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OC Watchdog ~ Your tax dollars at work.

CHOC provides more detail on executive’s compensation

September 4th, 2008, 3:30 pm · 13 Comments · posted by Teri Sforza, Register staff writer

Recently, we highlighted the healthy compensation of OC’s non-profit hospital executives.

Top earners were Hoag Memorial Hospital Presbyterian’s Richard Afable, whose total compensation was $1.2 million, and Children’s Hospital of Orange County’s Kim Cripe, whose total was  $1.1 million.

Denise Almazan, director of public relations for CHOC and CHOC at Mission, wanted to provide more detail on Cripe, so we copy her message below:

Kim Cripe oversees a regional tertiary/quaternary pediatric healthcare system that includes two pediatric hospitals, five community clinics, four centers of excellence, a Research Institute, and a residency program that trains tomorrow’s pediatricians. The system serves multiple counties - Los Angeles, Orange, Riverside, San Bernardino and parts of San Diego, and receives patients from more than 70 hospitals. It is the only children’s healthcare system in the region and acts as a safety net for some of the area’s neediest and most critically ill children.

Not all organizations report benefits on their tax returns in the same fashion, and CHOC takes a conservative approach by including in the total benefit column such elements as the employer’s portion of Social Security, state unemployment insurance, group health insurance, worker’s compensation premiums and even severance packages - which CHOC’s CEO has not received given her continued service. Her compensation, based on market data of like organizations (size, complexity, revenue), including other children’s hospitals, is determined by the Compensation Committee of the board of directors, of which she and other hospital executives are not members. This committee employs best practices in non-profit governance and executive compensation and contracts with an external, independent firm whose database includes compensation data reported by approximately 350 health care systems, 1,000 hospitals,and 50 children’s hospitals, covering over 17,000 executives and 130 positions.

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Posted in: Charity checkupMoneyNonprofitsPublic health
 
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 13 Comments

  • strongsidejedi says:

    The statement sent to OC Register today stands in stark contrast to the facts revealed by simple Google searches.

    A simple google search identifies a non-profit called the California Children’s Hospital Association
    Their website identifies Regular and Associate members. They are as follows:

    Regular Members
    Children’s Hospital Central California
    Childrens Hospital Los Angeles
    Children’s Hospital of Orange County
    Children’s Hospital & Research Center at Oakland
    Loma Linda University Children’s Hospital (not identified tonight on guidestar)
    Lucile Packard Children’s Hospital at Stanford
    Miller Children’s Hospital (not identified tonight on guidestar)
    Rady Children’s Hospital - San Diego

    Associate Members
    Mattel Children’s Hospital at UCLA
    University Children’s Hospital at University of California Irvine
    University of California, Davis Children’s Hospital
    University of California, San Diego Children’s Hospital
    University of California, San Francisco Children’s Hospital
    Children’s Center at Sutter Medical Center, Sacramento

    In a written statement to the Orange County Register, a spokesperson for CHOC defends the actions of their Board of Directors by stating:
    “The system serves multiple counties - Los Angeles, Orange, Riverside, San Bernardino and parts of San Diego, and receives patients from more than 70 hospitals. It is the only children’s healthcare system in the region and acts as a safety net for some of the area’s neediest and most critically ill children.”

    Review of the list from the CCHA (of which we note that CHOC is a member and acknowledges) shows that there are seven other children’s hospitals in the counties listed by CHOC representatives. We are unclear why CHOC states that they are the “only children’s healthcare system in the region” when USC, UC Irvine, UCLA, UC San Diego, and Loma Linda all have university and medical school affiliated pediatric hospitals. Each of those websites list university affiliation as a part of their programs.

    We rank list the reported income of some of these hospitals in 2005
    They are:
    Hospital (ranked in total Revenue)

    Lucille Packard Children’s Hospital, Stanford, California ($556,069,591 in 2005)
    Children’s Hospital of Los Angeles ($527,823,635 in 2005)
    Children’s Hospital of San Diego ($395,573,634 in 2005)
    Children’s Hospital of Orange County ($343,304,390 in 2005)
    Children’s Hospital at Oakland ($336,809,036 in 2005)
    Children’s Hospital of Central California- Fresno, California ($291,257,219 in 2005)
    Miller Children’s Hospital, Long Beach, California (not reported on Guidestar)
    UCLA Children’s Hospital, Los Angeles, California (not reported on Guidestar)

    Here is the rank list of CEO salaries for the California children’s hospitals we identified at Guidestar tonight.

