Lown Institute on the Highest Paid Nonprofit Hospital CEOs
Nonprofit hospital CEO salaries don’t tell us much, if anything, about the appropriateness of exempting nonprofit hospitals from taxation. If salaries are commensurate with what other nonprofit and for profit hospitals pay their CEOs, the admittedly astronomical amounts prove nothing. So the Lown Institute Report listing of the highest paid nonprofit hospital CEOs is probably entertaining for it voyeuristic qualities. Here is some of it:
Nonprofit hospitals have been in the news for paying their executives millions amid layoffs and decreasing community investment. Why do nonprofit hospitals and systems pay their CEOs so much, and which organizations are paying the most? We took a look at the ten highest-paid hospital and system CEOs from 2021 in the Lown Hospitals Index to learn more.
Highest-paid nonprofit hospital CEOs, FYE 2021
|
Hospital (state) |
CEO | Total compensation | Notes |
| Froedtert Pleasant Prairie Hospital (WI) | Richard Schmidt Jr | $7.5 million | Tax ID 390816845 Includes deferred compensation returns paid out in fiscal year 2021 |
| Covenant Medical Center Harrison (MI) | Edward Bruff | $5.2 m | Tax ID 383369438 Includes deferred compensation from retirement plan |
| Cooper University Hospital (NJ) | Anthony Mazzarelli, Kevin O’Dowd | $4.9 m | Tax ID 210634462 Includes compensation for two co-ceo/presidents who served this year |
. . .
Highest-paid nonprofit system CEOs, FYE 2021
| Hospital system | CEO | Total compensation | Notes |
| Sentara Healthcare | Howard Kern | $33.2 m | Tax ID 521271901 Includes distributions from Supplemental Executive Retirement Plan |
| CommonSpirit Health | Kevin Lofton, Lloyd Dean | $32 m | Tax ID 470617373 Includes compensation for Kevin Lofton, former CEO |
| Nuvance Health | John Murphy | $30.1 m | Tax ID 834214573 Includes distributions from Supplemental Executive Retirement Plan |
| RWJBarnabas Health | Barry Ostrowsky | $17.3 m | Tax ID 222405279 Includes distributions from Supplemental Executive Retirement Plan |
In order to recruit and retain talent, nonprofit hospital boards have included incentives for executives such as supplemental retirement plans and long-term incentive plans, which contribute to the high payouts for many of these hospitals in 2021.
Other executives received multi-million dollar bonuses or incentive payments, although the metrics behind those incentives can be vague. For example, Ascension’s tax form does not include how CEO incentive pay was structured, despite their CEO receiving more than $10 million in bonuses that year. White Plains Hospital Medical Center’s tax form is low on details for incentive pay, writing that bonuses were “based on the individual’s performance and accomplishments as determined by either the Compensation Board or management discretion.” Kaiser’s tax form has more information on incentives, including “quality of care and service, membership growth, operating income, per member expense trend, and community benefit” as organizational goals for potential bonuses.
darryll k. jones