Becoming a hospital CEO will require a commitment of both time and money. After the years that you spend attaining a Master’s degree and the years that you spend gaining experience that will fulfill CEO requirements, you may be wondering if everything you have done will pay off in the form of fulfillment and also in the form of money. One of the biggest driving factors you need to keep in mind whenever you are pursuing a hospital official position is the salary. While achieving your goals is important in life, ultimately you want to be sure that you will be compensated enough to justify going through the stress. If you are wondering how much you will earn once you finally become a hospital CEO, read this guide to CEO earnings and get a basic understanding.
The Average Salary Versus Hospital CEO Salary Ranges
In many occupations, salaries reported throughout the industry are similar, but in the world of hospital management, salary ranges can be very large. As you are researching CEO earnings in the healthcare sector, you should start by learning how much salaries average out to be. Based on reports that were published by the Bureau of Labor Statistics, the highest ranking officials in the hospital setting earn an average annual salary of $195,460. These amounts have been averaged from 6250 different CEOs throughout the country.
While the average figure gives you a general idea of how much you will make once you become a prominent CEO, the ranges that have been reported nationwide are alarming. CEOs who have little experience or who work in rural areas with small populations will make salaries at the lower end of the scale, reportedly around $118,000 including bonuses. On the other end of the scale, are CEOs of hospitals that are located in urban areas that teach med students, and these CEOs earned a much higher average of $1.7 million per year.
What Factors Affect the Amount a Hospital CEO Makes?
Hospitals have compensation committees and the members of these committees are ultimately responsible for setting the CEO salary. Contrary to popular belief, the quality of hospital care and customer satisfaction are not considered by the board when voting on how much the CEO should earn. There are a variety of factors that are considered by the committee, and one of these factors is experience. In addition to experience, the board will vote on raises and bonuses if the hospital is growing, if new technologies are being deployed, and if new service lines are being added to the facility. A huge part of a CEO’s salary is based on performance, and some CEO’s can make commissions that are hundreds of thousands of dollars.
A CEO’s job is to improve the way that the hospital is run and to market services. As the number one official in the ranks, you can expect to work long hours. Working these long hours and taking on the stress does come with a high salary, but you need to be the right fit for the job. Map out a route to make your goal become a reality and head a hospital that pays well.