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Survey data effective January 1, 2019 2019 Medical Group Executive Compensation Survey Report © 2019 SullivanCotter, Inc. All rights reserved. 200 W. Madison Street, Suite 2450 Chicago, IL 60606-3416

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Survey data effective January 1, 2019

2019Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.200 W. Madison Street, Suite 2450Chicago, IL 60606-3416

2019

MEDICAL GROUP

EXECUTIVE

COMPENSATION

SURVEY REPORT

Survey data effective January 1, 2019

LICENSE AGREEMENT

LICENSE AGREEMENT

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Accessing or downloading the Survey Report files or opening the packaging, or

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iii

LICENSE AGREEMENT

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iv

LICENSE AGREEMENT

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v

LICENSE AGREEMENT

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vi

TABLE OF CONTENTS

TABLE OF CONTENTS

Section

I Introduction ……………………………………………………………………………………………………… 2

II Characteristics of Survey Participants ……………………………………………………………………………………………………… 5

Organization Classification ……………………………………………………………………………………………………… 5

Size and Scope ……………………………………………………………………………………………………… 5

Regional Distribution ……………………………………………………………………………………………………… 5

III Base Salary and Total Cash Compensation ……………………………………………………………………………………………………… 7

IV Total Direct Compensation ……………………………………………………………………………………………………… 12

V Regressions ……………………………………………………………………………………………………… 17

Appendix

A Survey Participants ……………………………………………………………………………………………………… A-2

B Job List and Summaries ……………………………………………………………………………………………………… A-10

C Terms and Definitions ……………………………………………………………………………………………………… A-15

D Using Regression Equations ……………………………………………………………………………………………………… A-19

E About SullivanCotter ……………………………………………………………………………………………………… A-23

viii

SECTION I:

INTRODUCTION

INTRODUCTION

SullivanCotter, Inc. (SullivanCotter) is pleased to present the 2019 Medical

Group Executive Compensation Survey Report. Survey participants submitted

data from January 2019 to April 2019. Data were reported by 236 medical

groups across the United States. Compensation data reflect 1,355 incumbents.

The survey participants are listed in appendix A.

SullivanCotter ensures that all organization-specific data remain strictly confidential. While individual organization

names appear in the survey participant list, no correlation to an organization's data is provided.

The data are effective as of January 1, 2019.

This report is organized into five sections:

Section I presents general information regarding this survey report.

Section II presents general survey participant characteristics.

Section III presents national base salary and total cash compensation (TCC) for all medical group executive

positions by physician full-time equivalents (FTEs).

Section IV presents national total direct compensation (TDC) for all medical group executive positions by

physician FTEs.

Section V presents regression equations and trend line graphs for all medical group executive positions by

physician FTEs.

The supplemental Excel file Medical Group Executive Compensation Survey Report Data Table Results

(included as part of the survey report) is available via online download from the SullivanCotter Client Portal. For

more information on how to access the file, contact the Center for Information, Analytics and Insights by email at

[email protected].

The following guidelines are used in this report:

● Data that are insufficient to include in the report are noted in tables as isd. Conditions for insufficient data

include the following:

– When fewer than five organizations provided data.

– When one organization represented more than 25% of the sample.

– In section V, trend line graphs are reported for medical group executive positions. For some of these

positions, the data collected were insufficient to perform this type of statistical analysis due to a small

number of responses or a poor correlation between compensation levels and providers.

● Participant counts (n) listed are based on the number of organizations that responded to each corresponding

question unless otherwise noted.

P 2 SECTION I

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

INTRODUCTION

There are five regional designations included in this report: North Central, Northeast, South Central, Southeast

and West.

