Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,569,605

• 2a · Program service revenue: Patient services

  total $128,499,265 · related or exempt $128,499,265

• 2b · Program service revenue: Disproportionate share funding

  total $6,782,124 · related or exempt $6,782,124

• 2c · Program service revenue: Hospital auxiliary services

  total $1,220,447 · related or exempt $1,220,447

• 2d · Program service revenue: Food services

  total $543,731 · related or exempt $543,731

• 2e · Program service revenue: Pharmacies

  total $75,829 · related or exempt $75,829

• 3 · Investment income

  total $129,648 · excluded $129,648

• 6a · Gross rents

  personal property $21,900

• 6b · Less rental expenses

  personal property $0

• 6c · Rental income or loss

  personal property $21,900

• 6d · Net rental income or loss

  total $21,900 · unrelated business $21,900

• 7a · Gross sales of assets other than inventory

  other assets $6,942

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

  other assets $0

• 7c · Gain or loss

  other assets $6,942

• 7d · Net gain or loss

  total $6,942 · excluded $6,942

• 10a · Gross sales of inventory

  $15,107

• 10b · Cost of goods sold

  $8,359

• 10c · Net income from sales of inventory

  total $6,748 · related or exempt $6,748

• 11d · All other revenue

  total $1,031,051 · excluded $1,031,051

• 11e · Other revenue, total

  $1,031,051

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $284 · program services $284

• 7 · Other salaries and wages

  total $71,875,517 · program services $60,239,659 · management and general $11,526,485 · fundraising $109,373

• 8 · Pension plan contributions

  total $1,618,746 · program services $1,356,663 · management and general $259,623 · fundraising $2,460

• 9 · Other employee benefits

  total $7,919,171 · program services $6,637,017 · management and general $1,270,119 · fundraising $12,035

• 10 · Payroll taxes

  total $4,836,646 · program services $4,053,568 · management and general $775,727 · fundraising $7,351

• 11a · Fees: management

  total $120,664 · management and general $120,664

• 11b · Fees: legal

  total $73,468 · management and general $73,468

• 11c · Fees: accounting

  total $26,497 · management and general $26,497

• 11f · Fees: investment management

  total $3,444 · management and general $3,444

• 11g · Fees: other

  total $19,660,125 · program services $15,381,525 · management and general $4,195,464 · fundraising $83,136

• 12 · Advertising and promotion

  total $22,411 · program services $19,264 · management and general $3,119 · fundraising $28

• 13 · Office expenses

  total $1,644,990 · program services $1,414,044 · management and general $228,920 · fundraising $2,026

• 14 · Information technology

  total $525,518 · program services $451,739 · management and general $73,132 · fundraising $647

• 16 · Occupancy

  total $5,473,743 · program services $4,705,264 · management and general $761,737 · fundraising $6,742

• 17 · Travel

  total $282,196 · program services $242,577 · management and general $39,271 · fundraising $348

• 19 · Conferences, conventions and meetings

  total $58,674 · program services $50,437 · management and general $8,165 · fundraising $72

• 20 · Interest

  total $2,284 · program services $1,532 · management and general $728 · fundraising $24

• 22 · Depreciation, depletion and amortization

  total $3,639,283 · program services $2,441,658 · management and general $1,159,087 · fundraising $38,538

• 23 · Insurance

  total $2,021,529 · program services $1,737,719 · management and general $281,320 · fundraising $2,490

• 24a · Other expenses: Drugs/medical supplies

  total $14,741,770 · program services $12,672,118 · management and general $2,069,652

• 24b · Other expenses: Provision for bad debts

  total $6,325,400 · program services $6,325,400

• 24c · Other expenses: NH MET

  total $5,865,004 · program services $5,865,004

• 24d · Other expenses: Repairs/maintenance

  total $2,800,695 · program services $1,825,763 · management and general $964,126 · fundraising $10,806

• 24e · All other expenses

  total $1,032,447 · program services $887,498 · management and general $143,677 · fundraising $1,272

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $8,134 · end of year $8,484

• 2 · Savings and temporary cash investments

  beginning of year $16,556,957 · end of year $81,093

• 4 · Accounts receivable

  beginning of year $23,073,753 · end of year $18,209,206

• 8 · Inventories for sale or use

  beginning of year $1,175,574 · end of year $1,386,655

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,795,163 · end of year $2,261,607

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

  $35,732,015

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

  $8,394,845

• 10c · Land, buildings and equipment, net

  beginning of year $17,612,887 · end of year $27,337,170

• 11 · Investments: publicly traded securities

  beginning of year $2,260,375 · end of year $1,983,736

• 14 · Intangible assets

  end of year $8,827,058

• 15 · Other assets

  beginning of year $25,000 · end of year $25,000

• 17 · Accounts payable and accrued expenses

  beginning of year $6,814,671 · end of year $4,443,016

• 19 · Deferred revenue

  beginning of year $1,513,596 · end of year $66,216

• 25 · Other liabilities

  beginning of year $16,182,803 · end of year $20,203,515

• 27 · Net assets without donor restrictions

  beginning of year $35,716,397 · end of year $33,423,526

• 28 · Net assets with donor restrictions

  beginning of year $2,280,376 · end of year $1,983,736

The filer's explanations (Part III)

Part I, Line 3

The compensation for the Organization's CEO was established by a related organization, Concord Hospital, Inc. That organization established the CEO's compensation by using a compensation committee, independent compensation consultant, and a compensation study. The compensation was also approved by the Hospital's compensation committee.

