Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $26,346

• 1e · Government grants (contributions)

  $329,059

• 2a · Program service revenue: NET PATIENT REVENUE

  total $34,633,782 · related or exempt $34,633,782

• 3 · Investment income

  total $2,829 · excluded $2,829

• 6a · Gross rents

  real property $7,573

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $7,573

• 6d · Net rental income or loss

  total $7,573 · excluded $7,573

• 10a · Gross sales of inventory

  $3,517

• 10b · Cost of goods sold

  $2,500

• 10c · Net income from sales of inventory

  total $1,017 · excluded $1,017

• 11a · Other revenue: CAFETERIA MEALS

  total $76,270 · excluded $76,270

• 11b · Other revenue: MISCELLANEOUS REVENUE

  total $23,929 · excluded $23,929

• 11c · Other revenue: ADMINISTRATION

  total $4,945 · related or exempt $4,945

• 11e · Other revenue, total

  $105,144

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $9,555,852 · program services $9,293,226 · management and general $262,626

• 8 · Pension plan contributions

  total $626,175 · program services $626,175

• 9 · Other employee benefits

  total $2,416,523 · program services $2,416,523

• 11c · Fees: accounting

  total $19,635 · management and general $19,635

• 11g · Fees: other

  total $3,493,144 · program services $3,244,447 · management and general $248,697

• 12 · Advertising and promotion

  total $2,531 · program services $1,124 · management and general $1,407

• 13 · Office expenses

  total $302,014 · program services $302,014

• 14 · Information technology

  total $60,788 · program services $37,345 · management and general $23,443

• 16 · Occupancy

  total $1,094,161 · program services $1,094,105 · management and general $56

• 17 · Travel

  total $5,803 · program services $5,734 · management and general $69

• 19 · Conferences, conventions and meetings

  total $25,983 · program services $25,613 · management and general $370

• 20 · Interest

  total $743 · management and general $743

• 22 · Depreciation, depletion and amortization

  total $1,089,431 · program services $1,075,829 · management and general $13,602

• 23 · Insurance

  total $335,355 · program services $335,355

• 24a · Other expenses: CONTRACT LABOR

  total $5,789,141 · program services $5,429,762 · management and general $359,379

• 24b · Other expenses: CORPORATE SUPPORT

  total $5,784,663 · program services $5,784,663

• 24c · Other expenses: MEDICAL SUPPLIES

  total $2,627,730 · program services $2,627,730

• 24d · Other expenses: PHARMACEUTICALS

  total $1,306,366 · program services $1,306,366

• 24e · All other expenses

  total $2,120,288 · program services $2,044,212 · management and general $76,076

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $14,547,094 · end of year $35,991,363

• 3 · Pledges and grants receivable

  beginning of year $50,000 · end of year $138,799

• 4 · Accounts receivable

  beginning of year $4,600,679 · end of year $4,791,693

• 8 · Inventories for sale or use

  beginning of year $667,079 · end of year $1,288,513

• 9 · Prepaid expenses and deferred charges

  beginning of year $298,415 · end of year $345,347

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

  $12,133,928

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

  $5,721,288

• 10c · Land, buildings and equipment, net

  beginning of year $6,574,612 · end of year $6,412,640

• 15 · Other assets

  beginning of year $5,961,102 · end of year $441,210

• 17 · Accounts payable and accrued expenses

  beginning of year $1,877,402 · end of year $1,825,438

• 19 · Deferred revenue

  beginning of year $0 · end of year $43,424

• 25 · Other liabilities

  beginning of year $1,384,700 · end of year $18,271,404

• 27 · Net assets without donor restrictions

  beginning of year $29,436,879 · end of year $29,269,299

The filer's explanations (Part III)

