Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $223,645

• 1e · Government grants (contributions)

  $212,820

• 2a · Program service revenue: INPATIENT AND OUTPATIENT REVENUES

  total $621,476,066 · related or exempt $621,118,598 · unrelated business $357,468

• 2b · Program service revenue: DAKOTA CLINIC PHARMACY INVESTMENT

  total $315,809 · related or exempt $315,809

• 2c · Program service revenue: PARK RAPIDS AREA INVESTMENT

  total $223,356 · related or exempt $223,356

• 3 · Investment income

  total $11,518 · unrelated business $640 · excluded $10,878

• 6a · Gross rents

  real property $1,079,489 · personal property $393,561

• 6b · Less rental expenses

  real property $0 · personal property $154,685

• 6c · Rental income or loss

  real property $1,079,489 · personal property $238,876

• 6d · Net rental income or loss

  total $1,318,365 · unrelated business $238,876 · excluded $1,079,489

• 7a · Gross sales of assets other than inventory

  securities $148,260 · other assets $121,647

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

  securities $145,490 · other assets $508,582

• 7c · Gain or loss

  securities $2,770 · other assets -$386,935

• 7d · Net gain or loss

  total -$384,165 · excluded -$384,165

• 10a · Gross sales of inventory

  $251,433

• 10b · Cost of goods sold

  $135,929

• 10c · Net income from sales of inventory

  total $115,504 · unrelated business $91,835 · excluded $23,669

• 11a · Other revenue: CAFETERIA & VENDING SALES

  total $1,843,068 · excluded $1,843,068

• 11b · Other revenue: RELEASE OF INFORMATION

  total $41,988 · excluded $41,988

• 11c · Other revenue: GAIN ON LEASE TERMINATION

  total $7,092 · excluded $7,092

• 11d · All other revenue

  total $778 · excluded $778

• 11e · Other revenue, total

  $1,892,926

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $848,506 · program services $848,506

• 2 · Grants to domestic individuals

  total $73,000 · program services $73,000

• 5 · Compensation of officers, directors and key employees

  total $5,146,237 · program services $1,206,119 · management and general $3,940,118

• 6 · Compensation of disqualified persons

  total $2,633 · program services $2,633

• 7 · Other salaries and wages

  total $252,187,316 · program services $242,905,699 · management and general $9,281,617

• 8 · Pension plan contributions

  total $10,540,222 · program services $10,094,464 · management and general $445,758

• 9 · Other employee benefits

  total $25,636,115 · program services $23,701,123 · management and general $1,934,992

• 10 · Payroll taxes

  total $15,051,821 · program services $14,331,679 · management and general $720,142

• 11b · Fees: legal

  total $935 · management and general $935

• 11c · Fees: accounting

  total $2,682 · management and general $2,682

• 11d · Fees: lobbying

  total $8,370 · management and general $8,370

• 11f · Fees: investment management

  total $39,685 · management and general $39,685

• 11g · Fees: other

  total $42,575,954 · program services $35,747,524 · management and general $6,828,430

• 12 · Advertising and promotion

  total $655,457 · program services $186,865 · management and general $468,592

• 13 · Office expenses

  total $17,095,789 · program services $13,427,522 · management and general $3,668,267

• 14 · Information technology

  total $14,575,664 · program services $14,039,215 · management and general $536,449

• 16 · Occupancy

  total $7,756,315 · program services $7,470,848 · management and general $285,467

• 17 · Travel

  total $1,640,825 · program services $1,472,363 · management and general $168,462

• 19 · Conferences, conventions and meetings

  total $415,858 · program services $133,777 · management and general $282,081

• 20 · Interest

  total $8,450,812 · program services $8,450,812

• 22 · Depreciation, depletion and amortization

  total $21,883,277 · program services $21,077,875 · management and general $805,402

• 23 · Insurance

  total $6,251,886 · program services $6,197,751 · management and general $54,135

• 24a · Other expenses: MEDICAL SUPPLIES

  total $106,439,147 · program services $106,439,147

• 24b · Other expenses: UNRELATED BUSINESS TAX

  total $49,712 · management and general $49,712

• 24c · Other expenses: AFFILIATE SUPPORT FEE

  total $56,153,860 · program services $27,510,285 · management and general $28,643,575

• 24d · Other expenses: BAD DEBT EXPENSE

  total $31,678,425 · program services $31,678,425

• 24e · All other expenses

  total $947,410 · program services $5,024,276 · management and general -$4,076,866

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $20,423 · end of year $4,183,220

