Butler Health System
Nonprofit profile at a glance
- EIN
- 251441855
- IRS 990 coverage
- 2009–2024
- Forms available
- Form 990 2024, Form 990-T 2024
- Location
- Butler, PA, USA
- Phone
- 7242836666
- Rating
- 60
- Verdict
- SUPPORTED
- Rating confidence
- Moderate
Reported finances
- Revenue
- $1,651,300
- Expenses
- $187,188
- Assets
- $21,289,122
- Liabilities
- $14,727
Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.
Leadership & pay
19 people listed
Executive titles in this filing
- KENNETH P DEFURIO (PRESIDENT & CEO)
- DAVID ROTTINGHAUS (PHYSICIAN & PROVIDER NETWORK PRESIDENT)
- KAREN ALLEN (PRESIDENT, BUTLER MEMORIAL & CLARION HOSPITALS)
Highest reported compensation
- KENNETH P DEFURIO (PRESIDENT & CEO): $3,637,924 total reported compensation
- JAMES ADISEY MD (TRUSTEE/PHYSICIAN): $797,652 total reported compensation
- DAVID ROTTINGHAUS (PHYSICIAN & PROVIDER NETWORK PRESIDENT): $738,371 total reported compensation
Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.
Overview
Mission
Butler health system, an affiliate of independence health system, exists to provide a trusted delivery of care which makes a positive impact on the lives of every individual we touch.
What it reported doing in 2024
Butler health system is the sole corporate member to the hospital (butler healthcare providers), the physicians' practice group (butler medical providers), the real estate company (nixsar corporation), the foundation (butler health system foundation), and clarion healthcare system, inc. Butler health system directly holds the building assets for the primary care associates physician practice and a 51% interest in the butler ambulatory surgery center.
Operating model
- Revenue model
- Other-operating. 79% of the money available for current operations came from other operating 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 - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.
Rating breakdown
- Financial Efficiency: 39
- Transparency & Controls: 64
- Accountability: 79
- Sustainability: 85
- Growth: 100
Detailed rating inputs
Financial Efficiency
- Mission deployment rate: 11%; rating input score 11
- Program expense ratio: 100%; rating input score 100
- Fundraising efficiency: Limited
Transparency & Controls
- Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
- Pay-setting controls: 0 of 6 controls in place; rating input score 0
- Compensation committee: Missing
- Independent consultant: Missing
- Other Form 990s reviewed: Missing
- Written employment contract: Missing
- Compensation survey or study: Missing
- 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: 80%; rating input score 80; 18th 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: 88.7%; rating input score 99; 99th percentile among comparable filings
- Total-asset coverage ratio: 113.73; rating input score 99; 99th percentile among comparable filings
- Liabilities to assets ratio: 0; rating input score 80; 80th percentile among comparable filings
- Officer compensation ratio: 119.1%; rating input score 0; 0th percentile among comparable filings
Growth
- Program expense growth: 4.1% per year; rating input score 100; 37th percentile among comparable filings
- Revenue growth: 13.4% per year; rating input score 100; 75th percentile among comparable filings
- Asset growth: 17.1% per year; rating input score 100; 77th percentile among comparable filings
Details
- Where the money goes: 11% of revenue deployed · 100% of spending went to programs
- Governance: 8 of 10 board members independent · 7 of 9 filing controls reported
- Programs: 1 filed program accomplishment · $187K in reported program spending
- Leadership: top reported pay $3.6M · 19 people listed · 0 of 6 pay-setting controls reported
- Consistency: 17 of 17 current checks pass
- Schedules: 5 filed schedules · includes executive pay
- Filing history: 16 filing years from 2009 to 2024
- Contacts: How to reach this organization
- Related organizations: 28 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.
Grant-readiness screening is separate from the live rating, not a measure of program quality. Review the source records before making a grant decision.
- High — Financial Efficiency: Mission deployment rate scored 11/100.
- High — Transparency & Controls: Pay-setting controls scored 0/100.
- Review — Accountability: Governance controls: 2 of 9 not reported.
- High — Sustainability: Officer compensation ratio scored 0/100.
- High — Grant Readiness: Federal audit findings: this organization reported findings in its latest federal Single Audit.