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Nonprofiteer
← COVENANT HOSPITAL HOBBS

Form 990 for tax year 2023

Filed by COVENANT HOSPITAL HOBBS.

Totals

Total revenue
$39,769,109
Total expenses
$59,813,796
Contributions and grants received
$6,301,642
Grants paid
$76
Program service revenue
$33,736,219
Investment income
-$757,742
Other revenue
$488,990
Total assets, end of year
$126,687,571
Total liabilities, end of year
$124,365,282
Net assets or fund balances, end of year
$2,322,289
Program services expenses (Part IX)
$57,644,846
Management and general expenses
$2,168,950
Fundraising expenses
$0
Program service expenses (Part III)
$57,644,846

Program services were 96.4% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Line items

Every line the filer filed in Parts VIII, IX and X, as filed and in filed order. Blank columns are left out, and the lines are not forced to add up to the totals above.

Revenue

Part VIII, the statement of revenue.

  • 1d · Related organizations

    $6,300,000

  • 1f · All other contributions, gifts and grants

    $1,642

  • 2a · Program service revenue: NET PATIENT REVENUE

    total $33,736,219 · related or exempt $33,736,219

  • 3 · Investment income

    total $8,809 · excluded $8,809

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

    securities $766,551

  • 7c · Gain or loss

    securities -$766,551

  • 7d · Net gain or loss

    total -$766,551 · excluded -$766,551

  • 11a · Other revenue: ADMINISTRATION REVENUE

    total $399,244 · related or exempt $399,244

  • 11b · Other revenue: CAFETERIA REVENUE

    total $86,762 · related or exempt $86,762

  • 11c · Other revenue: COST RECOVERIES

    total $2,709 · related or exempt $2,709

  • 11d · All other revenue

    total $275 · related or exempt $275

  • 11e · Other revenue, total

    $488,990

Functional expenses

Part IX, the statement of functional expenses.

  • 1 · Grants to domestic organizations and governments

    total $76 · program services $76

  • 5 · Compensation of officers, directors and key employees

    total $73,729 · program services $70,766 · management and general $2,963

  • 7 · Other salaries and wages

    total $10,589,131 · program services $10,163,579 · management and general $425,552

  • 8 · Pension plan contributions

    total $143,696 · program services $137,921 · management and general $5,775

  • 9 · Other employee benefits

    total $91,420 · program services $87,746 · management and general $3,674

  • 10 · Payroll taxes

    total $804,357 · program services $772,032 · management and general $32,325

  • 11g · Fees: other

    total $22,595,357 · program services $21,687,305 · management and general $908,052

  • 12 · Advertising and promotion

    total $64,442 · program services $61,852 · management and general $2,590

  • 13 · Office expenses

    total $428,655 · program services $411,428 · management and general $17,227

  • 14 · Information technology

    total $18,253 · program services $17,519 · management and general $734

  • 16 · Occupancy

    total $1,921,660 · program services $1,844,433 · management and general $77,227

  • 17 · Travel

    total $31,824 · program services $30,545 · management and general $1,279

  • 19 · Conferences, conventions and meetings

    total $11,447 · program services $10,987 · management and general $460

  • 20 · Interest

    total $1,840 · program services $1,766 · management and general $74

  • 22 · Depreciation, depletion and amortization

    total $4,863,170 · program services $4,667,731 · management and general $195,439

  • 24a · Other expenses: SYSTEM COST ALLOCATION

    total $11,997,359 · program services $11,515,214 · management and general $482,145

  • 24b · Other expenses: MEDICAL SUPPLIES

    total $5,843,114 · program services $5,843,114

  • 24c · Other expenses: DUES & SUBSCRIPTIONS

    total $71,630 · program services $68,751 · management and general $2,879

  • 24d · Other expenses: RECRUITING & RELOCATION

    total $61,109 · program services $58,653 · management and general $2,456

  • 24e · All other expenses

    total $201,527 · program services $193,428 · management and general $8,099

Balance sheet

Part X, book values.

