2009 Physician Executive Compensation Survey

The seventh biennial survey of ACPE members identifies key trends and factors driving today's physician executive compensation and serves as an essential reference resource for physician executives and healthcare organizations developing leadership roles for physicians.

"There is a growing need for physicians who are effective leaders," explains Barry Silbaugh, Chief Executive Officer of the American College of Physician Executives. "In an era of reform, organizations recognize the essential role of physicians who complement their clinical training with business education and leadership development to help ensure a balance of priorities, including quality and financial performance."

Top Findings Include:

One-third of physician executives (33%) have a post-graduate business degree (MBA, MMM, MPH or MHA)

Physician executives earn on average 11% more with a Master of Business Administration (MBA), 8% more with a Master of Medical Management (MMM), and 10% more with a Master of Health Administration (MHA) compared with those without a post-graduate business degree.
The type of degree the physician executive holds makes an even more significant difference within a particular executive role. Comparing physician executives counterparts with and without a post-graduate business management degree, the following reported the largest differentials:
- Chief Executive Officers/Presidents earn 22% more with an MBA.
- Department Chair/Chiefs earn 25% more with an MMM.
- Medical Directors earn 18% more with an MHA.

"Healthcare organizations are now mandating advanced business degrees in conjunction with strong clinical expertise for their physicians in executive leadership positions," explains Lois Dister, Executive Vice President and Managing Director with Cejka Search's Executive Search Division. "At the senior leadership table, physician leaders with business expertise are valued for their unique combination of clinical and business training, which can drive better outcomes for patients and performance for the organization."

Financial Performance and Clinical Quality are Drivers for Executive Bonus Distribution

Executive bonus is based on achieving a mix of organizational (55%) and personal (45%) goals.
Two-thirds (62%) cite financial performance, including cost containment and organization profit, as a component of their bonus, which is a 60% increase in frequency from 2007 when only 39% mentioned this as a determinant of their executive bonus.
More than half (53%) cite clinical quality, including outcome measurements, safety and process, as a bonus component, a 67% increase in frequency as compared to 32% in 2007.
Forty-four (44%) cited satisfaction among patients, physicians and employees as a component of their bonus – more than double the 20% frequency reported in 2007.

"Clinical quality is the fastest growing bonus component. In an era influenced heavily by Institute of Medicine and national quality organizations, these overarching goals are synonymous with the rankings of top hospitals," says Deedra Hartung, Executive Vice President and Managing Director with Cejka Search's Executive Search Division. "But it is also evident, that responsibility for financial performance and stakeholder satisfaction also are determinants in compensation for many if not most physician executives throughout the organization."

"A number of factors can greatly influence compensation levels: the specific healthcare sector, the organization's size and scope, as well as the organizational context in which the leaders find themselves," explains Lori Schutte, President of Cejka Search. "Organizations seeking to establish and develop top-performing executive physician leadership should have clearly defined clinical and business objectives, an honest assessment of their organization's culture, and a system to ensure physician executive compensation is fair, equitable, and tied back to the results achieved. Those are the healthcare organizations that will attract and leverage the talents of the best physician executives."

Save the Date for Interactive Panel Discussion

Lois Dister, will facilitate an interactive panel presentation of key findings and recommendations from the 2009 Physician Executive Compensation Survey by Cejka Search and the American College of Physician Executives on November 16 at the American College of Physician Executives 2009 Fall Institute in Tucson, AZ. Participants will engage with a panel of physician executives who will discuss the survey findings as they pertain to their organization's objectives and strategic planning.

About the American College of Physician Executive

The American College of Physician Executives (ACPE), located in Tampa, Florida, is the leading national professional association representing physicians in management and boasts a membership of over 9,000 including some of the nation's top healthcare leaders. The American College of Physician Executives is the AMA-recognized specialty society representing physicians in healthcare leadership. For more than 26 years, physicians nationwide have chosen ACPE's innovative educational and career development programs to build the knowledge and skills they need to shape the future of health care.

About Cejka Search

Cejka Search is a nationally recognized healthcare executive and physician search organization providing services exclusively to the healthcare industry for more than twenty-five years. Partnering with our client organizations to identify and present only the best healthcare talent, Cejka Search completes assignments across all levels of the healthcare continuum and is a market leader in providing flexible, innovative healthcare search and recruitment services. Cejka Search is a Cross Country Healthcare, Inc. (Nasdaq: CCRN) company, a diversified leader in healthcare staffing services.