University Times

Compensation figures for highly paid officials at the University of Pittsburgh Physicians (UPP) practice plan, UPMC Corporate (2,164 employees who have system-wide duties) and UPMC Presbyterian Shadyside (UPMC’s largest unit) were released last week for fiscal year 2004-05, which ended June 30, 2005.

IRS form 990, a public document, requires tax-exempt, private corporations to file compensation figures for their five top-earning, non-officer employees as well as for officers, directors and trustees by May 15 of the following year.

Additional information re-quired by IRS form 990 includes compensation figures for the five highest paid independent professional services contractors during the 2004-05 fiscal year.

(For figures on the University’s IRS form 990 filings, see related story in this issue.)

System-wide, UPMC has almost 40,000 employees. In addition to UPMC Corporate and UPMC Presbyterian Shadyside, UPMC filed IRS 990 forms for 18 other UPMC member hospitals as well as other UPMC health care entities, for a total of 49 separate 990 forms.

The University Times requested information only on UPP, UPMC Corporate and the largest unit, UPMC Presbyterian Shadyside. Copies of the 990 forms were provided by the UPMC/Health Sciences News Bureau.

UPP

The University of Pittsburgh Physicians practice plan, formed in 1999 by uniting clinical practices representing 17 departments in Pitt’s School of Medicine, includes some 1,500 physicians who are Pitt Health Sciences faculty.

The following figures do not include professors’ Pitt compensation or benefits.

UPP members (other than officers, directors and trustees) who earned the most from UPP in 2004-05 were faculty members James Dong-Jin Kang ($1,013,947 in compensation and $28,900 in benefits), Amin B. Kassam ($1,000,512 in compensation and $41,504 in benefits), Ronald V. Pellegrini ($975,806 in compensation and $16,550 in benefits), Michael B. Horowitz ($974,127 in compensation and $35,789 in benefits) and Marc Joseph Philippon ($790,376 in compensation and $6,150 in benefits).

The total number of other UPP employees who earned more than $50,000 in FY 2005 was 1,221, according to the IRS form.

UPP’s 990 form also included compensation figures for UPP President Marshall Webster ($562,030 in compensation and $59,911 in benefits) and secretary Loren H. Roth ($678,896 in compensation and $19,154 in benefits), as well as for 33 UPP board members, who also are compensated by UPP for their clinical practices.

Those board members included:

Urology department chair Joel Nelson ($610,452 in compensation and $42,611 in benefits), critical care medicine chair Mitchell P. Fink ($353,592 in compensation and $32,388 in benefits), anesthesiology chair John Williams ($453,237 in compensation and $50,330 in benefits), family medicine chair Jeannette South-Paul ($187,249 in compensation and $19,623 in benefits), orthopaedics chair Freddie H. Fu ($774,996 in compensation and $62,462 in benefits), medicine chair Mark L. Zeidel ($327,354 in compensation and $16,971 in benefits);

Psychiatry chair David J. Kupfer ($374,998 in compensation and $16,400 in benefits), radiation oncology chair Joel S. Greenberger ($374,997 in compensation and $13,600 in benefits), physical medicine and rehabilitation chair Ross D. Zafonte ($241,999 in compensation and $35,955 in benefits), neurology chair Steven T. DeKosky ($149,999 in compensation and $13,250 in benefits), emergency medicine chair Paul M. Paris ($342,912 in compensation and $51,461 in benefits);

Dermatology chair Louis D. Falo Jr. ($165,833 in compensation and $15,783 in benefits), otolaryngology chair Eugene N. Myers ($680,066 in compensation and $56,227 in benefits), pediatrics chair David Hirsch Perlmutter ($325,100 in compensation and $36,874 in benefits);

