Another example: BJC Healthcare, a 14-hospital, St. Louis-based enterprise, claimed $1.8 billion in community benefits to various towns in 2004, Velvel writes, but over one-half of that, or $937 million, was compensation paid its employees, including $1.8 million to its CEO, while only $35 million was charitable care. Velvel said BJC is contending that as the jobs it produces have a beneficial impact on its communities it is proper to call the salaries a community benefit.
The Journal reports BJC wont count its payroll as a community benefit in the future because of new IRS standards that wont require the hospitals to provide any minimum amount of charity care. Of this development, Velvel asks, Whats that all about? These are at least supposed to be charity hospitals after all. Can these hospitals nonetheless provide no charity care since there will be no minimum amount required?
The huge tax breaks received by wealthy, supposedly charitable hospitals are raising eyebrows in Congress and elsewhere because of the dearth of true charitable care, Velvel continues, in an essay published in his new book America 2008 from Doukathsan Press.
The vast sums these institutions take in are going elsewhere than to such care. As is typical of tax free nonprofits of many types, they put their money into fabulous buildingsand, as always, large salaries for administrators, Velvel points out. At Northwestern Memorial, the Chief Executive Officer recently received a $16.4 million payout one would not ordinarily associate with a charitable institution.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).