Wednesday, May 16, 2012
KINGSTON, N.Y. — Seventeen executives of HealthAlliance of the Hudson Valley received a total of $4.6 million in base pay, benefits, bonuses and other compensation in 2010, the same year the companies’ Kingston and Benedictine hospitals lost a combined $2.75 million, according to tax records.
The company’s president and chief executive officer pulled down more than $630,000 of that total. Another $590,000-plus went to a former Benedictine CEO.
The 2010 records — which are the most recent available and which are posted at www.guidestar.org, a website regarding not-for-profit organizations in the United States — were reviewed by the Freeman after HealthAlliance announced on May 4 that it might close one of the two hospitals to cut costs.
The records reflect “compensation ... for officers, directors, trustees and key employees and higher-compensation employees,” the tax filing states.
The records show 17 HealthAlliance and hospital executives received compensation packages in 2010 totaling $4,611,513. That amount includes base compensation, bonuses, incentives and other reportable income, the records state.
The base compensation alone totaled $3,469,360, or an average of $204,080 for each of the 17 people. The median household income in Ulster County in 2010 was $51,301, according to the county Planning Office.
David Lundquist, the president and chief executive officer of HealthAlliance, received $632,476 in compensation in 2010, according to the tax records. Of that total, $513,072 was base compensation, $81,250 was bonuses and $38,154 was other benefits.
Another one of the 17 people identified in the tax records was Thomas Dee, a former chief executive officer of Benedictine Hospital, whose compensation from HealthAlliance in 2010 totaled $591,113, including $81,564 in base pay; $15,458 in nontaxable benefits; and $494,091 listed as “other.”
Lundquist characterized the compensation for Dee, who left Benedictine in late 2008, as part of a severance package.
Bonuses paid to the 17 people in 2010 totaled $197,750, according to the records, but Lundquist noted in a phone interview on Tuesday that those payouts were for work performed in 2009, when the two hospitals had a combined surplus of $4.64 million.
He said no bonuses were paid for work in 2010 or 2011, when the two hospitals ran combined losses.
Lundquist said the compensation packages paid to HealthAlliance executives keep the company in step with the market.
“Our board is very attentive to ensuring that the executive compensation is at fair-market value and is competitive to ensure that we can provide the kind of executive leadership that is needed to continue to strengthen the healthcare services for the community,” he said.
Lundquist said he is preparing a list of the 2011 salaries paid to the company’s nine-member executive team. That list will be ready by Wednesday morning, he said.
Compensation in 2010 for the 15 executives other than Lundquist and Dee was as follows, according to the tax records.
• Frank Ehrlich, chief medical officer for HealthAlliance: $327,649 (including $294,704 in base pay; $10,655 in benefits; $22,280 other).
• Sister Mary Feehan, vice president for mission effectiveness at Benedictine Hospital: $196,355 ($172,840 in base pay; $17,284 in retirement benefits; $6,231 nontaxable).
• John Finch, chief information/communications officer for HealthAlliance: $254,872 ($219,687 in base pay; $11,659 in retirement benefits; $15,127 in other benefits; $8,399 other).
• Charles Flinn, chief operating officer/site administrator at Benedictine Hospital: $295,225 ($268,173 in base pay; $14,000 in bonuses; $3,438 in retirement benefits; $5,114 in other benefits; $4,500 other).
• Steven Haas, vice president of finance for HealthAlliance: $224,480 ($192,954 in base pay; $11,000 in bonuses; $5,079 in retirement benefits; $15,447 in other benefits).
• Sandra Horan, who was executive director at Kingston Hospital and now is executive director at HealthAlliance’s Margaretville Memorial Hospital: $172,227 ($152,036 in base pay; $11,000 in bonuses; $3,866 in retirement benefits; $5,375 in other benefits).
• Kathleen Lunney, vice president of nursing services at Kingston Hospital: $171,116 ($165,538 in base pay; $4,138 in retirement benefits; $1,440 other).
• Margo McGilvrey, chief nursing officer for HealthAlliance: $231,435 ($197,769 in base pay; $14,000 in bonuses; $5,000 in retirement benefits; $10,166 in other benefits; $4,500 other).
• Rafael Olazagasti, former chief medical officer at Benedictine Hospital: $95,468 ($1,682 in retirement benefits; $8,599 in other benefits; $85,187 other).
• Dennis Pignato, vice president of support services at Kingston Hospital: $202,086 ($179,574 in base pay; $11,000 in bonuses; $10,762 in benefits; $750 other).
• Joshua Ratner, chief strategist for HealthAlliance: $253,580 ($207,001 in base pay; $14,000 in bonuses; $3,928 in retirement benefits; $13,039 in other benefits; $15,612 other).
• David Scarpino, chief financial officer for HealthAlliance: $338,037 ($271,789 in base pay; $41,500 in bonuses; $6,875 in retirement benefits; $13,373 in other benefits; $4,500 other).
• Robert Seidman, chief administrative officer for HealthAlliance: $299,408 ($259,574 in base pay; $13,841 in retirement benefits; $15,458 in other benefits; $10,535 other).
• Priti Shah, director of pharmacy at Kingston Hospital: $167,935 ($150,040 in base pay; $3,992 in retirement benefits; $13,562 in other benefits; $341 other).
• Thomas Whitaker, former administrative director for HealthAlliance: $158,050 ($143,045 in base pay; $4,206 in retirement; benefits $10,799 in other benefits).
Kingston and Benedictine hospitals, which are less than a mile apart in Midtown Kingston, affiliated under a single corporate parent in early 2008 under a state mandate. The hospitals currently have a combined 1,500 full-time and 300 part-time employees and lost a combined $10 million during the period of 2008 to 2011.
HealthAlliance has not said which hospital it may close or how many jobs might be lost as a result.