2025-11-14T14:11:30-06:00 2024-12-31 420714325 RSM US LLP 30 South Wacker Dr Suite 3300 Chicago IL 606063392 990 2024-01-01 351536129 Beacon Health Foundation Inc BEAC 5746473549 615 N Michigan Street South Bend IN 46601 Jeffrey Costello CFO 5746473549 2025-11-11 1 1 Rebekuh Eley P01247672 3126343400 2025-11-11 2024 2025-03-06 01:10:19Z Kreg Gruber 615 N Michigan Street South Bend IN 46601 29706373 0 X www.beaconhealthsystem.org X 1982 IN We deliver outstanding care, inspire health and connect with heart. 14 14 0 16 4159 0 2734078 9886571 0 0 1313608 8442789 1 3 4047687 18329363 1500758 4454433 0 0 978187 1096870 0 0 993288 756193 930066 3235138 6481369 812549 11847994 42645248 50468125 16575 2074 42628673 50466051 X We deliver outstanding care, inspire health and connect with heart. 0 0 4454433 4454433 0 On November 23, 2011, Beacon Health System, Inc. (the "Corporation") was founded as the parent organization of Memorial Hospital of South Bend, Inc. ("MHSB") and Elkhart General Hospital, Inc. ("EGH"). Its mission is to provide a comprehensive range of health-related services for North Central Indiana and Southwestern Michigan. The Corporation, along with its subsidiaries, offers a continuum of care to the community, encompassing health promotion, disease prevention, diagnosis, inpatient and outpatient care, and home health services. The Corporation oversees MHSB, EGH, Community Hospital of Bremen, Three Rivers Health, Beacon Medical Group (BMG), Beacon Health Foundation (BHF) (formerly Memorial Health Foundation, Inc. (MHF)), and Beacon Health Ventures, Inc. (BHV), collectively known as the "System."Beacon Health Foundation, Inc. (BHF) is a tax-exempt, non-private foundation. It was established in 1982 to provide philanthropic support to MHSB and continues to provide this support to the newly created Corporation through contributions and management of endowment funds. Beacon Health Foundation's mission is to support the work of Beacon Health System by inspiring generosity and commitment. BHF exists to allow people to support Beacon in a way that connects them with their impact on our work in the community. Beacon Health Foundation works to support Beacon Health System in three key ways:- Creating relationships- Inspiring investment- Stewarding resourcesCreating Relationships:Beacon Health Foundation (BHF) raises funds for Beacon Health System, Inc. BHF's job is to ensure that the charitable support of Beacon is used to create the most significant impact possible in a way that is most meaningful to each donor. The Health System relies on our community's support to ensure that we can always provide the highest quality services for every patient.Inspiring Investment:In 2024, fundraising at Beacon Health Foundation focused on the following areas:- Corporate fundraising- Grant writing, focusing on private, corporate and family foundations- Online giving- Major gift fundraising- Direct mail fundraisingFunds available at BHF to support Memorial's mission as of December 31, 2024:Children's Services $1,982,465Trauma Services $6,957,508System Priorities $955,113Cancer Services $225,344Stewarding Resources:In 2024, funds from Beacon Health Foundation were to support the following areas at Beacon:Distribution Fund Description and Amount: Cancer Services $5,049 Cardiovascular Services $1,802 Children's Services $771,277Children's Support Services $94,898Community Impact $193,237Continuing Education $58,274Education Endowments Spendable $45,702Emergency/Trauma Services $38,899Events $157,552Family Medicine Residency $69,582Patient Care Programs $2,028,100Physician Philanthropy Council $137,508Scholarships $55,960Support Services $127,813System Priorities $633,841Women's Services $8,709Total $4,428,203 4454433 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 14 14 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 IN X Jeffrey Costello 5746473549 615 N Michigan Street South Bend IN 46601 James Sawdon Chair 2.00 0.00 X X 0 200 0 Pam Veldman Vice Chair 2.00 0.00 X X 0 200 0 Angie Welter Secretary 2.00 0.00 X X 0 200 0 Brad Beutter Director 2.00 0.00 X 0 200 0 Erik Brenner Director 2.00 0.00 X 0 200 0 Scott Brewer Director thru 3/31/24 2.00 0.00 X 0 510 0 LaRissa Chism Buggs MD Director 2.00 0.00 X 0 1220 0 