2019-08-19T11:00:14-05:00 2018-12-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2018-01-01 300001715 Agrace HospiceCare Holdings Inc AGRA 6082764660 5395 East Cheryl Parkway Fitchburg WI 53711 Lynne Sexten President/CEO 2019-08-19 true Nicole Bencik P00756195 3128997000 2018 2019-02-21 02:37:17Z Lynne Sexten 5395 East Cheryl Parkway Fitchburg WI 53711 2701634 false X www.agrace.org X 2001 WI Agrace HospiceCare Holdings, Inc.'s (Holdings) mission is "Partnering with patients and families to improve quality of life throughout serious illness." Holdings is operated exclusively for the (Continued on Schedule O) 15 14 0 14 0 0 110743 291292 2380412 2407752 -19611 -33905 0 2471544 2665139 1000000 2309012 0 0 0 0 2468903 2488953 3468903 4797965 -997359 -2132826 30830529 29597201 314371 1213869 30516158 28383332 Holdings' mission is "Partnering with patients and families to improve quality of life throughout serious illness." Holdings is operated exclusively for the support and benefit of Agrace Hospicecare, a related tax-exempt organization. In carrying out its mission, Agrace Holdings invests in, receives, holds, uses and (Continued on Schedule O) false false 2309012 2309012 0 AGRACE HOSPICECARE PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THE ORGANIZATION'S CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. SUCH PATIENTS ARE IDENTIFIED BASED ON FINANCIAL INFORMATION OBTAINED FROM THE PATIENT AT THE TIME THEY ENROLL IN THE PROGRAM OR SUBSEQUENT CHANGES TO THEIR FINANCIAL CIRCUMSTANCES. BECAUSE THE ORGANIZATION DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUE. IN 2018, AGRACE HOLDINGS GRANTED $2,250,000 TO AGRACE FOUNDATION TOWARDS THE $15 MILLION ENDOWMENT CAMPAIGN THAT WAS STARTED TO PROVIDE ONGOING FINANCIAL SUPPORT TOWARDS THAT MISSION. IN 2018, Agrace Holdings granted $59,012 to Agrace Foundation for general purposes. 1804753 0 2407752 PROVISION OF CAPITAL ASSETS: AGRACE HOLDINGS SUPPORTS AGRACE HOSPICECARE BY PROVIDING THE STRATEGIC AND OPERATIONAL CAPITAL ASSETS NECESSARY FOR AGRACE HOSPICECARE TO BEST SERVE PATIENTS AND THEIR FAMILIES NOW AND INTO THE FUTURE. THE LARGEST CAPITAL ASSETS OF AGRACE HOLDINGS ARE THE BUILDINGS. THE ELLEN & PETER JOHNSON HOSPICECARE RESIDENCE, THE DON & MARILYN ANDERSON HOSPICECARE CENTER, AND AGRACE CENTER FOR HOSPICE & PALLIATIVE CARE JANESVILLE CAMPUS WERE GENEROUS GIFTS FUNDED ENTIRELY BY THE COMMUNITY. AGRACE HOLDINGS HAS A RESPONSIBILITY TO KEEP THESE BUILDINGS IN THEIR ORIGINAL STATE FOR THE USE OF PATIENTS AND FAMILIES IN PERPETUITY. MAJOR CAPITAL PROJECTS IN 2018 INCLUDED COMPUTER SOFTWARE AND EQUIPMENT, AND BUILDING IMPROVEMENTS RELATED TO IMPROVING SAFETY, IMPROVING QUALITY OF CARE, REDUCING RISK AND AIDING IN RECOVERY OF CRITICAL SYSTEMS. 4113765 true true false false false false true false false true false false false true true false true false false false false false false false false false true false true false false false false false false false false false false false false false true false false false true X 4 0 true 0 false false false false false false true false false false false false X 15 14 true false false false true true false true true false false true true true true true true false false false WI X Jennifer Maurer 6082764660 5935 EAST CHERYL PARKWAY Fitchburg WI 53711 Michael F Fitzpatrick Chair 1.0 1.0 X X 0 0 0 Christopher Queram Secretary 1.0 1.0 X X 0 0 0 Ann Sheehy MD Vice Chair 1.0 1.0 X X 0 0 0 Ken Thompson Treasurer 1.0 1.0 X X 0 0 0 Lynne Sexten President / CEO 5.0 35.0 X X 0 445727 57170 Lou Bernhardt MD Director 1.0 2.0 X 0 0 0 Dr Toby Campbell Director 1.0 1.0 X 0 0 0 Steve DiTullio Director 1.0 2.0 X 0 0 0 Brian Happ Director 1.0 1.0 X 0 0 0 Jonathan Jaffrey MD Director 1.0 1.0 X 0 0 0 Erik Johnson Director 1.0 1.0 X 0 0 0 David Kruger Director 1.0 1.0 X 0 0 0 Everett Mitchell Director 1.0 1.0 X 0 0 0 Dr Pamela Wetzel Director 1.0 1.0 X 0 0 0 Jane Wiedenbeck Director 1.0 1.0 X 0 0 0 Julia Houck Chief Administrative Officer 5.0 35.0 X 0 268929 39600 Jennifer Maurer Chief Financial Officer 5.0 35.0 X 0 266422 23156 0 981078 119926 0 false true false Creative Business Interiors Inc 201 Moravian Valley Rd Ste D Waunakee WI 53597 Office remodel and furniture 475676 AGRACE HOSPICECARE INC 5395 E