Executive Compensation at Iowa Health System

Iowa Health System is also known as UnityPoint Health, one of the largest healthcare systems in the Iowa, although the organization also provides healthcare in Illinois and Wisconsin (hence, the name change using the word “unity”). Although the name change occurred in 2013, Iowa Health System still files a form 990 under the Iowa Health System name but notes that the organization is doing business as UnityPoint Health. This entity is the management arm of the organization.

There are 19 voting members of the governing party, 16 of whom are independent. 12 of the 19 (63%) are male while 7  (37%) are female.

Iowa Health System (IHS) operates 21 hospital/medical centers across Iowa, Illinois,and Wisconsin and hundreds of other healthcare provider locations that employ more than 32,000 employees.  IHS is actually dozens of non-profit organizations that work together and are managed by a tax-exempt non-profit  501 (c) (3) known as Iowa Health System dba UnityPointHealth (IHS UPH). This organization employs about 2,150 employees (about 7% of employees).

In 2019, IHS UPH reported total revenue of $403 million, most of which came from “member” organizations that contributed revenue for management/support services.  Expenses totaled $409 million (including $48 million in depreciation) with the two largest expenses reported to be compensation ($165 million) and fees for services ($140 million).

Fees for services consists of service management contracts ($73 million), miscellaneous ($33 million), consulting ($15 million), and software maintenance ($12 million) and other ($7 million).

2,150 employees received $165 million in compensation which equates to an average compensation of $77,000.  247 employees received more than $100,000 in compensation with the 32 most highly compensated in 2019 reported to be (note:  a “*” indicates all or part of the compensation was from a related/affiliated organization):

• $2,620,699:  Kevin Vermeer, President, CEO
• $2,586,953:  Richard Seidler, President/CEO-QC (to 5/19)*
• $2,135,166:  Deborah Simon, President/CEO-PM* (to 7/19)
• $1,606,542:  Theodore Townsend, Former Pres/CEO-CR, Pres/CEO-DUB (to12/18)*
• $1,369,293:  Denny Drake, VP, General Counsel/Corp CO
• $1,343,377:  Art Nizza, EVP, COO
• $1,262,535:  Susan Thompson, SVP INT and OPT
• $1,074,827:  Daniel Carpenter, SVP, CFO
• $  971,247:  David Williams, CEO, IPCMF and UPH@Home*
• $  902,129:  Keith Knepp, President/CEO-PM (from 7/19)*
• $  898,842:  Renee Rasmussen, VP Revenue Cycle
• $  890,871:  David Stark, President/CEO-DSM*
• $  854,871:  Susan Erikson, President/CEO-WI*
• $  787,772:  Michelle Niermann, Interim President/CEO-DUB (from 6/18)*
• $  769,657:  Pamela Delagardelle, President/CEO-WAT*
• $  754,918:  Emily Porter, SVP, Talent and Marketing Comm Officer
• $  683,755:  Mark Johnson, VP Supply Chain Management
• $  681,268:  Mike Dewerff, SVP, CFO-DSM, Former Pres/CEO-FD (to 7/18)*
• $  679,112:  Sabra Rosener, VP Government Relations
• $  583,695:  Lynn Wold, President/CEO-SC*
• $  519,652:  Laura Smith, VP, CIO
• $  506,194:  Mary Osborn, VP Care Transformation
• $  496,736:  Brian Jones, VP Payor Innovation
• $  485,082:  Aric Sharp, VP/ACO (to 2/19)
• $  480,197:  Wendy Mortimore, Chief Medical Info Officer
• $  480,111:  Kent Lehr, VP Strategy and Business Development
• $  463,063:  Matthew Kirschner, VP/Treasury
• $  454,435:  Kyle Christiason, Board Member*
• $  448,085:  Stanton Danielson, Board Member*
• $  392,685:  John Sheehan, SVP, Chief Admin Officer
• $  376,417:  Catherine Ranheim, Board Member*
• $  375,632:  Todd Burchill, Business Development Executive Director

The 32 most highly compensated employees received more than $28 million in compensation in 2019.  19 of the 32 (59%) most highly compensated employees are male while 13 (41%) are female. 8 of the 10 most highly compensated employees are male while 2 are female.

IHS UPH paid for first class or charter travel and companion travel.  In addition, gross up payments and/or tax indemnification was provided. To read about these perks, and severance payments for former employees, go to the Form 990, Schedule J, Part III, Supplemental Information.

The following individuals participated in the supplemental non-qualified retirement plan:

• $749,273:  Kevin Vermeer
• $495,179:  Richard Seidler
• $492,149:  Susan Thompson
• $232,606:  Art Nizza
• $197,943:  Theodore Townsend
• $196,598:  Daniel Carpenter
• $182,012:  David Williams
• $180,622:  David Stark
• $176,254:  Pamela Delargardelle
• $162,210:  Mark Johnson
• $159,843:  Sabra Rosener
• $155,474:  Michelle Niermann
• $123,928:  Denny Drake
• $120,382:  Emily Porter
• $ 92,589:  Lynn Wold
• $ 84,603:  Keith Knepp
• $ 83,779:  Sue Erikson
• $ 80,287:  Michael Dewerff
• $ 72,240:  Renee Rasmussen
• $ 53,998:  Deborah Simon
• $ 19,180:  Stanton Danielson
• $  9,192:  Kyle Christiason
• $  3,938:  Todd Burchill

152 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

• $6.4 million:  Crowe LLP, of South Bend, IN for consulting services
• $4.0 million:  Change Healthcare, of Nashville, TN for management services
• $3.4 million:  H & R Accounts, of Moline, IL for collection services
• $2.4 million:  The Advisory Board Company, of Chicago, IL for consulting services
• $2.2 million:  Palmer Companies, of West Des Moines, IO for employment services