Executive Compensation at NorthShore University Health System (2024)

NorthShore University Health System (NorthShore) is a healthcare delivery system (tax-exempt and non-profit) that includes 6 hospitals (Evanston, Glenbrook, Highland Park, Northwest Community, Skokie and Swedish) and more than 140 healthcare locations in the Chicago area.

Headquartered in Evanston, IL, Northshore is affiliated with the University of Chicago Pritzker School of Medicine.  And, finally it is important to note that NorthShore is part of Endeavor Health, who united 9 regional hospitals and 300 care centers across Chicago through NorthShore, Edward-Elmhurst Health, Northwest Community Healthcare, and Swedish Hospital in 2022 creating the third largest healthcare system in the State of Illinois.

The Form 990 (2024) for NorthShore indicates the legal tax name has been changed to “Endeavor Health Clinical Operations.”  Key information reported on the Form 990 includes:

• Total revenue was $2.3 billion, which primarily came from health care services ($1.7 billion).
• Total expenses were $2 billion (including $105 million in depreciation) with the highest expenses reported to be compensation ($868 million), medical supplies and drugs ($307 million), and fees for outside services ($347 million).
• Net assets were $3.5 billion at year-end (note:  at the beginning of the year net assets were $3.6 million but after adjusting for unspent revenue ($300 million), $97 million in net unrealizable gains that were partially offset by other changes in net assets (-$471 million) – see Schedule ), net assets decreased to $3.5 billion).
• Northshore has 15 voting members (directors) of the governing body, 7 of whom are independent.  16 are listed on the Form 990 due to timing differences.  12 of the 16 (75%) are male while 4 of the 16 (25%) are female.
• 13,495 employees received $868 million in compensation, which equates to an average of $64,000.
• 3,493 employees received more than $100,000 in compensation.

The 37 most highly compensated employees are listed below:

• $5,191,626:  Gerald P Gallagher, President and CEO
• $2,479,109:  Sean O’Grady, Director and President, Acute and Ambulatory Operations
• $2,184,620:  Douglas E Welday, System Treasurer and CFO
• $2,171,615:  Julian E Bailes, Clinical Chairman, Neurosurgery*
• $1,978,332:  Jason L Koh, Clinical Chairman, Orthopedics
• $1,780,654:  Mahalakshmi Halasyamani, Director and System Chief Clinical Officer
• $1,690,240:  Mark S Talamonti,  Director and Clinical Chairman, Surgery
• $1,613,404:  Kristen Murtos, Chief Innovation and Transformation Officer
• $1,444,920:  John Erwin III, Board Vice Chairman and Clinical Chairman, Medicine
• $1,433,729:  Neil S Freedman, Director
• $1,427,687:  Steven Smith, Chief Information Officer (until 1/3/24)
• $1,318,154:  Robert R Edelman, Clinical Chairman, Radiology
• $1,289,435:  Dianna Sparacino, System Chief People Officer
• $1,224,623:  Shivani Bautista, Secretary and Chief Legal Officer
• $1,204,589:  Gabrielle Cummings, President, Evanston Hospital and Northshore Hospitals
• $1,172,647:  David Rahija, President, Skokie Hospital
• $1,119,492:  John Tressa, Director and Chief Nursing Officer
• $1,112,359:  Richard K Silver, Clinical Chairman, Obstetrics and Gynecology
• $1,086,487:  Mohammed Minhaj, Clinical Chairman, Anesthesiology
• $1,074,759:  Deb Anderson, CIO
• $1,072,992:  Michael S Caplan, Director and Clinical Chairman, Pediatrics
• $1,056,448:  William D Bloomer, Clinical Chairman, Radiation Medicine*
• $1,036,246:  Karen L Kaul, Director and Clinical Chairman, Pathology and Lab Medicine
• $   928,970:  Anne Martino, Chief Marketing Officer
• $   866,690:  Ramon Solhkhah, Clinical Chair, Psychiatry
• $   861,978:  Scott Kenagy, SVP,Chief Investment Officer
• $   778,214:  Heath Bell, SVP, HIT Applications
• $   726,315:  Susan Rubin, Clinical Chairman, Neurology
• $   674,724:  Jeffrey Biesczat, SVP, Financial Planning and Accounting
• $   660,172:  Jianfeng Xu, VP, Translational Research
• $   631,349:  Brian Washa, SVP, Supply Chain Management
• $   569,517:  Jesse Peterson Hall, President, CVI Activation, Glenbrook Hospital
• $   552,898:  Nicole Fernandez, President, Highland Park Hospital and NorthShore Chief Nursing Officer
• $   544,652:  Sarah Donlan, Chief Medical Officer, NorthShore Hospitals
• $   527,404:  Wanda Cruz-Knight, Clinical Chairman, Family Medicine
• $   523,682:  Maria Knecht, President, Glenbrook Hospital
• $   517,467:  Walter Stephen, VP, Total Rewards

The 37 most highly compensated employees received $47 million in compensation or, on average, $1.3 million each in 2024.  25 of the 37 (68%) most highly compensated employees are male while 12 of the 37 (32%) are female.

The most highly compensated employee was Gerald Gallagher who received more than $5 million in 2024 and $28 million from 2018-2024:

Gerald P Gallagher:  Total Compensation 2018-2024:  $28 million

• 2024:  $5,191,626
• 2023:  $6,283,529
• 2022: $4,759,273
• 2021:  $4,385,650
• 2020:  $2,374,915
• 2019:  $2,960,343
• 2018:  $1,861,696

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

• $37 million:  University of Chicago Medical Center, of Chicago, IL for medical education
• $39 million:  Pepper Construction Company, of Barrington, IL for construction management
• $17 million:  EPIC Systems, of Verona, WI for software support
• $16 million:  Bulley and Andrews, of Chicago, IL for construction management
• $16 million:  SPN Marketing Communications, of  La Grange, IL for media and marketing

To read the Form 990 (2024), click here.