Concerning Lancaster General Health, an editorial “Nonprofit?” concludes:
“We can understand why some states and municipalities across the country have begun proposing and adopting limits on how much the leaders of nonprofit agencies can earn. The CEO of nonprofit watchdog Charity Navigator, Ken Berger, is right: Apologists for the current system of hospital compensation are just trying to rationalize “something that’s not acceptable.
“We don’t propose that LGH should stop paying its executives so much. We just wish the LGH leadership would be as concerned about the employees in the cafeteria and the mailroom as they are about those in the boardroom.”
WATCHDOG: Three wags of the tail to the editors for having the smarts and courage to raise questions about the propriety of so many huge salaries being paid out by a Public Charity.
However, as we noted in “LGH compensation of top three executives a symptom of a clique in control”, the problem lies much deeper and requires essential reforms in the constitution of this ‘Public Charity’ which has become apart from and contemptuous of all public control.
While the Sunday news is opinion is poignant, it offers no suggestions and minimal context. Should executive salaries be lowered? If so, how would employees benefit and by how much? Other than religious institutions there should be no tax exempt organizations.
LGH should be owned by stockholders who, through a board of directors, set salaries etc. LGH would then pay taxes like we non tax exempt citizens are forced to pay.