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Nonprofiteer
← ARH TUG VALLEY HEALTH SERVICES INC

Form 990 for tax year 2022

Filed by ARH TUG VALLEY HEALTH SERVICES INC.

Totals

Total revenue
$213,402,984
Total expenses
$210,114,759
Contributions and grants received
$0
Grants paid
$5,000
Program service revenue
$208,492,275
Investment income
$2,433,644
Other revenue
$2,477,065
Total assets, end of year
$85,610,004
Total liabilities, end of year
$29,802,286
Net assets or fund balances, end of year
$55,807,718
Program services expenses (Part IX)
$192,475,454
Management and general expenses
$17,639,305
Fundraising expenses
$0
Program service expenses (Part III)
$192,475,454

Program services were 91.6% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 2a · Program service revenue: PATIENT REVENUE

    total $159,078,678 · related or exempt $159,078,678

  • 2b · Program service revenue: HOSPITAL RATE IMPROVEMENT PROGRAM

    total $31,451,356 · related or exempt $31,451,356

  • 2c · Program service revenue: PHARMACY

    total $17,948,984 · related or exempt $15,798,642 · unrelated business $2,150,342

  • 2d · Program service revenue: TRANSCRIPT FEES

    total $13,257 · related or exempt $13,257

  • 3 · Investment income

    total $3,633,612 · excluded $3,633,612

  • 6a · Gross rents

    real property $538,483

  • 6b · Less rental expenses

    real property $0

  • 6c · Rental income or loss

    real property $538,483

  • 6d · Net rental income or loss

    total $538,483 · excluded $538,483

  • 7a · Gross sales of assets other than inventory

    securities $1

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

    securities $1,199,969

  • 7c · Gain or loss

    securities -$1,199,968

  • 7d · Net gain or loss

    total -$1,199,968 · excluded -$1,199,968

  • 11a · Other revenue: MISCELLANEOUS

    total $1,428,924 · related or exempt $1,418,038 · unrelated business $10,886

  • 11b · Other revenue: CAFETERIA INCOME

    total $509,658 · excluded $509,658

  • 11e · Other revenue, total

    $1,938,582

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $5,000 · program services $5,000

  • 5 · Compensation of officers, directors and key employees

    total $328,900 · program services $328,900

  • 7 · Other salaries and wages

    total $74,038,488 · program services $73,902,614 · management and general $135,874

  • 8 · Pension plan contributions

    total $1,553,547 · program services $1,550,082 · management and general $3,465

  • 9 · Other employee benefits

    total $12,221,933 · program services $12,033,156 · management and general $188,777

  • 10 · Payroll taxes

    total $3,505,020 · program services $3,497,476 · management and general $7,544

  • 11c · Fees: accounting

    total $11,356 · program services $11,356

  • 11d · Fees: lobbying

    total $5,160 · management and general $5,160

  • 11g · Fees: other

    total $20,848,340 · program services $20,619,514 · management and general $228,826

  • 13 · Office expenses

    total $886,765 · program services $886,627 · management and general $138

  • 16 · Occupancy

    total $4,070,216 · program services $4,069,402 · management and general $814

  • 17 · Travel

    total $43,816 · program services $43,816

  • 19 · Conferences, conventions and meetings

    total $129,779 · program services $129,779

  • 20 · Interest

    total $470,168 · program services $62,358 · management and general $407,810

  • 22 · Depreciation, depletion and amortization

    total $3,128,477 · program services $3,128,477

  • 23 · Insurance

    total $2,824,560 · program services $2,814,471 · management and general $10,089

  • 24a · Other expenses: UBI TAXES

    total $118,681 · management and general $118,681

  • 24b · Other expenses: BAD DEBT

    total $22,930,453 · program services $22,930,453

  • 24c · Other expenses: PHARMACEUTICALS

    total $20,701,731 · program services $20,701,731

  • 24d · Other expenses: SUPPLIES

    total $16,506,186 · program services $16,257,713 · management and general $248,473

  • 24e · All other expenses

    total $25,786,183 · program services $9,502,529 · management and general $16,283,654

