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← ESSENTIA HEALTH SURGERY CENTERS

Form 990 for tax year 2024

Filed by ESSENTIA HEALTH SURGERY CENTERS.

Totals

Total revenue
$13,054,733
Total expenses
$18,097,951
Contributions and grants received
$0
Grants paid
$0
Program service revenue
$13,052,583
Investment income
$2,150
Other revenue
$0
Total assets, end of year
$40,191,610
Total liabilities, end of year
$56,147,627
Net assets or fund balances, end of year
-$15,956,017
Program services expenses (Part IX)
$16,455,557
Management and general expenses
$1,642,394
Fundraising expenses
$0
Program service expenses (Part III)
$16,455,557

Program services were 90.9% 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.

  • 2a · Program service revenue: OUTPATIENT REVENUES

    total $13,052,583 · related or exempt $13,052,583

  • 7a · Gross sales of assets other than inventory

    other assets $2,150

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

    other assets $0

  • 7c · Gain or loss

    other assets $2,150

  • 7d · Net gain or loss

    total $2,150 · excluded $2,150

Functional expenses

Part IX, the statement of functional expenses.

  • 7 · Other salaries and wages

    total $3,258,659 · program services $3,231,876 · management and general $26,783

  • 8 · Pension plan contributions

    total $135,776 · program services $135,293 · management and general $483

  • 9 · Other employee benefits

    total $519,340 · program services $461,431 · management and general $57,909

  • 10 · Payroll taxes

    total $241,374 · program services $235,438 · management and general $5,936

  • 11b · Fees: legal

    total $120 · management and general $120

  • 11g · Fees: other

    total $215,231 · program services $152,632 · management and general $62,599

  • 12 · Advertising and promotion

    total $99 · program services $99

  • 13 · Office expenses

    total $413,967 · program services $430,437 · management and general -$16,470

  • 14 · Information technology

    total $2,127 · program services $2,110 · management and general $17

  • 16 · Occupancy

    total $965,740 · program services $957,803 · management and general $7,937

  • 17 · Travel

    total $3,875 · program services $3,875

  • 19 · Conferences, conventions and meetings

    total $11,426 · program services $11,426

  • 20 · Interest

    total $1,229,652 · program services $1,229,652

  • 22 · Depreciation, depletion and amortization

    total $3,255,248 · program services $3,228,493 · management and general $26,755

  • 23 · Insurance

    total $77,196 · program services $76,781 · management and general $415

  • 24a · Other expenses: MEDICAL SUPPLIES

    total $4,439,757 · program services $4,439,757

  • 24b · Other expenses: AFFILIATE SUPPORT FEE

    total $1,787,424 · program services $870,654 · management and general $916,770

  • 24c · Other expenses: BAD DEBT

    total $701,056 · program services $701,056

  • 24d · Other expenses: AFFILIATE EXPENSE AND R

    total $533,912 · program services $53,391 · management and general $480,521

  • 24e · All other expenses

    total $305,972 · program services $233,353 · management and general $72,619

Balance sheet

Part X, book values.

  • 1 · Cash, non-interest-bearing

    beginning of year $236,306 · end of year $348,145

  • 4 · Accounts receivable

    beginning of year $1,744,727 · end of year $1,616,760

  • 8 · Inventories for sale or use

    beginning of year $1,784,202 · end of year $1,925,005

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

    $34,970,517

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

    $7,622,408

  • 10c · Land, buildings and equipment, net

    beginning of year $29,654,777 · end of year $27,348,109

  • 14 · Intangible assets

    end of year $6,729,885

  • 15 · Other assets

    beginning of year $20,155 · end of year $2,223,706

  • 17 · Accounts payable and accrued expenses

    beginning of year $901,187 · end of year $1,479,256

  • 20 · Tax-exempt bond liabilities

    beginning of year $28,660,309 · end of year $26,248,503

  • 22 · Loans and payables to officers and key people

    end of year $1,073,478

  • 23 · Secured mortgages and notes payable

    end of year $4,640,761

  • 25 · Other liabilities

    beginning of year $14,020,155 · end of year $22,705,629

  • 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 -$10,141,484 · end of year -$15,956,017

Mission and programs · 2024

Mission

WE ARE CALLED TO MAKE A HEALTHY DIFFERENCE IN PEOPLE'S LIVES.

