Carilion under fire by national newspaper

By Mollie Halpern
Investigative Reporter
Published: August 28, 2008

The place where many people turn for health care is getting both local and national attention - arguably negative attention.
An article in today’s Roanoke Times exposes the multi-million dollar salary of Carilion’s C-E-O.
Meanwhile, a story in the Wall Street Journal says the non-profit is quote - a monopoly… one, the paper claims, is costing Carilion’s patients more than what should be paid.
We stopped by and called a half-dozen convenient, grocery and book stores in the city this morning.
Each store was sold out of the Wall Street Journal.
Employees at all of the stores say not only did they sell out of the papers faster than usual—they also received phone calls from people asking for them.
The stores employees say on a normal day—the Wall Street Journal is not that high in demand. 
Ten on your side investigative reporter Mollie Halpern spoke with Carilion’s Chief Financial Officer to get his reaction to the newspaper articles.
This article in the Wall Street Journal says Carilion has created a monopoly on health care in the Roanoke Valley.
The result: health insurance rates in Roanoke have gone from being the lowest to the highest in the commonwealth. 
Carilion’s chief financial officer Don Lorton says Carilion is not the public’s only health care choice—and that Carilion’s pricing isn’t driven by competition.
Lorton says, “Our mission at Carilion to meet the medical needs of this community.“
The WSJ article says while everyday people are struggling to pay their health care costs that Carilion’s C.E.O Dr. Ed Murphy, is raking in the big bucks.
The Times reports that Murphy earned 2.27 million dollars last year.
Mollie asked Lorton if he thought Murphy’s compensation was justifiable.
Lorton answers, “Yea, I do absolutely, we wouldn’t be paying it to him otherwise.“
And what about the Journals claim that Carilion’s board members are benefitting from the hospital’s construction of a multispecialty clinic system?
Lorton says,“That was certainly what the Journal reporter wanted to make people to believe, there’s no fact to that,in fact.
Lorton also denies the Journal’s report regarding referrals saying contrary to what was printed—the hospital does not direct its employees to refer patients to only Carilion doctors.
Lorton says the real problem with health care isn’t Carilion’s—it’s the fact that this country’s health care system fundamentally doesn’t work.
But, he says, Carilion’s transition to the clinic system will lower health-care costs in the long-run.
He says that system brings together physicians with the same patient interests and financial objectives.
“I’m a free-enterprise fanatic but I am convinced after spending 40 years in this busineess the free enterprise is not going to work with health care, it’s just not going to work.“
If you like to know what what Carilion charges for some its common services campared to other hospitals —Carilion’s spokesperson, Eric Earnhar says there’s an independent organization that does it for you.
He says it shows that Carilion’s prices are lower than competitors.
The organization is called Virginia Price Point.
Log onto http://www.vapricepoint.org