Executive Compensation at Prisma Health

Prisma Health is a tax-exempt, non-profit healthcare provider (the largest) in South Carolina. With nearly 30,000 employees, 18 acute and speciality hospitals with 2,800 licensed beds, and 320 practice sites, Prisma Health serves more than 1.5 million patients in 21 counties that cover 50% of South Carolina.

Based in Greenville, SC, Prisma consists of 7 tax-exempt organizations, 1 taxable partnership, and 6 organizations taxable as a corporation or trust.  This post addresses the executive compensation at Prisma Health (Prisma), a tax-exempt corporation that derives most of its revenue from investment income, government grants, and gains on the sale of businesses, and appears to be the management entity of the entire system.

Total revenue in 2022 was $325 million which primarily came from 4 sources:  investment income ($122 million),  government grants ($83 million), gain on the sale of a business ($80 million), and program service revenue – captive revenue, provider and member subscriptions, admin and general revenue, net patient revenue – ($39 million).

Total expenses in 2022 were $250 million (including $51 million in depreciation) with the largest expense reported to be compensation ($361 million) which was offset by a negative expense (which is revenue) of $520 million of corporate allocations.

4,345 employees received $361 million in compensation, which equates to an average compensation of $83,000.  412 employees received more than $100,000 in compensation with the 19 most highly compensated reported to be:

• $1,924,206:  Mark S O’Halla, Presdient and CEO
• $1,488,383:  Gregory J Rusnak, Former EVP and COO (until 10/1/21)
• $1,388,959:  Michael T Burke, EVP and CFO
• $1,137,131:  Howard P West, EVP, Chief Legal Officer
• $1,129,373:  James M Ellis, Former VP, Clinical Affairs
• $1,092,434:  Richard J Rogers, SVP, CIO
• $1,062,976:  Scott M Sasser, CEO, Prisma Health Medical Group (until 6/20/22)
• $1,046,312:  William S Cobb IV, Clinical VP, Prisma Health Medical Group
• $1,036,102:  Keith N Alexander, SVP, Acute Care Operations (until 1/7/22)
• $  961,028:  Brenda J Thames, Academic Consultant
• $  931,465:  Amy M Linsin, EVP, Chief HR and Diversity Officer
• $  908,260:  Angelo Sinopoli, Former EVP Chief Clinical Officer (until 10/1/21)
• $  877,580:  Malcolm W Isley, EVP Chief Strategy Officer
• $  809,767:  Mark L Wess, Former VP Chief Health Information Executive
• $  802,206:  Elizabeth Tibbs, SVP, COO, Medical Group
• $  762,593:  Carolyn R Swinton, SVP, Chief Nursing Officer (until 2/4/22)
• $  742,118:  David L Cull, VP, Academic and Clinical Integration
• $  662,931:  Clarence M Sevillian II, EVP, COO
• $  568,349:  Larry D Gosnell, SVP and Treasurer

The 19 most highly compensated employees received more than $19 million in compensation, which equates to an average compensation of $1 million.  The 7 most highly compensated employees (all male) received $16 million in compensation from 2021-2022:

Mark S O’Halla:  Total Compensation 2021-2022:  $3.6 million

• 2022:  $1,924,206
• 2021:  $1,638,039

Gregory J Rusnak:  Total Compensation 2021-2022:  $2.8 million

• 2022:  $1,488,383
• 2021:  $1,290,760

Michael T Burke:  Total Compensation 2021-2022:  $2.3 million

• 2022:  $1,388,959
• 2021. $  850,127

Howard P West:  Total Compensation 2021-2022:  $2.3 million

• 2022:  $1,137,131
• 2021:  $1,118,708

James M Ellis:  Total Compensation 2022:  $1.1 million

• 2022:  $1,129,373

Richard J Rogers:  Total Compensation 2021-2022:  $2 million

• 2022:  $1,092,434
• 2021:  $  935,955

Scott M Sasser:  Total Compensation 2021-2022:  $2 million

• 2022:  $1,062,976
• 2021:  $  924,666

9 of the 10 most highly compensated employees are male while 1 is a female.

Prisma paid for personal residences or provided housing allowances, Specifically, Amy Linson, Clarence Sevillian  and Howard West received housing allowances.

To read about severance payments and the 457(F) plan for a select group of management or highly compensated employees, see the Form 990, Schedule J,Part III, Supplemental Information.

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

• $6.0 million:  CPS Solutions, of Dublin, OH for pharmacy management fee
• $5.8 million:  Internetwork Engineering, of Charlotte, NC for IT services
• $5.4 million:  Deloitte Consulting, of Dallas, TX for consulting services
• $4.5 million:  Cerner Corporation, of Kansas City, MO for IT and Medical Record hosting
• $2.6 million:  Hctec Partners, of Nashville,TN for technology support services

To read the IRS Form 990 (2021 for the year ending 9/30/22), click here.