Life Link III

What it reported doing in 2025

Patient receivables and credit policypatient accounts receivable are uncollateralized patient obligations that are stated at the amount management expects to collect from outstanding balances. These obligations are primarily from local residents, most of whom are insured under third-party payors on the patients' behalf. Or, if the patient is uninsured, the patient receives an automatic discount equal to the discount given the organizations largest third party payer, then that patient is billed directly. Once claims are settled with the primary payer, any secondary insurance is billed and patients are billed for copay and deductible amounts that are patients' responsibility. Payments on patient accounts receivable are applied to the specific claim identified on the remittance advice or statement. Life link iii does not have a policy to charge interest on past due accounts. Patient accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the collectability of patient accounts receivable, the organization analyzes its collection history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts. For receivables associated with services provided to patients who have third-party coverage, the organization analyzes contractually due amounts and provides an allowance for doubtful accounts, a provision for bad debts and community care. For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), the organization records a significant provision for bad debts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates (or discounted rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. In 2025 these bad debts totaled $9,600,328.patient accounts receivable are recorded in the accompanying balance sheet net of contractual adjustments and an allowance for doubtful accounts.it is unknown how much bad debt expense, if any, reasonably could be attributable to persons who likely would qualify for financial assistance under our community care program.

Financial Efficiency

• Mission deployment rate: 74.3%; rating input score 74
• Program expense ratio: 85.3%; rating input score 85
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 66th percentile among comparable filings
• Pay-setting controls: 6 of 6 controls in place; rating input score 100
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Pass
  • 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: 100%; rating input score 100; 65th 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: 12.9%; rating input score 76; 76th percentile among comparable filings
• Total-asset coverage ratio: 1.16; rating input score 32; 32nd percentile among comparable filings
• Liabilities to assets ratio: 0.18; rating input score 69; 69th percentile among comparable filings
• Officer compensation ratio: 4.4%; rating input score 25; 25th percentile among comparable filings

Growth

• Program expense growth: 10.6% per year; rating input score 100; 71st percentile among comparable filings
• Revenue growth: 7.5% per year; rating input score 100; 59th percentile among comparable filings
• Asset growth: 9.8% per year; rating input score 100; 67th percentile among comparable filings