Healthcare Compensation
Overview:
CRI has extensive experience working with healthcare organizations to develop effective compensation programs that are aligned with organizational goals and objectives. When developing a program for healthcare organizations, we ensure that it is aligned with applicable Joint Commission on Accreditation of Healthcare Organizations (JCAHO) regulations.
Specifically, CRI specializes in the design, development, and implementation of compensation and human resource programs in the following areas:
Sectors served:
- Healthcare Centers
- Custodial Care
- Home Care
- Hospitals
- Medical Practices
- Continuing Care Retirement Communities
Case Studies:
Case Study #1: Salary Administration Program
Issues:
- Concerned regarding credibility of compensation process
- Utilized the point-factor system for determining internal job value tied to salary increases and grade assignments
- Job descriptions often rewritten to increase job value
- Often provided mid-year adjustments to "hot jobs" due to market pressures
- Compression occurred between new hires and experienced employees
- Desired to develop a market pricing designed program to attract and retain employees
Solutions:
- Adopted a Compensation Philosophy that emphasized a market driven approach for salary administration
- Market priced all positions based on a market driven approach
- Developed appropriate salary structures for various employee groups
- Compensated employees at the competitive market levels
- Provided increases to employees that were tied to performance
- Developed salary administration guidelines and procedures to ensure consistency
- Communicated with employees regarding the new program
Case Study #2: Executive Compensation Analysis
Issues:
- Board of Directors of non-profit hospital needed to determine executive compensation levels in light of IRS regulations
- An examination of reasonable compensation for Senior Management needed to be conducted
Solutions:
- Interviewed members of the Board of Directors in order to confirm their position on compensation
- Interviewed executives to fully understand their duties and responsibilities
- Conducted a market analysis to determine reasonableness of compensation utilizing published survey and peer Form 990 data
- Provided recommendations for appropriate compensation levels to the Board of Directors
Case Study #3: Performance Management Program
Issues:
- Performance management process was very cumbersome and subjective
- Evaluation forms did not differentiate performance levels
- Reviews were not performed on a consistent, systematic basis
- Infrequent communications regarding employee performance
- Not enough management training
Solutions:
- Developed new performance management program that was aligned with best practices and JCAHO regulations
- Developed simplified forms specific for management and staff
- Decreased number of performance ratings in order to provide for differentiation
- Conducted performance evaluations twice a year
- Conducted management training on proper use of forms
- Communicated with employees regarding the new program
