Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $474,160

• 1e · Government grants (contributions)

  $17,498,823

• 1f · All other contributions, gifts and grants

  $681,421

• 2a · Program service revenue: PATIENT REVENUE

  total $497,876,297 · related or exempt $497,876,297

• 2b · Program service revenue: 340B PROGRAM REVENUE

  total $9,417,797 · related or exempt $9,417,797

• 2c · Program service revenue: MDPCP FEES

  total $5,417,435 · related or exempt $5,417,435

• 2d · Program service revenue: SCHOOL NURSING PROGRAM

  total $3,484,808 · related or exempt $3,484,808

• 2e · Program service revenue: CAFETERIA SALES

  total $1,589,618 · excluded $1,589,618

• 2f · All other program service revenue

  total $3,740,493 · related or exempt $3,740,493

• 3 · Investment income

  total $21,321,135 · excluded $21,321,135

• 6a · Gross rents

  real property $379,827

• 6b · Less rental expenses

  real property $1,864,700

• 6c · Rental income or loss

  real property -$1,484,873

• 6d · Net rental income or loss

  total -$1,484,873 · excluded -$1,484,873

• 7a · Gross sales of assets other than inventory

  securities $390,476,677 · other assets $2,680

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

  securities $389,791,077 · other assets $0

• 7c · Gain or loss

  securities $685,600 · other assets $2,680

• 7d · Net gain or loss

  total $688,280 · excluded $688,280

• 11a · Other revenue: LAB REVENUE

  total $1,639,789 · unrelated business $1,639,789

• 11b · Other revenue: COSMETIC REVENUE

  total $920,504 · unrelated business $920,504

• 11c · Other revenue: CLINICAL TRIAL

  total $104,612 · unrelated business $104,612

• 11e · Other revenue, total

  $2,664,905

Functional expenses

Part IX, the statement of functional expenses.

• 2 · Grants to domestic individuals

  total $17,750 · program services $17,750

• 5 · Compensation of officers, directors and key employees

  total $2,832,427 · management and general $2,832,427

• 6 · Compensation of disqualified persons

  total $701,705 · management and general $701,705

• 7 · Other salaries and wages

  total $236,202,614 · program services $188,962,091 · management and general $47,240,523

• 8 · Pension plan contributions

  total $7,834,581 · program services $6,267,665 · management and general $1,566,916

• 9 · Other employee benefits

  total $22,076,790 · program services $17,661,432 · management and general $4,415,358

• 10 · Payroll taxes

  total $15,733,099 · program services $12,586,479 · management and general $3,146,620

• 11b · Fees: legal

  total $392,513 · program services $314,010 · management and general $78,503

• 11c · Fees: accounting

  total $537,180 · program services $429,744 · management and general $107,436

• 11d · Fees: lobbying

  total $61,492 · program services $49,194 · management and general $12,298

• 11f · Fees: investment management

  total $566,851 · program services $453,481 · management and general $113,370

• 11g · Fees: other

  total $64,278,670 · program services $55,081,938 · management and general $9,196,732

• 12 · Advertising and promotion

  total $1,360,497 · program services $1,360,497

• 13 · Office expenses

  total $566,620 · program services $453,296 · management and general $113,324

• 14 · Information technology

  total $6,704,380 · program services $5,363,504 · management and general $1,340,876

• 16 · Occupancy

  total $8,106,703 · program services $6,485,362 · management and general $1,621,341

• 17 · Travel

  total $1,114,315 · program services $891,452 · management and general $222,863

• 19 · Conferences, conventions and meetings

  total $878,997 · program services $703,198 · management and general $175,799

• 20 · Interest

  total $11,864,131 · program services $9,491,305 · management and general $2,372,826

• 22 · Depreciation, depletion and amortization

  total $29,568,979 · program services $23,655,183 · management and general $5,913,796

• 23 · Insurance

  total $3,682,844 · program services $2,946,275 · management and general $736,569

• 24a · Other expenses: DRUGS & PHARMACEUTICALS

  total $44,961,195 · program services $44,961,195

• 24b · Other expenses: MEDICAL SUPPLIES

  total $31,524,282 · program services $31,524,282

• 24c · Other expenses: BAD DEBT EXPENSE

  total $8,785,670 · program services $8,785,670

• 24d · Other expenses: UBI TAXES

  total $274,058 · management and general $274,058

• 24e · All other expenses

  total $23,098,598 · program services $18,478,878 · management and general $4,619,720

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $124,378,604 · end of year $181,309,900

• 4 · Accounts receivable

  beginning of year $41,632,841 · end of year $44,532,910

• 7 · Other notes and loans receivable

  beginning of year $190,416 · end of year $148,605

• 8 · Inventories for sale or use

  beginning of year $7,961,679 · end of year $7,497,111

• 9 · Prepaid expenses and deferred charges

  beginning of year $4,698,381 · end of year $6,791,933

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

  $516,340,942

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

  $280,623,072

• 10c · Land, buildings and equipment, net

  beginning of year $238,780,654 · end of year $235,717,870

• 11 · Investments: publicly traded securities

  beginning of year $232,307,383 · end of year $218,499,545

• 12 · Investments: other securities

  beginning of year $28,123,412 · end of year $14,639,232

• 14 · Intangible assets

  beginning of year $9,858,118 · end of year $8,693,693

• 15 · Other assets

  beginning of year $95,867,179 · end of year $118,254,411

• 17 · Accounts payable and accrued expenses

  beginning of year $91,330,897 · end of year $70,951,461

• 20 · Tax-exempt bond liabilities

  beginning of year $240,043,063 · end of year $234,212,895

• 23 · Secured mortgages and notes payable

  beginning of year $60,194,379 · end of year $62,828,036

• 25 · Other liabilities

  beginning of year $36,879,499 · end of year $41,161,116

• 27 · Net assets without donor restrictions

  beginning of year $353,332,676 · end of year $413,044,602

• 28 · Net assets with donor restrictions

  beginning of year $2,018,153 · end of year $13,887,100

The filer's explanations (Part III)

