The news story “Former West Penn Allegheny CEO tops health system's list of highest paid executives” exposes a glaring problem with health care in Pennsylvania. The old West Penn Allegheny Health System (WPAHS) was not the only culprit; executive compensation at large hospitals and health systems, particularly those designated as institutions of purely public charity, is out of control. These institutions receive millions of dollars from the commonwealth and local governments annually in the form of tax exemptions. Despite their generous tax treatment, the cost of receiving medical care at these facilities continues to rise.
Making matters worse, the former WPAHS continued to pay its top executives seven-figure salaries while it was losing millions of dollars annually. These executives continued to draw their salaries as they pushed through consolidation plans that eliminated more than 1,500 doctors, nurses and support staff positions. I, and I'm sure many others, would much prefer hospitals have an adequate nursing and support staff than a team of millionaire executives.
For years, these entities have retained and enjoyed their nonprofit and charitable status but have operated in a manner that more closely resembles for-profit corporations. Perhaps the time has come for the commonwealth to reconsider their tax-exempt status. One can only hope that our nonprofit health systems will steer away from this type of executive-centered for-profit culture.
Tony DeLuca
Harrisburg
The writer, a Democrat, represents the 32nd Legislative District in the state House.