Part I, Lines 4a-b

Schedule J, Line 4a, severance compensation and separation payments: On May 1, 2021, Concord Hospital, Inc. acquired certain assets of LRGHealthcare (LRGH), which included the hospitals that became Concord Hospital - Laconia (CH-L) and Concord Hospital - Franklin (CH-F). Kevin Donovan was employed by and served on the Board of LRGH prior to the acquisition as the LRGH President & CEO, and continued to serve CH-L and CH-F in his employment (but not Trustee) capacities after the acquisition through March, 2022, at which time Mr. Donovan formally ended his position with the Concord Hospital System. After Mr. Donovan ended his term of service within the Concord Hospital System, he became entitled to and received severance payments in the amount of $221,000. The severance was paid to Mr. Donovan after March 2022, and was included in his 2022 Form W-2 compensation. Accordingly, the severance payments have been included within the amounts reported as paid to Mr. Donovan on this Form 990, Part VII, and on this Schedule J, Part II, Column B(iii). As Mr. Donovan's term of service concluded in a previous tax period, he has been disclosed as a Former Key Employee on the Organization's 2023 Form 990 for the year ending September 30, 2023. Schedule J, Line 4b, supplemental non-qualified retirement plans: Robert P. Steigmeyer, President & CEO, participated in a 457(f) plan with Concord Hospital, Inc. during the fiscal year covered by this tax return. Under the terms of the plan, amounts deferred and contributed to the plan are subject to a three-year vesting period. After satisfying this vesting period, 457(f) deferred amounts are to be included in Mr. Steigmeyer's taxable W-2 wages. The calendar year ending within the Hospital's current reporting period of September 30, 2023 (tax year 2022) includes amounts previously set aside as deferred under Mr. Steigmeyer's 457(f) plan more than three years ago, and have therefore become vested. Accordingly, Mr. Steigmeyer is now recognizing in his W-2 taxable wages vested 457(f) plan deferrals. For the period covered by this tax return, included within Mr. Steigmeyer's 2022 Form W-2 taxable wages are $174,774 of vested 457(f) deferrals, which represent amounts previously reported on Schedule J, Part II, Column C, as deferred compensation for the fiscal year ending September 30, 2019. In accordance with IRS instructions, this vested and taxable amount has been included in Schedule J, Part II, Column B(iii) and Column F. Beginning with the September 30, 2015 tax year, there have been contributions to Mr. Steigmeyer's 457(f) plan. Each contribution, plus earnings, will be reported in Mr. Steigmeyer's W-2 after a three-year vesting period. For the fiscal years ended September 30, 2021, 2022, and 2023, Mr. Steigmeyer received total plan contributions (including interest and investment credits) of $197,425, $221,218, and $231,021, respectively. Due to the timing between the Hospital's fiscal year filing period and the calendar year period by which compensation and benefits information is reported on Form 990, Schedule J, the amount included in Mr. Steigmeyer's deferred compensation amounts in this Schedule J, Part II, Column C, includes the $177,820 contribution to his 457(f) plan, plus $43,398 of earnings. During the year ending September 30, 2021, the Hospital established a Supplemental Executive Retirement Plan (SERP) for the Senior Vice Presidents of Concord Hospital. Under the terms of this SERP, the Hospital credits Senior Executives' accounts at the end of each fiscal year, and the credit shall vest and become payable on the third anniversary of the date such amounts are credited to the account, provided the Senior Executives remain continuously employed through the applicable vesting date. The three-year vesting period SERP amount will be included in taxable W-2 wages upon vesting and payment. For the fiscal years ended September 30, 2021, 2022, and 2023, total contributions to the SERP, including interest and investment earnings credits, for Scott Sloane were $26,462, $43,139, and $48,021, respectively; contributions for Matthew Gibb were $36,900, $53,536, and $59,576, respectively; and contributions for Mary Bakken were $0, $23,333, and $44,441, respectively. Due to the timing between the Hospital's fiscal year filing period and the calendar year period by which compensation and benefits information is reported on Form 990, Schedule J, the amount included in these individuals' deferred compensation amounts on this Schedule J, Part II, Column C, including contributions to their 457(f) plans and earnings, are as follows: - Scott Sloane: contributions, $41,088; interest credit, $2,051. - Matthew Gibb: contributions, $50,676; interest credit, $2,860. - Mary Bakken: contributions, $23,333; interest credit, $0. As none of the SERP contributions have yet satisfied the three-year vesting conditions as of the period covered by this tax return, none of the SERP contributions have yet been included in the W-2 wages for these Senior Executives.

Part I, Line 7

Incentive Pay: The primary purpose of the incentive pay is to recognize the quality of the performance of the CEO, CFO, COO, and CMO during the preceding fiscal year. The amount of the incentive pay bonus is based on performance relative to strategic goals and measurable objectives. When the executive's performance excels, the incentive pay should reflect the accomplishment and allow for the sum of base salary and incentive pay to reach as high as the 75th percentile of peer institutions.

Related partnerships

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

• Concord Imaging Center LLC

  Provide radiology services to community · NH

• Capital Orthopedic Surgery Center

  Provide medical care to community · NH

• Concord Endoscopy Center LLC

  Provide medical care to community · NH

Related corporations and trusts

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

• Capital Region Health Services Corporation

  C · Medical services · NH

• Capital Region Primary Care Corporation

  C · Inactive · NH

• Lakes Region Medical Office Building

  C · Rental properties and condominiums · NH

• Hillside Medical Park Condo Association

  C · Rental properties and condominiums · NH

• CH Memorial West Condominium Association

  C · Rental properties and condominiums · NH