Dawn Q. McLane, RN, MSA, CASC, CNOR, regional vice president of operations for Health Inventures, discusses five ways to decide a salary for an ambulatory surgery center administrator.
1. Query the market. Benchmarking is the most important factor in determining ASC administrator salaries, Ms. McLane says. To determine the most appropriate salary, she says ASC boards should look at data on similar ASCs across the country, as well as ASCs in the same region. Considering both data sources is important because administrator salaries can vary depending on scope of responsibility and the economics of a particular region. "Someone in southern California would not accept a position at a salary that would be fair in another area of the country," she says. "You have to look at like centers with the same kinds of responsibilities, as well as education, training and experience of the candidate and also regional influences."
She says if local ASC data is not available, the ASC board might consider looking at local hospital salaries for administrative positions. But keep in mind that market salaries for hospital OR managers might not be comparable to those for ASC administrators. "[The ASC] has to have philosophy on whether they're going to match hospital salaries or whether they will pay a little less in the surgery center," she says. "There's a perception that in the surgery center, the different lifestyle" makes up for a slightly lower salary.
2. Establish an annual evaluation process to decide bonuses or salary increases. Ms. McLane says most centers distribute an annual bonus or incentive to the administrator, regardless of whether they implement similar bonus programs for employees. To ensure that bonuses are fair, the ASC's board should conduct an annual evaluation of the administrator. "[The evaluation] might be based on job description to evaluate how their administrator has performed throughout the year," she says. This evaluation is important to make sure salary increases or bonuses occur regularly enough to keep compensation competitive — and to make sure the ASC administrator's performance is up to par.
3. Decide whether bonuses will be based on the success of the individual or the center. Bonuses can be calculated in several different ways. If the center is focused on improving profits and cutting costs, the ASC board might choose to tie the administrator's compensation to the financial success of the center. That way, the administrator is rewarded (or, conversely, disciplined) for the health of the center through his or her paycheck. Otherwise, the board can give the administrator a pre-determined payout if he or she meets certain goals. This payout might be based on a percentage of the administrator's salary, or there might be a set amount for accomplishing a certain goal — $2,500 for increasing case volume by 5 percent, for example.
4. Network with other centers. National data — published annually by the ASC Association, VMG Health and other sources — may be helpful in deciding ASC salaries. At the same time, local data can demonstrate what your administrator would make if he or she decided to move to another center in the same area. This data can keep your center competitive, as you will most likely be competing with other local centers for administrative talent. Since national surveys rarely publish data on specific cities or counties, your best bet is to network with other centers and regional associations.
5. Freeze salaries when appropriate. Since ASC administrators are salaried, cutting staffing costs through their compensation can be a challenge. Ms. McLane says while she rarely sees decreases in administrator salaries, salary freezes are becoming more common. "I've seen that in the past couple of years, some centers haven't offered increases or bonuses because they are trying to keep as many staff employed as possible," she says. Administrators should usually be on board with salary freezes, since they are intimately familiar with center finances and understand the need to cut costs.
Read more about Health Inventures.
Read more about ASC employee and physician compensation:
-2011 Average Salaries Revealed for Physician Assistants, Nurse Anesthetists
-Nurse Practitioner, Physician Assistant Average Salaries Jump $25K Since 2001
-Money Makers: 15 Statistics on Physician Compensation
1. Query the market. Benchmarking is the most important factor in determining ASC administrator salaries, Ms. McLane says. To determine the most appropriate salary, she says ASC boards should look at data on similar ASCs across the country, as well as ASCs in the same region. Considering both data sources is important because administrator salaries can vary depending on scope of responsibility and the economics of a particular region. "Someone in southern California would not accept a position at a salary that would be fair in another area of the country," she says. "You have to look at like centers with the same kinds of responsibilities, as well as education, training and experience of the candidate and also regional influences."
She says if local ASC data is not available, the ASC board might consider looking at local hospital salaries for administrative positions. But keep in mind that market salaries for hospital OR managers might not be comparable to those for ASC administrators. "[The ASC] has to have philosophy on whether they're going to match hospital salaries or whether they will pay a little less in the surgery center," she says. "There's a perception that in the surgery center, the different lifestyle" makes up for a slightly lower salary.
2. Establish an annual evaluation process to decide bonuses or salary increases. Ms. McLane says most centers distribute an annual bonus or incentive to the administrator, regardless of whether they implement similar bonus programs for employees. To ensure that bonuses are fair, the ASC's board should conduct an annual evaluation of the administrator. "[The evaluation] might be based on job description to evaluate how their administrator has performed throughout the year," she says. This evaluation is important to make sure salary increases or bonuses occur regularly enough to keep compensation competitive — and to make sure the ASC administrator's performance is up to par.
3. Decide whether bonuses will be based on the success of the individual or the center. Bonuses can be calculated in several different ways. If the center is focused on improving profits and cutting costs, the ASC board might choose to tie the administrator's compensation to the financial success of the center. That way, the administrator is rewarded (or, conversely, disciplined) for the health of the center through his or her paycheck. Otherwise, the board can give the administrator a pre-determined payout if he or she meets certain goals. This payout might be based on a percentage of the administrator's salary, or there might be a set amount for accomplishing a certain goal — $2,500 for increasing case volume by 5 percent, for example.
4. Network with other centers. National data — published annually by the ASC Association, VMG Health and other sources — may be helpful in deciding ASC salaries. At the same time, local data can demonstrate what your administrator would make if he or she decided to move to another center in the same area. This data can keep your center competitive, as you will most likely be competing with other local centers for administrative talent. Since national surveys rarely publish data on specific cities or counties, your best bet is to network with other centers and regional associations.
5. Freeze salaries when appropriate. Since ASC administrators are salaried, cutting staffing costs through their compensation can be a challenge. Ms. McLane says while she rarely sees decreases in administrator salaries, salary freezes are becoming more common. "I've seen that in the past couple of years, some centers haven't offered increases or bonuses because they are trying to keep as many staff employed as possible," she says. Administrators should usually be on board with salary freezes, since they are intimately familiar with center finances and understand the need to cut costs.
Read more about Health Inventures.
Read more about ASC employee and physician compensation:
-2011 Average Salaries Revealed for Physician Assistants, Nurse Anesthetists
-Nurse Practitioner, Physician Assistant Average Salaries Jump $25K Since 2001
-Money Makers: 15 Statistics on Physician Compensation