2025-08-15T14:47:34-05:00 2024-09-30 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2023-10-01 810693478 Deaconess Regional Healthcare Services Illinois DEAC 6189987000 3333 W Deyoung Marion IL 62959 William Davis Illinois Region President 6189987000 2025-08-15 1 1 Kim Hunwardsen CPA P00484560 6122536500 2025-08-15 2023 2025-03-06 01:10:19Z William Davis 3333 W Deyoung Marion IL 62959 133322307 0 X https://heartlandregional.com/ X 2015 IL Delivery of quality, cost-effective health care and medical services. 7 7 469 25 0 0 0 0 85804936 133306895 817 15412 5140 0 85810893 133322307 0 0 0 0 21017837 32456812 0 0 0 56201508 96682882 77219345 129139694 8591548 4182613 260700796 251398155 236426233 224940979 24274563 26457176 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. 0 0 100781263 131887195 Deaconess Regional Healthcare Services Illinois owns and operates Deaconess Illinois Medical Center, Inc. and Deaconess Illinois Transcare EMS. Deaconess Regional Healthcare Services Illinois, Inc. acquired Heartland Regional Medical Center (now Deaconess Illinois 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 Organization provides health care services to patients who meet certain criteria under its charity care policy without charge or at amounts less than established rates. Since the Organization does not pursue collection of these amounts, they are not reported as patient service revenue. The estimated cost of providing these services was approximately $505,000 for the year ended September 30, 2024, calculated by multiplying the ratio of cost to gross charges for the Organization by the gross uncompensated charges associated with providing charity care to its patients. 1529675 1419700 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. 102310938 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 66 0 1 469 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 7 0 1 0 0 0 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 IL X William Davis 6189987021 3333 W Deyoung Marion IL 62959 X Marc J Florence President 1.00 3.00 X X 0 0 0 Stever Titzer Chairperson 1.00 3.00 X X 0 0 0 Glenn Clarida Vice Chairperson 1.00 3.00 X X 0 0 0 Gene Morris Secretary 1.00 3.00 X X 0 0 0 Tony Wielt Treasurer 1.00 3.00 X X 0 0 0 Jeff Justice Director 1.00 3.00 X 0 0 0 Lynn C Lingafelter Director 1.00 3.00 X 0 0 0 William Davis Illinois Region President 10.00 30.00 X 0 0 0 Amber Lipe CFO 10.00 30.00 X 0 0 0 Dana Dalton CNO 40.00 0.00 X 0 0 0 Kristin Brooks-Shrum-Regional Dir of Pharmacy & Cardio/Pulmonary 25.00 15.00 X 157868 0 35311 Linda A Bell House Supervisor RN 40.00 0.00 X 146951 0 4316 Reva Weems-Regional Director of Human Resources 25.00 15.00 X 142942 0 26568 Karon F Waggoner Emergency Room RN 40.00 0.00 X 136375 0 23275 Elizabeth Owens Pharmacy Manager 40.00 0.00 X 126967 0 20095 Jacob Ivey Pharmacy Supervisor 40.00 0.00 X 125053 0 38657 836156 0 148222 14 0 1 0 Deaconess Health System 600 Mary St Evansville IN 47710 Administrative and management 19619003 G&G Anesthesia LLC 2023 Vadalabene Drive Suite 350 Maryville IL 62062 Provide Anesthesia Services 2324014 Total MSP LLC 221 W College Ave 2nd Floor Appleton WI 54911 Contract Nursing & Ancillary Labor 1972759 HHS Environmental Services LLC 12495 Silver Creek Rd Dripping Springs TX 78620 EVS Contracted Services 1481076 HHS Culinary and Nutrition Solutions LLC 12495 Silver Creek Rd Dripping Springs TX 78620 Cafeteria/Dietary Services 779051 16 Patient Service Revenue 621110 125880344 125880344 Patient Transport Revenue 621910 4197891 4197891 Affiliate sublease 900099 3039430 3039430 Cafeteria Revenue 621500 178397 178397 10833 10833 133306895 15412 15412 133322307 133306895 0 15412 X 273037 273037 25621611 24217239 1404372 485759 453895 31864 4080997 3833887 247110 1995408 1859021 136387 22458935 22458935 244832 244832 24114397 4833054 19281343 119081 9878 109203 2014416 1008964 1005452 439330 247105 192225 1237093 1087119 149974 122413 92961 29452 111061 76649 34412 8459886 7613897 845989 10693030 9302936 1390094 525807 477713 48094 Medical Supplies 14139561 14130275 9286 Other Taxes & Licenses 9419426 8401208 1018218 Repairs & Maintenance 2094994 1871437 223557 Memberships & Dues 161424 111203 50221 327196 223562 103634 129139694 102310938 26828756 0 3923978 13911471 27505171 36446385 355623 3216052 3233086 1643054 873507 11521118 3074679 8405100 8446439 215651818 188487267 260700796 251398155 16545490 11248217 219880743 213692762 236426233 224940979 X 24274563 26457176 24274563 26457176 260700796 251398155 X 4182613 -2000000 0 X 0 1 X 1 0 X 64678 64678 1857783 3229072 4425830 85804936 133306895 228624516 1922461 3229072 4425830 85804936 133306895 228689194 0 0 0 228689194 331 771 5411 5957 15412 27882 331 771 5411 5957 15412 27882 1298769 1298769 1922792 3229843 5730010 85810893 133322307 230015845 0.99420 0.98670 0.00010 0.00010 X 34482 34482 163483 55857 107626 11074924 3018822 8056102 248229 248229 