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Recent Articles

3
Aug

Radon and Lung Cancer

Cancer is the second leading cause of death (after heart disease) in the US claiming approximately 600,000 lives annually.  Nearly 150,000 of those deaths are from lung cancer, which according to the American Cancer Society is more than breast, colon, and prostate cancer deaths combined.

Most people know that smoking causes lung cancer so when someone is diagnosed with lung cancer, they are shocked when a patient was a non-smoker.  What many people don’t know is that the second leading cause of lung cancer is radon:  a colorless, odorless, tasteless, and invisible gas that naturally occurs in the atmosphere (radon comes from the natural decay of the radioactive chemical elements uranium or thorium that are found in nearly all soils, according to the NIH). Read more »

1
Aug

Executive Compensation at St Jude (2020)

When people think of St. Jude’s, they often associate the organization with the children’s research hospital but St Jude’s is actually two organizations:

  • St. Jude Children’s Research Hospital (St Jude): the children’s hospital that provides research and medical care; and
  • American Lebanese Syrian Associated Charities (ALSAC): the fundraising arm; an organization that exists to raise funds for St. Jude’s

Although most non-profits do not separate fundraising from services, St. Jude’s does, so both organizations need to be analyzed because St. Jude’s relies on ALSAC for the majority of it’s revenue and has a beneficial interest in the organization. Read more »

30
Jul

Where Does $100 to St Jude’s Go (2020)?

St. Jude’s is one of the most popular non-profit organizations in the country because the charity’s mission appeals to donors:  they treat and help children with cancer and other life threatening illnesses. But, before making donations, donors should understand where revenue is spent and that St. Jude’s is actually two organizations:

  • St. Jude Children’s Research Hospital, Inc. (St. Jude)
  • American Lebanese Syrian Associated Charities  (ALSAC)

ALSAC  “exists for the sole purpose of raising funds and building awareness to support the current and future needs of St. Jude Children’s Research Hospital, Inc” while St. Jude engages in research and provides care and services to sick children and their families.

St. Jude has a beneficial interest in the assets of ALSAC but the organizations are separate non-profit 501 (c)(3) entities with specific functions: ALSAC raises funds while St. Jude does the research and provides the treatment.

So, where does a $100 donation go?  The quick answer is that half goes to the hospital, 30% to organization expenses, and 20% goes into savings.  For more detail, read on.

Read more »

28
Jul

Executive Compensation at the NCAA (2019)

The National Collegiate Athletic Association (NCAA) is a non-profit, tax-exempt 501 (c) (3) organization focused on college sports in the US. With 1,100 member colleges and universities in 102 athletic conferences across the country that participate in 90 championships in 24 sports in 3 divisions, the NCAA is a powerful and well financed organization.

There are 21 independent board members of the governing party although 25 board members are listed on the Form 990 (probably due to timing differences). 19 of the 25 (76%) board members are male while 6 of the 25 (24%) are female. Read more »

26
Jul

The Purple Harmony Pillow

When I used to walk through an airport and see someone tugging along a pillow with the pillowcase billowing in their wake, I often stared and wondered if the pillow was for comfort, familiarity, or even a germ thing?  I didn’t get it because for decades, I could rest my head on any pillow and get a decent nights sleep. But then things changed; I got older and started feeling tightness or discomfort if my head and neck were not properly supported, all of which started me on a search for the perfect pillow. Read more »

24
Jul

Executive Compensation at Advocate Health and Hospitals Corp

Advocate Health and Hospitals Corp is a tax-exempt non-profit 501 (c) (3) and one of many organizations within Advocate Aurora Health (which was formed when Advocate Health Care (in Illinois) and Aurora Health (in Wisconsin) merged into one healthcare system (Advocate Aurora Health or AAH) in 2018. Based in Downers Grove, Illinois, AAH operates 26 hospitals and more than 500 out patient care sites staffed by 75,000 employees.

Advocate Health and Hospitals Corp (AHHC) is governed by 11 voting members (directors), 8 of whom are independent.  12 directors are reported on the 990 (which appears to be due to timing differences) – 9 of the 12 (75%) are male while 3 of the 12 (25%) are female. 10 of the directors receive between $4,000 – $91,000 annually for an average of 1 hour of work per week. Read more »

22
Jul

Executive Compensation at Advocate Aurora Health (IL)

Advocate Aurora Health (AAH) was formed in 2018 when Advocate Health Care (in Illinois) and Aurora Health (in Wisconsin) merged into one healthcare system made up of numerous other tax-exempt, non-profit and for profit organizations.  Based in Downers Grove, Illinois, AAH operates 26 hospitals and more than 500 out patient care sites staffed by 75,000 employees.

A tax-exempt, non-profit 501 (c) (3) named Advocate Aurora Health Inc (AHHI) that provides overall management to the healthcare system. AHHI is governed by 14 directors, 12 of whom are independent.  10 of the 14 (71%) are male while 4 of the 14 (29%) are female. Read more »

20
Jul

Executive Compensation at Banner Health

Banner Health is a tax-exempt non-profit healthcare system that operates 30 hospitals and numerous health care clinics, nursing homes, home health care agencies, urgent care centers, and ambulatory facilities in 6 states with more than 50,000 employees.

Based in Phoenix, Arizona, Banner Health consists of dozens of related/affiliated organizations (including taxable partnerships, trusts, and corporations) but for the purpose of this post, the executive compensation of Banner Health (a 501 (c) (3)) is reported.

Banner Health has 13 members (directors) in its governing body, 11 of whom are independent. 10 of the 13 (77%) are male while 3 of the 13 (23%) are female. What is unusual (compared to other non-profit healthcare providers) is that the directors receive $65,000-$75,000 each in compensation, except for the President and CEO, Peter Fine, who received more than $11 million in compensation. Read more »

18
Jul

Executive Compensation at Christus Health

Christus Health is a tax-exempt non-profit healthcare system that supports “the healthcare ministries of the sponsoring congregations in extending the healing ministry of Jesus Christ in conformity with the Roman Catholic Church” which includes paying for first class for executives and board members and companion travel (I’m fairly confident Jesus Christ would prefer revenue be spent on helping the sick and the poor than on flying employees first class). Read more »

16
Jul

Executive Compensation at Bon Secours Mercy Health

Bon Secours Mercy Health (BSMH) became one of the largest Catholic healthcare providers serving communities in seven states and Ireland when merged with Mercy Health in September, 2018.

A tax-exempt, non-profit healthcare system that consists of dozens of related/affiliated organizations, BSMH used Bon Secours Mercy Health Inc (BSMHI) as the “home office for Bon Secours Mercy Health System providing administrative/management services to affiliates.”  Consequently, total revenue in 2018 ($115 million) is primarily from related organizations who all contributed for corporate management service fees.

This post is limited to the executive compensation reported by BSMHI. Read more »