As with the threatened $750k increase in rent for the Moss Free Health Clinic, MWHospital seems to have forgotten its obligation as a nonprofit to provide benefits to the community it serves. A nonprofit hospital like MWH pays not a penny in local, state or federal taxes on its hundreds of millions in revenue. This tax benefit allows it to pay extraordinarily high salaries to its administrators and doctors who own it. The FLStar on July 18, 2019 provided a legal explanation of why MWH can do this, although it has been many years since the salaries of its directors were revealed. Nonprofit law makes MWH finances including salaries public information, so maybe the Advance can look into this clear abuse of tax loopholes.
ProPublica maintains a database of non-profit 990 filings that can be found at the link below. I'm not a non-profit expert but I believe director and key employee compensation is public information. Executive comp is required to be "reasonable" and determined at an arms-length. The process is in Schedule O. From what I understand most organizations are typically going to hire an outside comp consultant who researches and puts together a report of salary ranges from similar-sized systems. Since it's a range the rational person would think that the comp should fall somewhere in the middle (average) but that's rarely what happens. Usually after a comp study the exec compensation committee will look at it and say "We like so-and-so," "he/she is a good guy person," or “We think they're above average" and pick a number on the higher end of the curve. Every org picks a number above average, moving the curve up. Then when the next comp study comes along it incorporates this higher number and very quickly you get salary inflation. It's not nefarious, the committee is trying to do the right thing but they don't interpret the salary survey data correctly initially.
You raise an interesting idea on whether the value of benefits provided to the community exceeds the tax benefit that the organization receives. I found a project that makes this comparison for most major hospitals in the US. I have not dove into their methodology so I can't comment on what bias exists in the interpretation of the data: https://lownhospitalsindex.org/hospital-fair-share-spending-2024/
As a thought experiment MWHC in 2022 reported land/building value minus depreciation of $117m. Assuming a 0.89% tax rate the annual tax benefit for property tax exemptions would be approximately $1m for buildings.
Nurses and other healthcare providers were blindsided by the announcement yesterday and left scrambling to find child care before the center closes in May. They deserve better. Hospital Board members were told in Nov or Dec the center wasn't needed and "underutilized." Yesterday, I spoke to 2 board members & the CEO and told them the reality - Last year there was a wait list of more than 50 families for that center - it can take a year to get a spot. Other daycares in the area are full. They are going to lose nurses (and other health care providers) none of us can afford to be without. This morning I sent a letter to the CEO, Mike McDermott and as many of the board members I had emails for and asked them to delay the lease termination until another location can be found. This creates so many financial and logistical hardships for families - especially those working long, stressful shifts at the hospital covering staff shortages and just the typical day in health care. We need to pull together as a community and do something about it. This isn't just about daycare - it's about the long term viability of our local health care system. If anyone would like a copy of the letter I sent, feel free to email me - debbygirvan@gmail.com
Just another example of Mary Washington putting the work/life balance of its associates in last place. Where is everyone going to find childcare options that open early enough to get to work on time? Best place to work my a$$, do better MWH!
Thank you for covering this story and for bringing to light the implications of “repurposing” this daycare that serves our community and healthcare workers so well. The teachers and administrators at this KinderCare location are excellent and it is a tragedy that this Community is being broken apart.
As with the threatened $750k increase in rent for the Moss Free Health Clinic, MWHospital seems to have forgotten its obligation as a nonprofit to provide benefits to the community it serves. A nonprofit hospital like MWH pays not a penny in local, state or federal taxes on its hundreds of millions in revenue. This tax benefit allows it to pay extraordinarily high salaries to its administrators and doctors who own it. The FLStar on July 18, 2019 provided a legal explanation of why MWH can do this, although it has been many years since the salaries of its directors were revealed. Nonprofit law makes MWH finances including salaries public information, so maybe the Advance can look into this clear abuse of tax loopholes.
ProPublica maintains a database of non-profit 990 filings that can be found at the link below. I'm not a non-profit expert but I believe director and key employee compensation is public information. Executive comp is required to be "reasonable" and determined at an arms-length. The process is in Schedule O. From what I understand most organizations are typically going to hire an outside comp consultant who researches and puts together a report of salary ranges from similar-sized systems. Since it's a range the rational person would think that the comp should fall somewhere in the middle (average) but that's rarely what happens. Usually after a comp study the exec compensation committee will look at it and say "We like so-and-so," "he/she is a good guy person," or “We think they're above average" and pick a number on the higher end of the curve. Every org picks a number above average, moving the curve up. Then when the next comp study comes along it incorporates this higher number and very quickly you get salary inflation. It's not nefarious, the committee is trying to do the right thing but they don't interpret the salary survey data correctly initially.
https://projects.propublica.org/nonprofits/organizations/541240646
Full 990 filing for 2022: https://projects.propublica.org/nonprofits/organizations/541240646/202333179349301318/full
You raise an interesting idea on whether the value of benefits provided to the community exceeds the tax benefit that the organization receives. I found a project that makes this comparison for most major hospitals in the US. I have not dove into their methodology so I can't comment on what bias exists in the interpretation of the data: https://lownhospitalsindex.org/hospital-fair-share-spending-2024/
As a thought experiment MWHC in 2022 reported land/building value minus depreciation of $117m. Assuming a 0.89% tax rate the annual tax benefit for property tax exemptions would be approximately $1m for buildings.
Petition created by parents - https://www.change.org/p/petition-to-reconsider-extending-kid-s-station-s-lease?utm_content=cl_sharecopy_37888951_en-US%3A8&recruiter=1037629925&recruited_by_id=530a67a0-4163-11ea-8239-6310346b30c7&utm_source=share_petition&utm_medium=copylink&utm_campaign=psf_combo_share_initial&utm_term=psf&share_bandit_exp=initial-37888951-en-US
Nurses and other healthcare providers were blindsided by the announcement yesterday and left scrambling to find child care before the center closes in May. They deserve better. Hospital Board members were told in Nov or Dec the center wasn't needed and "underutilized." Yesterday, I spoke to 2 board members & the CEO and told them the reality - Last year there was a wait list of more than 50 families for that center - it can take a year to get a spot. Other daycares in the area are full. They are going to lose nurses (and other health care providers) none of us can afford to be without. This morning I sent a letter to the CEO, Mike McDermott and as many of the board members I had emails for and asked them to delay the lease termination until another location can be found. This creates so many financial and logistical hardships for families - especially those working long, stressful shifts at the hospital covering staff shortages and just the typical day in health care. We need to pull together as a community and do something about it. This isn't just about daycare - it's about the long term viability of our local health care system. If anyone would like a copy of the letter I sent, feel free to email me - debbygirvan@gmail.com
Well said Deb! I’ll email you and happy to join your efforts!
My daughter tried to get an appointment with the other KinderCare in Spotsy - no openings until maybe 2025.
Wow! We called there too and were instructed to get on the waiting list but didn’t know it was that bad!
Just another example of Mary Washington putting the work/life balance of its associates in last place. Where is everyone going to find childcare options that open early enough to get to work on time? Best place to work my a$$, do better MWH!
Thank you for covering this story and for bringing to light the implications of “repurposing” this daycare that serves our community and healthcare workers so well. The teachers and administrators at this KinderCare location are excellent and it is a tragedy that this Community is being broken apart.
For those who would be interested in showing your support:
https://chng.it/pc4GW5hgv6