Executive Compensation at Centura Health (2020)
Centura Health is a tax-exempt, non-profit 501 (c) 3 healthcare provider based in Centennial, Colorado. With 17 hospitals, 14 affiliate hospitals, and hundreds of other healthcare providers (clinics, practices, etc), Centura Health is a faith-based organization with more than 21,000 employees.
This post addresses the executive compensation at the Centura Health Corporation (CHC) – an organization that has two members: Portercare Adventist Health System (a Florida not-for-profit corporation) and Catholic Health Initiatives Colorado (a not-for-profit Colorado corporation) – that provides overall management of the healthcare system. There are 10 voting members of the governing party, 9 of whom are independent; 9 of the board members are male while 1 is a female.
In 2020, total revenue reported was $479 million (compared to $467 million the prior year), most of which came from management fees from affiliated organizations. Expenses totaled $478 million (including $49 million in depreciation) which indicates CHC collects from its affiliates sufficient funds to cover the expenses (although at year-end CHC had $272 million in net assets which indicates they have not always spent what they collected).
CHC’s two biggest expenses are compensation ($250 million) an office-related expenses ($67 million). 4,913 employees received $251 million in compensation which equates to an average compensation of $51,000. 513 employees received more than $100,000 with the 8 most highly compensated reported to be:
- $2,885,902: Peter Banko, CEO and Board Member (beg 9/17)
- $1,976,447: Mitchell Carson, Retired CEO, Longmont United Hospital
- $1,860,329: Edward Sim, COO
- $1,799,323: Thomas Gessell, Group CEO
- $1,544,107: Scott Ellner, CEO, Physician Group
- $1,473,872: Kenneth Bacon, Group President
- $1,493,934: Dan Enderson, Treasurer, CFO, SVP
- $1,172,701 : Kris Ordelheide, SVP, Legal Services (former officer)
The 8 most highly compensated employees received nearly $15 million. All of the most highly compensated employees are male.
CHC paid for companion travel, provided discretionary spending accounts, and provided a housing allowance or a residence for personal use. In addition, CHC participates in deferred retirement accounts. To see details of these expenses, go to Schedule J, Part III, Supplemental Information on the Form 990
59 independent contractors received more than $100,000 in compensation. The 5 highest were reported to be:
- $13.1 million: HUGE, LLC, of Chicago, IL for marketing and design services
- $ 2.7 million: PFS Group, of Houston, TX for medical billing services
- $ 1.3 million: People 20 Global, of Philadelphia, PA for staffing services
- $ 1.2 million: Triage Consulting Group, of San Francisco, CA for hospital reimbursement services
- $ 1.1 million: Surgio, LLC of Scottsdale, AZ for consulting services
To read the IRS Form 990 for the year ending June 30, 2020, click here.