LCMC Health

What it reported doing in 2024

Louisiana children's medical center (lcmc) is a Louisiana non-stock not-for-profit corporation that was incorporated in 2009, with its founding member being children's hospital (children's). Through a health care system agreement (system agreement) between lcmc, children's, touro infirmary and its subsidiaries (touro), university healthcare system l.c. (ejgh and tulane) and cooperative endeavor agreements (ceas) with university medical center management corporation (umcmc) and west jefferson holdings, llc (west jefferson), these parties have determined that together they can provide a multi-hospital, not-for-profit community-based, system that will provide a continuum of care to the families of the gulf south region. Lcmc, children's, touro, umcmc, ejgh and west (continued on schedule o) jefferson are hereinafter collectively referred to as the system. Lcmc functions as the system parent with reserve powers to be exercised to promote the best interests of the system and its affiliates. All corporate powers of the system are vested in the board of trustees of lcmc. Children's provides comprehensive pediatric healthcare that meets the special needs of children through excellence and continuous improvement of patient care, education, and research. Touro serves the greater new orleans community as a premier, diverse, multi-specialty hospital, caring for the sick regardless of race, color, creed, religious affiliation, or ability to pay. Umcmc operates university medical center in new orleans (umc). Umcmc is a provider of charity care for the uninsured and plays a vital role as a statewide referral center for patients in need of tertiary care. Umcmc also provides medical and allied health training through its affiliation with academic institutions to strengthen and enhance opportunities to achieve the state's medical education, clinical care, and research goals.in tax year 2024, lcmc and its affiliates provided total community benefit expense of $1,254 million. This amount represented 36% of the affiliates combined total expense. Lcmc and its affiliates provides services to many low-income residents of the greater new orleans area. In 2024, $876 million in expense (25% of the affiliates combined total expense) was incurred in providing services for medicaid recipients and in providing financial assistance. Touro, children's, and other health care providers in Louisiana have collaborated with the state and units of local government in Louisiana, to more fully fund the medicaid program and ensure the availability of quality healthcare services for the low income and needy residents in the community population. The provision for this charity care directly to low income and needy patients will result in the alleviation of the expense of public funds the governmental entities previously expended on such care, thereby allowing the governmental entities to increase support for the state medicaid program up to the federal medicaid upper payment limits (upl). Each state's methodology must comply with its state plan and be approved by the centers for medicare & medicaid services (cms). Federal matching funds are not available for medicaid payments that exceed upls. In tax year 2024, the system received upl payments of approximately $508.2 million, which are included in direct offsetting revenue on part i, line 7b in schedule h of the respective hospital's 990s.

Financial Efficiency

• Mission deployment rate: 73.4%; rating input score 73
• Program expense ratio: 70.5%; rating input score 70
• Fundraising efficiency: $41.07 raised per $1 spent on fundraising; rating input score 71; 71st percentile among comparable filings

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 12th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Missing
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 99.3%; rating input score 99; 39th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 93.1%; rating input score 93; 43rd 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: -4.4%; rating input score 14; 14th percentile among comparable filings
• Total-asset coverage ratio: 2.53; rating input score 70; 70th percentile among comparable filings
• Liabilities to assets ratio: 0.59; rating input score 29; 29th percentile among comparable filings
• Officer compensation ratio: 1.2%; rating input score 70; 70th percentile among comparable filings

Growth

• Program expense growth: 26.9% per year; rating input score 100; 95th percentile among comparable filings
• Revenue growth: 24.9% per year; rating input score 100; 96th percentile among comparable filings
• Asset growth: 17.6% per year; rating input score 100; 90th percentile among comparable filings