Mission: PROVIDE SERVICES FOR HANDICAPPED AND CHRONICALLY ILL CHILDREN

Hacienda Inc. is a 501(c)(3) organization, with an IRS ruling year of 1971, and donations are tax-deductible.

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Contact Information

  https://www.haciendainc.org/

 1402 E SOUTH MOUNTAIN AVE
Phoenix AZ 85042-7925


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Moderate Concern Advisory for:
Hacienda Inc.

On January 24, 2019, CNN reported on the charges of improper conduct allegedly taking place at Hacienda Healthcare in an article titled, "A nurse is accused of impregnating a woman in a vegetative state who later gave birth." For this reason, we have issued a Moderate Concern CN Advisory as the allegations have yet to be confirmed. For more information regarding this matter, please see the CNN article.

  • On January 24, 2019, AZCentral published an article titled, "Hacienda's ex-CEO faced sexual-harassment, bullying complaints; board kept him on job." For more information, please see the AZCentral article.

  • On February 5, 2019, AZCentral published an article titled, "Gov. Doug Ducey asks Arizona Attorney General Mark Brnovich to investigate Hacienda HealthCare." For more information, please see the AZCentral article.

  • On February 19, 2019, AZCentral published an article titled, "Rape at health-care facility reveals questionable deals, nepotism by board leaders." For more information, please see the AZCentral article.

  • On May 23, 2019, CNN published an article titled, "A disabled woman who gave birth at a Phoenix care facility was likely pregnant before, documents allege." For more information, please see the CNN article.

  • On January 2, 2020, 12 News published an article titled, "Victim in Hacienda Healthcare scandal was also abused in 2002, lawsuit says." For more information, please see the 12 News article.

  • On January 16, 2020, The Associated Press published an article titled, "Arizona-based health care provider settles with Medicaid." For more information, please see The Associated Press article.

  • On September 2, 2020, AZCentral published an article titled, "Former execs of Hacienda HealthCare indicted, facility to pay $11 million over fraud." For more information, please see the AZCentral article.

  • On June 15, 2021, AZCentral published an article titled, "Judge approves $15 million settlement in Hacienda HealthCare lawsuit over patient rape." For more information, please see the AZCentral article.

Charity Response

A Statement from Hacienda Healthcare:

In response to recent events, Hacienda (www.haciendainc.org)  has aggressively revamped its security infrastructure, overhauled its care policies and changed its organizational culture.
 
Every member of the Hacienda organization is troubled beyond words to think that a licensed practical nurse could be capable of seriously harming a patient. Nathan Sutherland, who held a current state of Arizona practical nurse’s license and who had undergone an extensive background check upon hiring – was terminated from Hacienda the moment our leadership team learned of his arrest. The two doctors who cared for the victim in this awful case no longer see Hacienda patients. Since the first minutes of this police investigation, the Hacienda team continues to cooperate with investigators from multiple agencies in every way possible.
 
We will continue to review and improve what is already an in-depth vetting process for caregivers at Hacienda. We will not tolerate any mistreatment of a Hacienda patient, nor will we stop until every Hacienda patient is as safe as we can make them.
    
Once again, we offer an apology and send our deepest sympathies to the client and her family.
 
Former County Attorney Rick Romley has been engaged in a comprehensive internal review to ensure no Hacienda patient is ever again victimized in any way. We have done everything in our power to cooperate with state and law enforcement.
 
In addition to these leadership and organizational changes, Hacienda has agreed to the State of Arizona’s request to have a third-party management team in place to oversee patient care and daily operations. The object, again, is to ensure that not a single Hacienda patient is in danger or receiving anything less than exceptional and compassionate care.
 
These efforts will not stop. These are not cosmetic changes. Rather, this organization intends to do everything in its power to restore its credibility with our patients, their families, the public, our supporters, and Gov. Ducey. As he does, we too, believe that no patient in Hacienda’s care can ever again be placed in harm’s way.

