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Nonprofiteer
← BEACON HEALTH SYSTEM INC

Form 990 for tax year 2022

Filed by BEACON HEALTH SYSTEM INC.

Totals

Total revenue
$176,132,084
Total expenses
$160,622,038
Contributions and grants received
$1,439,524
Grants paid
$742,316
Program services expenses (Part IX)
$159,797,418
Management and general expenses
$824,620
Fundraising expenses
$0
Program service expenses (Part III)
$159,797,418

Program services were 99.5% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Listed in Part VII

  • Jesse Hsieh MD

    Chair

    Total calculated
    $1,150
    From this org
    $1,150
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • John Martin

    Vice Chair

    Total calculated
    $1,533
    From this org
    $1,533
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Julia Willis

    Secretary

    Total calculated
    $1,099
    From this org
    $1,099
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Thomas Burish PhD

    Chair

    Total calculated
    $150
    From this org
    $150
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Tom Cassady Jr

    Treasurer

    Total calculated
    $1,823
    From this org
    $1,823
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Amish Shah

    Director

    Total calculated
    $1,098
    From this org
    $1,098
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Bipin N Doshi

    Director thru 3/31/2022

    Total calculated
    $1,110
    From this org
    $1,110
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Daniel Morrison

    Director thru 3/31/2022

    Total calculated
    $744
    From this org
    $744
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Gene Grove MD

    Director

    Total calculated
    $750
    From this org
    $750
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • James F Keenan JD

    Director

    Total calculated
    $1,102
    From this org
    $1,102
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Karen Barnett

    Director

    Total calculated
    $550
    From this org
    $550
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • Lars Kneller MD

    Director

    Total calculated
    $150
    From this org
    $150
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Matthew Pletcher

    Director

    Total calculated
    $150
    From this org
    $150
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Peter Baranay

    Director

    Total calculated
    $150
    From this org
    $150
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Samir Patel MD

    Director

    Total calculated
    $1,110
    From this org
    $1,110
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • Tim Shelly

    Director

    Total calculated
    $1,817
    From this org
    $1,817
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • Walter Halloran MD

    Director through 3/31/2022

    Total calculated
    $1,124,519
    From this org
    $0
    From related orgs
    $1,091,323
    Other
    $33,196
    Hours/week
    2 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $1,050,842 related
    Bonus
    $0 + $32,860 related
    Other
    $0 + $7,620 related
    Deferred
    $0 + $12,200 related
    Nontaxable benefits
    $0 + $20,996 related
    Filer's total
    $0 + $1,124,519 related

  • Jeffrey P Costello

    CFO

    Total calculated
    $1,005,289
    From this org
    $878,794
    From related orgs
    $0
    Other
    $126,495
    Hours/week
    40 + 12 related

    Schedule J breakdown matched by us

    Base
    $602,522
    Bonus
    $122,536
    Other
    $153,736
    Deferred
    $110,781
    Nontaxable benefits
    $15,714
    Filer's total
    $1,005,289

  • Kreg R Gruber

    CEO

    Total calculated
    $1,764,630
    From this org
    $1,543,364
    From related orgs
    $0
    Other
    $221,266
    Hours/week
    40 + 12 related

    Schedule J breakdown matched by us

    Base
    $994,922
    Bonus
    $261,341
    Other
    $287,101
    Deferred
    $194,557
    Nontaxable benefits
    $26,709
    Filer's total
    $1,764,631

  • Diane M Maas

    Chief Bus Dev & Plan Officer

    Total calculated
    $679,415
    From this org
    $576,731
    From related orgs
    $0
    Other
    $102,684
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $431,085
    Bonus
    $90,300
    Other
    $55,347
    Deferred
    $82,171
    Nontaxable benefits
    $20,514
    Filer's total
    $679,416

  • Haysam M Eldalati MD

    Chief Clinical Officer

    Total calculated
    $908,827
    From this org
    $797,757
    From related orgs
    $0
    Other
    $111,070
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $569,515
    Bonus
    $116,966
    Other
    $111,276
    Deferred
    $102,960
    Nontaxable benefits
    $8,109
    Filer's total
    $908,826

  • Mark A Warlick

    Chief Information Officer

    Total calculated
    $623,004
    From this org
    $528,584
    From related orgs
    $0
    Other
    $94,420
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $385,632
    Bonus
    $80,794
    Other
    $62,157
    Deferred
    $74,906
    Nontaxable benefits
    $19,514
    Filer's total
    $623,004

  • Scott M Eshowsky

    Medical Information Officer

    Total calculated
    $495,148
    From this org
    $456,437
    From related orgs
    $0
    Other
    $38,711
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $405,545
    Bonus
    $39,150
    Other
    $11,742
    Deferred
    $12,200
    Nontaxable benefits
    $26,511
    Filer's total
    $495,148

  • Steven M Eller

    Chief Human Resource Officer

    Total calculated
    $599,234
    From this org
    $515,204
    From related orgs
    $0
    Other
    $84,030
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $360,457
    Bonus
    $74,927
    Other
    $79,820
    Deferred
    $72,079
    Nontaxable benefits
    $11,952
    Filer's total
    $599,235

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 — 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 · Travel for companions
  • 1a · Tax indemnification and gross-up payments
  • 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 · Written employment contract
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan
  • 7 · Other non-fixed payments

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 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)

Schedule J, Part I, Line 1a Health or social club dues or initiation fees
COMPLIMENTARY HEALTH CLUB MEMBERSHIP WITH BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER IS OFFERRED TO DIRECTORS. BEACON HEALTH SYSTEM, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON HEALTH SYSTEM 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: JOHN MARTIN, GENE GROVE, TIM SHELLY, AND KREG GRUBER. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: SAMIR PATEL, AMISH SHAH, JAMES KEENAN, JOHN MARTIN, JULIA WILLIS, TOM CASSADY, JR., KAREN BARNETT, TIM SHELLY, DANIEL MORRISON AND BIPIN DOSHI. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: John Martin, Gene Grove, and Tim Shelly
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 INDIVIDUAL RECEIVED VESTED PAYMENTS IN 2022, REFLECTED IN COLUMN (B)(III): KREG GRUBER, $146,136.03 JEFFREY COSTELLO, $116,447.61 STEVEN ELLER, $55,638.56 DIANE MAAS, $43,886.55 HAYSAM ELDALATI, $96,155.56 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2022 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: KREG GRUBER, $182,357.07 JEFFREY COSTELLO, $98,581.22 STEVEN ELLER, $59,878.50 MARK WARLICK, $62,706.22 DIANE MAAS, $69,970.57
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 MEASUREMEN FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON MANAGMENT 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.

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.

Provenance

Return type
form_990
Tax year
2022
Filed
10 November 2023
IRS schema version
2022v5.0
Source object
202333149349303538

Check it against the return as filed: the GivingTuesday Data Lake hosts a public copy of the original XML.

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