2025-05-15T17:32:17-05:00 2024-06-30 390859910 BAKER TILLY ADVISORY GROUP LP 500 MIDLAND COURT PO BOX 8130 JANESVILLE WI 535478130 990 2023-07-01 363907436 ROCKFORD HEALTH PHYSICIANS ROCK 8159715000 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 JAVON BEA PRESIDENT/CEO 8159715000 2025-05-15 1 1 TROY MARINE CPA P00187863 6087525835 2025-05-15 2023 2025-03-06 01:10:19Z MERCYHEALTH PHYSICIANS JAVON BEA 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 145191508 0 X WWW.MERCYHEALTHSYSTEM.ORG X 1993 IL TO IMPROVE AND PROTECT THE HEALTH AND WELFARE OF THE COMMUNITY IN ACCORDANCE WITH OUR MISSION, THE MISSION OF ROCKFORD HEALTH PHYSICIANS IS "EXCEPTIONAL HEALTH CARE SERVICES WITH A PASSION FOR MAKING LIVES BETTER." THE FOUNDATION OF THIS MISSION IS BASED ON A VISION OF QUALITY: EXCELLENCE IN PATIENT CARE; SERVICE: EXCEPTIONAL PATIENT AND CUSTOMER CARE; PARTNERING: BEST PLACE TO WORK; AND COST: COST-EFFECTIVE CARE, ALONG WITH A COMMITMENT TO THE VALUES OF HEALING IN THE BROADEST SENSE, PATIENTS COME FIRST, TREAT EACH OTHER LIKE FAMILY AND ALWAYS SEEK EXCELLENCE. 8 6 947 0 0 0 14408 14905 80126410 93220219 -244455 -54196 47959731 47084916 127856094 140265844 0 0 0 0 109972326 123097111 0 0 0 37249888 47861068 147222214 170958179 -19366120 -30692335 123960049 119975728 51193057 81606322 72766992 38369406 X TO IMPROVE AND PROTECT THE HEALTH AND WELFARE OF THE COMMUNITY IN ACCORDANCE WITH OUR MISSION, THE MISSION OF ROCKFORD HEALTH PHYSICIANS IS "EXCEPTIONAL HEALTH CARE SERVICES WITH A PASSION FOR MAKING LIVES BETTER." THE FOUNDATION OF THIS MISSION IS BASED ON A VISION OF QUALITY: EXCELLENCE IN PATIENT CARE; SERVICE: EXCEPTIONAL PATIENT AND CUSTOMER CARE; PARTNERING: BEST PLACE TO WORK; AND COST: COST-EFFECTIVE CARE, ALONG WITH A COMMITMENT TO THE VALUES OF HEALING IN THE BROADEST SENSE, PATIENTS COME FIRST, TREAT EACH OTHER LIKE FAMILY AND ALWAYS SEEK EXCELLENCE. 0 0 113939000 113663845 ROCKFORD HEALTH PHYSICIANS (RHPH) IS A MULTI-SPECIALTY PHYSICIAN GROUP OF 247 PHYSICIANS THAT HAS 15 SATELLITE AMBULATORY OFFICES AS WELL AS 2 CONVENIENT CARE LOCATIONS THAT PROVIDE FOR NON-LIFE-THREATENING EMERGENCIES AFTER REGULAR OFFICE HOURS. OUR PHYSICIANS ALSO PROVIDE STAFF FOR JAVON BEA HOSPITAL PATIENTS' NEEDS. (I.E. LEVEL I TRAUMA CENTER, BRAIN & SPINE CENTER, LEVEL III REGIONAL PERINATAL CENTER & NEONATAL ICU).OUR PATIENTS HAVE ACCESS TO BOARD CERTIFIED PRIMARY CARE PHYSICIANS WHO COORDINATE CARE WITHIN OUR PATIENT CENTERED MEDICAL HOME WITH BOARD CERTIFIED SPECIALTY PHYSICIANS. RHPH ALSO OFFERS A COMPREHENSIVE, PATIENT CENTERED, COLLEGE OF SURGEON'S ACCREDITED CANCER TREATMENT