Thank you for your thoughtful and well researched article about the goings-on at MWHC.
I think that you missed one of the most alarming parts about the Snowden renovation as it relates to executive compensation. In December (or January) the MWHC board voted to allocate $3M for renovation of the Snowden House. This $3M is intended to convert the house into a private residence for Dr. McDermott under the guise that he needs to entertain as as part of being CEO. Dr. McDermott is now currently quietly shopping his Caroline St. house for sale.
I don't know of another non-profit hospital CEO who receives such a grand residence as part of his compensation. The MWHC board is being 'snowed' by the CEO and executive team.
You should reach out to Harold Owen (Stafford Printing) who sits on the MWHC Board. He was one of the only board members who spoke out against the renovation plan.
Thank you for shining some sunlight onto this mess.
Excellent and thought provoking article which confirms just what I have been thinking about this issue. Although Medicorp is legally classified as a "not for profit hospital", it is actually a quite wealthy one which can afford to continue to better support our community needed Moss Free Clinic. That it will not is greedy and shameful in my view.
That's troubling. Almost 6% of your expenses is EXECUTIVE COMPENSATION?!?! Can that be real? Over 1 dollar out of every 20 in a NON-PROFIT?!?!
Somebody needs a new board. Kids lose daycare, poor folks get their clinic shut down, and you got 13 folk living like kings?
Yet more proof that the current model does not work. Nationalize healthcare. Incrementally, but we pay more money per capita than anybody in the world, by far - and get results that are nowhere near comparable for the money spent.
Not only does there have to be a better way, there is a better way.
The Thurman Brisben Center has for many years referred many of its homeless adults and children to the Moss Free Clinic. We are left with declining options to which we can refer our residents/clients who require health and dental care but cannot afford it. Notably, the poverty rate in Fredericksburg has increased from 14% to 18% in a few years. Where are moral and financial sensibilities?
Excellent article but it did omit one important fact. A nonprofit pays no tax, neither federal, state or local. This is what enables MWH to pay its executives and most likely its doctors such high salaries. It is a sweet deal but not for the taxpayer who must make up the difference. An audit of MWH's contribution to the public benefits it claims is much needed.
I find the failure to acknowledge the additional charges to the Moss Clinic in the hospitals press release disingenuous at best and deeply disrespectful to area citizens. It gives the appearance of not wanting to tell the truth in the hopes citizens won’t notice.
Great thoughts to the article. But what about the medical teams, RNs,CNAs and low level medical staff that have yet to get any comparable raise to any other health system locally. The turnover rate with the hospital with the treatment team is unreal, and working short staff is the norm, yet clinical staff is getting pulled for more and more despite failing patient satisfaction.
When will compensation for clinical staff be an actual topic to retain staff? Rather that McDermott and the extra VPs getting more bonuses?
It is unfortunate that the CEO and VP are making such high salaries while the have to work on skeletons crew to survive the shift. In addition, once the census drops, staff get floated to another unit or get sent home. Thanks for shining the light on this.
The greed is sickening. While the staff is preached to about productivity, for those that don't know what this means...it means that the floor staff (nurses and CNAs) are pushed to work with the absolute bare minimum staff and maximum amount of patients allowed every single shift. If they don't meet productivity because they are busy or sicker patients they are chastised on a daily basis. All that matters is profit over patients. They push patient satisfaction but don't give the tools or the staff to actually CARE for the patients in the way they deserve. McDermott's value of the year is accountability but where is his?! You have good staff turning over in droves because of the toxic work environment.
Well written Mr. davis. The big question is where is the oversight from mwhc board . It seems like the executives are controlling the board and setting their over the market compensation and desired agenda. The physicians, nurses, and hospital staff taking care of patients should be receiving the increased compensation. Board members are there to represent the community and do what is the the communities best interest . How are the board memebers selected ? Board members should be elected by the community and serve for the community.
The MWHC CEO appears to be a close second to the former Livingston District chairman of the Spotsylvania School Board when it comes to not talking with the public and the media. Both must live under the same mushroom gleefully sucking the life blood from the people to support their undisclosed agendas. In the case of the CEO, it’s greed. In the case of the chairman, it’s wrath. Aren’t those two of the seven deadly sins?
