Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $78,953

• 1e · Government grants (contributions)

  $626,137

• 1f · All other contributions, gifts and grants

  $15,093

• 2a · Program service revenue: INPATIENT AND OUTPATIENT REVENUES

  total $282,848,332 · related or exempt $282,215,606 · unrelated business $632,726

• 3 · Investment income

  total $6,746,487 · excluded $6,746,487

• 6a · Gross rents

  real property $144,045

• 6b · Less rental expenses

  real property $86,244

• 6c · Rental income or loss

  real property $57,801

• 6d · Net rental income or loss

  total $57,801 · excluded $57,801

• 7a · Gross sales of assets other than inventory

  securities $69,607,734 · other assets $77,309

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

  securities $68,307,141 · other assets $71,769

• 7c · Gain or loss

  securities $1,300,593 · other assets $5,540

• 7d · Net gain or loss

  total $1,306,133 · excluded $1,306,133

• 11a · Other revenue: CAFETERIA/VENDING REVENUE

  total $424,885 · excluded $424,885

• 11b · Other revenue: LINEN SERVICE

  total $29,854 · excluded $29,854

• 11c · Other revenue: MISCELLANEOUS

  total $3,000 · excluded $3,000

• 11e · Other revenue, total

  $457,739

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $335,450 · program services $335,450

• 5 · Compensation of officers, directors and key employees

  total $1,552,527 · program services $640,498 · management and general $912,029

• 7 · Other salaries and wages

  total $112,266,866 · program services $108,960,203 · management and general $3,306,663

• 8 · Pension plan contributions

  total $4,851,929 · program services $4,692,732 · management and general $159,197

• 9 · Other employee benefits

  total $14,448,134 · program services $13,562,447 · management and general $885,687

• 10 · Payroll taxes

  total $6,996,507 · program services $6,731,234 · management and general $265,273

• 11d · Fees: lobbying

  total $4,449 · management and general $4,449

• 11f · Fees: investment management

  total $552,270 · management and general $552,270

• 11g · Fees: other

  total $17,424,869 · program services $16,076,280 · management and general $1,348,589

• 12 · Advertising and promotion

  total $103,178 · program services $75,750 · management and general $27,428

• 13 · Office expenses

  total $7,903,728 · program services $6,233,571 · management and general $1,670,157

• 14 · Information technology

  total $258,763 · program services $251,141 · management and general $7,622

• 16 · Occupancy

  total $2,967,074 · program services $2,879,683 · management and general $87,391

• 17 · Travel

  total $600,970 · program services $561,761 · management and general $39,209

• 19 · Conferences, conventions and meetings

  total $89,882 · program services $63,275 · management and general $26,607

• 20 · Interest

  total $1,866,495 · program services $1,866,495

• 22 · Depreciation, depletion and amortization

  total $7,129,522 · program services $6,919,532 · management and general $209,990

• 23 · Insurance

  total $1,217,580 · program services $1,196,021 · management and general $21,559

• 24a · Other expenses: UNRELATED BUSINESS INCO

  total $1,947,006 · management and general $1,947,006

• 24b · Other expenses: MEDICAL SUPPLIES

  total $42,160,389 · program services $42,160,389

• 24c · Other expenses: AFFILIATE SUPPORT FEE

  total $30,546,540 · program services $15,020,024 · management and general $15,526,516

• 24d · Other expenses: AFFILIATE EXP & REVENUE

  total $8,764,317 · program services $455,848 · management and general $8,308,469

• 24e · All other expenses

  total $15,112,090 · program services $14,304,168 · management and general $807,922

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $16,782 · end of year $54,868,919

