Executive Compensation at Advent Health (2022)

AdventHealth (formerly known as Adventist Health System until 2019 when the 501 (c) (3) “rebranded” itself) is one of the largest non-profit health care providers in the United States with more than 50 hospitals and hundreds of care sites in 9 states. Based in Altamonte Springs, Florida, AdventHealth is a very large system with dozens of separate tax-exempt non-profit and for-profit organizations. 

This post looks at the executive compensation at  Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the tax-exempt, non profit organization that provides management, leadership, and oversight to the affiliates.  It is important to note there are dozens of other related and affiliated non-profits and for profit organizations  related to AdventHealth that are not covered in this post.

AHSSHC provided executive leadership and other professional support services to the subsidiaries and affiliates of its healthcare network.  Consequently, most revenue is from affiliated organizations within the network who pay AHSSHC for management and reimbursement for salaries, wages, and other expenses.

In 2022, total revenue was $1.6 billion, most of which came from network organizations through management fees ($606 million) and reimbursed salaries, wages, and pharmaceutical expenses ($604 million) and reimbursement for expenses and service purchases ($300 million).

Expenses totaled $1.6 billion, most of which was spent on compensation for employees ($777 million), fees for services ($330 million including $133 million to one company (CSI Staffing) for staffing services, office-related expenses ($201 million), and pharmaceutical costs ($152 million)

It is important to note AHSSHC has nearly $300 million in net assets (down from $765 million in 2020 primarily due to unrealized losses on investments and the purchase of hospital assets).

In 2022, AHSSHC reported having 6,808 employees (about 700 more than in 2021) who received $777 million in compensation, which equates to an average compensation of $114,000.

Think about the concept of having nearly 7,000 employees to oversee 52 hospitals (who all have their own CEO, COO, CFO, and administrative staff) and other service centers (who have their own management, billing and administrative staff). If we just consider hospitals, that’s about 130 employees for every hospital over and above the hospital’s own management and administrative staff.  How is it that healthcare has become so complicated that an organization needs additional sets of CEO’s, COO’s, CFO’s and administrative staff to oversee CEO’s, COO’s, CFO’s and administrative staff?

1,965 employees received more than $100,000 in compensation with the 22 most highly compensated employees listed below:

• $5,678,983:  Terry D Shaw, Director/President/CEO
• $3,906,271:  David Otatti, SEVP/CEO, West Florida Division
• $2,853,096:  David Banks, SEVP, Chief Strategy Officer
• $2,747,966:  Paul Rathbun, SEVP/CFO
• $2,610,276:  Randall L Haffner, Director/SEVP/CEO Multi-state Division (end 9/20)
• $2,027,198:  Todd Goodman, SVP, CFO, Central Floda Division
• $1,911,910:  Kenneth Bacon, SEVP/CEO Multi-State Division
• $1,870,874:  Patricia Celano, SVP/Assoc Chief Clinical Officer
• $1,787,263:  Herb Keller, SVP, Applications and Tech AIT
• $1,769,015:  David Moorhead, EVP, Chief Clinical Officer
• $1,631,184:  Christian Bruce, CEO, Bolingbrook/Glen Oaks (end 10/22)
• $1,555,637:  Jeffrey Bromme, EVP, Chief Legal Officer
• $1,510,244:  Brent G Snyder, EVP/CIO
• $1,459,929:  Bruce Bergherm, CEO, West Florida Division
• $1,410,088:  Edward Laue, VP/CMO, THH Mansfield (end 7/22)
• $1,314,783:  Bryan Stiltz, EVP, Physician Enterprise
• $1,221,848:  Olesea Azevedo, SVP, Chief People Officer
• $1,112,951:  Sandra K Johnson, Former Executive VP/Chief Admin Officer (end 12/21)
• $  792,136:  Daryl Tol, Former SEVP/CEO Central Florida Division
• $  772,254:  Vickie White, SVP, Chief Brand and Consumer Officer
• $  724,470:  Eddie Soler, Former SEO/CFO Multistate
• $  576,808:  Michael Schultz, SEVP, CEO West Florida Division (end 12/21)

The 22 most highly compensated employees received more than $41 million in 2022, which equates to an average compensation of $1.9 million.

18 of the 22 (82%) most highly compensated employees are male while 4 of the 22 (18%) are female. Of the 10 most highly compensated employees, 9 are male while 1 is female.  It is also important to note AHSSHC has 22 voting members of a governing body, 15 of whom are independent, although the Form 990 (2022) lists 29 directors (due to timing differences), 26 of whom are male (86%) and 3 of whom are female (14%).

