Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $352,291

• 2a · Program service revenue: Net Patient Revenue

  total $1,500,378,035 · related or exempt $1,500,378,035

• 2b · Program service revenue: Cafeteria Revenue

  total $3,664,670 · related or exempt $3,664,670

• 2c · Program service revenue: Pharmacy Revenue

  total $3,641,381 · related or exempt $1,450,063 · unrelated business $2,191,318

• 2d · Program service revenue: Medical Office Building Rentals

  total $3,278,518 · related or exempt $2,993,997 · unrelated business $284,521

• 2e · Program service revenue: Ins Bus Interrupt - Fires

  total $1,575,003 · related or exempt $1,575,003

• 2f · All other program service revenue

  total $1,653,025 · related or exempt $1,653,025

• 3 · Investment income

  total $6,949,028 · excluded $6,949,028

• 6a · Gross rents

  real property $119,928

• 6b · Less rental expenses

  real property $19,575

• 6c · Rental income or loss

  real property $100,353

• 6d · Net rental income or loss

  total $100,353 · related or exempt $100,353

• 7a · Gross sales of assets other than inventory

  other assets $7,749,723

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

  securities $2,851,442 · other assets $694,502

• 7c · Gain or loss

  securities -$2,851,442 · other assets $7,055,221

• 7d · Net gain or loss

  total $4,203,779 · excluded $4,203,779

• 11a · Other revenue: Equity Earnings Subsidiaries

  total $10,241,100 · related or exempt $10,241,100

• 11e · Other revenue, total

  $10,241,100

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $2,386,590 · program services $2,386,590

• 5 · Compensation of officers, directors and key employees

  total $5,227,004 · management and general $5,227,004

• 7 · Other salaries and wages

  total $462,575,622 · program services $428,871,693 · management and general $33,703,929

• 8 · Pension plan contributions

  total $16,201,326 · program services $14,873,157 · management and general $1,328,169

• 9 · Other employee benefits

  total $56,320,519 · program services $51,224,167 · management and general $5,096,352

• 10 · Payroll taxes

  total $31,604,277 · program services $29,013,390 · management and general $2,590,887

• 11b · Fees: legal

  total $175,810 · management and general $175,810

• 11c · Fees: accounting

  total $452,111 · management and general $452,111

• 11f · Fees: investment management

  total $825,764 · management and general $825,764

• 11g · Fees: other

  total $347,307,805 · program services $183,893,004 · management and general $163,414,801

• 12 · Advertising and promotion

  total $3,151,870 · management and general $3,151,870

• 13 · Office expenses

  total $23,314,091 · program services $18,473,234 · management and general $4,840,857

• 14 · Information technology

  total $6,988,494 · program services $6,496,504 · management and general $491,990

• 16 · Occupancy

  total $32,973,711 · program services $32,973,711

• 17 · Travel

  total $652,106 · program services $456,734 · management and general $195,372

• 19 · Conferences, conventions and meetings

  total $1,146,474 · management and general $1,146,474

• 20 · Interest

  total $8,804,129 · program services $8,804,129

• 22 · Depreciation, depletion and amortization

  total $89,618,574 · program services $89,618,574

• 23 · Insurance

  total $9,692,049 · program services $9,426,016 · management and general $266,033

• 24a · Other expenses: Medical Supplies

  total $252,424,132 · program services $252,424,132

• 24b · Other expenses: State Assessment

  total $85,625,872 · program services $85,625,872

• 24c · Other expenses: Repairs and Maintenance

  total $24,599,884 · program services $24,599,884

• 24d · Other expenses: True Up w/related tax-e

  total $3,037,113 · management and general $3,037,113

• 24e · All other expenses

  total $3,441,824 · program services $2,160,977 · management and general $1,280,847

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $306,130 · end of year $1,003,815

