2022-08-12T12:43:20-05:00 2021-09-30 135565207 KPMG LLP 60 SOUTH STREET BOSTON MA 02111 990 2020-10-01 463556853 BMC HEALTH SYSTEM INC BMCH 6176387901 ONE BOSTON MEDICAL CENTER PLACE BOSTON MA 02118 DAVID BECK CLERK 6176387901 2022-08-12 1 DAVID BECK 999009999 STEPHANIE LONCZAK P01880207 6179881000 0 AAL1 IAL1 2020 2022-09-23 18:48:47Z TERRI NEWSOM ONE BOSTON MEDICAL CENTER PLACE BOSTON MA 02118 189200474 0 X N/A X 2013 MA BMC HEALTH SYSTEM, INC.'S MISSION IS TO PROVIDE GOVERNANCE, LONG-TERM STRATEGIC PLANNING, AND BUDEGTARY AND FINANCIAL ASSISTANCE FOR BOSTON MEDICAL CENTER AND ITS AFFILIATES. 14 13 0 14 0 0 0 0 8252167 4624988 142686 37815 166837776 184537671 175232629 189200474 12878 0 0 0 92334768 95242011 0 0 0 90868159 104901720 183215805 200143731 -7983176 -10943257 35307136 32089723 36114808 29723712 -807672 2366011 BMC HEALTH SYSTEM, INC.'S MISSION IS TO PROVIDE GOVERNANCE, LONG-TERM STRATEGIC PLANNING, AND BUDEGTARY AND FINANCIAL ASSISTANCE FOR BOSTON MEDICAL CENTER AND OTHER AFFILIATES THAT SHARE THEIR MISSION TO SUPPORT BOSTON MEDICAL CENTER CORPORATION. 0 0 200143731 189162659 SINCE ITS FORMATION ON JULY 1, 2013, BMC HEALTH SYSTEM, INC. HAS, IN ACCORDANCE WITH ITS MISSION, PROVIDED GOVERNANCE, STRATEGIC PLANNING, AND BUDGETARY ASSISTANCE FOR BOSTON MEDICAL CENTER CORPORATION AND OTHER AFFILIATES THAT SHARE AS THEIR MISSION SUPPORT OF BOSTON MEDICAL CENTER CORPORATION. 200143731 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 69 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 14 13 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 MA X PETER THUKU 6176387494 ONE BOSTON MEDICAL CENTER PLACE BOSTON MA 02118 KATHLEEN E WALSH PRESIDENT/TRUSTEE 1.00 52.50 X X 0 2235565 35988 DAVID AMENT TRUSTEE 1.00 2.00 X 0 0 0 JAMES BLUE TRUSTEE 1.00 1.00 X 0 0 0 MATTHEW BOTEIN TRUSTEE 1.00 0.00 X 0 0 0 SANDRA COTTERELL TRUSTEE 1.00 1.00 X 0 0 0 WILLIAM CREEVY MD TRUSTEE 1.00 1.00 X 0 0 0 RANDI CUTLER TRUSTEE 1.00 1.00 X 0 0 0 EDMOND ENGLISH TRUSTEE 1.00 0.00 X 0 0 0 MARIANNE HARRISON TRUSTEE (AS OF 6/8/2021) 1.00 0.00 X 0 0 0 RICHARD MARKS TRUSTEE 1.00 1.00 X 0 0 0 MONICA NOETHER MD TRUSTEE 1.00 0.00 X 0 0 0 MARK NUNNELLY TRUSTEE/CHAIR 1.00 0.00 X X 0 0 0 MARTHA SAMUELSON TRUSTEE 1.00 1.00 X 0 0 0 RICHARD SLIFKA TRUSTEE (UNTIL 6/8/21) 1.00 0.00 X 0 0 0 ANDREW YOUNISS TRUSTEE 1.00 1.00 X 0 0 0 DAVID BECK ESQ CLERK 1.00 52.50 X 0 633628 57813 TERRI NEWSOM TREASURER (AS OF 11/10/20) 1.00 52.00 X 0 289055 6385 CHARLES ORLANDO FORMER TREASURER 0.00 0.00 X 0 799474 40493 0 3957722 140679 0 1 1 0 MCKINSEY & COMPANY INC US 711 3RD AVE 4TH FLOOR NEW YORK NY 10017 HEALTHCARE CONSULTING 2900000 ZEOMEGA INC 6200 TENNYSON PKWY 200 PLANO TX 75024 HEALTHCARE CONSULTING 1524335 GREENPAGES INC 100 FIRST AVENUE BOSTON MA 02129 TECHNOLOGY 1399824 DLA PIPER US LLP 2001 SMITH AVE