Executive Compensation at Providence Health (WA) 2022

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 122,000 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).

There are 111 tax-exempt organizations, 49 taxable partnerships, and 47 taxable corporations or trusts that make up the network.  These organizations pay PH&S about $4 billion annually for management and oversight.

PH&S is headquartered in Renton, Washington, has about 44,300 employees (2022), and reported total revenue of $9.4 billion (compared to $9.5 billion in 2021, $8 billion in 2020 and $5 billion in 2019) with the primary sources being net patient revenue ($5.2 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 ($4 billion) which is what the affiliates pay for corporate services.

It is important to note that in 2022, PH&S reported a negative $3.4 billion “disaffiliation fee” as negative income on the income statement (as opposed to posting this as an expense) which resulted in showing total revenue of $6 billion in 2022.  However, the $3.4 billion “non-operating disaffiliation fee” was also posted as a positive adjustment to net assets which means the two posts (a negative income and a positive adjustment to net assets) had no effect on net assets.  Net assets did deteriorate from $2.9 billion at the beginning of the year to $1.8 billion at the end of the year but it was primarily because of two things:  expenses exceeded revenue by about $500 million and net unrealized losses on investments ($400 million).

Expenses in 2022 totaled $9.9 billion (including  $360 million in depreciation) are categorized as follows:

• $5.6 billion:  Compensation
• $1.8 billion:  Fees for Services (primarily other, no detail provided)
• $1.0 billion:  Other Expenses (Interest, Travel, Conferences, Advertising
• $o.9 billion (or $900 million):  Medical Supplies and Hospital Fees
• $0.6 billion (or $600 million):  Office-related Expenses

Note the largest expense is for compensation for the 44,300 employees who received an average compensation of $126,000.  However, only 10,838 employees received more than $100,000 in compensation.  The 38 most highly compensated employees (and former employees) of PH&S were reported to be:

• $5,101,912:  Erik Wexler, Chief Executive Southern CA
• $4,500,000:  David Yam, Former Neurosurgeon
• $3,952,089:  Lisa Vance, President, Strategy and Operations North
• $3,811,361:  Amy Compton-Phillips, Former EVP, Chief Clinical Officer*
• $3,808,259:  Debra Canales, Former EVP, CAO*
• $3,623,646:  Guy Hudson, Division Chief Executive – North
• $3,320,750:  Rhonda Medows, Former EVP, Population Health*
• $2,898,151:  Greg Hoffman, President/CEO and Treasurer
• $2,795,917:  Kevin Manemann, Chief Executive PSJH Southern CA
• $2,729,167:  Wasif Rasheed, Chief Revenue and Growth Officer
• $2,429,125:  Greg Till, Chief People Officer
• $2,398,714:  Joel Gilbertson, Division Chief Executive – Central
• $2,193,229:  JoAnn Escasa-Haigh, EVP, Asst Treasurer*
• $2,092,159:  Mike Waters, EVP, Ambulatory Care Network (thru 7/22)
• $2,080,373:  Donald Antonucci, CEO, Providence Health Plan
• $1,936,913:  Preston Simmons, SVP, CE, AK Region (thru 10/22)
• $1,926,725:  David Brown, SVP CAO, Ambulatory Care (thru 8/22)
• $1,843,534:  Mike Butler, Former President*
• $1,754,801: John Whipple, Secretary (thru 5/22)
• $1,684,490:  Richard Parks, Executive Advisor
• $1,627,766 :  Orest Holubec, Former SVP, Chief Comm/EXT Affairs Officer*
• $1,551,346:  Todd Czartoski, Chief Medical Technical Officer (thru 8/22)
• $1,511,748:  Kevin Brooks, Division COO – North
• $1,503,878:  Scott O’Brien, Division COO – Central
• $1,425,119:  Braden Batkoff, SVP, Clinical Program Service Ops (thru 5/22)
• $1,368,650:  Sylvain Trepanier, SVP Chief Nursing Officer
• $1,292,824:  Ali Santore, SVP, Gov’t Affairs and Social Responsibility
• $1,280,855:  Aaron Martin, Former KE-PSJH EVP CHF/MKT/DIG INN*
• $1,202,362:  Mary Cranstoun, SVP, Total Rewards – Talent Acquisition
• $1,104,482:  Ella Goss, Regional Chief Executive – AK
• $1,102,482:  Sara Vaezy, EVP, Chief Marketing/Digital Innovation Officer (part year)
• $1,037,745:  Marybeth Formby, Division CFO – North
• $1,028,353:  Hoda Asmar, EVP, Systems Chief Medical Officer (part year)
• $1,026,085:  Anna Newsom, Secretary (part year)
• $  961,626:  Jim Watson, Assistant Secretary*
• $  855,968:  Helen Andrus, Regional CFO, WA and MT Region
• $  779,841:  Darren Redick, Former Key Employee, Chief Executive, PRMCE
• $  773,309:  Thomas Arnold,  GVP, Real Estate

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

24 of the 38 (63%) most highly compensated employees are male while 14 of the 38 (37%) are female.  It is interesting to note many of the individuals listed above are former employees (highlighted in bold).

