Sparrow Php

Nonprofit profile at a glance

EIN
364497604
IRS 990 coverage
2010–2017
Forms available
Form 990 2017
Location
Lansing, MI, USA
Phone
5173648400
Rating
29
Verdict
REVIEW
Rating confidence
Moderate
Sector
Community Health Systems

Official website

Reported finances

Revenue
$22,571
Expenses
$25,898
Assets
$0
Liabilities
$0

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

Leadership & pay

5 people listed

Executive titles in this filing

  • DENNIS REESE (PRESIDENT/CE)
  • DENNIS SWAN (PRES/CEO - S)

Highest reported compensation

  • DENNIS SWAN (PRES/CEO - S): $1,721,198 total reported compensation
  • DENNIS REESE (PRESIDENT/CE): $431,903 total reported compensation
  • GEORGE SCHNEIDER (CFO/COO - PH): $379,080 total reported compensation

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

Overview

Mission

Sparrow php's mission was to improve the health status of its members by facilitating quality, compassionate, accessible, and cost effective healthcare.

What it reported doing in 2017

Sparrow php (sphp)was a non-profit health maintenance organization (hmo). Sphp used a primary care concept for delivering health care in a health delivery network (hdn) structure. It arranged for the provision of comprehensive outpatient and inpatient medical and surgical services to members and their qualified dependents on the basis of a fixed prepaid sum without regard to the frequency or extent of services furnished to any particular member or qualified dependent. Sphp contracted with various hdns who provided healthcare services to members. Sphp's commitment was to develop and deliver quality managed care products at a reasonable cost for its members. Sphp was owned by physician health plan (php). Physicians health plan (php) is owned by sparrow health system (sparrow) and holds a certificate of authority as an hmo in the state of Michigan. Effective december 31, 2015 sparrow php sold 100 percent of its membership to an unaffiliated health plan. Php gained approval from the board of directors and commissioner of the department of insurance and financial services to merge sparrow php into php effective april 2017. Upon the merger, sparrow php no longer held a certificate of authority as an authorized health maintenance organization.

Operating model

Revenue model
Investment-supported. 100% of the money available for current operations came from recurring investment income.
Distribution model
No current program activity. The filing reports no program spending for the current year.

The verdict

REVIEW - The filed numbers largely add up. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 0
  • Transparency & Controls: 65
  • Accountability: 42
  • Sustainability: 20
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 0%; rating input score 0
  • Program expense ratio: 0%; rating input score 0
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 92.3%; rating input score 92; 22nd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: Limited
  • 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: -14.7%; rating input score 41; 41st percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 2; 2nd percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 1,328%; rating input score 1; 1st percentile among comparable filings

Growth

  • Program expense growth: -45.8% per year; rating input score 0; 11th percentile among comparable filings
  • Revenue growth: -16.3% per year; rating input score 0; 27th percentile among comparable filings
  • Asset growth: -7% per year; rating input score 0; 22nd percentile among comparable filings

Details

  • Where the money goes: 0% of revenue deployed · 0% of spending went to programs
  • Governance: 9 of 9 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $1.7M · 5 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 11 of 12 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes executive pay
  • Filing history: 6 filing years from 2010 to 2017
  • Contacts: How to reach this organization
  • Related organizations: 19 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 — Financial Efficiency: Mission deployment rate scored 0/100.
  • High — Financial Efficiency: Program expense ratio scored 0/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 2/100.
  • Review — Transparency & Controls: Schedule R controlled transactions itemized did not reconcile in the filed values.
  • Moderate — Sustainability: Operating margin scored 41/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 1/100.