Hospitals furloughed and laid off a whole lot. Some executives nonetheless noticed pay will increase.

Some exterior consultants, nonetheless, have been important that whilst well being care staff confronted earnings and generally job losses, these cuts didn’t translate to all executives.

“It’s not pay for efficiency. It’s simply pay,” stated Alan Sager, a professor of well being legislation, coverage, and administration at Boston College Faculty of Public Well being. “There’s a deep lack of consideration for the circumstances of all of the individuals who aren’t getting pay will increase and complete disregard for the way it seems.”

Dr. Anne Klibanski, chief government of the state’s largest well being system, Mass Basic Brigham, took house the most important compensation bundle, incomes $4.3 million in complete compensation in 2020, which was 3.6 % bigger than in 2019. The system didn’t institute furloughs or layoffs and in the end reversed wage freezes, although the compensation improve got here as MGB reported considered one of its worst working losses.

Scott Sperling, chairman of the Mass Basic Brigham board of administrators, stated the system was dedicated to providing aggressive government compensation.

Different executives noticed will increase whilst workers noticed cuts. By the top of July 2020, Beth Israel Lahey Well being had furloughed 9 % of its workforce, or roughly 3,150 workers. Furloughed workers have been paid just for the primary 4 weeks. By October, 175 individuals had been let go.

Additionally, ER medical doctors at Beth Israel Deaconess Medical Heart had half their quarterly bonuses withheld and deferred, and a few medical doctors in BILH-affiliated teams had their retirement plan employer contributions suspended.

Executives acknowledged the monetary strain on the time and volunteered for reductions. Beth Israel Lahey Well being president and chief government Kevin Tabb stated he would forgo half of his wage for 3 months.

But Tabb nonetheless reported a 14.2 % improve in complete compensation in 2020 to $3.7 million.

A spokeswoman for the system stated that Tabb’s compensation improve displays the truth that BILH grew to become a system on March 1, 2019, and 2020 was the primary full 12 months Tabb labored as head of the system. She added that the system has “prioritized investments that help affected person care, together with choices round staffing, advantages, and compensation in any respect ranges.”

Equally, in March 2020, Boston Medical Heart furloughed 10 % of its employees — roughly 700 jobs — because it seemed to preserve monetary assets.

In its fiscal 2020 financials, which resulted in September 2020, Boston Medical Heart additionally reported receiving $174.8 million in federal aid cash, in addition to $94.8 million in supplemental funds from the state.

That very same 12 months, Kate Walsh, chief government of the hospital, reported a 14.8 % improve in complete compensation to $2.3 million in 2020.

In an announcement, the well being system praised Walsh’s management by the pandemic and stated the hospital maintained advantages for furloughed staff.

“CEO compensation was tied to annual well being system efficiency targets that have been set previous to the COVID pandemic,” stated spokesman David Kibbe.

Within the early months of the pandemic, Southcoast Well being, which has hospitals in New Bedford, Wareham, and Fall River, furloughed 750 workers and later laid off 100. However chief government Keith Hovan reported a 7.4 % improve in compensation to $2.7 million.

Tufts Drugs, then referred to as Wellforce, furloughed 719 workers— or 5.5 % of its workforce — for 3 months in April 2020. One other 1,236 workers had their hours and earnings diminished. The system in the end let go of 232 workers. Chief executives and different senior executives additionally stated they’d volunteered for 3 months of pay cuts.

The system’s high government, CEO Michael Dandorph, who began the job in January 2020, reported $1.5 million in complete compensation that 12 months — decrease than many different chief executives of Boston-based programs.

Nonetheless, some hospital executives beneath him reported massive will increase. Michael Apkon, chief government of flagship hospital Tufts Medical Heart, reported a 29.9 % improve in complete compensation to $2.2 million by September 2020, when he left.

In an interview, Dandorph stated the board labored intently with a nationwide compensation advisor to have a look at government compensation, assessing the size of the group, the scope of that particular person’s obligations, and market charges.

Christine Madigan, chief shopper officer for Tufts Drugs, added that Apkon’s 2020 compensation improve was the results of cost of deferred compensation obligations as he left the group.

Steve Sullivan, managing director at compensation consulting agency Pearl Meyer, stated the management labor market is extraordinarily tight. Some estimates are that the price of changing a chief government and the misplaced enterprise associated to that turnover might be three to 5 occasions the annual value of the chief’s pay.

Paying retention bonuses and making discretionary incentive awards “is the price of doing enterprise,” Meyer stated. “It’s not whether or not it’s proper or unsuitable. It’s what they need to do.”

Some executives did take a monetary hit. Cape Cod Healthcare furloughed 600 workers early within the pandemic and in the end let go of 118. Michael Lauf, chief government of Cape Cod Healthcare, noticed his complete compensation decline 10.6 % to $1.7 million in 2020.


Jessica Bartlett might be reached at [email protected] Observe her on Twitter @ByJessBartlett.

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