Executive Compensation at Providence Health and Services (WA) 2021

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 44,000 employees (2021), and reported total revenue of $9.5 billion (compared to $8 billion in 2020 and $5 billion in 2019) with the primary sources being net patient revenue ($5 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 ($3.7 billion) which is what the affiliates pay for corporate services.

Expenses in 2021 totaled $9 billion (not counting $400 million in depreciation) are categorized as follows:

• $5.2 billion:  Compensation
• $1.7 billion:  Fees for Services (primarily other, no detail provided)
• $o.9 billion (or $900 million):  Medical Supplies and Hospital Fees
• $0.8 billion (or $800 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 44,000 employees who received an average compensation of $118,000.  However, only 10,164 employees received more than $100,000 in compensation.  The 39 most highly compensated employees of PH&S were reported to be:

• $9,480,164:  Rod Hochman, Former President, CEO*
• $2,366,905:  Mike Butler, Former President*
• $3,506,414:  Debra Canales, Former EVP, CAO*
• $3,227,057:  Erik Wexler, Chief Executive Southern CA
• $2,190,558:  Amy Compton-Phillips, Former EVP, Chief Clinical Officer*
• $2,921,214:  Rhonda Medows, Former EVP, Population Health*
• $2,911,370:  Lisa Vance, SVP, Former KE-PSJH EVP Regional CE Oregon*
• $2,750,491:  Elaine Couture, EVP, Chief Executive WA and MT (thru 5/21)
• $2,564,821:  Guy Hudson, CE Swedish Health Services
• $2,171,710:  Joel Gilbertson, EVP, Community Partnerships
• $2,089,980:  Kevin Manemann, Chief Executive PSJH Southern CA
• $1,944,951:  Cindy Strauss, Former Secretary* (part year)
• $1,925,430:  Mike Waters, EVP, Ambulatory Care Network
• $1,719,076:  JoAnn Escasa-Haigh, EVP, Asst Treasurer*
• $1,701,329:  Bryan Mitchell, Physician and Orthopedic Surgeon
• $1,793,872:  Greg Till, Chief People Officer
• $1,680,620:  Greg Hoffman, President/CEO and Treasurer  (part year)
• $1,672,102:  Aaron Martin, Former KE-PSJH EVP CHF/MKT/DIG INN*
• $1,626,448:  Steven Nisco, Physician
• $1,563,212:  Jatin Motiwal, CE Clinical Institutes  (thru 10/21)
• $1,377,439:  Sylvain Trepanier, SVP Chief Nursing Officer
• $1,375,053 : Preston Simmons, SVP, CE, AK Region
• $1,241,535 :  Orest Holubec, Former SVP, Chief Comm/EXT Affairs Officer*
• $1,223,986: John Whipple, Secretary
• $1,119,583:  Debbie Burton, SVP/Chief Nursing Officer (thru 1/21)
• $1,104,322:  Scott O’Brien, COO, WA and MT Region
• $1,038,317:  Mary Cranstoun, SVP, Total Rewards – Talent Acquisition
• $  897,874:  Peg Currie, CE, Sacred Heart Medical Center
• $  877,084: David Brown, SVP CAO, Ambulatory Care
• $  876,789:  Ali Santore, SVSP, Gov’t Affairs & Social Responsibility
• $  886,942:  Jim Watson, Assistant Secretary*
• $  790,379:  Ella Goss, CE, Alaska Medical Center
• $  750,000:  Venkat Bhamidipati, Former EVP, Treasurer* 
• $  718,928:  Darin Gross, Chief Executive, St Peter’s Hospital
• $  695,087:  Helen Andrus, CFO, WA and MT Region
• $  530,308:  Darren Redick, Chief Executive, PRMCE
• $  486,608:  Kim Williams, CE, PRMCE (thru 3/21)
• $  348,263:  Amy Miller, CFO, AK Region
• $  266,631:  Donald Anderson Jr, Asst Secretary For Enrollment

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

22 of the 39 (56%) most highly compensated employees are male while 17 of the 39 (44%) are female.

The 13 most highly compensated employees received $180 million in compensation from 2017-2021:

Ron Hochman:  Total Compensation 2017-2021:   $53 million

• 2021:  $ 9,480,164
• 2020:  $10,113,395
• 2019:  $10,914,842
• 2018:  $10,835,421
• 2017:  $11,583,060

Mike Butler:  Total Compensation 2017-2021:  $25 million

• 2021:  $2,366,905
• 2020:  $8,764,668
• 2019:  $4,018,923
• 2018:  $5,551,827
• 2017:  $4,624,609

Eric Wexler:  Total Compensation 2019-2021:  $8 million

• 2021:  $3,227,057
• 2020:  $2,312,296
• 2019:  $2,607,656
• 2018:  Not Listed
• 2017:  Not Listed

Amy Compton Phillips:  Total Compensation 2017-2021:  $11 million

• 2021:  $2,190,558
• 2020:  $2,242,100
• 2019:  $1,950,290
• 2018:  $2,321,327
• 2017:  $2,516,017

Debra Canales:  Total Compensation 2017-2021:  $15 million

• 2021:  $3,506,414
• 2020:  $2,694,992
• 2019:  $2,557,624
• 2018:  $3,456,214
• 2017:  $2,910,666

Rhonda Meadows:  Total Compensation 2017-2021:  $13 million

• 2021:  $2,921,214
• 2020:  $2,143,321
• 2019:  $2,163,292
• 2018:  $2,630,339
• 2017:  $2,708,746

Lisa Vance:  Total compensation 2017-2021:  $11 million

• 2021:  $2,911,370
• 2020:  $1,940,954
• 2019:  $1,559,647
• 2018:  $1,727,218
• 2017:  $2,373,427

Elaine Couture:  Total Compensation 2017-2021:  $10 million

• 2021:   $2,750,491
• 2020:  $1,871,315
• 2019:  $1,745,086
• 2018:  $1,758,162
• 2017:  $2,118,335

Guy Hudson:  Total Compensation:  2020-2021:  $5 million

• 2021:  $2,564,821
• 2020:  $2,062,328
• 2019:  Not Listed
• 2018:  Not Listed
• 2017:  Not Listed

Joel Gilbertson:  Total Compensation 2017-2021: $9 million

• 2021:   $2,171,710
• 2020:  $1,333,644
• 2019:  $1,518,930
• 2018:  $1,968,479
• 2017:  $1,408,699

Kevin Manemann:  Total Compensation 2021: $2 million

• 2021:  $2,089,980
• 2020:  Not Listed
• 2019:  Not Listed
• 2018:  Not Listed
• 2017:  Not Listed

Cindy Strauss:  Total Compensation 2017-2021:  $11 million

• 2021:  $1,944,951
• 2020:  $2,103,634
• 2019:  $2,082,242
• 2018:  $2,575,338
• 2017:  $2,763,296

Mike Waters:  Total Compensation 2017-2021:  $7 million

• 2021:  $1,925,430
• 2020:  $1,343,693
• 2019:  $1,209,446
• 2018:  $1,159,074
• 2017:  $1,106,660

PH&S paid for first class or charter travel, 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 and 2021:

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

2021:

• $2,355,018:  Mike Butler
• $  750,000:  Venkat Bhamidipati
• $. 140,250:  Jatin Motiwal

To read the IRS Form 990 (2021) for PH&S, click here.