Form 990 for tax year 2024

Totals

Total revenue

$212,366,103

Total expenses

$202,123,706

Contributions and grants received

$442,609

Grants paid

$43,876

Program service revenue

$171,661,192

Investment income

$31,572,075

Other revenue

$8,690,227

Total assets, end of year

$673,633,135

Total liabilities, end of year

$393,047,692

Net assets or fund balances, end of year

$280,585,443

Program services expenses (Part IX)

$148,749,398

Management and general expenses

$53,374,308

Fundraising expenses

$0

Program service expenses (Part III)

$148,749,398

Program services were 73.6% 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.

Mission and programs · 2024

• INFORMATION TECHNOLOGY EPIC ELECTRONIC HEALTH RECORD IMPLEMENTATION IN NOVEMBER 2024, MEMORIAL HEALTH'S BOARD OF DIRECTORS APPROVED THE IMPLEMENTATION OF EPIC AS THE ORGANIZATION'S ELECTRONIC HEALTH RECORD (EHR) OF CHOICE, WITH SIU PARTICIPATING AS A COMMUNITY CONNECT PARTNER. FOLLOWING THIS DECISION, MEMORIAL HEALTH INFORMATION SERVICES LEADERSHIP RECRUITED, HIRED, AND ONBOARDED 2 SYSTEM DIRECTORS, 10 MANAGERS, AND 94 COLLEAGUES BETWEEN JANUARY AND JULY 2025 TO BUILD, SUPPORT, AND SUSTAIN THE NEW EPIC ENVIRONMENT. FROM JULY THROUGH OCTOBER 2025, THESE COLLEAGUES COMPLETED EPIC CERTIFICATION PROGRAMS, WITH THE MAJORITY ACHIEVING CERTIFICATION PRIOR TO PROJECT KICKOFF. ON OCTOBER 28, 2025, MEMORIAL HEALTH OFFICIALLY LAUNCHED ITS 18-MONTH EPIC IMPLEMENTATION IN PARTNERSHIP WITH OPTIMUM HEALTHCARE IT AND EPIC SYSTEMS, BEGINNING ONE OF THE LARGEST TRANSFORMATIONAL INITIATIVES IN THE ORGANIZATION'S HISTORY TO ESTABLISH A UNIFIED EHR ACROSS MEMORIAL HEALTH AND ITS PARTNERS WHILE ADVANCING PATIENT CARE, OPERATIONAL EXCELLENCE, AND LONG-TERM INNOVATION. THE GO-LIVE IS TARGETED FOR FEBRUARY 27, 2027. ENTERPRISE RESOURCE PLANNING (ERP) TRANSFORMATION MEMORIAL HEALTH SUCCESSFULLY COMPLETED THE IMPLEMENTATION AND GO-LIVE OF INFOR CLOUDSUITE FOR FINANCE AND SUPPLY CHAIN IN MARCH 2026, TRANSITIONING FROM INFOR LAWSON TO A MODERN, CLOUD-BASED ERP PLATFORM WITH THE SUPPORT OF RPI, INC. FOLLOWING GO-LIVE, THE ORGANIZATION CONTINUES TO OPTIMIZE CLOUDSUITE OPERATIONS WHILE ADVANCING KEY INTEGRATIONS WITH EPIC AND OTHER ENTERPRISE SYSTEMS. MEMORIAL HEALTH IS ALSO IN THE FINAL STAGES OF IMPLEMENTING WORKDAY HCM AND PAYROLL IN PARTNERSHIP WITH CROSSVUE. THE PROJECT HAS PROGRESSED THROUGH EXTENSIVE TESTING, INTEGRATION DEVELOPMENT, PAYROLL PARALLEL ACTIVITIES, AND ORGANIZATIONAL READINESS EFFORTS AS THE HEALTH SYSTEM PREPARES TO TRANSITION HUMAN RESOURCES AND PAYROLL OPERATIONS FROM LAWSON TO WORKDAY LATER THIS YEAR. TOGETHER, THESE TRANSFORMATIONAL INITIATIVES ARE ESTABLISHING A MODERN ERP FOUNDATION THAT ENHANCES OPERATIONAL EFFICIENCY, STRENGTHENS DATA-DRIVEN DECISION MAKING, AND IMPROVES THE COLLEAGUE EXPERIENCE ACROSS THE ORGANIZATION. INFRASTRUCTURE & OPERATIONS MODERNIZATION AND EPIC READINESS IN 2025, MEMORIAL HEALTH'S INFRASTRUCTURE & OPERATIONS (I&O) DIVISION DELIVERED A FOUNDATIONAL YEAR OF MODERNIZATION, RESILIENCY, AND EPIC-READINESS WORK ACROSS NETWORKING, TELECOM, TECHNICAL OPERATIONS, TECHNICAL SUPPORT, SECURITY OPERATIONS, AND THE NEWLY FORMED EPIC TECHNICAL AND EPIC INTERFACES & CONVERSIONS TEAMS. THESE INVESTMENTS STRENGTHENED PATIENT-FACING PLATFORMS, REDUCED TECHNICAL DEBT, AND POSITIONED MEMORIAL HEALTH FOR ITS ENTERPRISE EPIC TRANSFORMATION TARGETED FOR GO-LIVE IN EARLY 2027. TECHNICAL OPERATIONS DELIVERED THE TECHNICAL OPERATIONS ORGANIZATIONAL RESTRUCTURE CREATING THREE FOCUSED SUB-TEAMS WITH DEFINED TECHNICAL OWNERSHIP AND SUCCESSION PATHWAYS. COMPLETED AN ENTERPRISE-WIDE DATA CENTER STRATEGY ASSESSMENT WITH DELL TECHNOLOGIES CONSULTING SERVICES. COMPLETED A CITRIX ENVIRONMENT REFRESH TO IMPROVE PERFORMANCE, STABILITY, AND SECURITY. EXECUTED ENTERPRISE PURE STORAGE SAN UPGRADES AND CAPACITY EXPANSION. MODERNIZED THE ENTERPRISE PACS STORAGE PLATFORM SUPPORTING IMAGING SERVICES. NETWORKING RENEWED AND EXPANDED THE CISCO ENTERPRISE AGREEMENT TO SUPPORT EPIC ARCHITECTURE REQUIREMENTS. COMPLETED WIRELESS MODERNIZATION AND NETWORK INFRASTRUCTURE UPGRADES AT MULTIPLE FACILITIES. ADVANCED ENTERPRISE FIREWALL AND WIRELESS MODERNIZATION INITIATIVES. DEPLOYED OPENROAMING ACROSS THE ENTERPRISE WIRELESS FOOTPRINT. STRENGTHENED NETWORK SEGMENTATION AND SECURITY CONTROLS FOR PERSONAL DEVICES. TELECOM ADVANCED MIGRATION FROM LEGACY VOICE SYSTEMS THROUGH AVAYA AURA UPGRADES. IMPLEMENTED PROACTIVE VOICE MONITORING CAPABILITIES THROUGH IR PROGNOSIS. TECHNICAL SUPPORT SERVICES COMPLETED A LARGE-SCALE WINDOWS 11 REFRESH AND HARDWARE REPLACEMENT INITIATIVE. MAINTAINED ENTERPRISE PATCHING AND SECURITY OPERATIONS. IMPLEMENTED A NEW DESKTOP SYSTEM ENGINEER CAREER FRAMEWORK. MODERNIZED THE ENTERPRISE SIMULATION LAB IN PARTNERSHIP WITH THE MEMORIAL LEARNING CENTER. SECURITY OPERATIONS & IDENTITY MANAGEMENT ESTABLISHED A DEDICATED SECURITY OPERATIONS FUNCTION AND GOVERNANCE PROCESSES. ADVANCED ENTERPRISE SINGLE SIGN-ON STANDARDIZATION ACROSS AFFILIATES. COMPLETED AN ENTERPRISE CYBERSECURITY RISK ASSESSMENT. EPIC TECHNICAL & INTERFACE READINESS ESTABLISHED EPIC TECHNICAL AND EPIC INTERFACES & CONVERSIONS TEAMS. DELIVERED FOUNDATIONAL EPIC TECHNICAL READINESS MILESTONES. INITIATED COMMUNITY CONNECT ARCHITECTURE PLANNING SUPPORTING SIU PARTICIPATION. CRITICAL ACCESS HOSPITAL SUPPORT CONTINUED SUPPORT AND ADVANCEMENT OF CPSI SYSTEMS AT LINCOLN MEMORIAL HOSPITAL AND TAYLORVILLE MEMORIAL HOSPITAL. COMPLETED ANNUAL PROMOTING INTEROPERABILITY ATTESTATION REQUIREMENTS. SUPPORTED EPIC LEGACY DATA CONVERSION EFFORTS AND AUTOMATED 340B PHARMACY INTEGRATIONS. MAINTAINED REPORTING AND SURVEILLANCE INTEGRATIONS SUPPORTING CLINICAL AND REGULATORY REQUIREMENTS.

