Franciscan Health

What it reported doing in 2024

Franciscan aco, inc. ("aco", "franciscan") was formed in 2011, and was the first and only pioneer aco in Indiana and among the first in the country to partner with medicare as an aco. Franciscan aco participates in the medicare shared savings aco program and nongovernmental value based programs to meet the needs of patients. The aco supports patients and providers in both Indiana and Illinois through the collaborative efforts of the following partners: (a) 12 tax-exempt hospitals operated, directly and indirectly, by franciscan alliance, inc.; (b) franciscan physician network, a franciscan alliance, inc. Employed multi-specialty group of primary and specialty-care providers throughout the state of Indiana and Illinois; (c) specialty physicians of Illinois, llc, an employed multi-specialty group of specialty-care providers in Illinois, serving franciscan health chicago heights and franciscan health olympia fields; (d) Indiana internal medicine consultants which includes st. Francis medical group, llc, provides healthcare services to complex internal medicine patients across indianapolis in both inpatient and outpatient settings; and (e) other healthcare partners include major multispecialty associates and major hospital. Currently franciscan aco participates in the medicare shared savings program (mssp); anthem medicare advantage; humana medicare advantage; united healthcare medicare advantage; and aetna medicare advantage. As a participant in cms (centers for medicare & medicaid services) mssp program for 2024, franciscan aco was responsible for the cost and quality of care for approximately 38,000 patients. Results of this participation showed a quality score of 90.7%, higher than both the national and state average. Highlights of performance include measures of screening for future fall risk and statin therapy for the prevention and treatment of cardiovascular disease results both being above 90%. 2024 performance resulted in franciscan aco saving cms approximately $32.8 million dollars. Franciscan aco through its interactions with participant providers and hospitals, helps to support improved rates of wellness and prevention activities, such as yearly checkups and cancer screenings, along with better management for chronic diseases, such as diabetes and hypertension. The aco works with care teams, patients and families throughout the continuum, working to improve care coordination, decrease avoidable hospital admissions and readmissions. These activities help support the opportunity for improved overall patient health, better quality and experience of care and lower costs of care where appropriate.

Financial Efficiency

• Mission deployment rate: 92.1%; rating input score 92
• Program expense ratio: 100%; rating input score 100
• 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: Limited

Accountability

• Independent voting board: 90%; rating input score 90; 38th percentile among comparable filings
• Governance controls: 7 of 8 controls in place; rating input score 88
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 7.9%; rating input score 66; 66th percentile among comparable filings
• Total-asset coverage ratio: 0.28; rating input score 9; 9th percentile among comparable filings
• Liabilities to assets ratio: 0.33; rating input score 52; 52nd percentile among comparable filings
• Officer compensation ratio: 0.1%; rating input score 92; 92nd percentile among comparable filings

Growth

• Program expense growth: 17.4% per year; rating input score 100; 90th percentile among comparable filings
• Revenue growth: 18.4% per year; rating input score 100; 92nd percentile among comparable filings
• Asset growth: -6.6% per year; rating input score 0; 2nd percentile among comparable filings