CENTER WHICH INCLUDES RADIATION ONCOLOGY, AND IMAGE GUIDED TREATMENTS UTILIZING STATE OF THE ART LINEAR ACCELERATOR TECHNOLOGY. THE WOMEN'S CENTER AT RHPH PROVIDES DIGITAL MAMMOGRAPHY, BREAST ULTRASOUND, STEREOTACTIC BIOPSY, OSTEOPOROSIS TESTING AND UROGYNECOLOGY SERVICES THROUGH OUR FELLOWSHIP TRAINED PHYSICIANS AND NURSE PRACTITIONERS. INPATIENT SERVICES PROVIDED AT JAVON BEA HOSPITAL INCLUDE A LEVEL I TRAUMA CENTER, ADULT INTENSIVE CARE UNITS, A DESIGNATED CHILDREN'S MEDICAL CENTER, AND A LEVEL III NEONATAL INTENSIVE CARE UNIT, ACROSS TWO HOSPITAL CAMPUSES. PHYSICIANS ARE AVAILABLE ON CALL 24-7. THERE WERE 495,158 PHYSICIAN OFFICE VISITS AND 34,764 URGENT CARE VISITS IN FY2024. 32532752 20905688 ANCILLARY MEDICAL SERVICES WERE PERFORMED TO ALLOW PHYSICIANS TO PROVIDE THE PROPER CARE TO ACHIEVE THE BEST OUTCOME FOR EACH PATIENT. THERE WERE 453,617 ANCILLARY TESTS AND PROCEDURES PERFORMED DURING FY2024. RHPH PROVIDED THESE SERVICES IN CLINICAL AREAS SUCH AS LABORATORY AND RADIOLOGY INCLUDING CT SCANS AND MAMMOGRAPHY. OTHER SUPPORT SERVICES INCLUDED CARDIAC TESTING, GENETIC SERVICES, PULMONARY FUNCTION TESTING, BONE SCANS, PAIN MANAGEMENT, AND PHYSICAL THERAPY. 1984017 1822799 RHPH PARTICIPATES IN A MEDICARE PHYSICIAN QUALITY REPORT INCENTIVE PROGRAM TO MEASURE DATA FOR QUALITY EVALUATION. RHPH IS COMMITTED TO PROVIDING SERVICES FOR MATERNAL AND CHILDCARE THROUGH ILLINOIS HEALTH CONNECT, A MEANS-TESTED PROGRAM THAT HELPS KIDS AND FAMILIES GET HEALTH CARE AND STAY HEALTHY BY CHOOSING A MEDICAL HOME. RHPH PARTNERS WITH NEIGHBORING SCHOOLS TO PROVIDE FREE PHYSICALS AND COMMUNITY ORGANIZATIONS TO PROVIDE FREE SCREENINGS. STAFF AND PHYSICIANS PARTICIPATED IN VARIOUS HEALTH FAIRS AND HOSTED EDUCATIONAL FORUMS IN THE COMMUNITIES TO BRING RESIDENTS AN AWARENESS OF HEALTH/WELLNESS RELATED TOPICS HEART DISEASE AND PREVENTION, HEALTHY EATING, CHILDREN'S HEALTH CONCERNS, AND AGING ISSUES. RHPH ALSO PARTNERS WITH A LOCAL CHURCH IN THE BRIDGE CLINIC TO SERVE UNINSURED AND/OR HOMELESS PEOPLE. 148455769 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 25 0 1 947 1 0 0 0 0 0 0 0 0 0 0 0 0 X 8 6 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 IL X JOE MALAS 8159716738 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 VIBHAV BANSAL PHYSICIAN 40.00 0.00 X 1198521 0 27189 MICHAL ZLOWODZKI PHYSICIAN 40.00 0.00 X 1188345 0 48193 GREG NOWAK PHYSICIAN 40.00 0.00 X 1070810 0 37041 BHARATI ROY PHYSICIAN 40.00 0.00 X 967137 0 26492 ZAHER QASSEM PHYSICIAN 40.00 0.00 X 956016 0 36086 TODD ANDERSON VP/CFO (TERM 01/2025) 1.00 62.00 X 0 890535 87531 KIMBERLY SCACCIA VP - REVENUE CYCLE 