The records show variability among hospital systems, with some continuing to give executives bonuses during the pandemic, some taking a pause on executive bonus pay in 2020, and some having a policy of not giving bonuses to executives.
Industry experts say the complexity of health care and billion-dollar revenues flowing through hospitals has led to a growing number of high-paid hospital administrators across the U.S.
“In the last 30 years, there’s been a huge increase in the amount of administrators in hospitals and the money that’s flowing through the health care system,” said Dr. Vikas Saini, a physician and president of the Lown Institute, a health care think tank.
Market rates and consultants helped local hospital systems establish salary amounts, statements from each hospital say. The Dayton Area Chamber of Commerce also commented on how local compensation models echo the industry throughout the country.
“The Dayton region has some of the best and most skilled health care providers. We are fortunate to have access to medical experts, doctors and national health care leaders that ensure the people of the Dayton region receive the best health care in the world,” Chris Kershner, president and CEO of the Dayton Area Chamber of Commerce said. “Health care is a market and industry based compensation model. All of our area hospital systems have governance structures in place that ensure their compensation models are reflective of the market.”
Premier Health
Premier Health continued to give executives bonuses during the pandemic, while reporting experiencing significant financial losses. All senior executives at Premier Health took a reduction in pay, though, the hospital system said, which was in response to the financial strain of suspending elective procedures during the pandemic.
“Executive pay at Premier Health reflects both market rates and the skill sets needed to navigate the scope, complexity, regulations, and compliance requirements inherent in health care. At Premier Health, executive pay is benchmarked externally by a consultant. A percentage of an executive’s potential pay is at risk each year. A variety of factors influence that pay, including not only financial performance, but also quality of care and various metrics involving our workforce,” said a statement from Premier Health.
Credit: WillJonesPhoto
Credit: WillJonesPhoto
Mary H. Boosalis, president and CEO at the time at Premier in 2020 and 2021, received a base salary of $1.5 million in 2020 and $1.2 million in 2021, according to IRS forms. Boosalis also received bonuses of over $580,000 in 2020 and $1.7 million in 2021. With unspecified “other reportable compensation,” retirement benefits and deferred compensation, and other nontaxable benefits, Boosalis received total compensation over $2.1 million in 2020 and $3 million in 2021.
Boosalis helped guide the health system during formidable obstacles during the pandemic, the organization said. Incentive pay is also used to retain key employees to meet critical needs, which Premier Health said was the case here.
“The 2021 bonus for Mary Boosalis, given during her final full year as president and CEO of Premier Health, helped ensure strong, consistent leadership of the health system during some of the most challenging stretches of the COVID-19 pandemic. Her compensation package reflects a performance-based award program that is competitively targeted to a national market,” Premier Health said in its statement.
Pay for Premier Health’s CEO is also reviewed by the health system’s board, and all expenses are subject to an internal audit, as well as board review and approval, the organization said.
Boosalis made considerably more in those two years than any of her employees. Base pay for other top-paid Premier executives topped out at $748,165. Michael Maiberger, formerly the second highest ranging employee at Premier until he retired in August 2019, received a bonus of $244,961 and “other compensation,” which can include retirement funds or other deferred compensation, totaling $1.1 million in 2020.
Kettering Health
Executives at Kettering Health did not report receiving bonuses or incentive pay in 2020, according to IRS filings. Base salaries ranged for the highest compensated employees ranged between $340,000 and $1.4 million.
“The healthcare industry has become increasingly complex, and as the scope and skills required of its executives increase, compensation must also grow to reflect the responsibilities of those roles,” Kettering Health said in a statement.
High salaries are also meant to be competitive to keep key employees, they said.
“Our organization has provided high-quality care to our communities for decades, and we want to attract and retain talent that will guide us in continuing our mission. To that end, compensation must be competitive with other nonprofit systems of similar size and scope across the nation,” Kettering Health said.
Fred Manchur, CEO at that time, received a base salary of $1.4 million; other reportable compensation over $27,000; and retirement, deferred compensation, and other nontaxable benefits over $50,000.
In 2021, base salaries for the highest compensated employees at Kettering Health ranged between $470,000 and $1.6 million, according to IRS filings. Bonuses to executives ranged between $80,000 and over $400,000.
Manchur received a base salary of $1.6 million in 2021, along with a bonus over $400,000; other reportable compensation over $80,000; and retirement, deferred compensation, and other nontaxable benefits over $42,000, according to IRS filings.
Walter Sackett, president of Kettering Health beginning in September, received a base salary of over $800,000 in 2021, along with a bonus of $148,000; other reportable compensation of $217,000; and retirement, deferred compensation, and other nontaxable benefits of $47,000.
Dayton Children’s Hospital
Executives do not receive bonuses at Dayton Children’s, according to the organization and IRS filings.
“Health care is one of the most highly regulated industries in the world, and it is extremely complex to operate a hospital successfully. To lead a hospital, it requires a high level of education, expertise and experience to safely provide the level of care that our community’s families require and deserve,” Dayton Children’s said in an organizational statement.
Executive compensation is reviewed by a board committee and outside consultants, they said. Additionally, they noted Dayton Children’s executive salaries are consistent with like-sized hospitals across the country.
During the initial months of the pandemic, the senior leadership team also gave 10% of their pay to the hospital’s employee care fund, which provided financial assistance to staff that were experiencing financial hardships due to the pandemic.
Dayton Children’s operates on a fiscal year. For the fiscal year from 2019 to 2020, CEO Deborah Feldman received a salary of $920,000. Including other reportable compensation, retirement funds, deferred income, and nontaxable benefits, Feldman received an additional $940,000 for a total of $1.8 million.
Adam Mezoff, Dayton Children’s chief medical officer, received a salary of $620,000. Including other reportable compensation, retirement funds, deferred income, and nontaxable benefits, his total compensation came to $1 million.
Feldman received a salary of $860,000 for the time period between July 1, 2020 and June 30, 2021. Including other reportable compensation, retirement funds, deferred income, and nontaxable benefits, Feldman received an additional $990,000 for a total of $1.8 million.
Mezoff received a salary of $620,000 for that same time period. Including other reportable compensation, retirement funds, deferred income, and nontaxable benefits, Mezoff received an additional $1.7 million for a total of $2.3 million.
Other executive salaries there ranged between $240,000 and $480,000.
About the Author
