Healthcare Executives

A May 2007 report from Zoom Information Inc. looked at 13 industries and sectors, and found, perhaps not surprisingly, that the healthcare and non-profit sectors had the highest percentages of female CEOs. In healthcare, 22.1% of CEOs were women and 77.9% were men, and in the non-profit sector, 29.6% of CEOs were women and 70.4% were men. As a comparison, the lowest percentage of female CEOs were found in the semiconductor (96.9% male and 3.1% female) and automotive (95.8% male and 4.2% female) industries.

To find out more about who these executives might be, we went to the American College of Healthcare Executives (ACHE). In 2006 (and in 2000, 1995, and 1990), ACHE conducted a research survey comparing the career attainments of men and women healthcare executives. The 2006 survey was sent to 1,597 ACHE affiliates, and received 837 responses, 388 from men and 449 from women.

Who are Healthcare Executives?

Among year 2006 respondents to the ACHE survey, 19% of men and 12% of women were CEOs, meaning women had the corner office at 63% the rate of men. This was up from year 2000, in which women were CEOs at 44% the rate of men.

But interestingly, the study also showed that only 40% of women respondents want to be CEOs within the next five, 10, or 15 years, while 70% of men want to be CEOs within the next five, 10, or 15 years. Additionally, 73% of males and 55% of females were willing to relocate to "move on up."

When considering other healthcare executives and managers, the numbers are closer and, in some cases, put women on top. In 2006, female respondents held COO/Associate Director roles at 82.6% of the rate of men and VP roles at 88.9% of the rate of men, while male respondents held department head/staff roles at 64.8% of the rate of women and other roles at 87.5% of the rate of women. Specifically, ACHE found that women are more involved than men in specialized management areas, including nursing (12% versus 2%); in planning, marketing, and QA (18% versus 11%); and in continuum of care, such as ambulatory, home, and long-term care (4% versus 2%).

The ACHE survey didn't have a separate classification for Chief Nursing Officers (CNOs), but a January 2003 survey conducted by the executive search firm Witt/Kieffer reported that 92% of CNOs were women. In the chain of command, 67% of CNOs reported to the CEO/President, 23% to the COO, and 10% to others (e.g., a system president). The report also noted that CNOs "tend to make a job move to enhance their career growth."

Backgrounds

In 2006, 88% of male healthcare executives and 82% of female healthcare executives had a Master's degree or higher. Of these, 54% of males' and 48% of females' higher degree was in health administration, 32% of males' and 26% of females' higher degree was in business, 6% of males' and 15% of females' higher degree was in clinical or allied health, 1% of males' and 2% of females' higher degree was in public health or administration, and 7% of males' and 9% of females' higher degree was in another area.

And of respondents to the ACHE survey, 56% of females and 31% of males had previous experience as a clinician.

Income, etc.

Over the years of the ACHE surveys, things have improved financially for women healthcare executives, though in all four surveys, men reported earning more than women. In the most recent survey, having attained equal levels of education and experience, men earned a median income of $131,000, while women earned a median income of $107,800, which is 18% less than men. (This is a similar percentage to earlier reports, in which the range was between 17% and 19% less for women.) In all other levels of executive management (e.g., COO, VP, department head), female respondents' median salary was lower than men's.

Not surprisingly, some women didn't feel they were being fairly compensated, with 29% of women in the year 2006 survey feeling that they failed to receive fair compensation due to their sex – though this is well down from 43% in 2000.

Meanwhile, the 2003 Witt/Kieffer survey noted that, overall, CNOs had an average base compensation of $136,104, although at academic medical centers, CNOs' average base compensation was $178,476. Interestingly, however, only 60% of CNOs reported feeling that they were compensated fairly and equitably in relation to the market.

The income disparities between men and women healthcare executives is lower than in many other industries. For example, in the US Bureau of Labor Statistics' 2006 report "Median Weekly Earnings of Full-Time Wage and Salary Workers by Detailed Occupation and Sex" shows that in the Business and Financial Operations Occupations category, women CEOs earned 25% less than men.

And some good news in the ACHE survey is that most male and female healthcare executives (83% to 85%) are very satisfied or satisfied with their positions, advancement, and job security.

Other Notable Findings

Of ACHE's respondents, 90% of male executives and 76% of female executives were married, but only 35% of males' spouses worked full-time, while 80% of females' spouses worked full-time. This disparity perhaps contributed to the additional finding that two-thirds of men relied on their spouses to care for their children when they are sick, while only 12% of women did the same.

A small percentage of women – 7% – indicated having to leave the workforce since beginning their careers in healthcare management due to childbearing or child rearing, while no males reported leaving for child rearing. And 41% of women and 16% of men reported that family obligations fell disproportionately on them. The male percentage is a significant increase from earlier years, when this issue was reported by only between 6% and 8% of men.

Meanwhile, 81% of women healthcare executives, and 42% of men healthcare executive favor a continuation of efforts to increase the proportion of women in senior healthcare management.

And concerning the statement, "Success in healthcare management is heavily influenced by social factors (i.e., who you are and who you know)," 64% of men and 68% of women agreed or strongly agreed.

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