Legacy Health

What it reported doing in 2024

LSCH was the State of Washington's first new hospital construction since 1979. The hospital opened in August 2005 with 165 licensed beds, all of which are single occupancy. LSCH provides a full array of hospital services, including surgery, diagnostics, inpatient and outpatient medical services, neonatal intensive care unit, pediatric, obstetrical, and emergency services. LSCH utilizes an electronic information system for medical records and physician order entry. Physicians are able to complete their entire patient records electronically and can remotely access patient records, including diagnostic images.In support of its mission, LSCH voluntarily provides medically necessary patient care services that are discounted or free of charge to persons who have insufficient resources and/or who are uninsured. During fiscal year 2025, LSCH provided financial assistance on approximately 17,657 patient accounts (of which 1,482 accounts received discounts totaling 100% of costs) and resulted in LSCH incurring roughly $11,925,800 in uncompensated costs associated with this program. In addition to charity care, LSCH provides services under various states' Medicaid programs for financially needy patients Medicare beneficiaries, and other government programs for which the cost of treating these patients exceeds the government payments received. During fiscal year 2025, LSCH incurred approximately $37,989,300, $66,347,900 and $3,715,000 in uncompensated costs attributable to Medicaid, Medicare and other government programs respectively. LSCH also provides a variety of other community benefit activities such as medical education, donations to other charitable entities, research, and other health improvement services, which totaled roughly $8,171,000 during fiscal year 2025.LSCH is part of Legacy, which collectively provided over $62 million, $261 million, $319 million, and $18 million in uncompensated care attributable to its financial assistance, Medicaid, Medicare, and other government programs, respectively, in fiscal year 2025. In addition, Legacy provided over $39 million in other community benefit activities during fiscal year 2025.

Financial Efficiency

• Mission deployment rate: 74.2%; rating input score 74
• Program expense ratio: 81.5%; rating input score 82
• 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: 100%; rating input score 100; 77th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 70.6%; rating input score 71; 21st 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: 9%; rating input score 70; 70th percentile among comparable filings
• Total-asset coverage ratio: 1.24; rating input score 47; 47th percentile among comparable filings
• Liabilities to assets ratio: 0.04; rating input score 91; 91st percentile among comparable filings
• Officer compensation ratio: 1.2%; rating input score 71; 71st percentile among comparable filings

Growth

• Program expense growth: 8.5% per year; rating input score 100; 67th percentile among comparable filings
• Revenue growth: 8.1% per year; rating input score 100; 67th percentile among comparable filings
• Asset growth: 7.7% per year; rating input score 100; 57th percentile among comparable filings