2004 materials managers salary survey: Breaking down dynamics

Healthcare Purchasing News, July, 2004 by Jeannie Akridge

Region

HPN's 2004 survey shows much closer salary averages across the regions of the U.S. Those that work on the Pacific coast just slightly beat out those in the Northeast at $64,526 and $64,458 respectively. This year's figures for the Central region dropped to $57,927 from $70,069, but still were up from 2002 figures. The Mountain region remains the lowest compensated at $55,263, which is still a significant rise from previous years.

Incidentally, the highest averages by state were seen in Nebraska ($167,500) and Rhode Island ($129,500), yet both had just one respondent each. Maryland, with four respondents, reported an average salary of $105,750. Much lower averages were found in the states of Alabama (3 respondents, for an average of $21,910), Arizona (3 responses, $24,367 avg.), New Hampshire (2 responses, $30,000 avg.), Kentucky (2 responses, average $37,600, and Florida (25 responses, average $38,004).

Once again, those that worked in urban areas made more than suburban-located facilities, which made significantly more than those in rural hospitals.

Other points of Interest:

* The average age of respondents was 45 years old, compared to 47 in 2003.

* 90% of respondents said they felt "very secure" or "somewhat secure" in their jobs.

* The number of hospitals in which those surveyed had direct materials management responsibility for stayed the same as for 2003 at 3.2.

* The number of non-acute facilities for which the respondent's department had direct materials management responsibility rose to 9.5 in 2004 from 9.0 in 2003.

* 58% of respondents surveyed said that OR (a new category for 2004) reported directly to materials management.

Materials Management
Purchasing Indicators

Which functions report directly to
the materials management
department in your hospital(s)?

Sterile processing                   28%
Receiving                            85%
Distribution                         83%
Pharmacy                              4%
Print Shop                           44%
Environmental Services                7%
LAB                                   6%
Purchasing                           79%
OR                                   58%
Laundry                              26%
Central transport (e.g., patients,
 materials, lab specimens)           18%
Housekeeping                          8%
Patient transport only                9%
Non-patient transport only           14%
Mailroom                             47%
Security                              5%

Please indicate the product areas
for which supplies are purchased
by your department

OR supplies/equipment                     83%
Med/surg supplies                         85%
Medical capital equipment                 81%
Nonmedical capital equipment              76%
Pharmaceuticals                            6%
Imaging,X-ray film and related supplies   67%
Plant operations/maintenance supplies     56%
Lab equipment and related supplies        64%
Food                                      11%
Nonfood dietrary supplies                 44%
Office supplies and forms                 74%
Housekeeping supplies                     70%
Transportation                             7%

Please indicate the areas for
which your department directly
manages inventory

Storeroom                      90%
Nursing floors                 72%
Operating room                 52%
Emergency room                 56%
Cath lab                       21%
Laboratory                     18%
Radiology                      26%
Dietary                         5%
Biomed                          5%
Plant operations/maintenance    6%
OR                              4%

Materials professionals report to:

VP/Director support services    22%
Director, material management   15%
Purchasing director              3%
Corporate director, material
management (for integrated]
health network)                  6%
CEO                              8%
CFO                             35%
COO                              8%

Note: Table made from pie chart.

Region vs. salary

Mountain    $55,263
Pacific     $64,526
Central     $57,928
Southeast   $59,966
Northeast   $64,459

Salary vs. gender

Male     $66,190
Female   $49,428

Note: Table made from bar graph.

Salary vs. number of beds

Beds less than 100   $44,138
Beds 100-199         $54,037
Beds 200-299         $61,061
Beds 300-399         $71,729
Beds 400-499         $68,714
Beds 500-749         $66,514
Beds 750-999         $65,167
Beds 1000-1999       $74,497
Beds over 2000       $89,565

Note: Table made from bar graph.

Salary vs. years of experience

1-5            $48,269
6-10           $52,107
11-15          $52,003
16-20          $61,320
21-25          $78,953
more than 25   $65,639

Note: Table made from bar graph.

Salary vs. urban environment

Urban-average 580 beds      $63,698
Suburban-average 466 beds   $61,911
Rural-average 149 beds      $55,111

Note: Table made from bar graph.

Salary vs. education

Post-graduate degree(s)   $73,248
Bachelor's degree         $60,518
Associate degree          $56,844
High School               $51,851

Note: Table made from bar graph.