2024-11-22T15:33:17+00:00 2023-12-31 346565596 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE INDIANAPOLIS IN 462045100 990 2023-01-01 453864076 Beacon Health System Inc BEAC 5746473549 615 N MICHIGAN ST SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 2024-11-22 true Jennifer D Rhoderick P00395735 3176817000 2024-11-21 2023 2024-10-15 13:58:12Z X KREG GRUBER 615 N MICHIGAN ST SOUTH BEND IN 46601 348362561 false X BEACONHEALTHSYSTEM.ORG X 2011 IN WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. 14 11 1544 14 3269671 964177 1439524 1051522 140650822 164258517 19724335 26560748 14317403 18910738 176132084 210781525 742316 723177 0 74648001 89457272 0 0 85231721 97486492 160622038 187666941 15510046 23114584 1057853283 1116278781 101356889 98609339 956496394 1017669442 WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. false false 186864657 723177 181257627 BEACON HEALTH SYSTEM, INC.(BEACON) IS THE PARENT OF ELKHART GENERAL HOSPITAL, INC., BEACON MEDICAL GROUP, INC., MEMORIAL HOSPITAL OF SOUTH BEND, INC., BEACON HEALTH FOUNDATION, INC., BEACON HEALTH VENTURES, INC., THREE RIVERS HEALTH HOSPITAL, INC., AND COMMUNITY HOSPITAL OF BREMEN, INC. BEACON PROVIDES COORDINATION FOR THE ORGANIZATIONS WITHIN THE SYSTEM IN SUCH MATTERS AS APPROVING BUDGETS, STRATEGIC PLANNING, MARKETING, ALLOCATING RESOURCES, SECURING TAX-EXEMPT BOND FINANCING AND PROVIDING COMMUNITY EDUCATION. 186864657 true true false true false false false false true true true false false true true false true false false true false false false true false false false true true true false false false false false false false false true true false false false false true true true true false false true 241 0 true 1544 true true true false false false false false false false false false true false X 14 11 true false false false false false false true true false false true true true true true true true true true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 John Martin Vice Chair 2.0 0 X X 1021 0 0 Julia Willis Secretary 2.0 0 X X 1220 0 0 Thomas Burish PhD Chair 2.0 0 X X 225 0 0 Tom Cassady Jr Treasurer 2.0 0 X X 225 0 0 Amish Shah Director 2.0 0 X 1220 0 0 Gene Grove Director 2.0 0 X 225 0 0 George Larsen Kneller MD Director 2.0 40.0 X 0 267446 24841 James Dan MD Director 2.0 2.0 X 5975 0 0 James F Keenan JD Director 2.0 0 X 1220 0 0 Jesse Hsieh MD Director thru 3/31/23 2.0 0 X 2225 0 0 Karen Barnett Director 2.0 0 X 1220 0 0 Levon Johnson Director 2.0 2.0 X 1314 0 0 Matthew Pletcher Director thru 3/31/23 2.0 0 X 2225 0 0 Peter Baranay Director 2.0 2.0 X 0 225 0 Samir Patel MD Director 2.0 2.0 X 1220 0 0 Tim Shelly Director 2.0 0 X 1220 0 0 Jeffrey P Costello CFO 40.0 12.0 X 744234 0 118036 Kreg R Gruber CEO 40.0 12.0 X 1162712 0 170134 Diane M Maas Chief Bus Dev & Plan Officer 40.0 0 X 487609 0 93209 Haysam M Eldalati MD Chief Clinical Officer 40.0 0 X 662325 0 97780 Mark A Warlick Chief Information Officer 40.0 0 X 457058 0 85254 Scott M Eshowsky Medical Information Officer 40.0 0 X 438509 0 38279 Steven M Eller Chief Human Resource Officer 40.0 0 X 557831 0 12269 4531034 267671 639801 123 false true false CERNER CORPORATION 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 IS SFTWR MAINTENANCE 10881253 Ameri EBO LLC 1851 S Alverno Rd Manitowoc WI 542200000 COLLECTION