• 2 · Savings and temporary cash investments

  beginning of year $22,477,017 · end of year $124,258,532

• 4 · Accounts receivable

  beginning of year $236,517,398 · end of year $239,805,770

• 7 · Other notes and loans receivable

  beginning of year $4,001,223 · end of year $3,766,019

• 8 · Inventories for sale or use

  beginning of year $39,200,742 · end of year $38,911,389

• 9 · Prepaid expenses and deferred charges

  beginning of year $19,089,282 · end of year $17,645,096

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

  $1,637,969,756

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

  $932,276,073

• 10c · Land, buildings and equipment, net

  beginning of year $697,119,769 · end of year $705,693,683

• 12 · Investments: other securities

  beginning of year $507,537,309 · end of year $448,880,136

• 14 · Intangible assets

  beginning of year $66,309,429 · end of year $58,030,231

• 15 · Other assets

  beginning of year $344,851,620 · end of year $354,864,660

• 17 · Accounts payable and accrued expenses

  beginning of year $88,786,792 · end of year $101,057,961

• 19 · Deferred revenue

  beginning of year $1,470,293 · end of year $916,807

• 25 · Other liabilities

  beginning of year $412,774,470 · end of year $397,747,963

• 27 · Net assets without donor restrictions

  beginning of year $1,434,274,508 · end of year $1,493,032,744

• 28 · Net assets with donor restrictions

  beginning of year $103,856 · end of year $103,856

The filer's explanations (Part III)

Part I, Line 1a

As discussed in Part VI, Section B, Line 15, the filing organization's top management officials are compensated by Centura Health Corporation (CHC). All officers and key employees are compensated by CHC, who manages the daily activities of Portercare Adventist Health System under a joint operating agreement dated December 8, 1995 between Adventist Health System Sunbelt Healthcare Corp. and Common Spirit Health. As such, their salaries are paid to them by CHC, a related organization, for services rendered in their capacity as key employees or officers of PAHS. All of their reportable compensation is disclosed on Form 990, Schedule J, Part II, row (ii) and Form 990, Part VII, column (e) as compensation from related organizations. Travel for companions: CHC provides reimbursement for spousal travel when certain of its executives attend conferences sponsored by Adventist Health System Sunbelt Healthcare Corporation (AHSSHC). AHSSHC is the tax-exempt top-tier parent of Portercare Adventist Health Systesm (PAHS). All spousal travel costs reimbursed to the executive are considered taxable compensation to the executive. Tax Indemnification and gross-up payments: CHC has a system-wide policy addressing gross-up payments provided in connection with employer-provided benefits/other taxable items. Under the policy, certain taxable business-related reimbursements (i.e. taxable business-related moving expenses) provided to any employee may be grossed-up upon approval by the filing organization's CEO and CFO. Discretionary spending account: A cash discretionary spending account was provided in the current year to eligible executives in the form of a car allowance of $750 per month to help offset business travel expense. Other discretionary spending accounts may be provided in connection with attendance at conferences but typically do not exceed $300 per participant. Taxable travel and other spending accounts are considered taxable compensation to the executive. Housing allowance or residence for personal use: CHC has a Corporate Executive Policy that addresses assistance to executives who have been relocated by the company during the year. Relocation assistance is administered per CHC policy by an external relocation company. Any taxable reimbursements made to executives in connection with relocation assistance are treated as wages to the executive and are subject to all payroll withholding and reporting requirements.

