Worcester Business Journal

wbjournal.com | January 6, 2020 | Worcester Business Journal 11 David Torchiana Partners Healthcare, Boston $6,128,086 Normand Deschene Wellforce, Burlington $2,772,550 Peter Slavin Massachusetts General Hospital, Boston $2,595,649 Elizabeth Nabel Brigham and Women's Hospital, Boston $2,579,912 Keith Hovan Southcoast Health System, New Bedford $2,018,111 Mark Keroack Baystate Medical Center, Springfield $1,921,656 Kevin Tabb Beth Israel Lahey Health, Boston $1,798,497 Kate Walsh Boston Medical Center $1,729,874 Jody White Lowell General Hospital $1,253,105 Dianne Anderson Lawrence General Hospital $794,618 Name Hospital/hospital system Total compensation Note: Total compensation is from the most recent year available. Source: U.S. Internal Revenue Service filings, via ProPublica Massachusetts hospital CEO pay Outside of Central Massachusetts, here are some of the highest-paid hospital and hospital system CEOs in Massachusetts. UMass Memorial Health Care, Worcester 2017 $14,678,808 $7,304,760 $952,116,828 14,152 $163,609,944 Five-year change -52.5% -14.9% -2.5% -7.7% Reliant Medical Group, Worcester 2016 $8,022,354 $4,367,898 $192,632,424 2,978 $2,955,084 Five-year change 11.8% 3.9% 20.0% 25.9% Fallon Health, Worcester 2017 $6,527,473 $3,060,518 $60,270,981 1,337 -$2,162,814 Five-year change -18.3% -7.9% 2.6% 9.1% Milford Regional Medical Center 2017 $885,644 $1,848,151 $96,884,870 2,088 $48,413,719 Five-year change -46.2% -31.7% 18.0% 13.2% Harrington Hospital, Southbridge 2017 $2,052,031 $2,555,714 $61,124,223 1,580 $55,771,001 Five-year change 36.2% 14.1% 14.5% 14.4% Heywood Hospital, Gardner 2017 $2,246,547 $3,188,825 $52,220,958 1,191 $20,714,452 Five-year change -2.4% 37.8% 21.8% 8.6% Kennedy Community Health Center, Worcester 2017 $856,101 $1,006,952 $16,039,050 423 $2,554,546 Five-year change -21.9% 2.6% -0.3% 5.2% Family Health Center of Worcester 2017 $1,164,756 $1,111,747 $19,950,743 544 $4,295,113 Five-year change 40.8% 11.5% 24.5% 21.2% Combined Total of Combined compensation for salaries for Combined compensation for five highest-paid non-executive Total five-year net Organization Year all executives employees* employees employees income/loss *May include physicians who are not administrators. Notes: Year refers to fiscal year, although some entities' accounting calendars align with the calendar year. Reliant became part of a for-profit entity that year and did not report for the full year in 2017. Reliant's growth includes its merger with Southboro Medical Group in 2015. Source: U.S. Internal Revenue Service filings, via ProPublica Central Mass. health workforces & pay Eight major Central Massachusetts health nonprofits have shown uneven employee growth and compensation — among both all workers and executives — during a time of otherwise growing employment in the health sector. more staff in the last five years. Milford Regional Medical Center has also sharply cut executive payroll, from more than $2 million to under $900,000 in one year. at comes as the hospital's workforce rose 13%. e Milford hospital had an 11% increase in patient discharges during that five-year period, according to the Massachusetts Center for Health Information and Analysis. In all, health care and social assistance jobs in Central Massachusetts grew 11% through 2017, keeping pace with growth across the state. But thanks to UMass' cuts in recent years, total employment at eight major health nonprofits analyzed by the WBJ actually fell slightly, by 1%. at loss was driven entirely by UMass Memorial. Other centers have beaten the region and state's pace for an expanding healthcare industry. e Family Health Center of Worcester, for example, has grown its workforce by more than one-fih. Harrington Hospital in Southbridge has 14% more employees during that time. Lou Brady, Family Health Center's CEO, said the facility has simply grown to meet demand for patient care. e Family Health Center works oen with patients who don't speak English fluently or are homeless or battling addiction – areas requiring intensive services. "We've needed to increase our providers and clinicians and support staff to keep pace with that need," Brady said. "We actually need more [employees]." For Harrington, the increase in employee count comes as the hospital expanded its emergency department in Webster and opened an urgent care center in Charlton. Harrington was awarded state grants for behavioral Winfield Brown, Heywood Hospital Edward Kelly, Milford Regional Medical Center health initiatives allowing for a new patient navigator program and expanded outpatient services. UMass Memorial's 8% drop in employee count came during a roughly 5% drop in patient discharges at UMass' Worcester campuses, a measure of less patient utilization during that time. In the five years since Dickson took over as CEO at UMass Memorial, the healthcare system had a five-year net income of $164 million. But the system has reported fiscal constraints since then, including from lower Medicaid reimbursements and higher employee salary and retirement costs. With those constraints in mind, UMass has acted accordingly. In 2018, UMass eliminated a broad range of services: endoscopy services at Clinton Hospital, Plumley Village Health Services in Worcester, an inpatient pediatrics unit and a cardiac rehabilitation unit in Leominster and an urgent care center in Fitchburg. In December, it announced it sold its stake in a pharmacy management unit for $263 million. UMass Memorial is not expecting further cuts in this coming year, Melgar said, expecting a continued uptick in patient count. e system has nurse and doctor vacancies it is looking to fill. Top executives still making millions While the major Central Edward Moore, Harrington Hospital Antonia McGuire, formerly of Kennedy Community Health Center Massachusetts healthcare organizations have trimmed executive pay, health organizations, wanting to draw and keep top talent, have continued to pay their top official well. Dickson, of UMass Memorial, has gotten raises of more than $200,000 each year since he was promoted to the group's top position in 2013. He made nearly $2.3 million in 2017. John O'Brien, his predecessor, took home $3.5 million in his final year. Patrick Muldoon, then the president of UMass Memorial Medical Center, had a more than doubling of his compensation in a five-year period through 2017, when he took home $1.5 million. (His successor, Michael Gustafson, took over in 2018, a period for which data isn't yet available.) Compensation for Fallon Health's president and CEO, Richard Burke, doubled to nearly $1.1 million in two years' time from when he first took on the post on an interim basis. His predecessor, Patrick Hughes, twice made more than that amount in the final years of his tenure. Frances Anthes, formerly of Family Health Center of Worcester W

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