Executive Compensation at Providence Health and Services (WA) 2023

Providence Health and Services – Washington (PH&S) is part of the Providence St Joseph Health (PSJH), a non-profit, tax-exempt integrated healthcare provider associated with the Catholic Church. With 51 hospitals and nearly 1,000 clinics staffed by 122,000 employees across seven western states (Washington, Oregon, Montana, New Mexico, California, Texas, and Alaska), the Providence St Joseph Health system came to be when PH&S merged with Providence St. Joseph Health (PSJH), in 2016. (note: PSJH – the overall executive management arm – is the sole member of PH&S).

There are 105 tax-exempt organizations, 42 taxable partnerships, and 41 taxable corporations or trusts that make up the network.  These organizations pay PH&S about $4 billion annually for management and oversight.

PH&S is headquartered in Renton, Washington, has about 45,000 employees (2023), and reported total revenue of $9.8 billion (compared to $9.4 billion in 2022, $9.5 billion in 2021, $8 billion in 2020 and $5 billion in 2019) with the primary sources being net patient revenue ($5.5 billion) – with the emphasis on “net” which means gross revenue was significantly higher and had expenses/adjustments deducted (no detail provided), followed by revenue from affiliates ($4 billion) which is what the affiliates pay for corporate services.

Expenses in 2023 totaled $10.1 billion (including  $458 million in depreciation) are categorized as follows:

• $5.9 billion:  Compensation
• $1.6 billion:  Fees for Services (primarily other, no detail provided)
• $1.0 billion:  Other Expenses (Interest, Travel, Conferences, Advertising)
• $o.9 billion (or $900 million):  Medical Supplies and Hospital Fees
• $0.7 billion (or $700 million):  Office-related Expenses

Note the largest expense is for compensation for the 45,300 employees who received an average compensation of $130,000.  However, only 12,004 employees received more than $100,000 in compensation.  The 41 most highly compensated employees (and former employees) of PH&S were reported to be:

• $6,195,258:  Guy Hudson, Division Chief Executive – North (thru 9/23)
• $5,616,067:  Erik Wexler, President, CEO
• $5,096,572:  Debra Canales, Former EVP, CAO*
• $4,470,578:  Rhonda Medows, Former EVP, Population Health*
• $4,376,765:  Lisa Vance, President, Strategy and Operations North (thru 6/23)
• $3,539,549:  Greg Hoffman, EVP, CFO and Treasurer
• $3,302,551:  JoAnn Escasa-Haigh, Former EVP, Asst Treasurer*
• $3,167,071:  Joel Gilbertson, Division Chief Executive – Central
• $3,133,967:  Wasif Rasheed, Chief Revenue and Growth Officer
• $3,036,961:  Greg Till, Chief People Officer
• $2,427,903:  Kevin Brooks, Division Chief Executive – North
• $2,329,749:  Anna Newsom, EVP and Chief Legal Officer
• $2,234,673:  Ari Robicsek, Chief Analytics Officer
• $2,039,677:  Kevin Manemann, Division Chief Executive South
• $2,017,976:  Amy Compton-Phillips, Former EVP, Chief Clinical Officer*
• $1,999,545:  Hoda Asmar, EVP, Systems Chief Medical Officer
• $1,949,181 :  Orest Holubec, Former SVP, Chief Comm/EXT Affairs Officer*
• $1,910,283:  Jeremy Zoch, Chief Executive SJO
• $1,840,194:  Ali Santore, Chief Admin Officer
• $1,827,028:  Tom Mahowald, CFO Clinical Care
• $1,822,649:  Richard Parks, Executive Advisor
• $1,781,484:  Scott O’Brien, Division COO – Central
• $1,758,200:  PK Khurana, Chief Strategy Officer – Care Delivery
• $1,723,910:  Sara Vaezy, EVP, Chief Marketing/Digital Officer
• $1,620,534:  Mary Cranstoun, SVP, Total Rewards – Talent Acquisition (thru 3/23)
• $1,551,765:  Sylvain Trepanier, SVP Chief Nursing Officer
• $1,305,642:  Ella Goss, Regional Chief Executive – AK
• $1,291,514:  Marybeth Formby, Division CFO – North
• $1,115,622:  Jim Watson, Assistant Secretary*
• $1,067,492:  Darin Goss, Chief Executive South Puget Sound
• $1,055,591:  Kristy Carrington, Chief Executive North Puget Sound
• $1,027,295:  Mike Waters, Former EVP, Ambulatory Care Network (thru 7/22)
• $  998,507:  Melissa Damm, Division CFO – Central
• $  997,467:  Ryan Thompson, SVP, Chief Revenue Cycle Officer
• $  952,602:  Prasanna Mohanty, COO – PCN
• $  944,563:  Jim Martin, Asst Treasurer (part year)
• $  887,015:  Preston Simmons, SVP, CE, AK Region (thru 10/22)
• $  548,458:  David Brown, SVP CAO, Ambulatory Care (thru 8/22)
• $  541,701:  John Whipple, Secretary (thru 5/22)
• $  469,776:  Darren Redick, Former Key Employee, Chief Executive, PRMCE
• $  323,721:  Donald Anderson Jr, Asst Secretary for Enrollment

“*” indicates compensation was paid by a related/affiliated organization

The 41 highly compensated employees listed above received $86 million in 2023. The most highly compensated employee was Guy Hudson, who received $6.2 million in 2023.

25 of the 41 (61%) most highly compensated employees are male while 16 of the 41 (39%) are female.  It is interesting to note many of the individuals listed above are former employees (highlighted in bold).

PH&S paid for first class or charter travel, made gross up payments and tax indemnifications, and paid for personal services and housing allowances or a residence for personal use.   See the Form 990, Schedule J, Part III Supplemental Information for more information on these items, payouts for the retirement plans, and consulting, medical, legal and other fees paid to substantial contributors to the organization.

The following individuals received severance payments in 2020-2023:

2020:

• $750,000:  Venkat Bhamidipati
• $562,578:  Bruce Lamoureux
• $507,235:  Mike Butler
• $485,032:  Tom McDonagh
• $400,613:  Medrice Coluccio
• $367,774:  Sharon Toncray

2021:

• $2,355,018:  Mike Butler
• $  750,000:  Venkat Bhamidipati
• $  140,250:  Jatin Motiwal

2022:

• $1,835,706:  Mike Butler
• $  389,136:  Braden Batkoff
• $  325,280:  Amy Compton-Phillip
• $  312,664:  Mike Waters
• $  198,995:  Todd Czartoski
• $  186,674:  John Whipple
• $  145,165:  Preston Simmons
• $  142,637:  David Brown
• $  102,897:  Daren Reddick

2023:

• $1,112,800:  Amy Compton-Phillips
• $811,814:  Jo Ann Escasa-Haigh
• $739,024:  Mike Waters
• $686,234:  Preston Simmons
• $560,170:  Rhonda Medows
• $539,282:  John Whipple
• $436,825:  David Brown
• $381,352:  Mary Cranstoun
• $349,955:  Daren Redick
• $282,461:  Guy Hudson
• $276,000. Tom Mahowald
• $158,766:  Jeremy Zoch

To read the IRS Form 990 (2023) for PH&S, click here.