Executive Compensation at Northwestern Medicine (Chicago, IL)
Northwestern Memorial HealthCare (NMH) is commonly known as Northwestern Medicine, and is a non-profit, tax-exempt 501 (c) (3) that provides healthcare in more than 200 locations (including 10 hospitals) in the Chicago metropolitan area. Headquartered in Chicago, NMH is affiliated with Northwestern’s School of Medicine.
Key facts to know about NMH include the following information taken from the Form 990 (2017 for the year ending August 31, 2018):
NMH has $7.3 billion in net assets (up from $6.4 billion the year before). The $900 million increase is primarily attributed to transfers from affiliated organizations (about $550 million) and excess revenue over expenses (about $350 million), all of which means NMH made a lot of money from healthcare in 2018.
Total revenue was $5.5 billion, primarily from patient care services.
Expenses were $5 billion (not including $230 million in depreciation) with four (4) primary expenses: compensation ($2.1 billion), fees for services ($1.1 billion), medical supplies ($958 billion), and office-related expenses ($374 million).
23,327 employees received $2.1 billion in compensation which equates to an average compensation of $90,000 (compare this to an average compensation of $60,000 at NorthShore, a Chicago-based healthcare provider). 3,351 employees received more than $100,000 in compensation with the 60 most highly compensated employees listed below (note: many of the employees listed below are physicians whose compensation listed is for clinical and administrative services provided within the NMH. The majority of the physicians are also compensated by an unrelated organization – Northwestsern University Feinberg School of Medicine through a common paymaster for their academic and research efforts.):
- $7,091,099: Dean M Harrison
- $3,773,480: Peter McCanna
- $2,241,848: Dean Manheimer
- $1,974,615: Patrick M McCarthy
- $1,885,128: Julie L Creamer
- $1,846,817: Michael Vivoda
- $1,674,366: Harish Shownkeen
- $1,654,310: John A Orsini
- $1,344,203: Elizabeth Rosenberg
- $1,305,159: Thomas J McAfee
- $1,246,313: Kevin P Poorten
- $1,123,944: Aaron Bare
- $1,085,476: Jay Anderson
- $1,075,192: Howard B Chrisman
- $1,028,763: Eric G Neilson
- $ 968,003: James Adams
- $ 967,871: Dean G Tsarwhas
- $ 955,828: Brian J Lemon
- $ 952,781: Claudia Tellez
- $ 944,531: James C Decline
- $ 932,094: Michael Lee
- $ 885,813: James Giblin
- $ 881,410: Regina Stein
- $ 850,519: Danae K Prousis
- $ 842,464: Carl Christensen
- $ 837,289: Nathaniel J Soper
- $ 821,546: Terrance D Peabody
- $ 810,791: Michael Kulisz
- $ 797,757: Gary Noskin
- $ 791,613: Patrick Towne
- $ 764,414: Stephen Falk
- $ 703,923: Maureen Bryant
- $ 655,904: Douglas M Young
- $ 642,200: Dean P Shoener
- $ 626,006: Kathleen Yosko
- $ 614,071: Brad Copple
- $ 612,141: Mathew J Flynn
- $ 609,308: Brian Walsh
- $ 583,476: Maureen A Taus
- $ 563,716: Nicholas J Volpe
- $ 537,210: Jeffrey D Wayne
- $ 531,151: Mark Daniels
- $ 502,895: Roger Bell
- $ 486,580: Jennifer Wooten Ierardi
- $ 461,001: Francis Fraher
- $ 460,642: Pamela Duffy
- $ 456,452: Erik Englehart
- $ 452,299: Richard Franco
- $ 419,765: Ronald J Severino
- $ 413,637: Amy S Paller
- $ 407,340: Emily J Kozak
- $ 386,885: David Hensley
- $ 377,615: Denise Majeski
- $ 319,445: Loren Foelske
- $ 308,188: Seamus Collins
- $ 305,946: Steven Burandt
- $ 294,127: Connie Falcone
- $ 263,262: Todd Barrowclift
- $ 225,233: Michele McClelland
- $ 181,700: John Hubbe
43 of the 60 (72%) most highly compensated employees are male while 17 of the 60 (28%) are female. 8 of the 10 most highly compensated employees are male while 2 are female.