    1. Children’s Hospital of San Diego (number 3 in annual 2005 revenue)
    Blair Sadler
    President
    TOTAL = $1,195,103
    Compensation= $ 921,381
    Benefits = $259,232
    Expense Account = $14,490
    2. Children’s Hospital of Orange County (number 4 in annual 2005 revenue)

    Kim Cripe - CEO
    TOTAL = $1,101,159
    Compensation = $846,394
    Benefits = $215,965.00
    Expense Account = $38,800

    3. Lucile Salter Packard Children’s Hospital (number 1 in annual 2005 revenue)
    Christopher Dawes - CEO/President
    TOTAL = $809,386.00
    Compensation = $768,668
    Benefits = $40,718
    Expense Account = $0

    4. Children’s Hospital of Oakland reports on 2006 tax return
    Frank Tiedemann, MD - President & CEO
    TOTAL = $673,671
    Compensation = $586,142
    Benefits = $87,529
    Expense account = $0

    5. Central California Children’s Hospital
    William F. Haug CEO
    TOTAL: $597,337
    Compensation= $571,478
    Benefits = $16,259
    Expenses = $9,600

    6. Children’s Hospital of Los Angeles (number 2 in annual 2005 revenue)
    Richard Cordova - President and CEO
    TOTAL= $570,605
    Compensation = $416,062
    Benefits = $153,665
    Expense account = $878

    • joe barter says:

      People like kim cripe or the board of directors at CHOC in OC should be ashamed of themselves. They just laid off people right around Christmas and they get paid a fortune. If their hospital is doing badly, they should refuse receiving such high bonuses.

  • strongsidejedi says:

    CHOC’s 990 tax return seems to list the Executive Compensation of the CEO, Kim Cripe, and the CFO, Kerri Ruppert, as zero.

    However, review of the related organization’s Form 990 shows otherwise.

    CHOC’s Form 990 lists a related organization called Children’s Healthcare of California with an identical street address, identical executive officers as CHOC, and yet different books.

    The CHC 2005 tax return states total program service revenue for CHC as being $1,347,000 in 2005.

    They also report the CEO and CFO salaries…which total $1,346,383.00.

    It seems that the CEO + CFO salary is 99.954% of the annual program service revenue of the entire non-profit.

    Now, can someone at OC Register explain to this citizen why you are bagging on BSA so much when CHC reports a ratio of Program Service Revenue to CEO + CFO salary exceeding 99.9% ????

  • OCeq says:

    Wow strongsidejedi. It sure seems like you have a personal ax to grind. Nice to attack behind an anonymous user name but seems like an odd use of time. Looks like you have good insider info on CalOptima and the intimate workings of the O.C. Healthcare scene. I wonder if you are a public employee with your own nice salary and benefit package courtesy of taxpayers. It strikes me that those critizing others’ personal income like to keep that info private for themselves. Why not ‘fess up and share your net worth?

  • Strongsidejedi says:

    Visit the blog we just started to examine hospital expenditures on the tax payer dime…
    ochospitals.blogspot.com

    We’re not insiders.

    We’re just citizens who are disturbed that Hospital interests appear to be taking BILLIONS of tax payer dollars in our county alone.

  • Alan says:

    OCeq Says:
    behind an anonymous user name

    Is not OCeq an anonymous user name?

    Got to love Social Journalism at its best. OpenID helps a little with linking personal comments to an individual associated with a blog; however, the research done by bloggers cannot be underestimated by the mere fact of their screenname.

  • Strongsidejedi says:

    Message to OCeq

    Do you disagree that the money paying these hospitals ultimately comes from US Citizens?

    We citizens have a right to review who is getting paid when it is OUR money being appropriated by these self-appointed state funded boards.

    It is high time that the larceny and fraud which is utterly destroying the financial stability of this government be brought to light.

    I applaud the OC Register for the discussion they are encouraging with the OC Watchdog blog.

