Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $4,625

• 1b · Membership dues

  $0

• 1c · Fundraising events

  $0

• 1d · Related organizations

  $0

• 1e · Government grants (contributions)

  $0

• 1f · All other contributions, gifts and grants

  $649,092

• 1g · Noncash contributions included above

  $0

• 2a · Program service revenue: OTHER NET PATIENT REVENUE

  total $786,628,933 · related or exempt $783,495,788 · unrelated business $3,133,145

• 2b · Program service revenue: MEDICARE/MEDICAID NET PATIENT REVENUE

  total $542,967,726 · related or exempt $542,967,726

• 2c · Program service revenue: RENT REVENUE FROM AFFILIATES

  total $8,620,145 · related or exempt $8,620,145

• 2d · Program service revenue: MISCELLANEOUS RETAIL SALES

  total $375,009 · related or exempt $375,009

• 2e · Program service revenue: EQUITY IN EARNINGS

  total $268,399 · related or exempt $268,399

• 3 · Investment income

  total $2,287,185 · related or exempt $0 · unrelated business $0 · excluded $2,287,185

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

  total $0

• 5 · Royalties

  total $0

• 6c · Rental income or loss

  real property $0 · personal property $0

• 6d · Net rental income or loss

  total $0

• 7a · Gross sales of assets other than inventory

  securities $132,777,224

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

  securities $136,957,292

• 7c · Gain or loss

  securities -$4,180,068

• 7d · Net gain or loss

  total -$4,180,068 · related or exempt $0 · unrelated business $0 · excluded -$4,180,068

• 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: CONVENIENCE PHARMACY REVENUE

  total $85,279,482 · related or exempt $85,279,482

• 11b · Other revenue: MANAGEMENT FEE REVENUE

  total $17,957,709 · related or exempt $17,573,397 · unrelated business $384,312

• 11c · Other revenue: SALE OF SERVICE

  total $10,786,997 · related or exempt $9,638,605 · unrelated business $1,148,392

• 11d · All other revenue

  total $18,674,034 · related or exempt $8,042,717 · unrelated business $62,310 · excluded $10,569,007

• 11e · Other revenue, total

  $132,698,222

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $4,189,963 · program services $4,189,963

• 2 · Grants to domestic individuals

  total $29,000 · program services $29,000

• 3 · Grants to foreign organizations and individuals

  total $0 · program services $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $8,743,540 · program services $0 · management and general $8,743,540 · fundraising $0

• 6 · Compensation of disqualified persons

  total $0 · program services $0 · management and general $0 · fundraising $0

• 7 · Other salaries and wages

  total $509,724,661 · program services $433,760,102 · management and general $75,918,810 · fundraising $45,749

• 8 · Pension plan contributions

  total $28,624,329 · program services $23,964,987 · management and general $4,656,813 · fundraising $2,529

• 9 · Other employee benefits

  total $76,698,299 · program services $62,500,472 · management and general $14,126,714 · fundraising $71,113

• 10 · Payroll taxes

  total $36,403,346 · program services $30,320,115 · management and general $6,061,599 · fundraising $21,632

• 11a · Fees: management

  total $0 · program services $0 · management and general $0 · fundraising $0

• 11b · Fees: legal

  total $1,028,327 · program services $0 · management and general $1,028,327 · fundraising $0

• 11c · Fees: accounting

  total $0 · program services $0 · management and general $0 · fundraising $0

• 11d · Fees: lobbying

  total $65,603 · program services $0 · management and general $65,603 · fundraising $0

• 11e · Fees: professional fundraising services

  total $0 · fundraising $0

• 11f · Fees: investment management

  total $0 · program services $0 · management and general $0 · fundraising $0

• 11g · Fees: other

  total $25,563,948 · program services $16,490,717 · management and general $9,071,635 · fundraising $1,596

• 12 · Advertising and promotion

  total $5,345,937 · program services $5,345,937 · management and general $0 · fundraising $0

• 13 · Office expenses

  total $67,612,019 · program services $19,529,655 · management and general $48,059,029 · fundraising $23,335

• 14 · Information technology

  total $5,402,093 · program services $1,145,142 · management and general $4,255,581 · fundraising $1,370

• 15 · Royalties

  total $0 · program services $0 · management and general $0 · fundraising $0

• 16 · Occupancy

  total $29,219,301 · program services $16,971,749 · management and general $12,247,552 · fundraising $0

