2024-11-11T15:32:55-06:00 2023-09-30 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2022-10-01 810693478 Deaconess Regional Healthcare Services Illinois DEAC 6189987000 3333 W Deyoung Marion IL 62959 Amber Lipe CFO 6189987000 2024-11-08 1 1 Kim Hunwardsen CPA P00484560 6122536500 2024-11-08 2022 2024-10-15 13:58:12Z X Mark Ed Cunningham 3333 W Deyoung Marion IL 62959 85810893 0 X https://deaconessillinoismedicalcenter.com X 2015 IL Delivery of quality, cost-effective health care and medical services. 7 5 28 25 0 0 0 0 4425830 85804936 2776 817 1303204 5140 5731810 85810893 0 0 0 0 2924587 21017837 0 0 0 1130477 56201508 4055064 77219345 1676746 8591548 5705488 260700796 2148774 236426233 3556714 24274563 X In keeping with our Christian heritage and tradition of service, the mission of Deaconess is to advance the health and well-being of our community with a compassionate and caring spirit. 1 0 62770552 83479960 Deaconess Regional Healthcare Services Illinois owns and operates Deaconess Illinois Heartland Regional Medical Center, Inc. and Deaconess Illinois Transcare EMS. Deaconess Regional Healthcare Services Illinois, Inc. acquired Heartland Regional Medical Center which is a 107-bed acute care hospital located in Marion, Illinois. The Hospital provides inpatient, outpatient, and emergency care services for residents of southern Illinois.The Hospital provides health care services to patients who meet certain criteria under its charity care policy without charge or at amounts less than established rates. Statement continued on Schedule O.Since the Hospital does not pursue collection of these amounts, they are not reported as patient service revenue. Statement continued on Schedule O.The estimated cost of providing these services was $181,000 for the year ended September 30, 2023, respectively, calculated by multiplying the ratio of cost to gross charges for the Hospital by the gross uncompensated charges associated with providing charity care to its patients. 2569876 2324976 Transcare Medical Transport and Logistics, LLC, facilitates patient transports between and among health care facilities in southern Illinois, southern Indiana, and western Kentucky to facilitate better quality, more efficient delivery of health care services to patients in the region, while also developing and engaging in the provision of management solutions for county owned emergency medical services providers with the goal of decreasing costs and improving services to communities. 65340428 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 7 0 1 28 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 5 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 IL X Amber Lipe 6189987020 3333 W Deyoung Marion IL 62959 Marc J Florence President 1.00 40.00 X X 0 590416 135997 Lynn C Lingafelter Secretary 1.00 40.00 X X 0 882665 182889 Glen Clarida Director as of 12/12/22 1.00 1.50 X 0 0 0 Jeff Justice Director as of 12/12/22 1.00 1.50 X 0 0 0 Gene Morris Director as of 12/12/22 1.00 1.50 X 0 0 0 Steve Titer Director as of 12/12/22 1.00 1.50 X 0 0 0 Tony Wielt Director as of 8/1/23 1.00 1.50 X 0 0 0 Autumn Link-Director until Jan 23, Controller until Dec 2022 40.00 0.00 X X 0 178799 46316 Mark Ed Cunningham-IL Market Pres Heartland CAO as of 1/14/23 40.00 0.00 X 0 0 0 Amber Lipe CFO as of Dec 2022 40.00 0.00 X 0 48635 0 Alisa Coleman CEO, Ferrell Hospital 0.00 50.00 X 357780 0 43539 Dirk K Morgan CFO, Ferrell Hospital 0.00 50.00 X 253679 0 15310 Donald E Robbins CEO, Lawrence Co Memorial Hospital 0.00 50.00 X 229558 0 34877 Shana C Strange CFO, Lawrence Co Memorial Hosp 0.00 50.00 X 160310 0 14583 Brad S Williams Paramedic 50.00 0.00 X 129615 0 34321 Brandon L Partin EMT 50.00 0.00 X 121853 0 3183 1252795 1700515 511015 6 0 1 0 Danco Construction 3201 Interstate Dr Evansville IN 47715 Construction 423503 Mercy Ambulance of Evansville PO Box 84139 Dallas TX 75284 Dispatch for ambulance 139185 Quick Med Claims 1400 Lebanon Church Road West Mifflin PA 15236 Billing services 109226 3 Patient Service Revenue 621110 80540009 80540009 Affiliate Sublease 900099 2822195 2822195 Patient Transport Revenue 621910 2324976 2324976 Cafeteria Revenue 621500 117756 117756 85804936 817 817 5140 0 5140 5140 5140 85810893 85804936 0 5957 X 1235200 1235200 16104879 15169371 935508 2399 373 2026 2428494 2297515 130979 1246865 1168008 78857 486420 