TABLE 1.1 – Regional Designations Included in This Report

South Central Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico,

Oklahoma and Texas

Southeast Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,

South Carolina, Tennessee, Virginia and West Virginia

West Alaska, Arizona, California, Hawaii, Nevada, Oregon, Utah and

Washington

Northeast

Connecticut, Delaware, District of Columbia, Maine, Maryland,

Massachusetts, New Hampshire, New Jersey, New York,

Pennsylvania, Rhode Island and Vermont

Regional Designations Included in This Report

Region States Included

North Central

Idaho, Illinois, Indiana, Iowa, Michigan, Minnesota, Montana,

Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and

Wyoming

P 3 SECTION I

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SECTION II:

CHARACTERISTICS

OF SURVEY

PARTICIPANTS

CHARACTERISTICS OF SURVEY PARTICIPANTS

ORGANIZATION CLASSIFICATION

TABLE 2.1 – Medical Group Type

SIZE AND SCOPE

TABLE 2.2 – Medical Group Physician FTEs

TABLE 2.3 – Medical Group Net Revenue

REGIONAL DISTRIBUTION

TABLE 2.4 – Medical Group Distribution

Northeast

n = 236

Southeast

South Central

West

All Medical Groups

Region Percentage

North Central

Medical Group Distribution

Less Than 200 Providers 65

200 to 600 Providers 75

Greater Than 600 Providers 46

(1)Net revenue is displayed in millions.

188

200 to 600 Physician FTEs 86

Greater Than 600 Physician FTEs 63

Medical Group Net Revenue(1)

Category n Mean Median

All Medical Groups 234

Less Than 200 Physician FTEs 85

n = 236

Medical Group Physician FTEs

Category n Mean Median

Independent or Affiliated 4%

Medical Group Type

Type Percentage

Owned 96%

P 5 SECTION II

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SECTION III:

BASE SALARY AND

TOTAL CASH

COMPENSATION

BASE SALARY AND TOTAL CASH COMPENSATION

TABLE 3.1 – All Medical Groups

25th %ile Mean Median 75th %ile Eligible Receiving Mean Median 25th %ile Mean Median 75th %ile

7220 Medical Group Chief Executive Officer/Executive Director (MD), All 94 104

7220Medical Group Chief Executive Officer/Executive Director (MD),

Independent or Affiliated3 3 isd isd isd isd isd isd isd isd isd isd isd isd

7220 Medical Group Chief Executive Officer/Executive Director (MD), Owned 91 101

7221 Medical Group Chief Executive Officer/Executive Director (Non-MD), All 63 65

7221Medical Group Chief Executive Officer/Executive Director (Non-MD),

Independent or Affiliated4 4 isd isd isd isd isd isd isd isd isd isd isd isd

7221Medical Group Chief Executive Officer/Executive Director (Non-MD),

Owned59 61

7222 Medical Group Chief Operating Officer, All 99 107

7222 Medical Group Chief Operating Officer, Independent or Affiliated 3 3 isd isd isd isd isd isd isd isd isd isd isd isd

7222 Medical Group Chief Operating Officer, Owned 96 104

7223 Medical Group Chief Financial Officer, All 75 76

7223 Medical Group Chief Financial Officer, Independent or Affiliated 6 6 isd isd

7223 Medical Group Chief Financial Officer, Owned 69 70

7224 Medical Group Chief Medical Officer, All 62 82

7224 Medical Group Chief Medical Officer, Independent or Affiliated 7 8

7224 Medical Group Chief Medical Officer, Owned 55 74

7225 Medical Group Chief Administrative Officer 12 12

7226 Medical Group Top Quality Position 22 23

7227 Medical Group Chief Nursing Officer/Top Patient Care Executive 12 12

7228 Medical Group Population Health Executive 10 10

7268 Medical Group Top Operations Executive 40 77

7269 Medical Group Top Information Services Position 14 16

7274 Medical Group Top Human Resources Position 25 29

7279 Medical Group Top Facilities Position 8 8 isd isd

7406 Medical Group Controller 39 45

7558 Medical Group Head of Operations 46 182

7900 Practice Administrator 33 507

All Medical Groups

Code Jobn

Orgs

n

Incumbents

Base SalarySTI

TCCPercentage Amount Paid

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved. P 7 SECTION III

SECTION IV:

TOTAL DIRECT

COMPENSATION

TOTAL DIRECT COMPENSATION

TABLE 4.1 – All Medical Groups

25th %ile Mean Median 75th %ile Eligible Receiving Mean Median 25th %ile Mean Median 75th %ile

