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

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.

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

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.