8446439 Estimated Third Party Payor Settlem 6658437 Affiliate Receivables 31838474 Operating Lease ROU asset 1919399 Finance Lease ROU asset 148070957 188487267 Due to related parties 52900517 Estimated health claims liability 300000 Estimated Third Party Payor Settlements 6478226 Finance Lease Liabilities 152003985 Due to Deaconess Health Systems 74393 Operating Lease Liability 1935641 213692762 X 133322307 0 133322307 0 133322307 129139694 0 129139694 0 129139694 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 505000 505000 0.00390 25962828 10112892 15849936 0.12270 26467828 10112892 16354936 0.12660 26467828 10112892 16354936 0.12660 1 9134649 1461544 18286024 27968705 -9682681 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 1 1 1 X X X X X X X X X 23 1 0 0 1 X www.deaconessillinoismedicalcenter.com X 1 23 1 www.deaconessillinoismedicalcenter.com 0 1 X 200.000000000000 350.000000000000 X X X X X 1 1 X 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 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 is a new legal entity, incorporated October 3, 2022. The IRS granted tax exempt status as of October 3, 2022. The hospital was acquired by this entity and operations began January 14, 2023. Prior to that date, the hospital was owned and operated by a governmental entity. Heartland Regional Medical Center Part V, Section B, Line 5: Deaconess Regional Healthcare Services Illinois engaged in a consulting partnership with ICAHN (Illinois Critical Access Hospital Network) to complete the community health needs assessment. Two focus groups met to discuss overall health and wellness in our service area. Members of the focus groups included representatives of healthcare providers, community leaders, community services providers, schools, faith-based organizations, local elected officials, public health, and others. Heartland Regional Medical Center Part V, Section B, Line 11: A community health needs assessment was completed in fiscal year 2024, therefore no current year actions were taken. The following are the needs identified that will be addressed over the next three year. Access to Care Community Collaboration Health Education1. ACCESS TO CARE: Improve access to care by continuing to recruit and retain providers for specialty care clinics, mental health provision, and substance abuse treatment/services.Actions the hospital intends to take to address the health need: Evaluate the primary and specialty care services needed in the community. Potentially recruit or provide those services through Deaconess Health partnerships. Evaluate the mental and substance abuse services provided in the community and the need for additional providers/services. Work with community partners and Deaconess Health to ensure gaps are filled as possible. Work with current providers in the service market area to retain their services to Deaconess Illinois Medical Center and the community. Evaluate internal processes within Deaconess Illinois Medical Center to ensure the best customer experience. 2. COMMUNITY COLLABORATION: Improve community coordination by developing and maximizing health service partnerships.Actions the hospital intends to take to address the health need: Support and participate in the inner agency group meeting in the community (if one exists) or develop this group to ensure agencies understand what each does and the priorities they are working on. This will potentially reduce duplication of services and allow more agency collaboration. Investigate developing or renovating a resource guide to assist agencies and patients/residents in finding needed resources. Support local agencies that address food insecurity, such as local food pantries. Investigate budgeting dollars for this and leverage social media channels to raise awareness of these agencies and solicit potential donors. Develop charity care policy education for the community and share with providers.3. HEALTH EDUCATION: Improve the community's overall health education through health promotion screenings and events in chronic disease management, cancer screenings, and health education.Actions the hospital intends to take to address the health need Review patient educational documents to ensure understandable explanations of the patient's condition, care, and treatment. Educate nursing staff to reinforce the importance of this additional education with patients. Health fair in the community. Investigate a partnership with local schools utilizing employees to educate students on the benefits of diet and exercise, strategies to improve their physical and mental health, chronic diseases and management, and exposure to health careers and job opportunities at Deaconess Illinois Medical Center. Increase free or low-cost cancer screenings in the community. Rebranding of the facility in the community to improve awareness of services and the changes that are being made as a part of Deaconess Health System. Smoking cessation program (partnership with health department?) Create low-cost/free exercise programs (walking paths, challenges,etc.) Radiology lung cancer screenings Focus on Medicare Annual Wellness Exam Completion Focus on women's prevention services completion 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 16% 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 Note 3 on page 11 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 Hospital seeks out patients that may qualify for finanical assistance. Interviews are conducted on self-pay patients while they are at the Hospital. 