Today there was a letter to the editor in the JG-TC entitled "Nonprofit status betters service". The writer makes an excellent point and it is a point of view held by the public in general. I will attempt to reply.
The big problem with Sarah Bush is that the public does not really know for sure what is going on because SBLHS operates in a cloak of secrecy. When the writer says, "I suspect" she is correct because that is all she can do. She cannot give input or view the business matters of the organization.
No organization should receive tax dollars without disclosure to the public and input from the public. As they will tell you, the SBLHS boards do not represent the public nor are they accountable to the public.
This is a violation of the basic principle under which our system of government was established...no taxation without representation.
I would love to see a public debate on this subject. I appreciate the writer's letter.
Dr. Don Selvidge
dslvdg@aol.com
Saturday, November 12, 2011
Monday, October 3, 2011
Sarah Bush Legal Price-Fixing Increases Costs
In a free market economy, the government has rightly made it illegal for businesses to ban together to "fix" prices. A group of gas stations, dentists, stores cannot have a meeting and decide to set a certain price for their goods or services to consumers.
Price fixing kills a business's incentive to keep their prices low, produce a better quality product, and give better service. It holds the consumer hostage to whatever price the merchant feels like charging and encourages price gouging.
Private non-profit hospitals and healthcare systems have over the past twenty years gradually positioned themselves so they can price-fix and do it legally. Instead of having their physicians work in independent offices, they have gone to hiring them as employees. They then set or "fix" the fees that each of these doctors charge.
Gives Ability to Set Prices Without Market Controls
In the case with Sarah Bush Lincoln Healthcare Systems, the 145 or so doctors on their payroll represent a vast majority of physicians in the area. Few independent offices remain. This gives them the ability to set prices at whatever level they please without any free market controls.
Since SBLHS has such almost absolute control over the fees charged and other variables, the consumer cannot shop around for a lower fee, higher quality, or better service provider. This organization has gained near absolute control over our area's healthcare.
Practice is Legal But Anti-Consumer and Anti-Free Market
While this arrangement at Sarah Bush is perfectly legal, it is still anti-consumer and anti-free market. It has the very same bad effect and worse as the illegal price fixing.
Since SBLHS as a private non-profit is able to operate in secrecy, it was able to do this over the years without the public knowing exactly what they were doing. Had the public known the full implications of these actions, it surely would have been stopped. Now it is well established practice and would be difficult to change.
A Lesson Should Be Learned
A lesson should be learned here. The public must insist that SBLHS open its board meetings, publish the minutes, and have current financial disclosure. If we don't, we will pay dearly in the future in higher costs, decreased quality and choice, and in consumer service.
Dr. Don Selvidge
Action for Affordable Healthcare (aah)
Friday, September 30, 2011
Top-Down Autocratic Management Out of Style
Top-Down, Autocratic Management Out of Style
The world witnessed an unexpected and amazing phenomenon this year in Arab countries which came to be known as the Arab Spring. In some of the strongest autocratic countries in the world where the government tightly controlled their people and flow of information to the people, through the internet and social networking site, the people rose up, organized, and demanded change.
Most non-profit hospitals and health systems have operated with a system similar in many ways to the autocratic governments in the Middle East . Because they are private non-profit businesses, they are able to operate in secrecy and autonomy. They receive exemption from local property tax, state income and sales tax, and federal taxes. They receive grants from the federal government and are able to solicit and receive
tax exempt donations from the public. They use public finds with minimal disclosure and accountability.
As is the case with Sarah Bush Lincoln Health Center
Ths organization is not required to and seemingly does not seek or desire input from the general public. Anyone wanting to communicate with the board must go to great effort to do so and go through an administrator who might or might not communicate their request. (In a 3 hour effort to find board members addresses and e-mails, I was only able to find a handful).
The only information on SBLHC finances and operations must come from the federally mandated Form 990. This report is 18 months old by the time it is available to the public making this information dated and not relevant. Other requests for information is given a polite response, "Since we are a private non-profit business we are not required to release that information."
