About Chelyen Davis:
Chelyen Davis is health reporter for The Free Lance-Star
Another look at MWHC’s salaries
The recent blog post and story about the salaries paid to Mary Washington Healthcare executives generated a lot of comment and mail. Several readers asked that the salaries be placed in context by comparing them to the salaries paid to the top executives of other hospital chains.
I had thought of doing that prior to publication but soon realized that it was not as easy as it sounds. Guidestar.org, a nonprofit web site, is a good source for 990 information, but the site did not have the 2009 filings.
Also, which hospitals are comparable to Mary Washington? Do you use Sentara, the Tidewater chain with eight hospitals, including Potomac in Woodbridge? Or perhaps Inova, the Northern Virginia chain with five hospitals?
It seemed to me that Centra Health and Valley Health, two nonprofit systems in central Virginia, made better comparisons. I contacted both companies and asked for their 990s for 2009. Valley supplied theirs, and Centra asked me to wait since they were filing an amended return. Last week they sent a copy of their return.
Centra Health is a three-hospital chain based in Lynchburg that includes Lynchburg General, Virginia Baptist and Southside Community. Total number of beds for the three hospitals is 627. Revenues in 2009 were $535 million.
Valley Health is a four-hospital chain based in Winchester. Winchester Medical Center is its flagship hospital. Other hospitals in the chain include Page Memorial, Shenandoah Memorial and Warren Memorial. The total number of beds in the chain is 537. Revenues in 2009 were $539 million.
Mary Washington is a two-hospital chain, Mary Washington and Stafford. Total number of beds is 512. Revenues in 2009 were $666 million.
As you can see from the charts below, Fred Rankin, president and CEO of Mary Washington, earns more in total compensation than the other two chief executives. His company has fewer hospitals and fewer beds than the others, but it generates more revenue. Rankin received a large bonus is 2009. The other chief executives did not.
As for the assistants, it’s hard to make comparisons because it’s not clear what each of them does. Even so, the salaries are close. The three chief financial officers, for example, earned $497,000, $457,000 and $437,000 in 2009.
|George Dawson||President, chief executive officer||$747,281|
|Dr. Chalmers Nunn||Senior v.p., chief medical officer||$499,351|
|Lewis Addison||Senior v.p., chief financial officer||$496,712|
|Thomas Jividen||Executive v.p.||$492,569|
|E.W. Tibbs||Senior v.p., operations||$423,162|
|Mark Merrill||President, chief executive officer, Valley Health||$836,912*|
|Alfred Pilong||Pres., Winchester Med. Center; senior v.p., Valley Health||$479,585|
|J. Craig Lewis||Senior v.p., chief fin. officer, Valley Health||$457,192|
|M. Todd Way||Senior v.p., Valley Health||$440,057|
|Dr. Terry Sinclair||Vice p., medical staff affairs, Wincester Med. Center||$375,468|
|Fred Rankin||President, chief executive officer||$955,282|
|Walter Kiwall||Executive v.p., chief operating officer||$501,843|
|Dr. J. Thomas Ryan||Executive v.p., chief medical officer||$489,334|
|Sean Barden||Executive v.p., chief financial officer||$436,698|
|Kevin Van Renan||Senior v.p., administrator||$382,647|
* Mark Merrill became president and CEO of Valley Health on June 8, 2009. His compensation on the 990 tax return is $485,409. If he had worked the entire year at the same rate, his compensation would be $836,912, the amount in the table.