Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,434,856

• 1e · Government grants (contributions)

  $1,832,230

• 1f · All other contributions, gifts and grants

  $1,388

• 2a · Program service revenue: NET PATIENT REVENUE

  total $492,346,147 · related or exempt $491,637,666 · unrelated business $708,481

• 2b · Program service revenue: MANAGEMENT SVCS TO RELATED

  total $10,713,411 · related or exempt $10,713,411

• 2c · Program service revenue: RENT FROM EXEMPT AFFILIATES

  total $1,503,390 · related or exempt $1,503,390

• 2d · Program service revenue: PROF. OFFICE BUILDING/EMP. HOUSIN

  total $1,493,536 · related or exempt $1,493,536

• 2e · Program service revenue: CAFETERIA REVENUE

  total $1,009,730 · related or exempt $1,009,730

• 2f · All other program service revenue

  total $671,232 · related or exempt $648,551 · unrelated business $22,681

• 3 · Investment income

  total $6,577,492 · excluded $6,577,492

• 6a · Gross rents

  real property $368,368 · personal property $131,109

• 6b · Less rental expenses

  real property $267,026 · personal property $14,347

• 6c · Rental income or loss

  real property $101,342 · personal property $116,762

• 6d · Net rental income or loss

  total $218,104 · unrelated business $116,762 · excluded $101,342

• 7a · Gross sales of assets other than inventory

  other assets $50,017

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

  securities $3,833,147 · other assets $542,318

• 7c · Gain or loss

  securities -$3,833,147 · other assets -$492,301

• 7d · Net gain or loss

  total -$4,325,448 · excluded -$4,325,448

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $1,247,767 · program services $1,247,767

• 5 · Compensation of officers, directors and key employees

  total $4,171,490 · management and general $4,171,490

• 7 · Other salaries and wages

  total $135,086,081 · program services $134,913,998 · management and general $172,083

• 8 · Pension plan contributions

  total $4,013,802 · program services $3,900,356 · management and general $113,446

• 9 · Other employee benefits

  total $28,708,070 · program services $27,240,942 · management and general $1,467,128

• 10 · Payroll taxes

  total $11,398,342 · program services $11,076,179 · management and general $322,163

• 11b · Fees: legal

  total $753,034 · management and general $753,034

• 11c · Fees: accounting

  total $144,203 · management and general $144,203

• 11f · Fees: investment management

  total $656,144 · management and general $656,144

• 11g · Fees: other

  total $137,923,826 · program services $115,565,002 · management and general $22,358,824

• 12 · Advertising and promotion

  total $1,214,696 · management and general $1,214,696

• 13 · Office expenses

  total $15,141,125 · program services $12,118,911 · management and general $3,022,214

• 14 · Information technology

  total $21,850,636 · program services $20,717,480 · management and general $1,133,156

• 16 · Occupancy

  total $10,982,681 · program services $10,982,681

• 17 · Travel

  total $516,731 · program services $1,561 · management and general $515,170

• 19 · Conferences, conventions and meetings

  total $98,250 · management and general $98,250

• 20 · Interest

  total $8,665,543 · program services $8,665,543

• 22 · Depreciation, depletion and amortization

  total $15,621,635 · program services $15,621,635

• 23 · Insurance

  total $5,147,557 · management and general $5,147,557

• 24a · Other expenses: MEDICAL SUPPLIES

  total $80,534,883 · program services $80,534,883

• 24b · Other expenses: STATE TAX INDIGENT ASSE

  total $22,786,424 · program services $22,786,424

• 24c · Other expenses: OTHER OPERATING COSTS

  total $10,878,135 · program services $10,878,135

• 24d · Other expenses: UBI TAXES

  total $152,288 · management and general $152,288

• 24e · All other expenses

  total $7,327,088 · program services $4,426,476 · management and general $2,900,612

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $3,817,402 · end of year $6,429

• 2 · Savings and temporary cash investments

  beginning of year $157,465,665 · end of year $156,828,847

• 4 · Accounts receivable

  beginning of year $63,291,969 · end of year $59,139,165

• 7 · Other notes and loans receivable

  end of year $1,065,483

• 8 · Inventories for sale or use

  beginning of year $11,720,559 · end of year $14,395,884

• 9 · Prepaid expenses and deferred charges

  beginning of year $13,657,490 · end of year $3,204,357

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

  $256,305,689

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

  $14,122

• 10c · Land, buildings and equipment, net

  beginning of year $260,793,179 · end of year $256,291,567

• 12 · Investments: other securities

  beginning of year $808,460 · end of year $628,749

• 13 · Investments: program-related

  beginning of year $210,000

• 14 · Intangible assets

  beginning of year $1,323,808 · end of year $83,391,824

• 15 · Other assets

  beginning of year $239,805,914 · end of year $34,925,023

• 17 · Accounts payable and accrued expenses

  beginning of year $34,532,279 · end of year $22,442,402

• 19 · Deferred revenue

  beginning of year $408,067

• 25 · Other liabilities

  beginning of year $359,766,142 · end of year $101,039,235

• 27 · Net assets without donor restrictions

  beginning of year $346,427,431 · end of year $476,075,966

• 28 · Net assets with donor restrictions

  beginning of year $11,760,527 · end of year $10,319,725

The filer's explanations (Part III)

