Executive Compensation at Ascension Health (2021)

Ascension Health is the nation’s largest Catholic non-profit health system with 139 hospitals, 2,600 sites of care, and 39 senior living facilities in 19 states and the District of Columbia. The sole corporate member of Ascension Health is Ascension Health Alliance, a Missouri non-profit 501 (c) (3).  Consequently, there are two separate IRS Form 990’s that need to be viewed to gain an understanding of the executive compensation.  There are numerous other organizations within Ascension Health but those are not covered in this post.

Ascension Health Alliance

In 2021, Ascension Health Alliance reported total revenue of $4.2 billion (compared to $2.4 billion in 2020 and $2.3 billion in 2019) with the increase primarily attributable to investments income.  Net assets were $15.7 billion at the beginning of the year and increased to $22.3 billion at year-end primarily because of investment income ($2.2 billion), unrealized gains on investments ($2.5 billion), and pension and other post retirement adjustments ($1.6 billion).

Expenses totaled $1.8 billion with the 3 largest expenses reported to be compensation ($1.1 billion), fees for services ($270 million) and interest ($262 million).

7,725 employees were compensated $1.1 billion which equates to an average compensation of $150,000. However, only 1,477 employees received more than $100,000 in compensation which suggests that the most highly compensated received significantly higher compensation.  The 9 most highly compensated individuals  are listed below:

• $13,018,632:  Joseph R Impicciche, President and CEO
• $ 7,668,108:  Herbert J Vallier, EVP and CHRO
• $ 4,662,880:  Anthony J Speranzo, CEO, Chair Ascension Cap 
• $ 4,315,553:  Joseph G Cacchione, EVP, Clinical and Network Services
• $ 4,300,164 :  Karen Springer, EVP and CNE
• $ 4,191,213:  Craig Cordolo, EVP and COO
• $ 3,213,765:  Elizabeth Foshage, EVP and CFO
• $ 3,113,881:  Eduardo F Conrado, Former Board Member (end 6/18)
• $1,649,468:  Anthony R Tersigni, CFO, Pres and CEO Ascension Cap (start 7/19; end  6/19)

As illustrated above, the most highly compensated individuals are receiving exorbitant compensation packages (especially given the Catholic doctrine).  The 3 most highly compensated employees received nearly $55 million from 2019-2021:

Joseph Impicciche:  Total Compensation 2019-2021:  $22.5 million

• 2021:  $13,018,632
• 2020:  $ 7,251,194
• 2019:  $2,175,561

Herbert Vallier:  Total Compensation 2019-2021:  $13 million 

• 2021:  $ 7,668,108
• 2020:  $ 2,910,324
• 2019:  $ 2,205,073

Anthony Speranzo:  Total Compensation 2019-2021:  $19 million

• 2021:  $ 4,662,880
• 2020:  $10,946,473
• 2019:  $ 3,194,331

The IRS Form 990 for the year ending June 30, 2021 also reports Ascension Health Alliance paid for first class or charter travel and tax indemnification and gross-up payments. The Form 990, Schedule J, Part III, Supplemental Information does not provide any specific detail as to the extent of these expenses.

Ascension Health

In 2021, Ascension Health reported total revenue of $149 million (compared to $141 million in 2020) most of which came from service fees which appears to mean from related or affiliated organizations within Ascension Health.

Expenses totaled $141 million (including $7 million in depreciation) with the largest expenses reported to be compensation ($103 million) and fees for services ($14 million).

1,387 employees  received $103 million in compensation which equates to an average compensation of $74,000. 54 employees received more than $100,000 in compensation which again, suggests the most highly compensated employees received significantly more than the average.

The 11 most highly compensated individuals are listed below (note:  the names in bold were wholly or partially compensated by Ascension Health while the others were compensated in whole or part by Ascension Health Alliance or another related organization):

• $13,018,632:  Joseph R Impicciche, President and CEO
• $ 7,668,108:  Herbert J Vallier, Former Officer (end 5/2019)
• $ 3,213,765:  Elizabeth C Foshage, CFO
• $ 2,857,517:  Christine McCoy, Secretary
• $ 1,841,726:  Rhonda Anderson, Former Officer (end 6/2019)
• $   661,775:  Matthew A Jagger, Treasurer
• $   526,611:  Lynn Eschenbach, VP and CPO, Ascension Pharmacy Services
• $   397,769:  Carolyn Stover, Senior Director, Ascension Connect
• $   353,335:  Stacey L Junk, Senior Director, Ascension Connect
• $   267,134:  Patches R Pace, Sr Director, Ascension Connect
• $   265,827:  Mark Steiger, Sr Director, Ascension Connect

5 of the 11 individuals (45%) listed above are male while 6 of the 11 (55%) individuals are female. Of those who received compensation from Ascension Health (5 individuals), 2 (40%) are male while 3 (60%) are female.

Bottom Line and Notable Information

Ascension Health and Ascension Health Alliance are very profitable health care providers who also have managed to create and grow significant net fund assets (more than $22 billion).  The staff is very well compensated and those who left also received generous compensation packages.

To read the IRS Form 990 for the year ending June 30, 2021 for Ascension Health Alliance, click here.

To read the IRS Form 990 for the year ending June 30, 2021 for Ascension Health, click here.