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More investigation warranted

September 2, 2015 by Guest Post

Marcus Daly Hospital is a 501c PUBLIC CHARITY. According to its charter and IRS rules, its purpose is specifically to provide charity care to the public. Based on numerous employee horror stories I seem to hear daily, I wrote an op-ed, printed on July 16 in the Ravalli Republic’s Valley Viewpoint, named “Hospital Leadership Contributes to Low Employee Morale.”
From that documentary, readers rendered 33 blog opinions, many of which were by employees. Of the 33 replies, 28 were highly critical of MDMH and applauded my investigation. Their input and then scores of follow up calls to me only fuels my fire to get at the truth.
Based on employee reports regarding questionable hospital finance practices, I made contact with an accountant who deals specifically with non-profit charities. I obtained absolute assurance that the MDMH non-profit is required by law to provide transparent and open financial records to the public. However, in its 990 tax returns there are many “line items” that are totally ambiguous and without public explanation. Especially notable are Contingent Liability Payments to “key” employees. That hidden information can spell disaster for MDMH if it can be shown that the 11 “key” employees are paid near or exceeding the “public charity” required by IRS standards.
Is this a matter where bloated salaries exceed charity care? Is MDMH really a hospital of “public charity”… or a well oiled money making machine for 11 wealthy individuals?
Hospital CFO, Donja Erdman, refused my written request for an explanation of MDMH tax returns. Ravalli lawyers and CPAs, here’s your chance to provide a much needed public service!
I need your help!
John Gibney
Hamilton

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Filed Under: Opinion

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