SERVIICES 3814495 PANZICA BUILDING CORPORATION 416 E MONROE ST STE 320 SOUTH BEND IN 46601 CONSTRUCTION SERVICES 3567999 MEDTRONIC INC 2500 Silveus Xing Warsaw IN 465820000 MEDICAL TECHNOLOGY 2983391 GE PRECISION HEALTHCARE LLC 3000 N GRANDVIEW BLVD WAUKESHA WI 53188 EQUIP MAINTENANCE 2943599 143 402941 648581 1051522 NET PATIENT SERVICE REVENUE 621110 11578854 11578854 JOINT VENTURE ACTIVITY 621110 -3460641 -3442918 -17723 MANAGEMENT ADMIN SERVICES 561499 156000061 155110347 889714 AFFILIATE RENT 532000 140243 140243 0 0 0 0 0 164258517 13587484 1175568 12411916 808879 13246 795633 0 795633 795633 146644585 3600206 133671550 3599977 12973035 229 12973264 12973264 190146 296263 -106117 -106117 ATHLETIC CLUB 713940 11242735 11242735 Miscellaneous 541200 3413238 2511314 901924 QUALITY INCENTIVE 900099 3245061 3245061 320188 0 320188 0 18221222 210781525 180385636 3269671 26074696 X 723177 723177 2217766 2217766 64406285 64406285 1801133 1801133 15647624 15647624 5384464 5384464 787032 787032 15252 15252 31635 31635 48675 48675 67197219 67197219 0 0 1117157 1117157 4821723 4821723 154222 154222 3801460 3801460 279358 279358 85844 85844 470201 470201 8898262 8898262 1321683 1321683 OTHER EXPENSE 3559259 3559259 GENERAL DUES & SUBSCRIPTION 3392054 3392054 Recruitment 1039366 1039366 Supplies 425421 425421 40669 40669 0 0 187666941 186864657 802284 0 2900 2350 19263285 46008143 136000 157574 1695414 1644268 0 0 0 0 0 2680382 3159878 19678804 19042853 176757189 69430354 105548477 107326835 334730773 378333394 482047002 479851802 41854393 35832307 103840 103840 50112013 44815537 1057853283 1116278781 21200865 24138709 59510 73984161 71426713 0 0 6112353 3043917 101356889 98609339 X 956496394 1017669442 956496394 1017669442 1057853283 1116278781 X 23114584 40349668 -2291204 X false true X true false X X X 6 BEACON MEDICAL GROUP INC 351536132 9 true 85113156 44940 ELKHART GENERAL HOSPITAL INC 350877574 3 true 103466876 0 MEMORIAL HOSPITAL OF SOUTH BEND INC 350868132 3 true 196966803 0 BEACON HEALTH FOUNDATION 351536129 7 false 1710833 4802 COMMUNITY HOSPITAL OF BREMEN 350835006 3 false 7154489 30000 THREE RIVERS HEALTH SYSTEM 451257972 3 true 37749984 0 6 432162141 79742 false false false false false true false false false false false false false false false true false true X true true Schedule A, Part IV, Section A, Line 1 Supported Orgs Listed By Name BEACON HEALTH SYSTEM'S ("BHS") ARTICLES OF INCORPORATION STATE THAT IT IS ORGANIZED TO CONTROL AS A SOLE MEMBER OF AN INTEGRATED REGIONAL HEALTH CARE SYSTEM COMPRISED OF ONE OR MORE SUBSIDIARY ORGANIZATIONS, INCLUDING ELKHART GENERAL HOSPITAL, INC. ("EGH"), MEMORIAL HEALTH SYSTEM, INC. (NOW BEACON MEDICAL GROUP ("BMG")), THREE RIVERS HEALTH SYSTEM ("TRH"), AND ALL OTHER RESPECTIVE AFFILIATES, WHICH INCLUDES MEMORIAL HOSPITAL OF SOUTH BEND ("MHSB"). EGH, BMG, AND MHSB ARE SPECIFICALLY DESIGNATED BY NAME. BHS ALSO SUPPORTS BEACON HEALTH FOUNDATION ("BHF") AND COMMUNITY HOSPITAL OF BREMEN ("CHB"). AS BOTH OF THESE ENTITIES ARE PART OF THE SAME INTEGRATED HEALTH SYSTEM WITH BHS AS THE SOLE MEMBER OF ALL SUBSIDIARIES, THEY HAVE A CONTINUOUS AND HISTORIC RELATIONSHIP. Schedule A, Part IV, Section A, Line 6 Support to other supported orgs BEACON HEALTH SYSTEM (BHS) PROVIDED A SMALL NUMBER OF GRANTS TO SELECT COMMUNITY