Executive Compensation at Dignity Health (2024)

Dignity Health is part of the CommonSpirit Health System (In 2019, Dignity Health merged with Catholic Health Initiatives (CHI) to become one of the largest tax-exempt, non-profit healthcare systems in the United States). With more than 60,000 employees staffing 400 care centers and 41 hospitals in 22 states, Dignity Health is based in San Francisco, CA (whereas CommonSpirit Health is based in Chicago, IL). Although Dignity Health has numerous related/affiliated non-profits, taxable corporations and trusts, this post is limited to addressing the executive compensation of Dignity Health, an affiliate of CommonSpirit Health.

In 2024, Dignity Health reported total revenue of $11.3 billion (compared to $9.9 billion in 2023, $9.5 billion in 2022 and $10.1 billion in 2021) with most revenue coming from patient income net of charity ($6 billion), medicare/medicaid ($3.6 billion), management services ($879 million) – which appears to be from affiliated/related organizations within the Dignity Health network, and investment income and gain on the sale of assets ($444 million).

Expenses totaled $10.9 billion (including $308 million in depreciation) with the largest expenses reported to be:

• $5.3 billion:  Compensation
• $1.9 billion:  Fees to Outside Vendors (includes nearly $300 million for outside staffing)
• $1.2 billion:  Medical Supplies
• $756 million:  Med Cal/Med Prov Fees
• $574 million:  Office-Related Expenses
• $295 million:  Grants and other assistance ($157 million to Dignity Health Medical Foundation)

48,631 employees received $5.3 billion in compensation, which equates to an average compensation of $109,000 (Dignity Health also paid nearly $300 million to outside staffing services provided by 2 independent contractors).

15,633 employees received more than $100,000 in compensation with the 32 most highly compensated reported to be:

• $21,187,786:  Lloyd Dean, Chief Executive Emeritus
• $15,397,051:  Wright Lassiter, III, CEO
• $ 9,840,285:  Marvin O’Quinn, President and COO
• $ 9,188,548:  Darryl Robinson, SEVP, Chief HR Officer
• $ 7,843,256:  Daniel J Morissette, Treasurer, SEVP CFO
• $ 5,886,614:  Elizabeth Shih, SEVP, CAO
• $ 4,352,463:  Julie Sprengel, SVP, Operations & CEO, Nevada/Southern
• $ 4,243,836:  Robert Wiebe, EVP, Chief Medical Officer
• $ 3,886,090:  Daniel Barchi, SEP, CIO*
• $ 3,283,518:   Mitch Melfi, Secretary, Chief Legal Officer*
• $ 3,160,192:  Thomas McGinn, EVP, Physician Enterprise*
• $ 3,082,567:  John E Petersdorf, WVP, Operational Effectiveness
• $ 3,025,934:  Linda Hunt, SVP, Operations and CEO, Arizona Division
• $ 2,902,271:  Laurie Harting, Former SVP, Operations & CEO Greater Sacrame
• $ 2,882,036:  Fred Najjar, EVP, Chief Philanthropy Officer
• $ 2,722,287:  Kathleen Sanford, Chief Nursing Officer*
• $ 2,615,718:  Tim Bricker, President, Central Region
• $ 2,603,202:  Thomas Kopfensteiner, Chief Mission Officer*
• $ 2,597,561:  Michelle Cooper, EVP, Chief Compliance Officer*
• $ 2,385,274:  Shelly Schlenker, EVP, Chief Advocacy Officer
• $ 2,342,650:  Anthony Scott Carswell, System SVP Market Strategy and Development
• $ 2,225,745:   Tammara Wilcox, System SVP Payer Strategy & Relations
• $1,994,394:  Lisa Gamshad Zuckerman, System SVP Treasury & Strategic Inv
• $ 1,678,733:  Michael Wood, Physician
• $ 1,652,839:  Jon Vanboening, Former SVP, Operations & CEO, Central California
• $ 1,664,428:  Benjie M Loanzon, System SVP Finance and Corp Con.
• $ 1,553,997:  Leigh Bertholf, Interim Chief Compliance Officer*
• $ 1,547,722:  Elaine Lisko, System SVP and General Counsel*
• $ 1,543,009:  Ross Bremner, Faculty Physician
• $1,489,983:  Phil Foster, System SVP Enterprise Risk Management*
• $ 1,414,561:  Alyssa C Rieder, VP, Chief Investment Officer
• $ 1,361,274:  Danielle Weber, System SVP Revenue Cycle*

A “*” indicates compensation was paid by a related organization.

The 32 employees listed above received $134 million. 19 of the 32 (59%) are male while 13 of the 32 (41%) are female. 8 of the 10 most highly compensated employees are male including the previous CEO, Lloyd Dean who received $21 million in compensation in 2024.  The question to be asked is:  Why did a tax-exempt non-profit organithe past CEO given $21 million in compensation?

The most highly compensated employee was Lloyd Dean who received $21 million in 2024 and $127 million from  2019-2024:

Lloyd Dean:  Total Compensation 2019-2024:  $127 million

• 2024:  $21,187,786
• 2023: $27,954,468
• 2022: $35,462,873
• 2021:  $14,647,375
• 2020: $16,745,227
• 2019:  $11,433,166

Dignity Health paid for first class or charter travel and made gross up payments or provided tax indemnification in addition to club dues for business purposes and security services including vehicle and driver. For information on these expenses, severance payments, post employment separation payments, and the non qualified supplemental benefit plan and the deferred compensation plan, see the Form 990, Schedule J, Part III, Supplemental Information.

1,186 independent contractors received more than $100,000 in compensation with the five (5) most highly compensated reported to be:

• $398 million:  Optum360 LLC, of Eden Prairie, MN for revenue cycle services
• $237 million:  Medical Solutions, of Omaha, NE for staffing services
• $ 78  million:  Cerner Corp, of Kansas City, MO for technology services
• $ 47 million:  Guidant Global, of Southfield, MI for staffing services
• $ 46 million:  Layton Construction, of Sandy, UT for construction services

As listed above, nearly $300 million was spent on outside staffing services from two (2) contractors.

At the beginning of the year, Dignity Health had $8.7 billion in net assets. After adjusting for excess revenue ($347 million), unrealized gains on investments ($418 million), and a $285 million positive adjustment to net assets  – primarily for pensions that appear to be overfunded, Dignity Health’s net assets were $9.7 billion at year-end – $1 billion more than in the beginning of the year.

To read the IRS Form 990 2023 for the year ending June 30, 2024 click here.