Executive Compensation at Mercy Health (Wisconsin) 2023

Mercy Health (Mercyhealth) is a regional healthcare system with 7 hospitals and about 85 facilities in 50 communities in southern Wisconsin and northern Illinois. Headquartered in Janesville, Wisconsin, Mercyhealth consists of many non-profit, tax-exempt organizations (9) and also owns several organizations that are taxed as corporations including Mercycare Insurance Company, Rockford Health Insurance (which is domiciled in Bermuda), Mercycare HMO (which consolidated with Mercycare Insurance Company), and Janesville Medical Center, Inc (management of union employees).

The entire Mercyhealth system (the largest employer in the area) has more than 7,500 employees compensated through the various non-profits and corporations. This post will list the most highly compensated employees as reported by Mercy Health System Corporation (MHSC) on the Form 990 (2022 for the year ending June 30, 2023) submitted to the IRS.  To find the most highly compensated employees at a specific hospital or related organization, see the corresponding Form 990.

MHSC is governed  by 8 voting members (directors) of the governing body (board of directors, 6 of whom are independent; 7 of the 8 directors (88%) are male while 1 (12%) is female.

In 2023, MHSC reported total revenue of $686 million, most of which was patient service revenue. Expenses totaled $627 million (including $26 million in depreciation) with compensation ($353 million not including purchased labor and contractors) and medical supplies ($122 million) the two largest expenses. Net assets increased from $440 million at the beginning of the year to $500 million at year-end.

3,934 employees were compensated $353 million, which equates to an average compensation of $90,000.  589 employees received more than $100,000 in compensation. The 17 most highly compensated employees are:

• $11,561,020:  Javon R Bea, Director/President
• $  1,916,885:  Shahid Shekhani, Physician
• $  1,360,032:  David Nelsen, Physician
• $  1,262,985:  Imdad Ahmed, Physician
• $  1,225,455:  Merle Rust, Physician
• $  1,219,953:  Bradley Fideler, Physician
•  $   905,304:  Todd Anderson, VP/CFO
• $   564,224:  Kimberly Scaccia, VP, Revenue Cycle
• $   533,652:  Mark L Goelzer, Director/Physician
• $   505,247:  Joanna Bea Benning, VP
• $   471,220:  E Patrick Cranley, VP
• $   469,683:  Alen Brcic, VP
• $   465,082:  Jennifer A Hallett, VP
• $   459,062:  Kara Sankey, VP
• $   388,890:  Alliakbar Abdulia Olia, VP
• $   312,485:  Ladd Udy, VP
• $   248,165:  James Davis, VP

As illustrated above, the 17 most highly compensated employees received. $24 million in compensation with more than nearly half to Javon R Bea, the Director and President. Mr. Bea has received an estimated $75 million in compensation from 2017-2023:

Javon Bea:  Total Estimated Compensation 2017-2023: $75 million

• 2023:  $11,561,020
• 2022:  $12,527,853
• 2021:  $12,132,146
• 2020:  $11,000,000 (estimated)
• 2019:  $10,000,000 (estimated)
• 2018:  $ 9,363,980
• 2017:  $ 8,867,895

13 of the 17 (76%) are male while 4 of the 17 (24%) are female; 8 of the 10 most highly compensated employees are male while 2 are female (note: the Form 990 does not disclose gender identity; the determination was made based on the name and a google search).

65 independent contractors received more than $100,000 in compensation with the 5 most highly compensated reported to be:

• $57 million:  Boldt Co, of Milwaukee, WI for construction
• $ 4 million:  EPIC Systems Corp, of Verona, WI for software/system maintenance
• $ 4 million:  AYA Healthcare Inc, of Dallas, TX for nursing staff
• $ 4 million:  VJS Construction Services, of Pewaukee, WI for construction
• $ 3 million:  Comphealth, of Dallas, TX for physician services

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