This Autocratic Management Style is Condescending to the Public
Autocratic management styles whether governments in the Middle East or in non-profit medical centers in America
What has this total control over health care in America
An "Arab Spring" in Health Care is Coming
Hospital boards, administrators, and doctors need to wake up and smell the coffee. The public will only put up with so much. Your power may stifle the traditional media, but the word will get out and people will demand reform. You can only fool the public so long.
Why not voluntarily open the books to your finances and operations and provide timely and relevant information to the public on the internet? Why not open your board meetings to the public and publish the minutes for information that does not interfere with privacy laws? Why not lift the veil of secrecy?
Dr. Don Selvidge
Action for Affordable Healthcare (aah)
Top-Down, Autocratic Management Out of Style
Strength of Indicator response: 0-no/ no response 1- Weak 2. Median 3. Strong
Tuesday, September 27, 2011
Ask Dr. Gott on Medical Arrogance
Peter Gott, MD on Medical Arrogance
In this morning's newspaper, Dr. Peter Gott who writes the column "Ask Dr. Gott" announced that his column will no longer be available for newspapers, but will only be on his website. In today's column he reviews what he feels has made his column successful.
"Perhaps part of my success stems from the fact I admit I'm human. ...I did and still do refer to physicians as being arrogant, pompous, egocentric, and irrationally independent. We pontificate, are self righteous, impatient, and materialistic, have obsessions for fast and expensive cars, believe we are infallible, a step above most people and entitled to fringe benefits and large investment portfolios because of the MD behind our names."
Dr. Gott's description while not true of all MDs and DOs, painfully hits the mark for far too many. The arrogant attitude described is carried on into the hospitals and medical centers in which they work.
These days most of these organizations are non-profit, and increasingly employ their own doctors. But don't let the word "non-profit" fool you. These institutions are structured to render maximum income for the doctors and administrators who use tax free offices and equipment paid for by the public. These are usually the most profitable business in an area with the highest paid top employees, the doctors.
These institutions resist any meaningful disclosure about finances and operations except where forced to by the US
In spite of huge profits and back breaking fees, these institutions still arrogantly ask the public to volunteer to run certain programs and make donations so they can buy more equipment and build more buildings. This allows them to charge higher fees and make more tax free money.
Thanks to Dr. Gott who over the years always treated natural remedies sent in by his readers with respect even though they were not the medically "sanctioned" treatment. He admits that he does not know it all and realizes there may be some validity in alternate remedies. We will miss his column.
More to come,
Dr. Don Selvidge
Action for Affordable Healthcare (aah)
Columnist Peter Gott,MD Got it Right
http://www.drdonsopinion.blogspot.com/
Needlessly Delayed: SBLHC's 2010 Form 990
(Note to administrators and board of SBLHS: I know you want input from the community. I thought you might be interested in my blog on healthcare since much relates to Sarah Bush. I took the liberty of sending the latest entry and will continue to send updates as I get them written. If you do not want to receive these, please let me know and I will delete your name. Dr. Don Selvidge 235-4664, 962-1764 )
Needlessly Delayed
Sarah Bush's 2010 Form 990: Income/Expenses
The federal government requires that private non-profit hospitals give a yearly report
on Form 990. The purpose of this report is to give the community the hospital serves an opportunity to look into the hospital's finances and operations.
Form 990 includes tax status, income and source of income, expense breakdown, net assets, programs and costs, board members and pay of top staff. It also asks if there are any self-dealing transactions, conflicts of interest, lobbying activity, and other questions.
In my opinion this report is filed needlessly late (12 months after close of financial year). This time included 6 months plus two requested 3 month extensions putting its filing date for year ending June 30, 2010 at May 2, 2011. I am told that it actually takes this much time to get the data together, have it audited, and get it filed.
