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Boston Globe

In 2023, Mass. hospitals pushed executive pay to new heights

That total reflected base salary, bonus pay, retirement benefits, and more. It was a 40.1 percent increase from the prior year, and included roughly $4.3 million in bonus and incentive pay. The amount is the highest total compensation reported by a Massachusetts hospital CEO in at least the last decade. In a statement, MGB Board Chairman Scott Sperling stood by Klibanski's compensation package, which he said was based on industry benchmarks with input from a consultant. Advertisement 'The challenges facing our industry are many, and the competition for top talent is unprecedented. It is imperative that we actively and robustly recruit and retain at every level to ensure we can expertly care for patients and communities for years to come,' Sperling said. 'Our objective, on average, is to base compensation for our senior executives at the 50th percentile of the current market, with performance driving any adjustments,' he said. Advertisement Previously, the health system has pointed to the leaders at other national health systems than her Massachusetts colleagues. Indeed, her 2023 salary ranked below some, including CEO of New York-based Northwell Health ($9 million) and Arizona-based Banner Health ($14 million). However Klibanski eclipsed others, including the CEOs at Cleveland Clinic ($7 million), and Mayo Clinic ($4.3 million). While the most recent compensation report lags by two years, Sperling pointed to how Klibanski had handled recent challenges as an example of what he said was her 'clear-eyed leadership,' including disruptive federal actions that have threatened research and an inpatient capacity crises. Dr. Anne Klibanski, with then-Governor Charlie Baker, pictured speaking at a coronavirus briefing in 2020. Sam Doran/Pool 'The Board of Directors fully supports Dr. Klibanski's compensation package ... which reflects her achievements and stewardship of an organization of this size and complexity,' Sperling said. Klibanski had plenty of company in the ranks of well-paid Massachusetts hospital executives in 2023. Dr. Kevin Tabb, who heads the state's second largest health system, Beth Israel Lahey Health, also reported a sizable increase, with his $5.4 million in total compensation representing a 93 percent increase from the prior year. The increases were a return to compensation Tabb reported in 2021, and were largely thanks to increases in bonus and incentive comp, as well as retirement and other deferred compensation. Dr. Eric Dickson, chief executive of UMass Memorial Health, reported a nearly 26 percent increase in total comp, to $3.9 million. The hospital said it changed its retirement plan in 2023, prompting an early payout of some benefits. That shift subsequently boosted the incentive compensation of several executives, including Dickson. Advertisement Similarly, Dr. Michael Gustafson, who left as president of UMass's flagship hospital, UMass Memorial Medical Center, in July 2023, reported a 60 percent increase in total comp to $2.8 million. Michael Dandorph, who helms Tufts Medicine, also reported a double digit increase in total comp. His $2.1 million total compensation was 32 percent higher than the previous year. Dr. Alastair Bell, CEO of Boston Medical Center Health System since June 2023 and its president since November 2022, saw his total comp increase by 34 percent to $1.9 million. Large jumps weren't universal. Other executives saw smaller changes including Dr. Kevin Churchwell ($3.2 million, down 5 percent) at Boston Children's Hospital, Dr. Mark Keroack ($2.8 million, a 4.8 percent increase) at Baystate Health where he served until 2024, and Dr. Laurie Glimcher ($2.5 million, up 5 percent) at Dana-Farber Cancer Institute which she led until 2024. Dr. Kevin Churchwell, CEO of Boston Children's Hospital, saw his compensation go down 5 percent from 2022 to 2023. Erin Clark/Globe Staff The data tracks with a study by the Harvard School of Public Health, which showed that executives overseeing large teaching hospitals nationally were the highest compensated. The study, However, there was no association between compensation and the degree of community benefit a hospital provided, nor was higher compensation associated with better patient mortality rates or readmission rates, according to the study. The Massachusetts Nurses Association lambasted executives for the pay, particularly as they said the quality of care at hospitals across the state has suffered. 'At a time when nearly 80% of Massachusetts nurses say hospital care has gotten worse in the last two years, it is deeply troubling that hospital CEOs are taking home enormous compensation packages while continuing to fail to ensure safe conditions for patients and direct care providers,' the nurses union said in a statement. Advertisement 'The very same executives receiving millions of dollars per year are making decisions not to invest in bedside care or listen to caregivers,' it said. The salaries reflect a time when hospitals were just beginning to climb out of the effects from the pandemic. Volume and revenue had begun to rebound in the year that for many hospitals ended September 2023, with Often, hospital executive compensation has been tied to a system's size and comparisons to others in the market, said Susan Malanowski, managing director of compensation consultant the Wilson Group. There are pressures on boards to hire competent executives, and the pool of applicants is smaller than it has been in the past. 'To be competitive, it is what it is,' Malanowski said. 'There is not really a big supply of competent CEOs or c-suite (executives).' While the most recent compensation data is for 2023, hospitals will be harder pressed to support large pay packages in 2025 and onward, Malanowski predicted. Uncertainty at the federal level will mean non-profit institutions will have to be more circumspect about where they set base salaries, and compensation increases are projected to be smaller. Advertisement Jessica Bartlett can be reached at