The Lund Report analyzed the financial records of Legacy Health obtained from the Oregon Department of Justice. Legacy Health was formed in 1989 by combining Episcopal and Lutheran medical groups into a single chain with five hospitals -- four in Oregon and one in Washington -- plus clinics, a hospice and other health services sites. It employs more than 9,700 people.
Robert Pallari, who resigned as Legacy's president and chief executive officer in 2005, was paid $460,485 for "other compensation," plus $25,878 in benefits that were not taxes. In previous interviews, Legacy officials told The Lund Report Pallari's continued compensation reflected a mix of non-compete payments and deferred compensation -- pay earned while in the workforce but received after retirement when the recipient's tax burden is lower.
In fiscal year 2012, Pallari received $6,320,550 from Legacy through what the company referred to as a "supplemental non-qualified retirement plan," plus another $28,576 in deferred compensation, The Lund Report said.
George J. Brown, the current CEO of Legacy Health, had an official base pay of $766,346 during the non-profit's 2010-11 fiscal year, but add in bonuses and other sources of income and his compensation was $1 million.
Legacy Health's net operating revenue was $1.2 billion for 2011 with profits of roughly $87 million -- down from $125 million in 2010. Profits also dropped in three out of Legacy's four Oregon hospitals. The hospital in Vancouver, Wash., was not included in the analysis.
The Lund report is a website dedicated to educating Oregonians about the inner workings of the healthcare industry.
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