Executive Compensation at FirstHealth of the Carolinas

FirstHealth of the Carolinas (FirstHealth) is a tax-exempt, non-profit providing healthcare service to 15 counties in the mid-Carolinas.  Headquartered in Pinehust, North Carolina, FirstHealth has about 5,300 employees working in 4 hospitals and 9 patient care centers.

FirstHealth has 17 voting members (board members) of the governing body (board), 16 of whom are independent. 18 board members are listed on the Form 990 (which appears to be due to timing differences) – 15 of whom are male while 3 are female (note: the Form 990 does not report gender identity. Conclusions are made based on name and google searches).

In 2019, FirstHealth reported total revenue of $864 million (compared to $776 million in 2018) most of which came from patient services.

Expenses totaled $813 million (including $36 million in depreciation) with the largest expenses reported to be compensation ($331 million), medical supplies ($140 million), fees for services ($117 million), bad debt ($120 million) and office-related expenses ($40 million).

6,004 employees received $332 million in compensation, which equates to an average compensation of $55,000.  408 employees received more than $100,000 in compensation with the 19 most highly compensated reported to be:

• $1,299,462:  David Kilarski, President and CEO (thru 7/31)
• $  996,697:  Mark Landers, Physician
• $  772,717:  Steven Filby, Physician
• $  761,065:  Peter Ellman, Physician
• $  758,205:  William Harris, Physician
• $  747,210:  William Kitchens, Physician
• $  586,832:  Lynn Dejaco, SVP, Corporate CFO
• $  567,647:  John Krahnert, SVP, Corporate CMO
• $  501,414:  Daniel Barnes, President, Physician Group
• $  408,029:  Jeffrey Casey, VP, Finance
• $  390,940:  David Dillehunt, VP, Corporate CIO
• $  390,046:  Brian Canfield, COO, Moore Regional
• $  331,784:  Daniel Biediger, VP, Human Resources
• $  310,500:  Amy Graham, VP, Strategy and Information
• $  296,955:  John Jackson, President, MRH Richmond Campus
• $  281,679:  Cindy McNeill-McDonald, VP, Quality
• $  266,328:  Karen Robeano, VP, CNO
• $  247,915:  Elizabeth Walker, President, MMH
• $  224,047:  Susan Beaty, President, MRH Hoke Campus

The 19 most highly compensated employees received $10 million in compensation.  13 of the 19 (68%) most highly compensated employees are male wile 6 of the 19 (32%) are female.  9 of the 10 most highly compensated employees are male while 1 is a female (note:  The Form 990 does not disclose gender identity. Conclusions were based on name and google searches).

The organization’s CEO participated in a Supplemental Executive Retirement Plan (SERP) and accrued $73,617 during the year.

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

• $19.2 million:  Pinehurst Medical Clinic, of Pinehurst, NC for oncology services
• $ 9.4 million:  Pinehurst Surgical Clinic, of Pinehurst, NC for physician services
• $ 7.1 million:  Southern Pines Women’s Health Center, of Southern Pines, NC for ob/gyn practice management
• $ 2.2 million:  Edwards Lifescienes, of Irvine, CA for heart and vascular implants
• $ 1.5 million:  Change Healthcare, of Alpharetta, GA for software and licensing

To read the IRS Form 990 (2018 for the year ending September 30, 2019), click here.