Executive Compensation at Intermountain Healthcare (2020)

Intermountain Healthcare refers to a large healthcare system (33 hospitals and nearly 400 clinics) based in Salt Lake City, Utah. Although there are  numerous organizations under the Intermountain Healthcare system, the primary entities include IHC Health Services, Inc. and the Intermountain Healthcare Foundation, Inc.  – both of whom operate out of the same office.

There are 16 voting members (trustees) of the governing body (board of trustees) of IHC Health Services, Inc; 14 of whom are independent. 17 are listed on the Form 990 (2020) of which 10 of the 17 (59%) are male while 7 of the 17 (41%) are female (note:  The Form 990 does not report gender identity. Conclusions were made based on name and google searches).

IHC Health Services, Inc. reported $7.1 billion in revenue in 2020 (compared to $7 billion in 2019 and $6.6 billion in 2018), most of which came from patient services, lab and pharmacy.

Expenses were $6.7 billion (including $389 million in depreciation) which helped the organization (along with $734 million of net unrealized gains on investments and a $162 million adjustment to assets for post retirement plans and return of capital) to increase the general fund (or net fund assets) by $1.3 billion in 2020 from $7.6 billion at the beginning of the year to $8.9 billion at year-end.

The two largest expenses were compensation ($3.3 billion) and medical supplies ($1.5 billion), followed by fees for services ($644 million) and office-related expenses ($297 million) and unpaid bills ($268 million).

In 2020, IHC Health Services, Inc. employed 43,441 individuals who were compensated $3.3 billion, which equates to an average compensation of $76,000. 6,135 employees received more than $100,000 in compensation with the 24 most highly compensated employees listed below:

• $5,962,297:  A Marc Harrison, Trustee, President, CEO
• $3,695,878:  Marcus F Probst, VP (partial year)
• $3,599,640:  Albert R Zimmerli, EVP, CFO, Sec, Treasurer
• $2,929,308:  Robert W Allen, SVP, COO
• $2,424,843:  Joe Mott, SVP, COO – Specialty Based Care
• $2,214,766:  Mark R Briesacher, SVP
• $1,710,430:  David L Flood, SVP
• $1,703,783:  Dan Liljenquist, SVP
• $1,520,459:  Douglas J Hammer, SVP, General Counsel
• $1,329,865:  Kevan Mabbutt, SVP
• $1,327,958:  Susan M Robel, SVP (partial year)
• $1,289,292:  Gregory M Johnson, VP
• $1,287,052:  Heather Brace, SVP
• $1,282,863:  Rafe Connors, Cardio-Surgery
• $1,273,871:  Jotham Manwaring, Neurosurgery
• $1,259,908:  Casey Bachison, Surgery-Orthopedic
• $1,240,603:  Berkeley Bate, Neurosurgery
• $1,206,804:  Mikelle Moore, SVP
• $1,177,648:  Jacqueline Millard, VP
• $1,030,269:  Gregory Poulsen, SVP
• $1,021,946:  Clay Ashdown, VP (partial year)
• $  583,284:  Todd E Craghead, former officer
• $  426,494:  Mark A Runyon, VP (partial year)
• $  384,063:  Charles W Sorenson, Jr., Former Officer

20 of the 24 (83%) most highly compensated employees are male while 4 of the 24 (17%) are female.  The 10 most highly compensated employees are male.

The 24 most highly compensated employees received $42 million in compensation in 2020. 10 of the most highly compensated employees received $88 million in compensation over the past 5 years:

A Marc Harrison:  Total Compensation 2016-2020: $19 million

• 2020:  $5,962,2297
• 2019:  $4,864,089
• 2018:  $4,165,311
• 2017:  $3,012,030
• 2016:  $  899,498

Marcus Probst:  Total Compensaton 2016-2020:  $10 million

• 2020:  $3,695,878
• 2019:  $1,624,144
• 2018:  $1,456,124
• 2017:  $1,316,502
• 2016:  $2,297,016

Albert Zimmerli:  Total Compensaton 2016-2020:  $15.5 million

• 2020:  $3,559,640
• 2019:  $3,218,032
• 2018:  $3,887,829
• 2017:  $2,338,867
• 2016:  $2,749,420

Robert Allen:  Total Compensation 2016-2020:  $10 million

• 2020:  $2,929,308
• 2019:  $2,360,259
• 2018:  $1,956,364
• 2017:  $1,524,669
• 2016:  $1,051,960

Joe Mott:  Total Compensation 2018 and 2020:  $6 million

• 2020:  $2,424,843
• 2019:  None Reported
• 2018:  $3,780,792

Mark Briesacher:  Total Compensation 2016-2020:  $8.5 million

• 2020:  $2,214,766
• 2019:  $1,975,728
• 2018:  $1,729,437
• 2017:  $1,444,569
• 2016:  $1,051,960

David Flood:  Total Compensation 2016-2020:  $6 million

• 2020:  $1,710,783
• 2019:  $1,318,289
• 2018:  $1,098,073
• 2017:  $  905,922
• 2016:  $  847,582

Dan Liljenquist:  Total Compensation 2018-2020:  $4 million

• 2020:  $1,703,783
• 2019:  $1,269,339
• 2018:  $  800,982

Douglas Hammer:  Total Compensation 2016-2020:  $6 million

• 2020:  $1,524,459
• 2019:  $1,348,765
• 2018:  $1,184,800
• 2017:  $1,000,624
• 2016:  $  973,998

Kevan Mabbott:  Total Compensation 2018-2020:  $3.5 million

• 2020:  $1,329,865
• 2019:  $1,120,953
• 2018:  $1,045,301

Richard Zimmerli received $289,425 in Supplemental Employer Retirement payments in 2020. Mr .Zimmerli also received $422,777 in his compensation listed above, as part of the third year of a five year deferred compensation plan.

Marcus Probst received $2,720,453 in Supplemental Employer Retirement payments in 2020.

IHC Health Services paid for first class travel, charter travel, and companion travel.  In addition, the organization paid for a residence for personal use/housing allowance, health or social club dues or initiation fees, and provided tax indemnifications and/or gross up payments. For more detailed information on these expenses, see Schedule J, Part III, Supplemental Information.

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

• $182 million:  RI RCM Inc., of Chicago, IL for revenue cycle management
• $ 46 million:  Summit Physician Specialists, of Murray, UT for medical services
• $ 20 million:  Utah Radiology Associates, of Orem, UT for medical  services
• $ 18 million:  Associated Regional and Univ, of Salt Lake City, UT for medical services
• $ 15 million:  WellPartner LLC, of Tualatin, OR for medical services

To read the IRS Form 990 (2020), click here.