Guthrie

What it reported doing in 2013

The guthrie clinic is a nonprofit health care organization that serves to coordinate the activity of guthrie medical group, p.c. (gmg) and the affiliates within guthrie healthcare system (ghs; see form 990, schedule r, for a listing of affiliates of ghs, including robert packer hospital (rph)). Through the activities of the gmg, ghs, rph, and its other affiliates (collectively referred to as "guthrie"), the guthrie clinic provides charitable community-based health care services and programs to improve the health and well-being of the people and communities served by its facilities and providers. These charitable activities include providing primary care and specialty physician services, as well as operating a tertiary care teaching hospital, community hospitals, a research institute, home care, hospice care and a long-term care facility. The guthrie research institute and guthrie clinical research functions of the donald guthrie foundation (research institute), a subsidiary of ghs, furthers these charitable activities through providing basic science research and patient access to the region's largest panel of clinical trials. The facilities and provider offices of guthrie are located in 23 communities throughout the northern tier of Pennsylvania and southern tier of New York, with the greatest concentration of services provided principally in bradford county, Pennsylvania and chemung and steuben counties, New York. The vision of guthrie is to help shape the delivery of health care in the region through working collaboratively with physicians and other providers, and by distributing its services throughout the region based on community needs. Guthrie seeks to be the provider of choice for patients in the twin tier region, and to be recognized for its superior quality and service. It also strives to advance the practice of medicine through its commitment to teaching and research. In keeping with this vision, the core values of the guthrie clinic are as follows: patient-centeredness, excellence and teamwork. Guthrie providers and facilities provide care to patients who meet certain criteria under its charity care policy without charge or at amounts less than its established rates. Because it does not pursue collection of amounts determined to qualify as charity care, they are not reported as revenue on the financial statements of guthrie entities. Costs for services and supplies furnished under guthrie's charity care policy amounted to approximately $2.6 million in 2014 and $3.2 million in 2013 when measured at the appropriate entity's established rates. As part of its charitable mission, guthrie provides care through its hospital emergency departments. It ensures that an emergency-based treatment or hospital admission is not delayed or denied pending determination of coverage or a requirement for prepayment or deposit. As a result of this policy, guthrie experienced approximately $3.74 million and $3.71 million in bad debts for 2014 and 2013, respectively. In addition to the charity care program and the emergency department bad debts discussed above, guthrie supports numerous other charitable community activities. Examples of these activities include medical education for physicians and nurses, the trauma program and medical research. The estimated cost, net of reimbursement, for these programs was $16.1 million and $16.4 million in 2014 and 2013, respectively. Guthrie also provides services to patients who participate in the medicaid programs. Revenues generated from patients who participate in the medicaid program are subject to substantial discounts that result in reimbursement for services rendered below the cost of providing such services. In order for patients to meet the guidelines for the medicaid program, various income-based criteria must be met that validate patients' inability to pay for services and ineligibility under other programs. The estimated loss incurred by guthrie from providing services to medicaid patient

Financial Efficiency

• Mission deployment rate: 63.7%; rating input score 64
• Program expense ratio: 88.9%; rating input score 89
• Fundraising efficiency: $1.55 raised per $1 spent on fundraising; rating input score 6; 6th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• 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: 68.8%; rating input score 69; 12th 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: 26.9%; rating input score 91; 91st 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: 9.6%; rating input score 14; 14th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: -10% per year; rating input score 0; 4th percentile among comparable filings
• Asset growth: -25.9% per year; rating input score 0; 1st percentile among comparable filings