Christus Health Liability Retention Trust

Nonprofit profile at a glance

EIN
760259623
IRS 990 coverage
2009–2016
Forms available
Form 990 2016
Location
Irving, TX, USA
Phone
4692822000
Rating
37
Verdict
REVIEW
Rating confidence
Moderate
Sector
Insurance Providers

Reported finances

Revenue
$1,685,069
Expenses
$21,582
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

2 people listed

Highest reported compensation

  • ERNIE SADAU (PLAN ADMINISTRATOR): $5,227,552 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Christus health liability retention trust operates exclusively for the benefit of, and to carry out the purposes of, christus health and the named covered parties, which are hospitals, health care facilities, nursing homes, educational organizations, clinics and other nonprofit charitable, religious, and educational organizations sponsored by or affiliated with the roman catholic church by or through christus health and its sponsors, canonical institutes of the roman catholic church, and their incorporated entities known as the congregation of sisters of charity of the incarnate word, houston, Texas and the congregation of sisters of charity of the incarnate word (of san antonio). The christus health liability retention trust receives periodic contributions from christus health liability retention plan, which is the program of liability retention funding undertaken by christus health to protect assets and operations from risks and related expenses.

What it reported doing in 2016

Christus health liability retention trust is a nonprofit trust whose exempt purpose is to support the healthcare ministry of christus health and its affiliated organizations. The trust provides liability insurance for the participating health care centers through deductible, nondeductible, and risk retention programs and maintains fund balances for claims under the deductible and risk retention programs. Christus health was formed in 1999 to strengthen the 152-year-old, faith-based health care ministries of the congregations of the sisters of charity of the incarnate word of houston and san antonio. Founded on the mission "to extend the healing ministry of jesus christ," christus is challenged to reach out to, and beyond, more than 60 communities we serve to help those in need. The vision of christus health, as a catholic, faith-based ministry, is to be a leader and advocate in creating exemplary health care services, processes and structures that improve the health of individuals and of local and global communities so that all may experience god's healing presence and love. Christus health responds to the health care needs of the communities it serves through services provided at more than 60 hospitals and long-term care facilities, as well as dozens of health care clinics, physician offices, outpatient services, and community-based programs in Texas, Louisiana, Arkansas, Iowa, Missouri, Georgia, New Mexico and mexico. While specific programs and services differ from facility to facility, to meet community needs, each of our health care entities has the same objective -- which is to lead the way to a healthier community.

Operating model

Revenue model
Investment-supported. 92% of the money available for current operations came from recurring investment income.
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

REVIEW - The strongest available result is that a large share of total spending goes to programs. A relatively small share of available resources goes toward mission work and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 40
  • Transparency & Controls: 53
  • Accountability: 16
  • Sustainability: 47
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 12%; rating input score 12
  • Program expense ratio: 100%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 88.9%; rating input score 89; 3rd 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: No; rating input score 0

Accountability

  • Independent voting board: Limited
  • Governance controls: 3 of 8 controls in place; rating input score 38
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Fail
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 98.7%; rating input score 100; 100th 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: 4,504.1%; rating input score 0; 0th percentile among comparable filings

Growth

  • Program expense growth: -63% per year; rating input score 0; 1st percentile among comparable filings
  • Revenue growth: -12.5% per year; rating input score 0; 5th percentile among comparable filings
  • Asset growth: -13.2% per year; rating input score 0; 6th percentile among comparable filings

Details

  • Where the money goes: 12% of revenue deployed · 100% of spending went to programs
  • Governance: 3 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $22K in reported program spending
  • Leadership: top reported pay $5.2M · 2 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 11 of 12 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes executive pay and related organizations
  • Filing history: 6 filing years from 2009 to 2016
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 22 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 — Financial Efficiency: Mission deployment rate scored 12/100.
  • Moderate — Accountability: Governance controls: 5 of 8 not reported.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 0/100.