TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

West Penn Allegheny Health System top earner: CEO who left

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

Wednesday, May 15, 2013, 12:06 a.m.
 

It pays to walk away from West Penn Allegheny Health System.

Just ask Christopher Olivia, the health system's CEO until he resigned in June 2011.

Olivia was paid $6 million by the financially hurting hospital network for the 12 months ended June 30, 2012, according to tax returns released on Tuesday.

In the previous year, his last at the helm of West Penn Allegheny, Olivia was paid $7.4 million. By comparison, UPMC CEO Jeffrey Romoff earned $6 million that year. UPMC is expected to make public its 2012 tax returns this week.

Olivia declined to comment, citing a confidentiality agreement in his severance package.

Officials with West Penn Allegheny declined to comment.

Olivia joined the five-hospital system in March 2008 and oversaw three years of heavy financial losses. In the last two years, when his compensation totaled $13.4 million, West Penn Allegheny reported a combined $164.3 million loss from operations and a combined net loss of $17.4 million.

His compensation last year included base pay of $677,905, bonus of $2.5 million, other compensation of $930,000, retirement and deferred compensation of $1.88 million, and other benefits of $10,553.

Cathy Stoddard, president of the SEIU nurses union at Allegheny General Hospital, declined to comment on Olivia's pay, but said she was glad to have a new CEO.

“It's a brand new day,” she said, referring to the acquisition by health insurer Highmark that was completed last month.

Highmark named John Paul the CEO of Allegheny Health Network, Highmark's new hospital network that includes West Penn Allegheny, Jefferson Regional Medical Center and St. Vincent Health System in Erie.

Since stepping down from West Penn Allegheny, Olivia became a private contractor for Highmark for one year. Highmark spokesman Aaron Billger declined to comment.

While Olivia was the highest paid employee at West Penn Allegheny last year, the system's tax returns show seven other employees made at least $1 million. And like Olivia, five of them are no longer employed by the system:

• Diane Dismukes, former interim CEO, $1.58 million.

• David Kiehn, former chief financial officer, $1.13 million.

• Gregory Burfitt, former president of West Penn and Allegheny General hospitals, $1.05 million.

• Roy Santarella, former chief administration officer, $2.28 million.

• Dr. Sanford Kurtz, former chief medical officer, $1.04 million.

Still with the system are Dr. Patrick DeMeo, chair of the system's department of orthopedic surgery, $1.06 million; and Dr. James Wilberger, chair of the system's department of neurosurgery, $1.04 million.

Alex Nixon is a staff writer for Trib Total Media.

Add Alex Nixon to your Google+ circles.

Subscribe today! Click here for our subscription offers.

 

 

 


Show commenting policy

Most-Read Business Headlines

  1. ATI to benefit from WTO ruling against China in steel case
  2. Muni bond funds stressed
  3. Cost-cutting at Kraft Heinz extends to refrigerator
  4. PPG puts brand 1st in strategy to reach commercial paint market
  5. Kennametal expects to consolidate plants as it shrinks manufacturing in continuing streamlining; profit drops
  6. Travelers find direct Web route to Priory’s spirited past in North Side
  7. GNC to convert more stores to franchises as sales, profits slip
  8. Economy’s 2Q best since last year
  9. Post-Gazette offers voluntary buyouts in bid to avoid layoffs
  10. Invasive beetle costs Pittsburgh-area power companies plenty
  11. Range Resources cuts workforce 11%