Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1e · Government grants (contributions)

  $754,979

• 1f · All other contributions, gifts and grants

  $11,050

• 2a · Program service revenue: Patient services

  total $184,229,136 · related or exempt $184,229,136

• 2b · Program service revenue: ACO management fees

  total $1,812,042 · related or exempt $1,812,042

• 2c · Program service revenue: Medical/laboratory

  total $1,427,155 · related or exempt $1,427,155

• 2d · Program service revenue: Administrative/affiliate services

  total $1,242,054 · related or exempt $1,242,054

• 2e · Program service revenue: Nutrition and cafeterias

  total $834,282 · related or exempt $834,282

• 3 · Investment income

  total $425,780 · excluded $425,780

• 7a · Gross sales of assets other than inventory

  securities $7,778,742 · other assets $123,975

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

  securities $7,589,790 · other assets $0

• 7c · Gain or loss

  securities $188,952 · other assets $123,975

• 7d · Net gain or loss

  total $312,927 · excluded $312,927

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $250 · program services $250

• 5 · Compensation of officers, directors and key employees

  total $1,774,154 · program services $1,575,492 · management and general $198,662

• 7 · Other salaries and wages

  total $77,329,001 · program services $68,675,244 · management and general $8,653,757

• 8 · Pension plan contributions

  total $1,038,599 · program services $921,477 · management and general $117,122

• 9 · Other employee benefits

  total $9,169,590 · program services $8,135,540 · management and general $1,034,050

• 10 · Payroll taxes

  total $5,155,589 · program services $4,578,636 · management and general $576,953

• 11a · Fees: management

  total $30,223,271 · management and general $30,223,271

• 11b · Fees: legal

  total $80,490 · management and general $80,490

• 11c · Fees: accounting

  total $244,411 · management and general $244,411

• 11d · Fees: lobbying

  total $8,459 · management and general $8,459

• 11f · Fees: investment management

  total $91,694 · management and general $91,694

• 11g · Fees: other

  total $25,149,863 · program services $16,510,538 · management and general $8,639,325

• 12 · Advertising and promotion

  total $109,348 · program services $71,785 · management and general $37,563

• 13 · Office expenses

  total $3,202,180 · program services $2,102,187 · management and general $1,099,993

• 14 · Information technology

  total $389,232 · program services $255,525 · management and general $133,707

• 16 · Occupancy

  total $2,805,013 · program services $1,841,452 · management and general $963,561

• 17 · Travel

  total $122,285 · program services $80,278 · management and general $42,007

• 19 · Conferences, conventions and meetings

  total $177,168 · program services $116,308 · management and general $60,860

• 20 · Interest

  total $602,868 · program services $602,868

• 22 · Depreciation, depletion and amortization

  total $2,471,051 · program services $2,471,051

• 23 · Insurance

  total $2,752,702 · program services $1,807,111 · management and general $945,591

• 24a · Other expenses: Drugs/medical supplies

  total $26,244,379 · program services $26,244,379

• 24b · Other expenses: Provision for bad debt

  total $7,461,671 · program services $7,461,671

• 24c · Other expenses: Service provider tax

  total $3,040,315 · program services $3,040,315

• 24d · Other expenses: Dietary and nutrition

  total $973,785 · program services $973,785

• 24e · All other expenses

  total $341,089 · management and general $341,089

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,828,748 · end of year $2,296,172

• 2 · Savings and temporary cash investments

  beginning of year $60,141 · end of year $65,285

• 3 · Pledges and grants receivable

  beginning of year $744,541 · end of year $717,815

• 4 · Accounts receivable

  beginning of year $16,369,838 · end of year $18,823,614

• 8 · Inventories for sale or use

  beginning of year $4,120,359 · end of year $3,257,694

• 9 · Prepaid expenses and deferred charges

  beginning of year $299,439 · end of year $561,799

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

  $97,005,992

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

  $67,799,973

• 10c · Land, buildings and equipment, net

  beginning of year $29,349,227 · end of year $29,206,019

• 11 · Investments: publicly traded securities

  beginning of year $2,992,913 · end of year $2,312,180

• 12 · Investments: other securities

  beginning of year $13,740,554 · end of year $2,725,576

• 15 · Other assets

  beginning of year $3,547,147 · end of year $6,235,862

• 17 · Accounts payable and accrued expenses

  beginning of year $12,844,480 · end of year $11,092,770

• 19 · Deferred revenue

  beginning of year $10,832,551 · end of year $570,741

• 25 · Other liabilities

  beginning of year $14,445,974 · end of year $32,280,510

• 27 · Net assets without donor restrictions

  beginning of year $31,789,391 · end of year $19,820,471

• 28 · Net assets with donor restrictions

  beginning of year $3,140,511 · end of year $2,437,524

The filer's explanations (Part III)

Part I, Line 3

Any compensation paid to the trustees, directors, officers or key employees of the Organization is subject to the oversight and decisions of Covenant Health, a related tax-exempt organization. Every two-to-three years the Compensation Committee of the Covenant Health Board of Directors engages an external consultant to provide competitive market data from various survey sources, which is then used to develop recommendations for changes to the compensation program. Since 2003, the Compensation Committee has engaged a human resources consultant to conduct this analysis. Objectives of the analysis are to assess the compositeness of the total cash compensation levels of the senior leadership team, develop market based competitive salary ranges for all executive positions, and ensure that the annual incentive opportunities, if there are any, are competitive and reasonable.

Part I, Line 7

A Compensation Committee recommends the variable pay award that may be issued to qualifying employees and officers. The payment of the award is discretionary and is subject to meeting the pre-determined goals of the Organization. For the year covered by this Form 990, Schedule J, Michael Hendrix, who served as an Officer of the Organization as its Treasurer and VP of Finance, received a retention bonus of $250,000. The bonus was contingent upon Mr. Hendrix's completion of a set term of service (five years) and the accomplishment of agreed upon performance metrics during that time. Accordingly, as the $250,000 was not guaranteed and would only be paid upon the satisfaction of these conditions, the Organization is reporting the payment of the retention bonus as a non-fixed payment subject to Form 990, Schedule J disclosure for transparency and compliance purposes.

Related corporations and trusts

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

• Campus Holding

  C · Holding company · ME

• Covenant Health Insurance LTD

  C · Self-insurance company · CJ

• GNM Corporation

  C · Real estate holding company · NH

• SJ Physicians Services

  C · Physician practice · NH

• St Joseph Corporate Services Inc

  C · Holding company · NH

• Strauss Incorporated

  C · Repairs and transcriptions · ME