Executive Compensation at Memorial Hermann Health (Texas)
Memorial Hermann Health System (MHHS) is a Houston-based tax-exempt, non-profit healthcare provider with more than 29,000 employees and 6,000 physicians that serve in 17 hospitals (14 that the organization owns and 3 in which they have joint ventures) and nearly 300 care delivery sites in the Houston, Texas metropolitan area.
MHHS consists of many organizations (non-profits, corporations, trusts, and partnerships) but for the purpose of this post, the executive compensation reported on MHHS – a 501 (c) (3) – is addressed.
Key financial information on MHHS, as reported on the Form 990 (2018) include:
- There are 20 members (directors) in the governing body (Board of Directors), 18 of whom are independent. 17 of the 20 (85%) directors are male while 3 of the 20 (15%) are female.
- Total revenue was $5.4 billion (compared to $4.8 billion in 2017) most of which came from patient services (net) – $5.1 billion.
- Expenses totaled $4.9 billion (including nearly $300 million in depreciation) with the five largest expenses reported to be: compensation ($2.2 billion), fees for services ($867 million), medical supplies ($812 million), office-related expenses ($309 million), and equipment rental and maintenance ($180 million).
- Net assets increased from $4.1 billion to $4.7 billion at year-end, an improvement attributable to spending less than received and a $150 million change in net assets.
28,763 employees received $2.2 billion in compensation, which equates to an average compensation of $78,000. 3,644 employees received more than $100,000 in compensation with the 21 most highly compensated reported to be:
- $2,825,968: Charles D Stokes, CEO, President
- $2,343,422: David Bradshaw, Former Key Employee
- $2,204,477: Erin S Asprec, EVP, Acute Care Services/CTO
- $1,603,063: Myron M Shabot, EVP, CCO
- $1,554,333: Rodney Brace, Former Key Employee
- $1,456,626: Brian Dean, EVP, CFO, Treasurer
- $1,288,251: Deborah Gordon, EVP, CAO, CLO, Secretary
- $1,280,387: Anthony P Frank, SVP/CAO
- $1,230,198: Carroll E Aulbaugh, EVP, CFO, Treasurer
- $ 983,514: Angela Shippy, SVP, CQO
- $ 974,469: Joshua Urban, SVP, CEO-NE/TW
- $ 896,257: Gregory L Haralson, SVP, CEO-SW/SL
- $ 884,608: Paul C O’Sullivan, SVP, CEO-Memorial City
- $ 865,945: Susan Distefano, SVP, CEO-Children’s Hospital
- $ 829,126: Heath Rushing, SVP, CEO-Cypress/Katy
- $ 757,633: James McCarthy, EVP, CMO*
- $ 757,108: Kyle Price, SVO, CEO-SE/PL/Heartvas
- $ 755,815: Gary Kerr, Former Highly Compensated Employee
- $ 627,972: Amanda Hammel, SVP, CIO
- $ 505,286: Warren Shea, VP, Asst Secretary
- $ 483,839: Keith Alexander, Former Key Employee
16 of the 21 (76%) most highly compensated employees are male while 5 of the 21 (24%) are female.
1,137 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:
- $172 million: JT Vaughn Construction, of Houston, TX for contractor
- $ 55 million: Crothall Healthcare, of Chicago, IL for housekeeping
- $ 26 million: Tellepsen Builders, of Houston, TX for contractor
- $ 17 million: Siemens Medical Solutions USA, of Malvern, PA for contract services
- $ 14 million: Forney Construction, of Houston, TX for construction
To read the IRS Form 990 (2018), click here.