2016-11-10T12:49:12-06:00 2015-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2015-01-01 351536129 Memorial Health Foundation Inc % JEFFREY COSTELLO MEMO 5746473549 615 N Michigan Street South Bend IN 46601 JEFFREY COSTELLO CFO 5746473549 2016-11-09 true JACOB J ZEHNDER P01564049 3128792702 2015 2017-02-10 21:41:12Z Philip Newbold 615 N Michigan Street South Bend IN 46601 11776549 false X www.qualityoflife.org X 1982 IN SEE MISSION STATED IN PART III, LINE 1 24 22 0 0 0 2853929 4131246 0 0 803061 916444 1912 2015 3658902 5049705 723692 5827031 0 0 22442 250 0 0 604754 1194021 1215613 1940155 7042894 1718747 -1993189 30081483 26972256 83410 118838 29998073 26853418 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 5853565 5827031 2015 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, INC. ("BMG"), Memorial Health Foundation, INC. ("MHF") and Beacon Health Ventures, INC. ("BHV"), collectively referred to as the "System". Memorial Health Foundation, Inc. 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. Memorial Health Foundation's mission is to support the work of Beacon Health System by inspiring generosity and commitment to our cause. MHF 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. Memorial 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. Memorial Health Foundation 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 Beacon 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 Memorial 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 2015, fund raising at Memorial 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: " Memorial Children's Hospital " The Memorial Neighborhood Health Centers " Memorial HealthWorks! Kids' Museum " Spiritual Care Services " Staff Education " Direct Mail Fundraising Funds available at MHF to support Memorial's mission as of December 31, 2015: Memorial Hospital & Health System $1,261,926 Memorial Children's Hospital $4,582,118 Stewarding Resources: In 2015, funds from Memorial Health Foundation went to support the following areas at Beacon: Memorial Hospital & Health System: Memorial BrainWorks $ 52,506 Memorial Regional Cancer Center $ 25,078 Pfeil Innovation Center $ 12,303 Staff Education $ 59,309 Support Services $ 4,376 System Priorities $ 23,886 Memorial Children's Hospital: Memorial Children's Hospital $ 5,309,906 Pediatric Emotional Support Child Life, Social Services, etc. $ 22,419 HealthWorks! Kids' Museum $ 94,297 Newborn Intensive Care Unit $ 128,091 Pediatric Cancer and Blood Disorders Clinic $ 33,071 Sunburst Races $ 24,125 5853565 true true false false false false false false false true true true false false true false 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 24 22 false false false false true true true true true false false true true true true true false false false false IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Carmi Murphy Director 2.0 0.0 X 0 0 0 Scott A Brewer Director 2.0 0.0 X 0 0 0 Timothy P Firestone Director 2.0 0.0 X 0 3539 0 Michael Garatoni Treasurer 2.0 0.0 X X 0 0 0 Melissa L Grubb Director 2.0 0.0 X 0 3422 0 Margaret Kernan Director (term end 02/2015) 2.0 0.0 X 0 0 0 Joseph M Hart Director 2.0 0.0 X 0 0 0 Charles Simon Director 2.0 0.0 X 0 2731 0 Otha Reese Director 2.0 0.0 X 0 1955 0 Sandra Brown MD Director 2.0 0.0 X 0 2164 0 Shannon Cullinan Director 2.0 0.0 X 0 3539 0 Greta Roemer Lewis Director 2.0 0.0 X 0 5172 0 Colleen Morrison MD Director 2.0 40.0 X 0 276790 31983 Michael Steinberg MD Director 2.0 40.0 X 0 675678 34739 Kathleen Toothaker Vice Chair 2.0 0.0 