  Expenses $43,138,724 · Revenue $1,549,670

• BUILDING AND FACILITY EXPANSION AND IMPROVEMENTS MEMORIAL HEALTH'S MISSION IS TO IMPROVE LIVES AND BUILD STRONGER COMMUNITIES THROUGH BETTER HEALTH. SAFE, FUNCTIONAL FACILITIES ARE THE FOUNDATION OF THE HEALTHCARE SERVICES WE PROVIDE. CLINICAL PROJECTS THAT BEGAN IN FY 2025: DMH LINEAR ACCELERATOR ROOM 219 - REPLACEMENT OF TRUEBEAM LINAC VAULT 219 AT THE CANCER CENTER INVOLVES EQUIPMENT REPLACEMENT, FINISH UPGRADES, POWER CONDITIONER MOVES, CHILLER REPLACEMENT AND NELCO REPAIRS TO THE VAULT DOOR. DMH PLAZA WEST RENOVATIONS FOR SIU -WITH 2/3 OF THE BUILDING VACANT AND SIU WANTING MORE SPACE AND A PRESENCE AT DMH, DMH WILL MOVE OUT THE REMAINING NEURO AND GASTRO GROUPS, LEAVING BEHIND ONLY THE ENDO SUITE, LETTING SIU LEASE THE REST OF THE THREE-STORY BUILDING FOR INTERNAL MEDICINE, OB/FMS, PEDIATRICS, AND SURGERY GROUPS. SMH ED CT REPLACEMENT - REPLACEMENT OF ED CT AND BRINGING FINISHES UP TO DATE. THIS WILL INVOLVE PHYSICISTS' TESTS, A REMOVAL OF A WALL TO BRING THE EQUIPMENT IN, AND SOME PHASING WITHIN THE CORRIDORS SURROUNDING THE SPACE. THIS ALSO INCLUDES SOME WORK IN THE CONTROL ROOM INCLUDING SETTING A UPS. SMH BAYLIS ALPHA CT REPLACEMENT - REPLACEMENT OF ALPHA CT IN THE BAYLIS BUILDING AND BRINGING FINISHES UP TO DATE. THIS WILL INVOLVE PHYSICISTS TESTS, A REMOVAL OF A WALL TO BRING THE EQUIPMENT IN, AND SOME PHASING WITHIN THE CORRIDORS SURROUNDING THE SPACE. SMH 5C ICU RENOVATION - THE GOAL IS TO PROVIDE ADDITIONAL RECOVERY BAYS FOR CV & CATH ON 6C BY USING ALL THE EXISTING BAYS AND PATIENT ROOMS ON 6C AS RECOVERY AND MOVING ALL ICU PATIENTS DOWN TO 5C. THIS WOULD HELP WITH THROUGHPUT FOR SURGERIES AND INCREASE VOLUME WHILE STILL MAINTAINING THE AMOUNT OF ICU BEDS NEEDED. 5C WOULD INCLUDE FLOORING, CEILING, PAINT, NEW HEADWALL SYSTEMS, REMOVAL OF OLD TUBS, REPAIRS OR NEW CASEWORK THROUGHOUT, POTENTIAL CONTROLS FOR HVAC, AND MORE. JMH LAB AND ED ROOF REPLACEMENT - THE LAB AND ED ROOF AT JMH HAS OUTLIVED ITS LIFE SPAN, AND THE LAST SEVERAL YEARS, HAVE BEEN SUFFERING ROOF LEAKS THROUGHOUT THE YEAR, AND HAVE HAD TO HAVE REPAIR AFTER REPAIR DONE TO THIS AREA. BY REPLACING THE ROOF NOW, WE WILL ELIMINATE THE INCONVENIENCE OF STAINED TILE IN CLINICAL AREAS, AND THE TIME OF ENGINEERING TO REPLACE THE WET TILE, AND CHASE LEAKS DOWN, AS WELL AS THE EXPENSE OF PATCHING THE OLD ROOF. MH BAYLIS RAMP REPAIRS (PHASE III) - THE LAST PHASE OF THE BAYLIS RAMP REPAIRS. THE BAYLIS PARKING RAMP CONTINUED TO SEE HEAVY DETERIORATION TO THE POINT WHERE WE NEEDED TO INVEST MONEY OVER THE NEXT 4 YEARS TO PROLONG THE LIFE OF THE STRUCTURE. WORK INCLUDED SEALING AND COATING ALL DECKS, REPAIRS TO ANY STRUCTURAL DAMAGE, REPAIRS TO CONCRETE STAIRS AND PANS FAILING, UTILITIES THAT ARE A LIFE SAFETY CONCERN DUE TO RUSTING