The 18 most highly compensated employees received $190 million in compensation from 2017-2022 (note:  highly compensated employees employed during 2017-2021 but not in 2022 are not included in this compilation):

Eric Wexler:  Total Compensation 2019-2022:  $13 million

• 2022:  $5,101,912
• 2021:  $3,227,057
• 2020:  $2,312,296
• 2019:  $2,607,656

David Yam:  Total Compensation 2022:  $4.5 million

• 2022:  $4,500,000

Amy Compton Phillips:  Total Compensation 2017-2022:  $15 million

• 2022:  $3,811,363
• 2021:  $2,190,558
• 2020:  $2,242,100
• 2019:  $1,950,290
• 2018:  $2,321,327
• 2017:  $2,516,017

Debra Canales:  Total Compensation 2017-2022:  $19 million

• 2022:  $3,808,259
• 2021:  $3,506,414
• 2020:  $2,694,992
• 2019:  $2,557,624
• 2018:  $3,456,214
• 2017:  $2,910,666

Rhonda Medows:  Total Compensation 2017-2022:  $16 million

• 2022:  $3,320,750
• 2021:  $2,921,214
• 2020:  $2,143,321
• 2019:  $2,163,292
• 2018:  $2,630,339
• 2017:  $2,708,746

Greg Hoffman:  Total Compensation 2020-2022:  $5.5 million

• 2022:  $2,898,151
• 2021:  $1,680,620
• 2020:  $  798,442

Wasif Rasheed:  Total Compensation 2022:  $3 million

• 2022:  $2,729,167

Greg Till: Total Compensation 2017-2022:  $10 million

• 2022:  $2,429,125
• 2021:  $1,793,872
• 2020:  $1,646,110
• 2019:  $1,363,480
• 2018:  $1,259,482
• 2017:  $1,205,152

JoAnn Escasa-Haigh:  Total Compensation 2017-2022:  $11 million

• 2022:  $2,193,229
• 2021:  $1,719,076
• 2020:  $1,746,592
• 2019:  $1,406,734
• 2018:  $1,638,259
• 2017:  $2,039,775

Donald Antonucci:  Total Compensation 2022:  $2 million

• 2022:  $2,080,373

Preston Simmons:  Total Compensation 2017-2022:  $9 million

• 2022:  $1,936,913
• 2021:  $1,375,053
• 2020:  $1,311,284
• 2019:  $1,275,589
• 2018:  $1,824,101
• 2017:  $1,447,856

David Brown:  Total Compensation 2017-2022:  $7.5 million

• 2022:  $1,926,725
• 2021:  $  877,074
• 2020:  $  865,361
• 2019:  $  961,458
• 2018:  $1,730,470
• 2017:  $1,157,644

Lisa Vance:  Total compensation 2017-2022:  $15 million

• 2022:  $3,952,089
• 2021:  $2,911,370
• 2020:  $1,940,954
• 2019:  $1,559,647
• 2018:  $1,727,218
• 2017:  $2,373,427

Guy Hudson:  Total Compensation:  2020-2022:  $8 million

• 2022:  $3,623,646
• 2021:  $2,564,821
• 2020:  $2,062,328

Joel Gilbertson:  Total Compensation 2017-2022:  $11 million

• 2022:  $2,398,714
• 2021:   $2,171,710
• 2020:  $1,333,644
• 2019:  $1,518,930
• 2018:  $1,968,479
• 2017:  $1,408,699

Kevin Manemann:  Total Compensation 2021-2022: $5 million

• 2022:  $2,795,917
• 2021:  $2,089,980

Mike Waters:  Total Compensation 2017-2022:  $9 million

• 2022:  $2,092,159
• 2021:  $1,925,430
• 2020:  $1,343,693
• 2019:  $1,209,446
• 2018:  $1,159,074
• 2017:  $1,106,660

Mike Butler:  Total Compensation 2017-2022:  $27 million

• 2022:  $1,843,544
• 2021:  $2,366,905
• 2020:  $8,764,668
• 2019:  $4,018,923
• 2018:  $5,551,827
• 2017:  $4,624,609

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 2020-2022:

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

2022:

• $1,835,706:  Mike Butler
• $  389,136:  Braden Batkoff
• $  325,280:  Amy Compton-Phillip
• $  312,664:  Mike Waters
• $  198,995:  Todd Czartoski
• $  186,674:  John Whipple
• $  145,165:  Preston Simmons
• $  142,637:  David Brown
• $  102,897:  Daren Reddick

To read the IRS Form 990 (2022) for PH&S, click here.