Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: PATIENT SERVICES

  total $123,115,887 · related or exempt $123,115,887

• 2b · Program service revenue: I/C HOSPITAL ASSOC REV

  total $15,339,065 · related or exempt $15,339,065

• 2c · Program service revenue: QUALITY METRICS BONUS

  total $3,899,987 · related or exempt $3,899,987

• 2d · Program service revenue: CONCIERGE AND RELATED

  total $1,785,360 · related or exempt $1,785,360

• 2e · Program service revenue: MEDICAL EDUCATION REV

  total $101,000 · related or exempt $101,000

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $4,843,420 · program services $4,843,420

• 7 · Other salaries and wages

  total $110,544,826 · program services $110,544,826

• 8 · Pension plan contributions

  total $5,998,349 · program services $5,998,349

• 9 · Other employee benefits

  total $12,971,350 · program services $12,971,350

• 10 · Payroll taxes

  total $5,815,716 · program services $5,815,716

• 11a · Fees: management

  total $4,917,644 · management and general $4,917,644

• 11g · Fees: other

  total $3,998,583 · program services $3,909,313 · management and general $89,270

• 12 · Advertising and promotion

  total $410,877 · management and general $410,877

• 13 · Office expenses

  total $2,717,756 · program services $2,717,756

• 14 · Information technology

  total $261 · program services $261

• 16 · Occupancy

  total $18,407,865 · program services $18,407,865

• 17 · Travel

  total $395,139 · program services $395,109 · management and general $30

• 19 · Conferences, conventions and meetings

  total $87,131 · program services $87,131

• 22 · Depreciation, depletion and amortization

  total $4,610,598 · program services $4,478,170 · management and general $132,428

• 23 · Insurance

  total $1,672,545 · program services $1,672,545

• 24a · Other expenses: MEDICAL SUPPLIES

  total $13,676,254 · program services $13,676,254

• 24b · Other expenses: INTERCOMPANY EXPENSE

  total $13,496,110 · program services $13,496,110

• 24c · Other expenses: PHYSICIAN RESEARCH & ED

  total $617,751 · program services $617,751

• 24d · Other expenses: EMPLOYEE RECOGNITION

  total $51,079 · program services $51,079

Balance sheet

Part X, book values.

• 4 · Accounts receivable

  beginning of year $4,734,286 · end of year $5,937,810

• 9 · Prepaid expenses and deferred charges

  beginning of year $287,371 · end of year $241,423

• 10a · Land, buildings and equipment: cost or other basis

  $70,843,519

• 10b · Land, buildings and equipment: accumulated depreciation

  $26,174,696

• 10c · Land, buildings and equipment, net

  beginning of year $42,982,772 · end of year $44,668,823

• 15 · Other assets

  beginning of year $2,306,103 · end of year $654,101

• 17 · Accounts payable and accrued expenses

  beginning of year $13,576,246 · end of year $24,073,528

• 25 · Other liabilities

  beginning of year $366,540,760 · end of year $418,227,058

• 27 · Net assets without donor restrictions

  beginning of year -$329,806,474 · end of year -$390,798,429

The filer's explanations (Part III)

PART I, LINE 3

THE CEO OF THIS ORGANIZATION IS EMPLOYED BY A RELATED ORGANIZATION THAT UTILIZED THE FOLLOWING ITEMS TO ESTABLISH COMPENSATION: (1)COMPENSATION COMMITTEE; (2)INDEPENDENT COMPENSATION CONSULTANT; (3)COMPENSATION SURVEY OR STUDY; (4)APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINE 4A

HOUSTON METHODIST (HM) HAS A FORMAL SEVERANCE PLAN. ELIGIBLE EMPLOYEES INCLUDE ALL FULL-TIME AND PART-TIME (NOT TEMPORARY OR PRN) STAFF INCLUDING HOURLY STAFF UP THROUGH SENIOR VICE PRESIDENTS PROVIDED THEY WORK AT LEAST 20 HOURS PER WEEK AND ARE NOT OTHERWISE COVERED BY A PHYSICIAN EMPLOYMENT AGREEMENT. THE PLAN ONLY PROVIDES SALARY AND BENEFITS IN THE EVENT AN ELIGIBLE EMPLOYEE IS INVOLUNTARILY TERMINATED DUE TO THE ELIMINATION OF THEIR POSITION OR IF THEIR CURRENT POSITION IS SIGNIFICANTLY IMPACTED BY AN ORGANIZATIONAL RESTRUCTURING OR CHANGE IN REQUIREMENT AND A COMPARABLE POSITION IS NOT AVAILABLE WITHIN THE ORGANIZATION. THE ELIGIBLE PERSON MUST ALSO SIGN A TERMINATION AGREEMENT IN ORDER TO RECEIVE SALARY CONTINUATION AND BENEFITS UNDER THE PLAN TO WHICH THEY WOULD NOT NORMALLY BE ELIGIBLE TO RECEIVE UNDER A VOLUNTARY RESIGNATION. NO SEVERANCE PAYMENT WAS MADE FROM THIS PLAN DURING 2024.