PART I, LINE 1A

PRIOR TO APRIL 1, 2022, MEMBERS OF THE FILING ORGANIZATION'S EXECUTIVE MANAGEMENT TEAM THAT HELD THE POSITION OF VICE-PRESIDENT OR ABOVE WERE COMPENSATED BY AND ON THE PAYROLL OF THE FILING ORGANIZATION. HOWEVER, AS A RESULT OF THE DISAFFILIATION AGREEMENT, BEGINNING APRIL 1, 2022, MEMBERS OF THE FILING ORGANIZATION'S EXECUTIVE MANAGEMENT TEAM THAT HOLD THE POSITION OF VICE-PRESIDENT OR ABOVE ARE NOW COMPENSATED BY AND ON THE PAYROLL OF THE FILING ORGANIZATION'S TOP-TIER PARENT. THE FILING ORGANIZATION AND ITS 501(C)(3) PARENT ARE PART OF THE SYSTEM OF HEALTHCARE ORGANIZATIONS KNOWN AS ADVENTHEALTH. THE TOP-TIER PARENT OF ADVENTHEALTH IS ADVENTIST HEALTH SYSTEM SUNBELT HEALTHCARE CORPORATION (AHSSHC). AHSSHC IS EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3). THE FILING ORGANIZATION REIMBURSES AHSSHC FOR THE SALARY AND BENEFIT COST OF THOSE EXECUTIVES LISTED IN PART VII THAT ARE ON THE PAYROLL OF AHSSHC. AT THE DIRECTION OF AHSSHC, AND IN ACCORDANCE WITH THE RESERVED POWERS IN THE FILING ORGANIZATION'S GOVERNING DOCUMENTS, THE EXECUTIVE TEAM LISTED ON PART VII PROVIDES SERVICES TO THE FILING ORGANIZATION. FIRST-CLASS OR CHARTER TRAVEL: PURSUANT TO THE ADVENTHEALTH SYSTEM-WIDE GENERAL POLICY REGARDING BUSINESS TRAVEL, NO REIMBURSEMENT WILL BE PROVIDED FOR ANY ADDITIONAL COST INCURRED WITH RESPECT TO FIRST-CLASS OR CHARTER AIR TRAVEL BEYOND THE COST OF A REGULAR COACH AIRFARE. AS A MEANS OF PROVIDING ADDITIONAL BUSINESS TRAVEL REIMBURSEMENT FOR THOSE MEMBERS OF THE AHSSHC SENIOR EXECUTIVE MANAGEMENT TEAM THAT TRAVEL FREQUENTLY ON BEHALF OF ADVENTHEALTH, A SPECIAL ANNUAL TRAVEL ALLOWANCE IS PROVIDED FOR THOSE EXECUTIVES. AS ADVENTHEALTH OPERATES 49 HOSPITALS IN 9 STATES, THE SENIOR LEADERSHIP OF AHSSHC TRAVEL EXTENSIVELY AND OFTEN VISIT MULTIPLE HOSPITAL LOCATIONS IN DIFFERENT STATES AS A PART OF A SINGLE BUSINESS TRIP. THE SPECIAL TRAVEL ALLOWANCE CAN PROVIDE REIMBURSEMENTS TO THE EXECUTIVE FOR SUCH ITEMS AS THE PURCHASE OF AIR TRAVEL UPGRADE COUPONS, TO COVER THE COST DIFFERENTIAL BETWEEN COACH AND FIRST-CLASS TRAVEL, OR TO COVER THE COST OF A CHARTER FLIGHT. THE SPECIAL TRAVEL ALLOWANCE BENEFIT WAS ORIGINALLY AUTHORIZED BY AND CODIFIED INTO A POLICY BY THE AHSSHC BOARD COMPENSATION COMMITTEE (THE COMMITTEE), AN INDEPENDENT BODY OF THE AHSSHC BOARD OF DIRECTORS, WHO ALSO APPROVES THE ANNUAL CAP ON THE AMOUNT OF THE ALLOWANCE. THE SPECIAL TRAVEL ALLOWANCE HAS AN ANNUAL CAP OF $24,000 FOR MEMBERS OF THE LEADERSHIP EXECUTIVE TEAM (13 ADVENTHEALTH CABINET MEMBERS AND THE ADVENTHEALTH MULTI-STATE CFO) AND $15,000 FOR ADVENTHEALTH CORPORATE OFFICE SENIOR VICE PRESIDENTS, REGIONAL CEO'S, AND DIVISION CHIEF OFFICERS (GENERALLY 50 - 55 INDIVIDUAL EXECUTIVES). A REGIONAL CEO FOR ADVENTHEALTH IS A MEMBER OF THE BOARD OF DIRECTORS OF THE FILING ORGANIZATION. THE REGIONAL CEO IS CONSIDERED A COMMON LAW EMPLOYEE OF AND IS ON THE PAYROLL OF AHSSHC. WHILE THE SPECIAL TRAVEL ALLOWANCE BENEFIT IS AN AHSSHC COMPENSATION POLICY AND PRACTICE, THE COST OF PROVIDING THIS BENEFIT IS ALLOCATED TO AND EITHER WHOLLY OR PARTIALLY REIMBURSED BY THE FILING ORGANIZATION. ACCORDINGLY, THE FILING ORGANIZATION HAS CHECKED THE BOX IN SCHEDULE J, PART I, LINE 1A FOR FIRST-CLASS OR CHARTER TRAVEL SINCE IT HAS WHOLLY OR PARTIALLY PAID FOR THE COST OF PROVIDING THIS BENEFIT. THOSE EXECUTIVES WHO RECEIVE THE SPECIAL TRAVEL ALLOWANCE ARE RESPONSIBLE FOR TRACKING THE EXPENSES REIMBURSABLE UNDER THE SPECIAL TRAVEL ALLOWANCE AND MUST SUBMIT SUCH EXPENSES ON THEIR ACCOUNTABLE PLAN EXPENSE REPORT. A REPORT ON CHARTER TRAVEL IS PROVIDED TO THE AHSSHC BOARD COMPENSATION COMMITTEE AT EACH MEETING. ANY TAXABLE REIMBURSEMENTS MADE TO EXECUTIVES UNDER THE SPECIAL TRAVEL ALLOWANCE ARRANGEMENT ARE TREATED AS TAXABLE COMPENSATION TO THE EXECUTIVE. TRAVEL FOR COMPANIONS: AHSSHC HAS A CORPORATE EXECUTIVE POLICY THAT PROVIDES A BENEFIT TO ALLOW FOR A TRAVELING AHSSHC EXECUTIVE TO HAVE HIS OR HER SPOUSE ACCOMPANY THE EXECUTIVE ON CERTAIN BUSINESS TRIPS EACH YEAR. TYPICALLY, REIMBURSEMENT IS ONLY PROVIDED TO CERTAIN EXECUTIVE LEADERS AND IS USUALLY LIMITED TO ONE BUSINESS TRIP PER YEAR BEYOND THE ANNUAL ADVENTHEALTH PRESIDENT'S COUNCIL BUSINESS MEETING AND OTHER MEETINGS WHERE THE SPOUSE IS SPECIFICALLY INVITED. THE AHSSHC CORPORATE EXECUTIVE SPOUSAL TRAVEL POLICY WAS ORIGINALLY APPROVED AND REVIEWED BY THE AHSSHC BOARD COMPENSATION COMMITTEE, AN INDEPENDENT BODY OF THE AHSSHC BOARD OF DIRECTORS. ALL SPOUSAL TRAVEL COSTS REIMBURSED TO THE EXECUTIVE ARE CONSIDERED TAXABLE COMPENSATION TO THE EXECUTIVE. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS: ADVENTHEALTH HAS A SYSTEM-WIDE POLICY ADDRESSING GROSS-UP PAYMENTS PROVIDED IN CONNECTION WITH EMPLOYER-PROVIDED BENEFITS/OTHER TAXABLE ITEMS. UNDER THE POLICY, CERTAIN TAXABLE BUSINESS-RELATED REIMBURSEMENTS (I.E. TAXABLE BUSINESS-RELATED MOVING EXPENSES, TAXABLE ITEMS PROVIDED IN CONNECTION WITH EMPLOYMENT) PROVIDED TO ANY EMPLOYEE MAY BE GROSSED-UP AT A 25% RATE UPON APPROVAL BY THE FILING ORGANIZATION'S CEO AND CFO. ADDITIONALLY, EMPLOYEES AT THE DIRECTOR LEVEL AND ABOVE ARE ELIGIBLE FOR GROSS-UP PAYMENTS ON GIFTS RECEIVED FOR BOARD OF DIRECTOR SERVICES. DISCRETIONARY SPENDING ACCOUNT: OCCASIONAL DISCRETIONARY SPENDING AMOUNTS ARE PERIODICALLY PROVIDED TO ELIGIBLE EXECUTIVES WHO ATTEND ANNUAL BUSINESS MEETINGS SUCH AS THE ADVENTHEALTH PRESIDENT'S COUNCIL, CFO CONFERENCE OR THE CMO/CNO BUSINESS MEETING. PAYMENTS PROVIDED TO EACH EXECUTIVE ARE CONSIDERED TAXABLE COMPENSATION TO THE EXECUTIVE. HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES: AHSSHC HAS A CORPORATE EXECUTIVE POLICY THAT ADDRESSES BUSINESS DEVELOPMENT EXPENDITURES. UNDER THIS POLICY, TO ENCOURAGE EXECUTIVES TO ESTABLISH AND CULTIVATE STRONG WORKING RELATIONSHIPS WITH THE MEDICAL COMMUNITY AND OTHER LEADERS IN THE COMMUNITY AND INDUSTRY, CERTAIN ADVENTHEALTH EXECUTIVES MAY BE REIMBURSED FOR MEMBER DUES AND USAGE CHARGES FOR A COUNTRY CLUB OR OTHER SOCIAL CLUB UPON AUTHORIZATION. CLUB MEMBERSHIPS MUST BE APPROVED BY THE ADVENTHEALTH PRESIDENT/CEO INITIALLY AS WELL AS ON AN ANNUAL BASIS. EACH ADVENTHEALTH EXECUTIVE WHO IS APPROVED FOR A CLUB MEMBERSHIP MUST SUBMIT AN ANNUAL REPORT DESCRIBING HOW THEY USED THE MEMBERSHIP TO BENEFIT THEIR ORGANIZATION DURING THE PRECEDING YEAR SO THAT THE ADVENTHEALTH PRESIDENT/CEO CAN DETERMINE IF CONTINUANCE OF THE CLUB MEMBERSHIP FURTHERS THE BUSINESS INTERESTS OF ADVENTHEALTH. IN THE CURRENT YEAR, FOR THIS FILING ORGANIZATION, ONE EXECUTIVE LISTED IN PART VII RECEIVED REIMBURSEMENT FOR CLUB FEES. WHILE THE CLUB DUES MEMBERSHIP IS AN AHSSHC COMPENSATION POLICY AND PRACTICE, THE COST OF PROVIDING THIS BENEFIT IS ALLOCATED TO AND REIMBURSED IN WHOLE OR IN PART BY THE FILING ORGANIZATION. ACCORDINGLY, THE FILING ORGANIZATION HAS CHECKED THE BOX IN SCHEDULE J, PART I, LINE 1A FOR HEALTH OR SOCIAL CLUB DUES SINCE IT HAS WHOLLY OR PARTIALLY PAID FOR THE COST OF PROVIDING THIS BENEFIT. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: IN PRIOR YEARS, AHSSHC PROVIDED HOUSING ASSISTANCE IN THE FORM OF A SHARED EQUITY INTEREST IN A RESIDENCE TO ELIGIBLE EXECUTIVES WHO WERE EXPECTED TO LIVE WITHIN THE IMMEDIATE PROXIMITY OF HOSPITAL FACILITIES LOCATED IN HIGH-COST COMMUNITIES. AS WITH ALL AHSSHC CORPORATE EXECUTIVE POLICIES, THE HOUSING BENEFIT POLICY WAS ORIGINALLY AUTHORIZED AND APPROVED BY THE AHSSHC BOARD COMPENSATION COMMITTEE, AN INDEPENDENT COMMITTEE OF THE AHSSHC BOARD OF DIRECTORS. THIS HOUSING ASSISTANCE POLICY WAS RETIRED IN 2018. AT THE TIME OF THE HOUSING ASSISTANCE POLICY'S RETIREMENT, THERE WAS ONLY ONE ELIGIBLE EXECUTIVE THAT IS LISTED ON PART VII OF THIS RETURN THAT REMAINED A PARTICIPANT IN THIS PROGRAM. THE APPROPRIATE ANNUAL DOLLAR AMOUNT OF THE HOUSING BENEFIT PROVIDED TO THE REMAINING ELIGIBLE EXECUTIVE IS TREATED AS TAXABLE COMPENSATION TO THE EMPLOYEE. THE REMAINING PARTICIPANT'S HOUSE WAS SOLD AUGUST, 2022 AND THERE ARE NO REMAINING PARTICIPANTS UNDER THIS OBSOLETE POLICY.

