Two Philadelphia senators may scrutinize the tax-exempt status of University of Pittsburgh Medical Center if it's unable to reach a deal with insurer Highmark, according to a Pittsburgh Post-Gazette report.
Sens. Jay Costa and Don White both expressed curiosity about the health system's status, with some points of concern being the $4 million salary of UPMC CEO Jeffrey Romoff, the system's advertising in sports stadiums, its $406 million operating profit in the past year and its international investments, according to the report.
These questions over UPMC's status are being raised after the system announced it would not negotiate with Highmark since the payor is in the process of acquiring West Penn Allegheny Health System in Pittsburgh — a competitor of UPMC.
UPMC CFO Robert A. DeMichiei released a statement, saying "UPMC follows not only the letter, but the spirit, of all federal and state laws governing UPMC's tax-exempt status," according to the report.
UPMC's 1Q 2012 Operating Income Reaches $155M
UPMC Insists It Will End Contract With Highmark Next Summer, Calls on Insurer to Develop Transition Plan
Sens. Jay Costa and Don White both expressed curiosity about the health system's status, with some points of concern being the $4 million salary of UPMC CEO Jeffrey Romoff, the system's advertising in sports stadiums, its $406 million operating profit in the past year and its international investments, according to the report.
These questions over UPMC's status are being raised after the system announced it would not negotiate with Highmark since the payor is in the process of acquiring West Penn Allegheny Health System in Pittsburgh — a competitor of UPMC.
UPMC CFO Robert A. DeMichiei released a statement, saying "UPMC follows not only the letter, but the spirit, of all federal and state laws governing UPMC's tax-exempt status," according to the report.
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UPMC Insists It Will End Contract With Highmark Next Summer, Calls on Insurer to Develop Transition Plan