  • ESSENTIA HEALTH SURGERY CENTERS IS ORGANIZED AND SHALL BE OPERATED EXCLUSIVELY FOR CHARITABLE, EDUCATIONAL, AND SCIENTIFIC PURPOSES, SERVING AS THE OPERATIONAL PARENT OF THE ESSENTIA HEALTH ENTITIES OWNING AND/OR OPERATING AMBULATORY SURGERY CENTERS, INCLUDING CHARITABLE CARE TO PERSONS UNABLE TO PAY.ESSENTIA HEALTH SURGERY CENTERS IS THE SOLE MEMBER OF ESSENTIA HEALTH SURGERY CENTERS-DULUTH, LLC DBA ESSENTIA HEALTH SURGERY CENTER-MILLER HILL, ESSENTIA HEALTH SURGERY CENTERS-MINNESOTA, LLC DBA ESSENTIA HEALTH SURGERY CENTER-GRAND RAPIDS, AND ESSENTIA HEALTH SURGERY CENTERS-NORTH DAKOTA, LLC. ESSENTIA HEALTH SURGERY CENTER-MILLER HILL HAS FOUR OPERATING ROOMS AND OFFERS A VARIETY OF OUTPATIENT SURGERIES AND SERVICES INCLUDING EAR, NOSE & THROAT, EYE, GENERAL, GYNECOLOGIC, ORTHOPEDIC, AND UROLOGIC. ESSENTIA HEALTH SURGERY CENTER-GRAND RAPIDS OFFERS OUTPATIENT SURGERIES AND SERVICES INCLUDING COLORECTAL, GENERAL AND ORTHOPEDIC.ESSENTIA HEALTH SURGERY CENTERS EMPLOYS APPROXIMATELY 35 FULL TIME EQUIVALENTS. THE SURGERY CENTER PROVIDED MORE THAN 5,000 OUTPATIENT SURGERIES DURING FISCAL YEAR ENDED JUNE 30, 2025.DURING THE FISCAL YEAR ENDED JUNE 30, 2025, ESSENTIA HEALTH SURGERY CENTERS PROVIDED THE FOLLOWING COMMUNITY BENEFITS: $58,000 IN CHARITY CARE AND $1.5 MILLION COSTS IN EXCESS OF MEDICAID PAYMENTS.ESSENTIA HEALTH IS THE PARENT ORGANIZATION OF AN INTEGRATED HEALTH SYSTEM THAT INCLUDES THIS ORGANIZATION AND ALL ENTITIES THAT ARE OWNED OR CONTROLLED, DIRECTLY OR INDIRECTLY, BY ESSENTIA HEALTH (COLLECTIVELY, THE "SYSTEM OR "ESSENTIA HEALTH").

    Expenses $16,455,557 · Revenue $13,052,583

As filed on the 2024 return. The filer continues this part on Schedule O, which is not shown here.

Listed in Part VII

  • TRACI MORRIS

    TREASURER/REL ORG CHIEF FINCL OFF

    Total calculated
    $1,199,416
    From this org
    $0
    From related orgs
    $1,054,730
    Other
    $144,686
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $702,675 related
    Bonus
    $0 + $269,075 related
    Other
    $0 + $82,980 related
    Deferred
    $0 + $142,406 related
    Nontaxable benefits
    $0 + $2,280 related
    Filer's total
    $0 + $1,199,416 related

  • BRADLEY BEARD

    BOARD VICE CHAIR/REL ORG COO

    Total calculated
    $1,179,194
    From this org
    $0
    From related orgs
    $1,000,148
    Other
    $179,046
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $644,035 related
    Bonus
    $0 + $243,376 related
    Other
    $0 + $112,737 related
    Deferred
    $0 + $134,559 related
    Nontaxable benefits
    $0 + $44,487 related
    Filer's total
    $0 + $1,179,194 related

  • MICHAEL WATTERS

    SECRETARY/REL ORG CHIEF LEGAL OFF

    Total calculated
    $924,527
    From this org
    $0
    From related orgs
    $773,128
    Other
    $151,399
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $506,819 related
    Bonus
    $0 + $192,028 related
    Other
    $0 + $74,281 related
    Deferred
    $0 + $109,834 related
    Nontaxable benefits
    $0 + $41,565 related
    Filer's total
    $0 + $924,527 related

  • AL HURLEY

    PRESIDENT & BOARD CHAIR

    Total calculated
    $835,977
    From this org
    $0
    From related orgs
    $706,163
    Other
    $129,814
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $453,221 related
    Bonus
    $0 + $183,113 related
    Other
    $0 + $69,829 related
    Deferred
    $0 + $102,252 related
    Nontaxable benefits
    $0 + $27,562 related
    Filer's total
    $0 + $835,977 related

  • KENNETH FARRELL MD

    BD DIRECTOR/REL ORG PHYS & DIV CHAIR

    Total calculated
    $748,863
    From this org
    $0
    From related orgs
    $676,587
    Other
    $72,276
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $672,225 related
    Bonus
    $0
    Other
    $0 + $4,362 related
    Deferred
    $0 + $27,600 related
    Nontaxable benefits
    $0 + $44,676 related
    Filer's total
    $0 + $748,863 related