  • 2 · Savings and temporary cash investments

    beginning of year $11,410,135 · end of year $1,408,224

  • 4 · Accounts receivable

    beginning of year $7,378,281 · end of year $6,817,393

  • 8 · Inventories for sale or use

    beginning of year $2,533,394 · end of year $845,037

  • 9 · Prepaid expenses and deferred charges

    beginning of year $95,774 · end of year $103,677

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

    $127,707,790

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

    $10,734,374

  • 10c · Land, buildings and equipment, net

    beginning of year $111,677,624 · end of year $116,973,416

  • 15 · Other assets

    beginning of year $703,037 · end of year $539,824

  • 17 · Accounts payable and accrued expenses

    beginning of year $7,526,798 · end of year $5,190,834

  • 23 · Secured mortgages and notes payable

    beginning of year $1,364,108 · end of year $1,322,405

  • 25 · Other liabilities

    beginning of year $112,169,123 · end of year $117,852,043

  • 27 · Net assets without donor restrictions

    beginning of year $12,738,216 · end of year $2,322,289

Mission and programs · 2023

Mission

AS EXPRESSIONS OF GOD'S HEALING LOVE, WITNESSED THROUGH THE MINISTRY OF JESUS, WE ARE STEADFAST IN SERVING ALL, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.

Activities or mission (Part I)

SEE SCHEDULE OAS EXPRESSIONS OF GOD'S HEALING LOVE, WITNESSED THROUGH THE MINISTRY OF JESUS, WE ARE STEADFAST IN SERVING ALL, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.

