An analysis from Axios found CEOs of 70 of the largest healthcare organizations have seen their wages grow well above most Americans since the Affordable Care Act (ACA) was signed into law in 2010, but without incentives to control healthcare spending.
Over the time period examined by the analysis, CEO pay grew by 11 percent on average every year since 2010. Total earnings averaged $20 million, the median was $11 million and the vast majority of pay came in form of vested stock, which the analysis calculated as actual realized gains rather than the estimated fair value of the stock.
“A gigantic portion of what CEOs make comes in the form of vested stock, and those incentives drive their decision-making,” Axios reporter Bob Herman wrote. “The analysis shows that since the ACA was passed, health care executives routinely took measures to inflate stock prices — such as repurchasing shares or issuing dividends to shareholders—that led to higher take-home pay.”
The analysis didn’t include CEOs of not-for-profit hospitals and health systems, who are also making big bucks in the ACA era.
Read the full analysis at the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.