  • KEVIN BOREN

    VICE PRESIDENT, FINANCE/BRD TREAS

    Total calculated
    $678,621
    From this org
    $0
    From related orgs
    $554,813
    Other
    $123,808
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $422,051 related
    Bonus
    $0 + $86,826 related
    Other
    $0 + $45,936 related
    Deferred
    $0 + $80,855 related
    Nontaxable benefits
    $0 + $42,953 related
    Filer's total
    $0 + $678,621 related

  • ROBERT WROBLEWSKI MD

    BOARD DIRECTOR/RELATED ORG PHYSICIAN

    Total calculated
    $611,463
    From this org
    $0
    From related orgs
    $579,533
    Other
    $31,930
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $578,491 related
    Bonus
    $0
    Other
    $0 + $1,042 related
    Deferred
    $0 + $27,600 related
    Nontaxable benefits
    $0 + $4,330 related
    Filer's total
    $0 + $611,463 related

  • KEVIN KARLS MD

    BOARD DIRECTOR/RELATED ORG PHYSICIAN

    Total calculated
    $336,383
    From this org
    $0
    From related orgs
    $314,970
    Other
    $21,413
    Hours/week
    1 + 59 related

    Schedule J breakdown matched by us

    Base
    $0 + $303,202 related
    Bonus
    $0
    Other
    $0 + $11,768 related
    Deferred
    $0
    Nontaxable benefits
    $0 + $21,413 related
    Filer's total
    $0 + $336,383 related

  • DEBRA WILLIAMS

    AMBULATORY SURGERY CENTER DIRECTOR

    Total calculated
    $199,027
    From this org
    $175,655
    From related orgs
    $0
    Other
    $23,372
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $154,072
    Bonus
    $11,605
    Other
    $9,978
    Deferred
    $8,881
    Nontaxable benefits
    $14,491
    Filer's total
    $199,027

  • BAMBI DECHANTAL

    REGISTERED NURSE

    Total calculated
    $156,122
    From this org
    $123,913
    From related orgs
    $0
    Other
    $32,209
    Hours/week
    60

    Schedule J breakdown matched by us

    Base
    $123,850
    Bonus
    $0
    Other
    $63
    Deferred
    $4,723
    Nontaxable benefits
    $27,486
    Filer's total
    $156,122

  • DANIEL MAGANA

    REGISTERED NURSE - SUPERVISOR

    Total calculated
    $118,170
    From this org
    $100,779
    From related orgs
    $0
    Other
    $17,391
    Hours/week
    60

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

  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan

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
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

PART I, LINE 3
ESTABLISHING CEO'S COMPENSATION: ESSENTIA HEALTH, AS A RELATED ORGANIZATION, USED THE FOLLOWING METHODS TO ESTABLISH ESSENTIA HEALTH SURGERY CENTERS' PRESIDENT'S COMPENSATION: A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.
PART I, LINE 4B
SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: ESSENTIA HEALTH'S NONQUALIFIED RETIREMENT PLAN IS OFFERED TO DESIGNATED ESSENTIA HEALTH EXECUTIVES. THERE IS A MINIMUM FOUR YEAR VESTING DATE, OR VESTING IS AUTOMATIC UPON REACHING RETIREMENT AGE, DEATH, DISABILITY OR INVOLUNTARY TERMINATION WITHOUT CAUSE. BENEFITS ARE SUBJECT TO INCOME TAXES UPON VESTING AND PAYABLE FROM ESSENTIA HEALTH'S GENERAL ASSETS. REPORTED AS OTHER REPORTABLE COMPENSATION IN SCHEDULE J, PART II, COLUMN B (III), THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A RECEIVED PAYMENT OF THE VESTED BENEFIT FROM THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING THE YEAR: TRACI MORRIS $78,928 BRADLEY BEARD $90,640 MICHAEL WATTERS $62,797 AL HURLEY $59,235 KEVIN BOREN $27,172 REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION IN SCHEDULE J, PART II, COLUMN C, ESSENTIA HEALTH MADE CONTRIBUTIONS, SUBJECT TO THE VESTING TERMS, DURING THE YEAR INTO THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN ON BEHALF OF THE FOLLOWING INDIVIDUALS LISTED IN FORM 990, PART VII, SECTION A, LINE 1A: TRACI MORRIS $114,806 BRADLEY BEARD $106,959 MICHAEL WATTERS $84,801 AL HURLEY $75,236 KEVIN BOREN $53,255

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.

Disregarded entities

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

Related partnerships

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

  • BRIGHTSIDE SURGICAL LLC

    RELATED · AMBULATORY SURGERY CENTER · ND · 72.78% owned · share of income $577,855 · share of assets $1,332,068 · general or managing partner

    Directly controlled by ESSENTIA HEALTH SURGERY CENTERS

Related corporations and trusts

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

Provenance

Return type
form_990
Tax year
2024
Filed
11 May 2026
IRS schema version
2024v5.5
Source object
202601319349301825

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