Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $4,339,544

• 1e · Government grants (contributions)

  $1,346,084

• 2a · Program service revenue: PATIENT REVENUE, NET

  total $294,201,002 · related or exempt $294,201,002

• 2b · Program service revenue: REPORTING/QUALITY INCENTIVES

  total $19,475,362 · related or exempt $19,475,362

• 2c · Program service revenue: PHYSICIAN SERVICES/COVERAGE

  total $444,999 · related or exempt $444,999

• 2d · Program service revenue: HEALTHY WOMENS PROGRAM

  total $123,131 · related or exempt $123,131

• 2e · Program service revenue: WEST SHORE PARTNERSHIP

  total $43,891 · related or exempt $43,891

• 3 · Investment income

  total $155,307 · excluded $155,307

• 6a · Gross rents

  real property $1,815,189

• 6b · Less rental expenses

  real property $636,333

• 6c · Rental income or loss

  real property $1,178,856

• 6d · Net rental income or loss

  total $1,178,856 · excluded $1,178,856

• 7a · Gross sales of assets other than inventory

  other assets $102,182

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

  other assets $101,073

• 7c · Gain or loss

  other assets $1,109

• 7d · Net gain or loss

  total $1,109 · excluded $1,109

• 11a · Other revenue: I/C LOSS REIMBURSEMENT

  total $252,990,121 · excluded $252,990,121

• 11b · Other revenue: OTHER MED. SVC. INCOME

  total $1,320,500 · excluded $1,320,500

• 11c · Other revenue: ACUTE CARE INCOME

  total $267,975 · excluded $267,975

• 11d · All other revenue

  total $58,831 · unrelated business $17,933 · excluded $40,898

• 11e · Other revenue, total

  $254,637,427

Functional expenses

Part IX, the statement of functional expenses.

• 2 · Grants to domestic individuals

  total $329,713 · program services $329,713

• 5 · Compensation of officers, directors and key employees

  total $2,115,941 · program services $2,115,941

• 7 · Other salaries and wages

  total $364,795,929 · program services $328,120,384 · management and general $36,675,545

• 8 · Pension plan contributions

  total $11,500,246 · program services $10,336,778 · management and general $1,163,468

• 9 · Other employee benefits

  total $30,401,633 · program services $27,359,271 · management and general $3,042,362

• 10 · Payroll taxes

  total $19,254,603 · program services $17,329,143 · management and general $1,925,460

• 11a · Fees: management

  total $50,769,371 · management and general $50,769,371

• 11b · Fees: legal

  total $49,693 · management and general $49,693

• 11f · Fees: investment management

  total $94,968 · management and general $94,968

• 11g · Fees: other

  total $15,193,291 · program services $14,492,168 · management and general $701,123

• 12 · Advertising and promotion

  total $181,508 · program services $181,508

• 13 · Office expenses

  total $1,545,088 · program services $1,236,070 · management and general $309,018

• 14 · Information technology

  total $1,232,391 · program services $1,047,532 · management and general $184,859

• 16 · Occupancy

  total $29,419,613 · program services $25,006,671 · management and general $4,412,942

• 17 · Travel

  total $1,019,976 · program services $713,983 · management and general $305,993

• 19 · Conferences, conventions and meetings

  total $164,337 · program services $164,337

• 20 · Interest

  total $67,406 · management and general $67,406

• 22 · Depreciation, depletion and amortization

  total $6,883,844 · program services $6,195,460 · management and general $688,384

• 23 · Insurance

  total $331,744 · program services $331,744

• 24a · Other expenses: PHARMACY

  total $15,377,382 · program services $15,377,382

• 24b · Other expenses: BAD DEBT

  total $11,787,795 · program services $11,787,795

• 24c · Other expenses: MEDICAL SUPPLIES

  total $8,057,721 · program services $8,057,721

• 24d · Other expenses: REPAIRS & MAINTENANCE

  total $1,642,174 · program services $1,642,174

• 24e · All other expenses

  total $3,730,345 · program services $3,637,493 · management and general $92,852

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $14,330 · end of year $15,560

• 2 · Savings and temporary cash investments

  beginning of year $656,505 · end of year $676,417

• 4 · Accounts receivable

  beginning of year $27,127,830 · end of year $29,771,862

• 9 · Prepaid expenses and deferred charges

  beginning of year $3,097,529 · end of year $3,823,312

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

  $60,976,864

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

  $30,539,880

• 10c · Land, buildings and equipment, net

  beginning of year $32,409,787 · end of year $30,436,984

• 13 · Investments: program-related

  beginning of year $10,292 · end of year $30,808

• 14 · Intangible assets

  beginning of year $39,509,383 · end of year $49,458,741

• 15 · Other assets

  beginning of year $125,021 · end of year $81,248

• 17 · Accounts payable and accrued expenses

  beginning of year $20,185,729 · end of year $20,775,100

• 19 · Deferred revenue

  beginning of year $391,565 · end of year $512,238

• 23 · Secured mortgages and notes payable

  beginning of year $1,486,964 · end of year $1,094,840

• 25 · Other liabilities

  beginning of year $784,425,151 · end of year $801,134,131

• 27 · Net assets without donor restrictions

  beginning of year -$703,538,732 · end of year -$709,221,377

The filer's explanations (Part III)

