Executive Compensation at the American Hospital Association (2022)

The American Hospital Association (AHA) is a trade organization that is a tax-exempt non-profit 501 (c) (6) that represents and works on behalf of its members (hospitals/owners of hospitals) to advocate their positions to government entities (i.e. Congress, Senate, etc) and provide education and assistance to its members.

In 2022, the AHA raised $139 million (compared to $129 million in 2021, $120 million in 2020, $143 million in 2019 and  $134 million in 2018) primarily through membership dues, education and licensing) and spent $130 million  (not including $2 million in depreciation) with the largest expense reported to be compensation ($71 million) followed by office expenses ($21 million),, travel and conferences ($17 million) and fees for services ($16 million).  With nearly $300 million in net fund assets, the organization  reports to represent nearly 5,000 hospitals.

Based in Chicago, Illinois, the AHA has 442 employees who were compensated $71 million in 2022 which equates to an average compensation of $161,000.  However, only 197 employees received more than $100,000 in compensation which means a smaller amount of employees received significant higher compensation.  The 18 most highly compensated employees were compensated $15 million and were reported to be:

• $3,180,107:  Richard J Pollack, President and CEO
• $2,196,928:  M Michelle Hood, EVP, COO, Pres HF
• $1,425,956:  Stacey L Hughes, EVP, Gov’t Relations and Public Policy 
• $1,064,939:  Melinda R Hatton, General Counsel and Secretary
• $  954,119:   Ashley Thompson, SVP Public Policy
• $  799,548:  Douglas C Shaw, SVP, Business Development
• $  735,232:  Alicia N Mitchell, SVP, Communications
• $  682,992:  Lisa Kidder Hrobsky, GVP Fed Relations-Adv Political Affairs
• $  638,935:  Susan Gergely, AHA SVP, Chief HR Officer
• $  512,806:  Jeanette Porter, AHA SVP, Field Engagement
• $  487,565:  Joy Lewis, SVP, Health Equity Ed IDHE
• $  486,042:  Susan M Solomon, Group VP, Deputy General Counsel
• $  472,687:  John Riggi, Senior Advisor, Cyber Security-Risk
• $  460,567:  Robert I Sarkis, VP, Chief Information Officer
• $  414,718:  Chad Folder, GDP, Deputy General Counsel
• $  380,413:  Gail M Lovinger, VP Secretary (end 9.8.22)
• $  259,861:  James E Tyler, Jr, SVP, Associate Services, CFO, and Treasurer

11 of the 17 (or 65%) most highly compensated employees are female while 6 of the 17 (or 35%) are male.

The  5 most highly compensated employees received $38 million from 2017-2022:

Richard Pollack:  Total Compensation 2017-2022:  $19.5 million

• 2022:  $3,180,017
• 2021:  $3,141,001
• 2020:  $3,154,924
• 2019:  $4,695,594
• 2018:  $2,750,026
• 2017:  $2,503,597

M Michelle Hood:  Total Compensation 2020-2022:  $5 million

• 2022:  $2,196,928
• 2021:  $1,651,755
• 2020:  $1,119,309

Melinda R Hatton:  Total Compensation 2017-2022:  $6.4 million

• 2022:  $1,064,939
• 2021:  $1,009,112
• 2020:  $1,056,009
• 2019:  $1,028,258
• 2018:  $  994,527
• 2017:  $1,202,570

Stacey L Hughes:  Total Compensation 2021-2022:  $2.4 million

• 2022:  $1,425,956
• 2021:  $  935,730

Ashley Thompson:  Total Compensation 2017-2022:  $4.7 million

• 2022:  $954,119
• 2021:  $807,648
• 2020:  $869,275
• 2019:  $766,509
• 2018:  $646,565
• 2017:  $618,494

The Form 990 (2021) also reports:

AHA paid for first class travel. Specifically, first class travel was made available to 3 board members, the CEO and 2 Executive Vice Presidents. Additionally, first class travel may be approved in cases of extenuating circumstances.

AHA paid for companion travel. Specifically, spousal travel was provided to the CEO.

AHA provided discretionary spending accounts. Specifically, stipends were made available to the Chairman, Immediate Past Chairman, and Chairman Elect of the Board. Taxable benefit allowances were made available to Senior Vice Presidents and above.  Taxable benefit allowances were made available to SVP’s and above

AHA maintained a supplemental non-qualified deferred compensation plan.  To read about contributi0ns and distributions, see the Form 990, Schedule J, Part III, Supplemental Information.

Bottom Line

The AHA has nearly $300 million in net fund assets and generates about $120-$145 million annually primarily through membership fees, education fees, and licensing.  This tax exempt non-profit employs about 440 employees who are compensated on average $160,000, although only 197 employees received more than $100,000 in compensation in 2022. The 17 most highly compensated employees were compensated $15 million, ranging from $260,000 to more than $3.2 million. The perks to employees – first class travel, travel for companions, discretionary spending accounts, and the supplemental non-qualified deferred compensation plan are extremely generous for a trade organization.  Just one more reason why healthcare costs are so high.

To read the IRS Form (2022) for AHA, click here.