One Room. Four physician executive leaders. Questions answered. Expertise and insight on physician leadership

Highlights of the Physician Executive Roundtable hosted by Cejka Executive Search and the American College of Physician Executives

Part 1 of 6:

Key Executive Leadership Trends in this Era of Healthcare Reform

Healthcare reform and the increasing complexity of healthcare will continue to drive the need for physicians who are effective leaders. Physician leaders serve an essential role, complementing their clinical training with business education and leadership development to help ensure a balance of priorities, including quality and financial performance.

The Cejka Search and ACPE Physician Executive Compensation Survey explores not only compensation trends, but opens the discussion about other key challenges physician leaders face.

Lois Dister, Executive Vice President and Managing Principal of Cejka Executive Search, convened a panel of four distinguished physician executives to explore the emerging challenges, opportunities, roles and incentives that are part of a physician leader's world today.

This six-part series will explore the key findings of the survey and the insights on topics of interest to physician leaders:

1.     Highlighting Key Trends

2.     Maintaining Clinical Practice

3.     Earning a Post-Graduate Business Management Degree

4.     Determining Bonus Compensation

5.     Finding New Roles for Physicians in the Future

6.     Identifying Candidates for Key Physician Leadership Roles

Highlights of the Survey

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 Physician Executive Compensation Survey conducted by the American College of Physician Executives (ACPE) and Cejka Executive Search.  "There is a growing need for physicians who are effective leaders," explains Barry Silbaugh, Chief Executive Officer of ACPE. "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%.

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.

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.

Up Next: "What are our Panelists' thoughts on physician leaders maintaining a clinical practice?"

What are your thoughts? Join our blog at http://healthcareexecutivecareers.blogspot.com/

Meet Our Panel

Dr. David A. DiLoreto, MBA, FACS

Executive Vice President and Chief Medical Officer, Resurrection Health Care

Currently challenged with the clinical service integration of nine independent acute care facilities, 12 nursing homes, and four 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 Operating 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.

Moderator:

Lois Dister

Executive Vice President, Managing Principal, Cejka Executive Search

Ms. Dister is in her thirteenth year with the firm. Her exemplary reputation as an executive search consultant is based on the wide range of healthcare clients she has served, and the positive outcomes of search assignments she has completed. Lois has worked in academics, hospitals and health systems, medical group practices, specialty healthcare companies, and managed care.