PART I, LINE 3

PINNACLE HEALTH MEDICAL SERVICES RELIES ON UPMC PINNACLE, A RELATED ORGANIZATION, TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S CEO. METHODS USED TO ESTABLISH COMPENSATION BY THE RELATED ORGANIZATION INCLUDE: * COMPENSATION COMMITTEE * INDEPENDENT COMPENSATION CONSULTANT * COMPENSATION SURVEY OR STUDY * APPROVAL BY THE COMPENSATION COMMITTEE OF THE BOARD

PART I, LINES 4A-B

PHILIP GUARNESCHELLI, PRESIDENT AND CEO, RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $782,433 IN CALENDAR YEAR 2023 RELATED TO HIS DEPARTURE FROM THE ORGANIZATION. ALL PERSONS PARTICIPATING IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ARE DISCLOSED IN SCHEDULE J WITH CORRESPONDING AMOUNTS DISCLOSED WITHIN THE TOTAL AMOUNT IN SCHEDULE J COLUMN C "RETIREMENT AND OTHER DEFERRED COMPENSATION". DUE TO RESTRICTIONS IMPOSED BY THE INTERNAL REVENUE CODE ("CODE"), CERTAIN OFFICERS AND KEY EMPLOYEES ARE LIMITED IN THE AMOUNT OF BENEFITS WHICH MAY BE RECEIVED UNDER A TAX QUALIFIED RETIREMENT PROGRAM. LIKE MANY EMPLOYERS, UPMC SUPPLEMENTS ITS RETIREMENT BENEFITS THROUGH A SUPPLEMENTAL RETIREMENT PROGRAM. THE SUPPLEMENTAL RETIREMENT PROGRAM IS SUBJECT TO MULTI YEAR VESTING WHICH PLACES THE OFFICERS AND KEY EMPLOYEES' RETIREMENT BENEFIT AT RISK OF FORFEITURE IF THE VESTING REQUIREMENTS ARE NOT SATISFIED. ONCE VESTED HOWEVER, PROVISIONS OF THE CODE REQUIRE THAT THE VESTED AMOUNTS BE REPORTED ON THE FORM 990 AND THE VESTED OFFICER OR KEY EMPLOYEE INCLUDE IN CURRENT INCOME THE VALUE OF HER OR HIS SUPPLEMENTAL RETIREMENT BENEFIT. NOTWITHSTANDING THE TAX REQUIREMENT TO RECOGNIZE THE VESTED AMOUNT OF THE SUPPLEMENTAL RETIREMENT BENEFIT AS CURRENT INCOME FOR FICA TAXATION AND REPORTING PURPOSES, THIS BENEFIT, WHICH GENERALLY HAS BEEN EARNED OVER HER OR HIS ENTIRE CAREER, HAS NOT AND WILL NOT BE DISTRIBUTED UNTIL THE OFFICER OR KEY EMPLOYEE RETIRES OR SEPARATES FROM SERVICE FROM UPMC AND SATISFIED THE NON-COMPETE PROVISION OF THEIR EMPLOYMENT AGREEMENT AND/OR SATISFY A POST-RETIREMENT SEPARATION AGREEMENT. THE SUPPLEMENTAL RETIREMENT PROGRAM PROVIDES FOR THE CURRENT DISTRIBUTION OF ONLY THE AMOUNT NECESSARY TO SATISFY ANY INCOME TAX LIABILITY RESULTING FROM THE VESTING DURING ACTIVE EMPLOYMENT. FINALLY, IT SHOULD BE NOTED THAT IN ACCORDANCE WITH IRS INSTRUCTIONS, A SUBSTANTIAL PORTION OF THE AMOUNT REPORTED ON THE FORM 990 ATTRIBUTABLE TO SUPPLEMENTAL RETIREMENT PROGRAM VESTING HAS BEEN REPORTED IN PREVIOUSLY FILED FORMS 990.

