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Nonprofiteer
← HEALTHTEXAS PROVIDER NETWORK

Form 990 for tax year 2022

Filed by HEALTHTEXAS PROVIDER NETWORK.

Totals

Total revenue
$1,207,037,900
Total expenses
$1,192,077,087
Contributions and grants received
$98,575,855
Grants paid
$2,430
Program service revenue
$1,108,083,724
Investment income
$376,725
Other revenue
$1,596
Total assets, end of year
$256,822,894
Total liabilities, end of year
$241,015,239
Net assets or fund balances, end of year
$15,807,655
Program services expenses (Part IX)
$1,084,739,428
Management and general expenses
$107,337,659
Fundraising expenses
$0
Program service expenses (Part III)
$1,084,739,428

Program services were 91.0% 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.

  • 1d · Related organizations

    $97,672,940

  • 1e · Government grants (contributions)

    $902,915

  • 1g · Noncash contributions included above

    $332,220

  • 2a · Program service revenue: Patient Care

    total $1,063,677,173 · related or exempt $1,063,153,119 · excluded $524,054

  • 2b · Program service revenue: Medical Director Fees

    total $15,652,101 · related or exempt $15,652,101

  • 2c · Program service revenue: Shared Savings

    total $15,449,520 · related or exempt $15,449,520

  • 2d · Program service revenue: Shared Services

    total $9,526,909 · related or exempt $9,526,909

  • 2e · Program service revenue: Noncompete Buyout

    total $2,575,000 · related or exempt $2,575,000

  • 2f · All other program service revenue

    total $1,203,021 · related or exempt $1,075,263 · unrelated business $124,717 · excluded $3,041

  • 3 · Investment income

    total $402,210 · excluded $402,210

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

    other assets $25,485

  • 7c · Gain or loss

    other assets -$25,485

  • 7d · Net gain or loss

    total -$25,485 · excluded -$25,485

  • 11a · Other revenue: Vending

    total $1,596 · excluded $1,596

  • 11e · Other revenue, total

    $1,596

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $2,430 · program services $2,430

  • 5 · Compensation of officers, directors and key employees

    total $12,225,216 · program services $9,031,845 · management and general $3,193,371

  • 6 · Compensation of disqualified persons

    total $395,127 · program services $395,127

  • 7 · Other salaries and wages

    total $752,757,308 · program services $723,865,493 · management and general $28,891,815

  • 8 · Pension plan contributions

    total $24,084,435 · program services $23,161,077 · management and general $923,358

  • 9 · Other employee benefits

    total $55,627,513 · program services $53,494,846 · management and general $2,132,667

  • 10 · Payroll taxes

    total $36,809,808 · program services $35,417,579 · management and general $1,392,229

  • 11a · Fees: management

    total $202 · program services $202

  • 11b · Fees: legal

    total $50,097 · management and general $50,097

  • 11d · Fees: lobbying

    total $158,227 · management and general $158,227

  • 11g · Fees: other

    total $111,026,238 · program services $43,964,154 · management and general $67,062,084

  • 12 · Advertising and promotion

    total $1,230,907 · program services $1,140,391 · management and general $90,516

  • 13 · Office expenses

    total $6,838,627 · program services $6,665,044 · management and general $173,583

  • 14 · Information technology

    total $39,225,364 · program services $38,907,541 · management and general $317,823

  • 16 · Occupancy

    total $55,593,041 · program services $54,280,026 · management and general $1,313,015

  • 17 · Travel

    total $1,626,223 · program services $1,546,223 · management and general $80,000

  • 19 · Conferences, conventions and meetings

    total $1,995,633 · program services $1,950,046 · management and general $45,587

  • 20 · Interest

    total $33,207 · program services $33,207

  • 22 · Depreciation, depletion and amortization

    total $16,849,235 · program services $16,335,976 · management and general $513,259

