Becker's Hospital Review

14 Sign up for the COMPLIMENTARY Becker's Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 41. The average debt-to-capitalization ratio for a nonprofit hospital in 2011 was 40.4 percent, according to Moody's Investors Service. Due to the recession's impacts on investment income and volume, many hospitals have reduced capital spending. For financially strapped organizations, access to outside funds for capital outlay can be challenging. As a result, the hospitals are unable to fund large expenses such as physician employment, electronic health record systems and other capabilities required for success in a valuebased, coordinated delivery system. 42. Most hospitals are moving toward implementing EHR systems and some have already fully implemented them. According to a 2012 KPMG survey, 50 percent of hospitals surveyed reported they were more than half-way to full EHR implementation. 43. Hospitals that successfully implement EHRs and are able to demonstrate "meaningful use" of those records — according to CMS' standards — will receive incentive payments. According to CMS, hospitals could earn up to $2 million by successfully attesting meaningful use. The funding for these incentive payments was allocated by Congress in the American Recovery and Reinvestment Act of 2009. 44. Not surprisingly, 95 percent of U.S. hospitals participating in a survey by the AHA reported they plan to pursue meaningful use certification under the Medicare & Medicaid Electronic Health Records Incentive Program.16 Here is a snapshot of CIO compensation in 2012, according to Mercer's 2012 Integrated health Networks Compensation Survey: 25th percentile 50th percentile 75th percentile CIO – Market base salary $239,500 $296,100 $362,400 CIO – Market total cash compensation $250,700 $324,400 $415,400 Title 49. The number of hospitals in each state is influenced by population, of course, but also by other factors. State certificate-of-need laws are one of the biggest influencers of hospital development in a state. CON laws require that a state-governed board review and approve the development of any new healthcare facilities in the state. Generally, approval requires proof of need — that is, a current lack of access to healthcare services or a future one, due to projected population growth. 50. The top five states with the most hospitals, according to Kaiser Health Facts,17 are: • exas — 426 T 45. The annual compensation of hospital and health system CEOs can often climb into the millions, when bonus and non-salary payments are included. • alifornia — 343 C Here is a snapshot of hospital president/CEO pay in 2012, according to Mercer's 2012 Integrated Health Networks Compensation Survey: • ennsylvania — 196 P 46. For standalone hospital president and CEOs, the pay is reduced to reflect the fewer number of facilities overseen. 25th percentile 50th percentile 75th percentile System president/CEO – Market base salary $787,300 $917,500 $1,028,100 System president/CEO – Market total cash Compensation $912,300 $1,131,600 $1,405,700 Title 47. Health system CFO pay in 2012, also according to Mercer's 2012 Integrated Health Networks Compensation Survey, is detailed below: 25th percentile 50th percentile 75th percentile Stand-alone hospital president/ CEO – Market base salary $480,000 $613,500 $715,800 Stand-alone hospital – Market total cash compensation $518,500 $620,000 $872,400 Title 48. Hospital and health system CIO compensation was slighter higher than CFO pay. 25th percentile 50th percentile 75th percentile CFO – Market base salary $160,600 $204,900 $306,400 CFO – Market total cash compensation $171,800 $227,700 $335,000 Title • lorida — 210 F • llinois — 189 n I Footnotes: 1 American Hospital Association. "AHA Hospital Statistics, 2013 Edition." 2 Rural Health Research Centers at the Universities of Minnesota, North Carolina-Chapel Hill, and Southern Maine. "CAH List." Available online at http://www.flexmonitoring. org/cahlistRA.cgi 3 PWC. "Academic Medical Centers." Available online at http://www.pwc.com/us/en/ health-industries/providers/services-solutions/academic-medical-centers.jhtml 4 America's Essential Hospitals. "About Our Members." Available online at http://www. naph.org/Main-Menu-Category/About-NAPH/About-Our-Members/what-is-a-safetynet-hospital.aspx 5 Irving Levin Associates. "Health Care Services Acquisition Report, 2012." 6 Figures are based on CMS cost report data analyzed by American Hospital Directory.  Note: The hospital bed counts reported here include all medical/surgical and special care beds as reported to CMS by the hospitals in their most recent cost reports and, in some cases, may include bed counts from other facilities that share a provider number with the main hospital. 7 Centers for Disease Control and Prevention. Table 116. "Hospitals, beds, and occupancy rates, by type of ownership and size of hospital: United States, selected years 1975–2009." Available online at http://www.cdc.gov/nchs/data/hus/2011/116.pdf 8 Avalere Health. Analysis of American Hospital Association Annual Survey data, 2011, for community hospitals. U.S. Census Bureau: National and State Population Estimates, July 1, 2011. 9 National Hospital Discharge Survey: 2010 table, Number and rate of hospital discharges. 10 Kaiser State Health Facts, 2012. 11American Hospital Association (May, 24, 2010). "The State of America's Hospitals: Results of AHA Survey of Hospital Leaders, March/April, 2010." 12 Source: Moody's Investors Service, "U.S. Not-for-Profit Hospital Medians Show Operating Stability Despite Flat Inpatient Volumes and Shift to Government Payers," August 2012. 13 Centers for Disease Control and Prevention. "National Hospital Discharge Survey." Figures reflect payer mixes from 2009, the latest year available. 14 PWC Health Research Institute. "Health Reform: Prospering in a Post-reform World." 15 Centers for Disease Control and Prevention. "Estimating Health Care-Associated Infections and Deaths in U.S. Hospitals, 2002" Available online at http://www.cdc.gov/ HAI/pdfs/hai/infections_deaths.pdf. 16 American Hospital Association. "AHA Survey on Hospitals, Ability to Meet Meaningful Use Requirements of the Medicare and Medicaid Electronic Health Records Incentive Programs, February 7, 2011." 17 The Henry J. Kaiser Family Foundation. State Health Facts. Available online at http:// kff.org/other/state-indicator/total-hospitals.

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