I posted in the other thread about how this is involving other for profit healthcare stocks, but I see a trend that we need to correct before the wrong people are hurt.
We are talking about for-profit healthcare executives and owners.
The CEO of HCA made $21m in total compensation.
A physician makes on average $200k in the org.
Tenet Healthcare CEO made $18m.
A physician makes on average $232k.
Vs Non-profits:
Mayo Clinic CEO: $3.72m (notably also a Dr?)
Physician: $273k
Cleveland Clinic CEO: $4m (this was tough to find)
Physician: $235k
Now let’s look at revenue and profit (well, the revenue for the non-profits). HCA pulls in $60b in revenue, $4b in profit. Tenet HC: $17b in revenue, $400m in profit. Mayo Clinic: $16.3b revenue, Cleveland Clinic: $8.4b revenue.
The contrast is a bit alarming isn’t it? Physician salaries are fairly consistent across the board, but the executives of the for-profit entities make 4x-5x the compensation as the non-profits (not that the non-profit CEOs really need $4m/year in pay).
I posted in the other thread about how this is involving other for profit healthcare stocks, but I see a trend that we need to correct before the wrong people are hurt.
We are talking about for-profit healthcare executives and owners.
The CEO of HCA made $21m in total compensation. A physician makes on average $200k in the org.
Tenet Healthcare CEO made $18m. A physician makes on average $232k.
Vs Non-profits: Mayo Clinic CEO: $3.72m (notably also a Dr?) Physician: $273k
Cleveland Clinic CEO: $4m (this was tough to find) Physician: $235k
Now let’s look at revenue and profit (well, the revenue for the non-profits). HCA pulls in $60b in revenue, $4b in profit. Tenet HC: $17b in revenue, $400m in profit. Mayo Clinic: $16.3b revenue, Cleveland Clinic: $8.4b revenue.
The contrast is a bit alarming isn’t it? Physician salaries are fairly consistent across the board, but the executives of the for-profit entities make 4x-5x the compensation as the non-profits (not that the non-profit CEOs really need $4m/year in pay).
Tying healthcare to profits is the problem.