Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $73,617

• 2a · Program service revenue: NET PATIENT SERVICE REVENUE

  total $102,720,814 · related or exempt $102,720,814

• 2b · Program service revenue: OTHER PROGRAM SERVICE REVENUE

  total $222,733 · related or exempt $222,733

• 2c · Program service revenue: PREMIUM & CAPITATION REVENUE

  total $1,707 · related or exempt $1,707

• 3 · Investment income

  total $13,931 · excluded $13,931

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

  other assets $3,816,948

• 7c · Gain or loss

  other assets -$3,816,948

• 7d · Net gain or loss

  total -$3,816,948 · excluded -$3,816,948

• 10a · Gross sales of inventory

  $52,794

• 10b · Cost of goods sold

  $20,319

• 10c · Net income from sales of inventory

  total $32,475 · excluded $32,475

• 11a · Other revenue: CAFE/VENDING

  total $6,702 · excluded $6,702

• 11b · Other revenue: MISCELLANEOUS

  total $1,483 · excluded $1,483

• 11e · Other revenue, total

  $8,185

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $2,116,024 · program services $2,116,024

• 5 · Compensation of officers, directors and key employees

  total $970,559 · program services $794,014 · management and general $176,545

• 7 · Other salaries and wages

  total $35,347,730 · program services $28,917,978 · management and general $6,429,752

• 8 · Pension plan contributions

  total $2,350,930 · program services $1,923,296 · management and general $427,634

• 9 · Other employee benefits

  total $5,015,375 · program services $4,103,078 · management and general $912,297

• 10 · Payroll taxes

  total $2,574,398 · program services $2,106,115 · management and general $468,283

• 11a · Fees: management

  total $956,565 · program services $782,566 · management and general $173,999

• 11g · Fees: other

  total $20,349,966 · program services $20,349,966

• 12 · Advertising and promotion

  total $12,698 · program services $10,388 · management and general $2,310

• 13 · Office expenses

  total $3,719,986 · program services $3,043,321 · management and general $676,665

• 14 · Information technology

  total $88,068 · program services $72,048 · management and general $16,020

• 16 · Occupancy

  total $2,976,302 · program services $2,434,913 · management and general $541,389

• 17 · Travel

  total $146,193 · program services $119,600 · management and general $26,593

• 19 · Conferences, conventions and meetings

  total $7,010 · program services $5,735 · management and general $1,275

• 20 · Interest

  total $47 · program services $38 · management and general $9

• 22 · Depreciation, depletion and amortization

  total $4,319,716 · program services $3,533,960 · management and general $785,756

• 23 · Insurance

  total $809,370 · program services $662,146 · management and general $147,224

• 24a · Other expenses: MEDICAL SUPPLIES

  total $19,511,284 · program services $19,511,284

• 24b · Other expenses: SENTARA SERVICE EXPENSE

  total $18,975,236 · management and general $18,975,236

• 24c · Other expenses: TAXES & LICENSES

  total $6,080,557 · program services $6,074,454 · management and general $6,103

• 24d · Other expenses: PURCHASED SERVICES

  total $2,354,204 · program services $1,925,974 · management and general $428,230

• 24e · All other expenses

  total $159,500 · program services $130,487 · management and general $29,013

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $93,557 · end of year $102,498

• 4 · Accounts receivable

  beginning of year $15,032,776 · end of year $15,079,522

• 7 · Other notes and loans receivable

  beginning of year $55,422 · end of year $12,376

• 8 · Inventories for sale or use

  beginning of year $3,045,118 · end of year $2,103,729

• 9 · Prepaid expenses and deferred charges

  beginning of year $713,112 · end of year $691,977

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

  $71,290,551

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

  $41,933,680

• 10c · Land, buildings and equipment, net

  beginning of year $34,101,898 · end of year $29,356,871

• 14 · Intangible assets

  beginning of year $2,429,911 · end of year $2,444,670

• 15 · Other assets

  beginning of year $259,730 · end of year $1,228,859

• 17 · Accounts payable and accrued expenses

  beginning of year $7,585,059 · end of year $6,445,400

• 19 · Deferred revenue

  beginning of year $41,227 · end of year $41,227

• 25 · Other liabilities

  beginning of year $12,394,492 · end of year $5,871,694

• 27 · Net assets without donor restrictions

  beginning of year $34,445,552 · end of year $37,412,751

• 28 · Net assets with donor restrictions

  beginning of year $1,265,194 · end of year $1,249,430

The filer's explanations (Part III)

