Executive Compensation at Intermountain Healthcare (2021)

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 17 voting members (trustees) of the governing body (board of trustees) of IHC Health Services, Inc; 13 of whom are independent; 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 $8.9 billion in revenue in 2021 (compared to $7.1 billion in 2020, $7 billion in 2019 and $6.6 billion in 2018), most of which came from patient services, lab and pharmacy. The large increase in revenue is primarily due to more revenue from those three services.

Expenses were $7.5 billion (including $392 million in depreciation) which helped the organization (along with $681 million of net unrealized gains on investments and a $319 million adjustment to assets for post retirement benefit plans) to increase the general fund (or net fund assets) by $2.3 billion in 2021 from $8.9 billion at the beginning of the year to $11.2 billion at year-end.  It is important to note net assets have grown nearly $4 billion in the past two years because of (1) they have spent less than they raised; (2) unrealized gains on investments: and (3) adjustments to the post retirement benefit plans.

The two largest expenses were compensation ($3.7 billion) and medical supplies ($1.6 billion), followed by fees for services ($712 million) and office-related expenses ($370 million) and grants ($304 million, most of which was to IHC Community Foundation).

In 2021, IHC Health Services, Inc. employed 45,976 individuals who were compensated $3.7 billion, which equates to an average compensation of $80,000. 6,223 employees received more than $100,000 in compensation with the 25 most highly compensated employees listed below:

• $7,230,557:  A Marc Harrison, Trustee, President, CEO
• $3,369,720:  Robert W Allen, SVP, COO
• $3,447,530:  Albert R Zimmerli, EVP, CFO, Sec, Treasurer
• $2,369,601:  Mark R Briesacher, SVP
• $2,272,708:  Katherine Welkie, VP
• $2,134,444:  Dan Liljenquist, SVP
• $1,994,573:  Paul Krakovitz, Region President
• $1,692,118:  David L Flood, SVP
• $1,648,150:  Heather Brace, SVP
• $1,596,975:  Timothy Yeatman, Medical Director (partial year)
• $1,565,699:  Susan M Robel, SVP (partial year)
• $1,483,568:  Douglas J Hammer, SVP, General Counsel
• $1,487,900:  Kevan Mabbutt, SVP
• $1,447,494:  Gregory M Johnson, VP
• $1,426,010:  Casey Bachison, Surgery-Orthopedic
• $1,401,206:  Michael Phillips, Managing Director (partial year)
• $1,382,575:  Gregory Poulsen, SVP
• $1,364,037:  Greg J Matis, SVP, General Counsel (partial year)
• $1,343,448:  Mikelle Moore, SVP
• $1,168,836:  Clay Ashdown, VP (partial year)
• $1,028,943:  Ryan Smith, VP (partial year)
• $  951,333:  Jacqueline Millard, VP
• $  846,049:  Stacy Jennings, VP (partial year)
• $  573,240:  Todd E Craghead, former officer
• $  382,955:  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 25 most highly compensated employees received $46 million in compensation in 2021. 10 of the most highly compensated employees received $95 million in compensation from 2016-2021.

A Marc Harrison:  Total Compensation 2016-2021: $26 million

• 2021:  $7,230,557
• 2020:  $5,962,2297
• 2019:  $4,864,089
• 2018:  $4,165,311
• 2017:  $3,012,030
• 2016:  $  899,498

Albert Zimmerli:  Total Compensaton 2016-2021:  $19 million

• 2021:  $3,447,530
• 2020:  $3,559,640
• 2019:  $3,218,032
• 2018:  $3,887,829
• 2017:  $2,338,867
• 2016:  $2,749,420

Robert Allen:  Total Compensation 2016-2021:  $14 million

• 2021:  $3,369,720
• 2020:  $2,929,308
• 2019:  $2,360,259
• 2018:  $1,956,364
• 2017:  $1,524,669
• 2016:  $1,051,960

Mark Briesacher:  Total Compensation 2016-2021:  $11 million

• 2021:  $2,369,601
• 2020:  $2,214,766
• 2019:  $1,975,728
• 2018:  $1,729,437
• 2017:  $1,444,569
• 2016:  $  950,439

Katherine Welkie:  Total Compensation 2021: $2 million

• 2021:  $2,171,708

Paul Krakovitz:  Total Compensation 2021:  $2 million

• 2021:  $1,994,573

Heather Brace:  Total Compensation 2018-2021:  $4.5 million

• 2021:  $1,648,150
• 2020:  1,287,052
• 2019:  $  948,935
• 2018:  $  540,711

Timothy Yeatman:  Total Compensation 2019 and 2021:  $2.5 million

• 2021:  1,596,975
• 2020:  None Listed
• 2019:  $1,826,516

David Flood:  Total Compensation 2016-2021:  $7.5 million

• 2021:  $1,692,118
• 2020:  $1,710,783
• 2019:  $1,318,289
• 2018:  $1,098,073
• 2017:  $  905,922
• 2016:  $  847,582

Dan Liljenquist:  Total Compensation 2018-2021:  $6 million

• 2021:  $2,134,444
• 2020:  $1,703,783
• 2019:  $1,269,339
• 2018:  $  800,982

Richard Zimmerli received $337,817 in Supplemental Employer Retirement payments in 2021. Mr .Zimmerli also received $878,180 in his compensation listed above, as part of the third year of a five year deferred compensation plan.

Katherine Welkie received $$634,101 in Supplemental Employer Retirement payments in 2021.

Douglas Hammer received $660,602 in severance payments in 2021.

Jacqueline Millard received $561,725 in severance payments in 2021.

Timothy Yeatman received $872,972 in severance payments in 2021.

Michael Phillips received $582,000 in severance payments in 2021.

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.

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

• $207 million:  RI RCM Inc., of Chicago, IL for revenue cycle management
• $ 49 million:  Summit Physician Specialists, of Murray, UT for medical services
• $ 20 million:  Utah Radiology Associates, of Orem, UT for medical  services
• $ 16 million:  Associated Regional and Univ, of Salt Lake City, UT for medical services
• $ 14 million:  Southwest Emergency Physicians, of St George, UT for medical services

To read the IRS Form 990 (2021), click here.