Baylor Scott & White Isn't a Hospital System. It's a $15 Billion Marketing Company That Owns Hospitals.
While Baylor Scott & White cut jobs and exited Texas Medicaid, the system poured $100 million into a sports medicine facility at the Cowboys' world headquarters.
Nonprofit hospitals don’t compete with for-profits anymore.
They compete with NFL franchises.
Baylor Scott & White’s $100 million sports medicine facility sits inside the Dallas Cowboys’ world headquarters.
Four BSW hospitals run combined fair share deficits of $136 million per year.
The CEO collects $10 million.
The IRS still calls this a charity.
IN TODAY’S ARTICLE:
Baylor Scott & White operates the largest nonprofit health system in Texas.
Four BSW hospitals appear among the 10 largest fair-share deficits in Texas, totaling $136 million per year, according to the Lown Institute.
The CEO collects $10 million while the system fires workers and exits Medicaid.
The $100 million Cowboys facility is the most visible part of a much larger marketing strategy.
Glossary at the bottom of today’s article.
THE STAR
Drive thirty minutes north of downtown Dallas. You will arrive at The Star, a complex. It is the Dallas Cowboys’ world headquarters. It is also where the largest nonprofit health system in Texas spent $100 million.
The building is called Baylor Scott & White Sports Therapy and Research at The Star. 300,000 square feet of sports medicine and human performance research. Built in partnership with the most valuable sports franchise on the planet.
The Cowboys got a co-branded medical facility.
Baylor got the logo on the helmet adjacent.
That is not a charity care expenditure.
That is a marketing budget.
THE MONEY
Baylor Scott & White booked $15.5 billion in total operating revenue in fiscal year 2024. Operating income hit $1.2 billion. That is a 7.9% operating margin. It was up 25% over the previous year.
Net patient care revenue: $12 billion. Premium revenue from the system’s owned insurance plan: $2.5 billion.
These are corporate conglomerate numbers wearing a 501(c)(3) wrapper.
Peter McCanna, CEO, collected $8,039,844 in base compensation plus $1,976,887 in other compensation. Roughly $10 million in a single fiscal year, per the BSW Holdings Form 990 filed in May 2025 covering the fiscal year ending June 2024.
Julie Creamer, President, collected $4,073,098 in base compensation for the fiscal year ending December 2024.
Jim Hinton, the former CEO, collected $5,342,987 as a former officer in the FY2023 filing.
The estimated median annual compensation for a Baylor Scott & White employee is approximately $113,090, per Comparably’s employee-reported data. That puts the CEO-to-median-worker pay ratio at approximately 71 to 1.
The system describes itself as a “Christian ministry of healing.”
I’m sure Jesus approves.
The ministry pays better than most investment banks.
THE RECEIPTS
The Lown Institute’s 2025 report on Texas nonprofit hospital tax exemptions analyzed data from 2020 through 2022. The methodology is straightforward. Calculate the total value of every tax exemption a nonprofit hospital receives. Compare it to what the hospital actually spent on meaningful community investment. The gap is the fair share deficit.
Across Texas, nonprofit hospitals received an estimated $2.1 billion in annual tax benefits. Federal income tax exemptions made up $856 million of that, or 40 percent. Local property tax exemptions made up another $525 million, or 25 percent.
42 percent of private nonprofit hospitals in Texas ran a fair share deficit during the study period. They received more in tax benefits than they spent on community investments.
Multiple Baylor Scott & White hospitals appear among the ten largest fair share deficits in the state:
Baylor University Medical Center, Dallas: deficit of $65 million per year.
Baylor Scott & White The Heart Hospital, Plano: deficit of $32 million per year.
Baylor Scott & White Heart and Vascular Hospital, Dallas: deficit of $20 million per year.
Baylor Scott & White Medical Center, Grapevine: deficit of $19 million per year.
Four hospitals. $136 million in combined fair-share deficits per year.
The system tells regulators it provides $1.2 billion to $1.5 billion in “community benefit” annually. The Lown methodology applied an actual ledger to that claim at the hospital level and found four BSW facilities running among the largest community benefit shortfalls in Texas.
You can read the press release about the Cowboys’ partnership.
Or you can read what it costs you: Subscribe to The Rojas Report
