Issue link: https://beckershealthcare.uberflip.com/i/1372822
32 POPULATION HEALTH 32 CEO / STRATEGY Boston has more hospital chiefs on corporate boards than other cities, investigation finds By Hannah Mitchell and Kelly Gooch A n investigation published by e Boston Globe reveals that it is commonplace for hospital chiefs in Boston to work as directors of publicly traded companies, and that they do so at rates above the national level. Researchers found that five of the seven CEOs and presidents of Boston's major teaching hospitals serve as directors of publicly traded companies. In addition to the five hospital heads, the former CEO of Boston Chil- dren's Hospital, who retired March 31, and the former president of Brigham and Women's Hospital, who stepped down March 1, also held positions on corporate boards. By comparison, only three of the nation's 18 most elite hospitals out- side Boston, as ranked by U.S. News & World Report, are headed by executives on corporate boards, the investigation found. Critics of hospital chiefs' involvement on corporate boards say the po- sitions raise concerns about potential conflicts of interest and could distract leaders from hospital priorities. In one example, Brigham and Women's former president attended between 30 and 40 board com- mittee meetings called by the two companies in 2019. Hospital trustees and chiefs of the seven Boston hospitals declined interview requests from the Globe. However, they issued statements to the newspaper defending outside directorships, saying they can increase collaboration with critical sectors, such as the bioscience sector, and that potential conflicts of interest can be avoided with the proper safeguards. e seven heads or former heads of Boston's major teaching hospitals who serve on corporate boards are: 1. Laurie Glimcher, MD. President and CEO of Dana-Farber Cancer Institute. Annual hospital compensation: $1.8 million Company: GlaxoSmithKline, $180,000; Analog Devices, $139,145* 2. Peter Slavin, MD. President of Massachusetts General Hospital. Annual hospital compensation: $2.4 million Company: Amwell, $475,003 3. Sandra Fenwick. Former CEO of Boston Children's Hospital. Annual hospital compensation: $2.7 million Company: Teladoc Health, $1,058,250* 4. Kevin Churchwell, MD. CEO of Boston Children's Hospital. Annual hospital compensation: $1.6 million Company: Cyclerion erapeutics, $141,253* 5. Elizabeth Nabel, MD. Former President of Brigham and Women's Hospital. Annual hospital compensation: $2.4 million Company: Medtronic, $385,054; Moderna, $487,500 6. Kate Walsh. President and CEO of Boston Medical Center. Annual hospital compensation: $2.6 million Company: Beam erapeutics, $817,500 7. Michael Tarnoff, MD. Interim President and CEO of Tus Medical Center. Annual hospital compensation: $1.1 million Company: AngioDynamics, $37,726* *An asterisk represents a partial salary because they joined the board aer the start of the year. e investigation, published April 3, was conducted by the Globe Spotlight Team. For the investigation, Equilar, a corporate leader- ship data firm, conducted an analysis for the Globe, and researchers examined data from the U.S. Securities and Exchange Commission, Association of American Medical Colleges, Children's Hospital Asso- ciation, U.S. News & World Report and individual hospitals. n North Carolina health system CEO delays departure to finalize merger By Ayla Ellison R andolph Health CEO Angela Orth is extending her employment with the Asheboro, N.C.-based system while a merger with American Health- care Systems is finalized, the Triad Business Journal reported April 15. Randolph Health, which filed for Chapter 11 bankruptcy last year, entered a merger deal with Roanoke, Va.-based American Healthcare Systems in October 2020. The two organizations are working on finalizing the agreement, which involves American Healthcare acquiring Randolph Health's assets and overseeing its operations. Randolph Health announced in March that Ms. Orth would be stepping down as CEO April 15. As the sys- tem works to complete the transaction, Ms. Orth decid- ed to extend her employment through June 4. "The people of Randolph County depend on local ac- cess to lifesaving, high-quality care, and finalizing the transaction with American Healthcare Systems LLC, offers the best option to secure the future of health- care in Randolph County," Ms. Orth said, according to the report. n