• 17 · Travel

  total $1,348,448 · program services $920,822 · management and general $420,872 · fundraising $6,754

• 18 · Travel or entertainment for public officials

  total $0 · program services $0 · management and general $0 · fundraising $0

• 19 · Conferences, conventions and meetings

  total $0 · program services $0 · management and general $0 · fundraising $0

• 20 · Interest

  total $0 · program services $0 · management and general $0 · fundraising $0

• 21 · Payments to affiliates

  total $3,439,264 · program services $3,439,264 · management and general $0 · fundraising $0

• 22 · Depreciation, depletion and amortization

  total $55,339,609 · program services $30,988,064 · management and general $24,346,399 · fundraising $5,146

• 23 · Insurance

  total $10,485,199 · program services $24,614 · management and general $10,460,585 · fundraising $0

• 24a · Other expenses: MED/SURG SUPPLIES

  total $327,758,998 · program services $327,046,439 · management and general $705,379 · fundraising $7,180

• 24b · Other expenses: MANAGEMENT FEE

  total $95,909,014 · program services $77,510,798 · management and general $18,398,216 · fundraising $0

• 24c · Other expenses: PURCHASED SERVICES

  total $71,281,650 · program services $52,312,610 · management and general $18,696,188 · fundraising $272,852

• 24d · Other expenses: BAD DEBT (NON-PATIENT)

  total $461,402 · program services $28,709 · management and general $432,693 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $23,850 · end of year $19,202

• 2 · Savings and temporary cash investments

  beginning of year $60,227,931 · end of year $94,520,412

• 3 · Pledges and grants receivable

  beginning of year $1,103,930 · end of year $1,090,314

• 4 · Accounts receivable

  beginning of year $168,783,110 · end of year $184,503,508

• 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 $64,922,954 · end of year $67,783,954

• 8 · Inventories for sale or use

  beginning of year $25,209,208 · end of year $25,480,063

• 9 · Prepaid expenses and deferred charges

  beginning of year $9,680,449 · end of year $10,470,333

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

  $1,582,146,455

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

  $843,198,939

• 10c · Land, buildings and equipment, net

  beginning of year $694,205,105 · end of year $738,947,516

• 11 · Investments: publicly traded securities

  beginning of year $94,314,550 · end of year $29,935,082

• 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 $49,500,686 · end of year $29,465,394

• 17 · Accounts payable and accrued expenses

  beginning of year $125,157,682 · end of year $101,878,574

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $3,130,939 · end of year $1,706,651

• 20 · Tax-exempt bond liabilities

  beginning of year $221,191,763 · end of year $213,000,077

• 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 $179,602,766 · end of year $142,934,409

• 27 · Net assets without donor restrictions

  beginning of year $604,011,397 · end of year $685,845,071

• 28 · Net assets with donor restrictions

  beginning of year $34,877,226 · end of year $36,850,996

The filer's explanations (Part III)

SCHEDULE J, PART 1, LINE 1A

DETAIL OF ADDITIONAL BENEFITS PROVIDED TAX INDEMNIFICATION AND GROSS UP PAYMENTS LANCASTER GENERAL HOSPITAL PROVIDES GROSS-UP PAYMENTS TO EMPLOYEES WHEN THEY RECEIVE GIFT CARDS IN CERTAIN NOMINAL AMOUNTS AS TO PROVIDE TAX ASSISTANCE IN THAT NO TAX BURDENS ARE CREATED WITH THE INTENDED GIFT. ---------------------------

SCHEDULE J, PART 1, LINE 1B

WRITTEN POLICY REGARDING PAYMENT OR REIMBURSEMENT OF EXPENSES THERE ARE CURRENTLY NO WRITTEN POLICIES IN PLACE FOR GROSS UP PAYMENTS, TRAVEL FOR COMPANIONS OR HOUSING ALLOWANCE. ---------------------------

