2020-11-15T14:59:06-06:00 2019-12-31 ERNST & YOUNG US LLP 155 WACKER DR CHICAGO IL 60606 990 2019-01-01 351536129 Beacon Health Foundation Inc % JEFFREY COSTELLO BEAC 5746473549 615 N Michigan Street South Bend IN 46601 JEFFREY COSTELLO CFO 5746473549 2020-11-13 true JACOB J ZEHNDER P01564049 3128792702 2019 2022-09-23 18:48:47Z Kreg Gruber 615 N Michigan Street South Bend IN 46601 4315020 false X beaconhealthsystem.org X 1982 IN SEE MISSION STATED IN PART III, LINE 1 11 11 0 0 -4726 -4765 1398222 2668870 0 0 675950 687996 46542 31552 2120714 3388418 2214721 1706441 0 0 0 845285 0 0 827582 1530193 449269 3744914 3000995 -1624200 387423 30957661 35036117 28176 257515 30929485 34778602 X BEACON'S MISSION IS TO ENHANCE THE PHYSICAL, MENTAL, EMOTIONAL & SPIRITUAL WELL-BEING OF THE COMMUNITIES WE SERVE AS THE COMMUNITY'S PROVIDER OF OUTSTANDING QUALITY, SUPERIOR VALUES AND COMPREHENSIVE HEALTH CARE SERVICES. true false 1706441 1706441 31552 Beacon Health Foundation's mission is to support the work of Beacon Health System by inspiring generosity and commitment to our cause. BHF exists to allow people to generously support Beacon in a way that connects them with the impact they are having on our work in the community. Beacon Health Foundation works to support Beacon Health System in three key ways: . Creating relationships . Inspiring investment . Stewarding resources Creating Relationships Beacon Health Foundation (BHF) raises funds for Beacon Health System. Our job is to ensure that charitable support for Beacon is used to create the most significant impact possible in a way that is most meaningful to each donor. We build relationships with those who want to make a difference and connect them with a cause within our system that inspires them. Our health system is reliant on the support of our community to ensure that we are always able to provide the highest quality services for every patient. Inspiring Investment: In 2019, fund raising at Beacon Health Foundation focused upon the following areas: . Corporate Fundraising . Grant Writing, focusing on private, corporate, and family foundations . Online Giving . Major gift fundraising . Direct Mail Fundraising Funds available at BHF to support Memorial's mission as of December 31, 2019: Memorial Hospital & Health System $ 3,081,374 Beacon Children's Hospital $ 2,480,952 Elkhart General Hospital $ 196,070 Stewarding Resources In 2019, funds from Beacon Health Foundation went to support the following areas at Beacon: Beacon Health System Associate Emergency Assistance $10,060.00 Community Impact $269,776.99 Education $41,189.06 Sunburst $10,800.00 System Priorities $4,171.51 System Priorities (GEM Jackets) $88,449.97 Elkhart General Hospital Capital Projects $70,562.81 Education $13,966.62 Patient Care Equipment $19,390.38 Patient Support $21,192.35 System Priorities $17,251.44 Memorial Hospital of South Bend Cancer Research $4,000.00 Education $127,223.28 Support Programs $3,303.92 System Priorities $7,217.07 Beacon Children's Hospital Art & Music Therapy $52,070.23 Capital Projects $775,520.87 Child Life $177,305.66 NICU $8,472.98 Pediatric Cancer $1,212.83 System Priorities $16,689.70 Total 2019 Distributions $1,740,358.67 1706441 true true false false false false false false false true true true false false true true false true false false true false false false false false false true true true false false false false false false false false true false false false false true true true false false true X 0 0 0 false false false false false true true false false false false false false X 11 11 false false true false true true true true true false false true true true true true true false false false IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Kreg Gruber CEO 2.0 48.0 X 0 1670567 0 Jeffrey P Costello CFO/Asst. Treasurer 2.0 48.0 X 0 1208925 0 Susan King Foundation President 40.0 2.0 X 0 292811 0 Kellie Porter Officer thru 2017 0.0 40.0 X 0 106154 0 Diane Krill Chair 2.0 0.0 X X 0 1556 0 Kurtis A Janowsky Secretary 2.0 0.0 X X 0 1029 0 Joseph M Hart Director 2.0 0.0 X 0 948 0 Jacqueline Barton Director 2.0 0.0 X 0 948 0 Tom Shoff Director 2.0 0.0 X 0 948 0 Scott Brewer Director 2.0 0.0 X 0 948 0 James Sawdon Director 2.0 0.0 X 0 711 0 Paul Phair Director 2.0 0.0 X 0 632 0 Brad Beutter Vice