Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $47,323

• 1c · Fundraising events

  $130,176

• 1e · Government grants (contributions)

  $399,730

• 1f · All other contributions, gifts and grants

  $14,594,149

• 1g · Noncash contributions included above

  $367,628

• 2a · Program service revenue: AFFILIATE RENTAL

  total $472,706 · related or exempt $472,706

• 2b · Program service revenue: HOSPITAL MANAGEMENT CONTRACT

  total $5,880,000 · related or exempt $5,880,000

• 3 · Investment income

  total $6,534,183 · excluded $6,534,183

• 4 · Income from investment of tax-exempt bond proceeds

  total $0

• 5 · Royalties

  total $0

• 6a · Gross rents

  real property $16,597

• 6c · Rental income or loss

  real property $16,597 · personal property $0

• 6d · Net rental income or loss

  total $16,597 · excluded $16,597

• 7a · Gross sales of assets other than inventory

  securities $5,155,520

• 7c · Gain or loss

  securities $5,155,520

• 7d · Net gain or loss

  total $5,155,520 · excluded $5,155,520

• 8a · Fundraising events: gross income

  $50,050

• 8a · Fundraising events: contributions included on line 1c

  $130,176

• 8b · Fundraising events: direct expenses

  $137,429

• 8c · Net income from fundraising events

  total -$87,379 · excluded -$87,379

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

  total $0

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 10c · Net income from sales of inventory

  total $0

• 11a · Other revenue: MISCELLANEOUS REVENUE

  total $517 · excluded $517

• 11e · Other revenue, total

  $517

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $18,262,679 · program services $18,262,679

• 2 · Grants to domestic individuals

  total $6,265 · program services $6,265

• 3 · Grants to foreign organizations and individuals

  total $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $0

• 6 · Compensation of disqualified persons

  total $0

• 7 · Other salaries and wages

  total $2,265,562 · program services $2,265,562

• 8 · Pension plan contributions

  total $0

• 9 · Other employee benefits

  total $1,999,766 · program services $1,999,766

• 10 · Payroll taxes

  total $0

• 11a · Fees: management

  total $0

• 11b · Fees: legal

  total $0

• 11c · Fees: accounting

  total $0

• 11d · Fees: lobbying

  total $0

• 11e · Fees: professional fundraising services

  total $190,729 · fundraising $190,729

• 11f · Fees: investment management

  total $902,771 · management and general $902,771

• 11g · Fees: other

  total $0

• 12 · Advertising and promotion

  total $0

• 13 · Office expenses

  total $42,639 · program services $42,639

• 14 · Information technology

  total $1,554 · program services $1,554

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $250,313 · program services $250,313

• 17 · Travel

  total $4,420 · program services $4,420

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $309 · management and general $309

• 20 · Interest

  total $0

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $431,400 · program services $250,212 · management and general $181,188

• 23 · Insurance

  total $259,938 · management and general $259,938

• 24a · Other expenses: SUTTER CHARGEBACKS

  total $1,376,927 · management and general $1,376,927

• 24b · Other expenses: DONOR CULTIVATION

  total $663,488 · program services $663,488

• 24c · Other expenses: PURCHASED SERVICES

  total $256,243 · program services $256,243

• 24d · Other expenses: DIRECT MAIL

  total $66,909 · program services $66,909

• 24e · All other expenses

  total $22,414 · program services $20,469 · management and general $1,945

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $0 · end of year $0

• 2 · Savings and temporary cash investments

  beginning of year $8,404,030 · end of year $11,382,622

• 3 · Pledges and grants receivable

  beginning of year $11,904,749 · end of year $10,148,849

• 4 · Accounts receivable

  beginning of year $0 · end of year $0

• 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 $178,585 · end of year $0

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

  $10,574,900

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

  $6,668,465

• 10c · Land, buildings and equipment, net

  beginning of year $4,337,834 · end of year $3,906,435

• 11 · Investments: publicly traded securities

  beginning of year $459,859,500 · end of year $409,030,700

• 12 · Investments: other securities

  beginning of year $0 · end of year $0

• 13 · Investments: program-related

  beginning of year $0 · end of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year $556,080 · end of year $406,460

• 17 · Accounts payable and accrued expenses

  beginning of year $8,535 · end of year $8,535

• 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 $27,888,072 · end of year $9,849,234

• 27 · Net assets without donor restrictions

  beginning of year $222,338,217 · end of year $191,994,867

• 28 · Net assets with donor restrictions

  beginning of year $235,005,954 · end of year $233,022,430

The filer's explanations (Part III)

SCHEDULE J, PART I, LINE 3

SUPPLEMENTAL COMPENSATION INFORMATION: THE PRESIDENT OF THIS ORGANIZATION IS AN EMPLOYEE OF SUTTER BAY HOSPITALS, AN AFFILIATE OF SUTTER HEALTH, WHICH ARE BOTH RELATED TAX-EXEMPT ORGANIZATIONS. THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTER'S EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATION'S OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH.

