2018-11-09T15:50:51-06:00 2017-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2017-01-01 351536129 Beacon Health Foundation Inc % JEFFREY COSTELLO BEAC 5746473549 615 N Michigan Street South Bend IN 46601 JEFFREY COSTELLO CFO 5746473549 2018-11-09 true JACOB J ZEHNDER P01564049 3128792702 164.57.159.254 36964520183135000009 2018-11-09 P 944202C2FB33CE7AEBF67CF5144CE918E6C5ED4F 277A2553AC5F9787DA5E6FE751E73415AFB5A6AE 2017 2019-02-21 02:37:17Z Kreg Gruber 615 N Michigan Street South Bend IN 46601 4651106 false X beaconhealthsystem.org X 1982 IN SEE MISSION STATED IN PART III, LINE 1 10 10 0 0 -5805 -5805 3875821 2405015 0 0 493847 995299 2979 1460 4372647 3401774 2690613 4316929 0 0 0 0 0 0 890869 1537483 1581025 4228096 5897954 144551 -2496180 33906074 34216429 3755 457569 33902319 33758860 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. false false 4316929 4316929 1460 On November 23, 2011, Beacon Health System, Inc. (the "Corporation") was established as the parent corporation of Memorial Hospital of South Bend, Inc. ("MHSB") and Elkhart General Hospital, Inc. ("EGH") to develop a full spectrum of health-related services for North Central Indiana and Southwestern Michigan. The Corporation is community-owned and not-for-profit. Along with its subsidiaries, the Corporation serves the greater community throughout the continuum of care from health promotion and sickness prevention to diagnosis, inpatient, outpatient and home health services. The Corporation controls MHSB, EGH, Beacon Medical Group (BMG), Beacon Health Foundation (BHF) (f/k/a Memorial Health Foundation, Inc. (MHF)), and Beacon Health Ventures, Inc. (BHV), collectively referred to as the "System". Beacon Health Foundation, Inc., (BHF) is a tax-exempt, non-private foundation. It was established in 1982 to provide philanthropic support to MHSB, and continues to provide this support to the newly created Corporation through contributions and management of endowment funds. 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. In October 2016, Elkhart General Hospital Foundation (EGHF), a third party, was combined into MHF. The combined operations were renamed Beacon Health Foundation, Inc. ("BHF"). All assets and liabilities of EGHF were assumed by BHF. EGHF was organized primarily to support EGH. EGHF combined with BHF as it had a common purpose and alignment with BHF. 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 2017, 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, 2017: Memorial Hospital & Health System $ 2,107,682 Beacon Children's Hospital $ 3,251,205 Elkhart General Hospital $ 277,675 Stewarding Resources In 2017, funds from Beacon Health Foundation went to support the following areas at Beacon: Beacon Health System Staff Education/Scholarships $65,421 Associate Emergency Assistance $12,844 Unrestricted $32,705 Elkhart General Hospital Breast Care Center $346 Center for Cancer Services $2,901 Center for Cardiac Care $2,515 Center for Women & Children $968 Critical Care Center $116 Decio Courtyard $1,722 Diabetes Education $18,647 Elkhart General Hospital Legacy Funds $170,337 Palliative Care $1,040 Unrestricted $41,480 Memorial Hospital of South Bend Cancer Center $1,089,269 Childbirth Unit $1,925 Community Health Enhancement $101,170 Heart & Vascular Services $10,276 Memorial Epworth Center $1,335 Neighborhood Health Centers $3,493 Pulmonary $1,730 Spiritual Care Services $2,956 Support Services $3,581 Unrestricted $8,405 Beacon Children's Hospital Beacon Children's Hospital Capital Support $2,091,261 Beacon Children's Hospital General Support $21,771 Pediatric Child Life Services $260,999 HealthWorks! Kids' Museum $69,417 Newborn Intensive Care $40,955 Pedicatric Cancer and Blood Disorders Clinic $51,290 Sunburst Races $10,000 Total 2017 Distributions $4,120,875 4316929 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 X 10 10 false false false 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 Joseph M Hart Director 2.0 0.0 X 0 1735 0 Shannon Cullinan Director 2.0 0.0 X 0 3539 0 Kurtis A Janowsky Secretary/Treasurer 2.0 0.0 X X 0 3539 0 Brad Beutter Director 2.0 0.0 X 0 0 0 Jacqueline Barton Director 2.0 0.0 X 0 417 0 Art Decio Director 2.0 0.0 X 0 0 0 Diane Krill Vice Chair 2.0 0.0 X X 0 1792 0 Todd Schurz Chair 2.0 0.0 X X 0 4060 0 Tom Shoff Director 2.0 0.0 X 0 1643 0 Carl Tiedemann Director 2.0 0.0 X 0 0 0 Philip A Newbold CEO/President through 10/31/17 2.0 46.0 X 0 1710953 233242 Jeffrey P Costello CFO/Asst. Treasurer 2.0 46.0 X 0 597602 178765 Kellie Porter Asst. Secretary 40.0 2.0 X 0 166781 24214 Susan King Foundation President 40.0 2.0 X 0 205369 45492 Kreg Gruber CEO/President starting 11/1/17 2.0 46.0 X 0 640757 180513 0 3338187 662226 0 false true false 0 2405015 223583 2405015 0 459657 -5805 465462 0 0 0 0 0 1784974 1249332 535642 535642 535642 0 0 0 0 0 0 0 0 0 OTHER INCOME - REBATES AND REFUNDS 561000 1011 