Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1e · Government grants (contributions)

  $11,855

• 1f · All other contributions, gifts and grants

  $51,777

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $108,097,349 · related or exempt $108,097,349 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $44,255 · excluded $44,255

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

  total $0

• 5 · Royalties

  total $0

• 6a · Gross rents

  real property $40,603

• 6b · Less rental expenses

  real property $58

• 6c · Rental income or loss

  real property $40,545 · personal property $0

• 6d · Net rental income or loss

  total $40,545 · excluded $40,545

• 7a · Gross sales of assets other than inventory

  other assets $5,000

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

  securities $3,565

• 7c · Gain or loss

  securities -$3,565 · other assets $5,000

• 7d · Net gain or loss

  total $1,435 · excluded $1,435

• 8a · Fundraising events: gross income

  $0

• 8b · Fundraising events: direct expenses

  $0

• 8c · Net income from fundraising events

  total $0

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 9c · Net income from gaming

  total $0

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 10c · Net income from sales of inventory

  total $0

• 11a · Other revenue: UNCLAIMED PROPERTY REFUND

  total $94,163 · related or exempt $94,163

• 11b · Other revenue: LIFE LINE: MANAGEMENT SERVICES REVENUE

  total $4,356 · related or exempt $4,356

• 11c · Other revenue: PATERNITY DECLARATIONS

  total $1,354 · related or exempt $1,354

• 11d · All other revenue

  total $481 · related or exempt $481

• 11e · Other revenue, total

  $100,354

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,000 · program services $1,000

• 2 · Grants to domestic individuals

  total $5,000 · program services $5,000

• 3 · Grants to foreign organizations and individuals

  total $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $0

• 6 · Compensation of disqualified persons

  total $0

• 7 · Other salaries and wages

  total $28,034,757 · program services $27,284,382 · management and general $750,375

• 8 · Pension plan contributions

  total $617,324 · program services $600,801 · management and general $16,523

• 9 · Other employee benefits

  total $11,450,904 · program services $11,144,410 · management and general $306,494

• 10 · Payroll taxes

  total $2,330,308 · program services $2,267,935 · management and general $62,373

• 11a · Fees: management

  total $122,548 · program services $26,040 · management and general $96,508

• 11b · Fees: legal

  total $254,740 · program services $254,740

• 11c · Fees: accounting

  total $0

• 11d · Fees: lobbying

  total $0

• 11e · Fees: professional fundraising services

  total $0

• 11f · Fees: investment management

  total $9,850 · management and general $9,850

• 11g · Fees: other

  total $23,422,526 · program services $23,323,019 · management and general $99,507

• 12 · Advertising and promotion

  total $96,465 · management and general $96,465

• 13 · Office expenses

  total $1,236,583 · program services $321,513 · management and general $915,070

• 14 · Information technology

  total $3,729,159 · program services $2,144,252 · management and general $1,584,907

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $1,320,111 · program services $1,242,078 · management and general $78,033

• 17 · Travel

  total $68,592 · program services $61,916 · management and general $6,676

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $16,615 · program services $16,415 · management and general $200

• 20 · Interest

  total $422,786 · program services $422,786

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $5,386,639 · program services $4,513,208 · management and general $873,431

• 23 · Insurance

  total $958,379 · program services $798,986 · management and general $159,393

• 24a · Other expenses: MEDICAL SUPPLIES

  total $14,432,167 · program services $14,432,167 · management and general $0 · fundraising $0

• 24b · Other expenses: SYSTEM ALLOCATION FEE

  total $7,556,074 · program services $4,261,206 · management and general $3,294,868 · fundraising $0

• 24c · Other expenses: PURCHASED SERVICES

  total $3,359,842 · program services $3,218,260 · management and general $141,582 · fundraising $0

• 24d · Other expenses: FOOD SUPPLY

  total $272,097 · program services $271,861 · management and general $236 · fundraising $0

