Executive Compensation at Northwell Health (2021)

Northwell Health is New York’s largest healthcare provider with 22 hospitals and 750 outpatient facilities with more than 85,000 employees across the network (which includes many organizations).

The focus of this post is on the executive compensation of Northwell Healthcare, Inc. (NHI), a non-profit, tax-exempt 501 (c) (3) that provides advisory and administrative support services to the affiliated healthcare organizations that comprise Northwell Health.  This means the primary source of income for NHI is the revenue the affiliated organizations give, which amounted to $2.0 billion in 2021 (out of $2.3 billion in total revenue).  In other words, the organizations that make up Northwell Healthcare paid $2 billion to a related organization to manage themselves.

Expenses for NHI totaled $1.8 billion (not including $191 million in depreciation) with the largest expenses reported to be compensation ($949 million), office-related expenses ($340 million), purchased services and fees for services ($343 million), and interest ($90 million).

Based in Westbury, New York, NHI reports having 7,522 employees (out of an estimated 85,000 total employees among all the organizations that make up Northwell Health) who were compensated $949 million in 2021, which equates to an average compensation of nearly $126,000.

2,330 employees received more than $100,000 in compensation with the 21 most highly compensated employees reported (from the Form 990 submitted to the IRS for 2021) to be:

• $7,753,849:  Michael J Dowling, President and CEO
• $5,490,026:  Mark Solazzo, EVP and COO
• $5,909,313:  Howard Gold, EVP and Chief Managed Care Officer
• $2,173,628:  Lawrence Smith, EVP and Physician in Chief
• $1,723,953:  Jason Naidich, SVP, Regional Executive Director
• $1,819,587:  David Battinelli, SVP, Chief Medical Officer
• $1,708,162:  Eugene Tangney, SVP and Chief Admin Officer
• $1,612,439:  Richard Miller, EVP and Chief Business Strategy Officer
• $1,584,456:  Jeffrey Kraut, EVP, Strategy and Analytics
• $1,583,834:  Joseph Moscola, SVP, Chief People Officer
• $1,597,507:  Michele Cusack, SVP and CFO
• $1,472,453:  Deborah Schiff, EVP Amb Strategy and Business Development
• $1,459,902:  Mark Jarrett, SVP, Chief Quality Officer and Dep M
• $1,381,357:  Gerard Brogan, SVP, Chief Revenue Officer
• $1,377,665:  Laurence Kraemer, SVP and Chief General Counsel and Asst Secretary
• $1,331,610:  Kathleen Gallo, EVP and Chief Learning Officer
• $1,279,979:  Donna Drummond, SVP and Chief Expense Officer*
• $1,204,835:  Winifred Mack, SVP, Health System Ops, Former Officer (primarily severance)
• $1,148,576:  Ralph Nappi, EVC*
• $  972,312:  Mark Gloade, SVP, Deputy General Counsel and Asst Secretary
• $  464,670:  Harry Gindi, Assistant Secretary

A “*” indicates all or a portion of compensation came from an affiliate organization.

16 of the 21 (76%) of the most highly compensated employees are male with 5 (24%) are female. 10 of the 10 most highly compensated employees are male.

The 21 employees listed above received $45 million in compensation, which equates to an average compensation of $2.1 million.

The most highly compensated employees were Michael J Dowling, Mark Solazzzo, Howard Gold,  and Lawrence Smith.   Winifred Mach, a former officer is also included as up until her departure she was one of the most highly c0mpensated employees (and she still received more than $1 million in compensation in 2021 although she wasn’t employed by Northwell Health in 2021).  These 4 employees and former employee received nearly $100 million in compensation from 2015-2021:

Michael J Dowling:  Total C9mpensation 2015-2021: $32 million

• 2021:  $7,753,849
• 2020:  $4,751,773
• 2019:  $4,024,730
• 2018:  $3,579,554
• 2017:  $4,096,767
• 2016:  $4,077,452
• 2015:  $3,274,357

Mark Solazzo:  Total Compensation 2015-2021:  $24 million

• 2021:  $5,490,026
• 2020:  $3,314,733
• 2019:  $2,950,145
• 2018:  $2,554,328
• 2017:  $3,255,827
• 2016:  $2,998,266
• 2015:  $2,752,944

Howard Gold:  Total Compensation 2015-2021:  $20 million

• 2021:  $5,909,313
• 2020:  $1,902,253
• 2019:  $1,804,698
• 2018:  $4,490,135
• 2017:  $1,827,989
• 2016:  $1,850,556
• 2015:  $1,677,004

Lawrence Smith:  Total Compensation 2015-2021:  $11 million

• 2021:  $2,173,628
• 2020:  $1,832,913
• 2019:  $1,611,724
• 2018:  $1,211,049
• 2017:  $1,379,722
• 2016:  $1,333,321
• 2015:  $1,442,021

Winifred Mach:  Total Compensation 2015-2021:  $9 million

• 2021:  $1,204,835
• 2020:  $1,661,576
• 2019:  $1,187,371
• 2018:  $1,187,371
• 2017:  $1,346,806
• 2016:  $1,147,680
• 2015:  $1,007,990

It is also important to address loans from the organization, as detailed on the Form 990, Schedule L, Part II, all approved by the board or committee:

• Michael Dowling received a loan for $96 million for “split $ life;” current balance due is $69 million.
• Mark Solazzo received a loan for $129 million for “split $ life;” current balance due is $108 million.
• Jeffrey Kraut received a loan for $53 million for “split $ life;” current balance due is $45 million.
• David Battinelli received a loan for $62 million for “split $ life;”  current balance due is $42 million.
• Laurence Kraemer received a loan for $42 million for “split $ life;” current balance due is $28 million.
• Eugene Tangney received a loan for $27 million for “split $ life;” current balance due is $15 million.
• Richard Miller received a loan for $18 million for “split $ life;” current balance due is $9 million.
• Jason Naidich received a loan for $17 million for “split $ life;” current balance due is $8 million.
• Michele Cusack received a loan for $19 million for “split $ life;” current balance due is $11 million.
• Donna Drummond received a loan for $17 million for “split $ life;” current balance due is $9 million.
• Joseph Moscola received a loan for $12 million for “split $ life;” current balance due is $7 million.
• Kevin Beiner received a loan for $15 million for “split $ life;” current balance is $8 million.
• Gerald Brogan received for $14 million for “split $ life;” current balance is $6 million.
• Mark Gloade received a loan for $16 million for “split $ life;” current balance due is $14 million,

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

• $189 million:  Allscripts, of Cary, NC for information services
• $ 26 million:  Microsoft, of Dallas, TX for information services
• $ 29 million:  Synergy Health North America Inc, of Tampa, FL for sterilization services
• $ 20 million:  Horizon Media, of NY, NY for advertising
• $18 million:  Netsource Inc, of NY, NY for consulting services

To read the IRS Form 990 (2021), click here