Even though it will fluctuate based on a variety of crucial variables, the average salary of assisted living community presidents/CEOs throughout the country grew 1.33% within the previous year, down from a 4.12% increment earned by chief executive officers the preceding year, based on the “2022-2023 Assisted Living Salary & Benefits Report” compiled by Hospital & Healthcare Compensation Service.
According to findings, the 50th percentile earning for an assisted living president/CEO in 2021 was $106,000. It is significant to mention that the CEO of an assisted living facility directs and manages the vision and execution of all daily business operations, and practices, as well as manuals for all locations, location managers, and heads of departments.
Based on reports, average CEO salaries increased from $110,124 in 2021 to $111,591 in 2022. Broadly speaking, the overall average remuneration for CEOs, which includes salary and incentives, was $134,103 the year before, down from $139,407 in 2021 for all survey participants to this year’s poll.
Earnings of top executives improved with the magnitude of the community’s income as well as the number of beds in their facility. CEOs in not-for-profit communities tend to make more especially when compared to their for-profit contemporaries, despite the fact that evidence on the for-profit corner was only accessible in two regions.
In accordance with the study, presidents/CEOs earn more within continuing care retirement communities as well as nursing homes than in assisted living communities, particularly in comparison to $158,000 for a CCRC CEO and $120,810 for a nursing home CEO.
Factors Influencing How Much an Assisted Living Facility CEO Earns
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The Facility’s Size and Staff
Assisted Living Facility CEOs are paid mainly based on the number of clients who pass through their doors—so-called “heads in beds.” Prior studies on executive pay in assisted living found that better pay is strongly correlated with the number of rooms, at a price of an additional $550 in earnings for every bed.
The volume makes a difference, and high-margin volume counts particularly for the bottom line, according to the fundamental financial model that moves the nonprofit assisted living terrain.
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The Assisted Living Facility’s Location
New York, and New Jersey, as well as Pennsylvania, had the highest median president/CEO salaries, accompanied by Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
The area with the lowest overall average included Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming, however, statistics for 2 of the nine regions were insufficient. Of the 16 states with enough records, Massachusetts had the best average annual salary for presidents/CEOs and North Carolina had the least.
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Complimentary Services Available in the Assisted living
The type of facility as well as other complimentary services provided by the assisted living facility are also crucial factors in determining how much revenue an assisted living facility CEO earns. It is critical to note that residents of assisted living facilities typically have some form of impairment or illness.
This could be old age, cognitive impairment, a severe or long-term mental/psychiatric disorder, severe impairment, or a combination of disabilities. They may require ongoing or reinforced help and support to accomplish everyday tasks like taking prescription drugs, preparing meals, grocery shopping, making calls, doing daily exercises, and so on.
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Management Style
The style of management of the assisted living facility is also another important element that will impact the revenue an assisted living facility CEO is likely to earn each year. It is imperative to note that the results you will get as a brilliant leader will be completely different from those of a facility with a poor leadership style.
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The Assisted Living Industry’s Business Strategy
There are various business strategies that a CEO of an assisted living facility could indeed take, and each one will produce varying results. For example, the CEO of an assisted living facility might want to operate from one site, or they might choose to go into franchising and partner with health facilities, charitable organizations, etc.
In principle, a well-organized Assisted living CEO who collaborates with other executives will undoubtedly generate more revenue and net profit than an Assisted living CEO who runs from a single location.
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The Advertising and Marketing Strategies Used by Assisted Living Facilities
One more important thing that determines how much profit an Assisted living CEO could indeed make per year is branding and promotion techniques. There are various marketing and promotional techniques that could assist a business in increasing its revenues and profits.
The CEO of an assisted living facility who engages in intense marketing and promotional efforts will end up making more revenue than the CEO of an assisted living facility who is conservative in its sales and promotions.
Conclusion
There are a lot of other factors that affect how much an Assisted Living Facility CEO earns. However, according to salary data comparisons, assisted living CEOs earned less than their contemporaries at continuing care retirement communities as well as nursing homes.
The typical annual salary for CCRC CEOs was $171,842. Upper-edge nursing home executives were paid an average of $120,173 per year.