Skip to content
Nonprofiteer
← DULUTH CLINIC LTD

Form 990 for tax year 2022

Filed by DULUTH CLINIC LTD.

Totals

Total revenue
$238,141,036
Total expenses
$229,002,682
Contributions and grants received
$479,252
Grants paid
$499
Program service revenue
$235,479,652
Investment income
-$1,589,578
Other revenue
$3,771,710
Total assets, end of year
$133,681,275
Total liabilities, end of year
$632,669,276
Net assets or fund balances, end of year
-$498,988,001
Program services expenses (Part IX)
$204,060,841
Management and general expenses
$24,941,841
Fundraising expenses
$0
Program service expenses (Part III)
$204,060,841

Program services were 89.1% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 1d · Related organizations

    $151

  • 1e · Government grants (contributions)

    $479,101

  • 2a · Program service revenue: RETAIL PHARMACY

    total $189,733,682 · related or exempt $189,733,682

  • 2b · Program service revenue: OUTPATIENT REVENUES

    total $40,776,335 · related or exempt $39,772,674 · unrelated business $1,003,661

  • 2c · Program service revenue: ASHLAND CANCER CENTER INVESTMENT

    total $4,969,635 · related or exempt $4,969,635

  • 3 · Investment income

    total $268,110 · excluded $268,110

  • 6a · Gross rents

    real property $18,200

  • 6b · Less rental expenses

    real property $12,668

  • 6c · Rental income or loss

    real property $5,532

  • 6d · Net rental income or loss

    total $5,532 · excluded $5,532

  • 7a · Gross sales of assets other than inventory

    securities $531,319

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

    securities $513,702 · other assets $1,875,305

  • 7c · Gain or loss

    securities $17,617 · other assets -$1,875,305

  • 7d · Net gain or loss

    total -$1,857,688 · excluded -$1,857,688

  • 10a · Gross sales of inventory

    $14,883,180

  • 10b · Cost of goods sold

    $12,940,119

  • 10c · Net income from sales of inventory

    total $1,943,061 · unrelated business $1,943,061

  • 11a · Other revenue: ASHLAND CARE CENTER MSA

    total $1,601,274 · related or exempt $1,601,274

  • 11b · Other revenue: PARKING REVENUE

    total $217,264 · excluded $217,264

  • 11c · Other revenue: MISCELLANEOUS REVENUE

    total $4,579 · excluded $4,579

  • 11e · Other revenue, total

    $1,823,117

Functional expenses

Part IX, the statement of functional expenses.

  • 3 · Grants to foreign organizations and individuals

    total $499 · program services $499

  • 7 · Other salaries and wages

    total $49,268,764 · program services $47,548,918 · management and general $1,719,846

  • 8 · Pension plan contributions

    total $2,245,925 · program services $2,169,221 · management and general $76,704

  • 9 · Other employee benefits

    total $4,895,083 · program services $4,012,588 · management and general $882,495

  • 10 · Payroll taxes

    total $2,770,194 · program services $2,664,102 · management and general $106,092

  • 11b · Fees: legal

    total $2,004 · management and general $2,004

  • 11d · Fees: lobbying

    total $1,019 · management and general $1,019

  • 11f · Fees: investment management

    total $8,161 · management and general $8,161

  • 11g · Fees: other

    total $7,168,473 · program services $6,579,410 · management and general $589,063

  • 12 · Advertising and promotion

    total $61,963 · program services $71,313 · management and general -$9,350

  • 13 · Office expenses

    total $1,859,824 · program services $1,703,040 · management and general $156,784

  • 14 · Information technology

    total $197,411 · program services $190,520 · management and general $6,891

  • 16 · Occupancy

    total $3,862,776 · program services $3,727,936 · management and general $134,840

  • 17 · Travel

    total $187,613 · program services $202,358 · management and general -$14,745

  • 19 · Conferences, conventions and meetings

    total $20,989 · program services $16,521 · management and general $4,468

  • 20 · Interest

    total $5,298,228 · program services $5,298,228

  • 22 · Depreciation, depletion and amortization

    total $6,401,909 · program services $6,178,435 · management and general $223,474

  • 23 · Insurance

    total $1,883,148 · program services $1,863,096 · management and general $20,052

  • 24a · Other expenses: MEDICAL SUPPLIES

    total $102,356,327 · program services $102,356,327

  • 24b · Other expenses: UNRELATED BUSINESS INCO

    total $5,267 · management and general $5,267

  • 24c · Other expenses: AFFILIATE SUPPORT FEE

    total $24,016,521 · program services $10,360,912 · management and general $13,655,609

