On Tuesday, Sept. 16th, the House Ways and Means Subcommittee on Oversight will hold a special hearing on spending by tax-exempt hospitals on expenses that fail to provide a community benefit, as required by law. The oversight hearing comes as Americans face rising out-of-pocket healthcare costs and a record number of medical bankruptcies caused by aggressive hospital billing and collection practices.
As of 2020, non-profit hospitals had evaded approximately $28 billion in taxes through their charitable tax-exempt status.
Montefiore Health CEO Earns $16 Million from “Non-Profit” Charity
Among the top questions surrounding non-profit hospital spending are the lucrative compensation packages paid out to top non-profit executives. In some cases, the total compensation can reach tens of millions of dollars per year.
Montefiore Health System, which boasts of its “rich history of medical innovation and community service,” also has a history of making its top executives very, very rich. In 2023, the non-profit organization and its related organizations paid its President and CEO, Philip Ozuah, $16.36 million in total compensation.
That’s approximately 94 times the salary of Members of Congress and 41 times the annual salary of the President of the United States.
“Non-profit hospitals should be serving the poor and caring for the sick. In reality, non-profit hospitals are driving patients into bankruptcy and making their executives rich,” explains Terry Wilcox, co-founder and Chief Mission Officer at Patients Rising. “Some hospital CEOs earn more money before lunch than most workers earn in a full year.”
Montefiore Health: 9 Non-Profit Employees Earned $32 Million
Philip Ozuah wasn’t the only Montefiore Health employee to earn big bucks in 2023. Nine Montefiore Health employees combined to earn more than $32 million in total compensation.
According to its 2023 Form 990, other executives earning top dollar from Montefiore Health and its related organizations were:
- $3.68 million in total compensation for Colleen Blye, Executive VP & CFO
- $2.76 million in total compensation for Susan Green-Lorenzen, System Senior Vice President of Operations
- $2.27 million in total compensation for Andrew Racine, Senior Vice President & Chief Medical Officer
- $2.02 million in total compensation for Peter Semczuk, Senior Vice President
- $1.87 million in total compensation for Christopher Panczner, Assistant Secretary
- $1.44 million in total compensation for Stephen Rosenthal, Senior Vice President
- $886,556 in total compensation for Maureen Scanlan, VP Nursing & Patient Care SRVC
- $810,505 in total compensation for Loren Babcock, VP & Chief Marketing Officer
Montefiore Health: Government Funding, 340B Revenue
In addition to its federal income tax exemption, Montefiore Health is heavily dependent on taxpayer funding from state and federal programs, ranging from FEMA reimbursements to the 1115 Medicaid Waiver program. It’s also a participant in a federal program intended to provide drug discounts to low-income and rural patients.
The 340B Drug Pricing Program is a federal program that provides discounted medications to hospitals and clinics. It was supposed to help vulnerable, low-income and rural patients access prescription drugs, yet many hospitals don’t pass those savings on to patients. Instead, hospitals pocket the savings and charge patients full price.
According to the federal Health Resources & Services Administration, Montefiore Medical Center is a participant in the federal 340B program.
Take Action Now: Join the Patient’s Right to Know
Patients Rising has launched the Patient’s Right to Know Campaign to advocate for greater transparency and accountability in hospital spending. By signing the Patients Rising petition, you are standing up to make sure hospitals use their savings to help the patients who need it most.
You have a Right to Know:
- Am I a 340B patient?
- Am I helping the hospital make extra money that should instead be helping patients?
- Am I getting the savings from the 340B program?
- Where is all the extra money going?
Join the Patient’s Right to Know Campaign and sign the petition today to make healthcare fair and accessible. Help us fix 340B for the people who need it most.