2014-11-13T21:07:25-06:00 2013-12-31 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 4000 INDIANAPOLIS IN 46204 990 2013-01-01 351536129 Memorial Health Foundation Inc % JEFFREY COSTELLO MEMO 5746473549 615 N Michigan Street Suite South Bend IN 46601 JEFFREY COSTELLO CFO 2014-11-13 ANGELA M MOORE P00244342 2013 2015-11-30 17:44:51Z Philip Newbold 615 N Michigan Street South Bend IN 46601 3190535 false X www.qualityoflife.org X 1982 IN SEE MISSION STATED IN PART III, LINE 1 25 22 0 0 0 0 1549546 2215153 0 0 599565 337091 17080 3162 2166191 2555406 978859 1018213 0 0 518343 1087 0 0 322823 544026 1011885 2041228 2031185 124963 524221 24619806 28141981 145569 83048 24474237 28058933 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 1044718 1018213 3162 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, Memorial Health Foundation, and Beacon Health Ventures, Inc., collectively referred to as the "System". Memorial Health Foundation, Inc., (MHF) 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 (MHF) 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 2013, 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, 2013: Memorial Hospital & Health System $1,237,512 Memorial Children's Hospital $4,088,750 Stewarding Resources In 2013, funds from Memorial Health Foundation went to support the following areas at Memorial: Memorial Hospital & Health System Memorial BrainWorks $ 118,212 Memorial Regional Cancer Center $ 8,368 Community Outreach $ 21,790 Memorial Leighton Heart & Vascular Center $ 9,047 Memorial Neighborhood Health Centers $ 25,000 Pfeil Innovation Center $ 47,017 Reach Out Club $ 41,847 Staff Education $ 61,167 Areas of Greatest Need at Memorial $ 26,873 Memorial Children's Hospital Memorial Children's Hospital $ 402,677 Pediatric Emotional Support (Child Life, Social Services, etc.) $ 15,763 Developmental Pediatrics $ 16,512 HealthWorks! Kids' Museum $ 147,290 Newborn Intensive Care Unit $ 39,431 Pediatric Cancer and Blood Disorders Clinic $ 916 1044718 true true false false false false false false false true true true false false false 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 25 22 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 X Carmi Murphy Director 2.0 0.0 X 0 0 0 John C Kerr Director 2.0 0.0 X 0 1714 0 Najeeb A Khan Officer/Chair thru Mar13 2.0 0.0 X 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 2360 0 Michael Garatoni Director 2.0 0.0 X 0 0 0 Melissa L Grubb Director 2.0 0.0 X 0 0 0 James Laing Director 2.0 0.0 X 0 0 0 William Schmuhl Jr Director 2.0 0.0 X 0 1738 0 Margaret Kernan Director 2.0 0.0 X 0 2482 0 Leigh Morris Officer/Treasurer 2.0 0.0 X X 0 0 0 Joseph M Hart Director 2.0 0.0 X 0 0 0 Charles Simon Director thru Mar13 2.0 0.0 X 0 0 0 Deborah Barton-Grant Director thru Mar13 2.0 0.0 X 0 2097 0 Deborah Cafiero Director thru Mar13 2.0 0.0 X 0 0 0 Otha Reese Director thru Mar13 2.0 0.0 X 0 1738 0 Sandra Brown MD Director thru Mar13 2.0 0.0 X 0 1924 0 Shannon Cullinan Director thru Mar13 2.0 0.0 X 0 3146 0 Greta Roemer Lewis Director 2.0 0.0 X 0 4598 0 Colleen Morrison MD Director 2.0 40.0 X 0 240650 34224 Michael Steinberg MD Director 2.0 40.0 X 0 655767 22541 Katie Toothaker Director 2.0 0.0 X X 0 2642 0 Emerson Spartz Director 2.0 0.0 X 0 0 0 Christopher Hickey Director 2.0 0.0 X 0 3146 0 David Hornback MD Director 2.0 40.0 X 0 593569 38398 Kurtis A Janowsky Director 2.0 0.0 X 0 0 0 Thomas Cassady Jr Vice Chair 2.0 2.0 X X 0 0 0 Paqui Kelly Director 2.0 0.0 X 0 0 0 Brad Beutter Director 2.0 0.0 X 0 0 0 Ray Gans Director 2.0 0.0 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 Philip A Newbold CEO 2.0 45.0 X 0 2465079 198050 Jeffrey P Costello CFO/Asst. Treasurer 2.0 45.0 X 0 638830 105422 Kellie Porter Asst. Secretary 40.0 2.0 X 0 179593 47847 0 4801073 446482 0 false true false 0 2215153 34817 2215153 0 308482 308482 0 0 0 0 0 663738 635129 28609 28609 28609 0 0 0 OTHER INCOME - REBATES AND REFUNDS 611600 1416 1416 OTHER INCOME - COMMERCE CARD 611600 359 359 MISC. INCOME 611600 1387 1387 3162 2555406 3162 0 337091 986345 986345 31868 31868 0 0 0 0 0 0 1087 687 400 0 0 0 221 221 0 0 0 64146 63740 406 0 58137 36416 21721 5236 5236 0 8155 4927 3228 15245 2009 13236 0 2169 1310 859 0 0 36868 36868 90156 90156 CONTRACT LABOR 481837 19274 279465 183098 CORPORATE ALLOCATION 180779 7231 104852 68696 DUES/SUBSCRIPTIONS 28391 17153 11238 RECOGNITION 9706 5864 3842 30839 14740 16099 2031185 1044718 663644 322823 0 0 4164748 5676806 140258 407727 0 0 0 0 0 0 0 0 0 0 0 0 416856 384619 69104 32237 18061943 18853095 2183753 3172116 0 0 0 0 0 0 24619806 28141981 91982 51985 0 0 53587 