D-H’s Weinstein doubled earnings in 2017

  • James Weinstein, Chief Executive Officer and President of Dartmouth-Hitchcock, during a Valley News editorial board meeting in West Lebanon, N.H., on Aug. 7, 2014. Valley News - Jennifer Hauck Chief Executive Officer and President of Dartmouth-Hitchcock James Weinstein, during a Valley News editorial board meeting in West Lebanon on Thursday. Valley News — Jennifer Hauck

  • Dartmouth Hitchcock Joanne Conroy in her 'Monitor' interview on Tuesday, September 25, 2018.

Valley News Staff Writer
Friday, May 24, 2019

LEBANON — Although he stepped down as Dartmouth-Hitchcock CEO in July of 2017, James Weinstein received $3.3 million in total compensation that year, more than double what he earned in 2016, according to a recently released tax filing for the Lebanon-based health system.

Weinstein, whose nearly six-year tenure as the hospital system’s leader included expanding its footprint in the Twin States as well as financial losses that required restructuring, earned a base salary of $1.6 million for 2017. That was higher than his total compensation packages of $1.47 million in 2016 and $1.49 million in 2015.

His 2017 package also included two $750,000 payments, a bonus payment as part of a “transition agreement” and a deferred compensation payment as part of an “executive retention agreement,” according to the tax filing for the nonprofit, known as a 990.

Bonus and deferred compensation payments are “part of a standard clause for agreements with hospital executives,” D-H spokesman Rick Adams said in an email on Tuesday.

Weinstein joined Microsoft Healthcare and Polaris Partners, a Massachusetts-based health care investment firm, last year.

Weinstein’s successor Dr. Joanne Conroy, who began work at D-H in August of 2017, earned total compensation of $420,000, including a base salary of $353,000 that year.

Adams did not respond to a question about the discrepancy between Weinstein and Conroy’s prorated earnings, but said “the Dartmouth-Hitchcock Board of Trustees is responsible for setting and reviewing executive compensation, in conformity with IRS regulations and established industry practice. Final approval is granted by the Board of Trustees on the review and recommendation of the Board’s Talent Development and Compensation Committee.”

For comparison, John Brumsted, the CEO of the Burlington-based University of Vermont health system, made $2.1 million in 2016, according to UVM’s most recent 990 tax form. Eileen Whalen, the chief operating officer of the UVM Medical Center, made $1.1 million that year.

UVM is on a different fiscal year, so salary information for 2017 won’t be available until August, UVM Medical Center spokesman Michael Carrese said in an email.

Other high earning administrators at D-H in 2017 included Chief Strategy Officer Stephen LeBlanc, whose package totaled $1 million; Chief Financial Officer Dan Jantzen, who earned about $858,000, and Chief Quality and Value Officer George Blike, who earned $835,000.

Among medical staff, high earners included Lebanon-based neurosurgeon Nathan Simmons, who earned $1.2 million; Manchester-based dermatologist Daniel Stewart, who earned $1.1 million; Lebanon-based pediatric neurosurgeon David Bauer, who earned $975,000; Lebanon-based cardiac surgeon Jock McCullough, who earned $885,000, and Bennington, Vt.-based dermatologist Lixia Ellis, who earned $828,000.

The leaders of D-H’s smaller member hospitals in the Upper Valley earned considerably less.

Alice Peck Day Memorial Hospital CEO Sue Mooney earned $500,000 and New London Hospital CEO Bruce King — a D-H employee — earned $431,000, according to their 990 forms. Mt. Ascutney Hospital and Health Center in Windsor is on a different fiscal year, so 2017 salaries are not yet available. In 2016, Mt. Ascutney had an interim CEO.

The number of D-H employees earning more than $100,000 grew from about 1,300 in 2016, to about 1,380 in 2017.

In addition to offering a glimpse into CEO compensation, the tax form illustrates some trends in hospital spending.

D-H spent less for its pension plan and interest payments in fiscal year 2018 than in 2017, according to the 990 for the Dartmouth-Hitchcock Clinic, one of the three entities for which D-H files a 990. It also files for Mary Hitchcock Memorial Hospital and Dartmouth-Hitchcock Medical Center.

Pension plan costs dropped about $7 million, from about $20.4 million in the fiscal year ending June 30, 2017, to $13.5 million in the year ending June 30, 2018.

This drop was due to D-H “freezing” its traditional pension plan, also known as a defined benefit plan, in 2017, Adams said in his email.

Interest payments dipped $1 million, from $6.1 million to $5.1 million, due to bond refinancing D-H undertook in December 2017 and March 2018, Adams said.

At the same time, expenses went up for medical supplies, information technology and advertising. Medical supplies saw the larger increase, going up about $7.4 million, from $77.1 million to $84.5 million. Information technology expenses increased nearly $1 million, from $4.8 million to $5.6 million. Advertising increased from $863,000 to $1.2 million.

Adams attributed these increases to more “patient activity: more patients require concurrent increases in those expenses,” he said.

Valley News Staff Writer Nora Doyle-Burr can be reached at ndoyleburr@vnews.com or 603-727-3213.