Joe Robertson’s Compensation Tops Million Dollars
The seven highest paid executives at Oregon Health & Science University – Dr. Joe Robertson, Lawrence Furnstahl, Dr. Mark Richardson, Jeannette Mladenovic, Peter Rapp, Cynthia Grueber and Connie Seeley – together took home slightly more than $6.6 million in compensation during fiscal 2016, according to financial information released to The Lund Report.
OHSU’s bottom line continues to remain healthy. By the end of this fiscal year – on July 1, 2017 – OHSU projects having a net worth of more than $3 billion, according to Furnstahl, executive vice president and chief financial officer.
Recently, OHSU’s board approved its fiscal year 2017 budget, which began on July 1 and includes operating revenue of $2,814 million, up 6 percent from the previous year and operating expense of $2,689 million, also up 6 percent with operating income (revenue minus expense) of $125 million, which OHSU intends to invest in its capital budget -- new buildings, renovations, equipment and computers. That budget includes capital expenditures of $193 million for new projects.
OHSU’s hospital also expects to generate a gross operating margin of 12 percent, Furnstahl told the board, with half of those dollars allocated to research and education, leaving the reminder for reinvestment in the clinical enterprise.
The budget for OHSU Partners – which includes its hospital, Salem Health, and Tuality Health -- is expected to rise 8 percent to $2.7 billion, generating $254 million of operating income, with OHSU having a fixed percentage share of $208 million. Portland Adventist recently signed a letter of intent to join OHSU Partners.
Peter Rapp, who had been executive director of OHSU Healthcare, is now the CEO of OHSU Partners, while Norm Gruber is president. Earlier he was president and CEO of Salem Health.
Salaries of OHSU Executives
Dr. Joe Robertson, MBA, president of OHSU, took home the largest compensation package in fiscal 2016 -- $1.7 million – representing a 12.2 percent increase. His bonuses and incentives reached $397,447 compared to $240,473 the prior year.
Dr. Mark Richardson, MBA, executive vice president and dean of OHSU’s School of Medicine, was the second highest wage earner in 2016, commanding a compensation package of slightly more than $1 million, including bonuses and incentive pay of $157,969 for an overall increase of 3.05 percent.
Richardson was critically injured while doing home repairs, and is intensive care and is not expected to return to OHSU.
Peter Rapp, who had been executive director of OHSU healthcare and executive vice president, has since become CEO of OHSU Partners. In his earlier capacity, he earned $968,491 in compensation during fiscal 2016, representing a 1.39 percent decrease, while his incentive pay and bonuses were $159,359, considerably less than the prior year when he received $240,473. It’s unknown how much Rapp is earning in his present position. He also received $55,506 in vacation time December 2015 when he assumed his new role at OHSU Partners.
Lawrence Furnstahl, executive vice president and chief financial officer, earned $944,898 in fiscal 2016, representing a 2.27 percent increase, while his base pay was $600,811, and he received $162,461 in bonuses and incentive payments.
Cynthia Grueber, interim senior vice president at OHSU and executive director of OHSU Healthcare, was paid $860,978 in October 2015, reflecting her interim status and had been paid $590,121 from June 29 through September 2015. Her incentive and bonus payments were $112,295 in 2016.
Dr. Jeannette Mladenovic, MBA, MACP, executive vice president and provost, took home $767,250 representing a 3.19 percent increase in fiscal 2016, which included $136,888 in bonuses and incentive payments.
Connie Seeley, senior vice president of public affairs and chief of staff, earned $386,374 during fiscal 2016, representing a 9.31 percent increase. Her bonuses and incentive payments reached $62,812. Seeley also sits on the board of the Oregon Business Association, but does not draw any compensation in that capacity.
OHSU compensation figures include the following:
- Base salary
- Bonus/incentive pay
- OHSU-funded retirement contributions, and
- OHSU-covered benefit amounts
In the latest financial information analyzed by The Lund Report, OHSU reported the most revenue of any Oregon hospital, by far, reflecting its role as an academic research institution that provides a disproportionate share of the state’s complex, high-cost treatments.
Finances, year 2014:
- Net income: $116,349,256, up 33.41% from 2013.
- Net patient revenue: $1,294,299,461, up 9.08%.
- Charity care: $69,710,175, down 20.69%.
- Profit margin: 8.52%, up from 7.02% a year earlier.
Size and scope, 2014:
- Available beds: 551, up from 529 the prior year
- Inpatient days: 162,281, down .41%.
- Emergency department visits: 37,145, up 2.02%.
- Outpatient visits: 858,241, up 2.77%.
Diane can be reached at [email protected].