2018-11-09T15:50:51-06:00 2017-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20TH FLOOR CHICAGO IL 60606 990 2017-01-01 453864076 Beacon Health System Inc % JEFFREY COSTELLO BEAC 5746473549 615 N MICHIGAN ST SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 5746473549 2018-11-09 true JACOB J ZEHNDER P01564049 3128792702 164.57.159.253 36964520183135000007 2018-11-09 P 293BFF211DBF6D1BF8C352F5B6BD1B6D32CED523 277A2553AC5F9787DA5E6FE751E73415AFB5A6AE 2017 2019-02-21 02:37:17Z Kreg Gruber 615 N MICHIGAN ST SOUTH BEND IN 46601 136736891 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 12 546 12 2122161 -762544 620066 1051711 72152624 80386693 34943646 15229299 3044423 3083571 110760759 99751274 919043 758353 0 0 39336957 40825765 0 0 0 40257068 46401660 80513068 87985778 30247691 11765496 691884285 827559183 63165469 66859444 628718816 760699739 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. false false 87421924 758353 81562216 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., AND BEACON HEALTH VENTURES, 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. 87421924 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 false false false false false false true true true true false false true 202 0 true 546 true true true false false false false false false false false 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 1248034 31563 LARRY D HARDING DIRECTOR 2.0 0.0 X 2845 0 0 DANIEL A MORRISON CHAIR 2.0 0.0 X X 0 0 0 VIVIAN SALLIE DIRECTOR 2.0 0.0 X 2731 0 0 J SCOTT TROEGER DIRECTOR 2.0 0.0 X 254 0 0 DAVID VAN RYN MD Director 2.0 10.0 X 0 24360 10800 JOHN HILER CHAIR(left March 2017) 2.0 0.0 X X 325 0 0 BIPIN DOSHI Vice 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 2.0 0.0 X 0 0 0 JESSE HSIEH MD Treasurer 2.0 0.0 X X 1792 0 0 JOHN MARTIN DIRECTOR 2.0 0.0 X 0 0 0 TOM CASSADY JR DIRECTOR 2.0 0.0 X 4083 0 0 TRACY GRAHAM DIRECTOR 2.0 0.0 X 4904 0 0 THOMAS BURISH Director 2.0 0.0 X 0 0 0 PHILIP A NEWBOLD CEO (Left 10/31/17) 40.0 8.0 X 1710953 0 233242 JEFFREY P COSTELLO CFO/Asst. Treasurer 40.0 8.0 X 597602 0 178765 MICHAEL O'NEIL Left in 2017 40.0 0.0 X 364727 0 402883 KREG GRUBER COO\CEO Begining 11/1/17 40.0 8.0 X 640757 0 180513 STEVEN ELLER Cheif Human Resource Officer 40.0 0.0 X 353218 0 69179 DIANE MAAS Chief Bus Dev & Plan Officer 40.0 0.0 X 347550 0 62918 MARK WARLICK Chief Information Officer 40.0 0.0 X 366337 0 72810 SCOTT ESHOWSKY Medical Information Officer 40.0 0.0 X 388468 0 30847 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 40.0 0.0 X 319319 0 34410 DANIELLE GAGLIANO CHIEF STRATEGY & PLANNING 0.0 0.0 X 368731 0 20698 SHELLY HARKINS CHIEF MEDICAL OFFICER 0.0 0.0 X 328726 0 20883 5803322 1272394 1349511 59 true true false Cerner Corporation 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 IS Sftwr Maintenance 10522077 MCKESSON TECHNOLOGIES INC 5995 WINDWARD PARKWAY ALPHARETTA GA 19087 IS Sftwr Maintenance 2070448 SOFTWARE INFORMATION SYSTEMS LLC 165 BARR STREET SUITE 200 LEXINGTON KY 40507 IS Sftwr Maintenance 1655245 CDW GOVERNMENT 75 REMITTANCE DRIVE SUITE 1515 CHICAGO IL 60675 IS SFTWR MAINTENANCE 1486549 WOODCOX BLDG CONTRACTORS 51175 PRESCOTT AVE SOUTH BEND IN 46637 CONSTRUCTION MANAGER 1552768 120 1051711 1051711 MANAGEMENT ADMIN SERVICES 561499 70094465 68165618 1928847 NET PATIENT SERVICE REVENUE 621110 7411287 7411287 AFFILIATE RENT 532000 2798611 2798611 JOINT VENTURE ACTIVITY 621110 82330 82330 80386693 10554886 -595441 11150327 0 0 1138445 19152 1119293 0 1119293 1119293 41555864 85014 36951872 14593 4603992 70421 4674413 4674413 0 0 0 0 0 0 0 0 0 CHA PAY FOR PERFORMANCE 621300 455750 455750 LANGUAGE SERVICES 561499 43097 43097 MANAGED CARE ACTIVITIES 561499 787657 80098 707559 677774 639675 38099 1964278 99751274 79633369 2122161 16944033 X 54671 54671 703682 703682 0 0 4326375 4326375 0 0 0 26378540 26378540 454984 454984 7650604 7650604 