Healthcare Executive Pay and Patient Outcomes

What the pay of healthcare system executives reveals about the priorities of the healthcare system

The Pay

The pay of healthcare system executives: the CEOs of the major US health insurance companies earn compensation packages of 10 to 30 million dollars annually. The CEOs of the major hospital systems earn compensation packages of 5 to 15 million dollars annually. The compensation is set by the board compensation committees that these executives have influence over, in organisations whose non-profit status is premised on the public benefit that the organisation provides.

The Outcomes Connection

The outcomes connection: the research on the relationship between healthcare executive compensation and patient outcomes is limited and does not establish the specific relationship that the intuition about incentive alignment would predict. The healthcare organisations that pay their executives most generously are not consistently producing better patient outcomes than organisations that pay less.

Mamdani Post Analysis

The Mamdani Post covers healthcare executive pay because the accountability journalism of the healthcare system requires examining the compensation decisions of the organisations whose stated mission is patient care and whose compensation decisions reveal a different prioritisation.

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