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $0 · end of year $773,208

  • 2 · Savings and temporary cash investments

    beginning of year $0 · end of year $853,246

  • 4 · Accounts receivable

    beginning of year $21,900,035 · end of year $15,543,610

  • 8 · Inventories for sale or use

    beginning of year $4,044,425 · end of year $4,131,330

  • 9 · Prepaid expenses and deferred charges

    beginning of year $781,417 · end of year $748,551

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

    $124,506,574

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

    $91,172,897

  • 10c · Land, buildings and equipment, net

    beginning of year $34,077,503 · end of year $33,333,677

  • 11 · Investments: publicly traded securities

    beginning of year $1,771,499 · end of year $1,095,803

  • 13 · Investments: program-related

    beginning of year $2,101,182 · end of year $2,101,182

  • 14 · Intangible assets

    beginning of year $330,229 · end of year $330,229

  • 15 · Other assets

    beginning of year $425,518 · end of year $26,699,168

  • 17 · Accounts payable and accrued expenses

    beginning of year $6,937,514 · end of year $14,338,366

  • 23 · Secured mortgages and notes payable

    beginning of year $8,893,119 · end of year $7,933,570

  • 25 · Other liabilities

    beginning of year $11,685,829 · end of year $7,530,350

  • 27 · Net assets without donor restrictions

    beginning of year $37,915,346 · end of year $55,807,718

Mission and programs · 2022

Mission

TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL PEOPLE IN CENTRAL APPALACHIA IN PARTNERSHIP WITH OUR COMMUNITIES.

Activities or mission (Part I)

TO PROVIDE CENTRAL APPALACHIA AN ABUNDANCE OF HEALTHCARE AND COMMUNITY-ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES.

