Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $0

• 1b · Membership dues

  $0

• 1c · Fundraising events

  $0

• 1d · Related organizations

  $2,098

• 1e · Government grants (contributions)

  $0

• 1f · All other contributions, gifts and grants

  $0

• 1g · Noncash contributions included above

  $0

• 2a · Program service revenue: Net Patient Revenue

  total $180,607,796 · related or exempt $180,607,796 · unrelated business $0 · excluded $0

• 2b · Program service revenue: Clinical Trial Revenue

  total $172,054 · related or exempt $172,054 · unrelated business $0 · excluded $0

• 2c · Program service revenue: Management Admin Services

  total $1,908,392 · related or exempt $752,105 · unrelated business $1,156,287 · excluded $0

• 2d · Program service revenue: Medical Directorship

  total $2,049,837 · related or exempt $2,049,837 · unrelated business $0 · excluded $0

• 2e · Program service revenue: Med Svcs to Affiliates

  total $1,237,298 · related or exempt $1,237,298 · unrelated business $0 · excluded $0

• 2f · All other program service revenue

  total $1,488,589 · related or exempt -$208,274 · unrelated business $1,696,863 · excluded $0

• 3 · Investment income

  total $130,209 · related or exempt $0 · unrelated business $0 · excluded $130,209

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

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

• 5 · Royalties

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

• 6a · Gross rents

  real property $570,360 · personal property $0

• 6b · Less rental expenses

  real property $432,788 · personal property $0

• 6c · Rental income or loss

  real property $137,572 · personal property $0

• 6d · Net rental income or loss

  total $137,572 · excluded $137,572

• 7a · Gross sales of assets other than inventory

  securities $0 · other assets $89,949

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

  securities $0 · other assets $241,515

• 7c · Gain or loss

  securities $0 · other assets -$151,566

• 7d · Net gain or loss

  total -$151,566 · excluded -$151,566

• 8a · Fundraising events: gross income

  $0

• 8a · Fundraising events: contributions included on line 1c

  $0

• 8b · Fundraising events: direct expenses

  $0

• 9a · Gaming: gross income

  $0

• 9b · Gaming: direct expenses

  $0

• 10a · Gross sales of inventory

  $0

• 10b · Cost of goods sold

  $0

• 11a · Other revenue: Medical Records

  total $679 · related or exempt $679 · unrelated business $0 · excluded $0

• 11d · All other revenue

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

• 11e · Other revenue, total

  $679

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $0 · program services $0

• 2 · Grants to domestic individuals

  total $23,486 · program services $23,486

• 3 · Grants to foreign organizations and individuals

  total $0 · program services $0

• 4 · Benefits paid to or for members

  total $0 · program services $0

• 5 · Compensation of officers, directors and key employees

  total $797,961 · program services $0 · management and general $797,961 · fundraising $0

• 6 · Compensation of disqualified persons

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

• 7 · Other salaries and wages

  total $213,099,738 · program services $205,073,774 · management and general $8,025,964 · fundraising $0

• 8 · Pension plan contributions

  total $4,990,982 · program services $4,802,822 · management and general $188,160 · fundraising $0

• 9 · Other employee benefits

  total $19,464,223 · program services $18,729,536 · management and general $734,687 · fundraising $0

• 10 · Payroll taxes

  total $9,750,497 · program services $8,889,540 · management and general $860,957 · fundraising $0

• 11a · Fees: management

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

• 11b · Fees: legal

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

• 11c · Fees: accounting

  total $54,480 · program services $0 · management and general $54,480 · fundraising $0

• 11d · Fees: lobbying

  total $4,924 · program services $4,924 · management and general $0 · 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 $13,608,309 · program services $12,833,224 · management and general $775,085 · fundraising $0

• 12 · Advertising and promotion

  total $28,068 · program services $28,068 · management and general $0 · fundraising $0

• 13 · Office expenses

  total $1,236,244 · program services $1,055,931 · management and general $180,313 · fundraising $0

• 14 · Information technology

  total $14,847 · program services $11,010 · management and general $3,837 · fundraising $0

• 15 · Royalties

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

• 16 · Occupancy

  total $4,097,185 · program services $3,202,643 · management and general $894,542 · fundraising $0

• 17 · Travel

  total $113,867 · program services $85,646 · management and general $28,221 · fundraising $0

• 18 · Travel or entertainment for public officials

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

• 19 · Conferences, conventions and meetings

  total $928,430 · program services $925,624 · management and general $2,806 · fundraising $0

