Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $2,110,989

• 2a · Program service revenue: Management fees

  total $723,947,777 · related or exempt $713,890,040 · unrelated business $10,057,737

• 2b · Program service revenue: Other program service rev

  total $38,299,192 · related or exempt $38,299,192

• 2c · Program service revenue: Incentive/quality revenue

  total $5,226,744 · related or exempt $5,226,744

• 3 · Investment income

  total $19,585,430 · excluded $19,585,430

• 6a · Gross rents

  real property $3,697,804

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $3,697,804

• 6d · Net rental income or loss

  total $3,697,804 · excluded $3,697,804

• 7a · Gross sales of assets other than inventory

  securities $8,546,514

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

  securities $0 · other assets $145,607

• 7c · Gain or loss

  securities $8,546,514 · other assets -$145,607

• 7d · Net gain or loss

  total $8,400,907 · excluded $8,400,907

• 11a · Other revenue: Vendor rebates

  total $11,925,330 · unrelated business $4,983,819 · excluded $6,941,511

• 11b · Other revenue: Health plan liability adj

  total $177,287 · excluded $177,287

• 11d · All other revenue

  total -$8,305,120 · unrelated business -$8,106,038 · excluded -$199,082

• 11e · Other revenue, total

  $3,797,497

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $2,474,187 · program services $2,474,187

• 2 · Grants to domestic individuals

  total $12,700 · program services $12,700

• 3 · Grants to foreign organizations and individuals

  total $99,100 · program services $99,100

• 5 · Compensation of officers, directors and key employees

  total $30,705,251 · management and general $30,705,251

• 6 · Compensation of disqualified persons

  total $6,119,281 · program services $1,458,803 · management and general $4,660,478

• 7 · Other salaries and wages

  total $323,299,840 · program services $83,987,829 · management and general $238,142,084 · fundraising $1,169,927

• 8 · Pension plan contributions

  total $13,966,989 · program services $2,044,797 · management and general $11,894,348 · fundraising $27,844

• 9 · Other employee benefits

  total $57,830,147 · program services $14,683,058 · management and general $43,006,074 · fundraising $141,015

• 10 · Payroll taxes

  total $22,096,667 · program services $6,365,603 · management and general $15,647,880 · fundraising $83,184

• 11a · Fees: management

  total $4,350,903 · management and general $4,350,903

• 11b · Fees: legal

  total $8,609,705 · management and general $8,609,705

• 11c · Fees: accounting

  total $7,912,920 · management and general $7,912,920

• 11d · Fees: lobbying

  total $147,363 · program services $147,363

• 11g · Fees: other

  total $226,486,581 · program services $76,781,761 · management and general $147,597,262 · fundraising $2,107,558

• 12 · Advertising and promotion

  total $36,642,056 · management and general $36,642,056

• 13 · Office expenses

  total $9,965,054 · program services $548,352 · management and general $9,388,230 · fundraising $28,472

• 14 · Information technology

  total $166,290,940 · program services $152,466,083 · management and general $13,344,222 · fundraising $480,635

• 16 · Occupancy

  total $4,936,351 · program services $4,021,564 · management and general $914,787

• 17 · Travel

  total $3,292,490 · program services $989,924 · management and general $2,232,497 · fundraising $70,069

• 19 · Conferences, conventions and meetings

  total $154,420 · program services $53,602 · management and general $98,721 · fundraising $2,097

• 20 · Interest

  total $15,924,358 · program services $15,924,358

• 22 · Depreciation, depletion and amortization

  total $15,612,661 · program services $6,708,097 · management and general $8,904,564

• 23 · Insurance

  total $1,121,188 · program services $1,069,880 · management and general $51,308

• 24a · Other expenses: Patient care supplies

  total $2,832,383 · program services $2,832,383

• 24b · Other expenses: Income taxes

  total $849,820 · program services $640,239 · management and general $209,581

• 24c · Other expenses: Rental/lease costs equi

  total $147,151 · program services $64,024 · management and general $83,127

• 24e · All other expenses

  total $28,838,919 · management and general $27,059,342 · fundraising $1,779,577

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $135,374,941 · end of year $35,437,844

• 3 · Pledges and grants receivable

  beginning of year $89,184 · end of year $68,440

• 4 · Accounts receivable

  beginning of year $9,297 · end of year $91,259

• 5 · Loans and receivables from officers and key people

  beginning of year $55,371,889 · end of year $78,463,561

• 7 · Other notes and loans receivable

  beginning of year $14,305,802 · end of year $11,130,344

• 9 · Prepaid expenses and deferred charges

  beginning of year $63,431,497 · end of year $56,547,460

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

  $558,831,751

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

  $286,121,924

• 10c · Land, buildings and equipment, net

  beginning of year $296,202,265 · end of year $272,709,827

• 11 · Investments: publicly traded securities

  beginning of year $1,786,832,863 · end of year $1,369,538,812

• 12 · Investments: other securities

  beginning of year $424,442,133 · end of year $446,294,194

• 13 · Investments: program-related

  beginning of year $159,048,311 · end of year $203,788,888

• 15 · Other assets

  beginning of year $392,798,293 · end of year $690,389,346

• 17 · Accounts payable and accrued expenses

  beginning of year $318,646,602 · end of year $468,522,572

• 19 · Deferred revenue

  beginning of year $2,936,887 · end of year $2,361,853

• 20 · Tax-exempt bond liabilities

  beginning of year $2,026,833,028 · end of year $2,393,700,560

• 23 · Secured mortgages and notes payable

  beginning of year $29,999,750 · end of year $0

• 25 · Other liabilities

  beginning of year $683,044,553 · end of year $186,898,008

• 27 · Net assets without donor restrictions

  beginning of year $265,165,453 · end of year $110,221,949

• 28 · Net assets with donor restrictions

  beginning of year $1,280,202 · end of year $2,755,033

The filer's explanations (Part III)

Part I, Line 1a

Tax indemnification and gross-up payments are paid to 10 board of directors. These were included in taxable income. Social club dues were paid for one officer. This was not included in taxable compensation.

