Civic Intelligence

Hendrick Provider Network

990 • Fiscal year 2017 • EIN 75-2660403

Sep 01, 2016 to Aug 31, 2017 • Filed on Jul 15, 2018

PO Box 3117Abilene, TX 79604

(325) 670-2000

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

90th percentile

0.93x

Higher debt load relative to assets than 90% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Liabilities / Revenue

62nd percentile

0.48x

Higher debt load relative to revenue than 62% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Net Margin

3rd percentile

-72%

Higher net margin than 3% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Top Officer Pay

Score unavailable

No value available

This filing does not contain officer compensation rows.

Source year 2017

Asset Growth

44th percentile

3.5%

Faster asset growth than 44% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2016 to 2017

Revenue Growth

70th percentile

14%

Faster revenue growth than 70% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2016 to 2017

Assets

Up

$18,880,446

Up $636,726 (+3.5%) from 2016

Net Assets

Down

$1,348,823

Down $1,002,725 (-43%) from 2016

Liabilities

Up

$17,531,623

Up $1,639,451 (+10%) from 2016

Revenue

Up

$36,442,158

Up $4,357,128 (+14%) from 2016

Expenses

Up

$62,809,342

Up $10,607,651 (+20%) from 2016

Net Income

Down

-$26,367,184

Down $6,250,523 (-31%) from 2016

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$30M$20M$10M$0-$10MAssets 2010: $2,054,879Liabilities 2010: $956,367Net Assets 2010: $1,098,5122010Assets 2011: $1,588,251Liabilities 2011: $1,157,706Net Assets 2011: $430,5452011Assets 2012: $4,598,582Liabilities 2012: $1,577,673Net Assets 2012: $3,020,9092012Assets 2013: $4,484,394Liabilities 2013: $2,512,069Net Assets 2013: $1,972,3252013Assets 2014: $17,394,010Liabilities 2014: $15,406,242Net Assets 2014: $1,987,7682014Assets 2015: $17,447,468Liabilities 2015: $16,545,540Net Assets 2015: $901,9282015Assets 2016: $18,243,720Liabilities 2016: $15,892,172Net Assets 2016: $2,351,5482016Assets 2017: $18,880,446Liabilities 2017: $17,531,623Net Assets 2017: $1,348,8232017Assets 2018: $19,774,264Liabilities 2018: $19,771,865Net Assets 2018: $2,3992018Assets 2019: $20,122,139Liabilities 2019: $18,703,218Net Assets 2019: $1,418,9212019Assets 2020: $20,441,063Liabilities 2020: $22,724,323Net Assets 2020: -$2,283,2602020Assets 2021: $16,422,730Liabilities 2021: $13,851,495Net Assets 2021: $2,571,2352021Assets 2022: $20,701,780Liabilities 2022: $19,714,823Net Assets 2022: $986,9572022Assets 2023: $19,140,268Liabilities 2023: $22,128,808Net Assets 2023: -$2,988,5402023Assets 2024: $22,291,400Liabilities 2024: $21,553,138Net Assets 2024: $738,2622024

Highlighted filing

2017

Assets$18,880,446
Liabilities$17,531,623
Net Assets$1,348,823

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$200M$100M$0-$100MExpenses 2010: $13,240,2642010Expenses 2011: $13,563,2542011Expenses 2012: $20,880,9592012Expenses 2013: $28,346,4492013Revenue 2014: $22,693,956Expenses 2014: $35,095,222Net Income 2014: -$12,401,2662014Revenue 2015: $28,232,878Expenses 2015: $44,937,887Net Income 2015: -$16,705,0092015Revenue 2016: $32,085,030Expenses 2016: $52,201,691Net Income 2016: -$20,116,6612016Revenue 2017: $36,442,158Expenses 2017: $62,809,342Net Income 2017: -$26,367,1842017Revenue 2018: $41,198,195Expenses 2018: $69,720,444Net Income 2018: -$28,522,2492018Revenue 2019: $45,709,182Expenses 2019: $79,693,290Net Income 2019: -$33,984,1082019Revenue 2020: $49,463,920Expenses 2020: $87,806,406Net Income 2020: -$38,342,4862020Revenue 2021: $65,810,313Expenses 2021: $120,535,933Net Income 2021: -$54,725,6202021Revenue 2022: $80,766,553Expenses 2022: $143,853,419Net Income 2022: -$63,086,8662022Revenue 2023: $91,946,276Expenses 2023: $160,590,818Net Income 2023: -$68,644,5422023Revenue 2024: $74,642,925Expenses 2024: $142,179,037Net Income 2024: -$67,536,1122024