SCHEDULE J, PART 1, LINE 3

COMPENSATION LANCASTER GENERAL HEALTH'S EXECUTIVE COMPENSATION PROCESS INCLUDES THE FOLLOWING REVIEW AND ACTION BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES WHICH IS COMPRISED OF INDEPENDENT TRUSTEES. AN EVALUATION OF PERFORMANCE AGAINST GOALS IS CONDUCTED AT THE CLOSE OF A FISCAL YEAR TO DETERMINE THE LEVEL OF ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE OF THE CEO AND SENIOR EXECUTIVES AS TO DETERMINE MERIT AND INCENTIVE PAY ACTIONS. MARKET DATA FOR BASE SALARY, TOTAL CASH COMPENSATION AND TOTAL COMPENSATION IS PROVIDED BY AN INDEPENDENT THIRD PARTY TO THE COMMITTEE AND REFLECTS A MARKET BASKET OF SIMILARLY SIZED ORGANIZATIONS WITH COMPARABLE EXECUTIVE POSITIONS. UPON REVIEW AND DISCUSSION OF THE RELATED DATA AND INFORMATION THE COMMITTEE TAKES ACTION WHICH IS RECORDED IN THE MEETING MINUTES WHICH ARE THEN FILED FOR FUTURE REFERENCE. ---------------------------

SCHEDULE J, PART 1, LINE 4A

SEVERANCE AND CHANGE OF CONTROL PAYMENTS NO INDIVIDUALS RECEIVED SEVERANCE PAYMENTS DURING THE 2022 CALENDAR YEAR. ---------------------------

SCHEDULE J, PART I, LINE 4B

SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN THE FOLLOWING INDIVIDUALS LISTED ON FORM 990, PART VII, SECTION A, LINE 1A PARTICIPATED IN THE LANCASTER GENERAL HEALTH SERP PLAN DURING THE YEAR AND/OR RECEIVED EMPLOYER PAID AMOUNTS DURING THE YEAR: BRIAN R. BURGESS NO DISTRIBUTION MARGARET F. COSTELLA, ESQ. NO DISTRIBUTION GEOFFREY W. EDDOWES NO DISTRIBUTION NORMA J. FERDINAND $50,262 T. RAYMOND FOLEY, MD $164,257 ALEXANDRA O. JORGENSEN NO DISTRIBUTION ROBERT P. MACINA, ESQ. $124,729 TAMMY L. OBER NO DISTRIBUTION MICHAEL R. RIPCHINSKI, MD NO DISTRIBUTION LAWRENCE F. STRASSNER NO DISTRIBUTION JAMES A. STUCCIO NO DISTRIBUTION STACEY G. YOUCIS NO DISTRIBUTION THE UNIVERSITY OF PENNSYLVANIA HEALTH SYSTEM (THE "HEALTH SYSTEM") MAINTAINS TWO A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP" PLANS II AND III) DESIGNED FOR SENIOR ADMINISTRATORS OF THE HEALTH SYSTEM, AS DESIGNATED BY THE BOARD OF TRUSTEES, WHO ARE ACTIVELY EMPLOYED BY THE HEALTH SYSTEM WHEN THE CONTRIBUTIONS ARE MADE. VESTING IN THE SERP II OCCURS AFTER EACH THREE YEARS OF PARTICIPATION AND UPON THE OCCURRENCE OF CERTAIN EVENTS (ATTAINMENT OF AGE 65, DEATH, DISABILITY, OR INVOLUNTARY TERMINATION WITHOUT "CAUSE"). CONTRIBUTIONS FOR THOSE WHO HAVE REACHED AGE 65 WILL BE FULLY VESTED WHEN MADE. UPON REACHING A VESTING DATE, PARTICIPANTS WILL AUTOMATICALLY RECEIVE A FULL DISTRIBUTION WHICH IS TAXABLE AS EARNED INCOME. PARTICIPANTS WHO VOLUNTARILY TERMINATE BEFORE VESTING WILL FORFEIT THE BALANCE IN THEIR ACCOUNTS. VESTING IN SERP III OCCURS THREE YEARS AFTER EACH EMPLOYER CONTRIBUTION IS CREDITED TO THE PLAN. VESTING ALSO OCCURS UPON THE OCCURRENCE OF CERTAIN EVENTS WHILE STILL EMPLOYED (THE EARLIER OF REACHING 65 YEARS OF AGE, BECOMING TOTALLY AND PERMANENTLY DISABLED, OR DEATH). UPON REACHING A VESTING DATE, PARTICIPANTS WILL AUTOMATICALLY RECEIVE A FULL DISTRIBUTION WHICH IS TAXABLE AS EARNED INCOME. PARTICIPANTS WHO VOLUNTARILY TERMINATE BEFORE VESTING WILL FORFEIT THE BALANCE IN THEIR ACCOUNTS. THE FOLLOWING INDIVIDUALS LISTED ON FORM 990, PART VII, SECTION A, LINE 1A PARTICIPATED IN THE HEALTH SYSTEM SERP PLAN DURING THE YEAR AND/OR RECEIVED EMPLOYER PAID AMOUNTS DURING THE YEAR: MICHAEL BARBER NO DISTRIBUTION GARY R. DAVIDSON $73,037 JOHN J. HERMAN NO DISTRIBUTION KEITH KASPER $275,942 KEVIN MAHONEY $281,027 RICHARD D. PAOLETTI NO DISTRIBUTION CHARMAINE S. ROCHESTER NO DISTRIBUTION -----------------------