7220 Medical Group Chief Executive Officer/Executive Director (MD), All 94 104

7220Medical Group Chief Executive Officer/Executive Director (MD),

Independent or Affiliated3 3 isd isd isd isd isd isd isd isd isd isd isd isd

7220 Medical Group Chief Executive Officer/Executive Director (MD), Owned 91 101

7221 Medical Group Chief Executive Officer/Executive Director (Non-MD), All 63 65

7221Medical Group Chief Executive Officer/Executive Director (Non-MD),

Independent or Affiliated4 4 isd isd isd isd isd isd isd isd isd isd isd isd

7221Medical Group Chief Executive Officer/Executive Director (Non-MD),

Owned59 61

7222 Medical Group Chief Operating Officer, All 99 107

7222 Medical Group Chief Operating Officer, Independent or Affiliated 3 3 isd isd isd isd isd isd isd isd isd isd isd isd

7222 Medical Group Chief Operating Officer, Owned 96 104

7223 Medical Group Chief Financial Officer, All 75 76 isd isd

7223 Medical Group Chief Financial Officer, Independent or Affiliated 6 6 isd isd

7223 Medical Group Chief Financial Officer, Owned 69 70 isd isd

7224 Medical Group Chief Medical Officer, All 62 82

7224 Medical Group Chief Medical Officer, Independent or Affiliated 7 8 isd isd

7224 Medical Group Chief Medical Officer, Owned 55 74

7225 Medical Group Chief Administrative Officer 12 12 isd isd

7226 Medical Group Top Quality Position 22 23 isd isd

7227 Medical Group Chief Nursing Officer/Top Patient Care Executive 12 12 isd isd

7228 Medical Group Population Health Executive 10 10 isd isd

7268 Medical Group Top Operations Executive 40 77 isd isd

7269 Medical Group Top Information Services Position 14 16 isd isd

7274 Medical Group Top Human Resources Position 25 29 isd isd

7279 Medical Group Top Facilities Position 8 8 isd isd

7406 Medical Group Controller 39 45 isd isd

7558 Medical Group Head of Operations 46 182 isd isd

7900 Practice Administrator 33 507 isd isd

All Medical Groups

Code Jobn

Orgs

n

Incumbents

TCCCash-Based LTI

TDCPercentage Amount Paid

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved. P 12 SECTION IV

SECTION V:

REGRESSIONS

REGRESSIONS

Size Measure n Orgs n Incumbents Slope Intercept r SEE

Log (Physician FTEs) 89 99

Log (Physician FTEs) 89 99

7220

Log (Base Salary)

Log (TCC)

(1)Annual compensation, base salary and TCC are displayed in thousands.

Compensation

Physician

FTEs

Base

Salary(1) TCC

(1)

7220MEDICAL GROUP CHIEF EXECUTIVE OFFICER/EXECUTIVE

DIRECTOR (MD), ALL

$0

$100

$200

$300

$400

$500

$600

$700

$800

10 100 1,000

An

nu

al

Co

mp

en

sati

on

(1)

Physician FTEs

Base TCC

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved. P 17 SECTION V

APPENDIX A:

SURVEY

PARTICIPANTS

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

Advocate Medical Group Oak Brook IL

Allegheny Clinic Pittsburgh PA

AMITA Health Medical Group Bolingbrook IL

Anne Arundel Medical Group Annapolis MD

Aria Health Physician Services Philadelphia PA

Ascension Health Medical Group St. Louis MO

Ascension Health Medical Group Gulf Coast Ministry Market Pensacola FL

Ascension Health Medical Group Indiana Ministry Market Indianapolis IN

Ascension Health Medical Group Jacksonville Ministry Market Jacksonville FL

Ascension Health Medical Group Kansas Ministry Market Wichita KS

Ascension Health Medical Group Mid-Michigan Ministry Market Saginaw MI

Ascension Health Medical Group Tennessee Ministry Market Nashville TN

Ascension Health Medical Group Texas Ministry Market Austin TX

Ascension Health Medical Group Tulsa Ministry Market Tulsa OK

Ascension Health Medical Group Wisconsin Ministry Market Milwaukee WI

Ascension Medical Group Southeast Michigan Warren MI

Atlantic Medical Group Morristown NJ

Atrium Health Medical Group Charlotte NC

Atrius Health Newton MA

Aultman Medical Group Canton OH

Austin Regional Clinic Austin TX

Baptist Health Medical Group Louisville KY

BayCare Clinic Green Bay WI

BayCare Medical Group Clearwater FL

Baylor St. Luke's Medical Group Houston TX

Beacon Medical Group South Bend IN

Beaumont Medical Group Troy MI

Benefis Medical Group Great Falls MT

Blanchard Valley Medical Practices Findlay OH

Blessing Physician Services Quincy IL

Boston University Medical Group Boston MA

Brigham and Women's Physician Group Chestnut Hill MA

Bronson Medical Group Battle Creek MI

Bryan Physician Network Lincoln NE

Butler Medical Providers Butler PA

Note: This list does not include one organization that wished to remain anonymous.

