2017-11-14T21:11:35-06:00 2016-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2016-01-01 351536129 Beacon Health Foundation Inc % JEFFREY COSTELLO BEAC 5746473549 615 N Michigan Street South Bend IN 46601 JEFFREY COSTELLO CFO 5746473549 2017-11-13 true JACOB J ZEHNDER P01564049 3128792702 73.247.118.182 36964520173185000072 2017-11-14 P 30D9463AFD5BF0034828D3D95CCBE818483E36C7 AA66391A3EB419599D985CB7941CE455993313B6 2016 2021-01-29 14:40:06Z Philip Newbold 615 N Michigan Street South Bend IN 46601 5211806 false X www.qualityoflife.org X 1982 IN SEE MISSION STATED IN PART III, LINE 1 10 10 0 0 0 4131246 3875821 0 0 916444 493847 2015 2979 5049705 4372647 5827031 2690613 0 0 250 0 0 0 762604 1215613 1537483 7042894 4228096 -1993189 144551 26972256 33906074 118838 3755 26853418 33902319 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 2703252 2690613 2979 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 Foundations 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: Every day, the associates of Beacon Health System care for those most in need of high quality, specialized medical care. From infants born four months early, to children with cancer, to mothers, fathers, sisters, brothers and friends who have faced a serious injury, we are always here for every member of our community. 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 at Memorial 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. At Beacon Health Foundation, every gift matters and is an investment into our mission and our community. We treat that investment with the same level of care and concern that Beacon Health System shows each one of its patients. Inspiring Investment: In 2016, 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, focusing on: - Beacon Childrens Hospital - The Memorial Neighborhood Health Centers - HealthWorks! Kids Museum - Spiritual Care Services - Staff Education - Direct Mail Fundraising Funds available at BHF to support Memorials mission as of December 31, 2016: Memorial Hospital & Health System $ 2,757,531 Beacon Childrens Hospital $ 4,366,077 Elkhart General Hospital $ 448,175 Stewarding Resources In 2016, funds from Beacon Health Foundation went to support the following areas at Beacon: Memorial Hospital & Health System BrainWorks $ 32,272 Cancer Center $ 558,586 Continuous Disbursement $ 21,198 Community Health Enhancement $ 7,228 Memorial Epworth Center $ 1,090 Family Medicine Residency $ 50,000 Staff Education $ 89,625 Support Services $ 8,525 System Priorities $ 52,491 Beacon Childrens Hospital Beacon Childrens Hospital $ 1,505,261 Pediatric Emotional Support (Child Life, Social Services, etc.) $ 154,820 HealthWorks! Kids Museum $ 58,151 Newborn Intensive Care Unit $ 20,013 Pediatric Cancer and Blood Disorders Clinic $ 700 Pediatric Intensive Care Unit $ 4,665 Sunburst Races $ 10,000 Elkhart General Hospital EGHF Legacy Funds $ 71,282 2703252 true true false false false false false false false true true true false false false 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 false false false false false X 10 10 true false true false true true true true true false false true true true true true true false false false IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Scott A Brewer Director thru Sept 2016 2.0 0.0 X 0 0 0 Timothy P Firestone Director thru Sept 2016 2.0 0.0 X 0 3539 0 Michael Garatoni Treasurer thru Sept 2016 2.0 0.0 X X 0 0 0 Melissa L Grubb Director thru Sept 2016 2.0 0.0 X 0 3422 0 Joseph M Hart Director 2.0 0.0 X 0 202 0 Charles Simon Director thru March 2016 2.0 0.0 X 0 2731 0 Otha Reese Director thru March 2016 2.0 0.0 X 0 1955 0 Sandra Brown MD Director thru March 2016 2.0 0.0 X 0 2164 0 Shannon Cullinan Director 2.0 0.0 X 0 2972 0 Greta Roemer Lewis Director thru Sept 2016 2.0 0.0 X 0 5172 0 Colleen Morrison MD Director thru Sept 2016 2.0 40.0 X 0 255059 33813 Kathleen Toothaker Vice Chair thru Sept 2016 2.0 0.0 X X 0 2972 0 Christopher Hickey Director thru mid 2016 2.0 0.0 X 0 3539 0 Kurtis A Janowsky Secretary/Treasurer 2.0 0.0 X X 0 2620 0 Thomas Cassady Jr DIRECTOR thru mid 2016 2.0 2.0 X 0 6004 0 Paqui Kelly Director thru Sept 2016 2.0 0.0 X 0 0 0 Brad Beutter Chair 2.0 0.0 X X 0 0 0 Julia J Schwartz Director thru Sept 2016 2.0 0.0 X 0 0 0 Michael J Vogel Director thru Sept 2016 2.0 0.0 X 0 0 0 James Hill Director thru Sept 2016 2.0 0.0 X 0 2949 0 Stephanie Schurz Director thru Sept 2016 2.0 0.0 X 0 2030 0 Carmen C Murphy Director thru Sept 2016 2.0 0.0 X 0 0 0 Jacqueline Barton Director 2.0 0.0 X 0 0 0 Art Decio Director 2.0 0.0 X 0 0 0 Diane Krill Vice Chair 2.0 0.0 X X 0 149 0 Todd Schurz Chair 2.0 0.0 X X 0 2030 0 Tom Shoff Director 2.0 0.0 X 0 0 0 Carl Tiedemann Director 2.0 0.0 X 0 0 0 Philip A Newbold CEO/President 2.0 46.0 X 0 1206426 172549 Jeffrey P Costello CFO/Asst. Treasurer 2.0 46.0 X 0 575784 176531 Kellie Porter Asst. Secretary 40.0 2.0 X 0 238278 54850 0 2319997 437743 0 false true false 0 3875821 79392 3875821 0 400447 400447 0 0 0 0 0 932560 839159 93401 93400 93400 0 0 0 0 0 0 0 0 0 OTHER INCOME - REBATES AND REFUNDS 561000 1813 1813 OTHER INCOME - COMMERCE CARD 561000 1166 1166 2979 4372647 2979 493847 2645907 2645907 44706 44706 0 0 0 0 0 0 0 0 0 0 348 348 0 0 0 17924 13661 4263 0 20700 11753 8947 2435 2435 0 35277 18085 17192 24963 6880 18083 0 5247 2690 2557 0 0 10045 10045 12845 12845 CONTRACT LABOR 811567 10145 410856 390566 CORPORATE ALLOCATION 199549 2494 101021 96033 RECOGNITION 237232 121619 115613 DUES/SUBSCRIPTIONS 67790 34753 33037 91561 15248 76313 4228096 2703252 762240 762604 0 0 3458118 4977282 2963028 2873824 0 0 0 0 0 0 0 0 0 0 0 0 178347 140886 17269 37461 13655487 17879379 6865819 8138128 0 0 0 0 12535 0 26972256 33906074 23098 3755 0 0 0 0 0 0 0 0 0 0 0 0 0 0 95740 0 118838 3755 X 19773998 25008299 6888750 8628350 190670 265670 26853418 33902319 26972256 33906074 X 144551 705488 6198862 X false true X true false X 1549546 2215153 2853929 4131246 3875821 14625695 0 0 1549546 2215153 2853929 4131246 3875821 14625695 1904557 12721138 548735 308482 565447 394867 400447 2217978 0 5300 5300 16848973 30244 0.75501 0.82060 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 26556022 9605449 339397 2645907 33854961 29619029 4093832 -1367472 5789367 26556022 27642755 2833644 -142883 714487 29619029 24661171 2180336 1785965 984717 27642755 22198822 1501904 1884305 923860 24661171 0.73730 0.00780 0.25490 false false 19046 607 18439 