On page 1 of it’s 2007 Form 990, Return of Organization Exempt from Income Taxes, Lancaster General Hospital reported Excess for the year” as $113,326,709. This was the excess of “Total Revenues” over “Total Expenses.”
LGH reported on page 2 of the same Form 990 that 2007 “Expenses” included a total of $1,183,464 in “Grants paid from donor advised funds.” This represents a mere one percent of its “excess” or, for a regular corporation, what would be called ‘profits’.
In an exchange of letters in March, NewsLanc publisher wrote LGH president Tom Beeman: “LGH, a non-profit ‘public charity’ is one of the least charitable hospitals in the state. We know not what it is doing with its vast earnings, but we do know they are not being directed adequately towards local public health and education.”
Beeman’s response was “This statement is categorically false. Our contributions to our community in charity care, free healthcare services, financial assistance and cash donations to government and school districts exceed other hospitals in our region.”
Note Beeman switches the subject from grants to “local public health and education” to include extraneous items, and from a comparison with hospitals throughout the state to a comparison with regional institutions, some of which are struggling to survive due to LGH’s market dominance.
LGH’s paltry contribution of one percent confirms state statistics indicating that LGH is one of the lowest contributors to charitable causes. So who is being “categorically false?”
NewsLanc brought the above information to to the attention of John Lines, Director of Communications for LGH, over a week ago and asked for a comment. Neither Lines nor Beeman have responded.
Although there are some very community minded organizations out there, it is sad to note the practice over recent years of CEO’s of several of Lancaster’s largest, most prideful institutions of being disingenuous in their actions and statements.
LGH is a “Public Charity.” Much of it profits is due to market dominance, which means the insurance companies have to pay them more and the Lancaster public pays more for insurance. LGH’s profits belong to the public. Other vital public institutions for the purpose of public health and education deserve more than the barest crumbs from LGH’s table.
