SUPPLY CHAIN COMPENSATION SURVEY
the director/manager level exceeded the $100,000 threshold. Granted, this can be attributed in part to cost-of-living concerns and the geographic location and organization type of the respondent. At the same time, the survey found the average annual salary for Value Analysis leaders poked through the 100,000 level for the first time. Further, more than 61% of respondents
said their 2021 salary increased from the prior year – the average being a 3.2% rise – and most respondents (88%, the survey showed) attributed the increase to job performance alone. More than 95% feel rather secure in their positions (51.5% “very secure” and 44.1% “somewhat secure”).
These data seem to indicate a need for and value of the supply chain and value analysis functions during a time of crisis and height- ened demand for products and services. Several supply chain leaders agree. “There is no doubt in my mind that the pandemic highlighted both the fragility and the importance of the global healthcare sup- ply chain,” Shaun Clinton, CMRP, Senior Vice President, Supply Chain Management, Texas Health Resources, Arlington, TX, told HPN. “I think we will continue to see a trend where salaries will continue to rise – probably not quickly enough – as organizations look to attract top talent in roles now seen as critical to business continuity. It maybe didn’t feel like it every day in 2020, but it really is a great time to be in supply chain!” Brian Dolan, CMRP, CRCST, LSSGB, Vice President, Resource Management, Bayhealth Medical Center Inc., Dover, DE, remains equally as sanguine. “The profession will continue to see growth in compensation as the value of the supply chain is continuing to be boosted by new needs in the organization,” Dolan noted. “As the supply chain is seen to be more a strategic asset, and closer ties are illustrated to the IHI quadruple aim, we will see these roles demand higher education, certification, and expertise – thus, compensation increases. The pandemic was a catalyst for some organiza- tions that did not know the value proposi- tion. Still, many were already down the path towards advancing the supply chain
to the C-suite. The return on investment and return on quality are significant drivers. As our profession becomes more vocal and assists their hospital administration in seeing the value proposition, we will continue to see escalations in the compensation models used today. Our profession’s identity is still forming and needs continued focus and standardization in practices to solidify our stance nationally.”
Dolan’s organization earned HPN’s 2021 SPD Department of the Year last month. Value Analysis Evangelist Barbara Strain,
CVAHP, Principal, Barbara Strain Consulting LLC, Charlottesville, VA, urges supply chain leaders and pros into action – even amid the pandemic.
“On a personal as well as professional/ organizational level, seize the moment cre- ated by the pandemic,” Strain said. “Who or what department stepped up, how were problems solved, were new collaborations made, were processes improved? The list is long. or the past year healthcare influ- encers have been saying, ‘don’t let a good pandemic go to waste.’ Next to clinicians and physicians, Supply Chain, Value Analysis, Purchasing and Contracting have been like the duck holding their head high while their feet are paddling madly to get to where they need to go. New department structures, roles and salaries should be top of mind.” Still, Mary Starr, Vice President, Member Care, Greenhealth Exchange, who has expe- rience as a hospital supply chain executive and a group purchasing organization (GPO) executive, questions the singularity of some- thing like the pandemic affecting compensa- tion levels, and in turn, points to a duality. “There likely isn’t a single factor causing either the average salary gains or the feel- ing of job security,” Starr indicated. “But I think two major factors impacting salary are consolidation and a higher profile/value recognition for the supply chain leadership position. The industry recognizes that real cost savings is not about getting a few pennies off of your gadgets, but instead working with clinicians to calculate costs and quality that are measured by improved outcomes. This approach entails a high skill set, and there-
SALARY BY TITLE AND EDUCATION Director/Manager, Materials/Supply Chain Management Purchasing Director/Manager
Senior Buyer/Buyer/Purchasing Agent
Executive/Senior/Corporate VP, Materials/Supply Chain Management/Support Services
Value Analysis Director/Manager/Coordinator O.R. Materials Manager/Business Manager COO/Chief Purchasing Supply Chain Officer Administrator/President/CEO
High School $80,208
$53,194 $42,368 N/A
$65,833 $48,125 $240,000 N/A
fore, requires a higher salary. I also think the same is true for a value analysis position. But I would add that in the future, value analysis will be the area that really stretches skill sets when components such as environmental, social and community impacts are elevated in importance and become more integrated into hospital performance measures.”
Hospital type, general location Data consistently show that the higher- compensated Supply Chain executives and professionals seem to entrench themselves at larger urban not-for-profit hospitals on either coast, followed by suburban not-for-profit hospitals and then investor-owned facilities with government facilities inserted for good measure. (See the charts and graphs on “SALARY BY REGION” on page 56.) Some of that may be due to for-profit hospitals comprising a small percentage of the overall hospital market. But surely the pandemic plays a role?
Experts remain mixed. “The larger centers make a more significant investment in the supply chain as its value proposition is more apparent to executives,” said Bayhealth’s Dolan. “Their size allows for the scale of the roles to dictate higher compensation levels. A strong supply chain equally benefits all entities. Still, it appears in the market that larger urban organizations focus more on the supply chain. “With the shift in focus to nonacute [and] telehealth, the supply chain will focus on more robust distribution networks and tighter controls,” Dolan continued. “This will evolve the necessary expertise for the supply chain professional to think about the continuum of care versus solely [within] the hospital walls. This was always present, but COVID did reflect an increased need to develop critical competencies in these areas. I do not think it will affect the compensation level but will create different roles [with] more focus on procurement/sourcing and distribution/planning.” Strain acknowledges that generally, the location of the job influences salary more than any other reason. But not always.
Associate's $80,416
$80,000 $51,785 N/A
$57,500 $74,642 $57,500 N/A
Bachelor's Post-Graduate $104,901
$83,750 $60,227 $162,916
$117,500 $85,000 N/A N/A
Page 56
$131,439 $126,875 $92,500 $193,636
$107,666 $82,500 $240,000 $185,000
hpnonline.com • HEALTHCARE PURCHASING NEWS • June 2021 55
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