Some nonprofit IU Health board members paid $40K+ for 6-hour work weeks, report says

Indiana University Health in Indianapolis compensated 13 board members nearly $500,000 for about six hours of work a week in 2016, according to Indiana Public Media.

Paying board members is a common practice for corporations, but is more rare in the nonprofit sector, Beth Gazley, PhD, professor in the O'Neill School of Public and Environmental Affairs at IU, told the publication.

In 2016, IU Health paid some board members more than $45,000 for serving on the board, according to tax forms cited by Indiana Public Media. Others earned between $15,000 and $20,000.

IU Health Chief of Staff Kevin Armstrong told Indiana Public Media in an email that other nonprofit hospitals do pay board members.

"The demands on IU Health board members are significant due to our size and complexity ($6.5 billion in revenue, 34,000 team members)," he wrote. "Our compensation is set to reflect the service and expertise required of board members and to be in line with other not-for-profit healthcare organizations that compensate board members."

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