Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1c · Fundraising events

  $479,873

• 1d · Related organizations

  $716,888

• 1e · Government grants (contributions)

  $202,672,849

• 1f · All other contributions, gifts and grants

  $73,339,673

• 1g · Noncash contributions included above

  $1,685,280

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $913,642,629 · related or exempt $913,642,629

• 2b · Program service revenue: TUITION REVENUE

  total $62,225,895 · related or exempt $62,225,895

• 3 · Investment income

  total $48,463,766 · unrelated business $486,296 · excluded $47,977,470

• 5 · Royalties

  total $1,058,275 · excluded $1,058,275

• 6a · Gross rents

  real property $956,769

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $956,769

• 6d · Net rental income or loss

  total $956,769 · excluded $956,769

• 7a · Gross sales of assets other than inventory

  securities $12,320,005

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

  securities $0 · other assets $100,145,737

• 7c · Gain or loss

  securities $12,320,005 · other assets -$100,145,737

• 7d · Net gain or loss

  total -$87,825,732 · excluded -$87,825,732

• 8a · Fundraising events: gross income

  $0

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

  $479,873

• 8b · Fundraising events: direct expenses

  $333,735

• 8c · Net income from fundraising events

  total -$333,735 · excluded -$333,735

• 11a · Other revenue: OTHER REVENUE

  total $1,315,264 · related or exempt $763,586 · unrelated business $551,678

• 11b · Other revenue: PARKING REVENUE

  total $205,138 · excluded $205,138

• 11e · Other revenue, total

  $1,520,402

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $39,283,562 · program services $39,283,562

• 2 · Grants to domestic individuals

  total $25,404,625 · program services $25,404,625

• 3 · Grants to foreign organizations and individuals

  total $270,686 · program services $270,686

• 5 · Compensation of officers, directors and key employees

  total $27,012,682 · program services $13,479,328 · management and general $13,506,341 · fundraising $27,013

• 7 · Other salaries and wages

  total $736,298,900 · program services $716,405,449 · management and general $19,646,410 · fundraising $247,041

• 8 · Pension plan contributions

  total $56,697,873 · program services $55,128,325 · management and general $1,512,850 · fundraising $56,698

• 9 · Other employee benefits

  total $55,832,369 · program services $54,353,683 · management and general $1,422,916 · fundraising $55,770

• 10 · Payroll taxes

  total $54,545,490 · program services $53,035,527 · management and general $1,455,418 · fundraising $54,545

• 11b · Fees: legal

  total $5,057,495 · program services $5,057,495

• 11c · Fees: accounting

  total $561,719 · management and general $561,719

• 11d · Fees: lobbying

  total $197,705 · program services $197,705

• 11e · Fees: professional fundraising services

  total $1,293,298 · fundraising $1,293,298

• 11f · Fees: investment management

  total $7,090,473 · program services $4,781,296 · management and general $2,302,087 · fundraising $7,090

• 11g · Fees: other

  total $59,309,797 · program services $55,307,194 · management and general $3,985,619 · fundraising $16,984

• 12 · Advertising and promotion

  total $449,363 · program services $380,659 · management and general $68,255 · fundraising $449

• 13 · Office expenses

  total $12,871,762 · program services $11,393,649 · management and general $1,465,241 · fundraising $12,872

• 14 · Information technology

  total $4,005,682 · program services $3,545,695 · management and general $455,982 · fundraising $4,005

• 15 · Royalties

  total $204,573 · program services $204,573

• 16 · Occupancy

  total $60,452,028 · program services $53,510,096 · management and general $6,881,480 · fundraising $60,452

• 17 · Travel

  total $6,691,470 · program services $5,926,834 · management and general $757,977 · fundraising $6,659

• 19 · Conferences, conventions and meetings

  total $2,155,529 · program services $1,908,002 · management and general $245,372 · fundraising $2,155

• 20 · Interest

  total $7,265,585 · program services $4,906,644 · management and general $2,358,941

