MLK Community Healthcare

What it reported doing in 2024

Martin luther king, jr. Community hospital (mlkch) is a completely new facility replacing a prior county facility that was closed due to quality of care issues in 2007. Mlkch is a unique private-public partnership. As a private, non-profit freestanding 501(c)(3) corporation, mlkch leases a completely new $280 million hospital facility from the county of los angeles. Mlkch was licensed by the California department of public health on april 28, 2015 and opened to patient care on may 14, 2015. After initial licensing, mlkch passed through the following milestones as it became fully operational:- accredited by the joint commission on june 30, 2015- opened its emergency department on july 7, 2015- began accepting rescue ambulances on august 11, 2015- staged a phased opening of its inpatient facilities so that all inpatient beds were opened and staffed by december 2015. Since then, hospital has credentialed almost 400 physicians and hired over 2,000 employees and contractors to meet the expected volume of patients. Mlkch's service area is one of the poorest in metropolitan los angeles and suffers from a severe shortage of physicians. As a result, emergency department volume has consistently exceeded projections.in january 2020, the hospital, through working with a developer and the county of los angeles, completed the construction of a 50,000 sq. Ft. Medical office building, a two story building adjacent to the hospital. The hospital will be expanding outpatient services to include wound care and other services. In the fiscal year ended june 30, 2025, mlkch served its community by providing 9,551 acute inpatient admissions, 51,105 acute inpatient days, 601 deliveries, 2,062 inpatient surgeries, 428 outpatient surgeries, 124,457 outpatient and inpatient emergency visits, and 6,469 outpatient observation visits.

Financial Efficiency

• Mission deployment rate: 91.1%; rating input score 91
• Program expense ratio: 93.8%; rating input score 94
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th 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: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• 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: Yes; rating input score 100

Accountability

• Independent voting board: 90%; rating input score 90; 38th 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: 3%; rating input score 48; 48th percentile among comparable filings
• Total-asset coverage ratio: 1.38; rating input score 51; 51st percentile among comparable filings
• Liabilities to assets ratio: 0.87; rating input score 14; 14th percentile among comparable filings
• Officer compensation ratio: 2%; rating input score 56; 56th percentile among comparable filings

Growth

• Program expense growth: 12.9% per year; rating input score 100; 83rd percentile among comparable filings
• Revenue growth: 14.6% per year; rating input score 100; 88th percentile among comparable filings
• Asset growth: 10% per year; rating input score 100; 70th percentile among comparable filings