UPMC's statement on IRS Form 990 filings
In accordance with rules established by the Internal Revenue Service for certain federally tax-exempt organizations, UPMC has filed its Form 990s for the fiscal year ended June 30, 2006. These filings provide information on UPMC’s mission, programs, and financial condition.
To provide greater transparency and clarity, UPMC has filed consolidated Form 990s for the 2006 fiscal year. It has submitted one group return for 34 entities, along with a parent return based on IRS regulations. This consolidated approach is designed to improve the understanding of UPMC’s operations and the relationship among its various entities.
Under the leadership of President and CEO Jeffrey A. Romoff and his executive team, UPMC has grown to a $6 billion organization with 43,000 employees, 19 hospitals, 400 outpatient sites and doctors’ offices, a one-million-member health insurance division, and commercial and international ventures. It is the only organization in the country that has earned “honor roll” status in both U.S. News & World Report’s 2006 “America’s Best Hospitals” and “America’s Best Health Plans” rankings.
On a typical day, more than 2,600 people are cared for as patients in UPMC hospitals; more than 1,000 use the emergency departments; 8,000 are treated at outpatient clinics and facilities; and 1,200 receive services in their homes through UPMC’s home health programs. UPMC also provided $227 million worth of free and uncompensated care in the last fiscal year and nearly $60 million in charitable donations and services, including more than 3,000 separate initiatives to meet community needs and to address health disparities for underserved populations.
UPMC serves as an important catalyst for the economic revitalization of western Pennsylvania. It has joined with such industry leaders as IBM, Cerner, Alcatel, and dbMotion to develop innovative products and services for the health care industry. These alliances are creating new jobs and economic activity in Pittsburgh. UPMC is also exporting its medical and technological expertise to places such as Italy, Ireland, and Qatar, which creates new revenue to reinvest in the health care needs of this region.
Compensation for UPMC executives is determined by an independent committee of the board of directors, who are members of the local community and are advised by outside compensation consultants. Compensation is tied to performance through the annual evaluation of written, clearly defined goals regarding quality of care, community benefit, financial measures, and other factors important to UPMC. Compensation reported for executives includes both annual pay and long-term incentives. In setting compensation, the board committee considers comparative data for both non-profit and for-profit organizations of comparable scope. About a third of UPMC’s revenue is derived from taxable, for-profit businesses.
Compensation for Mr. Romoff totaled $3.3 million in the fiscal year ended June 30, 2006, an increase of 17 percent over the prior year. The UPMC board of directors considers his compensation appropriate, given the organization’s size, complexity and accomplishments.
Elizabeth Concordia, senior vice president, academic and community hospitals, received $1.08 million. The five highest paid employees, other than officers, as disclosed in the UPMC group filing, are: James Luketich, MD, $1.4 million; Amin Kassam, MD, $1.07 million; Michael Horowitz, MD, $1.07 million; and James Kang, MD, $1.03 million. Ron Forsythe, former vice president of facilities and support services, received $1.2 million, including contractually required severance pay.