PART I, LINE 3

THE FILING ORGANIZATION WAS A COVERED AFFILIATE OF THE JOINT OPERATING COMPANY, ALEXIAN BROTHERS-AHS MIDWEST REGION HEALTH CO. D/B/A AMITA HEALTH (AMITA OR JOC) FOR THE PERIOD FROM JANUARY 1 TO MARCH 31 OF 2022. AS A RESULT OF THE DISAFFILIATION AGREEMENT BETWEEN ALEXIAN BROTHERS HEALTH SYSTEM AND ADVENTIST MIDWEST HEALTH, THE FILING ORGANIZATION'S SOLE MEMBER, THE FILING ORGANIZATION CEASED TO BE A COVERED AFFILIATE OF THE JOC EFFECTIVE APRIL 1, 2022. PLEASE SEE OUR RESPONSE TO FORM 990, PART VI, SECTION A, LINE 4 FOR ADDITIONAL INFORMATION CONCERNING THE DISAFFILIATION AGREEMENT. THE 2022 COMPENSATION OF THE EXECUTIVES LISTED IN PART VII, INCLUDING THE CEO, WAS DETERMINED BY AMITA. UPON THE DISAFFILIATION ON APRIL 1, 2022, THE COMPENSATION OF THE EXECUTIVES LISTED IN PART VII WAS REVIEWED BY ADVENTIST HEALTH SYSTEM SUNBELT HEALTHCARE CORPORATION, THE FILING ORGANIZATION'S TOP-TIER 501(C)(3) PARENT ORGANIZATION, FOR REASONABLENESS AND APPROPRIATENESS AND LEFT UNCHANGED FOR 2022. AMITA UTILIZED VARIOUS COMPARABILITY DATA IN ESTABLISHING THE 2022 COMPENSATION FOR THOSE EXECUTIVES LISTED IN PART VII THAT PERFORMED SERVICES FOR AMITA DURING THE FIRST QUARTER OF 2022 AND FOR THE FILING ORGANIZATION AND FOR ITS RELATED 501(C)(3) HOSPITAL AND PHYSICIAN PRACTICE ENTITIES FOR CALENDAR YEAR 2022. COMPARABILITY DATA UTILIZED BY AMITA INCLUDED COMPENSATION SURVEYS AND STUDIES AND THE FORMS 990 OF OTHER UNRELATED COMPARABLE ORGANIZATIONS. AMITA ALSO HAD A COMPENSATION COMMITTEE THAT APPROVED ALL RELEVANT EXECUTIVE COMPENSATION, INCLUDING THE COMPENSATION OF THE FILING ORGANIZATION'S CEO FOR 2022.

