Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $0

• 1b · Membership dues

  $0

• 1c · Fundraising events

  $0

• 1d · Related organizations

  $0

• 1e · Government grants (contributions)

  $761,266

• 1f · All other contributions, gifts and grants

  $0

• 1g · Noncash contributions included above

  $0

• 2a · Program service revenue: Net Patient Revenue

  total $71,300,434 · related or exempt $71,300,434 · unrelated business $0 · excluded $0

• 2b · Program service revenue: IMED Shared Service

  total $555,207 · related or exempt $555,207

• 2c · Program service revenue: Medical Services to Affiliates

  total $2,000 · related or exempt $2,000

• 2f · All other program service revenue

  total $420 · related or exempt $420 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $333,855 · related or exempt $0 · unrelated business $0 · excluded $333,855

• 4 · Income from investment of tax-exempt bond proceeds

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

• 5 · Royalties

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

• 6a · Gross rents

  real property $178,604 · personal property $0

• 6b · Less rental expenses

  real property $1,472 · personal property $0

• 6c · Rental income or loss

  real property $177,132 · personal property $0

• 6d · Net rental income or loss

  total $177,132 · related or exempt $0 · unrelated business $0 · excluded $177,132

• 7a · Gross sales of assets other than inventory

  securities $0 · other assets $38,200

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

  securities $0 · other assets $66,238

• 7c · Gain or loss

  securities $0 · other assets -$28,038

• 7d · Net gain or loss

  total -$28,038 · related or exempt $0 · unrelated business $0 · excluded -$28,038

• 8a · Fundraising events: gross income

  $0

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

  $0

• 8b · Fundraising events: direct expenses

  $0

• 8c · Net income from fundraising events

  total $0 · unrelated business $0 · excluded $0

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

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

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 10c · Net income from sales of inventory

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

• 11a · Other revenue: 340B

  total $428,772 · related or exempt $428,772 · unrelated business $0 · excluded $0

• 11b · Other revenue: Administration

  total $114,012 · related or exempt $0 · unrelated business $0 · excluded $114,012

• 11c · Other revenue: Quality Incentive

  total $57,377 · related or exempt $57,377 · unrelated business $0 · excluded $0

• 11d · All other revenue

  total $105,689 · related or exempt $105,689 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $705,850

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $7,792 · program services $7,792

• 5 · Compensation of officers, directors and key employees

  total $331,288 · program services $0 · management and general $331,288 · fundraising $0

• 6 · Compensation of disqualified persons

  total $456,903 · program services $0 · management and general $456,903

• 7 · Other salaries and wages

  total $26,429,952 · program services $23,126,208 · management and general $3,303,744

• 8 · Pension plan contributions

  total $703,617 · program services $615,665 · management and general $87,952

• 9 · Other employee benefits

  total $3,597,601 · program services $3,147,901 · management and general $449,700

• 10 · Payroll taxes

  total $1,827,038 · program services $1,598,658 · management and general $228,380

• 11a · Fees: management

  total $664,374 · management and general $664,374

• 11b · Fees: legal

  total $2,090 · management and general $2,090

• 11c · Fees: accounting

  total $46,352 · management and general $46,352

• 11d · Fees: lobbying

  total $3,368 · program services $2,947 · management and general $421

• 11f · Fees: investment management

  total $160,232 · management and general $160,232

• 11g · Fees: other

  total $11,826,604 · program services $10,348,261 · management and general $1,478,343 · fundraising $0

• 12 · Advertising and promotion

  total $2,581 · program services $2,258 · management and general $323

• 13 · Office expenses

  total $1,445,980 · program services $1,265,232 · management and general $180,748

• 14 · Information technology

  total $401 · program services $351 · management and general $50

• 16 · Occupancy

  total $1,455,840 · program services $1,273,694 · management and general $182,146

• 17 · Travel

  total $109,670 · program services $95,961 · management and general $13,709

• 19 · Conferences, conventions and meetings

  total $70,314 · program services $61,525 · management and general $8,789

• 20 · Interest

  total $61,081 · program services $53,446 · management and general $7,635

• 22 · Depreciation, depletion and amortization

  total $2,152,912 · program services $1,883,798 · management and general $269,114

• 23 · Insurance

  total $604,051 · program services $528,545 · management and general $75,506

• 24a · Other expenses: Medical Supplies

  total $7,480,022 · program services $7,480,022

• 24b · Other expenses: Management Fees

  total $6,450,769 · management and general $6,450,769

• 24c · Other expenses: Dues & Subscriptions

  total $2,210,272 · program services $1,933,988 · management and general $276,284

• 24d · Other expenses: Bad Debt Expense

  total $5,472,794 · program services $5,472,794

• 24e · All other expenses

  total $347,026 · program services $303,647 · management and general $43,379 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,928 · end of year $935

• 2 · Savings and temporary cash investments

  beginning of year $10,026,543 · end of year $19,054,651

• 3 · Pledges and grants receivable

  beginning of year $89,317 · end of year $138,791

• 4 · Accounts receivable

  beginning of year $6,855,165 · end of year $8,055,134

• 5 · Loans and receivables from officers and key people

  end of year $0

• 6 · Loans and receivables from disqualified persons

  end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $495

• 8 · Inventories for sale or use

  beginning of year $972,746 · end of year $1,031,334

• 9 · Prepaid expenses and deferred charges

  beginning of year $394,894 · end of year $217,204

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

  $26,086,217

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

  $4,404,103

• 10c · Land, buildings and equipment, net

  beginning of year $17,811,136 · end of year $21,682,114

• 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 $0 · end of year $0

• 15 · Other assets

  beginning of year $2,693,405 · end of year $3,922,293

• 17 · Accounts payable and accrued expenses

  beginning of year $5,282,641 · end of year $5,580,863

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $40,998 · end of year $32,889

• 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

  end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $3,277,438 · end of year $2,933,947

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $2,617,817 · end of year $1,976,645

• 27 · Net assets without donor restrictions

  beginning of year $27,626,240 · end of year $43,578,607

• 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 Health or social club dues or initiation fees

THREE RIVERS HEALTH SYSTEM, INC. OFFERS COMPLIMENTARY HEALTH CLUB MEMBERSHIP TO BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER, A RELATED PARTY. BEACON HEALTH SYSTEM ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ADAM GOFF.

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

THREE RIVERS HEALTH SYSTEM, INC. USES A RELATED ORGANIZATION'S (BEACON HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTED TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION.

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

BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2023, REFLECTED IN COLUMN (B)(III): * KREG GRUBER, $113,175 * JEFFREY COSTELLO, $96,631 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2023 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: * KREG GRUBER, $136,436 * JEFFREY COSTELLO, $82,406 * MARIA BEHR, $33,138

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

THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT, AND EXECUTIVE WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE MANAGEMENT INCENTIVE IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD.

Related corporations and trusts

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

• BEACON HEALTH VENTURES INC

  C Corporation · HOME MEDICAL · IN

• BEACON HEALTH VENTURES MICHIGAN INC

  C Corporation · HOME MEDICAL · MI

  Directly controlled by BHS