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← BEACON HEALTH SYSTEM INC

Form 990 for tax year 2023

Filed by BEACON HEALTH SYSTEM INC.

What the amendment changed

Compared with the return it replaced , filed 11 November 2024. matched by us Only the Part I totals and the names listed in Part VII are compared. We relate returns by organization, tax year and form, and order them by each return's own timestamp; the filer's own "amended return" checkbox is a separate fact.

Both are the same on the two returns, so the amendment changed something else.

Totals

Total revenue
$210,781,525
Total expenses
$187,666,941
Contributions and grants received
$1,051,522
Grants paid
$723,177
Program services expenses (Part IX)
$186,864,657
Management and general expenses
$802,284
Fundraising expenses
$0
Program service expenses (Part III)
$186,864,657

Program services were 99.6% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Listed in Part VII

  • John Martin

    Vice Chair

    Total calculated
    $1,021
    From this org
    $1,021
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Julia Willis

    Secretary

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Thomas Burish PhD

    Chair

    Total calculated
    $225
    From this org
    $225
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Tom Cassady Jr

    Treasurer

    Total calculated
    $225
    From this org
    $225
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Amish Shah

    Director

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Gene Grove

    Director

    Total calculated
    $225
    From this org
    $225
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • George Larsen Kneller MD

    Director

    Total calculated
    $292,287
    From this org
    $0
    From related orgs
    $267,446
    Other
    $24,841
    Hours/week
    2 + 40 related

    Schedule J breakdown matched by us

    Base
    $0 + $242,446 related
    Bonus
    $0 + $25,000 related
    Other
    $0
    Deferred
    $0 + $11,212 related
    Nontaxable benefits
    $0 + $13,629 related
    Filer's total
    $0 + $292,288 related

  • James Dan MD

    Director

    Total calculated
    $5,975
    From this org
    $5,975
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • James F Keenan JD

    Director

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Jesse Hsieh MD

    Director thru 3/31/23

    Total calculated
    $2,225
    From this org
    $2,225
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Karen Barnett

    Director

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Levon Johnson

    Director

    Total calculated
    $1,314
    From this org
    $1,314
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • Matthew Pletcher

    Director thru 3/31/23

    Total calculated
    $2,225
    From this org
    $2,225
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Peter Baranay

    Director

    Total calculated
    $225
    From this org
    $0
    From related orgs
    $225
    Other
    $0
    Hours/week
    2 + 2 related

  • Samir Patel MD

    Director

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2 + 2 related

  • Tim Shelly

    Director

    Total calculated
    $1,220
    From this org
    $1,220
    From related orgs
    $0
    Other
    $0
    Hours/week
    2

  • Jeffrey P Costello

    CFO

    Total calculated
    $862,270
    From this org
    $744,234
    From related orgs
    $0
    Other
    $118,036
    Hours/week
    40 + 12 related

    Schedule J breakdown matched by us

    Base
    $607,351
    Bonus
    $0
    Other
    $136,883
    Deferred
    $95,606
    Nontaxable benefits
    $22,430
    Filer's total
    $862,270

  • Kreg R Gruber

    CEO

    Total calculated
    $1,332,846
    From this org
    $1,162,712
    From related orgs
    $0
    Other
    $170,134
    Hours/week
    40 + 12 related

    Schedule J breakdown matched by us

    Base
    $1,003,311
    Bonus
    $0
    Other
    $159,401
    Deferred
    $149,636
    Nontaxable benefits
    $20,498
    Filer's total
    $1,332,846

  • Diane M Maas

    Chief Bus Dev & Plan Officer

    Total calculated
    $580,818
    From this org
    $487,609
    From related orgs
    $0
    Other
    $93,209
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $433,281
    Bonus
    $0
    Other
    $54,328
    Deferred
    $70,779
    Nontaxable benefits
    $22,430
    Filer's total
    $580,818

  • Haysam M Eldalati MD

    Chief Clinical Officer

    Total calculated
    $760,105
    From this org
    $662,325
    From related orgs
    $0
    Other
    $97,780
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $553,254
    Bonus
    $0
    Other
    $109,071
    Deferred
    $85,608
    Nontaxable benefits
    $12,173
    Filer's total
    $760,106