PART I, LINE 3

SENTARA HEALTH, THE 501(C)(3) TAX EXEMPT PARENT OF THE SENTARA HEALTH SYSTEM, ESTABLISHED THE COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL USING AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION STUDY. SENTARA HEALTH RECOGNIZES THAT PROVIDING THE BEST POSSIBLE CARE REQUIRES US TO ATTRACT AND RETAIN THE VERY BEST EMPLOYEES. OUR ORGANIZATION IS COMMITTED TO INVESTING IN OUR PEOPLE BY OFFERING COMPETITIVE COMPENSATION OPPORTUNITIES AND A STRONG WORKPLACE ENVIRONMENT.

PART I, LINE 4B

MICHAEL GENTRY, MEGAN PERRY, JOANNE INMAN, PAUL GADEN, AND BRIAN ZWOYER PARTICIPATED IN THE SENTARA CAPITAL ACCUMULATION ACCOUNT PLAN. THE CAPITAL ACCUMULATION PLAN IS A NONQUALIFIED DEFERRED COMPENSATION PROGRAM. SUCH PLANS ARE COMMONLY OFFERED TO NOT-FOR-PROFIT HEALTH CARE EXECUTIVES TO PROVIDE ADDITIONAL RETIREMENT BENEFITS TO SUPPLEMENT LIMITATIONS IN QUALIFIED PLANS. PARTICIPATION IS LIMITED TO A SELECT GROUP OF CORPORATE EXECUTIVES AS APPROVED BY SENTARA HEALTH'S BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. TERMS OF THE PLAN CHANGED EFFECTIVE JANUARY 1, 2009, WHEREBY VESTING OF CONTRIBUTIONS MADE ON OR AFTER THAT DATE NOW OCCURS ON THE EARLIER OF FIVE YEARS FOR EACH YEARS' CONTRIBUTIONS OR AGE 55 WITH 10 YEARS OF SERVICE. EFFECTIVE JANUARY 1, 2023, VESTING OF CONTRIBUTIONS EXPANDED TO INCLUDE AGE 60 WITH 5 YEARS OF SERVICE FROM THE DATE OF HIRE, OR AGE 65 WITH 2 YEARS OF SERVICE FROM THE CAA PLAN ENTRY DATE. UNDER THE OLD TERMS, VESTING OF CONTRIBUTIONS MADE PRIOR TO JANUARY 1, 2009 OCCURS ON THE EARLIEST OF ASSIGNED DISTRIBUTION DATE, DEATH, INVOLUNTARY TERMINATION WITHOUT CAUSE OR COMPLETION OF TWO-YEAR NON-COMPETE AFTER VOLUNTARY TERMINATION (REGARDLESS OF ORIGINAL ASSIGNED DISTRIBUTION DATE). FICA AND FUTA TAXATION OF PRE-2009 CONTRIBUTIONS MAY OCCUR EARLIER THAN FEDERAL INCOME TAXATION IN ACCORDANCE WITH APPLICABLE LAW. DURING 2023, THE FOLLOWING CORPORATE EXECUTIVES RECEIVED TAXABLE DISTRIBUTIONS UNDER THE PLAN: MICHAEL GENTRY ($170,140); MEGAN PERRY ($104,772); AND JOANNE INMAN ($23,802). THESE AMOUNTS HAVE BEEN REPORTED IN COLUMN (B)(III) OF SCHEDULE J, PART II.

