Executive Compensation at the New York and Presbyterian Hospital
New York and Presbyterian Hospital (NYPH) – a non-profit, tax-exempt 501 (c) (3) hospital – is often referred to as New York-Presbyterian Hospital. But, the NYPH actually consists of 7 hospitals/medical centers. A teaching hospital in New York City, NYPH is affiliated with two medical schools (Columbia and Weill Cornell) and is part of the New York-Presbyterian healthcare network that includes three other divisions:
- New York-Presbyterian Regional Hospital Network: 3 hospitals
- New York-Presbyterian Physician Services: the medical groups
- New York-Presbyterian Community and Population Health: ambulatory care and community health
The entire organization consists of dozens of non-profit, tax-exempt organizations. This post addresses the executive compensation at the NYPH. Key information about NYPH, as disclosed on the Form 990 (2017) submitted to the IRS, includes the following:
Total revenue was $5.7 billion, most ($5.3 billion) of which came from patient care.
Total expenses were $5.3 billion (including $291 million in depreciation). The four largest expenses were compensation ($3.2 billion), medical supplies ($883 million), office-related expenses ($443 million), and fees for services ($315 million).
The difference between total revenue and total expenses is about $412 million, which was added to the general fund (which some people refer to as the endowment). At the beginning of 2017, the general fund balance was $5.8 billion. After adding the excess revenue ($412 million), unrealized gains on investments ($46 million), and other changes in net assets – primarily changes in beneficial interest in temporary net assets held by a related organization and changes in the fair market value of alternative investments ($658 million), the general fund balance was $6.9 billion at year-end: an increase of $1.1 billion in one year.
28,938 employees received $3.2 billion in compensation, which equates to an average compensation of $110,000. However, only 7,274 received more than $100,000 in compensation. The 35 most highly compensated employees were:
- $7,407,452: Steven J Corwin, President and CEO, Trustee
- $3,750,857: Laura Forese, EVP, COO
- $3,271,712: Maxine Frank, EVP, CLO, and General Counsel
- $2,505,102: Andria L Castellanos, Group SVP and COO NYP/Columbia
- $2,470,722: Phyllis R Lantos, EVP, CFO, and Treasurer
- $2,346,371: Herbert Pardes, Executive Vice Chairman
- $2,001,817: Dov N Schwartzben, SVP Finance
- $1,740,749: Wilhelmina Manzano, SVP, Chief Nursing Officer
- $1,651,173: Gary J Zuar, SVP Finance
- $1,514,302: Emma Deland, SVP, Chief Strategy Officer
- $1,494,984: Daniel J Barchi, SVP, CIO
- $1,449,106: William Lee, SVP, Chief Investment Officer
- $1,444,483: Susan Mascitelli, SVP Patient Services and Liaison to Board
- $1,397,887: Jaclyn Mucana, President, Queens
- $1,340,583: Michael Nochomovitz, SVP, Ch Clin Integration Network
- $1,327,689: Richard Leibowitz, President, Brooklyn Methodist
- $1,276,633: Michael P Breslin, SVP Finance
- $1,211,294: Karen Westervelt, SVP, COO Regional Network Hospital
- $1,184,581: Cam Patterson, SVP, COO NYP Weill Cornell
- $1,163,474: Henry Ting, SVP, Chief Quality Officer
- $1,061,267: Kerry S Dewitt, SVP Community/Ext Rel/COS to President
- $1,057,059: Joseph Ienuso, Group SVP Facilities and Real Estate
- $1,040,380: William J Farrell, SVP Finance
- $ 974,216: Sarah L Avins, SVP, Chief Development Officer
- $ 956,856: Shaun E Smith, SVP, Chief HR Officer
- $ 925,056: Paul N Casale, Executive Director – NY Quality Care and Associates CMO
- $ 883,268: Paul J Dunphey, SVP, COO NYP Allen
- $ 882,701: Maurice E Labonne, SVP Facilities and Real Estate
- $ 873,652: David Alge, SVP Community and Population Health
- $ 860,442: Craig T Albanese, SVP, COO MSCHONY SLOANE
- $ 793,655: Anthony P Dawson, Former Key Employee
- $ 580,689: Mark E Larmore, Former Officer
- $ 466,254: Robert E Kelly, Former Officer
- $ 457,956: Kathleen Burke, VP Bd Rel, Secy Asso Gen Council
- $ 231,425: Kevin Hammeran, Former Key Employee
23 of the 35 (66%) most highly compensated employees are male while 12 of the 35 (34%) are female. 6 of the 10 most highly compensated employees are female while 4 are male.
NYPH paid for first class or charter travel. Specifically, business class for trips greater than 4 hours is allowed. The CEO, President, and EVP’s are authorized first class if business class is not available. For others, first class requires prior authorization.
NYPH paid for a personal residence for personal use or provided a housing allowance. Specifically, NYPH provides a monthly housing allowance to certain executives to the “extent and nature of their responsibilities.”
NYPH paid for personal services. Specifically, NYPH provided transportation to certain executives to the “extent and nature of their responsibilities across various physical locations in so far as necessary.”
Severance pay was paid to the following:
- Andria Castellanos received $282,692.
- Maurice Labonne received $258,462.
- Henry Ting receieved $497,942.
- Anthony Dawson received $490,385.
- Kevin Hammeran received $218,615.
- Mark E Larmore received $440,000.
The following employees participated in the supplemental non-qualified retirement plan:
- Steven Corwin: $88,645
- Laura Forese: $213,319
- Wilhelmina Manzano: $31,388
- Dov Schwartzben: $64,938
- Jaclyn Mucaria: $23,596
The following employees had the amounts shown from their supplemental non-qualified retirement plan reflected on their W-2’s:
- Herbert Pardes: $225,841
- Steven Corwin: $2,045,724
- Laura Forese: $432,403
- Maxine Frank: $1,161,764
- Phyllis Lantos: $114,653
- Andria Castellanos: $97,753
- Emme Deland: $451,664
- Wilhelmina Manzano: $474,805
- Susan Mascitelli: $191,037
- Dov Schwartzben: $235,136
- Gary Zuar: $469,937
- Jaclyn Mucaria: $185,632
- Mark E Larmore: $131,266
- Robert Kelly: $466,254
Coatue Management, whose founder and CEO is Philippe Laffont (and also a trustee of NYPH, received $362,339 in investment fees.
Comprendo Digift, whose controlling interest is held by Arthur Sandberg, a trustee of NYPH, received $100,000 for business services.
196 independent contractors received more than $100,000 in compensation. The five highest were:
- $219 million: Turner Construction Company of New York, NY for construction
- $ 32 million: Bovis Lend Lease of New York, NY for construction
- $ 27 million: The Seiden Group of New York, NY for advertising
- $ 24 million: AMN Healthcare, Inc of Chicago, IL for nurse staffing
- $ 23 million: Hunter Roberts Construction of New York, NY for construction
To read the IRS Form 990 (2017), click here.