Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $416,417

• 1e · Government grants (contributions)

  $8,269,904

• 1g · Noncash contributions included above

  $416,417

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $722,463,257 · related or exempt $722,306,646 · unrelated business $156,611

• 2b · Program service revenue: JOINT VENTURES

  total $12,407,071 · related or exempt $12,407,071

• 2c · Program service revenue: EDUCATIONAL REVENUE

  total $838,692 · related or exempt $838,692

• 3 · Investment income

  total $8,278,605 · excluded $8,278,605

• 6a · Gross rents

  real property $1,088,656

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $1,088,656

• 6d · Net rental income or loss

  total $1,088,656 · excluded $1,088,656

• 7a · Gross sales of assets other than inventory

  securities $57,523,351

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

  securities $22,197,612

• 7c · Gain or loss

  securities $35,325,739

• 7d · Net gain or loss

  total $35,325,739 · excluded $35,325,739

• 11a · Other revenue: CAFETERIA SALES

  total $2,715,181 · unrelated business $6,764 · excluded $2,708,417

• 11b · Other revenue: SALES PPE

  total $238,675 · excluded $238,675

• 11c · Other revenue: MEDICAL RECORDS

  total $232,809 · excluded $232,809

• 11d · All other revenue

  total $1,019,493 · excluded $1,019,493

• 11e · Other revenue, total

  $4,206,158

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $7,091,803 · management and general $7,091,803

• 7 · Other salaries and wages

  total $380,935,701 · program services $354,198,749 · management and general $26,736,952

• 8 · Pension plan contributions

  total $11,150,981 · program services $10,178,824 · management and general $972,157

• 9 · Other employee benefits

  total $36,815,935 · program services $36,801,646 · management and general $14,289

• 10 · Payroll taxes

  total $21,152,347 · program services $18,899,257 · management and general $2,253,090

• 11b · Fees: legal

  total $2,056,455 · management and general $2,056,455

• 11c · Fees: accounting

  total $171,000 · management and general $171,000

• 11d · Fees: lobbying

  total $32,334 · management and general $32,334

• 11g · Fees: other

  total $57,985,637 · program services $35,685,095 · management and general $22,300,542

• 12 · Advertising and promotion

  total $1,770,115 · program services $1,770,115

• 13 · Office expenses

  total $9,433,524 · program services $9,433,524

• 14 · Information technology

  total $16,421,094 · program services $16,421,094

• 16 · Occupancy

  total $12,725,452 · program services $12,345,864 · management and general $379,588

• 17 · Travel

  total $247,343 · program services $97,474 · management and general $149,869

• 19 · Conferences, conventions and meetings

  total $114,670 · program services $80,132 · management and general $34,538

• 20 · Interest

  total $3,165,550 · program services $3,165,550

• 22 · Depreciation, depletion and amortization

  total $30,901,194 · program services $29,618,778 · management and general $1,282,416

• 23 · Insurance

  total $9,352,044 · program services $319,001 · management and general $9,033,043

• 24a · Other expenses: MEDICAL SUPPLIES

  total $142,442,867 · program services $142,016,527 · management and general $426,340

• 24b · Other expenses: BAD DEBT EXPENSE

  total $21,626,103 · program services $21,626,103

• 24c · Other expenses: DUES AND SUBSCRIPTIONS

  total $2,584,769 · program services $637,381 · management and general $1,947,388

• 24d · Other expenses: COLLECTION FEES

  total $2,283,050 · program services $2,283,050

• 24e · All other expenses

  total $6,991,617 · program services $3,926,495 · management and general $3,065,122

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $14,189,584 · end of year $18,680,720