  • SEE SCHEDULE OAT PROVIDENCE, WE USE OUR VOICE TO ADVOCATE FOR VULNERABLE POPULATIONS AND NEEDED REFORMS IN HEALTH CARE. WE ARE ALSO PURSUING INNOVATIVE WAYS TO TRANSFORM HEALTH CARE BY KEEPING PEOPLE HEALTHY, AND MAKING OUR SERVICES MORE CONVENIENT, ACCESSIBLE AND AFFORDABLE FOR ALL. IN AN INCREASINGLY UNCERTAIN WORLD, WE ARE COMMITTED TO HIGH-QUALITY, COMPASSIONATE CARE FOR EVERYONE - REGARDLESS OF COVERAGE OR ABILITY TO PAY. WE HELP PEOPLE AND COMMUNITIES BENEFIT FROM THE BEST HEALTH CARE MODEL FOR THE FUTURE - TODAY.TOGETHER, OUR 117,000 CAREGIVERS (ALL EMPLOYEES) SERVE IN 51 HOSPITALS, 1,000 CLINICS AND A COMPREHENSIVE RANGE OF HEALTH AND SOCIAL SERVICES ACROSS ALASKA, CALIFORNIA, MONTANA, NEW MEXICO, OREGON, TEXAS AND WASHINGTON. THE PROVIDENCE FAMILY INCLUDES:-PROVIDENCE ACROSS SEVEN WESTERN STATES-COVENANT HEALTH IN WEST TEXAS-PROVIDENCE FACEY MEDICAL FOUNDATION IN LOS ANGELES, CA-KADLEC IN SOUTHEAST WASHINGTON-PACIFIC MEDICAL CENTERS IN SEATTLE, WA-SWEDISH HEALTH SERVICES IN SEATTLE, WA AS A COMPREHENSIVE HEALTH CARE ORGANIZATION, WE ARE SERVING MORE PEOPLE, ADVANCING BEST PRACTICES AND CONTINUING OUR MORE THAN 100-YEAR TRADITION OF SERVING THE POOR AND VULNERABLE. DELIVERING SERVICES ACROSS SEVEN STATES, PROVIDENCE IS COMMITTED TO TOUCHING MILLIONS OF MORE LIVES AND ENHANCING THE HEALTH OF THE AMERICAN WEST TO TRANSFORM CARE FOR THE NEXT GENERATION AND BEYOND.THROUGH COMMUNITY BENEFIT PROGRAMS AND OTHER HIGH-IMPACT INVESTMENTS, WE WORK TO ENSURE BASIC HEALTH NEEDS ARE MET AND SERVE TO REMOVE BARRIERS TO CARE, BUILD COMMUNITY RESILIENCE AND INNOVATE FOR THE FUTURE. MINISTRIES AND AFFILIATES SUPPORT ORGANIZATIONS, PROGRAMS AND INITIATIVES THAT IMPROVE HEALTH AND WELL-BEING AND INCREASE EQUITABLE ACCESS TO QUALITY CARE AT THE COMMUNITY LEVEL AND AT SCALE ACROSS SEVEN STATES.WE ARE PROUD OF OUR HISTORY AND CONTINUED COMMITMENT TO HELPING BUILD A MORE EQUITABLE, SUSTAINABLE FUTURE. OUR STEADFAST COMMITMENT TO RESPONDING TO COMMUNITY NEED IS ONE OF THE MANY WAYS MINISTRIES, AFFILIATES AND CAREGIVERS LIVE OUT OUR SHARED MISSION AND CONTINUE TO SERVE AS A VITAL SAFETY NET FOR THOSE WHO ARE VULNERABLE.FOR MORE INFORMATION GO TO: HTTPS://WWW.PROVIDENCE.ORG/ABOUT/ANNUAL-REPORT ENVIRONMENTAL, SOCIAL, AND GOVERNANCE STANDARDSPROVIDENCE CONTINUES TO EXECUTE ON OUR INTEGRATED STRATEGIC AND FINANCIAL PLAN, WHICH CLEARLY EXPRESSES OUR COMMITMENT AND ACCELERATION OF THE IMPORTANT WORK TO ADDRESS SOCIAL, RACIAL, AND ECONOMIC DISPARITIES AND REDUCE OUR CARBON FOOTPRINT IN THE COMMUNITIES WE SERVE. PROVIDENCE ADVANCES PROGRESS ON OUR CARBON NEGATIVE GOAL AND IN 2023 WE ESTIMATED THAT WE DECREASED EMISSIONS BY OVER 12 PERCENT COMPARED TO OUR 2019 BASELINE. IN ADDITION, OUR EFFORTS LED TO THE INTRODUCTION OF THE GREEN HOSPITALS ACT, LEGISLATION MODELED AFTER PROVIDENCE THAT WOULD PROVIDE CRITICAL FEDERAL FUNDING TO WEATHERIZE AND MODERNIZE HEALTH CARE FACILITIES. PROVIDENCE COMPLETED A COMPREHENSIVE CLIMATE RESILIENCE PLAN IN