Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $2,038

• 2a · Program service revenue: PATIENT REVENUE

  total $147,694,028 · related or exempt $147,694,028

• 2b · Program service revenue: HOSPITAL RATE IMPROVEMENT PROGRAM

  total $39,401,160 · related or exempt $39,401,160

• 2c · Program service revenue: PHARMACY

  total $20,772,271 · related or exempt $19,319,906 · unrelated business $1,452,365

• 2d · Program service revenue: TRANSCRIPT FEES

  total $7,739 · related or exempt $7,739

• 3 · Investment income

  total $3,847,221 · excluded $3,847,221

• 6a · Gross rents

  real property $685,364

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $685,364

• 6d · Net rental income or loss

  total $685,364 · excluded $685,364

• 7a · Gross sales of assets other than inventory

  securities $2,885,117

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

  securities $0

• 7c · Gain or loss

  securities $2,885,117

• 7d · Net gain or loss

  total $2,885,117 · excluded $2,885,117

• 11a · Other revenue: CAFETERIA INCOME

  total $2,370,179 · excluded $2,370,179

• 11b · Other revenue: MISCELLANEOUS

  total $195,034 · related or exempt $183,556 · unrelated business $11,478

• 11e · Other revenue, total

  $2,565,213

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $48,033 · program services $48,033

• 7 · Other salaries and wages

  total $63,414,764 · program services $63,190,803 · management and general $223,961

• 8 · Pension plan contributions

  total $1,246,280 · program services $1,237,508 · management and general $8,772

• 9 · Other employee benefits

  total $13,622,985 · program services $13,602,552 · management and general $20,433

• 10 · Payroll taxes

  total $3,886,518 · program services $3,870,300 · management and general $16,218

• 11b · Fees: legal

  total $55 · program services $55

• 11c · Fees: accounting

  total $4,015 · program services $4,015

• 11d · Fees: lobbying

  total $2,250 · program services $2,250

• 11g · Fees: other

  total $24,857,640 · program services $24,213,341 · management and general $644,299

• 12 · Advertising and promotion

  total $8,511 · program services $1,554 · management and general $6,957

• 13 · Office expenses

  total $16,308,155 · program services $16,283,344 · management and general $24,811

• 14 · Information technology

  total $324,825 · program services $324,825

• 16 · Occupancy

  total $5,998,769 · program services $5,998,769

• 17 · Travel

  total $123,500 · program services $123,500

• 19 · Conferences, conventions and meetings

  total $184,709 · program services $184,709

• 20 · Interest

  total $420,625 · program services $3,695 · management and general $416,930

• 22 · Depreciation, depletion and amortization

  total $3,362,327 · program services $3,362,327

• 23 · Insurance

  total $4,693,216 · program services $3,461,197 · management and general $1,232,019

• 24a · Other expenses: MEDICAL SUPPLIES & PHAR

  total $24,861,906 · program services $24,551,281 · management and general $310,625

• 24b · Other expenses: BAD DEBT

  total $10,950,988 · program services $10,950,988

• 24c · Other expenses: PROVIDER TAXES

  total $9,227,941 · program services $6,966,782 · management and general $2,261,159

• 24d · Other expenses: RECRUITMENT

  total $859,559 · program services $111,008 · management and general $748,551

• 24e · All other expenses

  total $18,323,070 · program services $494,585 · management and general $17,828,485

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $773,208 · end of year $362,407

• 2 · Savings and temporary cash investments

  beginning of year $853,246 · end of year $937,686

• 4 · Accounts receivable

  beginning of year $15,543,610 · end of year $21,412,596

• 8 · Inventories for sale or use

  beginning of year $4,131,330 · end of year $4,143,187

• 9 · Prepaid expenses and deferred charges

  beginning of year $748,551 · end of year $13,270,773

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

  $133,739,202

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

  $94,344,180

• 10c · Land, buildings and equipment, net

  beginning of year $33,333,677 · end of year $39,395,022

• 11 · Investments: publicly traded securities

  beginning of year $1,095,803 · end of year $1,293,972

• 13 · Investments: program-related

  beginning of year $2,101,182 · end of year $178,249

• 14 · Intangible assets

  beginning of year $330,229 · end of year $330,229

• 15 · Other assets

  beginning of year $26,699,168 · end of year $35,183,493

• 17 · Accounts payable and accrued expenses

  beginning of year $14,338,366 · end of year $9,398,737

• 23 · Secured mortgages and notes payable

  beginning of year $7,933,570 · end of year $7,598,414

• 25 · Other liabilities

  beginning of year $7,530,350 · end of year $12,324,273

• 27 · Net assets without donor restrictions

  beginning of year $55,807,718 · end of year $87,186,190

The filer's explanations (Part III)

