Executive Compensation at Providence Health and Services (WA) 2020

Providence Health and Services – Washington (PH&S) is part of the Providence St Joseph Health (PSJH), a non-profit, tax-exempt integrated healthcare provider associated with the Catholic Church. With 51 hospitals and nearly 1,000 clinics staffed by 117,000 employees across seven western states (Washington, Oregon, Montana, New Mexico, California, Texas, and Alaska), the Providence St Joseph Health system came to be when PH&S merged with Providence St. Joseph Health (PSJH), in 2016. (note: PSJH – the overall executive management arm – is the sole member of PH&S).

PH&S is headquartered in Renton, Washington, has about 38,800 employees (2020), and reported total revenue of $8 billion (compared to $5 billion in 2019) with the primary sources being net patient revenue ($4.4 billion) – with the emphasis on “net” which means gross revenue was significantly higher and had expenses/adjustments deducted (no detail provided), followed by revenue from affiliates ($2.9 billion) which is what the affiliates pay for corporate services.

Expenses in 2020 totaled $7.6 billion (not counting $400 million in depreciation) categorized as follows:

• $4.5 billion:  Compensation
• $1.3 billion:  Fees for Services (primarily other, no detail provided)
• $o.8 billion (or $800 million):  Medical Supplies and Hospital Fees
• $0.6 billion (or $600 million):  Other Expenses (Interest, Travel, Conferences, Advertising)
• $0.4 billion (or $400 million):  Office-related Expenses

Note the largest expense is for compensation for the 38,800 employees who received an average compensation of $110,000.  However, only 7,097 employees received more than $100,000 in compensation.  The 39 most highly compensated employees of PH&S were reported to be:

• $10,113,395:  Rod Hochman, Former President, CEO*
• $ 8,764,668:  Mike Butler, President*
• $ 2,694,992:  Debra Canales, Former EVP, CAO*
• $ 2,312,296:  Erik Wexler, Chief Executive Southern CA
• $ 2,242,100:  Amy Compton-Phillips, Former EVP, Chief Clinical Officer*
• $ 2,143,321:  Rhonda Medows, Former EVP, Population Health*
• $ 2,106,811:  Venkat Bhamidipati, EVP, Treasurer* (part year)
• $ 2,103,634: Cindy Strauss, Secretary* (part year)
• $ 2,062,328:  Guy Hudson, CE Swedish Health Services
• $ 1,1951,208:  Victor Jordan, COO, Southern California
• $ 1,950,157:  Michael Cotton, President/CEO Health Plans
• $ 1,940,954: Lisa Vance, SVP, Former KE-PSJH EVP Regional CE Oregon*
• $ 1,871,315:  Elaine Couture, EVP, Chief Executive WA and MT
• $ 1,750,416:  Medrice Coluccio, CE, St Peter Hospital (part year)
• $ 1,746,592:  JoAnn Escasa-Haigh, EVP, Asst Treasurer*
• $ 1,712,491:  Bryan Mitchell, Physician and Orthopedic Surgeon
• $ 1,646,110:  Greg Till, Chief People Officer
• $ 1,580,096:  Aaron Martin, Former KE-PSJH EVP CHF/MKT/DIG INN*
• $ 1,343,693:  Mike Waters, EVP, Ambulatory Care Network
• $ 1,333,644:  Joel Gilbertson, EVP, Community Partnerships
• $ 1,311,284: Preston Simmons, SVP, CE, AK Region
• $ 1,139,957: John Whipple, Assistant Secretary
• $ 1,142,654:  Orest Holubec, Former SVP, Chief Comm/EXT Affairs Officer*
• $ 1,022,375:  Mary Cranstoun, SVP, Total Rewards – Talent Acquisition
• $   900,305:  Peg Currie, CE, Sacred Heart Medical Center
• $   865,361: David Brown, SVP CAO, Ambulatory Care
• $   864,537:  Jim Watson, Assistant Secretary*
• $   862,670:  Kim Williams, CE, PRMCE
• $  819,725:  Scott O’Brien, COO, WA and MT Region
• $  798,442:  Greg Hoffman, President/CEO and Treasurer  (part year)
• $  691,069: Debbie Burton, SVP/Chief Nursing Officer
• $  627,282:  Helen Andrus, CFO, WA and MT Region
• $   617,943:  Ella Goss, CE, Alaska Medical Center
• $   592,493:  Bruce Lamoureux,Former CE/AK Region
• $   585,934:  Darin Gross, Chief Executive, St Peter’s Hospital
• $   515,781:  Tom McDonagh, Former VP/Chief Investment Officer
• $   389,115:  Sharon Toncray, Former SVP/Chief Labor EE Counsel
• $   355,773:  Amy Miller, CFO, AK Region
• $   251,287:  Donald Anderson Jr, Asst Secretary For Enrollment

“*” indicates compensation was paid by a related/affiliated organization

24 of the 39 (61%) most highly compensated employees are male while 15 of the 39 (39%) are female.

The 8 most highly compensated employees received $118 million in compensation from 2017-2020:

Ron Hochman:  Total Compensation 2017-2020:   $43 million

• 2020:  $10,113,395
• 2019:  $10,914,842
• 2018:  $10,835,421
• 2017:  $11,583,060

Mike Butler:  Total Compensation 2017-2020:  $23 million

• 2020:  $8,764,668
• 2019:  $4,018,923
• 2018:  $5,551,827
• 2017:  $4,624,609

Eric Wexler:  Total Compensation 2019-2020:  $5 million

• 2020:  $2,312,296
• 2019:  $2,607,656
• 2018:  Not Listed
• 2017:  Not Listed

Debra Canales:  Total Compensation 2017-2020:  $12 million

• 2020:  $2,694,992
• 2019:  $2,557,624
• 2018:  $3,456,214
• 2017:  $2,910,666

Rhonda Meadows:  Total Compensation 2017-2020:  $10 million

• 2020:  $2,143,321
• 2019:  $2,163,292
• 2018:  $2,630,339
• 2017:  $2,708,746

Cindy Strauss:  Total Compensation 2017-2020:  $9 million

• 2020:  $2,103,634
• 2019:  $2,082,242
• 2018:  $2,575,338
• 2017:  $2,763,296

Amy Compton Phillips:  Total Compensation 2017-2020:  $9 million

• 2020:  $2,242,100
• 2019:  $1,950,290
• 2018:  $2,321,327
• 2017:  $2,516,017

Venkat Bhamidipati:  Total Compensation 2017-2020:  $7 million

• 2020:  $2,106,811
• 2019:  $1,920,924
• 2018:  $1,900,850
• 2017:  $1,486,287

PH&S made gross up payments and tax indemnifications, and paid for personal services and housing allowances or a residence for personal use.   See the Form 990, Schedule J, Part III Supplemental Information for more information on these items, payouts for the retirement plans, and consulting, medical, legal and other fees paid to substantial contributors to the organization.

The following individuals received severance payments in 2020:

• $750,000:  Venkat Bhamidipati
• $562,578:  Bruce Lamoureux
• $507,235:  Mike Butler
• $485,032:  Tom McDonagh
• $400,613:  Medrice Coluccio
• $367,774:  Sharon Toncray

To read the IRS Form 990 (2020) for PH&S, click here.