• 22 · Depreciation, depletion and amortization

  total $34,931,153 · program services $32,563,508 · management and general $2,367,645

• 23 · Insurance

  total $4,196,770 · program services $3,719,036 · management and general $477,734

• 24a · Other expenses: MEDICAL SUPPLIES

  total $78,895,314 · program services $78,895,314

• 24b · Other expenses: BAD DEBT

  total $69,097,443 · program services $69,097,443

• 24c · Other expenses: OTHER SUPPLIES

  total $7,506,371 · program services $6,644,386 · management and general $854,478 · fundraising $7,507

• 24d · Other expenses: INCOME TAXES

  total -$291,675 · program services -$210,044 · management and general -$81,631

• 24e · All other expenses

  total $1,602,473 · program services $1,438,640 · management and general $162,406 · fundraising $1,427

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  end of year $8,778,364

• 3 · Pledges and grants receivable

  beginning of year $73,622,386 · end of year $84,812,738

• 4 · Accounts receivable

  beginning of year $2,210,517,421 · end of year $125,686,449

• 7 · Other notes and loans receivable

  beginning of year $304,381 · end of year $15,254,169

• 8 · Inventories for sale or use

  beginning of year $2,610,885 · end of year $4,262,528

• 9 · Prepaid expenses and deferred charges

  beginning of year $6,258,171 · end of year $4,259,219

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

  $987,502,468

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

  $603,435,003

• 10c · Land, buildings and equipment, net

  beginning of year $362,990,661 · end of year $384,067,465

• 11 · Investments: publicly traded securities

  beginning of year $3,630,000 · end of year $1,180,000

• 12 · Investments: other securities

  beginning of year $1,108,691,731 · end of year $1,056,874,535

• 13 · Investments: program-related

  beginning of year $13,997,460 · end of year $3,298,532

• 14 · Intangible assets

  beginning of year $1,691,044 · end of year $2,284,834

• 15 · Other assets

  beginning of year $279,295,647 · end of year $250,280,530

• 17 · Accounts payable and accrued expenses

  beginning of year $2,645,115,016 · end of year $683,629,194

• 19 · Deferred revenue

  beginning of year $67,723,176 · end of year $65,309,479

• 20 · Tax-exempt bond liabilities

  beginning of year $127,538,990 · end of year $119,381,173

• 23 · Secured mortgages and notes payable

  beginning of year $44,755,255 · end of year $40,819,969

• 25 · Other liabilities

  beginning of year $235,542,996 · end of year $201,611,731

• 27 · Net assets without donor restrictions

  beginning of year $633,375,796 · end of year $533,257,154

• 28 · Net assets with donor restrictions

  beginning of year $309,558,558 · end of year $297,030,663

The filer's explanations (Part III)

