2023 salaries of nonprofit health system CEOs in the Philadelphia area revealed.

In a comprehensive review of executive compensation within nonprofit health systems, Media News Source revealed significant disparities among the region’s healthcare leaders in 2023. An analysis of IRS Form 990 filings highlighted that executives of the largest healthcare systems, measured by revenue and hospital count, typically received the largest pay packages. Notably, these findings reflect the complex landscape of nonprofit leadership and its increasing scrutiny.

At the forefront of compensation was Joseph G. Cacchione, the CEO of Thomas Jefferson University, who earned .38 million during his first full year in the role. Despite operating with approximately 0 million less in revenue than the University of Pennsylvania Health System, which generated .9 billion, Cacchione led a health system with a broader hospital footprint. His leadership facilitated the acquisition of the Lehigh Valley Health Network, positioning Jefferson’s revenue to potentially reach billion with a network of 32 hospitals across a wide geographical area.

Following closely was Madeline Bell, the longtime CEO of the Children’s Hospital of Philadelphia, who received .75 million, indicating her commitment to enhancing pediatric healthcare. In contrast, Al Maghazehe of Capital Health, despite ranking among the top five highest-paid CEOs at .55 million, supervised a system with .2 billion in revenue, placing it in the lower revenue brackets for compensation.

This trend of outsized executive pay amid varying organizational scales has ignited discourse regarding the justification of nonprofit health system tax exemptions. Critics, including members of Congress and advocacy groups, argue that substantial compensation packages should correlate with adequate charity care contributions. A recent Pennsylvania court ruling affirmed that tying executive compensation to profitability is permissible, recognizing that nonprofit organizations must compete to attract talent.

Of particular interest was the pay structure at Cooper University Health Care. The co-CEOs, Kevin O’Dowd and Anthony Mazzarelli, collectively received .27 million in 2023, highlighting an unusual dual leadership arrangement that garnered attention due to its financial success during their tenure.

The 2023 compensation landscape underscores a critical examination of nonprofit health system governance as stakeholders increasingly question if exorbitant executive pay aligns with mission-driven healthcare objectives. As this conversation evolves, it remains to be seen how regulatory frameworks will adapt to address the intricate balance between compensation, public service, and community health responsibilities.