Moonlighting for $1M
Medical center CEO paid to sit on corp. boards
By Christine McConville | Monday, September 28, 2009 | http://www.bostonherald.com
Elaine S. Ullian, chief executive officer of financially strapped Boston Medical Center, almost doubles her $1.3 million annual salary by sitting on the boards of three local companies that also do business with her hospital.
“What is she doing?” said John Gatti, a former government official turned waste and fraud watchdog. “Doesn’t she have enough to do, trying to run BMC with all the problems they have down there?”
Ullian’s lucrative corporate directorships – she also serves on each board’s executive compensation committee – raise questions about her professional commitments during a time of turbulence at the inner-city hospital, which just announced plans to eliminate 40 more jobs and close an intensive-care unit, Gatti said.
Ullian’s corporate alliances also raise questions about purchasing decisions at her medical center, and possible conflicts of interest.
“Even if she isn’t making the purchasing decisions herself, it’s the appearance of impropriety that is wrong,” Gatti said.
Ullian, 61, has served as president and CEO of the 550-bed medical center since it was created in 1996.
In 2008, she was paid nearly $4.8 million from Boston Medical Center, including her $1.34 million salary and a one-time $3.5 million retirement bonus. She is slated to leave the hospital in January.
Last year, Ullian also received $337,480 in cash and stock to sit on Vertex Pharmaceuticals’ board of directors; $275,319 in cash and stock to serve on the board of Thermo Fisher Scientific Inc., a maker of medical instruments and laboratory supplies; and $304,698 to work on medical device maker Hologic Inc.’s board.
Ullian has been a director, attending numerous board and committee meetings, at Vertex since 1997, for Thermo since 2001 and at Hologic off and on dating back to 1996.
Boston Medical Center doctors regularly prescribe a Vertex drug and purchase supplies made by Hologic and Thermo Fisher.
BMC spokeswoman Ellen Berlin said Ullian “has no role in the purchase or procurement of any medical equipment, supplies or drugs for Boston Medical Center.”
“The hospital participates in a group purchasing organization, Premier Inc., for most purchases of drugs, supplies and equipment,” she said.
Ullian declined to be interviewed for this story.
Compared to her peers at other Boston-area hospitals, Ullian’s board positions and compensation stand out.
Brigham and Women’s Hospital President Gary Gottlieb, Massachusetts General Hospital President Peter Slavin, Partners Healthcare President James Mongan and Caritas Christi Health Care President Ralph de la Torre serve only on the board of not-for-profit organizations and are not paid for their time.
Beth Israel Deaconess Medical Center President Paul Levy serves on one corporate board, for energy provider ISO New England, but he gives the money he makes from that position back to the hospital according to a spokesman.
“It’s a personal choice,” said spokesman Jerry Berger, adding that Levy feels his time on the ISO board takes away from his hospital time.
Tufts New England Medical Center CEO Ellen Zane earned $185,886 in cash and stock last year for serving on the board of Parexel International Corp., a Waltham firm that helps drug makers launch their products. Zane also serves as a director of Fiduciary Trust Co., a privately held wealth management firm in Boston.
Zane could not be reached for comment.
While Ullian’s corporate commitments have raised eyebrows among peers and watchdogs, they have raised ire from BMC union officials whose workers are facing more cuts.
“Health-care workers are disturbed by this excess, particularly at a time when BMC is already owed $170 million by the state and, as a result, is threatening to lay off caregivers and reduce services for low-income patients,” 1199 SEIU Executive Vice President Mike Fadel said.
This summer, the medical center sued the state. BMC said it has not been adequately reimbursed for providing health care to the poor.
In early 2009, Ullian encouraged state officials to give more money to the medical center.
“Given the state of the economy, everyone in the health-care community acknowledges the need for shared sacrifice,” she wrote in a January 2009 blog posting, after the hospital announced plans to eliminate 120 jobs and cut spending by 35 percent.
“But we, as a commonwealth, must work together to ensure that short-term cutbacks do not have unintended long-term ruinous effects on our ability to care for those in need,” she added.
Article URL: http://www.bostonherald.com/business/general/view.bg?articleid=1200527
________________________________
Elaine S. Ullian
Annual Compensation as President of Boston Medical Center
$1.3 MILLION DOLLARS
Granted $3.5 MILLION BONUS, which Mayor Menino & 1199SEIU Vice Pres. Mike Fadel recently called “troubling”
Other Compensation listed BELOW is listed in FORBES:
$275, 319.00
$151,904.00
$485,616.00
$304,698.00
$337,480.00
$365,162.00
$433,793.00
$193,987.00
$206,226.00
Elaine Ullian is also Presiding Director
Thermo Fisher Scientific, Incorporated
Waltham , MA
Sector: TECHNOLOGY / Scientific & Technical Instruments
Elaine Ullian is also Director
Hologic, Incorporated
Bedford , MA
Sector: HEALTHCARE / Medical Appliances & Equipment
Elaine Ullian is also Director
Vertex Pharmaceuticals, Incorporated
Cambridge , MA
Sector: HEALTHCARE / Drug Manufacturers – Other
61 Years Old
Ms. Ullian, age 61, has been a director of the Company since July 2001. She has been the President and Chief Executive Officer of Boston Medical Center, a 550-bed academic medical center affiliated with Boston University, since July 1996. Ms. Ullian is also a director of Vertex Pharmaceuticals, Inc. and Hologic Inc.
