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Nonprofiteer
← PORTERCARE ADVENTIST HEALTH SYSTEM

Form 990 for tax year 2023

Filed by PORTERCARE ADVENTIST HEALTH SYSTEM.

Totals

Total revenue
$731,175,522
Total expenses
$824,419,557
Contributions and grants received
$0
Grants paid
$1,097,553
Program service revenue
$723,753,234
Investment income
$4,386,068
Other revenue
$3,036,220
Total assets, end of year
$1,847,895,763
Total liabilities, end of year
$526,009,951
Net assets or fund balances, end of year
$1,321,885,812
Program services expenses (Part IX)
$744,471,649
Management and general expenses
$79,947,908
Fundraising expenses
$0
Program service expenses (Part III)
$744,471,649

Program services were 90.3% 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.

  • 2a · Program service revenue: Net Patient Revenue

    total $717,621,044 · related or exempt $717,621,044

  • 2b · Program service revenue: Cafeteria Revenue

    total $1,927,224 · related or exempt $1,927,224

  • 2c · Program service revenue: Pharmacy Revenue

    total $1,798,430 · related or exempt $81,218 · unrelated business $1,717,212

  • 2d · Program service revenue: Medical Office Building Rentals

    total $1,619,630 · related or exempt $1,485,186 · unrelated business $134,444

  • 2e · Program service revenue: Gift Shop Revenue

    total $129,048 · related or exempt $129,048

  • 2f · All other program service revenue

    total $657,858 · related or exempt $657,858

  • 3 · Investment income

    total $7,218,113 · excluded $7,218,113

  • 6a · Gross rents

    real property $54,576

  • 6b · Less rental expenses

    real property $1,600

  • 6c · Rental income or loss

    real property $52,976

  • 6d · Net rental income or loss

    total $52,976 · related or exempt $52,976

  • 7a · Gross sales of assets other than inventory

    other assets $543,497

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

    securities $3,375,542 · other assets $0

  • 7c · Gain or loss

    securities -$3,375,542 · other assets $543,497

  • 7d · Net gain or loss

    total -$2,832,045 · excluded -$2,832,045

  • 11a · Other revenue: Equity Earnings Subsidiaries

    total $2,983,244 · related or exempt $2,983,244

  • 11e · Other revenue, total

    $2,983,244

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $553,111 · program services $553,111

  • 3 · Grants to foreign organizations and individuals

    total $544,442 · program services $544,442

  • 5 · Compensation of officers, directors and key employees

    total $4,580,643 · management and general $4,580,643

  • 7 · Other salaries and wages

    total $242,298,217 · program services $242,298,217

  • 8 · Pension plan contributions

    total $10,381,707 · program services $10,249,226 · management and general $132,481

  • 9 · Other employee benefits

    total $54,149,748 · program services $53,217,631 · management and general $932,117

  • 10 · Payroll taxes

    total $16,406,973 · program services $16,197,604 · management and general $209,369

  • 11b · Fees: legal

    total $60,935 · management and general $60,935

  • 11c · Fees: accounting

    total $199,139 · management and general $199,139

  • 11f · Fees: investment management

    total $1,176,610 · management and general $1,176,610

  • 11g · Fees: other

    total $184,055,675 · program services $142,374,549 · management and general $41,681,126

  • 12 · Advertising and promotion

    total $8,653,998 · management and general $8,653,998

  • 13 · Office expenses

    total $19,261,084 · program services $17,122,250 · management and general $2,138,834

  • 14 · Information technology

    total $1,180,581 · program services $1,113,105 · management and general $67,476

  • 16 · Occupancy

    total $18,920,264 · program services $18,920,264

  • 17 · Travel

    total $424,540 · program services $9,880 · management and general $414,660

  • 19 · Conferences, conventions and meetings

    total $488,791 · management and general $488,791

  • 20 · Interest

    total $4,499,906 · program services $4,499,906

  • 22 · Depreciation, depletion and amortization

    total $41,950,229 · program services $41,950,229

  • 23 · Insurance

    total $3,834,923 · program services $3,714,166 · management and general $120,757

  • 24a · Other expenses: Medical Supplies

    total $135,721,257 · program services $133,693,552 · management and general $2,027,705

  • 24b · Other expenses: State Assessment

    total $43,909,214 · program services $43,909,214

  • 24c · Other expenses: Impairment Loss

    total $14,811,026 · management and general $14,811,026

  • 24d · Other expenses: Repairs and Maintenance

    total $14,028,240 · program services $14,028,240

  • 24e · All other expenses

    total $2,328,304 · program services $76,063 · management and general $2,252,241

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $1,003,815 · end of year $23,743

