Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $23,393

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $124,922,019 · related or exempt $124,922,019

• 3 · Investment income

  total $28,512 · excluded $28,512

• 6a · Gross rents

  real property $273,539

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $273,539

• 6d · Net rental income or loss

  total $273,539 · related or exempt $273,539

• 7a · Gross sales of assets other than inventory

  other assets $1,709,836

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

  other assets $1,096,025

• 7c · Gain or loss

  other assets $613,811

• 7d · Net gain or loss

  total $613,811 · excluded $613,811

• 11a · Other revenue: INCOME FR. PARTNERSHIP

  total $30,967 · related or exempt $19,696 · unrelated business $11,271

• 11e · Other revenue, total

  $30,967

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $578,803 · program services $578,803

• 5 · Compensation of officers, directors and key employees

  total $471,307 · program services $393,353 · management and general $77,954

• 7 · Other salaries and wages

  total $59,650,533 · program services $49,784,335 · management and general $9,866,198

• 8 · Pension plan contributions

  total $2,694,745 · program services $2,249,034 · management and general $445,711

• 9 · Other employee benefits

  total $7,220,486 · program services $6,026,218 · management and general $1,194,268

• 10 · Payroll taxes

  total $4,226,832 · program services $3,527,714 · management and general $699,118

• 11a · Fees: management

  total $9,144 · program services $7,632 · management and general $1,512

• 11b · Fees: legal

  total $2,850 · program services $2,379 · management and general $471

• 11g · Fees: other

  total $1,055,988 · program services $1,055,988

• 12 · Advertising and promotion

  total $54,525 · program services $45,507 · management and general $9,018

• 13 · Office expenses

  total $2,012,798 · program services $1,679,881 · management and general $332,917

• 14 · Information technology

  total $432,192 · program services $360,707 · management and general $71,485

• 16 · Occupancy

  total $2,923,131 · program services $2,439,645 · management and general $483,486

• 17 · Travel

  total $2,062,235 · program services $1,721,141 · management and general $341,094

• 19 · Conferences, conventions and meetings

  total $33,718 · program services $28,141 · management and general $5,577

• 22 · Depreciation, depletion and amortization

  total $598,206 · program services $499,263 · management and general $98,943

• 23 · Insurance

  total $1,123,936 · program services $938,037 · management and general $185,899

• 24a · Other expenses: MEDICAL SUPPLIES EXP

  total $36,829,207 · program services $36,829,207

• 24b · Other expenses: SENTARA SERVICE EXP

  total $9,066,418 · management and general $9,066,418

• 24c · Other expenses: PURCHASED & CONTRACTED

  total $2,484,051 · program services $2,073,189 · management and general $410,862

• 24d · Other expenses: TAXES & LICENSES

  total $291,996 · program services $243,700 · management and general $48,296

• 24e · All other expenses

  total -$100,076 · program services -$81,067 · management and general -$19,009

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $704,411 · end of year $2,609,632

• 4 · Accounts receivable

  beginning of year $23,532,498 · end of year $25,051,914

• 8 · Inventories for sale or use

  beginning of year $765,665 · end of year $935,478

• 9 · Prepaid expenses and deferred charges

  beginning of year $148,474 · end of year $84,093

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

  $19,683,225

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

  $15,293,775

• 10c · Land, buildings and equipment, net

  beginning of year $7,868,551 · end of year $4,389,450

• 14 · Intangible assets

  beginning of year $10,984,726 · end of year $9,195,744

• 15 · Other assets

  beginning of year $1,244,303 · end of year $891,342

• 17 · Accounts payable and accrued expenses

  beginning of year $2,580,791 · end of year $7,036,491

• 19 · Deferred revenue

  beginning of year $1,957,628 · end of year $2,301,983

• 25 · Other liabilities

  beginning of year $14,338,264 · end of year $8,278,183

• 27 · Net assets without donor restrictions

  beginning of year $26,106,920 · end of year $25,252,593

• 28 · Net assets with donor restrictions

  beginning of year $265,025 · end of year $288,403

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 THROUGH THE USE OF A COMPENSATION COMMITTEE, AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION STUDY, AND APPROVAL BY SENTARA HEALTH'S COMPENSATION COMMITTEE. 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. THE SENTARA HEALTH BOARD HAS DIRECTED A COMMITTEE OF INDEPENDENT, CONFLICT-FREE BOARD MEMBERS TO DEVOTE THEIR TIME AND ATTENTION TO THE OVERSIGHT OF SENTARA HEALTH'S EXECUTIVE COMPENSATION AND BENEFITS PROGRAMS. THE COMPENSATION COMMITTEE CONSISTS OF PROFESSIONAL, EXPERIENCED, AND DEDICATED BOARD MEMBERS WHO TAKE THIS RESPONSIBILITY VERY SERIOUSLY. THE COMPENSATION COMMITTEE FOLLOWS GOVERNANCE BEST PRACTICES IN THE REVIEW AND APPROVAL OF EXECUTIVE COMPENSATION. THE COMPENSATION COMMITTEE IS ASSISTED BY OUTSIDE ADVISORS WHO ARE ENGAGED BY THE COMMITTEE.

