Kentucky Hospital Association

What it reported doing in 2024

On the federal level, continued to monitor and analyze legislation and regulations affecting hospitals and provided comments on hospital-related regulations and informed the membership. Monitored and provided comments on centers for medicare & medicaid services (cms) outpatient and inpatient prospective payment system rules and wage index changes.on an on-going basis, kha works with the Kentucky cabinet for health and family services on issues related to the Kentucky medicaid program and the medicaid managed care organizations ("mco"), emergency room triage fees, mental health parity and various administrative procedures. Monthly meetings between members and medicaid mcos continue to address problems hospitals experience with managed care. Efforts continue with the department for medicaid services to model a new disproportionate share system for hospital payments.kha maintained the state data contract for collection of both inpatient and outpatient data and continued the Kentucky birth surveillance contract. Reports are produced utilizing the data including reports to assist hospitals in addressing hospital readmissions and dashboard reports designed to provide a hospital-specific summary for each member.the economic impact study for each Kentucky hospital, which demonstrates the value of the hospital to its community, was updated. Provided educational, informational and networking forums for members to discuss current issues of interest to members. Prepared anddistributed information to members on current health care topics.ky cfs makes value based managed care payments to hospitals. Kha administers those payments to the hospitals.provide oversight and support staff services for the activities of the Kentucky hospital research and education foundation ("khref") and Kentucky institute for patient safety and quality ("kipsq").monitor and provide comments and recommendations on Kentucky laws and regulations that have an impact on hospitals and health care. Keep members informed regarding compliance with Kentucky health statutes.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
• Pay-setting controls: 3 of 6 controls in place; rating input score 50
  • Compensation committee: Missing
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 96.3%; rating input score 96; 30th 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: 64.7%; rating input score 96; 96th percentile among comparable filings
• Total-asset coverage ratio: 6.79; rating input score 88; 88th percentile among comparable filings
• Liabilities to assets ratio: 0.04; rating input score 86; 86th percentile among comparable filings
• Officer compensation ratio: 22.4%; rating input score 3; 3rd percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 14.4% per year; rating input score 100; 85th percentile among comparable filings
• Asset growth: 12.3% per year; rating input score 100; 73rd percentile among comparable filings