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June 28, 2019

Executive Compensation at Allina Health System

by Anne Paddock

Allina Health System is a non-profit health care provider based in Minneapolis that owns or operates 13 hospitals and more than 90 clinics through Minnesota and Wisconsin.

In 2016, total revenue was $4.104 billion while total expenses were $4.073 billion (including $170 million in depreciation). The three largest expenses were compensation ($2.5 billion), office-related ($767 million), and fees for services ($383 million). The net assets or fund balance at the beginning of the year was $2.330 billion. After adding excess revenue ($31 million) and net unrealized gains on investments and other changes in assets ($37 million), the net assets or fund balance was $2.398 billion at year-end.

It is important to note that although Allina Health System is the direct controlling entity of many other non-profits, the focus of this post is limited to the executive compensation at Allina Health System as reported to the IRS on Form 990. In 2016, Allina Health System employed 30,561 individuals who were compensated $2.5 billion which equates to an average compensation of $81,800. 2,687 employees received more than $100,000 in compensation with the 30 most highly compensated employees listed below:

  • $2,397,539:  Penny Wheeler, Director/President/CEO
  • $1,635,095:  Daniel Buss, Physician
  • $1,556,534:  Duncan Gallagher, Treasuer/EVP/CFO
  • $1,461,970:  Michael Freehill, Physician
  • $1,425,840:  Leroy McCarty, Physician
  • $1,268,800:  Mark Heller, Physician
  • $1,198,462:  Mohamed Ibrahim, Physician
  • $1,192,706:  Ben Bache-Wiig, SVP, Pres ANW Hospital
  • $1,187,207:  Kenneth Paulus, Former Pres/CEO
  • $1,151,330:  Thomas O’Connor, SVP, Pres United Hospital
  • $1,115,665:  Robert Wieland, EVP Network
  • $1,082,034:  Sara Criger, SVP, Pres Mercy Hospital
  • $1,046,758:  Timothy Sielaff, SVP-AHG-Spec Care& Research/CMO
  • $1,016,322:  Christine Bent, EVP-Allina Health Group
  • $  980,584:  Elizabeth Truesdell Smith, Secretary/SVP General Counsel
  • $  874,774:  Susan Heichert, SVP, Chief Information Officer
  • $  639,646:  Richard Magnuson, SVP Finance/Treasury
  • $  632,502:  Rodney Christensen, Former SVP and President AHC
  • $  612,866:  Daniel McGinty, Former EVP Hospital/Specialty Svcs
  • $  602,284:  Christine Moore, SVP, Chief HR Officer
  • $  571,770:  Elizabeth Smith, Interim SVP AHG-Primary Care
  • $  486,510:  David Slowinske, SVP AHG Operations
  • $  460,535:  Helen Strike, Pres-Unity Hospital
  • $  448,196:  Katherine Tarvestad, SVP Chief Compliance Officer
  • $  429,594:  Margaret Hasbrouck, VP Payor Contract/Reimb
  • $  402,993:  Corrine Koehler, VP Finance
  • $  342,486:  Mary Bear-Dukes, VP-Revenue Cycle Management
  • $  281,249:  Margaret Butler, Former SVP, Human Resources
  • $  263,857:  Jonathan Shoemaker, SVP, Chief Info Officer
  • $  204,547:  Christopher Hughes, Former VP Revenue Cycle Mgmt

17 of the 30 (57%) most highly compensated employees are male while 13 of the 30 (43%) are female.  9 of the 10 most highly compensated individuals are male while 1 – the most highly compensated – is a female. At the bottom of the list, 3 of the 10 employees are male while 7 are female.

Allina Health Systems paid for tax indemnifications and gross up payments as it relates to taxable moving reimbursements for certain executives (Richard Magnuson – $12,409).

To read the IRS Form 990 (2016), click here.

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