Daniel Cripe Director 2.00 0.00 X 0 1220 0 Joel Duthie Director 2.00 0.00 X 0 1220 0 Michael Fenech Director 2.00 0.00 X 0 860 0 Joseph M Hart Director thru 3/31/24 2.00 0.00 X 0 680 0 Diane Krill Director 2.00 0.00 X 0 1220 0 Paul Phair Director 2.00 0.00 X 0 200 0 Pat Russell Director 2.00 0.00 X 0 200 0 Alex Strati Director 2.00 0.00 X 0 285 0 Mike Watsson Director 2.00 0.00 X 0 200 0 Kreg R Gruber CEO 2.00 50.00 X 0 1848714 287708 Jeffrey P Costello CFO 2.00 50.00 X 0 1077612 188598 Susan King President 40.00 2.00 X 0 462760 133823 0 3397901 610129 0 0 1 0 0 9886571 885131 9886571 882247 4159 878088 18937552 11377010 7560542 7560542 7560542 Cash Discount 900099 3 3 3 18329363 0 4159 8438633 4357259 4357259 97174 97174 769426 353936 415490 269447 123946 145501 57997 26679 31318 32702 32702 54543 28740 25803 15498 7129 8369 1610 1610 4740 2180 2560 18517 17470 1047 7229 3325 3904 9169 9169 13192 13192 Four Winds Invitational 234215 107739 126476 Corp Allocation 221622 221622 Dues / Sub 165375 76073 89303 UBI Tax 104 104 151550 8032 143518 6481369 4454433 1033647 993288 6929163 12140269 2100 0 257989 248578 18581 9411 21956729 31256860 13726529 7049439 12146 12146 42645248 50468125 16575 2074 16575 2074 X 31795716 34064537 10832957 16401514 42628673 50466051 42645248 50468125 X 11847994 -5087783 1077167 X 0 1 X 1 0 X 1970179 3216861 3733655 2734078 9886571 21541344 1970179 3216861 3733655 2734078 9886571 21541344 2170171 19371173 389598 503669 591415 834739 878088 3197509 0 0 0 497 0 497 1 3 4 24739354 0.78300 0.70480 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 42456771 9625097 2320861 4428203 49974526 38758960 2440358 2682416 1424963 42456771 42986124 3689060 -4645969 3270255 38758960 37554313 3126708 3841751 1536648 42986124 34924914 1692784 2289915 1353300 37554313 0.67190 0.00000 0.32810 0 0 93974 85254 8720 164015 163324 691 9411 Alternative Investments 7049439 F 7049439 X Part V, Line 4: 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 gains 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 changes 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. Part X, Line 2: 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 benefit) before it is recognized in the consolidated 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 set forth new disclosures regarding unrecognized tax benefits. No amount was recorded for the years ended December 31, 2024 and 2023. Central America and the Caribbean 0 0 Investments 8812700 North America 0 0 Investments 1566953 Europe (Including Iceland & Greenland) 0 0 Investments 1483970 0 0 0 0 0 0 11863623 0 11863623 1 0 1 1 1 0 1 Beacon Health System Inc 615 N Michigan Street South Bend IN 46601 453864076 501(c)(3) 394886 0 To support scholarships and capital purchases Beacon Medical Group Inc 615 N Michigan Street South Bend IN 46601 351536132 501(c)(3) 2086249 0 To support BMG operations and capital purchases Elkhart General Hospital 600 East Boulevard Elkhart IN 46514 350877574 501(c)(3) 470690 0 To support hospital operations and capital purchases Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(c)(3) 1236977 0 To support hospital operations and capital purchases 4 0 Toys, Blankets, Etc 4487 0 59274 FMV TOYS, BLANKETS, HOUSEHOLD GOOD ETC... Part I, Line 2: The Organization has numerous temporarily restricted funds from which the distributions are considered grants. In general, the grants are to provide scholarships and/or are distributions for the purpose of the specific fund. All distributions of the funds are supported by evidence that the expenditure meets the donor's intent. 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. Eligibility requirements 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. Part III: The number of recipients is based on the number of patients admitted to both the Pediatrics and Pediatrics Hematology/Oncology departments at MHSB for 2024. All outpatients and inpatients receive a welcome gift. The welcome gifts vary based on what items are available when the patient arrives. There are also special occasions (i.e. birthdays, Christmas, etc.) when a patient may receive an additional item. 0 1 0 0 0 0 0 0 0 Kreg R Gruber CEO 0 1081233 0 557131 0 210350 0 259693 0 28015 0 2136422 0 64523 Jeffrey P Costello CFO 0 