An investigation of non-profit hospitals in the Seattle area reveals that some are paying salaries well in excess of $1-million -- despite rules saying the salaries they pay should be in line with government salaries, which don't go higher than about $950,000. KUOW-FM investigative reporter John Ryan notes that the non-profits, like government hospitals, are forgiven property and income taxes, just like government-run institutions. In exchange, IRS rules limit salaries at the non-profits.
One of Ryan's examples is Providence Health system, a Roman Catholic institution that runs 26 hospitals around the West. Ryan reports:
A page on the Providence Website spells out the organization's core values. It says Providence advocates for social justice. It concludes, "We seek simplicity in our lives and in our work." In 2007, Providence CEO John Koster earned $2.1 million.
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