6 trends in medical group CEO compensation — up 7.1% in 2017

AMGA released the AMGA 2017 Medical Group Executive and Leadership Compensation Survey, showing the cash compensation for physician CEOs increased 7.1 percent over last year.

 

"At this time, value-based care is driving executive compensation incentives in a manner similar to physician compensation for many groups," said AMGA Consulting President Fred Horton.

Here are six trends:

1. Cash compensation for non-physician practice CEOs jumped 11 percent.
2. COOs reported cash compensation was up 7.2 percent.
3. Other C-suite positions reported an average 4.4 percent compensation increase.
4. The average earned bonus to base ration was:
• Physician CEO: 22.7 percent
• Non-physician CEO: 24.9 percent
• CFO: 19.6 percent
• COO: 21.9 percent

"Many resources have gone into payer strategy and care model design in recent years and now organizations are focused on orchestrating those investments to achieve the desired outcomes," said AMGA Consulting COO Wayne Hartley.

5. The director of care coordination reported more than 14 percent increase in total compensation last year on average.

6. The report also found an increasing percentage of executives have a supplemental executive retirement plan:
• Physician CEO: 62 percent
• Non-physician CEO: 50 percent
• CFO: 47 percent
• COO: 33 percent

"With the effort required to align resources for success under value-based care, it may be that more organizations are deciding that incentives to promote consistency in the leadership team are key to success," said Mr. Horton. "Alternatively, as SERPS tend to be more common in larger organizations, it may be that continued consolidation into larger systems is driving this benefit."

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