  • 2 · Savings and temporary cash investments

    beginning of year $124,258,532 · end of year $614,315,338

  • 4 · Accounts receivable

    beginning of year $239,805,770 · end of year $218,899,281

  • 7 · Other notes and loans receivable

    beginning of year $3,766,019 · end of year $2,559,574

  • 8 · Inventories for sale or use

    beginning of year $38,911,389 · end of year $35,182,586

  • 9 · Prepaid expenses and deferred charges

    beginning of year $17,645,096 · end of year $12,183,911

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

    $1,770,493,121

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

    $1,015,064,869

  • 10c · Land, buildings and equipment, net

    beginning of year $705,693,683 · end of year $755,428,252

  • 12 · Investments: other securities

    beginning of year $448,880,136 · end of year $68,550,956

  • 14 · Intangible assets

    beginning of year $58,030,231 · end of year $52,844,662

  • 15 · Other assets

    beginning of year $354,864,660 · end of year $87,907,460

  • 17 · Accounts payable and accrued expenses

    beginning of year $101,057,961 · end of year $112,190,803

  • 19 · Deferred revenue

    beginning of year $916,807

  • 25 · Other liabilities

    beginning of year $397,747,963 · end of year $413,819,148

  • 27 · Net assets without donor restrictions

    beginning of year $1,493,032,744 · end of year $1,320,528,654

  • 28 · Net assets with donor restrictions

    beginning of year $103,856 · end of year $1,357,158

Mission and programs · 2023

Mission

Adventist Health System Sunbelt Healthcare Corporation and all its subsidiary organizations were established by the Seventh-Day Adventist Church to bring a ministry of healing and health to the communities served. Our mission is to extend the healing ministry of Christ.The hospital and healthcare system whose parent is Adventist Health System Sunbelt Healthcare Corporation is known as AdventHealth. AdventHealth seeks to be widely respected as a consumer-focused organization that engages individuals in their health by delivering wholistic, best practice care across a connected, comprehensive continuum of services. With Christ as our example, AdventHealth cares for and nurtures people: our employees, our communities, our healthcare professionals, and those who trust us for care and healing.

Activities or mission (Part I)

The provision of medical care to the community through the operation of five hospitals totaling 979 beds.

  • Operation of 5 acute care hospitals with 17,434 patient admissions, 71,489 patient days and 684,498 outpatient visits in the current year. In addition to hospital operations, the corporation provides medical care through a number of other activities such as urgent care centers, physician clinics, home health services, hospice services, sleep centers, wound centers, therapy and rehab.

    Expenses $744,471,649 · Grants $1,097,553 · Revenue $724,937,798

As filed on the 2023 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • Bacon Kenneth

    Dir/Chairman Multi State CEO (end 11/23)

    Total calculated
    $2,044,666
    From this org
    $0
    From related orgs
    $1,770,929
    Other
    $273,737
    Hours/week
    5 + 45 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,284,422 related
    Bonus
    $0 + $424,601 related
    Other
    $0 + $61,906 related
    Deferred
    $0 + $244,496 related
    Nontaxable benefits
    $0 + $29,241 related
    Filer's total
    $0 + $2,044,666 related
  • Banks David

    Director/Chairman (beg 11/23)

    Total calculated
    $2,385,812
    From this org
    $0
    From related orgs
    $2,205,351
    Other
    $180,461
    Hours/week
    5 + 45 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,427,724 related
    Bonus
    $0 + $443,692 related
    Other
    $0 + $333,935 related
    Deferred
    $0 + $150,677 related
    Nontaxable benefits
    $0 + $29,784 related
    Filer's total
    $0 + $2,385,812 related
  • Houmann Lars

    Director

    Total calculated
    $24,761
    From this org
    $0
    From related orgs
    $24,761
    Other
    $0
    Hours/week
    1 + 3 related
  • Ordelheide Kris

    Director (beg 8/23)

    Total calculated
    $1,102,746
    From this org
    $0
    From related orgs
    $1,008,974
    Other
    $93,772
    Hours/week
    1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $433,043 related
    Bonus
    $0 + $481,317 related
    Other
    $0 + $94,614 related
    Deferred
    $0 + $87,780 related
    Nontaxable benefits
    $0 + $5,992 related
    Filer's total
    $0 + $1,102,746 related
  • Randolph Karsten

    Director/Multi State CFO (beg 8/23)

    Total calculated
    $2,368,832
    From this org
    $0
    From related orgs
    $2,198,983
    Other
    $169,849
    Hours/week
    5 + 45 related

    Schedule J breakdown matched by us

    Base
    $0 + $731,672 related
    Bonus
    $0 + $168,601 related
    Other
    $0 + $1,298,710 related
    Deferred
    $0 + $137,475 related
    Nontaxable benefits
    $0 + $32,374 related
    Filer's total
    $0 + $2,368,832 related
  • Rathbun Paul

    Director (end 8/23)

    Total calculated
    $3,159,893
    From this org
    $0
    From related orgs
    $2,655,900
    Other
    $503,993
    Hours/week
    1 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,347,228 related
    Bonus
    $0 + $441,722 related
    Other
    $0 + $866,950 related
    Deferred
    $0 + $473,177 related
    Nontaxable benefits
    $0 + $30,816 related
    Filer's total
    $0 + $3,159,893 related
  • Spenst Brett

    Director/CEO (beg 8/23)

    Total calculated
    $992,607
    From this org
    $0
    From related orgs
    $956,760
    Other
    $35,847
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $583,228 related
    Bonus
    $0
    Other
    $0 + $373,532 related
    Deferred
    $0 + $11,127 related
    Nontaxable benefits
    $0 + $24,720 related
    Filer's total
    $0 + $992,607 related
  • Thurber Gary

    Director

    Total calculated
    $6,503
    From this org
    $0
    From related orgs
    $6,503
    Other
    $0
    Hours/week
    1 + 3 related
  • Thurber John Mic

    Director

    Total calculated
    $5,706
    From this org
    $0
    From related orgs
    $5,706
    Other
    $0
    Hours/week
    1 + 3 related
  • Enderson Dan