• 24e · All other expenses

  total $689,414 · program services $529,436 · management and general $159,978

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $0 · end of year $0

• 2 · Savings and temporary cash investments

  beginning of year $3,036,439 · end of year $3,212,206

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $11,125,804 · end of year $15,139,990

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $1,009,131 · end of year $1,058,470

• 9 · Prepaid expenses and deferred charges

  beginning of year $737,562 · end of year $782,056

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

  $90,211,634

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

  $67,800,813

• 10c · Land, buildings and equipment, net

  beginning of year $22,899,369 · end of year $22,410,821

• 11 · Investments: publicly traded securities

  beginning of year $0 · end of year $0

• 12 · Investments: other securities

  beginning of year $0 · end of year $0

• 13 · Investments: program-related

  beginning of year $0 · end of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year $8,305,195 · end of year $7,440,274

• 17 · Accounts payable and accrued expenses

  beginning of year $7,030,376 · end of year $9,703,207

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $0 · end of year $0

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 21 · Escrow or custodial account liability

  beginning of year $0 · end of year $0

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $12,235,037 · end of year $603,506

• 27 · Net assets without donor restrictions

  beginning of year $27,677,567 · end of year $39,565,763

• 28 · Net assets with donor restrictions

  beginning of year $170,520 · end of year $171,341

The filer's explanations (Part III)

SCHEDULE J, PART I, LINE 3

SUPPLEMENTAL COMPENSATION INFORMATION: THE CEO OF THIS ORGANIZATION IS AN EMPLOYEE OF SUTTER HEALTH, A RELATED TAX-EXEMPT ORGANIZATION. THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARM'S LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTER'S EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATION'S OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH. SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENTS: GARY HUBSCHMAN RECEIVED SEVERANCE PAYMENTS OF $12,123 SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN: THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTH'S OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN. SUTTER'S PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTHEMPLOYEES IS A COMBINATION OF 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PENSION PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA PROVIDES 6% TO 12% OF BASE SALARY PLUS ANNUAL INCENTIVE PLAN AWARD (COMMENSURATE WITH MANAGEMENT LEVEL). CONTRIBUTIONS ARE ALSO MADE FOR A SMALL GROUP OF SENIOR LEVEL EXECUTIVES WHOSE ESTIMATED RETIREMENT BENEFIT (SOCIAL SECURITY PLUS QUALIFIED PLAN BENEFITS PLUS 457(F) FALLS BELOW 50%-65% OF FINAL 4-YEAR AVERAGE BASE SALARY WHEN RETIRING AT AGE 65 WITH 22.5 YEARS OF SERVICE. TARGET BENEFIT LEVELS ARE DISCOUNTED FOR YEARS OF SERVICE LESS THAN 22.5 AT AGE 65. UNLIKE SUTTER HEALTH'S QUALIFIED PENSION PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTER'S NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT.

SCHEDULE J, PART I, LINE 7

NON-FIXED PAYMENTS: SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD BUT THE AMOUNT TENDS TO NOT EXCEED 5% TO 15% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP): THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, OPERATING UNIT AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. LONG-TERM PERFORMANCE PLANS: SUTTER HEALTH ALSO EMPLOYS LONG-TERM PERFORMANCE PLANS WHICH ARE DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTER'S LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL LONG TERM PERFORMANCE PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS. THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED BY THE COMPENSATION COMMITTEE PRIOR TO PAYMENT.