• 2 · Savings and temporary cash investments

  beginning of year $82,830,793 · end of year $34,675,488

• 4 · Accounts receivable

  beginning of year $27,847,316 · end of year $33,572,565

• 7 · Other notes and loans receivable

  beginning of year $1,226,566 · end of year $1,710,394

• 8 · Inventories for sale or use

  beginning of year $5,476,089 · end of year $5,491,958

• 9 · Prepaid expenses and deferred charges

  beginning of year $677,126 · end of year $758,966

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

  $192,759,039

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

  $138,584,395

• 10c · Land, buildings and equipment, net

  beginning of year $52,338,717 · end of year $54,174,644

• 12 · Investments: other securities

  beginning of year $230,522,710 · end of year $249,942,547

• 14 · Intangible assets

  beginning of year $351,767 · end of year $317,167

• 15 · Other assets

  beginning of year $3,284,403 · end of year $3,022,708

• 17 · Accounts payable and accrued expenses

  beginning of year $16,654,598 · end of year $20,206,418

• 20 · Tax-exempt bond liabilities

  beginning of year $26,651,612 · end of year $26,495,738

• 23 · Secured mortgages and notes payable

  beginning of year $6,946,599 · end of year $6,730,744

• 25 · Other liabilities

  beginning of year $3,266,455 · end of year $3,075,292

• 27 · Net assets without donor restrictions

  beginning of year $351,053,005 · end of year $382,027,164

The filer's explanations (Part III)

PART I, LINE 3

METHODS USED TO ESTABLISH CEO'S COMPENSATION: ESSENTIA HEALTH, AS A RELATED ORGANIZATION, USED THE FOLLOWING METHODS TO ESTABLISH ESSENTIA HEALTH ST. JOSEPH'S MEDICAL CENTER'S ADMINISTRATOR'S COMPENSATION: A COMPENSATION COMMITTEE, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINES 4A-B

SEVERANCE PAYMENT: KEY EMPLOYEE KEVIN CASEY, MD RECEIVED PAYMENTS TOTALING $129,325 IN CALENDAR YEAR 2023 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, CASEY WILL RECEIVE PAY TOTALING $1,029,319 & BENEFITS TOTALING $33,928 FROM OCTOBER 9, 2023 TO APRIL 8, 2025. ALL OTHER INDIVIDUALS LISTED AS FORMERS IN FORM 990, PART VII, SECTION A, LINE 1A DID NOT RECEIVE A SEVERANCE PAYMENT DURING CALENDAR YEAR 2023. SOME OF 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: TRACI MORRIS $79,902 MICHAEL WATTERS $33,314 JON PRYOR, MD $361,146 KEVIN BOREN $25,627 MICHAEL LARSON $25,201 PETER HENRY, MD $20,402 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: WILLIAM HEEGAARD, MD $103,603 TRACI MORRIS $97,190 KEVIN CASEY, MD $85,301 MICHAEL WATTERS $68,732 KEVIN BOREN $38,253 KRISTA SKORUPA, MD $44,501 TODD DEFREECE $44,003 MICHAEL LARSON $6,975

PART I, LINE 8

INITIAL CONTRACT EXCEPTION: ESSENTIA HEALTH ST. JOSEPH'S MEDICAL CENTER'S SENIOR VICE PRESIDENT OF OPERATIONS, TODD DEFREECE, RECEIVED COMPENSATION DURING THE YEAR UNDER AN INITIAL EMPLOYMENT AGREEMENT SUBJECT TO THE INITIAL CONTRACT EXCEPTION. THROUGH THE ESSENTIA HEALTH EXECUTIVE COMPENSATION COMMITTEE, THIS COMPENSATION ARRANGEMENT WAS REVIEWED AND APPROVED BY INDEPENDENT PERSONS USING COMPARABILITY DATA; DELIBERATIONS AND DECISIONS WERE DOCUMENTED. ESSENTIA HEALTH ST. JOSEPH'S MEDICAL CENTER'S CRNA MANAGER, MATTHEW MOHRENWEISER, RECEIVED COMPENSATION DURING THE YEAR UNDER AN INITIAL EMPLOYMENT AGREEMENT SUBJECT TO THE INITIAL CONTRACT EXCEPTION. THROUGH THE ESSENTIA HEALTH PHYSICIAN AND PROVIDER COMPENSATION COMMITTEE, THIS COMPENSATION ARRANGEMENT WAS REVIEWED AND APPROVED BY INDEPENDENT PERSONS USING COMPARABILITY DATA AND THE BASIS FOR DETERMINATION WAS DOCUMENTED.

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 CLINIC INC

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