2021-11-12T13:35:14-06:00 2020-12-31 ERNST & YOUNG US LLP 155 N WAKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2020-01-01 351536132 BEACON MEDICAL GROUP INC % JEFFREY COSTELLO BEAC 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Jeffrey Costello CFO 5746473549 2021-11-09 true Jeffrey Costello 999009999 JACOB J ZEHNDER P01564049 3128792702 2 2020 2022-09-23 18:48:47Z Kreg Gruber 615 N MICHIGAN STREET SOUTH BEND IN 46601 142008611 false X BEACONHEALTHSYSTEM.ORG X 1981 IN BEACON MEDICAL GROUP, INC. We deliver outstanding care, inspire health, and connect with heart. 7 7 1708 0 1119733 205386 1993638 7794941 136916103 133296251 -25165 287305 339634 422441 139224210 141800938 883045 550000 0 0 168946115 170900940 0 0 0 57303283 65565670 227132443 237016610 -87908233 -95215672 90482501 102838709 18505654 27286919 71976847 75551790 BEACON MEDICAL GROUP, INC. WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. false false 205160557 550000 133008835 BEACON MEDICAL GROUP, INC. (BMG) OPERATES A MULTI-SPECIALTY CARE NETWORK OF PHYSICIANS AND ALSO INCLUDES THE MED-POINT IMMEDIATE CARE CENTERS. IN ADDITION TO THE PHYSICIAN PRACTICES, BMG OPERATES A HIGH COMPLEXITY CORE LABORATORY FOR THE SUPPORT OF ITS EMPLOYED PHYSICIANS. BMG ALSO OPERATES MED-POINT URGENT CARE CENTERS TO SUPPLEMENT THE SERVICES OF THE MEDICAL GROUP. IN ADDITION TO THE CORPORATION'S PRIMARY CARE NETWORK, BMG MANAGES THE OPERATION OF SEVERAL HOSPITAL-BASED PRACTICES FOR THE HOSPITALISTS, TRAUMA ORTHOPEDIC SURGEONS, AND PEDIATRIC INTENSIVISTS. 295402 287444 BEACON MEDICAL GROUP, INC. (BMG) OPERATES A MULTI-SPECIALTY CARE NETWORK, AND ALSO OPERATES THE BEACON MEDICAL GROUP CLINICAL RESEARCH INSTITUTE ("CLINICAL RESEARCH"). CLINICAL RESEARCH IS CURRENTLY FOCUSED ON PHARMACOLOGY STUDIES. THE PHARMACOLOGY STUDIES INVOLVE PATIENTS WITH SPECIFIC CONDITIONS OR DISEASES. CLINICAL RESEARCH HAS BROUGHT THE FOLLOWING POSITIVE BENEFITS TO BMG: IMPROVED PATIENT CARE - BRINGS BMG PHYSICIANS AND NURSES CLOSER TO LEADING-EDGE MEDICINE. CORPORATE POSITIONING - CLINICAL RESEARCH CAN ENHANCE BMG'S IDENTITY AND BRAND, IT CAN PROVIDE A MEANS TO MEET PHYSICIANS' ACADEMIC NEEDS AND ENHANCE PHYSICIAN RECRUITMENT. 205455959 true true false true false false false false false true true false true false true true false true false false false false false false false false false true false true false false false false false false false false false false false false true true true true false false true 86 0 true 1708 true true true false false false false false false false false false false false X 7 7 false false false false true true true true true false false true true true true true true false false true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 X NEAL B PATEL EMPLOYED PHYSICIAN 40.0 0.0 X 1484389 0 30825 JOHN GILBERT EMPLOYED PHYSICIAN 40.0 0.0 X 1453012 0 35654 WALTER LANGHEINRICH EMPLOYED PHYSICIAN 40.0 0.0 X 1387033 0 34904 KASHIF SHAIKH EMPLOYED PHYSICIAN 40.0 0.0 X 1396361 0 13298 STEPHEN