Executive Compensation at Advocate Aurora Health (IL)

Advocate Aurora Health (AAH) was formed in 2018 when Advocate Health Care (in Illinois) and Aurora Health (in Wisconsin) merged into one healthcare system made up of numerous other tax-exempt, non-profit and for profit organizations.  Based in Downers Grove, Illinois, AAH operates 26 hospitals and more than 500 out patient care sites staffed by 75,000 employees.

A tax-exempt, non-profit 501 (c) (3) named Advocate Aurora Health Inc (AHHI) that provides overall management to the healthcare system. AHHI is governed by 14 directors, 12 of whom are independent.  10 of the 14 (71%) are male while 4 of the 14 (29%) are female.

In 2018, total revenue was $57 million, all of which was reported as management revenue, presumably from the related/affiliated organizations in AHH.  Expenses totaled $57 million with the two largest expenses reported to be compensation ($44 million) and fees for outside services, which were primarily “management and general expenses” with no further detail ($8 million).  Given that income matches expenses exactly, it appears the organizations that make up AHH transfer funds to cover the costs to manage the system.

Although AHHI reports having no employees, senior management was compensated froths organization.  The 22 most highly compensated employees were reported to be:

• $8,511,609:  James Skogsbergh, Co-CEO, Director
• $8,125,039:  Nick Turkal, Co-CEO, Director
• $4,015,513:  William Santulli, Chief Operating Officer
• $3,530,170:  Lee Sacks, Chief Medical Officer
• $2,689,795:  Dominic Nakis, CFO, Treasurer
• $2,112,921:  Earl Barnes II, SVP, General Counsel
• $2,070,518:  Michael Lappin, Chief Integration Officer, Secretary
• $1,938,761:  Vincent Bufalino, Chief Medical Group Officer
• $1,859,442:  Kevin Brady, Chief HR Officer
• $1,773,727:  Jeff Bahr, Chief Medical Group Officer
• $1,724,994:  Richard Klein, Chief Business Development Officer
• $1,430,110:  Scott Powder, Chief Strategy Officer
• $1,421,261:  Eric Tower, VP, Associate General Counsel
• $1,214,593:  Kelly Jo Golson, Chief Marketing Officer
• $1,203,652:  Mary Beth Kingston, Chief Nursing Officer
• $1,092,295:  Barbara Byrne, Chief Information Officer
• $1,090,684:  Cristy Garcia-Thomas, Chief External Affairs Officer
• $1,086,072:  Michael Grebe, Chief Legal Officer
• $  926,036:  Kathie Bender Schwich, Chief Spiritual Care Officer
• $  666,880:  Shelly Hart, SVO, General Counsel
• $  497,586:  Fritz Vorlop, System VP, Associate General Counsel
• $  464,359:  Monica Hocum, Associate General Counsel

The 22 most highly compensated employees received nearly $40 million in 2018, which equates to an average compensation of $1.8 million each.  15 of the 22 (68%) most highly compensated employees are male while 7 (32%) are female. The 13 most highly compensated employees are male.

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