• 20 · Interest

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

• 21 · Payments to affiliates

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

• 22 · Depreciation, depletion and amortization

  total $5,536,752 · program services $5,115,356 · management and general $421,396 · fundraising $0

• 23 · Insurance

  total $3,585,234 · program services $3,021,910 · management and general $563,324 · fundraising $0

• 24a · Other expenses: Medical Supplies

  total $22,841,525 · program services $22,841,525 · management and general $0 · fundraising $0

• 24b · Other expenses: Management Fees

  total $21,319,873 · program services $0 · management and general $21,319,873 · fundraising $0

• 24c · Other expenses: Bad Debt Expense

  total $4,114,877 · program services $4,114,877 · management and general $0 · fundraising $0

• 24d · Other expenses: Physician Recruitment

  total $1,105,558 · program services $1,105,558 · management and general $0 · fundraising $0

• 24e · All other expenses

  total $655,608 · program services $535,758 · management and general $119,850 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $592 · end of year $0

• 2 · Savings and temporary cash investments

  beginning of year $3,967,083 · end of year $11,055,104

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $31,077,973 · end of year $27,796,444

• 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 $1,260,932 · end of year $979,305

• 8 · Inventories for sale or use

  beginning of year $0 · end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $925,173 · end of year $690,620

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

  $124,858,666

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

  $58,165,875

• 10c · Land, buildings and equipment, net

  beginning of year $65,376,378 · end of year $66,692,791

• 11 · Investments: publicly traded securities

  beginning of year $20,347 · end of year $20,836

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $12,649,960 · end of year $12,366,886

• 14 · Intangible assets

  beginning of year $282,676 · end of year $282,676

• 15 · Other assets

  beginning of year $2,140,668 · end of year $590,803

• 17 · Accounts payable and accrued expenses

  beginning of year $30,640,416 · end of year $30,591,318

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $0 · end of year $0

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 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 $42,809 · end of year $0

• 27 · Net assets without donor restrictions

  beginning of year $87,018,557 · end of year $89,884,147

• 28 · Net assets with donor restrictions

  beginning of year $0 · end of year $0

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $0 · end of year $0

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

BEACON MEDICAL GROUP, INC. OFFERS COMPLIMENTARY HEALTH CLUB MEMBERSHIP TO BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER, A RELATED PARTY. BEACON MEDICAL GROUP, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON MEDICAL GROUP, INC. ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: NONE HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ANITA KNUDSTON, THOMAS R. VIDIC AND SAMIR PATEL TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: NONE

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation

BEACON MEDICAL GROUP, INC. USES A RELATED ORGANIZATION'S (BEACON HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION.

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

BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2023, REFLECTED IN COLUMN (B)(III): * KREG GRUBER, $113,175 * JEFFREY COSTELLO, $96,631 * VINCENT HENDERSON, $75,168 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2023 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: * KREG GRUBER, $136,436 * JEFFREY COSTELLO, $82,406 * DALE PATTERSON, $57,499

Schedule J, Part I, Line 7 Non-fixed payments

THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT, AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGEMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC. AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE MANAGEMENT INCENTIVE IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. PHYSICIAN RELATIONS INCENTIVE PLAN PROVIDES FOR AN INCENTIVE PAYMENT TO EMPLOYEES IN A PHYSICIANS RELATIONS POSITION BASED UPON ATTAINMENT OF SATISFACTION SCORES PAID AS A PERCENTAGE OF BASE PAY UP TO 5%. HOSPITALISTS ARE ELIGIBLE FOR AN INCENTIVE PAYMENT BASED UPON ATTAINMENT OF QUALITY MEASURES AND TENURE. THE INCENTIVE IS A COMPONENT OF THE HOSPITALIST PHYSICIAN COMPENSATION PLAN. HOSPITALIST NURSE PRACTITIONER / PHYSICIAN ASSISTANTS ARE ELIGIBLE FOR AN INCENTIVE BASED UPON ATTAINMENT OF QUALITY MEASURES. THE INCENTIVE IS A COMPONENT OF A QUALITY BONUS PLAN.

Disregarded entities

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

• BEACON SPECIALTY SURGERY CENTER LLC

  MEDICAL · IN · income $0 · assets $0

  Directly controlled by BMG

Related corporations and trusts

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

• BEACON HEALTH VENTURES INC

  C Corporation · HOME MEDICAL · IN

  Directly controlled by BHS

• BEACON HEALTH VENTURES MICHIGAN INC

  C Corporation · HOME MEDICAL · MI

  Directly controlled by BHS