OF INTEREST

This internet item today from “Politics” should be of interest for Plainfield

“Nonprofit hospitals – When a nonprofit organization pays its CEO $5 million a year, it’s pretty obvious someone is profiting a lot, and that something is wrong. That was the situation in a court case in New Jersey this summer where the supposedly nonprofit Morristown Medical Center (owned by the Atlantic Health System) lost its tax-exempt status as it was operating like a for-profit hospital on almost every level.

In his decision, the judge pointed out that the medical center has various relationships with for-profit subsidiaries and owns several for-profit physician practices and other businesses The court was “unable to discern between non-profit activities carried out by the Hospital on the Subject Property, and the for-profit activities carried out by private physicians.”

In revoking the medical center’s property tax exemption, the judge noted: “By entangling and co-mingling its activities with for-profit entities, the Hospital allowed its property to be used for forbidden for-profit activities.”

The judge also emphasized that Morristown Medical Center paid its executives unreasonably high salaries for a nonprofit, including a completely unconscionable $5 million to its CEO in 2005.

Healthcare industry analysts immediately highlighted that this decision in New Jersey had major implications for other nonprofit hospitals across the country, and the judge was apparently quite aware of the stakes involved in his decision.”

“If it is true that all non-profit hospitals operate like the Hospital in this case, as was the testimony here, then for purposes of the property-tax exemption, modern non-profit hospitals are essentially legal fictions,” Judge Vito Bianco noted in his decision.”

Many of us have argued for years that due to its many money making enterprises, including renting space for the dialysis unit, JFK should be liable for property taxes on the Muhlenberg campus.  Will our leaders seek redress?

Addendum to Council Blog.

I hope that I did not imply that the Council meetings were not worth attending because nothing was done. On the contrary there were many important resolutions and the spending of many dollars authorized Monday night.

My complaint was based on the fact that the Resolutions and Ordinances were read and voted on so fast that it gave the impression everything was being rubber stamped.

To her credit Vera Greaves wanted to know why another consultant at the cost of $65,000.00 was needed for the Muhlenberg property. No one questioned any other expenditure just voted yes as Chairman of the whole, Brown, rapidly read everything by number or script.

No one has questioned the numerous fees for engineering services or for legal services as an example. How much more it costs us to use independent contractor rather than a full time salaried employees.

No Councilor seems to be able to factually question numbers provided by administration

Since many of these contracts seemed to be awarded sans a RFP. One cannot escape the thought that some of these awards are staffed by beneficiaries of political pay. Therefore it all too often does too often become the burden of the public speaker to become the watchdog. When the people are denied the information or the ability to digest what the Council id voting on, that is a disservice

DOTTIE GUTENKAUF

To my regret after a hurried posting of my blog this am I did not have the opportunity to use my computer and open my emails until about 4 pm today. It was then that I read the sad but not unexpected news about Dottie Gutenkauf’s passing.

One can only admire Dottie’s attitude of optimism over what she knew was a fatal malignancy. However it was typical of Dottie that she should have not a run of the mill cancer or melanoma but one that was unique.

Although Dottie and I had different views but never clashed about the worth of Socialism in our society; I highly respected Dottie and for almost two decades counted her as one of my most important community friends.

When at the Public Comment session of Council meetings Dotttie, always the last speaker, addressed the Council her remarks were always well thought out, pertinent to the subject, free of “bull” and advice that should have been followed.

Plainfield has lost a rare but true public servant who eschewed political office so that she could best be a people’s advocate.

I will miss her