Executive Compensation at Baycare Health Systems (2020)

Baycare Health System is one of the largest healthcare systems in Florida.  Headquartered in Clearwater with 15 hospitals, 18 urgent care centers, 4 surgery centers, 36 imaging facilities, 171 primary care and physician practice locations, and 35 walk-in health care facilities in Publix supermarkets throughout Tampa Bay and West Central Florida, Baycare Health System serves the Tampa Bay and western-central regions of Florida.

Baycare Health System consists of dozens of other organizations (i.e. tax-exempt organizations, taxable partnerships, corporations, and trusts), who pay a “management fee” to a tax-exempt, non-profit entity called “Baycare Health Systems, Inc” BHSI that manages the whole system.  This post reports the executive compensation of BHSI only (see the other Form 990’s for executive compensation of other related/affiliated entities).

BHSI reported total revenue of $800 million in 2020 (compared to $819 million in 2019 and $706 million in 2018) most of which came from two sources:  management fees from related organizations ($504 million) and investment income/gains on sale of assets ($200 million).  The investment income and gains came from the BHSI’s investments (the organization has more than $1.1 billion in net assets).

Expenses totaled $602 million (including $45 million in depreciation) – significantly less than total revenue collected which appears to be how BHSI has accumulated more than $1.1 billion in net assets.  The two largest expenses were compensation ($352 million) and office-related expenses ($138 million) which is to be expected given this organization’s purpose is to manage the health system.

5,690 employees received $352 million which equates to an average compensation of nearly $62,000.  654 employees received more than $100,000 in compensation with the 11 most highly compensated reported to be:

• $4,256,711:  Tommy Inzina, Trustee/President/CEO
• $1,987,109:  Glenn Waters, EV, COO
• $1,500,122:  Bruce Flareau, VP/President Physician Leadership Institute*
• $1,482,380:  Janice Polo, EVP, CFO
• $1,295,285:  Nishant Anand, EVP, CMO
• $1,025,176:  Scott Kizer, SVP, Chief Legal Officer
• $1,014,584:  Tim Thompson, SVP, Info Services/CIO
• $   972,201:  Andrew Fink, SVP, President Baycare Medical Group
• $   940,366:  Kyle Barr, SVP, Chief Team Resources Officer
• $   862,790:  Dana Kellis, SVP CMO – Hospital Division
• $   445,451:  Lynette Clinton, VP, Applications

“*” indicates Mr. Flareau received $703,913 in severance in 2020

As illustrated above, the 11 most highly compensated employees received nearly $16 million in compensation.  8 of the 11 (73%) most highly compensated employees are male while 3 of the 11 (27%) are female (note:  gender is not reported on the Form 990; determinations were made based on name and google searches).

The most highly compensated employee was Tommy Inzina who received nearly $4.3 million in 2020 and nearly $18 million in compensation over the past 5 years:

• 2020:  $4,256,711
• 2019:  $3,790,815
• 2018:  $3,442,698
• 2017:  $3,223,425
• 2016:  $2,746,151 (Stephen Mason, also a CEO received $6,299,799 in compensation)

For specific details on BHSI’s Executive Non-Qualified Defined Contribution Plan contributions, see the Form 990, Schedule J, Part III, Supplemental Information.

223 independent contractors received more than $100,000 in compensation. The five (5) most highly compensated were reported to be:

• $34.8 million:  Cerner, of Kansas City, MO for software support
• $ 5.5 million:  HKS, Inc., of Dallas, TX for architectural services
• $ 3.4 million:  Ernest and Young, LLP, of Atlanta, GA for consulting services
• $ 3.4 million:  3M Health Information Systems, of Dallas, TX for software support
• $ 3.0 million:  Pivot Technology Services, of Norcross, GA for software support

To read the IRS Form 999 (2020), click here.