2015262 2015262 0 560518 560518 3336 3336 15184 15184 0 119251 119251 28931925 28931925 1413920 1413920 2744010 2744010 253174 253174 0 1440160 1440160 461359 461359 0 108853 108853 0 0 4584747 4584747 356376 356376 GENERAL DUES & SUBSCRIPTIONS 2515268 2515268 RECRUITMENT 632063 632063 SUPPLIES 369318 369318 SIGNAGE 1429 1429 1890769 1890769 87985778 87421924 563854 0 1619 2019 0 21687315 0 0 1372297 1299635 0 0 0 0 0 0 0 0 12686723 12653583 73086889 30990073 37829169 42096816 445675383 527688219 182776088 200334486 11056374 17823997 103840 103840 382792 3869273 691884285 827559183 11306655 14740971 0 0 0 0 49718563 49529040 0 0 0 0 0 0 0 0 2140251 2589433 63165469 66859444 X 628718816 760699739 0 0 0 0 628718816 760699739 691884285 827559183 X 11765496 64109834 56105593 X false true X true false X X X 4 BEACON MEDICAL GROUP INC 351536132 10 true 113153875 2442723 ELKHART GENERAL HOSPITAL INC 350877574 3 true 69115930 0 MEMORIAL HOSPITAL OF SOUTH BEND INC 350868132 3 true 90100772 1149846 BEACON HEALTH FOUNDATION 351536129 7 false 674194 1120693 4 273044771 4713262 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 2017 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. false false false false false false false false true 15184 15184 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. 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 true true 15753384 15753384 3687062 1668088 2018974 582503 552225 30278 43278491 28769760 14508731 9785449 9785449 42096816 ALTERNATIVE INVESTMENTS 200334486 F 200334486 0 DEFERRED LIABILITY EXEC SERP 2589433 2589433 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 XIII 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 Investments 85160766 Europe (Including Iceland and Greenland) Investments 7698550 92859316 92859316 true false true true true false true ECONOMIC DEVELOPMENT CORP OF ELKHART 300 NIBCO PKWY STE 201 ELKHART IN 46516 351973845 501(c)(3) 10000 CASH GENERAL SUPPORT PROJECT LEAD THE WAY 3939 PRIORITY WAY SOUTH DR STE 400 INDIANAPOLIS IN 46530 141816385 501(C)(3) 30000 CASH GENERAL SUPPORT 2 0 SCHOLARSHIPS/TUITION REIMBURSEMENT 480 703682 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 1228679 0 15395 0 3960 0 10800 0 20763 0 1279597 0 0 PHILIP A NEWBOLD CEO (Left 10/31/17) 807254 0 215000 0 688699 0 217827 0 15415 0 1944195 0 135543 0 JEFFREY P COSTELLO CFO/Asst. Treasurer 459929 0 108072 0 29601 0 159176 0 19589 0 776367 0 0 0 MICHAEL O'NEIL Left in 2017 308170 0 31195 0 25362 0 389882 0 13001 0 767610 0 0 0 KREG GRUBER COO\CEO Begining 11/1/17 515723 0 111282 0 13752 0 159087 0 21426 0 821270 0 0 0 DANIELLE GAGLIANO CHIEF STRATEGY & PLANNING 0 0 0 0 368731 0 0 0 20698 0 389429 0 329335 0 STEVEN ELLER Cheif Human Resource Officer 281525 0 63088 0 8605 0 46849 0 22330 0 422397 0 0 0 DIANE MAAS Chief Bus Dev & Plan Officer 286638 0 52395 0 8517 0 49612 0 13306 0 410468 0 0 0 MARK WARLICK Chief Information Officer 296020 0 57896 0 12421 0 48905 0 23905 0 439147 0 0 0 SHELLY HARKINS CHIEF MEDICAL OFFICER 0 0 0 0 328726 0 0 0 20883 0 349609 0 328726 0 SCOTT ESHOWSKY Medical Information Officer 358589 0 29379 0 500 0 7452 0 23395 0 419315 0 0 0 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 256739 0 55242 0 7338 0 10800 0 23610 0 353729 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, PHIL NEWBOLD, AND KREG GRUBER. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: VIVIAN SALLIE, LARRY HARDING, JESSE HSIEH, MD, TOM CASSADY, JR, AND TRACY GRAHAM. