EDITORIAL: RI Non-Profit Healthcare CEO Salaries Are Just Amazing - Cha-Ching

EDITORIAL: RI Non-Profit Healthcare CEO Salaries Are Just Amazing - Cha-Ching

 

Just after Lifespan's [now Brown Health] CEO had lobbied Rhode Island Governor Dan McKee, Speaker Joe Shekarchi, and Senate President Dominick Ruggerio for tens of millions in subsidies, he left the company and grabbed nearly $7 million on his way out the door.

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Cha-ching.

In Timothy Babineau’s last year, his total compensation was $6,836,842.

This wasn’t the first time Lifespan played this hustle. When George Vecchione, Babineau’s predecessor, left in 2011, his compensation totaled $7.88 million. He took down more than $40 million during his tenure in just over a decade.

In an interview on GoLocal LIVE this week, Dr. Phil Chan raised concerns about the loss of federal funds and the impact on the quality of care in Rhode Island.

Chan is right to raise these concerns, but there will be little sympathy when the leadership is taking remarkable salaries regardless of their performance.

 

Working for the Poor for $650,000+

Now, there is the case of Merrill Thomas, the CEO of Providence Community Health Care (PCHC). The organization's mission is focused on providing the poorest access to healthcare. More than 80% of the patients are on Medicaid or are uninsured.

In 2024, Thomas closed PCHC’s Olneyville healthcare center and laid off 40 employees. This past week, Thomas laid off another 70 employees.

Between the two layoffs, about 18% of their workers have been cut.

And while the cuts were hitting, Thomas has scored a 47% increase in compensation over the past 5 years

According to the most recent 990 filing for PCHC in 2023 — Thomas took home $650,669 for the year.

Cha-ching.

 

Mismanagement and a 25% Pay Increase

There is also the case of Thundermist who in September of 2024 laid off 124 — 14% of its workforce.

Then, more layoffs. The total is now more than 150.

The takeover crew who came in to stabilize Thundermist blamed the management of the preceding CEO — Jeanne Lachance.  Guess what happened during the three preceding years? Lachance received a 25% increase in compensation.

Cha-ching.

These endless raises and somewhat outrageous compensation packages are the responsibilities of these boards, who too often are too chummy with the CEOs and fail to take their fiduciary responsibilities seriously. Add to that the CEOs who seek and take almost everything they can grab, regardless of the performance of their organizations. 

 

An Effort at Transparency

State Representative Patricia Serpa has submitted a bill that if passed would require non-profits who seek state funding to post their top executives salaries on their website.

“As long as the General Assembly is spending taxpayers’ money on grants and funding for nonprofit organizations, the people have a clear right to know how that money is being spent,” said Serpa, a Democrat who represents District 27 (West Warwick, Coventry). “The salaries of state employees are public and easy to find online because we believe the people are best served by this sort of financial transparency. As long as state money is going to these organizations, they should share in that transparency.”

Serpa rightfully calls for this transparency.

But don’t bet on this bill moving quickly through the General Assembly.

These healthcare groups employ an army of high-paid lobbyists who dole out hundreds of thousands of dollars in donations at the State House.

Cha-ching.