X X 0 2972 0 Emerson Spartz Director 2.0 0.0 X 0 0 0 Christopher Hickey Director 2.0 0.0 X 0 3539 0 Kurtis A Janowsky Secretary 2.0 0.0 X X 0 2620 0 Thomas Cassady Jr DIRECTOR 2.0 2.0 X 0 5788 0 Paqui Kelly Director 2.0 0.0 X 0 0 0 Brad Beutter Chair 2.0 0.0 X X 0 0 0 Ray Gans Director (term end 03/2015) 2.0 2.0 X 0 0 0 Julia J Schwartz Director 2.0 0.0 X 0 0 0 Michael J Vogel Director 2.0 0.0 X 0 0 0 James Hill Director 2.0 0.0 X 0 2949 0 Stephanie Schurz Director 2.0 0.0 X 0 0 0 Philip A Newbold CEO 2.0 46.0 X 0 1255794 186041 Jeffrey P Costello CFO/Asst. Treasurer 2.0 46.0 X 0 598975 180373 Kellie Porter Asst. Secretary 40.0 2.0 X 0 223971 58767 0 3071598 491903 0 false true false 0 X 4131246 96007 4131246 0 394867 394867 0 0 0 0 0 7248420 6726844 521576 521577 521577 0 0 0 OTHER INCOME - REBATES AND REFUNDS 561000 1424 1424 OTHER INCOME - COMMERCE CARD 561000 591 591 2015 5049705 2015 916444 5789367 5789367 37664 37664 0 0 0 0 0 0 250 250 0 0 0 348 348 0 0 0 13641 11907 1734 0 9297 5881 3416 2175 2175 0 35277 18157 17120 31931 5579 26352 0 3419 1760 1659 0 0 10076 10076 12068 12068 CONTRACT LABOR 690958 19742 345479 325737 CORPORATE ALLOCATION 237720 6792 118860 112068 CULTIVATION AND STEWARDSHIP 67804 67804 DUES/SUBSCRIPTIONS 56348 29003 27345 44551 23032 21519 7042894 5853565 584575 604754 0 0 6634082 3458118 1533440 2963028 0 0 0 0 0 0 0 0 0 0 0 0 429104 411835 25181 17269 18191501 13655487 3697279 6865819 0 0 0 0 0 12535 30081483 26972256 83410 23098 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 95740 83410 118838 X 21179737 19773998 8627666 6888750 190670 190670 29998073 26853418 30081483 26972256 X -1993189 -1365746 214280 X false true X true false X 2225724 1549546 2215153 2853929 4131246 12975598 0 0 2225724 1549546 2215153 2853929 4131246 12975598 670279 12305319 195423 548735 308482 565447 394867 2012954 0 1955 5300 7255 14995807 27533 0.82058 0.81716 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 29619029 4093832 -1367472 5789367 26556022 27642755 2833644 -142883 714487 29619029 24661171 2180336 1785965 984717 27642755 22198822 1501904 1884305 923860 24661171 21769701 2155236 -543657 1182458 22198822 0.73340 0.00720 0.25940 false false 429104 411835 17269 17269 0 0 DUE TO AFFILIATES-BHS 76554 DUE TO AFFILIATES-BMG 19186 95740 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 Memorial Health Foundation did not have a footnote addressing FIN 48 (ASC 740) liabilities for uncertain tax positions in it's consolidated financial statements. Memorial Health Foundation does not have any uncertain tax positions recorded during fiscal year. SCH. D, PART V, LINE 1 MHF BOOKED A PLEDGE OF $500,000 IN 2014 THAT WAS INCLUDED ON ITS AUDITED FINANCIAL STATEMENTS, AND WHICH MHF UNBOOKED IN 2015 BASED ON INFORMATION RECEIVED FROM MHF IN 2015. FOR MORE ACCURATE REPORTING, MHF DID NOT INCLUDE THE PLEDGE ON ITS 2014 FORM 990. THIS RESULTED IN A DIFFERENCE FROM ITS AUDITED FINANCIAL STATEMENTS IN 2014 AND 2015 OF $500,000. Central America and the Caribbean Investments 3799142 3799142 3799142 true false true false false false true Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(c)(3) 5742757 General Support Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 501(c)(3) 46610 Distributions 2 GRANTS FOR CHILDREN 4135 37664 FMV TOYS,ELECTRONICS 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 2015. 