Memorial Hermann

Legal name: MHS Physicians of Texas

Nonprofit profile at a glance

EIN
760385980
IRS 990 coverage
2009–2024
Official website data refreshed
Sep 2026
Forms available
Form 990 2024, Form 990-T 2023
Location
Houston, TX, USA
Phone
(713) 222-2273
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Ambulatory Health Center, Community Clinic

Official website

Reported finances

Revenue
$58,439,570
Expenses
$100,544,393
Assets
$13,579,286
Liabilities
$339,984,566

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

Leadership & pay

13 people listed

Executive titles in this filing

  • James J McCarthy MD (President)

Highest reported compensation

  • Alec King (Treasurer): $2,672,097 total reported compensation
  • James J McCarthy MD (President): $2,235,852 total reported compensation
  • George Al Shamy (Physician): $2,208,727 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

Mhs physicians of Texas is a nonprofit subsidiary of memorial hermann health system, which is a non-profit, values-driven, community-owned health system dedicated to improving health in the greater houston area. Mhs physicians of Texas was organized to carry out several purposes of memorial hermann health system, including the carrying out of scientific research in medical sciences and public health; supporting medical education through grants and scholarships; improving and developing capabilities of individuals and institutions studying, teaching and practicing medicine; delivery of health care to the public; and engaging in the instruction of the general public in the area of medical science, public health and hygiene. Mhs physicians of Texas consists of health care providers, which specialize in areas such as neurology, sleep medicine, internal medicine, anesthesiology and more.

Operating model

Revenue model
Earned-program. 97% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 95% 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 expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 91
  • Accountability: 42
  • Sustainability: 2
  • Growth: 100

Detailed rating inputs

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: -72%; rating input score 1; 1st percentile among comparable filings
  • Total-asset coverage ratio: 0.14; rating input score 4; 4th percentile among comparable filings
  • Liabilities to assets ratio: 25.04; rating input score 0; 0th percentile among comparable filings
  • Officer compensation ratio: 10.3%; rating input score 3; 3rd percentile among comparable filings

Growth

  • Program expense growth: 3% per year; rating input score 100; 22nd percentile among comparable filings
  • Revenue growth: 2.9% per year; rating input score 100; 22nd percentile among comparable filings
  • Asset growth: 5.4% per year; rating input score 100; 39th percentile among comparable filings

Details

  • What they do: 2 programs and campaigns described on the official site · 1 operating location identified
  • Where the money goes: 100% of revenue deployed · 99.9% of spending went to programs
  • Governance: 0 of 5 board members independent · 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $100.5M in reported program spending
  • Leadership: top reported pay $2.7M · 13 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $16.6M reported
  • Consistency: 32 of 32 current checks pass
  • Schedules: 7 filed schedules · includes major donors, grants, and executive pay
  • Filing history: 15 filing years from 2009 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • Related organizations: 33 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: Operating margin scored 1/100.
  • High — Sustainability: Total-asset coverage ratio scored 4/100.
  • High — Sustainability: Liabilities to assets ratio scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 3/100.