 

 

This charity has received a Moderate Concern Advisory due to an open or pending investigation regarding allegations of possible illegal activity, improper conduct, organizational mismanagement, or other matters of concern. Please note that this investigation has not concluded and that the allegations being investigated have not been confirmed by the U.S. legal system. Charity Navigator aims to provide donors and users with as much information as possible in order to make an informed giving decision. This advisory will be updated once we become aware that the investigation is completed. The views and opinions expressed here are those of the authors of sources used for the reported information, and not those of Charity Navigator. Charity Navigator is not responsible for the nature or content of the information presented through such external sources and websites. For more information on how or when we decide to publish a CN Advisory, please review our methodology.


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Encompass Rating System by Charity Navigator


Overall Score

60

out of 100

This charity's score is a failing score.
This overall score is calculated entirely from a single beacon score: 100% Finance & Accountability


Learn about the Encompass Rating System: Overview | FAQ | Release Notes

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...   Finance & Accountability


This score provides an assessment of a nonprofit's financial health (stability, efficiency and sustainability) and its commitment to governance practices and policies.


Finance & Accountability Score

60

out of 100

The score earned by Hacienda Inc. is a failing score

This V5 of the Finance & Accountability Score provides a baseline measure of an organization’s health including the indicators listed in the report below.

This score represents Form 990 data from 2020, the latest year published by the IRS.



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Finance & Accountability Report

60

of 100 points

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Program Expense

Program Expense Ratio

82.55%

Higher effect on score

More data  


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s). This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver.


Program Expense Percentage

Amount of Credit Received

70% or higherFull Credit
60% - 69.9%Partial Credit
Below 50%Zero Points for Both Program Expense percentage AND Liabilities to Assets

Source: IRS Form 990

Board Composition

1/1 Independent

Higher effect on score


Charity Navigator looks for at least 3 board members, with more than 50% of those members identified as independent (not salaried).


The presence of an independent governing body is strongly recommended by many industry professionals to allow for full deliberation and diversity of thinking on governance and other organizational matters.


Source: IRS Form 990

Independent Audit or Financial Review

Audited

Higher effect on score


An Audit, Review, or Compilation provides important information about financial accountability and accuracy. Organizations are scored based on their Total Revenue Amount:

Total Revenue Amount

Expectation to Receive Credit

$1 million or higherExpected to complete an audit
$250,000 - $1 millionExpected to complete an audit, review, or compilation
Less than $250,000No expectation (removed from scoring methodology)

Source: IRS Form 990

Liabilities to Assets Ratio

92.24%

Lower effect on score


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990). This ratio is an indicator of an organization’s solvency and/or long-term sustainability.

Liabilities to Assets Ratio

Amount of Credit Received

Less than 50%Full Credit
50% - 59.9%Partial Credit
60% or moreNo Credit

Source: IRS Form 990

Website

Listed

Lower effect on score


Charity Navigator looks for a website on the Form 990 as an accountability and transparency metric.


Nonprofits act in the public trust and reporting publicly on activities is an important component.


Source: IRS Form 990

Conflict of Interest Policy

Listed

Lower effect on score


Charity Navigator looks for the existence of a conflict of interest policy on the Form 990 as an accountability and transparency measure.


This policy protects the organization and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer, director and/or key employee of the organization.


Source: IRS Form 990

Board Meeting Minutes

Documented

Lower effect on score


Charity Navigator looks to confirm on the Form 990 that the organization has this process in place as an accountability and transparency measure.


An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference.


Source: IRS Form 990

Document Retention and Destruction

Listed

Lower effect on score


Charity Navigator looks for the existence of a document retention and destruction policy per the Form 990 as an accountability and transparency measure.


This policy establishes guidelines for the handling, backing up, archiving and destruction of documents. These guidelines foster good record keeping procedures that promote data integrity.


Source: IRS Form 990

Whistleblower Policy

Listed

Lower effect on score


Charity Navigator looks for the existence of a whistleblower policy per the Form 990 as an accountability and transparency measure.


This policy outlines procedures for handling employee complaints, as well as a confidential way for employees to report financial or other types of mismanagement.