1.00 62.00 X 0 545085 60588 MARK L GOELZER MD DIRECTOR/PHYSICIAN 1.00 45.00 X 0 481051 33521 JAVON R BEA PRESIDENT/CEO (SEE PAGES 30-35) 1.00 67.00 X X 0 16001686 6756093 ROWLAND J MCCLELLAN CHAIR & DIRECTOR 1.00 7.00 X X 0 23157 0 WESLEY M JOST DIRECTOR 1.00 7.00 X 0 13858 0 KATHERINE A SCHACK DIRECTOR 1.00 7.00 X 0 13663 0 THOMAS R POOL VICE CHAIR & DIRECTOR 1.00 7.00 X X 0 13500 0 THOMAS D BUDD SECRETARY & TREASURER 1.00 7.00 X X 0 13500 0 DAVE L SYVERSON DIRECTOR 1.00 7.00 X 0 12932 0 5380829 18008967 7112734 228 0 1 0 SRIKUMAR PILLAI 690 DUNBARTON DRIVE INVERNESS IL 60010 PEDIATRIC SURGERY 300000 CASEY SHUPE 2283 EASTVIEW DES PLAINES IL 60018 ANESTHESIOLOGY 296311 SUNIL TECH PARK LLC 6801 SPRING CREEK RD ROCKFORD IL 61114 REAL ESTATE SERVICES 210929 DYN ROTE LLC 6801 SPRING CREEK RD ROCKFORD IL 61114 REAL ESTATE SERVICES 176566 4 14905 14905 PHYSICIAN MEDICAL SERVICES 621110 92643188 92643188 MEDICARE/MEDICAID PAYMENTS 621110 364915 364915 RESEARCH 621110 212116 212116 93220219 128746 23355 105391 105391 105391 4848113 4902309 -54196 -54196 -54196 HOSPITAL BASED PHYSICIANS 900099 45820939 45820939 MISCELLANEOUS 900099 534835 534835 MANAGED CARE INCENTIVE 900099 377441 377441 246310 246310 46979525 140265844 93597660 0 46653279 108504021 97516613 10987408 1770 641 1129 9814444 7851555 1962889 4776876 3821501 955375 139247 139247 28034 6213 21821 100723 10420 90303 306275 1890 304385 641195 81470 559725 1642547 29385 1613162 2548058 1740136 807922 224736 135045 89691 33697 981 32716 5237314 4189851 1047463 2191134 1752907 438227 PHYSICIAN LOCUM FEES 17057180 17057180 DRUGS & MEDICAL SUPPLIE 7080705 6950775 129930 OTHER PURCHASED SERVICE 4964482 2944301 2020181 BAD DEBT EXPENSE 3704754 3704754 1960987 660151 1300836 170958179 148455769 22502410 0 608846 1177937 6048053 4976126 678498 720157 1362462 1122999 168407246 85109407 86001594 83297839 29260596 28680670 123960049 119975728 30005748 41618232 0 288664 21187309 39699426 51193057 81606322 X 72766992 38369406 72766992 38369406 123960049 119975728 X -30692335 -3705251 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 5359077 1158176 527350 -813 5990716 2895984 2464680 2939 -1352 5359077 3196715 -272954 27446 331 2895984 2648416 200 588122 39727 295 3196715 2413097 37162 204132 5588 387 2648416 0.37720 0.33150 0.29130 0 1 1 5513717 5513717 140442123 67238026 73204097 16876260 14099719 2776541 5575146 3771662 1803484 83297839 DEFERRED COMPENSATION 23535329 FORWARD ACCRUAL 56325 OTHER RECEIVABLES 236347 LEASE RIGHT OF USE 134452 DUE FROM MERCY HEALTH SYSTEM CORPORATION 3564791 DUE FROM MERCY ASSISTED CARE 6713 DUE