Executive Compensation at Advent Health (2024)

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 57 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, 19 organizations taxable as partnerships,  and 23 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 2024, total revenue was $3.2 billion, most of which came from network organizations through management fees ($738 million) and reimbursed salaries, wages, and pharmaceutical expenses ($813 million), reimbursement for expenses and service purchases ($506 million), investment income/gains ($496 million), and government grants ($344 million).  In other words, most income came from network organizations.

Expenses totaled $2.7 billion (including $107 million in depreciation), most of which was spent on compensation for employees ($1.1 billion), fees for services ($242 million), office-related expenses ($559 million), a distribution on investment earnings ($435 million), and pharmaceutical costs ($194 million)

It is important to note AHSSHC has nearly $700 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 by $300 million since 2023 primarily because the organization spent considerably less than the revenue received, despite posting a $140 million negative adjustment to net assets due to transfers.

In 2024, AHSSHC reported having 7,970 employees (about 1,100 more than in 2023) who received $1.1 billion in compensation, which equates to an average compensation of $141,000.

Think about the concept of having nearly 8,000 employees to oversee 57 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 140 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?

2,691 employees received more than $100,000 in compensation with the 26 most highly compensated employees listed below:

• $9,855,391:  Terry D Shaw, Director/President/CEO
• $4,869,658:  David Banks, SEVP, Group CEO Strategy
• $4,723,624:  Paul Rathbun, SEVP/CFO/Treasurer
• $4,345,131:  Randall L Haffner, Director/SEVP Group CEO FL and Cinci
• $3,110,811:  Kenneth Bacon, Former SEVP/CEO Multi-State Division
• $3,002,459:  David Otatti, EVP/CEO, West Florida Division
• $2,529,177:  Jeffrey Bromme, EVP, Chief Legal Officer
• $2,418,023:  Olesea Azevedo, EVP, Chief Culture/Transformation Officer
• $2,384,901:  Douglas Harcombe, CEO South Market, CF South
• $2,309,161:  Brent G Snyder, EVP/CIO
• $2,190,280:  David Huffman, SVP, Finance Operations
• $2,147,146:  Todd Goodman, SVP, CFO, Florida Division
• $2,125,679:  Bryan Adams, EVP/CEO Central Florida Division
• $2,107,333:  David Moorhead, Former EVP, Chief Clinical Officer (end 3/2024)
• $2,035,369:  Bryan Stiltz, EVP/CEO PCN Physician Enterprise
• $1,955,595:  Audrey Gregory, EVP/CEO, East Florida Division
• $1,917,020:  Patricia Celano, SVP/Assoc Chief Clinical Officer
• $1,864,920:  Michael Cacciatore, EVP, Chief Clinical Officer
• $1,822,168:  Brent Box, SVP, Associate Chief Clinical Officer and CMO
• $1,801,258:  Bruce Bergherm, President, Tampa/CEO, West Florida Division
• $1,801,129:  Andrew Jahn, EVP/CEO Multi-State Division (beg 4/2024)
• $1,218,520:  Vickie White, SVP, Chief Brand and Consumer Officer
• $1,205,817:  Brent Davis, EVP/CEO, Primary Health Division (Beg 10/2024)
• $  602,1132:  Craig Baker, SVP, Strategy and Corp Communications
• $  570,004:  Michael Schultz, Former Key Employee
• $  561,455:  Sandra K Johnson, Former Executive VP/Chief Admin Officer (end 12/21)

The 26 highly compensated employees received $65 million in 2024, which equates to an average compensation of $2.5 million.

21 of the 26 (81%) most highly compensated employees are male while 5 of the 26 (19%) are female. Of the 10 most highly compensated employees, 9 are male while 1 is female.  It is also important to note AHSSHC has 22 voting members of a governing body, 11 of whom are independent, although the Form 990 (2024) lists 29 directors (due to timing differences), 23 of whom are male (79%) and 6 of whom are female (21%).

The most highly compensated employee was Terry Shaw who received nearly $10 million in compensation in 2024.  From 2016-2024, Terry Shaw received $45 million in compensation:

Terry Shaw:  Total Compensation 2016-2024: $35 million 

• 2024:  $9,855,391
• 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.

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

• $33 million:  The CSI Companies, of Charlotte, NC for staffing services
• $30 million:  Oracle Health, of Dallas, TX for implementation /IT services
• $29 million:  KPMG, of Dallas, TX for professional services
• $25   million:  EPIC Systems Corp, of Milwaukee, WI for IT services, implementation, support fees
• $28  million:  CDW LLC, of Vernon Hills, IL for maintenance/support

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