PART I, LINE 3

AS MOST OF THE OFFICERS AND OTHER SENIOR EXECUTIVES OF THE FILING ORGANIZATION HOLD IDENTICAL OFFICES OR POSITIONS IN RELATED ORGANIZATION WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER ("WFUBMC") AND IN UNRELATED BUT AFFILIATED ORGANIZATIONS NORTH CAROLINA BAPTIST HOSPITAL ("NCBH") AND CHARLOTTE MECKLENBURG HOSPITAL AUTHORITY (CMHA), THE DETERMINATION OF THE COMPENSATION OF SUCH INDIVIDUALS IS CONDUCTED VIA THE PROCESS UTILIZED BY THE WFUBMC BOARD, AS FOLLOWS: THE DIVERSITY, INCLUSION, & COMPENSATION COMMITTEE (THE "COMMITTEE") OF THE ATRIUM HEALTH, INC. BOARD OF DIRECTORS HAS AUTHORITY AS THE WFUBMC BOARD DELEGATES TO IT, FOR THE REVIEW AND APPROVAL OF SENIOR EXECUTIVE COMPENSATION, INCLUDING SENIOR EXECUTIVE INCENTIVE PLANS. NO MEMBER OF THE COMMITTEE IS AN EMPLOYEE OF WFUBMC OR OF THE FILING ORGANIZATION. THE COMMITTEE RELIES UPON AN EXTERNAL, INDEPENDENT COMPENSATION CONSULTANT EXPERIENCED IN HEALTHCARE TO PROVIDE THE COMMITTEE WITH COMPENSATION COMPARABILITY DATA FOR NEW EXECUTIVE POSITION APPOINTMENTS AND FOR COMPENSATION REVIEWS FOR EXISTING EXECUTIVES. THE CONSULTANT, WHICH IS RETAINED DIRECTLY BY THE COMMITTEE, PROVIDES THIRD-PARTY INFORMATION AND EVALUATES THE COMPETITIVENESS AND REASONABLENESS OF EXECUTIVE COMPENSATION AND BENEFITS PROGRAMS IN RELATION TO MARKET PRACTICES FOR SIMILARLY SITUATED HEALTHCARE ORGANIZATIONS. THE COMMITTEE MAKES ITS DECISIONS WITH RESPECT TO EXECUTIVE COMPENSATION IN ACCORDANCE WITH WFUBMC AND FILING ORGANIZATION POLICIES, IRS REGULATIONS, AND STANDARD CORPORATE GOVERNANCE PRACTICES. SUCH POLICIES INCLUDE ADHERENCE TO EXECUTIVE COMPENSATION PHILOSOPHY AND REVIEW PROCESSES; PROCESSES ENSURING COMMITTEE MEMBER AND COMPENSATION CONSULTANT INDEPENDENCE; USE OF VALID MARKET COMPARISONS OF DATA FROM HEALTHCARE ORGANIZATIONS OF SIMILAR SIZE, STRUCTURE, AND COMPLEXITY AND ESTABLISHMENT OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS, PER IRS GUIDELINES. MINUTES OF THE DELIBERATIONS OF THE COMMITTEE ARE MAINTAINED IN THE ATRIUM HEALTH, INC. LEGAL DEPARTMENT. FOUR OF THE FILING ORGANIZATION'S OFFICERS OR FORMER OFFICERS ARE COMPENSATED BY RELATED ORGANIZATION WAKE FOREST UNIVERSITY ("WFU"), AND THEIR COMPENSATION IS REVIEWED AND APPROVED IN ACCORDANCE WITH WFU'S SIMILAR PROCEDURES. THIS PROCESS IS ALSO DESCRIBED IN THE NARRATIVE EXPLANATION TO FORM 990, PART VI, SECTION B, LINE 15, FOUND IN SCHEDULE O.

PART I, LINES 4A-B

CERTAIN DIRECTORS, OFFICERS, AND HIGHLY COMPENSATED EMPLOYEES OF THE FILING ORGANIZATION PARTICIPATED IN AND/OR RECEIVED PAYMENTS FROM A NON-QUALIFIED DEFERRED COMPENSATION PLAN (RESTORATION OR SERP) AND/OR RECEIVED PAYMENTS FOR SEVERANCE. THE DETERMINATION OF THE PAYMENT AMOUNT FROM NON-QUALIFIED DEFERRED COMPENSATION PLANS FOLLOWED THE EMPLOYMENT ORGANIZATION'S COMPENSATION PROCEDURES. THE FOLLOWING DIRECTORS, OFFICERS, AND HIGHLY COMPENSATED EMPLOYEES RECEIVED PAYMENTS FOR SEVERANCE AND/OR PAYMENTS FROM NON-QUALIFIED DEFERRED COMPENSATION PLANS DURING THE CURRENT TAX YEAR: SEVERANCE PAYMENTS: KAREN HUEY $203,750 NON-QUALIFIED DEFERRED COMPENSATION PAYMENTS: ANTHONY ATALA, MD $170,000 BRADLEY A. CLARK $34,775 JULIE FREISCHLAG, MD $513,500 TERRY L. HALES, JR. $81,185 KEVIN HIGH, MD $137,928 WILLIAM SHOWALTER $99,248 DAVID ZHAO, MD $184,088 LISA M. MARSHALL $31,313 ANDREW KOMAN, MD $610,920 SUSAN R. WENTE, PHD $225,000 J. REID MORGAN $75,000

