Executive Compensation at the American Hospital Association (2021)

The American Hospital Association (AHA) is a trade organization that is a tax-exempt non-profit 501 (c) (6) that represents and works on behalf of its members (hospitals/owners of hospitals) to advocate their positions to government entities (i.e. Congress, Senate, etc) and provide education and assistance to its members.

In 2021, the AHA raised $129 million (compared to $120 million in 2020, $143 million in 2019 and  $134 million in 2018) primarily through membership dues, education and licensing) and spent $116 million  (not including $3 million in depreciation), with unspent revenue allocated to the fund balance.  With nearly $300 million in net fund assets, the organization reported about $34 million in unrealized gains on investments.

Based in Chicago, Illinois, the AHA has 426 employees who were compensated $71 million in 2021 which equates to an average compensation of $167,000.  However, only 209 employees received more than $100,000 in compensation which means a smaller amount of employees received significant higher compensation.  The 18 most highly compensated employees were compensated $15 million and were reported to be:

• $3,141,001:  Richard J Pollack, President and CEO
• $1,651,755:  M Michelle Hood, EVP, COO, Pres HF
• $1,128,775:  Thomas P Nickels, EVP Fed Relations
• $1,009,112:  Melinda R Hatton, SVP and General Counsel
• $  935,730:  Stacey L Hughes, EVP, Gov’t Relations and Public Policy (beg 1/21)
• $  807,648:   Ashley Thompson, SVP Public Policy
• $  729,839:  Douglas C Shaw, SPV, Field Engagement
• $  705,833:  Alicia N Mitchell, SVP, Communications
• $  607,944:  Christina Y Fisher, SVP CFO
• $  599,138:  Susan Gergely, AHA SVP, Chief HR Officer
• $  528,291:  Lisa Kidder Hrobsky, GVP Fed Relations-Adv Political Affairs
• $  475,907:  Susan M Solomon, Group VP, Deputy General Counsel
• $  454,052:  Robert I Sarkis, VP, Chief Information Officer
• $  454,051:  Gail M Lovinger, VP Secretary
• $  434,581:  Joy Lewis, SVP, Health Equity Ed IDHE
• $  408,014:  Jeanette Porter, AHA SVP, Field Engagement
• $  389,204:  Gloria J Kupferman, Chief Data Strategy Officer
• $  374,817:  Molly Smith, GVP, Public Policy

14 of the 18 (or 78%) most highly compensated employees are female while 4 of the 18 (or 22%) are male.

The most highly compensated employee, Richard J Pollack received more than $16 million over the past 5 years:

• 2021:  $3,141,001
• 2020:  $3,154,924
• 2019:  $4,695,594
• 2018:  $2,750,026
• 2017:  $2,503,597

The Form 990 (2021) also reports:

AHA paid for first class travel. Specifically, first class travel was made available to 3 board members, the CEO and 2 Executive Vice Presidents. Additionally, first class travel may be approved in cases of extenuating circumstances.

AHA paid for companion travel. Specifically, spousal travel was provided to the CEO.

AHA provided discretionary spending accounts. Specifically, stipends were made available to the Chairman, Immediate Past Chairman, and Chairman Elect of the Board. Taxable benefit allowances were made available to Senior Vice Presidents and above.  Taxable benefit allowances were made available to SVP’s and above

AHA maintained a supplemental non-qualified deferred compensation plan. The following contributions were made by the AHA to the plan for the following employees:

• $615,474:  Richard J Pollack
• $188,932:  M Michelle Hood
• $164,480:  Stacey L Hughes
• $107,602 :  Melinda R Hatton
• $ 87,538:  Thomas P Nickels
• $ 68,582 :  Ashley Thompson
• $ 67,286  :  Alicia N Mitchell
• $ 59,733 :  Douglas Shaw
• $ 47,500  :  Susan Gergely
• $ 43,705  :  Gail M Lovinger
• $ 39,361:  Joy Lewis
• $ 28,518:  Jeanette Porter
• $ 15,928:  Lisa Kidder Hrobsky

AHA made the following distributions from the supplemental non-qualified deferred compensation plan:

• $615,474:  Richard J Pollack
• $107,602:  Melinda Hatton
• $ 87,538:  Thomas P Nickels
• $ 43,705:  Gail Lovinger
• $ 42,755:  Douglas Shaw
• $ 72,674:  Ashley Thompson
• $ 65,912:  Alicia N Mitchell
• $ 73,631:  Christina Fisher
• $ 34,857:  Susan Gergely

Bottom Line

The AHA has nearly $300 million in net fund assets and generates about $120-$145 million annually primarily through membership fees, education fees, and licensing.  This tax exempt non-profit employs about 440 employees who are compensated on average $170,000, although only 209 employees received more than $100,000 in compensation. The 18 most highly compensated employees were compensated $15 million, ranging from just under $400,000 to more than $3.1 million. The perks to employees – first class travel, travel for companions, discretionary spending accounts, and the supplemental non-qualified deferred compensation plan are extremely generous for a trade organization.  Just one more reason why healthcare costs are so high.

To read the IRS Form (2021) for AHA, click here.