SCHEDULE J, PART I, LINE 4B

NONQUALIFIED RETIREMENT PLAN: CERTAIN INDIVIDUALS PAID BY SUTTER HEALTH PARTICIPATE IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTH'S OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN. SUTTER'S PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTH EMPLOYEES IS A COMBINATION OF 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PENSION PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA PROVIDES 6% TO 12% OF BASE SALARY PLUS ANNUAL INCENTIVE AWARD (COMMENSURATE WITH MANAGEMENT LEVEL). CONTRIBUTIONS ARE ALSO MADE FOR A SMALL GROUP OF SENIOR LEVEL EXECUTIVES WHOSE ESTIMATED RETIREMENT BENEFIT (SOCIAL SECURITY PLUS QUALIFIED PLAN BENEFITS PLUS 457(F)) FALLS BELOW 50% - 65% OF FINAL 4-YEAR AVERAGE BASE SALARY WHEN RETIRING AT AGE 65 WITH 22.5 YEARS OF SERVICE. TARGET BENEFIT LEVELS ARE DISCOUNTED FOR YEARS OF SERVICE LESS THAN 22.5 AT AGE 65. UNLIKE SUTTER HEALTH'S QUALIFIED PENSION PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTER'S NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT.

Schedule J, Part I, Line 7

NON-FIXED PAYMENTS: SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD. AVERAGE AMOUNT OF SPOT AWARDS TEND TO NOT EXCEED 5% TO 15% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP): THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, OPERATING UNIT AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. LONG TERM PERFORMANCE PLANS SUTTER HEALTH ALSO EMPLOYS LONG TERM PERFORMANCE PLANS WHICH ARE DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTER'S LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL LONG TERM PERFORMANCE PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS. THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED PRIOR TO PAYMENT BY THE COMPENSATION COMMITTEE.

Related partnerships

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

• SURGERY CTR OF ABSMC

  PATIENT CARE · CA

• ALTA CT SERVICES LP

  PATIENT CARE · CA

• CALIFORNIA PACIFIC ADVIMAGING

  PATIENT CARE · CA

• SAN FRANCISCO ENDOSCOPY CTR

  PATIENT CARE · CA

• SUTTER FAIRFIELD SURGERY CTR

  PATIENT CARE · CA

• SUTTER AMADOR SURGERY CTR

  PATIENT CARE · CA

• ROSEVILLE ENDOSCOPY CTR

  PATIENT CARE · CA

• MEMORIAL MED OFFICE BLDG PHASE II

  Office Rental · CA

• Magnetic Imaging Affiliates LLC

  PATIENT CARE · CA

• STANISLAUS SURGICAL HOSPITAL LLC

  PATIENT CARE · CA

• ASC OPERATORS SANTA ROSA LLC

  CARE MANAGEMENT · CA

• Divisadero Holdings LLC

  CARE MANAGEMENT · CA

• PENINSULA ENDOSCOPY CENTER LLC

  PATIENT CARE · CA

• South Placer Surgery Center

  Patient Care · CA

• Sacramento Surgery Center Associates LP

  patient care · CA

• Fort Sutter Surgery Center

  patient care · CA

• Sutter Alhambra Surgery Center

  patient care · CA

• Auburn Surgical Center

  patient care · CA

• ASC Operators LLC

  care management · CA

• D E SHAW ALL COUNTRY GLOBAL ALPHA PLUS

  Investment · DE

• ICG CREDIT OPPORTUNITIES FUND 1A LP

  Investment · DE

• ICG CREDIT OPPORTUNITIES FUND 2A LP

  investment · DE

• MAKENA REAL ESTATE II LP

  investment · CJ

• D E SHAW ALL COUNTRY GLOBAL ALPHA LL

  iNVESTMENT · DE

• ICG CREDIT OPPORTUNITIES FUND LP

  investment · DE

• ICG SPECIAL OPPORTUNITIES FUND I LP

  investment · DE

Related corporations and trusts

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

• CHARITABLE REMAINDER TRUSTS-1

  CRT · CA

  Directly controlled by CPMCF

• Northwood Europe TE Feeder LP

  C CORP · HOLDING COMPANY · CJ · controlled entity

  Directly controlled by NA

• SUTTER HEALTH DEFERRED COMP PLANS' TRUST

  TRUST · RABBI TRUST · CA · controlled entity

  Directly controlled by NA

• Health Ventures Inc

  C corp · Health Serv. · CA · controlled entity

  Directly controlled by SBH

• Lyxsop Segregated Portfolio 1

  c CORP · INVESTMENT · CJ · controlled entity

• Lyxsop Segregated Portfolio 2

  c corp · INVESTMENT · CJ · controlled entity

• AQR REAL RETURN OFFSHORE FUND LP

  C Corp · Investment · CJ · controlled entity

• BRIGADE LEVERAGED CAPITAL STRUCTURE OFFS

  C Corp · investment · CJ · controlled entity