PART I, LINE 7

CERTAIN OFFICERS, KEY EMPLOYEES AND FACULTY MEMBERS HAVE INCENTIVE COMPENSATION COMPONENTS CONTAINED IN THEIR EMPLOYMENT AGREEMENTS. THESE ARE OFTEN GOAL-BASED AND ARE DETERMINED IN THE COURSE OF EVALUATION OF THE INDIVIDUAL'S PERFORMANCE BY HIS/HER DEPARTMENT CHAIR, SUPERVISOR OR THE COMPENSATION COMMITTEE OF THE BOARD, AS APPLICABLE.

FORM 990, PART VII, LINE 5 - COMPENSATION FROM UNRELATED ORGANIZATIONS

THE FOLLOWING OFFICERS WERE COMPENSATED BY THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY ("CMHA", DOING BUSINESS AS ATRIUM HEALTH), AN AFFILIATED BUT UNRELATED ORGANIZATION, FOR SERVICES RENDERED TO THE ORGANIZATION. SEE PART VII AND SCHEDULE J, PART II FOR THEIR COMPENSATION. BRADLEY A. CLARK TERRY G. WILLIAMS

Disregarded entities

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

• BRF-A1A LLC

  REAL ESTATE HOLDING COMPANY · NC · income $589,908 · assets $301,743

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• WFIQ HOLDINGS LLC

  REAL ESTATE HOLDING COMPANY · NC · income $634,572 · assets $76,934,729

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• SEED STAGE ASSOCIATES LLC

  TECHNOLOGY TRANSFER & LICENSING OF INTELLECTUAL PROPERTY · NC · income $0 · assets $0

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• BRF DECK 1 LLC

  REAL ESTATE HOLDING COMPANY · NC · income $0 · assets $0

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• BRF-A1 LLC

  REAL ESTATE HOLDING COMPANY · NC · income $0 · assets $259,691

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• WFIQ HOLDINGS II LLC

  REAL ESTATE HOLDING COMPANY · NC · income $0 · assets $0

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• WFIQ HOLDINGS III LLC

  REAL ESTATE HOLDING COMPANY · NC · income $0 · assets $1,927,715

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

• PARK IMP 1 LLC

  REAL ESTATE HOLDING COMPANY · NC · income $0 · assets $0

  Directly controlled by WAKE FOREST UNIV HEALTH SCIENCES

Related partnerships

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

• VERGER FUND II LLC

  EXCLUDED · INVESTMENT · NC · 64.31% owned · share of income $56,547,206 · share of assets $486,281,255

  Directly controlled by WAKE FOREST UNIVERSITY HEALTH SCIENCES

• VERGER CAPITAL FUND LLC

  INVESTMENT · NC

• VERGER CAPITAL MANAGEMENT LLC

  INVESTMENT · NC

• WAKE FOREST TECHNOLOGY DEVELOPMENT PROGRAM LP

  EXCLUDED · INVESTMENT · NC · 99% owned · share of assets $4,405,121

  Directly controlled by WAKE FOREST UNIVERSITY HEALTH SCIENCES

• WAKE FOREST AMBULATORY VENTURES LLC

  EXCLUDED · HEALTHCARE · NC · 80% owned · share of income $2,663,781 · share of assets $3,466,165

  Directly controlled by WAKE FOREST UNIVERSITY HEALTH SCIENCES

Related corporations and trusts

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

• CHARITABLE REMAINDER TRUSTS

  INVESTMENT · NC

  Directly controlled by WAKE FOREST UNIVERSITY HEALTH SCIENCES

• NORTH DISTRICT OWNERS ASSOCIATION

  C · PROPERTY OWNERS ASSOCIATION · NC