Top El Camino Hospital salaries made public Top El Camino Hospital salaries made public (November 18, 2005)

Form 990s released on time, as promised

By Molly Tanenbaum

Tax documents released this week show El Camino Hospital CEO Lee Domanico received more than $900,000 in total compensation in the fiscal year ending June 30, and five other members of the hospital's management team earned more than $300,000 during the period.

Domanico, whose compensation was not made public until a court action was filed by the Voice earlier this year, said in a cover letter provided to news media Tuesday that although the Internal Revenue Service ruled in 1997 that the hospital did not need to file Form 990s, the disclosure forms for nonprofit organizations, El Camino voluntarily has provided the information.

"Despite this ruling, the El Camino Hospital decided to prepare these forms to provide greater transparency," Domanico's letter stated.

In its lawsuit, the Voice contended that, as a nonprofit organization with a publicly elected board, the hospital was required to make the CEO's salary and benefits public. The case was settled when the hospital released Domanico's total compensation for the prior year, and the hospital's board also agreed to file a Form 990 this month for the fiscal year ending June 30.

Domanico's cover letter accompanying the tax documents also said the salaries of El Camino's executives should be compared to those of similar "independent, free-standing hospitals with revenues in excess of $300 million." Hospital spokesman Jon Friedenberg said Domanico's salary is just above the 50th percentile for CEO compensation at comparable hospitals.

The tax forms reveal that six employees, mostly executives and one nurse, make more than $300,000 a year in total compensation and that four others earn between $100,000 and $300,000.

Domanico received a total of $943,104 for the year ending June 30, 2005, including his base salary of $492,291 -- up from $441,000 the prior year -- a $173,306 bonus, and $19,380 interest forgiveness on his $850,000 home loan. In addition, he received a $9,000 car allowance and $249,127 in other benefits, including retirement and health insurance.

Below Domanico, the hospital's top earners based on total compensation are Marla Gularte, chief financial officer, who earned $346,416; Diana Russell, vice president of patient care services, $330,169; Jon Friedenberg, president of the El Camino Hospital Foundation, $326,488; chief information officer Mark Zielazinski, $324,594; and Anne Fyfe, vice president, business development, $323,895.

"The hospital has been unfairly maligned as being not open or transparent enough," said Friedenberg, "but in fact the hospital is uncommonly open and transparent with respect to finances and budget."

Friedenberg referred to the hospital's monthly practice of discussing a detailed financial report at each board meeting, in addition to an annual open session budget meeting in which the directors vote upon the year's budget publicly, as proof that El Camino was already in the habit of disclosing financial information to the community.

"This is very uncommon for hospitals of any kind," he said.

"The act of releasing the Form 990 is certainly an effort to address any concerns or any questions that anybody has about the hospital's commitment to openness," he added.

According to a study by Sullivan, Cotter and Associates that was included with the Form 990s on Nov. 15, CEOs at similar hospitals to El Camino received a median base salary of $426,000 in 2004, putting Domanico's 2004 salary of $441,000 just above that.

Other hospital CEOs can make anywhere from $350,000 to $900,000, and the head of the 40-hospital chain Catholic Healthcare West makes $1.4 million.

Domanico's salary for the 2006 fiscal year will be decided at the Dec. 7 board meeting.

E-mail Molly Tanenbaum at mtanenbaum@mv-voice.com

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