Executive Compensation at Providence St. Joseph Health

In 2016, Providence Health & Services (PH&S) and St. Joseph Health System (SJHS) merged to form the Providence St. Joseph Health system, a non-profit, tax-exempt integrated healthcare provider associated with the Catholic Church. With 51 hospitals and nearly 1,100 clinics staffed by 120,000 employees across seven western states (Washington, Oregon, Montana, New Mexico, California, Texas, and Alaska), the Providence St Joseph Health system asserts “we use our voice to advocate for vulnerable populations and needed reforms in healthcare.”

The Providence St. Joseph Health System encompasses dozens of non-profit, tax-exempt organizations controlled by a related or affiliated organization, taxable partnerships, and organizations taxable as corporations or trusts. But, the sheer size and number of organizations that make up the system makes it difficult to get a grasp of the total organization and employee compensation.  This post addresses the executive compensation at Providence St. Joseph Health (PSJH) – the “executive” organization that oversees the system (although it is important to note PSJH is the sole member of Providence Health & Services (PH&S) and St. Joseph Health System (SJHS – the two systems that merged)).

PSJH has 15 employees and is funded by other organizations in the system that benefit from their oversight. In their own words “The senior executives of PSJH controls and manage  each supported organization by providing overall senior management and coordination for the PSJH system.

In 2017, PSJH reported total revenue of $38 million, which primarily came from related organizations who provided “management fees” to the organization.  Expenses totaled $38 million, $37 million of which was spent on compensation with the remaining $1 million spent on recruitment and relocation and taxes and licenses.

15 employees received $37 million in compensation, although the 14 directors of PSJH received between $25,000 – $60,000 each for their services from a related organization (not named). The compensation for the 15 most highly compensated employees (along with 2 employees compensated from a related org) were reported to be:

• $11,583,060:  Rod Hochman, President/CEO
• $4,624,609:  Mike Butler, President
• $ 2,910,266:  Debra Canales, EVP/CAO
• $2,763,296:  Cindy Strauss, Secretary
• $ 2,709,936:  Annette Walker, President of Strategy
• $ 2,708,746:  Rhonda Medows, EVP/Chief Pop Heath Officer
• $ 2,516,017:  Amy Compton-Phillips, EVP/Chief Clinical Officer
• $ 2,184,589:  Todd Hofheins, Former EVP/CFO/Treasurer
• $ 2,039,774:  Jo Ann Escasa-Haigh, EVP/Asst Treasurer
• $ 1,892,322:  Shannon Dwyer, EVP/General Counsel
• $ 1,875,523:  Richard Afable, EVP, PSJH So CA region
• $ 1,838,979:  Darrin Montalvo, President/Enterprise Services
• $ 1,616,390:  Aaron Martin, EVP/Chief Digital Innov Officer
• $ 1,486,287:  Venkat Bhamidipati, EVP/Treasurer
• $ 1,272,828:  Orest Holubec, SVP/Chief Comm/Ext Affairs Officer
• $ 1,239,848:  John Whipple, Ass’t Secretary (compensated by a related org)
• $   268,198:  Donald Anderson, Jr., Ass’t Secretary for Enrollment (compensated by a related org)

8 of the 15 employees of PHJH are male while 7 are female. Of the 10 most highly compensated employees, 7 are female while 3 are male.

PHJH paid for first class or charter travel, a residence for personal use or housing allowance, and provided tax indemnifications or gross  up payments. No other detail is provided.

Darrin Montalvo received $786,925 in severance payments in 2017.

Todd Hofheins received $793,260 in severance payments in 2017.

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