Compensation of Chief Executive Officers at Nonprofit US Hospitals

IMPORTANCE Hospital chief executive officers (CEOs) can shape the priorities and performance of their organizations. The degree to which their compensation is based on their hospitals’ quality performance is not well known. OBJECTIVE To characterize CEO compensation and examine its relation with quality metrics. DESIGN, SETTING, AND PARTICIPANTS Retrospective observational study. Participants included 1877 CEOs at 2681 private, nonprofit US hospitals. MAIN OUTCOMES AND MEASURES We used linear regression to identify hospital structural characteristics associated with CEO pay. We then determined the degree to which a hospital’s performance on financial metrics, technologic metrics, quality metrics, and community benefit in 2008 was associated with CEO pay in 2009. RESULTS The CEOs in our sample had a mean compensation of $595 781 (median, $404 938) in 2009. In multivariate analyses, CEO pay was associated with the number of hospital beds overseen ($550 for each additional bed; 95% CI, 429-671; P