Memorial Hermann Accountable Care Organization

EIN: 800778181

Houston, TX

Total Revenue
$11,446,170
Total Expenses
$13,586,602
Total Assets
$150,795
Net Assets
$77,108
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Financial Trends

Organization Details

Formation Year
2012
Legal Domicile
TX
Principal Officer
JAMES J MCCARTHY MD
Phone
7133384552
Tax Period
2022-07-01 to 2023-06-30

Memorial Hermann Accountable Care Organization, founded in 2012, is a mid-sized nonprofit that reported $11.4M in total revenue in fiscal year 2022. Revenue fell 66% from the prior year — a significant decline worth monitoring. Expenses of $13.6M exceeded revenue, resulting in a 19% operating deficit.

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.

Program Service Accomplishments

Program 1
Expenses: $12,576,548 Revenue: $11,446,170

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...

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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.

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Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

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Financial Overview (2022)

Revenue Breakdown

Contributions & Grants $0
Program Service Revenue $11,446,170
Investment Income $0
Other Revenue $0
TOTAL REVENUE $11,446,170

Expense Breakdown

Grants Paid $0
Salaries & Benefits $0
Fundraising Expenses $0
Program Expenses $12,576,548
Other Expenses $13,586,602
TOTAL EXPENSES $13,586,602

Year-over-Year Comparison

2022 2021 Change
Revenue $11,446,170 $34,024,704 -0.7%
Expenses $13,586,602 $35,316,726 -0.6%
Net Income $-2,140,432 $-1,292,022 +0.7%
Key Indicators
Grants to Organizations Grants to Individuals Lobbying Political Activity Foreign Activities Donor Advised Fund Schedule B Required
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Governance

Voting Members
10
Independent Members
5
Employees
N/A
Volunteers
N/A

Governance Policies

Conflict of Interest Policy
Whistleblower Policy
Document Retention Policy

Special Practices & Reported Activities

Operated a School
Operated a Hospital
Provided First Class Travel
Reported Conflict of Interest
Reported Asset Diversion
Excess Benefit Transaction
Made Political Expenditures
Engaged in Lobbying
Operated Donor Advised Fund
Maintained Art Collections
Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers
5
$6,154,827
Total Directors
12
$5,854,923
Key Employees
0
$0
Highest Compensated
0
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
David L Callender MD CEO/President 1.0
Director
$0 $477,530 $4,017,427
Deborah Gordon EVP, CAO/CLO 1.0
Officer
$0 $252,924 $1,870,900
James McCarthy MD EVP, Chief Physician Executive 1.0
Officer Director
$0 $250,785 $1,837,496
Alec King EVP, CFO 1.0
Officer
$0 $237,433 $1,625,762
Robert McStay SVP, Chief Compliance Officer 1.0
Officer
$0 $96,468 $653,539
J Kevin Giglio MD SVP, Chief Medical Officer 1.0
Officer
$0 $0 $167,130
Ira Flax MD Director 1.0
Director
$0 $0 $0
Grover Jackson Director 1.0
Director
$0 $0 $0
Ankur Doshi MD Director 1.0
Director
$0 $0 $0
Roland Garcia Jr Director 1.0
Director
$0 $0 $0
John Esquivel Director 1.0
Director
$0 $0 $0
Deborah Cannon Director 1.0
Director
$0 $0 $0
Phillip Chang MD Director 1.0
Director
$0 $0 $0
Chistophe Salcedo MD Director 1.0
Director
$0 $0 $0
Laura Aronson MD Director 1.0
Director
$0 $0 $0
Brian Heaps MD Director 1.0
Director
$0 $0 $0
Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year Revenue Expenses Assets Net Income
2023 $11,446,170 $13,586,602 $150,795 $-2,140,432
2022 $34,024,704 $35,316,726 $5,746,013 $-1,292,022
2021 $48,816,010 $48,578,012 $16,265,680 $237,998
2019 $18,322,004 $18,604,918 $4,806,304 $-282,914
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