Executive Compensation at Advocate Health (2022)

Advocate Health and Hospitals Corp is a tax-exempt non-profit 501 (c) (3) and one of many organizations within Advocate Aurora Health (which was formed when Advocate Health Care (in Illinois) and Aurora Health (in Wisconsin) merged into one healthcare system (Advocate Aurora Health) in 2018. Based in Downers Grove, Illinois, AAH operates 67 hospitals in six (6) states with more than 1,000 out patient care sites staffed by 150,000 employees.

It is important to note AAH consists of numerous types of organizations including non-profits and for profit organizations. This post addresses the executive compensation at AHHC – one of the largest organizations in the network.

Advocate Health and Hospitals Corp (AHHC) is governed by 12 voting members (directors), 8 of whom are independent;  8 of the 12 (67%) are male while 4 of the 12 (3%) are female. 10 of the directors receive between $8,000 – 7.6 million annually for an average of 1 hour of work per week in the organization and 55 hours a week in other related organizations.

Three key points:

• The 32 most highly compensated employees received $50 million in compensation in 2022;
• The most highly compensated employee, James Skogsbergh received more than $8 million in 2022 and $50 million in compensation fro 2017-2022; and
• The 23 most highly compensated employees received more than $230 million from 2017-2022.

In 2022, AHHC reported total revenue of $6.7 billion, with the 5 primary sources of revenue reported to be:

• $2.0 billion:  Medicare/Medicaid
• $1.4 billion:  Patient Services
• $1.3 billion:  Blue Cross/Managed Care
• $1.2 billion:  Pharmacy/Lab
• $0.7 billion:  Investment Income and Gains

Expenses totaled $6 billion (not including $200 million in depreciation) with the 6 largest expenses reported to be:

• $3.0 billion: Compensation
• $  746 million:  Medical Supplies
• $  970 million:  Other Intracompany Expenses
• $  357 million:  Fees for Services
• $  418 million:  Other Expenses (no detail provided)
• $  300 million:  Office-related Expenses

As listed above, compensation is the largest expense.  34,684 employees received $3 billion, which equates to an average compensation of $87,000.

The 32 most highly compensated employees were reported to be:

• $8,225,986  James Skogsbergh, President and CEO, Director*
• $3,319,760:  William P Santulli, Former EVP, COO*
• $2,518,665:  Dominic J Nakis, Treasurer*
• $1,988,414:  Jeff Bahr, Assistant Secretary*
• $1,898,306:  Hamad Farhat, Neurosurgeon
• $1,830,905:  Michael Farrell, President of Advocate Children’s Hospital
• $1,827,405:  Barbara Byrne, Former Chief Information Officer*
• $1,686,808:  Dominica Tallarico, VP*
• $1,656,403:  Gary Stuck, Former Chief Medical Officer*
• $1,544,518:  Kevin Brady, Former Chief HR Officer*
• $1,536,834:  Marcus Talerico, Physician Orthopedics
• $1,470,945:  Michael Grebe, Assistant Secretary, Chief Legal Officer*
• $1,460,024:  Kelly Jo Golson, Former Chief Marketing Officer*
• $1,420,960:  Egon Doppenberg, Former HCE Neurosurgeon
• $1,414,817:  Scott Powder, Former Chief Strategy Officer*
• $1,395,530:  Dean Karahalios, Neurosurgeon
• $1,384,921:  Demetrius Lopes, Neurosurgeon
• $1,351,925:  Karen Lambert, Former President of Good Shepherd Hospital
• $1,219,533:  Vincent Bufalino, Former Chief Advocate Medical Group Officer*
• $1,172,933:  Nan Nelson, Assistant Treasurer*
• $1,127,407:  Ryan Trombly, Neurosurgeon
• $1,036,363  Mike Lappin, Former Secretary*
• $1,000,545:  Leslie Lenzo, Former Assistant Treasurer
• $  984,886:  Rachelle Hart, Assistant Secretary*
• $  856,741:  Kathy Bender Schwich, Former Chief Spiritual Officer*
• $  768,159:  James Doheny, Assistant Treasurer*
• $  710,327:  Richard Heim, Former President, Christ Medical Center
• $  685,864:  Michael Kerns, Assistant Secretary*
• $  683,940:  Carrie Donovan, Assistant Treasurer
• $  614,001:  Steve Huser, Assistant Treasurer*
• $  613,448:  James Slinkman, Assistant Secretary*
• $  587,351:  Rashard Johnson, President of Trinity and SS

The 32 most highly compensated employees received $50 million in compensation in 2022.  23 of the 32 (72%) are male while 9 of the 32 (28%) are female. 8 of the 10 most highly compensated employees are male.

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

The most highly compensated employees (who received more than $1 million in compensation in 2022) received $233 million from 2017-2022:

James Skogsbergh:  Total Compensation 2017-2022:  $50 million

• 2022:  $ 8,225,986
• 2021:  $ 7,763,312
• 2020:  $ 6,819,943
• 2019:  $ 5,964,082
• 2018:  $ 8,511,655
• 2017:  $11,728,456

William P Santulli:  Total Compensation 2017-2022:  $21 million

• 2022:  $3,319,760
• 2021:  $3,328,224
• 2020:  $2,999,669
• 2019:  $3,438,990
• 2018:  $4,015,559
• 2017:  $3,933,829

Dominic J Nakis:  Total Compensation 2017-2022:  $15 million

• 2022:  $2,518,665
• 2021:  $2,480,331
• 2020:  $2,224,385
• 2019:  $2,595,828:
• 2018:  $2,689.841
• 2017:  $2,053,139