I am not convinced. An organization as highly organized as SBLHS with such talented people and extensive resources surely can get this report together within 6 months or sooner if they wanted to. If the auditor causes the delay, I think they need to get another auditor. Could it be they want to make the report's release to the public as old and irrelevant as possible?
I am not convinced. An organization as highly organized as SBLHS with such talented people and extensive resources surely can get this report together within 6 months or sooner if they wanted to. If the auditor causes the delay, I think they need to get another auditor. Could it be they want to make the report's release to the public as old and irrelevant as possible?
In the rest of this article I will give some information and observation on the SBLHS income. In future postings I will talk about expenses and other information.
SBLHC's Financial Summary
In the area of income the reports gives SBLHC 2010 gross receipts at 368,187,007. This represents an increase of $140,734,700 or 38% increase over the previous year. Gross receipts is not actually collected, but is what is charged for services. (I'm confused. Why do they call it gross receipts?)
The amount actually collected for the year was $193,981,053 was increased by 11% over the $173,138,671 collected in the previous year. I would be interested in what specifically brought the additional 11% increase in income.
The investment income for June 2010 year was $8,824,515 up from -$4,602,808 the previous year an increase of about 300%. I was unable to find where these investments were made.
It appears that after all is said and done, SBLHC recorded $18,471,574 profit up from $3,051,055 for the year an increase of about 600%.
I hope to sponsor a meeting in the future inviting a representative of SBLHC to answer all the questions we may have about the Form 990 for year ending June 2010.
I will continue to analyze SBLHC's Form 990 in future postings. I believe they are doing a great job. I also believe the public should be fully aware (and apparently the US government thinks so as well) of their finances and operation.
More Later.
Dr. Don Selvidge
Action for Affordable Healthcare (AAH)
Monday, September 26, 2011
Needlessly Delayed: SBLHC's 2010 Form 990
Needlessly Delayed
Sarah Bush's 2010 Form 990: Income/Expenses
The federal government requires that private non-profit hospitals give a yearly report
on Form 990. The purpose of this report is to give the community the hospital serves an opportunity to look into the hospital's finances and operations.
Form 990 includes tax status, income and source of income, expense breakdown, net assets, programs and costs, board members and pay of top staff. It also asks if there are any self-dealing transactions, conflicts of interest, lobbying activity, and other questions.
In my opinion this report is filed needlessly late (12 months after close of financial year). This time included 6 months plus two requested 3 month extensions putting its filing date for year ending June 30, 2010 at May 2, 2011. I am told that it actually takes this much time to get the data together, have it audited, and get it filed.
I am not convinced. An organization as highly organized as SBLHS with such talented people and extensive resources surely can get this report together within 6 months or sooner if they wanted to. If the auditor causes the delay, I think they need to get another auditor. Could it be they want to make the report's release to the public as old and irrelevant as possible?
I am not convinced. An organization as highly organized as SBLHS with such talented people and extensive resources surely can get this report together within 6 months or sooner if they wanted to. If the auditor causes the delay, I think they need to get another auditor. Could it be they want to make the report's release to the public as old and irrelevant as possible?
In the rest of this article I will give some information and observation on the SBLHS income. In future postings I will talk about expenses and other information.
SBLHC's Financial Summary
In the area of income the reports gives SBLHC 2010 gross receipts at 368,187,007. This represents an increase of $140,734,700 or 38% increase over the previous year. Gross receipts is not actually collected, but is what is charged for services. (I'm confused. Why do they call it gross receipts?)
The amount actually collected for the year was $193,981,053 was increased by 11% over the $173,138,671 collected in the previous year. I would be interested in what specifically brought the additional 11% increase in income.
The investment income for June 2010 year was $8,824,515 up from -$4,602,808 the previous year an increase of about 300%. I was unable to find where these investments were made.
It appears that after all is said and done, SBLHC recorded $18,471,574 profit up from $3,051,055 for the year an increase of about 600%.