    Sec/Group President/CFO (beg 8/23)

    Total calculated
    $3,327,242
    From this org
    $0
    From related orgs
    $3,016,062
    Other
    $311,180
    Hours/week
    45 + 5 related

    Schedule J breakdown matched by us

    Base
    $0 + $833,256 related
    Bonus
    $0 + $861,315 related
    Other
    $0 + $1,321,491 related
    Deferred
    $0 + $280,930 related
    Nontaxable benefits
    $0 + $30,250 related
    Filer's total
    $0 + $3,327,242 related
  • Gaasch Andrew

    Treasurer/CFO (end 8/23)

    Total calculated
    $3,361,500
    From this org
    $0
    From related orgs
    $3,099,191
    Other
    $262,309
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $1,128,052 related
    Bonus
    $0 + $1,135,433 related
    Other
    $0 + $835,706 related
    Deferred
    $0 + $228,657 related
    Nontaxable benefits
    $0 + $33,652 related
    Filer's total
    $0 + $3,361,500 related
  • Dodds Rick

    CEO Littleton Adventist Hospital

    Total calculated
    $1,040,356
    From this org
    $0
    From related orgs
    $910,939
    Other
    $129,417
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $443,673 related
    Bonus
    $0 + $340,399 related
    Other
    $0 + $126,867 related
    Deferred
    $0 + $95,296 related
    Nontaxable benefits
    $0 + $34,121 related
    Filer's total
    $0 + $1,040,356 related
  • Erickson Jonathan

    CFO Avista Adventist Hospital (beg 9/23)

    Total calculated
    $437,955
    From this org
    $0
    From related orgs
    $400,025
    Other
    $37,930
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $241,741 related
    Bonus
    $0 + $29,018 related
    Other
    $0 + $129,266 related
    Deferred
    $0 + $9,844 related
    Nontaxable benefits
    $0 + $28,086 related
    Filer's total
    $0 + $437,955 related
  • Folkenberg Todd

    CEO Porter Adventist Hospital

    Total calculated
    $1,426,522
    From this org
    $0
    From related orgs
    $1,270,050
    Other
    $156,472
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $452,825 related
    Bonus
    $0 + $305,921 related
    Other
    $0 + $511,304 related
    Deferred
    $0 + $113,126 related
    Nontaxable benefits
    $0 + $43,346 related
    Filer's total
    $0 + $1,426,522 related
  • Gal Matt

    CFO Castle Rock Adventist Hospital

    Total calculated
    $298,891
    From this org
    $0
    From related orgs
    $284,361
    Other
    $14,530
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $218,935 related
    Bonus
    $0 + $64,709 related
    Other
    $0 + $717 related
    Deferred
    $0 + $6,929 related
    Nontaxable benefits
    $0 + $7,601 related
    Filer's total
    $0 + $298,891 related
  • Goebel Michael

    CEO Parker Adventist Hospital

    Total calculated
    $1,124,229
    From this org
    $0
    From related orgs
    $1,001,751
    Other
    $122,478
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $461,855 related
    Bonus
    $0 + $419,197 related
    Other
    $0 + $120,699 related
    Deferred
    $0 + $89,280 related
    Nontaxable benefits
    $0 + $33,198 related
    Filer's total
    $0 + $1,124,229 related
  • Pittman Jeremy

    CEO Castle Rock Adventist Hospital

    Total calculated
    $810,006
    From this org
    $0
    From related orgs
    $681,679
    Other
    $128,327
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $349,374 related
    Bonus
    $0 + $212,442 related
    Other
    $0 + $119,863 related
    Deferred
    $0 + $86,888 related
    Nontaxable benefits
    $0 + $41,439 related
    Filer's total
    $0 + $810,006 related
  • Still Danae

    CFO Littleton Adventist Hospital

    Total calculated
    $572,027
    From this org
    $0
    From related orgs
    $520,487
    Other
    $51,540
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $258,726 related
    Bonus
    $0 + $72,385 related
    Other
    $0 + $189,376 related
    Deferred
    $0 + $8,942 related
    Nontaxable benefits
    $0 + $42,598 related
    Filer's total
    $0 + $572,027 related
  • Travis Carol

    CFO Avista Adventist Hospital

    Total calculated
    $440,745
    From this org
    $0
    From related orgs
    $375,424
    Other
    $65,321
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $289,011 related
    Bonus
    $0 + $84,400 related
    Other
    $0 + $2,013 related
    Deferred
    $0 + $26,287 related
    Nontaxable benefits
    $0 + $39,034 related
    Filer's total
    $0 + $440,745 related
  • Ward Erin

    CFO Parker Adventist Hospital

    Total calculated
    $365,743
    From this org
    $0
    From related orgs
    $359,020
    Other
    $6,723
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $279,856 related
    Bonus
    $0 + $78,194 related
    Other
    $0 + $970 related
    Deferred
    $0 + $6,594 related
    Nontaxable benefits
    $0 + $129 related
    Filer's total
    $0 + $365,743 related
  • Whitlock Andrew

    CFO Porter Adventist Hospital

    Total calculated
    $330,599
    From this org
    $0
    From related orgs
    $296,582
    Other
    $34,017
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0 + $242,754 related
    Bonus
    $0 + $52,640 related
    Other
    $0 + $1,188 related
    Deferred
    $0 + $6,820 related
    Nontaxable benefits
    $0 + $27,197 related
    Filer's total
    $0 + $330,599 related
  • Finch Kenneth

