Executive Compensation at NorthShore University HealthSystem (2020)

NorthShore University HealthSystem (NUH) is a non-profit, tax-exempt 501 (c) (3) healthcare provider with 6 hospitals, and numerous clinics, surgery centers, primary care and specialty medical offices, labs and pharmacies in the Chicago metropolitan area. In addition, NUH is affiliated with the University of Chicago medical school.

Key information taken from the Form 990 (2019 for the year ending September 30, 2020) include the following:

NUH has $2.9 billion in net assets.

Total annual revenue was $1.8 billion, which came primarily from four sources:  patient revenue ($923 million), Medicare and Medicaid ($616 million), gains from the sale of assets/investment income ($105 million), and CARES Act funds ($94 million).

Total expenses were $1.8 billion (including $75 million in depreciation) and primarily consisted of compensation ($751 million or about 40% of revenue), medical supplies ($387 million), fees for services ($248 million), grants ($111 million and almost all of which went to an affiliate:  NorthShore Faculty Practice Associates for general support), and office-related expenses ($138 million).

12,394 employees received $751 million in compensation which equates to an average compensation of $61,000.  1,309 employees received more than $100,000 in compensation. The 35 most highly compensated employees were reported to be:

• $2,960,343:  Mark R Neaman, Executive Chairman
• $1,851,619:  Julian E Bailes, Clinical Chair*
• $1,712,435:  Sean O’Grady, Chief Clinical Operations Officer
• $1,594,830:  Jason L Koh, Director and Clinical Chair*
• $1,505,777:  Mark S Talamanti, Director and Clinical Chair*
• $1,455,729:  Douglas D Welday, Board Treasurer and CFO
• $1,416,874:  Kristen Murtos, Chief Admin and Strategy Officer
• $1,362,531:  Douglas M Silverstein, President, Evanston Hospital
• $1,277,488:  Steven Smith, CIO
• $1,264,838:  Robert Edelman, Clinical Chair*
• $1,110,562:  Mahalakshmi Halasaamani, Chief Quality and Transformation Officer
• $1,078,346:  Richard K Silver, Clinical Chair*
• $  986,532:  Michael S Caplan, Clinical Chair*
• $  984,289:  William D Bloomer, Clinical Chair*
• $  981,815:   Theodore Mazzone, Director and Clinical Chair*
• $  980,245:  Joseph Szokol, Clinical Chair*
• $  967,089:  Jesse Peterson Hall,  President, Glenbrook Park Hospital
• $  929,181:  William R Luehrs, Chief HR Officer
• $  906,487:  Karen L Kaul, Clinical Chair*
• $  793,306:  Gabrielle Cummings, Pres, Highland Park Hospital
• $  757,022:  David Rahija, President, Skokie Hospital
• $  704,644:  Samuel M Parnass, Director and Physician*
• $  688,442:  Mary Keegan, Chief Nursing Officer
• $  685,621:  Scott Kenagy, Chief Investment Officer
• $  647,010:  Frederick E Miller, Clinical Chair*
• $  646,345:  Sharon L Walcott, VP, Talent Mgmnt and Org Development
• $  613,238:  Pablo Gejman, VP, Genomic Research
• $  608,211:  Susan Rubin, Clinical Chair
• $  604,640:  Barnard G Ewigman, Clinical Chair*
• $  576,364:  Jianfeng Xu, VP, Translational Research
• $  555,958:  Brian Washa, SVP, Business Services and Purchasing
• $  516,484:  Harry L Jones, Chief Compliance Officer
• $  498,561:  Janardan D Khandekar, Medical Director, Molecular Med Ctr*
• $  482,000:  Mark R Neaman, Former Executive Chairman
• $  406,300:  Gary E Weiss, Former Board Chair and CFO

“*” indicates a portion of compensation was from a related/affiliaed org

28 of the 35 (80%) of the most highly compensated employees are male while 7 of the 35 (20%) are female. 

The 35 most highly compensated employees received $35 million in compensation. The most highly compensated employee was Mark Neaman who received $3 million in compensation in 2020; and more than $14 million in compensation over the last 5 years:

• 2020:  $2,960,343
• 2019:  $1,680,164
• 2018:  $4,285,223
• 2017:  $2,541,207
• 2016:  $2,516,321

NUH paid for first class or charter travel. Specifically, first class air travel was provided to the CEO for business purpose travel.

The following individual received severance or “change of control” payments:

• Sharon L Walcott:  $285,346
• Mark R Neaman:  $482,000

The following individuals participated in a supplemental non-qualified retirement plan and accrued the following benefits:

• Sean O’Grady:  $281,462
• Gerald P Gallagher:  $682,421
• Douglas M Silverstein:  $174,910
• Steven Smith:  $278,371
• Douglas Welday:  $196,438
• Kristen Murtos:  $224,243
• Mahalakshmi Halasaamani:  $90,496
• William R Luehrs:  $294,000

A “substantial contributor” (#77) received $3,886,036 for property management services.

A “substantial contributor (#133) received $368,832 for investment management.

Jamie Dohnalek (a family member of David Dohalek) received $53,501 for employment

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

• $66 million:  Aramark Management Services of Chicago, IL for facilities/diet management
• $20 million:  Pepper Construction Company of Barrington, IL for construction management
• $19 million:  U of Chicago Medical Center, of Chicago, IL for medical education
• $14 million:  TMX Healthcare Technologies, of Indianapolis, IN for technology management
• $14 million  Power Construction Company LLC of Schaumberg, IL for construction management

To read the IRS Form 990 (2019 for the year ending September 30, 2020), click here.