PART I, LINE 4B

THE SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN (SERP) IS A NON-QUALIFIED EMPLOYER FUNDED PLAN. CONTRIBUTIONS ARE MADE ANNUALLY INTO A TAX DEFERRED ACCOUNT AND ARE CONSIDERED TAXABLE UPON VESTING (I.E. COMPLETION OF THREE YEARS OF VESTING SERVICE). ONCE VESTED, EACH YEAR'S SUBSEQUENT CONTRIBUTION IS TAXABLE WITHIN THE CALENDAR YEAR IN WHICH THE DEPOSIT WAS MADE. ACCOUNT BALANCES CANNOT BE ACCESSED UNTIL RETIREMENT OR TERMINATION (WHICHEVER OCCURS FIRST) AND MAY BE SUBJECT TO NON-REVOCABLE DISTRIBUTION OPTIONS SELECTED UPON EMPLOYMENT. NO PAYMENT WAS MADE FROM THIS PLAN FOR 2024.

PART I, LINE 7

THIS ORGANIZATION PROVIDES VARIABLE COMPENSATION OPPORTUNITY THROUGH AN ANNUAL MANAGEMENT INCENTIVE PLAN. EMPLOYEES AT THE SUPERVISOR LEVEL AND ABOVE MAY BE ELIGIBLE TO PARTICIPATE. THE ANNUAL INCENTIVE PROGRAM IS BASED ON SYSTEM AND OPERATING ENTITY LEVEL PERFORMANCE IN THE AREAS OF QUALITY IMPROVEMENT OUTCOMES, PATIENT SATISFACTION AND FINANCIAL PERFORMANCE. IN ADDITION, A PORTION OF THE PAYOUT PERCENTAGE IS BASED ON GOALS THAT ARE SPECIFIC TO THE PARTICIPANTS' MANAGEMENT ROLES AT THE DIVISION OR DEPARTMENT LEVEL INCLUDING BUT NOT LIMITED TO SUCH METRICS AS OPERATING RESULTS, QUALITY AND SAFETY IMPROVEMENTS, OR CUSTOMER SATISFACTION MEASURES. DETERMINATION OF A PARTICIPANT'S PERCENTAGE OF THE POTENTIAL BONUS PAYOUT (PAID AS A PERCENT OF BASE SALARY) IS BASED ON WHETHER THE INDIVIDUAL ATTAINS AGREED UPON GOALS FOR THEIR AREA OF RESPONSIBILITY AS DETERMINED BY THEIR IMMEDIATE SUPERVISOR AS WELL AS ENTITY AND SYSTEM GOALS MET. THIS ORGANIZATION ALSO HAS THE DEFERRED RETENTION BONUS PLAN (DRBP), A NONQUALIFIED EMPLOYER FUNDED PLAN. CONTRIBUTIONS ARE MADE TO ELIGIBLE EMPLOYEES EACH YEAR BASED UPON THEIR POSITION THROUGHOUT THE PLAN YEAR WHICH RUNS JULY 1 TO JUNE 30. EACH YEAR'S CONTRIBUTION IS SUBJECT TO THREE YEAR LAPSE TIME CLASS VESTING AT WHICH TIME THE VESTED CONTRIBUTION IS PAID OUT TO THE EMPLOYEE AND TAXED.

Related partnerships

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

• MEDVEST 1 LIMITED PARTNERSHIP

  HEALTH CARE INVESTMENTS · TX

• LITCHFIELD MEMORIAL PARTNERS LP

  PROPERTY INVESTMENT · TX

Related corporations and trusts

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

• ALLIED METHODIST HOSPITAL PHYSICIANS

  C · PHYSICIAN GROUP · TX · controlled entity

• MEDVEST HOLDINGS INC

  C · INVESTMENT COMPANY · TX · controlled entity

• MEDVEST INCORPORATED

  C · INVESTMENT COMPANY · TX · controlled entity

• METHODIST WILLOWBROOK MOB CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• METHODIST WILLOWBROOK MOB CONDO ASSOC II

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• SJMH CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• THE METHODIST HOSPITAL CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• TMH MEDICAL OFFICE BUILDINGS CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• METHODIST WEST HOUSTON MOB CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• METHODIST HEALTH CARE SYSTEM SHORT TERM DISABILITY PLAN TRUST

  T · INSURANCE TRUST · TX · controlled entity

• ROMLAC INC

  C · REAL ESTATE INVESTMENT · TX · controlled entity

• HOUSTON METHODIST THE WOODLANDS MOB CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• HOUSTON METHODIST ST CATHERINE MOB CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity

• HOUSTON METHODIST CLEAR LAKE HOSPITAL MOB CONDO ASSOC

  C · CONDOMINIUM ASSOCIATION · TX · controlled entity