Executive Compensation at Mass General Brigham
Partners HealthCare – a non-profit, tax-exempt – healthcare provider with 16 member institutions that include hospitals, medical centers, urgent and emergency care facilities, community health centers, physician and rehabilitation networks, a teaching organization, health insurance plan, and more in the Boston area changed its name to Mass General Brigham (taking the name of two premier hospitals: Massachusetts General and Brigham and Women’s) in November, 2019.
With an estimated 78,000 employees, Mass General Brigham is the largest private employer and healthcare provider in Massachusetts. The Mass General Brigham has dozens of related and affiliated tax-exempt organizations and several taxable as a corporation, partnership, or trust (see Schedule R of the Form 990’s).
This post only addresses the executive compensation reported on the Form 990 (2017) for Partners Healthcare System, Inc. (the former name) for the year ending September 30, 2018. Key information about this entity is summarized as follows:
- Total revenue was $1.3 billion, most of which came from three sources: administrative fees ($871 million), related organizations ($284 million), and gains and investment income ($162 million).
- Expenses totaled $1.1 billion (not including $76 million in depreciation), most of which came from 5 categories of expenses: compensation ($568 million), interest ($205 million), office-related expenses ($132 million), fees for services ($75 million), and grants ($74 million).
- Net assets are a negative $486 million, which is down from the start of the year ($632 million) because they did not spend as much as the organization received.
Compensation was the largest expense for Mass General Brigham. 7,428 employees received $568 million, which equates to an average compensation of $76,500. The 18 most highly compensated employees were reported to be:
- $6,128,085: David F Torchiana, President and CEO
- $5,345,691: Peter K Markell, Treasurer
- $2,767,233: John R Barker, Chief Investment Officer
- $2,025,438: Gregg S Meyer, Chief Clinical Officer
- $1,362,306: Joseph Cabral, Chief HR Officer (until 12/14/17)
- $1,271,017: Elizabeth L Baldwin, Portfolio Manager
- $1,064,231: Christopher Mark Coburn, Chief Innovation Officer
- $1,032,767: Anne Klibanski, Chief Academic Officer
- $1,032,359: James W Noga, VP and CIO
- $1,015,919: David W Rattner, Director (as of 7/1/18)*
- $ 922,274: Katherine L Kamm, Portfolio Manager
- $ 871,276: Sean T Blatchley, Portfolio Manager
- $ 818,924: Roger Kitterman, VP
- $ 579,134: Rosemary R Sheehan, Chief HR Officer (as of 5/1/18)
- $ 567,169: Jerrold Rosenbaum, Director (until 6/30/18)*
- $ 536,806: Yolonda Lorig Colson, Director (until 7/1/18)*
- $ 414,525: Kathryn Britton, Director (until 6/30/18)
- $ 210,494: Maureen Goggin, Secretary
11 of the 18 (61%) most highly compensated employees are male while 7 of the 18 (39%) are female.
Mass General Brigham paid for first class or charter travel and companion travel. See Schedule J of the Form 990 (link at the end of the post) for more details.
The following employees participated in a supplemental non-qualified retirement plan:
- $2,193,186: David F Torchiana
- $ 567,803: Gregg S Meyer
- $ 411,586: Peter K Markell
- $ 149,607: James w Noga
86 independent contractors received more than $100,000 in compensation. The 5 most highly compensated were reported to be:
- $36,768,052: Accenture LLP, of Chicago, IL for consulting services
- $24,070,000: McKinsey & Co, of Boston, MA for consulting services
- $21,220,517: Randstad, of Philadelphia, PA for staffing services
- $17,390,032: Suffolk Construction Company, of Danvers, MA for construction services
- $ 3,275,531: Health Catalyst, of Salt Lake City, UT for technology services
How is it that Mass General Brigham has a President and CEO who was compensated more than $6 million and 9 other executives that received $5.3 million – $1 million, and still needed two consultants: Accenture and McKinsey for more than $60 million in consulting?
To read the IRS Form 990 (2017 for the year ending September 30, 2018), click here.
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