Thursday, April 10, 2008

Observers respond to Mass. Bill to Limit Nonprofit Executive Compensation

Here is what one reader said on the Chronicle of Philanthropy website about the Massachusetts bill to limit compensation paid to executives of large nonprofits:

The idea of the “non-profit” hospital is really the dodo-bird of our time. Extinct, yet not discussed. Today’s hospitals are tax-exempt business entities that are operated by business executives who have fully divested themselves of even the vocabulary of the non-profit world. They typically speak of their hospitals as “health systems,” and internally they call it “the company.” They speak of their profit-centers and their loss-leaders and their payor-mix.  They operate business entities that simply deliver a product, in this case, it’s “health care.” They no longer have patients, they now have customers or consumers. Imagine the dilemma faced by the (proportionately well compensated) development officers who have to make the “charitable” case in support of “the company.” It is quite the disingenous objective.

— Jay maloney    Apr 9, 04:09 PM   

There are lot more comments available on the website.


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