Part I, Lines 4a-b

Line 4a: During 2022, Lars Houmann received severance payments in the amount of $661,887 from Adventist Health System Sunbelt Healthcare Corporation (AHSSHC) the top-tier 501(c)(3) parent of the filing organization. Pursuant to the AHSSHC Corporate Executive Policy governing executive severance, severance agreements for executives operating at the Vice President level and above are entered into upon eligibility to facilitate the transition to subsequent employment following an involuntary separation from employment with AdventHealth. During 2022, Morre Dean and Michelle Beckner received severance payments in the amount of $588,393 and $53,078 respectively from CHC. Pursuant to the CHC Corporate Executive Policy governing executive severance, severance agreements for executives operating at the Vice President level and above are entered into upon eligibility to facilitate the transition to subsequent employment following an involuntary separation from employment with CHC. Line 4b: As discussed in Line 1 above, the organization's top management officials' compensation is paid by Centura Health Corporation (CHC). All officers and key employees are compensated by CHC, who manages the daily activities of Portercare Adventist Health System (PAHS). As such, their salaries and all associated benefits are paid to them by CHC for services rendered in their capacity as key employees or officers of PAHS. All of their reportable compensation is disclosed on Form 990, Schedule J, Part II, row (ii) and Form 990, Part VII, column (e) as compensation from related organizations. Senior executives on the filing organization's management team that hold the position of Senior Vice-President or Hospital CEO are eligible to participate in the CHC EXECU-FLEX Benefit Plan (the Plan). In recognition of the contribution that each executive makes to the success of CHC, CHC provides for participation in the Plan to the eligible executives. The purpose of the Plan is to offer an opportunity to elect from among a variety of supplemental benefits to individually tailor a benefits program appropriate to each executive's needs. The executive is provided with a Flex allowance equivalent to 10% of base salary to purchase selected benefits and to contribute into a deferred non-qualified supplemental executive retirement plan. The Plan provides for a five-year cliff-vesting schedule with respect to amounts accumulated in the executive's deferred compensation account. CHC contributes into these deferred compensation accounts semi-annually and amounts are subject to a substantial risk of forfeiture with active participation required at time of vesting. In addition, CHC provides a Pension Restoration Benefit (PRB) to restore qualified plan contributions lost on income in excess of the current federal maximum allowable compensation to a qualified plan. The PRB provides contributions by restoring the amount that would have been contributed to the executive's retirement savings plan for compensation in excess of the legislative limits. Benefit amounts are added to the participant's flex allowance each year based on their total compensation from the prior year. The following received contributions to a non-qualified plan for the calendar year 2022: CY Employer CY Employer CY SERP CY PRB SERP Contr. PRB Contr. Distrib. Distrib. Peter Banko 387,101 344,401 104,983 47,166 Daniel Enderson 128,713 98,213 108,037 75,076 Andrew Gaasch 102,699 72,199 0 0 Michael Goebel 61,884 31,384 0 0 Todd Folkenberg 60,204 29,704 80,618 26,873 Rick Dodds 42,700 0 0 0 Isaac Sendros 49,412 18,912 0 0 Jeremy Pittman 46,632 12,132 0 0

Schedule J, Line 4b:

Additionally, in calendar year 2022 Board members of the filing organization, L. Houmann, P. Rathbun, and K. Bacon were compensated by and on the payroll of Adventist Health System Sunbelt Healthcare Corporation (AHSSSHC), the parent organization of a healthcare system known as AdventHealth. Current employees Ken Finch and Danae Still as well as Former Key Employees S. Huenergardt, J. Fisher, J. McKinney, and B. Spenst, were also compensated by Adventist Health System Sunbelt Healthcare Corporation (AHSSHC) for a portion or for all of calendar year 2022. AdventHealth is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. In recognition of the contribution that each executive makes to the success of AdventHealth, AdventHealth provides supplemental executive retirement benefit plans to eligible executives. As the supplemental executive retirement benefit plans were updated in 2020 and certain individuals still participate as grand-fathered participants in certain plans, the narrative below discusses all plans in which there were any participants in 2022. The SERP III plan effectively replaces the prior SERP II plan, the Executive Flex Benefit Program Plan, and the Senior Executive Death Benefit Plan for qualified executives except for certain grandfathered executive employees. SERP III Plan: The SERP III plan provides eligible executives a percentage of their base pay, which is credited to a deferred compensation account. The plan also provides for compensation deferral and selection of life insurance coverage and long-term care insurance. To be eligible to participate in the SERP III plan, executives must be on the AHSSHC corporate payroll and be either a CEO of an AdventHealth entity, an AHSSHC Vice President (VP) or VP of an AdventHealth entity with a base salary of at least $305,000 in 2022 (adjusted annually by the same percentage as IRC Section 401(a)(17) limit increases), or other leader specifically approved by the AdventHealth President. Eligible executives do not include grandfathered executives, meaning those executives who would satisfy all the eligibility requirements of the SERP II plan prior to Dec 31, 2027, had the plan not been amended and restated as of Jan. 1, 2020. Contribution credits will be established and maintained by class year accounts for each participant using tiered contribution credit percentages of annual base compensation. Contribution credit percentages range between 15% and 19% of base compensation. Contribution credits will be made each quarter in 25% increments with reductions in contributions if the executive is also a grandfathered FLEX participant (see below). SERP III provides for a class year vesting and payment schedule (7 years for each class year) with respect to amounts accumulated in the executive's deferred compensation account. Upon attainment of a normal retirement age (age 62), or upon certain other circumstances as defined in the SERP III plan document, all deferred amounts are paid immediately to the participant. For any executives working beyond the normal retirement age, future employer contributions will be made quarterly from SERP III directly to the participant as a taxable cash bonus. SERP II Plan: The SERP II plan is a defined benefit, non-tax-qualified deferred compensation plan for certain executives who have provided lengthy service to AdventHealth and/or to other Seventh-day Adventist Church hospitals or health care institutions. Under the provisions of the SERP II plan, benefits are provided to qualifying executive participants on a pro-rata schedule beginning with 20 years of service as an employee of AdventHealth and/or another hospital or health care institution controlled by the Seventh-day Adventist Church and who satisfy certain other qualifying criteria. Eligible employees are restricted to those executives who, as of January 1, 2020, satisfied, or if employment continues, will satisfy the eligibility requirements of SERP II prior to December 31, 2027. This supplemental executive retirement plan (SERP II) was designed to provide eligible executives with the economic equivalent of an annual income beginning at normal retirement age equal to 60% of the average of the participant's three, five or seven highest years of base salary from AdventHealth active employment inclusive of income from all other Seventh-day Adventist Church healthcare employer-financed retirement income sources and investment income earned on those contributions through social security normal retirement age as defined in the plan. The number of years included in highest average compensation is determined by the individual's year of entry to SERP II and by the individual's year of entry to the AdventHealth Executive FLEX Benefit Program. FLEX Plan: The Flex Plan was originally designed to provide eligible executives an opportunity to select from among a variety of supplemental benefits, including a split dollar life insurance policy and long-term care insurance, to individually tailor a benefits program appropriate to each executive's needs. In 2020, the Flex Plan was amended to exclude employed executives who are hired or promoted after a certain date from being eligible to participate in the Flex Plan except for certain insurance coverage features of the plan. The Flex Plan provides eligible participants a pre-determined benefits allowance credit that is equal to a percentage of the executive's base pay from which the cost of mandatory and elective employee benefits is deducted. The benefits allowance credit percentage for any plan year shall not be greater than the maximum dollar amount or the percentage of compensation as determined by the AdventHealth Benefits Administration Committee. For grandfathered eligible employees, the annual pre-determined Flex allowance is contributed and any funds that remain after the cost of mandatory and elective benefits are subtracted are, at the employee's option, contributed to either an IRC 457(f) deferred compensation account or to an IRC 457(b) eligible deferred compensation plan. Upon attainment of age 65, all previous 457(f) deferred amounts are paid immediately to the participant and any future employer contributions are made quarterly from the Plan directly to the participant. The Plan provides for a class year vesting schedule (2 years for each class year) with respect to amounts accumulated in the executive's 457(f) deferred compensation account. Distributions could also be made from the executive's 457(f) deferred compensation account upon attainment of age 65 or upon an involuntary separation. The account will be forfeited by the executive upon a voluntary separation. With respect to grandfathered participants, the Flex Plan documents define eligible employees to include the Chief Executive Officers of AdventHealth entities and Vice Presidents of all AdventHealth entities whose base salary was at least equal to the Internal Revenue Code Section 401(a)(17) compensation limit each year.

