Executive Compensation at AdventHealth

AdventHealth (formerly known as Adventist Health System until 2019 when the 501 (c) (3) “rebranded” itself) is one of the largest non-profit health care providers in the United States with 47 hospitals in 9 states. Based in Altamonte Springs, Florida, AdventHealth is a very large system with dozens of separate 501 (c) (3)’s for the hospitals, physician care, patient care, and more.

This post looks at the executive compensation at  Adventist Health System Sunbelt Healthcare Corporation (AHSSHC) and Adventist Health System West (AHSW) because the most recent IRS Form 990’s are available for these two entities (before the organization was rebranded to AdventHealth). It is important to note there are dozens of other related and affiliated non-profits related to AdventHealth that are not covered under this post.

AHSSHC

AHSSHC provided executive leadership and other professional support services to the subsidiaries and affiliates of its healthcare network.  In 2016, AHSSHC reported having 2,869 employees who were compensated $332 million, which equates to an average compensation of $116,000. However, only 528 employees were compensated more than $100,000 with the 19 most highly compensated employees listed below:

• $2,349,119:  Donald L Jernigan, Director/CEO/President (end 12/16)
• $2,188,638:  Lars D Houmann, Director/COO
• $2,113,738:  Terry D Shaw, Director/CFO (President/CEO beginning 12/16)
• $1,973,223:  Randall L Haffner, Director/EVP/CEO Multi-State
• $1,908,584:  David Banks, EVP/Chief Strategy Officer
• $1,848,418:  John Brian Paradis, Strategic Advisor/West FL (end 11/16)
• $1,592,650:  Michael Schultz, WEVP/CEO of West Division
• $1,423,353:  Loran Hauck, EVP/Chief Clinical Officer
• $1,420,299: Robert E Henderschedt, Director/Chief Administrator (end 12/16)
• $1,413,783:  Daryl Tol, SEVP/CEO Central Division
• $1,407,470:  Brent G Snyder, Director/EVP/Chief Information Officer
• $1,330,961:  Eddie Soler, EVP/Senior Finance Officer
• $1,274,026:  Paul Rathbun, SEVP/CFO
• $1,177,327:  David L Crane, CEO Midwest Region/COO AMITA (end1/16)
• $1,103,522:  Monica Reed, SVP/FH Chief Learning Officer
• $1,100,456:  G Edward Noseworthy, CEO Memorial Health Systems
• $1,081,272:  Sandra K Johnson, Director/EVP/Chief Administration Officer
• $1,034,316:  Donald Jones, VP/Human Resources
• $  961,350:  Jeffrey Bromme, EVP/Chief Legal Officer

The 19 executives listed above were compensated a total of $29 million in 2016. 17 of the 19 (89%) most highly compensated employees are male while 2, or 11% are female.  The 10 most highly compensated employees are male.

The Form 990 reports the organization paid for first class and charter travel, travel for companions, tax indemnification and gross up payments, health or social club dues and/or initiation fees, housing allowance and/or residence for personal use, and discretionary spending accounts. For detailed information on these expenses, see Schedule J, Part III, Supplemental Information.  After reading this information, you may ask yourself why these 19 individuals were paid millions of dollars, flew first class, flew charter, had companion tickets paid for, provided housing allowances or residences for personal use, health and social club fees paid for along with receiving tax indemnification and gross up payments when THEY WORK FOR A NON-PROFIT?

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

AHSW

AHSW reported having 1,605 employees who were compensated $326 million which equates to an average compensation of $203,000. However, only 490 employees received more than $100,000 in compensation with the 42 most highly compensated employees listed below:

• $1,997,807:  Scott Reiner, Director/President/CEO
• $1,557,410:  Bill Wing, President/COO
• $1,232,290:  Beth Zachary, SVP/President SCR
• $1,207,248:  Kendall Fults, COO CVN
• $1,164,344:  Mark Ashlock, SVP, Physician Strategy
• $1,159,531:  Jack Wagner, Asst Secty/CFO/SVP
• $1,084,555:  Keith Doram, VP Clinical Effectiveness/CMO
• $1,080,634:  Wayne Ferch, SVP/Pres CCR
• $1,010,897:  JoAline Olson, SVP/CHRO/Innovation
• $  994,038:  Jeff Eller, SVP/Pres NCR
• $  961,776:  John Raffoul, President WMMC
• $ 889,035:  Joyce Newmyer, SVP/President PNR
• $  877,571:  Alan Soderblom, VP CIO
• $  856,488:  Douglas Duffield, President SJCH
• $  827,699:  Rita Waterman, AVP Communications
• $  785,769:  Kevin Roberts, President GAMC
• $  724,541:  Jeffrey Conklin, VP/President Managed Care
• $  711,254:  John Beanman, VP Finance/SFO
• $  697,933:  Gloria Bancarz, CNO
• $ 696,569:  Robert Beehler, VP Marketing Development, M & A
• $  679,637:  Dag Jakobsen, VP/COO AHPS
• $  651,908:  Meredith Jobe, Sec/VP General Counsel
• $  632,928:  Kirby McKague, VP/CFO AHPS
• $  631,322:  Thomas Russell, Former VP Pop Health Innov
• $  565,244:  Harold Chilton, VP Support Services
• $  535,119:  Lowell Church, VP Material Management
• $  534,590:  John Gustin, VP Facilities Mgmnt Construction
• $ 509,269:  Daniel Gordon, VP Financial Services
• $  491,717:  Kathleen Wilson, VP Benefits Admin
• $  460,462:  Robert Marchuk, VP Ancillary Services
• $  434,462:  Leeanne Patterson, VP Risk Management
• $  430,266:  Rodney Wehtje, Former Asst Secty/VP Treasurer
• $  401,193:  Don Tetz, VP Strategy and Talent
• $  392,832:  Sherry Mendoza, VP/President WHR
• $  379,180:  Susan Leyba, VP Managed Care
• $  374,326:  Joshua Cowan, VP Strategy/Communication
• $  366,668:  Robert Carmen, Former President/CEO
• $  327,263:  David Ormerod, VP/CMO AHPS
• $  314,376:  Daniel Rhodes, VP Pays /Home Health Cont
• $  269,387:  Charles Dickinson, VP Business Solutions
• $  195,918:  Karl Nebel, SVP/Chief Strategy/Information Officer
• $  185,700:  Mathew Fink, Interim CIO

32 of the 42 (76%) of the most highly compensated employees are male while 10, or 24% are female. 8 of the 10 most highly compensated employees are male while 2 are female.

The Form 990 reports the organization paid for first class or charter travel, travel for companions, provided a housing allowance or a residence for personal use, and provided tax indemnification and gross up payments.

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