Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $173,529

• 1e · Government grants (contributions)

  $3,410,442

• 1f · All other contributions, gifts and grants

  $16,323

• 2a · Program service revenue: MEDICARE/MEDICAID

  total $353,399,937 · related or exempt $353,399,937

• 2b · Program service revenue: PATIENT REVENUE-OTHER INS

  total $336,338,528 · related or exempt $336,338,528

• 2c · Program service revenue: DSH/MEDICAID/UPL

  total $73,008,452 · related or exempt $73,008,452

• 2d · Program service revenue: REVENUE-OASF

  total $1,211,372 · related or exempt $1,211,372

• 2e · Program service revenue: REVENUE-OCHN

  total $146 · related or exempt $146

• 2f · All other program service revenue

  total $78,729 · related or exempt $78,729 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $10,517,893 · unrelated business $5,720 · excluded $10,512,173

• 6a · Gross rents

  real property $4,099,537

• 6b · Less rental expenses

  real property $1,382,256

• 6c · Rental income or loss

  real property $2,717,281 · personal property $0

• 6d · Net rental income or loss

  total $2,717,281 · unrelated business $1,106,333 · excluded $1,610,948

• 7a · Gross sales of assets other than inventory

  securities $178,085,448 · other assets $317,500

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

  securities $184,122,697

• 7c · Gain or loss

  securities -$6,037,249 · other assets $317,500

• 7d · Net gain or loss

  total -$5,719,749 · excluded -$5,719,749

• 10a · Gross sales of inventory

  $1,046,130

• 10b · Cost of goods sold

  $666,148

• 10c · Net income from sales of inventory

  total $379,982 · excluded $379,982

• 11a · Other revenue: CAFETERIA AND VENDING

  total $3,585,178 · excluded $3,585,178

• 11b · Other revenue: CALL CENTER

  total $571,870 · related or exempt $571,870

• 11c · Other revenue: VENDOR REBATES

  total $437,649 · related or exempt $437,649

• 11d · All other revenue

  total $1,572,963 · related or exempt $1,310,497 · unrelated business $262,466 · excluded $0

• 11e · Other revenue, total

  $6,167,660

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,889,023 · program services $1,889,023

• 2 · Grants to domestic individuals

  total $221,107 · program services $221,107

• 4 · Benefits paid to or for members

  total $0 · program services $0

• 5 · Compensation of officers, directors and key employees

  total $10,199,212 · program services $1,906,912 · management and general $8,292,299 · fundraising $0

• 6 · Compensation of disqualified persons

  total $131,933 · program services $131,933

• 7 · Other salaries and wages

  total $211,400,627 · program services $181,524,585 · management and general $29,876,042

• 8 · Pension plan contributions

  total $16,510,502 · program services $12,121,165 · management and general $4,389,337

• 9 · Other employee benefits

  total $20,464,448 · program services $16,514,445 · management and general $3,950,003

• 10 · Payroll taxes

  total $16,076,879 · program services $13,551,096 · management and general $2,525,783

• 11a · Fees: management

  total $7,664,398 · program services $4,898,904 · management and general $2,765,494

• 11b · Fees: legal

  total $2,069,462 · management and general $2,069,462

• 11c · Fees: accounting

  total $317,069 · management and general $317,069

• 11d · Fees: lobbying

  total $137,332 · management and general $137,332

• 11f · Fees: investment management

  total $668,873 · management and general $668,873

• 11g · Fees: other

  total $67,891,456 · program services $51,895,575 · management and general $15,995,881 · fundraising $0

• 12 · Advertising and promotion

  total $2,619,755 · program services $60,270 · management and general $2,559,485

• 13 · Office expenses

  total $12,571,790 · program services $5,553,150 · management and general $7,018,640

• 14 · Information technology

  total $18,118,582 · program services $14,482,156 · management and general $3,636,426

• 15 · Royalties

  total $350,826 · program services $257,781 · management and general $93,045

• 16 · Occupancy

  total $12,525,235 · program services $5,191,761 · management and general $7,333,474

• 17 · Travel

  total $763,768 · program services $498,046 · management and general $265,722

• 19 · Conferences, conventions and meetings

  total $121,282 · program services $96,921 · management and general $24,361

• 20 · Interest

  total $26,678,962 · management and general $26,678,962

• 22 · Depreciation, depletion and amortization

  total $35,010,816 · management and general $35,010,816

• 23 · Insurance

  total $2,180,625 · management and general $2,180,625

• 24a · Other expenses: MEDICAL SUPPLIES

  total $154,260,125 · program services $153,967,836 · management and general $292,289