  • 23 · Insurance

    total $249,776 · management and general $249,776

  • 24a · Other expenses: Medical Supplies

    total $70,525,887 · program services $70,525,887

  • 24b · Other expenses: Non-Medical Supplies

    total $2,277,906 · program services $2,238,735 · management and general $39,171

  • 24c · Other expenses: Dues and Memberships

    total $895,085 · program services $867,962 · management and general $27,123

  • 24d · Other expenses: Recruiting

    total $704,418 · program services $101,668 · management and general $602,750

  • 24e · All other expenses

    total $895,177 · program services $813,969 · management and general $81,208

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $1,856 · end of year $1,800

  • 2 · Savings and temporary cash investments

    beginning of year $2,699,265 · end of year $14,341,602

  • 4 · Accounts receivable

    beginning of year $65,616,953 · end of year $77,660,500

  • 7 · Other notes and loans receivable

    beginning of year $0 · end of year $44,193

  • 9 · Prepaid expenses and deferred charges

    beginning of year $128,840 · end of year $136,840

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

    $210,803,132

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

    $149,745,959

  • 10c · Land, buildings and equipment, net

    beginning of year $51,828,626 · end of year $61,057,173

  • 11 · Investments: publicly traded securities

    beginning of year $7,508,726 · end of year $6,308,548

  • 14 · Intangible assets

    beginning of year $262,715 · end of year $19,900

  • 15 · Other assets

    beginning of year $90,730,645 · end of year $97,252,338

  • 17 · Accounts payable and accrued expenses

    beginning of year $87,262,428 · end of year $109,435,817

  • 19 · Deferred revenue

    beginning of year $6,468,748 · end of year $5,764,197

  • 23 · Secured mortgages and notes payable

    beginning of year $113,639,906 · end of year $117,178,130

  • 25 · Other liabilities

    beginning of year $5,214,971 · end of year $8,637,095

  • 27 · Net assets without donor restrictions

    beginning of year $5,341,447 · end of year $12,324,683

  • 28 · Net assets with donor restrictions

    beginning of year $850,126 · end of year $3,482,972

Mission and programs · 2022

Mission

To deliver the highest value patient experience through quality, safety, accessibility, and cost-effectiveness, enhanced by medical education and research in collaboration with Baylor Scott & White Health.

  • See Schedule OBaylor Scott & White HeathTexas Provider Network (HTPN) is the employed physician group of Baylor Scott & White Health in North Texas. Since 1994, our network of primary care and specialty physicians along with our advanced practice professionals (APPs) share a commitment to excellencemaking it easy for patients to schedule, receive and coordinate care where and when they need. HTPN is affiliated with BSWH, a faith-based nationally acclaimed network of acute care hospitals and related health care entities providing quality patient care, medical education, medical research and other community services to the residents of North and Central Texas. As the largest not-for-profit health care system in Texas, and one of the largest in the United States, BSWH was born from the 2013 combination of Baylor Health Care System and Scott & White Healthcare. Today, BSWH has over 1,250 patient access points including 51 hospitals, 612 specialty care clinics, 261 outpatient clinics, 160 primary care clinics, 30 pharmacies, 31 ambulatory surgery centers, and more than 7,100 active physicians. The system also includes a state certified health maintenance organization, the Scott and White Health Plan and the Baylor Scott & White Quality Alliance accountable care organization both covering over 1,200,000 lives. During the year, HTPN employed nearly 1,360 physicians and more than 517 APP's providing primary and specialty health care services at more than 415 locations throughout the community. HTPN is comprised of 77 primary care sites including nine urgent care, 200 specialty care centers, 124+ specialty satellite care sites including 7 liver disease outreach centers, one kidney outreach center, 9 hospitalists programs, a family practice residency program and a multi-specialty residency program. In addition to providing access to primary care, HTPN has more than 60 specialty services to meet the health care needs of the community that include bariatric surgery, cardiovascular care, cardio-oncology, critical care, dermatology, endocrinology, gastroenterology, general surgery, geriatrics, gynecology, headache, hepatology, neurology, neuro-oncology, neurosurgery, obstetrics, oncology, otolaryngology, orthopedics, orthopedic trauma, pulmonology, psychology, psychiatry, rheumatology, thoracic surgery, transplant services, urogynecology, urology, reconstructive urology and vascular surgery. HTPN had more than 3.9 million patient encounters during the year and provided health care to more than 310,000 new patients. HTPN is committed to offering access to quality health care including providing free or discounted health care to the indigent, the underserved population and persons covered by government sponsored indigent health care and other government sponsored programs. During the fiscal year HTPN provided free or discounted care with an estimated reimbursed cost of more than $21.7 million to indigent patients qualifying under the financial assistance policy. Also, as part of its mission and charitable purpose, HTPN develops, implements and operates innovative strategies and programs that create access to health services, provides equitable care and improves health outcomes for the indigent and the medically underserved population. These activities include wellness programs, community education programs, special programs for the elderly, handicapped and medically underserved and a variety of broad community support activities. Several of these programs are outlined below. The Volunteers-in-Medicine program is HTPN's community service campaign. Since 1998, the Volunteers-in-Medicine program has provided HTPN physicians and staff with opportunities to take part in meaningful volunteerism both locally and abroad. Through a number of innovative programs, HTPN physicians and staff donate time, services, and money to improve the health status of the medically underserved. In FY23, VIM supported the BSW Community Care Clinics by providing $3,500 to procure essential test strips so that their patients can have the necessary supplies to better monitor their diabetes. Additionally, VIM contributed $15,000 to Predisan Health Ministries and $3,500 to Helps International, facilitating the delivery of vital international medical relief to remote communities in Honduras and Guatemala. A resident physician was awarded a $1,500 international medical mission trip to Niger, providing them with a unique opportunity to contribute to healthcare in an underserved region. The experience proved to be profoundly impactful, broadening their medical expertise, cultural understanding, and leaving a lasting positive impact on the local community. VIM continued to provide virtual education sessions to facilitate knowledge exchange and collaboration between American and Central American providers, with hopes to improve the healthcare practices and outcomes in the local region. This past year physicians and chaplains provided 15 virtual sessions covering a variety of topics around cardiology, obstetrics/gynecology, behavioral health, and ministry. Since 2001, HTPN has operated a group of charitable clinics known as the Baylor Community Care network. Baylor Community Care clinics are designed to provide primary care access to uninsured and underserved populations served by Baylor Scott & White Health, many following discharge from Baylor Scott & White hospitals. The Baylor Community Care strategy aims to reduce avoidable hospital utilization and costs by providing patients with comprehensive primary care services, chronic disease education, and community-based care coordination. During the fiscal year, the Baylor Community Care consisted of seven primary care sites providing a medical home for approximately 14,442 patients with a total of 53,594 patient visits. Baylor Community Care network continues to provide innovative services to our uninsured and underinsured population that include, Behavioral Health, Medication Management, Chronic Disease Management, and Specialty Care access.Another unique component of the Baylor Community Care network is the home visit program, a program designed to provide home-based primary care and social support services to underserved patients with complex medical and social needs. Utilizing a multidisciplinary team of physicians, nurse practitioners, social workers, and community health workers, the home visit program is able to assist home-bound patients and their families following discharge from Baylor Scott & White hospitals or on a referral basis from a physician.