Forbes Ranking
Thermo Fisher – Forbes 400 Best Big Companies in 2009
Thermo Fisher – 495th on the Forbes Global 2000 in 2008
Hologic – 1,783rd on the Forbes Global 2000 in 2008
Thermo Fisher – 981st on the Forbes Global 2000 in 2007
Thermo Fisher – 1,666th on the Forbes Global 2000 in 2006
Director Compensation (Thermo Fisher Scientific, Incorporated)
Fees earned or paid in cash $83,750.00
Stock awards $125,044.00
Option awards (in $) $66,525.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $275,319.00
Director Compensation (Thermo Fisher Scientific, Incorporated)
Fees earned or paid in cash $85,500.00
Stock awards $0.00
Option awards (in $) $66,404.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $151,904.00
Director Compensation (Thermo Fisher Scientific, Incorporated)
Fees earned or paid in cash $97,000.00
Stock awards $0.00
Option awards (in $) $209,709.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $178,907.00
All other compensation $0.00
Total Compensation $485,616.00
Director Compensation (Hologic, Incorporated)
Fees earned or paid in cash $95,100.00
Stock awards $0.00
Option awards (in $) $209,598.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $304,698.00
Director Compensation (Vertex Pharmaceuticals, Incorporated)
Fees earned or paid in cash $41,250.00
Stock awards $0.00
Option awards (in $) $296,230.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $337,480.00
Director Compensation (Vertex Pharmaceuticals, Incorporated)
Fees earned or paid in cash $42,000.00
Stock awards $0.00
Option awards (in $) $323,162.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $365,162.00
Director Compensation (Vertex Pharmaceuticals, Incorporated)
Fees earned or paid in cash $38,625.00
Stock awards $0.00
Option awards (in $) $395,168.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $0.00
Total Compensation $433,793.00
Director Compensation (Valeant Pharmaceuticals)
Fees earned or paid in cash $72,750.00
Stock awards $120,667.00
Option awards (in $) $0.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $570.00
Total Compensation $193,987.00
Director Compensation (Valeant Pharmaceuticals)
Fees earned or paid in cash $0.00
Stock awards $200,415.00
Option awards (in $) $0.00
Non-equity incentive plan compensation $0.00
Change in pension value and nondisqualified compensation earnings $0.00
All other compensation $5,811.00
Total Compensation $206,226.00
________________________________
5 West CCU at Boston Medical Center, at Menino Campus, closing due to “FISCAL REALITIES” , as BMC president, Elaine Ullian, who makes
$1.3 MILLION/ per year, is about to “retire” with $3.5 MIILLION BONUS !!!
________________________________
From: Communications, Corporate
Sent: Wed 9/23/2009 11:50 AM
To: AllStaff
Subject: CORRECTION — 5 West Menino Closure
Please note: the previous e-mail titled “5 West Menino Closure” contained the wrong date. The correct date is November 1, 2009.
5 West Menino Closure
As we have heard over the past few months, these are challenging times for Boston Medical Center.
Earlier today, staff on 5W – an ICU in Menino Pavilion – was informed that the unit will be closing and that the beds will be consolidated into other ICUs on November 1, 2009. This is a fiscally prudent measure as BMC works within the new financial realities of Fiscal Year 2010.
As a result of this unit closure, approximately 40 staff will be affected. They have received notices that the unit is closing and that their positions are being eliminated. As the union contracts provide, bumping rights will take place and some staff may move into vacant positions.
If you have questions about this process, please contact Human Resources at 638-8582.
______________________________________________________________________________
Mayor Menino hits hospital chief’s bonus, union sees ‘excess’
By Christine McConville
Tuesday, September 22, 2009 | http://www.bostonherald.com |
Outgoing Boston Medical Center Chief Executive Elaine Ullian drew heavy fire from longtime pal Boston Mayor Thomas M. Menino yesterday for pocketing a $3.5 million bonus last year while the struggling hospital axed 120 full-time jobs.
“It’s very exorbitant,” Menino said. “The $3.5 million giveaway to her at this time, especially since the Boston Medical Center has been under some really difficult times . . . I have some issues by that.”
Ullian’s pay package, which included a $1.3 million annual salary plus the $3.5 million bonus, has angered health-care professionals and fiscal watchdogs.
Services Employees International Union 1199 Vice President Mike Fadel called Ullian’s pay “troubling.” He said many union members support Attorney General Martha Coakley’s probe of executive compensation at local hospitals.
“There is clearly a broader problem and pattern of excess,” Fadel said.
“How much do we really have to pay people to run a hospital?” asked Boston University Professor Alan Sagal, who has studied the ever-increasing salaries at nonprofit hospitals.
He said soaring pay in health care can be linked to the private sector.
“The inequality from the top to the bottom is much greater in the private sector,” said Sagal, who teaches a course on health-care policy and finance. “But the private sector casts a big shadow on health care.”
Late last year, Ullian eliminated 120 full-time jobs and cut spending by 35 percent because, according to a hospital statement, “the state government will only pay Boston Medical Center 64 cents for every dollar it costs to provide care to our low-income patients.”
In July, the medical center sued the state, saying low reimbursement rates had pushed the hospital to the brink of financial collapse.
“If the state does not pay BMC fairly for the services we provide, BMC will not be able to survive,” Ullian wrote in a blog posting at the time.
Yesterday, trustees at the medical center, where the region’s poorest residents obtain care, defended the 61-year-old executive’s pay and bonus.
Board chairman Edmund “Ted” English called Ullian “one of the most competent and successful hospital CEOs in the country.
“She is primarily responsible for the success of Boston Medical Center over the past 15 years,” he said.
The medical center declined to provide a copy of Ullian’s contract to the Herald. Her pay, which was first reported by WCVB-Channel 5, was disclosed in the medical center’s annual financial statement.
Ullian has announced plans to retire from her post in January 2010.