31063 0 0 0 0 0 0 0 0 0 0 0 0 145569 83048 X 19144727 21384000 5138840 6484263 190670 190670 24474237 28058933 24619806 28141981 X 524221 2065681 994794 X false true X true false X 1334217 1436553 2225724 1549546 2215153 8761193 127810 100 268 20176 3162 151516 0 0 0 1462027 1436653 2225992 1569722 2218315 8912709 133141 67601 370311 168329 180409 919791 0 133141 67601 370311 168329 180409 919791 7992918 201715 113552 195423 548735 308482 1367907 10410 10410 212125 113552 195423 548735 308482 1378317 0 1955 5300 7255 1674152 1550205 2423370 2123757 2526797 10298281 0.77614 0.76098 0.13384 0.15108 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 24661171 2180336 1785965 984717 27642755 22198822 1501904 1884305 923860 24661171 21769701 2155236 -543657 1182458 22198822 22665989 1296194 1929600 4122082 21769701 20595396 1076924 3137353 2143684 22665989 0.75850 0.00690 0.23460 false false 416856 384619 32237 32237 0 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. Central America and the Caribbean Investments 2591656 2591656 2591656 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) 820391 General Support Beacon Medical Group Inc 615 N Michigan Street South Bend IN 46601 351536132 501(c)(3) 46500 General support Beacon Health System Inc 615 N Michigan St South Bend IN 46601 362934689 501(c)(3) 113574 Distributions 3 Grants for Children 1000 31868 FMV Ipads, other Schedule I, Part I 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. false true false false false false false Philip A Newbold CEO 0 647623 0 644645 0 1172811 0 173788 0 24262 0 2663129 0 134645 Jeffrey P Costello CFO/Asst. Treasurer 0 329330 0 214200 0 95300 0 89178 0 16244 0 744252 0 0 Colleen Morrison MD Director 0 218196 0 22050 0 404 0 9002 0 25222 0 274874 0 0 Michael Steinberg MD Director 0 655167 0 0 0 600 0 7967 0 14574 0 678308 0 0 David Hornback MD Director 0 592189 0 0 0 1380 0 10200 0 28198 0 631967 0 0 Kellie Porter Asst. Secretary 0 137964 0 33750 0 7879 0 23178 0 24669 0 227440 0 0 PART 1, 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. Phil Newbold is vested because he is over the age of 62. Phil was paid $134,645 in March 2013. X Toys, electronics, etc. 1376 30263 Cost Donated Propert X Beautification Project 21 2949 Cost Donated Propert X Gift cards, coupons, etc. 160 1605 Cost Donated Propert false false false Sch. M, Question 31 Memorial Health Foundation has a written process for review of all gifts, it does not speak specifically to non-standard gifts, however there is a review process in place. 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 Membership in the Corporation shall be divided into two classes: Corporate and Personal. The Corporate Member shall be the Beacon Health System, Inc. The Personal Members shall be the directors of the Corporation. 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. 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. The forms and schedules are reviewed by the Controller and CFO. Subsequent to those steps, the organization engaged Ernst & Young to review the completed Form 990 and appropriate schedules. Prior to filing the return, 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 250 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, 2014 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2014, TWENTY 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, Line 15a & 15b Beacon Health System, Inc. has an extensive examination that is conducted,for Vice President and higher, using comparable market data that is then reviewed by an independant consultant hired by, and reporting to, the Board of Directors. Recommendations are presented to the Board for deliberation and final decision. Deliberation and final decision are performed by the independent members of the Board. Core 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. Core Form, Part XI, Line 9 Other changes in fund balance: Writeoff of Intercompany BHS $812,669 Writeoff of Intercompany BMG 53,854 Writeoff of Intercompany MHSB (21,533) Change in Grube Trust 149,804 Total $994,794 Beacon Medical Group Inc (fka MHS) 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) 11C III-FI NA false MEMORIAL ENDOWMENT FUND FOR MEM HOSP 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 true true true true true true true true true Memorial Hospital of South Bend Inc B 820391 CASH TRANSFER Beacon Medical Group Inc C 53854 ACCT ACTIVITY Beacon Medical Group Inc Q 169016 CASH TRANSFER Beacon Medical Group Inc P 65948 CASH TRANSFER Memorial Hospital of South Bend Inc S 63047 CASH TRANSFER Beacon Medical Group Inc S 156922 Actual Charges