• 2 · Savings and temporary cash investments

  beginning of year $21,486,470 · end of year $25,863,097

• 4 · Accounts receivable

  beginning of year $68,029,017 · end of year $69,242,877

• 8 · Inventories for sale or use

  beginning of year $15,855,897 · end of year $16,618,491

• 9 · Prepaid expenses and deferred charges

  beginning of year $30,212,636 · end of year $35,458,607

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

  $701,498,730

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

  $494,321,496

• 10c · Land, buildings and equipment, net

  beginning of year $214,981,138 · end of year $207,177,234

• 11 · Investments: publicly traded securities

  beginning of year $305,526,411 · end of year $279,874,946

• 12 · Investments: other securities

  beginning of year $76,491,087 · end of year $70,455,008

• 15 · Other assets

  beginning of year $59,963,311 · end of year $87,901,339

• 17 · Accounts payable and accrued expenses

  beginning of year $116,621,997 · end of year $103,930,553

• 20 · Tax-exempt bond liabilities

  beginning of year $73,020,233 · end of year $65,878,838

• 23 · Secured mortgages and notes payable

  beginning of year $43,374,798 · end of year $42,516,103

• 25 · Other liabilities

  beginning of year $90,655,582 · end of year $96,392,107

• 27 · Net assets without donor restrictions

  beginning of year $483,062,941 · end of year $502,554,718

The filer's explanations (Part III)

PART I, LINE 1A

OFFICERS OF COVENANT MEDICAL CENTER GET HEALTH AND SOCIAL CLUB DUES PAID AND ARE INCLUDED AS TAXABLE INCOME.

PART I, LINE 4B

THE ORGANIZATION MAINTAINS A NONQUALIFIED SUPPLEMENTAL EXECUTIVE PLAN (SERP) FOR CERTAIN OF ITS EXECUTIVES. THE SERP HAS BEEN ESTABLISHED FOR THESE EXECUTIVES BY THE ORGANIZATION, FOLLOWING APPROPRIATE BOARD LEVEL REVIEW IN A MANNER INTENDED TO COMPLY WITH THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROVISION UNDER IRC SECTION 4958. SOME OF THE INDIVIDUALS LISTED IN PART VII RECEIVED A TAXABLE SERP PAYMENT IN FY23. ALL PAYMENTS WERE INCLUDED AS TAXABLE INCOME.

PART I, LINE 7

THE BONUSES PAID TO ANY OFFICER LISTED IN SCHEDULE J PART II CAN BE DETERMINED BASED ON WHETHER FOUR ORGANIZATION SUCCESS SHARING TARGETS ARE MET; PATIENT SATISFACTION SCORES, QUALITY METRICS, EMPLOYEE ENGAGEMENT SCORES AND FINANCIAL PERFORMACE BASED ON A CUSTOM OPERATING MARGIN.

Disregarded entities

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

• COVENANT MEDICAL OFFICE II LLC

  INACTIVE · MI · income $0 · assets $0

• COVENANT MACKINAW OFFICE LLC

  INACTIVE · MI · income $0 · assets $0

• J&F HOLDINGS

  INACTIVE · MI · income $0 · assets $0

Related partnerships

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

• MACKINAW SURGERY CENTER

  RELATED · RENTAL · MI · 50.38% owned · share of income $5,552 · share of assets $2,757,203 · general or managing partner

  Directly controlled by COVENANT MEDICAL CENTER

Related corporations and trusts

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

• COVENANT DEVELOPMENT CORPORATION

  C · HEALTH SERVICES · MI · controlled entity

• COVENANT MEDICAL CENTER OFFICE CONDO ASSOCIATION

  C · CONDOMINIUM · MI · 98.5% owned · share of income -$83,680 · share of assets $470,160 · controlled entity

  Directly controlled by COVENANT MEDICAL CENTER

• COVENANT HEALTHCARE MACKINAW FACILITY CONDO ASSOCIATION

  C · CONDOMINIUM · MI · 81% owned · share of income $7,050 · share of assets $1,539,509 · controlled entity

  Directly controlled by COVENANT MEDICAL CENTER

• COVENANT SERVICES CORP

  C · HEALTHCARE · MI · controlled entity