CommonSpirit Health

What it reported doing in 2024

The primary exempt purpose of khmg is to provide quality medical care through physician and advanced practice clinician services at clinic locations in the central and eastern Kentucky area regardless of ability to pay. Khmg's sole corporate member is kentuckyone health, inc a Kentucky nonprofit corporation that is exempt from federal income tax as an organization described under 501(c)(3) of the internal revenue code classified as an organization described in section 509(a)(2). For an organization to be excluded from private foundation status as an organization described in irc 509(a)(2), it must normally receive more than one-third of its support from any combination of gifts, grants, contributions, membership fees, and gross receipts from permitted sources, and not more than one-third of its support from gross investment income and the excess of the amount of unrelated business taxable income over the amount of taxes imposed by irc 511. Khmg provides convenient, high quality care and preventative health services. Some of the khmg offices are located in economically depressed areas allowing the practice to service a population unable to meet its financial obligation for payment of services and to make quality healthcare accessible in these areas. Khmg provides a broad range of medical services at its clinics including practice areas as follows: * cardiology * neurology * neuro surgery* spine surgery* orthopedics * primary care * obstetrics and gynecology * general surgery* pulmonology* gastroenterology* behavioral health* urologykhmg provides medical services on a nondiscriminatory basis to all persons in the community able to pay the cost thereof either directly or through third-party reimbursement, as well as to those enrolled in the medicare and medicaid programs. Additionally, khmg provides health care services to all individuals regardless of their ability to pay in accordance with khmg's charity care policy.

Financial Efficiency

• Mission deployment rate: 100%; rating input score 100
• Program expense ratio: 88.2%; rating input score 88
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th 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: Limited

Accountability

• Independent voting board: 0%; rating input score 0; 4th percentile among comparable filings
• Governance controls: 6 of 9 controls in place; rating input score 67
  • 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: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -69.7%; rating input score 1; 1st percentile among comparable filings
• Total-asset coverage ratio: 0.19; rating input score 6; 6th percentile among comparable filings
• Liabilities to assets ratio: 4.11; rating input score 1; 1st percentile among comparable filings
• Officer compensation ratio: 6.2%; rating input score 10; 10th percentile among comparable filings

Growth

• Program expense growth: -8.9% per year; rating input score 0; 1st percentile among comparable filings
• Revenue growth: -3.8% per year; rating input score 0; 1st percentile among comparable filings
• Asset growth: 0.3% per year; rating input score 100; 8th percentile among comparable filings