Children's Mercy

What it reported doing in 2024

Children's Mercy Hospital (CM) is dedicated to becoming a leader in pediatric translational research. A strategic planning initiative established the Children's Mercy Research Institute (CMRI) to focus on research and research infrastructure. Through the generosity of two philanthropic gifts totaling $150 million, the Hospital has built a nine story, 375,000 square foot facility enabling research scientists to gain access to state-of-the-art research technology as well as dry lab and wet lab space to support that research. The building includes an auditorium for presentations to train medical school students and inform the public about pediatric healthcare innovations that are being developed and created by research scientists and physicians here in collaboration with others throughout the nation and world. In addition these generous gifts will help support funding for scientific programs and recruitment. Research conducted today at CM includes basic science and clinical research in numerous areas including pharmacology, cancer, cardiology, genetic diseases and health outcomes. Areas of research strength include Precision Therapeutics, Genomics Medicine, Population Health, Emerging Infections and Health Care Innovation. During the year ended June 30, 2025 there were more than 823 active sponsored research projects. The Children's Mercy Research Institute occupies about 16% of the space on the main campus and 7% of the total annual operating budget. Children's Mercy spent $107 million in the year ended June 30, 2025 on research and per information from the NIH Reporter received more than $12.4 Million in NIH funding in this same time period. More than 700+ publications were accepted and/or published. The Children's Mercy Research Institute provides seed funding to investigators with internal competitive grant programs such as the Midwest Cancer Alliance and the Katherine Berry Richardson (KBR) Fund, with expectations that this funding will lead to applications for externally funded grant programs in the future.

Financial Efficiency

• Mission deployment rate: 68%; rating input score 68
• Program expense ratio: 76.8%; rating input score 77
• Fundraising efficiency: $10.95 raised per $1 spent on fundraising; rating input score 44; 44th percentile among comparable filings

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: Missing
  • Written employment contract: Pass
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: 3 of 8 controls in place; rating input score 38
  • Claims monitoring procedures: Pass
  • Requires narrative reports: Limited
  • Conducts field audits: Limited
  • May suspend future funding: Limited
  • Requires financial reports: Pass
  • Conducts site visits: Limited
  • Requires grant agreements: Pass
  • May require repayment: Limited
• Grant itemization coverage: 100%; rating input score 100; 55th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 75%; rating input score 75; 24th 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: 14.3%; rating input score 81; 81st percentile among comparable filings
• Total-asset coverage ratio: 1.89; rating input score 61; 61st percentile among comparable filings
• Liabilities to assets ratio: 0.18; rating input score 71; 71st percentile among comparable filings
• Officer compensation ratio: 1%; rating input score 74; 74th percentile among comparable filings

Growth

• Program expense growth: 5% per year; rating input score 100; 40th percentile among comparable filings
• Revenue growth: 7% per year; rating input score 100; 61st percentile among comparable filings
• Asset growth: 9.5% per year; rating input score 100; 68th percentile among comparable filings