    CEO Avista Adventist Hospital

    Total calculated
    $306,000
    From this org
    $0
    From related orgs
    $306,000
    Other
    $0
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $0
    Bonus
    $0
    Other
    $0 + $306,000 related
    Deferred
    $0
    Nontaxable benefits
    $0
    Filer's total
    $0 + $306,000 related
  • Ewell MD Nelson

    Surgeon-Neuro

    Total calculated
    $1,108,846
    From this org
    $1,055,986
    From related orgs
    $0
    Other
    $52,860
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $1,006,659
    Bonus
    $44,984
    Other
    $4,343
    Deferred
    $19,800
    Nontaxable benefits
    $33,060
    Filer's total
    $1,108,846
  • Jennings MD Jason

    Surgeon-Orthopedic

    Total calculated
    $1,215,781
    From this org
    $1,163,346
    From related orgs
    $0
    Other
    $52,435
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $1,096,075
    Bonus
    $63,429
    Other
    $3,842
    Deferred
    $19,800
    Nontaxable benefits
    $32,635
    Filer's total
    $1,215,781
  • Miner MD Todd

    Surgeon-Orthopedic

    Total calculated
    $1,164,229
    From this org
    $1,109,169
    From related orgs
    $0
    Other
    $55,060
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $1,049,690
    Bonus
    $52,906
    Other
    $6,573
    Deferred
    $26,049
    Nontaxable benefits
    $29,011
    Filer's total
    $1,164,229
  • RajpalMD Sharad

    Surgeon-Neuro

    Total calculated
    $1,722,350
    From this org
    $1,672,543
    From related orgs
    $0
    Other
    $49,807
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $1,668,892
    Bonus
    $0
    Other
    $3,651
    Deferred
    $14,665
    Nontaxable benefits
    $35,142
    Filer's total
    $1,722,350
  • Yang MD Charlie

    Surgeon-Orthopedic

    Total calculated
    $1,207,282
    From this org
    $1,158,921
    From related orgs
    $0
    Other
    $48,361
    Hours/week
    50

    Schedule J breakdown matched by us

    Base
    $997,820
    Bonus
    $157,535
    Other
    $3,566
    Deferred
    $16,125
    Nontaxable benefits
    $32,236
    Filer's total
    $1,207,282
  • Banko Peter

    Former Officer

    Total calculated
    $8,978,109
    From this org
    $0
    From related orgs
    $8,101,604
    Other
    $876,505
    Hours/week
    5 + 45 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,914,510 related
    Bonus
    $0 + $2,583,661 related
    Other
    $0 + $3,603,433 related
    Deferred
    $0 + $847,002 related
    Nontaxable benefits
    $0 + $29,503 related
    Filer's total
    $0 + $8,978,109 related
  • Fisher Jonathan

    Former Key Employee

    Total calculated
    $682,062
    From this org
    $0
    From related orgs
    $584,185
    Other
    $97,877
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $321,125 related
    Bonus
    $0 + $45,997 related
    Other
    $0 + $217,063 related
    Deferred
    $0 + $67,527 related
    Nontaxable benefits
    $0 + $30,350 related
    Filer's total
    $0 + $682,062 related
  • McKinney Jillyan

    Former Key Employee

    Total calculated
    $769,420
    From this org
    $0
    From related orgs
    $647,906
    Other
    $121,514
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $512,879 related
    Bonus
    $0 + $107,509 related
    Other
    $0 + $27,518 related
    Deferred
    $0 + $89,062 related
    Nontaxable benefits
    $0 + $32,452 related
    Filer's total
    $0 + $769,420 related
  • Sendros Isaac

    Former Key Employee

    Total calculated
    $1,048,957
    From this org
    $0
    From related orgs
    $930,653
    Other
    $118,304
    Hours/week
    0 + 50 related

    Schedule J breakdown matched by us

    Base
    $0 + $404,558 related
    Bonus
    $0 + $156,655 related
    Other
    $0 + $369,440 related
    Deferred
    $0 + $87,437 related
    Nontaxable benefits
    $0 + $30,867 related
    Filer's total
    $0 + $1,048,957 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