• 24b · Other expenses: BAD DEBT

  total $34,687,511 · program services $34,687,511

• 24c · Other expenses: PROVIDER TAX

  total $19,462,892 · program services $19,462,892

• 24d · Other expenses: DIETARY PATIENT SUPPLIES

  total $3,658,819 · program services $3,526,881 · management and general $131,938

• 24e · All other expenses

  total $2,789,642 · program services $1,174,508 · management and general $1,615,134 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $17,333,966 · end of year $4,290,197

• 2 · Savings and temporary cash investments

  beginning of year $5,527,400 · end of year $5,475,826

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $811,035,773 · end of year $1,155,039,142

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $16,778,144 · end of year $15,323,039

• 9 · Prepaid expenses and deferred charges

  beginning of year $35,889,385 · end of year $25,547,298

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

  $998,497,179

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

  $529,533,912

• 10c · Land, buildings and equipment, net

  beginning of year $490,034,735 · end of year $468,963,267

• 11 · Investments: publicly traded securities

  beginning of year $299,662,477 · end of year $302,904,734

• 12 · Investments: other securities

  beginning of year $0

• 13 · Investments: program-related

  beginning of year $28,510,271 · end of year $27,917,301

• 14 · Intangible assets

  beginning of year $7,714,950 · end of year $5,898,208

• 15 · Other assets

  beginning of year $23,865,646 · end of year $24,135,738

• 17 · Accounts payable and accrued expenses

  beginning of year $104,289,669 · end of year $125,935,560

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $352,204 · end of year $150,428

• 20 · Tax-exempt bond liabilities

  beginning of year $555,567,309 · end of year $543,566,369

• 21 · Escrow or custodial account liability

  beginning of year $0 · end of year $0

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $0 · end of year $0

• 24 · Unsecured notes and loans payable

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $187,978,057 · end of year $378,564,417

• 27 · Net assets without donor restrictions

  beginning of year $888,165,508 · end of year $987,277,976

• 28 · Net assets with donor restrictions

  beginning of year $0 · end of year $0

• 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 $0 · end of year $0

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Tax indemnification and gross-up payments

THE ORGANIZATION PROVIDES A NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN FOR CERTAIN EXECUTIVE EMPLOYEES. BECAUSE BENEFITS UNDER THE SUPPLEMENTAL PLAN MUST BE INCLUDED IN TAXABLE INCOME WHEN THEY BECOME VESTED, AND AS REQUIRED BY THE SUPPLEMENTAL PLAN'S TERMS, THE ORGANIZATION PROVIDES AN ADDITIONAL BENEFIT THAT COVERS THE TAX LIABILITY WHEN IT IS INCURRED. THE TAX LIABILITY PAYMENTS ARE THEMSELVES INCLUDED IN W-2 INCOME IN THE YEAR MADE TO THE EXECUTIVES, AND ARE INCLUDED IN THE FIGURES DISCLOSED ON SCHEDULE J, PART II.

Schedule J, Part I, Line 1a Housing allowance or residence for personal use

THE ORGANIZATION PROVIDED HOUSING ALLOWANCE TO THE CEO OF OHI, COO OF OHRH AND VP OF OPERATIONS. THIS BENEFIT WAS INCLUDED AS A TAXABLE INCOME IN THE YEAR RECEIVED AND FULLY INCLUDED ON THE RECIPIENT'S FORM W-2.

Schedule J, Part I, Line 1a Health or social club dues or initiation fees

DURING THE REPORTING PERIOD, THE ORGANIZATION PAID MEMBERSHIP DUES IN A SOCIAL CLUB FOR THE CEO AND CMO OF OHI. THE CLUB MEMBERSHIP WAS USED FOR BUSINESS PURPOSES. ANY PERSONAL RELATED EXPENSES ARE TREATED AS TAXABLE WAGE INCOME AND FULLY INCLUDED ON THE RECIPIENT'S FORM W-2.

Schedule J, Part I, Line 4a Severance or change-of-control payment

JEFF THOMAS, OHI CFO, HAD $180,224 OF SEVERANCE PAYMENT IN CY 2022. LISA JONES, OHRH VP OF ANCILLARY SERVICES, HAD $252,824 OF SEVERANCE PAYMENT IN CY 2022. TIMOTHY BELEC, OHI VP CIO, HAD $386,356 OF SEVERANCE PAYMENT IN FY 2023.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