FROM MERCY HEALTH CORPORATION 1105207 DUE FROM MERCYHEALTH DEVELOPMENT FOUNDATION 30943 DUE FROM MERCY HEALTH VISITING NURSES ASSOCIATION 10563 28680670 DEFERRED COMPENSATION 7460279 LEASE LIABILITY 134452 DUE TO JAVON BEA HOSPITAL 31527199 DUE TO MERCY CRYSTAL LAKE HOSPITAL 571042 DUE TO MERCY HARVARD HOSPITAL 6454 39699426 PART V, LINE 4: FUNDS WERE USED TO PROVIDE A LECTURE SERIES, FOR CONTINUING EDUCATION FOR EMPLOYEES WANTING TO IMPROVE THEIR CREDENTIALS OR TO FOCUS ON A NEW SKILL OR SOME TECHNOLOGY NOT CURRENTLY AVAILABLE IN THE ROCKFORD COMMUNITY. THERE WERE ALSO MISCELLANEOUS PROJECTS DESIGNATED BY THE FOUNDATION BOARD IN ACCORDANCE WITH THE SPECIFIC ENDOWMENT. ALL FUNDS WERE EXPENDED PER THE SPECIFIC DIRECTION OF EACH ENDOWMENT. 0 1 0 0 0 0 0 0 0 VIBHAV BANSAL PHYSICIAN 563521 0 612500 0 22500 0 15814 0 11375 0 1225710 0 0 0 MICHAL ZLOWODZKI PHYSICIAN 682292 0 484346 0 21707 0 3939 0 44254 0 1236538 0 0 0 GREG NOWAK PHYSICIAN 784492 0 256318 0 30000 0 19645 0 17396 0 1107851 0 0 0 BHARATI ROY PHYSICIAN 225331 0 712956 0 28850 0 15275 0 11217 0 993629 0 0 0 ZAHER QASSEM PHYSICIAN 248016 0 686350 0 21650 0 5514 0 30572 0 992102 0 0 0 TODD ANDERSON VP/CFO (TERM 01/2025) 0 583582 0 298099 0 8854 0 49833 0 37698 0 978066 0 0 KIMBERLY SCACCIA VP - REVENUE CYCLE 0 364549 0 174918 0 5618 0 28911 0 31677 0 605673 0 0 MARK L GOELZER MD DIRECTOR/PHYSICIAN 0 246712 0 227923 0 6416 0 15657 0 17864 0 514572 0 0 JAVON R BEA PRESIDENT/CEO (SEE PAGES 30-35) 0 1816003 0 0 0 14185683 0 6738431 0 17662 0 22757779 0 12669012 PART I, LINE 3 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 MHSC COMPENSATION COMMITTEE 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 FULL BOARD OF DIRECTORS ANNUALLY. THIS PROCESS WAS COMPLETED FOR 2023. PART I, LINE 4B INCENTIVE PLAN DISTRIBUTION: JAVON R. BEA - $8,510,830 PART II, LINE 1: JAVON R. BEA DEFERRED COMPENSATION PAYMENT MR. BEA HAS BEEN EMPLOYED BY MHSC AS PRESIDENT AND CEO OVER THE PAST 36 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 89 FACILITIES IN 50 COMMUNITIES THROUGHOUT SOUTHERN WISCONSIN AND NORTHERN ILLINOIS, INCREASING GROSS REVENUE FROM $33 MILLION TO OVER $4.1 BILLION IN FY2024. THIS HAS ALLOWED THE HEALTH SYSTEM TO GO FROM SERVING 89,000 PATIENTS IN 1989 TO OVER 1.9 MILLION PATIENTS TODAY WORKING TOGETHER WITH OVER 7,500+ PARTNERS IN HEALTH CARE AND OVER 800 EMPLOYED PHYSICIANS. 