Layoffs of 300 people expected at Mt Auburn Hospital in June. Hospital is in such debt over epic computer system it has decreased food and juices for the patients,batteries , increasing parking fees and any other petty thing meanwhile Jeanette Clough continues a $ 6.5 million dollar salary disgrace
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Mount Auburn CEO out-earned every hospital exec in 2015
By Jessica Bartlett – Reporter, Boston Business Journal
Oct 7, 2017, 9:40am EDT Updated Dec 15, 2017, 12:30pm EST
The CEO of a small hospital in Cambridge out-earned every other health care executive in the state, according to tax filings.
Mount Auburn Hospital President and CEO Jeanette Clough earned $6.5 million in total compensation in 2015 from the hospital and its physician group — more than every other hospital CEO in Massachusetts. Her compensation came close to the $7.1 million the hospital reported in operating income in fiscal 2015 (encompassing the 12 months ending in September 2015), according to tax filings released by the hospital through its parent organization, CareGroup that were obtained by the Business Journal.
Clough also made $4.8 million more than Dr. Kevin Tabb, CEO of Beth Israel Deaconess Medical Center, the much larger academic medical center that Mount Auburn is affiliated with as part of CareGroup. Perhaps more noteworthy: She made over $2 million more than Dr. David Torchiana, the CEO of Partners HealthCare, the largest health care system in the state and its largest private employer.
The lion’s share of Clough’s reported compensation came from the vesting of a 17-year retirement plan, the hospital's board chair John Canepa said in a statement. The hospital's tax filing reported $5 million in “other reportable compensation” in 2015, which largely represented the package, hospital officials said.
Canepa said when Clough was hired in 2004, her contract stipulated that she must remain in the role at the hospital for 17 years to receive income from the “supplemental executive retirement plan.” The hospital contributed to the plan annually, and reported out those payments in previous years’ tax filings, in addition to reporting the full amount in fiscal 2016. The payout, in the form of cash, was awarded to Clough in 2015.
"A key component of Mount Auburn Hospital’s success as a community health provider, has been the stable leadership of a seasoned executive team, led by Jeanette Clough," Canepa said. "In her 19-year tenure as president and CEO, Jeanette has overseen strategic planning, day-to-day operations, growth in relationships with primary-care physicians and initiatives to assure quality care."
Click through the slideshow above to see what the top hospital executives in the state made compared with the previous year's compensation.
According to Warren Kerper, managing principal at consulting firm Sullivan, Cotter and Associates Inc., these retirement vehicles are common in health care, with 72 percent of health care organizations having a supplemental executive retirement plan, or SERP, for senior executives. While the structures vary, the goal is two-fold — to provide a competitive total compensation package and for retention.
Kerper did not look at or comment specifically on Clough's compensation, but said generally, unlike publicly held deferred compensation plans, SERPs are paid out at the end of a vesting period and not when an executive retires.
"Because these health care organizations are tax-exempt organizations, when someone vests in their SERP benefit, that becomes a taxable event," he said. "More often than not, when the benefit becomes taxable, that is when they are paid out."
Though Clough received her 17-year retirement package, she is still receiving other funding for retirement. Clough received $217,529 in additional retirement funding in 2015, which the organization said was a more traditional 401(k) contribution. The organization said she is not currently retiring.
Besides her retirement, Clough reported $671,231 in base compensation and another $502,000 in bonus and incentive compensation. She also received $15,770 in nontaxable benefits.
Canepa said that Clough's compensation was established by a subcommittee with third party consultants, and received approval by the entire board.
"The board is confident that the approach to compensation, including retirement benefits, has allowed Mount Auburn Hospital to retain one of the region’s leading hospital executives," he said. "We look forward to Jeanette’s continued leadership of Mount Auburn Hospital."
The $6.47 million total compensation package represented a 228 percent increase from Clough’s compensation last year, which was reported as nearly $2 million.
Even without the retirement payout, Clough earned handsomely given the size of Mount Auburn Hospital, which has 213 beds. By comparison, Dr. Elizabeth Nabel, president of 793-bed Brigham and Women’s Hospital, earned $2.1 million in fiscal 2016. Dr. Peter Slavin, president of the 1,034-bed Massachusetts General Hospital, earned $2 million in total compensation in 2015.
Richard Aubut, who was CEO of the 378-bed South Shore Health System through November 2015, reported a $2.8 million total compensation in 2015. The President and CEO of the 496-bed Boston Medical Center, Kate Walsh, reported $1.5 million in total compensation for 2015.
Mount Auburn is currently pursuing a merger with Lahey Health, Beth Israel Deaconess Medical Center, Anna Jaques Hospital and New England Baptist. Not only did Clough make more than the executives of all of those merging hospitals this year, she made more than all except Lahey President and CEO Howard Grant last year.
Mount Auburn Hospital $1,676,102 Clough Jeanette G Trustee (Ex-Off), Pres, CEO $467,230