Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $6,818

• 1e · Government grants (contributions)

  $503,873

• 1f · All other contributions, gifts and grants

  $96,184

• 2a · Program service revenue: SUPPORT REVENUE

  total $364,085,651 · related or exempt $364,085,651

• 3 · Investment income

  total $16,737,333 · unrelated business -$1,157,276 · excluded $17,894,609

• 6a · Gross rents

  real property $4,000

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $4,000

• 6d · Net rental income or loss

  total $4,000 · excluded $4,000

• 7a · Gross sales of assets other than inventory

  securities $337,722,161

• 7b · Less cost or other basis and sales expenses

  securities $327,115,310 · other assets $7,767

• 7c · Gain or loss

  securities $10,606,851 · other assets -$7,767

• 7d · Net gain or loss

  total $10,599,084 · excluded $10,599,084

• 11a · Other revenue: SYSTEM ACCESS/USE REVENUE

  total $8,745,970 · unrelated business $8,745,970

• 11b · Other revenue: SETTLEMENTS

  total $42,501 · excluded $42,501

• 11c · Other revenue: MISCELLANEOUS

  total $7,156 · excluded $7,156

• 11d · All other revenue

  total $5,110 · excluded $5,110

• 11e · Other revenue, total

  $8,800,737

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $622 · program services $622

• 5 · Compensation of officers, directors and key employees

  total $11,139,677 · program services $45,412 · management and general $11,094,265

• 7 · Other salaries and wages

  total $224,924,997 · program services $122,244,702 · management and general $102,680,295

• 8 · Pension plan contributions

  total $9,418,774 · program services $5,637,011 · management and general $3,781,763

• 9 · Other employee benefits

  total $39,944,396 · program services $22,045,714 · management and general $17,898,682

• 10 · Payroll taxes

  total $16,273,215 · program services $8,699,291 · management and general $7,573,924

• 11b · Fees: legal

  total $2,855,113 · management and general $2,855,113

• 11c · Fees: accounting

  total $546,209 · management and general $546,209

• 11d · Fees: lobbying

  total $732,907 · management and general $732,907

• 11f · Fees: investment management

  total $1,802,108 · management and general $1,802,108

• 11g · Fees: other

  total $35,347,481 · program services $9,790,183 · management and general $25,557,298

• 12 · Advertising and promotion

  total $7,305,854 · program services $6,352,747 · management and general $953,107

• 13 · Office expenses

  total $12,794,017 · program services $1,019,075 · management and general $11,774,942

• 14 · Information technology

  total $6,418,616 · program services $3,488,460 · management and general $2,930,156

• 16 · Occupancy

  total $838,917 · program services $455,944 · management and general $382,973

• 17 · Travel

  total $2,636,770 · program services $1,048,154 · management and general $1,588,616

• 19 · Conferences, conventions and meetings

  total $849,240 · program services $315,931 · management and general $533,309

• 20 · Interest

  total $1,795,106 · program services $1,795,106

• 22 · Depreciation, depletion and amortization

  total $3,343,376 · program services $1,817,095 · management and general $1,526,281

• 24a · Other expenses: UNRELATED BUSINESS TAX

  total $36,661 · management and general $36,661

• 24b · Other expenses: PUBLICATIONS & SUBSCRIP

  total $939,198 · program services $887,723 · management and general $51,475

• 24c · Other expenses: DUES

  total $923,084 · program services $461,303 · management and general $461,781

• 24d · Other expenses: FEDERAL EXCISE TAX

  total $747,539 · management and general $747,539

• 24e · All other expenses

  total $1,354,995 · program services $456,286 · management and general $898,709

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,339,619 · end of year $35,054,971

• 2 · Savings and temporary cash investments

  beginning of year $118,276,666 · end of year $130,531,416

• 3 · Pledges and grants receivable

  end of year $63,991

• 4 · Accounts receivable

  beginning of year $16,095,265 · end of year $17,256,996

• 7 · Other notes and loans receivable

  end of year $815,317

• 8 · Inventories for sale or use

  end of year $524,758

• 9 · Prepaid expenses and deferred charges

  beginning of year $7,326,617 · end of year $6,269,556

• 10a · Land, buildings and equipment: cost or other basis

  $50,632,285

• 10b · Land, buildings and equipment: accumulated depreciation

  $15,078,908

• 10c · Land, buildings and equipment, net

  beginning of year $35,869,218 · end of year $35,553,377

• 11 · Investments: publicly traded securities

  beginning of year $2,280 · end of year $10,673

• 12 · Investments: other securities

  beginning of year $486,821,935 · end of year $543,481,547

• 13 · Investments: program-related

  beginning of year $57,570,317 · end of year $57,570,317

• 14 · Intangible assets

  beginning of year $6,301,014 · end of year $6,714,744

• 15 · Other assets

  beginning of year $140,143,671 · end of year $162,965,099

• 17 · Accounts payable and accrued expenses

  beginning of year $132,186,930 · end of year $137,961,152

• 19 · Deferred revenue

  beginning of year $261,257 · end of year $1,748,652

• 20 · Tax-exempt bond liabilities

  beginning of year $47,583,206 · end of year $46,689,320

• 23 · Secured mortgages and notes payable

  beginning of year $10,237,396 · end of year $9,799,172

• 25 · Other liabilities

  beginning of year $179,278,949 · end of year $243,078,860

• 27 · Net assets without donor restrictions

  beginning of year $500,198,864 · end of year $557,473,167

• 28 · Net assets with donor restrictions

  end of year $62,439

The filer's explanations (Part III)

PART I, LINE 1A

BENEFITS PROVIDED: DURING CALENDAR YEAR 2024, CHARTER TRAVEL WAS USED BY THREE DIRECTORS, TWO OFFICERS, AND THREE KEY EMPLOYEES FOR TRAVEL BETWEEN ESSENTIA HEALTH AND OTHER ORGANIZATIONS. THE USE OF CHARTER TRAVEL IS NOT TREATED AS TAXABLE COMPENSATION TO THESE INDIVIDUALS AS ALL TRAVEL WAS BUSINESS RELATED. DURING CALENDAR YEAR 2024, KEY EMPLOYEE JODI MANSFIELD RECEIVED A HOUSING ALLOWANCE. THIS BENEFIT WAS TREATED AS TAXABLE COMPENSATION.