486420 19200 19200 20392734 11661841 8730893 109191 22690 86501 1869451 1556932 312519 314076 67798 246278 831545 730716 100829 41971 24635 17336 55121 25787 29334 4741293 4741293 7742842 7603226 139616 242871 230074 12797 Medical Supplies 10747968 10675195 72773 Taxes and Licenses 6480431 6132960 347471 Repairs and Maintenance 1898907 1822572 76335 Memberships and Dues 68453 16812 51641 159034 157430 1604 77219345 65340428 11878917 0 929127 3923978 3163441 27505171 355623 3216052 47618 1643054 10011810 1606710 588010 8405100 977292 215651818 5705488 260700796 516034 16545490 1632740 219880743 2148774 236426233 X 3556714 24274563 3556714 24274563 5705488 260700796 X 8591548 -4055505 16181806 X 0 1 X 1 0 X 64678 64678 2201530 1857783 3229072 4425830 85804936 97519151 2201530 1922461 3229072 4425830 85804936 97583829 0 0 0 97583829 1554 331 771 5411 5957 14024 1554 331 771 5411 5957 14024 1298769 1298769 2203084 1922792 3229843 5730010 85810893 98896622 0.98670 0.91370 0.00010 0.00040 X 9905276 1606710 8298566 106534 106534 8405100 Estimated third party payor settlements 7661765 Affiliate receivables 49564388 Operating lease ROU assets 1133035 Finance lease ROU assets 157292630 215651818 Estimated third-party payor settlements 13335048 Operating lease liabilities 1214527 Estimated health claims liability 350000 Finance lease liabilities 158750166 Due to related parties 33231002 Note payable to Deaconess Health System 13000000 219880743 X Part X, Line 2: The Hospital believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The Hospital would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. 1 1 X 1 X 1 X 1 1 1 0 0 181000 181000 0.00230 17360959 5950666 11410293 0.14780 17541959 5950666 11591293 0.15010 17541959 5950666 11591293 0.15010 1 8527250 1279088 10752232 16760071 -6007839 X 1 1 1 1 Heartland Regional Medical Center 3333 W Deyoung St Marion IL 62959 www.heartlandregional.com 0006361 X X X Heartland Regional Medical Center 1 0 1 0 0 1 X 200.000000000000 350.000000000000 X X X X X 1 1 X X X 1 X https://heartlandregional.com/financial-assistance/ X https://heartlandregional.com/financial-assistance/ X https://heartlandregional.com/financial-assistance/ X X X X X X 1 X 0 X X X X 1 X 0 0 Heartland Regional Medical Center Part V, Section B, Line 2: Heartland Regional Medical Center was acquired by this entity and operations began January 14, 2023. Prior to that date, the hospital was a for-profit hospital. Heartland Regional Medical Center Part V, Section B, Line 13h: In the event there is no evidence to support a patient's eligibility for charity care, the Hospital could, for patients above 200% of the Federal Poverty Guidelines, use outside agencies in determining collectability scoring for the basis of determining charity care eligibility. Presumptive eligibility may also be determined on the basis of individual life circumstances that may include:1. Homeless or received care from a homeless clinic2. Food stamp eligibility3. Patient is deceased with no known estate a. Balances due for deceased minors are excluded from charity care. These balances will remain due.4. For all Medicaid Financial Class Payors, if a denial or edit for a non-covered Medicaid/HIP charge is received, that charge will be adjusted to charity.Services eligible under this Policy will be made available to the patient on a sliding fee scale, in accordance with financial need, as determined in reference to Federal Poverty Levels (FPL) in effect at the time of the determination. The basis for the amounts the Hospital will charge patients qualifying for financial assistance may also be modified as follows:- Patients whose family income exceeds 350% of the FPL may be eligible to receive discounted rates on a case-by-case basis based on their specific circumstances, such as catastrophic illness or medical indigence, at the discretion of the Hospital.