Ioanna, who I have never met in person but who became a valued friend who provided a lot of volunteer research to this blog sent a final thought.

"Over a 10 year period--and I did not get a chance to view more than about 20% of the filings, SSM Healthcare (a not-for-profit Catholic healthcare system) filed at least 379 suits against patients to collect on accounts.

"Between 2004 and 2007 that slowed down--a lot.

"Now that there will no longer be a Joe Novak, Pat Rooney or Fairness Foundation to scrutinize these 'nonprofits' and bring their abuses to light, it is clear that they will continue to price-gouge patients and refuse to help those most vulnerable and in need of financial assistance.

"The signs notifying patients of their right to charity care or financial assistance in SSM ER's are not only only in English, but are already so small they are virtually unreadable.

"They do instruct those who do not speak English to request information in another language--that instruction is, of course, in English.

"And Catholic healthcare says they want to lead the way to transparency and more accurately reflect their benefit to the community in order to prove their tax exemptions are earned."

Thanks and goodbye.

The London Times had a story yesterday that was a little disturbing.

It began "Barack Obama has lived one version of the American Dream that has taken him to the steps of the White House. But a few miles from where the Democratic presidential candidate studied at Harvard, his Kenyan aunt and uncle, immigrants living in modest circumstances in Boston, have a contrasting American story.

"Zeituni Onyango, the aunt so affectionately described in Mr Obama's best-selling memoir Dreams from My Father, lives in a disabled-access flat on a rundown public housing estate in South Boston.

"Speaking outside her home in Flaherty Way, South Boston, on Tuesday, Ms Onyango, 56, confirmed she was the "Auntie Zeituni" in Mr Obama's memoir. She declined to answer most other questions about her relationship with the presidential contender until after the November 4 election. "I can't talk about it, I just pray for him, that's all," she said, adding: "After the 4th, I can talk to anyone."

I once wrote about Rose Shaffer who was described as Barack Obama's cousin and was a poster child for an Illinois labor unions' campaign to prove that not-for-profit Advocate Health was price gouging the uninsured.

They were and are price gouging.

Rose was actually the subject of a story titled "Your Money or Your Life" written by Dan Frosch, for The Nation in February 2005.

So what's the connection?

Barack Obama didn't help his affectionate Aunt whose story helped him become a bestselling and very wealthy author.

He didn't help his cousin who was sued by Advocate Health for nonpayment of her hospital bill.

Her story helped him convince people of his concern for the uninsured.

I've never written this before, but I had an investigative reporter track down Rose to see whether she really is a cousin and whether she was disappointed that her famous cousin did nothing to help her get out of paying a greatly marked up bill.

Bottom line, although she was angry and disappointed in Barack she wouldn't talk for the record.

But maybe after the election we could try her again.

What we still don't know.

What we do know is his closest advisor Valerie Jarrett defends racial steering of uninsured patients by her hospital, defends the excessive compensation of the CEO of her hospital, defends the excessive cost to charge ratio of her hospital, and defends the enormous profits being made by her not-for-profit hospital.

And just yesterday we learned from Chicago newspapers that the former Director of the Illinois Department of Public Health Eric Whitaker who has been campaigning almost full time for Obama (while being paid by this same not-for-profit hospital) is slated for a big job in Washington D.C. when Obama is President.

Even Obama admits that Whitaker got his job after Obama recommended him to Tony Rezko.

Great investigative vetting of Obama.

Change you can believe in.

To read the London Times story Click Here.

To read more on Rose Shaffer Click Here

This is a hospital and CEO that I have never covered.

The reason I say formerly known as, it was sold to Carolinas Health Care in July of 2007.

Cabarrus Memorial is now known as Carolinas Medical Center North East.

Carolinas as a quick reminder, is a not-for-profit original member of the quarter of a billion dollars in profits club.

Over the past 3 years (2005-2007) their combined profits total $907,141,000.

Up until the time it was sold, Laurance Hinsdale served as President and CEO of Cabarrus Memorial.

In 2004 he received $609,069 in total compensation.

In 2005, he received $697,202 in total compensation.

In 2006 that amount jumped to $848,778.

I'm sure he's a member of the millionaires club now, as he currently serves as Executive Vice President Regional Group for the very profitable Carolinas Health Care.

By the way the total compensation for Charles Frock the President and CEO of Carolinas Health Care reached $1,176,541 in 2006.

In comparing with my own archives, I have been able to confirm that more and more 990's show up on www.guidestar.org months later than they used to-so much for increased transparency.

Here's one other financial statement that is late this year-the profits for year end 6/30/08 at the not-for-profit The University of Chicago Hospitals.

Isn't that where Michelle Obama worked?

Why yes it is.

They'll hold it until after the election.

Bet on it.

If you want anything from wherethemoneygoes archives, you better get it now.