SMITH EMPLOYED PHYSICIAN 40.0 0.0 X 1299917 0 34904 KREG R GRUBER CEO 2.0 48.0 X 0 984711 150212 VINCENT HENDERSON MD PRESIDENT/ASST SECRTARY 40.0 0.0 X 763882 0 74850 JEFFREY P COSTELLO CFO/Asst. Treasurer 2.0 48.0 X 0 685797 101322 THOMAS R VIDIC MD DIRECTOR 2.0 0.0 X 901 0 0 ANITA KNUDTSON SECRETARY/TREASURER 2.0 0.0 X X 901 0 0 RAJ SHAHMD DIRECTOR thru March 2020 2.0 0.0 X 750 0 0 ROB BARTELS DIRECTOR 2.0 0.0 X 616 0 0 SAM BORRELLI MD CHAIR thru February 2020 2.0 2.0 X X 150 0 0 JAMES DAN MD VICE CHAIR 2.0 0.0 X X 150 0 0 WILLIAM HOUSTON MD CHAIR 2.0 0.0 X X 150 0 0 SAMIR PATEL MD DIRECTOR 2.0 0.0 X 150 0 0 WILLIAM BUCKLEY DIRECTOR 2.0 0.0 X 150 0 0 7788512 1670508 475969 337 false true false ELKHART CLINIC LLC PO BOX 2968 ELKHART IN 46515 MEDICAL BILLING 4342301 COMPHEALTH MEDICAL STAFFING INC PO BOX 972651 DALLAS TX 75397 TEMPORARY STAFFING 740355 GIBSON LEWIS LLC 1001 West 11th Street MISHAWAKA IN 46544 GENERAL CONTRACTOR 974229 HAYES LOCUMS LLC 6700 N ANDREWS AVE SUITE 600 FT LAUDERDALE FL 33309 TEMPORARY STAFFING 619942 ALLSCRIPTS LLC 305 CHURCH AT NORTH HILLS ST RALEIGH NC 27609 PRACTICE MANAGEMENT 414020 14 975479 6819462 0 7794941 NET PATIENT REV 621111 128050062 128050062 CLINICAL TRIAL REV 621511 287444 287444 BMG MGMT/ ADMIN SERVICES 621111 548214 271255 276959 MEDICAL DIRECTORSHIP 621111 1007067 1007067 MED SVCS FOR AFFILIATES 561499 2516210 2503381 12829 887254 57309 829945 133296251 55016 55016 0 0 537115 114702 422413 0 422413 422413 325260 92971 232289 232289 232289 0 0 0 0 0 0 0 0 0 MEDICAL RECORDS FEES 621111 28 28 28 141800938 132176546 1119733 709718 550000 550000 0 0 0 842648 842648 282079 282079 146553373 138265220 8288153 3927663 3705357 222306 12090090 11405791 684299 7205087 6323382 881705 0 0 54696 54696 12827 12827 0 0 10614510 8919040 1695470 25023 24104 919 1521371 1164015 357356 102214 19433 82781 0 4072013 3356590 715423 66190 43078 23112 0 566788 563094 3694 0 0 5510661 3416988 2093673 2634948 2098287 536661 BHS/BMG ADMIN FEES 14429090 14429090 MEDICAL SUPPLIES 16668367 16668367 BAD DEBT EXPENSE 7582997 7582997 PHYSICIAN RECRUITMENT 863005 863005 840970 474384 366586 237016610 205455959 31560651 0 12216 12416 3652292 2755325 0 0 22165259 30512865 0 0 0 0 796943 1384581 0 0 492323 654066 98914900 52587203 46231975 46327697 20141 21112 0 0 15954509 16122512 307676 307676 849167 4740459 90482501 102838709 18324192 25724554 0 0 0 0 0 0 0 0 0 0 0 0 0 0 181462 1562365 18505654 27286919 X 71976847 75551790 0 0 71976847 75551790 90482501 102838709 X -95215672 478 98790137 X false true X true true true X 2237470 1808363 2399681 1993638 7794941 16234093 116319577 122756038 126280925 135416365 131960891 632733796 0 0 0 118557047 124564401 128680606 137410003 139755832 648967889 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 648967889 508290 511364 371830 479737 592131 2463352 36889 205386 242275 508290 511364 371830 516626 797517 2705627 0 136558 201507 208426 150134 0 696625 119201895 125277272 129260862 138076763 