2019-11-10T18:42:58-06:00 2018-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2018-01-01 453864076 Beacon Health System Inc % JEFFREY COSTELLO BEAC 5746473549 615 N MICHIGAN ST SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 5746473549 2019-11-07 true JACOB J ZEHNDER P01564049 3128792702 24.13.63.122 36964520193145000001 2019-11-10 P 99A1469C90747B62D1CAFFB84BB838A68B069B24 3D6D3C2D4C8BC107A1740E261440CB51ACA7B417 2018 2020-03-31 21:24:44Z Kreg Gruber 615 N MICHIGAN ST SOUTH BEND IN 46601 211786923 false X BEACONHEALTHSYSTEM.ORG X 2011 IN BEACON HEALTH SYSTEM, INC. IS COMMITTED TO ENHANCING THE PHYSICAL, MENTAL, EMOTIONAL AND SPIRITUAL WELL-BEING OF THE COMMUNITIES WE SERVE. 14 12 511 12 2037934 1051711 345901 80386693 87288863 15229299 37812075 3083571 3623681 99751274 129070520 758353 569055 0 0 40825765 45360753 0 0 0 46401660 51319265 87985778 97249073 11765496 31821447 827559183 855494752 66859444 101247345 760699739 754247407 X BEACON HEALTH SYSTEM, INC. IS COMMITTED TO ENHANCING THE PHYSICAL, MENTAL, EMOTIONAL AND SPIRITUAL WELL-BEING OF THE COMMUNITIES WE SERVE AS THE COMMUNITY'S PROVIDER OF OUTSTANDING QUALITY, SUPERIOR VALUE AND COMPREHENSIVE HEALTH CARE SERVICES. true false 96305084 569055 88999332 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., 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. 96305084 true true false true 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 true false false false false false false false false true false false false false false true true true true false false true 205 0 true 511 true true true false false false false false false false false false true false X 14 12 true false false false false true 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 X WALTER HALLORAN MD DIRECTOR 2.0 40.0 X 0 1277457 31421 LARRY D HARDING DIRECTOR 2.0 0.0 X 1983 0 0 DANIEL A MORRISON TREASURER 2.0 0.0 X X 0 0 0 VIVIAN SALLIE DIRECTOR 2.0 0.0 X 1897 0 0 J SCOTT TROEGER DIRECTOR 2.0 0.0 X 1643 0 0 DAVID VAN RYN MD Director (Left 03/31/18) 2.0 10.0 X 0 31578 0 BIPIN DOSHI Chair 2.0 0.0 X X 0 0 0 DONALD ANDERSON Secretary 2.0 0.0 X X 0 0 0 RON FENECH DIRECTOR (LEFT IN MARCH 2018) 2.0 0.0 X 0 0 0 JESSE HSIEH MD VICE CHAIR 2.0 0.0 X X 1370 0 0 JOHN MARTIN DIRECTOR 2.0 0.0 X 0 0 0 TOM CASSADY JR DIRECTOR 2.0 0.0 X 2602 0 0 TRACY GRAHAM DIRECTOR 2.0 0.0 X 7151 0 0 THOMAS BURISH Director 2.0 0.0 X 2270 0 0 AMISH SHAH DIRECTOR 2.0 2.0 X 1520 0 0 SAMIR PATEL MD DIRECTOR 2.0 2.0 X 0 0 0 PHILIP A NEWBOLD CEO (Left 10/31/17) 2.0 0.0 X 619376 0 15351 JEFFREY P COSTELLO CFO 40.0 10.0 X 773461 0 184073 MICHAEL O'NEIL CAO (Left 02/01/2018) 0.0 0.0 X 691700 0 15686 KREG GRUBER CEO 40.0 10.0 X 1099330 0 235802 STEVEN ELLER Cheif Human Resource Officer 40.0 0.0 X 414031 0 74276 DIANE MAAS Chief Bus Dev & Plan Officer 40.0 0.0 X 418723 0 75729 MARK WARLICK Chief Information Officer 40.0 0.0 X 415512 0 89655 SCOTT ESHOWSKY Medical Information Officer 40.0 0.0 X 341352 68328 32821 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 40.0 0.0 X 344616 0 76343 5138537 1377363 831157 61 false true false Cerner Corporation 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 IS Sftwr Maintenance 9442461 PANZICA2 A JOINT VENTURE 739 BETA DRIVE MAYFIELD VILLAGE OH 44143 CONTRACTING SERVICE 1782185 MAYO CLINIC 200 FIRST STREET SW ROCHESTER MN 559050002 SUBSCRIPTION FEE 1338333 CHANGE HEALTHCARE 5995 WINWARD PARKWAY ALPHARETTA GA 30005 EQUIP. MAINTENANCE 1328673 SP CONSULTING INC 15 BAINTREE HILL OFFICE PARK SUITE BRAINTREE