Nonprofit Hospital CEO Compensation: Does Quality Matter?

ABSTRACT:

Background

Past research has documented that increases in profits and health system size, as well as increases in the reward generosity for improving these metrics play an important role in explaining increases in nonprofit hospital CEO pay between 2012 and 2019.

Objectives

To test whether hospital quality measures play a supplemental role in determining CEO pay.

Research design

We estimated linear regressions for 2012 and 2019 of the log of CEO wages on system or independent hospital characteristics, including quality. The regressions were used to construct a Oaxaca decomposition of factors associated with CEO compensation.

Subjects

One thousand forty-seven nonprofit health systems and independent hospitals in 2012 and 812 in 2019.

Measures

CEO compensa

SUBMITTER: Jenkins D 

PROVIDER: S-EPMC12422613 | biostudies-literature | 2025 Oct

REPOSITORIES: biostudies-literature