Independence Health System

Nonprofit profile at a glance

EIN
250965274
IRS 990 coverage
2009–2024
Official website data refreshed
Sep 2026
Forms available
Form 990 2024, Form 990-T 2024
Location
Butler, PA, United States
Phone
833-602-2273
Rating
82
Verdict
STRONG
Rating confidence
Moderate
Sector
Hospital, General

Official website

Reported finances

Revenue
$333,028,054
Expenses
$304,980,700
Assets
$408,629,116
Liabilities
$190,997,750

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

28 people listed

Executive titles in this filing

  • KENNETH P DEFURIO (PRESIDENT & CEO)
  • MATT SCHNUR (PRESIDENT, BUTLER MEMORIAL & CLARION HOSPITALS)
  • KAREN ALLEN (PRESIDENT, BUTLER MEMORIAL & CLARION HOSPITALS)
  • DAVID ROTTINGHAUS (PHYSICIAN & PROVIDER NETWORK PRESIDENT)

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

Independence Health System provides a trusted delivery of care and makes a positive impact on the lives of every individual it touches. Independence Health System continues to change the landscape of healthcare in western Pennsylvania by meeting patient needs through superb physician expertise, outstanding nursing and support staff, the latest in technology and programmatic depth. Mission Independence Health System exists to provide a trusted delivery of care which makes a positive impact on the lives of every individual we touch. Locally owned and locally controlled, Independence Health System offers its patients low-cost, high-quality care across a broad spectrum of services in such specialties as cardiology, cardiovascular and thoracic surgery, orthopedics and sports medicine, minimally invasive and robotic surgery, women’s health and obstetrics, emergency medicine, behavioral...

What it reported doing in 2024

Butler healthcare providers d/b/a butler memorial hospital (bmh) is an independent, community-based hospital that has served butler county, pa, and the surrounding area for over 100 years. Bmh employs approximately 1,600 people. Bmh has grown into a regional referral center. It is the largest hospital facility between pittsburgh and erie. It is comprised of 296 acute care beds. Bmh serves approximately 10,200 acute care patients (admissions) and nearly 430,000 outpatient registrations each year. Bmh maintains a deep commitment to its community, as is demonstrated through its broad services offering, including all levels of general medical and surgical care, emergency services, obstetrics and gynecology services, a robust behavioral health service, drug and alcohol treatment, family services, preventative & wellness programs and tertiary cardiovascular care. It also has a network of approximately 60 convenient, low cost outpatient sites that are located in communities through butler county and the surrounding area. A description of the top three service lines follow.butler memorial hospital (bmh) medical imaging services provides the communities we serve with easy access to the latest medical imaging technologies. Butler memorial hospital imaging services include computerized tomography (ct), medical resonance imaging (mri), pet/ct, and digital mammography. Additional imaging service include ultrasound (sonography), nuclear medicine, bone density testing, x-rays and fluoroscopic studies. Bmh's imaging studies are interpreted by on-site board-certified radiologists trained in the following subspecialties: interventional radiology, women's imaging, musculoskeletal imaging, body imaging, neuroradiology and advanced vein care. Bmh provided medical imaging services to approximately 100,000 patients.cardiology services at butler memorial hospital provides routine cardiac care, interventional cardiology, electrophysiology, open heart surgery and cardiac rehabilitation. Other service areas include a device management clinic, valve clinic, heart failure clinic and chest pain center with pci accreditation.butler memorial hospital laboratory has state-of-the art instrumentation complemented by professional expertise in microbiology, pathology, chemistry, hematology and cytology. Our laboratory provides blood work and testing throughout our service area, for patients, physician offices and long-term care facilities and is accredited by the college of american pathologists (cap) and licensed by the clinical laboratory improvement act (clia). Laboratory services vary by location and cover all of the following areas: surgical pathology, molecular diagnostics, dermatopathology, cytopathology, hematopathology and transfusion medicine. Butler memorial hospital provide laboratory service to over 200,000 patients.

Operating model

Revenue model
Earned-program. 94% 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

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Total assets are small relative to annual expenses; liquid coverage is unknown and liabilities are high compared with assets.

Rating breakdown

  • Financial Efficiency: 75
  • Transparency & Controls: 90
  • Accountability: 88
  • Sustainability: 55
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 80.9%; rating input score 81
  • Program expense ratio: 89.6%; rating input score 90
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 12th percentile among comparable filings
  • Pay-setting controls: 5 of 6 controls in place; rating input score 83
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 80%; rating input score 80; 28th 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: 8.4%; rating input score 68; 68th percentile among comparable filings
  • Total-asset coverage ratio: 1.34; rating input score 49; 49th percentile among comparable filings
  • Liabilities to assets ratio: 0.47; rating input score 39; 39th percentile among comparable filings
  • Officer compensation ratio: 3%; rating input score 38; 38th percentile among comparable filings

Growth

  • Program expense growth: 5.1% per year; rating input score 100; 41st percentile among comparable filings
  • Revenue growth: 3.2% per year; rating input score 100; 24th percentile among comparable filings
  • Asset growth: 2.2% per year; rating input score 100; 16th percentile among comparable filings

Details

  • What they do: 11 programs and campaigns described on the official site · 1 operating location identified
  • Where the money goes: 80.9% of revenue deployed · 89.6% of spending went to programs
  • Governance: 8 of 10 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $273.4M in reported program spending
  • Leadership: top reported pay $3.6M · 28 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $7M reported
  • Consistency: 32 of 32 current checks pass
  • Schedules: 10 filed schedules · includes major donors and executive pay
  • Filing history: 16 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 15 filed money-flow records
  • Related organizations: 33 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.

  • Moderate — Sustainability: Total-asset coverage ratio scored 49/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 39/100.
  • Moderate — Sustainability: Officer compensation ratio scored 38/100.