PART I, LINES 4A-B

SEVERANCE PAYMENT: KEY EMPLOYEE WILLIAM HEEGAARD, MD RECEIVED PAYMENTS TOTALING $393,086 IN CALENDAR YEAR 2024 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, HEEGAARD WILL RECEIVE PAY TOTALING $1,095,026 AND BENEFITS TOTALING $45,337 FROM JUNE 2, 2024 TO DECEMBER 2, 2025. HIGHEST-COMPENSATED EMPLOYEE KARYN BAUM, MD RECEIVED PAYMENTS TOTALING $614,952 IN CALENDAR YEAR 2024 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, BAUM WILL RECEIVE PAY TOTALING $1,029,319 AND BENEFITS TOTALING $31,774 FROM JANUARY 23, 2024 TO JULY 23, 2025. FORMER KEY EMPLOYEE KEVIN CASEY, MD RECEIVED PAYMENTS TOTALING $686,213 IN CALENDAR YEAR 2024 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, CASEY WILL RECEIVE PAY TOTALING $1,029,319 AND BENEFITS TOTALING $33,928 FROM OCTOBER 9, 2023 TO APRIL 8, 2025. KEY EMPLOYEE MARK THOMPSON, MD RECEIVED PAYMENTS TOTALING $278,656 IN CALENDAR YEAR 2024 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, THOMPSON WILL RECEIVE PAY TOTALING $1,086,758 AND BENEFITS TOTALING $39,075 FROM JULY 26, 2024 TO JANUARY 31, 2026. ALL OTHER INDIVIDUALS LISTED AS FORMERS IN FORM 990, PART VII, SECTION A, LINE 1A DID NOT RECEIVE A SEVERANCE PAYMENT DURING CALENDAR YEAR 2024. SOME OF THESE INDIVIDUALS REMAIN EMPLOYED WITHIN ESSENTIA HEALTH AND ITS SUBSIDIARIES. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: ESSENTIA HEALTH'S NONQUALIFIED RETIREMENT PLAN IS OFFERED TO DESIGNATED ESSENTIA HEALTH EXECUTIVES. THERE IS A MINIMUM FOUR YEAR VESTING DATE, OR VESTING IS AUTOMATIC UPON REACHING RETIREMENT AGE, DEATH, DISABILITY OR INVOLUNTARY TERMINATION WITHOUT CAUSE. BENEFITS ARE SUBJECT TO INCOME TAXES UPON VESTING AND PAYABLE FROM ESSENTIA HEALTH'S GENERAL ASSETS. REPORTED AS OTHER REPORTABLE COMPENSATION IN SCHEDULE J, PART II, COLUMN B (III), THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A RECEIVED PAYMENT OF THE VESTED BENEFIT FROM THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING THE YEAR: DAVID HERMAN, MD $332,467 JODI MANSFIELD $153,729 TRACI MORRIS $78,928 BRADLEY BEARD $90,640 WILLIAM HEEGAARD, MD $112,499 CHARLES WATSON $89,854 DIANE DAVIDSON $74,636 KARYN BAUM, MD $97,663 RICHARD VETTER, MD $54,695 MICHAEL WATTERS $62,797 SARAH MANNEY KURTH, MD $26,860 AL HURLEY $59,235 RHONDA KAZIK $15,955 KEVIN CASEY, MD $83,079 ANNE STEPHEN, MD $65,980 REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN C, ESSENTIA HEALTH MADE CONTRIBUTIONS, SUBJECT TO THE VESTING TERMS, DURING THE YEAR INTO THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ON BEHALF OF THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A: DAVID HERMAN, MD $379,999 JODI MANSFIELD $174,444 TRACI MORRIS $114,806 BRADLEY BEARD $106,959 WILLIAM HEEGAARD, MD $48,668 CHARLES WATSON $89,786 DIANE DAVIDSON $87,836 KRISTA SKORUPA, MD $91,234 JASON SCHULTZ, MD $85,394 ROBERT GREEN $90,844 RICHARD VETTER, MD $79,493 MICHAEL WATTERS $84,801 GRATIA PITCHER, MD $99,364 SARAH MANNEY KURTH, MD $82,804 AL HURLEY $75,236 RHONDA KAZIK $77,882 MELANIE WILSON $75,419 ANNE STEPHEN, MD $32,992

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• BRIGHTSIDE SURGICAL LLC

  N/A · AMBULATORY SURGERY CENTER · ND

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• ESSENTIA HEALTH INSURANCE SERVICES SPC LTD

  C · SELF INSURANCE · CJ · 100% owned · share of income $23,235,445 · share of assets $61,335,063 · controlled entity

  Directly controlled by ESSENTIA HEALTH

• MID DAKOTA CLINIC INC

  C · CLINIC OPERATIONS CEASED 9/30/22 · ND · controlled entity