ORGANIZATIONS WHICH FURTHER THE CHARITABLE PURPOSES OF ITS SUPPORTED ORGANIZATIONS. AS BHS IS THE PARENT OF AN INTEGRATED HEALTH SYSTEM, ITS SUPPORTED ORGANIZATIONS ARE AWARE AND APPROVE OF THESE GRANTS. THE HEALTH SYSTEM IS CONTINUING TO RE-ALIGN ITS GRANTMAKING ACTIVITY IN 2023 TO DIRECT ALL GRANTS THROUGH ITS AFFILIATED FOUNDATION AND HOSPITAL ORGANIZATIONS. Schedule A, Part IV, Section D, Line 2 Officers Appointed Or Serving Supported Org. BEACON HEALTH SYSTEM (PARENT) MAINTAINS A CLOSE AND CONTINUING RELATIONSHIP WITH ALL OF ITS SUPPORTED ORGANIZATIONS, AS THEY COMPRISE ONE INTEGRATED HEALTH SYSTEM. THEIR GOVERNANCE IS CLOSELY RELATED. THE PARENT SHARES COMMON OFFICERS WITH ITS SUPPORTED ORGANIZATIONS, THE CHAIR OF EACH OF THE SUPPORTED ORGANIZATIONS ARE INVITED GUESTS AT THE PARENT BOARD MEETINGS, AND THE BOARD COMMITTEES ARE ALL POPULATED WITH BOARD MEMBERS FROM BOTH THE PARENT AND SUPPORTED ORGANIZATIONS. IN ADDITION, THE INVESTMENT COMMITTEE OF THE PARENT BOARD INCLUDES COMMITTEE MEMBERS FROM BOTH THE PARENT AND THE SUPPORTED ORGANIZATIONS. AS A RESULT OF THIS OVERLAP, THE SUPPORTED ORGANIZATIONS HAVE A SIGNIFICANT VOICE IN THE PARENT'S INVESTMENT POLICIES AND IN DIRECTING THE USE OF THE PARENT'S INCOME AND ASSETS AT ALL TIMES DURING THE TAX YEAR. Schedule A, Part IV, Section D, Line 3 Supp. Org. Have Significant Voice In Investment Policies THE BHS BOARD AND COMMITTEES OVERSEE THE POLICIES, PROGRAMS AND ACTIVITIES OF THE SUPPORTED ORGANIZATIONS, SEE SCH. O DISCLOSURE FOR ADDITIONAL DETAILS Schedule A, Part IV, Section E, Line 3a Power To Appoint/Elect Majority of Officer/Director/Trustee THE BHS BOARD WORKS WITH THE GOVERNANCE COMMITTEE AND EXECUTIVE COMMITTEE TO APPOINT OFFICERS AND DIRECTORS. Schedule A, Part IV, Section E, Line 3b Substantial Direction Over Policies/Programs/Activities THE BHS BOARD AND COMMITTEES OVERSEE THE POLICIES, PROGRAMS AND ACTIVITIES OF THE SUPPORTED ORGANIZATIONS, SEE SCH. O DISCLOSURE FOR ADDITIONAL DETAILS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 31635 31635 false Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY BEACON HEALTH SYSTEM, INC. PAYS FOR THE MEMBERSHIP FEES TO SEVERAL NATIONAL ORGANIZATIONS FOR ITS EMPLOYEES. THESE NATIONAL ORGANIZATIONS INDICATE A PORTION OF THE MEMBERSHIP FEES ARE USED FOR LOBBYING PURPOSES. 38758960 2440359 2682415 1424963 42456771 42986124 3689060 -4645969 3270255 38758960 37554313 3126708 3841751 1536648 42986124 34924915 1692784 2289914 1353300 37554313 30834712 2588248 3242314 1740359 34924915 0.7449 0.0 0.2551 false true true 21499879 21499879 51057581 7783009 43274572 229492 189990 39502 99087605 60856882 38230723 4882632 600473 4282159 107326835 ALTERNATIVE INVESTMENTS 479851802 F 479851802 DEFERRED LIABILITY EXEC SERP 2845315 LEASE - LONG TERM 58958 LEASE - CURRENT 139644 3043917 X Schedule D, Part V, Line 4 Intended uses of endowment funds NET ASSETS WITH DONOR RESTRICTIONS CONSIST OF ASSETS WHOSE USE IS LIMITED BY DONOR IMPOSED, TIME AND/OR PURPOSE RESTRICTIONS. SOME NET ASSETS HAVE BEEN RESTRICTED BY DONORS TO BE MAINTAINED BY THE CORPORATION IN PERPETUITY. IN ACCORDANCE WITH THE RESTRICTION, A MAJORITY OF THE INVESTMENT INCOME AND INVESTMENT GAIN OR LOSSES FROM THESE NET ASSETS ARE RESTRICTED BY THE DONOR FOR A SPECIFIC PURPOSE. A SPECIFIED PORTION OF INCOME