SUITE 1350 BALTIMORE MD 21209 LEGAL SERVICES 1350607 AGILE 1 1999 WEST 190TH STREET TORRANCE CA 90504 STAFFING SERVICES 1308352 99 PATIENT SERVICE REVENUE 900099 4624988 4624988 4624988 37815 37815 CORPORATE OVERHEAD ALLOCATION 900099 184537671 184537671 184537671 189200474 189162659 0 37815 X 76645897 76645897 13398954 13398954 5197160 5197160 2993420 2993420 114425 114425 22230082 22230082 144031 144031 3696024 3696024 8364 8364 15076306 15076306 57005 57005 142810 142810 51763 51763 LICENSE FEES 43520884 43520884 OTHER EXPENSES 10770265 10770265 TAXES 3811615 3811615 FEES 1409268 1409268 875458 875458 200143731 200143731 0 0 14918770 13753845 5882143 304972 14221526 17797972 2383623 2150689 284697 232934 35307136 32089723 9381580 15238941 26733228 14484771 36114808 29723712 X -807672 2366011 -807672 2366011 35307136 32089723 X -10943257 -13883060 28000000 X 0 1 X 1 0 X X X 2 BOSTON MEDICAL CTR 043314093 3 1 0 0 BMC HEALTH PLAN INC 043373331 10 1 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SCHEDULE A, PART IV, SECTION C, LINE 1 BMC HEALTH SYSTEM IS BOTH SUPERVISED AND CONTROLLED IN CONNECTION WITH BOSTON MEDICAL CENTER CORPORATION, THE SUPPORTED ORGANIZATION, BECAUSE (A) 3 OF THE CORPORATION'S 4 OFFICERS ARE ALSO OFFICERS OF BOSTON MEDICAL CENTER CORPORATION SERVING IN THE SAME ROLES; AND (B) 7 OF THE CORPORATION'S 15 TRUSTEES ARE ALSO TRUSTEES OF BOSTON MEDICAL CENTER CORPORATION. BY REASON OF THE FOREGOING RELATIONSHIP, THE CORPORATION AND ITS TRUSTEES AND OFFICERS ARE RESPONSIVE TO THE NEEDS AND REQUIREMENTS OF BOSTON MEDICAL CENTER CORPORATION AND RELATED 501(C)(3) ORGANIZATIONS THAT SHARE AS THEIR MISSION SUPPORT OF BOSTON MEDICAL CENTER CORPORATION. BMC HEALTH SYSTEM (THE CORPORATION) IS SUPERVISED AND CONTROLLED IN CONNECTION WITH BOSTON MEDICAL CENTER HEALTH PLAN, THE SUPPORTED ORGANIZATION, BECAUSE: (A) THE CHAIR OF THE BOSTON MEDICAL CENTER HEALTH PLAN BOARD IS ALSO A CORPORATION TRUSTEE AND CORPORATION'S PRESIDENT APPOINTS THE PRESIDENT OF BOSTON MEDICAL CENTER HEALTH PLAN (B) 3 OF BOSTON MEDICAL CENTER HEALTH PLAN'S 13 TRUSTEES ARE ALSO TRUSTEES OF THE CORPORATION (WHICH HAS A TOTAL OF 15 TRUSTEES); AND (C) THE CORPORATION AND BOSTON MEDICAL CENTER HEALTH PLAN ARE PARTIES TO A SERVICE AGREEMENT UNDER WHICH THE CORPORATION PROVIDES CARE MANAGEMENT AND PROVIDER SERVICES TO BOSTON MEDICAL CENTER HEALTH PLAN AND MAY PROVIDE THE HEALTH PLAN OTHER ADMINISTRATIVE AND PERSONNEL SERVICES. BY REASON OF THE FOREGOING RELATIONSHIP, THE CORPORATION AND ITS TRUSTEES AND OFFICERS ARE RESPONSIVE TO THE NEEDS AND REQUIREMENTS OF BOSTON MEDICAL CENTER HEALTH PLAN AND RELATED 501(C)(3) ORGANIZATIONS THAT SHARE AS THEIR MISSION SUPPORT OF BOSTON MEDICAL CENTER CORPORATION. 