Hackley Hospital

Nonprofit profile at a glance

EIN
381358196
IRS 990 coverage
2009–2013
Forms available
Form 990 2013
Location
Muskegon, MI, USA
Phone
2317284952
Rating
64
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Hospital, General

Official website

Reported finances

Revenue
$88,896,982
Expenses
$84,628,361
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2013. Amounts in USD.

Leadership & pay

29 people listed

Executive titles in this filing

  • ROGER SPOELMAN (W. MI REG. PRES. & CEO; TRUSTEE)
  • PHILIP MCCORKLE (TRUSTEE; ST. MARYS HLTH CEO THR 8/13)
  • GREGORY LOOMIS (MHP INTERIM CEO)

Highest reported compensation

  • KEDRICK ADKINS (FORMER KEY EMPLOYEE): $3,547,825 total reported compensation
  • J RICHARD O'CONNELL (FORMER KEY EMPLOYEE): $1,819,059 total reported compensation
  • JOSEPH SWEDISH (FORMER KEY EMPLOYEE): $1,492,883 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2013. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide healthcare services - see schedule h for more information

What it reported doing in 2013

Hackley hospital is a 201-bed, not-for-profit hospital located in the city of muskegon, Michigan, with a 100-year tradition of providing quality medical services to the population of western Michigan.hackley hospital provides health care services regardless of race, creed, sex, national origin, or the ability to pay. Although reimbursement of services rendered is critical to the operation and financial stability of hackley hospital, it is recognized that not all individuals have the ability to purchase essential medical services. Therefore, in keeping with the hospital's mission, the community is provided the following:1) free or subsidized medical care to income-eligible patients,2) subsidized care provided to persons covered by government programs,3) donated community health activities and programs.see schedule h for more information.

Operating model

Revenue model
Earned-program. 98% 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 revenue has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 73
  • Transparency & Controls: 62
  • Accountability: 73
  • Sustainability: 27
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 81%; rating input score 81
  • Program expense ratio: 84.4%; rating input score 84
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.9%; rating input score 93; 14th 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: 69.2%; rating input score 69; 23rd 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: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 4.8%; rating input score 56; 56th 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: 7.1%; rating input score 6; 6th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: -7.4% per year; rating input score 0; 3rd percentile among comparable filings
  • Asset growth: -26.3% per year; rating input score 0; 1st percentile among comparable filings

Details

  • Where the money goes: 81% of revenue deployed · 84.4% of spending went to programs
  • Governance: 9 of 13 board members independent · 7 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $71.4M in reported program spending
  • Leadership: top reported pay $3.5M · 29 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $4.4M reported
  • Consistency: 29 of 29 current checks pass
  • Schedules: 9 filed schedules · includes executive pay and related organizations
  • Filing history: 5 filing years from 2009 to 2013
  • Contacts: How to reach this organization
  • Money network: 5 filed money-flow records
  • Related organizations: 337 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Sustainability: Operating margin scored 56/100.
  • High — Sustainability: Officer compensation ratio scored 6/100.