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pAul2437 t1_ixnd0vr wrote

Reply to comment by tesla3by3 in Pittsburgh's largest nonprofit is concerned that its profits are down by thanxhaveagood1

The rate is based on comparable sized and missioned companies

What is more regulation than IRS code?

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tesla3by3 t1_ixnf46i wrote

There are no hard and fast rules. The IRS issues guidelines, and uses words like "reasonable" and "comparable". Highly regulated would be hard and fast rules- things like X% of median, etc

You are correct about mission and size, but there is a lot more to it than that. NP's are also competing for employees with for profit companies. That's why compensation can be base on an employees salary history as well.

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pAul2437 t1_ixnh056 wrote

So do you think upmc execs are paid higher than market to avoid showing profit like the op said?

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tesla3by3 t1_ixnm1at wrote

There’s no reason for UPMC to avoid showing a profit, other than bad PR, as this thread shows. OTOH, the high exec salaries aren’t that popular either.

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