Executive Compensation at Scripps Health (2022)

Scripps Health is a non-profit, tax-exempt 501 (c) (3) healthcare provider that includes hospitals (4), clinics, medical centers, urgent care facilities, walk-in clinics, hospice care, surgery centers, specialty care centers and health plans. Although “Scripps Health” often refers to an entire healthcare system, it is important to point out that Scripps Health consists of many organizations – both non-profit and for-profit.

The executive compensation reported on the Form 990 (2021 for the year ending September 30, 2022) for “Scripps Health,” the non-profit, tax-exempt 501 (c) (3) – a single entity – is the subject of this post. Governed by 20 voting members (trustees) of a  board, 19 of whom are independent, board composition is 14 (70%) males and 6 (30%) females (note: the Form 990 does not report gender; determinations were made based on name and google searches).

Based in San Diego, California, Scripps Health reported $4.1 billion in revenue (compared to $3.8 billion in 2021, $3.5 billion in 2020, and $3.2 billion in 2019) most of which came from the delivery of healthcare.

Expenses totaled $3.8 billion (including $208 million in depreciation) with the largest expenses being compensation ($1.6 billion), fees for services ($897 million), and medical supplies ($657 million).

At year-end, net assets were $4.8 billion  (compared to $5.3 billion at year end 2021) – primarily because of a $754 million net unrealizable loss on investments that was partially offset by the organization not spending as much as revenue  reported.

19,571 employees received $1.6 billion in compensation in 2022, which equates to an average compensation of $82,000. 3,953 employees received more than $100,000 in compensation with the 25 most highly compensated employees reported to be:

• $2,784,883:  Christopher Van Gorder, President and CEO/Trustee
• $2,281,921:  Richard Rothberger, Treasurer/Corp Exec VP/CFO (thru 5/22)
• $1,693,224:  Carl Etter, Chief Executive, SVP
• $1,303,653:  Ghazala Sharieff, Corp SVP Acute Care/Clin E
• $1,155,362:  June Komar, Corp EVP, Strategy and Admin
• $1,144,430:  Anil Keswani, Corp SVP, Chief Medical Officer
• $1,130,056:  Thomas Buchholz, Corp SVP
• $1,122,812:  Thomas Gameiere, Chief Executive, SVP
• $1,096,957:  Barbara Price, Coporate SVP, Business and Serv Line Dev
• $1,010,967:  Richard Neale, Corporate Executive, VP, Chief Growth Officer
• $  851,804:  John Engle, Corp SVP, Chief Development Officer
• $  797,649:  Eric Cole, Corp SVP, HR
• $  761,323:  Bradley Ellis, Corp VP, Asst General Counsel
• $  754,732:  Shane Thielman, Corp SVP, CIO
• $  738,043:  Mary Ellen Doyle, Corporate VP, Nursing Ops
• $  699,363:  Lisa Risser-Thakur, Corporate SVP, Ancillary Ops
• $  693,944:  Richard McKeown, Corp VP, Treasury
• $  664,020:  John Poole, Corporate VP, System Improvement
• $  661,030:  Shawn Forrester, Corp VP, Payer Relations
• $  627,715:  Gerald Soderstrom, Corp VP, Audit Compliance
• $  625,841:  Tracy Chu, Corp VP, Pop Health Chief Exec/ACO
• $  572,111:  Shiraz Fagan, Former Chief Executive, SVP
• $  567,317:  Christee Thomas, Corp VP, Revenue Cycle/CNT Business Office
• $  386,477:  James LaBelle, Corp SVP, Chief Medical Officer
• $  332,260:  Richard R Sheridan, Former Sec/CorpSVP-HR/General Counsel

 18 of the 25 (72%) most highly compensated employees are male while 7 of the 25 (28%) are female. 7 of the 10 most highly compensated employees are male while 3 are female. The most highly compensated employee was Christopher Van Gorder who received $2.8 million in 2022, and $24 million in compensation from 2017-2022.  The 10 most highly compensated employees received nearly $80 million from 2017-2022:

Christopher Van Gorder:  Total Compensation 2017-2022:  $24 million

• 2022:  $2.8 million
• 2021:  $2.8 million
• 2020:  $2.5 million (estimated)
• 2019:  $2.4 million
• 2018:  $9.8 million
• 2017:  $3.4 million

Richard Rothberger:  Total Compensation 2017-2022:  $11 million

• 2022:  $2.3 million
• 2021:  $1.7 million
• 2020:  $1.6 million
• 2019:  $1.9 million
• 2018:  $2.0 million
• 2017:  $1.7 million

Ghazala Sharieff:  Total Compensation 2021-2022:  $2 million

• 2022:  $1.3 million
• 2021:  $0.8 million

June Komar:  Total Compensation 2017-2022:  $11 million

• 2022:  $1.2 million
• 2021:  $1.0 million
• 2020:  $1.1 million
• 2019:  $0.9 million
• 2018:  $5.7 million
• 2017:  $1.2 million

Anil Keswan:  Total Compensation 2022:  $1 million

• 2022:  $1.1 million

Thomas Buchholz:  Total Compensation 2019-2022:  $4.5 million

• 2022:  $1.1 million
• 2021:  $1.4 million
• 2020:  $1.0 million
• 2019:  $0.9 million

Carl Etter:  Total Compensation 2017-2022:  $7 million

• 2022:  $1.7 million
• 2021:  $1.2 million
• 2020:  $1.1 million
• 2019:  $1.0 million
• 2018:  $1.0 million
• 2017:  $0.8 million

Richard Neale:  Total Compensation 2017-2022:  $5.5 million

• 2022:  $1.0 million
• 2021:  $1.2 million
• 2020:  $0.9 million
• 2019:  $0.9 million
• 2018:  $0.8 million
• 2017:  $0.7 million

Thomas Gameiere: Total Compensation 2017-2022:  $6.5 million

• 2022:  $1.1 million
• 2021:  $1.2 million
• 2020:  $1.1 million
• 2019:  $1.0 million
• 2018:  $1.1 million
• 2017:  $1.0 million

Barbara Price:  Total Compensation 2017-2022:  $6 million

• 2022:  $1.1 million
• 2021:  $1.2 million
• 2020:  $1.0 million
• 2019:  $1.0 million
• 2018:  $1.0 million
• 2017:  $0.8 million

Scripps Health pays for the cost of a membership for a business networking club in San Diego for the CEO, which is used for business purposes.

Certain executives receive an automobile allowance which is included as taxable wages.

Scripps Health provided discretionary spending accounts and paid for financial planning services for certain employees,

For more information and details on the retirement plan payments and payouts, and severance payments see the Form 990, Schedule J, Part III, Supplemental Information.

Christopher Van Gorder received a loan of $10,023,866 as deferred compensation. The balance due is $13,230,564.

June Komar received a loan of $2,769,010 as deferred compensation. The balance due is $3,654,834

Richard Sheridan received a loan of $4,063,606 as deferred compensation. The balance due is $5,363,580.

Scripps did business with substantial contributors.  For detail on these transactions, see the Form 990, Schedule L, Part IV, Business Transactions Involving Interested Persons.

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

• $383 million:  Scripps Clinic Medical Group, of La Jolla, CA for physician services
• $ 70  million:  Scripps Coastal Medical Group, of San Diego, CA for physician services
• $ 36 million:  Medimpact Healthcare Systems, of San Diego, CA for pharmaceutical services
• $ 42 million:  Scripps Health Inpatient Provider, of San Diego, CA for physician services
• $ 14 million:  Emergency Acute Care Med Corp, of San Diego, CA for physician services

To read the IRS Form 990 (2021 for the year ending September 30, 2022), click here.