Executive Compensation at the Texas Children’s Hospital (2023)

The Texas Children’s Hospital (TCH) is a tax-exempt non-profit 501 (c) 3 organization that is one of the nation’s largest and most comprehensive pediatric and women’s health care organizations in the US.  With more than 14,000 employees that work across 40 subspecialties, TCH is he academic partner and the principal teaching site for the Baylor School of Medicine, in Bellaire, Texas.

Key financial information about TCH includes:

• In 2023, TCH reported total revenue of $3.8 billion, most of which came from net patient service revenue ($2.9 billion), medicaid and supplemental reimbursements ($453 million), and pharmacy revenue ($229 million).
• Expenses totaled $3.6 billion (including $153 million in depreciation) with the largest expense reported to be compensation ($1.5 billion), fees for services ($687 million) that are not detailed in Schedule O, “enhanced mission support” ($414 million), pharmaceutical supples ($281 million), office-related expenses ($274 million), and medical and surgical supplies ($185 million).
• TCH has $5.3 billion in net assets.

14,387 employees received $1.5 billion in compensation, which equates to an average of $104,000.  However, it is important to note TCH used outside employment agencies also for staffing needs and spent more than $60 million with two employment agencies in 2023.

3,796 employees received more than $100,000 in compensation.  The 19 most highly compensated were reported to be:

• $7,669,992:  Mark Wallace, Board Member, Chair, President, and CEO
• $2,746,652:  Weldon W Gage, Board Member, EVP, CFO
• $2,436,027:  Myra L Davis, SVP, Chief Info and Innovation Officer
• $2,252,417:  Mark W Mullarkey, Board Member, EVP (thru 2/24/23)
• $2,241,677:  Michelle M Riley-Brown, Board Member (thru 3/30/23), EVP (thru 4/15/23)
• $2,218,628:  Linda W Aldred, SVP,Chief HR Officer
• $2,176,341:  Thierry AGM Huisman, Board Member, Physician, In-Chief*
• $1,964,896:  Lance A Lightfoot, Board Secretary (thru 3/8/23), SVP
• $1,953,401:  Keith C Nelson, SVP Chief Investment Officer
• $1,944,711:  Tabitha L Rice, Board Member, EVP
• $1,723,678:  Daniel R Diprisco, Board Member, EVP
• $1,410,515:  James Versalovic, Board Member,Physician, In-Chief
• $1,271,597:  Matthew T Girotto, Board Member, SVP
• $1,086,000:  Michael Belfort, Board Member, Physician, In-Chief
• $  915,783:  Jacqueline R Ward, Board Member, SVP, Chief Nursing Officer
• $  829,193:  Stanley W Spinner, VP, Chief Medical Officer, Physician
• $  825,776:  Dean B Andropoulos, Board Member, Physician, In-Chief
• $  754,958:  Ivett T Shaw, SVP (thru 9/27/22)
• $  524,776:  Aisha Jamal, Board Secretary, VP

The 19 highly compensated employees received $37 million in compensation.  The most highly compensated employee was Mark Wallace, the President and CEO who received $7.7 million in compensation in 2023; and $37 million from 2018-2023:

Mark Wallace:  Total Compensation 2018-2023:  $37 million

• 2023: $7,669,992
• 2022:  $8,847,132
• 2021:  $4,866,755
• 2020:  $5,248,650
• 2019:  $7,438,655
• 2018:  $2,959,074

TCH paid for first class or charter travel.  See the Form 990, Schedule J, Part III Supplemental Information for specific details.

273 independent contractors received more than $100,000 in compensation.  The five (5) most highly compensated were reported to be:

• $95 million:  Baylor College of Medicine, of Houston, TX for physician and faculty services
• $72 million:  McKesson Plasma and Biologics, of Chicago, IL for health solutions
• $43 million:  Trusted Health, of San Francisco, CA for employment agency
• $42 million:  McKesson Corp, of San Francisco, CA for health solutions
• $19 million:  Rightsourcing, Inc, of LA, CA for employment agency

To read the Form 990 (2022 for the year ending Sept 30, 2023), click here.