  • OPERATING AS THE HUB FOR ARH'S HOSPITALS THROUGHOUT THE ARH BIG SANDY REGION, HIGHLANDS ARH REGIONAL MEDICAL CENTER SERVES FLOYD, JOHNSON, MARTIN, AND MAGOFFIN COUNTIES AND JOINED THE ARH SYSTEM IN AUGUST 2019.HIGHLANDS ARH MEDICAL STAFF REPRESENT A HOST OF SPECIALTIES, INCLUDING FAMILY MEDICINE, INTERVENTIONAL CARDIOLOGY, INVASIVE CARDIOLOGY, OBSTETRICS/GYNECOLOGY, GENERAL SURGERY, INTERNAL MEDICINE, ORTHOPEDICS, UROLOGY, GASTROENTEROLOGY, HEMATOLOGY/ONCOLOGY NEPHROLOGY, NEUROLOGY, SPORTS MEDICINE, AND OTHER FIELDS OF MEDICINE. HIGHLANDS EMPLOYS MORE THAN 700 PEOPLE, EACH VITAL IN PROVIDING COMPASSIONATE CARE TO PEOPLE IN APPALACHIA. HIGHLANDS ARH CONTINUES TO EXPAND KEY SERVICES TO MEET THE REGION'S HEALTHCARE NEEDS, INCLUDING OBSTETRICS, PULMONARY AND CRITICAL CARE. THE MEDICAL CENTER ALSO LAUNCHED THE CONSTRUCTION AND RENOVATION FOR ITS NEW SIX-BED LEVEL 2 NEONATAL INTENSIVE CARE UNIT (NICU) AS WELL AS AN UPDATED INFANT SECURITY SYSTEM. THE NICU CAN PROVIDE CARE FOR INFANTS WHO ARE MODERATELY SICK BUT ARE EXPECTED TO IMPROVE QUICKLY. THESE BABIES ARE TYPICALLY 32 WEEKS GESTATION AND WEIGH AT LEAST 1500 GRAMS.THIS PROJECT WILL BENEFIT THE PRESTONSBURG AND SURROUNDING COMMUNITIES GREATLY BY ALLOWING THE HOSPITAL TO PROVIDE A PLACE WHERE ARH CAN CARE FOR BABIES WHO ARE MILDLY OR MODERATELY ILL AS WELL AS THE MOTHERS. ADDITIONALLY, THE NEW NICU MEANS ARH CAN BETTER SERVE THE FAMILIES OF THE REGION BY REMOVING THE HARDSHIPS THAT CAN COME WHEN A FAMILY MEMBER HAS TO BE MOVED TO A FACILITY FARTHER FROM HOME FOR A HIGHER LEVEL OF CARE. HAVING THESE SERVICES AVAILABLE LOCALLY WILL REDUCE STRESS ON THE FAMILIES AND WILL LESSEN TRAVEL AND ALL THE ASSOCIATED COSTS FOR FAMILIES.ADDITIONALLY, KEEPING THE FACT THAT TRANSPORTATION CONTINUES TO BE A BARRIER FOR MANY OF THOSE LIVING IN THE RURAL AND OFTEN REMOTE AREAS SERVED BY ARH AND THAT THERE IS A CRUCIAL NEED TO MAKE ACCESSING MEDICAL CARE AS CONVENIENT AS POSSIBLE FOR THIS POPULATION.WE WERE EXCITED AND GRATEFUL TO RECENTLY LEARN THAT ARH HAS BEEN AWARDED $400,000 IN APPALACHIAN REGIONAL COMMISSION (ARC) FUNDING FOR THE PURCHASE OF A MOBILE CLINIC TO PROVIDE NON-EMERGENCY, ON-SITE CARE. THROUGH THE MOBILE CLINIC, WHICH WILL BE STATIONED IN FLOYD COUNTY, THE COMMUNITY WILL HAVE INCREASED AND MORE REGULAR ACCESS TO CARE AS WE TAKE THE MOBILE CLINIC OUT TO AREAS THEY FREQUENT, SUCH AS LOCAL BUSINESSES, SCHOOLS, HOUSING DEVELOPMENTS, COMMUNITY EVENTS, AND MORE. ADDITIONALLY, THE MOBILE CLINIC, WHICH WILL ALSO SERVE BELL, FLOYD, HARLAN, JOHNSON, KNOX, LESLIE, LETCHER, MORGAN, PERRY, AND PIKE COUNTIES, WILL ALLOW ARH TO PROVIDE QUICK AND CONVENIENT ACCESS TO MEDICAL CARE FOLLOWING AN EMERGENCY OR DISASTER SUCH AS FLOODING, A TORNADO, WINTER STORM OR OTHER HAZARDOUS SITUATIONS. DURING THE PAST FISCAL YEAR, HIGHLANDS ARH CONTINUED TO PROVIDE OUTREACH AND COMMUNITY BENEFIT TO THE BIG SANDY REGION. THE KEY FOCUS THIS YEAR FOR THESE EVENTS WAS HOW BETTER NUTRITION COULD HELP BUILD HEALTHIER COMMUNITIES BOTH INSIDE AND OUTSIDE OF THE HOSPITAL, AS WELL AS INCREASED AWARENESS OF LUNG, BREAST AND COLON CANCERS, STROKE, AND DIABETES.

    Expenses $192,475,454 · Grants $5,000 · Revenue $207,759,971

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • Danny Harris

    TREASURER

    Total calculated
    $618,905
    From this org
    $0
    From related orgs
    $590,197
    Other
    $28,708
    Hours/week
    6 + 36 related

    Schedule J breakdown matched by us

    Base
    $0 + $458,877 related
    Bonus
    $0 + $131,320 related
    Other
    $0
    Deferred
    $0 + $20,500 related
    Nontaxable benefits
    $0 + $8,208 related
    Filer's total
    $0 + $618,905 related

  • Hollie Phillips

    CHAIRMAN

    Total calculated
    $1,109,740
    From this org
    $0
    From related orgs
    $1,074,400
    Other
    $35,340
    Hours/week
    6 + 41 related

    Schedule J breakdown matched by us

    Base
    $0 + $836,960 related
    Bonus
    $0 + $237,440 related
    Other
    $0
    Deferred
    $0 + $20,500 related
    Nontaxable benefits
    $0 + $14,840 related
    Filer's total
    $0 + $1,109,740 related

