Executives at Massachusetts' largest healthcare provider saw nearly 20 percent pay bumps between fiscal years (FY) 2012 and 2013, the Boston Business Journal reports.
Partners HealthCare executives earned the most across all hospital systems in the greater Boston area, according to the article, with CEO Gary Gottlieb, M.D., receiving a 17 percent compensation increase for a total annual take of $2.61 million. This includes a $1.36 million base salary.
Other Bay State providers saw increased compensation as well. Brigham and Women's Hospital CEO Elizabeth Nabel, M.D., received an 18 percent raise, earning nearly $2.5 million in FY 2013, while Massachusetts General Hospital President Peter Slavin, M.D., earned $2.17 million, a 19 percent increase, according to the article.
Numbers like these are far greater than what physicians make, and watchdog groups raised concerns in particular about the size of nonprofit hospital executives' compensation, which the Internal Revenue Service caps at a "reasonable compensation" level, FierceHealthcare previously reported.
Raises were smaller at other area hospitals. Dana-Farber Cancer Institute President Edward Benz, M.D., received a 1 percent pay bump, according to the Business Journal.
These executive raises aren't limited to Massachusetts. Last week, a report filed with the Alabama Department of Insurance found that the top 10 executives at Blue Cross and Blue Shield of Alabama each earned an additional $1 million in 2013, and their collective pay is twice what it was in 2011. For example, President and CEO Terry D. Kellogg makes nearly $5 million a year, including a base salary of slightly less than $1 million and $3.5 million in bonuses, FierceHealthPayer previously reported.
In addition to these salaries, hospital CEOs often remain with their organization after retiring in high-paying trustee positions, such as Herbert Pardes, who retired as CEO of New York-Presbyterian Hospital in 2011, but a year later still received a pay package of nearly $6 million, FierceHealthFinance previously reported.
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