-The Hospital Uninsured Patient Discount Act also provides for a maximum collectable amount. During a 12-month period, a hospital may collect no more than 20% of the patient's' family income. The 12-month period begins on the first date the uninsured patient receives health care services eligible for an uninsured discount. Uninsured patients must be permitted to apply for a discount within 90 days of the date of discharge/service. Part I, Line 3c: In the event there is no evidence to support a patient's eligibility for charity care, the Hospital could, for patients above 200% of the Federal Poverty Guidelines, use outside agencies in determining collectability scoring for the basis of determining charity care eligibility. Presumptive eligibility may also be determined on the basis of individual life circumstances that may include:1. Homeless or received care from a homeless clinic2. Food stamp eligibility3. Patient is deceased with no known estate a. Balances due for deceased minors are excluded from charity care. These balances will remain due.4. For all Medicaid Financial Class Payors, if a denial or edit for a non-covered Medicaid/HIP charge is received, that charge will be adjusted to charity.Services eligible under this Policy will be made available to the patient on a sliding fee scale, in accordance with financial need, as determined in reference to Federal Poverty Levels (FPL) in effect at the time of the determination. The basis for the amounts the Hospital will charge patients qualifying for financial assistance may also be modified as follows:- Patients whose family income exceeds 350% of the FPL may be eligible to receive discounted rates on a case-by-case basis based on their specific circumstances, such as catastrophic illness or medical indigence, at the discretion of the Hospital.-The Hospital Uninsured Patient Discount Act also provides for a maximum collectable amount. During a 12-month period, a hospital may collect no more than 20% of the patient's' family income. The 12-month period begins on the first date the uninsured patient receives health care services eligible for an uninsured discount. Uninsured patients must be permitted to apply for a discount within 90 days of the date of discharge/service. Part I, Line 7: Charity care expense was converted to cost on line 7a based on an overall cost to charge ratio addressing all patient segments. Unreimbursed Medicaid on line 7b was calculated using the costing methods to prepare the cost reports. Part III, Line 2: The amount on line 2 represents implicit price concessions. The Organization determines its estimate of implicit price concession based on its historical collection experience with this class of patients. Part III, Line 3: The estimated amount of the Organization's implicit price concessions attributable to patients eligible under the Organization's charity care policy is calculated based on an approximate 15% of individuals living below the poverty level in the service area. Part III, Line 4: The footnote to the organization's financial statements that describes implicit price concessions is located in Footnote 1 on pages 11 and 12 of the attached financial statements. Part III, Line 8: Heartland Regional Medical Center is showing a Medicare shortfall. The Hospital provides services to Medicare patients because access to healthcare and individual's health is important to the Hospital. Therefore, the Medicare shortfall is considered a community benefit.Total revenue received from Medicare is the gross reimbursement plus settlement. Both total revenue received from Medicare and the Medicare allowable costs are reported from the Medicare Cost Report. The Medicare Cost Report is completed based on the rules and regulations set forth by Centers for Medicare and Medicaid Services. Part III, Line 9b: The Hospital does not pursue collection activities for patients that qualify for charity care or patients that have set up payment arrangements for their accounts. Also, collection activities are not pursued for patients that are in the process of applying for charity care and patients waiting for approval or denial from public aid. Any personal portion due after financial assistance is established would follow normal collection procedures.No extraordinary collection activities will begin until after 120 days from the time the first post-discharge statement was provided. Accounts remain in a primary collection agency for approximately 250 days. After 250 days accounts may be place with a secondary collection agency. Part VI, Line 2: Community input on desired services is obtained through patient satisfaction surveys that are initiated by the inpatient unit and emergency department that provide a line of communication to identify additional health care services that community desires. Part VI, Line 3: The financial