PART I, LINE 7

UPMC PROVIDES INCENTIVE COMPENSATION AS PART OF ITS TOTAL COMPENSATION PROGRAM FOR OFFICERS AND KEY EMPLOYEES. THIS COMPONENT IS BASED UPON THE ACCOMPLISHMENT OF PREDETERMINED PERFORMANCE GOALS AND OBJECTIVES WHICH FOCUS ON THE ACHIEVEMENT OF MULTIPLE ANNUAL AND THREE YEAR INDIVIDUAL AND GROUP PERFORMANCE CRITERIA IN THE CONTEXT OF APPROPRIATE RISK TAKING. THESE CRITERIA DIRECTLY SUPPORT UPMC'S MISSION AND INCLUDE: PATIENT QUALITY AND SATISFACTION, COMMUNITY BENEFITS, OPERATIONAL AND FINANCIAL STRENGTH, LEADERSHIP DEVELOPMENT, AND STRATEGIC BUSINESS INITIATIVES AMONG OTHERS.

Related partnerships

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

• CHAUTAUQUA INTEGRATED DELIVERY SYSTEM I

  INTEGRATED DELIVE · NY

• MEDCARE SUSQUEHANNA VALLEY LLC

  DME · PA

• UPMC LEADER SURGERY CENTER LLC

  SURGERY CENT · PA

• BAYFRONT BUILDING PROFESSIONAL LLC

  REAL ESTATE · PA

• CHARTWELL PA LP

  HOMEHEALTH · PA

• EPN-HAMOT URGENT CARE LLC

  URGENT CARE · PA

• HAMOT SURGERY CENTER LLC

  AMBULATORY SU · PA

• HAMOT-KCH REAL ESTATE VENTURE

  MEDICAL OFFIC · PA

• LIFE CARE HOME SRV OF NW PA

  HOME HEALTH S · PA

• OMICELO RE I LP

  REAL ESTATE D · PA

• SENECA HILLS ASSISTED LIVING

  ASSISTED LIVI · PA

• SHADYSIDE MEDICAL CENTER ASSOCIATION

  MED OFFICE BL · PA

• ST MARGARET MEDICAL ARTS ASSOCIATES

  MED OFFICE BL · PA

• TRI-STATE SURGERY CENTER LLC

  SURGERY CENT · PA

• MEDCARE EQUIPMENT COMPANY LLC

  MEDICAL EQUIP · PA

• WEST SHORE SURGERY CENTER LTD

  RELATED · SURGICAL CARE - MEDICAL SERVICES · PA · 2% owned · share of income $26,589 · share of assets $72,485

