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May 25, 2021

Executive Compensation at the Federation of American Hospitals

by Anne Paddock

The Federation of American Hospitals (FAH) is a tax-exempt, non-profit 501 (c) 6 – a trade organization to promote the interests of more than 1,000 “tax-paying” hospitals and health systems (that account for about 20% of US hospitals) in federal health policy making. Founded in 1966, FAH is based in Washington, DC.

There are 4 classes of membership (institutional, associate, individual, and honorary). Within associate, individual and honorary there are different tiers of membership (not specified on the Form 990).

FAH reported total revenue of $15 million in 2019, most of which came from membership dues. Expenses were about $15 million with the four largest expenses being compensation ($8 million), fees for services ($4 million), travel and conferences ($1.5 million) and office-related expenses ($1 million).

  • $2,381,284: Charles Kahn, III, President
  • $ 783,291: Steve Speil, EVP
  • $ 684,474: Kathleen Tenoever, SVP
  • $ 621,774: Jeffrey Cohen, EVP
  • $ 424,344: Kerry Price, SVP
  • $ 343,122: Erin Richardson, VP, Assoc General Counsel
  • $ 297,893: Paul Kidwell, VP, Policy
  • $ 282,686: Leah Evangelista, VP, Public Relations
  • $ 267,566: Sean Brown, VP, Communications
  • $ 253,996: Patrick Velliky, VP, Legislation

The 10 most highly compensated employees received $6.4 million in compensation with the most highly compensated employee, Charles Kahn, III receiving nearly $2.4 million. This means the other 13 employees received $1.6 million in 2019. 6 of the 10 most highly compensated employees are male while 4 are female.

FAH paid for companion travel, health or social club dues or initiation fees, and provided gross-up payments or tax indemnification. Specifically, Charles Kahn, III received travel compensation for his spouse, gross-up payments for his insurance premiums, and social club dues payments. Membership with the social club is used for business reasons as well as a venue for meetings. This benefit is also available to “several” (unnamed) employees listed above.

16 independent contractors received more than $100,000 in compensation with the 5 most highly compensated reported to be:

  • $304,920: Health Policy Alts, of Wash, DC for technical payout, reg and gov’t analysis
  • $300,000: Fierce Gov’t Relations, of Wash, DC for gov’t relations analysis
  • $267,000: Hooper, Lundy, and Bookman, of LA, CA for legal/reg analysis
  • $240,000: Elmendorf Strategies, of Wash, DC for lobbying, task, reg and gov’t analysis
  • $220,000: FTI Consulting, of NY, NY for public affairs and policy res services

FAH reported total net assets of about $5 million at year-end.

To read the IRS Form 990 (2019), click here.

 

 

 

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