OWENSBORO HEALTH PROVIDES A NONQUALIFIED SUPPLEMENTAL RETIREMENT PLAN FOR CERTAIN EXECUTIVE EMPLOYEES. PARTICIPATION IN THE PLAN IS SUBJECT TO THE RECOMMENDATION OF THE CHIEF EXECUTIVE OFFICER AND THE APPROVAL OF THE BOARD OF DIRECTORS. AS OF DECEMBER 31, 2020 OWENSBORO HEALTH SHALL CREDIT THE PARTICIPANT'S ACCOUNT WITH AN EMPLOYER CONTRIBUTION. THE PARTICIPANT MUST BE EMPLOYED BY OWENSBORO HEALTH AT THE END OF THE PLAN YEAR IN ORDER TO RECEIVE AN EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR, AND PARTIAL YEAR CREDIT IS EARNED AFTER A PARTICIPANT REACHED NORMAL RETIREMENT AGE AS DEFINED BY THE PLAN. EMPLOYER CONTRIBUTIONS FOR EACH CONTRIBUTION CLASS YEAR SHALL BE 100% VESTED AS OF THE END OF THE PLAN YEAR WHICH IS FIVE YEARS AFTER THE DATE ON WHICH THE EMPLOYER CONTRIBUTION WAS MADE FOR SUCH CONTRIBUTION CLASS YEAR. FORMER CHIEF EXECUTIVE OFFICER, GREG STRAHAN, AND FORMER CHIEF FINANCIAL OFFICER, JOHN HACKBARTH, RETIRED ON AUGUST 6, 2021. AS REQUIRED BY THE PLAN DOCUMENT, THE FINAL FIVE YEARS OF CONTRIBUTIONS AND INVESTMENT EARNINGS WILL VEST AND PAYMENT IS MADE FOR THE FIVE YEARS CONCURRENTLY UPON RETIREMENT. 457F PLAN TO EXECUTIVES ERNEST BEGLEY $44,350; BILL BRYANT $44,144; DAVID DANHAUER $56,492; JOHN HACKBARTH $450,475 (RETIRED 08/06/21); EDWARD HEATH $34,718; RUBY JACILDO $45,288; STEPHEN JOHNSON $29,700; LISA JONES $44,587; RUSSELL RANALLO $39,663; GREG STRAHAN $1,117,560 (RETIRED 08/06/21); MIA SUTER $46,438.

Schedule J, Part I, Line 7 Non-fixed payments

THE SUCCESS SHARING PLAN IS A PROGRAM DESIGNEDTO FOCUS ON THE ACCOUNTABILITY OF ALL EMPLOYEES TO INFLUENCE THE FINANCIAL, QUALITY, PATIENT SATISFACTION AND EMPLOYEE DEVELOPMENT GOALS, AND TO REINFORCE THE OH CORE COMMITMENTS (RESPECT, INTEGRITY, INNOVATION, SERVICE, EXCELLENCE AND TEAMWORK) WHILE WORKING TO ACHIEVE THESE GOALS. THE PLAN ACHIEVES THIS BY PROVIDING A DIRECT LINK BETWEEN ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES AND THE TOTAL COMPENSATION OF THOSE WHO'S DECISIONS AND ACTIONS ARE ACCOUNTABLE FOR THE OUTCOMES WHICH DRIVE THE ORGANIZATION'S SUCCESS. ELIGIBILITY IS BASED ON HOURS WORKED IN THE YEAR; STAFF EMPLOYEES ARE PAID A PRO-RATED AMOUNT OF A DOLLAR MAXIMUM AND MANAGEMENT IS PAID A FIXED PERCENTAGE OF ANNUAL SALARY BASED ON LEVEL OF MANAGEMENT. PAYMENT IS PREDICATED ON BOARD APPROVAL.

Disregarded entities

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

• COMMONWEALTH MEDICAL MANAGEMENT LLC

  PHYS CLNC SRV · KY · income $0 · assets $0

  Directly controlled by OH

• THE HEALTH NETWORK OF WESTERN KY LLC

  MSSP ACP · KY · income $0 · assets $0

  Directly controlled by OH

• OH MUHLENBERG LLC

  HEALTHCARE SE · KY · income $54,382,000 · assets $97,127,000

  Directly controlled by OH

• OH HEALTH SOLUTIONS LLC

  HEALTHCARE SE · KY · income $2,000 · assets $5,000

  Directly controlled by OH

• OH HEALTH NETWORK LLC

  HEALTHCARE SE · KY · income $0 · assets $1,007,000

  Directly controlled by OH

• OH PROPERTIES HOLDING LLC

  MED OFFICE BLDG · KY · income $1,727,000 · assets $19,285,000

  Directly controlled by OH

Related partnerships

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

• OWENSBORO AM SR FAC

  Related · SURGERY CENTER · KY · share of income $1,191,974 · share of assets $5,236,577

  Directly controlled by NA

• TWIN LAKES REGIONAL PAIN MANAGEMENT

  Related · PAIN MANAGEMENT · KY

  Directly controlled by NA