AND EXPOSURE TO WEATHER. MH 2401 W. JEFFERSON EPIC RENOVATION - TO SUPPORT THE OPERATIONAL NEEDS FOR THE EPIC TEAM AND TO OPTIMIZE SPACE UTILIZATION, WE ARE PROPOSING A COMPREHENSIVE RECONFIGURATION OF THE FOURTH FLOOR WITHIN 2401 JEFFERSON. THE OBJECTIVE IS TO ACCOMMODATE 95 ANALYSTS, 11 MANAGER OFFICES, 3 THIS INITIATIVE IS DESIGNED TO PROVIDE ADEQUATE SPACE AND SUPPORT FOR ALL STAFF WHILE PROMOTING TEAM PROXIMITY, OPERATIONAL EFFICIENCY, AND FLEXIBLE WORKSPACE SOLUTIONS. IT ALSO ENSURES THE FLOOR IS CONFIGURED FOR LONG-TERM SUCCESS AND ALIGNS WITH FUTURE PLANS TO SIMILARLY OPTIMIZE ADDITIONAL FLOORS ACROSS THAT BUILDING. SMH SIEMENS AGILE MAX EQUIPMENT REPLACEMENT ROOM A126 - REPLACEMENT OF AGILE MAX EQUIPMENT IN ROOM A126 BRINGING FINISHES UP TO DATE. DMH PLANT ATS REPLACEMENT - REPLACING THE CURRENT 2000A ATS WITH A CLOSED TRANSITION, ISOLATION BYPASS UNIT. REPLACING THIS ATS WILL REQUIRE A SIGNIFICANT AMOUNT OF RE-WORK IN THE PLANT. IT WILL ALSO REQUIRE RENTING OF A TEMPORARY ATS DURING THE DURATION OF THE RE-WORK. THE NEW ATS WILL ALSO INCLUDE A 2000A SERVICE ENTRANCE CIRCUIT BREAKER. THIS BREAKER WILL REPLACE THE EXISTING OBSOLETE BOLT LOCK SERVICE ENTRANCE DISCONNECT THAT FEEDS THIS TRANSFER SWITCH. IT IS THE OPINION OF FACILITIES DESIGN AND CONSTRUCTION THAT THIS WORK BE COMPLETED IN THE NEAR FUTURE. SMH BAYLIS XRAY - WITH ADDITIONAL ORTHO DOCTORS COMING ON AT THE SIU BAYLIS BUILDING WE CANNOT HANDLE THE AMOUNT OF VOLUME WITH THE CURRENT SETUP AT BAYLIS WITH MEDICAL IMAGING. THIS X-RAY WILL SUPPORT THE CURRENT VOLUME AND THE ADDITIONAL VOLUME THAT WILL COME IN WITH THE NEW PHYSICIANS. OTHER PROJECTS COMPLETED FOR HEALTH SYSTEM INCLUDE: SMH 1E ONCOLOGY RENOVATIONS - DUE TO THE CONDITION OF THE 1E ONCOLOGY SPACES - ESPECIALLY THE EXAM ROOM SPACES (FINISHES, SIZE, EFFICIENCIES, ETC.) THE UNIT NEEDED GUTTED. NEW DESIGN INCLUDED 11 NEW APPROPRIATELY SIZED EXAM ROOMS WITH TWO ROOMS BEING INPATIENT FOCUSED. NEW NURSE STATION, RECEPTION, ADDITIONAL PRIVATE DRESSING AREA FOR PATIENTS, NEW BREAK ROOM FOR COLLEAGUES AND SUPPORT SPACES FOR PHYSICIANS, NM, PHYSICIST, AND NPS. NEW IS ROOM. SMH LINEAR ACCELERATOR 2 REPLACEMENT - DUE TO AGE OF EQUIPMENT WE REPLACED LINEAR ACCELERATORS 2, DURING THIS TIME WE WILL ALSO UPGRADED FINISHES AND BROUGHT ANY MEP INFRASTRUCTURE UP TO DATE. JMH IMAGING EQUIPMENT REPLACEMENT - LAST OF THE IMAGING EQUIPMENT REPLACEMENT FOR THE HEALTH SYSTEM. SCOPE INCLUDED REPLACING IMAGING EQUIPMENT ACROSS ALL AFFILIATES (SPRINGFIELD, DECATUR, TAYLORVILLE, LINCOLN, AND JACKSONVILLE) AS WELL AS UPGRADING THE FINISHES WHILE IN THE ROOMS. PROJECT INITIATION DUE TO AGE AND RELIABILITY OF EQUIPMENT BUT DONE AS A SYSTEM ORDER TO BE EFFICIENT AND COST EFFECTIVE. TMH ED AHU REPLACEMENT - REPLACEMENT OF THE AIR HANDLER UNIT IN THE