PART I, LINE 4B

THE RELATED ORGANIZATION, ARH, PROVIDES SENIOR EXECUTIVES A CONTRIBUTION 3, 5, OR 7 PERCENT OF PAY (SUBJECT TO DOLLAR CAP), DEPENDING ON JOB TITLE, INTO THE TOP HAT 457(B) RETIREMENT PLAN. THE CONTRIBUTION AND EARNINGS ARE TAX DEFERRED UNTIL ASSETS ARE DISTRIBUTED OR WITHDRAWN. THE MAXIMUM CONTRIBUTION IS SUBJECT TO THE IRS COMPENSATION CAP, WHICH ALLOWS A CONTRIBUTION OF UP TO $22,500 IN 2023. THIS CONTRIBUTION TOTAL IS AN AGGREGATE TOTAL REGARDLESS OF WHETHER ARH OR THE EXECUTIVE MAKES THE CONTRIBUTION. CONTRIBUTION TO THE 457(B) DOES NOT AFFECT THE AMOUNTS THE EXECUTIVE MIGHT CONTRIBUTE TO THE 403(B)-THRIFT PLAN. THE EXECUTIVE MAY CONTRIBUTE HIS/HER OWN MONEY TO THE PLAN PRE-TAX, TO THE EXTENT THE IRS CAPS ALLOW ROOM AFTER ARH'S CONTRIBUTION. CATCH UP CONTRIBUTIONS ARE ALLOWED WITHIN IRS LIMITS IN THE LAST THREE YEARS PRIOR TO RETIREMENT (AND, IF THE 3, 5 OR 7 PERCENT OF PAY EXCEEDS THE REGULAR DOLLAR CAP, ARH MAY USE THE BALANCE OF THE PERCENTAGE TO FUND UP THE CATCH-UP LIMIT). BENEFITS ARE SUBJECT TO SOCIAL SECURITY AND MEDICARE TAXES AS THEY ACCRUE. THE FUNDS ARE INVESTED AS DIRECTED BY THE EXECUTIVE, BUT THE ACCOUNT REMAINS A GENERAL ASSET OF ARH. IF ARH BECOMES INSOLVENT, THE EXECUTIVE WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. IF THE FUNDING OF THE 457(B), INCLUDING ANY CATCH-UP PROVISIONS, IS LESS THAN THE 3,5 OR 7 PERCENT OF BASE PAY, THEN ARH WILL CONTRIBUTE THE REMAINDER TO A 457(F) PLAN. INDIVIDUALS PARTICIPATING IN THE 457(F) PLAN AND THE RESPECTIVE EMPLOYER CONTRIBUTIONS FOR EACH INCLUDE: HOLLIE HARRIS - $39,240; BYRON GABBARD - $7,022.50.

PART I, LINE 6

THE COMPENSATION AND CONTRACTS COMMITTEE OF THE RELATED ORGANIZATION (APPALACHIAN REGIONAL HEALTHCARE, INC. - 52-0795508) ("ARH") BOARD OF TRUSTEES ADOPTED A SHORT-TERM INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVES IN SEPTEMBER 2002. THE PROGRAM ESTABLISHED INCENTIVES FOR ACHIEVING SYSTEM AND COMMUNITY OBJECTIVES FOR EXECUTIVE LEADERSHIP BY INTEGRATING THE PERFORMANCE MANAGEMENT AND EXECUTIVE COMPENSATION SYSTEMS. THE INCENTIVE THRESHOLDS HAVE BEEN MODIFIED ACROSS TIME TO REFLECT INCREASED PERFORMANCE EXPECTATIONS AS IDENTIFIED IN THE SYSTEM'S STRATEGIC, BUDGET AND OPERATIONS PLAN. THE INCENTIVE AWARDS PROVIDE ADDITIONAL CASH COMPENSATION AS A PERCENTAGE OF BASE SALARY IN RELATION TO LEVELS OF ACHIEVEMENT. THESE ACHIEVEMENT LEVELS RANGE FROM THRESHOLD (LOWEST), TO TARGET (10% ABOVE THE THRESHOLD), AND MAXIMUM (HIGHEST AND 20% ABOVE THE THRESHOLD) AND VARY BASED UPON EXECUTIVE LEVEL. THE EXECUTIVE INCENTIVE PLAN WILL BE ADMINISTERED IN ACCORDANCE WITH THE FOLLOWING GUIDELINES: A. OBJECTIVES AND TARGETS ARE SET THROUGH THE STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT PROCESSES. B. SYSTEM MARGIN AND CASH BUDGET THRESHOLDS MUST BE MET BEFORE INDIVIDUAL AWARDS WILL BE CONSIDERED. C. AWARDS WILL BE CONSIDERED AS HAVING BEEN EARNED UPON AFFIRMATION BASED ON AUDITED FINANCIAL RESULTS AND ACTUAL OPERATING PERFORMANCE. D. THE PRESIDENT AND CEO WILL RECOMMEND PAYMENT OF INDIVIDUAL AWARDS, IF ANY, TO THE COMPENSATION AND CONTRACTS COMMITTEE FOR CONSIDERATION. E. THE COMPENSATION AND CONTRACTS COMMITTEE MAY ACCEPT, REJECT, OR MODIFY THE PRESIDENT AND CEO'S RECOMMENDATION.

Disregarded entities

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

• HOMETOWN FAMILY CARE PLLC

  MEDICAL SERVICES · KY · income $0 · assets $0

  Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC

Related partnerships

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

• HIGHLANDS MEDICAL PARTNERS II

  MEDICAL SERVICES · KY · 100% owned

  Directly controlled by ARH TUG VALLEY HEALTH SERVICES INC