HOLYOKE, Mass. (WWLP) – Holyoke Medical Center paid its former CEO close to $1 million in excessive benefits over four years before catching their mistake.
Former CEO Hank Porten wasn’t paid directly through the hospital, but through H.C. Management Services, a subsidiary of Holyoke Medical Center. Their tax form, submitted this month, showed the hospital paying its former CEO Hank Porten close to $1 million over the past four years that he should not have been paid.
Porten resigned in September 2013, but continued to be paid $27,000 a month through March. Porten now lives in Florida. In a statement send to 22News, Holyoke Medical Center’s new CEO told 22News that Porten has repaid his debt of $860,518 in full and his is no longer employed as a senior adviser. Porten paid this money back the day the tax form for the fiscal year was due.
According to its Form 990, Porten took vacation time and recorded it as work time, where he was overpaid by $175,737. Porten was also paid $151,356 as a senior adviser after he resigned, but never did any work that the Board saw. Porten also received cost of living increases in 2011, ’12 and ’13 totaling $127,781 that was determined to be an excessive benefit. Porten did get three supplemental pension payments, which were labeled “life insurance” bonus payments”, totaling $395,336 which was another over payment.
The 22News I-Team will continue to follow the money and we will reveal new details on this agreement.
Below is the entire statement from Holyoke Medical Center President and C.E.O. Spiros Hatiras:
The Valley Health Systems (VHS) Board of Directors has completed a thorough review and correction of the former CEO’s past compensation and part-time employment contract.
While the compensation for the previous CEO reflected his many years of service, accomplishments in leadership and willingness to stay on past his originally proposed retirement date, the review did identify some items requiring correction. Those issues included accounting of vacation time; supplemental life insurance bonus payments; and cost of living increases. The part time employment contract originally anticipated that services would be required to support the transition to new leadership; ultimately, only a limited amount of the former CEO’s time was required.
The former CEO has repaid VHS the entire excess benefit amount and, by mutual agreement, has terminated the part-time employment contract. The correction and change has been reported to the IRS on form 990 with a copy to the Attorney General’s office as required by law.
To further protect the institution and ensure future fiduciary responsibility, the current VHS board and hospital leadership have made the proper internal changes for greater oversight, transparency and accountability, both at the organizational and board level.