NewsLanc is not critical of the levels of compensation of executives at Lancaster General Health (LGH). The hospital operates in what seems to be an exemplary manner and is a source of much pride to our community. The executives appear to be doing their jobs well and are entitled to compensation comparable to executives in similar positions elsewhere. That being said:
Much of LGH’s profitability is due to LGH’s market dominance and resulting ability to obtain higher payments directly from insurance companies and indirectly from the insured—the Lancaster County public. NewsLanc’s issue is the failure of this ‘Public Charity’, one of the most profitable hospitals in the state, to spare more than a measly 1% of its “excess” (profits) with the community .
In stark contrasts to non-profit LGH’s “grants” of only a meager one million out of profits of $113 million, for fiscal year July 2007 through June 2008, President/CEO Tom Beeman alone earned $1,280,262. In other words, Beeman received $96,798 more than the total grant program!
Executive Vice President /Chief Operating Officer Marion McGowan was paid $793,629. Executive Vice President Jan Bergen received $614,320. Both are paid more than half the amount of the grant program. Many other executives receive earnings ranging from the low to mid- six figures.
One cannot tell from LGH’s Income Tax Filing to what use LGH is putting its windfall profits. What is clear is that some of this money would be better spent funding a syringe exchange and providing a daily clinic for the treatment of over 5,000 heroin addicts, thus helping them to return to productive citizens and curtailing the rate of the spread of various social diseases , especially HIV/AIDS , through sexual contact.
Furthermore, $20 million instead of one million should be allocated for community betterment in education, to shelter the families of homeless children, provide dental treatment for the poor, and other social safety-net services. Over $80 million would still be available for facility enlargement, modernization, and expansion.
Medical professionals are bright people and they clearly know more about treating sickness than the rest of us. However, that does not make them omniscient stewards of how the public’s wealth should be spent. Instead of hiding behind an iron curtain of propaganda and silence, it is time for LGH to seek transparency in its dealings and to candidly communicate with and, above all, engage in a dialogue with the public.
It is also nauseating to think that the execs of LGH are paying themselves huge salaries made on the sick and dying. Reminds me of the saying “he/she would steal the eyes out of a dead man”. Shame on LGH!
If it were not for NewsLanc, we would never know how these executives pay themselves huge salaries but have no money for public health. How I would love to see NewsLanc as a supplement to the Sunday newspaper, or on the air with a talk radio show! Spread the word!
LGH does make a contribution to the city in lieu of property tax.