I hope to sponsor a meeting in the future inviting a representative of SBLHC to answer all the questions we may have about the form 990 ending year June 2010.
More Later.
Dr. Don Selvidge,
Action for Affordable Healthcare
Saturday, April 30, 2011
Letter to Sarah Bush Lincoln Boards
Note:
I sent this letter to the boards of Sarah Bush Lincoln Health Center (the hospital) and Health System (out lying clinics and other interests). I am not sure where one begins and other ends.
When a single public health care institution gains control of almost every aspect of the health care of a community, there is little free market and thus no competitive force to control prices, give variety, and maintain quality. As a private non-profit they
are able to maintain near absolute control due to their favored tax status and
ability to operate in relative secrecy.
are able to maintain near absolute control due to their favored tax status and
ability to operate in relative secrecy.
They also are able to assure that in spite of higher fees the public continues to come to them because over 90% of the doctors work for them and are obligated to and rewarded for sending business to them.
This is a perfect monopoly and assures out of control costs. Dr. Don
This is a perfect monopoly and assures out of control costs. Dr. Don
4/29/11
To: Sarah Bush Lincoln
Re: Competition with Private Sector
Dear Board Members:
Recently I noticed an ad in the Journal Gazette advertising massage therapy services at Sarah Bush giving a special discount through April. This is an example of what I feel is an ever increasing trend where the hospital aggressively goes in direct competition with private business.
Because of the hospital system's size, resources, and tax exempt status, private sector massage therapists are placed at a competitive disadvantage. This causes many to go out of business or struggle to survive. This is true of other private health care businesses as well.
Sarah Bush (and Carle) employ 98% of the doctors. These doctors are the gateway to health care and are expected to funnel their patients into your own hospital system. Since your system seeks to cover every health care service, the private sector is unfairly left out.
This is not good for the community since the free market and private enterprise which helps control costs, improves service, and brings innovation, is eliminated. Everybody loses. When you eliminate the tax payers, eventually there will not be enough tax payers to pay the taxes.
I know you have within your capability to essentially eliminate all private sector competition. I plead with you to use restraint. Rather than aggressively competing with private business, why not encourage community health regardless of the provider. Concentrate on the services your hospital system can uniquely provide.
Thank you for taking time to read my letter.
Respectfully yours,
Don Selvidge , DC
P.S. I am sure as board members you want input from the public. In this day and age the easiest way for the public to do this is through e-mail. Would it be possible for each of the board members to have an e-mail address through the hospital so you can be accessed more easily?
Thursday, April 28, 2011
What is Action for Affordable Healthcare (aah)?
I started the non-profit organization "aah" to help the public find solutions to their ever rising health care costs.
Those who have health insurance are in a desparate circumstances. Deductables and co-pays continue to increase dramatically while insurance premiums do the same. They know they cannot afford to go without insurance, but are increasingly finding it unaffordable.
Health care takes up 17.5 % of the Gross National Product in the United States (up from 5% in 1960) and continue to increase 2 times the rate of inflation. Health care expenses cause more bankruptcies than any other cause and keeps the public from gettting the preventative care they need to stay healthy.
I talked to a couple the other day age 66 and age 63. He is on Medicare and has a number of health problems but she is healthy with no risk factors. They pay $900 a month combined for their insurance premiums which erodes their retirement savings and only takes care of the basics without deductables and copays.
Another couple is covered by his employers insurance plan but their share comes to $6500 a year with a $4500 deductable.
Health care costs could be reduced by 50% if the free market were allowed to function in this industry. As it exists, there is essentially no competition that brings prices down. Medical facilities, doctors, drug companies, and insurance companies charge whatever they like. The public must pay the price or do without.
I hope to make the public aware that we do not have to put up with the medical monopoly as it exists.
There are actions we can all take. Some of these are:
-Insist that non-profit hospitals be transparent with their operations and finances. This information most be timely, easily accessible, and content rich.