ALIGNMENT WITH OUR COMMITMENT TO THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES CLIMATE PLEDGE. WE CONTINUE TO REDUCE GREENHOUSE GAS EMISSIONS WITH A FOCUS ON LED LIGHTING UPGRADES, WATER CONSERVATION, MORE EFFICIENT DELIVERY OF NITROUS OXIDE GAS DURING ANESTHESIA, AND ADVANCING OUR WASTE OPTIMIZATION WORK ACROSS ALL HOSPITALS AND CLINICS.2023 PROGRAM SERVICE ACCOMPLISHMENTSCOVENANT HEALTH MEDICAL CENTER, GRACE SURGICAL HOSPITAL, COVENANT CHILDREN'S, HOSPITAL AND COVENANT SPECIALTY HOSPITAL (JOINT VENTURE) WORK COLLABORATIVELY THROUGH A CENTRALIZED/SHARED SERVICE COMMUNITY BENEFIT/COMMUNITY HEALTH INVESTMENT DEPARTMENT TO MEET THE NEEDS IDENTIFIED IN THE CHNA. THE LUBBOCK BASED FACILITIES ARE REFERRED TO COLLECTIVELY AS COVENANT HEALTH LUBBOCK HOSPITALS AND ALL SERVE THE SAME GEOGRAPHIC SERVICE AREA OF WEST TEXAS AND EASTERN NEW MEXICO. ADDITIONALLY, DUE TO OVERLAPPING SERVICE AREAS, CLOSE GEOGRAPHIC PROXIMITY TO ONE ANOTHER, AND SHARED COMMUNITY BENEFIT OUTREACH PROGRAMS, THE COVENANT HEALTH LUBBOCK HOSPITALS WORKED WITH COVENANT HEALTH PLAINVIEW, COVENANT HEALTH LEVELLAND AND COVENANT HOBBS HOSPITAL TO DEVELOP A REGIONAL APPROACH TO MANY OF THEIR 2024-2026 CHIP'S. WHILE THERE ARE SOME DIFFERENCES IN SELECT STRATEGIES AND COMMUNITY PARTNERS, COVENANT MEDICAL CENTER, COVENANT CHILDREN'S, GRACE SURGICAL HOSPITAL, COVENANT SPECIALTY HOSPITAL, COVENANT HEALTH PLAINVIEW, COVENANT HOBBS HOSPITAL, AND COVENANT HEALTH LEVELLAND SHARE MANY SIMILAR OUTREACH STRATEGIES, WHICH ALLOWS FOR MORE EFFECTIVE LEVERAGING INVESTMENTS IN THE REGION TO MEET COMMUNITY NEEDS. COVENANT HOBBS HOSPITAL'S FIRST CHNA OCCURRED IN 2023 HOWEVER, THEY PARTICIPATED IN MANY OUTREACH ACTIVITIES AND INVESTMENTS IN 2023 PRIOR TO COMPLETION OF THEIR CHNA AND CHIP. EXAMPLES OF COVENANT HOBBS HOSPITAL OUTREACH INCLUDE: HOSTING COMMUNITY BLOOD DRIVES, FREE COMMUNITY CHILDBIRTH CLASSES, PARTICIPATED IN CAREER DAY FOR GIRLS WITH UNIVERSITY OF SOUTHWEST, CONTRIBUTE TO UNITED WAY, HOSTED BLACK HISTORY MONTH GALLERY WALK, WORK WITH NURSING STUDENTS FROM NEW MEXICO JR COLLEGE, PARTICIPATE IN HOBBS HISPANO CHAMBER OF COMMERCE HEALTH FAIR, OFFER FREE DIET AND EXERCISE COMMUNITY EDUCATION AT HOBBS PUBLIC LIBRARY, CAREGIVERS VOLUNTEER WITH HABITAT FOR HUMANITY IN HOBBS, WHI HOBBS AND NM RAMPS PROJECT. ADDITIONALLY, COVENANT HOBBS PARTICIPATES IN FOOD DRIVES AND OTHER COLLECTIONS TO SUPPORT NON-PROFITS. THEY ALSO WORK WITH PROVIDENCE WELL BEING TRUST AND THE COVENANT WELLNESS GRANT PROGRAMS TO PROVIDE SUPPORT TO NON-PROFITS ADDRESSING NEEDS SUCH AS MENTAL HEALTH AND FOOD INSECURITY.COVENANT HEALTH HAS A RICH HISTORY IN THE TEXAS/NEW MEXICO REGION. WHILE HEALTH CARE IN OUR REGION HAS CHANGED OVER THE YEARS, OUR COMMITMENT TO FULFILLING OUR MISSION, VISION, VALUES AND PROMISE HAVE NOT WAIVERED.PROGRAM SERVICE ACCOMPLISHMENTS:IN CY 2023, COVENANT HOBBS PROVIDED FINANCIAL ASSISTANCE (FREE AND DISCOUNTED CARE) IN THE AMOUNT OF $3.6M AND UNPAID COST OF MEDICAID OF $11.8M.