626239 0 261724 0 189649 0 166583 0 22015 0 1266210 0 61622 Susan King President 0 289640 0 121408 0 51712 0 100166 0 33657 0 596583 0 30198 Part I, Line 3 Beacon Health Foundation, Inc. uses a related organization's (Beacon Health System, Inc.) compensation review process. This review process includes an extensive examination using comparable market data that is then reviewed by an independent consultant hired by, and reporting to, the board of directors. Recommendations are presented to the board for deliberation and final decision. Part I, Line 4b 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 individuals received vested payments in 2024, reflected in column (b)(iii): Kreg Gruber, $198,816 Jeffrey Costello, $130,545 Susan King, $42,671 The following individuals received deferred payments in 2024 that will vest in future years, which are reflected in column c: Kreg Gruber, $215,393 Jeffrey Costello, $122,283 Susan King, $55,865 X 250 Cost X 13220 Cost X 4904 623657 Cost X 754 15000 Cost X Advertising, Gift Cards, Coupons, Toys, Stuffed Animals, Electronics, 4686 233004 Cost 0 0 0 0 Part I, Column (b): Using a combination of the two methods above. Schedule M, Part I, Line 31 Beacon Health Foundation has a written policy for review of all gifts, it does not speak specifically to non-standard gifts, however there is a review process in place. Form 990, Part V, line 1a: Employees are paid by Beacon Health System, Inc. (EIN 45-3864076) and expensed to Beacon Health Foundation through contract labor. Beacon Health System, Inc. issues all W-2s and 1099s. Form 990, Part VI, Section A, line 2 Michael Fenech and James Sawdon have a business relationship. Form 990, Part VI, Section A, line 6 Beacon Health System, Inc. is the sole corporate member of Beacon Health Foundation, Inc. Form 990, Part VI, Section A, line 7a The Corporate Member shall appoint the Board of Directors of Beacon Health Foundation, Inc. and shall have such powers of advance approval regarding corporate actions as are delineated in the bylaws of the Beacon Health Foundation, Inc.. Form 990, Part VI, Section A, line 7b Decisions of the Board of Directors must be approved by the Corporate Member. The following matters are specifically reserved to require the approval of the Corporate Member: - Make and approve changes to the governing documents of the Corporation. - Appoint, upon the recommendation of the nominating and governance committee of the Corporate Member, or remove, with or without cause, the members of the governing board of the Corporation. Removal does not require a recommendation of the Corporation's governing board. - Approve the incurrence of debt of the Corporation in accordance with system policies. - Approve the sale, transfer or substantial change in use of all or substantially all of the assets of the Corporation and divestiture, dissolution, closure, merger, consolidation, change in corporate membership or ownership, or corporate reorganization of the Corporation, but as to either hospital only if such action has been approved by supermajority vote of the Board of Directors of the Corporate Member. - Approve the formation of a subsidiary organization, and the sale, transfer or substantial change in use of all or substantially all of the assets of a subsidiary organization of the Corporate Member, or the divestiture, dissolution, closure, merger, consolidation or change in corporate membership or ownership of a subsidiary organization. - Approve the material transfer or encumbrance of the assets of the Corporation in accordance with system policies, provided that the transfer of assets except in connection with system borrowing will require approval by super majority vote of the Board of Directors of the Corporate Member. - Approve the annual operating budget, capital plan, strategic plan, and business plan for the Corporation. - Approve the mission and vision statements for the Corporation. - With input from the Chief Executive Officer of the Corporate Member, approve any material transactions of the Corporation which are not otherwise included in the Corporate Member approved operating or capital budgets of the Corporation or as otherwise authorized in the bylaws or operating agreement of the Corporation. - Resolve