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← Memorial Hermann Accountable Care Organization

Form 990 for tax year 2022

Filed by Memorial Hermann Accountable Care Organization.

Totals

Total revenue
$11,446,170
Total expenses
$13,586,602
Contributions and grants received
$0
Grants paid
$0
Program service revenue
$11,446,170
Investment income
$0
Other revenue
$0
Total assets, end of year
$150,795
Total liabilities, end of year
$73,687
Net assets or fund balances, end of year
$77,108
Program services expenses (Part IX)
$12,576,548
Management and general expenses
$1,010,054
Fundraising expenses
$0
Program service expenses (Part III)
$12,576,548

Program services were 92.6% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 2a · Program service revenue: MEDICARE SHARED SAVINGS PROGRAM

    total -$5,694,359 · related or exempt -$5,694,359

  • 2b · Program service revenue: CARE COORDINATION AND MANAGEMENT

    total $17,140,529 · related or exempt $17,140,529

  • 3 · Investment income

    total $0

  • 4 · Income from investment of tax-exempt bond proceeds

    total $0

  • 5 · Royalties

    total $0

  • 6c · Rental income or loss

    real property $0 · personal property $0

  • 6d · Net rental income or loss

    total $0

  • 7d · Net gain or loss

    total $0

  • 8a · Fundraising events: gross income

    $0

  • 8b · Fundraising events: direct expenses

    $0

  • 8c · Net income from fundraising events

    total $0

  • 9a · Gaming: gross income

    $0

  • 9b · Gaming: direct expenses

    $0

  • 9c · Net income from gaming

    total $0

  • 10a · Gross sales of inventory

    $0

  • 10b · Cost of goods sold

    $0

  • 10c · Net income from sales of inventory

    total $0

  • 11e · Other revenue, total

    $0

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $0

  • 2 · Grants to domestic individuals

    total $0

  • 3 · Grants to foreign organizations and individuals

    total $0

  • 4 · Benefits paid to or for members

    total $0

  • 5 · Compensation of officers, directors and key employees

    total $0

  • 6 · Compensation of disqualified persons

    total $0

  • 7 · Other salaries and wages

    total $0

  • 8 · Pension plan contributions

    total $0

  • 9 · Other employee benefits

    total $0

  • 10 · Payroll taxes

    total $0

  • 11a · Fees: management

    total $0

  • 11b · Fees: legal

    total $693,549 · management and general $693,549

  • 11c · Fees: accounting

    total $71,667 · management and general $71,667

  • 11d · Fees: lobbying

    total $0

  • 11e · Fees: professional fundraising services

    total $0

  • 11f · Fees: investment management

    total $0

  • 11g · Fees: other

    total $13,160,325 · program services $12,985,579 · management and general $174,746

