Executive Compensation at Avera Health
Avera Health is a Christian-based integrative healthcare system provider with 35 hospitals, 215 primary care and specialty clinics, 40 senior living facilities, and numerous home care, hospice, sports, and wellness facilities serving more than 1 million people in South Dakota, North Dakota, Minnesota, and Nebraska.
Based in Sioux Falls, South Dakota, Avera Health is made up of dozens of organizations that include tax-exempt non-profits and taxable partnerships, corporations, and trusts. This post reports the executive compensation at Avera Heath, a tax-exempt non-profit 501 (c) (3) with 15 voting members on the governing body, 10 of whom are independent, 8 of whom are male and 7 whom are female.
Key information reported on the Form 990 (for the year ending June 30, 2019) include the following:
Total revenue reported was $274 million (compared to $225 million the prior year). Most revenue came from “ACS Revenue” ($197 million) and “eCare Revenue” ($34 million). It is unclear what ACS stands for.
Total expenses of $250 million (not including $21 million in depreciation) were reported with the largest expense being compensation. 1,570 employees received $151 million in compensation which equates to an average compensation of $96,000. 180 employees received more than $100,000 with the most highly compensated reported to be (note: a “*” indicates compensation was paid by a related/affiliated organization:
- $3,524,413: Fredrick Slunecka, COO (until 8/24/2018)
- $1,829,288: John Porter, Past Pres and CEO (until 12/31/2018)
- $1,156,986: Bob Sutton, President and CEO
- $1,047,008: David Flicek, Pres and CEO, Avera McKennan
- $ 953,445: James Breckenridge, CFO, Avera Health; Sec/Treas
- $ 875,708: David Erikson, Chief Medical Officer
- $ 805,777: Luis Rojas-Espaillat, Director*
- $ 718,239: Richard Korman, SVP, General Counsel
- $ 702,979: Todd Forkel, Pres and CEO, Avera St Luke’s
- $ 648,511: James Veline, SVP, CIO
- $ 614,658: Robin Bates, EVP, Ins Srvcs and Pop Health
- $ 429,875: Jason Wickersham, Director*
- $ 420,510: Deanna Larson, CEO – eCare
- $ 234,087: Merritt Gregg Warren, Director*
It is important to note Fredrick Slunecka received $2,673,499 in severance pay and is reflected in total compensation.
The 10 most highly compensated employees are male. 12 of the 14 employees listed above (86%) are male while 2 (14%) are female.
137 independent contractors received more than $100,000 in compensation. $41 million was paid in fees to non-employees. The 5 most highly compensated employees were reported to be:
- $21.2 million: CDW Government, of Vernon Hills, IL for computer hardware consulting
- $14.8 million: Avera McKennan, of Sioux Falls, SD for services, hardware, software
- $ 6.4 million: Medical Info Technology, of Westwood, MA for hardware/software consulting
- $ 3.3 million: Medspeed, of Elmhurst, IL for courier services
- $ 2.8 million: Advisory Board Company, of Washington, DC for consulting
To read the IRS Form 990 (for the year ending June 30, 2019), click here.