Executive Compensation at TriHealth (OH)
TriHealth is a non-profit healthcare system that operates 5 hospitals and more than 130 healthcare sites in the Cincinnati, Ohio metropolitan area. With about 12,000 employees that work for dozens of related/affiliated organizations, TriHealth is one of the largest employers in Cincinnati.
This post is about TriHealth, Inc. (TriHealth) which is a tax-exempt non-profit 501 (c) 3 that has two corporate members: Bethesda, Inc. and Catholic Health Initiatives, who elect board members. There are 13 board members in the governing body, 8 of whom are independent. 11 of the 13 (85%) are male while 2 (15%) are female.
For the year ending June 30, 2019, TriHealth reported total revenue of $248 million, most of which is shared services revenue which appears to mean the revenue came from related organizations to pay for shared management services. Expenses totaled $244 million (not including $20 million in depreciation) with the three largest expenses being compensation ($138 million), other fees ($57 million) which appears to be primarily “program service” and consulting fees, and office-related expenses ($34 million). At year-end, TriHealth had nearly $1 billion in net assets (up from $800 million at the beginning of the year, due primarily to capital contributions from related organizations).
1,460 employees (about 13% of their total workforce at the time) received $138 million which equates to an average compensation of $95,000. 315 employees received more than $100,000 with the 25 most highly compensated reported to be:
- $1,853,100: John Prout, Former Officer
- $1,779,875: Mark Clement, President and CEO
- $1,192,978: Gerald Oliphant, Former Key Employee
- $1,128,928: Gail Donovan, EVP and COO (end 6/19)
- $ 942,998: Andrew Devoe, Asst Treasuruer, CFO
- $ 938,472: Walter McLarty, Former Highly Compensated Employee
- $ 826,500: Thomas Tami, TPP Phys Exec (part of comp paid from a related org)
- $ 788,983: Kevin Joseph, Chief Medical Officer
- $ 776,916: Rob Cercek, EVP, POP Health and Physician Practices
- $ 701,155: Bryan Strader, Physician Executive TPP
- $ 670,193: Steve Mombach, SVP, Ambulatory Services
- $ 636,336: John Ward, CIO
- $ 627,415: Scott Friedstrom, Med Staff Pres-Good Sam (paid from a related org)
- $ 618,343: Craig Eisentrout, Trustee (paid from a related org)
- $ 605,346: William Groneman, Senior Exec Advisor to the CEO
- $ 591,844: Jason Niehaus, Former Highly Compensated Employee
- $ 582,864: David Cook, Chief HR Officer
- $ 575,429: Steve Gracey, Asst Secty, SVP Legal
- $ 568,845: Dennis Kolb, VP, Clinical Integration
- $ 529,166: Mary Irvin, Chief Nursing Exec (end 10/18)
- $ 513,404: Michael Crofton, Former Officer
- $ 504,985: Randy Curnow, President, TriHealth PHO
- $ 393,393: Donna Nienaber, Former Officer
- $ 365,508: Jennifer Skinner, Chief Nursing Exec (start 11/18)
- $ 229,842: Bob Collines, Trustee (start 7/18)
21 of the 25 (84%) most highly compensated employees are male while 4 (16%) are female.
The 25 most highly compensated employees received $19 million in compensation.
TriHealth paid for health or social club dues or initiation fees. Specifically, “TriHealth maintains a membership in a local social club in the name of the President and CEO..This membership is a business membership for the benefit of TriHealth, Inc….”
TriHealth made gross up payments and provided tax indemnification. Specifically, “All directors in an employment position of vice president or higher with TriHealth are eligible to receive tax gross up payments on the following benefits: supplemental or split dollar life insurance, executive health program services, long-term disability insurance, long-term care insurance, financial counseling, business club memberships, health club memberships…” and in some cases supplemental executive retirement plans.
Severance payments were made to Donna Nienaber ($190,434), Jason Niehaus ($83,736), and Dennis Kolb ($52,230).
151 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:
- $14 million: Catholic Healthcare Initiatives, of Englewood, CO (a related org) for clinical engineering
- $ 5 million: Navigant, of Chicago, IL for consulting
- $ 4 million: EPIC Systems Corp, of Verona, WI for software consulting
- $ 4 million: PFS Group, of Houston, TX for A/R recovery
- $ 3 million: Cincinnati Bell Technology Solutions, of Cincinnati, OH for IT
To read the IRS Form 990 (2018 for the year ending June 30, 2019), click here.