Executive Compensation at Dignity Health (2020)

Dignity Health is part of the CommonSpirit Health System (In 2019, Dignity Health merged with Catholic Health Initiatives (CHI) to become one of the largest tax-exempt, non-profit healthcare systems in the United States). With more than 60,000 employees staffing 400 care centers and 39 hospitals in 22 states, Dignity Health is based in San Francisco, CA (whereas CommonSpirit Health is based in Chicago, IL). Although Dignity Health has numerous related/affiliated non-profits, taxable corporations and trusts, this post is limited to addressing the executive compensation of Dignity Health, an affiliate of CommonSpirit Health.

In 2020, Dignity Health reported total revenue of $8.8 billion (compared to $9.9 billion in 2019) with most revenue coming from patient income net of charity ($4.7 billion), medicare/medicaid ($2.8 billion), management services ($457 million), and investment income and gain on the sale of assets ($238 million). Expenses totaled $8.6 billion (including $443 million in depreciation) with the largest expenses reported to be:

• $4.3 billion:  Compensation
• $1.2 billion:  Fees to Outside Vendors (primarily program and management with no detail provided)
• $1.1 billion:  Medical Supplies
• $465 million:  Office-Related Expenses
• $410 million:  Med Cal/Med Prov Fees
• $337 million:  Grants
• $213 million:  Interest

44,153 employees received $4.3 billion in compensation, which equates to an average compensation of $97,000.  12,981 employees received more than $100,000 in compensation with the 36 most highly compensated reported to be:

• $16,745,227:  Lloyd Dean, CEO
• $ 7,812,794:  Rick Grossman, EVP, General Counsel (thru 6/30/19)
• $ 5,606,564:  Kevin E Lofton, Former CEO (thru 6/30/20)*
• $ 5,599,854:  Marvin O’Quinn, President and COO
• $ 4,226,484:  Elizabeth Shih, SEVP, CAO
• $ 3,892,880:  Deanna Wise, Former Key Employee (thru 12/31/18)
• $ 3,711,706:  Daniel J Morissette, Treasurer, SEVP CFO
• $ 3,343,413:  Darryl Robinson, SEVP, Chief HR Officer
• $ 3,329,345:  Laurie Harting, SVP, Operations & CEO Greater Sacrame
• $ 3,246,468:  Robert Wiebe, EVP, Chief Medical Officer
• $ 3,099,301:  Charles P Francis, SEVP, Chief Strategy Officer
• $ 2,676,981:  Mary Connick, SVP, Finance Corporate Controller
• $ 2,363,966:  Elizabeth I Keith, EVP, Sponsorship/Mission Integration
• $ 2,224,329:  Charles Cova, SVP, Operations and CEO, CA Central Coast
• $ 2,157,949:  Linda Hunt, SVP, Operations and CEO, Arizona Division
• $ 1,910,312:  Keith Callahan, SVP, Supplies and Services Resources Management
• $ 1,905,771:  Julie Sprengel, SVP, Operations & CEO, Nevada/Southern
• $ 1,863,769:  Lisa Gamshad Zuckerman, System SVP Treasury and Strategic Inve
• $ 1,765,923:  Jon Vanboening, SVP, Operations & CEO, Central California
• $ 1,735,117:  Patricia Webb, SEVP, CAO*
• $ 1,687,372:  Jeffrey W Land, System SVP National Real Estate Serv
• $ 1,680,717:  Todd A Strumwasser, SVP, Operations & CEO Northern California
• $ 1,678,725:  Paul Edgett, III, Chief Business Lines Officer*
• $ 1,678,524:  Mitch Melfi, Secretary, Chief Legal Officer*
• $ 1,579,939:  Timothy Panks, SVP, Finance & Revenue Cycle Management
• $ 1,539,763:  Anthony Scott Carswell, System SVP Market Strategy and Development
• $ 1,525,084:  Benjie Loanzon, System SVP, Finance & Corporate Con
• $ 1,509,458:  Thomas Koppensteiner, Chief Mission Officer*
• $ 1,493,219:  Kathleen Sanford, Chief Nursing Officer*
• $ 1,441,043:  Bruce Swartz, SVP, Physicians Enterprise
• $ 1,471,374:  Tammara Wilcox, System SVP Payer Strategy & Relations
• $ 1,420,226:  Julia N Bietsch, Market VP – PE Network Development
• $ 1,280,762:  Page E West, Chief Nurse Executive (thru 1/18/19)
• $  918,456:  Ian Boase, Former Officer (thru 1/31/19)
• $  721,352:  Mark Korth, Former Key Employee (thru 6/4/19)
• $  503,381:  Karl Silberstein, Former Key Employee (thru 1/11/19)

A “*” indicates compensation was paid by a related organization.

The 36 employees listed above received more than $100 million in 2020. 23 of the 36 (64%) are male while 13 of the 36 (36%) are female. 7 of the 10 most highly compensated employees are male including the CEO, Lloyd Dean who received nearly $17 million in compensation, and the former CEO, Kevin Lofton who received nearly $6 million.

Dignity Health paid for first class or charter travel and made gross up payments or provided tax indemnification in addition to club dues for business purposes and security services including vehicle and driver. For information on these expenses, severance payments, post employment separation payments, and the non qualified supplemental benefit plan and the deferred compensation plan, see the Form 990, Schedule J, Part III, Supplemental Information.

1,075 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $426 million:  Optum360 LLC, of Eden Prairie, MN for revenue cycle services
• $114 million:  Trimedx LLC, of Indianapolis, IN for maintenance services
• $113 million:  Medical Solutions, of Omaha, NE for staffing services
• $ 70 million:  Cerner Corp, of Kansas City, MO for technology services
• $ 67 million:  JE Dunn Construction Co, of Kansas City, MO for contracting services

At the beginning of the year, Dignity Health had $5.1 million in net assets. After adjusting for unspent revenue ($200 million), an unrealized loss on investments ($100 million), and a $1 billion negative adjustment to net assets to account for pension liability, Dignity Health’s net assets were $4.2 billion at year-end.

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