    Expenses $1,084,739,428 · Grants $2,430 · Revenue $1,108,083,724

As filed on the 2022 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • Kevin Theleman MD

    Director

    Total calculated
    $1,414,554
    From this org
    $1,369,478
    From related orgs
    $0
    Other
    $45,076
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,346,575
    Bonus
    $0
    Other
    $22,903
    Deferred
    $15,250
    Nontaxable benefits
    $29,826
    Filer's total
    $1,414,554

  • Giuliano Testa MD

    Director

    Total calculated
    $1,272,958
    From this org
    $1,227,417
    From related orgs
    $0
    Other
    $45,541
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,018,528
    Bonus
    $200,000
    Other
    $8,889
    Deferred
    $15,250
    Nontaxable benefits
    $30,291
    Filer's total
    $1,272,958

  • Christian Royer MD

    Director

    Total calculated
    $825,418
    From this org
    $775,738
    From related orgs
    $0
    Other
    $49,680
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $753,500
    Bonus
    $0
    Other
    $22,238
    Deferred
    $15,250
    Nontaxable benefits
    $34,430
    Filer's total
    $825,418

  • James Fleshman MD

    Director/Secretary

    Total calculated
    $735,769
    From this org
    $686,750
    From related orgs
    $0
    Other
    $49,019
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $660,012
    Bonus
    $0
    Other
    $26,738
    Deferred
    $15,250
    Nontaxable benefits
    $33,769
    Filer's total
    $735,769

  • Carl Ciborowski MD

    Director

    Total calculated
    $582,564
    From this org
    $550,310
    From related orgs
    $0
    Other
    $32,254
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $501,684
    Bonus
    $47,500
    Other
    $1,126
    Deferred
    $0
    Nontaxable benefits
    $32,254
    Filer's total
    $582,564

  • Craig Kneten MD

    Director/Chair

    Total calculated
    $537,430
    From this org
    $491,757
    From related orgs
    $0
    Other
    $45,673
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $470,118
    Bonus
    $0
    Other
    $21,639
    Deferred
    $15,250
    Nontaxable benefits
    $30,423
    Filer's total
    $537,430