1. The LOWN Institute does an annual listing of hospitals who's spending on its community exceeds the value of its tax exemption. Virginia has 7 hospitals who's spending exceeds its tax exemption, and two of them are Mary Washington Hospital and Stafford Hospital - here's the link: https://lownhospitalsindex.org/top-hospitals-fair-share-spending/
2. Mary Washington Healthcare has one of the most generous financial assistance policies available, giving free care to anyone who earns up to 200% of the federal poverty guideline, and up to 70 percent discounts to people earning up to 500% of the federal poverty guideline. 500% of the federal poverty guideline for a family of four is $156,000 annually. - here's the link:
3. Mary Washington Healthcare's revenue is over $900 million annually, not the $100 million you reported, meaning that the calculation you have done about executive pay is completely wrong. In fact, executive compensation at Mary Washington is similar to executive compensation at other similarly sized healthcare organizations - here's the link - https://projects.propublica.org/nonprofits/search?q=mary+washington+healthcare
4. Mary Washington does have an annual audit by a third party - that third party is Baker Tilley, a national accounting firm.
A good start, but given that everything is relative, and that everything is related, a few more thoughts/questions come to mind:
1. The word "profit" is misused when discussing not-for-profit entities. Any excess funds remaining at the end of their fiscal year is held in cash until management determines the best use for it. 2. A comparison to one other hospital is statistically irrelevant, but nonetheless, a cost of living comparison with the Lynchburg area is also required, as is comparisons to for-profit hospitals' executive pay. 3. The halting of lawsuits, which is fantastic, erased a revenue stream. What replaced it? 4. Recent national and global events put tremendous strain on healthcare workers, resulting in alarming staffing shortages that must be ameliorated with large staff pay increases, especially for nurses. Where is that additional funding to come from, given one less revenue stream to cover it? 5. All these new financial stressors must be successfully navigated by a dedicated and knowledgeable leadership team. If they fail, where does that leave us? 6. Is the new conference center they're planning designed to provide a new revenue stream to keep the hospital viable? 7. Some of this might be spelled out in the hospital's annual reports, which I have not read, but I am sure that an annual independent audit is always done (update: a subsequent review of their 990 confirms NO such audit).
Why are you sure that an annual independent audit is always done? If so, please post it online. If the annual report is anything like the justifications which MWH has provided for its cutbacks, it conceals more than it reveals. Fortunately MWH's tax filing is available so at least we know how they spend their money or do we?
After seeing your reply, I took a few minutes to look up their 990 to confirm their financials are indeed independently audited, and I was truly shocked to find they are not. I will amend my post.
Hello -
Thank you for your thoughtful and well researched article about the goings-on at MWHC.
I think that you missed one of the most alarming parts about the Snowden renovation as it relates to executive compensation. In December (or January) the MWHC board voted to allocate $3M for renovation of the Snowden House. This $3M is intended to convert the house into a private residence for Dr. McDermott under the guise that he needs to entertain as as part of being CEO. Dr. McDermott is now currently quietly shopping his Caroline St. house for sale.
I don't know of another non-profit hospital CEO who receives such a grand residence as part of his compensation. The MWHC board is being 'snowed' by the CEO and executive team.
You should reach out to Harold Owen (Stafford Printing) who sits on the MWHC Board. He was one of the only board members who spoke out against the renovation plan.
Thank you for shining some sunlight onto this mess.
Excellent and thought provoking article which confirms just what I have been thinking about this issue. Although Medicorp is legally classified as a "not for profit hospital", it is actually a quite wealthy one which can afford to continue to better support our community needed Moss Free Clinic. That it will not is greedy and shameful in my view.
Thank you for this.
That's troubling. Almost 6% of your expenses is EXECUTIVE COMPENSATION?!?! Can that be real? Over 1 dollar out of every 20 in a NON-PROFIT?!?!
Somebody needs a new board. Kids lose daycare, poor folks get their clinic shut down, and you got 13 folk living like kings?
Yet more proof that the current model does not work. Nationalize healthcare. Incrementally, but we pay more money per capita than anybody in the world, by far - and get results that are nowhere near comparable for the money spent.
Not only does there have to be a better way, there is a better way.
More than 1 dollar out of every 20. My word.....
The Thurman Brisben Center has for many years referred many of its homeless adults and children to the Moss Free Clinic. We are left with declining options to which we can refer our residents/clients who require health and dental care but cannot afford it. Notably, the poverty rate in Fredericksburg has increased from 14% to 18% in a few years. Where are moral and financial sensibilities?
Excellent article but it did omit one important fact. A nonprofit pays no tax, neither federal, state or local. This is what enables MWH to pay its executives and most likely its doctors such high salaries. It is a sweet deal but not for the taxpayer who must make up the difference. An audit of MWH's contribution to the public benefits it claims is much needed.
I find the failure to acknowledge the additional charges to the Moss Clinic in the hospitals press release disingenuous at best and deeply disrespectful to area citizens. It gives the appearance of not wanting to tell the truth in the hopes citizens won’t notice.
Surprised? Hope not.
