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Nonprofiteer
← MERCY HEALTH SYSTEM CORPORATION

Form 990 for tax year 2022

Filed by MERCY HEALTH SYSTEM CORPORATION.

Totals

Total revenue
$685,918,513
Total expenses
$626,620,672
Contributions and grants received
$719,258
Grants paid
$0
Program service revenue
$672,076,926
Investment income
$6,641,987
Other revenue
$6,480,342
Total assets, end of year
$870,399,620
Total liabilities, end of year
$369,997,359
Net assets or fund balances, end of year
$500,402,261
Program services expenses (Part IX)
$495,391,182
Management and general expenses
$131,229,490
Fundraising expenses
$0
Program service expenses (Part III)
$495,391,182

Program services were 79.1% of total expenses calculated — Part IX's program-services column over total expenses, both as filed.

Listed in Part VII

  • Javon R Bea

    president/CEO (see schedule J, pages 57 - 59)

    Total calculated
    $11,561,020
    From this org
    $11,130,143
    From related orgs
    $0
    Other
    $430,877
    Hours/week
    60 + 7 related

    Schedule J breakdown matched by us

    Base
    $2,193,820
    Bonus
    $1,660,233
    Other
    $7,276,090
    Deferred
    $413,098
    Nontaxable benefits
    $17,779
    Filer's total
    $11,561,020

  • Rowland J McClellan

    Chair & Director

    Total calculated
    $19,324
    From this org
    $19,324
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Thomas D Budd

    Secretary & Treasurer

    Total calculated
    $12,086
    From this org
    $12,086
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Thomas R Pool

    Vice Chair & Director

    Total calculated
    $13,500
    From this org
    $13,500
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Dave L Syverson

    Director

    Total calculated
    $17,334
    From this org
    $17,334
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Katherine A Schack

    Director

    Total calculated
    $13,500
    From this org
    $13,500
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Mark L Goelzer MD

    Director/Physician

    Total calculated
    $533,652
    From this org
    $504,123
    From related orgs
    $0
    Other
    $29,529
    Hours/week
    55 + 7 related

    Schedule J breakdown matched by us

    Base
    $312,319
    Bonus
    $187,404
    Other
    $4,400
    Deferred
    $12,200
    Nontaxable benefits
    $17,329
    Filer's total
    $533,652

  • Wesley M Jost

    Director

    Total calculated
    $13,955
    From this org
    $13,955
    From related orgs
    $0
    Other
    $0
    Hours/week
    1 + 6 related

  • Alen Brcic

    VICE-PRESIDENT

    Total calculated
    $469,683
    From this org
    $428,029
    From related orgs
    $0
    Other
    $41,654
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $319,603
    Bonus
    $101,157
    Other
    $7,269
    Deferred
    $7,823
    Nontaxable benefits
    $33,831
    Filer's total
    $469,683

  • Aliakbar Abdulla Olia

    VICE-PRESIDENT

    Total calculated
    $388,890
    From this org
    $353,271
    From related orgs
    $0
    Other
    $35,619
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $273,608
    Bonus
    $70,350
    Other
    $9,313
    Deferred
    $1,357
    Nontaxable benefits
    $34,262
    Filer's total
    $388,890

  • Amy Whitaker

    VICE-PRESIDENT

    Total calculated
    $140,129
    From this org
    $139,858
    From related orgs
    $0
    Other
    $271
    Hours/week
    55

  • E Patrick Cranley

    VICE-PRESIDENT

    Total calculated
    $471,220
    From this org
    $415,702
    From related orgs
    $0
    Other
    $55,518
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $274,053
    Bonus
    $130,971
    Other
    $10,678
    Deferred
    $18,888
    Nontaxable benefits
    $36,630
    Filer's total
    $471,220

  • Jennifer A Hallett

    VICE-PRESIDENT

    Total calculated
    $465,082
    From this org
    $423,661
    From related orgs
    $0
    Other
    $41,421
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $282,492
    Bonus
    $137,542
    Other
    $3,627
    Deferred
    $12,200
    Nontaxable benefits
    $29,221
    Filer's total
    $465,082