P A-2 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

Capital Health Medical Group Trenton NJ

Care New England Medical Group Providence RI

CaroMont Medical Group Gastonia NC

Carson Tahoe Medical Group Carson City NV

Catawba Valley Medical Group Hickory NC

Cedars-Sinai Medical Network Beverly Hills CA

CentraCare Clinic St. Cloud MN

Centra Medical Group Lynchburg VA

Centura Health Physician Group Englewood CO

ChenMed Miami Gardens FL

ChenMed – Georgia Miami FL

ChenMed – Illinois Miami FL

ChenMed – Louisiana Miami FL

ChenMed – South Florida Miami FL

ChenMed – Virginia Miami FL

CHI Health – Alegent Creighton Clinic Omaha NE

Children's Health Care Associates Philadelphia PA

Children's Medical Group Milwaukee WI

Children's National Health System Medical Group Washington DC

Children's Specialty Group Milwaukee WI

CHI St. Vincent Medical Group Little Rock AR

Christiana Care Quality Partners Willmington DE

CHRISTUS Physician Group Irving TX

CHRISTUS St. Vincent Medical Group Santa Fe NM

CHRISTUS Trinity Clinic Tyler TX

C. L. Brumback Primary Care Clinics Palm Springs FL

Colquitt Regional Medical Center Physicians Moultrie GA

Columbus Regional Health Physicians Columbus IN

Combined Medical Group New Brunswick NJ

Cone Health Medical Group Greensboro NC

Covenant Medical Group Lubbock TX

Dartmouth-Hitchcock Clinic Lebanon NH

Deaconess Clinic Evansville IN

Facey Medical Group Mission Hills CA

Fairview Physician Associates Network Edina MN

Note: This list does not include one organization that wished to remain anonymous.

P A-3 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

FirstHealth Physician Group Pinehurst NC

First Physicians Group Sarasota FL

Foundation Medical Partners Nashua NH

Franciscan Medical Group Tacoma WA

Franklin Community Health Network Farmington ME

GBMC Health Partners Baltimore MD

Geisinger Clinic Danville PA

Genesis Medical Group Zanesville OH

Graham Medical Group Canton IL

Guthrie Medical Group Sayre PA

Hackensack Meridian Health Medical Group Edison NJ

Hartford Healthcare Medical Group Hartford CT

HealthChoice Memphis TN

Health Leaders Network Baton Rouge LA

HealthPartners Medical Group Bloomington MN

HealthTexas Provider Network Dallas TX

Heart Clinic Arkansas Little Rock AR

Henry Ford Allegiance Medical Group Jackson MI

Henry Ford Medical Group Detroit MI

Horizon Healthcare Fairfield IL

Houston Methodist Specialty Physician Group Houston TX

HSHS Medical Group Springfield IL

HSS Medical Group New York NY

Inova Medical Group Falls Church VA

Inspira Medical Group Bridgeton NJ

Intermountain Medical Group Salt Lake City UT

IU Health Physicians Indianapolis IN

Jefferson University Physicians Philadelphia PA

John Muir Physician Network Walnut Creek CA

Johns Hopkins Community Physicians Baltimore MD

KentuckyOne Medical Group Louisville KY

Lancaster General Medical Group Lancaster PA

Lehigh Valley Physician Group Allentown PA

Lexington Medical Center Physician Network West Columbia SC

Lifespan Physicians Group Providence RI

Note: This list does not include one organization that wished to remain anonymous.