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. Well Fund is available to patients to assist with applying for Medicaid or exchange products. Part VI, Line 4: Heartland Regional Medical Center is a 107-bed acute care hospital located in Marion, Illinois. The Hospital provides health care services in accordance with a Shared Services Agreement with Transcare. The Hospital provides inpatient, outpatient, and emergency care services for residents of southern Illinois.16% of the population for whom poverty status is determined in Marion, IL (2.6k out of 16.3k people) live below the poverty line, a number that is higher than the national average of 12.4%. Between 2022 and 2023, the percent of uninsured citizens in Marion, IL grew by 3.91% from 6.89% to 7.16%.In 2023, the median household income of the 7.98k households in Marion, IL grew to $57,281 from the previous year's value of $54,052.From 2022 to 2023, employment in Marion, IL declined at a rate of 1.55%, from 7.51k employees to 7.39k employees. The most common job groups, by number of people living in Marion, IL, are Management Occupations, Sales & Related Occupations, and Food Preparation & Serving Related Occupations. 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. 0 0 0 0 0 0 0 0 0 Kristin Brooks-Shrum-Regional Dir of Pharmacy & Cardio/Pulmonary 157868 0 0 0 0 0 5420 0 34944 0 198232 0 0 0 Reva Weems-Regional Director of Human Resources 142942 0 0 0 0 0 5382 0 26882 0 175206 0 0 0 Jacob Ivey Pharmacy Supervisor 125053 0 0 0 0 0 9217 0 29458 0 163728 0 0 0 Karon F Waggoner Emergency Room RN 136375 0 0 0 0 0 2089 0 21210 0 159674 0 0 0 Linda A Bell House Supervisor RN 146951 0 0 0 0 0 4316 0 44 0 151311 0 0 0 Part I, Line 3 William Davis, Illinois Region President, is compensated by Deaconess Health System, an unrelated organization, through a management agreement for services to the Hospital and related entities. Deaconess Health System uses some of the processes described in Part I, Question 3 to determine compensation, including comparability data and an independent compensation consultant. Compensation approval is done by the Board of Directors or Compensation Committee of Deaconess Health System. Form 990, Part VI, Section A, line 3 William Davis, Illinois Region President, Amber Lipe, CFO, and Dana Dalton are employed by Deaconess Health System, an unrelated organization. Compensation is provided by Deaconess Health System through a management agreement for services to Deaconess Illinois Red Bud Regional Hospital, Deaconess Illinois Union County Hospital, Deaconess Illinois Crossroads, and Deaconess Regional Healthcare Services Illinois. All four are related entities. The Illinois Region President position has the responsibility of supervising the management, administration, and operation of the organizations. The CFO has the responsibility for managing the financial operations of the organizations. The CNO oversees and leads the nursing and patient care services. Calendar year 2023 compensation and benefits is provided below. Compensation Benefits William Davis 323,636 21,697 Amber Lipe 329,969 1,007 Dana Dalton 261,825 22,186 Form 990, Part VI, Section A, line 7a Deaconess Health System, Inc. has authority to appoint and remove two Directors. Form 990, Part VI, Section A, line 7b 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 and CFO 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 2,381,043. Management and general expenses 19,279,045. Fundraising expenses 0. Total expenses 21,660,088. Medical Professional Fees: Program service expenses 2,452,011. Management and general expenses 2,298. Fundraising expenses 0. Total expenses 2,454,309. Form 990, Part XI, Line 8: During 2024, the Organization identified misstatements within the 2023 financial statements related to the recognition of the forgiveness of a portion of the note payable and recognition of the contribution received by the reduction of the note payable in the amount of $2,000,000. Transcare Medical Transport and Logistics LLC 3333 W Deyoung Marion IL 62959 810932015 Medical transport and ambulance service IL 1420541 670649 Deaconess Regional Healthcare Services Illinois 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 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 Deaconess Illinois Crossroads J 2935000 General ledger