Executive Compensation at the New York and Presbyterian Hospital (2018)

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 (2018) submitted to the IRS, includes the following:

Total revenue was $6.3 billion in 2018 (compared to $5.7 billion in 2017) most of which ($6 billion) came from patient care.

Total expenses were $6 billion (including $354 million in depreciation). The four largest expenses were compensation ($3.6 billion), medical supplies ($970 million), office-related expenses ($575 million), and fees for services ($281 million).

The difference between total revenue and total expenses is $354 million, which was added to the general fund.  At the beginning of 2018, the general fund balance was $6.9 billion (compared to $5.8 billion in 2017). After adding the excess revenue ($354 million), unrealized losses on investments (-$58 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 ($215 million), the general fund net balance was $7.4 billion at year-end:  an increase of $500 million in one year.

33,176 (compared to 28,938 employees in 2017) received $3.6 billion in compensation, which equates to an average compensation of $109,000. However, only 6,813 received more than $100,000 in compensation.  The 36 most highly compensated employees were:

• $10,375,520:  Steven J Corwin, President and CEO, Trustee
• $ 4,797,262:  Laura Forese, EVP and COO
• $ 2,519,518:  Phyllis R Lantos, Sr Advisor, Pres and CEO
• $ 2,498,947:  Maxine Frank, EVP, CLO, and General Counsel
• $ 2,294,524:  William Lee, SVP, Chief Investment Officer
• $ 2,265,577:  Herbert Pardes, Executive Vice Chairman
• $ 2,121,310:  Dov N Schwartzben, SVP, Finance
• $ 1,880,896:  Wilhelmina Manzano, SVP, Chief Nursing Officer
• $ 1,880,085:  Gary J Zuar, SVP, Finance
• $ 1,707,773:  Emme DeLand, SVP, Chief Strategy Officer
• $ 1,672,883:  Daniel J Barchi, SVP, Chief Info Tech Officer
• $ 1,609,880:  Michael P Breslin, Group SVP, CFO, and Treasurer
• $ 1,551,067:  Susan Mascitelli, SVP, Patient Services and Liaison to Board
• $ 1,483,155:  Jaclyn Mucana, President, NYP/Queens
• $ 1,419,009:  Michael Nochomovitz, SVP, Ch Clin Integration Network
• $ 1,338,525:  Joseph A Ienuso, Group SVP, Facilities and Real Estate
• $ 1,317,394:  Karen Westervelt, SVP, COO, Regional Network Hospital
• $ 1,149,861:  Craig T Albanese, SVP, COO – MSVCHONY Sloane
• $ 1,116,114:  Shaun E Smith, SVP, Chief Human Resources Officer
• $ 1,115,799:  Sarah L Avins, SVP, Chief Development Officer
• $ 1,095,053:  Kerry S Dewitt, COS to President, CEO SVP Comm
• $ 1,066,619:  William J Ferrell, SVP, Finance
• $ 1,055,332:  Richard Liebowitz, President, NYP/Brooklyn Methodist
• $ 1,024,404:  Paul J Dunphey, SVP, COO, Allen & Amb Care
• $   993,456:  David Alge, SVP, Comm and Pop Health
• $   956,354:  Robert Guimento, President, NYP/Brooklyn Methodist
• $.  923,458:  Paul N Casale, Exec Dir, NY Quality Care and Assurance CMO
• $   914,207:  Laureen Hill, SVP, COO, Milstein and Allen
• $   907,117:  Stacey Petrower, President, Hudson Valley Hospital
• $   873,169:  Richard Evans, SVP and Chief Experience Officer
• $   786,078:  Cam Patterson, Former Key Employee
• $   747,040:  Andria L Castellanos, Former Key Employee
• $   539,777:  Henry Ting, Former Key Employee
• $   538,570:  Anthony P Dawson, Former Key Employee
• $   472,544:  Kathleen Burke, VP Board Relations, Secretary, Associate General Counsel
• $   402,526:  Maurice E Labonne, Former Key Employee

As listed above, the 36 most highly compensated employees received $60 million in compensation.  22 of the 36 (61%) most highly compensated employees are male while 14 of the 36 (39%) are female. 5 of the 10 most highly compensated employees are female while 5 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:

• $700,000:  Andria Castellanos
• $534,827:  Henry Ting
• $500,000:  Anthony Dawson
• $387,692:  Maurice Labonne

The following individuals participated in the Supplemental Non-Qualified Retirement Plan:

• $246,986:  Laura Forese
• $161,119:  Phyllis Lantos
• $ 49,446:  Dov Schwartzben
• $ 32,683:  Wilhelmina Manzano
• $ 27,583:  Susan Macitelli
• $ 11,781:  Andria Castellanos

Supplemental Retirement Plan income as reported on W-2’s:

• $2,560,953:  Steven Corwin
• $  618,295:  Laura Forese
• $  608,653:  Gary Zuar
• $  580,338:  Emme Deland
• $  387,222:  Wilhelmina Manzano
• $  312,603:  Maxine Frank
• $  279,191:  Dov Schwarten
• $  241,725:  Jaclyn Mucaria
• $  232,543:  Herbert Pardes
• $  117,947:  Phyllis Lantos
• $   99,447:  Susan Macitelli
• $    12,533:  Andria Castllanos

197 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated repotted to be:

• $129 million:  Turner Construction, of New York, NY for construction
• $ 57 million:  Structure Tone, of New York, NY for construction
• $ 37 million:  The Seiden Group, of New York, NY for advertising
• $ 36 million:  Bovis Lend Lease, of New York, NY for construction
• $ 27 million:  AMN Healthcare, of Chicago, IL for nurse staffing

To read the IRS Form 990 (2018), click here.