PART I, LINE 4B

AS DISCUSSED IN LINE 1A ABOVE, BEGINNING APRIL 1, 2022, EXECUTIVES ON THE FILING ORGANIZATION'S MANAGEMENT TEAM THAT HOLD THE POSITION OF VICE-PRESIDENT OR ABOVE ARE COMPENSATED BY AND ON THE PAYROLL OF ADVENTIST HEALTH SYSTEM SUNBELT HEALTHCARE CORPORATION (AHSSHC), THE PARENT ORGANIZATION OF THE HEALTHCARE SYSTEM KNOWN AS ADVENTHEALTH. IN RECOGNITION OF THE CONTRIBUTION THAT EACH EXECUTIVE MAKES TO THE SUCCESS OF ADVENTHEALTH, ADVENTHEALTH PROVIDES SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFIT PLANS TO ELIGIBLE EXECUTIVES. AS THE SUPPLEMENTAL EXECUTIVE RETIREMENT BENEFIT PLANS WERE UPDATED IN 2020 AND CERTAIN INDIVIDUALS STILL PARTICIPATE AS GRAND-FATHERED PARTICIPANTS IN CERTAIN PLANS, THE NARRATIVE BELOW DISCUSSES ALL PLANS IN WHICH THERE WERE ANY PARTICIPANTS IN 2022. THE SERP III PLAN EFFECTIVELY REPLACES THE PRIOR SERP II PLAN, THE EXECUTIVE FLEX BENEFIT PROGRAM PLAN, AND THE SENIOR EXECUTIVE DEATH BENEFIT PLAN FOR QUALIFIED EXECUTIVES EXCEPT FOR CERTAIN GRANDFATHERED EXECUTIVE EMPLOYEES. SERP III PLAN: THE SERP III PLAN PROVIDES ELIGIBLE EXECUTIVES A PERCENTAGE OF THEIR BASE PAY, WHICH IS CREDITED TO A DEFERRED COMPENSATION ACCOUNT. THE PLAN ALSO PROVIDES FOR COMPENSATION DEFERRAL AND SELECTION OF LIFE INSURANCE COVERAGE AND LONG-TERM CARE INSURANCE. TO BE ELIGIBLE TO PARTICIPATE IN THE SERP III PLAN, EXECUTIVES MUST BE ON THE AHSSHC CORPORATE PAYROLL AND BE EITHER A CEO OF AN ADVENTHEALTH ENTITY, AN AHSSHC VICE PRESIDENT (VP) OR VP OF AN ADVENTHEALTH ENTITY WITH A BASE SALARY OF AT LEAST $305,000 IN 2022 (ADJUSTED ANNUALLY BY THE SAME PERCENTAGE AS IRC SECTION 401(A)(17) LIMIT INCREASES), OR OTHER LEADER SPECIFICALLY APPROVED BY THE ADVENTHEALTH PRESIDENT. ELIGIBLE EXECUTIVES DO NOT INCLUDE GRANDFATHERED EXECUTIVES, MEANING THOSE EXECUTIVES WHO WOULD SATISFY ALL THE ELIGIBILITY REQUIREMENTS OF THE SERP II PLAN PRIOR TO DEC 31, 2027, HAD THE PLAN NOT BEEN AMENDED AND RESTATED AS OF JAN. 1, 2020. CONTRIBUTION CREDITS WILL BE ESTABLISHED AND MAINTAINED BY CLASS YEAR ACCOUNTS FOR EACH PARTICIPANT USING TIERED CONTRIBUTION CREDIT PERCENTAGES OF ANNUAL BASE COMPENSATION. CONTRIBUTION CREDIT PERCENTAGES RANGE BETWEEN 15% AND 19% OF BASE COMPENSATION. CONTRIBUTION CREDITS WILL BE MADE EACH QUARTER IN 25% INCREMENTS WITH REDUCTIONS IN CONTRIBUTIONS IF THE EXECUTIVE IS ALSO A GRANDFATHERED FLEX PARTICIPANT (SEE BELOW). SERP III PROVIDES FOR A CLASS YEAR VESTING AND PAYMENT SCHEDULE (7 YEARS FOR EACH CLASS YEAR) WITH RESPECT TO AMOUNTS ACCUMULATED IN THE EXECUTIVE'S DEFERRED COMPENSATION ACCOUNT. UPON ATTAINMENT OF A NORMAL RETIREMENT AGE (AGE 62), OR UPON CERTAIN OTHER CIRCUMSTANCES AS DEFINED IN THE SERP III PLAN DOCUMENT, ALL DEFERRED AMOUNTS ARE PAID IMMEDIATELY