  • 1a · First-class or charter travel
  • 1a · Travel for companions
  • 1a · Tax indemnification and gross-up payments
  • 1a · Discretionary spending account
  • 1a · Housing allowance or residence for personal use
  • 1b · Written policy on the line-1a expenses
  • 2 · Substantiation required before reimbursing expenses
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 4a · Severance or change-of-control payment
  • 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 1a
Prior to August 1, 2023, members of the filing organization's top management officials were compensated by Centura Health Corporation (CHC). CHC was a joint operating management company who managed the daily activities of Portercare Adventist Health System under a joint operating agreement dated December 8, 1995 between Adventist Health System Sunbelt Healthcare Corporation (ASHHSC) and Common Spirit Health (CSH). As such, the officers and key employees salaries were paid to them by CHC, a related organization, for services rendered in their capacity as key employees or officers of PAHS. However, effective August 1, 2023, AHSSHC and CSH disaffiliated, and management of the filing organization was transferred back to its sole member, AHSSHC. After disaffiliation, members of the filing organization's executive management team that hold the position of Vice-President or above were compensated by and on the payroll of Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the parent organization of the healthcare system known as AdventHealth. AHSSHC is exempt from federal income tax under IRC Section 501(c)(3). The filing organization reimburses AHSSHC for the salary and benefit cost of those executives listed in Part VII that are on the payroll of AHSSHC. At the direction of AHSSHC, and in accordance with the reserved powers in the filing organization's governing documents, the executive team listed on Part VII provides services to the filing organization. For this short year tax return, both parties (CHC and AHSSHC) compensated officer and key employees of the filing organization. All of their reportable compensation is disclosed on Form 990, Schedule J, Part II, row (ii) and Form 990, Part VII, column (e) as compensation from related organizations. First-class or charter travel: Pursuant to the AdventHealth system-wide general policy regarding business travel, no reimbursement will be provided for any additional cost incurred with respect to first-class or charter air travel beyond the cost of a regular coach airfare. As a means of providing additional business travel reimbursement for those members of the AHSSHC senior executive management team that travel frequently on behalf of AdventHealth, a special annual travel allowance is provided for those executives. As AdventHealth operates 50 hospitals in 9 states, the senior leadership of AHSSHC travel extensively and often visit multiple hospital locations in different states as a part of a single business trip. The special travel allowance can provide reimbursements to the executive for such items as the purchase of air travel upgrade coupons, to cover the cost differential between coach and first-class travel, or to cover the cost of a charter flight. The special travel allowance benefit was originally authorized by and codified into a policy by the AHSSHC Board Compensation Committee (the Committee), an independent body of the AHSSHC Board of Directors, who also approves the annual cap on the amount of the allowance. The special travel allowance has an annual cap of $24,000 for members of the Leadership Executive Team (15 AdventHealth Cabinet members and the AdventHealth Multi-State CFO) and $15,000 for AdventHealth Corporate Office Senior Vice Presidents, Regional CEO's, and Division Chief Officers (generally 45-55 individual executives). The filing organization's CEO, the Multi-State CEO and the Multi-State CFO for AdventHealth are members of the Board of Directors of the filing organization. These individuals are considered common law employees of and are on the payroll of AHSSHC. While the special travel allowance benefit is an AHSSHC compensation policy and practice, the cost of providing this benefit is allocated to and either wholly or partially reimbursed by the filing organization. Accordingly, the filing organization has checked the box in Schedule J, Part I, line 1a for first-class or charter travel since it has wholly or partially paid for the cost of providing this benefit. Those executives who receive the special travel allowance are responsible for tracking the expenses reimbursable under the special travel allowance and must submit such expenses on their accountable plan expense report. A report on charter travel is provided to the AHSSHC Board Compensation Committee at each meeting. Any taxable reimbursements made to executives under the special travel allowance arrangement are treated as taxable compensation to the executive. Travel for companions: AHSSHC has a Corporate Executive Policy that provides a benefit to allow for a traveling AHSSHC executive to have his or her spouse accompany the executive on certain business trips each year. Typically, reimbursement is only provided to certain executive leaders and is usually limited to one business trip per year beyond the annual AdventHealth President's Council business meeting and other meetings where the spouse is specifically invited. The AHSSHC Corporate Executive Spousal Travel Policy was originally approved and reviewed by the AHSSHC Board Compensation Committee, an independent body of the AHSSHC Board of Directors. All spousal travel costs reimbursed to the executive are considered taxable compensation to the executive. Tax Indemnification and gross-up payments: Tax Indemnification and gross-up payments: AdventHealth has a system-wide policy addressing gross-up payments provided in connection with employer-provided benefits/other taxable items. Under the policy, certain taxable business-related reimbursements (i.e. taxable business-related moving expenses, taxable items provided in connection with employment) provided to any employee may be grossed-up at a 25% rate upon approval by the filing organization's CEO and CFO. Additionally, employees at the Director level and above are eligible for gross-up payments on gifts received for board of director services. Discretionary spending account: Prior to the AHSSHC and CSH disaffiliation effective Aug 1, 2023, CHC provided a cash discretionary spending account was provided to eligible executives in the form of a car allowance of $750 per month to help offset business travel expense. After the disaffiliation, only occasional discretionary spending amounts were periodically provided to eligible executives who attend annual business meetings such as the AdventHealth President's Council, CFO Conference or the CMO/CNO business meeting. Payments provided to each executive are considered taxable compensation to the executive. Housing allowance or residence for personal use: AHSSHC has a Corporate Executive Policy that addresses assistance to executives who have been relocated by the company during the year. Relocation assistance provided to executives may include relocation allowances to assist with duplicate housing expenses. Relocation assistance is administered per AHSSHC policy by an external relocation company. All taxable reimbursements made to executives in connection with relocation assistance are treated as wages to the executive and are subject to all payroll withholding and reporting requirements.