EMERGENCY DEPARTMENT. SMH FIRE ALARM UPGRADES FOR B AND G BUILDINGS - EXISTING DEVICES AND PANELS HAVE BEEN DISCONTINUED AND WE COULD NO LONGER GET PARTS. SWITCHING FROM SIEMENS HEADS TO NOTIFIER, THIS INVOLVED REPLACING DEVICES AND PANELS THEN REFEEDING. SMH CVOR WALLPAPER - RENOVATION OF 4 EXISTING OR ROOMS (W, X, Y, Z), 3 SUB STERILE ROOMS (D630, D627, & D626), AND DECONTAM AND STERILE ROOMS D635A&B IN THE CVOR. THE WORK IN THE ORS IS DIRECTLY TIED TO THE AGE AND CONDITION OF THE ROOMS - WE HAD INFECTION CONTROL ISSUES, PATIENT RISK ISSUES, WORKFLOW AND EFFICIENCY ISSUES, FACILITY COMPLIANCE ISSUES, AND OVERALL DEGRADING CONDITIONS. THIS PROJECT ALSO HAD A DIRECT TIE TO THE CS/SP INTEGRATION PROJECT WITH THAT LOCAL FUNCTION MOVING DOWNSTAIRS TO THE MAIN, THIS OPENED UP REAL ESTATE TO ACTUALLY ADDRESS SOME OF CV'S STORAGE NEEDS. MH BAYLIS RAMP REPAIRS (PHASE II) - THE BAYLIS PARKING RAMP CONTINUED TO SEE HEAVY DETERIORATION TO THE POINT WE NEEDED TO INVEST MONEY OVER THE NEXT 4 YEARS TO PROLONG THE LIFE OF THE STRUCTURE. WORK INCLUDED SEALING AND COATING ALL DECKS, REPAIRS TO ANY STRUCTURAL DAMAGE, REPAIRS TO CONCRETE STAIR AND PANS FAILING, UTILITIES THAT ARE A LIFE SAFETY CONCERN DUE TO RUSTING AND EXPOSURE TO WEATHER. SMH 3 COOLING TOWER REBUILDS - REBUILT COOLING TOWERS 1, 2, AND 3. ALL TOWERS WERE SHOWING SIGNS OF DETERIORATION AND WERE OVER 10 YEARS OLD OR HAD BEEN 10 YEARS SINCE BEING REBUILT. DMH LAB UPDATES - BUILT OUT AREA TO ACCOMMODATE THE NEW BECKMAN COULTER AUTOMATION LINE AS THE OLD AUTOMATION LINE WAS END OF LIFE AND NEW LINE IS MUCH LARGER THAN WHAT THE EXISTING SPACE COULD HOLD. WE DEMOED INTERIOR WALLS, ADJUSTED HVAC, ELECTRICAL, PLUMBING, DATA, FLOORING, DRYWALL, THEN PATCHED AND PAINTED AS WELL AS CREATED OPENING FROM EXISTING LAB INTO THE NEW SPACE. DMH BELIMED CAR WASHER & WATER PURIFICATION SYSTEM - REPLACED CART WASHER DUE TO AGING EQUIPMENT. EQUIPMENT REQUIRED REPAIRS FREQUENTLY IN WHICH THE WASHER WOULD BE OUT OF SERVICE FOR DAYS CAUSING THE NEED FOR COLLEAGUES TO HANDWASH ALL CASE CARTS, STERILIZATION CONTAINERS, BASIS, ETC. WHICH IMPACTED OTHER FUNCTIONS OF THE DEPARTMENT AND TURNOVER TIME FOR SURGERY. BASED ON UPCOMING AAMI STANDARDS, A WATER PURIFICATION SYSTEM WAS INSTALLED AT THIS TIME AS WELL. SMH 501 N 1ST ROOF REPLACEMENT - REPLACED ROOF DUE TO LEAKING AND THE AGE OF THE ROOF. DMH PLAZA WEST NEUROLOGY MOVE TO 304 W HAY STE 218 - PLAZA WEST WAS BEING RENOVATED FOR SIU CLINICS, AND THEY WILL OCCUPY ALL OF THE SECOND FLOOR WHICH IS WHERE NEURO WAS LOCATED. WORK AT 304 INCLUDED REPLACING CARPET WITH NEW CARPET TILE AND STRIP AND WAX EXISTING VCT TO REMAIN, PATCHING AND PAINTING THE ENTIRE SUITE, NEW DOORS AND COUNTER TOPS IN THE EXAM ROOM, NURSE MANAGER OFFICE AND ALSO REPLACED GLASS AT THE RECEPTION DESK.