TO THE PARTICIPANT. FOR ANY EXECUTIVES WORKING BEYOND THE NORMAL RETIREMENT AGE, FUTURE EMPLOYER CONTRIBUTIONS WILL BE MADE QUARTERLY FROM SERP III DIRECTLY TO THE PARTICIPANT AS A TAXABLE CASH BONUS. SERP II PLAN: THE SERP II PLAN IS A DEFINED BENEFIT, NON-TAX-QUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN EXECUTIVES WHO HAVE PROVIDED LENGTHY SERVICE TO ADVENTHEALTH AND/OR TO OTHER SEVENTH-DAY ADVENTIST CHURCH HOSPITALS OR HEALTH CARE INSTITUTIONS. UNDER THE PROVISIONS OF THE SERP II PLAN, BENEFITS ARE PROVIDED TO QUALIFYING EXECUTIVE PARTICIPANTS ON A PRO-RATA SCHEDULE BEGINNING WITH 20 YEARS OF SERVICE AS AN EMPLOYEE OF ADVENTHEALTH AND/OR ANOTHER HOSPITAL OR HEALTH CARE INSTITUTION CONTROLLED BY THE SEVENTH-DAY ADVENTIST CHURCH AND WHO SATISFY CERTAIN OTHER QUALIFYING CRITERIA. ELIGIBLE EMPLOYEES ARE RESTRICTED TO THOSE EXECUTIVES WHO, AS OF JANUARY 1, 2020, SATISFIED, OR IF EMPLOYMENT CONTINUES, WILL SATISFY THE ELIGIBILITY REQUIREMENTS OF SERP II PRIOR TO DECEMBER 31, 2027. THIS SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP II) WAS DESIGNED TO PROVIDE ELIGIBLE EXECUTIVES WITH THE ECONOMIC EQUIVALENT OF AN ANNUAL INCOME BEGINNING AT NORMAL RETIREMENT AGE EQUAL TO 60% OF THE AVERAGE OF THE PARTICIPANT'S THREE, FIVE OR SEVEN HIGHEST YEARS OF BASE SALARY FROM ADVENTHEALTH ACTIVE EMPLOYMENT INCLUSIVE OF INCOME FROM ALL OTHER SEVENTH-DAY ADVENTIST CHURCH HEALTHCARE EMPLOYER-FINANCED RETIREMENT INCOME SOURCES AND INVESTMENT INCOME EARNED ON THOSE CONTRIBUTIONS THROUGH SOCIAL SECURITY NORMAL RETIREMENT AGE AS DEFINED IN THE PLAN. THE NUMBER OF YEARS INCLUDED IN HIGHEST AVERAGE COMPENSATION IS DETERMINED BY THE INDIVIDUAL'S YEAR OF ENTRY TO SERP II AND BY THE INDIVIDUAL'S YEAR OF ENTRY TO THE ADVENTHEALTH EXECUTIVE FLEX BENEFIT PROGRAM. FLEX PLAN: THE FLEX PLAN WAS ORIGINALLY DESIGNED TO PROVIDE ELIGIBLE EXECUTIVES AN OPPORTUNITY TO SELECT FROM AMONG A VARIETY OF SUPPLEMENTAL BENEFITS, INCLUDING A SPLIT DOLLAR LIFE INSURANCE POLICY AND LONG-TERM CARE INSURANCE, TO INDIVIDUALLY TAILOR A BENEFITS PROGRAM APPROPRIATE TO EACH EXECUTIVE'S NEEDS. IN 2020, THE FLEX PLAN WAS AMENDED TO EXCLUDE EMPLOYED EXECUTIVES WHO ARE HIRED OR PROMOTED AFTER A CERTAIN DATE FROM BEING ELIGIBLE TO PARTICIPATE IN THE FLEX PLAN EXCEPT FOR CERTAIN INSURANCE COVERAGE FEATURES OF THE PLAN. THE FLEX PLAN PROVIDES ELIGIBLE PARTICIPANTS A PRE-DETERMINED BENEFITS ALLOWANCE CREDIT THAT IS EQUAL TO A PERCENTAGE OF THE EXECUTIVE'S BASE PAY FROM WHICH THE COST OF MANDATORY AND ELECTIVE EMPLOYEE BENEFITS IS DEDUCTED. THE BENEFITS ALLOWANCE CREDIT PERCENTAGE FOR ANY PLAN YEAR SHALL NOT BE GREATER THAN THE MAXIMUM DOLLAR AMOUNT OR THE PERCENTAGE OF COMPENSATION AS DETERMINED BY THE ADVENTHEALTH BENEFITS