  • Joanna Benning

    VICE-PRESIDENT

    Total calculated
    $505,247
    From this org
    $474,963
    From related orgs
    $0
    Other
    $30,284
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $322,067
    Bonus
    $151,673
    Other
    $1,223
    Deferred
    $21,674
    Nontaxable benefits
    $8,610
    Filer's total
    $505,247

  • Kara Sankey

    VICE-PRESIDENT

    Total calculated
    $459,062
    From this org
    $427,358
    From related orgs
    $0
    Other
    $31,704
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $265,026
    Bonus
    $155,788
    Other
    $6,544
    Deferred
    $4,968
    Nontaxable benefits
    $26,736
    Filer's total
    $459,062

  • Kimberly Scaccia

    VP - Revenue Cycle

    Total calculated
    $564,224
    From this org
    $499,300
    From related orgs
    $0
    Other
    $64,924
    Hours/week
    55 + 7 related

    Schedule J breakdown matched by us

    Base
    $314,004
    Bonus
    $147,040
    Other
    $38,256
    Deferred
    $21,669
    Nontaxable benefits
    $43,255
    Filer's total
    $564,224

  • Ladd Udy

    Vice-President

    Total calculated
    $312,485
    From this org
    $272,945
    From related orgs
    $0
    Other
    $39,540
    Hours/week
    55

    Schedule J breakdown matched by us

    Base
    $183,631
    Bonus
    $85,830
    Other
    $3,484
    Deferred
    $11,248
    Nontaxable benefits
    $28,292
    Filer's total
    $312,485

  • Todd Anderson

    VICE PRESIDENT/CFO

    Total calculated
    $905,304
    From this org
    $828,491
    From related orgs
    $0
    Other
    $76,813
    Hours/week
    55 + 7 related

    Schedule J breakdown matched by us

    Base
    $564,084
    Bonus
    $252,851
    Other
    $11,556
    Deferred
    $40,746
    Nontaxable benefits
    $36,067
    Filer's total
    $905,304

  • Bradley Fideler MD

    Physician

    Total calculated
    $1,219,953
    From this org
    $1,161,544
    From related orgs
    $0
    Other
    $58,409
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $856,072
    Bonus
    $257,972
    Other
    $47,500
    Deferred
    $12,200
    Nontaxable benefits
    $46,209
    Filer's total
    $1,219,953

  • David Nelsen MD

    Physician

    Total calculated
    $1,360,032
    From this org
    $1,296,873
    From related orgs
    $0
    Other
    $63,159
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $676,373
    Bonus
    $600,000
    Other
    $20,500
    Deferred
    $12,200
    Nontaxable benefits
    $50,959
    Filer's total
    $1,360,032

  • Imdad Ahmed MD

    Physician

    Total calculated
    $1,262,985
    From this org
    $1,213,836
    From related orgs
    $0
    Other
    $49,149
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $570,066
    Bonus
    $602,770
    Other
    $41,000
    Deferred
    $12,200
    Nontaxable benefits
    $36,949
    Filer's total
    $1,262,985

  • Merle Rust MD

    Physician

    Total calculated
    $1,225,455
    From this org
    $1,176,020
    From related orgs
    $0
    Other
    $49,435
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $1,097,606
    Bonus
    $30,914
    Other
    $47,500
    Deferred
    $12,200
    Nontaxable benefits
    $37,235
    Filer's total
    $1,225,455

  • Shahid Shekhani MD

    Physician

    Total calculated
    $1,916,885
    From this org
    $1,863,835
    From related orgs
    $0
    Other
    $53,050
    Hours/week
    40

    Schedule J breakdown matched by us

    Base
    $245,888
    Bonus
    $1,570,447
    Other
    $47,500
    Deferred
    $12,200
    Nontaxable benefits
    $40,850
    Filer's total
    $1,916,885