    Expenses $57,644,846 · Grants $76 · Revenue $34,225,209

As filed on the 2023 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • WALTER CATHEY

    BOARD MEMBER

    Total calculated
    $1,645,841
    From this org
    $0
    From related orgs
    $1,442,423
    Other
    $203,418
    Hours/week
    0.5 + 54.5 related

    Schedule J breakdown matched by us

    Base
    $0 + $605,945 related
    Bonus
    $0 + $770,228 related
    Other
    $0 + $66,250 related
    Deferred
    $0 + $164,039 related
    Nontaxable benefits
    $0 + $39,379 related
    Filer's total
    $0 + $1,645,841 related

  • JAMES KELLY

    FRMR OFF. - VP SENIOR CORP COUNSEL

    Total calculated
    $808,682
    From this org
    $0
    From related orgs
    $704,260
    Other
    $104,422
    Hours/week
    0

    Schedule J breakdown matched by us

    Base
    $0 + $354,037 related
    Bonus
    $0 + $304,115 related
    Other
    $0 + $46,108 related
    Deferred
    $0 + $71,532 related
    Nontaxable benefits
    $0 + $32,890 related
    Filer's total
    $0 + $808,682 related

  • BRUCE WHITE

    BOARD MEMBER/CEO - THRU 1/23

    Total calculated
    $529,929
    From this org
    $0
    From related orgs
    $462,155
    Other
    $67,774
    Hours/week
    25 + 25 related

    Schedule J breakdown matched by us

    Base
    $0 + $288,455 related
    Bonus
    $0 + $166,253 related
    Other
    $0 + $7,447 related
    Deferred
    $0 + $33,606 related
    Nontaxable benefits
    $0 + $34,168 related
    Filer's total
    $0 + $529,929 related

  • DYANA KERR

    FRMR OFF. - REGIONAL CFO

    Total calculated
    $410,134
    From this org
    $0
    From related orgs
    $345,925
    Other
    $64,209
    Hours/week
    0 + 55 related

    Schedule J breakdown matched by us

    Base
    $0 + $295,906 related
    Bonus
    $0 + $48,979 related
    Other
    $0 + $1,040 related
    Deferred
    $0 + $31,064 related
    Nontaxable benefits
    $0 + $33,145 related
    Filer's total
    $0 + $410,134 related

  • DONALD ANDERSON JR

    ASSISTANT SECRETARY FOR ENROLLMENT

    Total calculated
    $323,721
    From this org
    $0
    From related orgs
    $292,875
    Other
    $30,846
    Hours/week
    0.5 + 54.5 related

    Schedule J breakdown matched by us

    Base
    $0 + $266,681 related
    Bonus
    $0 + $24,827 related
    Other
    $0 + $1,367 related
    Deferred
    $0 + $15,474 related
    Nontaxable benefits
    $0 + $15,372 related
    Filer's total
    $0 + $323,721 related

  • RACHEL SLADE

    CEO/PRESIDENT (PART YEAR)

    Total calculated
    $266,101
    From this org
    $66,713
    From related orgs
    $174,066
    Other
    $25,322
    Hours/week
    1 + 49 related

    Schedule J breakdown matched by us

    Base
    $66,162 + $136,781 related
    Bonus
    $0 + $11,341 related
    Other
    $551 + $25,944 related
    Deferred
    $1,204 + $3,141 related
    Nontaxable benefits
    $5,812 + $15,165 related
    Filer's total
    $73,729 + $192,372 related

  • JENNIFER BRYAN

    CFO - THRU 10/23

    Total calculated
    $235,862
    From this org
    $0
    From related orgs
    $195,795
    Other
    $40,067
    Hours/week
    8 + 47 related

    Schedule J breakdown matched by us

    Base
    $0 + $169,947 related
    Bonus
    $0 + $22,986 related
    Other
    $0 + $2,862 related
    Deferred
    $0 + $14,949 related
    Nontaxable benefits
    $0 + $25,118 related
    Filer's total
    $0 + $235,862 related

  • CORA RIVERA

    CFO (PART YEAR)

