If you compromise now, you'll never get religious organizations to join us in the 21st Century. I think that the President needs to be clear and firm on this--if you want to do business, your religious beliefs should not take precedent over the need to cover the contraceptive needs of employees.
The religious freedom of employees to not use contraceptives is not in question here. If you're a Catholic, and if you work for a Catholic hospital, you already have the choice as to whether or not to use contraceptive drugs. If you're not a Catholic, and if you happen to work for a Catholic hospital, the law should say that contraceptive drugs are covered. It's really that simple. And if we follow that plan, then the religious beliefs of said organizations need not be compromised in any way.
There is a very good reason for this. We already hold these organizations to the American standard of law and the various codes and regulations that come with functioning within our society. This is why a Catholic hospital cannot simply allow a bishop to walk around dispensing prescription drugs or allow nuns with no medical training to perform open heart surgery. If you want Federal funds to be a hospital, you have to adhere to American laws and practices and standards. And the law says that employers will cover contraceptive care.