Baystate Mary Lane Hospital Corporation

Nonprofit profile at a glance

EIN
042103584
IRS 990 coverage
2009–2015
Forms available
Form 990 2015
Location
Ware, MA, USA
Phone
4137940000
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Hospital, General

Official website

Reported finances

Revenue
$21,816,510
Expenses
$23,335,058
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2015. Amounts in USD.

Leadership & pay

35 people listed

Executive titles in this filing

  • Charles CAVAGNARO III MD (President (Through 1/29/16))
  • Michael F Moran (President (As of 1/29/16))

Highest reported compensation

  • Mark A Keroack MD (Trustee): $1,472,006 total reported compensation
  • Dennis Chalke (Treasurer): $1,174,929 total reported compensation
  • Charles CAVAGNARO III MD (President (Through 1/29/16)): $771,992 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2015. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The mission of the organization is to improve the health of the people in our communities every day, with quality and compassion.

What it reported doing in 2015

Inpatient healthcare services - Providing inpatient community-based medicine and tertiary care to the surrounding region. Services are available to individuals regardless of their ability to pay. During FY16 through August 31, 2016, Baystate Mary Lane Hospital Corporation provided 1,865 patient days of inpatient services, with 728 discharges.

Operating model

Revenue model
Earned-program. 96% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 85
  • Transparency & Controls: 71
  • Accountability: 72
  • Sustainability: 6
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 97.9%; rating input score 98
  • Program expense ratio: 91.4%; rating input score 91
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 2 of 6 controls in place; rating input score 33
    • Compensation committee: Missing
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 68.2%; rating input score 68; 13th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -7%; rating input score 11; 11th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 12.4%; rating input score 8; 8th percentile among comparable filings

Growth

  • Program expense growth: -7.8% per year; rating input score 0; 7th percentile among comparable filings
  • Revenue growth: -3.7% per year; rating input score 0; 8th percentile among comparable filings
  • Asset growth: -12.2% per year; rating input score 0; 3rd percentile among comparable filings

Details

  • Where the money goes: 97.9% of revenue deployed · 91.4% of spending went to programs
  • Governance: 15 of 22 board members independent · 7 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $21.3M in reported program spending
  • Leadership: top reported pay $1.5M · 35 people listed · 2 of 6 pay-setting controls reported
  • Highest-paid contractors: 4 contractors listed · $8M reported
  • Consistency: 27 of 27 current checks pass
  • Schedules: 8 filed schedules · includes executive pay
  • Filing history: 7 filing years from 2009 to 2015
  • Contacts: How to reach this organization
  • Money network: 9 filed money-flow records
  • Related organizations: 21 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Sustainability: Operating margin scored 11/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 8/100.