Good Shepherd Health System Inc

What it reported doing in 2020

The system was originally organized in 1984 to serve as a parent holding company. The system is the sole corporate member of good shepherd-longview, marshall, and linden, gshs administrative services organization, inc. And gshs customer service building, llc, a Texas limited liability company. The system is the sole shareholder of gshs enterprises, inc. The system has an ownership interest in gshs home health, lp, a Texas limited partnership, gshs customer service building i, ltd. (building ltd) and champion e.m.s., (ems) a Texas nonprofit corporation, as well as several foundations and other non-for-profit and for-profit entities. The system is exempt from federal income taxation under section 501(a) of the internal revenue code of 1986, as amended (the code), by reason of being an organization described in section 501(c)(3) of the code. The system and its affiliates have their primary operations in (i) longview, gregg county, Texas and (ii) marshall, harrison county, Texas. The system is the parent company for the health system, providing comprehensive health care delivery services through hospitals and other facilities within a large 11 county service area. Services of these facilities include acute medical care of all specialties including cardiology, orthopedics, neurosurgery, oncology, pediatrics, women's services and a range of outpatient medical care services. The medical center in longview is a level ii trauma center, a certified primary stroke center, and an accredited chest pain center. The system holds the majority of the investment assets and properties, including but not limited to numerous clinics, the institute for healthy living, land, and contains the legal and marketing departments for the health system. To meet the everyday healthcare needs of the residents in our region, good shepherd medical center operates family health centers in the communities of longview, gladewater, henderson, kilgore, jefferson, linden, and hughes springs. Through these medical offices, good shepherd provides a vital link to medical care. Recently adding urgent care services to kilgore, along with the implementation of orthodirect, has had a direct effect on the number of non-emergent cases and misuse of the emergency department. As part of our ongoing commitment to the underserved population of good shepherd's service area, the board of directors established criteria for financial assistance consistent with the organization's mission and financial resources. All entities provide financial assistance to all parties, without regard to race, creed, gender, or national origin, who are classified as financially indigent according to good shepherd's eligibility guidelines and who present themselves for care at good shepherd medical center and its regional system of services. Many factors such as all sources of income, employment status, family size, amount of patient's account and healthcare needs are all taken into consideration when determining eligibility for financial assistance. Good shepherd medical center maintains records to identify and monitor the level of financial assistance it provides to the communities it services.

Financial Efficiency

• Mission deployment rate: 89.4%; rating input score 89
• Program expense ratio: 90.1%; rating input score 90
• 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: Limited
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 58.8%; rating input score 59; 9th 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: 23.9%; rating input score 76; 76th 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: 168%; rating input score 0; 0th percentile among comparable filings

Growth

• Program expense growth: -8.3% per year; rating input score 0; 6th percentile among comparable filings
• Revenue growth: -1.7% per year; rating input score 0; 12th percentile among comparable filings
• Asset growth: 0.4% per year; rating input score 100; 19th percentile among comparable filings