  Expenses $10,241,754 · Revenue $8,508,743

• SENIOR LEADERSHIP GUIDED BY THE VALUES OF MEMORIAL HEALTH, EXECUTIVE LEADERSHIP IS RESPONSIBLE FOR STRATEGIC PLANNING, PRIORITIZING AMONG COMPETING ISSUES AND ENGAGING IN DIALOGUE AND DECISION-MAKING THAT WILL ENABLE MEMORIAL HEALTH TO ACHIEVE ITS MISSION (TO IMPROVE LIVES AND BUILD STRONGER COMMUNITIES THROUGH BETTER HEALTH), ITS VISION (LIFE AT ITS BEST), REALIZE ITS' STRATEGIC GOALS, AND EXECUTE ITS' STRATEGIC PRIORITIES TO BETTER SERVE CENTRAL ILLINOIS AND CONFRONT THE MANY CHALLENGES FACING THE HEALTHCARE INDUSTRY. ALL THE WORK IS GUIDED BY A CORE VALUE, TO PUT PEOPLE FIRST, AND GUIDING SET OF VALUES INCLUDING SERVE WITH KINDNESS, DO THE RIGHT THING, WORK TOGETHER, RETHINK WHAT'S POSSIBLE, AND EXCEED EXPECTATIONS. THESE VALUES ARE CORE ETHICAL PRINCIPLES THAT GUIDE HOW EVERY COLLEAGUE, LEADER, AND PHYSICIAN IN THE ORGANIZATION SHOULD TREAT PATIENTS AND MANAGE RESOURCES. THEY SHAPE ORGANIZATIONAL CULTURE, DICTATE DAILY MEDICAL DECISIONS, AND ENSURE HIGH STANDARDS OF CARE. MEMORIAL ENGAGED AN INDUSTRY LEADING STRATEGIC CONSULTANT, KAUFMAN HALL, TO SUPPORT THEM IN THE EFFORT OF DEVELOPING A NEW STRATEGIC PLAN, KNOWN AS FUTURE IN FOCUS. MEMORIAL HEALTH BELIEVES THE NEXT DECADE OF HEALTHCARE DELIVERY WILL FAVOR SYSTEMS THAT COMBINE CLINICAL INTEGRATION, DISCIPLINED OPERATIONS, AND PURPOSEFUL SCALE WHILE REMAINING DEEPLY CONNECTED TO THE COMMUNITIES THEY SERVE. THE INDUSTRY IS FACING SUSTAINED MARGIN PRESSURE, RISING CAPITAL REQUIREMENTS, WORKFORCE CONSTRAINTS, AND ACCELERATING MIGRATION OF CARE TO OUTPATIENT AND AMBULATORY SETTINGS. IN THIS ENVIRONMENT, LONG-TERM SUCCESS REQUIRES BOTH OPERATING STRENGTH AND STRATEGIC FLEXIBILITY, NOT SIMPLY SIZE, BUT THE ABILITY TO DEPLOY SCALE WHERE IT CREATES REAL VALUE. MEMORIAL'S BROADER APPROACH IS INFORMED BY MEMORIAL HEALTH'S STRATEGIC PLAN, FUTURE IN FOCUS, WHICH DEFINES LONGTERM DIRECTION TO BE A LEADER IN HIGHQUALITY SPECIALTY CARE, THE EASIEST HEALTH SYSTEM TO ACCESS, AND THE INDUSTRY'S EXAMPLE OF A NOTFORPROFIT SYSTEM THAT EXCELS. MEMORIAL'S STRATEGY IS ANCHORED IN A HUMANCENTERED, PATIENTFIRST CULTURE, SUPPORTED BY FOUR STRATEGIC PRIORITIES: EMPOWERING PEOPLE TO DO THEIR BEST WORK; DELIVERING HIGHQUALITY CARE AND EXCEPTIONAL PATIENT EXPERIENCES; EXPANDING AND REDESIGNING ACCESS; AND ACCELERATING STRATEGIC GROWTH. COLLECTIVELY, THESE PRIORITIES POSITION MEMORIAL TO EVOLVE INTO A MORE INTEGRATED, ACCESSIBLE, AND SUSTAINABLE HEALTH SYSTEM, ONE THAT LEADS IN SPECIALTY CARE, REMOVES FRICTION FROM THE PATIENT EXPERIENCE, AND OPERATES WITH THE DISCIPLINE REQUIRED TO REINVEST THROUGH A DEFINING ELEMENT OF MEMORIAL'S STRATEGY IS ACHIEVING GREATER SCALE WHILE REMAINING COMMUNITYANCHORED. MEMORIAL IS INTENTIONALLY PURSUING GROWTH THAT STRENGTHENS ITS ENTERPRISE CAPABILITIES, SUCH AS DIGITAL INFRASTRUCTURE, ANALYTICS, PHYSICIAN ALIGNMENT, AMBULATORY ACCESS, AND OPERATING CONSISTENCY, WHILE PRESERVING LOCAL RELEVANCE, GOVERNANCE, AND TRUST. MEMORIAL VIEWS PARTNERSHIP, RATHER THAN CONSOLIDATION ALONE, AS THE MOST EFFECTIVE WAY TO ADVANCE THIS MODEL. DURING FY24, MH MANAGEMENT ENGAGED CHARTIS, A HEALTHCARE CONSULTING FIRM, TO ASSESS THE CURRENT EHR