EARNED BY THE NET ASSETS IS RELEASED FROM RESTRICTION AND USED FOR OPERATIONS EACH YEAR AND, THEREFORE, IS INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND CHARGES IN NET ASSETS AS OTHER REVENUE. THE BOARD HAS DISCRETION TO UTILIZE EACH YEAR THE INCOMES, REVENUES, AND PROFITS ARISING AND ACCRUING FROM THE ENDOWMENTS IN DEFRAYING COSTS ASSOCIATED WITH THE TRUST AND THE REMAINDER FOR SUPPORT, BETTERMENT, IMPROVEMENT, UPKEEP, EXPANSION AND REPLACEMENT OF BEACON HEALTH SYSTEM, INC. AND ITS CORPORATE AFFILIATES. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote ASC 740, INCOME TAXES, REQUIRES THAT REALIZATION OF AN UNCERTAIN INCOME TAX POSITION IS MORE LIKELY THAN NOT (I.E., GREATER THAN 50% LIKELIHOOD OF RECEIVING A BENEFIT) BEFORE IT IS RECOGNIZED IN THE FINANCIAL STATEMENTS AS THE AMOUNT MOST LIKELY TO BE REALIZED ASSUMING A REVIEW BY TAX AUTHORITIES HAVING ALL RELEVANT INFORMATION AND APPLYING CURRENT CONVENTIONS. THIS INTERPRETATION ALSO CLARIFIES THE FINANCIAL STATEMENT CLASSIFICATION OF TAX RELATED PENALTIES AND INTEREST AND SETS FORTH NEW DISCLOSURES REGARDING UNRECOGNIZED TAX BENEFITS. NO AMOUNT WAS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2023 OR 2022. Central America and the Caribbean 0 0 Investments 174129386 Europe (Including Iceland and Greenland) 0 0 Investments 41320428 North America (Canada & Mexico only) 0 0 Investments 25175812 0 0 0 0 0 0 240625626 0 240625626 true false true true true false Schedule F, Part I, Line 3 Method used to account for expenditures on org's financial statements CENTRAL AMERICA AND THE CARIBBEAN-Accrual; EUROPE (INCLUDING ICELAND AND GREENLAND)-Accrual; NORTH AMERICA (CANADA & MEXICO ONLY)-Accrual SUNBURST 190146 190146 6593 1984 287686 0 0 190146 190146 6593 1984 287686 296263 -106117 Schedule G, Part IV BEACON HEALTH SYSTEM, INC. FACILITATES AN ANNUAL SUNBURST MARATHON BY COLLECTING REGISTRATION PAYMENT AND ORGANIZING THE EVENT. ALL CONTRIBUTIONS ARE DIRECTED TO AND RECORDED BY BEACON HEALTH FOUNDATION. IT IS COMMON FOR THE EVENT TO BE RUN AT A LOSS AS ALL THE SPONSORSHIP AND CONTRIBUTION INCOME IS RECORDED BY BEACON HEALTH FOUNDATION. true SCHOLARSHIPS/TUITION REIMBURSEMENT 394 723177 Schedule I, Part III SCHOLARSHIPS/ TUITION REIMBURSEMENT FOR SCHOLARSHIPS THE INDIVIDUAL MUST MEET SEVERAL REQUIREMENTS TO QUALIFY. IN ORDER TO QUALIFY FOR A SCHOLARSHIP, THE INDIVIDUAL MUST (1) APPLY ON-LINE (INTRANET) AND WITHIN THE ACCEPTABLE TIME PARAMETERS FOR THE SEMESTER OF FUNDS BEING REQUESTED, (2) MAINTAIN A GRADE OF C OR BETTER, (3) PAY FOR TUITION/BOOKS AND SUBMIT CORRESPONDING ORIGINAL RECEIPTS FOR REIMBURSEMENT, REIMBURSED UP TO THE AMOUNT AWARDED BY THE SCHOLARSHIP COMMITTEE. (4) MEET ANY ADDITIONAL REQUIREMENTS OF THE SPECIFIC SCHOLARSHIP FUND, AND (5) MEET ELIGIBILITY REQUIREMENTS WHICH INCLUDE: (A) EMPLOYED BY BEACON HEALTH SYSTEM, INC. (B) ENROLLED IN A QUALIFIED PROGRAM, (C) SUBMITTED A POSITIVE RECOMMENDATION EACH SEMESTER FROM THE IMMEDIATE SUPERVISOR, AND (D) SUBMITTED A POSITIVE RECOMMENDATION EACH SEMESTER FROM THE SCHOOL. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. DONATIONS AND GRANTS GIVEN TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL-BEING OF OUR COMMUNITY ARE MONITORED THROUGH OUTCOME MEASUREMENT REPORTS THAT ARE PROVIDED TO BEACON HEALTH SYSTEM BY THE VARIOUS ORGANIZATIONS. THESE REPORTS INFORM US OF HOW THE DONATIONS AND GRANTS WERE USED. X true true X X X X X false true false false false false false true false George Larsen Kneller MD Director 0 242446 0 25000 0 0 0 11212 0 13629 0 292288 0 0 Jeffrey P Costello CFO 607351 0 0 0 136883 0 95606 0 22430 0 862270 0 88827 0 Kreg R Gruber CEO 1003311 0 0 0 159401 0 149636 0 20498 0 1332846 0 131845 0 Haysam M Eldalati MD Chief Clinical Officer 553254 0 0 0 109071 0 85608 0 12173 0 760106 0 90760 0 Steven M Eller Chief Human Resource Officer 114885 0 0 0 442946 0 7690 0 4579 0 570099 0 303044 0 Scott M Eshowsky Medical Information Officer 416695 0 4993 0 16821 0 13200 0 25079 0 476788 0 0 0 Diane M Maas Chief Bus Dev & Plan Officer 433281 0 0 0 54328 0 70779 0 22430 0 580818 0 50240 0 Mark A Warlick Chief Information Officer 386102 0 0 0 70956 0 66491 0 18763 0 542312 0 55084 0 Schedule J, Part I, Line 1a Health or social club dues or initiation fees COMPLIMENTARY HEALTH CLUB MEMBERSHIP WITH BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER IS OFFERRED TO DIRECTORS. BEACON HEALTH SYSTEM, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON HEALTH SYSTEM ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: SAMIR PATEL, AMISH SHAH, JAMES KEENAN, JOHN MARTIN, JULIA WILLIS, KAREN BARNETT, TIM SHELLY, AND LEVON JOHNSON. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUAL RECEIVED VESTED PAYMENTS IN 2023, REFLECTED IN COLUMN (B)(III): * KREG GRUBER, $113,175 * JEFFREY COSTELLO, $96,631 * STEVEN ELLER, $366,334 * DIANE MAAS, $41,284 * MARK WARLICK, $47,735 * HAYSAM ELDALATI, $90,903 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2023 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: * KREG GRUBER, $136,436 * JEFFREY COSTELLO, $82,406 * MARK WARLICK, $53,291 * DIANE MAAS, $57,579 * HAYSAM ELDALATI, $72,408 Schedule J, Part I, Line 7 Non-fixed payments THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT, AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE MANAGEMENT INCENTIVE IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. Schedule J, Part I, Line 3 ARRANGEMENT USED TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION THE BEACON HEALTH SYSTEM, INC. COMPENSATION REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTED TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION. A HOSPITAL AUTHORITY OF SAINT JOSEPH COUNTY 911914363 2016-08-18 50000000 CONSTRUCT CHILDREN'S HOSPITAL false false false B HOSPITAL AUTHORITY OF SAINT JOSEPH COUNTY 911914363 2018-12-11 35000000 CONSTRUCT ADMIN AND GRANGER HOSPITAL false false false A 7210000 50000000 285000 49715000 2017 false false true true B 6000000 35427291 155243 34844757 427291 0 2019 false false true true A false false false false 0.0 false false true B false false false false 0.0 false false true A false true false false false false false false true B false true false false true false false false true A true B true Schedule K, Part II, Line 3 Column B - Proceeds of Issue THE 2018 BOND HAS AN ISSUE PRICE OF $35,000,000 BUT HAS PROCEEDS OF $35,427,290.77. THE PROCEEDS INCLUDE $427,290.77 OF INTEREST. Megan Martin Board member is father-in-law 49565 Compensation false Valley Screen Board Member greater than 35% ownership 108769 Purchased Services false Form 990, Part VI, Line 2 FAMILY AND BUSINESS RELATIONSHIPS AMISH SHAH AND JESSI HSIEH HAVE A BUSINESS RELATIONSHIP. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons Valley Screen - Business relationship, Megan Martin - Family relationship Form 990, Part VI, Line 11b Review of form 990 by governing body THE ORGANIZATION INCORPORATES NUMEROUS PARTIES IN THE PRODUCTION AND REVIEW OF THE FORM 990 AND ASSOCIATED SCHEDULES. SENIOR ACCOUNTING STAFF AND MANAGEMENT COMPLETE THE FORM 990 AND SCHEDULES. SOME FORMS AND SCHEDULES ARE REVIEWED BY THE CONTROLLER. SUBSEQUENT TO THOSE STEPS, THE ORGANIZATION ENGAGED ERNST & YOUNG TO REVIEW THE COMPLETED FORM 990 AND APPROPRIATE SCHEDULES. PRIOR TO FILING THE RETURN, THE CFO, THE COMPENSATION COMMITTEE OF THE ORGANIZATION AND THE CEO CONDUCT A GENERAL OVERVIEW OF THE FORM 990, INCLUDING APPLICABLE COMPENSATION SCHEDULES. IN ADDITION, EACH BOARD MEMBER RECEIVES NOTIFICATION OF THE IRS FORM 990 PLACEMENT ON THE ORGANIZATION'S BOARD PORTALS WHICH ALLOWS FOR BOARD MEMBER REVIEW PRIOR TO FILING THE RETURN. Form 990, Part VI, Line 12c Conflict of interest policy THERE ARE THREE SEPARATE FORMS THAT ARE SENT OUT THROUGH THE INTERNAL AUDIT DEPARTMENT TO KEY EMPLOYEES OR BOARD MEMBERS REGARDING CONFLICT OF INTEREST. THEY ARE AS FOLLOWS: 1. THE FIRST IS A CONFLICT OF INTEREST STATEMENT THAT IS SENT TO SENIOR LEVEL ADMINISTRATION, MANAGEMENT, AND SELECT STAFF SUCH AS PURCHASING DEPARTMENT EMPLOYEES. THE PURPOSE OF THE STATEMENT IS TO REQUIRE THESE EMPLOYEES TO DISCLOSE ANY POTENTIAL CONFLICT OF INTERESTS THEY MAY HAVE. THE STATEMENTS ARE SENT IN JANUARY OF EACH YEAR FOR THE PREVIOUS YEAR ACTIVITIES WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT 375 STATEMENTS AND ARE WORKING TO ACHIEVE A 100% RESPONSE RATE. EACH RESPONSE IS REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT AND THE RESULTS ARE REPORTED TO THE CEO OF BEACON HEALTH SYSTEM, THE AUDIT COMMITTEE CHAIRMAN, AS WELL AS THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 2. THE SECOND STATEMENT IS THE BOARD DUALITY OF INTEREST STATEMENT THAT IS SENT TO CURRENT BOARD MEMBERS, FORMER BOARD MEMBERS FROM THE LAST FIVE YEARS, AND OTHER KEY EMPLOYEES. THE DUALITY OF INTEREST STATEMENT IS SENT USING A WEB BASED SURVEY TOOL PROVIDED BY ERNST & YOUNG. THE REPLIES ARE REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT. THE RESULTS OF THE SURVEYS ARE SUMMARIZED USING THE WEB BASED TOOL, AND ARE REVIEWED BY ERNST & YOUNG IN COMPLETING THE 990. The RESULTS ARE REPORTED TO THE CEO OF BEACON HEALTH SYSTEM, THE AUDIT COMMITTEE CHAIRMAN, AND THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 3. THE THIRD STATEMENT IS ENTITLED "CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS". THE STATEMENT REQUIRES AN ACKNOWLEDGEMENT FORM TO BE SIGNED BY BEACON HEALTH SYSTEM'S KEY FINANCIAL EMPLOYEES THAT BEACON'S FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT ON JANUARY 4, 2024 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2023, 26 DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST WOULD BE EXCLUDED FROM ALL REVIEW PROCEEDINGS. Form 990, Part VI, Line 15a Process to establish compensation of top management official PART VI, SECTION B, LINE 15A & 15B BEACON HEALTH SYSTEM, INC. HAS AN EXTENSIVE EXAMINATION THAT IS CONDUCTED FOR VICE PRESIDENT AND HIGHER. VICE PRESIDENT