Memorial Hermann Health System: $7.6B Revenue, $7.0B Expenses

Memorial Hermann Health System earns an A on the NonprofitTruth efficiency rubric — a top-tier rating that reflects healthy operating reserves, reasonable officer compensation, and steady multi-year revenue. The composite score of 81/100 places it in the upper bracket of U.S. tax-exempt organizations.

Memorial Hermann Health System operates at corporate scale — $7.6B in reported 2023 revenue. At over a billion in annual revenue, nonprofits typically run consolidated operations across multiple states or business lines, and the IRS Form 990 reflects a much larger operational footprint than a typical 501(c)(3). Financial health is a strength: Memorial Hermann Health System carries a healthy operating-reserve cushion against $7.0B in annual expenses, the kind of balance-sheet stability that helps an organization weather funding gaps without cutting programs.

Five-year revenue trajectory is strongly positive: Memorial Hermann Health System has grown materially in real terms, which usually signals successful fundraising and program expansion. Officer compensation is modest relative to organizational size: Memorial Hermann Health System reports $8.2M in total compensation for current officers and key employees (Form 990 Part IX, line 5) against $7.6B in revenue. The ratio is well within the bands third-party charity raters consider reasonable at this scale. Memorial Hermann Health System is categorized under Health — the largest segment of U.S. nonprofit revenue, dominated by hospitals, hospital systems, and health-research organizations. The financial profile in this category is capital-intensive, with large balance sheets and program service revenue that often dwarfs donations.