Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: PATIENT SERVICE REV

  total $28,362,963 · related or exempt $28,362,963

• 11a · Other revenue: OTHER REVENUE

  total $754 · excluded $754

• 11e · Other revenue, total

  $754

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $315,135 · program services $315,135

• 5 · Compensation of officers, directors and key employees

  total $191,881 · program services $156,978 · management and general $34,903

• 7 · Other salaries and wages

  total $6,386,735 · program services $5,224,988 · management and general $1,161,747

• 8 · Pension plan contributions

  total $323,302 · program services $264,493 · management and general $58,809

• 9 · Other employee benefits

  total $1,120,930 · program services $917,033 · management and general $203,897

• 10 · Payroll taxes

  total $464,962 · program services $380,385 · management and general $84,577

• 11a · Fees: management

  total $377,066 · program services $308,478 · management and general $68,588

• 11g · Fees: other

  total $769,282 · program services $769,282

• 13 · Office expenses

  total $645,634 · program services $528,193 · management and general $117,441

• 14 · Information technology

  total $18,330 · program services $14,996 · management and general $3,334

• 16 · Occupancy

  total $517,420 · program services $423,301 · management and general $94,119

• 17 · Travel

  total $236,274 · program services $193,296 · management and general $42,978

• 19 · Conferences, conventions and meetings

  total $5,239 · program services $4,286 · management and general $953

• 20 · Interest

  total $906 · program services $741 · management and general $165

• 22 · Depreciation, depletion and amortization

  total $349,963 · program services $286,305 · management and general $63,658

• 23 · Insurance

  total $303,880 · program services $248,604 · management and general $55,276

• 24a · Other expenses: UBIT

  total -$10,151 · program services -$10,151

• 24b · Other expenses: MEDICAL CLAIMS & CAPITA

  total $10,190,971 · program services $10,190,971

• 24c · Other expenses: SENTARA SERVICE EXPENSE

  total $2,923,344 · management and general $2,923,344

• 24d · Other expenses: MEDICAL SUPPLIES EXPENS

  total $1,615,171 · program services $1,615,171

• 24e · All other expenses

  total $776,103 · program services $634,930 · management and general $141,173

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,545 · end of year $50,177

• 4 · Accounts receivable

  beginning of year $2,762,723 · end of year $5,644,924

• 8 · Inventories for sale or use

  beginning of year $55,130 · end of year $110,048

• 9 · Prepaid expenses and deferred charges

  beginning of year $24,500 · end of year $24,500

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

  $6,177,384

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

  $5,074,028

• 10c · Land, buildings and equipment, net

  beginning of year $939,480 · end of year $1,103,356

• 14 · Intangible assets

  beginning of year $613,850 · end of year $786,766

• 15 · Other assets

  beginning of year $6,307 · end of year $312,308

• 17 · Accounts payable and accrued expenses

  beginning of year $909,254 · end of year $815,372

• 19 · Deferred revenue

  beginning of year $9,525 · end of year $5,292

• 25 · Other liabilities

  beginning of year $3,669,297 · end of year $4,165,217

• 27 · Net assets without donor restrictions

  beginning of year -$317,541 · end of year $2,913,198

• 28 · Net assets with donor restrictions

  beginning of year $133,000 · end of year $133,000

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, LINES 4A-B

LOUIS PATALANO, IV RECEIVED $210,869 IN COMPENSATION RELATED TO HIS SEPARATION FROM SERVICE. THIS AMOUNT HAS BEEN INCLUDED IN COLUMN (B)(III) OF SCHEDULE J, PART II. HOWARD KERN PARTICIPATED IN THE SENTARA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AND HAS ATTAINED NORMAL RETIREMENT AGE UNDER THE PLAN. PARTICIPATION IN THE PLAN IS LIMITED TO SELECT INDIVIDUALS AS APPROVED BY SENTARA HEALTH'S BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. THE PLAN IS CURRENTLY CLOSED TO ADDITIONAL MEMBERS. THE PLAN IS A DEFINED BENEFIT ARRANGEMENT UNDER WHICH MEMBERS ACCRUE AN ANNUAL FORMULA-BASED BENEFIT DURING EACH YEAR OF COVERED EMPLOYMENT, WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE FOR FEDERAL INCOME TAX PURPOSES UNTIL THE COMPLETION OF A TWO YEAR NON-COMPETE PERIOD FOLLOWING TERMINATION OR UPON DEATH. FICA AND FUTA TAXATION OF PORTIONS OF THE ACCRUED BENEFIT MAY OCCUR EARLIER THAN FEDERAL INCOME TAXATION IN ACCORDANCE WITH APPLICABLE LAW. DISTRIBUTION OF PLAN BENEFITS MAY OCCUR AT THE DATE OF APPLICABLE TAXATION (TO THE EXTENT REQUIRED TO COVER APPLICABLE TAXES) AND IN ACCORDANCE WITH THE PARTICIPANT'S ELECTED INSTALLMENT DISTRIBUTION SCHEDULE FOLLOWING TERMINATION OF EMPLOYMENT, SUBJECT TO ADHERENCE WITH THE NON-COMPETE RESTRICTIONS. IN THE CURRENT YEAR, MR. KERN WAS NO LONGER ACTIVELY ACCRUING BENEFITS; AND HE DID NOT RECEIVE ANY DISTRIBUTIONS. HOWARD KERN, ROBERT BROERMANN, MICHAEL GENTRY, TERRIE EDWARDS, DENNIS MATHEIS, PAUL GADEN, AND EARL BARNES, II 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 THE ORGANIZATION'S [OR 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: ROBERT BROERMANN ($222,448); TERRIE EDWARDS ($100,460); MICHAEL GENTRY ($170,140); HOWARD KERN ($369,201); AND DENNIS MATHEIS ($1,243,768). THESE AMOUNTS HAVE BEEN REPORTED IN COLUMN (B)(III) OF SCHEDULE J, PART II. MR. KERN WAS ALSO SUBJECT TO FICA AND FUTA TAXATION ON HIS PRE-2009 CONTRIBUTIONS DURING 2023.

PART I, LINE 7

DURING THE CURRENT TAX YEAR, THE ORGANIZATION MADE NON-FIXED PAYMENTS OF COMPENSATION UNDER THE FOLLOWING INCENTIVE PROGRAMS: 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. 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 4A:

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.

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 ACAC LLC

  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

  HEALTHCARE · VA

• PORT WARWICK SURGERY CENTER LLC

  HEALTHCARE · 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 · controlled entity

• DOMINION HEALTH MEDICAL ASSOCIATES LTD

  C · PHYS PRACTICE · VA · controlled entity

• 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