Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $17,746

• 1e · Government grants (contributions)

  $100,000

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $97,856,953 · related or exempt $97,856,953

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 6a · Gross rents

  real property $4,541,292

• 6b · Less rental expenses

  real property $7,294,706

• 6c · Rental income or loss

  real property -$2,753,414 · personal property $0

• 6d · Net rental income or loss

  total -$2,753,414 · excluded -$2,753,414

• 7c · Gain or loss

  securities $0 · other assets $0

• 10a · Gross sales of inventory

  $116,322

• 10b · Cost of goods sold

  $114,135

• 10c · Net income from sales of inventory

  total $2,187 · excluded $2,187

• 11a · Other revenue: RELATED COLLECTION FEES

  total $4,436,861 · related or exempt $4,436,861

• 11b · Other revenue: FITNESS CENTER REVENUE

  total $2,392,437 · related or exempt $2,392,437

• 11c · Other revenue: ELECTRONIC HEALTH RECORD

  total $783,618 · related or exempt $783,618

• 11d · All other revenue

  total $4,388,202 · related or exempt $4,388,202 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $12,001,118

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $300,628 · program services $300,628

• 4 · Benefits paid to or for members

  total $0 · program services $0

• 5 · Compensation of officers, directors and key employees

  total $1,395,414 · program services $953,396 · management and general $442,018 · fundraising $0

• 7 · Other salaries and wages

  total $127,449,324 · program services $120,933,260 · management and general $6,516,064

• 9 · Other employee benefits

  total $16,754,617 · program services $15,360,802 · management and general $1,393,815

• 10 · Payroll taxes

  total $6,587,357 · program services $6,091,952 · management and general $495,405

• 11a · Fees: management

  total $5,133,843 · program services $4,709,607 · management and general $424,236

• 11g · Fees: other

  total $11,740,684 · program services $11,358,122 · management and general $382,562 · fundraising $0

• 12 · Advertising and promotion

  total $121,102 · program services $15,675 · management and general $105,427

• 13 · Office expenses

  total $1,021,882 · program services $856,317 · management and general $165,565

• 14 · Information technology

  total $231,725 · program services $211,652 · management and general $20,073

• 16 · Occupancy

  total $6,929,659 · program services $6,887,745 · management and general $41,914

• 17 · Travel

  total $304,790 · program services $240,504 · management and general $64,286

• 22 · Depreciation, depletion and amortization

  total $1,954,428 · program services $1,475,224 · management and general $479,204

• 23 · Insurance

  total $1,387,923 · program services $1,387,923

• 24a · Other expenses: MEDICAL SUPPLIES

  total $7,015,744 · program services $7,015,744

• 24b · Other expenses: BAD DEBT

  total $4,663,305 · program services $4,663,305

• 24c · Other expenses: LICENSE FEES

  total $236,958 · program services $132,932 · management and general $104,026

• 24d · Other expenses: DUES

  total $114,856 · program services $58,716 · management and general $56,140

• 24e · All other expenses

  total $325,944 · program services $84,771 · management and general $241,173 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,697,972 · end of year $509,387

• 2 · Savings and temporary cash investments

  beginning of year $161,839 · end of year $0

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $7,378,178 · end of year $86,589,413

• 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 $36,346 · end of year $74,068

• 9 · Prepaid expenses and deferred charges

  beginning of year $273,507 · end of year $510,126

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

  $160,462,863

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

  $76,240,232

• 10c · Land, buildings and equipment, net

  beginning of year $88,545,762 · end of year $84,222,631

• 11 · Investments: publicly traded securities

  beginning of year $0 · end of year $0

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $1,153,502 · end of year $1,015,565

• 15 · Other assets

  beginning of year $0 · end of year $0

• 17 · Accounts payable and accrued expenses

  beginning of year $5,000,291 · end of year $5,212,702

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $137,592 · end of year $211,590

• 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 $619,326,397 · end of year $779,159,665

• 27 · Net assets without donor restrictions

  beginning of year -$525,217,174 · end of year -$611,662,767

• 28 · Net assets with donor restrictions

  beginning of year $0 · end of year $0

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $0 · end of year $0

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Tax indemnification and gross-up payments

THE ORGANIZATION PROVIDES AN ADDITIONAL BENEFIT THAT COVERS THE TAX LIABILITY FOR THE HOLIDAY CHECKS FOR ALL EMPLOYEES AND GROUP TERM LIFE PREMIUM TO EXECUTIVES. THE TAX LIABILITY PAYMENTS ARE THEMSELVES INCLUDED IN W-2 INCOME IN THE YEAR MADE, AND ARE INCLUDED IN THE FIGURES DISCLOSED ON SCHEDULE J, PART II.