Highlighted filing

2017

Revenue$36,442,158
Expenses$62,809,342
Net Income-$26,367,184
Jump To
Filing Snapshot
Filing Period
Sep 1, 2016 to Aug 31, 2017
Signed
Jul 15, 2018
Return Version
2016v3.1
Gross Receipts
$36,442,158
Mission and Program Overview

Mission

To provide medical care to the community of abilene and surrounding areas. Many patients are on medicaid. Services are provided to promote best health practices regardless of ability to pay.

To provide medical care to the community of abilene and surrounding areas. Many patients are on medicaid. Services are provided regardless of ability to pay.

Balance Sheet Detail
LineBeginningEndChange
Assets
Accounts Receivable$2,627,437$2,558,358▼ $69,079
Land, Buildings, and Equipment, Net$1,705,609$1,593,660▼ $111,949
Inventories for Sale or Use$560,033$765,790▲ $205,757
Prepaid Expenses and Deferred Charges$334,315$106,173▼ $228,142
Savings and Temporary Cash Investments$118,543$89,722▼ $28,821
Cash and Non-Interest-Bearing Accounts$3,075$11,391▲ $8,316
Other Notes and Loans Receivable, Net$0$0→ $0
Pledges and Grants Receivable$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Investments in Publicly Traded Securities$0$0→ $0
Intangible Assets$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$18,243,720$18,880,446▲ $636,726
Other Assets Total$12,894,708$13,755,352▲ $860,644
Liabilities
Mortgage Notes Payable Secured by Investment Property$12,880,000$12,880,000→ $0
Accounts Payable and Accrued Expenses$3,012,172$4,651,623▲ $1,639,451
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Other Liabilities$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$15,892,172$17,531,623▲ $1,639,451
Net Assets / Fund Balance
Unrestricted Net Assets$2,351,548$1,348,823▼ $1,002,725
Permanently Rstr Net Assets$0$0→ $0
Temporarily Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$2,351,548$1,348,823▼ $1,002,725
Total Liabilities and Net Assets / Fund Balance$18,243,720$18,880,446▲ $636,726

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$1,468,880$3,370,624$4,839,504
Buildings$87,780$13,163$100,943
Leasehold Improvements$7,054$31,424$38,478
Other Land Buildings$29,946-$29,946
Other Assets Org$333,294--
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Joji VarghesePhysicianFT$479,484$948,220$1,427,704
Harvinder AroraPhysicianFT$493,135$753,181$1,246,316
Brent MahoneyPhysicianFT$432,971$742,526$1,175,497
Antao DuPhysicianFT$618,053$458,677$1,076,730
Alex ArmourPhysicianFT$664,997$346,126$1,011,123
Gary BinkleyDirectorFT$520,925$450,150$971,075
Ren ZhangdirectorFT$510,251$172,088$682,339
Min GaodirectorFT$494,852$107,952$602,804
Rhett LohmanchairFT$434,081$92,385$526,466
Jose VegadirectorFT$363,096$105,781$468,877
Henry FosahDirectorFT$237,561$141,448$379,009
David StephensonVice PresidentFT$139,873$97,694$237,567

Board Members and Trustees

NameTitle
Tim LancasterPresident

Highest Paid Contractors

ContractorServicesLocationCompensation
Texas Tech University Health SciencUrology Services3601 4TH STREET STOP 6225, Lubbock, TX 79424$800,000
Weatherby Medical StaffingLocum ServicesPO BOX 972633, Dallas, TX 75397-2633$288,808
Zirmed INCAch Svc/software Sup1311 SOLUTIONS CENTER, Chicago, IL 60677-1311$203,113
Citadel Outsource GroupCredit Collections162 IMPERIAL BLVD, Hendersonville, TN 37075$166,752
Credit Systems InternationalCredit CollectionsP O BOX 1088, Arlington, TX 79004$133,362
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$35,527,801
Investment Income
$53
Other Revenue
$914,304
Change in Net Assets
$-26,367,184

