Executive Compensation at Memorial Hermann Health (2021)

Memorial Hermann Health System (MHHS) is a Houston-based tax-exempt, non-profit healthcare provider with more than 30,000 employees and 6,000 physicians that serve in 17 hospitals (14 that the organization owns and 3 in which they have joint ventures) and 300 care delivery sites in the Houston, Texas metropolitan area.

MHHS consists of many organizations (non-profits, corporations, trusts, and partnerships) but for the purpose of this post, the executive compensation reported on MHHS – a 501 (c) (3) – is addressed.

Key financial information on MHHS, as reported on the Form 990 (2020 for the year ending June 30, 2021) include:

1. There are 23  members (directors) in the governing body (Board of Directors), 21 of whom are independent, although there are 29 listed on the Form 990, Part VII (due to timing differences).  24 of the 29 (83%) directors are male while 5 of the 29 (17%) are female.
2. Total revenue was $6.8 billion (compared to $5.6 billion in 2020, $5.4 billion in 2019 and $4.8 billion in 2018) most of which came from patient services (net):  $6.1 billion.
3. Expenses totaled $5.9 billion (including $329 million in depreciation) with the five largest expenses reported to be:  compensation ($2.7 billion), fees for services ($1.2 billion), medical supplies ($1 billion), office-related expenses ($362 million), and equipment rental and maintenance ($182 million).
4. Net assets increased from $4.1 billion to $4.7 billion from 2018 to 2019 and from $4.7 billion to $5.1 billion from 2019 to 2020, and $5.1 billion to $6.8 billion from 2020 to 2021, due primarily to spending less than received, net unrealizable gains on investments, and adjustments to assets (primarily changes in pension obligations).

30,198 employees received $2.7 billion in compensation, which equates to an average compensation of $89,000.  4,552 employees received more than $100,000 in compensation with the 32 most highly compensated reported to be:

• $3,692,569:  Charles D Stokes, CEO, President
• $2,642,628:  David Callender, CEO/President 9/1 to Present
• $2,633,996:  Erin S Asprec, EVP, Acute Care Services/CTO
• $2,433,848:  Deborah Gordon, EVP, CAO, CLO, Secretary
• $1,990,730:  James McCarthy, EVP, CPE
• $1,528,228:  Brian Dean, EVP, CFO, Treasurer
• $1,358,489:  Lori P Knowles, SVP, CHRO
• $1,310,281:  Amanda Hammel, SVP, CIO
• $1,238,918:  Gregory L Haralson, SVP, CEO-SW/SL
• $1,216,612:  Joshua Urban, SVP, CEO-NE/TW
• $1,123,485:  Christopher M Halaska, SVP, CIO
• $1,117,090:  Paul C O’Sullivan, SVP, CEO-Memorial City
• $1,089,895:  Kyle Price, SVO, CEO-SE/PL/Heartvas
• $1,086,159:  Angela Shippy, SVP, CQO
• $1,050,419:  Feby Abraham, EVP, CSO
• $1,040,392:  Heath Rushing, SVP, SRVC Lines
• $1,033,581:  Anne Neeson, EVP, Foundation
• $  879,616:  Malisha S Patel, SVP/CEO-SW&SL
• $  862,430:  Kristel Poffinbarger, VP/CMO-SW&SL
• $  861,478:  Bryan Lee, VP/TMC
• $  816,488:  Jeffrey Katz, VP/CMO-TMC
• $  779,864:  Rebecca A Tucker, VP, SW&SL
• $  776,019:  Anne Pearson, SVP/CEO-PhyofMH
• $  753,945:  Cynthia De Moya, CFO 7/1 – 9/30
• $  753,829 :  Susan Distefano, SVP, CEO-Children’s Hospital (7/1-9/1)
• $  690,638:  Jerry A Ashworth, SVP, CEO-CY&KT
• $  641,166:  Justin P Kendrick, SVP, CEO-NE&TW
• $  621,180:  Eric Smith, SVP, CDO
• $  611,859:  Warren Shea, VP, Asst Secretary
• $  499,860:  Alexander Greengold, SVP,CEO
• $  375,813:  Alec King, EVP, CFO, Treasurer (10/2-6/30)
• $  307,163:  Obiefuna Chikelue, VP/CIO 8/15-6/30

The 32 most highly compensated employees received $38 million in compensation.  18 of the 32 (56%) most highly compensated employees are male while 14 of the 32 (44%) are female.

The 10 most highly compensated employees received $46 million in compensation from 2019-2021:

Charles D Stokes:  Total Compensation 2019-2021:  $10 million

• 2021:  $3,692,550
• 2020:  $3,587,445
• 2019:  $2,825,968

David Callender:  Total Compensation 2020-2021:  $3.5 million

• 2021:  $2,642,628
• 2020:  $  699,625
• 2019:  None Listed

Erin S Asprec:  Total Compensaton 2019-2021:  $6.5 million

• 2021:  $2,633,996
• 2020:  $1,708,435
• 2019:  $2,204,477

Deborah Gordon:  Total Compensation 2019-2021:  $5 million

• 2021:  $2,433,848
• 2020:  $1,486,246
• 2019;  $1,288,251

James McCarthy:  Total Compensation 2019-2021:  $4 million

• 2021:  $1,990,730
• 2020:  $1,281,658
• 2019:  $  757,633

Brian Dean:  Total Compensation 2019-2021:  $4.5 million

• 2021:  $1,528,228
• 2020:  $1,561,489
• 2019:  $1,456,626

Lori P Knowles:  Total Compensation 2020-2021: $2.5 million

• 2021:  $1,358,489
• 2020:  $  910,508
• 2019:  None Listed

Amanda Hammel:  Total Compensation 2019-2021:  $3 million

• 2021:  $1,310,281
• 2020:  $  875,241
• 2019:  $  627,972

Gregory L Haralson:  Total Compensation 2019-20221:  $3.5 million

• 2021:  $1,238,918
• 2020:  $1,137,381
• 2019:  $  896,257

Joshua Urban:  Total Compensation 2019-2021:  $3 million

• 2021:  $1,216,612
• 2020:  $1,094,902
• 2019:  $  974,469

To read about contributions to the non-qualified supplemental retirement plan, see Schedule J, Part III, Supplemental Information on the Form 990.

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

• $65 million:  Austin Commercial, of Dallas, TX for construction
• $39 million:  Quest Diagnostics Clinical, of Secaucus, NJ for contract services
• $27 million:  JT Vaughn Construction, of Houston, TX for contractor
• $31  million:  Crothall Healthcare, of Chicago, IL for housekeeping
• $25 million:  Ninth Wonder, of Houston, TX for media services

To read the IRS Form 990 (2020 for the year ending June 30, 2021), click here.