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June 9, 2005

Compensation figures for UPP, UPMC top earners released

Compensation figures for highly paid officials at the University of Pittsburgh Physicians (UPP) practice plan, UPMC Corporate (1,944 employees who have system-wide duties) and UPMC Presbyterian Shadyside (UPMC’s largest unit) were released last week for fiscal year 2003-04, which ended June 30, 2004.

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 2003-04 fiscal year.

(For figures on the University’s IRS form 990 filings, see May 26 University Times at: http://www.umc.pitt.edu:591/u/FMPro?-db=ustory&-lay=a&-format=d.html&storyid=2584&-Find.)

The information for this story was provided by the Health Sciences News Bureau. The University Times requested information only on UPP, UPMC Corporate and the largest unit, UPMC Presbyterian Shadyside.

In addition to UPMC Corporate and UPMC Presbyterian Shadyside, UPMC filed IRS 990 forms for 15 other UPMC member hospitals as well as other UPMC health care entities, for a total of 50 separate 990 forms. System-wide, UPMC has more than 40,000 employees.

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 more than 1,300 primary care doctors and medical and surgical specialists 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 2003-04 were faculty members Ronald V. Pellegrini ($1,125,806 in compensation and $24,150 in benefits), James Dong-Jin Kang ($989,120 in compensation and $52,932 in benefits), Marc Joseph Philippon ($845,581 in compensation and $6,000 in benefits), James D. Luketich ($824,609 in compensation and $24,150 in benefits) and Philip R. Schauer ($675,195 in compensation and $28,752 in benefits).

UPP’s 990 form also included compensation figures for UPP President Marshall Webster ($536,557 in compensation and $56,529 in benefits) and secretary Loren H. Roth ($528,753 in compensation and $24,967 in benefits), as well as for 30 UPP board members, who also are compensated by UPP for their clinical practices.

Those board members included:

Urology department chair Joel Nelson ($451,606 in compensation and $34,428 in benefits), critical care chair Mitchell P. Fink ($427,487 in compensation and $47,465 in benefits), anesthesiology chair John Williams ($479,997 in compensation and $55,112 in benefits), family medicine chair Jeannette South-Paul ($196,945 in compensation and $18,113 in benefits), orthopaedics chair Freddie H. Fu ($749,997 in compensation and $56,932 in benefits), medicine chair Mark L. Zeidel ($247,300 in compensation and $18,941 in benefits);

Psychiatry chair David J. Kupfer ($344,999 in compensation and $21,726 in benefits), radiation oncology chair Joel S. Greenberger ($387,322 in compensation and $21,757 in benefits), physical medicine and rehabilitation chair Ross D. Zafonte ($229,711 in compensation and $30,123 in benefits), neurology chair Steven T. DeKosky ($189,999 in compensation and $16,775 in benefits), emergency medicine chair Paul M. Paris ($353,913 in compensation and $45,619 in benefits);

Dermatology chair Louis D. Falo Jr. ($257,419 in compensation and $33,203 in benefits), otolaryngology chair Eugene N. Myers ($674,505 in compensation and $52,270 in benefits), pediatrics chair David Hirsch Perlmutter ($325,000 in compensation and $20,521 in benefits);

Surgery professor Andrew B. Peitzman ($304,797 in compensation and $22,271 in benefits), ophthalmology chair Joel Schuman ($202,812 in compensation and $13,779 in benefits from January through June 2004), obstetrics/gynecology chair W. Allen Hogge ($153,648 in compensation and $23,409 in benefits from January through June 2004), associate professor of surgery Howard Edington ($362,636 in compensation and $50,976 in benefits);

Surgery professor Henri R. Ford ($433,871 in compensation and $20,150 in benefits), assistant professor of medicine Adele Towers ($73,853 in compensation and $14,445 in benefits), neurology professor Lawrence Wechsler ($265,474 in compensation and $31,683 in benefits);

Neurosurgery chair L. Dade Lunsford ($700,654 in compensation and $24,150 in benefits), pathology chair George Michalopoulos ($369,258 in compensation and $35,801 in benefits), surgery chair Timothy Robert Billiar ($441,629 in compensation and $23,039 in benefits), radiology chair Scott A. Mirowitz ($497,000 in compensation and $44,236 in benefits);

Cardiovascular Institute administrative director Barry London ($90,000 in compensation and $5,289 in benefits from January through June 2004), ophthalmology interim chair Michael Bruce Gorin ($35,672 in compensation and $3,522 in benefits from July through December 2003), Cardiovascular Institute interim director Conrad Smith ($210,802 in compensation and $25,438 in benefits from July through December 2003), senior vice president for finance and CFO Mark Benninghoff ($246,837 in compensation and $17,875 in benefits) and senior vice president for administration and operations Alan R. Green ($298,377 in compensation and $22,578 in benefits).