Ophthalmology chair Joel Schuman ($409,986 in compensation and $49,110 in benefits), obstetrics/gynecology chair W. Allen Hogge ($477,738 in compensation and $57,843 in benefits), neurosurgery chair L. Dade Lunsford ($915,999 in compensation and $60,304 in benefits), pathology chair George Michalopoulos ($343,650 in compensation and $39,027 in benefits), surgery chair Timothy Robert Billiar ($608,746 in compensation and $54,277 in benefits), radiology chair Scott A. Mirowitz ($502,492 in compensation and $55,566 in benefits);

Cardiovascular Institute administrative director Barry London ($180,000 in compensation and $11,933 in benefits), surgery professor Andrew B. Peitzman ($226,121 in compensation and $24,014 in benefits from July through December 2004), associate professor of surgery Howard Edington ($176,960 in compensation and $21,889 in benefits from July through December 2004), surgery professor Henri R. Ford ($115,180 in compensation and $4,232 in benefits from July through December 2004), assistant professor of medicine Adele Towers ($90,622 in compensation and $8,506 in benefits from July through December 2004), neurology professor Lawrence Wechsler ($116,675 in compensation and $15,720 in benefits from July through December 2004);

Associate professor of surgery Kenneth K.W. Lee ($138,275 in compensation and $21,091 in benefits from January through June 2005) pediatrics associate professor Pamela J. Murray ($59,753 in compensation and $6,164 in benefits from January through June 2005), professor of medicine Beth M. Piraino ($85,955 in compensation and $10,636 in benefits from January through June 2005), pediatrics professor Frederick S. Sherman ($71,463 in compensation and $4,438 in benefits from January through June 2005), emergency medicine professor and vice chair Donald M. Yealy ($138,395 in compensation and $14,806 in benefits from January through June 2005), senior vice president for finance and CFO Mark Benninghoff ($326,807 in compensation and $18,655 in benefits) and senior vice president for operations Alan R. Green ($347,426 in compensation and $23,501 in benefits).

The total compensation for UPP officers and board members was $11,935,953 plus $1,044,712 in benefits.

The IRS form 990 also requires the filing of compensation figures for the five highest-paid independent professional services contractors during the 2004-05 fiscal year.

UPP contracted with the following five firms/individuals:

• Mid Atlantic Nuclear Imaging of Pittsburgh ($381,037 for nuclear imaging services);

• Ernst and Young LLP of Pittsburgh ($222,947 for tax and consulting services);

• Deasy and Associates of Pittsburgh ($197,445 for legal services);

• Independence Anesthesia Services of Watkinsville, Ga. ($127,918 for anesthesia services), and

• Steven Chernus of Pittsburgh ($121,899 for anesthesia services).

UPP also paid three other unspecified contractors more than $50,000 each for professional services, according to the IRS form.

UPMC Corporate

UPMC’s 990 form did not list individual compensation figures for UPMC President Jeffrey A. Romoff, who appears on the health center’s 990 form only as a member of the UPMC Board of Directors. In that capacity he was not compensated.

Instead, his salary, and those of seven other executives, were grouped under a listing for a company called Managed Care Advisory Services, Inc. of Pittsburgh, one of the five independent professional services contractors that received the most money last year from UPMC.

UPMC paid Managed Care Advisory Services, Inc. $6,615,947 for management services in 2004-05, the IRS form stated.

UPMC/Health Sciences News Bureau spokesperson Jane Duffield said that, of that total, Romoff earned $2.88 million in salary in fiscal year 2005.

“Next year, when the management company is phased out, it is likely that those who are now paid under this for-profit entity will be listed with the highest compensation [employees],” Duffield said.

The five highest-paid employees (other than officers, directors and trustees) for UPMC Corporate were:

• Bryan C. Donohue, administrator ($275,001 in compensation and $14 in benefits);

• Dorothy Duffield, director of media relations ($194,020 in compensation and $15,745 in benefits);

• Ann Metzger, director of corporate communications ($193,222 in compensation and $21,466 in benefits);

• Richard Benfer, vice president for community initiatives ($109,484 in compensation and $2,738 in benefits, a compensation severance package per employee agreement, the IRS form stated), and

• Jason Altmire, director of federal government relations ($105,341 in compensation and $14,587 in benefits).