Chair 2.0 0.0 X X 0 0 0 Art Decio Director 2.0 0.0 X 0 0 0 Todd Schurz Chair thru 3/2019 2.0 0.0 X X 0 0 0 Carl Tiedemann Director 2.0 0.0 X 0 0 0 0 3286177 0 0 true true false 0 2668870 87690 2668870 0 521359 -4726 526085 0 0 0 0 0 1093239 926602 166637 166637 166637 0 0 0 0 0 0 0 0 0 OTHER INCOME 561000 31552 31552 31552 3388418 31552 -4726 692722 1625818 1625818 80623 80623 0 0 0 0 684786 280762 404024 0 124774 51157 73617 35725 14647 21078 0 0 576 576 0 0 0 68216 38390 29826 187 187 6883 3068 3815 130 130 0 22057 9043 13014 8105 4828 3277 0 3775 0 0 11926 11926 14804 14804 CORPORATE ALLOCATION 217566 89202 128364 DUES/SUBSCRIPTIONS 72453 29706 42747 CULTIVATION 22591 22591 142717 59902 82815 3143712 1706441 609689 827582 0 0 2732472 3805906 1332152 594493 0 0 0 0 0 0 0 0 0 0 0 0 256900 168215 99290 88685 18392276 21486636 8401471 9048251 0 0 0 0 0 12146 30957661 35036117 26304 637 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1872 256878 28176 257515 X 25096521 27800965 5832964 6977637 30929485 34778602 30957661 35036117 X 244706 3295484 308927 X false true X true false X 4131246 3875821 2004614 1398222 2668870 14078773 0 0 4131246 3875821 2004614 1398222 2668870 14078773 2620417 11458356 394867 400447 459657 522839 521359 2299169 16 16 0 16377958 84547 0.69962 0.68583 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 30834712 2588248 3242314 1740359 34924915 34205140 1352757 -2479196 2243989 30834712 33854961 2155261 2479263 4284345 34205140 26556022 9605449 339397 2645907 33854961 29619029 4093832 -1367472 5789367 26556022 0.80030 0.00210 0.19760 false false 93974 11745 82229 162926 156470 6456 88685 ALTERNATIVE INVESTMENTS 9048251 F 9048251 0 DUE TO AFFILIATES_BHS 256878 256878 X SCH. D, 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. SCH. D, 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 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, 2019 or 2018. Central America and the Caribbean Investments 6894769 6894769 6894769 true false true false false false true Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(c)(3) 1321013 To support hospital operations and capital purchases Beacon Medical Group Inc 615 N Michigan Street South Bend IN 46601 351536132 501(c)(3) 28743 To support BMG operations and capital purchases Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 501(c)(3) 133563 To support scholarships and health system Elkhart General Hospital 615 N Michigan Street South Bend IN 46601 350877574 501(c)(3) 142499 To support home care operations and capital purchases 4 0 Grants for Children 4234 80623 FMV Toys, blankets, etc. SCH. I, 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. SCH. I, 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 2019. 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. false true false false false false false Jeffrey P Costello CFO/Asst. Treasurer 0 536899 0 213297 0 458729 0 112590 0 19085 0 1340600 0 380118 Susan King Foundation President 0 207684 0 77295 0 7832 0 47465 0 28138 0 368414 0 0 Kreg Gruber CEO 0 792493 0 435000 0 443074 0 172991 0 30982 0 1874540 0 377156 Kellie Porter Officer thru 2017 0 82144 0 0 0 24010 0 1643 0 9512 0 117309 0 22434 PART I, LINE 3 - COMPENSATION REVIEW PROCESS 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 - EXECUTIVE RETENTION 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 INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2019, REFLECTED IN COLUMN (B)(III): . KREG GRUBER, $106,338 . JEFFREY COSTELLO, $ 99,427 . KELLIE PORTER, $ 24,010 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2019 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . KREG GRUBER, $ 161,791 . JEFFREY COSTELLO, $ 101,390 . SUSAN KING, $ 38,794 BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE LONGEVITY BONUS PLAN FOR THE PURPOSE OF PROVIDING A LONGEVITY BONUS FOR ITS' DESIGNATED EXECUTIVES. THIS UNFUNDED PLAN WAS EFFECTIVE APRIL 1, 2014. THE PARTICIPANTS MUST REMAIN IN AN ACTIVE EMPLOYMENT STATUS WITH BEACON FOR A PERIOD OF 5 CONSECUTIVE YEARS FROM THE EFFECTIVE DATE TO BE ELIGIBLE TO RECEIVE THE FULL LONGEVITY BONUS AMOUNT AT WHICH TIME VESTING IS 100%. VESTING PRIOR TO THE 5 YEARS IS AT 0%. THE MAXIMUM BONUS AWARD AT 100% VESTING IS $325,000. THE FOLLOWING INDIVIDUALS EARNED THESE AMOUNTS IN 2019 TOWARDS THE LONGEVITY