Executive Compensation at Bon Secours Mercy Health

Bon Secours Mercy Health (BSMH) became one of the largest Catholic healthcare providers serving communities in seven states and Ireland when merged with Mercy Health in September, 2018.

A tax-exempt, non-profit healthcare system that consists of dozens of related/affiliated organizations, BSMH used Bon Secours Mercy Health Inc (BSMHI) as the “home office for Bon Secours Mercy Health System providing administrative/management services to affiliates.”  Consequently, total revenue in 2018 ($115 million) is primarily from related organizations who all contributed for corporate management service fees.

This post is limited to the executive compensation reported by BSMHI.

Expenses in 2018 totaled $99 million (not including $10 million in depreciation) with the two largest expenses reported to be compensation ($65 million) and office-related expenses ($21 million).

1,252 employees received $65 million in compensation which equates to an average compensation of $52,000.  419 employees received more than $100,000 in compensation with the 15 most highly compensated reported to be:

• $3,255,988:  John Starcher, Jr, President and CEO (beg 9/2018)*
• $2,597,608:  Mark Nantz, Chief Administrative Officer
• $1,935,719:  Wael Haidar, Chief Clinical Officer (beg 9/2018)
• $1,822,799:  Samuel Ross, Chief Community Health Officer
• $1,646,569:  Brian Smith, EVP, COO (beg 9/2018)*
• $1,553,800:  Joseph Gage, Jr., SVP, Chief HR Officer (beg 9/2018)
• $1,366,053:  Deborah Bloomfield, CFO, Board Treasurer (beg 9/2018)*
• $1,360,530:  Judson Ivy, Pres and CEO Ensemble RMC LLC (beg 9/2018)
• $1,320,097:  Alethea Williams-Carlson, CIO
• $1,314,419:  Jeffrey Oak, Chief Enterprise Risk Officer (beg 9/2018)
• $1,273,210:  Andrea Mazzoccoli, SVP, Chief Nursing Officer
• $1,245,415:  David A Cannady, Chief Strategic Officer (beg 9/2018)*
• $1,230,387:   Michael Bezney, Chief Legal Officer and Gen Counsel (beg 9/2018)*
• $  853,172:  Jerome Judd, VP, Treasurer (beg 8/2018)
• $  785,230:  Christine Lay, Secretary

A “*” indicates a portion of the compensation was paid by a related organization.

As illustrated above,the 15 most highly compensated employees received nearly $24 million in compensation.  8 out of the 10 most highly compensated employees are male while 2 are female. 11 of the 15 (73%) most highly compensated employees are male while 4 of the 15 (27%) are female.

BSMHI made gross up payments or provided tax indemnification.  No detail is provided.

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

• $9.2 million:  CDW Government, Inc., of Chicago, IL for software services
• $8.6 million:  EPIC Systems Corp, of Verona, WI for software services
• $7.2 million:  Shiftwise, of St Paul, MN for staffing
• $ 6.0 million:  Epitome Networks, of Richmond, VA for IT maintenance
• $3.8 million:  Deloitte Tax Consulting, of Boston, GA for consulting

To read the IRS Form 990 (2018), click here.