PART I, LINE 7

DURING THE CURRENT TAX YEAR, THE ORGANIZATION MADE NON-FIXED PAYMENTS OF COMPENSATION UNDER THE FOLLOWING INCENTIVE PROGRAMS: ANNUAL INCENTIVE PROGRAM - EXECUTIVES AND SENIOR LEADERS ARE ELIGIBLE FOR ANNUAL AWARDS BASED ON SYSTEM AND INDIVIDUAL PERFORMANCE. BOTH SYSTEM AND INDIVIDUAL SCORES ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. TARGET AND MAXIMUM OPPORTUNITIES VARY BY LEVEL. MANAGER INCENTIVE PLAN - MANAGEMENT EMPLOYEES NOT COVERED UNDER ANOTHER INCENTIVE PLAN ARE ELIGIBLE FOR THE MANAGEMENT INCENTIVE PLAN. AWARDS ARE BASED ON SYSTEM YEAR-END RESULTS AND THE MANAGER'S INDIVIDUAL PERFORMANCE SCORE. SYSTEM, BUSINESS UNIT, AND INDIVIDUAL RESULTS ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. PHYSICIAN PERFORMANCE INCENTIVE - AN INCENTIVE DESIGNED TO ENCOURAGE AND RECOGNIZE THE CONTRIBUTIONS AND STEWARDSHIP OF PHYSICIANS IN SENTARA'S INTEGRATED DELIVERY SYSTEM. AWARDS ARE BASED ON THE ACHIEVEMENT OF CLINICAL QUALITY, PATIENT SATISFACTION, FISCAL RESPONSIBILITY AND SYSTEM ALIGNMENT GOALS. YEAR-END BONUS PAYMENTS - EMPLOYEES WHO ARE NOT COVERED UNDER ANOTHER INCENTIVE PROGRAM ARE ELIGIBLE FOR YEAR-END BONUSES WHICH ARE CONDITIONED UPON SYSTEM YEAR-END RESULTS.

PART I LINE 4

CERTAIN SENIOR EXECUTIVES OF THE SENTARA HEALTH SYSTEM ARE COVERED BY THE SENTARA HEALTH EXECUTIVE CHANGE IN CONTROL AND SEVERANCE BENEFIT PLAN. THE PLAN PROVIDES FOR SPECIFIED SEVERANCE PAY AND BENEFITS IN THE EVENT OF INVOLUNTARY TERMINATION OF EMPLOYMENT THAT OCCURS: (1) IN THE ORDINARY COURSE OF EMPLOYMENT OR (2) WITHIN TWO YEARS FOLLOWING A QUALIFYING CHANGE IN CONTROL TO ELIGIBLE INDIVIDUALS AS DEFINED IN THE PLAN. PLAN BENEFITS VARY BASED UPON AN ELIGIBLE INDIVIDUAL'S TIER LEVEL AND WHETHER THE TERMINATION IS OR IS NOT WITHIN TWO YEARS FOLLOWING A CHANGE IN CONTROL, BUT GENERALLY RANGE BETWEEN 12-18 MONTHS. THE PLAN IS UNFUNDED AND DESIGNED AS AN ERISA TOP HAT WELFARE BENEFIT PLAN. INDIVIDUALS THAT ARE NOT ELIGIBLE TO PARTICIPATE IN THE PLAN MAY BE COVERED UNDER INDIVIDUAL ARRANGEMENTS DEPENDING ON POSITION AND QUALIFYING CIRCUMSTANCES.