UPMC also paid 20 other unspecified employees more than $50,000 in FY 2005.

In addition to Managed Care Advisory Services, Inc., the highest paid independent professional services contractors were:

• Marsh USA, Inc. of Pittsburgh ($16,345,803 for insurance);

• LD Astorino and Associates, Ltd. of Pittsburgh ($7,183,655 for architect fees);

• Ernst and Young LLP of Pittsburgh ($1,651,992 for tax and consulting services), and

• Akin Gump Strauss Hauer and Field, LLP of Washington, D.C. ($1,229,843 for legal services).

UPMC also paid 17 other unspecified contractors more than $50,000 each for professional services, according to the IRS form.

UPMC

Presbyterian Shadyside

The five highest-paid employees (other than officers, directors and trustees) for UPMC’s largest unit, which includes employees of Western Psychiatric Institute and Clinic, as well as Presbyterian, Shadyside, Montefiore and Eye and Ear hospitals, were:

• Karen L. Hartley, chief risk officer ($2,199,188 in compensation and $4,289 in benefits. Hartley’s disclosed compensation includes salary, bonus and other contractually obligated payments related to severance and restructuring, according to the 990 form);

• George Huber, senior vice president for corporate relations ($755,085 in compensation and $26,010 in benefits);

• Gregory K. Peaslee, senior vice president for human resources ($651,385 in compensation and $24,917 in benefits);

• Dan S. Drawbaugh, chief information officer ($639,010 in compensation and $24,842 in benefits), and

• Diane Holder, president of UPMC Health Plan ($454,617 in compensation and $45,462 in benefits).

In addition, UPMC Presbyterian Shadyside paid 3,289 other individuals more than $50,000 in FY 2005.

Among officers, directors and trustees of UPMC Presbyterian Shadyside, the IRS form listed eight board members who also were employees. Figures for those eight represent compensation for performing their assigned duties at UPMC network-wide and at UPMC Presbyterian Shadyside and not in their capacity as board members:

• Edward T. Karlovich, chief financial officer for academic and community hospitals ($466,941 in compensation and $23,952 in benefits.);

• Michele P. Jegasothy, corporate secretary ($145,252 in compensation and $17,389 in benefits);

• John Innocenti, senior vice president and chief operating officer ($502,713 in compensation and $25,189 in benefits);

• Elizabeth Concordia, president of UPMC Presbyterian Shadyside and senior vice president for academic and community hospitals ($927,857 in compensation and $21,962 in benefits);

• C. Talbot Heppenstall, treasurer ($308,491 in compensation and $23,443 in benefits);

• Paul Castillo, chief financial officer for UPMC Presbyterian Shadyside ($221,626 in compensation and $22,332 in benefits);

• Robert J. Cindrich, UPMC chief legal officer ($542,500 in compensation and $14,929 in benefits), and

• Robert DeMichiei, UPMC chief financial officer ($502,270 in compensation and $15,527 in benefits).

The total compensation for the eight UPMC officers was $3,617,650 plus $164,723 in benefits.

The five highest paid independent professional services contractors were:

• Center for Organ Recovery and Donation of Pittsburgh ($8 million for organ recovery);

• ITXM Diagnostic and Clinical Services of Pittsburgh ($6,829,062 for laboratory services);

• Core Contract Services of McKeesport ($5,323,837 for physical and occupational therapy services);

• Jeselnick and Associates of Naperville, Ill. ($1,354,172 for consulting services), and

• Quest Diagnostic LLC of Chicago, Ill. ($1,087,401 for laboratory testing).

UPMC Presbyterian Shadyside paid an additional 48 unspecified contractors more than $50,000 for professional services in FY 2005 according to information provided to the IRS.

—Peter Hart