Monday, July 20, 2009

Pay and Care at Nonprofit Hospitals in Washington

In two reports, The Charity of Hospitals and Million-Dollar Doctors, John Ryan of KUOW radio examines the amount of charity care provide by nonprofit hospitals in Washington State as well as the level of pay for the top executives at those hospitals. Charity Navigator’s president & CEO, Ken Berger, weighed in on both topics.

On the first issue of charity care, Ken noted that "the average nonprofit hospital in many parts of the country, the amount of charity care they provide is abysmal, it's like 2.5 percent, and you're considered the best in your class. What that tells us is that there's something profoundly wrong with the current definition of what it's acceptable to do to be defined as a nonprofit hospital."

As for pay, Ken pointed out that among the largest of the 5,400 charities rated by Charity Navigator the average CEO compensation is about $250,000. He said, "I can't buy the arguments that there aren't some doctors out there who would be willing to do this work for less than millions and millions of dollars."

You can learn more about these topics by reading Ken’s blog post Rip-off Non-profit Hospitals.

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