Lecom Health Risk Retention Group
Nonprofit profile at a glance
- EIN
- 854350386
- IRS 990 coverage
- 2022–2024
- Forms available
- Form 990 2024
- Location
- Erie, PA, USA
- Phone
- 8148688258
- Rating
- 52
- Verdict
- MIXED
- Rating confidence
- Moderate
- Sector
- Single Organization Support
Reported finances
- Revenue
- $7,564,774
- Expenses
- $2,355,059
- Assets
- $23,820,984
- Liabilities
- $12,185,635
Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.
Leadership & pay
5 people listed
Executive titles in this filing
- JOHN M FERRETTI DO (PRESIDENT)
- RICHARD E FERRETTI ESQ (VICE PRESIDENT)
Highest reported compensation
- JOHN M FERRETTI DO (PRESIDENT): $1,609,483 total reported compensation
- STEVEN G INMAN CPA CGMA (TREASURER AND SECRETARY): $445,293 total reported compensation
- RICHARD E FERRETTI ESQ (VICE PRESIDENT): $392,948 total reported compensation
Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.
Overview
Mission
The corporation's primary purpose is to support the charitable purposes of (i) millcreek health system, a Pennsylvania nonprofit corporation d/b/a lecom health (the "parent"), and (ii) each affiliate of the parent that is in existence on the date hereof or is formed after the date hereof and that is exempt from federal income tax and is an entity of the type described in section 501(c)(3) of the code (the "lecom exempt affiliates") by providing insurance and/or claims defense, administration, and indemnity to, or in respect of risks presented by and activities engaged in by, the parent and/or the lecom exempt affiliates, together with their respective employees and others providing services on behalf of and within the scope of the exempt activities engaged in by the parent and/or the lecom exempt affiliates.
Operating model
- Revenue model
- Earned-program. 89% 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
MIXED - The filed numbers largely add up and revenue comfortably covers expenses. A relatively small share of available resources goes toward mission work and few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.
Rating breakdown
- Financial Efficiency: 45
- Transparency & Controls: 60
- Accountability: 44
- Sustainability: 79
- Growth: 60
Detailed rating inputs
Financial Efficiency
- Mission deployment rate: 25.7%; rating input score 26
- Program expense ratio: 92.1%; rating input score 92
- Fundraising efficiency: Limited
Transparency & Controls
- Consistency checks: 100%; rating input score 100; 63rd 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: 20%; rating input score 20; 6th 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: 68.9%; rating input score 96; 96th percentile among comparable filings
- Total-asset coverage ratio: 10.11; rating input score 91; 91st percentile among comparable filings
- Liabilities to assets ratio: 0.51; rating input score 20; 20th percentile among comparable filings
- Officer compensation ratio: 6.6%; rating input score 43; 43rd percentile among comparable filings
Growth
- Program expense growth: -22.5% per year; rating input score 0; 1st percentile among comparable filings
- Revenue growth: 26% per year; rating input score 100; 92nd percentile among comparable filings
- Asset growth: 53.2% per year; rating input score 100; 98th percentile among comparable filings
Details
- Where the money goes: 25.7% of revenue deployed · 92.1% of spending went to programs
- Governance: 1 of 5 board members independent · 7 of 9 filing controls reported
- Programs: 1 filed program accomplishment · $2.2M in reported program spending
- Leadership: top reported pay $1.6M · 5 people listed · 0 of 6 pay-setting controls reported
- Consistency: 19 of 19 current checks pass
- Schedules: 5 filed schedules · includes executive pay
- Filing history: 3 filing years from 2022 to 2024
- Contacts: How to reach this organization
- Related organizations: 15 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.
Key Signals
Signals prioritize questions for review. They are not findings of misconduct.
- High — Financial Efficiency: Mission deployment rate scored 26/100.
- High — Transparency & Controls: Pay-setting controls scored 0/100.
- High — Accountability: Independent voting board scored 20/100.
- High — Growth: Program expense growth scored 0/100.
- Review — Accountability: Governance controls: 2 of 9 not reported.
- High — Sustainability: Liabilities to assets ratio scored 20/100.
- Moderate — Sustainability: Officer compensation ratio scored 43/100.