Submitted by Safe-Pop2076 t3_ywaef0 in pittsburgh
Cuttlefisher1890 t1_iwlojpc wrote
Reply to comment by enemy_of_your_enema in upmc by Safe-Pop2076
Less about size more about the fact that they make a profit and their c-level executives make millions per year.
enemy_of_your_enema t1_iwly1t1 wrote
Non-profits are absolutely allowed to "make a profit" in that they can bring in more money than they spend in a given period. And of course they should be able to do that - think how hard it would be to run an organization if your expenses had to always match your income.
What nonprofits can't do is take those profits home in the form of dividends. They have to be reinvested in the organization.
Being a nonprofit also has absolutely nothing to do with the salaries of executives. I think there are good reasons those salaries shouldn't be exorbitant, but it's not related to their nonprofit status. It's not the "charity" sector where qualified professionals should be expected to take a pay cut.
Cuttlefisher1890 t1_iwm71db wrote
I'm just explaining why people don't like UPMC's non-profit status. Not saying it's why they shouldn't qualify for it.
Marchesa_07 t1_iwme76i wrote
Yes, we know they're not supposed to held to a strict standard where they break even.
But their profit margins are massive, seemingly excessive, and where is UPMC reinvesting the 12 BILLION into the organization? Certainly not in the staff payrolls.
Development of additional tax free properties throughout the city? The US and abroad?
Research? I'm not going to get started on how grant indirects work, the amount of tax money that's wasted in research, or the fact that UPMC is very tight fisted with research support.
Health insurance relief?
Do you have a better idea as to the answers?
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