-Encourage that Sarah Bush and Carle as tax exempt community health care facilities allow competition by allowing their employee doctors without penalty to refer to any willing provider and stop payment incentives to doctors for increasing business to their own institution.
-That health care systems move toward having doctors operate their own independant or group practices where the competition is restored between providers.
-That fees for services are easily available to the public so they can be compared.
-Disclosure is made as to what percentage of a fee paying patient's bill goes to pay for free or reduced care for other patients.
Dr. Don Selvidge
Those who have health insurance are in a desparate circumstances. Deductables and co-pays continue to increase dramatically while insurance premiums do the same. They know they cannot afford to go without insurance, but are increasingly finding it unaffordable.
Health care takes up 17.5 % of the Gross National Product in the United States (up from 5% in 1960) and continue to increase 2 times the rate of inflation. Health care expenses cause more bankruptcies than any other cause and keeps the public from gettting the preventative care they need to stay healthy.
I talked to a couple the other day age 66 and age 63. He is on Medicare and has a number of health problems but she is healthy with no risk factors. They pay $900 a month combined for their insurance premiums which erodes their retirement savings and only takes care of the basics without deductables and copays.
Another couple is covered by his employers insurance plan but their share comes to $6500 a year with a $4500 deductable.
Health care costs could be reduced by 50% if the free market were allowed to function in this industry. As it exists, there is essentially no competition that brings prices down. Medical facilities, doctors, drug companies, and insurance companies charge whatever they like. The public must pay the price or do without.
I hope to make the public aware that we do not have to put up with the medical monopoly as it exists.
There are actions we can all take. Some of these are:
-Insist that non-profit hospitals be transparent with their operations and finances. This information most be timely, easily accessible, and content rich.
-Encourage that Sarah Bush and Carle as tax exempt community health care facilities allow competition by allowing their employee doctors without penalty to refer to any willing provider and stop payment incentives to doctors for increasing business to their own institution.
-That health care systems move toward having doctors operate their own independant or group practices where the competition is restored between providers.
-That fees for services are easily available to the public so they can be compared.
-Disclosure is made as to what percentage of a fee paying patient's bill goes to pay for free or reduced care for other patients.
Dr. Don Selvidge
Tuesday, January 11, 2011
I Need Your Help
- Please Help Me—We Should Know
Since they are private non-profit enterprises, the only information the public gets from Sarah Bush and Carle are the news releases written by their staff with their own spin. I believe it in the public’s interest to know enough about the finances and operations of these fine institutions so we can at least try to influence future decisions.
Regardless of their organizational structure as a private non-profit, the federal government believes we have the right to know. The form 990 which is required to be filed once a year, clearly states “Open toPublic Inspection”, but its figures are 12-18 months old before we receive it.
There have no intent to harm or degrade or tarnish the image of these institutions—on the contrary—make them better. The public cannot help if it cannot obtain timely information.
Among my goals in this website are:
· To encourage our local hospital to be transparent about operations and finances.
· To have a source for the public to receive factual information about these institutions difficult or impossible to obtain from usual sources.
· To reduce insurance and health care costs.
· To provide my analysis.
You can help by:
- Getting the word out about this blog.
- Signing up to receive my posts automatically to your e-mail.
Providing me with input. My private e-mail is: dslvdg@aol.com.
My address is: P.O. box 943, Mattoon, Il. 61938
Thanks. Dr. Don
Saturday, January 8, 2011
Non-Profit Hospitals Extremely Profitable for Some
When one thinks of a tax exempt non-profit, one thinks of fund raisers, skimpy budgets, and sacrificial pay. Not true when it comes to non-profit hospitals.
Actually non-profit hospitals that employ their doctors, have the highest paid top level employees with the most generous benefits in the nation.
Although employee pay is a not disclosed, estimates are our local hospital pays its 145 doctors between (likely low estimate) $225,000 to $1,000,000 depending on experience, specialty, and so forth combining base salary and production bonuses. Also, there is an estimated $50,000 yearly executive benefit package including health care, vacation, retirement , malpractice insurance, continuing education, and entertainment. In June 2009 the CEO’s pay was $641,000 and would likely be at least $800,00 ($400 a hour) by now (estimated).