  Directly controlled by PINNACLE HEALTH MEDICAL SERVICES

Related corporations and trusts

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

• HC PHARMACY CENTRAL INC

  C · PHARMACY CO-O · PA

• CHILDREN'S COMMUNITY CARE

  C · PHYSICIAN SRV · PA

• UPMC PHYSICIAN SERVICES HOLDING COMPANY

  C · HOLDING CO · PA

• HEMATOLOGY ONCOLOGY ASSOCIATION INC

  C · PHYSICIAN SRV · PA

• ONCOLOGY HEMATOLOGY ASSOCATION INC

  C · PHYSICIAN SRV · PA

• TRI-STATE NEUROSURGICAL ASSOCIATES

  C · PHYSICIAN SRV · PA

• RENAISSANCE FAMILY PRACTICE UPMC INC

  C · PHYSICIAN SRV · PA

• UPMC HOLDING COMPANY INC

  C · HOLDING CO · PA

• UPMC COVERAGE PRODUCTS INC

  C · HOLDING CO · PA

• FREEDOM INSURANCE COMPANY

  C · INSURANCE · VT

• TRI-CENTURY INSURANCE CO

  C · INSURANCE · PA

• UPMC DNA INC

  C · INSURANCE · PA

• UPMC HEALTH BENEFITS INC

  C · HEALTH INSUR · PA

• UPMC HEALTH NETWORK INC

  C · HEALTH INSUR · PA

• UPMC HEALTH PLAN INC

  C · HEALTH INSUR · PA

• UPMC BENEFIT MANAGEMENT SERVICES INC

  C · WORKERS COMP · PA

• UPMC DIVERSIFIED SERVICES INC

  C · HOLDING CO · PA

• MONROEVILLE SPECIALTY CLINIC

  C · AMB SURG · PA

• MEDICAL ARCHIVAL SYSTEMS INC

  C · SOFTWARE DEVE · DE

• RX PARTNERS INC

  C · PHARMACY · PA

• BIOTRONICS INC

  C · EQUIP MAINTEN · PA

• ASKESIS DEVELOPMENT GROUP INC

  C · SOFTWARE DEVE · DE

• MEDICAL CENTER PROPERTIES INC

  C · REAL ESTATE · PA

• BAYSIDE DEVELOPMENT CORP

  C · REAL ESTATE · PA

• UPMC WORK ALLIANCE INC

  C · INSURANCE · PA

• UPMC HEALTH COVERAGE INC

  C · INSURANCE · PA

• UPMC HEALTH OPTIONS INC

  C · INSURANCE · PA

• AMERICAN HOME HEALTH SERVICES

  C · HOME HEALTH C · OH

• ALTOONA FAMILY INC

  C · MGMT SVCS · PA

• LEXINGTON HOLDINGS INC

  C · HOLDING CO · PA

• LEXINGTON ONE INC

  C · RENTAL · PA

• UPMC ALTOONA REGIONAL HEALTH SERVICES

  C · PHYSICIAN SRV · PA

• RXANTE INC

  C · MEDICATION MG · DE

• SUSQUEHANNA VENTURES INC

  C · PHARMACY · PA

• WCA SERVICE CORPORATION INC

  C · SUPPORT · NY

• PINNACLE HEALTH CARDIOVASCULAR INSTITUT

  C · PHYSICIAN SRV · PA

• HANOVER HEALTH CORPORATION

  C · HOLDING CO · PA

• HANOVER APOTHECARY INC

  C · PHARMACY · PA

• UNITED CENTRAL PA RECIPROCAL RISK RETEN

  C · INSURANCE · VT

• PINNACLE HEALTH VENTURES INC

  C · HOLDING CO · PA

• PINNACLE HEALTH IMAGING INC

  C · IMAGING SVC · PA

• COLE CARE INC

  C · DME · PA

• UPMC ITALY HEALTH SERVICES SRL

  C · HEALTH SVC · IT

• UPMC PROPERTY LTD

  C · PROPERTY · EI

• EURO CARE INFRASTRUCTURE LTD

  C · PROPERTY MGMT · EI

• EURO CARE PROPERTY MANAGEMENT LTD

  C · PROPERTY MGMT · EI

• UPMC WHITFIELD HOSPITAL LTD

  C · HOSPITAL · EI

• UPMC GLOBAL OPERATIONS CENTER LTD

  C · CANCER TREATM · EI

• PANTHER REINSURANCE COMPANY LTD

  C · INSURANCE · CJ

• FORBES REINSURANCE COMPANY LTD

  C · INSURANCE · CJ

• CATHEDRAL (RE) INSURANCE CO

  C · INSURANCE · CJ

• UPMC IRELAND LIMITED

  C · HEALTHCARE SU · EI

• BLUESPHERE BIO

  C · IMMUNOTHERAPY · DE

• INFECTIOUS DISEASE CONNECT INC

  C · TELEMEDICINE · DE

• NOVASENTA INC

  C · IMMUNOTHERAPY · DE

• UPMC HILLMAN CANCER CENTER PINNACLE

  C · CANCER TREATM · PA

• SHANGHAI UPMC CO LTD

  C · HEALTHCARE MG · CH

• SALVATOR MUNDI INTERNATIONAL HOSPITAL

  C · HOSPITAL · IT

• SOMERSET MANAGEMENT SERVICES INC

  C · MOB OWNERSHIP · PA

• GENERIAN PHARMACEUTICALS INC

  C · PHARMACY · DE

• WORK PARTNERS NATIONAL INC

  C · INSURANCE · PA

• ASTRATA INC

  C · SOFTWARE · DE

• VEGAVECT

  C · GENE THERAPY · DE

• NOVIMAB

  C · CLINICAL RESEARCH · DE

• REALYZE INTELLEGENCE INC

  C · SOFTWARE · DE

• HAYSTACK CONSOLIDATED SERVICES INC

  C · INACTIVE · PA

• WESTERN MARYLAND INSURANCE COMPANY LTD

  C · INSURANCE · CJ

• WILLOWBROOK HEALTHCARE CONDO

  C · REAL ESTATE · DE

• RXANTE PHARMACY SERVICES INC

  C · PHARMACY · DE

• CLANE HOSPITAL DEVELOPMENT ASSOCIATES L

  C · MANAGEMENT · EI

• UPMC KILDARE HOSPITAL LTD

  C · HOSPITAL · EI

• UPMC AUT EVEN HOSPITAL LTD

  C · HOSPITAL · EI

• AVISTA THERAPEUTICS INC

  C · GENE THERAPY · PA

• UPMC CANCER CENTER ZABOK LTD

  C · CANCER CENTER · HR

• SWIFT SPROAI HOLDINGS LTD

  C · HOLDING COMPANY · EI

• SPORTS SURGERY CLINIC LTD

  C · ORTHOPEDIC SERV. · EI

• MACRADI LTD

  C · INACTIVE · EI

• MACRADI DEVELOPMENT LTD

  C · INACTIVE · EI

• UPMC EXCESS PL TRUST

  C · TRUST · PA

• UPMC HOSPITALS LTD

  C · HOLDING CO · EI

• THE WASHINGTON PHYSICIAN SERVICE ORG

  C · PHYSCIAN SRV · PA

• HEALTH FUTURES INC

  C · PHYSICIAN SRV · PA

• PHOENIX-WASHINGTON INC

  C · PHYSCIAN SRV · PA