Executive Compensation at NorthShore University Health System (2023)

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.

The Form 990 (2023) for NorthShore indicates the legal tax name has been changed to “Endeavor Health Clinical Operations.”  Key information reported on the Form 990 includes:

• Total revenue was $2.2 billion, which primarily came from health care services ($1.8 billion).
• Total expenses were $2.1 billion (including $96 million in depreciation) with the highest expenses reported to be compensation ($870 million), medical supplies ($446 million), and fees for outside services ($358 million).
• Net assets were $3.6 billion at year-end (note:  at the beginning of the year net assets were $3.2 million but after adjusting for unspent revenue ($33 million), $400 million in net unrealizable gains that were partially offset by other changes in net assets (-$23 million), net assets increased to $3.6 billion).
• 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.  12 of the 17 (71%) are male while 5 of the 17 (29%) are female.
• 13,018 employees received $870 million in compensation, which equates to an average of $67,000.
• 3,125 employees received more than $100,000 in compensation.
• NorthShore paid for first class travel.

The 36 most highly compensated employees are listed below:

• $6,283,529:  Gerald P Gallagher, President and CEO
• $3,308,553:  Sean O’Grady, Director and President, North Region and Institutes
• $2,241,099:  Mahalakshmi Halasyamani, Director and System Chief Clinical Officer
• $2,109,419:  Kristen Murtos, Chief Innovation and Transformation Officer
• $2,034,913:  Douglas E Welday, System Treasurer and CFO
• $2,031,657:  Julian E Bailes, Clinical Chairman, Neurosurgery*
• $1,822,789:  Jason L Koh, Clinical Chairman, Orthopedics
• $1,637,643:  Mark S Talamonti,  Director and Clinical Chairman, Surgery*
• $1,481,654:  Steven Smith, Chief Information Officer
• $1,438,437:  John Erwin III, Board Vice Chairman and Clinical Chairman, Medicine*
• $1,396,370:  Dianna Sparacino, System Chief People Officer
• $1,381,500:  Douglas M Silverstein, President, Evanston Hospital
• $1,302,098:  Robert R Edelman, Clinical Chairman, Radiology*
• $1,161,089:  Gabrielle Cummings, President, Highland Hospital
• $1,155,487:  Jesse Peterson Hall, President, Glenbrook Park Hospital (until 12/31/23)
• $1,144,804:  David Rahija, President, Skokie Hospital
• $1,120,868:  Richard K Silver, Clinical Chairman, Obstetrics and Gynecology*
• $1,038,114:  John Tressa, Director and Chief Nursing Officer*
• $  999,739:  Michael S Caplan, Director and Clinical Chairman, Pediatrics*
• $  993,702:  William D Bloomer, Clinical Chairman, Radiation Medicine*
• $  983,972:  Karen L Kaul, Director and Clinical Chairman, Pathology and Lab Medicine*
• $  980,127:  Neil S Freedman, Director*
• $  977,635:  Mohammed Minhaj, Clinical Chairman, Anesthesiology
• $  908,326:  Anne Martino, Chief Marketing Officer
• $  760,881:  Ramon Solhkhah, Clinical Chair, Psychiatry (beg 2/1/23)
• $  729,048:  Scott Kenagy, SVP,Chief Investment Officer
• $  722,795:  Heath Bell, SVP, HIT Applications
• $  712,612 :  Harry L Jones, Chief Compliance Officer
• $  710,973:  Susan Rubin, Clinical Chairman, Neurology*
• $  701,763:  Shivani Bautista, Secretary and Chief Legal Officer
• $  624,799:  Jianfeng Xu, VP, Translational Research
• $  617,397:  Brian Washa, SVP, Business Services and Purchasing
• $  568,131:  Jeffrey Biesczat, SVP, Finance and Controller
• $  564,752:  Frederick Miller, Clinical Chairman, Psychiatry*
• $  504,519:  Rajiv Udani, Hospitalist
• $  500,222:  Mignonette Eleanor Broeker, SVP, Health Information Technology

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

The 36 most highly compensated employees received $50 million in compensation or, on average, $1.4 million each in 2023.  29 of the 36(81%) most highly compensated employees are male while 7 of the 36 (19%) are female.

The most highly compensated employee was Gerald Gallagher who received more than $6 million in 2023 and $23 million from 2018-2023:

Gerald P Gallagher:  Total Compensation 2018-2023:  $23 million

• 2023:  $6,283,529
• 2022: $4,759,273
• 2021:  $4,385,650
• 2020:  $2,374,915
• 2019:  $2,960,343
• 2018:  $1,861,696

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.

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

• $51 million:  Aramark Management Services, of Chicago, IL for facillities/diet management
• $15 million:  University of Chicago Medical Center, of Chicago, IL for medical education
• $18 million:  Sodexo, of Brentwood, TN for repairs and maintenance
• $89 million:  Pepper Construction Company, of Barrington, IL for construction management
• $10  million:  SPN Marketing Communications, of  La Grange, IL for media and marketing

To read the Form 990 (2023), click here.