MA 02184 SOFTWARE MAINTENANCE 3142066 91 345901 345901 MANAGEMENT ADMIN SERVICES 561499 71578334 70339058 1239276 NET PATIENT SERVICE REVENUE 621110 9145639 9145639 AFFILIATE RENT 532000 2826827 2826827 JOINT VENTURE ACTIVITY 621110 3738063 3096546 641517 87288863 12904059 -652722 13556781 0 0 1206753 20362 1186391 0 1186391 1175063 107459432 144625 82696041 0 24763391 144625 24908016 0 24908016 0 0 0 0 0 0 0 0 0 MANAGED CARE ACTIVITIES 621300 754937 57776 697161 LANGUAGE SERVICES 561499 57051 57051 CHA INFORMATION SUPPORT SYSTEM FEES 561499 27012 27012 1598290 1569651 28639 2437290 129070520 87035497 2037934 39639860 X 15250 15250 553805 553805 0 0 3655214 3655214 0 0 0 0 29630316 29630316 744014 744014 8957722 8957722 2373487 2373487 0 0 928173 0 928173 15816 0 15816 19295 19295 0 106592 106592 32587983 32587983 1303368 1303368 2940885 2940885 177302 177302 0 0 1571620 1571620 394532 394532 0 0 102467 102467 61707 61707 0 0 4920231 4920231 399247 399247 GENERAL DUES & SUBSCRIPTIONS 2554828 2554828 RECRUITMENT 524716 524716 SUPPLIES 348449 348449 SIGNAGE 2879 2879 2359175 2359175 97249073 96305084 943989 0 2019 2041 21687315 13681100 0 0 1299635 989107 0 0 0 0 0 0 0 0 12653583 10218531 91056864 34622834 42096816 56434030 527688219 463273359 200334486 270947307 17823997 32025532 103840 103840 3869273 7819905 827559183 855494752 14740971 14069602 0 0 0 0 49529040 84220886 0 0 0 0 0 0 0 0 2589433 2956857 66859444 101247345 X 760699739 754247407 0 0 0 0 760699739 754247407 827559183 855494752 X 31821447 -57526163 19252384 X false true X true false X X X 4 BEACON MEDICAL GROUP INC 351536132 10 true 24335752 2516022 ELKHART GENERAL HOSPITAL INC 350877574 3 true 3717497 0 MEMORIAL HOSPITAL OF SOUTH BEND INC 350868132 3 true 40182624 0 BEACON HEALTH FOUNDATION 351536129 7 true 27490 23410 4 68263363 2539432 false false false false false true false false false false false false false false false true true SCHEDULE A, PART I, LINE 12e BEACON HEALTH SYSTEM, INC. RECEIVED A WRITTEN DETERMINATION LETTER THAT IT IS A TYPE III, FUNCTIONALLY INTEGRATED SUPPORTING ORGANIZATION, HOWEVER, THE CONTROL PROVISIONS IN ITS BYLAWS FIT THE TECHNICAL REQUIREMENTS FOR A TYPE I SUPPORTING ORGANIZATION, AS INDICATED IN PART IV OF THIS SCHEDULE, THUS BEACON HEALTH SYSTEM IS CURRENTLY REPORTING AS A TYPE I SUPPORTING ORGANIZATION. SCHEDULE A, PART IV, SECTION A, LINE 1 BEACON HEALTH SYSTEM'S 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"), AND ALL OTHER RESPECTIVE AFFILIATES, WHICH INCLUDES MEMORIAL HOSPITAL OF SOUTH BEND ("MHSB"). EGH, BMG, AND MHSB ARE SPECIFICALLY DESIGNATED BY NAME, AND BEACON HEALTH FOUNDATION IS DESIGNATED BY CLASS, AS IT IS A RESPECTIVE AFFILIATE WITH BEACON HEALTH SYSTEM AS ITS SOLE MEMBER. SCHEDULE A, PART IV, QUESTION 6 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 2018 TO DIRECT ALL GRANTS THROUGH ITS AFFILIATED FOUNDATION AND HOSPITAL ORGANIZATIONS. SCHEDULE A, PART IV, SECTION B, LINE 2 BEACON HEALTH SYSTEM IS CONTROLLED BY ITS AFFILITATED HOSPITALS, ELKHART GENERAL HOSPITAL AND MEMORIAL HOSPITAL OF SOUTH BEND. SEE THE DISCLOSURE IN SCHEDULE O FOR THE CORE FORM 990, PART VI, SECTION A, LINE 7a. CONSISTENT WITH ITS EXEMPT PURPOSES AS STATED IN ITS ARTICLES OF INCORPORATION, BEACON HEALTH SYSTEM ALSO SUPPORTED OTHER AFFILIATES WITHIN THE INTEGRATED REGIONAL HEALTH CARE SYSTEM, INCLUDING BEACON MEDICAL GROUP AND BEACON HEALTH FOUNDATION, WHICH DID NOT SHARE IN THE CONTROL OF BEACON HEALTH SYSTEM. BEACON HEALTH FOUNDATION PROVIDES FUNDRAISING AND ENDOWMENT SUPPORT TO BOTH HOSPITALS. BEACON MEDICAL GROUP PROVIDES SUPPORT THROUGH THE OPERATION OF PHYSICIAN PRACTICES. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 19925 19925 false false Other Activities Part II-B 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. 34205140 1352757 -2479196 2243989 30834712 33854961 2155261 2479263 4284345 34205140 26556022 9605449 339397 2645907 33854961 29619029 4093832 -1367472 5789367 26556022 27642755 2833644 -142883 714487 29619029 0.81090 0.00240 0.18670 false true true 23248388 23248388 4368806 1841252 2527554 229492 151578 77914 48063057 32630004 15433053 15147121 15147121 56434030 ALTERNATIVE INVESTMENTS 270947307 F 270947307 0 DEFERRED LIABILITY EXEC SERP 2956857 2956857 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 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. SCH D, PART X, Line II 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, 2018 OR 2017. Central America and the Caribbean 0 0 Investments 84710535 Europe (Including Iceland and Greenland) 0 0 Investments 9910139 0 0 0 0 94620674 94620674 true false true true true false true Foundation for the Center for Hospice 501 Comfort Pl Mishawaka IN 46545 300433147 501(C)(3) 10000 0 CASH General Support 1 0 SCHOLARSHIPS/TUITION REIMBURSEMENT 445 553805 SCHEDULE I, PART I LINE 2 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. SCHEDULE I, PART II CHARITABLE DONATIONS PART OF THE ORGANIZATION'S MISSION IS TO IMPROVE THE HEALTH OF OUR COMMUNITY. IN ORDER TO FULFILL THIS GOAL, OUR ADMINISTRATORS HAVE THE ABILITY TO MAKE DONATIONS TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL BEING OF OUR COMMUNITY. 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. X X X true true X X X X X true true false false false false false true false WALTER HALLORAN MD DIRECTOR 0 1251587 0 20800 0 5070 0 11000 0 20421 0 1308878 0 0 PHILIP A NEWBOLD CEO (Left 10/31/17) 218903 0 200000 0 200473 0 11000 0 4351 0 634727 0 197121 0 JEFFREY P COSTELLO CFO 494865 0 161286 0 117310 0 164827 0 19246 0 957534 0 73501 0 MICHAEL O'NEIL CAO (Left 02/01/2018) 30562 0 0 0 661138 0 3561 0 12125 0 707386 0 470186 0 KREG GRUBER CEO 736877 0 260000 0 102453 0 207845 0 27957 0 1335132 0 75198 0 STEVEN ELLER Cheif Human Resource Officer 307789 0 71957 0 34285 0 63264 0 11012 0 488307 0 24990 0 DIANE MAAS Chief Bus Dev & Plan Officer 301539 0 71340 0 45844 0 61240 0 14489 0 494452 0 32243 0 MARK WARLICK Chief Information Officer 325226 0 77520 0 12766 0 66084 0 23571 0 505167 0 0 0 SCOTT ESHOWSKY Medical Information Officer 294277 0 46175 68328 900 0 11000 0 21821 0 374173 68328 0 0 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 270504 0 65521 0 8591 0 56683 0 19660 0 420959 0 0 0 PART I, LINE 1A BEACON HEALTH SYSTEM, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR HEALTH CLUB MEMBERSHIP, WITH BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER AND FOR SPOUSAL TRAVEL. BEACON HEALTH SYSTEM ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: J. SCOTT TROEGER, TRACY GRAHAM, AND THOMAS BURISH. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: VIVIAN SALLIE, LARRY HARDING, JESSE HSIEH, MD, TOM CASSADY, JR, TRACY GRAHAM, AND AMISH SHAH. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: VIVIAN SALLIE, LARRY HARDING, JESSE HSIEH, MD, TOM CASSADY, JR, TRACY GRAHAM, AND AMISH SHAH. PART I, LINE 4A MICHAEL O'NEIL SERVED AS THE CHIEF ADMINISTRATIVE OFFICER FOR BEACON HEALTH SYSTEM. THIS POSITION WAS ELIMINATED ON 2/1/18 RESULTING IN A ONE YEAR SEVERANCE AGREEMENT. THE AMOUNT OF SEVERANCE PAID OUT IN 2018 TO MICHAEL O'NEIL WAS $227,682. 