. Health Facilities Management, 28(7), 19-25.  Retrieved from www.hfmmagazine.com/  Posted by AHA Resource Center (312) 422-2050, rc@aha.org



2014 hospital compensation surveys: executives

This compensation survey provides median and average base compensation and total cash compensation for executives in hospitals and health systems.  This includes executives in the C-suite, as well as a few other positions.  The list of positions at health systems is more comprehensive.

Not-for-Profit Hospital Top Nursing Positions (average total cash compensation) 2014

  • $229,600 chief nursing officer (based on 196 responses)
  • $188,600 second-level nursing services executive (based on 31 responses)

The ultimate source of these data are Sullivan, Cotter and Associates.

Source:  Landen, R.  It’s getting tougher at the top: not-for-profit executive pay growth slows as performance metrics stiffen.  Modern Healthcare.  44(32):18-20, 22, 24-25, Aug. 11, 2014.  Click here for access to publisher’s website: www.modernhealthcare.com    Posted by AHA Resource Center (312) 422-2050, rc@aha.org

2014 Healthcare Supply Chain Management Salary Survey

According to an annual survey from the magazine Healthcare Purchasing News, the  overall average salary in healthcare supply chain management was of $87,365 in 2014,  a small dip from the 2013 average of $88,342. However, the salary is still a 25% increase over five years ago. The survey also reports average salaries for these supply chain positions:

  • Corporate/executive/senior VP, materials/supply chain management/support services
  • Administrator/CEO/COO
  • Director of materials management/materials manager
  • Contracts management
  • Value analysis coordinator
  • Contract/service line manager
  • MMIS/materials IT systems manager
  • Purchasing director/manager
  • OR materials/business manager
  • Assistant/other materials management
  • Purchasing agent
  • Senior buyer/buyer
  • Other

Compensation is also reported by years of experience, tenure at current facility, gender, education, type of facility, facility bed size, and geographic region. The direct reporting relationships and the type of professional certifications are indicated for survey respondents. The most common professional certification cited was a CMRP [certified materials & resources professional], and 41% of the supply chain professionals reported to the CFO.

Source: Barlow RD. 2014 SCM salary survey: Salary slip may be a reset button hit – mild dip may be no cause for alarm. Healthcare Purchasing News, Aug. 2014. http://www.hpnonline.com/inside/2014-08/1408-SCMSalarySurvey.pdf

Click here for 2013 survey post.

Posted by AHA Resource Center (312) 422-2003, rc@aha.org

2014 Physician Compensation, Benefits & Recruitment Incentives Report

The Association of Staff Physician Recruiters, represening in-house recruiters in hospitals, physician practices, health plans, or similar organizations, and the MDLinx.com web site collaborated on a physician survey earlier this year focused on learning more about compensation models and recruitment incentives offered by their employers.

The survey yielded benchmarking data related to each of these areas:

  • Incentives, including relocation assistance, signing bonuses, malpractice coverage assistance, requirment to stay in the position for a defined time period, and for residents/fellows, stipend incentives for their final year of training
  • Compensation methodology, covering compensation model and the percent tied to quality measures, supervision of advanced practice providers, payment for on-call coverage, bonus eligibility, bonus structure, and satisfaction with the compensation model
  • Benefits, such as coverage of professional fees, annual provision of CME activities, paid time off for CME, vacation, sick time, and holidays, and if domestic partner benefits are offered
  • Contract, encompassing restrictive or non-compete agreement details
  • Schedule, touching on schedule flexibility, what defines ‘full-time’, and time providedfor administrative activities

Source: 2014 physician compensation, benefits & recruitment incentives report. Association of Staff Physician Recruiters, 2014. https://c.ymcdn.com/sites/aspr.site-ym.com/resource/resmgr/Files/2014_ASPR_PhysComp_Report.pdf

Posted by AHA Resource Center (312) 422-2050, rc@aha.org


SALARY SURVEYS: How much do nurse managers earn?

Results of a compensation survey conducted by the American Organization of Nurse Executives (AONE) based on 2012 data are summarized in this article.  A total of over 4,500 individuals responded.  Most of the respondents (67 percent) worked in acute care hospitals.  Here are some of the findings:

  • Nurses with the title “director” or “manager” tend to earn $80,000 to $160,000
  • Nearly two-thirds of chief nursing officers (nonsystem) earn between $100,000 to $200,000
  • Nearly three-quarters of chief nursing officers (system) earn more than $200,000

Job satisfaction was also a focus of this survey.  About two-thirds of nurse managers reported being very satisfied with their work.

Source: Thrall, T.H.  American Organization of Nurse Executives nurse leader survey: compensation trends and satisfaction levels.  JONA. The Journal of Nursing Administration;44(5):250-253, May 2014.  Click here for the publisher’s website: http://journals.lww.com/jonajournal/Abstract/2014/05000/American_Organization_of_Nurse_Executives_Nurse.3.aspx  There is a free Executive Summary here: http://www.aone.org/membership/salarysurvey/salary_executivesummary.pdf  Posted by AHA Resource Center (312) 422-2050, rc@aha.org



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