Part I, Line 3
As discussed in Part VI, Section B, Line 15, and in Line 1 above, the organization's top management officials' compensation was paid by Centura Health Corporation (CHC) prior to the disaffiliation on Aug 1, 2023 and after disaffiliation was paid by Adventist Health System Sunbelt Healthcare Corporation (ASHHSC). All of their reportable compensation is disclosed on Form 990, Schedule J, Part II, row (ii) and Form 990, Part VII, column (e) as compensation from related organizations. The individual serving as the CEO of the filing organization was appointed effective Aug. 1, 2023 and is compensated by Adventist Health System Sunbelt Healthcare Corporation (AHSSHC) (please see our response to Part I, Line 1a above regarding the disaffiliation). Compensation and benefits provided to this individual are determined pursuant to policies, procedures, and processes of AHSSHC that are designed to ensure compliance with the intermediate sanctions laws as set forth in IRC Section 4958. AHSSHC has taken steps to ensure that processes are in place to satisfy the rebuttable presumption of reasonableness standard as set forth in Treasury Regulation Section 53.4958-6 with respect to its active executive-level positions. The AHSSHC Board Compensation Committee (the Committee) serves as the governing body for all executive compensation matters. The Committee is composed of certain members of the Board of Directors (the Board) of AHSSHC. Voting members of the Committee include only individuals who serve on the Board as independent representatives, who hold no employment positions with AHSSHC and who do not have relationships with any of the individuals whose compensation is under their review that impacts their best independent judgment as fiduciaries of AHSSHC. The Committee's role is to review and approve all components of the executive compensation plan of AHSSHC. As an independent governing body with respect to executive compensation, it should be noted that the Committee will often confer in executive sessions on matters of compensation policy and policy changes. In such executive sessions, no members of management of AHSSHC are present, other than the Chief People Officer, who remains at the request of the Chairman/committee to provide assistance/information as needed. The Committee is advised by an independent third-party compensation advisor. This advisor prepares all the benchmark studies for the Committee. Compensation levels are benchmarked with a national peer group of other not-for-profit healthcare systems and hospitals of similar size and complexity to AdventHealth and each of its affiliated entities. The following principles guide the establishment of individual executive compensation: - The salary of the President/CEO of AdventHealth will not exceed the 50th percentile of comparable salaries paid by similarly situated organizations; and - Other executive salaries shall be established using market medians. The compensation philosophy, policies, and practices of AHSSHC are consistent with the organization's faith-based mission and conform to applicable laws, regulations, and business practices. As a faith-based organization sponsored by the Seventh-day Adventist Church (the Church), AHSSHC's philosophy and principles with respect to its executive compensation practices reflect the conservative approach of the Church's mission of service and were developed in counsel with the Church's leadership.
Part I, Line 4b
Line 4b: As discussed in Line 1 above, the organization's top management officials' compensation was paid by Centura Health Corporation (CHC) prior to the disaffiliation on Aug 1, 2023 and after disaffiliation was paid by Adventist Health System Sunbelt Healthcare Corporation (ASHHSC). All officers and key employees' salaries and all associated benefits were paid for services rendered in their capacity as key employees or officers of the filing organization. All of their reportable compensation is disclosed on Form 990, Schedule J, Part II, row (ii) and Form 990, Part VII, column (e) as compensation from related organizations. CHC Benefit plans (prior to Aug 1, 2023): Senior executives on the filing organization's management team that hold the position of Senior Vice-President or Hospital CEO are eligible to participate in the CHC EXECU-FLEX Benefit Plan (the Plan). In recognition of the contribution that each executive makes to the success of CHC, CHC provides for participation in the Plan to the eligible executives. The purpose of the Plan is to offer an opportunity to elect from among a variety of supplemental benefits to individually tailor a benefits program appropriate to each executive's needs. The executive is provided with a Flex allowance equivalent to 10% of base salary to purchase selected benefits and to contribute into a deferred non-qualified supplemental executive retirement plan. The Plan provides for a five-year cliff-vesting schedule with respect to amounts accumulated in the executive's deferred compensation account. CHC contributes into these deferred compensation accounts semi-annually and amounts are subject to a substantial risk of forfeiture with active participation required at time of vesting. In addition, CHC provides a Pension Restoration Benefit (PRB) to restore qualified plan contributions lost on income in excess of the current federal maximum allowable compensation to a qualified plan. The PRB provides contributions by restoring the amount that would have been contributed to the executive's retirement savings plan for compensation in excess of the legislative limits. Benefit amounts are added to the participant's flex allowance each year based on their total compensation from the prior year. The following received contributions to a non-qualified plan for the calendar year 2023: CY Employer CY Employer CY SERP CY PRB SERP Contr. PRB Contr. Distrib. Distrib. Peter Banko 441,351 395,151 1,482,363 1,304,913 Andrew Gaasch 126,891 93,891 427,812 254,242 Daniel Enderson 123,625 90,625 587,997 438,305 Todd Folkenberg 54,183 21,183 278,355 138,265 Michael Goebel 55,365 22,365 0 0 Kris Ordelheide 53,891 23,389 0 0 Isaac Sendros 18,078 0 154,563 37,206 Rick Dodds 45,743 12,743 70,841 7,515 Jeremy Pittman 44,158 11,158 74,364 18,555 Jillyan McKinney 0 0 144,130 50,660
Schedule J, Line 4b:
AHSSHC benefit plans (effective Aug 1, 2023) As discussed in Line 1a above, executives on the filing organization's management team that hold the position of Vice-President or above are compensated by and on the payroll of Adventist Health System Sunbelt Healthcare Corporation (AHSSHC), the parent organization of the healthcare system known as AdventHealth. In recognition of the contribution that each executive makes to the success of AdventHealth, AdventHealth provides supplemental executive retirement benefit plans to eligible executives. As the supplemental executive retirement benefit plans were updated in 2020 and certain individuals still participate as grand-fathered participants in certain plans, the narrative below discusses all plans in which there were any participants in 2023. The SERP III plan effectively replaces the prior SERP II plan, the Executive Flex Benefit Program Plan, and the Senior Executive Death Benefit Plan for qualified executives except for certain grandfathered executive employees. SERP III Plan: The SERP III plan provides eligible executives a percentage of their base pay, which is credited to a deferred compensation account. The plan also provides for compensation deferral and selection of life insurance coverage and long-term care insurance. To be eligible to participate in the SERP III plan, executives must be on the AHSSHC corporate payroll and be either a CEO of an AdventHealth entity, an AHSSHC Vice President (VP) or VP of an AdventHealth entity with a base salary of at least $330,000 in 2023 (adjusted annually by the same percentage as IRC Section 401(a)(17) limit increases), or other leader specifically approved by the AdventHealth President. Eligible executives do not include grandfathered executives, meaning those executives who would satisfy all the eligibility requirements of the SERP II plan prior to Dec 31, 2027, had the plan not been amended and restated as of Jan. 1, 2020. Contribution credits will be established and maintained by class year accounts for each participant using tiered contribution credit percentages of annual base compensation. Contribution credit percentages range between 15% and 19% of base compensation. Contribution credits will be made each quarter in 25% increments with reductions in contributions if the executive is also a grandfathered FLEX participant (see below). SERP III provides for a class year vesting and payment schedule (7 years for each class year) with respect to amounts accumulated in the executive's deferred compensation account. Upon attainment of a normal retirement age (age 62), or upon certain other circumstances as defined in the SERP III plan document, all deferred amounts are paid immediately to the participant. For any executives working beyond the normal retirement age, future employer contributions will be made quarterly from SERP III directly to the participant as a taxable cash bonus. SERP II Plan: The SERP II plan is a defined benefit, non-tax-qualified deferred compensation plan for certain executives who have provided lengthy service to AdventHealth and/or to other Seventh-day Adventist Church hospitals or health care institutions. Under the provisions of the SERP II plan, benefits are provided to qualifying executive participants on a pro-rata schedule beginning with 20 years of service as an employee of AdventHealth and/or another hospital or health care institution controlled by the Seventh-day Adventist Church and who satisfy certain other qualifying criteria. Eligible employees are restricted to those executives who, as of January 1, 2020, satisfied, or if employment continues, will satisfy the eligibility requirements of SERP II prior to December 31, 2027. This supplemental executive retirement plan (SERP II) was designed to provide eligible executives with the economic equivalent of an annual income beginning at normal retirement age equal to 60% of the average of the participant's three, five or seven highest years of base salary from AdventHealth active employment inclusive of income from all other Seventh-day Adventist Church healthcare employer-financed retirement income sources and investment income earned on those contributions through social security normal retirement age as defined in the plan. The number of years included in highest average compensation is determined by the individual's year of entry to SERP II and by the individual's year of entry to the AdventHealth Executive FLEX Benefit Program. FLEX Plan: The Flex Plan was originally designed to provide eligible executives an opportunity to select from among a variety of supplemental benefits, including a split dollar life insurance policy and long-term care insurance, to individually tailor a benefits program appropriate to each executive's needs. In 2020, the Flex Plan was amended to exclude employed executives who are hired or promoted after a certain date from being eligible to participate in the Flex Plan except for certain insurance coverage features of the plan. The Flex Plan provides eligible participants a pre-determined benefits allowance credit that is equal to a percentage of the executive's base pay from which the cost of mandatory and elective employee benefits is deducted. The benefits allowance credit percentage for any plan year shall not be greater than the maximum dollar amount or the percentage of compensation as determined by the AdventHealth Benefits Administration Committee. For grandfathered eligible employees, the annual pre-determined Flex allowance is contributed and any funds that remain after the cost of mandatory and elective benefits are subtracted are, at the employee's option, contributed to either an IRC 457(f) deferred compensation account or to an IRC 457(b) eligible deferred compensation plan. Upon attainment of age 65, all previous 457(f) deferred amounts are paid immediately to the participant and any future employer contributions are made quarterly from the Plan directly to the participant. The Plan provides for a class year vesting schedule (2 years for each class year) with respect to amounts accumulated in the executive's 457(f) deferred compensation account. Distributions could also be made from the executive's 457(f) deferred compensation account upon attainment of age 65 or upon an involuntary separation. The account will be forfeited by the executive upon a voluntary separation. With respect to grandfathered participants, the Flex Plan documents define eligible employees to include the Chief Executive Officers of AdventHealth entities and Vice Presidents of all AdventHealth entities whose base salary was at least equal to the Internal Revenue Code Section 401(a)(17) compensation limit each year.
Schedule J, Line 4b: continuation
Flex Plan Flex Plan SERP II SERP III SERP III Contr. Distr.* Contr./Distr. Contr. Distr.* -------------------------------------------------------------- Dan Enderson $ 0 $ 0 $ 0 $ 56,180 $ 0 Paul Rathbun $155,450 $132,564 $ 632,721 $ 0 $ 0 David Banks $155,450 $152,379 $ 90,424 $ 0 $ 0 Karsten Randolph $119,748 $ 74,817 $1,188,200 $ 0 $ 0 Kenneth Bacon $ 0 $ 0 $ 0 $237,896 $ 0 Todd Folkenberg $ 0 $ 0 $ 0 $ 27,260 $ 0 Michael Goebel $ 0 $ 0 $ 0 $ 26,792 $ 26,792 Isaac Sendros $ 0 $ 0 $ 0 $ 49,615 $ 0 Rick Dodds $ 0 $ 0 $ 0 $ 25,260 $ 0 Brett Spenst $ 0 $ 0 $ 0 $105,231 $105,231 Jeremy Pittman $ 0 $ 0 $ 0 $ 20,322 $ 0 Jillyan McKinney $ 0 $ 0 $ 0 $ 77,935 $ 0 Jonathan Fisher $ 0 $ 0 $ 0 $ 49,800 $ 0 Carol Travis $ 0 $ 0 $ 0 $ 17,135 $ 0 * Including Investment Earnings