2383623 2150689 232934 232934 OTHER LONG TERM LIABILITIES 592078 INTERCOMPANY AND ZONE RECEIVABLES 13823882 LOAN RESERVES 68811 14484771 X PART X, LINE 2: BMC HEALTH SYSTEM, INC. IS INCLUDED IN COMBINED FINANCIAL STATEMENTS. THE TEXT OF THE UNCERTAIN TAX POSITIONS FOOTNOTE INCLUDED IN THESE FINANCIAL STATEMENTS IS AS FOLLOWS: THE HEALTH SYSTEM CORPORATION, THE MEDICAL CENTER, BMCHP, UDF, ECMF, BUAP, FACULTY AND THE PLANS, BACO, BMCICS, AND BMCIC OF VERMONT ARE ALL NONPROFIT CORPORATIONS THAT HAVE BEEN RECOGNIZED AS TAX-EXEMPT PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. CORNERSTONE HEALTH SOLUTIONS, LLC IS A TAXABLE DELAWARE LIMITED LIABILITY COMPANY. AS OF SEPTEMBER 30, 2021, ALL CONTRACTS FOR THE CORNERSTONE BUSINESS LINE ARE BETWEEN THE MEDICAL CENTER AND THE CLIENTS. ALL CONTRACT RELATED REVENUE AND EXPENSE IS RECORDED AT THE MEDICAL CENTER AND EVALUATED FOR UNRELATED BUSINESS INCOME TAX (UBIT). THE HEALTH SYSTEM RECOGNIZES INCOME TAX POSITIONS WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINABLE BASED ON THE MERITS OF THE POSITION. MANAGEMENT HAS CONCLUDED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT NEED TO BE RECORDED AS OF SEPTEMBER 30, 2021 AND 2020. THE HEALTH SYSTEM ANNUALLY ASSESSES WHETHER IT MUST RECOGNIZE AN UNRELATED BUSINESS INCOME TAX EXPENSE (UBIT). THE AMOUNTS RECOGNIZED AS UBIT EXPENSE WERE NOT MATERIAL TO THE HEALTH SYSTEM'S CONSOLIDATED OPERATIONS OR CHANGES IN NET ASSETS FOR THE YEARS ENDED SEPTEMBER 30, 2021 AND 2020. 0 1 0 0 0 0 0 0 0 KATHLEEN E WALSH PRESIDENT/TRUSTEE 0 1225640 0 788400 0 221525 0 19000 0 16988 0 2271553 0 0 CHARLES ORLANDO FORMER TREASURER 0 491974 0 300000 0 7500 0 5864 0 34629 0 839967 0 0 DAVID BECK ESQ CLERK 0 418099 0 156950 0 58579 0 19950 0 37863 0 691441 0 0 TERRI NEWSOM TREASURER (AS OF 11/10/20) 0 206555 0 75000 0 7500 0 0 0 6385 0 295440 0 0 PART I, LINE 3 BMC HEALTH SYSTEM, INC. RELIED ON BOSTON MEDICAL CENTER (BMC), AN AFFILIATED ORGANIZATION OF BMC HEALTH SYSTEM, INC., TO ESTABLISH ITS PRESIDENT'S COMPENSATION. ALL METHODS INCLUDED ON LINE 3 ARE UTILIZED BY BMC TO ESTABLISH THE PRESIDENT'S COMPENSATION. SCHEDULE J, PART I, LINE 4B: CERTAIN EXECUTIVES DISCLOSED ON THE BMC HEALTH SYSTEM, INC. FORM 990, PART VII AND SCHEDULE J, PART II ARE COMPENSATED BY BMC, A RELATED ORGANIZATION, FOR SERVICES TO BMC. BOSTON MEDICAL CENTER PROVIDES A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN TO CERTAIN EXECUTIVES. AMOUNTS ARE CREDITED TO PARTICIPANTS' ACCOUNTS EACH YEAR. PLAN AMOUNTS ARE SUBJECT TO FORFEITURE AND PAYMENT ONLY IF CERTAIN CONDITIONS ARE MET, AS OUTLINED IN THE PLAN AGREEMENT. BOSTON MEDICAL CENTER MAINTAINS AN EXECUTIVE BENEFIT PLAN WHICH OFFERS PARTICIPATING EXECUTIVES THE OPTION OF ANNUALLY ALLOCATING BENEFIT DOLLARS TO A SUPPLEMENTAL RETIREMENT/PRE-TAX SAVINGS ACCOUNT. AMOUNTS VEST ON SPECIFIED DATES BASED ON CONTINUED EMPLOYMENT BUT NO LATER THAN THE EXECUTIVE'S 62ND