Has your paycheck gone stale?

Have you felt a pinch on your wallet lately? You are probably not alone, considering that in 2011, physician executive compensation experienced the lowest growth rate for the first time in ten years, showing us that executive compensation in health care is not immune to pressures felt across all sectors of the economy.

Consider these stats on physician executive compensation, taken from a recent survey by Cejka Executive Search and the American College of Physician Executives:

· The two-year rate of increase in total compensation – at 5.9% – is well below the 11.6% increase reported in 2009 and the lowest since the 2001 survey reported 5.0% increase

· CEOs reported their lowest two-year increase since 2001:
4.2% two-year increase compared with a 13.0% two-year increase in 2009

· CMOs were impacted to a slightly lesser degree, reporting:
5.7% two-year increase in 2011 compared with an 11.2% two-year increase in 2009

· Medical Directors fared better than average, reporting:
7.6% two-year increase, an improvement compared with 4.9% two-year increase in 2009

Business education also plays a key role in physician executive compensation. All survey respondents showed a positive difference in the median compensation for those with an MBA.

Today’s health care organizations are working toward accountability, streamlining care and
aligning stakeholder interests. Physician executives are essential to the leadership teams to guide these changes. Similarly, post-graduate business training is becoming essential for physicians transitioning from the clinic to a corner office.

As a physician executive, do you think your salary measures up to the demands? Or as a non-MD
executive, do you believe physician execs are compensated fairly? Share your thoughts in the comments section.

For more information about physician executive careers and to download the
entire survey, visit www.cejkaexecutivesearch.com/compsurvey2011.

Lois Dister, Executive Vice President and Managing Director, Cejka Search to moderate panel of top healthcare executives

Attending the ACPE Fall Institute in Tuscon, Arizona, November 14-19, 2009? Mark your calendars for this too-important-to-miss bonus session on Monday, Nov 16 at noon.

Lois Dister, Executive Vice President and Managing Director, Cejka Search, will moderate an informative panel discussion with four of healthcare’s most highly-respected and experienced physician leaders.

Dr. David A. DiLoreto, MBA, FACS, Executive Vice President and Chief Medical Officer, Resurrection Health Care
Currently challenged with the clinical service integration of 9 independent acute care facilities, 12 nursing homes, and 4 assisted living centers, Dr. DiLoreto manages employed and affiliated physician networks, directs quality improvement and care management programs, and oversees resident and nurse training. He also provides clinical consulting on health information exchanges involving the Department of Defense and community health care providers.

Dr. Howard R. Grant, JD, Executive Vice President and Chief Medical Officer, Geisinger Health System
Dr. Grant is responsible for guiding the activities of 1,200 provider physicians and advanced practitioners in 60 locations and the three Geisinger hospital campuses, which include compensation, quality and performance improvement, credentialing, and new program development. He is also involved directly in clinical operations, capital planning and other issues for the Clinic and the Health System.

Dr. Robert W. Pryor, MBA, Chief Operations Officer and Chief Medical Officer, Scott & White
Dr. Pryor has been CMO of Scott & White since 2005 and COO since August 2007. As a member of the senior leadership team with strategic growth responsibilities, Dr. Pryor has system-level responsibility for all clinic operations and medical management at Scott & White, headquartered in central Texas. This physician-led, $1 billion organization employs 900+ physicians in all specialties.

Dr. Christopher Stroud, MBA, Vice President and Chief Medical Officer, Aurora Medical Group
Dr. Stroud has operational responsibility for the 950-member Aurora Medical Group. In addition to more than 10 years in clinical practice as an obstetrician/gynecologist, Dr. Stroud has significant expertise is in the areas of physician recruitment and employment, physician compensation, medical group acquisition, and clinical program development and implementation.

If you are attending the ACPE Fall Institute in Tuscon, Arizona, we hope you will plan to join Lois and this distinguished panel on November 16 at noon in Canyon 1. Learn from them as they answer questions and share their expertise on today’s most important compensation issues as revealed from your responses to the 2009 Physician Executive Compensation Survey by Cejka Search and the ACPE.

Want more information? Read the article discussing key findings from the 2009 Physician Executive Compensation Survey by Cejka Search and the ACPE in the November/December 2009 issue of the Physician Executive Journal. Or, visit www.cejkasearch.com/acpe for survey highlights and to purchase your copy.

Hot off the press!

Lois Dister, Executive Vice President and Managing Director, was quoted today in the article "Why are More Hospital Executives Pursuing M-degrees?' which was published on HealthLeadersMedia.com.

The article discusses one of the key findings of the 2009 Physician Executive Compensation Survey by Cejka Search and the ACPE - namely that one-third of physician executives surveyed have a post-graduate business degree including an MBA, MMM, MPH, or MHA.

Read it here: http://www.healthleadersmedia.com/content/240972/page/1/topic/WS_HLM2_LED/Why-are-More-Hospital-Executives-Pursuing-Mdegrees.html

2009 Physician Executive Compensation Survey is now available!

Post-Graduate Business Degree Drives Pay for Physician Executives

Cejka Search and the American College of Physician Executives Release Findings from 2009 Physician Executive Compensation Survey

ST. LOUIS (September 29, 2009) – Signaling the increased value placed on top performing physician executive leadership, the attainment of a post-graduate business degree can garner a 10% greater salary, and be a significant door-opener for increased professional opportunity for physicians in administrative roles.

This and other findings are reported in the 2009 Physician Executive Compensation Survey conducted by the American College of Physician Executives (ACPE) and Cejka Search.

"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 a 10% greater salary with the attainment of the following post-graduate business degrees: 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.


• Overall physician executive compensation averaged $288,000 in 2008, a 2-year gain of 12% and a 10-year increase of 44%. Compensation increased for all categories reported in the survey. Physician executives in these roles reported double-digit gains over the past 2-years:
  
  
  
  • Chief Executive Officer/President earned $383,500, up 13%.
  
  
  • Chief Medical Officers earned $324,750, up 11%.
  
  
  • Department Chair/Division earned $330,000, up 10%.

Post-graduate business degrees are worth the time and expense

"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 results in 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 correlate to the results achieved. Those are the healthcare organizations that will attract and leverage the talents of the best physician executives."

Visit http://www.cejkasearch.com/acpe to purchase a copy of the 2009 Physician Executive Compensation Survey. Costs are $150 for ACPE members and $350 for non-members. Individual sections (electronic only) with Executive Summary included, may be purchased for $75 for ACPE members and $150 for non-members.

Methodology

The Cejka Search and ACPE 2009 Physician Executive Compensation Survey was distributed electronically in May 2009 to 9,289 ACPE members. A total of 2,131 questionnaires were used in the survey tabulation, representing a twenty-three percent (23%) response.

About the American College of Physician Executives

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.

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.

For more information, contact Nancy Burns, Cejka Search, at nburns@cejkasearch.com or 314-726-1603.

Follow us on Twitter