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GAO-06-907R 1 (2006-06-30)

handle is hein.gao/gaocrptatte0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 June 30, 2006 The Honorable William M. Thomas Chairman Committee on Ways and Means House of Representatives Subject: Nonprofit Hospital Systems: Survey on Executive Compensation Policies and Practices Dear Mr. Chairman: As a part of Congress's continuing efforts to oversee the activities of the nonprofit sector, you asked us to review executive compensation issues at selected private, nonprofit hospital systems to gain an understanding of the policies and practices related to the salaries, benefits, travel, gifts, and entertainment expenses paid by these hospital systems. Our study's key questions were as follows: * What corporate governance structure do selected hospital systems report as having in place over executive compensation? * What is the basis for the compensation and benefits earned by, awarded to, or paid to the executives as reported by selected hospital systems? * What internal controls do selected hospital systems report as having in place over the approval, payment, and monitoring of executive travel and entertainment expenses, gifts, and other perquisites? In answering our study's key questions, we used the American Hospital Association's AHA Guide (2005) to identify private, nonprofit hospital systems according to the number of staffed beds reported. We developed an electronic survey to gather information from selected hospital systems and administered the survey in two phases. In the first phase, we judgmentally selected 15 hospital systems considering geographic diversity. At least 1 hospital system was selected from each of the nine geographic regions, as defined by the Census Bureau. We briefed your staff on the results of our initial survey and, at your request, selected an additional 85 hospital systems to survey. The 15 and 85 hospital systems combined were the top 100 that we identified from the AHA Guide (2005). We revised our initial survey instrument based on responses received. We analyzed the survey responses to identify unusual, incomplete, or inconsistent responses and followed up with the hospital systems to the extent possible after considering any survey comments provided. We did not seek to validate the responses provided. GAO-06-907R Nonprofit Hospital Systems

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