Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: HEALTHCARE SERVICES

  total $1,932,851,981 · related or exempt $1,932,851,981

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $38,734,839 · excluded $38,734,839

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7c · Gain or loss

  securities $0 · other assets $0

• 11d · All other revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $0

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $45,336,994 · management and general $45,336,994

• 8 · Pension plan contributions

  total $8,884 · management and general $8,884

• 9 · Other employee benefits

  total $11,548,295 · management and general $11,548,295

• 10 · Payroll taxes

  total $32,984 · management and general $32,984

• 11g · Fees: other

  total $2,910,713 · program services $0 · management and general $2,910,713 · fundraising $0

• 12 · Advertising and promotion

  total $6,670,803 · management and general $6,670,803

• 13 · Office expenses

  total $2,300,144 · management and general $2,300,144

• 14 · Information technology

  total $455,617 · management and general $455,617

• 16 · Occupancy

  total $995,688 · management and general $995,688

• 17 · Travel

  total $626,934 · management and general $626,934

• 20 · Interest

  total $2,251,276 · management and general $2,251,276

• 22 · Depreciation, depletion and amortization

  total $540,018 · management and general $540,018

• 23 · Insurance

  total $686,242 · management and general $686,242

• 24a · Other expenses: MEDICAL CLAIM EXPENSE

  total $1,680,607,802 · program services $1,680,607,802

• 24b · Other expenses: CORPORATE ALLOCATIONS

  total $54,380,051 · management and general $54,380,051

• 24c · Other expenses: Provider/Income Taxes

  total $39,203,307 · management and general $39,203,307

• 24d · Other expenses: Other

  total $11,586,819 · management and general $11,586,819

• 24e · All other expenses

  total $6,688,323 · program services $0 · management and general $6,688,323 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $848,384,174 · end of year $616,920,570

• 2 · Savings and temporary cash investments

  beginning of year $0 · end of year $0

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $40,021,071 · end of year $39,168,249

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $0 · end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $456,722 · end of year $1,169,948

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

  $0

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

  $0

• 10c · Land, buildings and equipment, net

  beginning of year $0 · end of year $0

• 11 · Investments: publicly traded securities

  beginning of year $0 · end of year $0

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year $0 · end of year $1,674,913

• 17 · Accounts payable and accrued expenses

  beginning of year $21,435,842 · end of year $5,405,299

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $0 · end of year $0

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 21 · Escrow or custodial account liability

  beginning of year $0 · end of year $0

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $634,503,931 · end of year $490,850,261

• 27 · Net assets without donor restrictions

  beginning of year $232,922,194 · end of year $162,678,120

• 28 · Net assets with donor restrictions

  beginning of year $0 · end of year $0

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $0 · end of year $0

The filer's explanations (Part III)

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

EXEC 457(B) - COVERED APPROXIMATELY 475 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS AND IS 100% VESTED. TAXATION OCCURS UPON DISTRIBUTION. THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. EMPLOYER CONTRIBUTIONS TO EXEC 457(B) ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III). EXEC 457(F) - COVERED APPROXIMATELY 100 FORMER AND CURRENT EXECUTIVES. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE). Awards are subject to a rolling three-year vesting schedule - or a team member reaches the age of 65, 3 years from date of deposit. TAXATION OCCURS UPON DISTRIBUTION (IF VESTED). THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III). DEPOSIT AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). 457(F) PAYOUT: CHARLES LEHN $57,254 DENNIS LARAWAY $154,262 DONNA SICKLER $3,543 ROBBIE AUBREY $2,513 NATALYA FAYNBOYM $10,764 JOSEPH GREGORY $15,258 JEAN FRITTERER LANCE $22,510 EMPLOYER 457(F) DEPOSIT: ZACHARY ATERS $7,436 JENNIFER BROOKS $168 CLINTON CLARKE $25,941 NATALYA FAYNBOYM $6,783 JOSEPH GREGORY $14,146 JEAN FRITERER LANCE $38,826 CHARLES LEHN $46,865 DONNA SICKLER $25,733 SANDRA STEIN $5,022 JAMES STRINGHAM $24,240