SCHEDULE J, PART 1, LINE 7

NON FIXED PAYMENTS THE PURPOSE OF THE LANCASTER GENERAL HEALTH (LG) ANNUAL INCENTIVE PLAN (THE PLAN) IS TO REINFORCE STRATEGIC PERFORMANCE PRIORITIES FOR SENIOR MANAGEMENT AND MANAGEMENT EMPLOYEES AND TO ENCOURAGE THE HIGHEST LEVEL OF PERFORMANCE IN THE DELIVERY OF HEALTHCARE SERVICES. AS A REWARD FOR EMPLOYEES' CONTRIBUTIONS TO LANCASTER GENERAL HEALTH'S SUCCESS, THE PLAN PROVIDES THE OPPORTUNITY TO EARN MEANINGFUL INCENTIVE COMPENSATION BASED ON THE PERFORMANCE OF LANCASTER GENERAL HEALTH AND THE INDIVIDUAL PARTICIPANTS. SPECIFICALLY, THE PLAN IS DESIGNED TO: *FOCUS PARTICIPANTS ON THE ACHIEVEMENT OF ORGANIZATION GOALS RELATED TO PEOPLE, SERVICE, QUALITY/SAFETY, FINANCIAL AND GROWTH; *PROMOTE AND FOSTER A TEAM ORIENTED CULTURE; *STRENGTHEN LANCASTER GENERAL HEALTH'S ABILITY TO ATTRACT AND RETAIN SUPERIOR TALENT, RECOGNIZE AND REWARD ACCOMPLISHMENTS THAT CLEARLY ADVANCE THE ORGANIZATION'S MISSION, AND DRIVE STRATEGIES; *PROVIDE INCENTIVE AWARDS THAT CAN BE ADJUSTED ANNUALLY FOR DIFFERENT BUSINESS CONDITIONS AND BUSINESS PLAN PRIORITIES WITHOUT CHANGING BASIC DESIGN FEATURES OF THE PLAN; AND *PROVIDE ANNUAL INCENTIVE OPPORTUNITIES WITH DUE CONSIDERATION TO THE REQUIREMENTS OF THE INTERMEDIATE SANCTIONS LAW AND THE REGULATIONS THERE UNDER. ---------------------------

Disregarded entities

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

• NOVASTREAM LLC

  TELECOMM · PA · income $4,622,919 · assets $5,783,172

  Directly controlled by LG HOSPITAL

Related partnerships

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

• PDCP 1740 FUND LP

  INVESTMENT · IL

  Directly controlled by NA

• DVG 1740 FUND LP

  INVESTMENT · CT

  Directly controlled by NA

• EAST MARSHALL STREET PARTNERSHIP LP

  INVESTMENT · PA

  Directly controlled by NA

• FERN HILL PARTNERSHIP III LP

  RENTAL · PA

  Directly controlled by NA

• FERN HILL LLC

  RENTAL · PA

  Directly controlled by NA

• GALLOPAVO LP

  INVESTMENT · TX

  Directly controlled by NA

• LANCASTER PET PARTNERSHIP LLP

  MEDICAL SERVI · PA

  Directly controlled by NA

• LG HEALTH COMMUNITY CARE COLLABORATIVE

  ACO · PA · 97% owned · share of income $186,274 · share of assets $7,324,950 · general or managing partner