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 OVER THE YEARS 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 FROM THE PRESIDENT OF THE UNITED STATES IN THE OVAL OFFICE, 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. THE TURNAROUND OF 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. FORM 990, PART VI, SECTION A, LINE 1A THE VOTING MEMBERS OF THE EXECUTIVE COMMITTEE CONSISTS OF EIGHT INDIVIDUALS, EACH OF WHOM SHALL HAVE A VOTE, INCLUDING THE CEO, THE CHAIRMAN, VICE-CHAIRMAN, IMMEDIATE PAST CHAIRMAN, TREASURER, AND THREE ADDITIONAL DIRECTORS OF THE BOARD. AT LEAST ONE MEMBER OF THE EXECUTIVE COMMITTEE SHALL BE A PHYSICIAN. THE EXECUTIVE COMMITTEE SHALL IN ALL INSTANCES BE COMPRISED OF AT LEAST 51% COMMUNITY MEMBERS. IN THE EVENT THAT ONE OR MORE OF THE AFOREMENTIONED VOTING MEMBERS OF THE EXECUTIVE COMMITTEE IS UNABLE TO SERVE IN SUCH CAPACITY, THEN THE CHAIRMAN OF THE CORPORATION SHALL DESIGNATE A REPLACEMENT FROM AMONG THE BOARD MEMBERS. THE EXECUTIVE COMMITTEE SHALL MEET AS NEEDED. WHEN THE BOARD OF DIRECTORS IS NOT IN SESSION, THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE POWERS, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE BOARD, EXCEPT AS PROHIBITED BY LAW. FORM 990, PART VI, SECTION A, LINE 6 MERCY HEALTH CORPORATION (MHC) IS THE SOLE CORPORATE MEMBER OF ROCKFORD HEALTH PHYSICIANS (RHPH). THE SOLE MEMBER SHALL HAVE THE POWERS AND VOTING RIGHTS TO DO THE FOLLOWING: (A) APPOINT ALL THE DIRECTORS OF THE CORPORATION (B) NOMINATE TO RHPH'S BOARD OF DIRECTORS ALL CANDIDATES FOR SELECTION AS THE CORPORATION PRESIDENT (C) APPROVE EXPRESSLY ALL AMENDMENTS TO CORPORATION'S ARTICLES OF INCORPORATION AND BYLAWS (D) APPROVE ANNUAL BUDGETS, AND STRATEGIC, LONG-RANGE AND HEALTH MANPOWER DEVELOPMENT PLANS OF THE CORPORATION (E) ) REQUIRE THE CORPORATION'S BOARD OF DIRECTORS TO TAKE ANY ACTION (INCLUDING AUTHORIZING THE PLEDGE OR TRANSFER OF ASSETS TO MHC OR AS DIRECTED BY MHC, OR THE EXECUTION OF CONTRACTS) WHICH WOULD IMPROVE THE CREDIT WORTHINESS OR OTHERWISE RESULT IN FINANCIAL BENEFIT TO MHC AND ITS TAX-EXEMPT AFFILIATED CORPORATIONS (PROVIDED THAT UNDER NO CIRCUMSTANCES MAY MHC REQUIRE TRANSFER OF ASSETS IN VIOLATION OF LAW OR THE TERMS OF ANY CHARITABLE TRUST OR DONATION) (F) APPROVE ALL CONTRACTS OF INDEBTEDNESS EFFECTIVE FOR LONGER THAN EIGHTEEN MONTHS (G) APPROVE ALL PLANS OF MERGER OR CONSOLIDATION (H) APPROVE THE SALE, LEASE, EXCHANGE, MORTGAGE, PLEDGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL, THE PROPERTY AND ASSETS OF THE CORPORATION (I) APPROVE A VOLUNTARY DISSOLUTION OF THE CORPORATION (J) APPROVE MATERIAL AMENDMENTS TO THE CORPORATION'S STANDARD FORM OF PHYSICIAN EMPLOYMENT AGREEMENT, PROVIDED THE CORPORATION SHALL HAVE THE AUTHORITY TO NEGOTIATE THE TERMS AND CONDITIONS OF INDIVIDUAL PHYSICIAN EMPLOYMENT AGREEMENTS SO LONG AS THE