P A-4 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

Lourdes Physician Group Lafayette LA

Maine Medical Partners Scarborough ME

Mankato Clinic Mankato MN

Massachusetts Eye and Ear Associates Boston MA

Massachusetts General Physicians Organization Boston MA

McKesson Specialty Health & The US Oncology Network The Woodlands TX

McLaren Medical Group Flint MI

MCV Physicians Richmond VA

Medical College Physicians Milwaukee WI

MEDNAX National Medical Group Sunrise FL

Memorial Hermann Medical Group Houston TX

Memorial Medical Group Marysville OH

Memorial Physicians Yakima WA

Mercy Clinic East Communities St. Louis MO

Mercy Clinic North Central Communities Springfield MO

Mercy Clinic Springfield Communities Springfield MO

Mercy Medical Group Sacramento CA

MercyOne Medical Group Des Moines IA

Metro Health Medical Group Wyoming MI

MidMichigan Physicians Group Midland MI

Milford Regional Physician Group Milford PA

Mission Heritage Medical Group Mission Viejo CA

Mission Medical Associates Asheville NC

Moffitt Medical Group Tampa FL

Monarch HealthCare Irvine CA

Mount Carmel Medical Group Columbus OH

Mount Sinai Doctors Faculty Practice New York NY

MultiCare Medical Associates Tacoma WA

MultiCare Rockwood Main Clinic Spokane WA

Navicent Health Physician Group Macon GA

Northeast Georgia Physicians Group Gainesville GA

Northeast Medical Group Stratford CT

Northern Light Eastern Maine Medical Group Bangor ME

NorthShore Medical Group Evanston IL

Northwestern Medical Group Chicago IL

Note: This list does not include one organization that wished to remain anonymous.

P A-5 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

Novant Health Medical Group Winston-Salem NC

NYU Langone Faculty Group Practice New York NY

OhioHealth Physician Group Columbus OH

One Medical San Francisco CA

OptumCare Arvada CO

OptumHealth Eden Prairie MN

Orlando Health Physician Group Orlando FL

OSF Medical Group Peoria IL

Our Lady of the Lake Physician Group Baton Rouge LA

Pacific Medical Centers Seattle WA

Palo Alto Medical Foundation Mountain View CA

Pediatric Physicians' Organization at Children's Brookline MA

Pediatric Specialists of America Miami FL

Peninsula Regional Medical Group Salisbury MD

Penn State Medical Group Hershey PA

Phoebe Physician Group Albany GA

Phoenix Children's Medical Group Phoenix AZ

PinnacleHealth Medical Group Lemoyne PA

Platte Valley Medical Group Brighton CO

Premier Physician Network Dayton OH

Presbyterian Medical Group Albuquerque NM

ProHealth Physicians Farmington CT

ProMedica Physician Group Sylvania OH

ProMedica Physicians & Continuum Services Sylvania OH

Providence Medical Group Beaverton OR

Providence Medical Group – Washington Walla Walla WA

Pulse Heart Institute Tacoma WA

Reliant Medical Group Worcester MA

Renown Medical Group Reno NV

Rochester General Medical Group Rochester NY

Rush University Medical Group Chicago IL

Saint Luke's Primary Care-Barry Road Kansas City MO

Sanford Clinic Sioux Falls SD

SCL Health Medical Group – Montana Billings MT

SCL Physicians – Denver Denver CO

Note: This list does not include one organization that wished to remain anonymous.

P A-6 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

Scott & White Clinic – Temple Temple TX

Sentara RMH Medical Group Harrisonburg VA

Sharon Hospital Medical Practice Sharon CT

Sharp Community Medical Group San Diego CA

Sharp Rees-Stealy San Diego CA

Shore Physicians Group Somers Point NJ

SIH Medical Group Carbondale IL

Southcoast Physicians Group Fairhaven MA

Southwest Medical Associates Las Vegas NV

Spectrum Health Medical Group Grand Rapids MI

Spirit Physician Services Camp Hill PA

Springfield Clinic Springfield IL

SSM Health Dean Medical Group Madison WI

SSM Health Medical Group – St. Louis St. Louis MO

St. Charles Medical Group Bend OR

St. Elizabeth Physicians Crestview Hills KY

Steward Health Care Network Brighton MA

Steward Medical Group Boston MA

St. Francis Medical Group Monroe LA

St. James Medical Group Butte MT

St. Joseph Heritage Healthcare Anaheim CA

St. Mary's Medical Group Grand Junction CO

St. Vincent Physicians Billings MT

Summa Health Medical Group Akron OH

Sutter Pacific Medical Foundation San Francisco CA

Swedish Medical Group Seattle WA

Tanner Medical Group Carrollton GA

Texas Children's Pediatrics Houston TX

The Chattanooga Heart Institute at Memorial Chattanooga TN

The Emory Clinic Atlanta GA

The Gould Medical Group Modesto CA

The Physician Network Lincoln NE

The Polyclinic Seattle WA

THIPA Torrance CA

TMHPP Tallahassee FL

Note: This list does not include one organization that wished to remain anonymous.