CHERYL PKWY FITCHBURG WI 53711 ADMINISTRATIVE SERVICES 182132 2 291292 291292 Rental income from Agrace HospiceCare, Inc 900002 2407752 2407752 0 0 0 0 2407752 2590 2590 0 0 0 36495 0 -36495 -36495 -36495 0 0 0 0 0 2665139 2407752 0 -33905 2309012 2309012 25130 25130 182132 0 182132 0 20570 16270 4300 2261121 1788483 472638 0 0 0 0 4797965 4113765 684200 0 2988131 1854104 726272 727518 0 0 55 3251 44681120 18626864 26391731 26054256 0 0 724340 958072 30830529 29597201 156285 808934 0 158086 404935 314371 1213869 X 30516158 28383332 30516158 28383332 30830529 29597201 -2132826 0 X false true X true false X X 1 AGRACE HOSPICECARE INC 391319537 9 true 2309012 0 1 2309012 0 true false false false false false false false false false false false false false false true false Schedule A, Part I, Line 11 SUPPORT TO RELATED TAX-EXEMPT ORGANIZATION HOLDINGS PROVIDES THE USE OF THEIR FACILITIES AND FIXED ASSETS TO AGRACE HOSPICECARE, INC., A RELATED TAX-EXEMPT ORGANIZATION, TO SUPPORT ITS MISSION OF ENHANCING THE QUALITY OF LIFE AT THE END OF LIFE. 0 521133 X X Providing welcoming environment false 1775145 1775145 30806387 10965275 19841112 380051 238323 141728 8643745 5830638 2813107 3075792 1592628 1483164 26054256 Capital Leases 221789 Due to affiliates 183146 404935 X Schedule D, Part III, Line 4 Collections of art - description of collections The organization's collections consist primarily of works of art that are on display in public spaces as well as patient rooms at the facilities owned by Agrace HospiceCare Holdings and operated by Agrace HospiceCare, Inc. These works of art are used to provide a welcoming, therapeutic, home-like environment to Agrace HospiceCare patients and families in furtherance of the organization's mission of partnering with patients and families to improve quality of life throughout serious illness. The artwork represents each of the many cultures of the people living in south central Wisconsin. The familiarity of the pieces helps patients and their families feel more comfortable in our health care facility. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The organization is included in the consolidated audited financial statements of Agrace HospiceCare, Inc., a related organization. Agrace HospiceCare Inc.'s Fin 48 (ASC740) Footnote for the year ended December 31, 2018 reads as follows: The Organization is exempt from income taxes on income from related activities under Section 501(c)(3) of the U.S. Internal Revenue Code and corresponding state tax law. Accordingly, no provision has been made for federal or state income taxes. Additionally, the Organization has been determined not to be a private foundation under Section 509(a) of the Internal Revenue Code. U.S. GAAP requires that a tax position is recognized as a benefit only if it is "more likely than not: that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination, For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Organization's Forms 990 have not been subject to examination by the Internal Revenue Service or the state of Wisconsin for the last three years. The organization does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. The organization recognizes interest and/or penalties related to income tax matters in income tax expense. The Organization did not have any amounts accrued for interest and penalties at December 21, 2018 or 2017. true Agrace HospiceCare Foundation Inc 5395 E Cheryl Pkwy Fitchburg WI 53711 300001703 501(c)(3) 2309012 Intended for Agrace HospiceCare Foundation, Inc.'s, a supporting organization of Agrace HospiceCare, Inc., Care for All endowment campaign, a fundraising effort to establish an endowment where the earnings will cover the cost of charity care services provided to Agrace HospiceCare, Inc. to the community. 