NEGOTIATED TERMS AND CONDITIONS ARE CONSISTENT WITH THE REQUIREMENTS OF APPLICABLE LAW AND THE STRATEGIC, LONG-RANGE AND HEALTH MANPOWER DEVELOPMENT PLANS APPROVED BY MHC K) APPROVE MATERIAL AMENDMENTS TO THE STANDARD COMPENSATION SYSTEM USED BY THE CORPORATION TO ESTABLISH INDIVIDUAL PHYSICIAN COMPENSATION (L) REQUIRE THE CORPORATION'S BOARD OF DIRECTORS TO TAKE ANY ACTION (INCLUDING AMENDING THE ARTICLES OF INCORPORATION OR BYLAWS), OR TO MODIFY OR RESCIND AN ACTION ALREADY TAKEN, IF MHC DETERMINES THAT FAILURE TO TAKE THE ACTION, OR TO MODIFY OR RESCIND AN ACTION ALREADY TAKEN, MAY RESULT IN THE CORPORATIONS FAILURE TO OBTAIN OR MAINTAIN ITS EXEMPTION AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE CODE. FORM 990, PART VI, SECTION A, LINE 7A SEE NARRATIVE FOR PART VI, LINE 6. FORM 990, PART VI, SECTION A, LINE 7B SEE NARRATIVE FOR PART VI, LINE 6. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWS THE FORM 990 BEFORE FILING AND IT IS AVAILABLE TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C BY WRITTEN POLICY, MHC SENDS OUT, ON AN ANNUAL BASIS, THE CORPORATE CONFLICT AND DUALITY OF INTEREST POLICY TO ALL BOARD MEMBERS, CORPORATE OFFICERS AND OTHER KEY INDIVIDUALS (THOSE HAVING RESPONSIBILITY AND AUTHORITY TO MAKE FINAL DECISIONS REGARDING THE ACQUISITION OF PRODUCTS OR SERVICES). EACH RECIPIENT IS REQUIRED TO COMPLETE A FINANCIAL INTEREST DISCLOSURE STATEMENT, WHICH IS SUBMITTED TO THE MHC COMPLIANCE DEPARTMENT FOR REVIEW. WITH RESPECT TO PHYSICIANS AND MANAGERS WHO ARE KEY INDIVIDUALS, ANY POTENTIAL CONFLICT OF INTEREST IS REVIEWED WITH THE APPROPRIATE EXECUTIVE STAFF MEMBER FOR FOLLOW UP WITH THE DISCLOSING PARTY IN ORDER TO REVIEW THE MATTER IN MORE DETAIL. THIS INCLUDES EMPHASIZING THAT THE DISCLOSING PARTY IS NOT PERMITTED TO PARTICIPATE IN ANY NEGOTIATIONS FOR THE PURCHASE OF ANY PRODUCTS OR SERVICES WHERE THE CONFLICT IS DEEMED MATERIAL OR AUTHORIZE THE SUBSEQUENT PURCHASE OF RELATED GOODS AND SERVICES. THE DISCLOSING PARTY IS ALSO REQUIRED TO IDENTIFY EACH AND EVERY INSTANCE OF A POTENTIAL CONFLICT AS THEY MAY ARISE IN THE ORDINARY COURSE OF BUSINESS. A SIMILAR PROCESS IS FOLLOWED FOR THE BOARD OF DIRECTORS, EXCEPT THAT ANY POTENTIAL CONFLICT IS REVIEWED BY THE BOARD'S GOVERNANCE COMMITTEE. BOARD MEMBERS MAY COMMENT ON TRANSACTIONS WHERE THERE IS A POTENTIAL CONFLICT BUT CANNOT VOTE ON THE RELATED MATTER AND MAY BE REQUIRED TO LEAVE ANY MEETING WHERE THE POTENTIAL CONFLICT IS REVIEWED BY THE BOARD OR WHERE THE BOARD TAKES ACTION TO EITHER APPROVE OR NOT APPROVE THE PROPOSED TRANSACTION. A BOARD MEMBER ALSO HAS A CONTINUING DUTY TO REPORT ANY