159301 140279 19022 37461 ALTERNATIVE INVESTMENTS 8138128 F 8138128 0 0 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, 2016 or 2015. Central America and the Caribbean 0 0 Investments 3650784 0 0 0 0 3650784 3650784 false false true true false false true Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(c)(3) 1895615 To support hospital operations and capital purchases Beacon Medical Group Inc 615 N Michigan Street South Bend IN 46601 351536132 501(c)(3) 61839 To support BMG operations and capital purchases Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 501(c)(3) 620066 To support home care operations and capital purchases Elkhart General Hospital 615 N Michigan Street South Bend IN 46601 350877574 501(c)(3) 68387 To support home care operations and capital purchases 4 Grants for Children 3955 44706 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 2016. 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 0 769777 0 235000 0 201649 0 0 0 0 0 1206426 0 142540 Jeffrey P Costello CFO/Asst. Treasurer 0 438769 0 107800 0 29215 0 0 0 0 0 575784 0 0 Colleen Morrison MD Director thru Sept 2016 0 243879 0 10666 0 514 0 0 0 0 0 255059 0 0 Kellie Porter Asst. Secretary 0 168593 0 43265 0 26420 0 0 0 0 0 238278 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 2016, REFLECTED IN COLUMN (B)(III): PHIL NEWBOLD $143,361 IN MARCH 2016. THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2016 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: PHIL NEWBOLD, $135,317 JEFFREY COSTELLO, $74,414 KELLIE PORTER, $24,420 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 2016 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: JEFFREY COSTELLO, $65,000 X 15375 Cost Donated Propert X 753 34686 Fair Market Value X Toys, electronics, etc. 8458 28056 Cost Donated Propert X Gift Cards, Coupons, etc. 60 1275 Cost Donated Propert false false true SCHEDULE M, PART I For 2016, 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 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. SCHEDULE M, PART I, LINE 32A BEACON HEALTH FOUNDATION (BHF) USES A THIRD PARTY TO PROCESS THE SALE OF GIFTS OF STOCK. BHF IS NOTIFIED BY THE DONOR THAT THEY ARE GOING TO MAKE A STOCK GIFT. BHF PROVIDES THE DONOR WITH THE ML ACCOUNT INFORMATION, SO THAT THE STOCK CAN BE TRANSFERRED. THE STOCK GIFTS ARE TRANSFERRED DIRECTLY TO MERRILL LYNCH (ML), ML SELLS THE STOCK AND SENDS BHF A CHECK. THE CHECK IS DEPOSITED AND RECORDED AS A CONTRIBUTION. Sch. O Disclosures, CORE FORM CORE FORM, PART III, QUESTION 2 IN OCTOBER 2016, ELKHART GENERAL HOSPITAL FOUNDATION (EGHF), A THIRD PARTY, WAS COMBINED INTO THE MEMORIAL HOSPITAL FOUNDATION, INC. (MHF). THE COMBINED OPERATIONS WERE RENAMED BEACON HEALTH FOUNDATION, INC. ('BHF'). ALL ASSETS AND LIABILITIES OF EGHF WERE ASSUMED BY BHF. BHF IS ORGANIZED PRIMARILY TO PROMOTE AND ENCOURAGE PHILANTHROPIC ACTIVITIES FOR THE SUPPORT OF THE CORPORATION AND ITS AFFILIATES. EGHF WAS ORGANIZED PRIMARILY TO SUPPORT EGH. EGHF COMBINED WITH BHF AS IT HAD A COMMON PURPOSE AND ALIGNMENT WITH BHF. THE ACTIVITIES OF BHF POST COMBINATION REMAIN SUBSTANTIALLY THE SAME AS ITS ACTIVITIES PRIOR TO THE COMBINATION; THEREFORE IT HAS ANSWERED 'NO' TO FORM 990, PART III, QUESTION 2. 