Executive Compensation at Harvard Medical at Beth Israel

Harvard Medical School – a part of Harvard University – operates in conjunction with eight teaching hospitals and other medical service providers in the Boston area (unlike most medical schools who are affiliated with a single hospital). One of the hospitals is the Beth Israeli Deaconess Medical Center which is often referred to as Beth Israel.

This post addresses the information reported on the Form 990 (2018 for the year ending September 30, 2019) by an entity known as Harvard Medical Faculty Physicians at Beth Israel Deaconess Medical Center, Inc.,  (HMF Beth Israel) a tax-exempt, non-profit 501 (c) (3) that reported total revenue of $553 million in 2019, most of which came from two sources:  patient and other medical services ($476 million) and research and training ($73 million).

Expenses totaled $544 million with the largest expense reported to be compensation ($461 million) for the 1,440 employees (which equate to an average compensation of $320,000.  1,184 employees (82%) received more than $100,000 in compensation with the 27 most highly compensated reported to be:

• $1,900,657:  Kevin Tabb, Director*
• $1,264,340:  Kamal Khabbaz, Doc Clinical Research Mgmnt Assoc Professor
• $1,240,744:  Jorge Arroyo, Doc Mgmnt  Research Assoc Professor
• $1,219,490:  Elliot L Chaikof, Director, Surgery Chair*
• $1,143,287:  Tamara Rozental, Doc HMS FT Asst Professor
• $1,057,458:  Bernard Lee, Doc Clinical Research Mgmnt Professor
• $1,031,931:  Samuel Lin, Doc Clinical Research Mgmnt Assoc Professor
• $  987,451:  Alexa B Kimball, Director, President, and CEO
• $  962,606:  Mark C Gebhardt, Director, Orthopedic Surgery Chair*
• $  881,818:  Mark L Zeidel, Director, Medical Chair
• $  871,359:  Peter Healy, Director*
• $  864,712:  Daniel Talmor, Director, Anesthesia Chair*
• $  848,654:  Jonathan B Kruskal, Director, Radiology Chair*
• $  838,766:  Mary Ann Stevenson, Director, Radonic Chair*
• $  822,308:  Dewayne M Pursley, Director, Neonatal Chair*
• $  732,476:  Jeffrey A Saffitz, Director, Pathology Chair*
• $  704,294:  Suzanne Olbricht, Director, Dermatology Chair*
• $  704,818:  Richard E Wolfe, Director, Emergency Medical Chair*
• $  645,668:  Clifford B Saper, Director, Neurology Chair*
• $  616,352:  Hope A Ricciotti, Director, OB/GYN Chair*
• $  579,088:  William Greenberg, Director, Psychiatry Chair*
• $  567,484:  Sheila Barnett, Director-at-Large
• $  552,506:  Amy Guay, Treasurer, CFO, VP Finance
• $  467,171:  Toni Golen, Director, Acting Chief
• $  349,127:  Nanette Smith Callahan, Chief HR Officer
• $  267,650:  Jacqueline Wolf, Director, Gastroenterologist
• $  258,628:  Christina Wee, Director

A “*” indicates a portion of compensation was paid by a related/affiliated organization.

The 27 most highly compensated employees received more than $22 million in compensation.  16 of the 27 (59%) most highly compensated employees are male while 11 of the 27 (41%) are female. 8 of the 10 most highly compensated employees are male while 2 are female.  It is also important to note there are 23 voting members of the governing party of HMF – Beth Israel, 5 of whom are independent (no explanation provided).  The Form 990 (2018) lists 25 directors (due to timing differences), 15 (60%) of whom are male while 10 (40%) are female.

HMF- Beth Israel paid for first class or charter travel.

To read more detail of compensation including retirement plans, see Schedule J, Part III, Supplemental Information on the Form 990.

75 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:

• $267.6 million:  Beth Israel Deaconess Medical Center for support services (this appears to be a related org)
• $  7.3 million:  Physicians Professional Services, of Medford, MA for billing services
• $  3.2 million:  Change Healthcare, of Alpharetta, GA for billing services
• $  2.6 million:  Anesthesia Financial Solutions, of Needham, MA for billing services
• $  1.4 million:  Medical Healthcare Solutions, Inc., of Bellevue, WA for billing services

To read the IRS Form 990 (2018 for the year ending September 30, 2019), click here.