The CEOs of these three “non-profit” hospitals testified to Congress about high costs but failed to look at their own compensation and excessive expenditures. 

Earlier this week, the CEOs of several large non-profit hospital systems went before the House Ways & Means Committee for a hearing examining how hospitals are driving up healthcare costs for patients. The CEOs of these systems, New York-Presbyterian Hospital, CommonSpirit Hospital, and ECU Health, all blamed labor costs, pharmaceutical prices, administrative costs, and regulatory burdens for driving the costs of healthcare. 

However, these executives should also look no further than their own compensation, perks, and abuse of the 340B program to explain how they are hurting patients. Not only are these “non-profit” hospitals lining their own pockets with huge salaries, they are profiting from a federal program that was meant to serve “safety net” hospitals and low-income patients. 

Chairman Jason Smith (R-MO) even stated during his opening remarks: “Large hospital systems…manipulate the 340B drug pricing program to keep steep drug discounts for themselves instead of passing the savings to low-income patients. There is little evidence that the $290 billion in discounts given to hospitals under the 340B program since Obamacare was ever reinvested in patients. Even worse, there is evidence that hospital abuse of 340B actually directly led to increases in Obamacare premiums.”

Below is a quick look at just how much money these hospitals are making while taking advantage of the “safety net” federal program meant for low income patients. These hospitals are pocketing big profits and giving their CEOs big payouts. 

New York-Presbyterian Hospital

New York-Presbyterian is New York’s highest-operating-expense 340B hospital, but provides just 0.97% of its operating costs to charity care. In 2024, the hospital reported $10.7 billion revenue and nearly $22 billion assets. Additionally, during the hearing, New York-Presbyterian was questioned regarding a recent suit brought by the U.S. Department of Justice alleging anticompetitive contacts, which they denied. Chairman Smith also questioned why New York-Presbyterian is designated a rural referral center, giving them “easier access to heavily discounted drugs under the 340B program” and giving them a “windfall of benefits intended to support truly rural hospitals.”

It spent nearly $24 million on “conflict of interest” transactions, including salaries for family members of key employees and officers, and lease payments and legal fees to trustees with interest in those respective organizations. They also paid for first-class travel, housing allowances, and personal services (i.e. maids, chauffeur, chefs) for some of their executives.

Brian Donley, the President and CEO, reported over $5 million in compensation from the organization as an executive vice president and chief operating officer in 2024. His current compensation since taking over as CEO six months ago has not been reported yet, but is likely to be even higher.

Meanwhile, hospital revenue from pharmacy sales skyrocketed from $25 million to $93 million from 2021 to 2022, and increased 880% over five years (2019-2024).

During the hearing, members of Congress noted that one of the organization’s hospitals gives Chanel goody bags to new moms, while reportedly charging around $35,000 to give birth there.

CommonSpirit Health

CommonSpirit says that “over 115 CommonSpirit Health hospitals, clinics, and infusion centers participate in the 340B Program, from rural community hospitals in the Midwest to large urban safety-net hospitals on the West Coast.” 

In 2024, President and CEO Wright Lassiter received over $15 million in compensation from CommonSpirit and related organizations, which was questioned during the hearing. Representative Lloyd Smucker (R-PA) asked Mr. Lassiter during the hearing about excessive spending on board meetings abroad, citing the organization’s own 990. In the same year, CommonSpirit paid over $200,000 to E-Lead Resources, Inc, a promotional products and marketing company owned by a family member of one of their former officers. CommonSpirit reported over $3.4 billion in revenue and nearly $10 billion in assets in 2024, and provided first-class or charter travel to its executives, even though they ultimately reported a loss of over $271 million.

ECU Health

ECU Health is no stranger to increasing the costs of health care services. ECU Health is also familiar with raking in big profits. In 2023, the “non-profit” health system reported nearly $440 million in revenue and paid $10.5 million in executive compensation. ECU’s CEO Michael Waldrum reported over $1.7 million in total compensation in 2023 according to the organization’s latest 990. 

ECU has also been accused of deceptive billing and debt collection practices, while they rake in millions in revenue. In 2022, a patient filed suit against ECU, alleging that they charged patients with private insurance “undisclosed” and “unreasonably high” prices, potentially higher than “ten times” the Medicare rate. The suit also cited “aggressive debt collection practices” that left them no choice but to pay these absurdly high rates for care.

Meanwhile, ECU’s patient care leaves something to be desired. Last year, ECU paid nearly $120,000 to the Department of Health and Human Services after failing “to provide an appropriate medical screening examination to a patient.” After failing to determine whether the patient, who had a medical history of dementia, was competent to leave the facility, they allowed him to leave without notifying family or the assisted living facility he resided in, and unfortunately, was later found dead.