Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $896,460

• 1e · Government grants (contributions)

  $6,898,081

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $724,626,493 · related or exempt $724,626,493

• 2b · Program service revenue: RENTAL INCOME

  total $1,272,502 · related or exempt $1,272,502

• 2c · Program service revenue: HEALTH SCREEN & AMBULATORY

  total $1,575,624 · related or exempt $1,575,624

• 2d · Program service revenue: MEDICAID ASSESMENT PROGRAM

  total $35,715,361 · related or exempt $35,715,361

• 2e · Program service revenue: REFERENCE LAB

  total $3,703,556 · related or exempt $1,260,947 · unrelated business $2,442,609

• 2f · All other program service revenue

  total $1,472,615 · related or exempt $1,472,615 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $103,479 · excluded $103,479

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7a · Gross sales of assets other than inventory

  other assets $277,183

• 7c · Gain or loss

  securities $0 · other assets $277,183

• 7d · Net gain or loss

  total $277,183 · excluded $277,183

• 10a · Gross sales of inventory

  $211,977

• 10b · Cost of goods sold

  $106,638

• 10c · Net income from sales of inventory

  total $105,339 · excluded $105,339

• 11a · Other revenue: Cafeteria

  total $1,777,011 · excluded $1,777,011

• 11b · Other revenue: Pharmacy

  total $5,830,394 · related or exempt $5,830,394

• 11c · Other revenue: Employee Leasing

  total $9,565 · related or exempt $9,565

• 11d · All other revenue

  total $558,356 · related or exempt $558,356 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $8,175,326

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $72,100 · program services $72,100

• 5 · Compensation of officers, directors and key employees

  total $732,968 · management and general $732,968

• 6 · Compensation of disqualified persons

  total $70,902 · program services $70,902

• 7 · Other salaries and wages

  total $215,633,809 · program services $185,474,823 · management and general $30,158,986

• 8 · Pension plan contributions

  total $8,244,114 · program services $7,067,439 · management and general $1,176,675

• 9 · Other employee benefits

  total $18,448,996 · program services $15,815,788 · management and general $2,633,208

• 10 · Payroll taxes

  total $14,929,899 · program services $12,798,968 · management and general $2,130,931

• 11d · Fees: lobbying

  total $48,105 · management and general $48,105

• 11g · Fees: other

  total $150,064,548 · program services $33,279,624 · management and general $116,784,924 · fundraising $0

• 12 · Advertising and promotion

  total $895,085 · program services $634,887 · management and general $260,198

• 13 · Office expenses

  total $191,594,062 · program services $186,062,917 · management and general $5,531,145

• 16 · Occupancy

  total $7,664,420 · program services $7,119,820 · management and general $544,600

• 17 · Travel

  total $62,968 · program services $16,968 · management and general $46,000

• 19 · Conferences, conventions and meetings

  total $137,239 · program services $30,735 · management and general $106,504

• 22 · Depreciation, depletion and amortization

  total $31,829,944 · program services $28,646,950 · management and general $3,182,994

• 23 · Insurance

  total $2,819,454 · program services $2,819,454

• 24a · Other expenses: Medicare Provider Tax

  total $28,668,249 · program services $28,668,249

• 24b · Other expenses: Medical Fees/Physician Intregation

  total $8,163,723 · program services $5,782,710 · management and general $2,381,013

• 24c · Other expenses: Reparis & Maintenance

  total $6,844,394 · program services $3,563,576 · management and general $3,280,818

• 24e · All other expenses

  total $590,916 · program services $528,462 · management and general $62,454 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year -$8,108,081 · end of year -$5,448,342

• 4 · Accounts receivable

  beginning of year $92,514,282 · end of year $92,270,958

• 5 · Loans and receivables from officers and key people

  end of year $0

• 6 · Loans and receivables from disqualified persons

  end of year $0

• 8 · Inventories for sale or use

  beginning of year $13,842,978 · end of year $15,126,087

• 9 · Prepaid expenses and deferred charges

  beginning of year $654,294 · end of year $316,691

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

  $933,853,310

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

  $613,189,523

• 10c · Land, buildings and equipment, net

  beginning of year $337,857,116 · end of year $320,663,787

• 11 · Investments: publicly traded securities

  end of year $601,180

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 15 · Other assets

  beginning of year $35,542,252 · end of year $31,043,818

• 17 · Accounts payable and accrued expenses

  beginning of year $52,914,384 · end of year $48,981,285

• 22 · Loans and payables to officers and key people

  end of year $0

• 25 · Other liabilities

  beginning of year $119,149,036 · end of year $58,797,624

• 27 · Net assets without donor restrictions

  beginning of year $297,594,934 · end of year $343,662,353

• 28 · Net assets with donor restrictions

  beginning of year $2,644,487 · end of year $3,132,917

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Tax indemnification and gross-up payments

The organization's officers and certain key employees are offered life insurance and long-term disability benefits. A transition bonus is paid to certain executives that no longer receive a gross-up payment to cover the tax impacts for life insurance and long-term disability.

