Executive Compensation at Shriners Hospitals (2018)

Shriners Hospitals for Children is a network of 22 hospitals that provide specialized pediatric care (orthopaedic, burn, spinal cord, and palate) for children under the age of 18. According to the Shriners website, 20 out of the 22 hospitals are located in the United States and file IRS Form 990’s under two corporations:

• The Shriners Hospitals for Children (for 18 of the hospitals in the US) – a Colorado corporation based in Tampa, Florida; and
• The Shriners Hospitals for Children (for 2 of the hospitals in Massachusetts) – a Massachusetts corporation based in Tampa, Florida.

The Shriners Hospitals for Children – Colorado (SHC – CO) and the Shriners Hospitals for Children – Massachusetts (SHC – MA)raised nearly $1.1 billion and reported total expenses of about $850 million in 2018. And yet the collective net assets of the organizations fell by nearly $1 billion because of net unrealized losses on investments. But, because the organizations have more than $8 billion in net assets, they were able to endure.

The largest expense for both organization is compensation for the employees.

SHC – CO paid $429 million in compensation to 5,940 employees, which equates to an average compensation of $72,000.  728 employees received more than $100,000 in compensation. The 6 most highly compensated employees were reported to be:

• $1,675,307:  Allison Scott, Orthopedic Surgeon and Assistant Professor
• $1,414,567:  Peter Stasikelis, Director of Spine Program
• $1,037,483:  Michael Aiona, Orthopedic Surgeon
• $  916,561:  Douglas Barnes, Chief of Staff
• $  803,680:  Scott Kozin, Chief of Staff
• $  642,337:  John McCabe, EVP

5 of the 6 (83%) most highly compensated employees are male while 1 of the 6 (and the most highly compensated) is a female.  Interestingly, SHC – CO has a board composition of 20 members, 17 of whom are independent. Because of timing differences, 22 members (trustees) are listed on the Form 990. All trustees are male.

71 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:

• $11 million:  UC Regents UC Davis Medical Center, of Davis, CA for medical services
• $ 9 million:  The University of Texas Medical, of Galveston, TX for medical services
• $ 6 million:  Pasadena Hospital Association, of Pasadena, CA for medical services
• $ 3 million:  Kentucky Medical Services Foundation, of Lexington, KY for medical services
• $ 3 million:  University of Illinois, of Urbana, IL for medical services

SHC – MA paid $35 million in compensation to 593 employees, which equates to an average compensation of $59,000.  61 employees received more than $100,000 in compensation. The 5 most highly compensated employees were reported to be:

• $721,000:  John Deweese, Orthopedic Surgeon and Assistant Professor
• $706,362:  James Mooney, Chief of Staff
• $464,629:  Prerana Patel, Orthopedic Surgeon and Assistant Professor
• $425,941:  Rubini Pathy, Orthopedic Surgeon and Assistant Professor
• $287,088:  H. Lee Kirk, Administrator

4 of the 5 (80%) of the most highly compensated employees are male while 1 of the 5 (20%) is female. SHC – MA is overseen by a board with 22 members, 19 of whom are independent. Because of timing differences, 26 are listed on the Form 990. All trustees are male.

11 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:

• $5.7 million:  The General Hospital Corp, of Boston, MA, for outside patient services
• $0.6 million:  Springfield Anesthesia Services, of Springfield, MA for anesthesia services
• $0.4 million:  Dr Edward Bittner, of Boston, MA for medical services
• $0.3 million:  CHG Medical Staffing, of Dallas, TX for medical services
• $0.2 million:  Baystate Medical Practices, of Springfield, MA for medical services

SHC – CO and SHC – MA paid for first class flights for board members and executive staff whose flights are more than 2.5 hours long. Companion travel is provided for board members whose companion is participating in Shriners business. And, temporary housing allowances were provided for recruited individuals when relocation was required.

To read the IRS Form 990 (2018) for SHC – CO, click here.

To read the IRS Form 990 (2018) for SCH – MA, click here.