Audited Revenue Reconciliation

Revenue per Audited Statements
$36,309,158
Revenue Not Reported on Financial Statements
$133,000
Revenue Not Reported on Form 990
$-3,979,703
Other Revenue Adjustments
$133,000
Total Revenue per Audited Statements
$32,329,455
Total Revenue per Form 990
$36,442,158
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$49,773,629
Other Expenses$13,035,713
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$37,769,571$2,944,629-$40,714,200
Current Officers, Directors, Trustees, and Key Employees$3,570,407$299,226-$3,869,633
Other Employee Benefits$2,213,359$547,030-$2,760,389
Fees for Services Other$128,870$2,054,309-$2,183,179
Occupancy$1,888,966$118,797-$2,007,763
Payroll Taxes$1,577,618$172,898-$1,750,516
Information Technology$668,963$18,610-$687,573
Pension Plan Contributions$606,403$72,488-$678,891
Depreciation Depletion$456,453$125,491-$581,944
All Other Expenses$340,668$200,860-$541,528
Office Expenses$355,991$140,042-$496,033
Insurance$397,796--$397,796
Other Expenses$214,560$32,704-$247,264
Advertising$132,681$16,458-$149,139
Fees for Services Management$106,977--$106,977
Travel$49,851$18,939-$68,790
Fees for Services Legal$13,938$31,470-$45,408
Fees for Services Accounting-$21,756-$21,756
Total Functional Expenses$55,948,887$6,860,455$0$62,809,342

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$62,809,342
Expenses per Audited Statements$58,825,439
Total Expenses per Audited Statements$58,696,854
Expenses Not Reported on Financial Statements$3,983,903
Other Expense Adjustments$3,983,903
Expenses Not Reported on Form 990$-128,585
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$0
Fundraising Gross Income$0
Gaming Direct Expenses$0
Gaming Gross Income$0
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Section A, Line 6

Describe the classes of members or stockholders: hendrick medical center is the sole member of hendrick provider network.

Form 990, Part VI, Section A, Line 7A

Persons who may elect one or more members of the governing body: the member, hendrick medical center, shall elect the successors of the initial directors.

Form 990, Part VI, Section A, Line 7B

Decisions of governing body subject to approval by other persons: article vii of the restated articles of incorporation provides, in part, that an amendment to article ii relating to the purpose of the corporation and article vi relating to the number and method of the election or appointment of the board of trustees shall occur only with the consent of the baptist general convention of texas or its executive board.

Form 990, Part VI, Section B, Line 11B

Describe review process of form 990: the organization engages an outside accounting firm to prepare form 990. Once prepared, the form is reviewed by the organization's internal accountants prior to filing.

Form 990, Part VI, Section B, Line 12C

Describe the organization's practice for monitoring compliance with policy: the organization conducts, at a minimum, annual reviews of the possible conflicts of interest and other financial relationships identified under this conflict of interest policy.

Form 990, Part VI, Section B, Line 15A

Process for determining compensation of ceo, directors, or top officials: a comprehensive review of compensation is conducted by an independent party at least every three years. This report presents the results of the analysis of salary, incentive, total cash compensation (salary plus incentive), benefits, and total compensation (total cash and benefits). Integrated healthcare strategies (ihs) works with the personnel committee to formally define an executive total compensation philosophy. Hendrick health system's current philosophy is to use ranges built around the median of the market with a 50% spread from minimum to maximum. Incentive opportunity levels are competitive with practices of peer groups and benefits will be delivered at market competitive levels. Severance and perquisites reflect a conservative philosophy. The committee determined that the peer group would be primarily regional not-for-profit hospitals of similar size and complexity. National peer group will be used for reference purposes where appropriate. The hendrick health system personnel committee is delegated the responsibility for the executive compensation program by the board of trustees. The committee: sets the overall executive compensation philosophy to be implemented by hendrick health system; sets compensation components for the president & ceo; reviews, discusses and makes decisions based on the president & ceo's recommendations for his direct reports; reports a summary of the process back to the board of trustees along with the actual compensation approved for the president and ceo; and approves all incentive goals and awards.

Form 990, Part VI, Section C, Line 19

Describe whether the organization makes its documents available to public: the organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.

