Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $105,477

• 1c · Fundraising events

  $1,247,038

• 1d · Related organizations

  $6,360,000

• 1f · All other contributions, gifts and grants

  $14,546,458

• 1g · Noncash contributions included above

  $2,157,807

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $4,310,385,981 · related or exempt $4,290,273,052 · unrelated business $20,112,929

• 2b · Program service revenue: AFFILIATE EXPENSE REIMBURSEMENT

  total $664,813,936 · related or exempt $664,813,936

• 2c · Program service revenue: CLINICAL AFFILIATION PAYMENTS

  total $232,208,226 · related or exempt $232,208,226

• 2d · Program service revenue: SCIENTIFIC RESEARCH

  total $68,127,547 · related or exempt $68,127,547

• 2e · Program service revenue: MEDICAL EDUCATION

  total $3,985,013 · related or exempt $3,985,013

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $41,462,894 · excluded $41,462,894

• 6a · Gross rents

  real property $5,885,731

• 6c · Rental income or loss

  real property $5,885,731 · personal property $0

• 6d · Net rental income or loss

  total $5,885,731 · unrelated business $148,215 · excluded $5,737,516

• 7a · Gross sales of assets other than inventory

  securities $184,583,868

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

  securities $169,940,918 · other assets $253,666

• 7c · Gain or loss

  securities $14,642,950 · other assets -$253,666

• 7d · Net gain or loss

  total $14,389,284 · excluded $14,389,284

• 8a · Fundraising events: gross income

  $1,329,447

• 8a · Fundraising events: contributions included on line 1c

  $1,247,038

• 8b · Fundraising events: direct expenses

  $1,981,069

• 8c · Net income from fundraising events

  total -$651,622 · excluded -$651,622

• 11a · Other revenue: PHARMACY REVENUE

  total $175,981,178 · unrelated business $1,375,661 · excluded $174,605,517

• 11b · Other revenue: CAFETERIA SALES

  total $11,523,286 · excluded $11,523,286

• 11c · Other revenue: PARKING

  total $7,525,715 · excluded $7,525,715

• 11d · All other revenue

  total $62,441,451 · related or exempt $0 · unrelated business $0 · excluded $62,441,451

• 11e · Other revenue, total

  $257,471,630

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $204,195 · program services $204,195

• 2 · Grants to domestic individuals

  total $261,686 · program services $261,686

• 5 · Compensation of officers, directors and key employees

  total $39,896,636 · program services $37,086,928 · management and general $2,793,929 · fundraising $15,779

• 7 · Other salaries and wages

  total $2,126,292,075 · program services $1,977,807,196 · management and general $147,608,505 · fundraising $876,374

• 8 · Pension plan contributions

  total -$8,325,328 · program services -$7,631,551 · management and general -$693,777

• 9 · Other employee benefits

  total $305,369,490 · program services $279,931,206 · management and general $25,426,215 · fundraising $12,069

• 10 · Payroll taxes

  total $128,386,223 · program services $118,113,998 · management and general $10,217,665 · fundraising $54,560

• 11b · Fees: legal

  total $4,098,310 · program services $465,294 · management and general $3,633,016

• 11c · Fees: accounting

  total $1,289,851 · program services $517 · management and general $1,289,334

• 11d · Fees: lobbying

  total $81,057 · program services $81,057

• 11e · Fees: professional fundraising services

  total $227,420 · fundraising $227,420

• 11f · Fees: investment management

  total $2,114,853 · management and general $2,114,853

• 11g · Fees: other

  total $421,279,021 · program services $316,768,468 · management and general $104,510,553 · fundraising $0

• 12 · Advertising and promotion

  total $2,017,233 · program services $1,840,621 · management and general $176,612

• 13 · Office expenses

  total $38,610,150 · program services $35,076,781 · management and general $3,517,510 · fundraising $15,859

• 14 · Information technology

  total $59,530,251 · program services $55,051,316 · management and general $4,478,187 · fundraising $748

• 16 · Occupancy

  total $228,824,286 · program services $210,608,057 · management and general $18,216,229

• 17 · Travel

  total $5,577,293 · program services $5,106,123 · management and general $470,469 · fundraising $701

• 19 · Conferences, conventions and meetings

  total $5,316,869 · program services $4,776,806 · management and general $539,245 · fundraising $818

• 20 · Interest

  total $30,005,748 · program services $27,005,744 · management and general $3,000,004

• 22 · Depreciation, depletion and amortization

  total $210,379,803 · program services $189,168,916 · management and general $21,210,775 · fundraising $112

