Executive Compensation at Ochsner Health (New Orleans, LA)

Ochsner Health is Louisiana’s largest non-profit health provider with 40 hospitals and more than 100 health and urgent care centers staffed by more than 25,000 employees among dozens of non-profit organizations that are affiliated with each other. The main organization – Ochsner Clinic Foundation – is the primary organization that provides patient care, medical education and research while a related organization – Ochsner Health System – provides management and support.

Ochsner Clinic Foundation (OCF)

The most recent Form 990 (2017) submitted to the IRS reports the following key information about OCF:

Annual revenue was about $8.4 billion (up from $7.2 billion the year before), most of which ($8.25 billion) came from patient service revenue. However, it is important to note OCF reported $5.3 billion in discounts and allowances. Had this number not been included, total revenue would have been $3.1 billion.

Expenses totaled $8.2 billion (not including $124 million in depreciation) and comprise 6 major categories:

• discounts and allowances ($5.3 billion)
• compensation ($1.5 billion)
• medical supplies ($485 million)
• fees for services and for outside providers ($326 million)
• other expenses (no detail provided) and bad debt ($305 million)
• office-related expenses ($204 million)

OCF has $1 billion in net assets. The organization has been able to accumulate $1 billion primarily by not spending as much as they take in annually and adding about $100 million annually for the past few years.

Ochsner Health System (OHS)

The most recent Form 990 (2017) submitted to the IRS reports the following key information about OHS:

Total annual revenue was $198 million (up from $183 million the prior year), almost all of which came from “admin and management support” from related organizations.

Expenses totaled $180 million (not including $16 million in depreciation) and comprise 6 major categories:

• compensation ($101 million)
• office-related expenses ($40 million)
• fees for services ($20 million)
• advertising and promotion ($13 million)
• travel and conferences ($5 million)
• other expenses ($1 million)

OCF and OHS Employee Compensation

In 2017, OCF reported having 20,991 employees who were compensated $1.5 billion, which equates to an average compensation of about $72,000. 2,086 employees received more than $100,000 in compensation.

During the same period (2017), OHS reported having 1,365 employees who were compensated $101 million, which equates to an average compensation of about $74,000.  182 employees received more than $100,000 in compensation.

Collectively, the two organizations reported having 22,356 employees who were compensated $1.6 billion, which equates to an average compensation of about $72,000.  2,268 employees received more than $100,000 in compensation.

The 47 most highly compensated employees of both organizations are listed below (with the organization who paid the compensation in brackets:

• $3,657,523:  Warner L Thomas, President and CEO and Board Member (OHS)
• $2,079,839:  Benjamin B Peeler, Physician, Section Head (OCF)
• $1,986,331:  Michael F Hulefeld, EVP and Chief Operating Officer (OHS)
• $1,405,229:  Sebastian F Koga, Physician, Section Head (OCF)
• $1,277,465:  Patrick J Quinlan, former officer and director (OHS)
• $1,229,150:  Scott J Posecai, EVP and CFO (OHS)
• $1,159,167:  Peter C November, Secretary/EVP Chief Admin Officer (OHS)
• $1,123,599:  George E Loss, Board Member, Senior Physician (OCF)
• $1,113,660:  Leonardo G Orejarena, Senior Physician, Section Head (OCF)
• $1,110,468:  Deryk G Jones, Senior Physician, Section Head, Sports Medicine (OCF)
• $1,101,599:  Marcus L Ware, Senior Physician (OCF)
• $  829,526:  Dennis Kay, Board Member, Senior Physician (OCF)
• $  784,244:  Robert I Hart, EVP, Chief Medical Officer (OHS)
• $  743,697:  Bobby C Brannon, EVP and Treasurer (OCF)
• $  742,048:  Janet L Snow-Godfrey, SVP and Chief HR Officer (OHS)
• $  727,059:  Mark S Muller, SVP, Strategy and Business Development (OHS)
• $  721,976:  David G Carmouche, SVP and President/OHN Med Dir Svc Lines
• $  705,087:  Vincent R Adolph, Board Member, Senior Physician (OCF)
• $  695,864:  Dana H Smetherman, Board Member, Senior Physician (OCF)
• $  693,377:  David M Gaines, CEO System Retail and SVP Public Affairs (OHS)
• $  654,210:  Richard D Guthrie, Jr, Chief Quality Officer (OCF)
• $  637,076:  Edward Martin, Jr, Regional Medical Director NS Region (OCF)
• $  632,402:  Armin Schubert, VPMA-OMC-Jeff Hey (OCF)
• $  627,928:  William A McDade, EVP, Chief Academic Officer (OCF)
• $  604,475:  Robert Wolterman, CEO-OMC- Jeff Why (OCF)
• $  583,029:  Michael L Louviere, System VP, Supply Chain (OHS)
• $  580,350:  Tracey T Schiro, SVP, Chief HR Officer (OHS)
• $  577,226:  Dawn M Puente, Regional Medical Director North Community Hospital (OCF)
• $  541,061:  Jeffrey P Saucier, System VP, Planning and Analysis (OHS)
• $  536,050:  Yvens G Laborde, Regional Medical Director WB Region (OCF)
• $  525,760:  Steven B Deitelzweig, Senior Physician Svc Line Ldr, Hospital Med (OCF)
• $  489,745:  Bradley R Goodson, CEO Northshore Region (OCF)
• $  481,843:  Dawn J Anuszkiewicz, CEO Baptist (OCF)
• $  461,926:  Paul N Page, Physician (OHS and Affiliated Org)
• $  448,459:  Ronald G Melton, System VP/Finance Controller (OHS)
• $  445,667:  Laura E Wilt, Sytem VP, CIO (OHS)
• $  440,177:  Eric McMillen, CEO Baton Rouge Region (OCF)
• $  436,518:  David E Taylor, Board Member, Senior Physician (OCF)
• $  435,661:  Pedro Cazabon, Board Member, Senior Physician (OCF)
• $  377,918:  Dawn R Pevey (former key employee)
• $  358,756:  Richard E Deichmann, Board Member, Senior Physician (OCF)
• $  354,266:  Timothy Riddell, Board Member, Senior Physician (OCF)
• $  335,436:  Beth E Walker (former key employee) (OCF)
• $  314,239:  Mark A French (former key employee)
• $  303,826:  Victoria A Smith, Board Member, Senior Physician (OCF – beg 9/26/17)
• $  161,595:  Cristina R Wheat (former key employee)
• $  125,557:  William W Pinsky, (former key employee) (OCF)

37 of the 47 (79%) most highly compensated employees are male while 10 of the 47 (21%) are female, 3 of which are former employees. 10 of the 10 most highly compensated employees are male. 18 of the 20 most highly compensated employees are male while 2 of the 20 are female.

OCF and OHS paid for first class or charter travel, travel for companions, and provided tax indemnification and gross up payments. See Schedule J, Part III of the Form 990 (links at the end of the post) for more detailed information. In addition, see Schedule J, Part III for information on the supplemental non-qualified retirement plan and non-fixed payments for spousal travel and entertainment at board retreats and gross up payments in compensation related to imputed income.

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

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