Even as operating pressures and staffing shortages persisted at nursing homes, long-term care corporate executives with multi-facility organizations were paid 3.69% more in 2023 compared to the previous year.
This represents an increase from the 3.17% salary jump reported in 2022. And, there’s a planned increase of 3.45% on average expected from 2023 to 2024 for executives in the sector.
That’s according to the latest edition of the Nursing Home Salary & Benefits Report Report from Hospital & Healthcare Compensation Service (HCS) released Wednesday.
The HCS study covers corporate compensation of top executives with oversight over multiple nursing homes, CCRCs, independent living, and assisted living/personal care communities, as well as larger revenue single site providers. The report contains data from 88 multi-facility companies.
Higher salaries and total compensation for executives was tied to larger organizations, with a big jump reported for organizations whose revenue was $100 million or higher compared to the two revenue categories below that revenue amount.
Companies with revenue of $40 million or less paid their CEOs on average $439,768 for total compensation. Companies with revenue between $40 million and below $100 million paid their CEOs $456,499 on average for total compensation, while companies with upwards of $100 million in revenue paid their CEOs $822,507 on average per year for total compensation.
As for salaries, the HCS report also found that the group with the lowest revenue paid CEOs $433,500 per year. Mid-tier companies based on revenue paid CEOs $482,619 per year, while companies with revenue upwards of $100 million paid their CEOs $653,163 annually.
About 83% of respondents said performance of the executive played a role in the salary increase decision, while around 39% said cost of living was a factor. Also, a little over 28% of the participants cited length of service and almost 7% said relation-to-profit were factors.
In determining bonuses, most respondents ranked operating margin and income and revenue growth as the top two criteria used, followed by quality metrics and employee turnover.
In terms of a long-term incentive plan for executives, almost 17% of companies had one in place, while 83% did not. Moreover, 100% of participants offered retirement plans.
Meanwhile, in other executive categories, companies with revenue of up to $40 million or less paid their chief human resources officers (CHROs) on average $169,898 for total compensation. Companies with revenue between $40 million and $99.9 million paid their CHROs $171,942 on average for total compensation, while companies with upwards of $100 million in revenue paid their CHROs $329,879 on average per year for total compensation.
The report draws on three studies that collected salary and compensation data for long-term care, hospital and health systems, along with home and hospice agencies. Data is reported nationally and includes information on pay policies and corporate benefits. Payment trends were consistent across all those settings.