PART I LINE 4B

SEVERAL OFFICERS ARE PARTICIPANTS IN A 457F PLAN THAT WAS APPROVED BY THE EXECUTIVE COMMITTEE OF THE MMC BOARD OF DIRECTORS. FOR THE CURRENT YEAR, THE FOLLOWING AMOUNTS WERE DEFERRED BY MMC AND ARE NOT SUBSTANTIALLY VESTED AND SUBJECT TO CREDITOR CLAIMS AND FORFEITURES: MAULIK JOSHI $180,769 THOMAS CHAN $42,650 CARRIE ADAMS $31,462 JOSHUA REPAC $26,340 LYNN HAINES $20,750 DAVID LEHR $32,500 THOMAS CHAN RECEIVED A 457F DISTRIBUTION OF $269,078 AND CARRIE ADAMS RECEIVED A 457F DISTRIBUTION OF $14,348.

PART I, LINE 7

INCENTIVE BASED COMPENSATION IS DETERMINED BY AGREED UPON INDIVIDUAL AND CORPORATE GOALS BY THE EXECUTIVE COMMITTEE OF THE MMC BOARD EXECUTIVE COMPENSATION IS PREDETERMINED AT THE BEGINNING OF THE FISCAL YEAR BY THE EXECUTIVE COMMITTEE WITH THE HELP OF INDEPENDENT CONSULTANTS USING BENCHMARKED INFORMATION TO ENSURE MARKET COMPETITIVENESS ON AN ANNUAL BASIS. TOTAL COMPENSATION RECEIVED BY EACH INDIVIDUAL IS REVIEWED FOR REASONABLENESS BY THOSE TASKED WITH GOVERNANCE PRIOR TO ALL DISTRIBUTIONS.

SCHEDULE J, PART III

CERTAIN MMC EXECUTIVES RECEIVE TAXABLE FRINGE BENEFITS, SUCH AS EXECUTIVE LIFE INSURANCE. THE VALUE OF THESE TAXABLE FRINGE BENEFITS IS INCLUDED IN FORM W-2 WAGES. TOTAL COMPENSATION OF ALL EXECUTIVES IS ADJUSTED TO MARKET COMPETITIVENESS, REVIEWED TO ENSURE REASONABLENESS, AND APPROVED BY THE EXECUTIVE COMMITTEE OF THE MMC BOARD. THE EXECUTIVE COMMITTEE OF THE MMC BOARD, WHICH IS COMPRISED OF INDEPENDENT BOARD MEMBERS, REVIEWS ON AN ANNUAL BASIS THE FOLLOWING AS IT RELATES TO THE COMPENSATION OF THE CEO AND OTHER KEY EXECUTIVES: 1) ANNUAL PERFORMANCE EVALUATIONS OF THE CEO AND EXECUTIVES; 2) ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE IN ACHIEVEMENT OF STRATEGIC AND INDIVIDUAL INCENTIVE GOALS; AND 3) MARKET DATA PRESENTED BY AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT; AND 4) BASE SALARY AND INCENTIVE RECOMMENDATIONS. THE INDEPENDENT THIRD-PARTY CONSULTANT CONDUCTS AND PRESENT A REASONABLENESS REVIEW OF BOTH BASE SALARY AND TOTAL COMPENSATION FOR THE CEO AND KEY EXECUTIVES. THE COMMITTEE DISCUSSES, DELIBERATES, AND APPROVES BASE SALARY AND INCENTIVE COMPENSATION RECOMMENDATIONS. RESULTS ARE REPORTED TO THE MMC BOARD.

Disregarded entities

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

• MERITUS HOLDINGS LLC

  HEALTH SERVICE · MD · income $18,353 · assets $139,091

  Directly controlled by MMC

• MERITUS URGENT CARE LLC

  HEALTH SERVICE · MD · income -$568,295 · assets $9,447,180

  Directly controlled by MERITUS HOLDINGS LLC

• MERITUS MEDICAL LAB LLC

  HEALTH SERVICE · MD · income $1,708,561 · assets $3,481,001

  Directly controlled by MERITUS HOLDINGS LLC

• HEALTH WORK LLC

  HEALTH SERVICE · MD · income -$256,399 · assets $983,081

  Directly controlled by MERITUS HOLDINGS LLC

• MEDICAL PRACTICES OF ANTIETAM LLC

  HEALTH SERVICE · MD · income -$25,154,479 · assets $10,266,228

  Directly controlled by MERITUS HOLDINGS LLC

• MERITUS HEALTH ACO LLC

  HEALTH SERVICE · MD · income -$249,603 · assets -$12,607

  Directly controlled by MMC

• TRI-STATE HEALTH PARTNERS INC

  HEALTH SERVICE · MD · income $0 · assets $0

  Directly controlled by MMC

Related corporations and trusts

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

• MERITUS INSURANCE COMPANY LTD

  CAPTIVE INSURANCE · CJ · 100% owned · share of assets $18,586,797 · controlled entity

• MERITUS ENTERPRISES INC

  C · HEALTH SERVICES · MD · 100% owned · share of income $5,702,385 · share of assets $26,712,370 · controlled entity