Part I, Lines 4a-b

Severance payments are made based upon agreements between certain qualifying employees and Adventist Health System/West. Details of the terms and conditions of the severance agreements are available to the IRS upon request. Ashlock, Mark - severance payment - $386,312 Bancarz, Gloria - severance payment - $511,652 Beehler, Robert - severance payment - $501,136 Byrnes, John - severance payment - $465,750 El-Asmar, Hoda - severance payment - $659,431 Hilmes, George - severance payment - $201,923 Long, Collier - severance payment - $388,924 Whetstine, Tyler - severance payment - $230,769 Wing, Bill - severance payment - $1,584,880 The Supplemental Executive Retirement Plan (SERP) is a defined contribution plan designed to encourage the participants continued employment with Adventist Health and is subject to the participants satisfying specified substantial risks of forfeiture. The SERP benefit distribution occurs when the executive achieves 30 years of Adventist health care service, 20 of which are to be as an executive and at least 10 are to be with Adventist Health System/West, and reaches age 60. Until that time, the SERP benefit is at risk to the creditors of Adventist Health. The SERP benefit is designed to help the executive receive employer-provided retirement benefit income equal to 60% of pre-retirement income. The SERP plan was frozen for new participants in 2016. Larsen, David - participant, no activity in 2022 Raffoul, John - participant, no activity in 2022 Select executives agreed to participate in CAP-EX in place of a traditional SERP. See Schedule L, Part V, for a broader description. Split-Dollar life insurance participants are Mark Ashlock, John Beaman, Jeff Eller, Kerry Heinrich, Todd Hofheins, Andrew Jahn, Joyce Newmyer, Scott Reiner, Brett Spenst, and Bill Wing. A flexible benefits plan (CAA) is offered to groups of highly-compensated employees meeting certain criteria. The participants are provided with an amount equivalent to 41 percent of their base compensation, less the value of their corporate provided benefits. The balance is set aside for nonvested deferred compensation that is subject to substantial risk of forfeiture and is at risk to the creditors of Adventist Health. Payouts occur according to the participants' payment elections after all substantial risks of forfeiture have lapsed. The plan was frozen for new non-vested contributions in 2016. Jahn, Andrew - participant, no activity in 2022 Newmyer, Joyce - participant, no activity in 2022 Part II: Eller, Jeff, Former President, NCR was paid through an unrelated organization, Jeffrey D Eller dba Mountaingate Coaching that was reported on Form 1099 and included in Schedule J, Part II.

Disregarded entities

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

• Adventist Health Outpatient Pharmacy Services LLC

  Inactive · CA · income $0 · assets $0

  Directly controlled by Adventist Health SystemWest

• Dwellcare LLC

  Inactive · CA · income $0 · assets $0

  Directly controlled by Adventist Health SystemWest

• Incentive Acute Care Network LLC

  Acute care network · CA · income $0 · assets $0

  Directly controlled by Adventist Health SystemWest

• Incentive Health LLC

  MSO · CA · income $41,492,931 · assets $15,647,885

  Directly controlled by Adventist Health SystemWest

• Paradise Skyway LLC

  Inactive · CA · income $0 · assets $0

  Directly controlled by Adventist Health SystemWest

Related partnerships

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

• Blue Legacy Ventures LLC

  Excluded · Real property rental · FL · 50% owned · share of income -$685,221 · share of assets $2,678,285 · general or managing partner

  Directly controlled by Adventist Health SystemWest

• Blue Zones LLC

  Unrelated · Education · MN · 100% owned · share of income $5,615,995 · share of assets $25,385,978

  Directly controlled by Adventist Health SystemWest

• PAR LLC dba CherryWood Village

  Unrelated · Senior housing · OR · 50% owned · share of income $226,284 · share of assets $8,003,176 · general or managing partner

  Directly controlled by Adventist Health SystemWest

• PVHR LLC dba Paradise Village

  Unrelated · Senior housing · OR · 50% owned · share of income -$425,270 · share of assets $15,121,541 · general or managing partner

  Directly controlled by Adventist Health SystemWest

• PVHR2 LLC dba Parkview Memory Care at Paradise Village

  Unrelated · Senior housing · OR · 50% owned · share of income -$93,089 · share of assets $3,212,389 · general or managing partner

  Directly controlled by Adventist Health SystemWest

• WWGHR LLC - dba Wheatland Village

  Unrelated · Senior housing · OR · 50% owned · share of income -$131,858 · share of assets $3,616,874 · general or managing partner

  Directly controlled by Adventist Health SystemWest

Related corporations and trusts

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

• AdHealth Limited

  C · Pure captive insurance · BD · 50% owned · share of income $503,989 · share of assets $2,119,087

  Directly controlled by Adventist Health SystemWest

• Adventist Health Plan Inc

  C · Health insurance · CA · 100% owned · share of income $39,863,543 · share of assets $9,091,056 · controlled entity

  Directly controlled by Adventist Health SystemWest

• South Coast Medical Center

  C · Wind down after sale of hospital · CA · 100% owned · controlled entity

  Directly controlled by Adventist Health SystemWest

• Thrive Productions Inc

  C · Production company · MN · 100% owned · share of assets $36,068 · controlled entity

  Directly controlled by Adventist Health SystemWest