PHOENIX (3TV/CBS 5) - Tax filings for Hacienda Healthcare reveal unusually high salaries and bonuses despite financial losses.
Police have been investigating the south Phoenix care home after a client who has been in a vegetative state for more than a decade gave birth in late December. The corporation’s long-time CEO, Bill Timmons, resigned on Monday.
Hacienda’s most recent 990 tax return posted online shows Timmons made more than $500,000 in 2016 plus a $75,000 bonus.
“There was a roughly $600,000 in compensation paid to the individual in charge and that included a $75,000 bonus,” says Monica J. Stern, CPA, PLLC. “[It] would be unusual to have a $75,000 bonus when you have losses.”
[ORIGINAL EXCLUSIVE STORY: Woman in vegetative state gives birth at Hacienda Healthcare in Phoenix]
Stern is a tax professional specializing in nonprofits and notes a pattern of losses in recent years for Hacienda. The corporation reported more than $777,000 in losses in 2016 and more than $222,000 in losses the year prior.
“That’s fairly significant,” says Stern.
Stern says Timmons’ salary appears to be high when compared to other health care nonprofits of similar size.
“The salary is definitely on the high side,” says Stern. “You would have to evaluate specifically based on what that individual is doing, the number of hours they work, what their job duties are.”
Hacienda appears to be a mix of nonprofit and for-profit organizations, and Stern says you can see money moving between the entities. That’s not unusual. But Stern says it’s unclear who owns the for-profits because the tax field for that information is blank.
“We can tell [Hacienda has] some control of those for-profit organizations,” says Stern. “But we can’t tell what the ownership is or the level of control.”
Stern says the 2017 and possibly the 2018 990 forms should be available to the public. Arizona’s Family could not find the forms through common online resources. We’ve asked Hacienda to provide them, and so far, have not received a response to our request.
[CONTINUING COVERAGE: Hacienda HealthCare pregnancy investigation]