I believe these executives and skilled physicians deserve whatever the free market will pay. If the competiton of a free market were allowed, I doubt the salaries would be this high. However, they would still be highy compensated.
Hospitals are not like other non-profits. They charge high fees (with huge mark-ups) directly to the public for the services they provide. Since the only competition is other non-profit hospitals like themselves and access to health care is possible only through the doctors they employ, they have a captive market. The public pays their price or does without.
True, hospitals must provide care (paid for by you) to the portion of the population that pays below cost or pays nothing at all. It must also benefit the community in other ways. Note: the paying public makes the sacrafise for the poor--not doctors or hospital executives.
(Estimates are that 40% of public payment for insurance, doctor bills, and fees to hospitals goes to pay for those unable to pay. The public struggles to pay, makes sacrifices, yet gets no recognition or tax break for their generous donation to the poor).
Don't let the word "non-profit" fool you--hospitals are extremely profitable--for some.
Actually non-profit hospitals that employ their doctors, have the highest paid top level employees with the most generous benefits in the nation.
Although employee pay is a not disclosed, estimates are our local hospital pays its 145 doctors between (likely low estimate) $225,000 to $1,000,000 depending on experience, specialty, and so forth combining base salary and production bonuses. Also, there is an estimated $50,000 yearly executive benefit package including health care, vacation, retirement , malpractice insurance, continuing education, and entertainment. In June 2009 the CEO’s pay was $641,000 and would likely be at least $800,00 ($400 a hour) by now (estimated).
I believe these executives and skilled physicians deserve whatever the free market will pay. If the competiton of a free market were allowed, I doubt the salaries would be this high. However, they would still be highy compensated.
Hospitals are not like other non-profits. They charge high fees (with huge mark-ups) directly to the public for the services they provide. Since the only competition is other non-profit hospitals like themselves and access to health care is possible only through the doctors they employ, they have a captive market. The public pays their price or does without.
True, hospitals must provide care (paid for by you) to the portion of the population that pays below cost or pays nothing at all. It must also benefit the community in other ways. Note: the paying public makes the sacrafise for the poor--not doctors or hospital executives.
(Estimates are that 40% of public payment for insurance, doctor bills, and fees to hospitals goes to pay for those unable to pay. The public struggles to pay, makes sacrifices, yet gets no recognition or tax break for their generous donation to the poor).
Don't let the word "non-profit" fool you--hospitals are extremely profitable--for some.
SBLMH Top Salaries Over $1 Million
I finally figured out how to get a copy of the federally required Form 990 which non-profit hospitals are required to fill out one time a year. This has a wealth of information on finances and operations of these institutions.
You can find Form 990 of any non-profit hospital or foundation at http://www2.guidestar.org/.
The lastest one available is for the year ending June 30, 2009 labeled 2008. Unfortunately, these reports are 12 to 18 months old before becoming available to the public.
I plan to make some observations from this report from time to time on this blog.
I noted on page 2 of "Compensation Information" toward the end the salaries and compensation of the officers, directors, trustees, key employees, and highest compensated key employees. Those that stood out were the compensation--salaries, bonus, benefits--of the following employees: Dr. Nguyen--$1,071,181 up $304,427 the previous year; Dr. M. Smith $1,051,440 up from $340,427; CEO Gary Barnett $641,000 from $202,589. This was a year and a half ago and with the huge increases I wonder what they are compensated today in January 2011.
I am not saying these people are not worth what they are being paid. I am sure there are things I do not understand.
Perhaps someone would answer these questions: 1) Why these huge increases during a time of economic recession when many people are unemployed and struggling to pay ever increasing insurance, co-pays, and deductables? 2) When do the salaries of top employees of non-profit tax exempt institutions become excessive? 3) How are these huge salaries tied to the ultimate cost to the consumer where costs for healthcare are rising double to cost of living?
