UPMC CEO Romoff raked in $6.6 million in 2012; 30 others in $1M club
UPMC CEO Jeffrey Romoff got an 8 percent raise two years ago, placing his generous compensation package near the top of the nonprofit hospital industry.
The 68-year-old Romoff, who leads the largest integrated health system in Western Pennsylvania and one of the biggest in the nation, brought in $6.6 million in 2012, up from $6.1 million in 2011, according to tax documents UPMC made public on Friday.
His total compensation, which includes salary, bonus, retirement and other pay, is more than three times larger than the median salary for a CEO at a large nonprofit teaching hospital, according to a study last year by Harvard University.
UPMC paid 30 other executives and doctors more than $1 million each in 2012, up from 21 employees who were in the $1 million club the year before.
Critics of UPMC jumped on the executive compensation figures as further evidence that the hospital system, which has 62,000 employees and is the state's largest private employer, operates more like a for-profit company than a nonprofit charity.
“How does paying its CEO $6.6 million a year, while cutting patients out of its network in the name of competition, help UPMC fulfill a charitable mission?” said Cathy Doerfler, a registered nurse at Allegheny General Hospital and a member of the Service Employees International Union, which is trying to organize service and maintenance workers at several UPMC hospitals in Oakland and Shadyside.
“I became a nurse to care for people in need, and I'm sure the great nurses and doctors at UPMC did the same. That's what health care is about, and it's why our biggest health care institutions are granted charity status.”
UPMC officials declined to comment.
Pittsburgh officials have highlighted executive compensation as one of the reasons they believe UPMC should be stripped of its nonprofit status. A lawsuit filed last year by former Mayor Luke Ravenstahl, which continues under Mayor Bill Peduto, challenged UPMC's property and payroll tax exemptions, and said the system does not meet the criteria as a purely public charity under state law.
Peduto spokesman Tim McNulty declined to comment.
The federal government requires tax-exempt organizations such as UPMC to file public tax returns. The filings disclosed on Friday cover the financial year that ran from July 1, 2012, to June 30, 2013. Compensation figures for top-paid employees are for the 2012 calendar year.
In the past, UPMC officials have justified Romoff's pay by citing the size and complexity of the health system he runs. It owns 21 hospitals, employs 3,500 doctors and has an insurance division with more than 2.3 million members.
UPMC is ranked in the top 10 by U.S. News & World Report as one the nation's best hospitals.
It is financially successful. In fiscal year 2013, UPMC earned $140 million from operations on total revenue of $10.2 billion. Its net income that year was $359 million.
Romoff has been leading UPMC through a turbulent fight with Highmark Inc., the state's largest health insurer, since 2011 that will culminate at the end of this year when most UPMC facilities and doctors become out-of-network for Highmark insurance subscribers. And Romoff is leading UPMC through the implementation of federal health reform under the Affordable Care Act, the single biggest change to the medical industry in decades.
The CEOs of large urban teaching hospitals such as UPMC had a median salary of $1.7 million in 2009, according to the Harvard study. The median pay of all nonprofit hospital CEOs was less than $600,000 that year.
Romoff was ranked as the third-highest paid CEO among the nation's largest nonprofit hospital systems in 2011, according to Kaiser Health News. His compensation was more than twice that of the CEOs of Mayo Clinic and Cleveland Clinic — hospital systems in U.S. News & World Report's top 10 list.
By comparison, Highmark Inc., the state's largest health insurer and the owner of Pittsburgh's second-largest health system, paid CEO William Winkenwerder $4.3 million in 2013, his first full year on the job. The insurer paid nine other executives more than $1 million each.
West Penn Allegheny Health System, which Highmark bought last year and made the core of its Allegheny Health Network, paid former CEO Christopher Olivia $1.9 million in 2012, including $1.25 million in severance, according to tax documents released on Thursday. Olivia resigned in 2011. The system paid one other executive and seven doctors $1 million or more in 2012.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or firstname.lastname@example.org.
Add Alex Nixon to your Google+ circles.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Black Friday chaos dwindles thanks to earlier deals, online sales
- Nutritional supplement makers, led by GNC, want to create voluntary safety standards
- Employers cut back on holiday office parties
- Fuel cell standoff slows car technology’s rise in popularity
- Convinced Fed will raise rates in December, investors parse meaning of ‘gradual’ increase
- Nimble Regal ready for winter with all-wheel drive
- Key gets stuck in ignition
- $170.4M AmEx charge yields whopping perk for Chinese billionaire
- Stocks close quiet week with little change
- Small stores take big gamble by not upgrading credit card readers
- Stop neighbors from stealing your Internet