T.J. Sullivan, a partner in the Washington, D.C. office, was quoted in a recent Journal Sentinel article, titled, “Health Systems Turning to Clinical Quality to Determine Compensation.” 

The article discusses how the financial performance of health systems is becoming less important when determining the pay of top executives.  More weight is being given to areas such as clinical quality and safety, patient satisfaction and others.  However, the finances of health systems still remain a top priority, as many systems require that executives meet their financial goals before being eligible for bonuses for improving clinical quality.

Non-profit health systems remain tax-exempt, but just like any other large corporation they must compete for top executives.  The size of a paycheck is how corporations compete for the people they want to hire and keep.

T.J. noted that “the boards of nearly every health system rely on consultants to ensure they meet the legal standard for ‘reasonableness,’”  the goal being to ensure that compensation is in line with industry norms.

To read the full article click here.