Business: Nonprofits fill pockets

Nonprofit hospitals are like the homeless of the health care industry: constantly on the prowl for donations of both money and time.

But don't mistake their perennial poor-mouthing for poverty. Most Tampa Bay area nonprofit hospitals are doing quite well and their chief executives are doing even better.

Though inpatient admissions have been relatively flat, the savviest nonprofits are taking more outpatient business from their for-profit competitors. Big networks like BayCare Health Care System, with seven hospitals, pushed annual revenue to nearly $2-billion last year by making money on everything from home care to doctors' practices.

Add in hospitals' better-than-average returns on stock investments and many area nonprofits feel flush. BayCare is building a new $200-million hospital in north Hillsborough County; All Children's is replacing its St. Petersburg facility with a $300-million-plus complex; even Bayfront Medical Center, which expects an operating loss for 2006, is consolidating its cardiac care in a new building across from its St. Petersburg campus.

Nonprofit hospital executives say they must make money so they can provide millions of dollars in charity care as well as constantly upgrade their operations. "In a typical year, we'll spend $30- to $35-million just on new equipment and capital improvements," said Arnold Stenberg, All Children's chief financial officer.

They also fear that their biggest source of revenue - state and federal governments - could slash budgets, as they did in the late 1990s.

"2006 was a very good year," said Tommy Inzina, chief financial officer for BayCare, which went from break-even in 1997 to an operating margin of 5.2 percent last year. "But if Medicare and Medicaid funding were to change, that could have a major impact on our finances."

Phil Beauchamp, Morton Plant Mease Health Care: $3.8-million (Includes one-time payouts from retirement and deferred compensa- tion plans on base salary of $535,000.)

Bayfront Medical Center, St. Petersburg; St. Anthony's, St. Petersburg; Helen Ellis, Tarpon Springs; Sun Coast, Largo

Source: Hospitals' IRS Form 990s for fiscal year 2005. Does not include assets of hospital foundations, which file separately.

Hospital boards set executive pay based on comparable salaries for executives at similar-sized facilities. A recent Johns Hopkins University study found that non-profit hospitals pay 7 percent more than for-profit hospitals.

University Community Hospital in Tampa said its board hires an outside consultant to compare its executive's salary to his peers nationwide. The board also says the chief executive does not take part in salary discussions. However, UCH refused to make public either the comparable salary study or board minutes involving salary determinations, saying both were confidential.

BayCare Health System released its 2006 executive market survey that included data from three consulting firms on pay ranges for executives at similar-sized hospital systems. Chief executive Steve Mason's 2006 total compensation package of just over $1-million was between the 50th and 75th percentile range of nationwide positions.

Though hospitals report what they pay their chief executives, that may not be the whole picture. It was recently disclosed that Sue Brody, chief executive of Bayfront Medical Center in St. Petersburg, had been paid $20,00 to $25,000 a year for her membership in a group funded by several hospital vendors, including major pharmaceutical companies. That was in addition to Brody's compensation package at Bayfront, which totaled nearly $680,000 in 2005.

Phil Beauchamp, Morton Plant Mease Health Care $3.8-million (includes distribution from retirement and deferred compensation plans on base salary of $535,000)

Isaac Mallah, St. Joseph Health Care Center $3.1-million (includes final distribution from deferred compensation plan on base salary of $569,863)

Calvin Glidewell, University Community Medical Center (now CEO, UHC Carrollwood), $572,703

- Nonprofit with biggest surplus at year-end: St. Joseph's Hospital, Tampa: $53.3-million

- Nonprofits' spending on lobbying: H. Lee Moffitt Cancer Center and Research Institute, Tampa: $457,662 Tampa General Hospital: Tampa: $258,974 All Children's, St. Petersburg, $156,138

- Amount Tampa General Hospital spent on organ procurement: $13.5-million (Lifelink of Florida)

Nonprofit organizations are required to file their financial statements annually with the Internal Revenue Service on a Form 990. These documents must also be made available to the public for either inspection or copies, though the organization may charge copying costs. The filings are often made several months after the close of the fiscal year, so the information may be dated.