P A-7 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

SURVEY PARTICIPANTS

ORGANIZATION CITY STATE

TriHealth Primary Care Cincinnati OH

Tufts Medical Center Community Care Medford MA

UCHealth Medical Group Loveland CO

UC San Diego Health Physician Network San Diego CA

UHS Medical Group Johnson City NY

UMass Memorial Medical Group Worcester MA

U-M Medical Group Ann Arbor MI

UnityPoint Clinic Johnston IA

University Health Associates Morgantown WV

University Hospitals Medical Group Shaker Heights OH

University of Chicago Medicine Care Network Chicago IL

University of Maryland Community Medical Group Linthicum MD

University of Minnesota Physicians Minneapolis MN

UNM Medical Group Albuquerque NM

UT Methodist Physicians Cordova TN

UT Regional One Physicians Memphis TN

Valley Children's Medical Group Madera CA

Valley Physician Enterprise Winchester VA

Vidant Medical Group Greenville NC

Virtua Medical Group Marlton NJ

WakeMed Physician Practices Raleigh NC

WellMed Medical Group San Antonio TX

WellSpan Medical Group York PA

WellStar Medical Group Marietta GA

Willis-Knighton Physician Network Shreveport LA

Note: This list does not include one organization that wished to remain anonymous.

P A-8 APPENDIX A

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

APPENDIX B:

JOB LIST AND

SUMMARIES

JOB LIST AND SUMMARIES

MEDICAL GROUP EXECUTIVE

7220 Medical Group Chief Executive Officer/Executive Director (MD)

7221 Medical Group Chief Executive Officer/Executive Director (Non-MD)

7222 Medical Group Chief Operating Officer

7223 Medical Group Chief Financial Officer

7224 Medical Group Chief Medical Officer

7225 Medical Group Chief Administrative Officer

7226 Medical Group Top Quality Position

7227 Medical Group Chief Nursing Officer/Top Patient Care Executive

7228 Medical Group Population Health Executive

7268 Medical Group Top Operations Executive

7269 Medical Group Top Information Services Position

7274 Medical Group Top Human Resources Position

7279 Medical Group Top Facilities Position

7406 Medical Group Controller

7558 Medical Group Head of Operations

7900 Practice Administrator

P A-10 APPENDIX B

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

APPENDIX C:

TERMS AND

DEFINITIONS

APPENDIX D:

USING REGRESSION

EQUATIONS

USING REGRESSION EQUATIONS

The regression equations in this report estimate base salary and TCC based on

organization size as measured by number of physician FTEs.

COMPENSATION LEVELS

To estimate compensation levels using the regression equations (Example C.1 below is based on 300 physician

FTEs, a slope of 0.2938 and an intercept of 1.1289), the following steps should be used:

● Step One. Obtain your organization's number of physician FTEs (300 in Example C.1) for the size measure

shown in the x-axis of the graph for the most recently completed fiscal year.

● Step Two. Take the logarithm of your organization's size measure value. All logarithmic values are base 10

logarithms.(1)

● Step Three. Multiply the logarithm of the value (2.4771 in Example C.1) by the slope (0.2938 in Example C.1).

The value of which is 0.7277 in Example C.1.

● Step Four. Add the intercept from the regression equation (1.1289 in Example C.1) to the answer to step

three. The sum of which is 1.8567 in Example C.1. There are always two regression equations: one for

base salary and another for TCC.

● Step Five. Take the antilogarithm of the answer to step four (1.8567 in Example C.1). The value of which is

71.8952 in Example C.1.(2)

● Step Six. Multiply the answer to step five (71.8952 in Example C.1) by 1,000. This is the estimated market

median base salary or TCC level for executives in comparably sized organizations ($71,900 in Example C.1).

