HEALTHCARE
One of the more frequently leveled complaints the public has about nonprofit healthcare systems is that they are too complicated structurally, making it difficult for people to understand their operations.
But that’s not really the fault of the healthcare providers.
From the time Shannon West Texas Memorial Hospital opened up to this very day, the trustees have been required to adapt to constantly changing conditions in healthcare, and in government regulation.
From the introduction of sulfa drugs in the late 1930s to the use of penicillin in the mid-1940s, Shannon has been front-and-center for the antibiotic revolution in medicine, and the rise of vaccines that eventually stopped the polio epidemics that regularly terrified towns like San Angelo.
At each stage of significant advancement, Shannon trustees worked to bring new technology and techniques to San Angelo, while constantly adapting to tax code changes and working to manage the principal of the trust in the most beneficial way possible.
Changes in U.S. tax code are actually responsible for more changes to corporate structure than any other single factor.
For the first few decades of Shannon’s existence, to maintain tax-exempt status, hospitals had to provide a certain amount of uncompensated charity care to the poor.
That began to change in 1969 with IRS Ruling 69-545, which replaced language about providing uncompensated care to the indigent with the concept of a “Community Benefit” standard, leading many entities to become “community” hospitals, which allowed them to retain their 501(c)(3) status by providing things like an emergency rooms open to all, and by adopting uncompensated-care policies.
The change was challenged extensively, but ultimately upheld in the mid-1970s.
More major changes came in 1983, when the IRS further loosened guidelines allowing some hospitals to qualify for tax-exempt status without operating an emergency room, which previously served as a key indicator of providing care to all.
According to a report on the subject by the Kaiser Family Foundation, this change was made in response to expanding Medicare and Medicaid programs, which industry leaders argued would reduce the need for charity care.
According to experts, hospitals like Shannon employ complex organizational structures to serve their dual mission of providing community service while maintaining financial viability.
Investment experts say this requires balancing the needs of diverse and often conflicting stakeholders, because unlike for-profit hospitals that focus solely on shareholder returns, nonprofits aim for access to care for the entire community, and provide charity care while meeting specific IRS community benefit standards.
The widest-possible range of local people and groups are invested in the Shannon Healthcare System, including patients, doctors and nurses, hospital management, community leaders, and local government officials.
Another complicating factor is the fact that today’s nonprofit health systems often function as hybrid organizations requiring many separate entities to manage everything legally.
Also, every hospital is an inherently complex organization, with many departments operating independently — and in concert with other departments — to accommodate a constant flow of patients and maintain care standards.
Here is a look at Shannon Health Systems component entities, executive compensation and land ownership.
________SHANNON HEALTH BY THE NUMBERS________
The following data is based on the most recent tax filings for the most recent fiscal year, accessed through ProPublica.org’s Nonprofit Explorer.
(1) Trust/Trustees
Shannon West Texas Memorial Hospital
- 501(c)(3)
- Type II
- TAX ID: 75-0800679
- PO Box 49
Click here to see the Pro Publica page.
(2) Healthcare
Shannon Health System
- 501(c)(3)
- Type II
- TAX ID: 75-2602411
- 120 E Harris Ave
(3) Healthcare
Shannon Rural Health Clinics Inc
- 501(c)(3)
- Type III-FI
- TAX ID: 75-2940211
Click here to see the Pro Publica page.
(4) Support Services
Shannon Real Estate Services INC
- 501(c)(3)
- 10
- TAX ID: 27-0075630
- 120 E Harris Ave
Click here to see the Pro Publica page.
(5) Healthcare
Shannon Medical Center
- 501(c)(3)
- TAX ID: 75-2559845
- 120 E Harris Ave
Click here to see the Pro Publica page.
(6) Healthcare
Shannon Clinic
- 501(c)(3)
- TAX ID: 75-2600873
- 120 E Harris Ave
Click here to see the Pro Publica page.
(7) Support Services
Shannon Business Services Inc.
- 501(c)(3)
- TAX ID: 43-2038769
- 120 E Harris Ave
Click here to see the Pro Publica page.
