Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $11,520

• 1e · Government grants (contributions)

  $7,526,178

• 2a · Program service revenue: NET PATIENT REVENUE

  total $210,535,852 · related or exempt $210,535,852

• 2b · Program service revenue: CAPITATION REVENUE

  total $866,174 · related or exempt $866,174

• 3 · Investment income

  total $53,393 · excluded $53,393

• 6a · Gross rents

  real property $80,517

• 6c · Rental income or loss

  real property $80,517

• 6d · Net rental income or loss

  total $80,517 · excluded $80,517

• 7a · Gross sales of assets other than inventory

  other assets $715,220

• 7c · Gain or loss

  other assets $715,220

• 7d · Net gain or loss

  total $715,220 · excluded $715,220

• 11a · Other revenue: INSURANCE INCENTIVES

  total $3,670,283 · related or exempt $3,670,283

• 11b · Other revenue: HEALTH INS SHARED SAVINGS

  total $1,231,624 · related or exempt $1,231,624

• 11c · Other revenue: OTHER INCOME

  total $631,941 · related or exempt $631,941

• 11e · Other revenue, total

  $5,533,848

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $1,878,557 · management and general $1,878,557

• 7 · Other salaries and wages

  total $251,908,618 · program services $244,130,449 · management and general $7,778,169

• 8 · Pension plan contributions

  total $6,828,150 · program services $6,551,827 · management and general $276,323

• 9 · Other employee benefits

  total $18,386,471 · program services $16,569,732 · management and general $1,816,739

• 10 · Payroll taxes

  total $13,775,952 · program services $13,086,345 · management and general $689,607

• 11g · Fees: other

  total $21,194,463 · program services $19,396,214 · management and general $1,798,249

• 12 · Advertising and promotion

  total $2,089 · program services $2,089

• 16 · Occupancy

  total $12,595,943 · program services $12,202,613 · management and general $393,330

• 17 · Travel

  total $70,543 · program services $42,535 · management and general $28,008

• 20 · Interest

  total $87,821 · program services $87,821

• 22 · Depreciation, depletion and amortization

  total $1,674,386 · program services $1,615,313 · management and general $59,073

• 23 · Insurance

  total $10,515,296 · program services $10,515,296

• 24a · Other expenses: PHYSICIAN FEES

  total $29,719,073 · program services $29,719,073

• 24b · Other expenses: CORPORATE EXP ALLOCATION

  total $15,195,172 · management and general $15,195,172

• 24c · Other expenses: OTHER EXPENSES

  total $11,316,906 · program services $10,304,084 · management and general $1,012,822

• 24d · Other expenses: DRUGS & PHARMACEUTICALS

  total $7,310,609 · program services $7,310,609

• 24e · All other expenses

  total $2,944,712 · program services $2,815,085 · management and general $129,627

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $12,989 · end of year $10,874

• 4 · Accounts receivable

  beginning of year $20,884,549 · end of year $12,542,502

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,332,802 · end of year $953,666

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

  $38,178,329

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

  $23,148,248

• 10c · Land, buildings and equipment, net

  beginning of year $16,404,372 · end of year $15,030,081

• 15 · Other assets

  beginning of year $37,949,448 · end of year $24,541,102

• 17 · Accounts payable and accrued expenses

  beginning of year $63,793,962 · end of year $48,585,315

• 25 · Other liabilities

  beginning of year $45,928,650 · end of year $30,352,126

• 27 · Net assets without donor restrictions

  beginning of year -$33,138,452 · end of year -$25,859,216

The filer's explanations (Part III)

SCHEDULE J, PAGE 1, PART I, LINE 4

CLINT MATTHEWS 1,400,000 0 0 SUZANNE WENDEROTH 0 97,970 0 THERESA FINK 15,903 187,858 0 ROBERT EHINGER 0 201,939 0 KRISTIN KEARNEY 0 42,417 0 GARY F. CONNER 129,050 0 0 SEAN O'CONNELL 103,002 0 0

SCHEDULE J, PAGE 1, PART I, LINE 7

TOWER HEALTH USES RETENTION BONUSES FOR KEY EXECUTIVES AS ONE WAY TO ENSURE CONTINUITY OF LEADERSHIP AS THE HEALTH SYSTEM NAVIGATES ITS ORGANIZATION TURNAROUND AND FULFILLS ITS MISSION IN A CHALLENGING ENVIRONMENT FOR HEALTHCARE PROVIDERS. THE DETAILS OF INDIVIDUAL EXECUTIVE RETENTION BONUSES ARE DEVELOPED WITH OVERSIGHT BY THE TOWER HEALTH BOARD OF DIRECTORS COMPENSATION COMMITTEE AND ARE APPROVED BY THE FULL TOWER HEALTH BOARD. AS IN ALL MATTERS OF EXECUTIVE COMPENSATION, THE BOARD RELIES ON MARKET DATA AND OUTSIDE EXPERTISE TO ENSURE ITS RETENTION BONUS PROGRAM IS CONSISTENT WITH INDUSTRY STANDARDS.

