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.