Health Wagon CEO’s pay gains attention

Once best known outside the region for its role in an annual Remote Area Medical pop-up clinic at the Wise County Fairgrounds, Southwest Virginia’s Health Wagon has gained new notoriety — and lost state funding — over executive pay. After Cardinal News reported in May that Health Wagon President and CEO Teresa Gardner Tyson makes more than $520,000 annually, Virginia legislators cut more than $800,000 in funding for the Health Wagon.

The Health Wagon provides free medical, dental and vision care to six Southwest Virginia counties and Norton through three clinics, a pharmacy and four bus-sized mobile units. It was founded in 1980 by Sister Bernadette Kenny, who offered care from her Volkswagen Beetle. Median household income in the Health Wagon’s service area ranges from $36,974 in Norton to $47,541 in Wise County.

The General Assembly began funding the Health Wagon in 2005, allocating $75,000 over two years. The amount fluctuated, but funding continued and eventually grew to $402,717 annually beginning in 2018.

That ended when legislators learned about Tyson’s compensation package, $522,326, according to the organization’s most recent filing with the IRS, which covers 2022. That’s a 113.9% increase from her pay in 2019. Paula Hill-Collins, clinical director and Tyson’s friend since the eighth grade, received $308,725 — a 53.2% increase from 2019.

During that time, the Health Wagon’s revenue increased 87%, to more than $9.2 million. The organization’s executive compensation fell from 19.2% of revenue in 2018, when total executive compensation was $467,390, to 10.7% in 2022.

By comparison, CrossOver Healthcare Ministry, which runs two Richmond-area clinics, had more than $9.5 million in revenue for the fiscal year ending June 2023, and its CEO’s compensation was $175,102. Its medical director received $186,885.

Tyson says comparing the Health Wagon “to other free clinics is neither fair to us nor them when there are many key distinctions that set us apart.” With its many services, she says, her organization is more like federally qualified health centers, nonprofits serving medically underserved populations regardless of ability to pay.

The state funding cut won’t affect services, says Tyson: “We are always seeking alternative funding sources, including grants, donations and active partnerships. To the contrary, we are expanding programs.”

The Health Wagon’s free pharmacy in Wise opened in July, just before the 25th annual pop-up clinic served 574 people, this time at the University of Virginia’s College at Wise.