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January 12, 2023

Executive Compensation at Mount Sinai Hospital (2019)

by Anne Paddock

Mount Sinai Hospital (MSH) is part of the Mount Sinai Health System (MSHS) – a network of 8 hospitals and a medical school formed in 2013 when the operations of Mount Sinai Medical Center and Continuum Health Partners merged. MSHS is the controlling entity or the affiliated organization – both non-profit and for profit – in the network.  Headquartered in New York City, NY, MSHS has about 4,000 beds and 38,000 employees, with nearly 18,500 of them employed by the Mount Sinai Hospital.

Key information to know about Mount Sinai Hospital (MSH), as reported on the Form 990 (2019) submitted to the IRS includes:

MSH reported total revenue of $3.1 billion (compared to $2.9 billion in 2018 and $2.8 billion in 2017),  most of which ($2.9 billion) came from patient services (net).

Expenses totaled $3 billion (including $145 million in depreciation) with the three largest expenses being compensation ($1.4 billion), medical supplies ($620 million), and fees for services ($484 million).

MSH began the year with $2.2 billion (note: in 2017, net assets were $1.7 billion).  After adding excess revenue not spent, gains on investments and other changes in assets ,MSH closed the year with $2.5 billion in net assets. In other words, in two (2) years, MSH increased net assets by $800 million.

Compensation is generally about half of a hospital’s total operating expense so MSH appears to be in-line with other hospitals. 18,655 received $1.4 billion in compensation, which equates to an average compensation of $75,000.

4,103 employees received more than $100,000 in compensation with the 18 most highly compensated employees being:

  • $5,658,429:  Kenneth Davis, Chief Executive Officer*
  • $5,130,199:  Samin Sharma, Professor, Cardiology*
  • $2,138,758:  Dennis Charney, President, Academic Affairs**
  • $2,113,239:  Donald T Scanlon, EVP, Finance and Chief Corp Serv*
  • $1,957,635:  Jeremy Boal, EVP, System CMO*
  • $1,852,859:  David L Reich, President and COO
  • $1,880,264:  Arthur Klein, EVP, President of Health Network*
  • $1,621,292:  Margaret Pastuszko, EVP, Chief Integration Officer*
  • $1,596,973:  Beth Essig, EVP, General Counsel*
  • $1,547,843:  Burton P Drayer, EVP, System CMA**
  • $1,341,683:  Arthur Gianelli, Chief Transformation Officer**
  • $1,271,981:  Jeffrey Silberstein, EVP, System CAO*
  • $1,228,672:  Niyum Gandhi, EVP, Chief Pop Health Officer*
  • $1,153,919:  Michael Pastier, SVP, CFO*
  • $1,126,085:  Vicki Lopachin, SVP, System CMO*
  • $  726,131:  Frank Cino, SVP, System Chief Risk Officer*
  • $  673,802:  Shirish Huprikar, Professor, Infectious Disease
  • $  612,724:  Caryn Schwab, SVP, Executive Director MSHQ

The “*” indicates the employee received compensation from MSH and an affiliated/related organization. The “**”  indicates the employee received compensation from an affiliated/related organization.

14 of the 18 (78%) most highly compensated employees listed above are male while 4 of the 18 (22%) are female.  The most highly compensated employee is Kenneth Davis, the CEO who received $5.6 million in compensation in 2019.  Over the past 8 years, Mr. Davis has received $50 million in compensation:

  • 2019:  $ 5.6 million
  • 2018:  $ 5.7 million
  • 2017:  $12.5 million
  • 2016:  $ 7.3 million
  • 2015:  $ 6.2 million
  • 2014:  $ 4.1 million
  • 2013:  $ 4.1 million
  • 2012:  $ 3.3 million

174 independent contractors received more than $100,000 in compensation. The five most highly compensated were:

  • $44 million:  Crothall Healthcare, Inc. of Chicago, Illinois for management
  • $ 9  million:  Morrison Management Specialists of Chesterbrook, PA for management
  • $27  million:  Laboratory Corp, of Burlington, NC for lab services
  • $16 million:  Rightsourcing, of Los Angeles, CA for personnel
  • $10 million:  Devitoverdi, of New York, NY for marketing

To read the IRS Form 990 (2019) for MSH, click here.

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