• 23 · Insurance

  total $46,128,041 · program services $43,752,758 · management and general $2,375,283

• 24a · Other expenses: PATIENT CARE SUPPLIES & DRUG

  total $1,093,621,041 · program services $1,093,202,306 · management and general $418,735

• 24b · Other expenses: REIMBURSEMENT TO AFFILAITES

  total $568,057,832 · program services $426,833,978 · management and general $141,223,854

• 24c · Other expenses: PATIENT BAD DEBT

  total $72,773,503 · program services $72,773,503

• 24d · Other expenses: Food/Dietary Provisions

  total $20,537,505 · program services $18,500,150 · management and general $2,037,255 · fundraising $100

• 24e · All other expenses

  total $109,485,744 · program services $106,005,259 · management and general $3,480,485 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $467,822 · end of year $549,502

• 2 · Savings and temporary cash investments

  beginning of year $237,604,386 · end of year $156,223,702

• 3 · Pledges and grants receivable

  beginning of year $9,275,255 · end of year $11,137,060

• 4 · Accounts receivable

  beginning of year $480,184,236 · end of year $635,463,073

• 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 $2,853,564 · end of year $4,000,000

• 8 · Inventories for sale or use

  beginning of year $61,562,200 · end of year $69,268,542

• 9 · Prepaid expenses and deferred charges

  beginning of year $54,087,198 · end of year $36,081,832

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

  $3,394,876,709

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

  $1,538,125,921

• 10c · Land, buildings and equipment, net

  beginning of year $1,798,358,551 · end of year $1,856,750,788

• 11 · Investments: publicly traded securities

  beginning of year $377,409,329 · end of year $416,286,374

• 12 · Investments: other securities

  beginning of year $151,526 · end of year $151,526

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $140,512,898 · end of year $150,262,144

• 15 · Other assets

  beginning of year $1,070,406,402 · end of year $998,133,605

• 17 · Accounts payable and accrued expenses

  beginning of year $640,368,304 · end of year $594,630,296

• 19 · Deferred revenue

  beginning of year $60,993,080 · end of year $54,804,278

• 20 · Tax-exempt bond liabilities

  beginning of year $955,035,097 · end of year $930,916,014

• 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 $1,797,594 · end of year $903,366

• 25 · Other liabilities

  beginning of year $650,624,112 · end of year $677,498,370

• 27 · Net assets without donor restrictions

  beginning of year $1,594,420,929 · end of year $1,715,328,341

• 28 · Net assets with donor restrictions

  beginning of year $329,634,251 · end of year $360,227,483

The filer's explanations (Part III)

Schedule J, Part I, Line 1a First-class or charter travel

ONE KEY INDIVIDUAL LISTED IN FORM 990 UTILIZED CHARTER TRAVEL AND TRAVEL FOR COMPANIONS DURING THE YEAR ENDED DECEMBER 31, 2023. THESE VALUES WERE INCLUDED IN BOX 5 OF THE IRS FORM W-2.

Schedule J, Part I, Line 1a Travel for companions

ONE KEY INDIVIDUAL LISTED IN FORM 990 UTILIZED CHARTER TRAVEL AND TRAVEL FOR COMPANIONS DURING THE YEAR ENDED DECEMBER 31, 2023. THESE VALUES WERE INCLUDED IN BOX 5 OF THE IRS FORM W-2.

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

A SELECT NUMBER OF INDIVIDUALS LISTED IN FORM 990, PART VII RECEIVED TAX GROSS-UP PAYMENTS FROM THE ORGANIZATION. THESE WERE INCLUDED IN BOX 5 OF THEIR IRS FORM W-2.

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

THE ORGANIZATION PROVIDED SOCIAL CLUB DUES FOR A SELECT NUMBER OF INDIVIDUALS LISTED IN FORM 990, PART VII DURING THE YEAR ENDED DECEMBER 31, 2023. THESE VALUES WERE BUSINESS RELATED AND NOT INCLUDED IN TAXABLE COMPENSATION.

