Mercyhealth

What it reported doing in 2024

Mercy health corporation (mhc) is the parent corporation that supports the following affiliated entities: 1. Javon bea hospital (jbh), with two locations (rockton and riverside), which operates a 4-bed hospital, a 264-bed hospital, and a 17-bed skilled nursing facility in rockford, Illinois. Jbh provides inpatient, outpatient, emergency care services and long-term sub-acute care to residents of Illinois and the surrounding communities. Rockford health insurance ltd, (rhil) is a wholly owned subsidiary of javon bea hospital, incorporated under the laws of bermuda, and provides the affiliated entities with excess professional and general liability insurance. Jbh has an active volunteer association of 197 volunteers that have donated approximately 16,335 hours for patients, local community services and monetary donations including scholarships.2. Rockford health system ventures, llc (rhsv) is a wholly owned subsidiary of javon bea hospital and was created to manage its investments in joint ventures. Rhsv owns 50% of subsidiary van matre/healthsouth rehabilitation hospital which offers patients a wide range of health specialty services.3. Rhs regional health network, llc (rrhn) which is an accountable care organization (aco).4. Mercy health system corporation (mhsc), which operates a 240-bed hospital in janesville, Wisconsin, and approximately 41 physician clinics in southern Wisconsin and northern Illinois; a skilled nursing facility (snf) that operates as a subacute care unit of the hospital; and mercyhealth hospital and medical center (mwh), which operates a 25-bed hospital facility in walworth county, Wisconsin.5. Mercy health system association of volunteers, inc. Which provides and trains volunteers to assist in the thrift shop, gift shops and non-clinical patient services and support for the other entities.6. Mercycare insurance company (mcic) which is an indemnity insurance company that contracts with local employers. Mcic has a wholly owned subsidiary, mercycare hmo, which operates as a health maintenance organization (hmo) under Wisconsin statutes. Mcic and mercycare hmo contract for services with affiliates and other providers.7. Madison united healthcare linen ltd (muhl) provides laundry and linen services to its member hospitals on a non-profit basis.8. Mercyhealth development foundation (mhdf) which is organized to promote education and scientific and charitable health care activities.9. Mercy assisted care, inc. (mac) operating as mercyhealth at home, is a supplier of durable medical equipment and coordinates home care and hospice services through nurses, physical therapists, and speech therapists.10. Mercy harvard hospital, inc. (mhh) operates a hospital with 25 acute and 45 long-term care beds located in harvard, Illinois.11. Rockford health physicians (rhph) provides physician and ambulatory care services at several sites.12. Mercyhealth visiting nurses association, inc. (vna) provides hospice and home health nursing services to residents of rockford, Illinois and the surrounding communities.additional community benefits and mhc strategies to assist the surrounding communities can be viewed on the mhc website: www.mercyhealthsystem.org

Financial Efficiency

• Mission deployment rate: 45.1%; rating input score 45
• Program expense ratio: 95.7%; rating input score 96
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 62nd 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: Limited
• Major donor itemization: Limited
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 75%; rating input score 75; 14th 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: 76%; rating input score 98; 98th percentile among comparable filings
• Total-asset coverage ratio: 171.06; rating input score 100; 100th percentile among comparable filings
• Liabilities to assets ratio: 0.55; rating input score 25; 25th percentile among comparable filings
• Officer compensation ratio: 62.6%; rating input score 0; 0th percentile among comparable filings

Growth

• Program expense growth: 11.4% per year; rating input score 100; 75th percentile among comparable filings
• Revenue growth: 44.7% per year; rating input score 100; 98th percentile among comparable filings
• Asset growth: 2.3% per year; rating input score 100; 19th percentile among comparable filings