PART I, LINES 4A-B

LOUIS PATALANO, IV RECEIVED $1,103,191 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 EMPLOYED AND ACTIVELY ACCRUING PLAN BENEFITS IN ACCORDANCE WITH THE PLAN'S TERMS. MR. KERN WAS SUBJECT TO FICA AND FUTA TAXATION ON HIS ACCRUED PLAN BENEFITS IN 2022 AND RECEIVED TAXABLE PLAN DISTRIBUTIONS OF $181,970 TO COVER APPLICABLE TAXES FOR 2022. HOWARD KERN, ROBERT BROERMANN, MICHAEL GENTRY, TERESA EDWARDS, DENNIS MATHEIS, PAUL GADEN, AND EARL BARNES 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 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. 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). DURING 2022, THE FOLLOWING CORPORATE EXECUTIVES RECEIVED VESTED DISTRIBUTIONS UNDER THE PLAN: ROBERT BROERMANN ($202,592); TERESA EDWARDS ($97,536); MICHAEL GENTRY ($172,528); HOWARD KERN ($812,849); AND DENNIS MATHEIS ($32,207). THESE AMOUNTS HAVE BEEN REPORTED IN COLUMN (B)(III) OF SCHEDULE J, PART II. DURING THE CURRENT TAX YEAR DENNIS MATHEIS PARTICIPATED IN THE SENTARA NON-QUALIFIED DEFERRED COMPENSATION PLAN. A NEW PLAN YEAR BEGINS EACH JANUARY 1ST. ELIGIBILITY REQUIRES THAT AN EMPLOYEE MUST BE IN THE TOP 5% BY SALARY AND HAVE COMPENSATION GREATER THAN OR EQUAL TO THE HIGHLY COMPENSATED AMOUNT SET BY THE PLAN IN ORDER TO PARTICIPATE. PARTICIPANTS MUST MAKE THEIR ELECTIONS IN THE YEAR PRECEDING THE DEFERRAL YEAR AND SELECT A DISTRIBUTION DATE. NEW ELECTIONS MUST BE MADE EACH YEAR. ALL PARTICIPANTS ARE 100% VESTED IN THEIR ACCOUNT BALANCES AND LUMP SUM IS THE FORM OF PAYMENT AT THE DISTRIBUTION DATE UNLESS A 5 OR 10 YEAR INSTALLMENT PAYMENT WAS SELECTED.

PART I, LINE 7

DURING THE CURRENT TAX YEAR, THE ORGANIZATION MADE NON-FIXED PAYMENTS OF COMPENSATION UNDER THE FOLLOWING INCENTIVE PROGRAMS: ANNUAL INCENTIVE PROGRAM - EXECUTIVES AND SENIOR LEADERS ARE ELIGIBLE FOR ANNUAL AWARDS BASED ON SYSTEM AND INDIVIDUAL PERFORMANCE. BOTH SYSTEM AND INDIVIDUAL SCORES ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. TARGET AND MAXIMUM OPPORTUNITIES VARY BY LEVEL. CEO AWARD - AWARD TO RECOGNIZE AND REWARD MANAGERS WHO MAKE DIFFICULT DECISIONS, IMPLEMENT SIGNIFICANT CHANGES, AND ACHIEVE DRAMATIC RESULTS. 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 AS DETERMINED BY THE BOARD; BUSINESS UNIT RESULTS FOR FINANCIAL, SAFETY, QUALITY AND CUSTOMER SERVICE; 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.

Disregarded entities

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

• MEDICAL TRANSPORT LLC

  MEDICAL TRANSPORT · VA · income $640,474 · assets $60,276

  Directly controlled by SENTARA ENTERPRISES

• ST LUKE'S PROPERTIES LLC

  MOB RENTAL · VA · income $289,186 · assets $0

  Directly controlled by SENTARA ENTERPRISES

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

  RELATED · HEALTHCARE · VA · 21.25% owned · share of income $33,135 · share of assets $1,072,775 · general or managing partner

  Directly controlled by SE

• 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 ACACLLC

  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 · general or managing partner

• CAHABA PARTNERS TACTICAL EQUITY FUND

  POOLED INV FD · DE · general or managing partner

• HA INTL EQUITY CEF FD CL-A

  POOLED INV FD · DE · general or managing partner

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 (FORMERLY SENTARA HEALTH PLANS INC)

  C · TPA · VA · controlled entity

• OPTIMA HEALTH GROUP

  C · HMO · VA · controlled entity

• SENTARA HEALTH INSURANCE COMPANY (FORMERLY OPTIMA HEALTH INSURANCE COMPANY)

  C · HEALTH INSURANCE · VA · controlled entity

• SENTARA BEHAVIORAL HEALTH SERVICES (FKA OPTIMA 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 · HEALTH CARE · 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