Executive Compensation at Scripps Health (2019)

Scripps Health is a non-profit, tax-exempt 501 (c) (3) healthcare provider that includes hospitals (5), clinics, medical centers, urgent care facilities, walk-in clinics, hospice care, surgery centers, specialty care centers and health plans. Although “Scripps Health” often refers to an entire healthcare system, it is important to point out that Scripps Health consists of many organizations – both non-profit and for-profit.

The executive compensation reported on the Form 990 (2018 for the year ending September 30, 2019) for “Scripps Health,” the non-profit, tax-exempt 501 (c) (3) – a single entity – is the subject of this post. Governed by 18 voting members (trustees) of a  board, 17 of whom are independent, board composition is 13 males and 6 females (note: the Form 990 listed 19 voting members with one member a partial year member).

Based in San Diego, California, Scripps Health reported $3.2 billion in revenue in 2019 (compared to $3.2 billion in 2018) most of which came from the delivery of healthcare. Expenses totaled $3.1 billion (including nearly $200 million in depreciation) with the largest expenses being compensation ($1.3 billion), fees for services ($674 million), and medical supplies ($543 million).  At year-end, net assets were $4.3 billion (compared to $4 billion at year-end 2018).

17,951 employees received $1.3 billion in compensation in 2018, which equates to an average compensation of $75,000. 2,554 employees received more than $100,000 in compensation with the 22 most highly compensated employees reported to be:

• $2,420,558:  Christopher Van Gorder, President and CEO/Trustee
• $2,044,802:  Gary Fybel, Chief Executive, SVP
• $1,878,114:  Richard Rothberger, Treasurer/Corp Exec VP/CFO
• $1,275,946:  Shiraz Fagan, Chief Executive, SVP
• $1,142,950:  James LaBelle, Corp SVP, Chief Medical Officer
• $1,036,137:  Thomas Gameiere, Chief Executive, SVP
• $1,001,202:  Richard R Sheridan, Sec/CorpSVP-HR/General Counsel
• $  956,988:  Carl Etter, Chief Executive, SVP
• $  951,588:  Barbara Price, Coporate SVP, Business and Serv Line Dev
• $  947,991:  Thomas Buchholz, Corp SVP
• $  945,027:  June Komar, Corp EVP, Strategy and Admin
• $  927,103:  Richard Neale, Corporate Executive, VP, Chief Growth Officer
• $  810,421:  Robin Brown, Chief Executive, SVP
• $  779,065:  James Crowder, Corporate SVP, CIO
• $  738,722:  John Engle, Corp SVP, Chief Development Officer
• $  588,323:  John Poole, Corporate VP, System Improvement
• $  582,423:  Bruce Rainey, Corp VP, Construction and Facilities
• $  582,023:  Mary Ellen Doyle, Corporate VP, Nursing Ops
• $  555,806:  Eric Cole, Corp VP, HR
• $  538,251:  Lisa Thakur, Corporate SVP, Ancillary Ops
• $  528,126:  Bradley Ellis, Corp VP, Asst General Counsel
• $  511,648:  Laurance Cracroft, VP, Physicians Network DEVT

17 of the 22 (77%) most highly compensated employees are male while 5 of the 22 (23%) are female. 9 of the 10 most highly compensated employees are male while 1 is a female. The most highly compensated employee was Christopher Van Gorder who received $2.4 million in 2019.

Scripps Health pays for the cost of a membership for a business networking club in San Diego for the CEO, which is used for business purposes. The membership fee was $1,830in 2019.

Certain executives receive an automobile allowance which is included as taxable wages.

Scripps Health provided discretionary spending accounts.

For information on the retirement plan payments and payouts, see the Form 990, Schedule J, Part III, Supplemental Information.

Christopher Van Gorder received a loan of $10,023,866 as deferred compensation. The balance due is $11,441,491.

June Komar received a loan of $2,769,010 as deferred compensation. The balance due is $3,191,960.

Richard Sheridan received a loan of $4,063,606 as deferred compensation. The balance due is $4,610,050.

Robin Brown received a loan of $2,668,899 as deferred compensation. The balance due is $3,090,644.

Scripps did business with substantial contributors.  For detail on these transactions, see the Form 990, Schedule L, Part IV, Business Transactions Involving Interested Persons.

Severance payments were made to Gary Fybel ($540,500) and Robin Brown ($529,984).

140 independent contractors received more than $100,000 in compensation. The five most highly compensated independent contractors were reported to be:

• $301 million:  Scripps Clinic Medical Group, of La Jolla, CA for physician services
• $ 53 million:  Scripps Coastal Medical Group, of San Diego, CA for physician services
• $ 32 million:  Medimpact Healthcare Systems, of San Diego, CA for pharmaceutical services
• $ 29 million:  Scripps Hospital Inpatient Provider, of San Diego, CA for physician services
• $ 13 million:  Emergency Acute Care Med Corp, of San Diego, CA for physician services

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