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 INDIVIDUAL RECEIVED VESTED PAYMENTS IN 2018, REFLECTED IN COLUMN (B)(III): . PHIL NEWBOLD $198,860 . KREG GRUBER, $92,073 . JEFFREY COSTELLO, $86,519 . STEVEN ELLER, $14,699 . DIANE MAAS, $34,578 . MICHAEL O'NEIL, $326,263 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2018 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . JEFFREY COSTELLO, $88,827 . KREG GRUBER, $131,845 . STEVEN ELLER, $52,264 . MARK WARLICK, $55,084 . LORI TURNER, $45,683 . DIANE MAAS, $50,240 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 RECEIVED DEFFERED PAYMENTS IN 2018 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . JEFFREY COSTELLO, $65,000 . KREG GRUBER, $65,000 PART I, LINE 7 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-MANAGEMENT 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 PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET OPERATING INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME. THE PAYOUT OF THE MANAGEMENT INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET INCOME. THE SLIDING SCALE CAPS, WHEN OPERATING INCOME REACHES 120% OF THE BUDGETS OPERATING INCOMES. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. A HOSPITAL AUTHORITY OF SAINT JOSEPH COUNTY 911914363 2016-08-18 50000000 CONSTRUCT CHILDREN'S HOSPITAL false false false B HOSPITAL REVENUE BONDS SERIES 2018 911914363 2018-12-11 35000000 CONSTRUCT ADMIN AND BREMEN HOSPITA false false false A 0 0 50000000 0 0 0 285000 0 0 49715000 0 0 2017 false false true true B 0 0 35000000 0 0 0 158279 0 0 0 0 34841721 2019 false false false true A false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true B false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true A false true false false false false 0 false 0 false true B false true false false true false 0 false 0 false true A true B true Megan Ball Martin Board Member is father-in-law 42413 Compensation false Core Form, Part III, Line 2 Beacon Health, LLC (BH, LLC) began operations in 2018. BH, LLC provides ancillary and ambulatory medical services outside of the acute care environment. Current services include physical therapy. Future services may expand to include other services as needs are identified. FORM 990, PART VI SECTION A, LINE 2 Tracy Graham and Ron Fenech have a business relationship. Amish Shah and Jessi Hsieh have a business relationship. FORM 990, PART VI SECTION A, LINE 7A THE 14 MEMBERS OF BOARD OF DIRECTORS OF BEACON HEALTH SYSTEM WERE INITIALLY APPOINTED 50% BY ELKHART GENERAL HOSPITAL, INC. AND 50% BY BEACON MEDICAL GROUP, INC (F.K.A. MEMORIAL HEALTH SYSTEM, INC.). THE REPRESENTATION WILL CONTINUE FOR A PERIOD OF 7 YEARS FROM THE DATE OF BEACON HEALTH SYSTEM'S FORMATION. SUCCESSOR APPOINTEES TO THE BOARD ARE RECOMMENDED FROM THE RESPECTIVE HOSPITALS, OR A COMMITTEE APPOINTED BY THE RESPECTIVE HOSPITALS TO THE NOMIMATING AND GOVERNANCE COMMITTEE OF THE BOARD, THEN APPOINTED TO THE BOARD. AT THE EXPIRATION OF THIS 7 YEAR TERM, THE BEACON HEALTH SYSTEM BOARD OF DIRECTORS WILL BE APPOINTED BY THE NOMINATING AND GOVERNANCE COMMITTEE. 