Memorial Hermann

Legal name: Memorial Hermann Pharmacy Services LLC

Nonprofit profile at a glance

EIN
202184459
IRS 990 coverage
2018–2024
Official website data refreshed
Sep 2026
Forms available
Form 990 2024, Form 990-N 2017
Location
Houston, TX, USA
Phone
(713) 222-2273
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Health Support Services

Official website

Reported finances

Revenue
$130,290,986
Expenses
$127,400,608
Assets
$22,553,080
Liabilities
$14,374,144

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

4 people listed

Executive titles in this filing

  • David L Callender (President)
  • Joshua Urban (Vice President)

Highest reported compensation

  • David L Callender (President): $6,061,094 total reported compensation
  • Erin Asprec (Director): $3,050,087 total reported compensation
  • Joshua Urban (Vice President): $2,129,152 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

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.

What it reported doing in 2024

Memorial Hermann prides itself in offering pharmacy services to its hospitals on the leading edge of technology, extensive clinical programs, shared system formulary, with interdisciplinary collaboration utilizing several innovative pharmacy practice models. The Pharmacy estimates that 95% of the individuals receiving services will be filling prescriptions (whether initial or refill) received in connection with care provided as a patient of one of Memorial Hermann's section 501(c)(3) hospitals. While there may be some incidental sales to the general public, the Pharmacy's purpose, and substantially all of its activities, is directed at addressing the pharmaceutical needs of patients of the Memorial Hermann 501(c)(3) hospitals.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. A relatively small share of voting board members are independent and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 87
  • Transparency & Controls: 88
  • Accountability: 42
  • Sustainability: 34
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 97.5%; rating input score 97
  • Program expense ratio: 100%; 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: Limited
  • Major donor itemization: Limited
  • 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: 2.2%; rating input score 44; 44th percentile among comparable filings
  • Total-asset coverage ratio: 0.18; rating input score 5; 5th percentile among comparable filings
  • Liabilities to assets ratio: 0.64; rating input score 26; 26th percentile among comparable filings
  • Officer compensation ratio: 1.1%; rating input score 72; 72nd percentile among comparable filings

Growth

  • Program expense growth: 17.1% per year; rating input score 100; 90th percentile among comparable filings
  • Revenue growth: 17.9% per year; rating input score 100; 92nd percentile among comparable filings
  • Asset growth: 8.1% per year; rating input score 100; 59th percentile among comparable filings

Details

  • What they do: 1 programs and campaigns described on the official site
  • Where the money goes: 97.5% of revenue deployed · 100% of spending went to programs
  • Governance: 0 of 3 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $127.4M in reported program spending
  • Leadership: top reported pay $6.1M · 4 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 2 contractors listed · $1.9M reported
  • Consistency: 28 of 28 current checks pass
  • Schedules: 5 filed schedules · includes executive pay
  • Filing history: 7 filing years from 2018 to 2024
  • Contacts: How to reach this organization
  • Related organizations: 38 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Accountability: Independent voting board scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 5/100.
  • Moderate — Sustainability: Operating margin scored 44/100.
  • High — Sustainability: Liabilities to assets ratio scored 26/100.