  • 24d · Other expenses: PRESCRIPTION CLAIM PROC

    total $8,695,450 · program services $8,695,450

  • 24e · All other expenses

    total $7,795,134 · program services $421,967 · management and general $7,373,167

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $22,202 · end of year $23,651

  • 2 · Savings and temporary cash investments

    beginning of year $1,063,756 · end of year $332,234

  • 4 · Accounts receivable

    beginning of year $12,262,261 · end of year $18,496,723

  • 7 · Other notes and loans receivable

    beginning of year $3,900,971 · end of year $5,653,545

  • 8 · Inventories for sale or use

    beginning of year $9,713,740 · end of year $12,379,591

  • 9 · Prepaid expenses and deferred charges

    beginning of year $18,910 · end of year $19,666

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

    $198,798,877

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

    $126,107,160

  • 10c · Land, buildings and equipment, net

    beginning of year $77,773,085 · end of year $72,691,717

  • 12 · Investments: other securities

    beginning of year $5,471,303 · end of year $1,205,942

  • 13 · Investments: program-related

    beginning of year $3,900,000 · end of year $3,900,000

  • 14 · Intangible assets

    beginning of year $396,112 · end of year $364,211

  • 15 · Other assets

    beginning of year $20,538,703 · end of year $18,613,995

  • 17 · Accounts payable and accrued expenses

    beginning of year $36,581,815 · end of year $37,922,802

  • 19 · Deferred revenue

    beginning of year $2,878,623 · end of year $2,669,070

  • 20 · Tax-exempt bond liabilities

    beginning of year $113,974,980 · end of year $105,585,480

  • 23 · Secured mortgages and notes payable

    beginning of year $51,433,355 · end of year $49,749,386

  • 25 · Other liabilities

    beginning of year $443,894,278 · end of year $436,742,538

  • 27 · Net assets without donor restrictions

    beginning of year -$513,702,008 · end of year -$498,988,001

Mission and programs · 2022

Mission

WE ARE CALLED TO MAKE A HEALTHY DIFFERENCE IN PEOPLE'S LIVES.

  • THE DULUTH CLINIC, LTD. IS CREATED & ORGANIZED EXCLUSIVELY FOR CHARITABLE, EDUCATIONAL, AND SCIENTIFIC PURPOSES TO ADVANCE THE PROMOTION OF HEALTH BY PROVIDING MEDICAL SERVICES, INCLUDING CHARITABLE CARE TO PERSONS UNABLE TO PAY. THE DULUTH CLINIC, LTD. EMPLOYS APPROXIMATELY 310 FULL TIME EQUIVALENTS THAT SUPPORT ESSENTIA HEALTH EAST'S 8 HOSPITALS AND VARIOUS CLINICS ACROSS NORTHEASTERN MINNESOTA AND NORTHWESTERN WISCONSIN. OUR PHYSICIANS COVER A WIDE RANGE OF MEDICAL SPECIALTIES AND SUBSPECIALTIES.THE DULUTH CLINIC, LTD. OFFERS A BROAD RANGE OF OUTPATIENT SERVICES FOR ITS PATIENTS, INCLUDING FAMILY PRACTICE, INTERNAL MEDICINE, OBSTETRICS AND GYNECOLOGY, CANCER, INFUSION THERAPY, ORTHOPEDICS, DIGESTIVE HEALTH, PEDIATRICS SERVICES, WEIGHT MANAGEMENT, HEART AND VASCULAR SERVICES, LAB SERVICES, IMAGING & RADIOLOGY, AND PHARMACY.THE CLINICS HAD OVER 66,000 ENCOUNTERS DURING THE FISCAL YEAR ENDED JUNE 30, 2023. DURING THE FISCAL YEAR ENDED JUNE 30, 2023, THE DULUTH CLINIC, LTD. PROVIDED THE FOLLOWING COMMUNITY BENEFITS: $280,000 IN CHARITY CARE, $13.6 MILLION COSTS IN EXCESS OF MEDICAID PAYMENTS, AND $19,000 IN HEALTH PROFESSION EDUCATION.