Totally agree. They top heavy. 21 VP? That’s crazy
Great reporting Mr. Davis. I look forward to Mr. McDermott's reply.
Great thoughts to the article. But what about the medical teams, RNs,CNAs and low level medical staff that have yet to get any comparable raise to any other health system locally. The turnover rate with the hospital with the treatment team is unreal, and working short staff is the norm, yet clinical staff is getting pulled for more and more despite failing patient satisfaction.
When will compensation for clinical staff be an actual topic to retain staff? Rather that McDermott and the extra VPs getting more bonuses?
It is unfortunate that the CEO and VP are making such high salaries while the have to work on skeletons crew to survive the shift. In addition, once the census drops, staff get floated to another unit or get sent home. Thanks for shining the light on this.
The greed is sickening. While the staff is preached to about productivity, for those that don't know what this means...it means that the floor staff (nurses and CNAs) are pushed to work with the absolute bare minimum staff and maximum amount of patients allowed every single shift. If they don't meet productivity because they are busy or sicker patients they are chastised on a daily basis. All that matters is profit over patients. They push patient satisfaction but don't give the tools or the staff to actually CARE for the patients in the way they deserve. McDermott's value of the year is accountability but where is his?! You have good staff turning over in droves because of the toxic work environment.
Well written Mr. davis. The big question is where is the oversight from mwhc board . It seems like the executives are controlling the board and setting their over the market compensation and desired agenda. The physicians, nurses, and hospital staff taking care of patients should be receiving the increased compensation. Board members are there to represent the community and do what is the the communities best interest . How are the board memebers selected ? Board members should be elected by the community and serve for the community.
The MWHC CEO appears to be a close second to the former Livingston District chairman of the Spotsylvania School Board when it comes to not talking with the public and the media. Both must live under the same mushroom gleefully sucking the life blood from the people to support their undisclosed agendas. In the case of the CEO, it’s greed. In the case of the chairman, it’s wrath. Aren’t those two of the seven deadly sins?
A few facts to better inform this conversation:
1. The LOWN Institute does an annual listing of hospitals who's spending on its community exceeds the value of its tax exemption. Virginia has 7 hospitals who's spending exceeds its tax exemption, and two of them are Mary Washington Hospital and Stafford Hospital - here's the link: https://lownhospitalsindex.org/top-hospitals-fair-share-spending/
2. Mary Washington Healthcare has one of the most generous financial assistance policies available, giving free care to anyone who earns up to 200% of the federal poverty guideline, and up to 70 percent discounts to people earning up to 500% of the federal poverty guideline. 500% of the federal poverty guideline for a family of four is $156,000 annually. - here's the link:
https://www.marywashingtonhealthcare.com/patients-visitors/pay-my-bill/pay-my-bill-faq/
3. Mary Washington Healthcare's revenue is over $900 million annually, not the $100 million you reported, meaning that the calculation you have done about executive pay is completely wrong. In fact, executive compensation at Mary Washington is similar to executive compensation at other similarly sized healthcare organizations - here's the link - https://projects.propublica.org/nonprofits/search?q=mary+washington+healthcare
4. Mary Washington does have an annual audit by a third party - that third party is Baker Tilley, a national accounting firm.
A good start, but given that everything is relative, and that everything is related, a few more thoughts/questions come to mind:
1. The word "profit" is misused when discussing not-for-profit entities. Any excess funds remaining at the end of their fiscal year is held in cash until management determines the best use for it. 2. A comparison to one other hospital is statistically irrelevant, but nonetheless, a cost of living comparison with the Lynchburg area is also required, as is comparisons to for-profit hospitals' executive pay. 3. The halting of lawsuits, which is fantastic, erased a revenue stream. What replaced it? 4. Recent national and global events put tremendous strain on healthcare workers, resulting in alarming staffing shortages that must be ameliorated with large staff pay increases, especially for nurses. Where is that additional funding to come from, given one less revenue stream to cover it? 5. All these new financial stressors must be successfully navigated by a dedicated and knowledgeable leadership team. If they fail, where does that leave us? 6. Is the new conference center they're planning designed to provide a new revenue stream to keep the hospital viable? 7. Some of this might be spelled out in the hospital's annual reports, which I have not read, but I am sure that an annual independent audit is always done (update: a subsequent review of their 990 confirms NO such audit).
Why are you sure that an annual independent audit is always done? If so, please post it online. If the annual report is anything like the justifications which MWH has provided for its cutbacks, it conceals more than it reveals. Fortunately MWH's tax filing is available so at least we know how they spend their money or do we?
After seeing your reply, I took a few minutes to look up their 990 to confirm their financials are indeed independently audited, and I was truly shocked to find they are not. I will amend my post.