Methodist Le Bonheur Healthcare

What it reported doing in 2024

Methodist healthcare-olive branch hospital (obh) is the newest hospital in the methodist le bonheur healthcare system, designed to care for the community of north Mississippi. The five-story, 100-bed hospital opened in 2013 and features an innovative, environmentally friendly design. In 2024 mlh contributed more than $268 million in community benefit to memphis and the mid-south through various efforts including, charity care, medicare/tncare shortfall, medical education, and community health improvement services. Net community benefit expense is calculated using a standard approach as required for government benefit reporting. Methodist le bonheur healthcare (mlh) has served the memphis and mid-south region for more than 100 years. Our five adult hospitals are located across the city and are part of the communities they serve. Our children's hospital is the region's only comprehensive pediatric hospital. Our physicians, nurses and other clinicians live in the communities that they serve and provide expert care inside the hospitals and preventative services in their neighborhoods. Our organization is committed to improving the health and well-being of the communities we serve, providing uncompensated care, charitable contributions to other community organizations and community outreach. We employ 250 health care professionals to address community needs as they relate to four major areas: access to services, risk reduction, child development and effective parenting and chronic illness management and prevention. Examples include programs that offer free or discounted prescription drugs, nonbilled, in-home services, in-home equipment, transportation vouchers, childbirth classes and a variety of health fairs all aimed at keeping our communities healthy. Mlh has received regional and national recognition for the care it provides. Methodist adult hospitals in the memphis area, which include methodist university, methodist le bonheur germantown, methodist north and methodist south, are ranked as a top hospital in the region by u.s. News & world report. In 2024, methodist olive branch hospital in north Mississippi became a cms 5-star hospital, the only hospital in the region to be so recognized for both quality and patient experience. Le bonheur children's hospital has been named a "best children's hospital" by u.s. News & world report for eleven/11 consecutive years. Le bonheur provides outpatient services in west Tennessee, northern Mississippi and eastern Arkansas to ensure childre there have access to expert pediatric care. Le bonheur is also a level 1 pediatric trauma center, and serves as the region's primary source for pediatric trauma care and trauma education for regional providers. Methodist also serves the community with diagnostic care facilities in the communities we serve and one hospice facility committed to caring for our patients at end-of-life. We are also an economic driver for the community, contributing $5 billion to the memphis-area economy. Mlh employs more than 10,600 associates and has a medical staff of more than 2,400 providers, making it the second-largest private employer in shelby county.

Financial Efficiency

• Mission deployment rate: 95.1%; rating input score 95
• Program expense ratio: 92.5%; rating input score 92
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th 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: Limited

Accountability

• Independent voting board: 88.9%; rating input score 89; 36th percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • 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: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -2.8%; rating input score 17; 17th percentile among comparable filings
• Total-asset coverage ratio: 1.04; rating input score 41; 41st percentile among comparable filings
• Liabilities to assets ratio: 0.33; rating input score 53; 53rd percentile among comparable filings
• Officer compensation ratio: 1.4%; rating input score 67; 67th percentile among comparable filings

Growth

• Program expense growth: 9.7% per year; rating input score 100; 73rd percentile among comparable filings
• Revenue growth: 10.4% per year; rating input score 100; 78th percentile among comparable filings
• Asset growth: -0.6% per year; rating input score 0; 6th percentile among comparable filings