ADMINISTRATION COMMITTEE. FOR GRANDFATHERED ELIGIBLE EMPLOYEES, THE ANNUAL PRE-DETERMINED FLEX ALLOWANCE IS CONTRIBUTED AND ANY FUNDS THAT REMAIN AFTER THE COST OF MANDATORY AND ELECTIVE BENEFITS ARE SUBTRACTED ARE, AT THE EMPLOYEE'S OPTION, CONTRIBUTED TO EITHER AN IRC 457(F) DEFERRED COMPENSATION ACCOUNT OR TO AN IRC 457(B) ELIGIBLE DEFERRED COMPENSATION PLAN. UPON ATTAINMENT OF AGE 65, ALL PREVIOUS 457(F) DEFERRED AMOUNTS ARE PAID IMMEDIATELY TO THE PARTICIPANT AND ANY FUTURE EMPLOYER CONTRIBUTIONS ARE MADE QUARTERLY FROM THE PLAN DIRECTLY TO THE PARTICIPANT. THE PLAN PROVIDES FOR A CLASS YEAR VESTING SCHEDULE (2 YEARS FOR EACH CLASS YEAR) WITH RESPECT TO AMOUNTS ACCUMULATED IN THE EXECUTIVE'S 457(F) DEFERRED COMPENSATION ACCOUNT. DISTRIBUTIONS COULD ALSO BE MADE FROM THE EXECUTIVE'S 457(F) DEFERRED COMPENSATION ACCOUNT UPON ATTAINMENT OF AGE 65 OR UPON AN INVOLUNTARY SEPARATION. THE ACCOUNT WILL BE FORFEITED BY THE EXECUTIVE UPON A VOLUNTARY SEPARATION. WITH RESPECT TO GRANDFATHERED PARTICIPANTS, THE FLEX PLAN DOCUMENTS DEFINE ELIGIBLE EMPLOYEES TO INCLUDE THE CHIEF EXECUTIVE OFFICERS OF ADVENTHEALTH ENTITIES AND VICE PRESIDENTS OF ALL ADVENTHEALTH ENTITIES WHOSE BASE SALARY WAS AT LEAST EQUAL TO THE INTERNAL REVENUE CODE SECTION 401(A)(17) COMPENSATION LIMIT EACH YEAR. FLEX PLAN FLEX PLAN SERP II SERP III CONTR. DISTR.* CONTR./DISTR. CONTR. BACON,KENNETH $ 0 $ 0 $ 0 $ 226,932 SNYDER,BRENT $ 150,000 $ 129,500 $ 56,411 $ 0 THORDARSON,THOR $ 0 $ 0 $ 0 $ 98,072 MURPHY,MARY $ 36,648 $ 0 $ 761,856 $ 0 MURRILL,MICHAEL $ 0 $ 0 $ 0 $ 125,654 BUCHANAN,HERBERT $ 0 $ 0 $ 0 $ 50,754 MAYCOCK,ADAM $ 0 $ 0 $ 0 $ 41,539 NAND,BELA $ 0 $ 0 $ 0 $ 42,880 MATHIS,REBECCA $ 0 $ 0 $ 0 $ 54,693 SERP III DISTR.* BACON,KENNETH $ 0 SNYDER,BRENT $ 0 THORDARSON,THOR $ 0 MURPHY,MARY $ 0 MURRILL,MICHAEL $ 0 BUCHANAN,HERBERT $ 50,754 MAYCOCK,ADAM $ 0 NAND,BELA $ 0 MATHIS,REBECCA $ 0 * INCLUDING INVESTMENT EARNINGS HERBERT BUCHANAN RECEIVED COMPENSATION FROM ALEXIAN BROTHERS HEALTH SYSTEM IN 2022 FOR SERVICES PROVIDED TO THE FILING ORGANIZATION. ALEXIAN BROTHERS HEALTH SYSTEM WAS AFFILIATED WITH THE FILING ORGANIZATION FOR THE PERIOD FROM JANUARY 1 TO MARCH 31 OF 2022. AS A RESULT OF THE DISAFFILIATION AGREEMENT BETWEEN ALEXIAN BROTHERS HEALTH SYSTEM AND ADVENTIST MIDWEST HEALTH, THE FILING ORGANIZATION'S SOLE MEMBER, THE FILING ORGANIZATION CEASED TO BE A COVERED AFFILIATE OF THE JOINT OPERATING COMPANY KNOWN AS AMITA HEALTH EFFECTIVE APRIL 1, 2022. PLEASE SEE OUR RESPONSE TO FORM 990, PART VI, SECTION A, LINE 4 FOR ADDITIONAL INFORMATION CONCERNING THE DISAFFILIATION AGREEMENT. COMPENSATION FOR THE INDIVIDUAL'S SERVICES PROVIDED TO THE FILING ORGANIZATION IS DISCLOSED IN PART VII, LINE 1A, AND SCHEDULE J, PART II.