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

ALL EMPLOYEES ARE OFFERED A MEMBERSHIP AT THE EDWARD HEALTH & FITNESS CENTER, AN AFFILIATE OF EDWARD-ELMHURST HEALTHCARE , AS A TAXABLE EMPLOYEE BENEFIT. THE VALUE OF THIS BENEFIT IS DETERMINED BASED UPON THE FAIR MARKET VALUE OF THESE MEMBERSHIPS, WHICH IS IN TURN DETERMINED BASED UPON THE ACTUAL AMOUNT THAT THE EDWARD HEALTH & FITNESS CENTER CHARGES TO OTHER CORPORATE CUSTOMERS.

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation

A detailed compensation review of the top executives, including the Chief Executive Officer, is conducted annually. Market data is collected and assessed by an external independent compensation consultant who specializes in compensation consulting within the healthcare industry. The work product from this study is reviewed separately with NS-EE Holdings' Board-retained legal counsel. Market data for base and variable compensation is assessed annually for integrated delivery systems and academic medical centers that are similar in size and complexity. The market assessment includes assessing job content in order to make appropriate market data comparisons. Specific recommendations are then reviewed, discussed and approved as appropriate with the NS-EE Holdings Compensation Committee, in session with legal counsel present, in advance of implementation.

Schedule J, Part I, Line 4a Severance or change-of-control payment

Two executives signed change-of-control arrangements as of December 31, 2022. No payments were made under these arrangements in 2022.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

INDIVIDUALS WHO HAVE THE TITLE OF VICE PRESIDENT OR HIGHER ARE ELIGIBLE TO PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP); ANY ELIGIBLE PARTICIPANTS MUST BE APPROVED BY THE EDWARD-ELMHURST HEALTHCARE BOARD OF TRUSTEES. THE SERP WAS ESTABLISHED TO RECOGNIZE THE VALUABLE CONTRIBUTIONS THAT EACH OF THE PARTICIPANTS MAKES TO THE OPERATIONS OF EDWARD-ELMHURST HEALTHCARE AND TO REWARD CERTAIN EXECUTIVE EMPLOYEES FOR THEIR LONG-TERM SERVICE AND COMMITMENT TO EDWARD-ELMHURST HEALTHCARE. THE SERP IS DESIGNED TO SUPPLEMENT THESE PARTICIPANTS' INCOME IF THEY REMAIN WITH EDWARD-ELMHURST HEALTHCARE UNTIL AGE 65. IN EXCHANGE FOR THIS LONG-TERM SERVICE, EDWARD-ELMHURST HEALTHCARE WANTS TO SUPPLEMENT THESE PARTICIPANTS' RETIREMENT INCOME WITH ADDITIONAL ANNUAL COMPENSATION THAT IS INVESTED IN AN ANNUITY CONTRACT OR A LIFE INSURANCE VEHICLE; CONTRIBUTIONS VEST AFTER FIVE YEARS. THE FOLLOWING INTERESTED PERSONS RECEIVED DEFERRALS TO THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) IN 2022; THESE DEFERRALS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C), AS APPLICABLE. Chamberlain, Denise 126,125 Dant, Joseph 31,531 Payton, Robert 88,543 Gallagher, Gerald P. 400,558 Welday, Douglas D. 109,254 THE FOLLOWING INTERESTED PERSONS RECEIVED DISTRIBUTIONS FROM THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) IN 2022; THESE PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III) AND SCHEDULE J, PART II, COLUMN (F), AS APPLICABLE Dant, Joseph 503,579 Eslick, Laura 218,138 Friant, Jeffrey D 73,286 Mastro, Mary 293,825 Mollet, Chris J 130,925 Spencer, Marianne 105,134 Gallagher, Gerald P. 2,057,902 Welday, Douglas D. 360,309

Schedule J, Part I, Line 6a Compensation contingent on net earnings of the organization

Edward Hospital administers the Productivity Bonus Plan (PBP), an annual incentive compensation program for Edward Hospital Emergency Department physician employees. Participants on the PBP receive distributions from the bonus pool determined using a formula that is calculated utilizing Work RVU's. In administering the PBP, Edward Hospital Senior Administration, in conjunction with ED Physician Leadership, obtain Edward-Elmhurst Healthcare (EEH) Physician Compensation Committee approval of the Plan structure each year. The plan administrator reserves the right to modify any bonuses to be paid out under this Plan to ensure total compensation paid is at fair market value, consistent with Edward Hospital physician compensation policies. If total compensation is above the 75th percentile of independent market data, such compensation must be approved by the EEH Physician Compensation Committee.