Source: IRS Form 990

Additional Information

Unscored

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are up to five of this organization's highest compensated employees. This compensation data includes salary, cash bonuses, and expense accounts and is displayed exactly how it is reported to the IRS. The amounts include salary, cash bonuses, and expense accounts. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on Form W-2. Read the IRS policies for compensation reporting



PERRY PETRILLI, CEO

$251,885


LAURA WORTHY, FINANCE DIRECTOR

$152,291


TERESA DUNLAP, DIRECTOR OF NURSING, ICF

$137,780


DEBRA KULKAY, DIRECTOR OF REVENUE CYCLE

$121,716


LINDA STILLMAN, DIRECTOR OF HUMAN RESOURCE

$120,713


Source: IRS Form 990 (page 7), filing year 2020

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Aid to the handicapped (see also 031) (BMF activity code: 160)

Hospital (BMF activity code: 150)

Combat juvenile delinquency (BMF activity code: 328)


Foundation Status:

Organization that normally receives no more than one-third of its support from gross investment income and unrelated business income and at the same time more than one-third of its support from contributions, fees, and gross receipts related to exempt purposes.  509(a)(2) (BMF foundation code: 16)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

Hacienda Inc. cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.


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Additional Information

Unscored

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Largest Programs

Largest Programs



Hacienda Inc. reported its three largest programs on its FY 2020 Form 990 as:


$12,141,259

Spent in most recent FY

65%

Percent of program expenses


INTERMEDIATE CARE FACILITY: THE ORGANIZATION OPERATES A STATE OF THE ART FACILITY WHICH OFFERS THREE SPECIALIZED PROGRAMS. THE HOSPITAL-TO-HOME PROGRAM PROVIDES SHORT-TERM MEDICAL INTERVENTION TO SPEE ... (More)


$4,446,848

Spent in most recent FY

24%

Percent of program expenses


GROUP HOMES, MEDICAL GROUP HOMES: THE ORGANIZATION OPERATES EIGHT GROUP HOMES IN THE COMMUNITY; FIVE THAT ARE MEDICAL FACILITIES AND TWO TRADITIONAL GROUP HOMES AND ONE INDIVIDUAL DESIGNED LIVING ARRA ... (More)


$1,624,649

Spent in most recent FY

8%

Percent of program expenses


THE ORGANIZATION OPERATES A DAY TREATMENT JOB AND TRAINING PROGRAM IN PHOENIX, ARIZONA FOR ADULTS AND TEENAGERS WITH DEVELOPMENTAL DISABILITIES.


...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

Not Currently Scored

Hacienda Inc. is currently not eligible for a Leadership & Adaptability score because we have not received its L&A survey responses.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that the organization has not yet submitted data for evaluation.


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...   Culture & Community


This score provides an assessment of the organization's engagement with the constituents it serves, a practice we term Constituent Feedback. When organizations listen to constituents, they are able to better deliver on programs and meet the needs of stakeholders. A future version of this Beacon will also assess an organization's people operations and its Diversity, Equity and Inclusion (DEI) metrics.


Culture & Community Score

Not Currently Scored

Hacienda Inc. is currently not eligible for a Culture & Community score because we have not received its Constituent Feedback data. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.


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Culture & Community Report

Unscored

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Constituent Feedback

Constituent Feedback


Constituent Feedback and Listening Practice data are not available for this organization. Nonprofit organizations are encouraged to fill out the How We Listen section of their Candid profile. This data will provide the basis for the initial evaluation of Culture & Community.


Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective. We award every nonprofit that completes the Candid survey full credit for this Beacon, in recognition of their willingness to publicly share this information with the nonprofit and philanthropic communities. Although the data is not evaluated for quality at this time, future iterations of this Beacon will include third party or other data that will serve to validate the information provided by the nonprofit.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Our partnership with Feedback Labs and Guidestar by Candid, and other partners including Fund for Shared Insight, GlobalGiving, and Keystone Accountability, enables us to launch the first version of this beacon with Constituent Feedback information collected on Candid's site.


Feedback practices have been shown to support better Diversity, Equity, and Inclusion outcomes, an essential area of assessment that we intend to further expand and develop in the future. Feedback Labs has documented several studies which indicate that beyond achieving organizational goals, nonprofits that are attentive and responsive to concerns and ideas raised by beneficiaries establish stronger relationships with the people they serve, promote greater equity, and empower constituents in ways that can help to ensure better long-term outcomes. You can find resources to help nonprofits improve their feedback practices here.

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