Executive Compensation at Advent Health (2023)

AdventHealth (formerly known as Adventist Health System until 2019 when the 501 (c) (3) “rebranded” itself) is one of the largest non-profit health care providers in the United States with 50 hospitals and hundreds of care sites in 9 states. Based in Altamonte Springs, Florida, AdventHealth is a very large system with 87 tax-exempt non-profits, 16 organizations taxable as partnerships,  and 21 organizations taxable as a corporation or trust.  

This post looks at the executive compensation at  Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the tax-exempt, non profit organization that provides management, leadership, and oversight to the affiliates.  It is important to note there are dozens of other related and affiliated non-profits and for profit organizations  related to AdventHealth that are not covered in this post.

AHSSHC provided executive leadership and other professional support services to the subsidiaries and affiliates of its healthcare network.  Consequently, most revenue is from affiliated organizations within the network who pay AHSSHC for management and reimbursement for salaries, wages, and other expenses.

In 2023, total revenue was $1.9 billion, most of which came from network organizations through management fees ($465 million) and reimbursed salaries, wages, and pharmaceutical expenses ($723 million) and reimbursement for expenses and service purchases ($436 million).

Expenses totaled $1.9 billion, most of which was spent on compensation for employees ($931 million), fees for services ($281 million including $114 million to one company (CSI Staffing) for staffing services, office-related expenses ($233 million), and pharmaceutical costs ($186 million)

It is important to note AHSSHC has nearly $400 million in net assets (down from $765 million in 2020 primarily due to unrealized losses on investments and the purchase of hospital assets but up more than $80 million in 2023 primarily because of unrealized gains on investments).

In 2023, AHSSHC reported having 6,865 employees (about 60 more than in 2022) who received $931 million in compensation, which equates to an average compensation of $136,000.

Think about the concept of having nearly 7,000 employees to oversee more than 50 hospitals (who all have their own CEO, COO, CFO, and administrative staff) and other service centers (who have their own management, billing and administrative staff). If we just consider hospitals, that’s about 130 employees for every hospital over and above the hospital’s own management and administrative staff.  How is it that healthcare has become so complicated that an organization needs additional sets of CEO’s, COO’s, CFO’s and administrative staff to oversee CEO’s, COO’s, CFO’s and administrative staff?

2,412 employees received more than $100,000 in compensation with the 22 most highly compensated employees listed below:

• $6,344,107:  Terry D Shaw, Director/President/CEO
• $3,162,129:  Paul Rathbun, SEVP/CFO/Treasurer
• $2,651,112:  Randall L Haffner, Director/SEVP/CEO Multi-state Division (end 9/20)
• $2,385,812:  David Banks, SEVP, Chief Strategy Officer
• $2,368,832:  Karsten Randolph, SEO/CFO Multi-State Division
• $2,195,971:  David Otatti, SEVP/CEO, West Florida Division
• $2,044,666:  Kenneth Bacon, Former SEVP/CEO Multi-State Division
• $1,906,238:  David Moorhead, EVP, Chief Clinical Officer
• $1,783,370:  Todd Goodman, SVP, CFO, Central Floda Division
• $1,716,377:  Audrey Gregory, EVP/CEO, East Florida Division
• $1,701,501:  Bruce Bergherm, President, Tampa/CEO, West Florida Division
• $1,626,782:  Amy Zbaraschuk, SVP, SFO,, Northwest Florida Market
• $1,604,209:  Jeffrey Bromme, EVP, Chief Legal Officer
• $1,510,845:  Brent G Snyder, EVP/CIO
• $1,475,098:  Michael Murrill, CEO,, Zephyrhills/Dade/Connerton
• $1,413,709:  Olesea Azevedo, EVP, Chief Admin Officer
• $1,409,460:  Bryan Adams, EVP/CEO Central Florida Division
• $1,394,176:  Bryan Stiltz, EVP/CEO PCN Physician Enterprise
• $1,295,567:  Patricia Celano, SVP/Assoc Chief Clinical Officer
• $  809,893:  Vickie White, SVP, Chief Brand and Consumer Officer
• $  596,319:  Sandra K Johnson, Former Executive VP/Chief Admin Officer (end 12/21)
• $  503,203:  Craig Baker, SVP, Strategy and Corp Communications

The 22 highly compensated employees received $42 million in 2023, which equates to an average compensation of $1.9 million.

15 of the 22 (68%) most highly compensated employees are male while 7 of the 22 (32%) are female. Of the 10 most highly compensated employees, 8 are male while 2 are female.  It is also important to note AHSSHC has 23 voting members of a governing body, 15 of whom are independent, although the Form 990 (2023) lists 30 directors (due to timing differences), 24 of whom are male (80%) and 6 of whom are female (20%).

The most highly compensated employee was Terry Shaw who received more than $6 million in compensation in 2023.  From 2016-2023, Terry Shaw received $35 million in compensation:

Terry Shaw:  Total Compensation 2016-2023: $35 million 

• 2023:  $6,344,107
• 2022:  $5,678,983
• 2021:  $4,728,689
• 2020:  $3,198,492
• 2019:  $4,712,219
• 2018:  $4,495,072
• 2017:  $3,538,936
• 2016:  $2,113,738

AHSSHC paid for first class or charter travel, travel for companions, health of social club dues or initiation fees, discretionary spending accounts, and gross up payments and tax indemnification. For details on these expenses, see Form 990, Schedule J, Part III, Supplemental Information.  In addition, information on the SERP and SEDB (Senior Executive Dean Benefit) Plans are also detailed.

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

• $114 million:  The CSI Companies, of Charlotte, NC for staffing services
• $ 26 million:  Virtustream LLC, of Chicago, IL for maintenance/support
• $ 24  million:  EPIC Systems Corp, of Milwaukee, WI for IT services, implementation, support fees
• $ 16 million:  Deloitte Consulting, of Dallas, TX for professional services
• $ 13 million:  CDW LLC, of Vernon Hills, IL for maintenance/support

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