NMH paid for health or social club dues or initiation fees. Specifically, NMH paid for country club dues for certain Kishwaukee Health employees (Brad Copple and Kevin Poorten). Employees (Mathew J Flynn and Denise Majeski) of Northwestern Lake Forest Hospital are offered discounted health and fitness club dues at Lake Forest Health and Fitness Institute.
Severance payments were made to the following former employees:
- $423,520: James Decline
- $279,309: Loren Foelske
- $225,233: Michele McClelland
- $165,592: Dean Manheimer
- $121,532: Brad Copple
- $ 43,820: Pamela Duffy
NMH has two different non-qualified deferred compensation plans. Employees vested in Plan A have contributions taxed currently with no deferred component, include:
- Julia Creamer: The current year contribution amount is $606,772
- Dean Harrison: The current year contribution amount is $1,989,073
- Dean Manheimer: The current year contribution amount is $461,393
- Peter McCanna: The current year contribution amount is $810,655
Employees vested in Plan B where the current year contributions are reported as compensation on the W-2 include:
- Maureen Bryant: $24,744
- Julia Creamer: $74,160
- James Dechene: $109,752
- Stephen Falk: $81,192
- Francis Fraher: $16,542
- Dean Harrison: $318,780
- Brian Lemon: $33,018
- Denise Majeski: $14,526
- Dean Manheimer: $67,980
- Peter McCanna: $150,645
- Danae ProusisL $29,220
- Kathleen Yosko: $24,720
- Douglas Young: $55,968
The following employees are not vested in the plan so the earned amount (listed below) remains at risk:
- James Adams: $43,260
- Jay Anderson: $87,432
- Roger Bell: $18,450
- Howard Chrisman: $37,080
- Carl Christensen: $81,456
- Brad Copple: $18,771
- Jospeh Dant: $17,838
- Pamela Duffy: $13,613
- Connie Falcone: $12,250
- Matthew Flynn: $51,600
- Richard Franco: $17,136
- James Giblin: $93,960
- David Hensley: $14,232
- Emily Kozak: $13,542
- Michael Kulisz: $25,035
- Thomas McAffe, $106,392
- Gary Noskin: $43,200
- John Orsini: $147,672
- Kevin Poorten: $116,501
- Elizabeth Rosenberg: $118,152
- Maureen Taus: $19,440
- Patrick Towne: $27,000
- Michael Vivoda: $195,648
- Brian Walsh: $21,594
- Jennifer Wooten Ierardi: $18,000
NMH made a $50,000 loan to Joacquin Brieva, a former director, for retention. The balance due is $17,500.
James Towne, an employee and brother of Patrick Towne, a Director, received $277,566 in compensation for employment.
William Towne, an employee and brother of Patrick Towne, a Director, received $644,468 in compensation for employment.
Charles N Mills, a Director, indirectly owns a greater than 35% interest in Medline, a company that received $845,690 for medical supplies.
Christine E Englehart, an employee and daughter of Erik Englehart, a former officer, received $44,146 for employment.
Hailey Orsini, an employee and daughter of John Orsini, a Director, received $66, 675 for employment.
645 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated were reported to be:
- $73,806,458: Turner Construction Company of Chicago, IL for construction
- $44,618,843: Skender Construction of Chicago, IL for construction
- $18,654,203: Deloitte Consulting LLP of Chicago, IL for consulting services
- $18,139,947: Lo Destro Construction Company of Chicago, IL for construction
- $16,714,009: Medical Staffing Network of Dallas, TX for temporary staffing
To read the IRS Form 990 (2017 for the year ending August 31, 2018), click here.
Comments are closed.
Paddock Post 
Point well taken. I updated the post.
I appreciate this blog and know that gleaning through all the paperwork to distill it down to what is relevant takes time and skill. I would like to point out something, however. You have repeated a common error made in listing groups of people that include some physicians. For some reason, no one else’s credentials are listed, just the physicians. It would be really messy to start listing everyone’s credentials, so let’s just leave everyone’s off.
In other words, it is not important that readers know who is a physician and who is not, or at least not more important than knowing who has an MBA and who does not. I’ve been baffled by this convention for my many decades in health care.