Executive Compensation at CommonSpirit Health (2020)

Commonspirit Health was created in 2019 when Catholic Health Initiatives (CHI) and Dignity Health merged to become the largest tax-exempt, non-profit healthcare system in the United States. With more than 150,000 employees staffing 1,000 care centers and 140 hospitals in 21 states, Commonspirit Health, the healthcare system, is comprised of hundreds of non-profits. This post only addresses the executive compensation at Commonspirit Health (CH), the non-profit, 501 (c) (3) that oversees the entire CH healthcare system.

Based in Chicago, CH has 14 members (trustees) in its governing body, 12 of whom are independent; 9 (64%) of whom are male while 5 (36%) are female.  

CH reported total revenue of $2.4 billion in 2020  (compared to $2.5 billion in 2019), most of which came from “assessments” from related/affiliated organizations that all contributed to the parent organization for overall management.

Expenses totaled $3.2 billion (including $146 million in depreciation) which indicates the organization posted a loss of $800 million combined with a $100 million in net unrealized losses on investments to put CH in a negative $8 billion net asset position at year-end. Note: CH has $6 billion in assets (primarily loans and notes receivable, securities and cash, and other assets) and $14 billion in liabilities (primarily tax-exempt bonds, unsecured notes payable, and secured notes payable).

The $3.2 billion in expenses consisted primarily of 5 major category expenses:

• $686 million: Fees for Outside Services (primarily “program services” with no detail provided)
• $669 million: Group Benefits
• $421 million: Office, Insurance, Repairs
• $432 million: Compensation
• $330 million: Interest

2,844 employees received $432 million in compensation, which equates to an average compensation of $152,000. The most highly compensated employee was Lloyd Dean,, the CEO who received nearly $17 million in compensation. 839 employees received more than $100,000 in compensation with the 37 most highly compensated reported to be:

• $16,745,227:  Lloyd Dean, CEO*
• $ 5,606,564: Kevin Lofton, CEO
• $ 5,599,854:  Marvin O’Quinn, President and COO*
• $ 4,226,484:  Elizabeth Shih, SEVP, CAO*
• $ 3,711,706:  Daniel J Morissette, SEVP, CFO, Treasurer*
• $ 3,343,413:  Darryl Robinson, SEVP, Chief HR Officer*
• $ 3,276,342: Dean Swindle, Former Pres, Enter Bus Lines and CFO/Treas (through 2/7/19)
• $ 3,246,468:  Robert Wiebe, EVP, Chief Medical Officer*
• $ 3,099,301:  Charles P Francis, SEVP, Chief Strategy Officer*
• $ 2,666,863: Ketul Patel, SVP, Divisional Ops, CEO, CHI Franciscan Health
• $ 2,474,001:  Anthony Jones, System SEVP, Operations
• $ 2,375,403: Larry Schumacher, SVP of Operations
• $ 2,363,966:  Elizabeth I Keith, EVP, Sponsorship/Mission Integration*
• $ 2,317,857: Cliff Robertson, SVP, Divisional Ops, CEO, CHI Health
• $ 1,863,769:  Lisa Gamshad Zuckerman, System SVP Treasury and Strategic Integration*
• $ 1,831,154:  Cheryl Harelstad, System SVP, Supply Chain Management
• $ 1,749,573: Douglas Lawson, SVP, Divisional Ops, CEO, CHI St Luke’s Health
• $ 1,735,117: Patricia Webb, Chief Administrative Officer
• $ 1,687,372:  Jeffrey W Land, System SVP, National Real Estate*
• $ 1,678,725: Paul Edgett III, Chief Business Lines Officer
• $ 1,678,524: Mitch Melfi, Chief Legal Officer, Secretary
• $ 1,660,666: Jeffrey Drop, SVP and Division Executive Officer
• $ 1,612,663: Robert Weil, SVP and Chief Medical Officer (through 6/30/19)
• $ 1,563,536:  Frederick Meadors, Cardiovascular Surgeon, SE Division*
• $ 1,525,084:  Benjie W Loanzon, System SVP, Finance and Corporate*
• $ 1,511,070:  Frank Bauer, Cardiothoracic Surgeon, SE Division*
• $ 1,509,458: Thomas Kopfensteiner, Chief Mission Officer
• $ 1,493,219: Kathleen Sanford, Chief Nursing Officer
• $ 1,471,374:  Tammara Wilcox, System SVP Payer Strategy and Relation*
• $ 1,441,043:  Bruce Swartz, SVP, Physician Enterprise*
• $ 1,338,575:  Robert Ritz, CEO, MercyOne
• $ 1,285,479:  John Petersdorf, System SVP, Operational Finance*
• $ 1,166,632:  Michael Covert, Former SVP, Divisional Operations, MBO
• $ 1,005,872:  Elaine Lisko, SVP and General Counsel
• $   960,287:  Tanja Oquendo, System SVP, Transform – Integration*
• $  874,238:  Ruth Williams Brinkley, Former SVP/MBO Pres and CEO
• $   648,757: Joyce Ross, SVP, Communications, Asst Secretary (through 3/31/19)

“*” indicates all or a portion of compensation paid by Dignity Health, a related organization

The 37 most highly compensated employees received $95 million in compensation in 2020. 26 of the 37 (70%) most highly compensated employees are male while 11 (30%) are female. 9 of the 10 most highly compensated employees are male.

CH paid for first class or charter travel and made gross up payments or provided tax indemnifications. IFor specific information on these perks and the deferred compensation plan along with post-termination payments, see the Form 990, Schedule J, Part III, Supplemental Information.

183 independent contractors received more than $100,000 in compensation in 2020. The 5 most highly compensated were reported to be:

• $565 million: Conifer Health Solutions, of Frisco, TX for revenue cycle services
• $ 83 million: Deloitte Consulting, of New York, NY for consulting services
• $ 80 million: Performance Interiors, of Pittsburgh, PA for food services
• $ 47 million:  Unisys Corp, of Santa Clara, CA for IT Support Services
• $ 46 million: Cerner Corp, of Kansas City, MO for technology services

To read the IRS Form 990 (2019 for the year ending June 30, 2020), click here.