Executive Compensation at NorthShore University HealthSystem (2022)

NorthShore University Health System (NorthShore) is a healthcare delivery system (tax-exempt and non-profit) that includes 6 hospitals (Evanston, Glenbrook, Highland Park, Northwest Community, Skokie and Swedish) and more than 140 healthcare locations in the Chicago area.

Headquartered in Evanston, IL, Northshore is affiliated with the University of Chicago Pritzker School of Medicine.  And, finally it is important to note that NorthShore is part of Endeavor Health, who united 9 regional hospitals and 300 care centers across Chicago through NorthShore, Edward-Elmhurst Health, Northwest Community Healthcare, and Swedish Hospital in 2022 creating the third largest healthcare system in the State of Illinois.

Key information reported on the Form 990 (2022) includes:

• Total revenue was $2 billion, which primarily came from patient revenue ($1 billion) and Medicare and Medicaid ($700 million).
• Total expenses were $2 billion (including $84 million in depreciation) with the highest expenses reported to be compensation ($898 million), medical supplies ($419 million), and fees for outside services ($250 million).
• Net assets were $3.2 billion at year-end (note:  at the beginning of the year net assets were $3.8 million but after adjusting for $700 million in net unrealizable losses that were partially offset by excess revenue and other changes in net assets, there was a $600 million deterioration in net assets in 2022).
• Northshore has 16 voting members (directors) of the governing body, 8 of whom are independent.  17 are listed on the Form 990 due to timing differences.  13 of the 17 (76%) are male while 4 of the 17 (24%) are female.
• 13,278 employees received $898 million in compensation, which equates to an average of $68,000.
• 1,734 employees received more than $100,000 in compensation.
• NorthShore paid for first class travel.

The 37 most highly compensated employees are listed below:

• $4,759,273:  Gerald P Gallagher, President and CEO
• $1,943,196:  Julian E Bailes, Clinical Chairman, Neurosurgery*
• $1,814,246:  Sean O’Grady, Director and President, North Region and Institutes
• $1,700,290:  Jason L Koh, Clinical Chairman, Orthopedics
• $1,643,351:  Douglas E Welday, System Treasurer and CFO
• $1,571,685:   Mahalakshmi Halasyamani, Director and System Chief Clinical Officer
• $1,467,067:  Mark S Talamonti,  Director and Clinical Chairman, Surgery*
• $1,398,896:  John Erwin III, Board Vice Chairman and Clinical Chairman, Medicine*
• $1,226,021:  Joseph Golbus, Director*
• $1,216,285:  Robert R Edelman, Clinical Chairman, Radiology*
• $1,062,578:  Kristen Murtos, Chief Innovation and Transformation Officer
• $1,031,810:  Richard K Silver, Clinical Chairman, Obstetrics and Gynecology*
• $1,017,780:  William D Bloomer, Clinical Chairman, Radiation Medicine*
• $  925,845:  Neil S Freedman, Director*
• $  909,224:  Shivani Bautista, Secretary and Chief Legal Officer
• $  902,024:  Douglas M Silverstein, President, Evanston Hospital
• $  889,558:  Karen L Kaul, Director and Clinical Chairman, Pathology and Lab Medicine*
• $  876,186:  Michael S Caplan, Director and Clinical Chairman, Pediatrics*
• $  875,285:  Dianna Sparacino, System Chief People Officer
• $  795,669:  Mohammed Minhaj, Clinical Chairman, Anesthesiology
• $  783,625:  Steven Smith, Chief Information Officer
• $  742,848:  Jesse Peterson Hall, President, Glenbrook Park Hospital
• $  725,518:  David Rahija, President, Skokie Hospital
• $  717,847:  Gabrielle Cummings, President, Highland Hospital
• $  612,698:  Susan Rubin, Clinical Chairman, Neurology*
• $  612,427:  John Tressa, Director and Chief Nursing Officer*
• $  589,520:  Frederick Miller, Clinical Chairman, Psychiatry*
• $  533,994:  Scott Kenagy, SVP,Chief Investment Officer
• $  502,659:  Jianfeng Xu, VP, Translational Research
• $  501,181:  Jeffrey Biesczat, SVP, Finance and Controller
• $  499,004:  Rajiv Udani, Hospitalist
• $  489,732:  Wanda Cruz-Knight, Clinical Chairman, Family Medicine*
• $  463,006:  George Mallios, Hospitalist
• $  456,795:  Brian Washa, SVP, Business Services and Purchasing
• $  453,907:  Mignonette Eleanor Broeker, SVP, Health Information Technology
• $  424,798:  Lidiya Golub, Hospitalist
• $  404,457:  Harry L Jones, Chief Compliance Officer

