In an act of incredible altruism, an American self-made millionaire rewarded all employees of his healthcare company with cash gifts amounting to $20 million (CNY138 million).
The philanthropist is J. Mark Baiada, founder and chairman Bayada Home Health Care. This company based in Philadelphia, Pennsylvania is the 10th largest home health agency in the United States. Baiada founded the company in 1975 with an investment of $16,000. He was 27 years old at the time.
Bayada Health Care now has annual revenues in excess of $1.5 billion.
Baiada's company handed out cheques in various amounts to employees ahead of the American holiday of Thanksgiving held yesterday (Thursday).
Baiada announced the stunning news to a room full of stunned but delighted employees at a company lunch Tuesday.
"I'm taking $20 million, dividing it up and giving it to everybody," said Baiada to his employees. He said he wanted to show his deep appreciation and gratitude for his employees' hard work over the years.
The value of each cash gift was based on an employee's lifetime earnings. One veteran nurse received $6,500. Former long-term staff who retired after 2009 also received cheques.
For me, it's the relationships, said Baiada. Working with all these people for such a long time, I really have heartfelt thanks and I want to express it. "I just want to say thank you to them all."
He said Thanksgiving is a season of gratitude. You look around your life and say, 'I'm so fortunate.'"
Bayada Home Health Care employs 23,000 people (including some 7,800 in the Philadelphia area) who work at 310 offices in 22 states. Its services include home nursing, rehabilitation, therapy, and hospice care.
The move to reward employees for their work is part of Baiada's plan to transform his company into a non-profit organization. Baiada called the move to transform a for-profit firm into a non-profit "unprecedented" in the healthcare industry.
The government requires that such organizations be operated exclusively for charitable, religious, educational, scientific, literary and other purposes to qualify for tax exemption. Such charitable organizations cannot use any earnings to inure to any private shareholder or individual.
This transition was a key factor in his decision to give the money away now, according to sources. Baiada began seriously mulling this move in 2016. Baiada could have sold his firm for at least $1 billion, but instead, decided to donate it to a charitable foundation, and reward his employees.
The process of turning Bayada over to a public charitable foundation could take several years. The plan is for the charitable foundation to own 80 percent of the company. The rest will be owned by the family and other employees, said Baiada.