assistance policy is posted in admission areas where patients are present and on the hospital website. Discussions with patients also occur regarding availability of various government programs, such as Medicaid or state programs and assists the patient with qualification with such programs, where applicable. Part VI, Line 4: Heartland Regional Medical Center is a 107-bed acute care hospital located in Marion, Illinois. The Hospital provides inpatient, outpatient, and emergency care services for residents of southern Illinois. The Hospital owns and operates Deaconess Illinois Transcare EMS which provides medical transport services.15% of the population for whom poverty status is determined in Marion, IL (2.45k out of 16.3k people) live below the poverty line, a number that is higher than the national average of 12.5%. Between 2021 and 2022, the percent of uninsured citizens in Marion, IL grew by 4.57% from 6.59% to 6.89%.As in much of rural Illinois, the average household income in the service area, $73,648, is lower than the statewide or national average. From 2021 to 2022, employment in Marion, IL grew at a rate of 1.12%, from 7.42k employees to 7.51k employees. The most common employment sectors for those who live in Marion, IL, are Health Care & Social Assistance, Retail Trade, and Educational Services. Part VI, Line 5: Deaconess Regional Healthcare Services Illinois has a board that is from the community. Medical staff privileges in the Hospital are available to all qualified physicians in the area, consistent with the size and nature of its facilities. The Hospital operates a full-time emergency room and extends treatment to anyone requiring emergency medical care regardless of ability to pay. Any excess funds generally are applied to expansion and replacement of existing facilities and equipment, amortization of indebtedness, improvement in patient care, and medical training, education, and research. Treatment at the Hospital's facilities is available to all those able to pay directly or through third-party reimbursement, including through Medicare and Medicaid. In addition, the Hospital operates in accordance with Section 501(r) of the Code, including through a financial assistance policy pursuant to which the Hospital provides emergency and medically necessary care to patients regardless of their ability to pay. X X X X X 0 1 0 1 1 0 0 0 0 Lynn C Lingafelter Secretary 0 608584 0 168260 0 105821 0 151033 0 31856 0 1065554 0 97784 Marc J Florence President 0 418131 0 95606 0 76679 0 98824 0 37173 0 726413 0 72580 Alisa Coleman CEO, Ferrell Hospital 296054 0 58544 0 3182 0 21210 0 22329 0 401319 0 0 0 Dirk K Morgan CFO, Ferrell Hospital 202587 0 49878 0 1214 0 13266 0 2044 0 268989 0 0 0 Donald E Robbins CEO, Lawrence Co Memorial Hospital 229054 0 0 0 504 0 6855 0 28021 0 264434 0 0 0 Autumn Link-Director until Jan 23, Controller until Dec 2022 0 151614 0 23475 0 3710 0 13496 0 32820 0 225115 0 0 Shana C Strange CFO, Lawrence Co Memorial Hosp 159493 0 0 0 817 0 0 0 14583 0 174893 0 0 0 Brad S Williams Paramedic 127085 0 2522 0 8 0 3301 0 31020 0 163936 0 0 0 Part I, Line 4b Deaconess Regional Healthcare Services Illinois provides executives a supplemental accumulation 457(f) nonqualified deferred compensation arrangement. Below are the participants and the amounts contributed and paid out and taxed on their 2022 W-2. Part II (B)(iii) Part II (C) Marc Florence $72,580 $ 77,614 Lynn Lingafelter 97,784 126,485 Part I, Line 5 Bonuses for key employees are dependent on the health system reaching certain strategic goals as it relates to quality and safety, population health, financial strength, access to care, regional partnerships and health. These goals are established prior to the fiscal year and approved by the compensation committee of the board. Form 990, Part III, line 2 Effective January 14, 2023, Deaconess Regional Healthcare Services Illinois, Inc. acquired Heartland Regional Medical Center to facilitate diversification of services across Southern Illinois and Indiana. Form 990, Part VI, Section A, line 4 The Bylaws were amended on 12/12/2022. Article II 2.1: Deaconess Health System, Inc. was removed as the sole member. The Corporation has no members. Article III 3.2a: Up to seven (7) Directors will constitute the self-perpetuating Directors of the Board and; 3.2b: Two Directors are appointed and removed by Deaconess Health System, Inc. The Bylaws were amended on 8/1/2023 Article V 5.1: Added a Vice-Chairperson and President as officers of the Board and separated the Secretary/Treasurer position into two positions. 