Hospital execs got raises during pandemic

Hospitals furloughed and let go of hundreds of employees during the height of the pandemic in 2020, when forced shutdowns in elective surgeries decimated hospital revenues. But that didn’t stop some hospital executives from receiving compensation increases, new filings show. The figures, obtained by The Boston Globe, were collected from forms recently filed with the IRS. Total compensation is a reflection of an executive’s base salary, bonus pay, retirement benefits, and more. The disclosure is required of all nonprofits, but the figures typically lag by almost two years. Overall, pay increases trended more modestly than they had in years past, with fewer hospital executives receiving double-digit pay increases and several reporting reductions. Dr. Anne Klibanski, chief executive of the state’s largest health system, Mass General Brigham, took home the largest compensation package, earning $4.3 million in total compensation in 2020, which was 3.6 percent larger than in 2019. The system did not institute furloughs or layoffs and ultimately reversed salary freezes, though the compensation increase came as MGB reported one of its worst operating losses. Scott Sperling, chairman of the Mass General Brigham board of directors, said the system was committed to offering competitive executive compensation. Other executives saw increases even as employees saw cuts. By the end of July 2020, Beth Israel Lahey Health had furloughed 9 percent of its workforce, or approximately 3,150 employees. Furloughed employees were paid only for the first four weeks. By October, 175 people had been let go. Also, ER doctors at Beth Israel Deaconess Medical Center had half their quarterly bonuses withheld and deferred, and some doctors in BILH-affiliated groups had their retirement plan employer contributions suspended. Beth Israel Lahey Health president and chief executive Kevin Tabb said he would forgo half of his salary for three months. Yet Tabb still reported a 14.2 percent increase in total compensation in 2020 to $3.7 million. A spokeswoman for the system said that Tabb’s compensation increase reflects the fact that BILH became a system on March 1, 2019, and 2020 was the first full year Tabb worked as head of the system. Similarly, in March 2020, Boston Medical Center furloughed 10 percent of its staff — approximately 700 jobs — as it looked to conserve financial resources. In its fiscal 2020 financials, which ended in September 2020, Boston Medical Center also reported receiving $174.8 million in federal relief money, as well as $94.8 million in supplemental payments from the state. That same year, Kate Walsh, chief executive of the hospital, reported a 14.8 percent increase in total compensation to $2.3 million in 2020. In a statement, the health system praised Walsh’s leadership through the pandemic and said the hospital maintained benefits for furloughed workers. “CEO compensation was tied to annual health system performance targets that were set prior to the COVID pandemic,” said spokesman David Kibbe. — JESSICA BARTLETT