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

1.THE INDIVIDUALS IDENTIFIED BELOW PARTICIPATE IN A LONG-TERM INCENTIVE PLAN (LTIP) COVERING THREE-YEAR CYCLES FROM 2020-2022, 2021-2023, 2022-2024 AND 2023-2025. THE LTIP WAS DESIGNED AT THE INITIATIVE OF THE BANNER BOARD OF DIRECTORS WITH THE ASSISTANCE OF WILLIS TOWERS WATSON, AND ALL COMPONENTS WERE APPROVED BY THE BOARD. THE PLANS' AREAS OF PERFORMANCE TARGETS INCLUDE: STARTS RATING IMPROVEMENT, TRANSFORM REVENUE CYCLE ($ IMPROVEMENT), AND BUILD OUR BENCH TO REFLECT COMMUNITIES (VOICE, MINORITY %, SUCCESSION AND OTHER KEY LONG-TERM INITIATIVES. AWARDS ARE CALCULATED AS A PERCENTAGE OF BASE SALARY ON THE LAST DAY OF THE THREE-YEAR CYCLE, AND OPPORTUNITY VARIES BY POSITION LEVEL. THE PLAN REQUIRES A THRESHOLD LEVEL OF FINANCIAL PERFORMANCE BEFORE ANY AWARDS CAN BE MADE, AND THE AMOUNT OF THE AWARDS VARIES WITH THE DEGREE OF ACHIEVEMENT OF THE TARGETS. THE MAXIMUM LTIP PAYOUT OPPORTUNITY RANGES FROM 30% TO 255% OF THE BASE SALARY as of December 31 in the last year of the three-year plan. AWARDS HAVE BEEN ACCRUED UNDER THE LTIP, BUT NO PAYMENTS ARE MADE UNTIL AFTER YEAR-END AND ACHIEVEMENT IS VERIFIED BY THE BANNER HEALTH BOARD COMPENSATION COMMITTEE AND APPROVED BY THE FULL BOARD OF DIRECTORS OF BANNER HEALTH. ALL LTIP COMPENSATION PAYMENTS ARE REPORTED IN THE INCENTIVE AND BONUS COMPENSATION SHOWN IN SCHEDULE J, PART II, COLUMN (B)(II). AMOUNTS PAID FOR THE 2020-2022 CYCLE ARE REPORTED IN SCHEDULE J, PART II, COLUMN (B) AS BONUS & INCENTIVE COMPENSATION. AMOUNTS ACCRUED FOR 2023 FOR THE 2021-2023, 2022-2024, 2023-2025 CYCLES (TO BE PAID OUT IN 2024, 2025, AND 2026 RESPECTIVELY) ARE REPORTED IN SCHEDULE J, PART II, COLUMN (C) AS DEFERRED COMPENSATION. LTIP Accrual: JENNIFER BROOKS $75,333 CLINTON CLARKE $140,813 JEAN FITTERER LANCE $528,794 CHARLES LEHN $245,695 DONNA SICKLER $143,407 JAMES STRINGHAM $142,314 LTIP Payout: JENNIFER BROOKS $29,556 CLINTON CLARKE $75,356 JEAN FRITTERER LANCE $194,417 DENNIS LARAWAY $944,629 CHARLES LEHN $213,960 DONNA SICKLER $126,096 JAMES STRINGHAM $117,172 2. BANNER HEALTH HAS A MANAGEMENT INCENTIVE PLAN (MIP) WHICH IS BASED ON COMPANY ACHIEVEMENT OF SEVERAL FINANCIAL AND NON-FINANCIAL/CLINICAL QUALITY METRICS THAT ARE ESTABLISHED ANNUALLY BY THE BANNER HEALTH BOARD OF DIRECTORS. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 7% TO 110% OF BASE SALARY. IN 2023, THERE WERE 1,440 MIP PARTICIPANTS. THE MIP WAS ACCRUED IN 2022 FOR THE 2023 MIP PAYOUT. MIP COMPENSATION IS INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(II).

Schedule J, Part I, Line 3 COMPENSATION OF ORGANIZATION CEO

THE COMPENSATION OF THE ORGANIZATION'S CEO IS DETERMINED BY A RELATED TAX-EXEMPT ORGANIZATION. SEE SCHEDULE O FOR FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY THE RELATED ORGANIZATION TO DETERMINE COMPENSATION.

Related partnerships

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

• BANNER AIR LLC

  N/A · MEDICAL TRANSPORT · DE

  Directly controlled by NA

• BANNER ATLAS JV LLC

  N/A · OUTPATIENT SURGERY CENTER · AZ

  Directly controlled by NA

• BANNER WEST VALLEY CARDIOLOGY MANAGEMENT LLC

  N/A · MEDICAL MANAGEMENT · AZ

  Directly controlled by NA

• BHSM REHABILITATION LLC

  N/A · MEDICAL SERVICES · DE

  Directly controlled by NA

Related corporations and trusts

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

• BANNER HEALTH NETWORK

  C Corporation · ACCOUNTABLE CARE · AZ · controlled entity

  Directly controlled by NA

• BANNER INDEMNITY LTD

  C Corporation · INVESTMENTS · CJ · controlled entity

  Directly controlled by NA

• BANNER PLAN ADMINISTRATION INC

  C Corporation · THIRD PARTY ADMINISTRATION · AZ · controlled entity

  Directly controlled by NA

• NMSI INC

  C Corporation · PPO INSURANCE PROVIDER · CO · controlled entity

  Directly controlled by NA