Executive Compensation at Atlantic Health System (2017)

Atlantic Health System is a nonprofit healthcare system in New Jersey that includes five medical centers, a children’s hospital, a hospice and home care organization, rehabilitation center and 600 community-based providers from the affiliated Atlantic Medical Group.

The Atlantic Health System Group IRS Form 990 return (2017) reports the organization had 17,573 employees who were compensated $1.322 billion, which equates to an average compensation of $75,200.  2,602 employees received more than $100,000 in compensation with the 43 most highly compensated employees listed below:

• $2,715,543:  Brian Gragnolati, President and CEO
• $1,442,848:  Kevin Lenahan, SVP-CFO and Admin Officer
• $1,238,181:  Steven Sheris, PAMG-Trustee/Officer SVP
• $1,134,513:  Jan Schwartz-Miller, SVP – Chief Medical and Academics
• $1,119,674:  Alan Lieber, President – OMC
• $1,044,397:  Paul Starker, Chairman, Dept of Surgery
• $1,026,882:  James Gardner, Physician
• $1,013,938:  Rolando Rolandelli, Chairman, Dept of Surgery
• $1,011,443:  Amy Perry, SVP – Delivery and CEO, Hospital Division
• $1,001,918:  Patricia O’Keefe, President, MMC
• $  899,181:  Mark Widmann, Physician
• $  896,901:  Joseph DiPaolo, President, NMC
• $  891,005:  Eric Whitman, Physician
• $  854,259:  Shashidar Reddy, Physician
• $  820,960:  Stephanie Schwartz, President CMC
• $  787,116:  Walter Rosenfeld, PAMG (Practice Associates Medical Group) – Trustee/Officer
• $  783,662:  Sheila O’Halloran, VP Ass’t General Counsel
• $  736,970:  John Halperin, Director MD
• $  701,415:  Kimberly Simensen, SVP System and Network Planning (terminated 12/7/17)
• $  674,978:  Joseph Wilkins, SVP Chief Trans Officer
• $  581,545:  Steve Masser, Trustee – AHS
• $  573,851:  Katherine Driebe, VP – Finance
• $  568,873:  Federico Cerrone, PAMG – Trustee
• $  575,599:  Greg Mulford, PAMG Physician
• $  544,669:  Nichell Sumpter, SVP – Chief HR Officer
• $  542,119:  Linda Gilligan, PAMG – COO & Secretary
• $  539,604:  Karen Flaherty-Oxler, SVP – Chief Nursing/Pat Off
• $  513,024:  Chris Zipp, PAMG – Trustee
• $  512,365:  Peter Bolo, PAMG – Trustee
• $  473,852:  Joseph Ramieri, Chairman, OBGYN Dept.
• $  465,947:  Thomas Zaubler, PAMG – Trustee
• $  454,273:  Andrew Kovach, VP HR (terminated 9/30/15)
• $  444,054:  Veronica Daly – Trustee – AHS
• $  413,480:  Samantha Pozner, PAMG – Trustee
• $  377,675:  Jason Coe, President HMC (terminated 3/31/17)
• $  357,361:  Brenda Matti-Orozco, PAMG – Trustee
• $  321,186:  Christopher Herzog, PAMG – CFO and Treasurer
• $  310,905:  Joseph Cirello, PAMG – Trustee
• $  309,851:  Deborah Zastocki, Former President CMC Team (terminated 8/1/15)
• $  282,393:  James Smith, Director – Atlantic Ambulance
• $  268,988:  Alan Meltzer, PAMG – Trustee
• $  185,615:  Kenneth Janowski, CMO HCH (terminated 1/10/17)
• $  137,500:  Clifford Sales, Former Trustee

29 of the 43 (67%) most highly compensated employees are male while 14 of the 43 (33%) are female. 7 of the 10 most highly compensated employees are male while 3 are female.

Atlantic Health System paid for tax indemnification and gross up payments. Specifically, the organization paid for and/or provides life insurance premiums and long term disability premiums and executive health phsycial examinations for certain officers, directors and key employees Such payments made on behalf of these individuals are generally grossed up and inputed and included as taxable compensation in their respective W-2’s The organization provided the following individuals with Executive Physical Exams during 2017 with the following estimated value:

• Nichell Sumpter $7,500
• Joseph DiPaolo $7,500
• Kevin Lenahan $7,500
• Joseph Wilkins $7,500
• Linda Gilligan $7,500

The organization provided the following individuals with additional Basic Long Term Disability, Supplemental Long Term Disability, Life Insurance and Long Term Care. The value of these premiums indicated below were included in each of the individual’s 2017 W-2 as taxable compensation

• Joseph DiPaolo $19,718
• Katharine Driebe $1,340
• Karen Flaherty-Oxler $40,095
• Brian Gragnolati  $17,242
• Kevin Lenahan $21,584
• Alan Lieber $20,927
• Sheilah O’Halloran $39,937
• Patricia O’Keefe $38,778
• Amy Perry $38,816
• Stephanie Schwartz $22,955
• Jan Schwarz Miller $28,168
• Steven Sheris $35,674
• Nichell Sumpter $15,037
• Joseph Wilkins $34,269

The Form 990 (2017) also reports the following information about employees who received compensation but were not employed at the organization:

Andrew Kovach:   In accordance with a Separation Agreement Effective as of October 1, 2015 (the Separation Date), Mr. Kovach’s employment with Atlantic Health was terminated The terms of the agreement are as follows:   Atlantic Health will pay Mr. Kovach $24,000 bi-weekly byway of regular payroll check on Atlantic Health’s regular pay day for 104 weeks until employee receives the total sum of $1,248,000.  Mr. Kovach received $456,000 in severance pay during 2017.

Deborah Zastocki:  In accordance with a Separation Agreement Effective August 1, 2015 (the Separation Date), Ms. Zastocki’s employment from Atlantic Health was terminated.  Atlantic Health will pay Ms. Zastock $20,258 bi-weekly by way of regular payroll check on Atlantic Health’s regular pay day for 104 weeks until employee receives the total sum of $1,053,400.  Ms. Zastocki received $309,851 in severance pay during 2017

Jason Coe:  In accordance with a Separation Agreement Effective as of March 31, 2017 (the Separation Date), Mr. Coe’s employment with Atlantic Health was terminated The terms of the agreement are as follows Atlantic Health will pay Mr. Coe $12,689 66 bi-weekly by way of regular payroll check on Atlantic Health’s regular pay day for 78 weeks until employee receives the total sum of $494,896. Mr. Janowski received $168,788 in severance pay during 2017.

Kimberly Simensen:  In accordance with a Separation Agreement-Summary of Separation Transactions Effective as of December 2, 2017 (the Separation Date), Ms. Simensen’s employment with Atlantic Health was terminated The terms of the agreement are as follows Atlantic Health will pay Ms. Simensen $17,827  bi-weekly by way of regular payroll check on Atlantic Health’s regular pay day after December 10, 2017 for 52 weeks until employee receives the total sum of $463,505.  Ms. Simensen received $17,827 in severance pay during 2017.

In 2017, the organization paid $9,385,883 to Medemerge for “performance” which is not detailed. John Pilla, a board member and Trustee of PAMG is a 76% owner physician partner of Medemerge.

Margaret Sacco, the wife of John Scian, a board member and trustee of AHS, was paid 449,061 for “performance” which is not detailed.

To read the IRS Form 990 (2017), click here.