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

The 10 largest by cash amount. The API serves every itemized grant.

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.

  • HealthFit Family Medicine LLC

    Medical Services - family practice (inactive) · CO · income $0 · assets $0

    Directly controlled by Portercare Adventist Health System

  • HealthFit Medical Professionals LLC

    Medical Services - family practice (inactive) · CO · income $0 · assets $0

    Directly controlled by Portercare Adventist Health System

  • HealthFit Wellness Professionals LLC

    Fitness Center (inactive) · CO · income $0 · assets $0

    Directly controlled by Portercare Adventist Health System

Related partnerships

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

  • AdventHealth Surgery Center Daytona Beach LLC

    Surgery Center · FL

  • AdventHealth Surgery Center Innovation Tower LLC

    Surgery Center · FL

  • Fletcher Hospital Surgical Ventures LLC

    Indirect Interest in Surgery Center · NC

  • Florida Hospital DMERT LLC

    Medical Equipment · FL · general or managing partner

  • Florida Hospital Home Infusion LLP

    Home Infusion Services · FL · general or managing partner

  • Functional Neurosurgical Ambulatory Surgery Ctr LLC

    Related · Surgery Center · CO · 51% owned

    Directly controlled by Portercare Adventist Health System

  • M&O Orlando MOB I LLC

    Operation of Medical Office Building · DE

  • OnPoint OBGYN LLC

    Related · Healthcare Services · CO · 51% owned · share of income $100,189 · share of assets $694,223

    Directly controlled by Portercare Adventist Health System

  • Orange City Surgical LLC

    Surgery Center · FL

  • PAHS OnPoint Imaging LLC

    Related · Imaging Center · CO · 51% owned · share of income $400,908 · share of assets $57,771

    Directly controlled by Portercare Adventist Health System

  • PAHS OnPoint Urgent Care LLC

    Related · Urgent Care Center · CO · 54% owned · share of income -$1,100,998 · share of assets $6,151,002

    Directly controlled by Portercare Adventist Health System

  • Surgery Center of Rome LP

    Surgery Center · GA

  • SCA - Alliance LLC

    Indirect Interest in Surgery Center · DE

  • SCA-Central Florida LLC

    Indirect Interest in Surgery Center · DE

  • The Bariatric Center of Kansas City LLC

    Surgery Center · KS

  • Urgent Care Centers of Brevard County LLC

    Urgent Care Centers · FL · general or managing partner

Related corporations and trusts

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

  • AdventHealth at Overland Park-College MOB Condominium Assoc

    C · Condo Association · KS · controlled entity

  • AdventHealth City Center North Owners' Assoc Inc (65-123123)

    C · Maintenance Association · KS · controlled entity

  • AdventHealth Primary Care Inc fka AH North Polk Inc

    C · Inactive · FL · controlled entity

  • AdventHealth Value Based Bundle Management LLC

    C · Medical Contracting and Billing · FL · controlled entity

  • Altamonte Medical Plaza Condominium Association Inc

    C · Condo Association · FL · controlled entity

  • Apopka Medical Plaza Condominium Assoc Inc (11-123123)

    C · Condo Association · FL · controlled entity

  • Battle Creek Adventist Hospital

    C · Inactive · MI · controlled entity

  • Florida Hospital Flagler Medical Offices Association Inc

    C · Condo Association · FL · controlled entity

  • Florida Hosp Hlth Village Property Owner's Assoc Inc

    C · Condo Association · FL · controlled entity

  • Florida Hospital Healthcare System Inc

    C · PHSO / CIN · FL · controlled entity

  • Florida Medical Plaza Condominium Association Inc

    C · Condo Association · FL · controlled entity

  • Kissimmee Multispecialty Clinic Condominium Association Inc

    C · Condo Association · FL · controlled entity

  • Midwest Management Services Inc

    C · Inactive · KS · controlled entity

  • North American Health Services Inc & Sub

    C · Holding Co. · TN · controlled entity

  • Ormond Prof Associates Condo Assoc Inc (430 year end)

    C · Condo Association · FL · controlled entity

  • Park Ridge Property Owner's Association Inc

    C · Condo Association · NC · controlled entity

  • Park Ridge Condominium #1 Unit Owners Association Inc

    C · Condo Association · NC · controlled entity

  • Redmond Park Health Services Inc

    C · Holding Company · GA · controlled entity

  • Surgicare of Rome Inc

    C · Holding Company · GA · controlled entity

  • The Garden Retirement Community Inc

    C · Real Estate Rental · FL · controlled entity

  • Winter Park Medical Office Building I Condo Assoc Inc

    C · Condo Association · FL · controlled entity

Provenance

Return type
form_990
Tax year
2023
Filed
15 November 2024
IRS schema version
2023v5.1
Source object
202433209349315278

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