BONUS PLAN: . KREG GRUBER, $16,250 . JEFFREY COSTELLO, $16,250 THE LONGEVITY BONUS PLAN BECAME FULLY VESTED IN 2019 AND WAS PAID OUT TO THE FOLLOWING INDIVIDUALS, REFLECTED IN COLUMN (B)(III). . KREG GRUBER, $325,000 . JEFFREY COSTELLO, $325,000 X 43258 Cost Donated Propert X 14 7067 Cost Donated Propert X Toys, electronics, etc. 11901 35842 Cost Donated Propert X Gift Cards, Coupons, etc. 6 1523 Cost Donated Propert false false false SCHEDULE M, PART I For 2019, the quantity method in Column B varies depending on the type of property: -Gift Cards, Coupons, etc. uses the number of items received -Toys, stuffed animals, electronics uses the number of contributions -Clothing and Household Goods uses the number of items received 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. Sch. O Disclosures, CORE FORM CORE FORM, PART III, LINE 2 ON 1/14/2019 BREMEN FOUNDATION MERGED WITH BEACON HEALTH FOUNDATION, INC. CORE FORM, PART V, QUESTION 1A & 2A 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. CORE FORM, PART VI, SECTION A, QUESTION 4 BEACON HEALTH FOUNDATION, INC. UPDATED THEIR CORPORATE BYLAWS IN 2019 TO ALIGN THE AFFILIATE ENTITIES BYLAWS WITH THE PARENT COMPANY, BEACON HEALTH SYSTEM. CHANGES INCLUDED: 1. THE TREASURER OFFICER POSITION WAS ELIMINATED 2. TERM LIMITS FOR DIRECTORS WAS INCREASED FROM TWO TERMS TO THREE CONSECTUIVE TERMS 3. THE ATTENDANCE POLICY WAS UPDATED TO REQUIRE DIRECTORS TO ATTEND AT LEAST 75% OF BOARD MEETINGS (UPDATED FROM 50%) CORE FORM, PART VI, SECTION A, QUESTION 6 BEACON HEALTH SYSTEM, INC. IS THE SOLE CORPORATE MEMBER OF BEACON HEALTH FOUNDATION, INC. CORE FORM, PART VI, SECTION A, QUESTION 7A THE CORPORATE MEMBER SHALL APPOINT THE BOARD OF DIRECTORS OF THE CORPORATION AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF THE CORPORATION. CORE FORM, PART VI, SECTION A, QUESTION 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 ORGANIZATION'S GOVERNING BOARD. THE PROCESS OF APPOINTMENT AND REMOVAL OF THE BOARD OF THE HOSPITALS SHALL BE AS SET FORTH IN THE HOSPITALS' RESPECTIVE BYLAWS. - 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. CORE FORM, 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 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. CORE FORM, 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. IN THE CURRENT YEAR WE SENT OUT OVER 356 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 24, 2020 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2020, 20 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. CORE FORM, PART VI, SECTION B, LINE 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF BEACON HEALTH FOUNDATION CONDUCTS THE REVIEW OF ALL COMPENSATION. 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 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. CORE FORM, 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. QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR THE BEACON HEALTH SYSTEM, INC. BONDS. CORE FORM, PART XI, LINE 9 Other Changes in the net assets of Fund Balances: CHANGE IN GRUBE TRUST 168,865 CHANGE IN TEMP REST INVESTMENTS 127,920 NET ASSET RECLASSIFICATION 12,142 Total $308,927 Beacon Medical Group Inc 615 N Michigan St South Bend IN 46601 351536132 Phy Practices IN 501(c)(3) 10 BHS true Memorial Hospital of South Bend Inc 615 N Michigan St South Bend IN 46601 350868132 Hospital IN 501(c)(3) 3 BHS true ELKHART GENERAL HOSPITAL INC 600 EAST BOULEVARD ELKHART IN 46514 350877574 HOSPITAL IN 501(c)(3) 3 BHS true BEACON HEALTH SYSTEM INC 615 N MICHIGAN ST SOUTH BEND IN 46601 453864076 Parent Org IN 501(c)(3) 12A NA false MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(c)(3) 12D MHSB true COMMUNITY HOSPITAL OF BREMEN INC 1020 HIGH ROAD BREMEN IN 46506 350835006 HOSPITAL IN 501(c)(3) 3 BHS true COMMUNITY HOSPITAL OF BREMAN FOUNDATION 1020 HIGH RD BREMEN IN 46506 351813755 FINANCIAL SUP IN 501(C)(3) LINE 12B,II BHS true Beacon Health Ventures Inc 615 N Michigan St South Bend IN 46601 351901068 Home Medical IN NA C Beacon Health Ventures Michigan Inc 615 N Michigan St South Bend IN 46601 208259773 HOME MEDICAL MI NA C false true false false false false false false false false true false true true true true true true true Memorial Hospital of South Bend Inc B 1321013 ACTUAL CHARGES Elkhart General Hospital B 142499 ACTUAL CHARGES