Licking Memorial Health Systems

What it reported doing in 2024

It is recognized that not all individuals possess the ability to purchase essential medical services. Further, we believe our purpose is to serve the community by providing healthcare services and education. Therefore, in keeping with our commitment to serving all members of the community, we provide:- free care and/or subsidized care- care to persons covered by governmental programs below cost- health activities and programs free-of-charge to the communitythe activities include wellness programs, community education programs, and special programs for the elderly, handicapped, and medically underserved.lmh served 7,667 inpatients and 825 newborns for a total of 31,305 patient days and provided services to 391,537 outpatients in 2024.additionally, lmh provides care to persons covered by governmental programs, below cost in many cases. To the extent reimbursement is below charges, lmh considers these amounts to be contractual adjustments, which will never be collected. The unreimbursed value of providing care to these patients amounted to $562,193,000 in 2024.uncompensated care is provided through many reduced-price services and free programs offered throughout the year based upon activities and services lmh believes will serve a bona fide community health need. The hospital routinely provides uncompensated care to patients who are unwilling or unable to pay their hospital bills. In 2024, lmh wrote off charges of approximately $33,028,000 in bad debts and $7,574,000 in charity care.lmhp provides healthcare services without regard to a patient's race, creed, gender, disability, ethnicity, age, religion, citizenship, national origin or sources of payment for care. Although reimbursement for services rendered is critical to the operation and stability of lmhp, it is recognized that not all individuals possess the ability to purchase essential medical services. Further, we believe our role is to serve all members of the community with respect to providing healthcare services and education. Therefore, in keeping with that commitment to serve all members of the community, we provided the community services and educational programs noted on the following pages, many of which were free of charge.additionally, lmhp provides care to persons covered by governmental programs, below cost in many cases. To the extent reimbursement is below charges, lmhp considers these amounts to be contractual adjustments, which will never be collected. The unreimbursed value of providing care to these patients amounted to $34,994,000 in charges in 2024.uncompensated care is provided through many reduced priced services and free programs offered throughout the year based upon activities and services lmhp believes will serve a bona fide community health need. Lmhp routinely provides uncompensated care to patients who are unwilling or unable to pay their bills. In 2024, lmhp wrote off charges of approximately $4,397,000 of charges in bad debts and $769,000 of charges in charity care.

Financial Efficiency

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

Transparency & Controls

• Consistency checks: 75%; rating input score 75; 1st 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: 90%; rating input score 90; 27th 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: Limited
• Total-asset coverage ratio: Limited
• Liabilities to assets ratio: 0; rating input score 69; 69th percentile among comparable filings
• Officer compensation ratio: Limited

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: 6.6% per year; rating input score 100; 72nd percentile among comparable filings