Franklin Memorial Hospital

Nonprofit profile at a glance

EIN
010211503
IRS 990 coverage
2009–2018
Forms available
Form 990 2018
Location
Farmington, ME, USA
Phone
2077792500
Rating
65
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Hospital, General

Official website

Reported finances

Revenue
$20,109,518
Expenses
$22,526,775
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2018. Amounts in USD.

Leadership & pay

24 people listed

Executive titles in this filing

  • William L Caron Jr (MH CEO)
  • Timothy Churchill (President/CEO)

Highest reported compensation

  • William L Caron Jr (MH CEO): $1,676,435 total reported compensation
  • Timothy Churchill (President/CEO): $491,191 total reported compensation
  • Joanie Peter MD (Physician): $444,058 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2018. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide high-quality, cost-effective, patient-centered healthcare to our west central Maine community. We work with our community and other healthcare providers to integrate services and ensure the health of our community.

What it reported doing in 2018

Fmh routine inpatient and ancillary outpatient services franklin memorial hospital is a non-for-profit community hospital which provides high-quality, cost-effective, patient-centered inpatient and outpatient healthcare services to the west central Maine community. The 65-bed hospital is fully qualified and accredited to handle a broad range of medical, surgical, pediatric, women's care and diagnostic services. Franklin memorial hospital offers top quality specialty care including routine adult, pediatric and intensive care inpatient services as well as a variety of outpatient services including oncology, hematology, cardiology, otolaryngology, orthopedics, behavioral services, occupational health, pulmonology, pain management, pediatric endocrinology, physical rehabilitation, sports medicine. During the three months ending december 31, 2018 there were 461 inpatient discharges, 394 outpatient surgeries, 60,603 outpatient lab tests and 11,054 outpatient imaging procedures.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program 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. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and a relatively small share of voting board members are independent.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 65
  • Accountability: 65
  • Sustainability: 5
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 93.8%; rating input score 94
  • Program expense ratio: 83.7%; rating input score 84
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd 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: 55.6%; rating input score 56; 9th 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: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -12%; rating input score 7; 7th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 11.3%; rating input score 12; 12th percentile among comparable filings

Growth

  • Program expense growth: -11.6% per year; rating input score 0; 2nd percentile among comparable filings
  • Revenue growth: -5.7% per year; rating input score 0; 3rd percentile among comparable filings
  • Asset growth: -11.5% per year; rating input score 0; 2nd percentile among comparable filings

Details

  • Where the money goes: 93.8% of revenue deployed · 83.7% of spending went to programs
  • Governance: 10 of 18 board members independent · 7 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $18.9M in reported program spending
  • Leadership: top reported pay $1.7M · 24 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $7.6M reported
  • Consistency: 27 of 27 current checks pass
  • Schedules: 10 filed schedules · includes major donors and executive pay
  • Filing history: 10 filing years from 2009 to 2018
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • Related organizations: 5 filed related-organization links
  • 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.

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.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • Review — Accountability: Independent voting board scored 56/100.
  • High — Sustainability: Operating margin scored 7/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 12/100.
  • High — Grant Readiness: Automatic revocation: this organization had its federal tax-exempt status automatically revoked.