The use of incentive compensation and other variable pay programs for healthcare executives clearly has taken hold in the industry, increasing more than threefold since 1983. A 1990 survey found that 29 percent of hospitals used management incentives, compared to only 9 percent seven years earlier. (a)
The trend toward variable pay plan for the rest of the house is not as clear. In a 1990-91 survey on alternate reward systems for non-management employees, (b) 11 percent of ...