    Total calculated
    $208,411
    From this org
    $0
    From related orgs
    $180,092
    Other
    $28,319
    Hours/week
    18 + 37 related

    Schedule J breakdown matched by us

    Base
    $0 + $164,520 related
    Bonus
    $0 + $14,072 related
    Other
    $0 + $1,500 related
    Deferred
    $0 + $14,619 related
    Nontaxable benefits
    $0 + $13,700 related
    Filer's total
    $0 + $208,411 related

  • KATHLEEN BURRELL

    SECRETARY (PART YEAR)

    Total calculated
    $193,718
    From this org
    $0
    From related orgs
    $162,384
    Other
    $31,334
    Hours/week
    1 + 54 related

    Schedule J breakdown matched by us

    Base
    $0 + $148,491 related
    Bonus
    $0 + $13,427 related
    Other
    $0 + $466 related
    Deferred
    $0 + $7,527 related
    Nontaxable benefits
    $0 + $23,807 related
    Filer's total
    $0 + $193,718 related

  • LINDZI TIMBERLAKE

    SECR./CHIEF GOV. OFF. - THRU 2/23

    Total calculated
    $43,689
    From this org
    $0
    From related orgs
    $40,288
    Other
    $3,401
    Hours/week
    0.5 + 49.5 related

  • DEBRA HICKS

    BOARD MEMBER

    Total calculated
    $0
    Hours/week
    0.5

  • JOE COTTON

    BOARD MEMBER

    Total calculated
    $0
    Hours/week
    0.5

  • JONATHAN SENA

    BOARD MEMBER/CHAIR

    Total calculated
    $0
    Hours/week
    1

  • JOSH GRASSHAM

    BOARD MEMBER/VICE CHAIR

    Total calculated
    $0
    Hours/week
    1

  • ROSA ARANDA

    BOARD MEMBER

    Total calculated
    $0
    Hours/week
    0.5

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, and on a Form 990-PF Part VIII's — 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

  • 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)

