Pay Gap Between Nonprofit Hospital CEOs And Employees Grew, 2009-23

Area of Science:

• Health economics
• Healthcare management
• Sociology of health

Background:

• Nonprofit hospital workers are a substantial part of the US healthcare labor force.
• Prior studies show wage disparities within nonprofit hospitals, influenced by hospital attributes.
• The COVID-19 pandemic's impact on these wage trends requires investigation.

Purpose of the Study:

• To analyze wage trends and inequality within US nonprofit hospitals from 2009 to 2023.
• To determine if wage inequalities widened over time, especially during the COVID-19 pandemic.
• To assess variations in wage inequality based on specific hospital characteristics.

Main Methods:

• Utilized data from Internal Revenue Service Form 990 filings.
• Employed Medicare cost reports for the analysis period.
• Examined trends in wages and wage inequality, stratified by hospital characteristics.

Main Results:

• Observed persistent and increasing wage inequality within nonprofit hospitals across most years studied.
• Noted exceptions to widening inequality during certain pandemic years.
• Identified differences in wage inequality patterns based on hospital characteristics.

Conclusions:

• Wage inequality within nonprofit hospitals is a persistent issue, potentially mirroring and amplifying local economic disparities.
• The findings raise questions about the social benefit provided by nonprofit hospitals in light of internal wage structures.
• Further research is needed to understand the nuances of wage trends during and after the pandemic.