Here is a letter to the editor in the Orlando Sentinel about their recent article on how local "non-profit" hospitals are NOT really non-profit, but are being run like profit oriented organizations.
We post this because in Lake County, two "non-profit" hospitals, Waterman & Leesburg, act the same way, but still want to continue taxing local residents 1 mill of tax for vague, undefined uses at the hospitals. A total of about $11-million of tax funds are split between the two hospitals for a vague "continued Hospital Services" objective.
Favorite quote:
"We keep hearing how our tax revenues have declined sharply, and how our police, firefighter and teacher jobs are in jeopardy. Our local officials need to realize that Florida Hospital and all the other nonprofits are running their businesses like a profit entity. They should be paying business taxes like all the other businesses do. "
The letter writer makes the point that they should be paying business tax. We also think the Hospital tax should be dropped in Lake County, or at least beefed up substantially with defined performance requirements (called deliverables in contracts) and specific audit trail requirements.
vj
Nonprofits that act like businesses should pay tax
What a revealing and embarrassing article about the nonprofit Florida Hospital
("Are nonprofit hospitals truly not for profit?" Orlando Sentinel,
Sunday). The faith-based hospital absorbs a paltry 7percent of its
inflated patient revenue for charity care. Shameful.
It has certainly fooled me over the years with its polished PR machine. A
reminder is needed on the obscene salaries and perks the Florida
Hospital board and executives have bestowed upon themselves. The public
hears how cash-strapped health providers are, but a Sentinel columnist
last year revealed that Don Jernigan, CEO of Adventist Health in Winter Park, pulled in a whopping $3.5 million in 2007. I wonder what his salary was in 2009?
We keep hearing how our tax revenues have declined sharply, and how our
police, firefighter and teacher jobs are in jeopardy. Our local
officials need to realize that Florida Hospital and all the other
nonprofits are running their businesses like a profit entity. They
should be paying business taxes like all the other businesses do.
If these nonprofits are competing for market share, bestowing hefty compensation packages on their executive, and advertising heavily in the community, they are certainly conducting themselves as a for-profit company.
—Bernie Bullard Orlando