Jeff Bahr:  Total Compensation 2022:  $2 million

• 2022:  $1,988,414

Hamad Farhat:  Total Compensation 2017-2022:  $12 million

• 2022:  $1,898,306
• 2021:  $1,955,446
• 2020:  $2,015,232
• 2019:  $1,975,696
• 2018:  $1,795,969
• 2017:  $1,779,951

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

• 2022:  $1,830,905
• 2021:  $1,793,874
• 2020:  $1,605,954
• 2019:  $1,604,761
• 2018:  $2,298,969
• 2017:  $3,262,790

Barbara Byrne:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,827,405
• 2021:  $1,587,260
• 2020:  $1,403,582
• 2019:  $1,512,608
• 2018:  $1,092,341
• 2017:  $  461,844

Dominica Tallarico:  Total Compensation 2017-2022:  $9 million

• 2022:  $1,686,808
• 2021:  $1,528,693
• 2020:  $1,336,204
• 2019:  $1,137,128
• 2018:  $1,531,013
• 2017:  $1,228,727

Gary Stuck:  Total Compensation 2018-2022: $5 million

• 2022:  $1,656,403
• 2021:  $1,520,560
• 2020:  $1,269,699
• 2019:  $  742,006
• 2018:  $  240,969

Kevin Brady:  Total Compensation 2017-2022:  $10 million

• 2022:  $1,544,518
• 2021:  $1,528,801
• 2020:  $1,386,106
• 2019:  $1,709,217
• 2018:  $1,859,488
• 2017:  $1,425,299

Marcus Talerico:  Total Compensation 2021-2022:  $3 million

• 2022:  $1,536,834
• 2021:  $1,652,648

Michael Grebe:  Total Compensation 2018-2022:  $5 million

• 2022:  $1,470,945
• 2021:  None Listed
• 2020:  $1,313,006
• 2019:  $1,560,158
• 2018:  $1,086,072

Kelly Jo Golson,:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,460,024
• 2021:  $1,341,586
• 2020:  $1,134,681
• 2019:  $1,344,536
• 2018:  $1,214,999
• 2017:  $  925,706

Egon Doppenberg:  Total Compensation 2017-2022:  $9 million

• 2022:  $1,420,960
• 2021:  $1,336,165
• 2020:  $1,250,408
• 2019:  $1,269,405
• 2018:  $2,243,884
• 2017:  $1,132,584

Scott Powder:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,414,817
• 2021:  $1,401,223
• 2020:  $1,268,974
• 2019:  $1,539,091
• 2018:  $1,430,156
• 2017:  $1,073,372

Dean Karahalios:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,395,530
• 2021:  $1,377,710
• 2020:  $1,350,363
• 2019:  $1,262,196
• 2018:  $1,243,065
• 2017:  $1,247,822

Demetrius Lopes:  Total Compensation 2019-2022:  $6 million

• 2022:  $1,384,921
• 2021:  $1,398,743
• 2020:  $1,375,360
• 2019:  $1,365,406

Karen Lambert:  Total Compensation 2017-2022:  $8 million

• 2022:  $1,351,925
• 2021:  $1,306,457
• 2020:  $1,206,974
• 2019:  $1,196,710
• 2018:  $1,497,213
• 2017:  $1,244,878

Vincent Bufalino:  Total Compensation 2017-2022:  $10 million

• 2022:  $1,219,533
• 2021:  $1,601,650
• 2020:  $1,428,790
• 2019:  $1,743,015
• 2018:  $1,938,807
• 2017:  $2,265,620

Nanine Nelson:  Total Compensation 2018-2022:  $4 million

• 2022:  $1,172,933
• 2021:  None Listed
• 2020:  $  911,636
• 2019:  $1,239,758:
• 2018:  $1,004,157

Ryan Trombly:  Total Compensation 2017-2022:  $6 million

• 2022:  $1,127,407
• 2021:  None Listed
• 2020:  $1,181,474
• 2019:  $1,303,318
• 2018:  $1,080,455
• 2017:  $1,067,763

Michael Lappin:  Total Compensation 2018-2022:  $8 million

• 2022:  $1,036,363
• 2021:  $1,363,288
• 2020:  $1,768,314
• 2019:  $2,296,068
• 2018:  $2,070,518

Leslie Lenzo:  Total Compensation 2018-2022:  $5 million

• 2022:  $1,000,,545
• 2021:  $1,061,375
• 2020:  $1,009,958
• 2019:  $  921,001
• 2018:  $  688,031

AHHC paid for first class or charter travel, personal services, health or social club dues or initiation fees, and housing allowance or residence for personal use.  For more detail and information on the contributions to the Senior Executive Retirement Plan, see the Form 990, Schedule J, Part III, Supplemental Information.

465 independent contractors received more than $100,000 in compensation with the five highest reported to be:

• $105 million:  Travel Nurse Across America, of North Little Rock, AR for staffing
• $12 million:  University of Chicago, of Chicago, IL for university services
• $10 million:  Midwest Anesthesiologists, of Naperville, IL for medical services
• $ 8 million:   Forward Space, of Wood Dale, IL for consulting
• $ 7 million:  Cardiothoracic and Vascular Surgical, of Modena, IL for medical services

And lastly, it is important to note AHHC reported $5.8 billion in net assets at year-end –  about $700 million lower than the previous year which was primarily due to unrealized losses on investments that were partially offset by $400 million in excess revenue over expenses,

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