Executive Compensation at St Joseph Health (CA)

St. Joseph Health System (SJH) is a California-based non-profit, tax-exempt 501 (c) (3) that is part of Washington-based Providence St. Joseph Health (PSJH).  Affiliated with the Catholic church, SJH is an integrated healthcare system serving residents in northern California with 5 hospitals and numerous healthcare facilities staffed by 6,700 employees.  Note:  SJH which also served West Texas and East New Mexico merged with Providence Health and Services (PH&S) to form PSJH in 2016.

in 2017, SJH reported total revenue of $252 million, most of which came from three sources:  support and services, patient care, and collection services.  Expenses totaled $256 million (not including $32 million in depreciation) with the largest expenses being:

• $151 million:  Compensation
• $ 56 million:  Office-Related Expenses
• $ 29 million:  Fees (primarily other with no detail provided)
• $ 20 million:  Other (i.e. medical supplies, to affiliate, interest, travel, dues, advertising, etc)

As illustrated above, compensation is the largest expense and used 60% of total revenue. In 2017, SJH reported having 2,486 employees (note:  there are numerous other related non-profits, taxable partnerships, and taxable corporations and trusts who employ thousands of other employees) who received $151 million, which equates to an average compensation of $61,000.  517 employees received more than $100,000 with the most highly compensated listed below:

• $1,925,101:  Richard Parks, Regional EVP, West Texas, East New Mexico
• $1,695,707:  Kevin Klockenga, Regional EVP, Northern CA
• $1,606,516:  Jack Cox, SVP, Chief Medical Officer
• $1,364,689:  Alan Garrett, Chief Executive, SMMC
• $1,216,829:  Robert Braithwaite, Chief Executive, HOAG ($457,829 from a related org)
• $1,182,709:  Jennifer Mitzner, SVP, CFO, Southern CA ($131,566 from a related org)
• $1,091,241:  James Watson, SVP, Ministry Integrity
• $1,062,778:  Joline Treanor, SVP, Human Resources
• $  992,911:  Todd Salnas, Chief Executive, Sonoma
• $  959,482:  Steven Moreau, Chief Executive SJO, Regional VP Southern CA
• $  881,275:  Kevin Manemann, Chief Executive, Heritage
• $  785,533:  Brian Helleland, Chief Executive, SJF
• $  656,444:  Jeremy Zoch, Chief Executive, SJO
• $  612,460:  Terek Salaway, Chief Executive, MHRMC
• $  536,688:  Kenneth McFarland, Chief Executive, MHRMC
• $  459,014:  William Russell, SVP, CIO (former key employee)

14 of the 16 (87%) most highly compensated employees listed above are male while 2 of the 16 (13%) are female.

In addition, the following highly compensated employees were reported (but compensated from a related organization):

• $4,624,609:  Mike Butler, President, Operations
• $2,763,296:  Cindy Strauss, Secretary
• $2,709,937:  Annette Walker, Chief Executive, SJH
• $2,480.872:  Erik Wexler, Chief Executive, Southern CA
• $2,039,775:  Jo Ann Escasa-Haigh, EVP, Assistant Treasurer
• $1,892,322:  Shannon Dwyer, EVP,General Counsel/Secretary
• $1,875,522:  Richard Afable, Regional EVP, Southern CA
• $1,838,979:  Darrin Montalvo, President, Integrated Services
• $1,486,287:  Venkat Bhamidipati, EVP, Treasurer
• $1,239,848:  John Whipple, Assistant Secretary
• $  632,942:  Walter Cathey, Chief Executive, Covenant
• $  268,198:  Donald Anderson, Jr, Assistant Secretary
• $  179,755:  Troy Thibodeaux, Chief Executive, Covennt (former key employee)

9 of the 13 (69%) most highly compensated employees (from affiliated organizations) are male while 4 of the 13 (31%) are female.

SJH paid for first class or charter travel, companion travel, and provided gross up payments and tax indemnification.  To read more about these expenses, please see Schedule J, Part III Supplemental Information on the Form 990 (link at the end of the post).

The following individuals received severance payments in 2017:

• $786,688:  Darrin Montalvo
• $536,688:  Kenneth McFarland
• $493,204:  Steve Moreau
• $459,014:  William Russell
• $344.097:  Jolene Treanor