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 0 767590 0 295000 0 193204 0 165268 0 20773 0 1441835 0 140103 Jeffrey P Costello CFO/Asst. Treasurer 0 432410 0 137200 0 29365 0 160505 0 19868 0 779348 0 0 Colleen Morrison MD Director 0 256060 0 20189 0 541 0 10600 0 21383 0 308773 0 0 Michael Steinberg MD Director 0 674559 0 219 0 900 0 10600 0 24139 0 710417 0 0 Kellie Porter Asst. Secretary 0 167748 0 47425 0 8798 0 32373 0 26394 0 282738 0 0 PART I, LINE 3 - COMPENSATION REVIEW PROCESS MEMORIAL 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 2015, REFLECTED IN COLUMN (B)(III): PHIL NEWBOLD $140,103 IN MARCH 2015. THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2015 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: PHIL NEWBOLD, $142,540 JEFFREY COSTELLO, $77,377 KELLIE PORTER, $23,359 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 2015 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: JEFFREY COSTELLO, $65,000 X 8324 Cost Donated Propert X 1748 58343 Fair Market Value X Toys, electronics, etc. 43 23875 Cost Donated Propert X Gift Cards, Coupons, etc. 501 5465 Cost Donated Propert false false true SCHEDULE M, PART I For 2015, 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 Memorial 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 MEMORIAL HEALTH FOUNDATION (MHF) USES A THIRD PARTY TO PROCESS THE SALE OF GIFTS OF STOCK. MHF IS NOTIFIED BY THE DONOR THAT THEY ARE GOING TO MAKE A STOCK GIFT. MHF 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 MHF A CHECK. THE CHECK IS DEPOSITED AND RECORDED AS A CONTRIBUTION. CORE FORM, PART V, QUESTION 1A & 2A Employees are paid by Beacon Health System, Inc.(EIN 45-3864076) and expensed to Memorial 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 MEMORIAL 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 and WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT OVER 425 STATEMENTS AND DID 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 JANUARY, 2016 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2016, TWENTY-TWO 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, QUESTION 14 Memorial Health Foundation's board of directors has not specifically adopted a document retention and destruction policy, however in practice it follows the related policy of its sibling, Beacon Medical Group. CORE FORM, PART VI, SECTION B, LINE 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF MEMORIAL 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 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. 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 VIII, QUESTION 1F MHF BOOKED A PLEDGE OF $500,000 IN 2014 THAT WAS INCLUDED ON ITS AUDITED FINANCIAL STATEMENTS, AND WHICH MHF UNBOOKED IN 2015 BASED ON INFORMATION RECEIVED FROM MHF IN 2015. FOR MORE ACCURATE REPORTING, MHF DID NOT INCLUDE THE PLEDGE ON ITS 2014 FORM 990. THIS RESULTED IN A DIFFERENCE FROM ITS AUDITED FINANCIAL STATEMENTS IN 2014 AND 2015 OF $500,000. CORE FORM, PART XI, LINE 9 Other changes in fund balance: Writeoff of Intercompany BHS $174,283 Writeoff of Intercompany BMG 95,434 Writeoff of Intercompany MHSB (12,058) Change in Grube Trust (43,378) Total $214,280 Beacon Medical Group Inc 615 N Michigan St South Bend IN 46601 351536132 Phy Practices IN 501(c)(3) 9 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) 11AI NA false MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(c)(3) 11D III-O 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 P 170909 ACTUAL CHARGES Beacon Medical Group Inc C 95434 ACTUAL CHARGES Memorial Hospital of South Bend Inc S 73489 ACTUAL CHARGES Memorial Hospital of South Bend Inc B 5742757 ACTUAL CHARGES Memorial Hospital of South Bend Inc P 59384 ACTUAL CHARGES