St Mary's Duluth Clinic Health System

What it reported doing in 2024

St. Mary's duluth clinic health system, dba essentia health east, is organized and shall be operated exclusively for charitable, educational, scientific, and religious purposes exclusively for the benefit of, to perform the functions of, or to carry out the purposes of its supported organizations as listed on schedule a of form 990, all of which are organizations described in section 501(c)(3) of the internal revenue code of 1986. Essentia health east serves as the operational parent of the essentia health entities operating within the east region that serve a regional population in Minnesota and Wisconsin.the legal entities comprising essentia health east file separate form 990s. Essentia health east does not have any revenues or expenses not already reported on those 990s.essentia health east's hospitals and clinics employ approximately 6,700 full time equivalents. The hospitals had a total of 901 licensed beds which provided over 167,000 hospital patient days and nearly 465,000 outpatient visits during the fiscal year ended june 30, 2025. The clinics had over 1.3 million encounters during the same time period.during the fiscal year ended june 30, 2025, essentia health east's hospitals and clinics provided total community benefits of $143.8 million which included costs of providing charity care, costs in excess of medicaid payments, medicaid surcharge, minnesotacare tax, community building activities and services, and health professionals education.essentia health is the parent organization of an integrated health system that includes this organization and all entities that are owned or controlled, directly or indirectly, by essentia health (collectively, the "system or "essentia health").

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 66.7%; rating input score 67; 0th 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: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 83.3%; rating input score 83; 25th 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: Limited
• Total-asset coverage ratio: Limited
• Liabilities to assets ratio: Limited
• Officer compensation ratio: Limited

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: -24.1% per year; rating input score 0; 6th percentile among comparable filings