Executive Compensation at Bon Secours Mercy Health (2022)

Bon Secours Mercy Health (BSMH) became one of the largest Catholic healthcare providers serving communities in Ohio, Kentucky, New York, Maryland, Virginia, South Carolina, and Florida when merged with Mercy Health in September, 2018.

A tax-exempt, non-profit healthcare system that consists of nearly 1,400 non-hospital healthcare facilities including 58 tax-exempt organizations, 40 organizations taxable as a partnership, and 48 organizations taxable as a corporation or trust, BSMH reports the net patient revenue from 27 hospitals and other care facilities through BSMH, along with management fees paid to BSMH for network management.

This post is limited to the executive compensation reported by BSMH.

BSMH reported total revenue of $8.2 billion in 2022 (compared to $7.6 billion in 2021 and $7 billion in 2020) most of which was net patient revenue ($6.2 billion), “exempt function income” ($1.2 billion), “market assessments and corporate management fees ($306 million), and investment income and gains ($188 million), and retail pharmacy ($107 million).

Expenses in 2022 totaled $8.6 billion  (including $311 million in depreciation) with the two largest expenses reported to be compensation ($4.3 billion), medical supplies ($1.1 billion), and fees for services – no detail provided beyond classifying the fees as management, fundraising, and program ($1.3 billion).

68,663 employees (10,000 more than in 2021 when 63,853 employees received $3.6 billion in compensation) received  $4.3 billion in compensation in 2022 which equates to an average compensation of $63,000.  6,062 employees received more than $100,000 in compensation with the 24 most highly compensated reported to be:

• $11,580,768:  John Starcher, Jr, President and CEO
• $ 3,112,770:  Brian Smith, EVP, COO (end 2022)
• $ 2,945,669:  Deborah Bloomfield, CFO, Board Treasurer
• $ 2,768,742:  Kenechuwu Ugowe, Neurosurgeon
• $ 2,630,864:  Manish Patel, Orthopedic Surgeon
• $ 2,562,363:  Wael Haidar, Chief Clinical Officer
• $ 2,436,306:  Michael Bezney, Chief Legal Officer and General Counsel
• $ 2,331,527:  Sameh Arebi, Orthopedic Surgeon
• $ 1,938,572:  Zoheir Abdelbaki, Cardiologist
• $ 1,930,923:  David A Cannady, Chief Strategy Officer
• $ 1,854,346:  Joseph Martin, Bariatric Surgeon
• $ 1,835,880:  Donald Kline, COO (beg 7/22)
• $ 1,756,467:  Joseph Gage, Jr., SVP, Chief HR Officer
• $ 1,710,822:  Jason Szczuka, Chief Digital Officer
• $ 1,407,000:  Staci Lucius, President, BSMH Medical Group
• $ 1,324,925:  Laishy Williams-Carlson, Chief Information Officer*
• $ 1,244,304:  Jerome Judd, VP, Treasurer
• $ 1,208,591:  Jason Siegert, Former Key Chief Ventures Officer
• $ 1,125,444:  Andrea Mazzoccoli, Chief Nursing Officer
• $ 1,089,553:  Matthew Eversole, Chief Information Officer (beg 1/2021; end 8/22)
• $   939,997:  Daniel Hurry, Former Key Chief Supply Chain Officer *
• $   691,308:  Samuel Ross, Chief Community Health Officer
• $   673,820:  Donna Abbondandolo, Chief Compliance Officer
• $   632,575:  Fr Joseph Cardone, Chief Mission Officer

The 24 most highly compensated employees received $52 million in 2022 with the most highly compensated employee being John Starcher, the President and CEO who received nearly $12 million.  10 of the most highly compensated employees received more than $135 million from 2017-2022 (note:  highly compensated employees in 2017-2021 but not in 2022 are not listed below):

John Starcher:  Total Compensation 2017-2022:  $48 million

• 2022:  $11,580,768
• 2021:  $ 6,210,476
• 2020:  $ 6,061,369
• 2019: $15,773,699
• 2018:  $ 3,255,988
• 2017:  $ 5,580,929

Brian Smith:  Total Compensation 2017-2022:  $16 million

• 2022:  $3,112,770
• 2021:  $2,841,291
• 2020:  $2,928,217
• 2019:  $3,318,912
• 2018:  $1,646,569
• 2017:  $2,444,359

Deborah Bloomfield:  Total Compensation 2017-2022:  $14 million

• 2022:  $2,945,669
• 2021:  $2,564,447
• 2020:  $2,447,405
• 2019:  $2,698,484
• 2018:  $1,366,053
• 2017:  $1,964,692

Kenechuwu Ugowe:  Total Compensation 2022:  $3 million

• 2022: $ 2,768,742:

Manish Patel:  Total Compensation 2020-2022:  $7 million

• 2022:  $2,630,864
• 2021:  $2,584,948
• 2020:  $1,517,159

Wael Haider: Total Compensation 2018-2022: $11 million

• 2022:  $2,562,363
• 2021:  $2,028,296
• 2020:  $2,013,417
• 2019:  $1,966,744
• 2018:  $1,935,719

Michael Bezney:  Total Compensation 2017-2022:  $13 million

• 2022:  $2,436,306
• 2021:  $2,130,574
• 2020:  $2,688,564
• 2019:  $2,816,183
• 2018:  $1,230,387
• 2017:  $1,672,624:

Sameh Arebi:  Total Compensation 2021-2022:  $4 million

• 2022:  $2,331,527
• 2021:   $1,981,305

Zoheir Abdelbaki: Total Compensation 2017-2022:  $11 million

• 2022:  $1,938,572
• 2021:  $1,936,835
• 2020;  $1,818,301
• 2019:  $1,884,812
• 2018:  $1,531,424
• 2017:  $1,815,374

David Cannady: Total Compensation 2018-2022:  $8.5 million

• 2022:  $1,930,923
• 2021: $1,845,143
• 2020: $1,818,068
• 2019:  $1,651,305
• 2018:  $1,245,415

As illustrated above, 9 of the 10 most highly compensated employees are male while 1 is female. 19 of the 24 (79%) most highly compensated employees are male while 5 of the 24 (21%) are female.

BSMHI paid for first class or charter travel, travel for companions, personal services (i.e. maid chauffeur, chef) and health or social club dues or initiation fees.  For more information on these expenses and contributions to non qualified supplemental retirements and deferred compensation plans, see the Form 990, Schedule J, Supplemental Information.

2,073 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

• $595million:  Cardinal Health, of Chicago, IL for medical products and services
• $401 million:  Ensemble RCM LLC, of Huntersville, NC for revenue cycle services
• $269 million:  Medline Industries, of Pittsburgh, PA for medical products and services
• $131  million:  US Bank Corporate Trust, of St Paul, MN for financial services
• $ 83   million:  Trustaff Travel Nurse, of Cincinnati, IL for staffing

At year-end 2022, BSMH had $3.1 billion in net assets, compared to $4.7 billion at year-end 2021.  The $1.6 billion decline is attributable to spending $400 million more than the organization collected, $700 million in net unrealizable losses on investments, and a negative $500 million adjustment to net assets (i.e equity transfers, land acquisition, pension liability, and elimination of intracompany balances).

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