  • Khang Tran MD

    Director

    Total calculated
    $499,713
    From this org
    $459,802
    From related orgs
    $0
    Other
    $39,911
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $458,924
    Bonus
    $0
    Other
    $878
    Deferred
    $15,250
    Nontaxable benefits
    $24,661
    Filer's total
    $499,713

  • Valerie Gorman MD

    Director

    Total calculated
    $490,840
    From this org
    $445,408
    From related orgs
    $0
    Other
    $45,432
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $444,866
    Bonus
    $0
    Other
    $542
    Deferred
    $15,250
    Nontaxable benefits
    $30,182
    Filer's total
    $490,840

  • Tammi Williams MD

    Director

    Total calculated
    $460,043
    From this org
    $413,713
    From related orgs
    $0
    Other
    $46,330
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $392,482
    Bonus
    $0
    Other
    $21,231
    Deferred
    $15,250
    Nontaxable benefits
    $31,080
    Filer's total
    $460,043

  • Catherine Raver MD

    Director

    Total calculated
    $442,756
    From this org
    $400,683
    From related orgs
    $0
    Other
    $42,073
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $379,375
    Bonus
    $0
    Other
    $21,308
    Deferred
    $15,250
    Nontaxable benefits
    $26,823
    Filer's total
    $442,756

  • Jeffrey Zsohar MD

    Director

    Total calculated
    $282,545
    From this org
    $239,873
    From related orgs
    $0
    Other
    $42,672
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $230,331
    Bonus
    $0
    Other
    $9,542
    Deferred
    $12,704
    Nontaxable benefits
    $29,968
    Filer's total
    $282,545

  • Loree Lieving MD

    Director/Vice Chair

    Total calculated
    $222,307
    From this org
    $211,798
    From related orgs
    $0
    Other
    $10,509
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $211,452
    Bonus
    $0
    Other
    $346
    Deferred
    $9,747
    Nontaxable benefits
    $762
    Filer's total
    $222,307

  • Sarah Gahm

    President/SVP Clinic Ops

    Total calculated
    $1,475,595
    From this org
    $1,198,106
    From related orgs
    $0
    Other
    $277,489
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $567,549
    Bonus
    $587,773
    Other
    $42,784
    Deferred
    $264,304
    Nontaxable benefits
    $13,185
    Filer's total
    $1,475,595

  • Pam Peiffer

    VP CFO (thru 9/2/2022)

    Total calculated
    $334,887
    From this org
    $308,577
    From related orgs
    $0
    Other
    $26,310
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $213,616
    Bonus
    $93,445
    Other
    $1,516
    Deferred
    $11,082
    Nontaxable benefits
    $15,228
    Filer's total
    $334,887

  • Maximilliano Pascuali

    VP CFO (eff 12/5/2022)

    Total calculated
    $9,754
    From this org
    $8,795
    From related orgs
    $0
    Other
    $959
    Hours/week
    40

  • Brent Walker MD

    VP CMO - HTPN

    Total calculated
    $580,881
    From this org
    $545,348
    From related orgs
    $0
    Other
    $35,533
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $413,593
    Bonus
    $129,815
    Other
    $1,940
    Deferred
    $15,250
    Nontaxable benefits
    $20,283
    Filer's total
    $580,881

  • Doug Smith

    VP COO

    Total calculated
    $509,657
    From this org
    $471,153
    From related orgs
    $0
    Other
    $38,504
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $339,724
    Bonus
    $109,874
    Other
    $21,555
    Deferred
    $15,250
    Nontaxable benefits
    $23,254
    Filer's total
    $509,657

  • Khalid Yousuf MD

    Physician

    Total calculated
    $2,349,147
    From this org
    $2,303,032
    From related orgs
    $0
    Other
    $46,115
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $2,276,852
    Bonus
    $25,000
    Other
    $1,180
    Deferred
    $15,250
    Nontaxable benefits
    $30,865
    Filer's total
    $2,349,147

  • Nathan Gilbert MD

    Physician

    Total calculated
    $1,962,813
    From this org
    $1,917,685
    From related orgs
    $0
    Other
    $45,128
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,895,475
    Bonus
    $0
    Other
    $22,210
    Deferred
    $15,250
    Nontaxable benefits
    $29,878
    Filer's total
    $1,962,813

  • Allaaddin Mollabashy MD

    Physician

    Total calculated
    $1,837,948
    From this org
    $1,793,411
    From related orgs
    $0
    Other
    $44,537
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,770,289
    Bonus
    $0
    Other
    $23,122
    Deferred
    $15,250
    Nontaxable benefits
    $29,287
    Filer's total
    $1,837,948