5.1: Any two or more offices may be held by the same individual. The exception of the office of Secretary/Treasurer was removed. 5.5: Added a description of the duties of the Vice-Chairperson. 5.6: Added a description of the duties of the President. 5.7: Added a description of the duties of the Secretary. 5.8: Added a description of the duties of the Treasurer. Form 990, Part VI, Section A, line 6 Deaconess Health System, Inc. was the sole member until the Bylaws were amended 12/12/2022 removing the sole member. Form 990, Part VI, Section A, line 7a Deaconess Health System, Inc., as the sole member, had the power to appoint each person on the Board of Directors until the Bylaws were amended on 12/12/2022 and the sole member was removed. After the Bylaw amendment Deaconess Health System, Inc. has authority to appoint and remove two Directors. Form 990, Part VI, Section A, line 7b All governance decisions were made by the sole member, Deaconess Health System, Inc., before the Bylaws were amended 12/12/2022. After the Bylaw amendment, at least one of the two Deaconess Health System, Inc. Directors must approve the following actions along with affirmative vote of two-thirds of all serving Directors. 1. Approval of any capital and operating budgets for the Corporation, or of any amount that is un-budgeted and in excess of an agreed upon threshold over budgeted amounts approved in an annual capital or operating budget. 2. Any acquisition, purchase, sale, lease, mortgage, or other transfer or encumbrance of any property in excess of $500,000 or any real property of the Corporation, irrespective of the value, or any affiliation or management agreement, or any creation or substantive amendment of any agreement to which the Corporation is a party which involves an obligation, or a potential obligation, on the part of the Corporation, including without limitation any borrowings or guarantees, in excess of an agreed upon threshold set by Board policy; 3. Creation, elimination or modification of any Board policy or policies. 4. Any dissolution, merger, consolidation, change of control, sale, or other corporate restructuring of the Corporation, or the filing of any voluntary petition in bankruptcy or any other petition or pleading seeking any reorganization, receivership or similar relief under federal or state law. 5. Creation, ownership, or acquisition (whether in whole or in part) and dissolution of any subsidiary or affiliate of the Corporation. 6. Any of the foregoing reserve powers with respect to any subsidiary or affiliate of the Corporation Form 990, Part VI, Section A, line 8b The Organization does not have committees with authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b The Form 990 is provided to the board before it is filed. The CEO and CFO review the Form 990. Form 990, Part VI, Section B, line 12c Conflict of interest review and compliance is completed on an annual basis or as conflicts arise by officers, directors, and key employees. These individuals are required to complete a conflict of interest questionnaire. The document serves to ensure interested persons have an appropriate and timely manner in which to disclose any potential conflicts. Conflicts are considered with respect to outside interest, investments, outside activities, and business interests among the interested persons as well as their family members. On a periodic basis, reviews occur to ensure the Corporation operates in a manner consistent with its charitable purpose. The Board officers and CEO review and investigate any potential conflicts. An interested person with a conflict will abstain from voting on the matter and may be asked to leaving the meeting. Form 990, Part VI, Section B, line 15 Compensation for the CEO, CFO, and key employees is determined and approved by the Deaconess Health System's Compensation Committee. Deaconess Regional Healthcare Services Illinois board can only make recommendation to the Deaconess Health System's Compensation Committee. The Compensation Committee is appointed by the Board of Directors of Deaconess Health System Inc. and must meet independence requirements. The Committee has the power and authority to: 1. Annually review, approve, and recommend to the Board of Directors for its final approval for the Executive compensation. 