1 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. This grant is intended for Agrace HospiceCare Foundation, Inc.'s Care for All Campaign endowment fund. Agrace HospiceCare Inc. receives regular reports on the endowment activities and directing benefits from the earnings of the endowment to cover charity care costs. false true false false false false true false false Lynne Sexten President / CEO 0 332506 0 87341 0 25880 0 38000 0 19170 0 502897 0 0 Julia Houck Chief Administrative Officer 0 232614 0 28763 0 7552 0 13736 0 25864 0 308529 0 0 Jennifer Maurer Chief Financial Officer 0 209139 0 40953 0 16330 0 13711 0 9445 0 289578 0 0 Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation The organization relied on Agrace HospiceCare, Inc. a related tax-exempt organization, to determine the compensation of its top management official. Below is the process used by Agrace HospiceCare, Inc. for determining compensation: Each year the organization gathers market data for determining compensation of the chief executive officer. This includes benchmarks of national, regional, and local compensation that are provided from independent compensation surveys. Each year, the chief administrative officer presents this information to the executive committee of the board, Based on this information, the executive committee sets and approves the compensation package for the chief executive officer for the year and contemporaneously documents their approval in writing. This process was completed in February 2018. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan Lynne Sexten participated in a 457(f) plan. No distributions were made from the plan during 2018. A contribution in the amount of $27,000 was made to the plan during 2018. Schedule J, Part I, Line 6b Compensation contingent on net earnings of a related organization The cash bonus under the Plan is determined in part by two factors: company operating margin performance and individual employee performance. Form 990, Part I, Line 1 BRIEF MISSION (CONTINUED FROM FORM 990, PART 1, LINE 1) SUPPORT AND BENEFIT OF AGRACE HOSPICECARE, INC., A RELATED TAX-EXEMPT ORGANIZATION. Form 990, Part III, Line 1 ORGANIZATION'S MISSION (CONTINUED FROM FORM 990, PART III, LINE 1) disposes of all property, real or personal, as may be necessary or desirable to support the operations of Agrace HospiceCare, Inc. and, Because the buildings were funded entirely by gifts from the community, Agrace Holdings has a responsibility to keep them in their original state for the use of patients and families in perpetuity. Form 990, Part V, Line 2a REPORTING OF EMPLOYEES COMPENSATION THE ORGANIZATION SHARES EMPLOYEES WITH AGRACE HOSPICECARE, INC. (AHI), A RELATED TAX-EXEMPT ORGANIZATION. NONE OF THE EMPLOYEES SPEND THE MAJORITY OF THEIR TIME WORKING FOR THE ORGANIZATION; THEREFORE, NO EMPLOYEES ARE REPORTED ON FORM 990, PART V, LINE 2A. THE ORGANIZATION DOES REIMBURSE AHI FOR THE TIME THE SHARED EMPLOYEES SPEND WORKING AT THE ORGANIZATION. THIS COMPENSATION EXPENSE IS REPORTED ON FORM 990, PART IX, LINE 11G. Form 990, Part VI, Line 15a PROCESS USED TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL THE ORGANIZATION RELIED ON AGRACE HOSPICECARE, A RELATED TAX-EXEMPT ORGANIZATION, TO DETERMINE THE COMPENSATION OF ITS OTHER OFFICERS AND KEY EMPLOYEES. BELOW IS THE PROCESS USED BY AGRACE HOSPICECARE FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL. Each year the organization gathers market data for determining compensation of the chief executive officer. This includes benchmarks of national, regional, and local compensation that are provided from independent compensation surveys. The chief administrative officer presents this information to the executive committee of the board, Based on this information, the executive committee sets and approves the compensation package for the chief executive officer for the year and contemporaneously documents their approval in writing. This process occurs annually in February. Form 990, Part VI, Line 15b PROCESS USED TO ESTABLISH COMP OF OTHER OFFICERS AND KEY EMPLOYEES THE ORGANIZATION RELIED ON AGRACE HOSPICECARE, A RELATED TAX-EXEMPT ORGANIZATION, TO DETERMINE THE COMPENSATION OF ITS OTHER OFFICERS. BELOW IS THE PROCESS USED BY AGRACE HOSPICECARE FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. Each year the organization gathers market data for compensation of the executive leadership team. This data includes benchmarks of national, regional, and local compensation that are provided from independent compensation surveys. Executive leadership pay is adjusted based on: 1) years of experience; 2) performance; and 3) market data for the 65th percentile of total compensation for