  • Jonathan Collins

    SECRETARY

    Total calculated
    $102,228
    From this org
    $0
    From related orgs
    $102,228
    Other
    $0
    Hours/week
    6

  • Tim Hatfield

    DIRECTOR

    Total calculated
    $328,900
    From this org
    $311,400
    From related orgs
    $0
    Other
    $17,500
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $251,400
    Bonus
    $60,000
    Other
    $0
    Deferred
    $17,500
    Nontaxable benefits
    $0
    Filer's total
    $328,900

  • Andrew Burchett

    CARDIOLOGIST

    Total calculated
    $681,220
    From this org
    $681,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $681,220
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $681,220

  • Gary N Francis

    GENERAL INTERNIST

    Total calculated
    $686,519
    From this org
    $686,519
    From related orgs
    $0
    Other
    $0
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $686,519
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $686,519

  • Joshua Minix

    GENERAL INTERNIST

    Total calculated
    $620,283
    From this org
    $620,283
    From related orgs
    $0
    Other
    $0
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $620,283
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $620,283

  • Robert N Royalty

    ORTHOPEDIC SURGEON

    Total calculated
    $2,088,745
    From this org
    $2,088,745
    From related orgs
    $0
    Other
    $0
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $2,088,745
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $2,088,745

  • Vellaiappan Somasundaram

    FAMILY PHYSICIAN

    Total calculated
    $664,880
    From this org
    $664,880
    From related orgs
    $0
    Other
    $0
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $664,880
    Bonus
    $0
    Other
    $0
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $664,880

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Written employment contract
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan
  • 6a · Pay contingent on this organization's net earnings

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6b · Pay contingent on a related organization's net earnings
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