EXAMPLE C.1 – Compensation Levels

Log(300) = 2.4771 Step Two

2.4771 x 0.2938 = 0.7277 Step Three

0.7277 + 1.1289 = 1.8567 Step Four

Antilog(1.8567) = 71.8952 Step Five

71.8952 x 1,000 = $71,900 Step Six

(1)For spreadsheet users, in step two, the logarithmic value may be calculated to produce the base 10 logarithm of the net revenue (e.g., LOG10(300) = 0.7277).

(2)For spreadsheet users, in step five, the antilogarithm of a value may be calculated by raising 10 to the value obtained in step four (e.g., 10 [̂1.8567] = 71.8952).

P A-19 APPENDIX D

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

USING REGRESSION EQUATIONS

COMPENSATION LEVELS continued

The regression equations can be interpreted by referencing values of the correlation coefficient r, which measures

the strength of the linear relationship between compensation levels and the organization size measure and the

standard error of the estimate (SEE), which measures the dispersion in compensation levels around the

regression line and may be used to estimate a range of compensation levels, reported in the regression graphs

and tables. R squared is the percentage of the variance in the distribution of base salary and TCC that is

“explained” by the organization size measure (e.g., an r of 0.75 yields an r squared of 0.56). This means that just

over one-half of the variance in the compensation levels may be explained by the size measure.

25TH AND 75TH PERCENTILES

To estimate the 25th and 75th percentiles using the regression equations (Example C.2 on the following page is

based on 300 physician FTEs, a SEE of 0.061 and the value obtained in step four from Example C.1 [1.8567]),

the following steps should be used:

● Step One. Multiply the SEE (0.061 in Example C.2) by 0.675. The value of which is 0.0412 in Example C.2.

● Step Two. Subtract 0.0412 from 1.8567 (the value obtained in step four in Example C.1). The value of which

is 1.8155 in Example C.2.

● Step Three. Take the antilogarithm of the answer to step two (1.8155 in Example C.2). The value of which is

65.3883 in Example C.2.

● Step Four. Multiply the answer to step three (65.3883 in Example C.2) by 1,000. This is the estimated 25th

percentile value based on the organization's size measure of 300 physician FTEs ($65,388 in Example C.2).

● Step Five. Add 0.0412 to 1.8567 (the value obtained in step four in Example C.1). The value of which is

1.8979 in Example C.2.

● Step Six. Take the antilogarithm of the answer to step five (1.8979 in Example C.2). The value of which is

79.0497 in Example C.2.

● Step Seven. Multiply the answer to step six (79.0497 in Example C.2) by 1,000. This is the estimated 75th

percentile value based on the organization's size measure of 300 physician FTEs ($79,049 in Example C.2).

P A-20 APPENDIX D

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

USING REGRESSION EQUATIONS

25TH AND 75TH PERCENTILES continued

EXAMPLE C.2 – 25th and 75th Percentiles

0.061 x 0.675 = 0.0412 Step One

1.8567 - 0.0412 = 1.8155 Step Two

Antilog(1.8155) = 65.3883 Step Three

65.3883 x 1,000 = $65,388 Step Four

1.8567 + 0.0412 = 1.8979 Step Five

Antilog(1.8979) = 79.0497 Step Six

79.0497 x 1,000 = $79,049 Step Seven

P A-21 APPENDIX D

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.

APPENDIX E:

ABOUT

SULLIVANCOTTER

ABOUT SULLIVANCOTTER

SullivanCotter partners with health care and other not-for-profit organizations to

drive performance and improve outcomes through the development and

implementation of integrated workforce strategies. Using our time-tested

methodologies and industry-leading research and information, we provide

data-driven insights and expertise to help organizations align business strategy

and performance objectives – enabling our clients to deliver on their mission,

vision and values.

For more information, visit www.sullivancotter.com or call 888.739.7039.

SullivanCotter has offices in Atlanta, Boston, Chicago, Denver, Detroit,

Eau Claire, Minneapolis, New York, Parsippany, Philadelphia, Pittsburgh and

San Francisco.

P A-23 APPENDIX E

Medical Group Executive Compensation Survey Report

© 2019 SullivanCotter, Inc. All rights reserved.