AND HIGHER COMPENSATION IS DETERMINED AFTER AN EXTENSIVE EXAMINATION IS CONDUCTED USING COMPARABLE MARKET DATA AND THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. HUMAN RESOURCES CONDUCTS THE ANALYSIS AND MAKES RECOMMENDATIONS TO THE CEO WHO THEN MAKES THE RECOMMENDATIONS FOR ALL OTHER EXECUTIVES/OFFICERS TO THE BOARD FOR APPROVAL. THE INDEPENDENT CONSULTING GROUP SEPARATELY MAKES THE RECOMMENDATIONS REGARDING THE CEO'S COMPENSATION TO THE BOARD FOR APPROVAL. RECOMMENDATIONS ARE PRESENTED TO THE COMPENSATION COMMITTEE OF THE BEACON HEALTH SYSTEM, INC. BOARD FOR DELIBERATION AND FINAL DECISION. DELIBERATION AND FINAL DECISION ARE PERFORMED BY THE INDEPENDENT MEMBERS OF THE BOARD. Form 990, Part VI, Line 19 Required documents available to the public THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. THE FINANCIAL STATEMENTS ARE DISTRIBUTED QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR THE BEACON HEALTH SYSTEM, INC. BONDS. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue MANAGED CARE ACTIVITIES - Total Revenue: 320188, Related or Exempt Function Revenue: , Unrelated Business Revenue: 320188, Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Form 990, Part IX, Line 11g Other Fees CONSULTING - Total Expense: 4029229, Program Service Expense: 4029229, Management and General Expenses: , Fundraising Expenses: ; EQUIPMENT RENTAL & MAINTENANCE - Total Expense: 39504679, Program Service Expense: 39504679, Management and General Expenses: , Fundraising Expenses: ; RADIOLOGY FEES - Total Expense: 334442, Program Service Expense: 334442, Management and General Expenses: , Fundraising Expenses: ; LAB READING FEES - Total Expense: 564342, Program Service Expense: 564342, Management and General Expenses: , Fundraising Expenses: ; CONTRACT LABOR - Total Expense: 86636, Program Service Expense: 86636, Management and General Expenses: , Fundraising Expenses: ; OTHER PURCHASED SERVICES - Total Expense: 13060408, Program Service Expense: 13060408, Management and General Expenses: , Fundraising Expenses: ; COLLECTION FEES - Total Expense: 9617483, Program Service Expense: 9617483, Management and General Expenses: , Fundraising Expenses: ; Form 990, Part XI, Line 9 Other changes in net assets or fund balances INTERCOMPANY WRITE OFF W/ BEACON MEDICAL GROUP - -XXX-XX-XXXX; INTERCOMPANY WRITE OFF W/ MEMORIAL HOSPITAL OF SOUTH BEND - XXX-XX-XXXX; INTERCOMPANY WRITE OFF W/ ELKHART GENERAL HOSPITAL - 36322675; INTERCOMPANY WRITE OFF W/ BEACON HEALTH FOUNDATION - -166261; INTERCOMPANY WRITE OFF W/ COMMUNITY HOSPITAL OF BREMEN - 2261223; INTERCOMPANY WRITE OFF W/ THREE RIVERS HOSPITAL - -10682519; INTERCOMPANY WRITE OFF W/ INTEGRATED HEALTH - -5191995; INTERCOMPANY WRITE OFF W/ THREE RIVERS HEALTH FOUNDATION - -129742; ROUNDING VARIANCE - 30; JOINT VENTURE TAX DIFFERENCES - 497050; Form 990 Box B Amended Return The 2023 Form 990 is being amended to check the appropriate boxes on Schedule J, Part I, Line 3. BEACON OCCUPATIONAL HEALTH 22818 OLD US 20 ELKHART IN 46516 352073758 MEDICAL CENT IN 6428000 2439000 BHS CHA ACO LLC 53842 GENERATIONS DR SOUTH BEND IN 46635 462860087 ACO IN 3514000 3444000 BHS BEACON HEALTH LLC 615 N MICHIGAN ST SOUTH BEND IN 46601 320541809 MEDICAL SRVCS IN 5457000 3590000 BHS MEMORIAL HOSPITAL OF SOUTH BEND INC 615 N MICHIGAN ST