(8) Support Services
Shannon Medical Management
- 501(c)(3)
- TAX ID: 20-8367966
- 120 E Harris Ave
Click here to see the Pro Publica page.
(9) Support Services
Shannon Medical Center Pioneer Fdn.
- 501(c)(3)
- TAX ID: 35-2229303
Click here to see the Pro Publica page.
________SHANNON ASSOCIATED C-CORPORATIONS________
Tax returns are not available through ProPublica for entities identified as Related Organizations Taxable as a Corporation or Trust (for those answering “Yes” on Form 990, Part IV, line 34).
(1) Utilities Review
Legacy Management Services
- C Corporation
- TAX ID: 75-2544450
- 2018 Pulliam St
(2)Medical Insurance
Legacy Health Solutions
- C Corporation
- TAX ID: 20-0720762
- 2018 Pulliam St
________EXECUTIVE COMPENSATION AND PAYROLL________
EXECUTIVE SUITE
- President/CEO: $1,138,305 and $134,816 (other)
- Director: $1,102,568 and $100,437
- Director: $881,230 and $109,538
- Vice President/CFO: $507,643 and $99,651
SHANNON MEDICAL CENTER
- Executive compensation: $3,965,197 which represents 0.6 percent of total expenses
- Other Salaries and Wages: $187,259,136 which represents 29.7 percent of total expenses
SHANNON CLINIC
TOP COMPENSATION
- Physician: $4,153,645 and $96,517 (other)
- Physician: $2,294,668 and $91,963
- Physician/Chairman: $2,106,507 and $112,107
- Executive Compensation: $11,861,885 which represents 2.9 percent of total expenses
- Other Salaries and Wages: $160,821,623 which represents 39.3 percent of total expenses
SHANNON MEDICAL MGMT
- COO/Secretary/Treasurer: $529,737 and $87,584 (other)
- CFO: $365,825 and $59,421
- CNO/COO: $282,097 and $58,452
- Executive Compensation: $1,383,116 which represents1.3 percent of total expenses
- Other Salaries and Wages: $62,476,004 which represents 57.4 percent of total expenses
SHANNON BUSINESS SERVICES
- Other Salaries and Wages: $5,310,039 which represents 15.2 percent of total expenses
________SHANNON REAL ESTATE HOLDINGS________
____AS SHANNON CLINIC____
Items are listed by name, property ID, geographic ID, and address, as supplied by the Tom Green County Appraisal District.
- SHANNON CLINIC – SLEEP CENTER DEPT
P000075968
36-02011-0491-000-00
HAMILTON WAY 2141 - SHANNON CLINIC – SOUTHWEST FAMILY PRACTICE DEPT
P000078656
36-02006-0677-000-00
4450 SUNSET DRIVE - SHANNON CLINIC – WEST TEXAS SPORTS MEDICINE DEPT
P000079307
36-02005-0641-000-00
4235 SOUTHWEST BLVD - SHANNON CLINIC
P000081773
36-02002-0387-000-00
120 E. BEAUREGARD - SHANNON CLINIC – OBGYN PEDIATRICS DEPT
P000083020
36-02000-2028-000-00
225 E. BEAUREGARD - SHANNON CLINIC SUNSET
P000102891
36-02016-2891-000-00
4251 SUNSET DRIVE - SHANNON CLINIC NORTH
P000103041
36-02016-3041-000-00
2626 N. BRYANT BLVD - SHANNON CLINIC – ORTHOTICS
P000104184
36-02018-4184-000-00