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by mike	10/06/07 03:09 PM
I met phil beauchamp yesterday at northbay hospital its just unreal that he makes that much money while the nursing staff works so hard for peanuts. this topic should really be made public so everyone knows whats going on.

by RN	04/17/07 10:28 PM
I am proud to be affiliated with South Florida Baptist Hospital. ALL team members are treated very well, like family and that is hiw we treat our patients. The $$ really go back to the facility. Our new ER allows for < 1hr wait times in our ER.

by Nancy	03/22/07 10:42 PM
Just think how much more money these hospitals would have towards hiring more staff and capital improvements if they did not pay these outrageous salaries! Non-profit my a**!

by Huh	03/09/07 11:15 AM
UCH Suncoast and UCH Medical Center were big money losers and yet their CEO's get reassigned rather than released. The message is clear, know the right person and keep your job and your six figure salary.

by Happy to be a UCH employee	03/08/07 08:21 PM
OK, so hospital administrators make a lot of $$. Earn the pay by being more involved in the excellent care we try to provide. Eliminate barriers and restore our morale. Walk in the shoes of a nurse or even a patient. The solutions are obvious.

by Lavern	03/08/07 12:31 PM
Shameful! The CEO's could have given up some of their salary increases to prevent so many good employees being laid off, but they are more concerned about the CEO's salaries being competitive. Employee salaries have not been competitive in years.

by Discouraged	03/08/07 09:51 AM
Just think Mr Stein makes $26,923/ WEEK, that is more than some of us make in a year. Especially non revenue making depts of a hospital. we can always look forward to our 3% a year raise, which doesn't even cover cost of living increase a year.

by code blue	03/08/07 08:02 AM
Code blue UCH, please send all available therapist to the risk managers office. we need to get our story correct.well it was the poor staffing that killed this patient, but blame the therapist, that worked in 1995. we need blood in all offices of UCH

by get to work Steve CRT	03/08/07 07:44 AM
is it a surpise respiratory does not get a bonuses for doing over time as nurses do, but are told to keep uch safe and breathing.the bosses have been warned of unsafe care, but no response.1995 will return.what family will sue next.we need a new boss

by no surprise	03/07/07 09:05 AM
RN moral is low and staff dissatisfaction is high. The leaders have let UCH down. Do a poor job and take another CEO position somewhere else.

by a soon to be prior employee	03/07/07 08:00 AM
I love the fact that these guys are making this much when employees are in the 25% salary range. Staffing is low. Pt nurishment and supplies have been cut. This is ridiculous! I'm glad I'm leaving!

by Ric	03/06/07 07:59 PM
It's a shame that the ceo's are making this much and yet cutting and downsizing so many employees of thees hospitals UCH is one that has affected my life and family. Not to mention the quality of patient care.

by new employee	03/06/07 06:59 PM
As a new hire, I was warned by my fellow professionals about UCH. The continued layoffs, unsafe nurse to patient ratios, lowest salaries in the comunity and uncaring administration. Maybe those salaries should be cut to pay those who keep UCH alive!

by finance	03/06/07 02:09 PM
Surprising how the bonuses keep rolling in while the bottom line tanks. Maybe they should do an employee survey, oh wait, been there done that.

by finally	03/06/07 01:56 PM
Dont forget the car allowances, special retirement accounts and other perks that stein and glidewell have enjoyed on the backs of their employees.

by rn at uch	03/06/07 10:47 AM
and the nurses get a 3% cost of living increase annually??? let alone the rest of the depts that have been outsourced.... hmmm where do i send MASH fund money again?

by rn	03/06/07 10:38 AM
why did mr. stein feel compelled to justify his salary with a house wide letter to all employees before your article was written? the guilty one's always talk first. would love to see his letter to employess in the sptimes

by Brad	03/05/07 05:06 PM
Having seen the 990s for many of the facilities listed, it appears that your numbers are significantly overstated. Are you sure that they are accurate?

by MD	03/05/07 10:36 AM
Basically, like Emperor Nero, this group fiddles while Rome burns. The waiting time for medical treatment at any Bay area "non-profit" is horrendous. These institutions are supposed to be caring for the most needy in our society. SHAME ON US!

by Consfused	03/04/07 11:19 PM
Non-Profit? For real? It's just like my dad says this is like a communist country but the craps are all made legal.

by Amazed	03/04/07 12:43 PM
I find it interesting that the UCH salaries are so high and their profit margin is the lowest. Guess it's not merit-based compensation.

by Concerned UCH Employee	03/04/07 11:40 AM
For years at UCH, employee positions have been cut. Hundred's have lost their jobs while Mr. Stein lines his pockets. Perhaps his compensation is set by a board who themselves are getting their pockets lined (RBK). Can you say conflict of interest?

by Jimmy	03/04/07 10:50 AM
Well atleast someone can afford 3$ a gallon gas. It seems about 10times too much to pay some of these folks, 6 figures would be more than adequate. 7 figures is obscene. They are supposed to be a non profit after all.

Nonprofits fill pockets

Tampa Bay's nonprofit hospitals provide millions of dollars in charity care to the poor each year. But they still do pretty well for themselves.