Schedule J, Part I, Line 1a Housing allowance or residence for personal use

THE ORGANIZATION PROVIDED HOUSING ALLOWANCE TO THE 2 NEW EXECUTIVES (CEO AND OHMG'S COO). THIS BENEFIT WAS INCLUDED AS A TAXABLE INCOME IN THE YEAR RECEIVED AND FULLY INCLUDED ON THE RECIPIENT'S FORM W-2.

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

DURING THE REPORTING PERIOD, THE ORGANIZATION PAID THE CEO AND OHMG'S COO MEMBERSHIP DUES IN A SOCIAL CLUB. THE CLUB MEMBERSHIP WAS USED FOR BUSINESS PURPOSES. ANY PERSONAL RELATED EXPENSES ARE TREATED AS TAXABLE WAGE INCOME AND FULLY INCLUDED ON THE RECIPIENT'S FORM W-2.

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation

OWENSBORO HEALTH MEDICAL GROUP, INC. RELIES ON THE COMPENSATION PRACTICES OF A RELATED ORGANIZATION OWENSBORO HEALTH, INC. TO DETERMINE THE COMPENSATION OF TOP MANAGEMENT OFFICIALS.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

OWENSBORO HEALTH PROVIDES A NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN FOR CERTAIN EXECUTIVE EMPLOYEES. PARTICIPATION IN THE PLAN IS SUBJECT TO THE RECOMMENDATION OF THE CHIEF EXECUTIVE OFFICER AND THE APPROVAL OF THE BOARD OF DIRECTORS. AS OF DECEMBER 31, 2020 OWENSBORO HEALTH SHALL CREDIT THE PARTICIPANT'S ACCOUNT WITH AN EMPLOYER CONTRIBUTION. THE PARTICIPANT MUST BE EMPLOYED BY OWENSBORO HEALTH AT THE END OF THE PLAN YEAR IN ORDER TO RECEIVE AN EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR, AND PARTIAL YEAR CREDIT IS EARNED AFTER A PARTICIPANT REACHED NORMAL RETIREMENT AGE AS DEFINED BY THE PLAN. EMPLOYER CONTRIBUTIONS FOR EACH CONTRIBUTION CLASS YEAR SHALL BE 100% VESTED AS OF THE END OF THE PLAN YEAR WHICH IS FIVE YEARS AFTER THE DATE ON WHICH THE EMPLOYER CONTRIBUTION WAS MADE FOR SUCH CONTRIBUTION CLASS YEAR. THE TAX LIABILITY PAYMENTS ARE THEMSELVES INCLUDED IN W-2 INCOME IN THE YEAR MADE TO THE EXECUTIVES, AND ARE INCLUDED IN THE FIGURES DISCLOSED ON SCHEDULE J, PART II. FORMER CHIEF EXECUTIVE OFFICER, GREG STRAHAN, AND FORMER CHIEF FINANCIAL OFFICER, JOHN HACKBARTH, RETIRED ON AUGUST 6, 2021. AS REQUIRED BY THE PLAN DOCUMENT, THE FINAL FIVE YEARS OF CONTRIBUTIONS AND INVESTMENT EARNINGS WILL VEST AND PAYMENT IS MADE FOR THE FIVE YEARS CONCURRENTLY UPON RETIREMENT. 457F PLAN TO EXECUTIVES JOHN HACKBARTH $450,475 (RETIRED 08/06/2021); RUSS RANALLO ($39,663); GREG STRAHAN $1,117,560 (RETIRED 08/06/2021)

Schedule J, Part I, Line 7 Non-fixed payments

MANY OF OHMG'S EMPLOYED PHYSICIAN CONTRACTS INCLUDE NON-FIXED INCENTIVE COMPENSATION PAYMENTS FOR MEETING CERTAIN PRODUCTIVITY AND QUALITY TARGETS, WHICH ARE SET IN ADVANCE OF THE MEASUREMENT PERIOD. ALL PHYSICIAN COMPENSATION IS SUBJECT TO AN INDEPENDENT FAIR MARKET VALUATION AND REVIEW, LEGAL REVIEW AND APPROVAL BY THE OWENSBORO HEALTH BOARD OF DIRECTORS INTERMEDIATE SANCTIONS SUBCOMMITTEE. THE INTERMEDIATE SANCTIONS SUBCOMMITTEE REVIEWS THE REASONABLENESS OF ALL SUCH PHYSICIAN COMPENSATION, AND CONCLUDES, AS THE RESULT OF A PROCESS THAT IS DESIGNED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER FEDERAL TAX LAW, THAT ALL PHYSICIAN COMPENSATION IS REASONABLE AND DOES NOT EXCEED FAIR MARKET VALUE FOR THE SERVICES PROVIDED.

Related partnerships

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

• OWENSBORO AM SR FAC

  SURGERY CENTER · KY

  Directly controlled by NA

• TWIN LAKES REGIONAL PAIN MANAGEMENT

  PAIN MANAGEMENT · KY

  Directly controlled by NA