Well-designed and well-administered executive incentive plans do work.

Abstract

Executive incentive plans in the health-care industry, virtually unheard of a decade ago, are becoming a critical part of the overall integrated management system. These plans are necessary today to drive improved performance and overall success in the increasingly difficult health-care environment. This article describes (1) incentive growth, (2) the components of a successful executive incentive program, (3) how an incentive program drives business strategies, performance, and philosophy, and (4) the overall benefits of a well-designed and well-administered program.