    Expenses $204,060,841 · Grants $499 · Revenue $237,080,926

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • DINO TERZIC MD

    PHYSICIAN - SECTION CHAIR

    Total calculated
    $2,196,305
    From this org
    $2,156,937
    From related orgs
    $0
    Other
    $39,368
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $2,055,797
    Bonus
    $100,000
    Other
    $1,140
    Deferred
    $24,400
    Nontaxable benefits
    $14,968
    Filer's total
    $2,196,305

  • MICHAEL WOLZ MD

    PHYSICIAN - SECTION CHAIR

    Total calculated
    $1,491,186
    From this org
    $1,452,135
    From related orgs
    $0
    Other
    $39,051
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $1,450,775
    Bonus
    $0
    Other
    $1,360
    Deferred
    $24,400
    Nontaxable benefits
    $14,651
    Filer's total
    $1,491,186

  • LLOYD KETCHUM MD

    PHYSICIAN - DIVISION CHAIR

    Total calculated
    $1,238,576
    From this org
    $1,172,854
    From related orgs
    $0
    Other
    $65,722
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $1,168,520
    Bonus
    $0
    Other
    $4,334
    Deferred
    $24,400
    Nontaxable benefits
    $41,322
    Filer's total
    $1,238,576

  • BRADLEY KUZEL MD

    PHYSICIAN - SECTION CHAIR

    Total calculated
    $1,178,276
    From this org
    $1,113,340
    From related orgs
    $0
    Other
    $64,936
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $1,111,630
    Bonus
    $0
    Other
    $1,710
    Deferred
    $24,400
    Nontaxable benefits
    $40,536
    Filer's total
    $1,178,276

  • JON PRYOR MD

    PRESIDENT - EAST THRU 1/23

    Total calculated
    $1,169,165
    From this org
    $0
    From related orgs
    $1,131,335
    Other
    $37,830
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $785,922 related
    Bonus
    $0 + $331,316 related
    Other
    $0 + $14,097 related
    Deferred
    $0 + $24,400 related
    Nontaxable benefits
    $0 + $13,430 related
    Filer's total
    $0 + $1,169,165 related

  • MICHAEL CALDWELL MD

    PHYSICIAN

    Total calculated
    $1,123,948
    From this org
    $1,059,799
    From related orgs
    $0
    Other
    $64,149
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $1,058,539
    Bonus
    $0
    Other
    $1,260
    Deferred
    $24,400
    Nontaxable benefits
    $39,749
    Filer's total
    $1,123,948

  • BRADLEY BEARD

    CHIEF OPERATING OFFICER

    Total calculated
    $1,069,895
    From this org
    $0
    From related orgs
    $932,410
    Other
    $137,485
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $600,630 related
    Bonus
    $0 + $256,508 related
    Other
    $0 + $75,272 related
    Deferred
    $0 + $98,483 related
    Nontaxable benefits
    $0 + $39,002 related
    Filer's total
    $0 + $1,069,895 related

  • WILLIAM HEEGAARD MD

    PRESIDENT

    Total calculated
    $1,040,506
    From this org
    $0
    From related orgs
    $902,097
    Other
    $138,409
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $623,417 related
    Bonus
    $0 + $267,196 related
    Other
    $0 + $11,484 related
    Deferred
    $0 + $101,311 related
    Nontaxable benefits
    $0 + $37,098 related
    Filer's total
    $0 + $1,040,506 related

