Behind the Numbers: Insights from Catholic Health Services’ 990 Tax Return

Behind the Numbers: Insights from Catholic Health Services’ 990 Tax Return

Catholic Health Services (CHS) is one of the largest healthcare providers in the United States. It operates multiple hospitals, long-term care facilities, and a range of other healthcare services. While CHS is primarily a non-profit organization, it is still a business that must account for its financial operations and adhere to regulations. Each year, CHS is required to file a tax return known as the 990. This form contains critical information about the organization’s financial health, structure, and mission. Understanding what is contained in these documents can help managers and other stakeholders make informed decisions about CHS’s future.

Revenue Sources

One of the most essential sections of the 990 is the one that details CHS’s sources of revenue. In 2019, CHS received over $4.5 billion in total revenue. The vast majority of this revenue came from patient care services, which accounted for over $3.6 billion. However, CHS also received substantial contributions from government grants, which totaled over $425 million. Smaller revenue sources include investments, income from fundraising activities, and rental income.

Expenses

CHS is a large organization with a significant number of expenses. In 2019, it spent approximately $4.5 billion on various operations, including salaries, marketing, insurance, and facility maintenance. The biggest expense was employee compensation, which accounted for over $2.9 billion. Other significant expenses include professional fees, supplies, and materials, and occupancy costs. Interestingly, CHS also recorded over $28 million in losses from investments, which may impact future decision-making regarding investments.

Governance and Structure

Another critical section of CHS’s 990 details its governance and organizational structure. The organization is run by a group of executives and managers who are responsible for various operations. Plus, there are additional committees and units that help support the organization’s various services. Additionally, CHS has a Board of Directors that oversees the organization’s strategic direction and helps ensure its mission is being met. Understanding how CHS is organized, and who is responsible for making decisions can give stakeholders insight into how the organization operates.

Mission and Activities

Finally, the 990 contains information about CHS’s mission and activities. The organization’s primary mission is to provide compassionate care to those in need. In addition to delivering medical services, CHS also engages in community outreach and education programs to help improve health outcomes. The organization is also committed to offering care to vulnerable communities and works with local governments and nonprofits to achieve this goal.

Conclusion

In conclusion, the 990 tax return is a vital document that can provide critical insights into CHS’s operations and finances. Understanding the sources of revenue, expenses, governance, and mission can help support better decision-making by managers, executives, and other stakeholders. As CHS continues to expand its services and provide compassionate care to those in need, understanding the information contained within the 990 will play an essential role in ensuring its long-term success.

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