Ochsner Health System

Nonprofit profile at a glance

EIN
205296918
IRS 990 coverage
2010–2017
Forms available
Form 990 2017
Location
New Orleans, LA, USA
Phone
5048424097
Rating
79
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Community Health Systems

Official website

Reported finances

Revenue
$198,462,330
Expenses
$195,684,892
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2017. Amounts in USD.

Leadership & pay

47 people listed

Source: IRS Form 990. Selected filing: tax year 2017. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

We serve, heal, lead, educate and innovate. Ochsner will be a global medical and academic leader who will save and change lives. We will shape the future of healthcare through our integrated health system, fueled by the passion and strength of our diversified team of physicians and employees.

What it reported doing in 2017

Ochsner Health System, a 501(c)(3) organization operating as a support organization under section 509(a)(3) of the Internal Revenue Code, provides management and support services to Ochsner Clinic Foundation (EIN 72-0502505). Both organizations are under common board and executive management personnel.

Operating model

Revenue model
Other-operating. 100% of the money available for current operations came from other operating 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: 88
  • Transparency & Controls: 84
  • Accountability: 67
  • Sustainability: 19
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 98.6%; rating input score 99
  • Program expense ratio: 100%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 10th percentile among comparable filings
  • Pay-setting controls: 4 of 6 controls in place; rating input score 67
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 81.6%; rating input score 82; 19th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Yes; rating input score 100

Accountability

  • Independent voting board: 52.4%; rating input score 52; 13th percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Fail
    • 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: 1.4%; rating input score 39; 39th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 8.7%; rating input score 4; 4th percentile among comparable filings

Growth

  • Program expense growth: 4% per year; rating input score 100; 42nd percentile among comparable filings
  • Revenue growth: 7.4% per year; rating input score 100; 70th percentile among comparable filings
  • Asset growth: -9.5% per year; rating input score 0; 2nd percentile among comparable filings

Details

  • Where the money goes: 98.6% of revenue deployed · 100% of spending went to programs
  • Governance: 11 of 21 board members independent · 8 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $195.7M in reported program spending
  • Leadership: top reported pay $3.7M · 47 people listed · 4 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $6.6M reported
  • Consistency: 32 of 33 current checks pass · 1 finding to review
  • Schedules: 8 filed schedules · includes grants, executive pay, and related organizations
  • Filing history: 8 filing years from 2010 to 2017
  • Contacts: How to reach this organization
  • Money network: 53 filed money-flow records
  • Related organizations: 40 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.

  • Review — Accountability: Independent voting board scored 52/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Moderate — Sustainability: Operating margin scored 39/100.
  • High — Growth: Asset growth scored 0/100.
  • Review — Accountability: Governance controls: Document-retention policy not reported.
  • High — Sustainability: Officer compensation ratio scored 4/100.
  • Review — Transparency & Controls: Domestic grant itemization did not reconcile in the filed values.