Thursday, December 29, 2005

San Mateo Daily Journal-State will audit local hospitals

San Mateo Daily Journal: "State will audit local hospitals
By Heather Murtagh
Fifteen nonprofit hospitals are being investigated by state officials to ensure profits aren’t going to bulk up the salaries of CEOs or other for-profit ventures.

Three local organizations, Kaiser Permanente, Lucile Packard Children’s Hospital and Mills-Peninsula Health Services are among those being scrutinized by the California Board of Equalization because of high profit margins. If the investigation shows profits are misused, the organization would lose its nonprofit tax exemption which saves the companies millions of dollars.

The probe began in December 2004 when the board noticed a high compensation earned by some of the hospital CEOs, said Betty Yee, member of the Board of Equalization.

Yee, who represents 21 counties including San Mateo, said the inquires began before she joined the board. The board periodically looks into all nonprofit organizations but normally in alphabetical order which means it wouldn’t be looking at the records for hospitals all at once. Members wanted to see if the CEO compensation was a trend so it requested to look into all hospitals across the board during 2005. "

1 comment:

Anonymous said...

I am puzzled why people keep paying such dishonest corporate medicine giants such as sutter.