Franciscan Health

What it reported doing in 2024

For over 145 years, franciscan alliance, inc. ("franciscan") has endeavored to stay true to our founding mission of caring for patients who come through our doors and we continue to look for opportunities to serve our communities through the very best in medical care and service to the less fortunate among us. Franciscan's purpose is to continue the healing ministry of christ in accordance with the teachings, traditions and laws of the church, the ethical and religious directives for catholic health care services as promulgated by the united states conference of catholic bishops (the "erd"), the mission, philosophy of care, values and catholic identity of the sisters of st. Francis of perpetual adoration, and in partnership with others to provide a continuum of health care services; to operate exclusively for charitable, scientific, and educational purpose within the meaning of section 501(c)(3) of the internal revenue code; and to engage in activities relating to the aforementioned purposes; to carry on educational activities related to the promotion of health; to promote and carry on scientific research related to health care; to participate in activities designed and conducted to promote the general health of those served by franciscan; and to engage in any lawful act or activity for which a not-for-profit corporation may be organized under the laws of the state of Indiana. Subject to the limitations set forth herein and consistent with the corporation being organized and operated exclusively for charitable purposes. Franciscan directly or indirectly operates 12 hospital campuses (one in Illinois and 11 in Indiana) along with numerous physician clinics and ancillary services centers and offers numerous community health improvement programs that are further described in schedule h, part vi, item 5 and schedule h, part i, line 6a. In 2024, franciscan served about 2 million persons and provided over $903 million in charity care and other community benefits. Franciscan provides significant benefits that reflect the organization's commitment to healthcare and the communities it is privileged to serve. In 2024, franciscan provided community benefits which included: unreimbursed costs of medicaid and other indigent care programs $ 179,268,386 cost of charity care provided $ 60,284,372 other benefits for the poor and underserved $ 3,526,439 subsidized health services $ 55,345,243 health professions education $ 16,339,250 community health improvement services $ 7,113,696 financial and in-kind contributions $ 6,534,978 research $ 1,559,765 community benefit operations $ 259,534 unreimbursed costs of medicare $ 596,629,796 total $ 926,861,459 please view www.franciscanhealth.org/about/who-we-are which reflects our mission of "continuing christ's ministry in our franciscan tradition" as well as www.franciscanhealth.org/communityhealth for franciscan's community benefit and community health assessments. Although it is not all inclusive of the many benefits provided by franciscan it does portray the significant benefits that reflect our commitment to healthcare and the communities we are privileged to serve. Please see the response to schedule h, part vi, item 5 and schedule h, part i, line 6a for a detailed description of the many clinical services as well as population health improvement and community outreach activities offered by one or more of franciscan's healthcare facilities. Please see the response to schedule h, part vi, item 5 and schedule h, part i, line 6a for a detailed description of the many clinical services as well as population health improvement and community outreach activities offered by one or more of franciscan's healthcare facilities.

Financial Efficiency

• Mission deployment rate: 80.5%; rating input score 81
• Program expense ratio: 84.5%; rating input score 85
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th 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: Scored; rating input score 0
• Grant itemization coverage: 100%; rating input score 100; 77th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 88.2%; rating input score 88; 35th 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: 1.2%; rating input score 38; 38th percentile among comparable filings
• Total-asset coverage ratio: 1.69; rating input score 58; 58th percentile among comparable filings
• Liabilities to assets ratio: 0.31; rating input score 54; 54th percentile among comparable filings
• Officer compensation ratio: 0.4%; rating input score 85; 85th percentile among comparable filings

Growth

• Program expense growth: 4% per year; rating input score 100; 31st percentile among comparable filings
• Revenue growth: 3.2% per year; rating input score 100; 24th percentile among comparable filings
• Asset growth: 4% per year; rating input score 100; 27th percentile among comparable filings