Usc Health System

Nonprofit profile at a glance

EIN
850666499
IRS 990 coverage
2021–2024
Forms available
Form 990 2024, Form 990-EZ 2020
Location
Los Angeles, CA, USA
Phone
6179517000
Rating
76
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Health, General and Financing

Reported finances

Revenue
$13,144,449
Expenses
$41,627,014
Assets
$223,297,403
Liabilities
$786,313,412

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

Leadership & pay

24 people listed

Executive titles in this filing

  • CAROL L FOLT (UNIVERSITY PRESIDENT)
  • ROD HANNERS (DIRECTOR/CEO & PRESIDENT)

Highest reported compensation

  • CAROL L FOLT (UNIVERSITY PRESIDENT): $4,301,294 total reported compensation
  • STEVEN D SHAPIRO MD (SVP, HEALTH AFFAIRS): $3,285,046 total reported compensation
  • ROD HANNERS (DIRECTOR/CEO & PRESIDENT): $2,498,697 total reported compensation

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

Overview

Mission

See schedule o

What it reported doing in 2024

The corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the nonprofit public benefit corporation law for public and charitable purposes. The corporation is organized for the following exclusively charitable, scientific and educational purposes within the meaning of section 501 (c)(3) of the internal revenue code of 1986, as now in effect or as may hereafter be amended (the "code"), and section 214 of the California revenue and taxation code, as now in effect or as may hereafter be amended (the "r&tc"). The corporation is organized and shall be operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of the university of southern California, usc care medical group, inc., keck medical center of usc, usc verdugo hills hospital, and usc arcadia hospital. In this capacity, the corporation shall: 1) organize, coordinate, direct and operate an integrated health care system for the delivery of health care services by those hospitals and other health care providers that become affiliated with, or related to, the corporation; 2) enhance the accessibility, quality and cost-effectiveness of health care services related to the communities served by the corporation and its affiliates; and 3) encourage and participate in activities designed and carried on to provide and improve the general public health and health of patients served by the corporation and its affiliates.

Operating model

Revenue model
Affiliate-supported. 67% of the money available for current operations came from contributions from related organizations.
Distribution model
Cannot be determined from the filing. The filing does not provide enough consistent spending detail to tell whether the nonprofit works directly or through others.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 64
  • Accountability: 72
  • Sustainability: 30
  • Growth: 100

Detailed rating inputs

Financial Efficiency

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

Transparency & Controls

  • Consistency checks: 91.7%; rating input score 92; 6th percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 66.7%; rating input score 67; 11th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -216.7%; rating input score 0; 0th percentile among comparable filings
  • Total-asset coverage ratio: 5.36; rating input score 85; 85th percentile among comparable filings
  • Liabilities to assets ratio: 3.52; rating input score 1; 1st percentile among comparable filings
  • Officer compensation ratio: 5.6%; rating input score 45; 45th percentile among comparable filings

Growth

  • Program expense growth: 81.9% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: 40.4% per year; rating input score 100; 98th percentile among comparable filings
  • Asset growth: 42.7% per year; rating input score 100; 98th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 100% of spending went to programs
  • Governance: 8 of 12 board members independent · 7 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $118.5M in reported program spending
  • Leadership: top reported pay $4.3M · 24 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $45.9M reported
  • Consistency: 29 of 30 current checks pass · 1 finding to review
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 4 filing years from 2021 to 2024
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • Related organizations: 30 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 0/100.
  • Review — Accountability: Governance controls: 2 of 9 not reported.
  • High — Sustainability: Liabilities to assets ratio scored 1/100.
  • Moderate — Transparency & Controls: Series program expenses within total did not reconcile in the filed values.
  • Moderate — Sustainability: Officer compensation ratio scored 45/100.