140553349 652370141 0.99479 0.99390 0.00415 0.00490 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 12827 12827 false SCH C, PART II-B BEACON MEDICAL GROUP, INC PAYS FOR THE MEMBERSHIP FEES TO SEVERAL NATIONAL ORGANIZATIONS FOR ITS EMPLOYEES. THESE NATIONAL ORGANIZATIONS INDICATE A PORTION OF THE MEMBERSHIP FEES ARE USED FOR LOBBYING PURPOSES. THE MEMBERSHIP FEES PAID WERE FOR THE FOLLOWING ORGANIZATIONS: - AMERICAN COLLEGE OF SURGEONS - AMERICAN ACADEMY OF FAMILY PHYSICIANS - AMERICAN MEDICAL ASSOCIATION - AMERICAN SOCIETY OF RADIATION ONCOLOGY - INDIANA STATE MEDICAL - AMERICAN ASSOCIATION OF CRITICAL-CARE NURSES - AMERICAN ASSOCIATION OF DIABETES EDUCATORS - AMERICAN ASSOCIATION OF NEUROLOGICAL SURGEONS - AMERICAN ACADEMY OF OPHTHALMOLOGY - AMERICAN HEALTH INFORMATION MANAGEMENT ASSOCIATION - AMERICAN ASSOCIATION OF NURSE PRACTITIONERS - AMERICAN COLLEGE OF OSTEOPATHIC FAMILY PHYSICIANS - AMERICAN SOCIETY OF ECHOCARDIOGRAPHY - AMERICAN PHYSICAL THERAPY ASSOCIATION - AMERICAN SOCIETY OF HEALTH-SYSTEM PHARMACISTS - AMERICAN ASSOCIATION OF HEALTHCARE ADMINISTRATION MANAGEMENT - ASSOCIATION OF WOMEN'S HEALTH, OBSTETRIC AND NEONATAL NURSES - INDIANA SHARING AND ANALYSIS CENTER - AMERICAN ACADEMY OF PHYSICIAN ASSISTANTS - AMERICAN PSYCHOLOGICAL ASSOCIATION - MEDICAL GROUP MANAGEMENT ASSOCIATION - SOCIETY OF HOSPITAL MEDICAL EXAMINERS - TRAUMA CENTER 34924915 1692784 2289914 1353300 37554313 30834712 2588248 3242314 1740359 34924915 34205140 1352757 -2479196 2243989 30834712 33854960 2155262 2479263 4284345 34205140 26556021 9605449 339397 2645907 33854960 0.80120 0.00000 0.19880 false true true 4015199 4015199 53504855 22287903 31216952 181412 181286 126 41213434 30118014 11095420 46327697 INVESTMENT IN HOME CARE 12366886 C INVESTMENT IN STRATUM MEDICAL 95000 C LAPORTE MEDICAL GROUP SURGICAL 348162 C VALPARAISO MEDICAL DEVELOPMENT 3312464 C 16122512 0 CAPITAL LEASES 123310 OTHER DEFERRED TAX 1439055 1562365 X SCH D, PART V, LINE 4 NET ASSETS WITH DONOR RESTRICTIONS CONSIST OF ASSETS WHOSE USE IS LIMITED BY DONOR IMPOSED, TIME AND/OR PURPOSE RESTRICTIONS. SOME NET ASSETS HAVE BEEN RESTRICTED BY DONORS TO BE MAINTAINED BY THE CORPORATION IN PERPETUITY. IN ACCORDANCE WITH THE RESTRICTION, A MAJORITY OF THE INVESTMENT INCOME AND INVESTMENT GAINS OR LOSSES FROM THESE NET ASSETS ARE RESTRICTED BY THE DONOR FOR A SPECIFIC PURPOSE. A SPECIFIED PORTION OF INCOME EARNED BY THE NET ASSETS IS RELEASED FROM RESTRICTION AND USED FOR OPERATIONS EACH YEAR AND, THEREFORE, IS INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS AS OTHER REVENUE. THE BOARD HAS DISCRETION TO UTILIZE EACH YEAR THE INCOMES, REVENUES AND PROFITS ARISING AND ACCRUING FROM THE ENDOWMENTS IN DEFRAYING COSTS ASSOCIATED WITH THE TRUST AND THE REMAINDER FOR SUPPORT, BETTERMENT, IMPROVEMENT, UPKEEP, EXPANSION AND REPLACEMENT OF BEACON HEALTH SYSTEM, INC. AND ITS CORPORATE AFFILIATES. SCH D, PART X, LINE 2 ASC 740, INCOME TAXES, REQUIRES THAT REALIZATION OF AN UNCERTAIN INCOME TAX