Cedars-Sinai

What it reported doing in 2024

Cedars-sinai medical care foundation (foundation), a nonprofit public benefit corporation, was formed by cedars-sinai medical center (medical center), an irc section 501(c)(3) corporation, as a medical practice foundation described in section 1206(l) of the California health and safety code for the purpose of establishing and operating outpatient medical care clinics as part of an integrated health care delivery system in los angeles county, California. (see schedule o for continuation)the medical center is the sole member of the foundation. In addition, the medical center is licensed as a general acute care hospital under applicable California laws and owns and operates health care facilities principally located in los angeles, California.the foundation enhances the ability of the medical center to effectively and efficiently deliver health care services to the residents of los angeles county, California, and further its charitable health care purposes in the following ways:1. Responds to the need for outpatient services: the delivery of health care services is rapidly converting from an inpatient to an outpatient setting, resulting in the need for a vehicle to deliver outpatient as well as inpatient services through an integrated health care delivery system. The foundation serves as the vehicle. Coordination of the medical center's acute care hospital operations and the foundation's outpatient clinic operations help avoid unnecessary duplication, potential excess capacity, and related inefficiencies, and thereby reduces the overall cost of delivering health care to the residents of los angeles county.2. Provides outpatient clinics and services: the foundation operates primary care and multi-specialty outpatient medical clinics to better serve the community. The medical center maintains sufficient control so as to ensure that those clinics operate on a nonprofit basis in furtherance of the overall charitable purpose.3. Assumes risk through capitated model: health care payers continue to shift more risks of managing the costs and effectiveness of health care services to healthcare providers (e.g. The foundation). In doing so, the payers have created mechanisms and incentives to provide quality care at the lowest reasonable cost. The foundation allows the medical center and the physicians with whom the foundation contracts for medical services to more effectively coordinate inpatient, outpatient and ancillary services, and achieve efficiencies of scale. The foundation's medical services are delivered at the foundation's outpatient clinics or at the medical center. The foundation maintains urgent care hours on weekdays and weekends designed to handle non-life-threatening medical emergencies. The foundation physicians are on call 24 hours a day. To further improve access to care, the foundation offers cs connect, a virtual medical service and mobile application that allows users in California to get care from cedars-sinai providers 24/7. The foundation also participates in other value-based payer arrangements to improve patient outcomes and lower the societal cost of health care. The foundation provides behavioral health services via a collaborative care program in primary care, filling a critical void in the mental health care system in los angeles. The foundation also participates in cms innovation programs designed to improve quality and lower the cost of care for medicare beneficiaries. These "accountable care organizations" enable the foundation to provide coordinated services to an even longer segment of the community.4. Together with the medical center, provides community and physician health education, and performs clinical research activities: the medical center and the foundation together provide a significant amount of community medical education available to the community and perform clinical research. The number and types of such programs offered to the general public is substantial.community education: the following

Financial Efficiency

• Mission deployment rate: 91.4%; rating input score 91
• Program expense ratio: 79.2%; rating input score 79
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th 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: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 50%; rating input score 50; 13th percentile among comparable filings
• Governance controls: 6 of 9 controls in place; rating input score 67
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Fail
  • 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: -16.2%; rating input score 5; 5th percentile among comparable filings
• Total-asset coverage ratio: 0.49; rating input score 18; 18th percentile among comparable filings
• Liabilities to assets ratio: 0.47; rating input score 38; 38th percentile among comparable filings
• Officer compensation ratio: 0.4%; rating input score 87; 87th percentile among comparable filings

Growth

• Program expense growth: 11.2% per year; rating input score 100; 78th percentile among comparable filings
• Revenue growth: 12.1% per year; rating input score 100; 83rd percentile among comparable filings
• Asset growth: 17.4% per year; rating input score 100; 90th percentile among comparable filings