Should Non-Profit Hospital Salaries be Capped ?

I just reading this interesting article giving an interesting angle to looking at salaries in Non-profit sectors, with the reporter being amused about finding that that non-profit organizations could also pay tons of dollars in salaries:

"Working for or leading a nonprofit does not necessarily mean taking a vow of poverty, as the Times Herald-Record discovered" and then gives a list of salaries earned by Healthcare CEOs, physicians, Radiologists in 2007:

1. Donna McAleer, president & CEO, Elant: $655,260
2. Allan Atzrott, president & CEO, St. Luke's Cornwall Hospital: $614,365
3. Scott Batulis, President & CEO: Orange Regional Medical Center: $589,899
4. Thomas Dee, President & CEO, Benedictine Hospital: $566,170
5. Dr. Inderpal Singh, Cardiologist, Orange Regional Medical Center: $512,441
8. Dr. Abdul Shahzad, Catskill Regional Medical Center: $468,242
9. Dr. Jay Feder, Radiologist, Orange Regional Medical Center: $442,666
10. Dr. Tejas Parikh, Radiologist, Catskill Regional Medical Center: $434,055

First of all, the term "Not-for-profit" is a misnomer in what it conveys - profits are made ..and secondly, for any organization to survive, profits HAVE to be made. Which means good talent has to be retained...and salaries have to be paid accordingly ! So....I find it amusing that the author paints an angle of surprise. He talks about capping salaries for non-profits:

"Eisenberg opined in the Chronicle of Philanthropy's May issue that, among other things, Congress should cap salaries for not-for-profit staffers at $400,000 — the same salary as President Obama. If they want to pay an executive more, they should be taxed 100 percent on that amount, Eisenberg said"

Nonprofit hospitals account for about 60 percent of the more than 3400 hospitals in the U.S..

Thoughts ?

Read Article Here