  • Mark A Warlick

    Chief Information Officer

    Total calculated
    $542,312
    From this org
    $457,058
    From related orgs
    $0
    Other
    $85,254
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $386,102
    Bonus
    $0
    Other
    $70,956
    Deferred
    $66,491
    Nontaxable benefits
    $18,763
    Filer's total
    $542,312

  • Scott M Eshowsky

    Medical Information Officer

    Total calculated
    $476,788
    From this org
    $438,509
    From related orgs
    $0
    Other
    $38,279
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $416,695
    Bonus
    $4,993
    Other
    $16,821
    Deferred
    $13,200
    Nontaxable benefits
    $25,079
    Filer's total
    $476,788

  • Steven M Eller

    Chief Human Resource Officer

    Total calculated
    $570,100
    From this org
    $557,831
    From related orgs
    $0
    Other
    $12,269
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $114,885
    Bonus
    $0
    Other
    $442,946
    Deferred
    $7,690
    Nontaxable benefits
    $4,579
    Filer's total
    $570,099

Compensation is as filed in Part VII: reportable pay from this organization and from related organizations, other compensation, and hours per week. The total, marked calculated, is our sum of the three dollar columns, with a blank column counted as $0; the form itself has no total. On a Form 990-EZ the columns are Part IV's instead — compensation, contributions to benefit plans, and expense account — and the total sums those. A Schedule J breakdown is as filed: base pay, bonus, other, deferred compensation and nontaxable benefits from this organization, with any from related organizations beside each, and the filer's own total. It is shown with the Part VII listing of the same name on the same return. The form gives no key between the two, so that pairing is ours, and is marked matched by us.

Schedule J

Answered yes

  • 1a · Health or social club dues or initiation fees
  • 1b · Written policy on the line-1a expenses
  • 2 · Substantiation required before reimbursing expenses
  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Written employment contract
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4b · Supplemental nonqualified retirement plan
  • 7 · Other non-fixed payments

Answered no

  • 4a · Severance or change-of-control payment
  • 4c · Equity-based compensation arrangement
  • 5a · Pay contingent on this organization's revenues
  • 5b · Pay contingent on a related organization's revenues
  • 6a · Pay contingent on this organization's net earnings
  • 6b · Pay contingent on a related organization's net earnings
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

Schedule J, Part I, Line 1a Health or social club dues or initiation fees
COMPLIMENTARY HEALTH CLUB MEMBERSHIP WITH BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER IS OFFERRED TO DIRECTORS. BEACON HEALTH SYSTEM, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON HEALTH SYSTEM ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: SAMIR PATEL, AMISH SHAH, JAMES KEENAN, JOHN MARTIN, JULIA WILLIS, KAREN BARNETT, TIM SHELLY, AND LEVON JOHNSON.
Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan
BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUAL RECEIVED VESTED PAYMENTS IN 2023, REFLECTED IN COLUMN (B)(III): * KREG GRUBER, $113,175 * JEFFREY COSTELLO, $96,631 * STEVEN ELLER, $366,334 * DIANE MAAS, $41,284 * MARK WARLICK, $47,735 * HAYSAM ELDALATI, $90,903 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2023 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: * KREG GRUBER, $136,436 * JEFFREY COSTELLO, $82,406 * MARK WARLICK, $53,291 * DIANE MAAS, $57,579 * HAYSAM ELDALATI, $72,408
Schedule J, Part I, Line 7 Non-fixed payments
THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT, AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE MANAGEMENT INCENTIVE IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD.
Schedule J, Part I, Line 3 ARRANGEMENT USED TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION
THE BEACON HEALTH SYSTEM, INC. COMPENSATION REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTED TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION.

Part I's answers as filed. A line not listed was left unanswered; on lines 1a and 3 that means the box was not checked.

Grants on this return

No itemized grants to organizations on this return.

Related organizations on this return

Schedule R Part II: tax-exempt organizations related to the filer by control. It does not record shared board members or money.

Provenance

Return type
form_990
Tax year
2023
Filed
22 November 2024
IRS schema version
2023v5.1
Source object
202443279349301344

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