Organizations are directing pay increases toward transformation, technology, and workforce leadership roles while redesigning executive structures for affordability.

CHICAGO: SullivanCotter, the nation’s leading independent consulting firm in the assessment and development of total rewards programs, workforce solutions, and data products for health care and not-for-profit organizations, has released results from its 2026 Health Care Management and Executive Compensation Survey.

Now in its 34th year, this industry-leading benchmarking resource includes compensation data on positions across more than 3,600 health care organizations, including health systems and owned entities such as hospitals, medical groups, and health plans.

Key findings:

• Base salary: Median increase of 4.1% for all health care executives (vs. 4.4% in 2025); 4.3% at health systems vs. 3.6% at subsidiary hospitals.
• Total cash compensation (TCC), which includes base salary plus annual incentives: Up 5.4% at the median (vs. 7.0% in 2025); 5.8% at health systems vs. 4.9% at subsidiary hospitals.
• Biggest movers: Roles in enterprise transformation, technology, workforce strategy, clinical integration, and growth saw median salary increases of 5.0% or higher.

Overall, compensation growth remained stable compared to 2025, with organizations directing the largest increases toward roles tied to enterprise transformation, technology, workforce strategy, clinical integration, and growth. Health system executive salary increases outpaced those of subsidiary hospital executives, reflecting the expanding scope of enterprise leadership and centralization of key functions.

TCC growth also moderated year-over-year, with incentive awards averaging slightly above target. Salary actions and performance-based payouts were the main drivers of TCC as incentive plan prevalence and target award opportunities were largely unchanged.

Performance measures used in incentive programs continue to evolve. SullivanCotter’s Executive Workforce Pulse Survey, conducted in April 2026, found that 45% of organizations adjusted the weighting of FY2026 incentive plan goals, often placing greater emphasis on financial performance and/or changing the balance between system- and entity-level performance.

The largest median base salary increases (5.0% or higher) were concentrated in roles focused on enterprise transformation, technology, workforce strategy, clinical performance, and growth:

• Enterprise Leadership and Transformation: CEO, COO, CFO, Chief Strategy Officer, Top Clinical Integration/Transformation Executive.
• Technology, Data, and Digital: Chief Technology Officer, Top Applications Executive, Top Business Analytics and Data Executive.
• Workforce and Human Capital: CHRO, Top Total Rewards Executive, Top Talent Acquisition and Retention Executive, Top Learning/OD Executive.
• Clinical Performance and Growth: Chief Physician Executive, Top Quality Executive (MD), Top Managed Care Executive, Top Marketing Executive, Top Foundation/Fund Development Executive.
• Risk and External Affairs: Top Government Relations Executive, Top Internal Audit Executive.

An increase in the number of positions reported within enterprise transformation, technology and innovation, patient access, and community-based care also underscores that leadership structures are evolving to support operating model transformation and sustainable growth.

“Organizations are entering a more deliberate phase of executive workforce management,” said Renee Stolis, Managing Principal, SullivanCotter. “Rather than increasing executive pay across the board, health systems are targeting investment toward the capabilities that matter most – while managing overall affordability.”

This targeted approach extends beyond pay. The same pulse found that more than 90% of organizations have taken or plan to take action on their executive workforce – most commonly revising titling and leveling (73%) – and that 56% reported operating model changes underway, under evaluation, or planned. These findings point to more differentiated salary growth for specific roles as organizations invest in leadership capabilities tied to transformation, technology, and growth while managing overall cost.

“The demand for key leadership talent who can drive transformation continues to outstrip supply,” said Bruce Greenblatt, Managing Director and Executive Workforce Practice Leader, SullivanCotter. “Health care organizations are striving to balance the need to recruit externally with the need to develop talent from within.”

As health systems navigate financial pressure, reimbursement change, workforce disruption, and accelerating technology adoption, SullivanCotter recommends that organizations:

• Assess leadership structures: Make titling, span-of-control, and headcount decisions alongside operating model changes, not in isolation.
• Strengthen succession planning: With pipelines still developing and retention risk elevated, prioritize succession as a standing board agenda item, not an annual event.
• Align incentive plan design with strategy: As performance needs change, ensure incentive plan goals and weightings reflect key priorities.
• Review compensation and talent governance: Succession, retention, and incentive design increasingly intersect with operating model and performance alignment – the compensation committee’s scope and annual calendar should ensure these priorities are regularly addressed.

About SullivanCotter

SullivanCotter is the leading independent consulting firm serving health care and mission-driven organizations. Through industry-leading workforce intelligence and specialized advisory expertise, we help organizations assess their workforce, improve organizational structure, align compensation, benefits, and rewards, and accelerate workforce and organizational performance. By integrating data analytics, behavioral science, and deep industry insight, we align strategy with structure and reimagine the definition of partnership-working alongside leaders to architect the future of health care and build organizations better equipped to serve their communities.

For more information on SullivanCotter’s surveys, visit www.sullivancotter.com or contact us at 888.739.7039.

Note to media: Additional data and interviews are available upon request.

Fonte: Business Wire