POSITION IS MORE LIKELY THAN NOT (i.e., GREATER THAN 50% LIKELIHOOD OF RECEIVING BENEFIT) BEFORE IT IS RECOGNIZED IN THE FINANCIAL STATEMENTS AS THE AMOUNT MOST LIKELY TO BE REALIZED ASSUMING A REVIEW BY TAX AUTHORITIES HAVING ALL RELEVANT INFORMATION AND APPLYING CURRENT CONVENTIONS. THIS INTERPRETATION ALSO CLARIFIES THE FINANCIAL STATEMENT CLASSIFICATION OF TAX-RELATED PENALTIES AND INTEREST AND SET FORTH NEW DISCLOSURES REGARDING UNRECOGNIZED TAX BENEFITS. NO AMOUNT WAS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019. true HEALTHLINC INC 454 S COLLEGE AVENUE VALPARIASO IN 46383 352147791 501(c)(3) 550000 CASH SUPPORT HEALTH CENTER 1 SCHEDULE I, PART II PART OF THE ORGANIZATION'S MISSION IS TO IMPROVE THE HEALTH OF OUR COMMUNITY. IN ORDER TO FULFILL THIS GOAL, OUR ADMINISTRATORS HAVE THE ABILITY TO MAKE DONATIONS TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL BEING OF OUR COMMUNITY. THESE DONATIONS ARE MONITORED THROUGH OUTCOME MEASUREMENT REPORTS THAT ARE PROVIDED TO BEACON MEDICAL GROUP BY THE VARIOUS ORGANIZATIONS. THESE REPORTS INFORM US OF HOW THE DONATIONS WERE USED. X true true false true false false false false false true false VINCENT HENDERSON MD PRESIDENT/ASST SECRTARY 408823 0 0 0 355059 0 64077 0 10773 0 838732 0 316682 0 JEFFREY P COSTELLO CFO/Asst. Treasurer 0 542576 0 0 0 143221 0 87612 0 13710 0 787119 0 77377 STEPHEN SMITH EMPLOYED PHYSICIAN 1298233 0 784 0 900 0 11400 0 23504 0 1334821 0 0 0 NEAL B PATEL EMPLOYED PHYSICIAN 1453065 0 784 0 30540 0 7753 0 23072 0 1515214 0 0 0 WALTER LANGHEINRICH EMPLOYED PHYSICIAN 1383669 0 784 0 2580 0 11400 0 23504 0 1421937 0 0 0 JOHN GILBERT EMPLOYED PHYSICIAN 1441628 0 10784 0 600 0 11400 0 24254 0 1488666 0 0 0 KREG R GRUBER CEO 0 833477 0 0 0 151234 0 129958 0 20254 0 1134923 0 77770 KASHIF SHAIKH EMPLOYED PHYSICIAN 1383715 0 784 0 11862 0 0 0 13298 0 1409659 0 0 0 SCH J, PART I, LINE 1A BEACON MEDICAL GROUP, INC. OFFERS COMPLIMENTARY HEALTH CLUB MEMBERSHIP TO BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER, A RELATED PARTY. BEACON MEDICAL GROUP, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON MEDICAL GROUP, INC. ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: NONE HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ANITA KNUDSTON, THOMAS VIDIC, RAJ SHAH, AND ROB BARTELS TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: NONE SCH J, PART I, LINE 3 BEACON MEDICAL GROUP, INC. USES A RELATED ORGANIZATION'S (BEACON HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION. SCH J, PART I, LINE 4B - EXECUTIVE RETENTION PLAN BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2020, REFLECTED IN COLUMN (B)(III): . KREG GRUBER, $111,266 . JEFFREY COSTELLO, $107,531 . VINCENT HENDERSON, $343,599 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2020 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . KREG GRUBER, $118,558 . JEFFREY COSTELLO, $76,758 . VINCENT HENDERSON $56,449 SCH J, PART I, LINE 7 - INCENTIVE PLANS THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT, AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGEMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC. AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE MANAGEMENT INCENTIVE IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP IS FUNDED WHEN OPERATING INCOME IS EQUAL TO OR GREATER THAN 50% OF THE BUDGETED NET OPERATING INCOME. REWARD AMOUNTS ARE BASED ON A BALANCED SCORE CARD METHODOLOGY UTILIZING BEACON'S STRATEGIC IMPERATIVES AND MEASURED USING SELECTED METRICS SET ON A SLIDING SCALE DEFINED AS THRESHOLD 50%, TARGET 100%. AND MAXIMUM 150%. THE STRATEGIC IMPERATIVES ARE CLINICAL EXCELLENCE, GREAT WORKPLACE, CUSTOMER-DRIVEN CULTURE, SMART GROWTH, AND FINANCIAL SUSTAINAILITY. EACH IMPERATIVE CARRIES A DEFAULT WEIGHT OF 20%. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. PHYSICIAN RELATIONS INCENTIVE PLAN PROVIDES FOR AN INCENTIVE PAYMENT TO EMPLOYEES IN A PHYSICIANS RELATIONS POSITION BASED UPON ATTAINMENT OF SATISFACTION SCORES PAID AS A PERCENTAGE OF BASE PAY UP TO 5%. HOSPITALISTS ARE ELIGIBLE FOR AN INCENTIVE PAYMENT BASED UPON ATTAINMENT OF QUALITY MEASURES AND TENURE. THE INCENTIVE IS A COMPONENT OF THE HOSPITALIST PHYSICIAN COMPENSATION PLAN. HOSPITALIST NURSE PRACTITIONER / PHYSICIAN ASSISTANTS ARE ELIGIBLE FOR AN INCENTIVE BASED UPON ATTAINMENT OF QUALITY MEASURES. THE INCENTIVE IS A COMPONENT OF A QUALITY BONUS PLAN. FORM 990, PART VI BEACON HEALTH SYSTEM, INC. IS THE SOLE CORPORATE MEMBER OF BEACON MEDICAL GROUP,INC. FORM 900, PART VI, SECTION A, LINE 7A: THE CORPORATE MEMBER SHALL APPOINT THE BOARD OF DIRECTORS OF BEACON MEDICAL GROUP, INC., AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF BEACON MEDICAL GROUP, INC. FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS OF THE BOARD OF DIRECTORS MUST BE APPROVED BY THE CORPORATE MEMBER. THE CORPORATE MEMBER HAS SUCH RIGHTS AND POWERS AS: A. TO APPOINT AND REMOVE THE MEMBERS OF THE CORPORATION'S GOVERNING BOARD B. TO APPROVE THE INCURRENCE OF DEBT C. TO APPROVE SALES, TRANSFERS, DISSOLUTION OR SUBSTANTIAL CHANGE IN USE OF CORPORATE ASSETS D. TO APPROVE THE FORMATION OR DISSOLUTION OF A SUBSIDIARY ORGANIZATION E. TO APPROVE THE MATERIAL TRANSFER OR ENCUMBRANCE OF THE CORPORATE ASSETS F. TO APPROVE THE ANNUAL OPERATING BUDGET, CAPITAL PLAN, STRATEGIC PLAN AND BUSINESS PLAN G TO APPROVE THE MISSION AND VISION STATEMENTS H. TO APPROVE ANY MATERIAL TRANSACTIONS NOT INCLUDED IN THE APPROVED OPERATING BUDGET OR CAPITAL PLAN I. TO RESOLVE ANY ISSUES BETWEEN THE CORPORATION AND ANY OF THE CORPORATE MEMBER'S OTHER SUBSIDIARY ORGANIZATIONS J. TO APPROVE ANY MANAGEMENT AGREEMENT FOR THE MANAGEMENT OF ALL OR ANY SUBSTANTIAL PART OF THE CORPORATION FORM 990, PART VI, SECTION B, LINE 11B: THE ORGANIZATION INCORPORATES NUMEROUS PARTIES IN THE PRODUCTION AND REVIEW OF THE FORM 990 AND ASSOCIATED SCHEDULES. SENIOR ACCOUNTING STAFF AND MANAGEMENT COMPLETE THE FORM 990 AND SCHEDULES. SOME FORMS AND SCHEDULES ARE REVIEWED BY THE CONTROLLER. SUBSEQUENT