Former Holyoke (Mass.) Medical Center President and CEO Hank J. Porten has refunded the hospital $860,000 in overpayments, according to a report from The Republican.
The hospital overpaid Mr. Porten — who served as president and CEO for 28 years before stepping down in October 2013 — for consulting services after he stepped down, according to the report. As of March, he had received $151,356 in compensation under a senior advisor compensation agreement, although "no work product was produced," the Form 990 the hospital filed with the Internal Revenue Service stated. The tax form also stated the balance of Mr. Porten's consulting agreement was cancelled and no future payments would be made.
Additionally, the hospital's Form 990 reveals hospital officials determined Mr. Porten had been overpaid a total of $395,336 in from 2011 to 2013 for his pension. The payments were determined to be excess benefit under federal income filing regulations, according to the report. Furthermore, $121,781 Mr. Porten received for cost-of-living increases were also determined to be an excess benefit, and vacation the hospital leader recorded as work time in 2011 and 2012 resulted in an additional $175,737 in overpayments.
Spiros Hatiras, the current hospital president and CEO, told The Republican Mr. Porten has paid the hospital back with interest. Mr. Porten could not be reached for comment, according to the report.