110 E. TWOHIG - SHANNON CLINIC – SUMMIT ORTHROPEDICS
P000104374
36-02018-4374-000-00
3150 APPALOOSA CIRCLE
____AS SHANNON MEDICAL CENTER____
- SHANNON MEDICAL CENTER – DIALYSIS DEPT
P000078261 AND P000086761
36-02006-0747-000-00 AND 36-01992-1010-000-00
2018 PULLIAM (ST. JOHN’S CAMPUS) - SHANNON IMAGING CENTER
R000001990
25-46450-0001-050-00
3301 S. BRYANT BLVD - SHANNON MEDICAL CENTER – S. PARKING LOT
R000005218
23-43180-0014-001-00
HARRIS AVENUE - SHANNON WOMENS & CHILDRENS HOSPITAL
R000005219
23-43180-0015-001-00
31 S. MAIN - SHANNON CLINIC DOCTORS PARKING
R000005220
23-43180-0015-002-00
24 S. MAGDALEN - SHANNON MEDICAL CENTER – MAIN HOSPITAL
R000005221
23-43180-0022-001-00
120 E. HARRIS - SHANNON MEDICAL CENTER – VACANT LOT
R00000566
23-41700-0430-002-00
NORTH OAKES - SHANNON MEDICAL CENTER – W. PARKING LOT
R000006045
23-42000-8000-017-00
38 E. HARRIS - SHANNON MEDICAL CENTER – N. PARKING LOTS
R000006283 AND R000006284
23-41700-0225-001-00 AND 23-41700-0225-002-00
105-107 N. MAGDALEN - SHANNON CLINC SW AND SURGERY CENTER
R000007999 AND R000008000
22-40050-0003-001-00 AND 22-40050-0003-001-50
4482 SUNSET DRIVE - PARKING LOT BETWEEN SHANNON CLINIC SW AND SURGERY CENTER
R000008002
22-40050-0003-003-00
4472 SUNSET DRIVE - SHANNON MEDICAL CENTER – VACANT LOT/RAMADA INN LAND
R000011759 AND R000011760 AND R000011761
19-34300-0009-001-00 AND 19-34300-0009-002-00 AND 19-34300-0009-003-00
111-125 N. OAKES - SHANNON MEDICAL CENTER – N. PARKING LOT
R000011806
19-34250-0000-014-00
131 N. OAKES - SHANNON MEDICAL CENTER – VACANT LOT NEAR SOUTH CAMPUS
R000017682
15-28700-0000-001-00
4421 KNICKERBOCKER - SHANNON MEDICAL CENTER SOUTH CAMPUS
R000017686
15-28700-0000-005-00
3501 KNICKERBOCKER - SHANNON MEDICAL CENTER SOUTH CAMPUS 2
R000017687
15-28700-0000-006-00
3555 KNICKERBOCKER - SHANNON SURGICAL CENTER SOUTH PARKING, EXECUTIVE DRIVE
R000017689 AND R000017692
15-28700-0000-007-00 AND 15-28700-0000-008-10 - SHANNON SURGICAL CENTER SOUTH
R000017695
15-28700-0000-009-00
3501 EXECUTIVE DRIVE - SHANNON MEDICAL CENTER SOUTH CAMPUS
R000017697
15-28700-0000-010-00
STRIP OF LAND ABUTTING SUNSET DR. - RIVER CREST HOSPITAL
R000033036
03-14350-0000-001-00
1636 HUNTERS GLEN RD - SHANNON ST. JOHN’S CAMPUS
R000034535
03-13800-0020-003-00
2018 PULLIAM
SMALL PARCEL NEAR STREET - SHANNON – ST. JOHN’S CAMPUS
000073266
38-00344-0004-000-00
PULLIAM 2018 - SHANNON MEDICAL CENTER – N. PARKING
R000106669
23-43180-0022-000-00
134 N. OAKES - SHANNON MEDICAL CENTER S1
P000079374
36-02005-0722-000-00
2142 SUNSET DRIVE - SHANNON MEDICAL CENTER – SOUTH
P000085255
36-01995-1042-000-00
3501 KNICKERBOCKER - SHANNON MEDICAL CENTER – S2
P000078688
36-02006-0711-000-00
2141 HAMILTON WAY - SHANNON MEDICAL CENTER – S3
P000076436
36-02010-0693-000-00