1011 OTHER INCOME - COMMERCE CARD 561000 449 449 1460 3401774 1460 -5805 1001104 4258007 4258007 58922 58922 0 0 0 0 0 0 0 0 0 0 396 396 0 0 0 63596 46431 17165 734 734 8354 4132 4222 878 878 0 35277 14816 20461 18867 10262 8605 0 2115 888 1227 0 0 9049 9049 12638 12638 CONTRACT LABOR 1081374 454177 627197 CORPORATE ALLOCATION 159982 67192 92790 DUES/SUBSCRIPTIONS 101776 42746 59030 CULTIVATION 24549 24549 61440 26551 34889 5897954 4316929 690156 890869 0 0 4977282 2813573 2873824 2116501 0 0 0 0 0 0 0 0 0 0 0 0 180651 149935 37461 30716 17879379 21834176 8138128 7421464 0 0 0 0 0 0 33906074 34216429 3755 5727 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 451842 3755 457569 X 25008299 26869664 8628350 6814197 265670 75000 33902319 33758861 33906074 34216429 X -2496180 2422318 -69596 X false true X true false X 2215153 2853929 4131246 3875821 2004614 15080763 0 0 2215153 2853929 4131246 3875821 2004614 15080763 2552246 12528517 308482 565447 394867 400447 459657 2128900 0 0 17209663 11528 0.72799 0.75501 X 33854961 2155261 2479263 4284345 34205140 26556022 9605449 339397 2645907 33854961 29619029 4093832 -1367472 5789367 26556022 27642755 2833644 -142883 714487 29619029 24661171 2180336 1785965 984717 27642755 0.79860 0.00220 0.19920 false false 19046 1822 17224 161605 148113 13491 30716 ALTERNATIVE INVESTMENTS 7421464 F 7421464 0 DUE TO AFFILIATES_BHS 451842 451842 X SCH. D, PART V, LINE 4 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. Term endowments, which are the Temporarily restricted net assets, are used as designated by the donor. The permanent endowment provides income to be used for health care educational purposes and patient care. 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, 2017 or 2016. Central America and the Caribbean 0 0 Investments 4346579 0 0 0 0 4346579 4346579 true false true true false false true Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(c)(3) 2819752 163470 To support hospital operations and capital purchases Beacon Medical Group Inc 615 N Michigan Street South Bend IN 46601 351536132 501(c)(3) 8697 To support BMG operations and capital purchases Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 501(c)(3) 1051711 To support scholarships and health system Elkhart General Hospital 615 N Michigan Street South Bend IN 46601 350877574 501(c)(3) 214377 To support home care operations and capital purchases 4 Grants for Children 3715 58922 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 2017. 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 Philip A Newbold CEO/President through 10/31/17 0 807254 0 215000 0 688699 0 217827 0 15415 0 1944195 0 135543 Jeffrey P Costello CFO/Asst. Treasurer 0 459929 0 108072 0 29601 0 159176 0 19589 0 776367 0 0 Kellie Porter Asst. Secretary 0 126772 0 39213 0 796 0 6858 0 17356 0 190995 0 0 Susan King Foundation President 0 177604 0 20000 0 7765 0 21822 0 23670 0 250861 0 0 Kreg Gruber CEO/President starting 11/1/17 0 515723 0 111282 0 13752 0 159087 0 21426 0 821270 0 0 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 2017, REFLECTED IN COLUMN (B)(III): . PHIL NEWBOLD $135,543 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2017 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . PHIL NEWBOLD, $197,348 . JEFFREY COSTELLO, $77,367 . KREG GRUBER, $83,287 . SUSAN KING, $21,822 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 2017 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . JEFFREY COSTELLO, $65,000 . KREG GRUBER, $65,000 X 7912 Cost Donated Propert X 1191 Fair Market Value X Toys, electronics, etc. 4426 46713 Cost Donated Propert X Gift Cards, Coupons, etc. 157 4297 Cost Donated Propert X Gift Shop Non-Cash Contribution 1 163470 Cost Donated Propert false false false SCHEDULE M, PART I For 2017, 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 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 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 SUPERMAJORITY 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 THEREOF. - 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 320 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 MARCH, 2018 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2018, 17 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. CORE FORM, PART XI, LINE 9 OTHER CHANGES IN FUND BALANCE: CHANGE IN GRUBE TRUST 121,068 BHF distributions to BHF for internal expenses (i.e. travel, GEM jackets) (26,338) Other Rounding (857) Gift Shop (163,469) Total $(69,596) 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 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 true false false false false false false false true true true true true true true true true Beacon Medical Group Inc B 8697 ACTUAL CHARGES Memorial Hospital of South Bend Inc B 2983222 ACTUAL CHARGES Memorial Hospital of South Bend Inc P 134672 ACTUAL CHARGES Elkhart General Hospital Inc B 214377 ACTUAL CHARGES