As I announced two weeks ago, this blog ends tomorrow, and when it does, it is my understanding that it is coming down, it will disappear, it will not be accessible after Friday night, not my call, so if you want to grab something from the archives go ahead, but you better get it now.

Remember the quickest way is to use my search engine, keep it simple, just a hospital name, the name of a CEO etc.

Wow.

That's about all I can say after seeing the recently posted 2006 990 Federal Tax Form for not-for-profit Virtua Health in New Jersey.

In 2005, Richard Miller the President and CEO of Virtua Health joined the millionaires club as his total compensation that year came to $1,177,084.

But in a build up to those numbers from 2006 that left me basically speechless, let's give a total compensation history for President Miller and some of his top employees.

Richard Miller.

2002, $633,527.

2003, $690,189.

2004, $807,817.

2005, $1,177,084.

2006, $3,360,163.

Yes you read that right, $3.3 MILLION.

Ninfa Saunders, Executive VP Health.

2004, $509,650.

2005, $740,489.

2006, KACHING! $1,347,080.

James Dwyer, Executive VP CMO.

2004, $434,223.

2005, $617,778.

2006, KACHING! $1,538,470.

Robert Segin CFO.

2004, $404,371.

2005, $518,048.

2006, KACHING! $1,279,997.

Edward Dunn picked the right time to start his career as Chief of Human Resources, as in 2006 his first year on the job, he received $1,189,928 in total compensation.

5 members of the millionaires club all from one hospital system.

WOW!

For more on this system, please read on.

Here are the profits for not-for-profit Virtua Health as taken from their audited financial statements.

2005, $79,091,000.

2006, $113,685,000.

Year end 12/31/07, $129,555,000

In 2007 they reported total revenue of $893,788,000 which means their profit margin that year was an incredible 14.5%.

That's easier to do when according to the American Hospital Directory charges at your biggest hospital are equal to your costs maked up by 551%.

 

According to their just posted audited financial statement for year end 6/30/08, profits at not-for-profit Rush University Medical Center totaled $74,827,000.

While that's a drop from the $135,866,000 in profits they reported from the year before, it's more than they made in 2006, ($69,962,000 ), or what they made in 2005, ($44,692,000).

Unlike many hospitals whose investments are tanking, while this hospital didn't lose any money on their investments in 2008, they didn't make any money either.

All of that $74 million in profits was operating income-meaning profits from patients.

In July of this year Crain's Chicago Business reported that the "Feds target Rush in kickback probe".

Here's how the story began.

"The federal government is investigating whether Rush University Medical Center gave illegal kickbacks to doctors.

"The Chicago hospital received a subpoena from regulators in June 2007 'in connection with an investigation into possible false or otherwise improper claims to Medicare and possible violations of the anti-kickback laws,' Rush disclosed in a May 30 financial statement to bondholders.

"The subpoena stemmed from a sealed whistle-blower lawsuit that alleges Rush leased or renovated space or provided equipment to several physician practices in arrangements that ran afoul of federal law, the statement says. Over the past decade, the feds have cracked down on hospitals that trade office leases or equipment with doctors for patient referrals.

"The suit poses a serious potential financial risk for Rush as it embarks on a $1-billion makeover of its campus in the Illinois Medical District west of downtown. Settlements for other hospitals accused of violating kickback laws have run into the tens of millions of dollars. Some medical providers have been frozen out of Medicare, the federal health program for seniors that covers almost one-third of Rush's patients."

But not to worry as the hospital was wise enough to hire two of Mayor Daley's closest political buddies, one his former deputy chief of staff, the other his last campaign manager.

The result?

In January the Chicago Sun-Times reported that "Rush University Medical Center stands to reap $75 million from a special city fund for economic development -- one of the largest amounts ever awarded to a private project".

That should help cover any potential fines from violations of kickback laws.

While other poor inner city hospitals in Chicago are forced to close, this hospital which has made a combined profit of over $224 million in the last four years gets a gift of $75 million from taxpayers thanks to Chicago's Mayor.

Two other things worth repeating.

According to the latest 990 Federal Tax Forms for this system, over a 2 year period (2005-2006) the hospital has spent $10,385,835 on architects.

As for their President and CEO his total compensation has increased from , the total compensation of their President and CEO increased from $738,739 in 2005, to $1,588,682 in 2006.

Oh I should also mention that the hospital is planning on building a mansion to house it's President.

I guess he can't afford his own place on $1 MILLION a year in total compensation.

That's a quote from Lloyd Dean from an editorial board meeting that he recently held with the San Francisco Chronicle.

Here's my favorite exchange, which includes that quote.

"Q: Not-for-profit hospitals, especially large systems like Catholic Healthcare West, have come under increasing scrutiny on a national level. They get property and income tax breaks in exchange for providing a public good. You yourself were highlighted in a Wall Street Journal story about the salaries of CEOs of large not-for-profit hospital institutions. Given the fact there's not a great definition of charity care, how do we know whether a system like CHW earns its keep and deserves the tax breaks it's getting?

