Memorial Hermann

What it reported doing in 2024

Memorial Hermann Hospital Based Physician Group (MHHBPG) provides physician coverage services for the emergency rooms of Memorial Hermann Health System (MHHS) hospitals and to advance the charitable mission of MHHS through the promotion of health throughout Greater Houston. Below is an overview of MHHS's activities. MHHS formed MHHBPG as a wholly owned, tax-exempt affiliate to provide physician coverage and physician services for certain affiliated hospital emergency rooms to improve the quality of care and cost of physician services to its patients, including indigent patients. Previously, physician coverage was provided by non-MHHS organizations, which did not follow MHHS's financial assistance policy. Because non-MHHS organizations provided the emergency room coverage in various MHHS hospitals, there was not the same overall strategic planning, best practices, and clinical consistency that could be achieved through a single nonprofit, tax-exempt affiliate to provide physician services. For example, if a patient seeks treatment in a MHHS emergency room and it is determined the patient would be better treated in an alternative care setting, MHHBPG does not charge the patient for the care setting screening. MHHBPG assists the patient by providing the location(s) of the appropriate care setting. MHHBPG provides free or discounted care to patients qualifying for financial assistance. Financial assistance is provided on a sliding scale relative to a patient's ability to pay. Family income levels relative to the Federal Poverty Guidelines are used to determine a patient's financial responsibility. The activities of MHHBPG enable MHHS to further its charitable purpose and improve the health of its community. The following is an overview of MHHS and its accomplishments. MEMORIAL HERMANN HEALTH SYSTEM IS A NONPROFIT, VALUES-DRIVEN, COMMUNITY-OWNED HEALTH SYSTEM DEDICATED TO IMPROVING HEALTH. OUR VISION IS TO CREATE HEALTHIER COMMUNITIES, NOW AND FOR GENERATIONS TO COME. OUR VALUES ARE COMMUNITY, COMPASSION, CREDIBILITY, AND COURAGE. CHARTING A BETTER FUTURE. A FUTURE THAT'S BUILT UPON THE HEALTH OF OUR COMMUNITY. THIS IS THE DRIVING FORCE FOR MEMORIAL HERMANN, REDEFINING HEALTH CARE FOR THE INDIVIDUALS AND MANY DIVERSE POPULATIONS WE SERVE. OUR 6,600+ AFFILIATED PHYSICIANS AND 33,000+ EMPLOYEES PRACTICE THE HIGHEST STANDARDS OF SAFE, EVIDENCE-BASED, QUALITY CARE TO PROVIDE A PERSONALIZED AND OUTCOME-ORIENTED EXPERIENCE ACROSS OUR MORE THAN 260 CARE DELIVERY SITES. AS ONE OF THE LARGEST NOT-FOR-PROFIT HEALTH SYSTEMS IN SOUTHEAST TEXAS, MEMORIAL HERMANN HAS AN AWARD-WINNING AND NATIONALLY ACCLAIMED ACCOUNTABLE CARE ORGANIZATION, 17 HOSPITALS AND NUMEROUS SPECIALTY PROGRAMS AND SERVICES CONVENIENTLY LOCATED THROUGHOUT THE GREATER HOUSTON AREA (MEMORIAL HERMANN HEALTH SYSTEM OWNS AND OPERATES 14 HOSPITALS AND HAS JOINT VENTURES WITH THREE OTHER HOSPITAL FACILITIES, INCLUDING MEMORIAL HERMANN SURGICAL HOSPITAL FIRST COLONY, MEMORIAL HERMANN SURGICAL HOSPITAL KINGWOOD AND MEMORIAL HERMANN REHABILITATION HOSPITAL-KATY). BEGINNING IN 1990, U.S. NEWS & WORLD REPORT HAS RANKED OUR NATION'S LEADING HOSPITALS ANNUALLY. AND IN EVERY ONE OF THOSE YEARS, TIRR MEMORIAL HERMANN HAS BEEN NAMED AMONG THE VERY BEST REHABILITATION HOSPITALS IN THE UNITED STATES. TIRR MEMORIAL HERMANN RANKS BEST IN TEXAS AND NO. 3 IN THE NATION FOR REHABILITATION. MEMORIAL HERMANN-TEXAS MEDICAL CENTER IS ONE OF THE NATION'S BUSIEST LEVEL I TRAUMA CENTERS AND SERVES AS THE PRIMARY TEACHING HOSPITAL FOR MCGOVERN MEDICAL SCHOOL AT UTHEALTH. MEMORIAL HERMANN-TEXAS MEDICAL CENTER WAS RANKED #4 BEST HOSPITAL IN TEXAS, AND ALSO LISTED IN THE U.S. NEWS RANKINGS IN THE SPECIALTY AREAS OF CARDIOLOGY AND HEART SURGERY, EAR, NOSE AND THROAT, AND GASTROENTEROLOGY AND GI SURGERY. ALSO MAKING THE TOP 10 STATEWIDE RANKINGS WERE MEMORIAL HERMANN GREATER HEIGHTS HOSPITAL AND MEMORIAL HERMANN MEMORIAL CITY MEDICAL CENTER WERE TIED AT #6. CHILDREN'S MEMORIAL HERMANN HOSPITAL WAS NATIONALLY R

Financial Efficiency

• Mission deployment rate: 100%; rating input score 100
• Program expense ratio: 99.9%; rating input score 100
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • 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: Limited

Accountability

• Independent voting board: 0%; rating input score 0; 4th 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: -12.7%; rating input score 6; 6th percentile among comparable filings
• Total-asset coverage ratio: 0.1; rating input score 2; 2nd percentile among comparable filings
• Liabilities to assets ratio: 5.63; rating input score 1; 1st percentile among comparable filings
• Officer compensation ratio: 0.7%; rating input score 81; 81st percentile among comparable filings

Growth

• Program expense growth: 5.3% per year; rating input score 100; 43rd percentile among comparable filings
• Revenue growth: 6.6% per year; rating input score 100; 57th percentile among comparable filings
• Asset growth: -0.1% per year; rating input score 0; 7th percentile among comparable filings