Related partnerships

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

• SURGERY CENTER OF ALTA BATES SMC

  PATIENT CARE · CA

  Directly controlled by SUTTER BAY HOSP

• CALIFORNIA PACIFIC ADV IMAGING LLC

  PATIENT CARE · DE

  Directly controlled by SUTTER BAY HOSP

• SAN FRANCISCO ENDOSCOPY CENTER

  PATIENT CARE · CA

  Directly controlled by SUTTER BAY HOSP

• SUTTER FAIRFIELD SURGERY CENTER LLC

  PATIENT CARE · CA

  Directly controlled by SUTTER VMF

• SUTTER AMADOR SURGERY CENTER LLC

  PATIENT CARE · CA

  Directly controlled by NA

• ROSEVILLE ENDOSCOPY CENTER

  PATIENT CARE · CA

  Directly controlled by NA

• STANISLAUS SURGICAL HOSPITAL LLC

  PATIENT CARE · CA

  Directly controlled by NA

• MEMORIAL MEDICAL BUILDING 1

  OFFICE RENTAL · CA

  Directly controlled by SUTTER VH

• MAGNETIC IMAGING AFFILIATES LLC

  PATIENT CARE · CA

  Directly controlled by SUTTER BAY HOSP

• ASC OPERATORS - SANTA ROSA LLC

  CARE MANAGEMENT · CA

  Directly controlled by SUTTER BMF

• ASC OPERATORS - SAN LUIS OBISPO LLC

  CARE MANAGEMENT · CA

  Directly controlled by SUTTER HEALTH

• ICG CREDIT OPP FUND LP

  INVESTMENTS · DE

  Directly controlled by SUTTER HEALTH

• CARLSBAD SURGERY CENTER LLC

  PATIENT CARE · CA

  Directly controlled by SOS

• COAST CTR FOR ORTHOPEDIC & ARTHROSCOPIC

  PATIENT CARE · CA

  Directly controlled by SOS

• OTAY LAKES SURGERY CENTER LLC

  PATIENT CARE · CA

  Directly controlled by SOS

• MADISON INTL GLOBAL

  INVESTMENTS · NY

  Directly controlled by SUTTER HEALTH

• DIVISADERO HOLDINGS LLC

  Outpatient surg · CA

  Directly controlled by SUTTER BAY HOSP

• PENINSULA ENDOSCOPY

  Patient Care · CA

  Directly controlled by SUTTER BAY HOSP

• South Placer Surgery Center

  Patient Care · CA

  Directly controlled by Sutter Health

• Sacramento Surgery Center Associates LP

  Patient Care · CA

  Directly controlled by Sutter Health

• Fort Sutter Surgery Center

  Patient Care · CA

  Directly controlled by Sutter Health

• Sutter Alhambra Surgery Center

  Patient Care · CA

  Directly controlled by Sutter Health

• Auburn Surgical Center

  Patient Care · CA

  Directly controlled by Sutter Health

• ASC Operators LLC

  Care Management · CA

  Directly controlled by Sutter Health

• D E SHAW ALL COUNTRY GLOBAL ALPHA PLUS

  Investment · DE

  Directly controlled by SHRP

• ICG CREDIT OPPORTUNITIES FUND 1A LP

  Investment · DE

  Directly controlled by SHRP

• ICG CREDIT OPPORTUNITIES FUND 2A LP

  Investment · DE

  Directly controlled by SHRP

• MAKENA REAL ESTATE II LP

  Investment · CJ

  Directly controlled by SHRP

• D E SHAW ALL COUNTRY GLOBAL ALPHA LL

  Investment · DE

  Directly controlled by Sutter Health

• ICG SPECIAL OPPORTUNITIES FUND I LP

  Investment · DE

  Directly controlled by Sutter Health

Related corporations and trusts

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

• SUTTER HEALTH DEFERRED COMP PLANS TRUST

  TRUST · RABBI TRUST · CA · controlled entity

  Directly controlled by NA

• NORTHWOOD EUROPE TE FEEDER LP

  C CORP · HOLDING COMPA · CJ · controlled entity

  Directly controlled by NA

• Lyxsop Segregated Portfolio 1

  C corp · InVESTMENT · CJ · controlled entity

  Directly controlled by NA

• Lyxsop Segregated Portfolio 2

  c corp · INVESTMENT · CJ · controlled entity

  Directly controlled by NA

• AQR REAL RETURN OFFSHORE FUND LP

  c corp · INVESTMENT · CJ · controlled entity

  Directly controlled by NA

• BRIGADE LEVERAGED CAPITAL STRUCTURE OFFS

  C Corp · Investment · CJ · controlled entity

  Directly controlled by Sutter Health