Executive Compensation at Shriners Hospitals (2020)

Shriners Hospitals for Children is a network of 22 hospitals that provide specialized pediatric care (orthopaedic, burn, spinal cord, and palate) for children under the age of 18. According to the Shriners website, 20 out of the 22 hospitals are located in the United States and file IRS Form 990’s under two corporations:

• The Shriners Hospitals for Children (for 18 of the hospitals in the US) – a Colorado corporation based in Tampa, Florida; and
• The Shriners Hospitals for Children (for 2 of the hospitals in Massachusetts) – a Massachusetts corporation based in Tampa, Florida.

The Shriners Hospitals for Children – Colorado (SHC – CO) and the Shriners Hospitals for Children – Massachusetts (SHC – MA) raised $955 million and reported total expenses of about $902 million (not including depreciation) in 2020, allocating unspent revenue to the general fund.   The collective net assets of the organizations were $10.3 billion at year-end, noting that these assets provide significant income to the organizations.

The largest expense for both organization is compensation for the employees.

SHC – CO paid $444 million in compensation to 5,617 employees, which equates to an average compensation of $79,000.  907 employees received more than $100,000 in compensation. The 6 most highly compensated employees were reported to be:

• $2,692,183:  Craig Ono, Orthopedic Surgeon 
• $1,138,714:  Eileen Csontos, Asesthesiolosist
• $1,078,526:  Michelle James, Chief of Staff
• $  890,303:  Allison Scott, Orthopedic Surgeon
• $  887,412:  Scott Kozin, Chief of Staff
• $  725,314:  John McCabe, EVP

3 of the 6 (50%) most highly compensated employees are male while 3 of the 6 are female.  Interestingly, SHC – CO has a board composition of 20 board members/trustees, 17 of whom are independent although 22 are listed on the Form 990 (due to timing differences). All board members/trustees are male.

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

• $10.5 million:  Forney Construction, of Houston, TX for construction
• $ 9.8 million:  UC Regents at UC Davis, in Davis, CA, for medical services
• $ 7.5 million:  The University of Texas Medical Branch A, in Galveston, TX, for medical services
• $ 5.5 million:  Burns and Associates Management, in St Louis, MO, for marketing
• $ 3.9 million:  Kentucky Medical Services Foundation, in Lexington, KY, for medical services

SHC – MA paid $35 million in compensation to 536 employees, which equates to an average compensation of $65,000.  73 employees received more than $100,000 in compensation. The 5 most highly compensated employees were reported to be:

• $776,097:  James Mooney, Chief of Staff
• $461,833:  Rubini Pathy, Orthopedic Surgeon
• $411,969:  Ahmad Bayomy, Orthopedic Surgeon
• $322,459:  Kerstin Sobus, Psychiatrist
• $313,306:  H. Lee Kirk, Administrator

4 of the 5 (80%) of the most highly compensated employees are male while 1 of the 5 (20%) is female. SHC – MA is overseen by a board with 21 members, 18 of whom are independent.  All trustees are male.

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

• $6.2 million:  The General Hospital Corp, of Boston, MA, for outside patient services
• $0.7 million:  Springfield Anesthesia Services, of Springfield, MA for anesthesia services
• $0.4 million:  Dr Edward Bittner, of Boston, MA for medical services
• $0.4 million:  Universal Protection Service, of Santa Ana, CA for security
• $0.3 million:  Burns and Associates, of St Louis, MO for marketing

SHC – CO and SHC – MA paid for first class flights for board members and executive staff whose flights are more than 2.5 hours long. Companion travel is provided for board members whose companion is participating in Shriners business. And, temporary housing allowances were provided for recruited individuals when relocation was required.

To read the IRS Form 990 (2020) for SHC – CO, click here.

To read the IRS Form 990 (2020) for SHC – MA, click here.