the position. The chief administrative officer presents the market data information to the executive committee of the board. Based on this information, the executive committee of the board approves the compensation package for the executive leadership team and documents their approval in writing. This process occurs annually in February. Form 990, Part VI, Line 1a Delegate broad authority to a committee The Executive Committee is composed of 5 members of the board. The committee has the authority to review and establish the CEO contract, executive level compensation and supplemental retirement plans, assess board and officer composition, recruitment and performance, and update board policies and procedures. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons Ken Thompson and Erik Johnson - Business relationship, Ann Sheehy, Mike Dallman, Toby Campbell & Jonathan Jaffery - Business relationship Form 990, Part VI, Line 6 Classes of members or stockholders Agrace HospiceCare, Inc., a related 501(c)(3) organization, is the sole member of Agrace Holdings and has the authority to appoint, remove, and replace any director on Agrace Holdings board. Agrace HospiceCare, Inc. also has the sole authority to amend the Holdings' bylaws and articles of incorporation. Agrace HospiceCare, Inc. has no other responsibilities or voting rights with respect to the operations of Agrace Holdings. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body Pursuant to the bylaws of the organization, Agrace HospiceCare, Incorporated, the sole member of the organization, has the authority to, at any time, appoint and re-appoint Directors of the Corporation, fill vacancies on the board of directors, and remove any director of the corporation, with or without cause. Form 990, Part VI, Line 11b Review of form 990 by governing body The Controller and CFO performed a detailed review of Form 990 and the related schedules prior to filing the return. This included verification of all amounts for accuracy and completeness. The form and schedules were also reviewed for content, presentation and reasonableness. The entire Form 990 is made available to the entire executive leadership team and an entity specific highlights summary is provided. The entire Form 990 is provided to the entire Board of Directors prior to filing and is accompanied by a 990 highlight summary. The audit committee reviewed the Form 990 and related schedules for reasonableness. Form 990, Part VI, Line 12c Conflict of interest policy Directors, officers and key employees (interested persons) are required to annually review the organization's Code of Conduct, including the conflict of interest policy/statement. Interested persons are required to disclose potential or actual conflicts with the organization in writing via the annual questionnaire distributed electronically to each interested person. When a disclosure arises, the person shall promptly make disclosure of the interest to the governing board or committee. After disclosure and discussion the interested person shall leave the governing board or committee meeting while the determination of a conflict of interest is further discussed and voted upon by the remaining disinterested governing board or committee members. Once an actual conflict of interest exists with respect to a particular contract, transaction or arrangement the disinterested members of the board exercise due diligence to determine whether said contract, transaction or arrangement is reasonable. The conflict of interest questionnaires are reviewed by the Controller and governance coordinator. The controller and governance coordinator determine whether a potential conflict exists based on the completed questionnaires submitted by each interested person. Form 990, Part VI, Line 19 Required documents available to the public These documents may be made available to the public upon receipt of a written request. AGRACE HOSPICECARE INC 5395 E CHERYL PARKWAY Fitchburg WI 53711 391319537 HEALTHCARE WI 501(c)(3) 10 NA false AGRACE HOSPICECARE FOUNDATION INC 5395 E CHERYL PARKWAY Fitchburg WI 53711 300001703 FUNDRAISING WI 501(c)(3) Type I AHCI false false true true true false false false false true false false true true true true true false false