Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $32,871

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $33,435,721 · related or exempt $33,435,721

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 6a · Gross rents

  real property $58,014

• 6c · Rental income or loss

  real property $58,014 · personal property $0

• 6d · Net rental income or loss

  total $58,014 · excluded $58,014

• 7c · Gain or loss

  securities $0 · other assets $0

• 11a · Other revenue: MISCELLANEOUS

  total $6,299 · excluded $6,299

• 11b · Other revenue: CAFETERIA

  total $102,596 · excluded $102,596

• 11c · Other revenue: MEALS ON WHEELS

  total $11,580 · excluded $11,580

• 11d · All other revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $120,475

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $11,617,979 · program services $8,386,565 · management and general $3,231,414

• 8 · Pension plan contributions

  total $352,625 · program services $268,340 · management and general $84,285

• 9 · Other employee benefits

  total $1,166,105 · program services $888,093 · management and general $278,012

• 10 · Payroll taxes

  total $978,197 · program services $744,516 · management and general $233,681

• 11c · Fees: accounting

  total $5,000 · management and general $5,000

• 11d · Fees: lobbying

  total $7,941 · management and general $7,941

• 11g · Fees: other

  total $4,567,869 · program services $4,276,523 · management and general $291,346 · fundraising $0

• 12 · Advertising and promotion

  total $14,131 · management and general $14,131

• 13 · Office expenses

  total $46,976 · program services $36,187 · management and general $10,789

• 14 · Information technology

  total $362,962 · program services $12,989 · management and general $349,973

• 16 · Occupancy

  total $318,561 · program services $2,047 · management and general $316,514

• 17 · Travel

  total $62,949 · program services $36,110 · management and general $26,839

• 19 · Conferences, conventions and meetings

  total $8,272 · program services $6,121 · management and general $2,151

• 20 · Interest

  total $263,741 · program services $210,719 · management and general $53,022

• 22 · Depreciation, depletion and amortization

  total $1,608,852 · program services $1,285,409 · management and general $323,443

• 23 · Insurance

  total $855,394 · program services $720,368 · management and general $135,026

• 24a · Other expenses: BAD DEBTS

  total $3,019,134 · program services $3,019,134

• 24b · Other expenses: DRUGS & MEDICAL SUPPLIE

  total $2,859,073 · program services $2,680,100 · management and general $178,973

• 24c · Other expenses: TAXES AND ASSESSMENTS

  total $1,007,981 · program services $943,483 · management and general $64,498

• 24d · Other expenses: MAINTENANCE AND REPAIRS

  total $224,720 · program services $161,768 · management and general $62,952

• 24e · All other expenses

  total $372,562 · program services $214,238 · management and general $158,324 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $25,370,784 · end of year $4,867,253

• 4 · Accounts receivable

  beginning of year $2,721,776 · end of year $1,515,044

• 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

• 8 · Inventories for sale or use

  beginning of year $1,090,959 · end of year $1,037,921

• 9 · Prepaid expenses and deferred charges

  beginning of year $38,008 · end of year $37,428

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

  $43,952,100

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

  $36,511,805

• 10c · Land, buildings and equipment, net

  beginning of year $8,528,693 · end of year $7,440,295

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $0

• 15 · Other assets

  beginning of year $73,828 · end of year $20,591,690

• 17 · Accounts payable and accrued expenses

  beginning of year $2,449,978 · end of year $1,873,223

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $13,575,875 · end of year $7,892,156

• 27 · Net assets without donor restrictions

  beginning of year $21,798,195 · end of year $25,724,252

The filer's explanations (Part III)

Schedule J, Part I, Line 4a Severance or change-of-control payment

James Davis received 26 weeks severance pay $119,025 in 2022.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

INCENTIVE PLAN DISTRIBUTION: JAVON R. BEA - $4,953,609 Todd Anderson participated in the 457(f) plan during Calendar year 2022. However, he did not receive a payout during calendar year 2022.

Schedule J, Part I, Line 3

THE CEO IS PAID FROM A RELATED ORGANIZATION, MERCY HEALTH SYSTEM CORPORATION (MHSC). MHSC USES THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE CEO: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATION, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY OR STUDY AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. THE MERCY COMPENSATION COMMITTEE OF MHSC IS COMPRISED OF THE BOARD CHAIRPERSON, VICE CHAIR, AND SECRETARY/TREASURER. THE COMPENSATION COMMITTEE IS ASSISTED BY INDEPENDENT LEGAL COUNSEL AND AN INDEPENDENT COMPENSATION CONSULTANT. THE COMPENSATION COMMITTEE, LEGAL COUNSEL, AND THE COMPENSATION CONSULTANT MEET THROUGHOUT THE YEAR AND REPORT DIRECTLY TO THE BOARD OF DIRECTORS ANNUALLY. THIS PROCESS WAS COMPLETED FOR 2022.

