Reno, NV – Renown Hospital in Reno has recently announced they would stop their matching benefit to employees’ 401(k) plans due to the recession. According to an online article by US News Money from November of 2008, “Traditionally companies have axed their 401(k) matches during times of financial strife and brought them back when the bottom line improved.” After reviewing Renown’s financials, we are asking Hospital management, “How much better does it have to get?”
A Banner Year!
In 2010 Renown Hospital made over $65 million in operating cash flow AND had a positive change in net assets of $12 million.
According to Guidestar, the total compensation package for Renown’s eight highest paid employees was $3.8 Million in 2009. Let’s take a look:
- Ronald Laxton (former CEO): $555,356
- James Miller (President and CEO): $1,425,784
- Dawn Ahner (CFO): $582,092
- Kristina Gaw (COO): $431,223
- Michael Basinger (former CNO): $228,48
- William Keough (CMO): $224,372
- Linda Ferris (VP of Cancer Services): $221,690
- Larry Weber (VP of Ancillary Services): $191,423
Renown has over $380 million dollars in cash and marketable securities. Renown contributed $5 million and $4.9 million to their 401(K) in 2009 and 2010 respectively. When you look at the numbers, it just doesn’t add up and you have to ask, “If 401(k) contributions are tied to company performance…How Much Better Does it Have to Get?”