"A: I'm a big believer in transparency. I think it is absolutely acceptable for us to be held accountable both in the public arena and by government. At CHW, I'm extremely proud of our organization and believe unequivocally we are earning the status we have.

"Last year alone we had about $967 million in uncompensated, unreimbursed care. Of that, $508 million was for community benefit. Over the last six years, that number was about $3 billion.

"When you look at where we deliver our care and to whom we deliver our care, other than the public health care system, we are the largest provider of Medicaid services in his state. When you look at communities that we deliver our care in, we are involved in taking care of some of the poorest neighborhoods and some of the most vulnerable individuals in this state. I think we should be held accountable, and there's no question Catholic Healthcare West lives up its not-for-profit status." (Emphasis added.)

A rejoinder.

Profits at Catholic Healthcare West-remember these are after community benefits, unreimbursed care etc.

2008, $169.9 MILLION.

2007, $891.8 MILLION.

2006, $437.9 MILLION.

2005, $348.2 MILLION.

Cash and investments as of 6/30/08 totaled $5,087,205,000, (that's 5 BILLION DOLLARS).

Here's one other quote from Lloyd Dean that cracked me up.

"Many individuals I see and talk to - and even in my own family - have to choose whether they are going to spend money on medicine or spend money on food. Am I going to split my pill in half so that I can buy oil to heat my home through the whole winter?" (Emphasis added.)

For FY05 and FY06 Mr. Dean received a combined total compensation of $11,164,867.

Maybe he should share some of that wealth with those members of his family who have to split pills in half in order to be able to heat their homes.

According to the audited financial statements for University Hospitals Health System, a not-for-profit system in Ohio, profits have increased from $78,416,000 in 2005, to $164,792,000 in 2006, to $206,898,000 for calendar year 2007.

When you compare the profits for 2007 to 2006, you see an increase of $36 million.

But when you compare the profits in operating income for 2007, to 2006, (money made from patients), it increased by almost $83 million.

Think they raised their chargemaster?

I do.

That would be Thomas Zenty.

According to their 990 Federal Tax Form's, in 2003, he received $881,750 in total compensation.

In 2004, that amount jumped to $1,222,068.

And in 2005, it jumped again, all the way up to $1,771,325.

2006 saw a much smaller increase which brought his total compensation to $1,830,581.

However don't feel too bad about that small increase.

In 2005, under the category "expense account and other allowances" there was a zero.

In 2005, the amount listed was $5,176.

In 2006, the amount listed was $42,695.

 

Chester B. Kaletkowski is the President and CEO of this not-for-profit system.

Here according to their 990 Federal Tax Form is how much he has received in total compensation.

2003, $496,000.

2004, $1,458,000. In addition he received $20,328 in expenses and other allowances that year.

The hospital informs us that that total included a payout of $448,000 which "had been earned over the 5 years of his tenure at South Jersey".

That's a lot of money in just 5 years.

2005, $738,865.

2006, $949,536.

By the way, the 2006 990 shows that the "chief people officer" received just over $380,000.

I'm assuming that his position is head of human resources, (personnel), but who comes up with this stuff?

Not-for-profit Staten Island University Hospital is part of not-for-profit North Shore Long Island Jewish Health System.

Andrew Passeri retired as President and CEO at the end of their FY2004.

In his last year in office he received $881,203 in total compensation.

The 990 Federal Tax Form for 2005 lists him as a "former officer" who received $1,217,488 in total compensation.

On their 2006 990 he still listed as a "former officer".

That year he received $415,385 in total compensation.

 

When I went after the tax-exempt status of The Clare at Water Tower, (just one block off the magnificent mile in Chicago), I reported on what Len Wychocki, the President and CEO of the Franciscan Sisters of Chicago Service Corporation had to say in the newsletter for The Clare about this project.

"Particularly, we give honor to the Saint Clare of Assisi, the spirit of light for whom The Clare was named. For just as she inspired those around her to live righteously and achieve great things, The Clare will emerge from the Chicago skyline as a guiding light for seniors, illuminating the possibilities for a safe, secure and rewarding future."

Talk about a rewarding future, let's look at the total compensation received by Len Wychocki.

According to the organization's 990 Federal Tax Forms, for year end 6/30/05 Len received $538,332 in total compensation.

In 2006, that amount jumped to $599,423 in total compensation.

And now that their 6/30/07 990 has been posted we can give you his total compensation for that year as well, but first a couple of things you need to know.

Len retired after just 5 months of their FY2007.

Len chose not to stay in Chicago and live at The Clare, he moved to Fort Meyers Florida.

So how much did Len receive for those 5 months of work?

Try $2,073,058!