3350 EXECUTIVE DRIVE - SHANNON HEALTH CLUB
P000086651
36-01992-0888-000-00
3336 W. LOOP 306 - SHANNON PHARMACY
P000082748
36-02001-0150-000-00
119 E. BEAUREGARD
____AS SHANNON REAL ESTATE SVCS.____
- R000002158 – 25-45950-0050-006-00 – 4235 SOUTHWEST BLVD – FORMERLY FUDDRUCKERS
- R000005214 – 23-43170-0001-001-00 – 3016 VISTA DEL ARROYO DRIVE – SHANNON CLINIC RED ARROYO
- R000005217 – 23-43180-0001-001-00 – 102 N. MAGDALEN – SHANNON CLINIC MAGDALEN
- R000005903 – 23-41700-0140-001-00 – 120 E. BEAUREGARD – SHANNON CLINIC
- 000005912 – 23-41700-0150-006-00 – 227 E. HARRIS – SHANNON WOMENS & CHILDRENS
- R000006321 – 23-41700-0210-007-00 – 21 N. MAIN – SHANNON CLINIC HARRIS PARKING
- R000006322 AND R000006332 – 23-41700-0210-009-00 AND 23-41700-0215-003-00
VACANT LOTS AT 239 E. COLLEGE AVE - R000006509- 23-41700-0060-001-00= 130 S. OAKES – FORMER MASONIC LODGE
- R000006512 – 23-41700-0060-004-00 – – SHANNON ONCONLOGY CTR. (131 E. BEAUREGARD) AND PARKING GARAGE (110 E. TWOHIG)
- R000006524 – 23-41700-0060-018-00 – 116 S. OAKES – SHANNON PHARMACY PARKING
- R000008003 – 22-40050-0003-004-00 – 4450 SUNSET DRIVE
- R000017000 – 15-30150-0000-001-00 – KNICKERBOCKER 3387
- R000017004 – 15-30150-0000-004-00 – EXECUTIVE DRIVE 3350
- R000017651 – 15-28700-0004-001-00 – SUNSET DRIVE 2142
- R000017654 – 15-28700-0005-001-00 – HAMILTON WAY 2141
- R000017657 – 15-28700-0007-001-00 – EXECUTIVE DRIVE & SUNSET 0
- R000017693 – 15-28700-0000-008-30 – EXECUTIVE DRIVE 3605
- R000021012 – 13-23700-0009-001-00 – MAIN 206 N
- R000021549 – 13-23700-0002-001-00 – BEAUREGARD 225 E
- R000027131 – 07-18700-0000-009-00 – LOOP 306 3336
- R000027132 – 07-18700-0000-009-10 – LOOP 306 0
- R000028938 – 07-18600-0001-000-00 – SUNSET DRIVE 4251
- R000032162 – 03-14350-0044-002-00 – APPALOOSA CIRCLE 3150
- R000073268 – 38-00344-0005-000-00 – PULLIAM 2030
- R000102775 – 23-43180-0021-000-00 – HARRIS 220 E
- R000105399 – 15-28700-0005-001-50 – HAMILTON WAY 2141
- R000107553 – 15-30150-0000-001-50 – KNICKERBOCKER 3387
- R000030747 – 05-16600-0000-026-00 – BRYANT BLVD 2626 N
- P000105954 – 36-02022-5954-000-00 – APPALOOSA TRAIL 6046
- P000084771 – 36-01996-0716-000-00 – LOOP 306 3336 W
- P000078336 – 36-02006-0854-000-00 – SUNSET DRIVE 4482
- P000079381 – 36-02005-0731-000-00 – SHANNON SURGERY CENTER SOUTH
- P000088517 – 36-01707-0000-000-00 – 122 S.OAKES – SHANNON WEST TX MEMORIAL HOSP TRUSTEES
- R000005215 – 23-43175-0001-000-00 – APPALOOSA TRAIL – SHANNON WEST TX MEMORIAL HOSP TRUSTEES
- R000106818 – 23-43175-0001-002-00 – 6046 APPALOOSA TRAIL – SHANNON WEST TX MEMORIAL HOSP TRUSTEES
________SHANNON END NOTES________
Form 990, Part V, Line 1a FORM 1099 FILINGS ALL FORM 1099 FILINGS FOR THE SYSTEM ARE ISSUED OUT OF SHANNON MEDICAL CENTER, A RELATED ORGANIZATION.
