Executive Compensation at Bon Secours Mercy Health (2020)

Bon Secours Mercy Health (BSMH) became one of the largest Catholic healthcare providers serving communities in Ohio, Kentucky, New York, Pennsylvania, Maryland, Virginia, South Carolina, and Floria when merged with Mercy Health in September, 2018.

A tax-exempt, non-profit healthcare system that consists of dozens of related/affiliated organizations, BSMH reports the net patient revenue from 29 hospitals and other care facilities, and “corporate management fees” (nearly $400 million) to a related organization.

This post is limited to the executive compensation reported by BSMH.

BSMH reported total revenue of $7 billion in 2020 most of which was net patient revenue ($5.5 billion), “exempt function income” ($443 million), corporate management fees ($370 million), and government grants ($254 million).

Expenses in 2020 totaled $7 billion  (including $341 million in depreciation) with the two largest expenses reported to be compensation ($3.3 billion), medical supplies ($1 billion), and fees for services – no detail provided beyond classifying the fees as management, fundraising, and program ($1 billion).

73,865 employees received $3.3 billion in compensation which equates to an average compensation of $45,000.  4,482 employees received more than $100,000 in compensation with the 28 most highly compensated reported to be:

• $6,061,369:  John Starcher, Jr, President and CEO
• $2,928,217:  Brian Smith, EVP, COO
• $2,688,564:  Michael Bezney, Chief Legal Officer and Gen Counsel
• $2,447,405:  Deborah Bloomfield, CFO, Board Treasurer
• $2,013,417:  Wael Haidar, Chief Clinical Officer
• $2,006,480:  Brian White, President, Atlantic Group (end 6/20)
• $1,878,110:  Steven Fiser, Cardiologist
• $1,818,301:  Zoheir Abdelbaki, Cardiologist
• $1,818,068:  David A Cannady, Chief Strategic Officer
• $1,626,178:  Joseph Martin, Bariatric Surgeon
• $1,585,520:  Samuel Ross, Chief Community Health Officer
• $1,519,347:  Joseph Gage, Jr., SVP, Chief HR Officer
• $1,517,159:  Manish Patel, Orthopedic Surgeon
• $1,422,421:  Laishy Williams-Carlson, Chief Information Officer
• $1,414,263:  Staci Lucius, President, BSMH Medical Group (be 1/20)
• $1,409,043:  Mark Nantz, Chief Administrative Officer
• $1,384,854:  Jeffrey Oak, Chief Enterprise Risk Officer
• $1,190,682:  Andrea Mazzoccoli, Chief Nursing Officer
• $1,120,376:  Jerome Judd, VP, Treasurer
• $  990,051:  Marion Priest, Former Key Employee – EVP, CMO
• $  954,084:  Fr Joseph Cardone, Chief Mission Officer
• $  847,505:  Timothy Davis, Former Key Employee – EVP-CHRAO
• $  844,565:  Janice Burnett, Former Officer – Treasurer, CFO
• $  835,379:  Daniel Hurry, Chief Supply Chain Officer (beg 1/20)
• $  772,042:  Matthew Toddy, Former Key Employee, EVP, Legal Affairs
• $  769,721:  Jason Siegert, Chief Transformation Officer (beg 11/20)
• $  639,692:  Donna Abbondandolo, Chief Compliance Officer (beg 4/2020
• $  382,289:  Christine Lay, Secretary

The 28 most highly compensated employees received $44 million in 2020 with the most highly compensated employee being John Starcher, the President and CEO who received more than $6 million.  10 of the most highly compensated employees received $88 million from 2017-2020:

John Starcher:  Total Compensation 2017-2020:  $31 million

• 2020:  $ 6,061,369
• 2019: $15,773,699
• 2018:  $ 3,255,988
• 2017:  $ 5,580,929

Brian Smith:  Total Compensation 2017-2020:  $10 million

• 2020:  $2,928,217
• 2019:  $3,318,912
• 2018:  $1,646,569
• 2017:  $2,444,359

Michael Bezney:  Total Compensation 2017-2020:  $8 million

• 2020:  $2,688,564
• 2019:  $2,816,183
• 2018:  $1,230,387
• 2017:  $1,672,624:

Deborah Bloomfield:  Total Compensation 2017-2020:  $8.5 million

• 2020:  $2,447,405
• 2019:  $2,698,484
• 2018:  $1,366,053
• 2017:  $1,964,692

Brian White:  Total Compensation 2017-2020:  $9 million 

• 2020:  $4,006,480
• 2019:  $2,461,501
• 2018:  $1,262,559
• 2017:  $1,757,479

Steven Fiser: Total Compensation 2020:  $2 million

• 2020:  $1,878,110

Wael Haider: Total Compensation 2018-2020: $6 million

• 2020: $2,013,417
• 2019: $1,966,744
• 2018:  $1,935,719
• 2017:  None Listed

Zoheir Abdelbaki: Total Compensation 2017-2020:  $7 million

• 2020;  $1,818,301
• 2019:  $1,884,812
• 2018:  $1,531,424
• 2017:  $1,815,374

David Cannady: Total Compensation 2018-2020:  $5 million

• 2020: $1,818,068
• 2019:  $1,651,305
• 2018:  $1,245,415

Joseph Martin Total Compensation 2020:  $1.5 million

• 2020: $1,626,178

As illustrated above, 9 of the 10 most highly compensated employees are male while 1 is female. 20 of the 28 (71%) most highly compensated employees are male while 8 of the 28 (29%) are female.

BSMHI paid for first class or charter travel, travel for companions, personal services (i.e. maid chauffeur, chef) and housing allowances or residence for personal use.  For more information on these expenses and contributions to non qualified supplemental retirements and deferred compensation plans, see the Form 990, Schedule J, Supplemental Information.

2,672 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

• $521 million:  Cardinal Health, of Chicago, IL for medical products and services
• $410 million:  Ensemble RCM LLC, of Huntersville, NC for revenue cycle services
• $286 million:  Medline Industries, of Pittsburgh, PA for medical products and services
• $ 69 million:  Zones Inc, of Seattle, WA for medical technology
• $ 54 million:  Medtronic, of Chicago, IL for medical technology

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