PART I, LINE 1A

FRINGE OR EXPENSE EXPLANATION FIRST-CLASS OR CHARTER TRAVEL: FIRST-CLASS OR CHARTER TRAVEL IS NOT A COVERED TRAVEL EXPENSE FOR EXECUTIVES; THEY ARE LIMITED TO BUSINESS OR COACH CLASS FARES FOR COMMERCIAL FLIGHTS. HOWEVER, CHARTER TRAVEL IS AVAILABLE TO CERTAIN EXECUTIVES, BOARD MEMBERS, AND APPROVED BUSINESS PERSONNEL MEETING APPLICABLE POLICY CRITERIA. TRAVEL FOR COMPANIONS: COMPANIONS ARE ALLOWED ON CERTAIN CHARTER FLIGHTS PAID FOR BY THE ORGANIZATION. IN THAT CASE, THE VALUE OF THE COMPANION'S FLIGHT IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. DISCRETIONARY SPENDING ACCOUNT: CERTAIN EXECUTIVES RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THE DOLLAR AMOUNT IN THE ACCOUNT IS PRE-APPROVED BY THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD OF TRUSTEES. THE EXECUTIVE MAY DEFER THE AMOUNT TO A RETIREMENT ACCOUNT OR THE AMOUNT IS TREATED AS COMPENSATION AND IS SPREAD OUT OVER THE COURSE OF THE YEAR IN THE EXECUTIVE'S PAYCHECKS AS TAXABLE INCOME. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: WE PROVIDE TEMPORARY HOUSING ALLOWANCES IN CERTAIN EXECUTIVE RECRUITMENT AND RELOCATION PACKAGES. THE VALUE IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS.

PART I, LINE 3

PART I, LINE 3: THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM AND RELIES UPON NOVANT HEALTH, INC., THE PARENT ORGANIZATION, TO USE THE PROCESS DESCRIBED IN PART VI, LINE 15A/15B OF THIS RETURN TO ESTABLISH COMPENSATION FOR CERTAIN EXECUTIVES. THIS PROCESS ADHERES TO THE REQUIREMENTS SET FORTH TO SECURE THE REBUTTABLE PRESUMPTION OF REASONABLENESS AND INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT AND DISINTERESTED MEMBERS OF A COMPENSATION COMMITTEE, CONSULTATION WITH INDEPENDENT COMPENSATION CONSULTANTS, THE UTILIZATION OF THIRD-PARTY COMPARABILITY DATA SUCH AS PUBLISHED COMPENSATION SURVEYS, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION.

PART I, LINE 4B

PART I, LINES 4A-C: SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SEVERANCE NONE NONQUALIFIED GEOFFREY GARDNER $25,993 RUTH GLASER $8,846 EQUITY-BASED NONE

PART I, LINE 4B: SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS

THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") IS INTENDED TO SUPPORT RETENTION OF KEY EXECUTIVES, AND TO OFFER COMPETITIVE TOTAL COMPENSATION. GENERALLY, ANNUAL CONTRIBUTIONS TO THE PLAN OR PAYMENTS TO PARTICIPANTS WILL BE BASED ON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AS OF JANUARY 1ST OF THE PREVIOUS PLAN YEAR AND ARE REPORTED IN COLUMN (C) OF SCHEDULE J. PRIOR TO MAKING THE CONTRIBUTIONS OR PAYMENTS, THE NOVANT HEALTH COMPENSATION AND LEADERSHIP COMMITTEE ("COMMITTEE") WILL APPROVE THE AMOUNTS AS TO REASONABLENESS, WHEN COMBINED WITH ALL OTHER ANNUAL COMPENSATION. A 3 YEAR CLASS-YEAR VESTING PERIOD WILL APPLY UP TO AGE 62, WHEN ALL MONEY WOULD BE VESTED AND PAID OUT TO THE PARTICIPANT. OTHERWISE, VESTING WILL OCCUR ON JANUARY 1ST OF EACH YEAR FOR THE APPROPRIATE CLASS-YEAR VESTING PERIOD. THE COMMITTEE REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS, INCLUDING THE AMOUNTS AWARDED UNDER THIS SERP.

Related corporations and trusts

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

• ADEPT HEALTH INC

  C · ADMIN SERVICES · NC

• CHOICEHEALTH INC

  C · MANAGED CARE · NC

• COMMUNICARE INC

  C · RENTAL REAL ESTATE · NC

• KERNERSVILLE MEDICAL CENTER PARK OWNERS' ASSOCIATION

  C · REAL PROPERTY MGMT · NC

• MEDQUEST INC & SUBSIDIARIES

  C · DIAGNOSTIC IMAGING · DE

• SALEM DIAGNOSTICS INC

  C · INACTIVE · NC

• SALEM HEALTH SERVICES INC

  C · INACTIVE · NC

• THE PARK AT MONROE PROPERTY OWNERS ASSOCIATION INC

  C · REAL PROPERTY MGMT · NC

• NOVANT HEALTH AFFILIATE II INC

  C · INACTIVE · NC