Physicians Organization at Children's Hospital Inc

Nonprofit profile at a glance

EIN
043266103
IRS 990 coverage
2016–2024
Forms available
Form 990 2024, Form 990-T 2024
Location
Boston, MA, USA
Phone
6179194078
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate

Reported finances

Revenue
$107,833,195
Expenses
$116,876,662
Assets
$97,341,174
Liabilities
$73,150,201

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

Leadership & pay

32 people listed

Executive titles in this filing

  • RICHARD G BACHUR MD (PRESIDENT)

Highest reported compensation

  • PEDRO J DEL NIDO MD (DIRECTOR): $3,554,490 total reported compensation
  • KEVIN CHURCHWELL MD (DIRECTOR): $3,447,248 total reported compensation
  • MINIDER S KOCHER MD (DIRECTOR): $2,676,100 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The organization operates exclusively for the benefit of the charitable purposes of boston children's hospital (the hospital) and the affiliated foundations. It works jointly with the hospital and the foundations in developing and coordinating an (see schedule o) integrated child health system and to foster cost effective, quality patient care within that system. The organization negotiates and enters into agreements with insurers, payors, managed care plans, and fringe benefit plans on behalf of its member foundations.

What it reported doing in 2024

The physicians organization at children's hospital, inc. (the organization) sponsors health, dental, life, and disability benefit plans for the member foundations. The health and dental plans are self-funded with internal premiums based upon the expected utilization of the plan members. Any surplus or deficit generated at the plan year-end is applied to the calculation when determining the subsequent year's premiums. Life and disability revenue is directly offset by premiums paid to the insurance carriers.

Operating model

Revenue model
Earned-program. 76% of the money available for current operations came from fees and other program revenue.
Distribution model
Hybrid. The nonprofit split its reported program spending across 58% for direct work, 0% for grants, and 42% for member benefits.

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: 87
  • Transparency & Controls: 89
  • Accountability: 44
  • Sustainability: 21
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 93%; rating input score 93
  • 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: Pass
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 3.6%; rating input score 4; 8th 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: -8.4%; rating input score 9; 9th percentile among comparable filings
  • Total-asset coverage ratio: 0.83; rating input score 33; 33rd percentile among comparable filings
  • Liabilities to assets ratio: 0.75; rating input score 19; 19th percentile among comparable filings
  • Officer compensation ratio: 2.7%; rating input score 43; 43rd percentile among comparable filings

Growth

  • Program expense growth: 8.8% per year; rating input score 100; 69th percentile among comparable filings
  • Revenue growth: 7.3% per year; rating input score 100; 62nd percentile among comparable filings
  • Asset growth: 7.8% per year; rating input score 100; 57th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 93% of spending went to programs
  • Governance: 1 of 28 board members independent · 9 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $108.7M in reported program spending
  • Leadership: top reported pay $3.6M · 32 people listed · 5 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $5.2M reported
  • Consistency: 28 of 28 current checks pass
  • Schedules: 7 filed schedules · includes major donors and executive pay
  • Filing history: 9 filing years from 2016 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 17 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Accountability: Independent voting board scored 4/100.
  • High — Sustainability: Operating margin scored 9/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 33/100.
  • High — Sustainability: Liabilities to assets ratio scored 19/100.
  • Moderate — Sustainability: Officer compensation ratio scored 43/100.