any issues between Corporation as to participation, or failure to participate in, specific managed care agreements and the terms there of. - Approve any management agreement for the management of all or any substantial part of the Corporation's operations. Form 990, Part VI, Section B, line 11b The Organization incorporates numerous parties in the production and review of the form 990 and associated schedules. Senior accounting staff and management complete information for the form 990 and related schedules. Some forms and schedules are reviewed by the controller. Subsequent to those steps, the Organization engaged RSM to prepare form 990 and appropriate schedules. Prior to filing the return, the CFO, the audit 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, Section B, line 12c 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. We sent out 372 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 RSM. 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 RSM 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 March 4, 2025 and the signed acknowledgements are kept by the director of internal audit. In 2024, 31 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, Section B, line 15 Beacon Health Foundation, Inc.'s parent, Beacon Health System, Inc., has a comprehensive process in place for reviewing and approving compensation of the executive leadership team. This review compares the total compensation provided to each executive to that provided to functionally similar positions in similarly situated organizations. This review is conducted regularly by the board compensation committee in consultation with an independent compensation advisor who is hired by and reports to the board compensation committee. Based on the advice of the compensation advisor and comparable and appropriate market data reported in third-party compensation surveys, and applying the organization's executive compensation philosophy, the board compensation committee makes compensation recommendations regarding the CEO's compensation to the board of directors for approval and the CEO makes compensation recommendation regarding all other members of the executive leadership team to the board compensation committee for approval. Deliberations and final decisions are contemporaneously documented. The annual compensation review was completed by the board compensation committee in March 2025 and the independent compensation advisor provided a statement of reasonableness of the compensation provided to the CEO and executive leadership team members. Form 990, Part VI, Section C, line 19 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 XI, line 9: Change in Temp. Restricted Investments 298,239. Tranfers from Related Parties 705,501. Changes in Grube Trust 73,427. Beacon Medical Group Inc 615 N Michigan St South Bend IN 46601 351536132 Physician Practices IN 501(c)(3) Line 10 Beacon Health System Inc 1 Memorial Hospital of South Bend Inc 615 N Michigan St South Bend IN 46601 350868132 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Elkhart General Hospital Inc 600 East Boulevard Elkhart IN 46514 350877574 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 Parent Organization IN 501(c)(3) Line 12c, III-FI N/A 0 Community Hospital of Bremen Inc 1020 High Road Bremen IN 46506 350835006 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Three Rivers Health System 701 S Health Parkway Three Rivers MI 49093 451257972 Hospital MI 501(c)(3) Line 3 Beacon Health System Inc 1 South Bend Specialty Surgery Center LLC 335 Florence Ave 1B Granger IN 46530 460571419 Ambulatory Surgery Center IN N/A 0 0 Beacon Health Ventures Inc 615 N Michigan St South Bend IN 46601 351901068 Home Medical IN Beacon Health System Inc C 1 Beacon Health Ventures Michigan Inc 615 N Michigan St South Bend IN 46601 208259773 Home Medical MI Beacon Health System Inc C 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 Memorial Hospital of South Bend Inc B 1236977 Actual Charges Elkhart General Hospital Inc B 470690 Actual Charges Beacon Medical Group Inc B 2086249 Actual Charges Memorial Hospital of South Bend Inc R 127882 Cash Beacon Medical Group Inc R 57551 Cash Memorial Hospital of South Bend Inc S 127767 Cash Beacon Medical Group Inc S 56563 Cash