SCHEDULE J, PART III

SCHEDULE J, PART I, LINE 3 TOP MANAGEMENT COMPENSATION: AS PROVIDED IN THE FORM 990, SCHEDULE J INSTRUCTIONS, SINCE THE ORGANIZATION RELIES ON A RELATED ORGANIZATION WHICH USES ONE OR MORE OF THE METHODS DESCRIBED IN LINE 3 TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION, THIS QUESTION HAS BEEN LEFT UNANSWERED. COMPENSATION PROCESS: THIS ORGANIZATION DOES NOT PAY THE COMPENSATION REPORTED FROM RELATED ENTITIES. THE COMPENSATION OF EXECUTIVES IS DETERMINED BY TOWER HEALTH'S BOARD OF DIRECTORS, WHICH HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO THE TOWER HEALTH MEDICAL GROUP'S EXECUTIVE MANAGEMENT. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS ENTIRELY OF DISINTERESTED MEMBERS OF THE BOARD, AND THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. SCHEDULE J, PART I, LINE 4B TERMS AND CONDITIONS OF PARTICIPATION IN THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: THE 457(F) PLAN IS A TAX-DEFERRED RETIREMENT PLAN CONSISTING OF EMPLOYER CONTRIBUTIONS THAT ARE DESIGNED TO HELP SUPPLEMENT THE RETIREMENT SAVINGS FOR KEY EMPLOYEES. THE EMPLOYEE IS IMMEDIATELY ELIGIBLE TO RECEIVE TOWER HEALTH CONTRIBUTIONS TO THE 457(F) DEFERRED COMPENSATION PLAN. THE EMPLOYEE MUST BE EMPLOYED ON DECEMBER 31ST TO RECEIVE THE EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR. THE EMPLOYEE SHALL BECOME 100% VESTED IN THE EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR THREE YEARS AFTER THE CONTRIBUTION HAS BEEN MADE TO THE ACCOUNT. THE EMPLOYEE WILL ALSO BECOME 100% VESTED IN ALL OF THE EMPLOYER CONTRIBUTIONS: 1) UPON ATTAINING THE AGE 65 WHILE STILL EMPLOYED BY TOWER HEALTH 2) DUE TO DEATH OR DISABILITY 3) UPON TERMINATION OF EMPLOYMENT WITHOUT CAUSE

Disregarded entities

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

• TOWER HEALTH MEDICAL GROUP HOLDING

  HEALTHCARE · PA · income $45,972,373 · assets $40,135,542

  Directly controlled by THMG

• COATESVILLE CLINIC COMPANY LLC

  HEALTHCARE · PA · income $52,159 · assets -$16,518

  Directly controlled by THMG HOLD

• COATESVILLE CARDIOLOGY CLINIC LLC

  HEALTHCARE · PA · income $12,499 · assets -$6,999

  Directly controlled by THMG HOLD

• VILLAGE MEDICAL CENTER ASSOC LLC

  HEALTHCARE · PA

  Directly controlled by THMG HOLD

• CHESTNUT HILL CLINIC COMPANY LLC

  HEALTHCARE · PA · income $6,604,310 · assets -$22,034

  Directly controlled by THMG HOLD

• WEST GROVE CLINIC COMPANY LLC

  HEALTHCARE · PA · income $71,176 · assets $22,896

  Directly controlled by THMG HOLD

• WEST GROVE FAMILY PRACTICE LLC

  HEALTHCARE · PA · income $15,941 · assets -$11,358

  Directly controlled by THMG HOLD

• JENNERSVILLE FAMILY MEDICINE LLC

  HEALTHCARE · PA · income $44,727 · assets -$2,709

  Directly controlled by THMG HOLD

• PHOENIXVILLE CLINIC COMPANY LLC

  HEALTHCARE · PA · income $17,699,276 · assets $20,289,949

  Directly controlled by THMG HOLD

• PHOENIXVILLE SPECIALTY CLINIC LLC

  HEALTHCARE · PA · assets $577

  Directly controlled by THMG HOLD

• PHOENIXVILLE ORTHO SPECIALISTS LLC

  HEALTHCARE · PA · income $2,362,020 · assets $2,355,921

  Directly controlled by THMG HOLD

• SCHUYLKILL INTERNAL MED ASSOC LLC

  HEALTHCARE · PA · income $764 · assets -$14,704

  Directly controlled by THMG HOLD

• POTTSTOWN CLINIC COMPANY LLC

  HEALTHCARE · PA · income $15,932,723 · assets $13,581,011

  Directly controlled by THMG HOLD

• COVENTRY CLINIC LLC

  HEALTHCARE · PA

  Directly controlled by THMG HOLD

• TOWER-DREXEL ACADEMIC MED GRP LLC

  HEALTHCARE · PA · income $3,176,778 · assets $3,959,510

  Directly controlled by THMG HOLD

Related partnerships

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

• SOUTHERN CHESTER CNTY MED BLDG 1

  HEALTHCARE · PA

• READING - UPMC JOINT VENTURE LLC

  HEALTHCARE · PA

  Directly controlled by NA

Related corporations and trusts

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

• TOWER HEALTH PPO

  C CORP · PPO · PA

  Directly controlled by NA

• MEDICUS RESOURCE MANAGEMENT

  C CORP · CM REVIEW · PA

  Directly controlled by NA

• TOWER HEALTH RECIPROCAL RISK

  C CORP · INSURANCE · SC