  • ANNE STEPHEN MD

    CHIEF MEDICAL OFFICER

    Total calculated
    $983,815
    From this org
    $0
    From related orgs
    $876,444
    Other
    $107,371
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $456,170 related
    Bonus
    $0 + $197,482 related
    Other
    $0 + $222,792 related
    Deferred
    $0 + $75,729 related
    Nontaxable benefits
    $0 + $31,642 related
    Filer's total
    $0 + $983,815 related

  • DANIEL NIKCEVICH MD

    FORMER PRESIDENT

    Total calculated
    $966,567
    From this org
    $908,427
    From related orgs
    $0
    Other
    $58,140
    Hours/week
    56 + 4 related

    Schedule J breakdown matched by us

    Base
    $768,532
    Bonus
    $0
    Other
    $139,895
    Deferred
    $20,705
    Nontaxable benefits
    $37,435
    Filer's total
    $966,567

  • THOMAS WITT MD

    FORMER PHYSICIAN LEADER

    Total calculated
    $760,462
    From this org
    $0
    From related orgs
    $680,647
    Other
    $79,815
    Hours/week
    0 + 60 related

    Schedule J breakdown matched by us

    Base
    $0 + $406,419 related
    Bonus
    $0 + $175,190 related
    Other
    $0 + $99,038 related
    Deferred
    $0 + $64,818 related
    Nontaxable benefits
    $0 + $14,997 related
    Filer's total
    $0 + $760,462 related

  • JANICE SCHADE

    SENIOR VICE PRESIDENT, OPERATIONS

    Total calculated
    $629,756
    From this org
    $0
    From related orgs
    $541,628
    Other
    $88,128
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $353,161 related
    Bonus
    $0 + $154,116 related
    Other
    $0 + $34,351 related
    Deferred
    $0 + $59,011 related
    Nontaxable benefits
    $0 + $29,117 related
    Filer's total
    $0 + $629,756 related

  • RHONDA KAZIK

    CHIEF NURSING OFFICER

    Total calculated
    $629,127
    From this org
    $0
    From related orgs
    $538,327
    Other
    $90,800
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $381,088 related
    Bonus
    $0 + $151,426 related
    Other
    $0 + $5,813 related
    Deferred
    $0 + $64,447 related
    Nontaxable benefits
    $0 + $26,353 related
    Filer's total
    $0 + $629,127 related

  • KEVIN BOREN

    VICE PRESIDENT, FINANCE

    Total calculated
    $617,463
    From this org
    $0
    From related orgs
    $528,452
    Other
    $89,011
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $394,711 related
    Bonus
    $0 + $85,550 related
    Other
    $0 + $48,191 related
    Deferred
    $0 + $49,069 related
    Nontaxable benefits
    $0 + $39,942 related
    Filer's total
    $0 + $617,463 related

  • KRISTA SKORUPA MD

    INTERIM PRESIDENT

    Total calculated
    $603,239
    From this org
    $0
    From related orgs
    $533,408
    Other
    $69,831
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $336,583 related
    Bonus
    $0 + $143,215 related
    Other
    $0 + $53,610 related
    Deferred
    $0 + $54,798 related
    Nontaxable benefits
    $0 + $15,033 related
    Filer's total
    $0 + $603,239 related

  • TAMMY KRITZER

    SENIOR VICE PRESIDENT, OPERATIONS

    Total calculated
    $533,962
    From this org
    $0
    From related orgs
    $468,127
    Other
    $65,835
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $326,304 related
    Bonus
    $0 + $139,215 related
    Other
    $0 + $2,608 related
    Deferred
    $0 + $50,738 related
    Nontaxable benefits
    $0 + $15,097 related
    Filer's total
    $0 + $533,962 related

  • CYNTHIA KENT

    FORMER SNR VP, NURSING EXCELLENCE

    Total calculated
    $230,366
    From this org
    $0
    From related orgs
    $222,503
    Other
    $7,863
    Hours/week
    0

    Schedule J breakdown matched by us

    Base
    $0
    Bonus
    $0
    Other
    $0 + $222,503 related
    Deferred
    $0
    Nontaxable benefits
    $0 + $7,863 related
    Filer's total
    $0 + $230,366 related

