Executive Compensation at Bon Secours Mercy Health (2021)

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 $7.6 billion in 2021 (compared to $7 billion in 2020) most of which was net patient revenue ($6.2 billion), “exempt function income” ($355 million), “market assessments and corporate management fees ($451 million), and investment income and gains ($311 million).

Expenses in 2021 totaled $7.6 billion  (including $312 million in depreciation) with the two largest expenses reported to be compensation ($3.6 billion), medical supplies ($1.1 billion), and fees for services – no detail provided beyond classifying the fees as management, fundraising, and program ($1 billion).

63,853 employees (10,000 less than in 2020 when 73,865 employees received $3.3 billion in compensation) received  $3.6 billion in compensation which equates to an average compensation of $56,000.  4,812 employees received more than $100,000 in compensation with the 28 most highly compensated reported to be:

• $6,210,476:  John Starcher, Jr, President and CEO
• $2,841,291:  Brian Smith, EVP, COO
• $2,564,447:  Deborah Bloomfield, CFO, Board Treasurer
• $2,584,948:  Manish Patel, Orthopedic Surgeon
• $2,130,574:  Michael Bezney, Chief Legal Officer and Gen Counsel
• $2,028,296:  Wael Haidar, Chief Clinical Officer
• $1,987,692:  Steven Fiser, Cardiologist
• $1,981,305:  Sameh Arebi, Orthopedic Surgeon
• $1,936,835:  Zoheir Abdelbaki, Cardiologist
• $1,845,143:  David A Cannady, Chief Strategic Officer
• $1,786,526:  Luis Jauregui, Infectious Disease, Internal Medicine
• $1,501,237:  Joseph Gage, Jr., SVP, Chief HR Officer
• $1,231,783:  Staci Lucius, President, BSMH Medical Group (beg 1/2020)
• $1,205,135:  Samuel Ross, Chief Community Health Officer
• $1,080,548:  Jerome Judd, VP, Treasurer
• $1,002,661:  Jason Szczuka, Chief Digital Officer (beg 6/2021)
• $1,000,718:  Andrea Mazzoccoli, Chief Nursing Officer
• $  953,507:  Jason Siegert, Former Chief Transformation Officer (beg 11/20; end 2021)
• $  900,297:  Matthew Eversole, Chief Information Officer (beg 1/2021)
• $  832,040:  Daniel Hurry, Chief Supply Chain Officer (beg 1/2020)*
• $  570,436:  Fr Joseph Cardone, Chief Mission Officer
• $  569,281:  Jeffrey Oak, Chief Enterprise Risk Officer
• $  564,848:  Laishy Williams-Carlson, Former Chief Information Officer (end 1/2021)
• $  561,868:  Mark Nantz, Former Chief Administrative Officer
• $  480,694:  Donna Abbondandolo, Chief Compliance Officer (beg 4/2020)

The 28 most highly compensated employees received $44 million in 2021 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 more than $100 million from 2017-2021:

John Starcher:  Total Compensation 2017-2021:  $37 million

• 2021:  $ 6,210,476
• 2020:  $ 6,061,369
• 2019: $15,773,699
• 2018:  $ 3,255,988
• 2017:  $ 5,580,929

Brian Smith:  Total Compensation 2017-2021:  $13 million

• 2021:  $2,841,291
• 2020:  $2,928,217
• 2019:  $3,318,912
• 2018:  $1,646,569
• 2017:  $2,444,359

Michael Bezney:  Total Compensation 2017-2021:  $10.5 million

• 2021:  $2,130,574
• 2020:  $2,688,564
• 2019:  $2,816,183
• 2018:  $1,230,387
• 2017:  $1,672,624:

Deborah Bloomfield:  Total Compensation 2017-2021:  $11 million

• 2021:  $2,564,447
• 2020:  $2,447,405
• 2019:  $2,698,484
• 2018:  $1,366,053
• 2017:  $1,964,692

Steven Fiser: Total Compensation 2020-2021:  $4 million

• 2021:   $1,987,692
• 2020:  $1,878,110

Wael Haider: Total Compensation 2018-2021: $8 million

• 2021: $2,028,296
• 2020: $2,013,417
• 2019: $1,966,744
• 2018:  $1,935,719
• 2017:  None Listed

Sameh Arebi, Orthopedic Surgeon:  Total Compensation 2021:  $2 million

• 2021:   $1,981,305

Zoheir Abdelbaki: Total Compensation 2018-2021:  $9 million

• 2021:  $1,936,835
• 2020;  $1,818,301
• 2019:  $1,884,812
• 2018:  $1,531,424
• 2017:  $1,815,374

David Cannady: Total Compensation 2018-2021:  $6.5 million

• 2021: $1,845,143
• 2020: $1,818,068
• 2019:  $1,651,305
• 2018:  $1,245,415

Manish Patel:  Total Compensation 2020-2021:  $4 million

• 2021:  $2,584,948
• 2020:  $1,517,159

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.

2,087 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

• $617 million:  Cardinal Health, of Chicago, IL for medical products and services
• $325 million:  Ensemble RCM LLC, of Huntersville, NC for revenue cycle services
• $279 million:  Medline Industries, of Pittsburgh, PA for medical products and services
• $ 85 million:  US Bank Corporate Trust, of St Paul, MN for financial services
• $ 80  million:  Medtronic, of Chicago, IL for medical technology

At year-end 2021, BSMH had $4.7 billion in net assets, compared to $3.9 billion at year-end 2020.  The nearly $800 million improvement is attributable to net unrealized gains on investments ($419 million), unspent revenue in 2021 ($74 million), and adjustments to net assets ($244 million).

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