Baptist Health System Inc

What it reported doing in 2025

Hospital joint venture baptist health system, inc. (bhs) continues in its charitable mission, which began in 1922, of providing medical and educational services to the community through its 20% joint venture interest in baptist health. Bhs partners in this joint venture with orlando health, a 501 (c) (3) non-profit hospital system in Florida which owns the remaining 80%. Orlando health manages the joint venture and the terms of the management agreement require that the joint venture be managed pursuant to the requirements of code section 501 (c) (3) and the charitable principles, which are set forth in the llc agreement. In the event management fails to comply with these requirements, the management agreement and llc agreement provide certain termination rights. In addition, the parties have an equal number of directors appointed for the joint venture. Bhs retains certain additional powers (described above from the management agreement and llc agreement) to ensure the joint venture will continue to further bhs's charitable purposes. The management board of the llc includes a block voting mechanism for each member's appointed directors.baptist health operates five hospitals and other patient care facilities. Two of the hospitals are located within the city limits of birmingham, al, which enables baptist health to provide services to areas of the city which might otherwise be underserved. The other three hospitals are located in talladega, jasper, and alabaster, al. Several of these hospitals serve rural communities which, prior to bhs's (and subsequently baptist health's) involvement, were in need of stable health care facilities. These rural hospitals provide much needed services (such as obstetrics), to areas of Alabama that would otherwise be underserved. Baptist health experiences losses from some of these hospitals, which further demonstrates its commitment to serving these communities.each hospital participates in the medicaid programs and experience large contractual adjustments due to the limited reimbursement provided by such program. Additionally, each hospital participates in various other federal, state and local medical programs. This participation improves access to patient care for the communities served by baptist health.baptist health is actively involved in medical education and clinical pastoral care education. Baptist health currently has over 100 residency positions in transitional year, internal medicine, pathology, radiology and general surgery programs. Baptist health's medical education program also provides continuing education to licensed physicians. The clinical pastoral care education program provided training for 6 residents as well as numerous part-time students. This training equips students to provide a better level of spiritual care to patients. In addition, baptist health, in conjunction with several colleges and universities of nursing, provides training for nurses that are hired throughout the southeastern united states.finally, baptist health continually provides many services in health promotion and screening to the public free of charge or at a nominal cost. Such services are provided through schools, employers, and facilities that are easily accessible by the general public. Employees are encouraged to devote services to other charitable organizations in the community, as well as to provide financial support. Employees and other community members have also provided significant support of baptist health's charitable activities evidencing the communities' willingness to acknowledge and support the mission of baptist health.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: 87%; rating input score 87
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 92.9%; rating input score 93; 25th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: 97.9%; rating input score 98; 60th percentile among comparable filings
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
• Governance controls: 7 of 7 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -134.9%; rating input score 14; 14th percentile among comparable filings
• Total-asset coverage ratio: 29.72; rating input score 87; 87th percentile among comparable filings
• Liabilities to assets ratio: 0.17; rating input score 12; 12th percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 58; 58th percentile among comparable filings

Growth

• Program expense growth: -29.2% per year; rating input score 0; 12th percentile among comparable filings
• Revenue growth: -19.2% per year; rating input score 0; 20th percentile among comparable filings
• Asset growth: -8.7% per year; rating input score 0; 15th percentile among comparable filings