He was probably smart to move to Florida because in part, due to my efforts if he had chosen to retire to The Clare, he would soon be paying property taxes, something The Franciscan Sisters denied would happen when they were marketing this project.

They should be sued for false advertising.

Make sure you give to that second collection when next asked so as to help the poor Sisters, or the lay people who are ripping them off.

On October 20th Time Magazine ran an article titled "Finding one economic bright spot on main street".

It focused on the impressive financial muscle of not-for-profit $$$$ (also known as UPMC or the University of Pittsburgh Medical Center.

It never discussed the abuses of this not-for-profit (excessive CEO compensation or the price gouging of patients), instead it was a glowing report of both the system and its CEO Jeffrey Romoff.

Here's some of what I mean.

"Most important, Pittsburgh has diversified its economy to replace the lost jobs of thousands of steelworkers. To get a real sense of that transformation, go to the CEO's perch on the 62nd floor of the U.S. Steel building--a floor that sat empty for seven years. "What made Pittsburgh great is exporting the steel that it made, and the money came back," says Jeffrey Romoff. Understand, Romoff does not work for U.S. Steel, which has been doing fine, mind you. Instead, he's the CEO of the University of Pittsburgh Medical Center (UPMC), the thriving $7 billion health-care conglomerate that occupies some of the top floors of the building and whose logo now glows in the night sky.

"UPMC, not U.S. Steel, is the biggest employer in the area, with 50,000 workers. It's an exporter in its own right: UPMC runs hospitals in Ireland, Italy and Qatar. It exports knowledge, not metal. UPMC's operating revenue has been growing at 12% annually for the past five years, generating cash-flow earnings in excess of $500 million annually and enabling UPMC to reinvest a like amount. "We believed, even before this dramatic recession, that UPMC could not continue to support its growth living off Medicare and insurance revenues," he says.

"So instead UPMC healed itself, devising a new health-care model that is more entrepreneurial: it is 60% health-care provider and research institution, 30% for-profit company that operates a health-care insurance subsidiary, and 10% commercial-services exporter running emergency rooms in the Middle East and transplant and cancer programs in Europe. It looks to companies such as Siemens and General Electric as role models, since both do basic research but have to develop profitable products. UPMC has formed a joint partnership with GE, called Omnyx, to develop an information-technology-based digital pathology business. Each company is investing $20 million.

"That said, health care is no longer recession-proof, because rising co-payments have given consumers some painful choices to make. Says Romoff: "Do I fill up the car with $50 of gas and take the kids to school and go to work, or do I pay the $50 co-pay to see a doctor?" He's limiting the growth of UPMC's salary-related expenses to 5% compared with last year. And yet despite the collar, the company will probably hire more than 3,000 people this fiscal year."

Hire more than 3,000 people this fiscal year, well after what they announced last week, they'll have to hire 3,500 to keep their bragging going.

Here's what the Pittsburgh Business Times wrote last week.

"The University of Pittsburgh Medical Center announced Thursday it plans to lay off some 500 employees this week, as part of ongoing cost-cutting measures.

"Frank Raczkiewicz, director of media relations for UPMC, issued a statement Thursday confirming the number of layoffs, which has been expected for some time". (Emphasis added.)

"As we said earlier, UPMC is prepared to do business in a deteriorating economy. As the recession worsens, we are proactively taking steps to counter these forces and ensure that our growth in expenses is not outpacing our growth in revenues," Raczkiewicz said in the statement. "We are reducing our 50,000 workforce by 1 percent, consisting almost entirely of non-clinical administrative and managerial positions. UPMC is financially strong and well-prepared to thrive in this challenging environment, and we'll continue to deliver the highest-quality, most patient-focused care available in the region."

"UPMC released its year-end financial results in August, showing a drop in profit from $612 million the previous year to just $5 million."

So one month after bragging he was still going to hire 3,00 more people, the hospital announces that 500 people are going to be laid off, in a move "which has been expected for some time", try telling that to Time magazine.

By the way, let's remind everyone that in fiscal year 2007, Jeffrey Romoff received $3,991,949 in total compensation.

That was an increase of $623,557 from fiscal year 2006, when he received $3,368,392 in total compensation.

 

According to their audited financial statements, for year end 6/30/07, the year they made almost $612 MILLION in profit, not-for-profit $$$$ reported a repayment of $239,859,000 of long term obligations.

For year end 6/30/08 they reported a repayment of $874,383,000 of long term obligations.

That sounds pretty smart.

But here's what they are up to.

In 2007 they borrowed $398,031,000 in new long term obligations.

In 2008, they borrowed another $1,193,225,000 in new long term obligations.

Thomas is the President and CEO of Southern Illinois Hospital Services.

According to the 990 Federal Tax Forms for this not-for-profit system, here's what he has received in total compensation.

2005, $514,326.

2006, $535,635.

2007, $635,540.