Executive Compensation at Bon Secours Mercy Health (2023)

Bon Secours Mercy Health (BSMH) became one of the largest Catholic healthcare providers serving communities in Ohio, Kentucky, New York, Maryland, Virginia, South Carolina, and Florida when merged with Mercy Health in September, 2018.

A tax-exempt, non-profit healthcare system that consists of nearly 1,200 non-hospital healthcare facilities including 57 tax-exempt organizations, 37 organizations taxable as a partnership, and 49 organizations taxable as a corporation or trust, BSMH reports the net patient revenue from 50 hospitals and other care facilities through BSMH, along with management fees paid to BSMH for network management.

This post is limited to the executive compensation reported by BSMH.

BSMH reported total revenue of $8.7 billion in 2023 (compared to $8.2 billion in 2022, $7.6 billion in 2021 and $7 billion in 2020) most of which was net patient revenue ($6.4 billion), “exempt function income” ($1.4 billion), “market assessments and corporate management fees” ($291 million), and investment income and gains ($221 million), and retail pharmacy ($180 million).

Expenses in 2023 totaled $9 billion  (including $321 million in depreciation) with the two largest expenses reported to be compensation ($4.2 billion), medical supplies ($1.3 billion), and fees for services – no detail provided beyond classifying the fees as management, fundraising, and program ($1.7 billion).

At year-end the organization had $4.2 billion in net assets.

64,043 employees received $4.2 billion in compensation in 2023 which equates to an average compensation of $66,000.  6,552 employees received more than $100,000 in compensation with 23 of the most highly compensated reported to be:

• $12,296,300:  John Starcher, Jr, President and CEO
• $ 3,574,352:  Brian Smith, Former COO
• $ 2,861,136:  Manish Patel, Orthopedic Surgeon
• $ 2,732,719:  Deborah Bloomfield, CFO, Board Treasurer
• $ 2,448,864:  Kenechuwu Ugowe, Neurosurgeon
• $ 2,430,814:  Paul Smith, Former Market Group President
• $ 2,343,496:  Sameh Arebi, Orthopedic Surgeon
• $ 2,330,731:  Wael Haidar, Chief Clinical Officer
• $ 2,139,384:  Michael Bezney, Chief Legal Officer and General Counsel
• $ 2,086,890:  Zoheir Abdelbaki, Cardiologist
• $ 2,013,231:  Jason Szczuka, Chief Digital Officer
• $ 1,900,605:  David A Cannady, Chief Strategy Officer
• $ 1,835,712:  Donald Kline, COO
• $ 1,578,112:  Joseph Gage, Jr., SVP, Chief HR Officer
• $ 1,512,650:  Jerome Judd, VP, Treasurer
• $ 1,370,562:  Staci Lucius, President, BSMH Medical Group
• $ 1,158,556:  Laishy Williams-Carlson, Chief Information Officer*
• $ 1,121,331:  Daniel Hurry, Former Key Chief Supply Chain Officer *
• $   964,788:  Andrea Mazzoccoli, Chief Nursing Officer
• $  910,734:  Jason Siegert, Former Key Chief Ventures Officer
• $   888,533:  Donna Abbondandolo, Chief Compliance Officer
• $   726,592:  Fr Joseph Cardone, Chief Mission Officer
• $  558,040:  Matthew Eversole, Chief Information Officer (beg 1/2021; end 8/22)

The 23 most highly compensated employees received $52 million in 2023 with the most highly compensated employee being John Starcher, the President and CEO who received more than $12 million in 2023; and $60 million from 2017-2023:

John Starcher:  Total Compensation 2017-2023:  $60 million

• 2023:  $12,96,300
• 2022:  $11,580,768
• 2021:  $ 6,210,476
• 2020:  $ 6,061,369
• 2019: $15,773,699
• 2018:  $ 3,255,988
• 2017:  $ 5,580,929

As illustrated above, 9 of the 10 most highly compensated employees are male while 1 is female. 18 of the 23 (78%) most highly compensated employees are male while 5 of the 23 (22%) are female.

BSMH paid for first class or charter travel, travel for companions, and health or social club dues or initiation fees, and made gross up payments or provided tax indemnification.  For more information on these expenses and contributions to non qualified supplemental retirements and deferred compensation plans, see the Form 990, Schedule J, Supplemental Information.

2,090 independent contractors received more than $100,000 in compensation with the 5 highest reported to be:

• $721 million:  Cardinal Health, of Chicago, IL for medical products and services
• $446 million:  Ensemble RCM LLC, of Huntersville, NC for revenue cycle services
• $312 million:  Medline Industries, of Pittsburgh, PA for medical products and services
• $162 million:  Trustaff Travel Nurse, of Cincinnati, IL for staffing
• $ 94 million:  Medtronic, of Chicago, IL for medical products/services

At year-end 2023, BSMH had $4.2 billion in net assets, compared to $3.1 billion at year-end 2021.  The $1.1 billion improvement is explained as “equity transfers.”

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