A “*” indicates a portion or all of compensation was paid from a related/affiliated organization

The 37 most highly compensated employees received $38 million in compensation or, on average, $1 million in 2022.  28 of the 37 (76%) most highly compensated employees are male while 9 of the 37 (24%) are female.  The 10 most highly compensated employees are male and received $77 million in compensation from 2018-2022:

Gerald P Gallagher:  Total Compensation 2018-2022:  $16 million

• 2022: $4,759,273
• 2021:  $4,385,650
• 2020:  $2,374,915
• 2019:  $2,960,343
• 2018:  $1,861,696

Julian E Bailes:  Total Compensation 2018-2022:  $10 million

• 2022: $1,943,196
• 2021:  $1,990,418
• 2020:  $1,852,954
• 2019:  $1,815,619
• 2018:  $1,807,194

Sean O’Grady:  Total Compensation 2018-2022:  $10 million

• 2022: $1,814,246
• 2021:  $3,494,949
• 2020:  $1,450,050
• 2019:  $1,712,435
• 2018:  $1,138,894

Jason L Koh:  Total Compensation 2018-2022:  $8 million

• 2022: $1,700,290
• 2021:  $1,861,054
• 2020:  $1,506,146
• 2019:  $1,594,830
• 2018:  $1,556,498

Douglas E Welday:  Total Compensation 2018-2022:  $7 million

• 2022: $1,643,351
• 2021:  $1,941,301
• 2020:  $1,304,656
• 2019:  $1,455,729
• 2018:  $  211,698

Mahalakshmi Halasyamani:  Total Compensation 2018-2022:  $7 million

• 2022: $1,571,685
• 2021:  $1,829,343
• 2020:  $  874,258
• 2019:  $1,110,562
• 2018:  $  971,679

Mark S Talamonti:  Total Compensation 2018-2022:  $8 million

• 2022: $1,467,067
• 2021:  $1,547,723
• 2020:  $1,441,854
• 2019:  $1,505,777
• 2018:  $1,474,543

John Erwin III:  Total Compensaation 2020-2022:  $4 million

• 2022: $1,398,896
• 2021:  $1,670,137
• 2020:  $1,198,412

Joseph Golbus:  Total Compensation 2022:  $1 million

• 2022: $1,226,021

Robert R Edelman:  Total Compensation 2018-2022:  $6 million

• 2022: $1,216,285
• 2021:  $1,339,760
• 2020:  $1,178,985
• 2019:  $1,284,838
• 2018:  $1,235,913

NorthShore paid for first class travel.  For more detail on this expense and information on the supplemental non-qualified retirement pan, see the Form 990, Schedule J, Part III, Supplemental Information.

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

• $66 million:  Aramark Management Services, of Chicago, IL for facillities/diet management
• $21 million:  University of Chicago Medical Center, of Chicago, IL for medical education
• $19 million:  Sodexo, of Brentwood, TN for repairs and maintenance
• $16 million:  Pepper Construction Company, of Barrington, IL for construction management
• $ 8 million:  Kelly, Scott and Madison, of Chicago, IL for media and marketing

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