I.R.S. Study Tries to Assess if Hospitals Earn Non-Profit Tax Breaks

The New York Times | Stephanie Strom | Thu- Feb 12, 2009

Over the last several years, members of Congress have raised concerns over whether nonprofit hospitals provide enough free care and other community benefits to justify their tax exemptions.

The average compensation paid to the top executives of the hospitals responding to the I.R.S. survey was $490,000. But among a subset of 20 hospitals reporting higher levels of compensation for their top leaders, the average was $1.4 million.

Ms. Lerner said that the I.R.S. had identified at least one hospital among those 20 that it believed had paid its leader excessively.

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