Site Takes Aim at Nonprofit Hospitals' Finances

July 22, 2008

Site Takes Aim at Nonprofit Hospitals' Finances

Joe Novak sees a lot of abuse in the U.S. health-care system.

The former political and media consultant sees it in the profits earned by drug companies and the waste found in the insurance industry.

Mr. Novak also sees it in the financial practices of many nonprofit hospitals — an issue he believes does not get enough scrutiny.

With that in mind, the one-time aide to former Rep. William Lipinski of Chicago started a Washington nonprofit group called WhereTheMoneyGoes, which operates a Web site that uses public records to raise questions about the financial practices of nonprofit hospitals.

Recent posts on the site point to a building project at Sumner Regional Medical Center in Gallatin, Tenn., and the compensation packages paid to top executives at Bethesda Memorial Hospital in Boynton Beach, Fla., and Regional Health Care Services in Casa Grande, Ariz.

Mr. Novak is drumming up attention for his effort through a series of advertisements in The Washington Post, the first of which appeared Monday.

The ad, which points to the cash and investment reserves at three large nonprofit health-care institutions, asks readers why nonprofit hospitals aren’t using some of their reserves to reduce costs for patients.

“Not-for-profit hospitals have become very profitable,” the ad’s headline reads. “Newly posted data suggests that tax-exempt hospitals are contributing to the rising cost of health care.”

The criticism adds to an already lively debate about nonprofit hospitals among some lawmakers and nonprofit leaders.

Sen. Charles Grassley, an Iowa Republican, has been calling for more scrutiny of nonprofit hospitals — and has mentioned the possibility of legislation that would require such groups to spend more of their income on helping needy patients.

— Peter Panepento

Comments

UT Southwestern Medical Center in Dallas is raking in the cash to the extent they can afford expensive art,a special office to handle large donors and other VIP’s complete with on call doctors and lavish parties with pricey wine.The president has used donor funds to buy his way into the world of Dallas high society in art,opera,symphony,and museums.Always with a hand out ,the guy never seems to use his money when he has the university credit cards.Oh,and the county indigent hospital is next door.

— Sheila Jul 22, 01:30 PM #
Novak would find more money more easily if he stuck to the insurers. Their supposed role is to balance the risks, but they push the risk back onto the hospitals, doctors, employers and insureds by negotiating discounts and hiring fleets of staff whose only job is to deny claims. The proof? Their profitability! With so many uninsured and so many with insurance that doesn’t cover costs of care, how can it be that insurance companies continue to grow rich?

— Sharon Jul 22, 02:24 PM #
Why don’t you dig some to see who funds this group! Fairness Foundation….J Patrick Rooney…..“Father of MSA” and insurance exec of former Golden Rule and current MSI company…Guidestar has Fairness Foundations 990 from 2006 showing connection to the Medical Savings Account industry….if you dig deeper you will find that Golden Rule and MSI have been cited by many state insurance commissioners for denying coverage such as prenatal care to beneficiaries…..

— Bob Jul 22, 03:06 PM #
There may be multiple causes for our current healthcare mess, but I am always amazed that so many are willing to give hospitals a “free ride” on this issue. In my opinion, the actions of many of our tax exempt “not for profit” hospitals directly contribute to out of control costs, shaky quality and limited access for the poor and uninsured. Who do we think are paying for the marble floors, flat screen TVs, VIP towers and skyrocketing executive compensation? At the same time, numbers of nurses, pharmacists and other front line caregivers are cut in service of “the margin”. This issue needs more scrutiny, whether from Joe Novak or others from across the political spectrum.

— Louis Serpico MD Jul 23, 09:05 AM #
The so-called not for profit hospital industry learned how to abuse the system from the so-called not for profit insurance industry, chiefly Blue Cross Blue Shield. Witness all of the for profit conversions from late 90’s-2006 or so, when not for profits converted assests and the administrators walked off with hundreds of millions of premium reserves.

High time the so called not for profit hospital industry comes under scrutiny. As a group, the industry pleads poverty while spending lavishly on new projects and paying its execs well. As for high health care costs…nobody cares. The game is gaming reimbursements by advantageous coding. There isn’t one hospital administrator in a thousand who could actually talk coherently about costs.

This industry is riddled with arrogant, overpaid execs who ply their trade using religious orders and nuns as a shield.

— Jesse Jul 23, 06:23 PM #

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