Executive Compensation at Shriners Hospitals for Children (2022)

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 $1.1 billion and reported total expenses of about $1.1 billion in 2022. The collective net assets of the organizations were $9.7 billion at year-end (compared to $11.3 billion at year-end 2021 with the deterioration primarily due to unrealized losses on investments), noting that these assets provide significant income to the organizations.

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

SHC – CO paid $441 million in compensation to 5,035 employees, which equates to an average compensation of $88,000.  890 employees received more than $100,000 in compensation. The 7 most highly compensated employees were reported to be:

• $3,366,552:  Ellen Raney, Orthopedic Surgeon, Professor
• $1,547,530:  Emily Naus, Anesthesiologist (thru 11/1/22)
• $1,334,258:  Maureen Maciel, Chief of Staff (thru 4/2/22)
• $1,015,266:  Scott Kozin, Chief of Staff
• $1,007,517:  John McCabe, EVP
• $  971,499:  Purnendu Gupta, Chief of Staff
• $  947,882:  Francis Farley, Chief Medical Officer

The 7 most highly compensated employees received $10 million in compensation in 2022.

4 of the 7 (57%) most highly compensated employees are male while 3 of the 7 (43%) are female.  Interestingly, SHC – CO has a board composition of 21 board members/trustees, 20 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 Ellen Raney, an orthopedic surgeon who received $3,366,552 in compensation in 2022 (she left the organization on November 1, 2022).  Scott Kozin, a Chief of Staff received $1 million in 2022 and from 2018-2022, Mr Kozin received $7 million in compensation:

Scott Kozin:  Total Compensation 2018-2022:  $7 million

• 2022:   $1,015,266
• 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:

• $20.3 million:  Burns and Associates Management, in St Louis, MO, for marketing
• $12.2 million:  UC Regents at UC Davis, in Davis, CA, for medical services
• $ 7.0 million:  Medical Solutions, of Omaha, NE for medical services
• $6.5 million:  Forney Construction, of Houston, TX for construction
• $ 5.0 million:  The University of Texas Medical Branch A, in Galveston, TX, for medical services

SHC – MA paid $33 million in compensation to 481 employees, which equates to an average compensation of $69,000.  79 employees received more than $100,000 in compensation. The 6 most highly compensated employees were reported to be:

• $1,007,517:  John McCabe, EVP (compensation from a related org)
• $  518,281:  Chien-Wei Liao, Chief of Staff
• $  407,772:  Ahmad Bayomy, Orthopedic Surgeon, Sports
• $  397,869:  James Mooney, Chief of Staff
• $  371,570:  Rubini Pathy, Orthopedic Surgeon, Assistant Professor
• $  245,883:  Frances Marthone, Market Administrator

5 of the 6 most highly compensated employees are male.  SHC – MA is overseen by a board with 23 members, 21 of whom are independent, although 25 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 $1,007,517 in 2022 and $4 million from 2018-2022:

• 2022:  $1,007,517
• 2021:  $  884,259
• 2020:  $  725,314
• 2019:  $  718,821
• 2018:  $  642,337

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

• $6,134,822:  The General Hospital Corp, of Boston, MA, for outside patient services
• $  496,382:  Springfield Anesthesia Services, of Springfield, MA for anesthesia services
• $  485,074:  Dr Edward Bittner, of Boston, MA for medical services
• $  277,727:  Bernstein Magoon Gay, of King of Prussia, PA for laundry services
• $  192,473:  Dr Christina Kim Granger, of Simsbury, CT for medical 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 (2022) for SHC – CO, click here.

To read the IRS Form 990 (2022) for SHC – MA, click here.