Schedule J, Part I, Line 7 Non-fixed payments

SCHEDULE J, PART 1, LINE 7 IS ANSWERED YES BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, RECEIVED A NONFIXED PAYMENT (BONUS) DURING THE YEAR. THE NON-FIXED PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(II) AS BONUSES. THE BONUS AMOUNTS DETERMINED ARE BASED ON A FIXED PERCENTAGE OF BASE COMPENSATION, HOWEVER THEY ARE DISCRETIONARY IN NATURE, IN THAT DISCRETION IS GIVEN AS TO WHETHER OR NOT A BONUS WILL BE PAID FOR THE REPORTING PERIOD.

Related partnerships

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

• ELMHURST OUTPATIENT SURGERY CENTER LLC

  N/A · SURGERY CENTER · IL

  Directly controlled by NA

• INSIGHT MEDICAL IMAGING LLC

  N/A · HEALTHCARE · IL

  Directly controlled by NA

• MIDWEST ENDOSCOPY LLC

  N/A · HEALTHCARE · IL

  Directly controlled by NA

• RESIDENTIAL HOME HEALTH ILLINOIS LLC

  N/A · HEALTHCARE · IL

  Directly controlled by RHHI Holdco LLC

• RAVINE WAY SURGERY CENTER LLC

  N/A · HEALTHCARE · IL

  Directly controlled by NORTHSHORE UNIVERSITY HEALTHSYSTEM

• NPC CYBERKNIFE LLC

  N/A · EQUIPMENT LEASING · IL

  Directly controlled by NORTHWEST COMMUNITY HEALTHCARE

• NWC DAY SURGERY CENTER II LLC

  N/A · OUTPATIENT CARE · IL

  Directly controlled by NORTHWEST COMMUNITY HEALTHCARE

• NORTHWEST ENDO CENTER LLC

  N/A · SURGICAL CARE · IL

  Directly controlled by NWC HEALTH SERVICES INC

• ENVISION MEDICAL IMAGING

  N/A · IMAGING SERVICES · IL

  Directly controlled by NWC HEALTH SERVICES INC

• RHHI Holdco LLC

  N/A · Healthcare · IL

  Directly controlled by NA

Related corporations and trusts

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

• IHP ACO

  C Corporation · HEALTHCARE · IL

  Directly controlled by NA

• ELMHURST MEMORIAL HEALTH TECHNOLOGIES LLC

  C Corporation · PRACTICE MANAGEMENT · IL · controlled entity

  Directly controlled by NA

• EEH SPC - SEGREGATED PORTFOLIO A

  C Corporation · INSURANCE · CJ · controlled entity

  Directly controlled by NA

• EEH SPC - SEGREGATED PORTFOLIO B

  C Corporation · INSURANCE · CJ · controlled entity

  Directly controlled by NA

• NORTHSHORE LEGACY NPA INC

  C Corporation · HEALTHCARE · IL · controlled entity

  Directly controlled by NORTHSHORE UNIVERSITY HEALTHSYSTEM FACULTY PRACTICE ASSOCIATES

• NORTHSHORE PHYSICIAN ASSOCIATES VALUE BASED CARE LLC

  C Corporation · HEALTHCARE · IL · controlled entity

  Directly controlled by NORTHSHORE LEGACY NPA INC

• NORTHSHORE UNIVERSITY HEALTHSYSTEM INSURANCE INTERNATIONAL

  C Corporation · INSURANCE · CJ · controlled entity

  Directly controlled by NORTHSHORE UNIVERSITY HEALTHSYSTEM

• SWEDISH COVENANT MANAGEMENT SERVICES INC

  C Corporation · PHYSICIAN PRACTICE MANAGEMENT · IL · controlled entity

  Directly controlled by SWEDISH COVENANT HEALTH

• SWEDISH COVENANT PHYSICIAN PARTNERS LTD

  C Corporation · PHYSICIAN PRACTICE MANAGEMENT · IL · controlled entity

  Directly controlled by SWEDISH COVENANT HEALTH

• CENTRAL INSURANCE COMPANY LTD

  C Corporation · INSURANCE · CJ · controlled entity

  Directly controlled by NORTHWEST COMMUNITY HEALTHCARE

• NORTHWEST COMMUNITY HEALTH SERVICES INC

  C Corporation · HEALTHCARE · IL · controlled entity

  Directly controlled by NORTHWEST COMMUNITY HEALTHCARE