Disregarded entities

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

• HALIFAX REGIONAL PROFESSIONAL SERVICES LLC

  PHYSN SUBSIDY · VA · income $0 · assets $0

  Directly controlled by HALIFAX REGIONAL HOSPITAL INC

Related partnerships

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

• MANAGEMENT SERVICES LLC

  HLTH MGT SV · VA

• OBICI REAL ESTATE HOLDINGS LLC

  RE RENTAL · VA

• PRINCESS ANNE AMB SURG MGT LLC

  HEALTHCARE · VA

• VA BEACH AMBULATORY SURGERY CENTER

  HEALTHCARE · VA

• CANCER CENTERS OF VA LLC

  HEALTHCARE · VA

• HAMPTON ROADS LITHOTRIPSY LLC

  HEALTHCARE · VA

• RADIOLOGY SERVICES OF HAMPTON ROADS LC

  HEALTHCARE · VA

• SENTARA OBICI AMBULATORY SURGERY LLC

  HEALTHCARE · VA

• POTOMAC INOVA HEALTHCARE ALLIANCE LLC

  HEALTHCARE · VA

• CAREPLEX ORTHOPAEDIC ASC LLC

  HEALTHCARE · VA

• PHYSICAL THERAPY ACACLLC

  HEALTHCARE · VA

• MNS SUPPLY CHAIN NETWORK LLC

  GPO · DE

• LAKE RIDGE AMBULATORY SURGERY CENTER LLC

  HEALTHCARE · VA

• CAHABA PARTNERS CORE FIXED INCOME FUND

  POOLED INV FD · DE

• CAHABA PARTNERS PUBLIC INFLATION HEDGES FD

  POOLED INV FD · DE

• LEIGH ORTHOPEDIC SURGERY CENTER LLC

  HEALTHCARE · VA

• SURGICAL SUITES OF COASTAL VIRGINIA LLC

  HEALTH CARE · VA

• PORT WARWICK SURGERY CENTER LLC

  HEALTH CARE · VA

• CAHABA PARTNERS EQUITY PLUS FUND

  POOLED INV FD · DE

• CAHABA PARTNERS TACTICAL EQUITY FUND

  POOLED INV FD · DE

• HA INTL EQUITY CEF FD CL-A

  POOLED INV FD · DE

Related corporations and trusts

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

• SENTARA HOLDINGS INC

  C · HOLDING COMPANY · VA · controlled entity

• SENTARA HEALTH ADMINISTRATION INC

  C · TPA · VA · controlled entity

• OPTIMA HEALTH GROUP INC

  C · HMO · VA · controlled entity

• SENTARA HEALTH INSURANCE COMPANY

  C · HEALTH INSURANCE · VA · controlled entity

• SENTARA BEHAVIORAL HEALTH SERVICES

  C · MENTAL HEALTH SVCS · VA · controlled entity

• SENTARA VENTURES INC

  C · HOLDING COMPANY · VA · controlled entity

• SENTARA HEALTH INSURANCE CO OF NC

  C · HEALTH INSURANCE · NC · controlled entity

• SENTARA HEALTH PLANS OF NC INC

  C · TPA · NC · controlled entity

• MANAGED CARE SERVICES INC

  C · ALT HEALTH DELIVERY · VA · controlled entity

• SENTARA SOUTHSIDE HEALTH SERVICES INC

  C · HEALTH SERVICES · VA · 100% owned · share of income $11,539 · share of assets $2,802,459 · controlled entity

  Directly controlled by HALIFAX REGIONAL HOSPITAL INC

• DOMINION HEALTH MEDICAL ASSOCIATES LTD

  C · PHYS PRACTICE · VA · 100% owned · share of income $4,092,653 · share of assets $3,442,491 · controlled entity

  Directly controlled by HALIFAX REGIONAL PROFESSIONAL SERVICES LLC

• SMG INNOVATIONS INC

  C · HEALTHCARE · VA · controlled entity

• POTOMAC VENTURES CORP

  C · HOLDING COMPANY · VA · controlled entity

• ROCKINGHAM HEALTH SERVICES INC

  C · CONTRACTING SVCS · VA · controlled entity

• MARTHA JEFFERSON MEDICAL ENTERPRISES INC

  C · MEDICAL BILLING SVCS · VA · controlled entity

• BAY PRIMEX INSURANCE COMPANY LTD

  C · OTHER INSURANCE FUNDS · CJ · controlled entity

• ALBEMARLE PHYSICIAN SERVICES-SENTARA INC

  C · PHYS PRACTICE · NC · controlled entity

• THE PORT WARWICK MEDICAL ARTS BUILDING ASSOCIATION

  C · BUILDING ASSOCIATION · VA · controlled entity

• MEDSTREAMING EGYPT SOFTWARE

  C · CONSULTING · EG · controlled entity

• CAHABA PARTNERS TOTAL RETURN FUND LTD

  C · POOLED INV FD · CJ

• FIVOS INC

  C · HEALTHCARE IT · DE · controlled entity

• MEDICAL METRX HOLDING INC

  C · HOLDING COMPANY · DE · controlled entity

• M2S INC

  C · DATA COLLECTION/AGGREGATION · DE · controlled entity

• AVMED ADMINISTRATORS INC

  C · TPA SERVICES · FL · controlled entity