Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,340

• 1e · Government grants (contributions)

  $414,465

• 2a · Program service revenue: RETAIL PHARMACY

  total $221,403,025 · related or exempt $221,403,025

• 2b · Program service revenue: OUTPATIENT REVENUES

  total $45,089,486 · related or exempt $44,290,444 · unrelated business $799,042

• 2c · Program service revenue: ASHLAND CANCER CENTER INVESTMENT

  total $5,612,996 · related or exempt $5,612,996

• 3 · Investment income

  total $226,829 · excluded $226,829

• 7a · Gross sales of assets other than inventory

  securities $382,232 · other assets $390,000

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

  securities $375,090 · other assets $100,051

• 7c · Gain or loss

  securities $7,142 · other assets $289,949

• 7d · Net gain or loss

  total $297,091 · excluded $297,091

• 10a · Gross sales of inventory

  $24,252,868

• 10b · Cost of goods sold

  $21,239,382

• 10c · Net income from sales of inventory

  total $3,013,486 · unrelated business $3,013,486

• 11a · Other revenue: ASHLAND CARE CENTER MSA

  total $1,507,448 · related or exempt $1,507,448

• 11b · Other revenue: PARKING REVENUE

  total $31,029 · excluded $31,029

• 11c · Other revenue: MISCELLANEOUS REVENUE

  total $389 · excluded $389

• 11e · Other revenue, total

  $1,538,866

Functional expenses

Part IX, the statement of functional expenses.

• 3 · Grants to foreign organizations and individuals

  total $1,728 · program services $1,728

• 5 · Compensation of officers, directors and key employees

  total $1,875 · program services $1,875

• 6 · Compensation of disqualified persons

  total $5,803 · program services $5,803

• 7 · Other salaries and wages

  total $55,395,671 · program services $53,558,654 · management and general $1,837,017

• 8 · Pension plan contributions

  total $2,314,752 · program services $2,446,112 · management and general -$131,360

• 9 · Other employee benefits

  total $5,425,933 · program services $4,348,234 · management and general $1,077,699

• 10 · Payroll taxes

  total $3,107,703 · program services $2,984,711 · management and general $122,992

• 11b · Fees: legal

  total $4,181 · management and general $4,181

• 11c · Fees: accounting

  total $11,405 · management and general $11,405

• 11d · Fees: lobbying

  total $922 · management and general $922

• 11f · Fees: investment management

  total $2,942 · management and general $2,942

• 11g · Fees: other

  total $7,539,148 · program services $7,319,661 · management and general $219,487

• 12 · Advertising and promotion

  total $7,627 · program services $10,790 · management and general -$3,163

• 13 · Office expenses

  total $2,392,419 · program services $2,220,859 · management and general $171,560

• 14 · Information technology

  total $151,340 · program services $146,321 · management and general $5,019

• 16 · Occupancy

  total $4,420,924 · program services $4,274,318 · management and general $146,606

• 17 · Travel

  total $215,301 · program services $217,235 · management and general -$1,934

• 19 · Conferences, conventions and meetings

  total $29,053 · program services $14,783 · management and general $14,270

• 20 · Interest

  total $5,222,002 · program services $5,222,002

• 22 · Depreciation, depletion and amortization

  total $5,372,819 · program services $5,194,647 · management and general $178,172

• 23 · Insurance

  total $1,911,958 · program services $1,887,140 · management and general $24,818

• 24a · Other expenses: MEDICAL SUPPLIES

  total $113,820,136 · program services $113,820,136

• 24b · Other expenses: UNRELATED BUSINESS INCO

  total $2,549 · management and general $2,549

• 24c · Other expenses: AFFILIATE SUPPORT FEE

  total $25,633,346 · program services $11,418,867 · management and general $14,214,479

• 24d · Other expenses: PRESCRIPTION CLAIM PROC

  total $7,332,725 · program services $7,332,725

• 24e · All other expenses

  total $11,203,990 · program services $1,031,464 · management and general $10,172,526

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $23,651 · end of year $1,040,930

• 2 · Savings and temporary cash investments

  beginning of year $332,234 · end of year $189,383

• 4 · Accounts receivable

  beginning of year $18,496,723 · end of year $20,405,437

• 7 · Other notes and loans receivable

  beginning of year $5,653,545 · end of year $7,408,077

• 8 · Inventories for sale or use

  beginning of year $12,379,591 · end of year $15,899,295

• 9 · Prepaid expenses and deferred charges

  beginning of year $19,666 · end of year $12,472

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

  $199,734,770

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

  $131,213,416

• 10c · Land, buildings and equipment, net

  beginning of year $72,691,717 · end of year $68,521,354

• 12 · Investments: other securities

  beginning of year $1,205,942 · end of year $1,346,475

• 13 · Investments: program-related

  beginning of year $3,900,000 · end of year $3,900,000

• 14 · Intangible assets

  beginning of year $364,211 · end of year $332,309

• 15 · Other assets

  beginning of year $18,613,995 · end of year $18,293,993

• 17 · Accounts payable and accrued expenses

  beginning of year $37,922,802 · end of year $43,313,688

• 19 · Deferred revenue

  beginning of year $2,669,070 · end of year $2,478,600

• 20 · Tax-exempt bond liabilities

  beginning of year $105,585,480 · end of year $97,178,187

• 23 · Secured mortgages and notes payable

  beginning of year $49,749,386 · end of year $48,434,663

• 25 · Other liabilities

  beginning of year $436,742,538 · end of year $418,895,099

• 27 · Net assets without donor restrictions

  beginning of year -$498,988,001 · end of year -$472,950,512

The filer's explanations (Part III)

PART I, LINE 3

ESTABLISHING CEO'S COMPENSATION: ESSENTIA HEALTH, AS A RELATED ORGANIZATION, USED THE FOLLOWING METHODS TO ESTABLISH THE DULUTH CLINIC, LTD'S PRESIDENT'S COMPENSATION: A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINE 4B

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: BRADLEY BEARD $297,439 TRACI MORRIS $79,902 DANIEL NIKCEVICH, MD $50,786 MICHAEL WATTERS $33,314 ANNE STEPHEN, MD $54,159 JON PRYOR, MD $361,146 KEVIN BOREN $25,627 JANICE SCHADE $24,473 THOMAS WITT, MD $171,792 TAMMY KRITZER $32,833 CYNTHIA KENT $46,716 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: BRADLEY BEARD $90,640 WILLIAM HEEGAARD, MD $103,603 TRACI MORRIS $97,190 MICHAEL WATTERS $68,732 ANNE STEPHEN, MD $65,980 RHONDA KAZIK $61,683 KEVIN BOREN $38,253 JANICE SCHADE $48,295 THOMAS WITT, MD $6,384 KRISTA SKORUPA, MD $44,501 TAMMY KRITZER $42,418

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• ESSENTIA HEALTH SANDSTONE MEDICAL LLC

  LESSOR OF MEDICAL BUILDING · DE · income $221,689 · assets $7,188,542

  Directly controlled by THE DULUTH CLINIC LTD

• HORSESHOE SURGERY CENTER LLC

  SURGERY CENTER · MN · income $1,655,073 · assets $2,611,944

  Directly controlled by THE DULUTH CLINIC LTD

Related corporations and trusts

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

• ESSENTIA HEALTH INSURANCE SERVICES SPC LTD

  C · SELF INSURANCE · CJ · controlled entity

• MID DAKOTA CLNINC INC

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