  • JOSEPH MIHALEK

    BOARD CHAIR

    Total calculated
    $8,800
    From this org
    $0
    From related orgs
    $8,800
    Other
    $0
    Hours/week
    2 + 12 related

  • THOMAS RENIER

    BOARD VICE CHAIR THRU 12/22

    Total calculated
    $8,600
    From this org
    $0
    From related orgs
    $8,600
    Other
    $0
    Hours/week
    2 + 12 related

  • RENEE WACHTER

    BOARD VICE CHAIR

    Total calculated
    $6,400
    From this org
    $0
    From related orgs
    $6,400
    Other
    $0
    Hours/week
    2 + 12 related

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead, and on a Form 990-PF Part VIII's — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4a · Severance or change-of-control payment
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

PART I, LINE 3
ESTABLISHING CEO'S COMPENSATION: ESSENTIA HEALTH, AS A RELATED ORGANIZATION, USED THE FOLLOWING METHODS TO ESTABLISH THE DULUTH CLINIC, LTD.'S PRESIDENT'S COMPENSATION: A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.
PART I, LINES 4A-B
SEVERANCE PAYMENT: FORMER KEY EMPLOYEE CYNTHIA KENT RECEIVED PAYMENTS TOTALING $222,503 IN CALENDAR YEAR 2022 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, KENT WILL RECEIVE PAY TOTALING $461,635 & BENEFITS TOTALING $38,623 FROM FEBRUARY 1, 2021 TO AUGUST 1, 2022. ALL OTHER INDIVIDUALS LISTED AS FORMERS IN FORM 990, PART VII, SECTION A, LINE 1A DID NOT RECEIVE A SEVERANCE PAYMENT DURING CALENDAR YEAR 2022. THESE INDIVIDUALS REMAIN EMPLOYED WITHIN ESSENTIA HEALTH AND ITS SUBSIDIARIES. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: ESSENTIA HEALTH'S NONQUALIFIED RETIREMENT PLAN IS OFFERED TO DESIGNATED ESSENTIA HEALTH EXECUTIVES. THERE IS A MINIMUM FOUR YEAR VESTING DATE, OR VESTING IS AUTOMATIC UPON REACHING RETIREMENT AGE, DEATH, DISABILITY OR INVOLUNTARY TERMINATION WITHOUT CAUSE. BENEFITS ARE SUBJECT TO INCOME TAXES UPON VESTING AND PAYABLE FROM ESSENTIA HEALTH'S GENERAL ASSETS. REPORTED AS OTHER REPORTABLE COMPENSATION IN SCHEDULE J, PART II, COLUMN B (III), THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A RECEIVED PAYMENT OF THE VESTED BENEFIT FROM THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING THE YEAR: BRADLEY BEARD $63,788 ANNE STEPHEN, MD $211,981 DANIEL NIKCEVICH, MD $134,962 THOMAS WITT, MD $87,616 JANICE SCHADE $25,995 KEVIN BOREN $32,212 REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN C, ESSENTIA HEALTH MADE CONTRIBUTIONS, SUBJECT TO THE VESTING TERMS, DURING THE YEAR INTO THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ON BEHALF OF THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A: BRADLEY BEARD $74,083 WILLIAM HEEGAARD, MD $78,203 ANNE STEPHEN, MD $51,329 THOMAS WITT, MD $42,735 JANICE SCHADE $34,611 RHONDA KAZIK $40,047 KEVIN BOREN $24,669 KRISTA SKORUPA, MD $30,398 TAMMY KRITZER $28,674

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Disregarded entities

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

Related partnerships

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

Related corporations and trusts

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

  • ESSENTIA HEALTH INSURANCE SERVICES SPC LTD

    C · SELF INSURANCE · CJ · controlled entity

  • MID DAKOTA CLNINC INC

    C · CLINIC OPERATIONS CEASED 9/30/22 · ND · controlled entity

Provenance

Return type
form_990
Tax year
2022
Filed
8 May 2024
IRS schema version
2022v5.0
Source object
202431299349300028

Check it against the return as filed: the GivingTuesday Data Lake hosts a public copy of the original XML.

The source document this was parsed from is served over the API, which is where bulk and document access live.