TO THOSE STEPS, THE ORGANIZATION ENGAGED ERNST & YOUNG TO REVIEW THE COMPLETED FORM 990 AND APPROPRIATE SCHEDULES. PRIOR TO FILING THE RETURN, THE CFO, THE COMPENSATION COMMITTEE OF THE ORGANIZATION, AND THE CEO, CONDUCT A GENERAL OVERVIEW OF THE FORM 990, INCLUDING APPLICABLE COMPENSATION SCHEDULES. IN ADDITION, EACH BOARD MEMBER RECEIVES NOTIFICATION OF THE IRS FORM 990 PLACEMENT ON THE ORGANIZATION'S BOARD PORTALS WHICH ALLOWS FOR BOARD MEMBER REVIEW PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C: THERE ARE THREE SEPARATE FORMS THAT ARE SENT OUT THROUGH THE INTERNAL AUDIT DEPARTMENT TO KEY EMPLOYEES OR BOARD MEMBERS REGARDING CONFLICT OF INTEREST. THEY ARE AS FOLLOWS: 1. THE FIRST IS A CONFLICT OF INTEREST STATEMENT THAT IS SENT TO SENIOR LEVEL ADMINISTRATION, MANAGEMENT, AND SELECT STAFF SUCH AS PURCHASING DEPARTMENT EMPLOYEES. THE PURPOSE OF THE STATEMENT IS TO REQUIRE THESE EMPLOYEES TO DISCLOSE ANY POTENTIAL CONFLICT OF INTERESTS THEY MAY HAVE. THE STATEMENTS ARE SENT IN JANUARY OF EACH YEAR FOR THE PREVIOUS YEAR ACTIVITIES WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT 356 STATEMENTS AND ARE WORKING TO ACHIEVE A 100% RESPONSE RATE. EACH RESPONSE IS REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT AND THE RESULTS ARE REPORTED TO THE CEO OF BEACON HEALTH SYSTEM, THE AUDIT COMMITTEE CHAIRMAN, AS WELL AS THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 2. THE SECOND STATEMENT IS THE BOARD DUALITY OF INTEREST STATEMENT THAT IS SENT TO CURRENT BOARD MEMBERS, FORMER BOARD MEMBERS FROM THE LAST FIVE YEARS, AND OTHER KEY EMPLOYEES. THE DUALITY OF INTEREST STATEMENT IS SENT USING A WEB BASED SURVEY TOOL PROVIDED BY ERNST & YOUNG. THE REPLIES ARE REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT. THE RESULTS OF THE SURVEYS ARE SUMMARIZED USING THE WEB BASED TOOL, AND ARE REVIEWED BY ERNST & YOUNG IN COMPLETING THE 990. THE RESULTS ARE REPORTED TO THE CEO OF BEACON HEALTH SYSTEM, THE AUDIT COMMITTEE CHAIRMAN, AND THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 3. THE THIRD STATEMENT IS ENTITLED "CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS". THE STATEMENT REQUIRES AN ACKNOWLEDGEMENT FORM TO BE SIGNED BY BEACON HEALTH SYSTEM'S KEY FINANCIAL EMPLOYEES THAT BEACON'S FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT IN EARLY JANUARY 2021 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2020, 20 DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST WOULD BE EXCLUDED FROM ALL REVIEW PROCEEDINGS. FORM 990, PART VI, SECTION B, LINE 15A & 15B: BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF BEACON MEDICAL GROUP, INC., CONDUCTS THE REVIEW OF ALL COMPENSATION. VICE PRESIDENT AND HIGHER COMPENSATION IS DETERMINED AFTER AN EXTENSIVE EXAMINATION IS CONDUCTED USING COMPARABLE MARKET DATA AND THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. HUMAN RESOURCES CONDUCTS THE ANALYSIS AND MAKES RECOMMENDATIONS TO THE CEO WHO THEN MAKES THE RECOMMENDATIONS FOR ALL OTHER