Executive Compensation at the American Health Care Association

The American Health Care Association (AHCA) is a tax-exempt, non-profit 501 (c) (6) – a trade association – whose members include nursing homes, assisted living communities, and facilities for individuals with disabilities.

AHCA is overseen by 15 voting members (reps) of the governing body, 12 of whom are independent. The Form 990 (2019) lists 18 reps (which appears to be due to timing differences). 12 of the 18 (67%) reps are male while 6 (33%) are female (note: Gender identity is not reported on the Form 990. Conclusions were made based on name and google searches).

AHCA is a small organization in terms of revenue. In 2019, AHCA reported total revenue of $39 million (compared to $37  million in 2018) with most revenue coming from membership dues ($23 million from a reported 14,000 members – organized groups of care facilities – equates to an average membership fee of $1,643 annually per member), meetings and exhibits ($6 million), and sponsorships ($5 million).

Expenses totaled $39 million with the two largest expenses reported to be compensation ($20 million) and travel and conferences ($7 million).

108 employees received $20 million in compensation which equates to an average compensation of $185,000.  However, only 40 employees received more than $100,000 in companion with the 15 most highly compensated reported to be:

• $2,051,077:  Mark Parkinson, President and CEO
• $  702,812:  Clifton Porter, SVP, Government Relations
• $  547,913:   David Gifford, SVP, Quality and Research
• $  533,914:  Jennifer Shimer, COO
• $  529,754:  Scott Tittle, Executive Director NCAL
• $  519,262:  Rae Anne Davis, Chief Strategic Officer
• $  438,380:  Kim Zimmerman, VP, Gov’t Relations
• $  420,216:  Michael Bassett, VP, Gov’t Relations
• $  402,823:  Christopher Donnellan, Sr Director, Gov’t Relations
• $  399,972:  Beth Martino, SVP, Public Affairs
• $  393,684:  Mike Cheek, SVP, Reimbursement Policy
• $  358,075:  Leona Taylor, CFO
• $  343,364:  Jill Sumner, VP, POP Health Mgmnt
• $  312,191:  Dave Kyllo, VP, Insurance and Member Programs
• $  299,671:  Paula Warren, CIO

The 15 most highly compensated employees received $8 million in compensation. The remaining 93 employees received $12 million in compensation, which equates to an average compensation of $129,000.

8 of the 15 most highly compensated employees are male while 7 of the 15 are female (note: Gender identity is not reported on the Form 990. Conclusions were made based on names and google searches).

It is important to note the President and CEO received more than $2 million in compensation which is high given that AHCA is a relatively small trade organization that raises less than $40 million annually.

AHCA paid for health or social club dues or initiation fees. Specifically, membership to the Capital Hill Club and National Democratic Club is maintained for a few employees (how many and who is not reported). “The clubs are used to host large and individual meetings with members of Congress and lobbyists.”

In addition, all employees are allowed to join the fitness center near the AHCA headquarters in Washington, DC. The membership dues are reported as taxable income.

AHCA paid for companion travel. Specifically, AHCA paid for the President and CEO and his spouse to return to the US from vacation travel to testify before Congress.

AHCA paid for a residence for personal use. Specifically, AHCA paid for a SVP who commutes to Washington, DC to supervise a department in AHCA.

In summary, AHCA is a small (as measured by revenue) trade association that compensates some employees very well, including the President and CEO, Mark Parkinson who received more than $2 million in compensation in 2019.

To read the IRS Form 990 (2019), click here.