Second in a series concerning LGH’s 2008 Federal 990 Report

In analyzing public charity Lancaster General Hospital’s 2008 Federal 990 report, entitled “Return of Organization Exempt From Income Tax,” NewsLanc notes the top ten LGH executives on average received a 60% increase in “Base Compensation.” When NewsLanc discards data concerning an executive who may have been part time in 2007, the percentage increase is 50%.

These increases by a ‘Public Charity’ took place during the severest year of recession since the Great Depression, a time according to national statistics when, there was virtually no increase in average wages.

LGH’s President Thomas Beeman’s “Total Compensation” package amounted to $1,347,309 for the year.  His “Base Compensation” increased from $530,298 to $605,676, an increase in “Base Compensation” of 14%.

Executive Vice President Jan Bergen’s “Total Compensation” package amounted to $681, 607 for the year.  Her “Base Compensation” increased from $256,333 to $351,046, an increase in “Base Compensation” of 37%.

Executive Vice President Marion McGowan’s “Total Compensation” package amounted to $726,027 for the year.  His “Base Compensation” increased from $205,043 to $423,990, an increase in “Base Compensation” of 107%.

Meanwhile, Lancaster General Hospital’s profit, defined on the form as “Revenue less expenses” dropped 30% from $113,326,709 in 2007 to $78,844,643.  Despite the decline, it is still one of the highest profits of any hospital in the state.

On the positive side, “Grants” increased from $1,183,464 or one percent of earnings in 2007 to $6,655,525 or 8%.

This still left LGH with $113,326,709 for 2007 and $78,844,643 for 2008 after grants and other expenses.

These huge profits in large part result from LGH’s market dominance and ability to charge insurance companies higher net rates.    In turn, the insurance companies charge county residents higher premiums than would be otherwise.

Since the media and public are banned from all Board of Trustee meetings except for the show case “Annual Meeting”, the self perpetuating trustees are shielded from transparency and public accountability.

(Editor’s note:   LGH’s Communication Department and president were provided this article a week ago and invited to suggest corrections or make comments.   There were none.)

The series next will address LGH’s recent purchase of the Heart Group.