EXECUTIVES/OFFICERS TO THE BOARD FOR APPROVAL. THE INDEPENDENT CONSULTING GROUP SEPARATELY MAKES THE RECOMMENDATIONS REGARDING THE CEO'S COMPENSATION TO THE BOARD FOR APPROVAL. RECOMMENDATIONS ARE PRESENTED TO THE COMPENSATION COMMITTEE OF THE BEACON HEALTH SYSTEM, INC. BOARD FOR DELIBERATION AND FINAL DECISION. DELIBERATION AND FINAL DECISION ARE PERFORMED BY THE INDEPENDENT MEMBERS OF THE BOARD. VICE PRESIDENT AND HIGHER COMPENSATION IS PAID BY BEACON HEALTH SYSTEM, INC. EXCEPT AS NOTED BELOW. COMPENSATION OF THE EXECUTIVE DIRECTOR AND KEY EMPLOYEES IS PAID BY BEACON MEDICAL GROUP, INC. THE WAGES FOR BEACON MEDICAL GROUP PRESIDENT, VINCENT HENDERSON, WERE PAID BY BEACON MEDICAL GROUP, INC. FORM 990, PART VI, SECTION C, LINE 19: THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. THE FINANCIAL STATEMENTS ARE DISTRIBUTED QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR THE BEACON HEALTH SYSTEM, INC. BONDS. FORM 990, PART XI, LINE 9: WRITE OFF INTER COMPANY BEACON HEALTH SYSTEM $98,614,314 BOOK TAX DIFFERENCE ON JV REVENUE $175,823 Beacon Specialty Surgery Center LLC 100 Navarre Place Suite 4405 South Bend IN 46601 205878254 MEDICAL IN 0 0 BMG MEMORIAL HOSPITAL OF SOUTH BEND INC 615 N MICHIGAN ST SOUTH BEND IN 46601 350868132 HOSPITAL IN 501(C)(3) 3 BHS true BEACON HEALTH FOUNDATION INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351536129 FINANCIAL SUP IN 501(C)(3) 7 BHS true ELKHART GENERAL HOSPITAL INC 600 EAST BOULEVARD ELKHART IN 46514 350877574 HOSPITAL IN 501(C)(3) 3 BHS true BEACON HEALTH SYSTEM INC 615 N MICHIGAN ST SOUTH BEND IN 46601 453864076 PARENT ORG IN 501(C)(3) 12A NA false MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(c)(3) 12D MHSB true COMMUNITY HOSPITAL OF BREMEN INC 1020 High Rd Bremen IN 46506 350835006 HOSPITAL IN 501(C)(3) 3 BHS true COMMUNITY HOSPITAL OF BREMEN FOUNDATION 1020 High Road Bremen IN 46506 351813755 FINANCIAL SUP IN 501(C)(3) 12B BHS true BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN NA C 0 BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHIGAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI NA C 0 true false true false false false false false true true true false true true true true true true true MEMORIAL HOSPITAL OF SOUTH BEND O 1202161 PAYROLL MEMORIAL HOSPITAL OF SOUTH BEND P 7761423 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND Q 9174980 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND C 854435 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND K 1541730 ACTUAL CHARGES MEMORIAL HOSPITAL OF SOUTH BEND S 762821 CASH ELKHAT GENERAL HOSPITAL K 1185009 ACTUAL CHARGES ELKHART GENERAL HOSPITAL O 489052 PAYROLL ELKHART GENERAL HOSPITAL Q 1162648 ACTUAL CHARGES ELKHART GENERAL HOSPITAL P 229899 ACTUAL CHARGES ELKHART GENERAL HOSPITAL S 282299 CASH COMMUNITY HOSPITAL OF BREMEN K 105060 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN Q 1503902 ACTUAL CHARGES COMMUNITY HOSPITAL OF BREMEN S 102536 CASH BEACON HEALTH FOUNDATION C 121044 ACTUAL CHARGES