  Directly controlled by LG HOSPITAL

• KINGSTOWN 1740 FUND LP

  INVESTMENT · NY

  Directly controlled by NA

• MRI GROUP LLP

  MEDICAL SERVICES · PA

  Directly controlled by NA

• NEIGHBRHD PRES & DEV FUND LP

  RENTAL · PA

  Directly controlled by NA

• OAKLANDS WAY MEDICAL BUILDING ASSOCIATES

  RENTAL · PA

  Directly controlled by NA

• SRP INVESTORS FUND A LP

  INVESTMENT · TX

  Directly controlled by NA

• JOG V C LIMITED PARTNERSHIP

  INVESTMENT · CA

  Directly controlled by NA

• TURK'S HEAD SURGERY CENTER LLC

  MEDICAL SERVICES · PA

  Directly controlled by NA

• CYRUS 1740 MASTER FUND

  INVESTMENT · CJ

  Directly controlled by NA

• JOG VI C LIMITED PARTNERSHIP

  INVESTMENT · CA

  Directly controlled by NA

• LG HEALTH COMM CARE COLLAB II

  RELATED · ACO · PA · 97% owned · share of income $0 · share of assets $0

  Directly controlled by LG HOSPITAL

• CYRUS 1740 FUND LP

  INVESTMENT · NY

  Directly controlled by NA

• ST-TO RIBBIT OPPORTUNITY V LLC

  INVESTMENT · CA

  Directly controlled by NA

• UNIVERSA BLACK SWAN PROTECTION PROTOCOL

  INVESTMENT · FL

  Directly controlled by NA

• AXIS UKA GP LLC

  INVESTMENT · PA

  Directly controlled by NA

• LIFT REAL ESTATE PARTNERS FUND II LP

  INVESTMENT · CA

  Directly controlled by NA

• BEXP II (PARALLEL) LP

  INVESTMENT · TX

  Directly controlled by NA

• FORERUNNER BUILDERS F-G LP

  INVESTMENT · CA

  Directly controlled by NA

• GCM CARRIAGE SPV LP

  INVESTMENT · NY

  Directly controlled by NA

• INITIALIZED CBH SPV LLC

  INVESTMENT · CA

  Directly controlled by NA

• SAILINGSTONE GLOBAL NATURAL RESOURCES FU

  INVESTMENT · TX

  Directly controlled by NA

Related corporations and trusts

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

• CLINICAL HEALTH CARE ASSOC OF NJ PC

  C-CORP · PHYS MGMT · PA

  Directly controlled by CCA

• DELANCEY CORPORATION

  C-CORP · RENTAL · PA

  Directly controlled by PA HOSPITAL

• FRANKLIN CASUALTY INSURANCE CO

  C-CORP · INSURANCE · VT

  Directly controlled by TRUSTEES

• LANCASTER GENERAL INSURANCE COMPANY

  C-CORP · INSURANCE · CJ

  Directly controlled by LG HEALTH

• LANCASTER GENERAL SERVICES INC

  C-CORP · PROPERTY SVCS · PA

  Directly controlled by LG HEALTH

• NAYA 1740 FUND LTD

  C-CORP · INVESTMENT · CJ

  Directly controlled by TRUSTEES

• UPENN HOSPITALITY INC

  C-CORP · HOTEL/RESTAURANT · PA

  Directly controlled by TRUSTEES

• PENN WHARTON CONSULTING (BEIJING) CO LTD

  C-CORP · BUS. CONSULTING · CH

  Directly controlled by UPENN INT'L

• QUAKER INSURANCE COMPANY LTD

  C-CORP · SELF-INSURANCE · BD

  Directly controlled by TRUSTEES

• THE PAM 1740 FUND LTD

  C-CORP · INVESTMENT · CJ

  Directly controlled by TRUSTEES

• TURK'S HEAD HEALTH SERVICES INC

  C-CORP · MEDICAL SERVI · PA

  Directly controlled by CCH&HS

• LANCASTER GENERAL 457 DEFERRED COMP PLAN

  TRUST · TRUST · PA

  Directly controlled by LG HEALTH

• ARCM 1740 FUND LTD

  C-CORP · INVESTMENT · CJ

  Directly controlled by TRUSTEES

• PRINCETON HEALTH INC & SUBS

  C-CORP · MEDICAL · NJ

  Directly controlled by PHCS HOLDING

• PHI PHARMACY INC

  C-CORP · INACTIVE · NJ

  Directly controlled by PHCS HOLDING

• CIRCLE MEDICAL ASSURANCE CO

  C-CORP · INSURANCE · PA

  Directly controlled by TRUSTEES

• PENN MEDICINE LONDON LIMITED

  LIMITED COMPANY · NETWORKING · UK

  Directly controlled by UPENN INT'L

• CYRUS 1740 FUND LTD

  LIMITED COMPANY · INVESTMENT · CJ

  Directly controlled by TRUSTEES