CEO Compensation Insights: A Closer Look at Top Earners in the Profit Health System in 2023
The salaries and compensation of executives in the biggest public for-profit health systems have mostly remained high. According to yearly proxy statements filed with the SEC, the CEOs & CFOs of HCA Healthcare, Tenet Healthcare, Universal Health Services, and Community Health Systems received salaries showing an increment from the previous year.
Data Showing The Increase in Salaries in Tabular Form
| Position | Current Year Compensation Range | Previous Year Compensation Range |
| CEO | $8.3 million – $21.3 million | $6.3 million – $14.6 million |
| CFO | $3.8 million – $9.3 million | $3.3 million – $5.1 million |
The above data clearly shows that compared to the previous year, this year the CEO & CFO executives show a hike in their salaries servicing the profit health system.
Executive Compensation Breakdown for 2023
Heading ahead, you need to know that the profit health system experienced frequent volume interruptions and cost pressures back in 2022. For the executives, this resulted in reduced stock awards and decreased or eliminated, non-equity incentive plan compensation even though their companies were able to avoid losses.
Although there were some ongoing challenges, like the surprising impact of the No Surprises Act on the physician staffing market, overall, last year saw major health trends stabilize and identify a more definite route to increasing revenue. To understand it better, you can check the company’s engaged profit health system performance overall.
Company Performance Overview:
- CHS was the only company among the three to report a net loss in 2023, while others reported net profits.
- Among the companies engaged in profit health systems, four of them experienced stability and increased executive compensation from $43.3 million in 2022 to $62.6 million in 2023.
- Samuel Hazen of HCA remained the highest earner at $21.3 million, while Saum Sutaria, M.D., of Tenet, saw the largest pay increase of $7.1 million.
Continue reading for a comprehensive breakdown of the executives’ salaries – including private planes, retirement contributions, country club dues, and more – for both the CEO and CFO of each company in 2023.
Top CEOs Executive Compensation Breakdown for 2023
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Samuel Hazen, HCA Healthcare
2023 total compensation = $21,315,984
CEO: Median worker pay ratio = 356:1
Samuel Hazen joined HCA Healthcare as the president and COO. After working for more than 3 years he was elected as the CEO of HCA Healthcare. The breakdown of the profit health system can be found in the table below.
| Type of Compensation | Amount |
| Salary | $1.5 million |
| Stock Awards | $7 million |
| Option/Stock Appreciation Rights | $7.2 million |
| Non-Equity Incentive Plan | $5 million |
Hazen observed no fluctuations in both pension value and nonqualified deferred compensation earnings. He got approximately $577,000 in additional pay, mostly from over $500,000 in dividend equivalent payments for vested 2021 performance share units. The all-encompassing category also covered $35,000 in charitable donations matched by the company and $5,352 related to personal use of company aircraft.
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Saum Sutaria, M.D., Tenet Healthcare
2023 total compensation = $18,518,109
CEO: Median worker pay ratio = 305:1
Saum Sutaria, M.D was elected for the position of the CEO at Tenet Healthcare Corporation in the year, 2021. The compensation breakdown is given below:
| Component | Amount |
| Base Salary | $1.5 million |
| Stock Awards | >$10.1 million |
| Non-Equity Incentive Plan Compensation | $6.3 million |
| Increase from Previous Year | Almost $4 million |
These amounts exceeded the $6.8 million earned in 2022 but remained significantly lower than the $15 million earned in 2021. Included in Sutaria’s total compensation covering the profit health system of nearly $588,000 were $375,000 allocated to the executive retirement account by the company, and close to $133,000 attributed to personal use of the company aircraft.
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Marc Miller, Universal Health Services
2023 total compensation = $14,407,937
CEO: Median worker pay ratio = 287:1
Marc Miller, who previously worked with Alan Miller in Universal Health Services was elected as the CEO of Universal Health Services in 2009. The compensation breakdown is given below:
| Component | Amount |
| Base Pay | $1.4 million |
| Stock Compensation | $9.9 million |
| Total Remuneration | $11.3 million |
The crucial aspect of 2022 was that he and other UHS officials were not compensated with over $3 million from the non-equity incentive scheme as the system had failed to reach its performance targets. Marc Miller disclosed a $78,000 change in pension value and nonqualified deferred compensation earnings, along with about $47,000 in extra pay for servicing in the profit health system, which included costs like country club fees and car allowance, as well as tickets to sporting events.
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Tim Hingtgen, Community Health Systems
2023 total compensation = $8,348,223
CEO: Median worker pay ratio = 96:1
Tim Hingtgen’s journey started in the Community Health Systems in 2008. He held the position of president and COO for more than four years and was elected as the CEO of the Community Health Systems in 2021. The compensation breakdown is given below:
| Component | Amount |
| Base Salary | Almost $1.3 million |
| Restricted Stock Awards | $3.7 million |
| Option Awards | $922,000 |
| Nonequity Incentive Plan Compensation | Nearly $2.1 million |
He observed a difference in pension worth and earnings from nonqualified deferred compensation amounting to $347,000, and received around $28,000 in other compensation, mainly from membership and dues ($11,076) and life insurance premiums ($10,062).