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, QUESTION 2 STEPHANIE SCHURZ AND TODD SCHURZ: FAMILY RELATIONSHIP CORE FORM, PART VI, QUESTION 4 CHANGES TO ORGANIZATIONAL DOCUMENTS THE CORPORATIONS ARTICLES OF INCORPORATION WERE AMENDED EFFECTIVE OCTOBER 3, 2016 TO CHANGE THE NAME OF THE CORPORATION FROM MEMORIAL HEALTH FOUNDATION, INC. TO BEACON HEALTH FOUNDATION INC. THE CORPORATIONS BYLAWS WERE ALSO AMENDED EFFECTIVE SEPTEMBER 30, 2016 TO REFLECT THE NAME CHANGE TO BEACON HEALTH FOUNDATION, INC. AND TO INCORPORATE CHANGES AS A RESULT OF THE INTEGRATION OF ELKHART GENERAL HOSPITAL FOUNDATION (EGHF). THE CORPORATIONS MISSION NOW REFLECTS THE COMBINED MISSION OF THE TWO FOUNDATIONS WHICH IS TO OPERATE FOR THE BENEFIT OF THE ENTIRE BEACON HEALTH SYSTEM RATHER THAN SPECIFIC AFFILIATES. THE BYLAWS WERE ALSO UPDATED TO INCLUDE POWERS RESERVED TO THE SOLE MEMBER, BEACON HEALTH SYSTEM, INC., TO CHANGE THE NUMBER OF DIRECTORS SERVING ON THE BOARD, AND TO UPDATE THE POWERS AND RESPONSIBILITIES OF THE BOARD. 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 CORPORATIONS 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 346 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 CHAIMAN, 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 SYSTEMS KEY FINANCIAL EMPLOYEES THAT BEACONS FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT IN EARLY JANUARY, 2017 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2017, 20 DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST WOULD BE EXCLUDED FROM ALL REVIEW PROCEEDINGS. CORE FORM, PART VI, SECTION B, LINE 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF BEACON HEALTH FOUNDATION CONDUCTS THE REVIEW OF ALL COMPENSATION. VICE PRESIDENT AND HIGHER COMPENSATION IS DETERMINED AFTER AN EXTENSIVE EXAMINATION IS CONDUCTED USING COMPARABLE MARKET DATA AND THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. HUMAN RESOURCES CONDUCTS THE ANALYSIS AND MAKES RECOMMENDATIONS TO THE CEO WHO THEN MAKES THE RECOMMENDATIONS TO THE BOARD FOR APPROVAL. RECOMMENDATIONS ARE PRESENTED TO THE COMPENSATION COMMITTEE OF THE BEACON HEALTH SYSTEM, INC. BOARD FOR DELIBERATION AND FINAL DECISION. DELIBERATION AND FINAL DECISION ARE PERFORMED BY THE INDEPENDENT MEMBERS OF THE BOARD. CORE FORM, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. THE FINANCIAL STATEMENTS ARE DISTRIBUTED QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR THE BEACON HEALTH SYSTEM, INC. BONDS. CORE FORM, PART XI, LINE 9 OTHER CHANGES IN FUND BALANCE: WRITEOFF OF INTERCOMPANY BHS $ 381,505 WRITEOFF OF INTERCOMPANY MHSB 39,173 WRITEOFF OF INTERCOMPANY BHV 495 WRITEOFF OF INTERCOMPANY BMG 45 WRITEOFF OF INTERCOMPANY EGH (5,143) CHANGE IN GRUBE TRUST 11,858 DIABETES EDUCATION GIFT FROM EGHF 23,073 EGHF PERMANENTLY RESTRICTED NET ASSETS 75,000 EGHF TEMP RESTRICTED NET ASSETS 515,457 NET ASSETS FROM EGHF MERGER 5,157,399 TOTAL $ 6,198,862 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 61839 ACTUAL CHARGES Memorial Hospital of South Bend Inc B 1895615 ACTUAL CHARGES Memorial Hospital of South Bend Inc P 125576 ACTUAL CHARGES Memorial Hospital of South Bend Inc P 147224 ACTUAL CHARGES Elkhart General Hospital Inc B 68387 ACTUAL CHARGES