The most highly compensated employees received $184 million in compensation from 2016-2022 (with several employees only recently joining the organization, which means the highly compensated employees employed 2016-2021 but not in 2022 are not included which means the total amount would be even higher if all the most highly compensated employees were included):

Terry Shaw:  Total Compensation 2016-2022: $28.5 million 

• 2022:  $5,678,983
• 2021:  $4,728,689
• 2020:  $3,198,492
• 2019:  $4,712,219
• 2018:  $4,495,072
• 2017:  $3,538,936
• 2016:  $2,113,738

David Otatti:  Total Compensation 2022:  $4 million

• 2022:  $3,906,271

Randall Haffner:  Total Compensation 2016-2022:  $20.5 million

• 2022:  $2,610,276
• 2021:  $3,829,282
• 2020:  $3,085,628
• 2019:  $3,041,828
• 2018:  $3,273,659
• 2017:  $2,654,661
• 2016:  $1,973,223

Daryl Tol:  Total Compensation 2016-2022:  $13 million

• 2022:  $  792,136
• 2021:  $2,721,23
• 2020:  $2,190,031
• 2019:  $2,150,623
• 2018:  $2,073,454
• 2017:  $1,573,978
• 2016:  $1,413,783

Michael Schultz:  Total Compensation 2016-2022:  $12 million

• 2022:  $  576,808
• 2021:  $2,081,308
• 2020:  $1,639,497
• 2019:  $1,908,196
• 2018:  $2,471,106
• 2017:  $1,919,025
• 2016:  $1,592,650

Paul Rathbun:  Total Compensation 2016-2022:  $17 million

• 2022:  $2,747,966
• 2021:  $2,805,436
• 2020:  $4,569,104
• 2019:  $1,843,957
• 2018:  $1,949,110
• 2017:  $1,576,022
• 2016:  $1,274,006

David Banks:  Total Compensation 2016-2022:  $13 million

• 2022:  $2,853,096
• 2021:  $2,230,701
• 2020:  $1,676,366
• 2019:  $1,448,579
• 2018:  $1,565,029
• 2017:  $1,317,278
• 2016:  $1,908,554

David Moorhead:  Total Compensation 2017-2022:  $10 million

• 2022:  $1,769,015
• 2021:  $1,844,646
• 2020:  $1,613,817
• 2019:  $1,439,068
• 2018:  $1,146,165
• 2017:  $1,931,858

Brent G Snyder:  Total Compensation 2016-2022:  $11 million

• 2022:  $1,510,244
• 2021:  $1,828,275
• 2020:  $1,436,268
• 2019:  $1,479,981
• 2018:  $1,665,667
• 2017:  $1,491,499
• 2016:  $1,407,470

Eddie Soler:  Total Compensation 2016-2022:  $10 million

• 2022:  $  724,470
• 2021:  $1,591,928
• 2020:  $1,397,998
• 2019:  $1,491,785
• 2018:  $1,685,648
• 2017:  $1,572,566
• 2016:  $1,330,961

Sandra K Johnson:  Total Compensation 2016-2022:  $10.5 million

• 2022:  $1,112,951
• 2021:  $1,568,575
• 2020:  $1,319,748
• 2019:  $1,681,059
• 2018:  $1,690,747
• 2017:  $1,555,017
• 2016:  $1,330,961

Jeffrey Bromme:  Total Compensation 2016-2022:  $9 million

• 2022:  $1,555,637
• 2021:  $1,556,259
• 2020:  $1,310,505
• 2019:  $1,198,112
• 2018:  $1,284,866
• 2017:  $1,133,449
• 2016:  $  961,350

Kenneth Bacon:  Total Compensation 2021-2022. $3 million

• 2022:  $1,911,910
• 2021:  $1,279,995

Bryan Stiltz:  Total Compensation 2020-2022:  $3.5 million

• 2022:  $1,314,783
• 2021:  $1,242,256
• 2020:  $1,051,552

Olesea Azevedo:  Total Compensation 2017-2022:  $6 million

• 2022:  $1,221,848
• 2021:  $1,183,933
• 2020:  $  970,346
• 2019:  $  903,777
• 2018:  $  783,771
• 2017:  $  733,724

Patricia Celano:  Total Compensation 2020-2022:  $3.5 million

• 2022:  $1,870,874
• 2021:  $  775,844
• 2020:  $  707,200

Todd Goodman:  Total Compensation 2022:  $2 million

• 2022:  $2,027,198

Herb Kelle:  Total Compensation 2022:  $1.8 million

• 2022: $1,787,263

Christian Bruce:  Total Compensation 2022:  $1.6 million

• 2022: $1,631,184

Bruce Bergherm. Total Compensation 2022:  $1.5 million 

• 2022:  $1,459,929

Edward Laue:  Total Compensation 2022. $1.4 million

• 2022: 1,410,088

Vickie White:  Total Compensation 2022:  $0.8 million

• 2022:  $  772,254

AHSSHC paid for first class or charter travel, travel for companions, health of social club dues or initiation fees, discretionary spending accounts, and gross up payments and tax indemnification. For details on these expenses, see Form 990, Schedule J, Part III, Supplemental Information.  In addition, information on the SERP and SEDB (Senior Executive Dean Benefit) Plans are also detailed.

256 independent contractors received more than $100,000 in compensation with the 5 most highly compensated reported to be:

• $133 million:  The CSI Companies, of Charlotte, NC for staffing services
• $ 39 million:  Cerner Corporation, of St Louis, MO for IT services/support fees
• $ 38 million:  Athenahealth, of Boston, MA for medical records and billing services
• $ 34 million:  EPIC Systems Corp, of Milwaukee, WI for IT services, implementation, support fees
• $ 17 million:  CDW LLC, of Vernon Hills, IL for maintenance/support

To read the IRS Form 990 (2022), click here.