Thursday, September 14, 2006 
 

NOT-FOR-PROFIT CATHOLIC HEALTHCARE WEST GIVES CEO AN EXTRA $1.8 MILLION IN ONE YEAR 
 

Embattled Hospital Chain Accused of Violating “Excessive Pay” Guidelines; Advocacy Group Calls on IRS to Review $5.8 Million Compensation Package 

SAN FRANCISCO, CA—On the heels of U.S. Senate Finance Committee hearings on not-for-profit hospitals and excessive executive compensation, Consejo de Latinos Unidos, the leading national advocacy group that fights hospital price gouging of the uninsured, called on the IRS to review the compensation package of Catholic Healthcare West’s CEO and President Lloyd H. Dean who earned an extra $1.8 million in one year, for a total one-year compensation of $5.8 million ending June 30, 2005, according to public IRS information. 

“We are dispatching a letter to the Dallas office of the IRS, which monitors the behavior of not-for-profit entities, about Mr. Dean’s excessive compensation,” said K.B. Forbes, Executive Director of the Consejo. “Catholic Healthcare West’s leadership appears to be more concerned about excessive compensation than community needs. Dean’s obscene pay appears to go against established guidelines for not-for-profit entities. ” 

The Consejo has been entangled in a bitter fight with Catholic Healthcare West (CHW) over price gouging of uninsured patients. Typically, hospitals charge the uninsured four or five times more than what they would accept as payment in full from an insurance company.  

Sister Carol Keehan, President of the Catholic Health Association, has routinely and vehemently defended not-for-profit Catholic hospitals, even though many of her members are engaged in price gouging of the uninsured and reaping in billion in profits every year. With Dean’s excessive compensation exposed, Forbes asked, “What malarkey will Sister Carol feed us now?”

Yesterday, the Consejo released data from the published annual reports of 12 not-for-profit Catholic hospital systems for fiscal years 2003, 2004, and 2005. The Consejo found that the 12 systems earned $7.1 billion in profits during that three year period and are currently sitting on $27.7 billion in cash and investments.  

In 2004, Dean earned a total compensation package of $3,969,068 while in 2005 his total compensation increased $1.8 million to $5,815,781. Last March, the Consejo was profiled by CBS’ 60 Minutes for its work against hospital abuses.