ENVIRONMENT AND MH'S VISION FOR AN INTEGRATED EHR PLATFORM, REVIEW INDUSTRY EHR VENDORS, DEVELOP A 10-YEAR COMPARATIVE COST MODEL FOR EHR OPTIONS, AND ASSIST WITH THE ESTABLISHMENT OF AN INTEGRATION ROADMAP. CHARTIS HAS WORKED WITH MH LEADERS AND INDUSTRY EHR VENDORS TO DEVELOP A DETAILED COST MODEL. AFTER REVIEW OF THE CHARTIS MATERIALS, MH INFORMATION SYSTEM INPUT, AND MH LEADERSHIP DISCUSSION, MH SENIOR LEADERSHIP DETERMINED TO PROCEED ALL (INPATIENT AND AMBULATORY) MH EHR PLATFORMS TO THE EPIC EHR SOFTWARE APPLICATION. EPIC IS AN EHR PLATFORM DEVELOPED BY EPIC SYSTEMS CORPORATION, A PRIVATELY OWNED AMERICAN SOFTWARE COMPANY THAT IS A WORLDWIDE INDUSTRY LEADER IN EHR SYSTEMS. THE IMPLEMENTATION ACROSS MH IS TARGETED FOR LATE FEBRUARY, 2027. IN FY22, THE HISTORIC RELIANCE AND COST-INFLATION ASSOCIATED WITH AGENCY LABOR CONTRIBUTED TO MEMORIAL'S FINANCIAL CHALLENGES. IN FY23, SIGNIFICANT PROGRESS WAS MADE IN REDUCING RELIANCE ON COSTLY AGENCY LABOR, WITH EFFORTS AND SAVINGS GAINS CONTINUING TO BE REALIZED IN FY24. GIVEN THE RISE IN INFLATION, MEMORIAL HEALTH CONTINUES TO BE ACTIVE IN RENEGOTIATING HIGHER RATE INCREASES WITH ALL PAYERS. MEMORIAL HEALTH'S LONG-STANDING PERFORMANCE IMPROVEMENT PROGRAM, STRENGTHEN OUR FUTURE (SOF), PROVIDES A DISCIPLINED FRAMEWORK FOR DRIVING REVENUE GROWTH, PROCESS IMPROVEMENT, AND EXPENSE MANAGEMENT. SINCE ITS INCEPTION IN 2012, AND RENEWED POST-PANDEMIC, SOF HAS GENERATED MORE THAN $150M IN ANNUAL SAVINGS THROUGH INITIATIVES SPANNING LABOR, SUPPLY CHAIN, REVENUE CYCLE, PROCESS VARIATION, AND GROWTH. IN FY25, INITIATIVES FOCUSED ON REVENUE CYCLE IMPROVEMENTS, SUPPLY CHAIN SAVINGS, RESTRUCTURING PREMIUM PAY PROGRAMS, RIGHT SIZING THE REAL ESTATE PORTFOLIO, ALOS IMPROVEMENTS, MAXIMIZING NET REIMBURSEMENT THROUGH CHARGEMASTER OPTIMIZATION, AND INCREASING PROCEDURAL VOLUMES. MEMORIAL HEALTH ANTICIPATES CONTINUING TO ENACT MEANINGFUL EFFICIENCIES THROUGH SHARED SERVICES ACROSS REVENUE CYCLE, SUPPLY CHAIN, IT, HR, AND ADMINISTRATIVE FUNCTIONS, WITH A FOCUS ON REDUCING VARIATION, IMPROVING PRODUCTIVITY, AND LEVERAGING SYSTEM SCALE. MEMORIAL HEALTH PROVIDES PATIENT-CENTERED CARE THROUGH AN AMBULATORY ORGANIZATIONAL STRUCTURE THAT WAS DEVELOPED IN FY19 TO ENSURE STRATEGIC ALIGNMENT FOR PROVIDING CARE OUTSIDE OF AN ACUTE CARE SETTING. THIS STRUCTURE PUSHES COORDINATION OF CARE BETWEEN OUR MENTAL HEALTH, HOME SERVICES, HOSPICE, PRIMARY CARE, SPECIALTY CARE, URGENT CARE, WELLNESS, POPULATION HEALTH AND DURABLE MEDICAL EQUIPMENT AFFILIATES. IN TOTAL FOR FY25, THE AMBULATORY GROUP PROVIDED OVER 300,000 PRIMARY CARE VISITS, OVER 138,000 URGENT CARE VISITS, AND ALMOST 97,000 SPECIALTY CARE VISITS. EMPLOYED PHYSICIANS AND ADVANCED PRACTICE PROVIDERS PRACTICE IN THE PRIMARY CARE SETTING SERVING A PANEL OF OVER 140,000 PATIENTS. THIS LARGE PRIMARY CARE INFRASTRUCTURE IS A KEY PART OF MEMORIAL HEALTH'S STRATEGY FOR NAVIGATING THE DYNAMIC AND EVER-CHANGING PAYER MARKET AND SHIFT FROM FEE-FOR-SERVICE HEALTH CARE TO FEE-FOR-VALUE. FROM A BOND RATING PERSPECTIVE, MOODY'S HAS AFFIRMED MEMORIAL HEALTH'S LONG-TERM RATING OF A1 STABLE RATING. S&P HAS ALSO AFFIRMED MEMORIAL HEALTH'S RATING OF A+ WITH A STABLE OUTLOOK.