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 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, 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 353 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 IN EARLY FEBRUARY, 2019 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2019, 18 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 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, 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 WRITE OFF INTER COMPANY MEMORIAL HOSPITAL OF SB $ 99,873,774 WRITE OFF INTER COMPANY ELKHART GENERAL HOSPITAL $ 21,395,763 WRITE OFF INTER COMPANY BEACON MEDICAL GROUP $ -96,142,087 WRITE OFF INTER COMPANY COMMUNITY HOSP. OF BREMEN $ -5,013,383 WRITE OFF INTER COMPANY BEACON HEALTH FOUNDATION $ -944,741 ALICK'S K-1 DIFFERENCE $ -76,859 SBSSC K-1 DIFFERENCE $ 159,901 ROUNDING VARIANCE $ 15.26 TOTAL $ 19,252,383 FORM 990 PART IX LINE 11G DESCRIPTION:EQUIPMENT RENTAL & MAINTENANCE TOTAL FEES:18956331 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:5882879 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:3476623 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:3132043 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:748422 FORM 990 PART IX LINE 11G DESCRIPTION:LAB READING FEES TOTAL FEES:331371 FORM 990 PART IX LINE 11G DESCRIPTION:RADIOLOGY FEES TOTAL FEES:60314 Community Occupational Medicine 22818 Old US 20 Elkhart IN 46516 352073758 Medical Cent IN 7091542 3300665 BHS CHA ACO LLC 53842 Generations Dr South Bend IN 46635 462860087 ACO IN 52850 175778 BHS Beacon Health LLC 615 N MICHIGAN ST SOUTH BEND IN 46601 320541809 MEDICAL SRVCS IN 1911673 1773412 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) 12D III-O 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 BREMEN FOUNDATION 1020 HIGH ROAD BREMEN IN 46506 350835006 FINANCIAL SUP IN 501(c)(3) 12B,II BHS true BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN BHS C 14221274 11096927 1.00000 true BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHGIAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI BHS C 176126 3887494 1.00000 true true true true false false false false false true false true true true true true true true true true Beacon Medical Group a 2516022 Actual Charges Beacon Medical Group k 138152 Actutal Charges Beacon Medical Group p 24355752 Actual Charges Beacon Medical Group q 48252533 Actual Charges Beacon Medical Group r 62339127 Cash Beacon Medical Group l 11473732 Transfer Price Beacon Medical Group i 125352 Actual Charges Memorial Hospital of South Bend p 40182624 Actual Charges Memorial Hospital of South Bend q 78726693 Actual Charges Memorial Hospital of South Bend s 175200000 Cash Memorial Hospital of South Bend l 35013650 Transfer Price Beacon Health Foundation q 1419869 Actual Charges Beacon Health Foundation s 1129000 Cash Beacon Health Foundation l 152889 Transfer Price Beacon Health Foundation c 340726 Actual Charges Community Hospital of Bremen q 3133163 Actual Charges Community Hospital of Bremen r 1253880 Cash Beacon Health Ventures k 80836 Actual Charges Beacon Health Ventures p 674637 Actual Charges Beacon Health Ventures q 6844079 Actual Charges Beacon Health Ventures s 4004596 Cash Beacon Health Ventures l 1239276 Transfer Price Beacon Health Ventures i 114763 Actual Charges Elkhart General Hospital p 3717497 Actual Charges Community Hospital of Bremen l 667663 Transfer Price Elkhart General Hospital q 71977524 Actual Charges Elkhart General Hospital s 114500000 Cash BEACON MEDICAL GROUP b 99560577 Actual Charges MEMORIAL HOSPITAL OF SOUTH BEND C 101602864 Actual Charges ELKHART GENERAL HOSPITAL C 23215999 Cash COMMUNITY HOSPITAL OF BREMEN B 1131792 Actual Charges Elkhart General Hospital l 23031125 Transfer Price BEACON HEALTH FOUNDATION A 23410 Actual Charges