BIRTHDAY. AMOUNTS ACCRUED IN THE PLAN ARE REPORTED IN SCHEDULE J, PART II, COLUMN C. THE FOLLOWING AMOUNTS BECAME VESTED AND WERE PAID TO THE FOLLOWING EXECUTIVES IN CALENDAR YEAR 2020: WALSH - $195,563 BECK - $50,310 BOSTON MEDICAL CENTER PROVIDED A 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN TO DAVID BECK, SENIOR VICE PRESIDENT, CHIEF LEGAL COUNSEL, AND CLERK OF BOSTON MEDICAL CENTER. DAVID BECK REACHED THE PLAN RETIREMENT AGE IN 2019 AND VESTED 100% IN THE PLAN. IN ADDITION, PURSUANT TO THE TERMS OF THE PLAN, ONCE THE PLAN PARTICIPANT REACHES THE PLAN RETIREMENT AGE, ALL FUTURE CONTRIBUTIONS ARE MADE IN CASH. ACCORDINGLY, THE REMAINING $50,310 WAS PAID TO DAVID BECK IN CASH IN 2020. BOSTON MEDICAL CENTER PROVIDED A SEPARATE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN TO KATHLEEN E. WALSH, PRESIDENT AND CEO AS OF MARCH 1, 2010. PURSUANT TO THE TERMS OF THE AGREEMENT, CERTAIN AMOUNTS WERE CREDITED TO THE PRESIDENT AND CEO'S ACCOUNT IN PRIOR YEARS. THESE AMOUNTS ARE SUBJECT TO FORFEITURE AND PAYMENT WILL BE MADE ONLY IF CERTAIN CONDITIONS ARE MET, AS OUTLINED IN THE AGREEMENT. FOR CALENDAR YEAR 2020 $195,563 WAS VESTED AND IS REFLECTED IN SCHEDULE J, PART II, COLUMN B(III). FORM 990, PART VI, SECTION A, LINE 2 ANDREW YOUNISS DAVID AMENT KATHLEEN WALSH MARTHA SAMUELSON RANDI CUTLER RICHARD MARKS SANDRA COTTERELL DAVID BECK TERRI NEWSOM BUSINESS RELATIONSHIP - THE OFFICERS AND/OR TRUSTEES ABOVE ARE ALSO EMPLOYEES, OFFICERS, AND/OR TRUSTEES OF BOSTON MEDICAL CENTER. WILLIAM CREEVY, M.D. DAVID BECK BUSINESS RELATIONSHIP - THE OFFICERS AND/OR TRUSTEES ABOVE ARE ALSO EMPLOYEES, OFFICERS, AND/OR TRUSTEES OF BOSTON UNIVERSITY ORTHOPAEDIC SURGICAL ASSOCIATES, INC. FORM 990, PART VI, SECTION B, LINE 11B BMC HEALTH SYSTEM, INC.'S FORM 990 IS PREPARED BY KPMG LLP AND REVIEWED BY BOSTON MEDICAL CENTER'S (BMC) AND BMC HEALTH SYSTEM'S INTERNAL MANAGEMENT. FOLLOWING THAT REVIEW, BMC'S INTERNAL MANAGEMENT AND KPMG PRESENT THE FORM 990 TO THE AUDIT COMMITTEE FOR REVIEW AND COMMENT. THE COMPLETED FORM 990 IS PROVIDED TO ALL MEMBERS OF THE BOARD OF TRUSTEES PRIOR TO THE FORM BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST QUESTIONNAIRES FOR THE FISCAL YEAR END SEPTEMBER 30, 2021 WERE DISTRIBUTED BY BOSTON MEDICAL CENTER'S ("BMC"), AN AFFILIATED ORGANIZATION, CORPORATE COMPLIANCE DEPARTMENT. THE CHIEF COMPLIANCE OFFICER OF BMC OR THE CHIEF COMPLIANCE OFFICER'S DESIGNEE QUERIES TRUSTEES, OFFICERS AND DIRECTORS ON AT LEAST AN ANNUAL BASIS REGARDING RELATIONSHIPS THAT MAY CREATE POTENTIAL CONFLICTS OF INTEREST. THE CHIEF COMPLIANCE OFFICER OR THE CHIEF COMPLIANCE OFFICER'S DESIGNEE REVIEWS ALL DISCLOSURES AND DETERMINES WHETHER THERE ARE ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE CHIEF COMPLIANCE OFFICER OR THE CHIEF COMPLIANCE OFFICER'S DESIGNEE INFORMS THE