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Thursday, February 10, 2011

What Bad Economy? Clinic Payroll Includes 13 Millionaires

Posted By on Thu, Feb 10, 2011 at 3:33 PM

A million bucks
  • A million bucks

The tax exempt, not-for-profit- Cleveland Clinic, the same Cleveland Clinic that reduced charity care this year due to economic concerns, paid 13 employees more than $1 million in 2009. The year before, the Clinic made millionaires of only 11 people.

Our friends at MedCity News did the legwork, combing through the 145-page non-profit tax form the Clinic filed with the IRS.

The Clinic millionaires include likely suspects, like CEO Delos "Toby" Cosgrove, who got an 11 percent raise and took home more than $2.1 million in 2009. Next up was Bruce Lytle, chair of the Clinic's world-renowned Heart and Vascular Institute at $1.5 million, and Constantine Mavroudis who heads pediatric heart surgery. It might be hard to argue that any of them aren't worth it.

But, the Clinic did pay a guy who must have really been livin' large in Abu Dhabi that year.

The director of the Clinic's new place in the United Arab Emirate sheikdom was one of six employees making $1.1 million. What makes this notable is the exchange rate and cost of living in Abu Dhabi.

How much does a one-liter Coca-Cola run over there? The equivalent of 54 cents. A loaf of bread is less than a dollar. Need a new microwave in Abu Dhabi? Try a wide range of models available for $28. There are no taxes in Abu Dhabi; no sales tax, income tax, property tax, and certainly no fuel tax. It's true though, that rent can be a little high — about what you would expect with a Mid-town Manhattan walk-up for a similar-sized place.

But still, the Clinic could consider cutting that Abu Dhabi director's salary in half and putting the other half into the charity care fund they are so worried about. A half mil is plenty to live on in Abu Dhabi.

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