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

THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS AS OF DECEMBER 31, 2023. THESE AMOUNT ARE INCLUDED IN BOX 5 OF THEIR IRS FORM W-2. CYNTHIA HUNDORFEAN $1,953,079 DENZIL RUPERT $ 425,169 CLAIRE ZANGERLE $ 358,428 LOUISE URBAN $ 534,900 JOHN LEE $ 502,704 ALLIE QUICK $ 56,271

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

HIGHMARK HEALTH HAS A NON-QUALIFIED SUPPLEMENTAL RETIREMENT PLAN. THE SUPPLEMENTAL RETIREMENT PLAN IS OFFERED TO ELIGIBLE EMPLOYEES WHOSE RETIREMENT BENEFITS IN QUALIFIED PLANS ARE LIMITED DUE TO IRS REGULATIONS. AMOUNTS IN THE PLAN ARE VESTED WHEN THE PARTICIPANT REACHES AGE 55 AND HAS 3 YEARS OF SERVICE. ONCE VESTED, THE 457F BALANCE IS PAID TO THE PARTICIPANT, BOTH INITIALLY AND THEN EVERY DECEMBER THEREAFTER (WHEN A NEW 457F CONTRIBUTION IS MADE). PARTICIPANTS WHO VOLUNTARILY LEAVE THE ORGANIZATION BEFORE AGE 55 OR 3 YEARS OF SERVICE FORFEIT THEIR ENTIRE 457F BENEFIT UPON TERMINATION. THE FOLLOWING INDIVIDUALS RECEIVED 457(F) CONTRIBUTIONS THAT WERE INCLUDED IN 2023 W-2 COMPENSATION: *DAVID HOLMBERG $566,848 *CYNTHIA HUNDORFEAN $117,196 *TONY FARAH $123,665 JAMES BENEDICT $104,211 DONALD WHITING $95,160 BRIAN PARKER $42,425 *JACQUELINE BAUER $24,113 ALLAN KLAPPER $12,710 CHONG PARK $10,326 MARK RUBINO $7,565 *INDIVIDUALS PAID BY A RELATED ORGANIZATION THE FOLLOWING INDIVIDUALS HAD 457(F) CONTRIBUTIONS DEFERRED IN 2023: *KAREN HANLON $238,524 *BRUCE MEYER $ 69,900 JAMES ROHRBAUGH $27,693 ASHIS BARAD $ 9,078 CHRISTOPHER CLARK $ 1,447 BRIAN JOHNSON $ 1,450 *INDIVIDUALS PAID BY A RELATED ORGANIZATION

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

HIGHMARK HEALTH GROUP (HHG) PROVIDES BONUS COMPENSATION AS PART OF ITS TOTAL COMPENSATION PROGRAM FOR OFFICERS AND KEY EMPLOYEES. IN THE VAST MAJORITY OF ARRANGEMENTS, THE COMPONENT IS BASED UPON ACCOMPLISHMENT OF PREDETERMINED PERFORMANCE GOALS AND OBJECTIVES AND RESULTS IN FIXED PAYMENTS. CERTAIN ENTITIES WITHIN THE HIGHMARK HEALTH GROUP, HOWEVER, HAVE ENTERED INTO ARRANGEMENT WHICH PROVIDE FOR OTHER BONUSES WHICH ARE DISCRETIONARY IN NATURE, TO A LIMITED NUMBER OF THOSE PERSONS LISTED IN THIS FORM 990, PART VII, SECTION A, LINE 1A. NOTWITHSTANDING SUCH DISCRETION AND ASSUMING FULL PAYOUT OF SUCH DISCRETIONARY PAYMENTS, THE TOTAL COMPENSATION PAID TO THOSE PERSONS FALLS WITHIN THE RANGE OF FAIR MARKET VALUE.

Schedule J, Part I, Line 8 Payments on contract that is subject to the initial contract exception

HIGHMARK HEALTH GROUP (HHG) HAS CERTAIN EMPLOYMENT CONTRACTS WHICH MAY QUALIFY FOR THE INITIAL CONTRACT EXCEPTION UNDER IRC REGULATION 53.4958-4(A)(3). IF SO QUALIFIED THE REBUTTABLE PRESUMPTION PROCEDURES DESCRIBED IN IRC REGULATION 53.4958-6(C) WERE FOLLOWED.