Schedule J, Line 4b: continuation

Flex Plan Flex Plan SERP II SERP III Contr. Distr.* Contr./Distr. Contr. ------------------------------------------------------- Paul Rathbun $ 150,000 $ 197,530 $ 607,786 $ 0 Kenneth Bacon $ 0 $ 0 $ 0 $226,932 Samuel Huenergardt $ 128,131 $ 115,142 $ 0 $ 0 Jillyan McKinney $ 0 $ 0 $ 0 $ 75,750 Jonathan Fisher $ 0 $ 0 $ 0 $ 45,073 * Including Investment Earnings

Disregarded entities

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

• HealthFit Family Medicine LLC

  Medical Services - family practice (inactive) · CO · income $0 · assets $0

  Directly controlled by Portercare Adventist Health System

• HealthFit Medical Professionals LLC

  Medical Services - family practice (inactive) · CO · income $0 · assets $0

  Directly controlled by Portercare Adventist Health System

• HealthFit Wellness Professionals LLC

  Fitness Center (inactive) · CO · income $0 · assets $0

  Directly controlled by Portercare Adventist Health System

Related partnerships

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

• Fletcher Hospital Surgical Ventures LLC

  Indirect Interest in Surgery Center · NC

• Florida Hospital DMERT LLC

  Medical Equipment · FL · general or managing partner

• Florida Hospital Home Infusion LLP

  Home Infusion Services · FL · general or managing partner

• Functional Neurosurgical Ambulatory Surgery Ctr LLC

  Related · Surgery Center · CO · 51% owned · share of income $1,180,369 · share of assets $1,587,553

  Directly controlled by Portercare Adventist Health System

• M&O Orlando MOB I LLC

  Operation of Medical Office Building · DE

• OnPoint OBGYN LLC (21-123122)

  Related · Healthcare Services · CO · 51% owned · share of income -$1,103,212 · share of assets $528,667

  Directly controlled by Portercare Adventist Health System

• PAHS OnPoint Imaging LLC

  Related · Imaging Center · CO · 51% owned · share of income -$325,576 · share of assets $520,421

  Directly controlled by Portercare Adventist Health System

• PAHS OnPoint Urgent Care LLC

  Related · Urgent Care Center · CO · 54% owned · share of income -$1,484,947 · share of assets $9,392,109

  Directly controlled by Portercare Adventist Health System

• Princeton Homecare Services LLC (11-8122)

  Operation of Home Health Agency · FL

• Surgery Center of Rome LP

  Surgery Center · GA

• The Bariatric Center of Kansas City LLC

  Surgery Center · KS

• Urgent Care Centers of Brevard County LLC

  Urgent Care Centers · FL · general or managing partner

Related corporations and trusts

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

• AdventHealth Orlando Network Inc (11 - 41922)

  C · Inactive · FL

• AdventHealth Professional Staffing Inc (11 - 12822)

  C · INACTIVE · FL

• AdventHealth Tampa Network Inc (11 - 41922)

  C · Inactive · FL

• AdventHealth Team Members Inc (11 - 12822)

  C · INACTIVE · FL

• AdventHealth Value Based Bundle Management LLC (61-123122)

  C · Medical Contracting and Billing · FL

• Altamonte Medical Plaza Condominium Association Inc

  C · Condo Association · FL

• Apopka Medical Plaza Condominium Association Inc

  C · Condo Association · FL

• Battle Creek Adventist Hospital

  C · Inactive · MI

• Florida Hospital Flagler Medical Offices Association Inc

  C · Condo Association · FL

• Florida Hosp Hlth Village Property Owner's Assoc Inc

  C · Condo Association · FL

• Florida Hospital Healthcare System Inc

  C · PHSO / CIN · FL

• Florida Medical Plaza Condominium Association Inc

  C · Condo Association · FL

• Kissimmee Multispecialty Clinic Condominium Association Inc

  C · Condo Association · FL

• Midwest Management Services Inc

  C · Inactive · KS

• North American Health Services Inc & Sub

  C · Holding Co. · TN

• Ormond Prof Associates Condo Assoc Inc (430 year end)

  C · Condo Association · FL

• Park Ridge Property Owner's Association Inc

  C · Condo Association · NC

• Park Ridge Condominium #1 Unit Owners Association Inc

  C · Condo Association · NC

• Surgicare of Rome Inc

  C · Holding Company · GA

• Redmond Park Health Services Inc

  C · Holding Company · GA

• The Garden Retirement Community Inc

  C · Real Estate Rental · FL

• Winter Park Medical Office Building I Condo Assoc Inc

  C · Condo Association · FL