Could someone provide me with an explanation here? Am I missing something?
Dr. Don
You can find Form 990 of any non-profit hospital or foundation at http://www2.guidestar.org/.
The lastest one available is for the year ending June 30, 2009 labeled 2008. Unfortunately, these reports are 12 to 18 months old before becoming available to the public.
I plan to make some observations from this report from time to time on this blog.
I noted on page 2 of "Compensation Information" toward the end the salaries and compensation of the officers, directors, trustees, key employees, and highest compensated key employees. Those that stood out were the compensation--salaries, bonus, benefits--of the following employees: Dr. Nguyen--$1,071,181 up $304,427 the previous year; Dr. M. Smith $1,051,440 up from $340,427; CEO Gary Barnett $641,000 from $202,589. This was a year and a half ago and with the huge increases I wonder what they are compensated today in January 2011.
I am not saying these people are not worth what they are being paid. I am sure there are things I do not understand.
Perhaps someone would answer these questions: 1) Why these huge increases during a time of economic recession when many people are unemployed and struggling to pay ever increasing insurance, co-pays, and deductables? 2) When do the salaries of top employees of non-profit tax exempt institutions become excessive? 3) How are these huge salaries tied to the ultimate cost to the consumer where costs for healthcare are rising double to cost of living?
Could someone provide me with an explanation here? Am I missing something?
Dr. Don
Non-Profit Transparency
1-5-11
Transparancy Important for Non-Profit Hospitals
Private non-profit institutions such as churches and hospitals have few financial and operations disclosure requirements. Churches tend to be more open because members expect it or go elsewhere.
The community wants to know about the operations and finances of their private non-profit hospital but for some reason boards are reluctant. Hospitals such as Healthcare Partners, Mayo Foundation, and New York Presbyterian post their audited financial statements on line and have experienced positive results.
An increasing number of hospitals post quarterly financial statements on line including balance sheet, income statement, cash flow statement, cash on hand, debt service, and operating information such as patient volume, bed count, payer mix, and other data.
The federal government does require a detailed yearly report on Form 990 from private non-profit hospital concerning operations and finances. It is clearly marked: “Open to Public Inspection”. (Go to http://www2.guidestar.org/ to view the 990 of any private non-profit hospital). Many hospitals give these out on request and in some states distribution is legally required.
The problem with Form 990 is the information is 12 to 18 months old before it becomes available to the public. To be considered truly transparent a health system’s information should be timely, easily accessible and content-rich.
In our country where health care expenses are rising twice the cost of living and take up nearly one fifth of the GNP, the public and the hospital will benefit from greater transparancy.
Transparancy Important for Non-Profit Hospitals
Private non-profit institutions such as churches and hospitals have few financial and operations disclosure requirements. Churches tend to be more open because members expect it or go elsewhere.
The community wants to know about the operations and finances of their private non-profit hospital but for some reason boards are reluctant. Hospitals such as Healthcare Partners, Mayo Foundation, and New York Presbyterian post their audited financial statements on line and have experienced positive results.
An increasing number of hospitals post quarterly financial statements on line including balance sheet, income statement, cash flow statement, cash on hand, debt service, and operating information such as patient volume, bed count, payer mix, and other data.
The federal government does require a detailed yearly report on Form 990 from private non-profit hospital concerning operations and finances. It is clearly marked: “Open to Public Inspection”. (Go to http://www2.guidestar.org/ to view the 990 of any private non-profit hospital). Many hospitals give these out on request and in some states distribution is legally required.
The problem with Form 990 is the information is 12 to 18 months old before it becomes available to the public. To be considered truly transparent a health system’s information should be timely, easily accessible and content-rich.
In our country where health care expenses are rising twice the cost of living and take up nearly one fifth of the GNP, the public and the hospital will benefit from greater transparancy.
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