Executive Compensation at Ascension Health (2020)
Ascension Health is the nation’s largest Catholic non-profit health system with 139 hospitals, 2,600 sites of care, and 40 senior living facilities in 19 states and the District of Columbia. The sole corporate member of Ascension Health is Ascension Health Alliance, a Missouri non-profit 501 (c) (3). Consequently, there are two separate IRS Form 990’s that need to be viewed to gain an understanding of the executive compensation. There are numerous other organizations within Ascension Health but those are not covered in this post.
Ascension Health Alliance
In 2020, Ascension Health Alliance reported total revenue of $2.4 billion (compared to $2.3 billion the prior year) and expenses of nearly $1.7 billion, leaving $700 million unspent at year-end. Added to the fund balance along with adjustments in net assets and unrealized losses on gains meant the net fund balance at year-end was $15.7 billion.
7,230 employees were compensated $908 million which equates to an average compensation of $126,000. However, only 1,133 employees received more than $100,000 in compensation which suggests that those most highly compensated received significantly higher compensation. The 8 most highly compensated individuals are listed below:
- $16,377,863: Patricia A Maryland, EVP
- $10,946,473: Anthony R Tersigni, CFO (end 6/19), Pres and CEO Ascension Cap (start 7/19)
- $10,631,627: Anthony J Speranzo, CEO (end 6/19); Chair Ascension Cap (start 7/19)
- $ 7,251,194 : Joseph R Impicciche, President and CEO
- $ 3,327,545: Karen Springer, EVP, Performance Opt and Nursing Ops
- $ 2,910,324: Herbert J Vallier, EVP and CHRO
- $ 1,524,363: Eduardo F Conrado, Former Board Member (end 6/18)
- $ 1,415,388: Elizabeth Foshage, EVP and CFO
As illustrated above, the most highly compensated individuals are receiving exorbitant compensation packages (especially given the Catholic doctrine).
The IRS Form 990 for the year ending June 30, 2020 also reports Ascension Health Alliance paid for first class or charter travel, housing allowance and or a residence for personal use, and tax indemnification and gross-up payments Schedule J, Part III, Supplemental Information does not provide any specific detail as to the extent of these expenses.
In 2020, Ascension Health reported total revenue of $141 million and expenses of $152 million (including $6 million in depreciation) with the $11 million in excess expenses offset by $28 million in other changes in net assets allowing the net fund balance to increase from $39 million at the beginning of the year to $57 million at year-end.
1,548 employees) received $100 million in compensation which equates to an average compensation of $65,000. 58 employees received more than $100,000 in compensation which again, suggests the most highly compensated employees received significantly more. The 10 most highly compensated individuals are listed below (note: the names in bold were compensated by Ascension Health while the others were compensated in whole or part by Ascension Health Alliance or another related organization):
- $16,377,863: Patricia A Maryland, Former Officer (end 3/2019)
- $ 7,251,194: Joseph R Impicciche, President and CEO
- $ 2,910,324: Herbert J Vallier, Former Officer (end 5/2019)
- $ 2,495,533: David B Pryor, Former Officer (end 5/2019)
- $ 2,449,425: Robert J Henkel, Former Officer (end 6/2017)
- $ 2,152,026: Christine McCoy, Secretary
- $ 1,807,893: Rhonda Anderson, Former Officer (end 6/2019)
- $ 1,415,,388: Elizabeth C Foshage, CFO
- $ 381,245: Carolyn Stover, Senior Director, Ascension Connect
- $ 370,561: Matthew A Jagger, Treasurer
- $ 360,000: Douglas S Thompson, Exec Dir, MSC Strategy and Bus Development
- $ 339,644: Stacey L Junk, Senior Director, Ascension Connect
- $ 288,644: Heather Johll, VP, MSC Operatios
- $ 262,982: Todd Pepmeier, Exec Dir, MSC Finance
7 of the 14 individuals (50%%) listed above are male while 7 of the 14 (50%) individuals are female. Of those who received compensation solely from Ascension Health (9 individuals), 5 (56%) are male while 4 (44%) are female.
The IRS Form 990 for the year ending June 30, 2020 also reports Ascension Health paid for tax indemnification and gross up payments and housing allowance or a residence for personal use. Schedule J, Part III, Supplemental Information does not provide detail as to who received these benefits and to what extent.
Bottom Line and Notable Information
Ascension Health and Ascension Health Alliance are very profitable health care providers who also have managed to create and grow significant net fund assets (more than $15 billion). The staff is very well compensated and those who left also received generous compensation packages.
To read the IRS Form 990 for the year ending June 30, 2020 for Ascension Health Alliance, click here.
To read the IRS Form 990 for the year ending June 30, 2020 for Ascension Health, click here.