PART I, LINE 1A
PROVIDENCE EXPENSE REIMBURSEMENT PROCEDURES INCLUDE THE FOLLOWING POLICIES: FIRST CLASS TRAVEL OR CHARTER TRAVEL AIR TRAVEL IS GENERALLY REIMBURSABLE AT THE LEAST EXPENSIVE AIRFARE WHICH PERMITS DEPARTURES AND ARRIVALS AT REASONABLE TIMES AND REASONABLE DISTANCE TRAVELED. EMPLOYEES ARE ENCOURAGED TO PLAN IN ADVANCE TO GET AVAILABLE DISCOUNTS. AIRLINE FREQUENT FLYER UPGRADES WILL NEVER BE REIMBURSED. IN LIMITED SITUATIONS, FIRST CLASS TICKETS AND CHARTER MAY BE REIMBURSED WHEN APPROVED BY A SENIOR LEVEL SUPERVISOR. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS TAX INDEMNIFICATIONS OR GROSS-UP PAYMENTS - RELOCATION PROVIDENCE FOLLOWS THE FEDERAL AND STATE TAXATION LAWS RELATED TO RELOCATION EXPENSES PAID TO THE EMPLOYEE OR TO A THIRD PARTY ON THE EMPLOYEE'S BEHALF. THEY ARE CONSIDERED TAXABLE WAGES AND ARE REPORTED AS SUCH. BASED ON THE WAY PROVIDENCE HAS CHOSEN TO PAY THE RELOCATION EXPENSES, PROVIDENCE REPORTS REIMBURSEMENTS AND PAYMENTS TO VENDORS AS INCOME AND THESE EXPENSE PAYMENTS ARE REFLECTED ON THE EXECUTIVE'S FORM W-2. PROVIDENCE PROVIDES A GROSS-UP FOR THE RELOCATION BENEFITS, SO THAT A PORTION OF THE REIMBURSEMENT DOES NOT HAVE TO BE USED TO PAY TAXES, AND THIS TAX GROSS-UP IS ALSO REPORTED AS TAXABLE INCOME. THE AMOUNTS REPORTED FOR THESE GROSS-UP PAYMENTS ARE INCLUDED ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990. TAX INDEMNIFICATIONS OR GROSS-UP PAYMENTS - FINANCIAL/RETIREMENT PLANNING PROVIDENCE FOLLOWS THE FEDERAL AND STATE TAXATION LAWS RELATED TO FINANCIAL AND RETIREMENT PLANNING EXPENSES PAID TO THE EMPLOYEE OR TO A THIRD PARTY ON THE EMPLOYEE'S BEHALF. THEY ARE CONSIDERED TAXABLE WAGES AND ARE REPORTED AS SUCH. BASED ON THE WAY PROVIDENCE HAS CHOSEN TO PAY THESE OTHER EXPENSES, PROVIDENCE REPORTS REIMBURSEMENTS AND PAYMENTS TO VENDORS AS INCOME AND THESE EXPENSE PAYMENTS ARE REFLECTED ON THE EXECUTIVE'S FORM W-2. PROVIDENCE PROVIDES A GROSS-UP FOR THIS BENEFIT, SO THAT A PORTION OF THE PAYMENT DOES NOT HAVE TO BE USED TO PAY TAXES, AND THIS TAX GROSS-UP IS ALSO REPORTED AS TAXABLE INCOME. THE AMOUNTS REPORTED FOR THESE GROSS-UP PAYMENTS ARE INCLUDED ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990. PERSONAL SERVICES PROVIDENCE OFFERS FINANCIAL PLANNING SERVICES AS AN OPTIONAL BENEFIT TO EMPLOYEES AT VICE PRESIDENT LEVEL AND ABOVE. THE AMOUNTS REPORTED FOR THE FINANCIAL PLANNING SERVICES ARE INCLUDED AS TAXABLE INCOME ON SCHEDULE J, PART II, COLUMN B (III) - OTHER REPORTABLE COMPENSATION ON THE FORM 990 FOR THE EMPLOYEES WHO PARTICIPATE.
PART I, LINE 3
DESCRIPTION OF PROCESS TO REVIEW COMPENSATION PAID TO TOP MANAGEMENT OFFICIAL THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER/TOP MANAGEMENT OFFICIAL IS PAID BY THE FILING ORGANIZATION AND RELATED ORGANIZATIONS, COVENANT HEALTH SYSTEM AND COVENANT MEDICAL CENTER, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. SEE SCHEDULE O, PART VI, LINE 15A FOR THE PROCESS USED BY PROVIDENCE.
PART I, LINE 4B