Disregarded entities

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

• AMH GI ASC LLC

  INACTIVE · IL · income $0 · assets $0

  Directly controlled by ADVENTIST MIDWEST HEALTH

Related partnerships

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

• FLETCHER HOSPITAL SURGICAL VENTURES LLC

  INDIRECT INTEREST IN SURGERY CENTER · NC

• FLORIDA HOSPITAL DMERT LLC

  MEDICAL EQUIPMENT · FL · general or managing partner

• FLORIDA HOSPITAL HOME INFUSION LLP

  HOME INFUSION SERVICES · FL · general or managing partner

• FUNCTIONAL NEUROSURGICAL AMBULATORY SURGERY CTR LLC

  SURGERY CENTER · CO

• M&O ORLANDO MOB I LLC

  OPERATION OF MEDICAL OFFICE BUILDING · DE

• ONPOINT OBGYN LLC (21-123122)

  HEALTHCARE SERVICES · CO

• PAHS ONPOINT IMAGING LLC

  IMAGING CENTER · CO

• PAHS ONPOINT URGENT CARE LLC

  URGENT CARE CENTER · CO

• PRINCETON HOMECARE SERVICES LLC (11-8122)

  OPERATION OF HOME HEALTH AGENCY · FL

• SURGERY CENTER OF ROME LP

  SURGERY CENTER · GA

• THE BARIATRIC CENTER OF KANSAS CITY LLC

  SURGERY CENTER · KS

• URGENT CARE CENTERS OF BREVARD COUNTY LLC

  URGENT CARE CENTERS · FL · general or managing partner

Related corporations and trusts

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

• ADVENTHEALTH ORLANDO NETWORK INC (11 - 41922)

  C · INACTIVE · FL · controlled entity

• ADVENTHEALTH PROFESSIONAL STAFFING INC (11 - 12822)

  C · INACTIVE · FL · controlled entity

• ADVENTHEALTH TAMPA NETWORK INC (11 - 41922)

  C · INACTIVE · FL · controlled entity

• ADVENTHEALTH TEAM MEMBERS INC (11 - 12822)

  C · INACTIVE · FL · controlled entity

• ADVENTHEALTH VALUE BASED BUNDLE MANAGEMENT LLC (61-123122)

  C · MEDICAL CONTRACTING AND BILLING · FL · controlled entity

• ALTAMONTE MEDICAL PLAZA CONDOMINIUM ASSOCIATION INC

  C · CONDO ASSOCIATION · FL · controlled entity

• APOPKA MEDICAL PLAZA CONDOMINIUM ASSOCIATION INC

  C · CONDO ASSOCIATION · FL · controlled entity

• BATTLE CREEK ADVENTIST HOSPITAL

  C · INACTIVE · MI · controlled entity

• FLORIDA HOSPITAL FLAGLER MEDICAL OFFICES ASSOCIATION INC

  C · CONDO ASSOCIATION · FL · controlled entity

• FLORIDA HOSP HLTH VILLAGE PROPERTY OWNER'S ASSOC INC

  C · CONDO ASSOCIATION · FL · controlled entity

• FLORIDA HOSPITAL HEALTHCARE SYSTEM INC

  C · PHSO / CIN · FL · controlled entity

• FLORIDA MEDICAL PLAZA CONDOMINIUM ASSOCIATION INC

  C · CONDO ASSOCIATION · FL · controlled entity

• KISSIMMEE MULTISPECIALTY CLINIC CONDOMINIUM ASSOCIATION INC

  C · CONDO ASSOCIATION · FL · controlled entity

• MIDWEST MANAGEMENT SERVICES INC

  C · INACTIVE · KS · controlled entity

• NORTH AMERICAN HEALTH SERVICES INC & SUB

  C · HOLDING CO. · TN · controlled entity

• ORMOND PROF ASSOCIATES CONDO ASSOC INC (430 YEAR END)

  C · CONDO ASSOCIATION · FL · controlled entity

• PARK RIDGE PROPERTY OWNER'S ASSOCIATION INC

  C · CONDO ASSOCIATION · NC · controlled entity

• PARK RIDGE CONDOMINIUM #1 UNIT OWNERS ASSOCIATION INC

  C · CONDO ASSOCIATION · NC · controlled entity

• SURGICARE OF ROME INC

  C · HOLDING COMPANY · GA · controlled entity

• REDMOND PARK HEALTH SERVICES INC

  C · HOLDING COMPANY · GA · controlled entity

• THE GARDEN RETIREMENT COMMUNITY INC

  C · REAL ESTATE RENTAL · FL · controlled entity

• WINTER PARK MEDICAL OFFICE BUILDING I CONDO ASSOC INC

  C · CONDO ASSOCIATION · FL · controlled entity