Institute for Healthcare Optimization Inc

Nonprofit profile at a glance

EIN
270373299
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Lexington, MA, USA
Phone
6174673350
Rating
57
Verdict
MIXED
Rating confidence
Moderate
Sector
Research Institutes and/or Public Policy Analysis

Official website

Reported finances

Revenue
$3,506,181
Expenses
$2,973,439
Assets
$1,407,086
Liabilities
$493,236

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

10 people listed

Executive titles in this filing

  • EUGENE LITVAK PHD (PRESIDENT/TREASURER/DIRECTOR)
  • CHERI WARD (SR. VICE PRESIDENT)
  • JULIA KROL (VICE PRESIDENT)

Highest reported compensation

  • EUGENE LITVAK PHD (PRESIDENT/TREASURER/DIRECTOR): $387,353 total reported compensation
  • CHERI WARD (SR. VICE PRESIDENT): $275,392 total reported compensation
  • MUHUND CHANDRAMOHAN (DIR. OF SIMULATION & ANALYTICS): $231,901 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

See schedule o

What it reported doing in 2024

Research and develop tools for application of operations management to healthcare delivery including applied research under contracts with hospitals.

Operating model

Revenue model
Donor-supported. 100% of the money available for current operations came from contributions and gifts.
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

MIXED - Most filed governance safeguards are in place and revenue has grown recently. A relatively small share of available resources goes toward mission work and a relatively small share of voting board members are independent.

Rating breakdown

  • Financial Efficiency: 53
  • Transparency & Controls: 54
  • Accountability: 71
  • Sustainability: 42
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 56.1%; rating input score 56
  • Program expense ratio: 66%; rating input score 66
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Scored; rating input score 0
  • Grant itemization coverage: Scored; rating input score 0
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 50%; rating input score 50; 8th 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: 15.2%; rating input score 71; 71st percentile among comparable filings
  • Total-asset coverage ratio: 0.47; rating input score 16; 16th percentile among comparable filings
  • Liabilities to assets ratio: 0.35; rating input score 30; 30th percentile among comparable filings
  • Officer compensation ratio: 48.3%; rating input score 1; 1st percentile among comparable filings

Growth

  • Program expense growth: -0.8% per year; rating input score 0; 11th percentile among comparable filings
  • Revenue growth: 1.7% per year; rating input score 100; 19th percentile among comparable filings
  • Asset growth: 2.5% per year; rating input score 100; 22nd percentile among comparable filings

Details

  • Where the money goes: 56.1% of revenue deployed · 66% of spending went to programs
  • Governance: 2 of 4 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $2M in reported program spending
  • Leadership: top reported pay $387K · 10 people listed · 3 of 6 pay-setting controls reported
  • Highest-paid contractors: 2 contractors listed · $264K reported
  • Consistency: 26 of 26 current checks pass
  • Schedules: 6 filed schedules · includes major donors, foreign activity, and executive pay
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • 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.

  • Review — Financial Efficiency: Mission deployment rate scored 56/100.
  • Review — Accountability: Independent voting board scored 50/100.
  • High — Transparency & Controls: Foreign activity oversight scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 0/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 16/100.
  • High — Sustainability: Officer compensation ratio scored 1/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 30/100.