I've written a number of posts about non-profit companies that are doing very well by their executives, thank you. Last Friday's Wall Street Journal picks up on this theme with regard to hospitals. 77% of non-profit hospitals but only 61% of for-profit hospitals show net income and there is little distinction between the compensation of the executives at either type of organization.
The non-profits have paid their CEOs in the multi-millions, forgiven loans to executives, bought country club memberships, paid for family travel. You know the story - our CEO is so good that we could not exist without him or her.
In the meantime, how many of these non-profit hospitals are providing a "community benefit" commensurate with the tax breaks they receive? One hospital system counts the salaries it pays to its employees as a community benefit, which, I suppose, is one way to define it. Another spent $10,000,000 on advertising how great it is. The non-profits seem to serve those who have insurance, the for-profits those with no insurance or dependent on Medicaid.
How well would these non-profits fare if we were not subsidizing them?
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