  • Michael Carley MD

    Physician

    Total calculated
    $1,789,568
    From this org
    $1,742,230
    From related orgs
    $0
    Other
    $47,338
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,719,089
    Bonus
    $0
    Other
    $23,141
    Deferred
    $15,250
    Nontaxable benefits
    $32,088
    Filer's total
    $1,789,568

  • Michael Isaac MD

    Physician

    Total calculated
    $1,632,078
    From this org
    $1,611,033
    From related orgs
    $0
    Other
    $21,045
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,606,675
    Bonus
    $0
    Other
    $4,358
    Deferred
    $15,250
    Nontaxable benefits
    $5,795
    Filer's total
    $1,632,078

  • Richard Naftalis MD

    Former Officer

    Total calculated
    $1,399,078
    From this org
    $1,357,206
    From related orgs
    $0
    Other
    $41,872
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,248,667
    Bonus
    $0
    Other
    $108,539
    Deferred
    $15,250
    Nontaxable benefits
    $26,622
    Filer's total
    $1,399,078

  • F David Winter MD

    Former Officer

    Total calculated
    $942,312
    From this org
    $904,484
    From related orgs
    $0
    Other
    $37,828
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $817,947
    Bonus
    $0
    Other
    $86,537
    Deferred
    $15,250
    Nontaxable benefits
    $22,578
    Filer's total
    $942,312

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 · Tax indemnification and gross-up payments
  • 1a · Discretionary spending account
  • 1a · Housing allowance or residence for personal use
  • 1a · Health or social club dues or initiation fees
  • 1b · Written policy on the line-1a expenses
  • 2 · Substantiation required before reimbursing expenses
  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan
  • 5a · Pay contingent on this organization's revenues
  • 7 · Other non-fixed payments

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 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
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

