Cleveland Area Hospital Holdings Inc

Nonprofit profile at a glance

EIN
263778478
IRS 990 coverage
2012–2020
Forms available
Form 990 2020
Location
Cleveland, OK, USA
Phone
9183589980
Rating
70
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Hospitals and Related Primary Medical Care Facilities

Official website

Reported finances

Revenue
$20,101,760
Expenses
$19,803,506
Assets
$13,002,465
Liabilities
$14,214,212

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

17 people listed

Executive titles in this filing

  • Edred C Benton (CEO)
  • Larry Ferguson (President)
  • Fred Taylor (Vice President)

Highest reported compensation

  • Martin Cooper MD (ER Director/Family Medicin): $383,050 total reported compensation
  • Billy Schumpert DO (Medical Dir/Family Practic): $331,132 total reported compensation
  • Stephanie Letney DO (Family Medicine): $264,016 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Cleveland Area Hospital delivers exceptional quality healthcare with a caring community spirit.

What it reported doing in 2020

Cleveland Area Hospital is a 14-bed critical access hospital located in Cleveland, Oklahoma. The hospital provides emergency, laboratory, radiology, inpatient care, outpatient infusion, and nurse care services as well as a fully equipped rehabilitation center and primary care clinic. We are a Regional Healthcare provider, with a reputation for providing exceptional quality care beyond county lines. The vision for expanded healthcare in the community has spread contagiously throughout the organization, transforming the team into ambassadors of the shared ideals, hopes, and dreams for our rural hospital. (Continued on Schedule O)Our vision is rooted in leading examples of outstanding rural hospitals, and we will honor the hospital founders and long-time supporters by growing responsibly and sustainably.Preserving organizational culture and stability is paramount to achieving the vision of becoming a regional healthcare provider. Loyal and committed employees have higher levels of performance and investment in the success of the organization. The hospital leadership cultivates shared-decision making, resulting in a climate of trust and transparency. We promote accountability and empowerment, with patient care as our number one priority.The Hospital provides health care services to patients who meet certain criteria under its charity care policy without charge or at amounts less that established rates. Since the Authority does not pursue collection of these amounts, they are not reported as patient service revenue. The estimated cost of providing these services was $17,000 for the year ended December 31, 2020, calculated by multiplying the ratio of cost to gross charges for the Authority by the gross uncompensated charges associated with providing charity care to its patients.Net patient service revenue decreased 3% in 2020 due to the impacts of the COVID-19 pandemic which caused lower patient volumes. In 2020, the average monthly patient volume for the Clinic in April and May decreased 29% to 726 visits, from the trailing twelve-month average of 1,018 visits. The average daily census for Inpatient and Swingbed patients in April and May decreased 20% to 6.1 patients, from the trailing twelve-month average of 7.6 patients

Operating model

Revenue model
Other-operating. 90% 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 - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 65
  • Transparency & Controls: 66
  • Accountability: 91
  • Sustainability: 24
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 72.9%; rating input score 73
  • Program expense ratio: 74%; rating input score 74
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 67th 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: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 1.5%; rating input score 28; 28th percentile among comparable filings
  • Total-asset coverage ratio: 0.66; rating input score 24; 24th percentile among comparable filings
  • Liabilities to assets ratio: 1.09; rating input score 5; 5th percentile among comparable filings
  • Officer compensation ratio: 8.3%; rating input score 25; 25th percentile among comparable filings

Growth

  • Program expense growth: 9% per year; rating input score 100; 72nd percentile among comparable filings
  • Revenue growth: 8.2% per year; rating input score 100; 70th percentile among comparable filings
  • Asset growth: 23.1% per year; rating input score 100; 92nd percentile among comparable filings

Details

  • Where the money goes: 72.9% of revenue deployed · 74% of spending went to programs
  • Governance: 8 of 8 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $14.7M in reported program spending
  • Leadership: top reported pay $383K · 17 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $100K reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 6 filed schedules · includes executive pay
  • Filing history: 9 filing years from 2012 to 2020
  • Contacts: How to reach this organization
  • Money network: 8 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

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.

  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Operating margin scored 28/100.
  • High — Sustainability: Total-asset coverage ratio scored 24/100.
  • High — Sustainability: Liabilities to assets ratio scored 5/100.
  • High — Sustainability: Officer compensation ratio scored 25/100.
  • High — Grant Readiness: Federal audit findings: this organization reported findings in its latest federal Single Audit.