Executive Compensation at Mercy Health (Wisconsin) 2021

Mercyhealth is a regional healthcare system with 7 hospitals (and a 7th to open in 2023) and about 85 facilities in 50 communities in southern Wisconsin and northern Illinois. Headquartered in Janesville, Wisconsin, Mercyhealth consists of many non-profit, tax-exempt organizations (9) and also owns several organizations that are taxed as corporations including Mercycare Insurance Company, Rockford Health Insurance (which is domiciled in Bermuda), and Mercycare HMO (which consolidated with Mercycare Insurance Company).

The entire Mercyhealth system (the largest employer in the area) has more than 8,000 employees compensated through the various non-profits and corporations. This post will list the most highly compensated employees as reported by Mercy Health System Corporation (MHSC) on the Form 990 (2020 for the year ending June 30, 2021) submitted to the IRS.  To find the most highly compensated employees at a specific hospital or related organization, see the corresponding Form 990.

MHSC is governed  by 8 voting members (directors) of the governing body (board of directors, 6 of whom are independent; 7 of the 8 directors (88%) are male while 1 (12%) is female.

In 2021, MHSC reported total revenue of $709 million, most of which was patient service revenue. Expenses totaled $627 million (including $27 million in depreciation) with compensation ($326 million) and medical supplies ($112 million) the two largest expenses. Net assets increased from $310 million at the beginning of the year to $400 million at year-end.

3,959 employees were compensated $326 million, which equates to an average compensation of $82,000.  516 employees received more than $100,000 in compensation. The 20 most highly compensated employees are:

• $12,132,146:  Javon R Bea, Director/President
• $ 2,184,802:  Shahid Shekhani, Physician
• $ 1,688,180:  Douglas H Bryan, Physician
• $ 1,502,459:  Yasmin Hussain, Physician
• $ 1,316,423:  David Nelsen, Physician
• $ 1,253,518:  Imdad Ahmed, Physician
• $   561,016:  Todd Anderson, VP/CFO (as of 5/20)
• $   531,113:  Mark L Goelzer, Director/Physician
• $   412,824:  E Patrick Cranley, VP
• $   410,240:  Joanna Bea Benning, VP
• $   409,348:  Ruth M Yarbrough, VP
• $   400,742:  Joel Prah, VP
• $   387,145:  Debra A Potempa, VP
• $   377,990:  Jennifer A Hallett, VP
• $   366,906:  Barbara J Bortner, VP
• $   329,158:  Shannon Dunphy-Alexander, Sr Exec Dir
• $   321,053:  Kimberly Scaccia, VP, Revenue Cycle  (as of 3/20)
• $   268,415:  Paul T Van Den Heuvel, Former VP (thru 4/20)
• $   259,178:  Thomas R Jensen, VP
• $   236,140:  Ladd Udy, VP

As illustrated above, the 20 most highly compensated employees received more than $25 million in compensation with nearly half going to Javon R Bea, the Director and President. Mr. Bea has received an estimated $50 million in compensation from 2017-2021:

Javon Bea:  Total Estimated Compensation 2017-2021: $50 million

• 2021:  $12,132,146
• 2020:  $11,000,000 (estimated)
• 2019:  $10,000,000 (estimated)
• 2018:  $ 9,363,980
• 2017:  $ 8,867,895

12 of the 20 (60%) are male while 8 of the 20 (40%) are female; 8 of the 10 most highly compensated employees are male while 2 are female (note: the Form 990 does not disclose gender identity; the determination was made based on the name and a google search).

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

• $3.1 million:  EPIC Systems Corp, of Verona, WI for software/system maintenance
• $3.5 million:  VJS Construction Services, of Pewaukee, WI for clinic expansion
• $3.1 million:  Lab Corp of America, of Burlington, NC for lab services
• $3.9 million:  Comphealth, of Dallas, TX for physician services
• $1.9 million:  Siemons Medical Solutions, of Palatine, IL for equipment maintenance contracts

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