Top CFOs Executive Compensation Breakdown for 2023
The combined total pay for CFOs in public for-profit health systems rose to more than $25.6 million from the previous year’s $16.1 million. However, the CFOs experienced some changes in their respective compensations, unlike the chief executives. In 2022, Tenet’s Dan Cancelmi was the second-lowest earner, but in 2023 he became the highest-paid CFO. The total compensation of Kevin Hammons from Community Health Systems decreased this year, making him the only executive on the list to have a decline.
The CFO group can expect further changes ahead, as Cancelmi and HCA’s William Rutherford have now retired and passed their roles to new executives. Continue reading to learn more about the breakdown of compensation for for-profit health system CFOs in 2023.
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Dan Cancelmi, Tenet Healthcare CFO
2023 total compensation = $9,272,504
Dan Cancelmi was appointed as CFO of Tenet Healthcare in 2012. His final year with the profit health system was in 2023 as he retired on Dec. 31, and Sun Park took over from AmerisourceBergen in the previous summer.
Cancelmi ended his tenure at Tenet by receiving a raise that consisted of a $750,000 increase in base salary, nearly $2.4 million in stock awards, and $2.1 million in non-equity incentive plan compensation. In contrast to the previous year, Cancelmi also recorded more than $4 million in pension value and nonqualified deferred compensation earnings. The $9,900 left of his pay was due to the company’s 401(k) matching contributions. The rise in Cancelmi’s salary to the top spot among the CFOs of the big four public for-profit systems was a significant increase from the $3.6 million he earned in 2022, but closer to the $9.4 million he received in 2021.
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William Rutherford, HCA Healthcare CFO
2023 total compensation = $7,763,050
William Rutherford started working at HCA Healthcare in 1986 as a staff auditor and started his retirement on May 1, 2024. He has served as HCA Healthcare CFO for approximately ten years, succeeding former CEO R. Milton Johnson. Before that, he served as the chief operating officer of HCA’s Physician Services Group. Mike Marks, the company’s ex-senior finance VP, takes over his position. The compensation breakdown of William Rutherford is given below:
| Component | Amount |
| Base Salary | Nearly $1 million |
| Stock Awards | $2 million |
| Option/Stock Appreciation Rights Awards | $2.1 million |
| Non-Equity Incentive Plan Compensation | Exceeding $2.4 million |
Like Samuel Hazen and other top leaders at HCA, the non-equity incentive pay has increased after a low payout in 2022 due to performance level thresholds not being met.
Rutherford was also given $267,000 in additional compensation, of which $90,000 was allocated to the company’s nonqualified retirement plan and $144,000 represented dividend equivalent payments for vested 2021 performance share units.
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Steve Filton, Universal Health Services CFO
2023 total compensation = $4,650,157
Steve Filton has been UHS’ Chief Financial Officer since 2003. The compensation breakdown of the CFO at Universal Health Services is given below:
| Component | Amount |
| Base Salary | $827,000 |
| Equity Compensation (Option Awards) | $2.5 million |
| Non-Equity Incentive Plan Payments | Over $1.2 million |
| Adjustments in Pension Value and Deferred Compensation | Around $47,000 |
| Other Compensation | Just over $19,000 |
| Insurance Premiums | Evenly divided between insurance premiums and contributions from UHS towards retirement and 401(k) plans |
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Kevin Hammons, Community Health Systems CFO
2023 total compensation = $3,750,006
Kevin Hammons started working at CHS and was appointed as CFO in the year, 2020. The breakdown of the compensation is given below:
| Component | Amount |
| Base Salary | $773,000 |
| Option Awards | $415,000 |
| Nonequity Incentive Plan Compensation | $757,000 |
| Restricted Stock Awards | Slightly under $1.7 million |
Hammons observed a shift of $128,000 in pension value and nonqualified deferred compensation earnings, along with slightly over $17,000 in other compensation, primarily from life insurance premiums.
The Bottom Line
That’s all about the executive’s compensation working in the profit health system.
Looking at the above data, clearly shows that the compensation landscape for executives in the profit health system witnessed notable increases in 2023, reflecting the industry’s resilience and growth. Want to receive such healthcare updates on time?
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FAQs
- What are the reasons behind the change in executive compensation within the healthcare industry?
Ans. Executive compensation in the healthcare industry is changing due to several reasons. Some of the most crucial factors include the company’s growth in operating activities, market changes, fluctuations in regulatory policies, and other specific roles and duties assigned to each executive.
- How are executive salaries determined by for-profit health systems such as HCA Healthcare, Tenet Healthcare, Universal Health Services, and Community Health Systems?
Ans. The executive salaries of the profit health system are determined by considering elements such as salary, bonuses, stock grants, and non-equity rewards.
- What effect do patterns in executive compensation have on the overall performance of the healthcare industry?
Ans. Trends in executive compensation can impact the strategies, morale of employees, and perception of shareholders in healthcare systems, which in turn can affect their financial health and competitiveness.
