(First in a new series concerning Lancaster General Health 2009 federal “Return of Organization Exempt From Income Tax.”)

Editor’s note.  The below has been slightly revised to take into consideration information requested from Lancaster General Hospital a week before publication but only provided in a letter after publication.

Accompanying the copy of Lancaster General Hospital’s Federal  990 Report for 2009 came a  news release entitled “Lancaster General Health Community Benefit Financial Summary, Fiscal Year 2009” that purports that “Total Community Benefit Support” amounted to “$73,645,000.”

However, according to its Federal 990 Report, “Description of Grants and Other Assistance to Individuals in the United States” amounted to $6,655,525, a respectable and welcome increase from the paltry $1,183,464 of 2008,and an increase in contributions from one percent of profits to about 8.5%.

(Profits in 2008 were $113,326,709 and in 2009 were $78,844,643, still among the highest in the state.  Not bad for a Public Charity during a recession year!)

So how does LGH justify exaggerating its “Community Benefits” eleven times?

They are claiming that $49,731,000 in “unpaid cost of care”, normal expenses borne by all hospitals as part of their mandate,  as a “benefit to the community.”

This is comparable to the airline industry treating free meals and baggage service  as “benefits to the community.” Or hoteliers, department stores and super markets claiming they are contributing “benefits to the community” every time they reduce a price or conduct a sale!

Another example is LGH’s treating $7,022,000 for “Un & Under insured Unpaid Cost of Care” also as “community benefit”.    Put simply, bad debt is treated as charity!    If this is proper, we should thank the owners of millions of non-performing home mortgages for their great philanthropy!

We ask ourselves “Why does LGH engage in such deception?” The answer may be they count on the reluctance of the local media to challenge such egregious propaganda, although a careful reading of the recent Sunday News article provides some hints.

Moreover, LGH has become so spoiled by the docility of the Lancaster community that they take affront and refuse to respond to media inquiries.  This isn’t just NewsLanc’s experience.

Next week:   Lavish pay increases for executives despite the Great Recession.