The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.

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The managerial expertise model argues that executives with high levels of specialized skills and knowledge may be paid more than their peers in order to attract and retain their talents. This can apply to non-profit hospitals as well, where executives need to have a deep understanding of healthcare regulations, financial management, and other specialized areas. As a result, it is possible that the executives of non-profit hospitals may be overcompensated relative to other non-profit organizations or industries.

The Managerial Expertise Model Helps to Explain Why Executives of Non-Profit