Memorial Sloan Kettering Cancer Center

CharityWatch's rating of Memorial Sloan Kettering Cancer Center includes the financial activities of the legal entities included in its combined audited financial statements for the fiscal year-ended 12/31/2019. This includes the public charity, Memorial Sloan Kettering Cancer Center, as well as the following public charity incorporated affiliates: Memorial Hospital for Cancer and Allied Diseases (the Hospital); Sloan Kettering Institute for Cancer Research (the Institute); S.K.I. Realty, Inc.; MSK Insurance US, Inc. (MSKI); the Louis V. Gerstner Jr. Graduate School of Biomedical Sciences; Prostate Cancer Clinical Trials Consortium, LLC; Ralph Lauren Center for Cancer Care and Prevention; and MSK Proton, Inc. 

According to the Memorial Sloan Kettering Cancer Center (the Institute) combined audit of December 31, 2019 (Note 15, Subsequent Events):

"Due to the global viral outbreak caused by Coronavirus Disease 2019 (COVID-19) in 2020, there have been resulting effects which could negatively impact the Institution's financial condition, including significant stock market exchange volatility, various temporary business closures and event cancellations, and other effects which could result in supply disruptions and/or decisions to defer elective procedures and other medical treatments at the Institution as the broader economic impact of COVID-19 develops. The ultimate impact of these matters to the Institution and its financial condition is presently unknown..."

According to the Memorial Sloan Kettering Cancer Center (the Institute or the Center) 2019 tax filing, the Center reports re: Business Transactions Involving Interested Persons (IRS Form 990, Schedule L, Parts IV & V):

"1. Dr. Craig Thompson is the President of the Institute. His spouse is a laboratory member for Sloan-Kettering Institute for Cancer Research. Her compensation for 2019 was $288,843."

"2. Mr. Michael P. Gutnick is the Executive Vice President and Chief Financial Officer until his retirement in September 2019. His son is a fund coordinator in the Division of Medicine in the Hospital. His son's total compensation for 2019 was $153,341."

"3. Ms. Jamie Nicholls is a board member of the Institution. Her spouse is a co-founder of King Street Capital Management. During 2019, the Center paid King Street $473,747 in management fees. During 2019, carried interest was $176,742.  MSK gave a redemption notice at the end of 2018, and pursuant to the standard redemption terms, maintained a small and declining exposure to King Street throughout 2019 and into 2020. The Institution invested in King Street prior to Ms. Nicholls joining the board of Memorial Sloan Kettering Cancer Center."

"4. Lisa DeAngelis M.D. is the Physician-in-Chief and Chief Medical Officer of the organization. She is 100% owner of Memorial Medical Care PC (MMPC). MMPC is a section 501(c)(3) tax-exempt captive medical group. MMPC provides home health care to the Hospital's bone marrow transplant patients. The PC and the Hospital have a management agreement where there is no net cost to the Hospital for the service. The Hospital provides and charges the PC for the services rendered. The amount reported in [Schedule L] Part IV ($200,000) is the cost of such services for the year."

"The individuals listed were not a party to the transactions. There is no sharing of the Institution's revenue. The purchases of goods or services by the Institution were made in the ordinary course of the provider's business, at commercially available rates normally charged to others..."

[NOTE: As previously reported in the Center's 2017 IRS Form 990, Jose Baselga MD PhD was the Physician-in-Chief and Chief Medical Officer of the Organization. As of at least 12/31/2017 he was also 100% owner of Memorial Medical Care PC.]

Also according to the Memorial Sloan Kettering Cancer Center (the Center) 2019 tax filing, the Center reports re: Loans to and/or from Interested Persons (IRS Form 990, Schedule L, Parts II & V, Attachment 1):

1. A loan from the organization to Lisa DeAngelis MD, Physician-in-Chief, with a principal amount of $249,375 and a balance due of $207,505 at 12/31/2019. The purpose of the loan is reported as "mortgage"; the loan is not in default, was not approved by board or committee, and has a written agreement.

2. A loan from the organization to Simon Powell MD, Director, with a principal amount of $1,000,000 and a balance due of $300,000 at 12/31/2019. The purpose of the loan is reported as "housing"; the loan is not in default, was approved by board or committee, and has a written agreement.

According to the Memorial Sloan Kettering Cancer Center (the Institute) combined audit of December 31, 2019 (Note 11, Grant Awards):

"The accompanying [audited] combined financial statements do not include amounts related to research grants (or portions thereof) that have been awarded to the Institute for which expenditures have not been incurred or cash has not been received. Such grant awards approximated $121.3 million and $113.5 million at December 31, 2019 and 2018, respectively."

According to the Memorial Sloan Kettering Cancer Center (the Center) 2019 tax filing, the Center reports re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4a):

"Avice Meehan, SVP & Chief Communication Officer, [received severance pay] of $254,302. Terminated in May 2019."

"Jose Baselga, MD[,] PhD, former Physician in Chief & Chief Medical Officer [received severance pay] of $1,267,818. Terminated in September 2018."

[NOTE: According to an article dated 12/22/2020 in The New York Times, "Memorial Sloan Kettering Cancer Center gave Dr. José Baselga a payout after he resigned under fire in 2018 over his ties to health care companies." See the Related External Articles section, below: "Sloan Kettering Paid $1.5 Million Severance to a Cancer Doctor Forced Out Over Conflicts," and "Memorial Sloan Kettering Leaders Violated Conflict-of-Interest Rules, Report Finds."]

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"Incentive pay is provided to officers and key employees based on their achievement of pre-determined goals relating to quality of care, patient safety, operational efficiency and financial performance. The compensation committee of the board authorizes all executive bonuses and incentive plans on an annual basis."

The Center reports "Bonus & incentive compensation" payments to 22 individuals in 2019. The five highest amounts reported are as follows (IRS Form 990, Schedule J, Part II):

(1) Craig B. Thompson MD, President & CEO: $3,330,000, with reported total compensation of $5,734,609.
(2) Patricia C. Skarulis, SVP-CH Info Officer, until 12/2019: $709,269, with reported total compensation of $1,089,041.
(3) Michael P. Gutnick, EVP & CFO, until 09/2019 : $708,022, with reported total compensation of $1,600,966.
(4) Jason Klein, SVP-Chief Investment Officer: $692,260, with reported total compensation of $1,715,616.
(5) Kathryn Martin, Chief Operating Officer: $676,550, with reported total compensation of $2,625,946.

In addition, the Center reports that 14 individuals received "Bonus & incentive compensation" payments in 2019 in amounts ranging from $571,560 to $243,030, and three individuals in amounts ranging from $88,540 to $50,000 (IRS Form 990, Schedule J, Part II).