Executive Compensation at Mass General Brigham (2020)
Mass General Brigham (formerly known as Partners HealthCare) is a non-profit, tax-exempt healthcare provider with 16 member institutions that include hospitals (14), 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 who 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 (including 6,500 physicians and 9,100 registered nurses), Mass General Brigham is the largest private employer and healthcare provider in Massachusetts. The Mass General Brigham healthcare network 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 (2019) for Mass General Brigham Incorporated, the administrative non-profit (whose revenue derives from related and affiliated organizations for managing the whole network) for the year ending September 30, 2020. Key information about this entity is summarized as follows:
- Total revenue was $2.2 billion, most of which came from two sources: related organizations ($1.2 billion) and administrative fees ($1 billion);
- Expenses totaled $2.3 billion (not including $70 million in depreciation), most of which came from 6 categories of expenses: compensation ($880 million), interest ($239 million), office-related expenses ($195 million), fees for services ($105 million), and grants ($652 million of which $602 million was to North Shore Medical Center, an affiliate for support); and
- Net assets are a negative $2 billion, which is down from the start of the year (-$2.5 billion) because of unrealized gains on assets and changes in fund balances (primarily a change in the funded status of the defined benefit plan).
Compensation was the largest expense for Mass General Brigham. 7,726 employees received $880 million, which equates to an average compensation of $114,000. The 12 most highly compensated employees were reported to be:
- $5,284,864: David Torchiana, Former President and CEO
- $4,202,011: Gregg S. Meyer, Chief Clinical Officer
- $4,136,125: Anne Kilbanski, President, CEO, and Directo
- $3,689,904: Peter K Markell, Treasurer
- $2,908,732: John R Barker, Chief Investment Officer
- $1,561,842: Laura Peabody, Chief Legal Officer and General Counsel
- $1,365,218: Elizabeth L Baldwin, Portfolio Manager
- $1,261,714: James W Noga, VP and CIO
- $1,039,683: Christopher Mark Coburn, Chief Innovation Officer
- $1,028,487: Rosemary R Sheehan, Chief HR Officer
- $1,014,941: Jeff A Weiss, Chief Strategy and Transf Office
- $1,004,358: Katherine L Kamm, Portfolio Manager
As illustrated above, the 12 most highly compensated employees received $28 million in compensation.
7 of the 12 (58%) most highly compensated employees are male while 5 of the 12 (42%) 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.
David Torchiana received a severance payment of $3,519,000, which is included above,
The following employees participated (already included above) in a supplemental non-qualified retirement plan:
- $2,601,574: Gregg S Meyer
- $ 137,443: Peter K Markell
- $ 251,010: James Noga
133 independent contractors received more than $100,000 in compensation. The 5 most highly compensated were reported to be:
- $12.8 million: Ranstad Healthcare, of Philadelphia, PA for staffing
- $11.2 million: Accenture LLP, of Chicago, IL for consulting
- $ 5.3 million: Vee Technologies, of Dallas, TX for consulting
- $ 5.3 million: Walsh Brothers, of Boston, MA for construction services
- $ 3.8 million: Quarles and Brady, of Milwaukee, WI for legal services
Suffolk Construction – related to Director John Fish – received $29.6 million in compensation for construction services.
NPP Development – related to Director Jonathan Kraft – received $9.6 million in compensation for a lease.
To read the IRS Form 990 (2019 for the year ending September 30, 2020), click here.