SOUTH BEND IN 46601 350868132 HOSPITAL IN 501(c)(3) 3 BHS true BEACON HEALTH FOUNDATION INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351536129 FINANCIAL SUP IN 501(c)(3) 7 BHS true ELKHART GENERAL HOSPITAL INC 600 EAST BLVD ELKHART IN 46514 350877574 HOSPITAL IN 501(c)(3) 3 BHS true BEACON MEDICAL GROUP INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351536132 PHY PRACTICES IN 501(c)(3) 10 BHS true MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(c)(3) Type III-O MHSB true COMMUNITY HOSPITAL OF BREMEN INC 1020 HIGH ROAD BREMEN IN 46506 350835006 HOSPITAL IN 501(c)(3) 3 BHS true THREE RIVERS HEALTH SYSTEM 701 SOUTH HEALTH PARKWAY THREE RIVERS MI 49093 451257972 HOSPITAL MI 501(c)(3) 3 BHS true BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN BHS C Corporation 1 true BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHGIAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI BHS C Corporation 1 true true false true false false false false false false false true true true false false true true true true BEACON MEDICAL GROUP P 38344005 ACTUAL CHARGES BEACON MEDICAL GROUP Q 85113157 ACTUAL CHARGES BEACON MEDICAL GROUP R 25242538 CASH BEACON MEDICAL GROUP L 21483389 TRANSFER PRICE BEACON MEDICAL GROUP K 235097 ACTUAL CHARGES BEACON MEDICAL GROUP S 196538167 CASH BEACON MEDICAL GROUP M 163516 TRANSFER PRICE BEACON MEDICAL GROUP A 44940 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND P 99184488 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND Q 196966804 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND R 229363377 CASH MEMORIAL HOSPITAL OF SOUTH BEND S 188002456 CASH MEMORIAL HOSPITAL OF SOUTH BEND L 81339907 TRANSFER PRICE MEMORIAL HOSPITAL OF SOUTH BEND K 1028738 ACTUAL CHARGES BEACON HEALTH FOUNDATION Q 1710833 ACTUAL CHARGES BEACON HEALTH FOUNDATION S 526467 CASH BEACON HEALTH FOUNDATION L 209483 TRANSFER PRICE BEACON HEALTH FOUNDATION P 167687 ACTUAL CHARGES BEACON HEALTH FOUNDATION A 4802 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN Q 7154489 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN L 3238224 TRANSFER PRICE COMMUNITY HOSPITAL OF BREMEN P 2841783 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN A 30000 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN S 5286514 CASH COMMUNITY HOSPITAL OF BREMEN R 6811883 CASH BEACON HEALTH VENTURES P 5740922 ACTUAL CHARGES BEACON HEALTH VENTURES Q 8848473 ACTUAL CHARGES BEACON HEALTH VENTURES L 665389 TRANSFER PRICE BEACON HEALTH VENTURES A 864 ACTUAL CHARGES BEACON HEALTH VENTURES R 1200524 CASH ELKHART GENERAL HOSPITAL P 17780103 ACTUAL CHARGES ELKHART GENERAL HOSPITAL Q 103466876 ACTUAL CHARGES ELKHART GENERAL HOSPITAL S 36323641 CASH ELKHART GENERAL HOSPITAL L 42620264 TRANSFER PRICE ELKHART GENERAL HOSPITAL K 96324 ACTUAL CHARGES BEACON HEALTH FOUNDATION C 402941 ACTUAL CHARGES THREE RIVERS HOSPITAL P 4362877 ACTUAL CHARGES THREE RIVERS HOSPITAL Q 37741342 ACTUAL CHARGES THREE RIVERS HOSPITAL S 13255650 CASH THREE RIVERS HOSPITAL L 6603188 TRANSFER PRICE THREE RIVERS HOSPITAL R 26261002 CASH THREE RIVERS HOSPITAL S 5191995 CASH THREE RIVERS HOSPITAL S 129743 CASH BEACON HEALTH FOUNDATION R 1230964 CASH BEACON HEALTH VENTURES M 224325 TRANSFER PRICE ELKHART GENERAL HOSPITAL R 164534354 CASH THREE RIVERS HOSPITAL M 289525 TRANSFER PRICE