  • 12 · Advertising and promotion

    total $0

  • 13 · Office expenses

    total $8,573 · management and general $8,573

  • 14 · Information technology

    total $61,519 · management and general $61,519

  • 15 · Royalties

    total $0

  • 16 · Occupancy

    total $0

  • 17 · Travel

    total $0

  • 18 · Travel or entertainment for public officials

    total $0

  • 19 · Conferences, conventions and meetings

    total $0

  • 20 · Interest

    total $0

  • 21 · Payments to affiliates

    total $0

  • 22 · Depreciation, depletion and amortization

    total $0

  • 23 · Insurance

    total $0

  • 24a · Other expenses: STATE FRANCHISE TAX

    total -$416,931 · program services -$416,931

  • 24b · Other expenses: MEMBERSHIPS

    total $7,900 · program services $7,900

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $0 · end of year $0

  • 2 · Savings and temporary cash investments

    beginning of year $0 · end of year $0

  • 3 · Pledges and grants receivable

    beginning of year $0 · end of year $0

  • 4 · Accounts receivable

    beginning of year $5,696,309 · end of year $500

  • 5 · Loans and receivables from officers and key people

    beginning of year $0 · end of year $0

  • 6 · Loans and receivables from disqualified persons

    beginning of year $0 · end of year $0

  • 7 · Other notes and loans receivable

    beginning of year $0 · end of year $0

  • 8 · Inventories for sale or use

    beginning of year $0 · end of year $0

  • 9 · Prepaid expenses and deferred charges

    beginning of year $49,704 · end of year $0

  • 10c · Land, buildings and equipment, net

    beginning of year $0 · end of year $0

  • 11 · Investments: publicly traded securities

    beginning of year $0 · end of year $0

  • 12 · Investments: other securities

    beginning of year $0 · end of year $0

  • 13 · Investments: program-related

    beginning of year $0 · end of year $0

  • 14 · Intangible assets

    beginning of year $0 · end of year $0

  • 15 · Other assets

    beginning of year $0 · end of year $150,295

  • 17 · Accounts payable and accrued expenses

    beginning of year $286,192 · end of year $73,687

  • 18 · Grants payable

    beginning of year $0 · end of year $0

  • 19 · Deferred revenue

    beginning of year $0 · end of year $0

  • 20 · Tax-exempt bond liabilities

    beginning of year $0 · end of year $0

  • 21 · Escrow or custodial account liability

    beginning of year $0 · end of year $0

  • 22 · Loans and payables to officers and key people

    beginning of year $0 · end of year $0

  • 23 · Secured mortgages and notes payable

    beginning of year $0 · end of year $0

  • 24 · Unsecured notes and loans payable

    beginning of year $0 · end of year $0

  • 25 · Other liabilities

    beginning of year $3,242,281 · end of year $0

  • 27 · Net assets without donor restrictions

    beginning of year $2,217,540 · end of year $77,108

  • 28 · Net assets with donor restrictions

    beginning of year $0 · end of year $0

Mission and programs · 2022

Mission

MEMORIAL HERMANN ACCOUNTABLE CARE ORGANIZATION (MHACO) IS DEDICATED TO PROMOTING SOCIAL WELFARE BY ACHIEVING THE GOALS OF THE THREE-PART AIM OF THE MEDICARE SHARED SAVINGS PROGRAM: LOWER COST, IMPROVED CARE, AND BETTER HEALTH. MHACO SEEKS TO IMPROVE HEALTH CARE FOR INDIVIDUALS BY (1) INVESTING IN THE PRIMARY CARE PHYSICIANS WHO ARE DIRECTLY ACCOUNTABLE FOR THE PATIENT POPULATION, (2) INVESTING IN TECHNOLOGY INNOVATIONS AND HEALTH CARE PROCESSES MANAGEMENT, POPULATION MANAGEMENT, AND HIGH-RISK PATIENT IDENTIFICATION, AND (3) LOWERING THE GROWTH OF EXPENDITURES BY DRIVING HIGH QUALITY, CONSISTENT CARE THROUGH MHACOS NETWORK OF CARE PROVIDERS, HOSPITALS, AND OTHER HEALTHCARE FACILITIES. AS A RESULT, MHACO IS ADVANCING HEALTH AND SOCIAL WELFARE OF THE COMMUNITY BY SEAMLESSLY BRIDGING CARE DELIVERY, PHYSICIANS AND HEALTH SOLUTIONS.

Activities or mission (Part I)

Memorial Hermann Accountable Care Organization is dedicated to promoting social welfare by achieving the goal of the Medicare Shared Savings Program.

  • At Memorial Hermann, we believe that healthcare providers should be accountable for the care they deliver. Memorial Hermann Accountable Care Organization (MHACO) is committed to delivering high-quality care in a cost-effective manner. In addition to the health system's 17 hospitals, numerous specialty institutes and advanced outpatient facilities, MHACO consists of a network of affiliated physicians that unite independent and employed physicians of every specialty throughout the Houston area in a common commitment to quality and accountability. These physicians practice evidence-based medicine proven to result in better clinical outcomes and shorter hospital stays-as well as cost savings for healthcare consumers. At Memorial Hermann, we're advancing health in our community by seamlessly bridging care delivery, physicians and health solutions. Our hospitals and affiliated physicians utilize information technology and specialized tools to increase care effectiveness and safety while getting patients more engaged in managing their health. Through a process called clinical integration, these healthcare providers share information about patient care with each other. This allows them to deliver care that is more coordinated and therefore, more cost-effective. Each healthcare provider treating a patient receives a more complete picture of that patient's health so physicians and patients can make better, more informed healthcare decisions. In addition to delivering care that leads to shorter hospital stays, MHACO physicians aim to keep patients out of the hospital in the first place. Through the use of preventive medicine and a team-based, proactive approach, MHACO physicians can identify patients at risk of illness before they become ill. For patients with chronic conditions, MHACO offers a full continuum of care that leads to better clinical outcomes and controls healthcare costs. Care Coordination teams focuses efforts on discharge planning and follow-up needs for any patient assigned to the ACO and admitted in a Memorial Hermann hospital as an in-patient. MHACO utilizes data analytics to provide meaningful actionable information to physicians. MHACO's goal is to improve the health of the Greater Houston community through increased access, lower costs, and improved care. According to CMS reports, Memorial Hermann Accountable Care Organization was the top performing MSSP ACO in terms of generated savings for performance years 2013, 2014, 2015, #8 out of 432 in 2016, #11 of 472 in 2017, and #24 of 548 in 2018.

