Highmark Health

What it reported doing in 2024

Highmark health is the parent organization of a blended health system that includes the allegheny health network and highmark inc. Highmark health provides strategic, operational and administrative leadership, stewardship and support to the allegheny health network to enable it to execute on its charitable mission. Highmark health's vision is a world where everyone embraces health. Its mission is to create a remarkable health experience, freeing people to be their best. Through its structure as a blended health organization, highmark health is uniquely positioned to pioneer new models and transform the healthcare industry to work better now and for generations to come. We believe that we have a fundamental responsibility to be leaders and stewards in the community, working to improve the health and well-being of those we serve by giving back to, reinvesting in, and strengthening the communities where our customers and employees live, work and play. Highmark health, together with the allegheny health network, is dedicated to improving the quality of care and driving down healthcare costs through the living health model. Living health highmark health's blended health system approach connects payers, providers, tech innovators, and community organizations to build a health ecosystem that works better for everyone: living health. Through living health, highmark health is driving an enterprise strategy by integrating health, coverage and care to deliver a simpler, more personalized, and proactive health experience for individuals and clinicians. Living health is intended to reduce organizational friction and extract valuable insights which will optimize outcomes at a lower cost. The living health strategy, vendor relationships and related party services are consistent with highmark health's stated charitable mission, which includes: provision of access to affordable care, strategic and operational/administrative leadership for the health system and operational oversight to ensure effective and efficient operation and provision of high-quality care. The living health dynamic platform is being designed as the health "operating system" of the future and will connect what individuals and clinicians need on one digital platform. Living health's success in achieving the quadruple aim (better patient experience, clinician satisfaction, and health outcomes, with lower costs) will provide a sustainable economic model that can solve industry problems at scale. The living health activities are central to the mission of ahn - to create a remarkable health experience, freeing people to be their best. Introduction to ahn allegheny health network (ahn), based in pittsburgh, Pennsylvania, is a tax-exempt, patient-centered and physician-led academic healthcare system that provides charitable care and high-quality, comprehensive healthcare services to patients from western Pennsylvania and the adjacent regions of Ohio, West Virginia, New York and Maryland. Ahn comprises 14 hospitals and more than 200 primary- and specialty- care practices in more than 300 healthcare sites, including six health + wellness pavilions; surgical centers and outpatient clinics; a research institute; about 2,500 employed and affiliated physicians; approximately 23,000 total employees; hundreds of volunteers; a group purchasing organization; and a complete spectrum of home and community based healthcare services. The network's hospitals include one quaternary academic medical center (ahn allegheny general hospital in pittsburgh), nine tertiary/community hospitals that provide a wide array of general and advanced clinical services (ahn allegheny valley hospital, natrona heights, pa; ahn canonsburg hospital, canonsburg, pa; ahn forbes hospital, monroeville, pa; ahn grove city hospital, grove city, pa; ahn jefferson hospital, jefferson hills, pa; ahn saint vincent hospital, erie, pa; ahn west penn hospital, pittsburgh, pa; ahn westfield memorial hospital, westfield, ny; and ah

Financial Efficiency

• Mission deployment rate: 74.5%; rating input score 75
• Program expense ratio: 75.2%; rating input score 75
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 12th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: 93.7%; rating input score 94; 26th percentile among comparable filings
• Major donor itemization: Limited
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 92.9%; rating input score 93; 42nd percentile among comparable filings
• Governance controls: 7 of 7 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 2.4%; rating input score 45; 45th percentile among comparable filings
• Total-asset coverage ratio: 1.15; rating input score 44; 44th percentile among comparable filings
• Liabilities to assets ratio: 0.34; rating input score 52; 52nd percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 98; 98th percentile among comparable filings

Growth

• Program expense growth: 14.5% per year; rating input score 100; 86th percentile among comparable filings
• Revenue growth: 15.1% per year; rating input score 100; 89th percentile among comparable filings
• Asset growth: 14.7% per year; rating input score 100; 85th percentile among comparable filings