• 2 · Savings and temporary cash investments

  beginning of year $117,109 · end of year $72,668

• 4 · Accounts receivable

  beginning of year $59,794,886 · end of year $69,001,265

• 7 · Other notes and loans receivable

  beginning of year $3,628,534 · end of year $4,090,419

• 8 · Inventories for sale or use

  beginning of year $12,465,781 · end of year $12,412,089

• 9 · Prepaid expenses and deferred charges

  beginning of year $5,768,716 · end of year $5,495,749

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

  $445,027,634

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

  $240,928,383

• 10c · Land, buildings and equipment, net

  beginning of year $216,837,702 · end of year $204,099,251

• 12 · Investments: other securities

  beginning of year $308,795 · end of year $516,652

• 13 · Investments: program-related

  beginning of year $2,479,252 · end of year $2,384,667

• 14 · Intangible assets

  beginning of year $9,140,362 · end of year $7,800,897

• 15 · Other assets

  beginning of year $10,066,053 · end of year $10,647,268

• 17 · Accounts payable and accrued expenses

  beginning of year $59,776,211 · end of year $61,987,147

• 19 · Deferred revenue

  beginning of year $28,174 · end of year $38,523

• 20 · Tax-exempt bond liabilities

  beginning of year $126,627,709 · end of year $123,177,388

• 23 · Secured mortgages and notes payable

  beginning of year $123,150,347 · end of year $120,812,051

• 25 · Other liabilities

  beginning of year $41,662,318 · end of year $45,932,714

• 27 · Net assets without donor restrictions

  beginning of year -$30,617,146 · end of year -$31,243,678

The filer's explanations (Part III)

PART I, LINE 1A

BENEFITS PROVIDED: DURING CALENDAR YEAR 2023, CHARTER TRAVEL WAS USED BY ONE DIRECTOR, TWO OFFICERS, THREE KEY EMPLOYEES, AND ONE FORMER OFFICER FOR TRAVEL BETWEEN ESSENTIA HEALTH WEST AND OTHER ORGANIZATIONS. THE USE OF CHARTER TRAVEL IS NOT TREATED AS TAXABLE COMPENSATION TO THESE INDIVIDUALS AS ALL TRAVEL WAS BUSINESS RELATED. DURING CALENDAR YEAR 2023, OFFICER MARK THOMPSON, MD RECEIVED A HOUSING ALLOWANCE. THIS BENEFIT WAS TREATED AS TAXABLE COMPENSATION.

PART I, LINE 3

ESTABLISHING CEO'S COMPENSATION: ESSENTIA HEALTH, AS A RELATED ORGANIZATION, USED THE FOLLOWING METHODS TO ESTABLISH ESSENTIA HEALTH WEST'S PRESIDENT'S COMPENSATION: A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINES 4A-B

SEVERANCE PAYMENT: KEY EMPLOYEE RAE SALUS RECEIVED PAYMENTS TOTALING $157,542 IN CALENDAR YEAR 2023 RELATED TO A TERMINATION AGREEMENT. UNDER THE TERMS OF THE AGREEMENT, SALUS WILL RECEIVE PAY TOTALING $480,012 & BENEFITS TOTALING $17,362 FROM JUNE 20, 2023 TO DECEMBER 20, 2024. ALL OTHER INDIVIDUALS LISTED AS FORMERS IN FORM 990, PART VII, SECTION A, LINE 1A DID NOT RECEIVE A SEVERANCE PAYMENT DURING CALENDAR YEAR 2023. SOME OF THESE INDIVIDUALS REMAIN EMPLOYED WITHIN ESSENTIA HEALTH AND ITS SUBSIDIARIES. 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 $79,902 RICHARD VETTER, MD $52,278 AL HURLEY $195,546 MICHAEL WATTERS $33,314 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: WILLIAM HEEGAARD, MD $103,603 TRACI MORRIS $97,190 RICHARD VETTER, MD $63,976 AL HURLEY $59,141 ROBERT GREEN $74,569 MICHAEL WATTERS $68,732 TANNER GOODRICH $39,935 MARK THOMPSON, MD $37,334

PART I, LINE 8

INITIAL CONTRACT EXCEPTION: ESSENTIA HEALTH WEST'S VICE PRESIDENT OF FINANCE, DOUG ARVIN, ITS PRESIDENT, MARK THOMPSON, MD, AND ITS CHIEF NURSING OFFICER, MICHELLE STENBECK, RECEIVED COMPENSATION DURING THE YEAR UNDER INITIAL EMPLOYMENT AGREEMENTS SUBJECT TO THE INITIAL CONTRACT EXCEPTION. THROUGH THE ESSENTIA HEALTH EXECUTIVE COMPENSATION COMMITTEE, THESE COMPENSATION ARRANGEMENTS WERE REVIEWED AND APPROVED BY INDEPENDENT PERSONS USING COMPARABILITY DATA; DELIBERATIONS AND DECISIONS WERE DOCUMENTED.

Related corporations and trusts

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

• ESSENTIA HEALTH INSURANCE SERVICES SPC LTD

  C · SELF INSURANCE · CJ · controlled entity

• MID DAKOTA CLINIC INC

  C · CLINIC OPERATIONS CEASED 9/30/22 · ND · 100% owned · share of assets $146,277 · controlled entity

  Directly controlled by INNOVIS HEALTH LLC