Nonprofit Healthcare Executive Compensation: A Deep-Dive into the Million-Dollar Salaries

A Close Look at Nonprofit Healthcare Salaries

A recent report has brought to light intriguing facts about the compensation of executives working in nonprofit organizations in Cleveland. Of the 57 people earning over $1 million annually, an astounding 56 of them are employed in the healthcare sector. This revelation prompts a keen examination of the financial dynamics and decision-making processes governing the nonprofit healthcare organizations.

Highly Paid Nonprofit Employees

The list of top earners in the Greater Cleveland area's nonprofit sector is dominated predominantly by employees from healthcare centers, university hospitals, and a foundation. The highest compensations were reported from the Cleveland Clinic and University Hospitals. The individual earning the highest compensation was Dr. Peter Brooks, an orthopedic surgeon specialist at Cleveland Clinic Florida, with a reported income of $7,464,421. Following closely were the CEOs of University Hospitals and Cleveland Clinic, Dr. Cliff Megerian and Dr. Tomislav Mihaljevic, with compensations of $5,030,785 and $6,205,435 respectively.

Nonprofit Compensation Outside the Medical Field

Outside the medical field, 31 nonprofit employees in Greater Cleveland earn over $500,000, with some reaching up to $1.1 million. The third-highest paid non-medical nonprofit employee in the Cleveland and Akron metro areas is the Rock and Roll Hall of Fame President Greg Harris.

The Cleveland Clinic’s Stature

The Cleveland Clinic is not only a significant player regionally, but it also holds a prominent position nationally. With reported revenue of $13.5 billion for 2022, it is one of the largest nonprofits in the U.S., ranking seventh nationally. The highest-paid nonprofit employee from a Northeast Ohio organization is again Dr. Peter Brooks from Cleveland Clinic Florida, who made $7.5 million.

Minnesota Nurses Association’s ‘Healing Greed Agenda’

In response to the growing concern over high executive compensations, the Minnesota Nurses Association has proposed a 'Healing Greed Agenda'. This initiative seeks to put patients' needs ahead of corporate greed at nonprofit hospitals by capping hospital CEO salaries. While the specific cap amount is not stated, the proposal aims to limit and make executive pay more transparent, improve public notice when executives decide to close hospitals, protect patients from predatory medical debt collections, and ensure tax-exempt hospitals contribute to the communities they profit from.

High CEO Salaries in Nonprofit Hospitals

The initiative's importance is underscored by examples of high CEO salaries in 2021, with Cleveland Clinic CEO Dr. Tomislav Mihaljevic being paid $12.38 million. Mayo Clinic CEO Gianrico Farrugia also saw a 6.75% increase in his compensation, earning $3.72 million in 2022.

Conclusion

The high compensations of executives in nonprofit healthcare organizations highlight the need for transparency and regulation. As the 'Healing Greed Agenda' suggests, it's critical that nonprofit hospitals prioritize patient needs and give back to their communities, rather than focusing on enriching their top executives.