  Expenses $6,123,748 · Revenue $60,884,697

• OTHER PROGRAM SERVICES THROUGH MEMORIAL HEALTH PARTNERS (MHP), MEMORIAL HEALTH HAS ENTERED INTO RISK-BASED CONTRACTS TO PROVIDE IN-NETWORK MEDICAL SERVICES VIA SPRINGFIELD MEMORIAL HOSPITAL (SMH). UNDER THESE ARRANGEMENTS, MHP RECEIVES CAPITATION PAYMENTS BASED ON THE DEMOGRAPHIC CHARACTERISTICS OF COVERED MEMBERS IN EXCHANGE FOR PROVIDING CERTAIN MEDICAL SERVICES TO THOSE MEMBERS. DURING FY2024, MHP HAD MORE THAN 10,500 MEMBER LIVES COVERED IN ITS NETWORK AND RECOGNIZED BOTH CAPITATION REVENUES FOR THAT COVERAGE AS WELL AS PURCHASED MEDICAL SERVICE EXPENSES PAID TO MEMBERS' PROVIDERS, INCLUDING SMH.

  Expenses $89,245,172 · Grants $43,876 · Revenue $100,996,806

As filed on the 2024 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

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

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.

• SPRINGFIELD MEMORIAL HOSPITAL

  501(C)(3) · HOSPITAL SERVICES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• LINCOLN MEMORIAL HOSPITAL

  501(C)(3) · HOSPITAL SERVICES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• TAYLORVILLE MEMORIAL HOSPITAL

  501(C)(3) · HOSPITAL SERVICES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• JACKSONVILLE MEMORIAL HOSPITAL

  501(C)(3) · HOSPITAL SERVICES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• DECATUR MEMORIAL HOSPITAL

  501(C)(3) · HOSPITAL SERVICES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• MEMORIAL HOME CARE

  501(C)(3) · HOME HEALTH AND HOSPICE · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• SPRINGFIELD MEMORIAL FOUNDATION

  501(C)(3) · GRANTS TO HOSPITAL, OTHER CHARITABLE ORGANIZATIONS, AND SCHOLARSHIPS · IL

  Directly controlled by SPRINGFIELD MEMORIAL HOSPITAL

• TAYLORVILLE MEMORIAL FOUNDATION

  501(C)(3) · GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS · IL

  Directly controlled by TAYLORVILLE MEMORIAL HOSPITAL

• MEMORIAL BEHAVIORAL HEALTH

  501(C)(3) · TRAINING, PSYCHIATRIC, AND RESIDENT SERVICES FOR MENTALLY ILL AND DISABLED · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• SPRINGFIELD RESIDENTIAL SERVICES

  501(C)(3) · RESIDENTIAL HUD HOUSING PROJECT FOR MENTALLY ILL · IL

  Directly controlled by MEMORIAL BEHAVIORAL HEALTH

• JACKSONVILLE MEMORIAL FOUNDATION

  501(C)(3) · GRANTS TO HOSPITAL, OTHER CHARITABLE ORGANIZATIONS, AND SCHOLARSHIPS · IL

  Directly controlled by JACKSONVILLE MEMORIAL HOSPITAL

• LINCOLN MEMORIAL FOUNDATION

  501(C)(3) · GRANTS TO OTHER CHARITABLE ORGANIZATIONS AND HOSPITALS · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• JACKSONVILLE CRNA'S INC

  501(C)(3) · CRNA SERVICES · IL

  Directly controlled by JACKSONVILLE MEMORIAL HOSPITAL

• MEMORIAL MEDICAL GROUP

  501(C)(3) · HEALTH CLINICS · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• MEMORIAL HEALTH VENTURES

  501(C)(3) · HEALTHCARE ACTIVITIES · IL · controlled entity

  Directly controlled by MEMORIAL HEALTH

• DECATUR MEMORIAL FOUNDATION

  501(C)(3) · GRANTS TO HOSPITALS, OTHER CHARITABLE ORGANIZATIONS, AND SCHOLARSHIPS · IL

  Directly controlled by DECATUR MEMORIAL HOSPITAL

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.

Provenance

Return type

form_990

Tax year

2024

Filed

17 August 2026

IRS schema version

2024v5.1

Source object

202632299349302398

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