Verity Business Services

Nonprofit profile at a glance

EIN
510659139
IRS 990 coverage
2014–2020
Forms available
Form 990 2020
Location
Woodland Hills, CA, USA
Phone
8185321020
Rating
57
Verdict
MIXED
Rating confidence
Moderate
Sector
Community Improvement, Capacity Building N.E.C.

Official website

Reported finances

Revenue
$2,256,437
Expenses
$3,202,940
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

13 people listed

Highest reported compensation

  • RICHARD ADCOCK (EX-OFFICIO MEMBER (THRU 9/2020)): $2,171,620 total reported compensation
  • ANTHONY ARMADA (BOARD MEMBER (THRU 8/2020)): $702,406 total reported compensation
  • REGINA HERNANDEZ (VP, REVENUE CYCLE (THRU 9/2020)): $575,962 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

(continued from part iii)verity business services ("vbs") is organized to support the purposes of verity health system of California, inc. ("vhs") by (i) arranging for the provision of healthcare services, including the operation and maintenance of ambulatory care clinics and related facilities, (ii) promoting research related to healthcare services, (iii) providing healthcare services to all persons without regard to their ability to pay, (iv) promoting the general health of the communities served by vhs and its affiliated healthcare facilities and (v) providing financial and other forms of assistance for the benefit of other healthcare facilities affiliated with vhs.the entity is in the process of winding down for eventual dissolution.

What it reported doing in 2020

Vbs provides essential services for the affiliated hospitals of vhs, including st. Francis medical center, st. Vincent medical center, saint louise regional hospital, o'connor hospital, and seton medical center. These services include: patient financial services (including implementing the financial provisions of the hospitals' charity care policies); accounting for the financial value of the community benefits provided by the hospitals; providing general accounting support; payroll; accounts payable; budgeting; decision support and financial analysis; cost report preparation; and similar services essential to the operations of the hospitals affiliated with vhs. The entity is in the process of winding down for eventual dissolution.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

MIXED - 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 few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence.

Rating breakdown

  • Financial Efficiency: 80
  • Transparency & Controls: 60
  • Accountability: 31
  • Sustainability: 1
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 71.9%; rating input score 72
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd 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: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 3rd percentile among comparable filings
  • Governance controls: 6 of 9 controls in place; rating input score 75
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Limited
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -41.9%; rating input score 2; 2nd percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 47.6%; rating input score 1; 1st percentile among comparable filings

Growth

  • Program expense growth: -1.2% per year; rating input score 0; 20th percentile among comparable filings
  • Revenue growth: -1.2% per year; rating input score 0; 13th percentile among comparable filings
  • Asset growth: 18.8% per year; rating input score 100; 82nd percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 71.9% of spending went to programs
  • Governance: 0 of 1 board members independent · 6 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $2.3M in reported program spending
  • Leadership: top reported pay $2.2M · 13 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 4 contractors listed · $1.8M reported
  • Consistency: 24 of 24 current checks pass
  • Schedules: 5 filed schedules · includes executive pay
  • Filing history: 6 filing years from 2014 to 2020
  • Contacts: How to reach this organization
  • Money network: 6 filed money-flow records
  • Related organizations: 15 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 — Accountability: Independent voting board scored 0/100.
  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • High — Sustainability: Operating margin scored 2/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.
  • Review — Accountability: Governance controls: Independent financial-statement audit not reported.
  • High — Sustainability: Officer compensation ratio scored 1/100.