Part I, Line 1a
Tax indemnification and gross-up payments-The organization provides tax indemnification where the BSW Holdings' CEO, COO or CFO determines there is justification to reimburse an individual for the tax impact on certain taxable, non-cash benefits provided to them. All tax indemnification payments provided are treated as taxable compensation. Four of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year. Discretionary spending account-The organization provides eligible employees certain monthly expense allowances in lieu of reimbursement for actual expenses under the organization's business travel and expense reimbursement policy. This may include providing an auto expense allowance for business mileage for those who travel frequently in their personal vehicle or a cell phone allowance for individuals who are required to use their mobile phone for business purposes. All expense allowances are treated as taxable compensation. Two of the persons listed in the Form 990, Part VII, Section A, received these benefits during the tax year. Housing allowance or residence for personal use-The organization provides temporary housing to eligible employees under the organization's moving and relocation reimbursement policy. All temporary housing provided to any employee is treated as taxable compensation. One person listed in the Form 990, Part VII, Section A, received this benefit during the tax year. Health or social club dues or initiation fees-The organization may reimburse eligible employees for dues for a health club and/or a social club where there is a bona fide business need for the membership. For example, as part of the organization's promotion of health, the organization will cover a portion of any employees' fitness center club membership dues paid to an affiliated entity that owns and operates a fitness center. All employees are eligible for this benefit. Such reimbursements are treated as taxable compensation to the extent any part of the membership is used for personal use. Four of the persons listed in the Form 990, Part VII, Section A, received this benefit during the tax year.
Part I, Line 3
Process for determining compensation: The organization, a controlled affiliate of Baylor Scott & White Holdings, recognizes that those chosen to lead the organization are vital to its ongoing success and growth. Thus, it must attract, retain and engage the highest quality officers and key employees to lead the organization and help the organization maintain its national reputation for achieving high targets for medical quality, patient safety, and patient satisfaction. A significant portion of the organization's officers and key employees' total compensation is based on significant performance achievements. This strategy places a greater emphasis on the importance of the organization achieving targeted improvements in the areas of people, quality, patient satisfaction and financial stewardship, annually. Total executive compensation is part of an integrated talent management strategy developed by the Baylor Scott & White Holdings Board of Trustees and its Compensation Committee to attract, motivate, and retain the best leadership resources for the organization. Executive compensation is determined pursuant to guidelines outlined in the intermediate sanction rules under IRC Section 4958 including taking steps to meet the rebuttable presumption standard of reasonableness under Treasury Regulation 53.4958-6, as summarized below. When making compensation decisions, the organization compares itself to similarly-sized, and structured businesses including other integrated health care service systems and other similarly-sized organizations, both locally and nationally. Each year the Baylor Scott & White Holdings Board of Trustees and the Compensation Committee, on behalf of the organization through reserved powers explicitly held by Baylor Scott & White Holdings, works directly with an independent compensation consultant(s) to identify reasonable and competitive market rates as well as provide an annual review of the total compensation of the organization's top management officials and other officers and key employees to ensure total compensation is within a fair market range. The annual review included reviewing certain officers and key employees listed on the Form 990 during the current tax year. The Compensation Committee is made up of members of the Baylor Scott & White Holdings Board of Trustees, who are independent, community volunteers. Guided by the information provided by the independent compensation consultant(s), the Compensation Committee approves the annual process and methodology for setting fair market salary ranges, earned incentives, and/or benefit offerings for the organization's President, other officers and/or key employees to be comparable to similar organizations for similar services and/or positions. Furthermore, the Compensation Committee is charged with the responsibility of reviewing annually the major elements of the executive compensation program to assure designs remain consistent with the business needs, market practices, and compensation philosophy. As part of the decision-making process, the Compensation Committee will often meet in executive session to discuss and review recommendations made by the independent compensation consultant(s). No officer or key employee whose compensation is being reviewed is present during these discussions. All decisions are properly documented in the minutes of the meetings.
Part I, Line 4b
In order to recruit and retain key talent, BSW Holdings and certain tax exempt affiliates (BSWH) offers a supplemental non-qualified retirement plan to eligible employees. The plan provides an annual benefit (based on a percentage of compensation) to the employee that is paid to the employee on a future date upon vesting in the plan. The following individual(s) participated in and/or received payments (noted in parenthesis) from BSWH's supplemental non-qualified retirement plan during the tax year: F. David Winter, M.D. ($79,199), Richard Naftalis, M.D. ($30,006) and Sarah Gahm.
Part I, Line 5
The organization employs physicians practicing medicine in both office-based (e.g., primary care) and hospital-based (e.g., hospitalists, intensivists, inner-city trauma surgery and other surgical specialties) practice settings. As such, the organization is a key component in fulfilling the overall charitable mission of its sole corporate member, Baylor Health Care System ("BHCS") and BHCS' sole corporate member Baylor Scott & White Health ("BSWH"), an integrated health care delivery system. No physician employed by the organization is paid compensation contingent upon the organization's overall revenues or net earnings. However, the organization does compensate physicians based, in whole or in part, on a personal productivity formula specific to the physician's practice site to which physicians compensated under such models have been assigned and approved by BSWH based on location and/or specialty. Such models are designed to encourage physicians within a practice site to work productively, efficiently and cost effectively, while also encouraging high quality patient care. Certain of the physicians listed in Form 990, Part VII, Section A, line 1a were compensated under such formula, which renders a percentage of their compensation contingent upon practice site revenues and certain expenses. Under these models, each practice site includes revenues collected for services provided at the practice site less deductions for practice site direct overhead and certain additional charges imposed by the organization to cover indirect overhead cost. A portion of a physician's compensation may also be paid on the basis of a fixed hourly or annual amount for non-clinical services. The total compensation of such physicians is evaluated based on independent, third-party data to verify consistency with fair market value.
Part I, Line 7
The organization has adopted and implemented BSW Holdings', the organization's ultimate parent, Annual Incentive Program to provide a market competitive total cash compensation incentive program that is designed to attract and retain key leaders and establish greater individual accountability and alignment to business performance. Payout targets are based upon a percentage of base pay and are developed by independent third party expert(s) using comparable market competitive data within the bounds of reasonableness and that are reviewed and approved by BSW Holdings' governing body. Payout levels are based upon a combination of system, entity, and individual performance using various metrics related to quality, patient satisfaction, employee retention, and financial stewardship. BSW Holdings' governing body may approve modifications to annual incentive awards provided under the program consistent with market comparability data.
Form 990, Schedule J, Part III
Supplemental Information: Governing Body Compensation The members of the governing body serve in a limited role in their capacity as a board member and may receive small amounts of compensation from the organization for these duties as a member of the governing body. However, the members do receive a majority of their compensation from the organization in their capacity as employed physicians.

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

No itemized grants to organizations on this return.

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.

Related partnerships

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

Related corporations and trusts

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

Provenance

Return type
form_990
Tax year
2022
Filed
10 May 2024
IRS schema version
2022v5.0
Source object
202401349349300840

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