2. Monitor broadly the structure, philosophy or competitiveness of the system's general hiring or compensation practices. 3. Oversee the establishment and administration of the company's broad-based benefit plans and programs. 4. Review or approve significant amendments or changes to the plans and programs. 5. Retain and terminate any compensation consultant to be used to assist in the evaluation of compensation. 6. Sole authority to approve the consultant's fees and other retention terms. 7. Obtain advice and assistance from internal or external legal, accounting, or other advisors. 8. Make regular reports to the board. Form 990, Part VI, Section C, line 19 The Organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. Form 990, Part IX, line 11g Purchased Services: Program service expenses 5,904,054. Management and general expenses 8,728,917. Fundraising expenses 0. Total expenses 14,632,971. Medical Professional Fees: Program service expenses 5,757,787. Management and general expenses 1,976. Fundraising expenses 0. Total expenses 5,759,763. Form 990, Part XI, line 9: Transfers to affiliates -49,391,727. Transfer from related entity Deaconess Health System, Inc. 65,573,533. Form 990 Part XI, Line 8: Prior period adjustment is a net asset transfer - management services activity. Transcare Medical Transport and Logistics LLC 3333 W Deyoung Marion IL 62959 810932015 Medical transport and ambulance service IL 2335937 -561570 Deaconess Regional Healthcare Services Illinois Deaconess Health System Inc 600 Mary Street Evansville IN 47747 351532889 Support healthcare entities IN 501(c)(3) Line 12a, I N/A 0 Deaconess Illinois Crossroads Inc 8 Doctors Park Rd Mount Vernon IL 62864 920573933 Health care services IL 501(c)(3) Line 3 Deaconess Regional Healthcare Services Illinois 1 Deaconess Illinois Red Bud Regional Hospital Inc 325 Spring St Red Bud IL 62278 884142509 Health care services IL 501(c)(3) Line 3 Deaconess Regional Healthcare Services Illinois 1 Deaconess Illinois Union County Hospital Inc 517 N Main St Anna IL 62906 920574426 Health care services IL 501(c)(3) Line 3 Deaconess Regional Healthcare Services Illinois 1 Deaconess Hospital Inc 600 Mary Street Evansville IN 47747 350593390 Health care services IN 501(c)(3) Line 3 Deaconess Health System Inc 0 Deaconess Clinic Inc 421 Chestnut Street Evansville IN 47713 263083364 Health care services IN 501(c)(3) Line 3 Deaconess Health System Inc 0 Deaconess VNA Plus 610 E Walnut St Evansville IN 47713 465223267 Health care services IN 501(c)(3) Line 10 Deaconess Health System Inc 0 Deaconess Specialty Physicians Inc 600 Mary Street Evansville IN 47747 824503095 Health care services IN 501(c)(3) Line 3 Deaconess Health System Inc 0 Deaconess Health Kentucky Inc 600 Mary Street Evansville IN 47747 830966826 Health care services IN 501(c)(3) Line 10 Deaconess Health System Inc 0 Methodist Health Inc PO Box 48 Henderson KY 42419 610461753 Health care services KY 501(c)(3) Line 3 Deaconess Health System Inc 0 Deaconess Gibson Hospital 1808 Sherman Drive Princeton IN 47670 350877575 Health care services IN 501(c)(3) Line 3 Deaconess Health System Inc 0 Deaconess Union County Hospital 4604 US Hwy 60 W Morganfield KY 42437 862614124 Health care services KY 501(c)(3) Line 3 Deaconess Health System Inc 0 Union County Methodist Hospital Foundation 4604 US Hwy 60 W Morganfield KY 42437 611230297 Support Deaconess Union County Hospital KY 501(c)(3) Line 12a, I Deaconess Union County Hospital 0 Gibson General Health Foundation Inc 1808 Sherman Drive Princeton IN 47670 350950175 Support Deaconess Gibson Hospital IN 501(c)(3) Line 7 Deaconess Gibson Hospital 0 Henderson Regional Hospital Foundation 1305 North Elm St Henderson KY 42420 610944432 Support Methodist Health Inc. KY 501(c)(3) Line 12c, III-FI Methodist Health Inc 0 Healthcare Resource Solutions LLC 600 Mary Street Evansville IN 47747 833275390 Revenue cycle services IN N/A 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 1 1 0 1 1 Deaconess Illinois Red Bud Regional Hospital Inc R 31733391 General ledger Deaconess Illinois Crossroads Inc R 8855859 General ledger Deaconess Illinois Union County Hospital Inc R 8802477 General ledger