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IRS Form 990
IRS Form 990
CHRISTUS ST. Vincent is a federal tax-exempt, not-for-profit hospital. As a result of this designation, we are required to annually file IRS Form 990. It provides information about our mission, programs, and finances. As a part our commitment to share information with the community, we are pleased to provide our 2010 Form 990 filing (for the year ended June 30, 2011).
IRS Form 990 Schedule H
CHRISTUS St. Vincent is a not-for-profit hospital that operates to further our mission of improving lives by ‘providing excellent, compassionate health care to the patients and families we serve.” We do this by:
- Reinvesting our profits back into CHRISTUS St. Vincent through various programs and services.
- Providing care to everyone - regardless of his or her ability to pay.
- Providing a range of special benefits to the community, such as programs to manage care for persons with chronic diseases, health education and disease prevention initiatives, and care for persons who are uninsured or underinsured.
The IRS grants us tax exemption as a "charitable, community-oriented organization." Without this status, we could not continue to deliver the same level of health care services that are so important and necessary.
The federal government ruled that health care entities -like ours- report their community benefit programs. This includes a wide array of activities and services that need to be categorized and explained - in detail - on a form called "990 Schedule H." This document requires us to report information on:
- Charity care (financial assistance) and other community benefits
- Community building activities
- Medicare, bad debt and collection practices
- Management companies and joint ventures
- Facilities comprising the organization
Frequently Asked Questions
- Q: What is an Internal Revenue Service Form 990?
- Q: What organizations are required to file Form 990?
- Q: What is the purpose of Form 990?
- Q: When does CHRISTUS St. Vincent file its Form 990?
- Q: How is CHRISTUS St. Vincent different from a for-profit health care organization?
- Q: What is Community Benefit?
- Q: Why does CHRISTUS St. Vincent choose to post its Form 990 on its website?
- Q: The IRS Form 990 indicates the requirement for a Community Needs Assessment? Can you explain what that means?
- Q: What does CHRISTUS St. Vincent do with all the money it makes?
- Q: How much revenue did the hospital recognize and report in Sole Community Provider Funding for Indigent Care?
- Q: The IRS Form 990 shows that as of March 2011, CHRISTUS St. Vincent employed 2,440 workers. Is that accurate?
- Q: Why has the amount paid in salaries increased?
- Q: The IRS Form 990 lists the compensation for the highest paid hospital executives and physicians. Please explain.
- Q: Why did CHRISTUS St. Vincent’s legal fees increase?
- Q: Bad debt write-offs decreased by more than $10 million in FY11. What does that mean?
- Q: Where can I find more information about Form 990?
- Q: What if I have questions about the CHRISTUS St. Vincent Form 990s?
- Q: What is an Internal Revenue Service Form 990?
A: IRS Form 990 is an annual reporting form that certain federally tax-exempt organizations must file with the IRS. It provides information on the filing organization's mission, programs and finances.
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- Q: What organizations are required to file Form 990?
A: Most federal tax-exempt organizations, with the exception of churches and state institutions, and all 501(c)(3) private foundations, are required to file Form 990.
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- Q: What is the purpose of Form 990?
A: The Form 990 provides the public with important information, including financial information, about the filing organization, and is often the only source of such information. It is also used by government agencies to ensure that organizations such as CHRISTUS St. Vincent are meeting their not-for-profit missions.
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- Q: When does CHRISTUS St. Vincent file its Form 990?
A: CHRISTUS St. Vincent generally files its Form 990 each May for the preceding calendar year.
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- Q: How is CHRISTUS St. Vincent different from a for-profit health care organization?
A: As a not-for-profit health care system, CHRISTUS St. Vincent reinvests its operating margin back into the communities we serve by improving and expanding our health care services; purchasing new technology, upgrading facilities, adding key health care employees, including physician specialists, and ensuring that care is available to everyone, regardless of the ability to pay. Unlike for-profit hospitals, we do not pay dividends to stockholders, but instead, we use revenues to improve patient care and community health.
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- Q: What is Community Benefit?
A: Community Benefit, which is made possible by our tax-exempt status, means that CHRISTUS St. Vincent benefits the communities we are privileged to serve in a variety of ways, including charitable care, uncompensated care, educational programs support, community programs and services, health education and disease screening and prevention initiatives, child guidance and advocacy programs, and many others. These activities and investments are categorized and explained in detail in IRS Form 990 Schedule H.
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- Q: Why does CHRISTUS St. Vincent choose to post its Form 990 on its website?
A: By posting our 990 on our website, we are making it easily available to all of our constituents.
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- Q: The IRS Form 990 indicates the requirement for a Community Needs Assessment? Can you explain what that means?
