Retiring University of Kentucky HealthCare chief Michael Karpf will continue making his $900,000 salary for the next year as he advises UK President Eli Capilouto on state and federal health care issues.
Karpf announced his retirement as executive vice president for health affairs a year ago, but only stepped down this week, as the UK Board of Trustees approved his replacement, Mark Newman.
Under Karpf’s 13 years of leadership, UK HealthCare invested almost $2 billion in new facilities, faculty, programs and technology, as well as forging new partnerships with regional health care institutions and expanding the College of Medicine to satellite locations around the state.
Capilouto has frequently said Karpf oversaw the greatest success story in academic health center history, a statement he repeated at the UK Board of Trustees meeting Friday.
After Karpf’s year of advising concludes, he will make $200,000 a year as a part-time faculty member in the College of Medicine, conducting policy research.
“He has published continuously over the last several years on a number of issues, including managed care,” said UK spokesman Jay Blanton.
Karpf’s eventual part-time salary was calculated by taking 50 percent of the salary earned by medical professors who are at the 75th percentile of pay in the Association of American Medical Colleges survey.
Karpf’s salaries will be paid by UK HealthCare and he will not be eligible for bonuses, Blanton said.
The deal was worked out between Karpf and Capilouto without a written contract, he said. Karpf also will get two complimentary tickets for this football season and two for the upcoming basketball season.
Newman’s job officially started last week. An Owensboro native who most recently oversaw the physician practice plan at Duke University Medical Center, Newman will be paid $1.1 million, which is also the 75th percentile of pay for the chiefs of comparable academic medical centers, officials said.