    Expenses $12,576,548 · Revenue $11,446,170

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • David L Callender MD

    CEO/President

    Total calculated
    $4,017,427
    From this org
    $0
    From related orgs
    $3,539,897
    Other
    $477,530
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,623,035 related
    Bonus
    $0 + $1,872,998 related
    Other
    $0 + $43,864 related
    Deferred
    $0 + $464,845 related
    Nontaxable benefits
    $0 + $12,685 related
    Filer's total
    $0 + $4,017,427 related

  • Deborah Gordon

    EVP, CAO/CLO

    Total calculated
    $1,870,900
    From this org
    $0
    From related orgs
    $1,617,976
    Other
    $252,924
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $773,062 related
    Bonus
    $0 + $820,079 related
    Other
    $0 + $24,835 related
    Deferred
    $0 + $222,672 related
    Nontaxable benefits
    $0 + $30,252 related
    Filer's total
    $0 + $1,870,900 related

  • James McCarthy MD

    EVP, Chief Physician Executive

    Total calculated
    $1,837,496
    From this org
    $0
    From related orgs
    $1,586,711
    Other
    $250,785
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $777,730 related
    Bonus
    $0 + $784,146 related
    Other
    $0 + $24,835 related
    Deferred
    $0 + $223,081 related
    Nontaxable benefits
    $0 + $27,704 related
    Filer's total
    $0 + $1,837,496 related

  • Alec King

    EVP, CFO

    Total calculated
    $1,625,762
    From this org
    $0
    From related orgs
    $1,388,329
    Other
    $237,433
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $790,362 related
    Bonus
    $0 + $575,562 related
    Other
    $0 + $22,405 related
    Deferred
    $0 + $209,771 related
    Nontaxable benefits
    $0 + $27,662 related
    Filer's total
    $0 + $1,625,762 related

  • Robert McStay

    SVP, Chief Compliance Officer

    Total calculated
    $653,539
    From this org
    $0
    From related orgs
    $557,071
    Other
    $96,468
    Hours/week
    1 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $312,311 related
    Bonus
    $0 + $222,500 related
    Other
    $0 + $22,260 related
    Deferred
    $0 + $68,439 related
    Nontaxable benefits
    $0 + $28,029 related
    Filer's total
    $0 + $653,539 related

  • J Kevin Giglio MD

    SVP, Chief Medical Officer

    Total calculated
    $167,130
    From this org
    $0
    From related orgs
    $167,130
    Other
    $0
    Hours/week
    1 + 1 related

    Schedule J breakdown matched by us

    Base
    $0 + $167,130 related
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $0 + $167,130 related

  • Ira Flax MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Grover Jackson

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Ankur Doshi MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Roland Garcia Jr

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • John Esquivel

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Deborah Cannon

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Phillip Chang MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Chistophe Salcedo MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Laura Aronson MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

  • Brian Heaps MD

    Director

    Total calculated
    $0
    Hours/week
    1 + 1 related

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Form 990 of other organizations
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan
  • 7 · Other non-fixed payments

