Executive Compensation at Prisma (2023)

Prisma Health is a tax-exempt, non-profit healthcare provider (the largest) in South Carolina. With nearly 30,000 employees, 18 acute and speciality hospitals with 2,800 licensed beds, and 320 practice sites, Prisma Health serves more than 1.5 million patients in 21 counties that cover 50% of South Carolina and parts of Tennessee.

Based in Greenville, SC, Prisma consists of 6 tax-exempt organizations, 2 taxable partnership, and 7 organizations taxable as a corporation or trust.  This post addresses the executive compensation at Prisma Health (Prisma), a tax-exempt corporation that derives most of its revenue from investment income, government grants, and gains on the sale of businesses, and appears to be the management entity of the entire system.

Total revenue in 2023 was $221 million which primarily came from 3 sources:  investment income ($123 million),  government grants ($15 million), and program service revenue – captive revenue, provider and member subscriptions, admin and general revenue, net patient revenue – ($82 million).

Total expenses in 2023 were $1.1 billion (including $46 million in depreciation) with the largest expense reported to be compensation ($527 million) which was offset by a negative expense (which is revenue) of $937 million of corporate allocations.

 6,606 employees received $527 million in compensation, which equates to an average compensation of $80,000.  492 employees received more than $100,000 in compensation with the 23 most highly compensated (including 13 former employees) reported to be:

• $2,078,005:  Mark S O’Halla, Presdient and CEO
• $1,210,109:  Edward Duffy, Jr, Former Board Director (until 12/31/22)
• $1,207,972:  Howard P West, EVP, Former Chief Legal Officer (until 9/30/23)
• $1,144,480:  Jonathan Gleason, EVP, Chief Clinical Officer
• $1,106,,232:  Michael T Burke, Former EVP and CFO (until 9/30/22)
• $  835,572:  Clarence M Sevillian II, EVP, COO
• $  821,898:  Richard J Rogers, SVP, CIO
• $  798,498:  William Gerard, EVP, Value Based Care
• $  782,338:  Jean Meyer, Former SVP, Acute Care (until 9/30/23)
• $  770,504:  Keith N Alexander, Former SVP, Acute Care Operations (until 1/7/22)
• $  715,390:  Malcolm W Isley, EVP Chief Strategy Officer
• $  710,920:  Gregory J Rusnak, Former EVP and COO (until 10/1/21)
• $  685,700:  William S Cobb IV, Clinical VP, Prisma Health Medical Group
• $  655,574:  James M Ellis, Former VP, Clinical Affairs (until 12/31/21)
• $  651,752:  John Dunkelberger, Former CEO, Promise Health Plan (until 3/9/23)
• $  646,046:  David L Cull, Former VP, Academic and Clinical Integration (until 3/27/23
• $  645,898:  Amy M Linsin, EVP, Chief HR and Diversity Officer
• $  613,630:  Brenda J Thames, Academic Consultant
• $  561,214:  Carolyn R Swinton, Former SVP, Chief Nursing Officer (until 2/4/22)
• $  557,662:  Elizabeth Tibbs, SVP, COO, Medical Group
• $  549,171:  Timothy Moses, Former VP and Chief Financial Executive (until 7/12/22)
• $  425,744:  Scott M Sasser, Former CEO, Prisma Health Medical Group (until 6/20/22)
• $  380,539:  Larry D Gosnell, Former SVP and Treasurer (until 5/1/23)

The 23 most highly compensated employees received $19 million in compensation, which equates to an average compensation of $800,000.

9 of the 10 most highly compensated employees are male while 1 is a female.

Prisma paid for personal residences or provided housing allowances, Specifically, Clarence Sevillian, Jean Meyer, Jonathan Gleason, Matthew Elsey  and Howard West received housing allowances.

To read about severance payments and the 457(F) plan for a select group of management or highly compensated employees, see the Form 990, Schedule J,Part III, Supplemental Information.

269 independent contractors received more than $100,000 in compensation. The 5 most highly compensated were reported to be:

• $27 million:  EPIC Systems, of Verona, Wisconsin for EPIC services
• $15 million:  Crothall Facilities Management, of Wayne, PA for facilities management
• $10 million:  Phillips Healthcare, of Atlanta, GA for machine maintenance
• $ 6 million:  Crown Health Care Laundry Service, of Pensacola, FL for linen services
• $ 6 million:  Accuity Delivery Systems, of Mount Laurel, NJ for financial review services

To read the IRS Form 990 (2022 for the year ending 9/30/23), click here.