Innovative Pay Models Tie Healthcare Executive Bonuses to Patient Outcomes

Linking the bonuses of healthcare organization CEOs to patient quality, safety, and satisfaction might seem like a logical move. After all, a healthcare executive has many tools to drive patient performance metrics, from budget controls to service strategies. Today, 50% of the 20-plus largest publicly traded hospital and healthcare companies tell shareholders in proxies or other financial filings exactly how much patient quality and satisfaction goals affect executive bonuses, according to Modern Healthcare. “Proxies recently filed for upcoming annual shareholder meetings show HCA, HealthSouth Corp., Kindred Healthcare and others using patient quality and service metrics to determine from 15% to 30% of annual performance bonuses for senior executives.” This is a good prescription for a healthier healthcare system.

John Howell, Editorial Director

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