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

Form 990 Schedule J Line 4B
SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: MEMORIAL HERMANN HEALTH SYSTEM SPONSERS TWO SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS; MEMORIAL HERMANN SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP); EXECUTIVE DEFERRED COMPENSATION PLAN (EDCP). THE FOLLOWING INDIVIDUAL(S)PARTICIPATED IN AND/OR RECEIVED PAYMENTS (NOTED IN PARENTHESIS FOR SERP AND EDCP RESPECTIVELY) FROM MEMORIAL HERMANN HEALTH SYSTEM'S SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN DURING THE TAX YEAR: DEBORAH GORDON ($0/$188,242.21) JAMES MCCARTHY MD ($0/$151,198.27)
FORM 990 SCHEDULE J PART I LINE 7
MEMORIAL HERMANN HEALTH SYSTEM HAS TWO INCENTIVE PROGRAMS IN WHICH CERTAIN MANAGEMENT INDIVIDUALS MAY PARTICIPATE, THE MANAGEMENT INCENTIVE BONUS AND LONG TERM INCENTIVE PLAN. THE MANAGEMENT INCENTIVE BONUS IS AN ANNUAL INCENTIVE DESIGNED TO ATTRACT AND RETAIN KEY LEADERS AND ESTABLISH GREATER ACCOUNTABILITY AND ALIGNMENT TO BUSINESS PERFORMANCE. PAYMENT AMOUNT TARGETS ARE BASED UPON A PERCENTAGE OF BASE SALARY, DEVELOPED BY INDEPENDENT THIRD PARTY EXPERTS. MEMORIAL HERMANN'S COMPENSATION COMMITTEE AND GOVERNING BOARD HAS FINAL DISCRETION WHETHER TO AWARD AMOUNTS TO INDIVIDUALS AND TO ADJUST THE PAYMENT AT THEIR SOLE DISCRETION. THE LONG TERM INCENTIVE PLAN IS BASED ON A THREE-YEAR PERFORMANCE PLAN, WHICH REWARDS KEY SENIOR LEADERS BY ALIGNING THEIR COMPENSATION TO STRATEGIC INITIATIVES OF MEMORIAL HERMANN. PERFORMANCE TARGETS ARE BASED UPON A PERCENTAGE OF THE INDIVIDUAL'S BASE SALARY AND ARE DEVELOPED BY INDEPENDENT THIRD PARTY EXPERTS USING MARKET COMPETITIVE DATA WITHIN THE GUIDES OF REASONABLENESS. AT THE END OF A THREE-YEAR PERIOD, MEMORIAL HERMANN'S COMPENSATION COMMITTEE REVIEWS PERFORMANCE AGAINST GOALS TO DETERMINE APPROPRIATE PAYOUT. MEMORIAL HERMANN'S COMPENSATION COMMITTEE AND GOVERNING BOARD HAS FINAL DISCRETION WHETHER TO AWARD AMOUNTS TO INDIVIDUALS AND TO ADJUST THE PAYMENT AT THEIR SOLE DISCRETION.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

  • MHUSP Surgery Centers III LLP

    n/a · AMB SURGERY CTR · TX

    Directly controlled by na

  • MH Katy Rehab Hospital

    n/a · REHABILITATION · TX

    Directly controlled by na

  • MHUSP Surgery Centers IV LLP

    n/a · AMB SURGERY CTR · TX

    Directly controlled by na

  • Virtus Memorial WLZ LLC

    N/A · Investment · DE

    Directly controlled by NA

  • Intrepid Private Equity SPV-NMP LP

    N/A · Investment · NY

    Directly controlled by NA

  • MHUSP Surgery Centers VI LLC

    N/A · AMB SURGERY CTR · TX

    Directly controlled by NA

  • MHUSP Surgery Centers VII LLC

    N/A · Amb Surgery Ctr · TX

    Directly controlled by NA

  • SP Taum Sauk Mountain LLC

    N/A · Investment · TX

    Directly controlled by NA

  • Redbird Vida Co- Invest LP

    N/A · Investment · FL

    Directly controlled by NA

  • Community First Development LP

    N/A · Investment · TX

    Directly controlled by NA

  • SL3 Trinity Holdings LLC

    N/A · Investment · TX

    Directly controlled by NA

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

  • The Health Professionals Ins Company LTD

    Foreign · INVESTMENT · CJ

    Directly controlled by na

  • MHMD

    C Corp · INTEGRATED PN · TX

    Directly controlled by na

  • Memorial Hermann Health Solutions

    C Corp · 3RD PARTY ADMIN · TX

    Directly controlled by na

  • Memorial Hermann Health Insurance Co

    C Corp · Insurance · TX

    Directly controlled by na

  • Memorial Hermann Health Plan Inc

    C Corp · Insurance · TX

    Directly controlled by NA

  • Memorial Hermann Health Plan Holdings LL

    C Corp · HOLDING COMPANY · TX

    Directly controlled by NA

  • MH Commercial Health Plan Inc

    C Corp · Insurance · TX

    Directly controlled by na

  • Memorial Hermann Ventures LLC

    C Corp · HOLDING COMPANY · TX

    Directly controlled by na

  • Memorial Hermann Urgent Care PLLC

    C Corp · Urgent Care CTR · TX

    Directly controlled by NA

  • MH Holdco LLC

    C Corp · Holding Company · TX

    Directly controlled by NA

Provenance

Return type
form_990
Tax year
2022
Filed
15 May 2024
IRS schema version
2022v5.0
Source object
202441319349304769

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