    If any of these executives don’t like the fact that they are subject to public disclosure of these issues, then they shouldn’t be running a “NON PROFIT” organization.

    They should get out of NON PROFIT and go private.

    That’s the entire definition of PRIVATE.

    The entire problem is that these PUBLIC NON-PROFIT executives believe that they can control the organization like a PRIVATE corporation. It is NOT.

    The organization should be defined as a FOR PROFIT and PRIVATE company if they want to keep their million dollar takes private.

    Otherwise, they need to start disclosing more and stop whining about privacy.

    • joe barter says:

      Thank you for saying what I was thinking. Why government is pouring money into these organizations with fat bank account of their CEOs and CFOs and management. Why do I earn 40K and pay their wages??
      I understand every profession and skill has a value, but where do you draw the line of greed. This is just greed. It is sinful.

  • strongsidejedi says:

    Hospital Information
    OSHPD Facility Number 106300032
    Facility Name CHILDRENS HOSPITAL OF ORANGE COUNTY
    Gross Patient Revenue by Payer
    Payer Source Total Gross Revenue ($)
    Medicare - Traditional 5,477,252
    Medicare - Managed Care 0
    Medi-Cal - Traditional 111,637,759
    Medi-Cal -Managed Care 26,882,605
    County Indigent Program - Traditional 0
    County Indigent Program - Managed Care 0
    Other 3rd Parties - Traditional 1,817,953
    Other 3rd Parties - Managed Care 96,761,713
    Other Indigent 163,687
    Other Payers 7,400,143
    Total Gross Patient Revenue 250,141,112

    Gross Inpatient Revenue 179,777,639
    Gross Outpatient Revenue 70,363,473
    ____________________________________

    Notice that “other 3rd parties” appears to be describing private insurance.

    Basically, by totaling the income CHOC reports, we can see how much comes from State of California.

    It’s basically $144,000,000 dollars per year of State funded revenue.

    If you divide the state funded amounts to the hospital by 365, you find that CHOC is costing California citizens about $400,000 per day!

  • strongsidejedi says:

    Average Length of Stay is 6.5 Day(s) in CHOC versus 5.3 days average stay for California

    Average Charge is $77,081 at CHOC vs. $34,392 average for California (OVER DOUBLE THE STATE AVERAGE CHARGE PER HOSPITALIZATION)

    Average Charge per Day is $11,925 at CHOC vs. $6,486 average for California

    Median Charge per admission is $51,194 at CHOC vs. $45,769 for California

  • strongsidejedi says:

    Why does CHOC like MediCal so much?
    This OSHPD report tells it all. Look at the revenue CHOC gets for each type of program.

    CHOC reported that their NET Inpatient money per patient per day was about $4500 per private PPO or HMO patient. But, under Medi-Cal (state funded programs), CHOC got $9000 per patient per day.

    So, the patients at CHOC under a state funded program generated TWICE as much revenue than a patient who actually pays to be in the hospital.

  • sara says:

    Why is this not publicized so the people of this county and this state see how much some of these healthcare programs are costing the taxpayers. Choc prides itself on being a “Premier Childrens Hospital” for the children, but they seem to be chasing a certain patient population because it is more lucrative. Do they care as much for the private insurance patients?

  • strongsidejedi says:

    Sara,
    DO NOT VOTE FOR PROP 3!!!

    From the California Voter Pamphlet:
    “Children’s Hospital Bond funds are rigorously accounted for and controlled by the State Treasurer. And Proposition 3—with principal and interest—is one of the smallest bonds ever.”

    LIE LIE LIE

    WHERE DID OCREGISTER’S OCWATCHDOG COLUMN ON THE SALARIES PAID TO CHOC EXECUTIVES GO?

    WHERE DID THE ACCOUNTABILITY FOR KIM CRIPE (CEO) AND KERRI RUPERT (CFO) GO?

    While Liberals are bagging on Sarah Palin’s $150,000 clothing purchases, the REALITY is that Cripe and Rupert have received MORE than that amount over the past eight years as the two senior managers at CHOC.

    And, why do these two need more tax payer revenue for their luxury, yacht trips, and limo’s????

    It’s not just for the kids!

    Get a clue Voters…. you’re paying these CEO and CFO salaries with your child’s life!

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