Filing and Contact Details

Filer

Filer Name
Hendrick Provider Network
EIN
75-2660403
In Care Of
% JEREMY WALKER
Phone
3256702000
Address
PO Box 3117, Abilene, TX 79604

Signing Officer

Name
Jeremy Walker
Title
CFO
Phone
7134994600
Signed
2018-07-15
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Tim Lancaster
Formed
1995
Legal Domicile
TX
Voting Board Members
5
Independent Board Members
0
Employees
411
Volunteers
0

Preparer

Firm
Bkd Llp
Address
2700 Post Oak Blvd Ste 1500, HOUSTON, TX 77056
Preparer
Amanda Maya
Phone
7134994600
Supplemental Narrative

Additional Explanations

Form 990, Part XI, Line 9

Other changes in net assets: equity contributions $25,364,459

Financial Statement Notes

Schedule D, Part X, Line 2

Fin 48 financial statements footnote in accordance with asc 740-10 fasb interpretation (fin 48), accounting for uncertainty in income taxes, management evaluated hendrick's tax positions and concluded that hendrick had taken no uncertain tax positions that required adjustment to the financial statements to comply with the provisions of this guidance. With a few exceptions, hendrick is no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for years before 2013.

Schedule D, Part XI, Line 2D

Reconciliation of revenue per audited financial statements to form 990 revenue on books, not on return: bad debt expense in audit revenue (3,983,903) unallocated difference 4,200 ----------- (3,979,703)

Schedule D, Part XI, Line 4B

Reconciliation of revenue per audited financial statements to form 990 revenue on return, not on books: rent income included in audit expense 133,000 -------- 133,000

Schedule D, Part XII, Line 2D

Reconciliation of expense per audited financial statements to form 990 expense on books, not on return: rent income included in audit expense (133,000) unallocated difference 4,200 other differences 215 --------- (128,585)

Schedule D, Part XII, Line 4B

Reconciliation of expense per audited financial statements to form 990 expense on return, not on books: bad debt expense in audit revenue 3,983,903 --------- 3,983,303

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IRS990/Desc0HENDRICK PROVIDER NETWORK OPERATES A PRENATAL CLINIC AND ALSO PROVIDES WOMEN'S HEALTH SERVICES, ONCOLOGY, CARDIOLOGY, CARDIOVASCULAR, FAMILY MEDICINE, RHEUMATOLOGY, PLASTIC SURGERY, GENERAL SURGERY, NEUROLOGY, ENDOCRINOLOGY, UROLOGY, OPHTHALMOLOGY, SLEEP MEDICINE AND INTERNAL MEDICINE SERVICES FOR PATIENTS IN THE ABILENE AND SURROUNDING AREA, MANY OF WHOM ARE UNINSURED OR ARE ON MEDICAID. THESE SERVICES ARE PROVIDED BY PHYSICIANS EMPLOYED BY THE COMPANY.
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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Summary only. Only limited summary data is available for this year.$22.3$21.6$0.74$74.6$142$67.5
2023Summary only. Only limited summary data is available for this year.$19.1$22.1$2.99$91.9$161$68.6
2022Summary only. Only limited summary data is available for this year.$20.7$19.7$0.99$80.8$144$63.1
2021Summary only. Only limited summary data is available for this year.$16.4$13.9$2.57$65.8$121$54.7
2020Summary only. Only limited summary data is available for this year.$20.4$22.7$2.28$49.5$87.8$38.3
2019Summary only. Only limited summary data is available for this year.$20.1$18.7$1.42$45.7$79.7$34.0
2018Summary only. Only limited summary data is available for this year.$19.8$19.8$0.00$41.2$69.7$28.5
2017Detailed filing. Detailed filing data is available for this year.$18.9$17.5$1.35$36.4$62.8$26.4
2016Summary only. Only limited summary data is available for this year.$18.2$15.9$2.35$32.1$52.2$20.1
2015Summary only. Only limited summary data is available for this year.$17.4$16.5$0.90$28.2$44.9$16.7
2014Summary only. Only limited summary data is available for this year.$17.4$15.4$1.99$22.7$35.1$12.4
2013Summary only. Only limited summary data is available for this year.$4.48$2.51$1.97$28.3
2012Summary only. Only limited summary data is available for this year.$4.60$1.58$3.02$20.9
2011Summary only. Only limited summary data is available for this year.$1.59$1.16$0.43$13.6
2010Summary only. Only limited summary data is available for this year.$2.05$0.96$1.10$13.2