Form 990, Part VI, Line 6 Classes of members or stockholders TRUSTEES OF SHANNON WEST TEXAS MEMORIAL HOSPITAL IS THE SOLE MEMBER OF THE CORPORATION.
Form 990, Part VI, Line 7a Members or stockholders electing members of governing body THE BOARD OF DIRECTORS SHALL CONSIST OF THE BOARD MEMBERS OF THE TRUSTEES OF SHANNON WEST TEXAS MEMORIAL HOSPITAL.
Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders APPROVAL OF THE SOLE MEMBER, TRUSTEES OF SHANNON WEST TEXAS MEMORIAL HOSPITAL, IS REQUIRED FOR BUDGETS, LARGE FINANCIAL EXPENDITURES THAT DEVIATE FROM BUDGET, SALE OF PROPERTY, MERGER, ACQUISITION, OR CONSOLIDATION, BORROWING OF MONEY, SEEKING OR GIVING GRANTS, SETTLEMENT OF CLAIMS OR LITIGATION, AMENDMENT OF BYLAWS, AND CONTRACTS IN WHICH THE CORPORATION ASSUMES FINANCIAL RISK.
Form 990, Part VI, Line 11b Review of form 990 by governing body THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE THE FORM 990. ONCE PREPARED, THE FORM IS REVIEWED BY THE ORGANIZATION’S INTERNAL ACCOUNTANTS PRIOR TO FILING. A COPY WILL BE MADE AVAILABLE TO THE FINANCE COMMITTEE AND BOARD BEFORE FILING.
Form 990, Part VI, Line 12c Conflict of interest policy EACH TRUSTEE IS AWARE OF THE CONFLICT OF INTEREST POLICY AND ITS REQUIREMENTS. DURING THE YEAR, TRUSTEES EXCUSE THEMSELVES FROM VOTING ON ISSUES THAT THEY FEEL MAY BE A CONFLICT OF INTEREST. EACH YEAR THE TRUSTEES’ BUSINESS AND NONBUSINESS RELATIONSHIPS THAT MAY REQUIRE CONFLICT OF INTEREST NOTIFICATIONS OR PROCEDURES ARE DISCUSSED AND DISCLOSED.
Form 990, Part VI, Line 15a Process to establish compensation of top management official THE COMPENSATION OF THE TOP MANAGEMENT OFFICIAL IS DETERMINED AND PAID BY, SHANNON MEDICAL CENTER, A RELATED ORGANIZATION. GALLAGHER COMPLETED AN EXECUTIVE COMPENSATION STUDY IN OCTOBER 2022, AND IT COVERED ALL EXECUTIVE SALARIES. EXECUTIVE COMPENSATION IS REVIEWED ANNUALLY BY THE BOARD OF TRUSTEES’ OPERATIONS COMMITTEE, WHICH CONSULTS COMPARABILITY DATA AND KEEPS CONTEMPORANEOUS RECORDS OF ITS DECISIONS.
Form 990, Part VI, Line 15b Process to establish compensation of other employees THE COMPENSATION OF THE TOP MANAGEMENT OFFICIAL IS DETERMINED AND PAID BY, SHANNON MEDICAL CENTER, A RELATED ORGANIZATION. GALLAGHER COMPLETED AN EXECUTIVE COMPENSATION STUDY IN OCTOBER 2022, AND IT COVERED ALL EXECUTIVE SALARIES. EXECUTIVE COMPENSATION IS REVIEWED ANNUALLY BY THE BOARD OF TRUSTEES’ OPERATIONS COMMITTEE, WHICH CONSULTS COMPARABILITY DATA AND KEEPS CONTEMPORANEOUS RECORDS OF ITS DECISIONS.
Form 990, Part VI, Line 19 Required documents available to the public COPIES OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICIES, AND FINANCIAL STATEMENTS ARE PROVIDED TO THE PUBLIC UPON REQUEST.