  • James Davis

    former VICE-PRESIDENT

    Total calculated
    $248,165
    From this org
    $213,871
    From related orgs
    $0
    Other
    $34,294
    Hours/week
    0

    Schedule J breakdown matched by us

    Base
    $79,369
    Bonus
    $0
    Other
    $134,502
    Deferred
    $4,471
    Nontaxable benefits
    $29,823
    Filer's total
    $248,165

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, and on a Form 990-PF Part VIII's — 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

  • 3 · Compensation committee
  • 3 · Independent compensation consultant
  • 3 · Form 990 of other organizations
  • 3 · Compensation survey or study
  • 3 · Approval by the board or compensation committee
  • 4a · Severance or change-of-control payment
  • 4b · Supplemental nonqualified retirement plan

Answered no

  • 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
  • 7 · Other non-fixed payments
  • 8 · Paid under the initial-contract exception

The filer's explanations (Part III)

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation
THE CEO IS PAID FROM A RELATED ORGANIZATION, MERCY HEALTH SYSTEM CORPORATION (MHSC). MHSC USES THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE CEO: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATION, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY OR STUDY AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. THE MERCY COMPENSATION COMMITTEE OF MHSC IS COMPRISED OF THE BOARD CHAIRPERSON, VICE CHAIR AND SECRETARY/TREASURER. THE COMPENSATION COMMITTEE IS ASSISTED BY INDEPENDENT LEGAL COUNSEL AND AN INDEPENDENT COMPENSATION CONSULTANT. THE COMPENSATION COMMITTEE, LEGAL COUNSEL, AND THE COMPENSATION CONSULTANT MEET THROUGHOUT THE YEAR AND REPORT DIRECTLY TO THE BOARD OF DIRECTORS ANNUALLY. THIS PROCESS WAS COMPLETED FOR 2022.
Schedule J, Part I, Line 4a Severance or change-of-control payment
James Davis received 26 weeks severance pay $119,025 in 2022.
Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan
INCENTIVE PLAN DISTRIBUTION: JAVON R. BEA - $4,953,609 Todd Anderson, Joanna Benning, and E. Patrick Cranley participated in the 457(f) plan during Calendar year 2022. However, they did not receive a payout during calendar year 2022.
Schedule J, Part II
JAVON R. BEA - DEFERRED COMPENSATION PAYMENT MR. BEA HAS BEEN EMPLOYED BY MHSC AS PRESIDENT AND CEO OVER THE PAST 30 YEARS. DURING THIS TIME, MR. BEA HAS LED AN INCREDIBLE TRANSFORMATION TAKING A SMALL, SINGLE, STAND-ALONE COMMUNITY HOSPITAL AND CREATING A VERTICALLY INTEGRATED HEALTH SYSTEM WITH 85 FACILITIES IN 50 COMMUNITIES THROUGHOUT SOUTHERN WISCONSIN AND NORTHERN ILLINOIS, INCREASING GROSS REVENUE FROM $33 MILLION TO OVER $3.6 BILLION IN FY2023. THIS HAS ALLOWED THE HEALTH SYSTEM TO GO FROM SERVING 89,000 PATIENTS IN 1989 TO OVER 1.8 MILLION PATIENTS TODAY WORKING TOGETHER WITH OVER 7,500+ PARTNERS IN HEALTH CARE. TODAY, MHSC HAS BECOME THE LARGEST EMPLOYER IN SOUTHERN WISCONSIN AND NORTHERN ILLINOIS. THIS GROWTH CAN BE ATTRIBUTED TO MR. BEA'S VISIONARY