Mercy Care
Nonprofit profile at a glance
- EIN
- 860527381
- IRS 990 coverage
- 2018–2024
- Forms available
- Form 990 2024
- Location
- Phoenix, AZ, USA
- Phone
- 6022633000
- Rating
- 66
- Verdict
- SUPPORTED
- Rating confidence
- Moderate
Reported finances
- Revenue
- $4,878,786,258
- Expenses
- $4,844,576,189
- Assets
- $1,037,805,736
- Liabilities
- $460,767,095
Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.
Leadership & pay
9 people listed
Executive titles in this filing
- TAD GARY (CEO)
Highest reported compensation
- TAD GARY (CEO): $460,609 total reported compensation
- RANDY EK (CFO): $382,667 total reported compensation
Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.
Overview
Mission
Mercy care exists to address and advocate for the comprehensive health of our members and families, including circumstances that impact their well-being, with special consideration for the underserved and those with complex health needsregardless of race, color, religion, ethnicity, national origin, sex, sexual orientation, gender identity, age or disability.
What it reported doing in 2024
Medicaid/medicare services mercy care provides medical coverage, under various contracts with the Arizona health care cost containment system (ahcccs), for the state's indigent population. Mercy care provides behavioral health and medical coverage for the acc members eligible under title xix medicaid program and title xxi program, institutional care and home and community based services for the long term care members, and medical coverage for the eligible members of the division of developmentally disabled (ddd) and division of child services (dcs). Mercy care operates a medicare advantage plan under the centers for medicare and medicaid services (cms), offering medical and prescription drug benefits to qualified members. It is operated as a special needs plan for members who are eligible for both medicare and medicaid coverage.mercy care provides physical and behavioral health care services on an integrated basis to medicaid eligible adults with serious mental illness, and to operate as the regional behavioral health authority (rbha) to coordinate the delivery of health care services to eligible persons in maricopa county. The organization has a wide network of community providers that serve its members and give them the support they need to reach their recovery goals.
Operating model
- Revenue model
- Earned-program. 96% 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 few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.
Rating breakdown
- Financial Efficiency: 82
- Transparency & Controls: 68
- Accountability: 28
- Sustainability: 34
- Growth: 100
Detailed rating inputs
Financial Efficiency
- Mission deployment rate: 91.8%; rating input score 92
- Program expense ratio: 91.9%; rating input score 92
- Fundraising efficiency: Limited
Transparency & Controls
- Consistency checks: 92.9%; rating input score 93; 17th 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: 96%; rating input score 96; 29th 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: 6 of 9 controls in place; rating input score 67
- Conflict-of-interest policy: Pass
- Whistleblower policy: Pass
- Document-retention policy: Pass
- CEO compensation review process: Fail
- Other executive compensation review process: Fail
- Form 990 shared with the board: Fail
- Board meeting minutes documented: Pass
- Audit committee oversight: Pass
- Independent financial-statement audit: Pass
Sustainability
- Operating margin: 0.7%; rating input score 35; 35th percentile among comparable filings
- Total-asset coverage ratio: 0.21; rating input score 6; 6th percentile among comparable filings
- Liabilities to assets ratio: 0.44; rating input score 41; 41st percentile among comparable filings
- Officer compensation ratio: 0%; rating input score 95; 95th percentile among comparable filings
Growth
- Program expense growth: 4.9% per year; rating input score 100; 39th percentile among comparable filings
- Revenue growth: 4.7% per year; rating input score 100; 40th percentile among comparable filings
- Asset growth: 8.5% per year; rating input score 100; 62nd percentile among comparable filings
Details
- Where the money goes: 91.8% of revenue deployed · 91.9% of spending went to programs
- Governance: 0 of 7 board members independent · 6 of 9 filing controls reported
- Programs: 2 filed program accomplishments · $4.5B in reported program spending
- Leadership: top reported pay $461K · 9 people listed · 0 of 6 pay-setting controls reported
- Highest-paid contractors: 1 contractor listed · $260M reported
- Consistency: 22 of 23 current checks pass · 1 finding to review
- Schedules: 6 filed schedules · includes major donors, grants, and executive pay
- Filing history: 7 filing years from 2018 to 2024
- Contacts: How to reach this organization
- Money network: 82 filed money-flow records
- Related organizations: 79 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 — Transparency & Controls: Pay-setting controls scored 0/100.
- Review — Accountability: Governance controls: 3 of 9 not reported.
- Moderate — Sustainability: Operating margin scored 35/100.
- High — Sustainability: Total-asset coverage ratio scored 6/100.
- Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.
- Moderate — Sustainability: Liabilities to assets ratio scored 41/100.