Corporate executive salaries in the long-term care space increased by 3.52% on average in 2024 compared to the previous year, a larger increase compared to hospitals and home health/hospice base pay, which increased 3.16% and 3.33%, respectively.

The average annual salary for a nursing home CEO with a multi-facility company was $465,750, while COOs saw an annual salary of $304,584 on average, according to data published by the Hospital & Healthcare Compensation Service (HHCS). Overall salary increases show a slightly moderated bump compared to data collected in 2023 at 3.69%, but still higher than in 2022 at 3.17%.

Information was collected from 95 participants nationwide between October 2023 and Sept. 30 2024 for the 41st annual study, with 43 respondents being long-term care companies.

Planned, or budgeted, executive salary increases between October 2024 and Sept. 30, 2025 for nursing homes are expected to be 3.34% on average. This year’s executive salary increase of 3.52% was higher than what was planned – HHCS reported a budgeted executive increase at 3.45%, based on data collection around this time last year.

Three groupings were made based on the operator’s revenue size: Category A revenue size is less than $50 million, Category B is revenue between $50 million and $199 million, while Category C represents a revenue size above or equal to $200 million.

There was a wide range of salaries, bonuses included, based on revenue size. CEOs heading companies with less than $50 million in annual revenue saw an average salary of $416,235, while CEOs of nursing home companies with annual revenue between $50 million and $199 million saw $585,324 in annual compensation.

CEOs helming long-term care operators with more than $200 million in annual revenue saw a $1.02 million salary on average, plus bonuses.

The number of nursing homes and total number of skilled nursing beds varied widely based on revenue category as well. Companies of revenue size below $50 million were represented by 14 facilities, or 1,268 beds; operators with revenue between $50 million and $199 million had a total of 40 nursing homes, or 3,710 beds.

The $200 million-plus revenue category represents a combined 466 nursing homes, or 41,948 beds.

Salary increases for corporate, divisional and regional employees were overwhelmingly based on performance-based merit at 77%, according to survey results, followed by cost of living at 31%, length of service at 24% and relation-to-profit at 8%.

When it comes to performance evaluations, 89% of nursing home operators as well as other care settings said evaluations were “goal-based,” followed by skill-based evaluations at 54%. About 38% of respondents chose revenue goals for performance evaluations, and 35% close patient satisfaction.