Executive Compensation at Roper St. Francis Healthcare

CareAlliance Health Services is a South Carolina tax-exempt, non-profit 501 (c) (3) doing business as Roper St. Francis Healthcare (RSFH).

Established in 1998, the Roper St Francis Healthcare system is actually several non-profit organizations (see Schedule R of the Form 990, the link of which is at the end of this post) that include hospitals (4) and other entities.

This post addresses the executive compensation at RSFH, the management and oversight entity of related/affiliated hospitals and healthcare subsidiaries. However, it is important to note RSFH uses Atrium Health, formerly Carolinas Healthcare System (an unrelated organization) for management oversight services.

RSFH is governed by 13 members of the Board (although 14 are listed on the Form 990 because of timing differences) referred to as directors. 9 of the 14 (64%) are male while 5 (36%) are female. All members are appointed by the founding members.

In 2018, RSFH reported total revenue of $134 million, most of which ($116 million) came from network fees which appears to mean fees RSFH charges its related organizations for management and oversight.  Expenses totaled $139 million (not including $18 million in depreciation)and primarily consists of three expenses:

• $66 million (49% of revenue):  Compensation
• $35 million (26% of revenue):  Office-Related Expenses
• $25 million (19% of revenue):  Fees for Services (primarily management, program, general, and fundraising)

As illustrated above, compensation is the largest expenses for RSFH.  6,521 employees received $66 million in compensation which equates to an average compensation of $10,000 (very low compared to other healthcare providers). However, 566 employees received more than $100,000 in compensation in 2018. The 16 most highly compensated employees were reported to be:

• $1,052,127:  Brian Cuddy, Chairperson
• $1,014,318:  Lorraine Lutton, President and CEO, RSFH (paid by a related org through a mgmnt fee to Atrium Health)
• $  865,142:  John Spratt, Board Member
• $  739,353:  Todd Shuman, SVP and Chief Physician Officer
• $  724,460:  Matthew Severance, COO RSFH and CEO Roper Hospital
• $  715,204:  Bret D Johnson, SVP and CFO, RSFH (paid by a related org through a moment fee to Atrium Health)
• $  618,892:  Steven Akman, Medical Director, Oncology
• $  600,887:  Gregory Edwards, VP and General Counsel
• $  592,939:  Stanley Wilson, Chief Medical Officer – RH & BH
• $  461,212:  John Holloway, Jr, Board Member ($430,000 paid from a related org))
• $  423,426:  Keith Neuman, VP and CIO
• $  419,491:  Marc Rucquoi, Physician
• $  391,624:  Melanie Stith, VP, Human Resources
• $  332,653:  Susan Datta, Vice-Chairperson (start 7/1/18)
• $  328,836:  Jeanne Ballard, Chief Medical Informatics Officer
• $  303,339:  Mark Dickson, VP, Mission

As illustrated above, 12 of the 16 (75%) most highly compensated employees are male while 4 of the 16 (25%) are female.

65 independent contractors received more than $100,000 in compensation. The five most highly compensated independent contractors were reported to be:

• $8,093,418:  Carolinas Healthcare Systems, of Charlotte, NC for management services
• $2,794,924:  Credit Adjustment Bureau, of North Charleston, SC for collection services
• $1,697,071:  Change Healthcare, LLC, of Chicago, IL for maintenance and info tech services
• $1,138,089:  EClinical Works, of Boston, MA for software support
• $1,061,097:  MUSC of Charleston, SC for parking services

As illustrated above, the largest sum ($8.1 million) was paid to Carolinas Healthcare Systems for management services. It is unclear why RSFH, a management and oversight organization employs an outside company for management services.

To read the IRS Form 990 (2018), click here.