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Friday, March 1, 2024

Atrium CEO Woods gets 40% bump to $13.97M in 2022 compensation

Atrium Health CEO Eugene Woods received total compensation of $13.97 million in 2022, a 40%-plus bump from $9.8 million a year earlier, the Charlotte-based system said. His pay included a $5.4 million bonus and $2.5 million in other incentive comp.

Atrium’s board awarded Woods for arranging the partnership with Downers Grove, Illinois-based Advocate Aurora Health last year to create a combined system with $28 billion in annual revenue. The combined organization ranks among the nation’s 10 largest hospital operators with major market share in the Charlotte, Chicago, Milwaukee and Winston-Salem markets. It has capital of more than $12 billion, operates 67 hospitals and employs about 150,000 people.

Eugene Woods

Eleven other Atrium executives earned more than $1 million in 2022, including seven who received at least $2 million, according to data disclosed last week by the Charlotte-based system. The report doesn’t include top-paid Advocate Aurora executives in the Midwest.

Atrium CFO Anthony DeFurio made $3.6M, Charlotte regional president Ken Haynes received $3.2M and Scott Rissmiller, the system’s top physician executive, received $2.3M, according to the report.

Woods succeeded Michael Tarwater as Atrium’s CEO in 2016 when most of the system’s revenue came from its Charlotte operations. For 2017, his first full year in the post, he made about $5.4 million in total compensation.

In addition to the Advocate Aurora deal, Woods led the combination with Wake Forest Baptist Health in which Charlotte leaders are now in charge of the Winston-Salem-based institituion. As part of that transaction, Wake Forest University’s medical school is opening a campus in downtown Charlotte that is expected to attract significant private investment from health care companies.

Hospital executive compensation is a controversial topic because of soaring health care costs and the not-for-profit nature of Atrium and other systems that dominate the North Carolina industry. Critics cite research showing industry consolidation hasn’t produced significant cost savings or improved outcomes. In February, State Treasurer Dale Folwell released study of the industry’s executive compensation. “These nonprofit hospital executives have lost their mission. They are supposed to make people better, not make themselves richer,” Folwell said.

An Atrium statement noted that “health care administration requires strong, business-savvy leaders who can manage the complexities and challenges the industry is facing — and retaining top talent requires a competitive compensation package.”

It noted that Atrium doesn’t offer stock options like public companies. Atrium is larger than publicly traded companies such as McDonald’s, Kraft Heinz, Truist and Duke Energy in total annual revenue, according to the system’s statement.

Atrium and Advocate Aurora have termed their transaction as partnership, not an acquisition, with equal representation on a combined board. Woods is co-CEO with Advocate’s Jim Skosbergh, who is slated to retire next year. Charlotte is the corporate headquarters.

Novant Health, the state’s second-largest health care system with $7.6 billion in 2022 revenue, paid CEO Carl Armato total compensation of $4.47 million in 2021, the Winston-Salem Journal reported. About 10 Novant executives made at least $1 million in 2021. More recent information has not been released.

Tunde Sotunde, CEO of Durham-based Blue Cross Blue Shield of North Carolina, earned about $4 million in 2021. The insurer has annual revenue of about $11 billion.

Other Atrium executives and their total compensation for 2022:

Brett Denton, executive vice president, chief legal officer – $2.32 million

Jim Dunn, executive vice president, chief people and culture officer – $2.32 million

Carol Lovin, executive vice president, chief integration officer – $2.31 million

Rasu Shrestha, executive vice president, chief strategy and transformation officer – $2.27 million

Terry Williams, executive vice president, chief population, corporate and government affairs officer – $1.98 million

Delvecchio Finley – executive vice president, Atrium Health Navicent in Macon, Georgia – $1.88 million

Vicki Block, senior vice president – central – $1.15 million

Michael Lutes, senior vice president – south – $1.01 million

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