FAIRNESS
The latest twist in the checkered career of Dr. McEvoy, the CEO of Memorial Hospital System, is upsetting citizens and in different cities could cost Council President Scott Hente his job. Are we upset about 18 month severance, totaling around $1.15 million? Or, are we upset at the lack of oversight by the appropriate governing boards?
The fact that Dr. McEvoy, whom I lampooned months ago for his scare tactics while the hospital was profitable, overplayed his hand and lost badly, agreeing to a “separation” so that he’s neither resigning nor being fired, is perhaps what justice should look like. He wanted the hospital to himself, setting it up as a non-profit with a board he’d appoint, a cushy relationship indeed. Along the way he got a pay raise amidst negotiations for the sale of MHS to UCH. What warranted his raise, excellent performance? And Council President Hente, consulting with his right-hand woman, Pro Term Jan Martin, thought nothing of it.
They also didn’t challenge the severance pay until Mayor Bach forced the issue in an open letter to Hente. Convening Council, they agreed to dismiss MHS’ board and appoint their own. Does the Mayor have to wake up Hente and Martin from their political slumber? Are they really that out of touch with public sentiments? What upsets citizens at the end of the day isn’t how much money anyone makes, but rather morality. We want to know that someone in position of power monitors abuses and ensures fairness in the system.
The New York Times reported that according to Greenlining Institute, Apple—the brainchild of Saint Jobs—paid just $3.3 billion in 2011 on profits of $34.2 billion, making it an effective rate of 9.8%. Forbes’ contributor, Tim Worstall, explains that taxes paid in 2011 are for profits made in 2010 which were only $18 billion, making it an effective rate of 18%.Worstall is probably correct, and The Washington Post was delighted to correct its northern rival. The issue remains: is it fair for Apple to use its off-shore subsidiaries in order to avoid paying taxes in the US? Isn’t its headquarters in California? Isn’t it enjoying the infrastructure provided here? When copyright issues arise, isn’t Apple happy to appeal to American rule of law?
Isn’t the brain-power that propels companies like Apple nourished on our campuses, courtesy of taxpayers who guarantee student loans and provide needed research and development grants from the National Science Foundation and the National Institute of Health?The same fairness questions have been raised before by the legendary Warren Buffet who paid taxes totaling 17% percent of his $40 million in taxable income. Romney’s tax rate for 2010 was 14%, while Obama, comparably the poorest, paid 20% on his $789,674 taxable income. Do any of these relate to the 99% of American taxpayers?
The fact that Dr. McEvoy earns much more than the US President’s $400,000 only proves how much more valuable his services must be. If he were in private practice, no one would care. But he works for us, after all.Perhaps the comparison should be closer to home. On MHS’ website, this Note was posted: “On June 29, Memorial Health System will begin relying on Bonfils Blood Center, a Colorado organization, to collect blood and provide products for our patients. This change means memorial will no longer operate its own blood donor services.”
Richard Titmuss’ The Gift Relationship (1971) suggested that countries where blood is donated rather than bought and sold had no shortages, and the blood in their banks was less contaminated. What does this switch in policy, under the leadership of McEvoy mean? Has he read the book? Or is the financial cut implemented to ensure his salary raise and severance pay? Has he cut anything else at MHS to guarantee that he stays within the budget, and thereby doesn’t need his board to get Council approval?
It won’t be a week too early for MHS to be sold to UCH. Get this mess off our hands, because our own watchdogs, City Council, obviously lack the kind of leadership that can handle its fiduciary responsibilities. How are they doing with CSU? The less you hear about council leadership and CSU, the more you should worry. At least with MHS there are leaks that get to the press and then to the public. CSU, by contrast, is so close-mouthed that no one knows what’s going on, including Council
This is an open plea for Council to probe the depths of CSU and devise a plan for selling it to the highest bidder. CEO Forte won’t care as much, now that he knows he can ask for a raise and get a hefty severance pay—it’s a win-win, no?Raphael Sassower is professor of philosophy at UCCS. He can be reached at rsassower@gmail.com See previous articles at sassower.blogspot.com
