University of Michigan Health-Sparrow

What it reported doing in 2024

University of Michigan health-sparrow is a fully integrated healthcare system headquartered in lansing, mich. Serving a core eight-county region in mid-Michigan. Um health-sparrow includes six hospitals encompassing over 770 licensed hospital beds, more than 130 ambulatory/outpatient locations, hundreds of employed physicians and a post-acute care network consisting of outreach laboratory, homecare, hospice, pharmacy and dme services. Um health-sparrow also owns and operates the Michigan athletic club, the largest hospital-owned fitness club in the united states. Um health-sparrow is a Michigan nonstock, nonprofit tax-exempt corporation, and is the parent corporation of the following tax-exempt, 501c3 entities: university of Michigan health-sparrow lansing hospital, university of Michigan health-sparrow carson hospital, university of Michigan health- sparrow clinton hospital, university of Michigan health-sparrow eaton hospital, university of Michigan health-sparrow ionia hospital, university of Michigan health-sparrow specialty hospital, university of Michigan health-sparrow community care, and university of Michigan health-sparrow foundation. The university of Michigan health-sparrow foundation serves as the fundraising arm of the university of Michigan health-sparrow. Each of these entities file their own 990 return. Lastly, university of Michigan health-sparrow is the parent corporation of sparrow development, inc. (sdi), a Michigan stock, for-profit corporation. Sdi includes, as mentioned above, the Michigan athletic club (mac), as well as the mac restaurant, and st. Lawrence or management company, llc.

Financial Efficiency

• Mission deployment rate: 12%; rating input score 12
• Program expense ratio: 11.8%; rating input score 12
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 6 of 6 controls in place; rating input score 100
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: Scored; rating input score 0
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 80%; rating input score 80; 26th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 0.6%; rating input score 34; 34th percentile among comparable filings
• Total-asset coverage ratio: 8.32; rating input score 89; 89th percentile among comparable filings
• Liabilities to assets ratio: 0.08; rating input score 85; 85th percentile among comparable filings
• Officer compensation ratio: 7%; rating input score 7; 7th percentile among comparable filings

Growth

• Program expense growth: 19.5% per year; rating input score 100; 92nd percentile among comparable filings
• Revenue growth: 21.9% per year; rating input score 100; 95th percentile among comparable filings
• Asset growth: 6.4% per year; rating input score 100; 48th percentile among comparable filings