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: J. SCOTT TROEGER, VIVIAN SALLIE, LARRY HARDING, JESSE HSIEH, MD, TOM CASSADY JR, TRACY GRAHAM, PHILIP NEWBOLD, AND KREG GRUBER. PART I, LINE 4A SEVERANCE WAS PAID AND/OR ACCRUED FOR IN 2017 FOR THE FOLLOWING INDIVIDUALS: . SHELLY HARKINS, $328,726 . DANIELLE GAGLIANO, $240,248 . MICHAEL O'NEIL, $311,195 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 2017, REFLECTED IN COLUMN (B)(III): . PHIL NEWBOLD, $135,543 . DANIELLE GAGLIANO, $128,483 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 . STEVEN ELLER, $36,049 . MARK WARLICK, $37,448 . DIANE MAAS, $34,839 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 . MICHAEL O'NEIL, $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-MANAGMENT 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 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 356311914 000000000 2016-08-18 50000000 CONSTRUCT CHILDREN'S HOSPITAL false false false A 0 0 50000000 0 0 0 285000 0 0 49715000 0 0 2017 false false true true A false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true A false true false false true false 0 false 0 false true A true PART II, LINE 3, COLUMN A THE DIFFERENCE BETWEEN THE TOTAL PROCEEDS OF THE ISSUE AND THE ISSUE PRICE IS INVESTMENT EARNINGS. FORM 990, PART VI SECTION A, LINE 1B Tracy Graham and Ron Fenech 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 A, LINE 7B SEE PART VI, SECTION A, LINE 7A DISCLOSURE 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 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. 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 $ 148,213,770 WRITE OFF INTER COMPANY ELKHART GENERAL HOSPITAL $6,147,710 WRITE OFF INTER COMPANY BEACON MEDICAL GROUP $ -98,254,109 WRITE OFF INTER COMPANY BEACON HEALTH VENTURES $ -1,784 ROUNDING VARIANCE $6 TOTAL $ 56,105,593 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:780171 FORM 990 PART IX LINE 11G DESCRIPTION:EQUIPMENT RENTAL & MAINTENANCE TOTAL FEES:16305922 FORM 990 PART IX LINE 11G DESCRIPTION:RADIOLOGY FEES TOTAL FEES:49204 FORM 990 PART IX LINE 11G DESCRIPTION:LAB READING FEES TOTAL FEES:306224 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:3896157 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:4668933 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:2925314 Community Occupational Medicine 22818 Old US 20 Elkhart IN 46516 352073758 Medical Cent IN 7280335 2633372 BHS CHA ACO LLC 53842 Generations Dr South Bend IN 46635 462860087 ACO IN 77466 -645727 BHS Beacon Health LLC 615 N MICHIGAN ST SOUTH BEND IN 46601 320541809 MEDICAL SRVCS IN 0 394525 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 BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN BHS C 25027258 10754147 1.00000 true BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHGIAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI BHS C 366225 3647285 1.00000 true true true true false false false false false true true true true true true true true true true Elkhart General Hospital c 6147710 WriteoffInterco Beacon Medical Group c 98254109 WriteoffInterco Memorial Hospital South Bend b 148213770 WriteoffInterco Memorial Hospital South Bend j 1149846 Actual Charges Memorial Hospital South Bend l 34473755 Actual Charges Beacon Health Ventures l 1928847 Actual Charges Beacon Medical Group l 11013280 Actual Charges Beacon Health Foundation l 159982 Actual Charges Elkhart General Hospital l 22518601 Actual Charges Beacon Health Foundation n 1085416 Actual Charges Memorial Hospital South Bend r 148250370 Actual Charges Elkhart General Hospital r 84500000 Actual Charges Elkhart General Hospital p 69115930 Actual Charges Beacon Medical Group p 113153875 Actual Charges Beacon Health Foundation p 674194 Actual Charges Beacon Health Ventures p 6613173 Actual Charges Memorial Hospital South Bend p 90100772 Actual Charges Memorial Hospital South Bend q 125667578 Actual Charges Elkhart General Hospital q 13287749 Actual Charges Beacon Health Ventures q 4837421 Actual Charges Beacon Health Foundation q 1503066 Actual Charges Beacon Medical Group q 28280807 Actual Charges Beacon Health Foundation c 1051711 Actual Charges Beacon Medical Group k 76636 Actual Charges Beacon Medical Group j 2442723 Actual Charges