I think in the NP setting, the Board is substantially involved. Fair compensation may be determined by community/regional surveys of individuals in similar-situated positions in similar geographic locations.

For example, the VP of Nursing for a 500-bed hospital in Manhattan would typically be expected to earn more than the VP of Nursing of a 100-bed hospital in Cheyenne, Wyoming. Several consulting companies crunch the economic data and account for the variations in position. My law firm routinely engages these companies to ensure that our clients (hospitals) are paying salaries that are fair market value to physicians. These companies can provide extensive compensation data for non-physician positions as well.

Hope this helps.

Thanks for the information Dougals. I have somewhat of an " odd " question, will a rural NP organization ever consider observing a metropolitan based compensation package for a Senior Management position if the NP is experiencing difficulty placing an individual in the position? Will they be willling to spend premium dollars on this individuals salary if the NP can afford to do so?

Cayle Guillory

Cayle, If the resources are available and their strategic mission is such that they can justify a higher than market value, then I would venture to say yes they would pay for the right person to fill a position. To Douglas' point, however, the market values will vary greatly from a rural NP to an urban NP. Therefore the "premium" range would be great.