CHIEF LEGAL COUNSEL OF ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. THE CHIEF LEGAL COUNSEL ADVISES THE BOARD OF DIRECTORS AND OFFICERS OF THE CORPORATION ACCORDINGLY. FORM 990, PART VI, SECTION B, LINE 15 THE OFFICERS ARE NOT COMPENSATED IN THEIR CAPACITY AS OFFICERS OF BMC HEALTH SYSTEM, INC. THE PRESIDENT, CLERK, AND THE TREASURER TERRI NEWSOM ARE ALSO EMPLOYEES OF BOSTON MEDICAL CENTER (BMC), FOR WHICH THEY ARE COMPENSATED. THEREFORE, THEIR COMPENSATION AND BENEFITS ARE DETERMINED BY BMC. FORM 990, PART VI, SECTION C, LINE 19 BMC HEALTH SYSTEM, INC. DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS PUBLICLY AVAILABLE. HOWEVER, THE ARTICLES OF THE ORGANIZATION ARE POSTED ON THE SECRETARY OF THE COMMONWEALTH'S WEBSITE. FORM 990, PART IX, LINE 11G CLINICIAN SERVICES: PROGRAM SERVICE EXPENSES 3,090,973. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,090,973. OTHER FEES-BEACON: PROGRAM SERVICE EXPENSES 75,268. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 75,268. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 3,974,214. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,974,214. RECRUITING FEES: PROGRAM SERVICE EXPENSES 903,769. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 903,769. TEMPORARY HELP: PROGRAM SERVICE EXPENSES 1,100,907. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,100,907. OUTSOURCED SERVICES: PROGRAM SERVICE EXPENSES 3,950. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,950. CONSULTING EXPENSE: PROGRAM SERVICE EXPENSES 13,080,201. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,080,201. HONORARIUM: PROGRAM SERVICE EXPENSES 800. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 800. FORM 990, PART XI, LINE 9: NET ASSET TRANSFER FROM AFFILIATES 28,000,000. CORNERSTONE HEALTH SERVICES LLC ONE BOSTON MEDICAL CENTER PLACE BOSTON MA 02118 852764256 PHARMACY CONSULTING MA 0 0 BMCHS BMC INSURANCE CO LTD OF VT 126 COLLEGE STREET BURLINGTON VT 05401 201810549 INSURANCE VT 501(C)(3) 12 A-I BMCHS 1 BMC INTEGRATED CARE SERVICES INC ONE BOSTON MEDICAL CENTER PL BOSTON MA 02118 043414914 HEALTHCARE MA 501(C)(3) 12 A-I BMCBACO 1 BOSTON MEDICAL CENTER ONE BOSTON MEDICAL CENTER PL BOSTON MA 02118 043314093 HEALTHCARE MA 501(C)(3) 3 N/A 0 BOSTON MEDICAL CENTER HEALTH PLAN INC 529 MAIN STREET SUITE 500 CHARLESTOWN MA 02118 043373331 INSURANCE MA 501(C)(3) 12 A-I N/A 0 BOSTON UNIVERSITY AFFILIATED PHYSICIANS ONE BOSTON MEDICAL CENTER PL BOSTON MA 02118 043218267 HEALTHCARE MA 501(C)(3) 3 BMC 1 UNIVER DEVELOPMENT FOUNDATION INC ONE BOSTON MEDICAL CENTER PL BOSTON MA 02118 043101957 REAL ESTATE MA 501(C)(3) 12 A-I BMC 1 BMC INSURANCE COMPANY LTD 10 MAIN STREET GRAND CAYMAN CJ 980375219 INSURANCE CJ N/A C 1 CHARITABLE REMAINDER TRUST - MA (3) SUPPORT MA N/A C 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 0 1