A: This is the most significant event we are undertaking in accordance with the IRS Form 990. The goal is to develop a joint needs assessment that demonstrates a coordinated approach to assessing the health care needs of our community. In addition, the intention is to enhance collaboration, achieve efficiency, and avoid duplication of efforts given that CHRISTUS St. Vincent, the Santa Fe County Health Policy and Planning Commission, and the City of Santa Fe all have an interest in pursuing a community needs assessment.
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- Q: What does CHRISTUS St. Vincent do with all the money it makes?
A: Because of our status as non-profit hospital, all of CHRISTUS St. Vincent’s net income is reinvested into the hospital for capital improvements, for the acquisition new technology and medical equipment, and for the expansion of health care services within the community. Some revenue is also put into an investment account for future projects or future reinvestment into our hospital.
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- How much revenue did the hospital recognize and report in Sole Community Provider Funding for Indigent Care?
Sole Community Provider Funding reported in the latest filing (Line 2a, Part VIII of CSV’s IRS Form 990) is $35,720,044 of the total $308,381,508 per Line 2a. It is important to note that this amount is for Fiscal Year 2011 and not Fiscal Year 2010 (the tax year is 2010, and the Fiscal Year is 2011).
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- Q: The IRS Form 990 shows that as of March 2011, CHRISTUS St. Vincent employed 2,440 workers. Is that accurate?
A: No, that number is a reflection of how many people were employed (and how many W2s were issued) by the hospital during the time period covered in the filing. It does not take into account factors such as turnover and temporary workers. CHRISTUS St. Vincent employs about 2,060 employees.
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- Q: Why has the amount paid in salaries increased?
A: Overall, the total amount of salaries paid to our employees increased from about $115 million to more than $123 million. The reason for this is that we have hired more employees including a higher-level staff of highly-trained nurses and doctors. In addition, we have also provided annual pay increases to eligible employees.
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- Q: The IRS Form 990 lists the compensation for the highest paid hospital executives and physicians. Please explain.
A: The compensation for the CHRISTUS St. Vincent Senior Executive Team, as well as for physicians and other hard to recruit specialty positions (includes doctors, nurses and techs), are determined by a number of factors.
For the executive team, CHRISTUS Health engages an independent, external consultant to conduct market analyses to determine if we are compensating our senior executives appropriately. The independent consultant used to help determine executive compensation is Sullivan, Cotter & Associates, Inc.
The last surveys, which were completed in 2010, confirmed that executive salaries at CHRISTUS rank at the 50th percentile of our comparable hospitals across the country. In other words, we provide compensation in the average range when compared to other hospitals across the U.S.
The Senior Executive Team is responsible for the operation and performance of a complex, multifaceted health system that includes a regional hospital serving 7 counties in North Central New Mexico with a total of 268 licensed beds, 20 specialty clinics and 340 physicians representing more than 35 specialties. The hospital has also worked to hire more than 100 physicians and providers, including 4 neurosurgeons (providing Santa Fe 24/7 neurosurgery coverage).
For our physician and nurse specialties, we must provide competitive salaries that are sometimes higher than average in order to recruit and retain physicians in certain specialty fields. This is required to provide the level of care our community demands.
In most cases, our physicians are compensated based on the number of patients treated. This can cause salaries to increase or decrease from year to year.
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- Q: Why did CHRISTUS St. Vincent’s legal fees increase?
A: As with all health care organizations, legal fees can vary from year to year. CHRISTUS St. Vincent’s legal fees increased from the previous year’s filing of $3,300, to $8.2 million in the current filing. Primarily, the increase reflected in the current filing was the result of an adjustment per our annual actuarial study for medical malpractice lawsuit reserves, and accruals for other legal costs.
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- Q: Bad debt write-offs decreased by more than $10 million in FY11. What does that mean?
A: Each year, CHRISTUS St. Vincent provides health care and other services for which payment is never received. This uncompensated care is often written off as bad debt. For the current filing that number decreased from $24.2 million to $13.9 million. IRS reporting requirements change each year and for current filing, more of that bad debt was recognized and reported as charity care. Overall, the percentage increased for all bad debt write-offs.
CHRISTUS St. Vincent has adopted an uncompensated care policy where revenue from service provided to the uninsured is recognized at the time of payment, rather than at the time of service. This policy is the result of a lack of reasonable assurance of collection for services provided to the uninsured due to the hospital’s historically low collection rate.
The hospital recognizes that some patients are unable to or are unwilling to ask for financial assistance because of barriers to applying for assistance such as educational level and literacy, documentation limitations and fear of the application process.
- Q: Where can I find more information about Form 990?
A: GuideStar, an information service specializing in reporting on U.S. nonprofit companies, is an excellent resource at http://www.guidestar.org/rxg/help/faqs/form-990/index.aspx.
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- Q: What if I have questions about the CHRISTUS St. Vincent Form 990s?
A: You can email us at ContactUs@stvin.org.
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