The IRS form 990 also requires the filing of compensation figures for the five highest paid independent professional services contractors during the 2003-04 fiscal year (or for all contractors paid at least $50,000, if fewer than five).

UPP contracted with the following four firms/individuals:

• Mid Atlantic Nuclear Imaging of Pittsburgh ($558,590 for nuclear imaging services);

• Kiet A. Hoang of McMurray ($194,250 for physician services);

• Gary Amundson of Beverly Hills, Mich. ($61,300 for physician services), and

• Stefano Bartoletti of Pittsburgh ($60,350 for physician services).

UPMC Corporate

UPMC’s 990 form did not list individual compensation figures for medical center President Jeffrey A. Romoff. Romoff 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 nine 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. of Pittsburgh $6,408,995 for management services in 2003-04, the IRS form stated.

(The Health Sciences News Bureau declined to reveal individual senior executives’ salaries. But UPMC Corporate will be required to specify compensation figures for Romoff and other executives on next year’s 990 form, according to a News Bureau official.)

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

• Richard Benfer, vice president for community initiatives ($287,577 in compensation and $6,063 in benefits, a compensation severance package per employee agreement, the IRS form stated);

• Bryan C. Donohue, administrator ($275,000 in compensation and $14 in benefits);

• Ann Metzger, director of corporate communications ($173,014 in compensation and $20,770 in benefits);

• Dorothy Duffield, director of media relations ($167,810 in compensation and $15,287 in benefits), and

• Gayle Tissue, associate director of development/communications ($142,398 in compensation and $17,439 in benefits).

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

• LD Astorino and Associates LTD of Pittsburgh ($13,260,437 for architect fees);

• Cap Gemini Ernst & Young, US LLC of New York, N.Y. ($5,500,000 for consulting services);

• Acordia Northeast of Pittsburgh ($1,924,725 for insurance), and

• Hilb, Rogal and Hamilton Co. of Pittsburgh, LLC ($1,733,864 for insurance).

UPMC also paid 10 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:

• George Huber, senior vice president for corporate relations ($643,699 in compensation and $25,016 in benefits);

• Dan S. Drawbaugh, chief information officer ($612,501 in compensation and $23,273 in benefits);

• Irene Kane, associate to the executive vice president ($608,101 in compensation and $13,549 in benefits; an unspecified portion of the disclosed compensation was severance, according to the IRS form);

• Gregory K. Peaslee, chief human resources officer ($492,560 in compensation and $23,118 in benefits), and

• David S. Zorub, chair of the UPMC Presbyterian Shadyside surgery department ($462,936 in compensation and $20,217 in benefits).

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

• Lisa Pupo-Lenihan, corporate secretary ($135,047 in compensation and $13,089 in benefits from July 2003 through March 2004);

• Michele P. Jegasothy, corporate secretary ($27,503 in compensation and $2,351 in benefits from April through June 2004);

• Edward T. Karlovich, senior vice president of finance ($297,895 in compensation and $22,664 in benefits);

• John Innocenti, senior vice president and COO ($385,420 in compensation and $24,902 in benefits);

• C. Talbot Heppenstall, treasurer ($159,946 in compensation and $5,092 in benefits), and

• Elizabeth Concordia, senior vice president for academic and community hospitals ($649,593 in compensation and $21,035 in benefits).

Concordia’s figures included compensation packages for performing her assigned duties at UPMC Presbyterian Shadyside as well as her position as senior vice president for academic and community hospitals for the entire UPMC, the IRS form noted.

The five highest paid independent professional services contractors were:

• ITXM Clinical Services of Pittsburgh ($6,194,238 for laboratory services);

• Core Contract Services of Pittsburgh ($4,377,247 for physical and occupational therapy services);

• Center for Organ Recovery & Donation of Pittsburgh ($2,641,108 for organ recovery);

• Hewitt Associates, LLC, of Newport Beach, Calif. ($1,308,828 for pension plan administration), and

• Burt Hill Kosar Rittelmann Associates ($990,616 for architect fees).

In addition, UPMC Presbyterian Shadyside paid 53 other unspecified contractors more than $50,000 each for professional services, according to information provided to the IRS.

—Peter Hart


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