ENTITIES WITHIN THE PROVIDENCE SYSTEM SPONSOR NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS FOR CERTAIN EXECUTIVES. THE PLANS PROVIDE FOR EMPLOYER CONTRIBUTIONS BASED ON A PERCENTAGE OF EXECUTIVE BASE SALARY AND, DEPENDING ON THE PLAN, ARE SUBJECT TO EITHER A THREE YEAR, AGE 59 1/2 OR A FIVE YEAR, AGE 65 VESTING SCHEDULE. UNTIL THE EXECUTIVE PROVIDES THESE SUBSTANTIAL FUTURE SERVICES, THESE SUPPLEMENTAL RETIREMENT CONTRIBUTIONS ARE AT RISK, AND WILL BE FORFEITED IF THE EXECUTIVE LEAVES THE ORGANIZATION BEFORE REACHING HER OR HIS VESTING DATE. THE SUPPLEMENTAL RETIREMENT CONTRIBUTIONS ARE INCLUDED IN COLUMN (C) AS A NONTAXABLE BENEFIT IN THE YEAR THE CONTRIBUTION IS CREDITED TO THE EXECUTIVE'S ACCOUNT, AND ARE INCLUDED AGAIN ON THE FORM 990 IN COLUMN (B)(III) IF AND WHEN THE AMOUNT BECOMES VESTED IN A FUTURE YEAR, AS THE FORM 990 REQUIRES. THE FOLLOWING INDIVIDUALS RECEIVED A PAYOUT DURING THE CURRENT YEAR: WALTER CATHEY - $64,541 JAMES KELLY - $45,298 BRUCE WHITE - $4,027 DYANA KERR - $365
PART I, LINE 7
NON-FIXED PAYMENTS THE PROVIDENCE EXECUTIVE COMPENSATION COMMITTEE (OF THE BOARD) HAS APPROVED AN EXECUTIVE COMPENSATION PHILOSOPHY THAT CLOSELY TIES AN EXECUTIVE'S COMPENSATION TO PERFORMANCE - BOTH THE PERFORMANCE OF THE ORGANIZATION AND THE PERFORMANCE OF THE EXECUTIVE. THERE IS NO GUARANTEE THAT THIS PART OF A LEADER'S COMPENSATION WILL BE PAID - IF THE PERFORMANCE OF THE ORGANIZATION OR OF THE INDIVIDUAL DOES NOT MEET THE PERFORMANCE STANDARDS FOR PAYMENT, NO PERFORMANCE-BASED PAYMENT IS MADE. THIS APPROACH IS REFLECTED IN PROVIDENCE'S LEADERSHIP ANNUAL INCENTIVE PLAN AND LONG-TERM INCENTIVE PLAN, WHICH ARE PERFORMANCE-BASED ANNUAL INCENTIVE PLANS THAT AFFORD PARTICIPATING EXECUTIVES THE OPPORTUNITY TO EARN "AT RISK" COMPENSATION THROUGH PERFORMANCE AGAINST VERY CHALLENGING GOALS. PAYOUTS WILL BE AWARDED BASED ON GOALS RELATED TO STRATEGIC OBJECTIVES, FISCAL STEWARDSHIP AND QUALITY OF CARE - THESE GOALS ARE SET BEFORE THE YEAR BEGINS AND ARE VERY CHALLENGING. THE EXECUTIVE COMPENSATION COMMITTEE REVIEWS AND APPROVES EACH YEAR'S PERFORMANCE GOALS TO MAKE SURE THEY ARE SUFFICIENTLY CHALLENGING, AND TO MAKE SURE THE GOALS ARE DESIGNED TO HELP PROVIDENCE MEET ITS MISSION AND STRATEGIC PURPOSES. EACH YEAR THE PSJH BOARD EXECUTIVE COMPENSATION COMMITTEE REVIEWS THE INCENTIVE PERFORMANCE AND MUST CERTIFY THE ACHIEVEMENT OF PERFORMANCE GOALS BEFORE ANY AWARDS ARE PAID OUT. WHEN REVIEWING AND APPROVING TOTAL COMPENSATION FOR EXECUTIVES, THE EXECUTIVE COMPENSATION COMMITTEE INCLUDES INCENTIVE AWARDS, TO MAKE SURE THAT COMPENSATION IS REASONABLE AND WELL-SUPPORTED BY MARKET DATA. THE COMMITTEE CONSISTS ONLY OF DIRECTORS WHO ARE FREE OF CONFLICTS OF INTEREST, AND THE COMMITTEE RELIES ON MARKET SURVEY DATA GATHERED BY AN INDEPENDENT CONSULTANT. THE COMMITTEE CONDUCTS THIS REVIEW AND APPROVAL PROCESS IN A MANNER THAT IS IN ACCORDANCE WITH IRS REQUIREMENTS FOR COMPENSATION OF TAX-EXEMPT ORGANIZATION LEADERS, AND IN ACCORDANCE WITH THE BEST GOVERNANCE PRACTICES IN THE INDUSTRY.

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.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Related partnerships

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

Related corporations and trusts

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

Provenance

Return type
form_990
Tax year
2023
Filed
29 October 2024
IRS schema version
2023v5.1
Source object
202443169349304044

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