Not-for-profit perks
Senator Chuck Grassley who most know to be very critical of our current healthcare environment recently released his latest findings on a survey about charity care and community benefits provided by not-for-profit hospital systems.
One of the results related to the survey deals with the perks offered to CEO’s of these non-profit systems. Country Club dues being paid has come into question. A couple of the comments were as follows:
• American Hospital Association spokesman Richard Wade said hospitals began reimbursing administrators for country club dues decades ago because administrators were often the hospitals' chief fundraisers. "In some cases hospitals have dispensed with those practices and in others they have not.” Wade said.
• North Mississippi Vice President and General Counsel Bruce Toppin said when he moved to Tupelo 10 years ago there weren't many restaurants. "In a small town like Tupelo, country clubs are places for social interactions and places to eat. We brought the issue of country-club dues to our compliance committee and said while it wasn't illegal, it didn't look right. The people we were paying for could afford it," Toppin said. "So we stopped doing it at the beginning of the year."
In this ever-increasing struggle to meet financial goals, Boards need to go back and reassess why some of these perks continue. Using the rationale that it has always been done that way, or everyone is doing it will not continue to hold water. Grassley stated “it is especially troubling that executive after executive is having country club dues paid for by nonprofit hospitals."
Senator Grassley plans to begin scrutinizing the many other perks in nonprofit hospitals such as expense accounts, cars, clothing allowances, donations, and the salary packeages of the executives.
One of the results related to the survey deals with the perks offered to CEO’s of these non-profit systems. Country Club dues being paid has come into question. A couple of the comments were as follows:
• American Hospital Association spokesman Richard Wade said hospitals began reimbursing administrators for country club dues decades ago because administrators were often the hospitals' chief fundraisers. "In some cases hospitals have dispensed with those practices and in others they have not.” Wade said.
• North Mississippi Vice President and General Counsel Bruce Toppin said when he moved to Tupelo 10 years ago there weren't many restaurants. "In a small town like Tupelo, country clubs are places for social interactions and places to eat. We brought the issue of country-club dues to our compliance committee and said while it wasn't illegal, it didn't look right. The people we were paying for could afford it," Toppin said. "So we stopped doing it at the beginning of the year."
In this ever-increasing struggle to meet financial goals, Boards need to go back and reassess why some of these perks continue. Using the rationale that it has always been done that way, or everyone is doing it will not continue to hold water. Grassley stated “it is especially troubling that executive after executive is having country club dues paid for by nonprofit hospitals."
Senator Grassley plans to begin scrutinizing the many other perks in nonprofit hospitals such as expense accounts, cars, clothing allowances, donations, and the salary packeages of the executives.
posted by Anonymous at 6:10 AM
11 Comments:
I hope Senator Grassley also looks into the staggering amount of money drug companies spend on perks for physicians.
Just to clarify; the rules were changed almost 7 years ago now for physicians.
Drug reps bring us samples of meds and lunch. Otherwise, ink pens, notepads are all we get unless we want to go out and listen to a talk along with dinner from a speaker touting one of their drugs.
The golf outings, previous trips have been gone for some time now.
Well, there is also the chance to get paid for talking up drugs to other doctors.
Just curious healthblogger, how do you feel about the CEO of Floyd getting his dues paid to the New Albany Country Club and his vehicle paid for?
Don't forget the Jefferson Club as well...
rsI don't think it is fair that the ceo can go around looking good, having fun, and driving around in style at other people's expense and i'm sure the vp gets her share of perks
they obviously don't have a guilty conscious or care about what they're putting their employees through
yeah, they worked hard to get where they are but enough is enough
doctors put up with a lot from patients, FAMILIES, and insurance, so I don't think an occasional free lunch and some pens and paper harm anything
I believe CEO's in privately owned companies are entitled to whatever they can negotiate.
County owned taxpayer institutions should have more restrictions on what is offered.
This is especially true when there are financial hardships, staffing cuts, and other problems.
The article talked about why these things were done in the past, but they are not needed for those purposes now. They are purely perks now.
Whether private or non-profit, the marketplace has a great deal to do with establishing the cost of labor--executive and otherwise. A hospital must offer competitive compensation packages if it wishes to attract and retain staff at every level.
Rule may have been changed. Still the amount spent is absurd.
The "human" drug rep of a major drug company has TWICE the "food" budget for covering ONE medical building in Louisville than the "animal" drug rep, for the same company, for covering 2 STATES. Both "human" and "animal" sides are major players in their respective markets.
I need to go the that medical building. The people who work there must be morbidly obese.
Let's not forget the "delivery system" for those food gifts. Seems like every time I am waiting for my appointment in a doctor's office, one or more stunning young women carrying drug samples and other gifts are ushered in ahead of me. How come none of those reps ever seem to be old, overweight or male? What do the companies know about their target market?
I started in the pharmaceutical business. Its a great job. I left however after I had a epiphany in Norton's parking lot as I accidentally dumped 20 chicken dinners off of my two wheeled cart. I got tired of being a caterer.
Medrep
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