Executive Compensation at Providence St Joseph (2019)

In 2016, Providence Health & Services (PH&S) and St. Joseph Health System (SJHS) merged to form the Providence St. Joseph Health system, a non-profit, tax-exempt integrated healthcare provider associated with the Catholic Church. With 52 hospitals and 950 clinics staffed by 120,000 employees across seven western states (Washington, Oregon, Montana, New Mexico, California, Texas, and Alaska), the Providence St Joseph Health system asserts “we use our voice to advocate for vulnerable populations and needed reforms in healthcare.”

Based in Renton, Washington, the Providence St. Joseph Health System encompasses dozens of non-profit, tax-exempt organizations controlled by a related or affiliated organization, taxable partnerships, and organizations taxable as corporations or trusts. But, the sheer size and number of organizations that make up the system makes it difficult to get a grasp of the total organization and employee compensation.  This post addresses the executive compensation at Providence St. Joseph Health (PSJH) – the “executive” organization that oversees the system (although it is important to note PSJH is the sole member of Providence Health & Services (PH&S) and St. Joseph Health System (SJHS – the two systems that merged)). To summarize:

• PSJH:  Providence St Joseph Health:  the executive organization that overseas the whole system when PH&S and SJHS merged
• PH&S:  Providence Health & Services:  the health system that merged with St Joseph Health System (SJHS)
• SJHS:  St Joseph Health System:  the health system that merged with Providence Health & Services (PH&S)

There are 16 voting members (directors) of the governing body, 15 of whom are independent.  8 of the directors are male while 8 are female.

PSJH has 17 employees and is funded by other organizations in the system that benefit from their oversight. In their own words “The senior executives of PSJH control and manage  each supported organization by providing overall senior management and coordination for the PSJH system.

In 2019, PSJH reported total revenue of $33 million, which primarily came from related organizations who provided “management fees” to the organization.  Expenses totaled $32 million, $27 million of which was spent on compensation with the remaining revenue spent primarily on taxes and licenses.

17 employees received $27 million in compensation, although 10 of the directors of received between $23,000 – $65,000 each for their services from a related organization (not named). The compensation for the 17 most highly compensated employees (along with 2 employees compensated from a related org) were reported to be:

• $10,914,842:  Rod Hochman, President/CEO
• $ 4,018,923:  Mike Butler, President
• $ 2,557,624:  Debra Canales, EVP/CAO
• $ 2,202,103:  BJ Moore, EVP/Chief Investment Officer
• $ 2,082,242:  Cindy Strauss, Secretary
• $ 2,163,292:  Rhonda Medows, EVP/Chief Pop Heath Officer
• $ 1,950,290:  Amy Compton-Phillips, EVP/Chief Clinical Officer
• $1,920,294:  Venkat Bhamidipati, EVP/Treasurer
• $ 1,559,647:  Lisa Vance, EVP, Regional CE OR
• $ 1,496,585:  Aaron Martin, EVP/Chief Digital Innov Officer
• $ 1,406,734:  Jo Ann Escasa-Haigh, EVP/Asst Treasurer
• $ 1,141,477:  John Whipple, Ass’t Secretary (compensated by a related org)
• $ 1,060,937:  Orest Holubec, SVP/Chief Comm/Ext Affairs Officer
• $  981,304:  Jim Watson, Asst Secretary (compensated by a related org)
• $  956,811:  CarlaDenise Edwards, Chief Strategy Officer
• $  829,005:  Richard Afable, EVP, PSJH So CA region
• $  789,462:  Dougal Hewitt, EVP Chief Mission Officer PSJH
• $  593,371:  Shannon Dwyer, EVP/General Counsel
• $  292,734:  Donald Anderson, Jr., Ass’t Secretary for Enrollment (compensated by a related org)

9 of the 17 employees of PHJH are male while 8 are female. Of the 10 most highly compensated employees, 5 are female while 5 are male.

The two most highly compensated employees were Rod Hochman, the President and CEO, and Mike Butler, the President.  Over the past 4 years, these two employees received $60 million in compensation.

Rod Hochman

• 2019:  $10,914,842
• 2018:  $10,835,421
• 2017:  $11,583,060
• 2016:  $4,104,464

Mike Butler

• 2019:  $4,018,923
• 2018:  $5,551,827
• 2017:  $4,624,609
• 2016:  $7,256,326

PHJH paid for first class or charter travel, personal services (i.e. maid, chauffeur, chef) and provided discretionary spending accounts, gross up payments or provided tax indemnifications.  For details on the expenses and the retirement plans, see the Form 990, Schedule J, Part III, Supplemental Information.

Richard Afable received $829,005 in severance payments in 2019.

Shannon Dwyer received $573,310 in severance payments in 2019.

To read the IRS Form 990 (2019) for PHJH, click here.