CONFLICTS AS THEY MAY ARISE IN THE ORDINARY COURSE OF BUSINESS. IN THE EVENT THAT A POTENTIAL CONFLICT OF INTEREST IS REPORTED OR DISCOVERED OUTSIDE THE ESTABLISHED PROCESS, APPROPRIATE REVIEW AND ACTION WOULD BE TAKEN. THIS PROCESS WAS LAST COMPLETED IN 2024, WHEN THE QUESTIONNAIRES WERE SENT TO ADDRESS ANY 2023 CONFLICTS IDENTIFIED. MHC AND RHPH HAVE THE SAME BOARD, AND THEREFORE THE MHC QUESTIONNAIRE IS USED TO ALSO ADDRESS POTENTIAL AND ACTUAL CONFLICTS FOR THE FILING ORGANIZATION. THE MHC CONFLICT OF INTEREST POLICY IS AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 NO DOCUMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9: CHANGES IN PENSION OBLIGATION OTHER THAN PENSION EXPENSE 246,310. NET TRANSFER FROM AFFILIATED ORGANIZATION -3,951,561. JAVON BEA HOSPITAL 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 362167847 HEALTHCARE IL 501(C)(3) LINE 3 MERCY HEALTH CORPORATION 0 MERCY ASSISTED CARE INC 901 MINERAL POINT AVE JANESVILLE WI 53548 391035110 HEALTHCARE WI 501(C)(3) LINE 10 MERCY HEALTH CORPORATION 0 MERCY CRYSTAL LAKE HOSPITAL AND MEDICAL CENTER 875 S ROUTE 31 CRYSTAL LAKE IL 60014 201673011 HEALTHCARE IL 501(C)(3) LINE 3 MERCY HEALTH CORPORATION 0 MERCY HARVARD HOSPITAL INC 901 GRANT STREET HARVARD IL 60033 311551871 HEALTHCARE IL 501(C)(3) LINE 3 MERCY HEALTH CORPORATION 0 MERCY HEALTH CORPORATION 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 472158680 SUPPORT OF HEALTHCARE IL 501(C)(3) LINE 12B, II N/A 0 MERCY HEALTH SYSTEM ASSOCIATION OF VOLUNTEERS 1000 MINERAL POINT AVE JANESVILLE WI 53548 390912682 SUPPORT OF HEALTHCARE WI 501(C)(3) LINE 12C, III-FI MERCY HEALTH SYSTEM CORPORATION 0 MERCY HEALTH SYSTEM CORPORATION 1000 MINERAL POINT AVE JANESVILLE WI 53548 390816848 HEALTHCARE WI 501(C)(3) LINE 3 MERCY HEALTH CORPORATION 0 MERCYHEALTH DEVELOPMENT FOUNDATION 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 363197918 SUPPORT OF HEALTHCARE IL 501(C)(3) LINE 12A, I MERCY HEALTH CORPORATION 0 MERCYHEALTH VISITING NURSES ASSOCIATION 8201 E RIVERSIDE BLVD ROCKFORD IL 61114 362167945 HEALTHCARE IL 501(C)(3) LINE 10 MERCY HEALTH CORPORATION 0 ROCKFORD HEALTH INSURANCE LTD WELLESLEY HOUSE SO 2ND FL PEMBROKE HM BD INSURANCE BD N/A C 0 JANESVILLE MEDICAL CENTER INC 1000 MINERAL POINT AVE JANESVILLE WI 53548 391520130 MANAGEMENT OF UNION EMPLOYEES WI N/A C 0 MERCYCARE INSURANCE COMPANY 580 N WASHINGTON ST JANESVILLE WI 53546 391768192 INSURANCE WI N/A C 0 MERCYCARE HMO INC - CONSOLIDATED WITH MERCYCARE INSURANCE CO 580 N WASHINGTON ST JANESVILLE WI 53546 201482553 INSURANCE WI N/A C 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0