Executive Compensation at Shriners Hospitals for Children (2021)

Shriners Hospitals for Children is a network of hospitals, medical and satellite centers, outpatient facilities, ambulatory surgery care centers, and outreach centersthat provide specialized pediatric care (orthopedics, burn, spinal cord, and palate) for children under the age of 18. According to the Shriners website, all but 2 of the hospitals (Canada and Mexico) are located in the United States under two non-profit corporations:

• The Shriners Hospitals for Children (for 11 hospitals, 1 outpatient facility (Salt Lake City), 2 ambulatory surgery centers, and 4 clinics) – a Colorado corporation based in Tampa, Florida; and
• The Shriners Hospitals for Children (for 1 hospital and 1 outpatient facility in Massachusetts) – a Massachusetts corporation based in Tampa, Florida.

The Shriners Hospitals for Children – Colorado (SHC – CO) and the Shriners Hospitals for Children – Massachusetts (SHC – MA) raised $1.7 billion and reported total expenses of about $900 million (not including depreciation) in 2021, allocating unspent revenue to the general fund (noting that the large amount of excess revenue was because SHC – CO realized a large gain on the sale of assets in 2021).  The collective net assets of the organizations were $11.3 billion at year-end, noting that these assets provide significant income to the organizations.

The largest expense for both organization is compensation for the employees.

SHC – CO paid $447 million in compensation to 5,649 employees, which equates to an average compensation of $79,000.  811 employees received more than $100,000 in compensation. The 7 most highly compensated employees were reported to be:

• $3,766,387:  Scott Kozin, Chief of Staff
• $  943,337:  Purnendu Gupta, Chief of Staff
• $  922,644:  Francis Farley, Chief Medical Officer
• $  890,653:  Amer Samdani, Chief of Surgery
• $  884,259:  John McCabe, EVP
• $  834,721:  Glen Baird, Chief of Staff
• $  808,027:  Robert Bernstein, Chief of Staff

The 7 most highly compensated employees received more than $9 million in compensation in 2021.

6 of the 7 (86%) most highly compensated employees are male while 1 of the 7 is female.  Interestingly, SHC – CO has a board composition of 21 board members/trustees, 19 of whom are independent although 22 are listed on the Form 990 (due to timing differences). All board members/trustees are male.

The most highly compensated employee was Scott Kozin, a Chief of Staff who received nearly $3.8 million in 2021.  From 2018-2021, Mr Kozin received $6 million in compensation.

Scott Kozin:  Total Compensation 2018-2021:  $6 million

• 2021:  $3,766,387
• 2020:  $  887,412
• 2019:  $  809.565
• 2018:  $  803,680

75 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:

• $12.1 million:  Forney Construction, of Houston, TX for construction
• $10.1  million:  Burns and Associates Management, in St Louis, MO, for marketing
• $ 7.5  million:  The University of Texas Medical Branch A, in Galveston, TX, for medical services
• $ 7.0  million:  UC Regents at UC Davis, in Davis, CA, for medical services
• $ 4.1  million:  Kentucky Medical Services Foundation, in Lexington, KY, for medical services

SHC – MA paid $34 million in compensation to 527 employees, which equates to an average compensation of $65,000.  66 employees received more than $100,000 in compensation. The 6 most highly compensated employees were reported to be:

• $884,259:  John McCabe, EVP (compensation from a related org)
• $770,099:  James Mooney, Chief of Staff
• $468,890:  Rubini Pathy, Orthopedic Surgeon
• $441,688:  Ahmad Bayomy, Orthopedic Surgeon
• $331,394:  H. Lee Kirk, Administrator
• $255,700:  Chien-Wei Liao, Chief of Staff

All of the most highly compensated employees are male.  SHC – MA is overseen by a board with 22 members, 20 of whom are independent, although 29 are listed on the Form 990 (due to timing differences). All trustees are male.

The most highly compensated employee was John McCabe, an EVP who was compensated from a related organization (SHC – CO) and received $884,259 in 2021 and $3 million from 2018-2021:

• 2021:  $884,259
• 2020:  $725,314
• 2019:  $718,821
• 2018:  $642,337

9 independent contractors received more than $100,000 in compensation. The 5 most highly compensated independent contractors were reported to be:

• $5,725,000:  The General Hospital Corp, of Boston, MA, for outside patient services
• $625,000:  Springfield Anesthesia Services, of Springfield, MA for anesthesia services
• $450,000:  Dr Edward Bittner, of Boston, MA for medical services
• $195,000:  Dr Christina Kim Granger, of Simsbury, CT for medical services
• $143,000:  Medway Air Ambulance, of Lawrenceville, GA for medical transportation services

SHC – CO and SHC – MA paid for first class flights for board members and executive staff whose flights are more than 2.5 hours long. Companion travel is provided for board members whose companion is participating in Shriners business. And, temporary housing allowances were provided for recruited individuals when relocation was required.

To read the IRS Form 990 (2021) for SHC – CO, click here.

To read the IRS Form 990 (2021) for SHC – MA, click here.