PART I, LINE 4B
THE RELATED ORGANIZATION, ARH, PROVIDES SENIOR EXECUTIVES A CONTRIBUTION 3, 5,OR 7 PERCENT OF PAY (SUBJECT TO DOLLAR CAP), DEPENDING ON JOB TITLE, INTO THE TOP HAT 457(B) RETIREMENT PLAN. THE CONTRIBUTION AND EARNINGS ARE TAX DEFERRED UNTIL ASSETS ARE DISTRIBUTED OR WITHDRAWN. THE MAXIMUM CONTRIBUTION IS SUBJECT TO THE IRS COMPENSATION CAP, WHICH ALLOWS A CONTRIBUTION OF UP TO $20,500 IN 2022. THIS CONTRIBUTION TOTAL IS AN AGGREGATE TOTAL REGARDLESS OF WHETHER ARH OR THE EXECUTIVE MAKES THE CONTRIBUTION. CONTRIBUTION TO THE 457(B) DOES NOT AFFECT THE AMOUNTS THE EXECUTIVE MIGHT CONTRIBUTE TO THE 403(B) THRIFT PLAN. THE EXECUTIVE MAY CONTRIBUTE HIS/HER OWN MONEY TO THE PLAN PRE-TAX, TO THE EXTENT THE IRS CAPS ALLOW ROOM AFTER ARH'S CONTRIBUTION. CATCH UP CONTRIBUTIONS ARE ALLOWED WITHIN IRS LIMITS IN THE LAST THREE YEARS PRIOR TO RETIREMENT (AND, IF THE 3,5 OR 7 PERCENT OF PAY EXCEEDS THE REGULAR DOLLAR CAP, ARH MAY USE THE BALANCE OF THE PERCENTAGE TO FUND UP THE CATCH UP LIMIT). BENEFITS ARE SUBJECT TO SOCIAL SECURITY AND MEDICARE TAXES AS THEY ACCRUE. THE FUNDS ARE INVESTED AS DIRECTED BY THE EXECUTIVE, BUT THE ACCOUNT REMAINS A GENERAL ASSET OF ARH. IF ARH BECOMES INSOLVENT, THE EXECUTIVE WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. IF THE FUNDING OF THE 457(B), INCLUDING ANY CATCH UP PROVISIONS, IS LESS THAN THE 3,5 OR 7 PERCENT OF BASE PAY, THEN ARH WILL CONTRIBUTE THE REMAINDER TO A 457(F) PLAN. INDIVIDUALS PARTICIPATING IN THE 457(F) PLAN AND THE RESPECTIVE EMPLOYER CONTRIBUTIONS FOR EACH INCLUDE: HOLLIE HARRIS - $14,840; DANNY HARRIS - $8,207.50; MARIA BRAMAN - $7,927.50; BYRON GABBARD - $6,800; CHRISTIE LEE - $1,112.50; SONYA BERGMAN - $1,287.50
PART I, LINE 6
THE COMPENSATION AND CONTRACTS COMMITTEE OF THE RELATED ORGANIZATION (ARH) BOARD OF TRUSTEES ADOPTED A SHORT-TERM INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVES IN SEPTEMBER 2002. THE PROGRAM ESTABLISHED INCENTIVES FOR ACHIEVING SYSTEM AND COMMUNITY OBJECTIVES FOR EXECUTIVE LEADERSHIP BY INTEGRATING THE PERFORMANCE MANAGEMENT AND EXECUTIVE COMPENSATION SYSTEMS. THE INCENTIVE THRESHOLDS HAVE BEEN MODIFIED ACROSS TIME TO REFLECT INCREASED PERFORMANCE EXPECTATIONS AS IDENTIFIED IN THE SYSTEM'S STRATEGIC, BUDGET AND OPERATIONS PLAN. THE INCENTIVE AWARDS PROVIDE ADDITIONAL CASH COMPENSATION AS A PERCENTAGE OF BASE SALARY IN RELATION TO LEVELS OF ACHIEVEMENT. THESE ACHIEVEMENT LEVELS RANGE FROM THRESHOLD (LOWEST), TO TARGET (10% ABOVE THE THRESHOLD), AND MAXIMUM (HIGHEST AND 20% ABOVE THE THRESHOLD) AND VARY BASED UPON EXECUTIVE LEVEL. THE EXECUTIVE INCENTIVE PLAN WILL BE ADMINISTERED IN ACCORDANCE WITH THE FOLLOWING GUIDELINES: A. OBJECTIVES AND TARGETS ARE SET THROUGH THE STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT PROCESSES. B. SYSTEM MARGIN AND CASH BUDGET THRESHOLDS MUST BE MET BEFORE INDIVIDUAL AWARDS WILL BE CONSIDERED. C. AWARDS WILL BE CONSIDERED AS HAVING BEEN EARNED UPON AFFIRMATION BASED ON AUDITED FINANCIAL RESULTS AND ACTUAL OPERATING PERFORMANCE. D. THE PRESIDENT AND CEO WILL RECOMMEND PAYMENT OF INDIVIDUAL AWARDS, IF ANY, TO THE COMPENSATION AND CONTRACTS COMMITTEE FOR CONSIDERATION. E. THE COMPENSATION AND CONTRACTS COMMITTEE MAY ACCEPT, REJECT, OR MODIFY THE PRESIDENT AND CEO'S RECOMMENDATION.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Disregarded entities

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

  • HOMETOWN FAMILY CARE PLLC

    MEDICAL SERVICES · KY

    Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

  • HHS DEVELOPMENT COMPANY PAINTSVILLE LLC

    REAL ESTATE HOLDINGS · KY

    Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

  • HHS DEVELOPMENT COMPANY PRESTONBURG LLC

    REAL ESTATE HOLDINGS · KY

    Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

Related partnerships

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

  • HIGHLANDS MEDICAL PARTNERS II

    MEDICAL SERVICES · KY · 100% owned

    Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

Related corporations and trusts

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

  • CONSOLIDATED HEALTH ENTERPRISES INC

    C · PHARMACY · KY · 100% owned

    Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

Provenance

Return type
form_990
Tax year
2022
Filed
14 May 2024
IRS schema version
2022v5.0
Source object
202441369349306289

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