Independence Health System

What it reported doing in 2024

About excela health making a positive impact on the lives of every individual we touch.excela health, the leading health care provider and the largest employer in westmoreland county, brought together three hospitals in 2004 westmoreland hospital in greensburg, frick hospital in mount pleasant and latrobe hospital in latrobe with the goal of serving as a regional health care system that embodies high quality, accessibility and advanced technology locally. More to the point, excela health seeks to live its mission of "improving the health and well-being of every life we touch" couched in values known as the excela way. Evidence of those ideals can be found in the events of fiscal year 2025, with the addition of new concepts, services and technologies while, at the same time, garnering recognition for its efforts from national, regional and local organizations. In all cases, the resulting programs, services and awards benefitted the area's citizenry and demonstrated a focus on quality measures, further enhancing the way excela health provides care. Perhaps more important is the continuing addition of highly trained physicians, nurses and health care professionals. Together, management, the board of trustees and medical staff collaborate diligently, and thoughtfully, to provide outstanding care to this region. As a Pennsylvania nonprofit corporation described under section 501(c)(3) of the internal revenue code of 1986, excela health was originally incorporated as such effective july 1, 1984, previously known as southwest health system, then westmoreland health system, followed by westmoreland latrobe health partners and, finally, excela health. In addition to its hospitals, excela health encompasses other health-related subsidiaries and continues to expand as the needs of the community demand. On january 1, 2023, excela health entered into an affiliation with butler health system, inc. (bhs) to create a new parent corporation named independence health system (ihs), which has governance authority over both organizations.

Financial Efficiency

• Mission deployment rate: 78.3%; rating input score 78
• Program expense ratio: 93.9%; rating input score 94
• 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: 80%; rating input score 80; 28th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • 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: 15.6%; rating input score 83; 83rd percentile among comparable filings
• Total-asset coverage ratio: 1.13; rating input score 44; 44th percentile among comparable filings
• Liabilities to assets ratio: 0.34; rating input score 52; 52nd percentile among comparable filings
• Officer compensation ratio: 0.7%; rating input score 80; 80th percentile among comparable filings

Growth

• Program expense growth: 3% per year; rating input score 100; 22nd percentile among comparable filings
• Revenue growth: 2.6% per year; rating input score 100; 19th percentile among comparable filings
• Asset growth: 2.1% per year; rating input score 100; 15th percentile among comparable filings