LEADERSHIP. LEADERSHIP THAT HAS LED TO MHSC RECEIVING NUMEROUS NATIONAL RECOGNIZED AWARDS INCLUDING BEING NAMED THE FIRST FULLY INTEGRATED HEALTH SYSTEM TO RECEIVE THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD, THE MAGNET RECOGNITION AWARD, BEING RANKED #1 AND #2 ON AARP'S TOP 100 BEST PLACES TO WORK FOR WORKERS OVER 50, AND BEING RANKED IN THE TOP 25 ON THE TOP 100 INTEGRATED HEALTHCARE NETWORKS LIST BY MODERN HEALTHCARE FOR OVER 12 STRAIGHT YEARS. THE TURNAROUND OF THE MHSC IMPLEMENTED BY MR. BEA IS UNPARALLELED. BY PIONEERING A "PARTNERSHIP MODEL" OF COMPENSATION AND DESIGNING A CUSTOM CULTURE OF EXCELLENCE, MR. BEA IS VITAL TO THE DECADES-LONG AND CONTINUING GROWTH AT MHSC. THIS SUCCESS HAS MADE MR. BEA A HIGHLY SOUGHT AFTER SPEAKER AND CONSULTANT AS HE IS NOW WELL-RENOWNED FOR HIS INNOVATIONS IN THE AREAS OF INTEGRATED HEALTHCARE AND PHYSICIAN PARTNERSHIP MODELS. THE TREMENDOUS SUCCESS OF MHSC UNDER THE LEADERSHIP OF MR. BEA HAS ALLOWED HIM TO RECEIVE PAYOUTS FROM A DEFERRED COMPENSATION PACKAGE WHICH MHSC HAS BEEN PAYING INTO OVER MANY YEARS. THESE PAYMENTS ONLY BECAME PAYABLE IF MHSC ATTAINED CERTAIN DEFINED FINANCIAL AND STRATEGIC GOALS AND THE AMOUNTS ARE AT RISK EVERY SINGLE YEAR. AS INDICATED ABOVE, MANY OF THESE GOALS WERE ACHIEVED WITHIN THE PAST FEW YEARS RESULTING IN A RELEASE OF THESE DEFERRED PAYMENTS WHICH IMPACTED MR. BEA'S COMPENSATION REPORTING. THE SETTING OF THESE GOALS WERE LAID OUT BY THE BOARD OF DIRECTORS IN COOPERATION WITH NATIONALLY RECOGNIZED COMPENSATION ATTORNEYS AND CONSULTANTS TO MAKE SURE ALL FACTORS WERE TAKEN INTO CONSIDERATION. MR. BEA'S COMPENSATION HAS ALSO BEEN SCRUTINIZED BY NUMEROUS OUTSIDE ORGANIZATIONS AND MOST IMPORTANTLY, THE INTERNAL REVENUE SERVICE; AND HAS PASSED INSPECTION IN EACH CASE. TOTAL COMPENSATION IS APPROVED ANNUALLY BY THE BOARD OF DIRECTORS OF MHSC.

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.

Taxable family on this return

Schedule R Parts I, III and IV, as filed. These record ownership and control, not shared board members or money moved.

Related corporations and trusts

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

  • JANESVILLE MEDICAL CENTER INC

    C Corporation · MANAGEMENT OF UNION EMPLOYEES · WI · share of assets $200 · controlled entity

    Directly controlled by MERCY HEALTH SYSTEM CORPORATION

  • MERCYCARE INSURANCE COMPANY

    C Corporation · INSURANCE · WI · share of income $146,624,654 · share of assets $69,468,296 · controlled entity

    Directly controlled by MERCY HEALTH SYSTEM CORPORATION

  • MERCYCARE HMO INC - CONSOLIDATED WITH MERCYCARE INSURANCE CO

    C Corporation · INSURANCE · WI · share of income $0 · share of assets $0 · controlled entity

    Directly controlled by MERCY HEALTH SYSTEM CORPORATION

  • ROCKFORD HEALTH INSURANCE LTD

    C Corporation · INSURANCE · BD

    Directly controlled by NA

Provenance

Return type
form_990
Tax year
2022
Filed
15 May 2024
IRS schema version
2022v5.0
Source object
202441369349316694

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