Disregarded entities

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

• AHN Surgery Center - Bethel Park LLC

  Healthcare · PA · income $12,298,785 · assets $1,941,107

  Directly controlled by AHN

• JRMC Diagnostic Services LLC

  Healthcare · PA · income $0 · assets $254,306

  Directly controlled by JRMC

• Peters Township ASC LLC

  Healthcare · PA · income $0 · assets $1,099,206

  Directly controlled by WPAHS

• SV Shared Savings Program ACO LLC

  Inactive · PA · income $0 · assets $0

  Directly controlled by SVHC

• SVEC LLC

  Inactive · PA · income $0 · assets $0

  Directly controlled by SVHC

• West Penn Allegheny Foundation LLC

  Capital Acq. · PA · income $915,450 · assets $19,468,926

  Directly controlled by WPAHS

• West Penn ASC LLC

  Inactive · PA · income $0 · assets $0

  Directly controlled by WPAHS

• AHN Home Infusion

  Heathcare · PA · income $69,235,872 · assets $18,373,402

  Directly controlled by SVHS

• Allegheny Health Network Home Medical Equipment LLC

  Healthcare · PA · income $36,888,584 · assets $17,199,762

  Directly controlled by WPAHS

• North Shore Endoscopy Center

  inactive · PA · income $0 · assets $0

  Directly controlled by WPAHS

• WSC Realty Partners LLC

  Real Estate · PA · income $919,874 · assets $9,391,482

  Directly controlled by JRMC

Related partnerships

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

• 5148 Liberty Avenue Associates

  Excluded · Property Rental · PA · 50% owned · share of income $140,527 · share of assets $653,532

  Directly controlled by WPAHS Inc

• AHN Emerus LLC

  Related · Medical Practice · PA · 51% owned · share of income $1,868,717 · share of assets $5,011,990

  Directly controlled by AHN

• AHN- Lecom JV LLC

  Related · HEALTHCARE · PA · 50% owned · share of income $0 · share of assets $845,873,850

  Directly controlled by AHN

• Celtic Hospice LLC

  Related · Medical Practice · PA · 79.9% owned · share of income $1,811,921 · share of assets $18,171,740

  Directly controlled by WPAHS Inc

• JV Holdco LLC

  Related · Holding Company · PA · 59.61% owned · share of income $6,199,803 · share of assets $30,820,520

  Directly controlled by WPAHS Inc

• Mccandless Endoscopy Center

  Related · Medical Practice · PA · 50% owned · share of income $447,120 · share of assets $348,310

  Directly controlled by WPAHS Inc

• Provider PPI LLC

  Related · Group Purchasing · PA · 99.5% owned · share of income $5,343,007 · share of assets $50,126,719

  Directly controlled by HMPG

• Saint Vincent Professional Bld

  Related · Property Mgmt · PA · 100% owned · share of income $4,086 · share of assets $964,154

  Directly controlled by CSI

• Vantage Holding Company LLC

  Related · Capital Mgmt · PA · 50.53% owned · share of income -$1,051,846 · share of assets $1,211,368

  Directly controlled by CSI

• JEFFERSON MEDICAL ASSOCIATES LP

  Related · REAL ESTATE · PA · 90% owned · share of income $312,465 · share of assets $12,873,685

  Directly controlled by JRMC

Related corporations and trusts

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

• Clinical Services Inc

  C Corporation · Holding Company · PA · 100% owned · share of income $1,250,753 · share of assets $54,246,020 · controlled entity

  Directly controlled by AHN

• Health System Services Corp

  C Corporation · Real Estate Ops · PA · 100% owned · share of income $2,936,128 · share of assets $12,506,653 · controlled entity

  Directly controlled by CSI

• HMPG Inc

  C Corporation · Holding Company · PA · 100% owned · share of income $16,078,887 · share of assets $192,882,931 · controlled entity

  Directly controlled by CSI

• Palladium Risk Retention Group

  C Corporation · Insurance · VT · 100% owned · share of income $0 · share of assets $3,817,000 · controlled entity

  Directly controlled by WPAHS Inc

• Physician Landing Zone PC

  C Corporation · Health Care · PA · 100% owned · share of income -$2,400 · share of assets $6,745,097 · controlled entity

  Directly controlled by AC

• Premier Medical Associates PC

  C Corporation · Medical Practice · PA · 100% owned · share of income $52,252,302 · share of assets $17,549,040 · controlled entity

  Directly controlled by AC

• Premier Women's Health

  C Corporation · Medical Practice · PA · 100% owned · share of income $0 · share of assets $0 · controlled entity

  Directly controlled by AC

• West Penn Neurosurgery PC

  C Corporation · Inactive · PA · 100% owned · share of income $0 · share of assets $0 · controlled entity

  Directly controlled by WPAHS Inc

• SV Consultants in Cardio Disease LLC

  C Corporation · Healthcare · PA · 100% owned · share of income $6,390,650 · share of assets $6,769,491 · controlled entity

  Directly controlled by CSI

• SV NWPA Surgery Center LTD

  C Corporation · Inactive · PA · 75.1% owned · share of income $0 · share of assets $0 · controlled entity

  Directly controlled by CSI

• Wexford medical mall and Hospital Condo Assoc

  C Corporation · Real Estate Ops · PA · 100% owned · share of income $0 · share of assets $5,164 · controlled entity

  Directly controlled by WPAHS INc