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May 21, 2020

Executive Compensation at Edward W Sparrow Hospital

by Anne Paddock

Edward W Sparrow Hospital (EWSH) is a non-profit tax-exempt 501 (c) (3) teaching hospital with 676 beds (although the Form 990 states there are 703 beds) in Lansing, Michigan. EWSH is a subsidiary of Sparrow Health System (SHS), a non-profit, tax-exempt 501 (c) (3) with 6 hospitals:  Sparrow Eaton, Sparrow (the flagship), Sparrow Specialty, Sparrow Clinton, Sparrow Ionia, and Sparrow Carson. In addition, SHS has dozens of satellite care centers, and the Michigan Athletic Club (a 276,000 square foot health club).

In 2017, EWSH reported total revenue of $952 million, of which $879 million came from patient services. Expenses were $931 million, leaving $21 million for the general fund, which had $575 million at year-end.

EWSH employed 2,156 employees who were compensated $541 million (an average compensation of $78,000) in 2017.  736 employees received more than $100,000 in compensation with the 35 most highly compensated employees listed below:

  • $1,721,198:  Dennis Swan, Pres/CEO-SHS
  • $  979,620:  Ara Pridjian, Physician
  • $  901,581:  Alonso Collar, Physician
  • $  870,001:  Norbert Baumgartner, Physician
  • $  851,923:  Mark Brett, Pres/CEO SH
  • $  851,554:  Joe Ruth, EVP/COO
  • $  833,791:  Kosisochi Obinwanne, Physician
  • $  807,049:  Paula Reichle, SVP – CFO/TREAS
  • $  797,200:  Muhammad Hamdan, Physician
  • $  783,031:  Thomas Bres, SVP/CAO/CIO
  • $  651,276:  Greg Brogan, Board Member (note: $649,908 paid from a related org)
  • $  543,829:  Karen Kent-Van Gorder, VP Medical/Quality
  • $  516,359:  Douglas Edema, VP Sparrow Medical Center
  • $  448,614:  Michael Reinerth, VP Chief HR Officer
  • $  440,652:  Mary Lou Wesley, Former VP – CNO
  • $  422,390:  Michael Zaroukian, VP Chief Med Info Officer
  • $  439,091:  Thomas Ostrander, VP, Professional Services
  • $  416,202:  John Armstrong, Former Board Member
  • $  414,218:  Dave Kruger, VP – Phys Pract Adm
  • $  389,045:  Peter Graham, Former Officer
  • $  371,505:  Theodore Glynn, VP Med Education
  • $  370,626:  Stella Cash, Former VP Development
  • $  358,897:  James Olson, Former Board Member
  • $  357,687:  Kira Carter-Robertson, VP Affiliate Operations
  • $  351,934:  William Howe, VP Finance
  • $  351,586:  Christine Jodoin, Interim CNO/VP Nursing
  • $  323,062:  Harman Nagler, VP Clinical Integrity
  • $  318,098:  Andrea Koslowski, VP Legal and Risk Management
  • $  307,217:  Patrick Brillantes, VP Conse Engmt
  • $  298,707:  Richard Fellows, VP – Audit Compliance
  • $  286,789:  Kevin Sharp, VP Revenue Cycle
  • $  272,751:  Dawn Springer, Former Board Member
  • $  232,683:  Brian Schroeder, Former Officer
  • $  169,736:  Lisa Pascoe, Director Corp Gov
  • $  152,523:  Larry Rawsthorne, Former Officer

26 of the 35 (or 74%) of the most highly compensated employees are male while 9 of the 35 (or 26%) are female. 9 of the 10 most highly compensated employees are male while 1 is a female. Collectively, the 35 employees were compensated $18.6 million (which equates to an average compensation of $531,400).

EWSH provided tax indemnification and gross up payments. Specifically, the Pres/CEO, Dennis Swan received a gross up payment of $27,494 for life insurance.

EWSH paid for health or social club dues or initiation fees. Specifically, dues for certain broad members and executives for the Michigan Athletic Club were paid by EWSH.

To read the IRS Form 990 (2017), click here.

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