Schedule J, Part II PART II, LINE 1

JJAVON R. BEA - DEFERRED COMPENSATION PAYMENT MR. BEA HAS BEEN EMPLOYED BY MHSC AS PRESIDENT AND CEO OVER THE PAST 30 YEARS. DURING THIS TIME, MR. BEA HAS LED AN INCREDIBLE TRANSFORMATION TAKING A SMALL, SINGLE, STAND-ALONE COMMUNITY HOSPITAL AND CREATING A VERTICALLY INTEGRATED HEALTH SYSTEM WITH 85 FACILITIES IN 50 COMMUNITIES THROUGHOUT SOUTHERN WISCONSIN AND NORTHERN ILLINOIS, INCREASING GROSS REVENUE FROM $33 MILLION TO OVER $3.6 BILLION IN FY2023. THIS HAS ALLOWED THE HEALTH SYSTEM TO GO FROM SERVING 89,000 PATIENTS IN 1989 TO OVER 1.8 MILLION PATIENTS TODAY WORKING TOGETHER WITH OVER 7,500+ PARTNERS IN HEALTH CARE. TODAY, MHSC HAS BECOME THE LARGEST EMPLOYER IN SOUTHERN WISCONSIN AND NORTHERN ILLINOIS. THIS GROWTH CAN BE ATTRIBUTED TO MR. BEA'S VISIONARY LEADERSHIP. LEADERSHIP THAT HAS LED TO MHSC RECEIVING NUMEROUS NATIONAL RECOGNIZED AWARDS INCLUDING BEING NAMED THE FIRST FULLY INTEGRATED HEALTH SYSTEM TO RECEIVE THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD, THE MAGNET RECOGNITION AWARD, BEING RANKED #1 AND #2 ON AARP'S TOP 100 BEST PLACES TO WORK FOR WORKERS OVER 50 AND BEING RANKED IN THE TOP 25 ON THE TOP 100 INTEGRATED HEALTHCARE NETWORKS LIST BY MODERN HEALTHCARE FOR OVER 12 STRAIGHT YEARS. THE TURNAROUND OF THE MHSC IMPLEMENTED BY MR. BEA IS UNPARALLELED. BY PIONEERING A "PARTNERSHIP MODEL" OF COMPENSATION AND DESIGNING A CUSTOM CULTURE OF EXCELLENCE, MR. BEA IS VITAL TO THE DECADES-LONG AND CONTINUING GROWTH AT MHSC. THIS SUCCESS HAS MADE MR. BEA A HIGHLY SOUGHT AFTER SPEAKER AND CONSULTANT AS HE IS NOW WELL-RENOWNED FOR HIS INNOVATIONS IN THE AREAS OF INTEGRATED HEALTHCARE AND PHYSICIAN PARTNERSHIP MODELS. THE TREMENDOUS SUCCESS OF MHSC UNDER THE LEADERSHIP OF MR. BEA HAS ALLOWED HIM TO RECEIVE PAYOUTS FROM A DEFERRED COMPENSATION PACKAGE WHICH MHSC HAS BEEN PAYING INTO OVER MANY YEARS. THESE PAYMENTS ONLY BECAME PAYABLE IF MHSC ATTAINED CERTAIN DEFINED FINANCIAL AND STRATEGIC GOALS AND THE AMOUNTS ARE AT RISK EVERY SINGLE YEAR. AS INDICATED ABOVE, MANY OF THESE GOALS WERE ACHIEVED WITHIN THE PAST FEW YEARS RESULTING IN A RELEASE OF THESE DEFERRED PAYMENTS WHICH IMPACTED MR. BEA'S COMPENSATION REPORTING. THE SETTING OF THESE GOALS WERE LAID OUT BY THE BOARD OF DIRECTORS IN COOPERATION WITH NATIONALLY RECOGNIZED COMPENSATION ATTORNEYS AND CONSULTANTS TO MAKE SURE ALL FACTORS WERE TAKEN INTO CONSIDERATION. MR. BEA'S COMPENSATION HAS ALSO BEEN SCRUTINIZED BY NUMEROUS OUTSIDE ORGANIZATIONS AND MOST IMPORTANTLY, THE INTERNAL REVENUE SERVICE; AND HAS PASSED INSPECTION IN EACH CASE. TOTAL COMPENSATION IS APPROVED ANNUALLY BY THE BOARD OF DIRECTORS OF MHSC.

Related corporations and trusts

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

• JANESVILLE MEDICAL CENTER INC

  C Corporation · MANAGEMENT OF UNION EMPLOYEES · WI

  Directly controlled by NA

• MERCYCARE INSURANCE COMPANY

  C Corporation · INSURANCE · WI

  Directly controlled by NA

• MERCYCARE HMO INC - CONSOLIDATED WITH MERCYCARE INSURANCE CO

  C Corporation · INSURANCE · WI

  Directly controlled by NA

• ROCKFORD HEALTH INSURANCE LTD

  C Corporation · INSURANCE · BD

  Directly controlled by NA