2021-11-12T13:37:44-06:00 2020-12-31 ERNST & YOUNG US LLP 155 NUPPER WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2020-01-01 453864076 Beacon Health System Inc % JEFFREY COSTELLO BEAC 5746473549 615 N MICHIGAN ST 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 ST SOUTH BEND IN 46601 320524064 false X BEACONHEALTHSYSTEM.ORG X 2011 IN WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. 14 11 1152 11 3116057 580133 241478 595506 93086704 97960701 41467782 8348509 3489882 13283007 138285846 120187723 746512 809195 0 0 54305353 58409014 0 0 0 51422907 64643003 106474772 123861212 31811074 -3673489 952891032 1108663886 102984825 102885120 849906207 1005778766 X WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. true false 123497677 809195 109908983 BEACON HEALTH SYSTEM, INC.(BEACON) IS THE PARENT OF ELKHART GENERAL HOSPITAL, INC., BEACON MEDICAL GROUP, INC., MEMORIAL HOSPITAL OF SOUTH BEND, INC., BEACON HEALTH FOUNDATION, INC., BEACON HEALTH VENTURES, INC., AND COMMUNITY HOSPITAL OF BREMEN, INC. BEACON PROVIDES COORDINATION FOR THE ORGANIZATIONS WITHIN THE SYSTEM IN SUCH MATTERS AS APPROVING BUDGETS, STRATEGIC PLANNING, MARKETING, ALLOCATING RESOURCES, SECURING TAX-EXEMPT BOND FINANCING AND PROVIDING COMMUNITY EDUCATION. 123497677 true true false true false false false false false true true true false false true true false true false false true false false false false false false false true true true false false false false false false false false true false false false false false true true true true false false true 228 0 true 1152 true true true false false false false false false false false false false false X 14 11 true false false false false false false true true false false true true true true true true true true true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 X KREG GRUBER CEO 40.0 10.0 X 984711 0 150212 WALTER HALLORAN MD DIRECTOR 2.0 40.0 X 150 829603 25704 JEFFREY P COSTELLO CFO 40.0 10.0 X 685798 0 101322 HAYSAM ELDALATI MD CHIEF CLINICAL OFFICER 40.0 0.0 X 565028 0 87742 STEVEN ELLER Cheif Human Resource Officer 40.0 0.0 X 426761 0 68203 SCOTT ESCHOWSKY MEDICAL INFORMATION OFFICER 40.0 0.0 X 426090 6825 31842 DIANE MAAS Chief Bus Dev & Plan Officer 40.0 0.0 X 394270 0 69993 MARK WARLICK Chief Information Officer 40.0 0.0 X 369837 0 81719 GENE GROVE DIRECTOR 2.0 0.0 X 466 87095 0 LARRY D HARDING DIRECTOR 2.0 0.0 X 1855 0 0 TOM CASSADY JR TREASURER 2.0 0.0 X X 1376 0 0 JESSE HSIEH MD CHAIR (Began 4/1/20) 2.0 0.0 X X 901 0 0 AMISH SHAH DIRECTOR 2.0 0.0 X 901 0 0 JULIA WILLIS DIRECTOR 2.0 0.0 X 901 0 0 DONALD ANDERSON SECRETARY (through 3/31/20) 2.0 0.0 X X 899 0 0 JOHN MARTIN SECRETARY (Began 4/1/20) 2.0 0.0 X X 790 0 0 DANIEL A MORRISON Director 2.0 0.0 X 616 0 0 J SCOTT TROEGER DIRECTOR(Through 3/31/20) 2.0 0.0 X 442 0 0 VIVIAN SALLIE DIRECTOR (Through 3/31/20) 2.0 0.0 X 150 0 0 BIPIN DOSHI DIRECTOR 2.0 0.0 X X 150 0 0 THOMAS BURISH VICE CHAIR (Began 4/1/20) 2.0 0.0 X X 150 0 0 SAMIR PATEL MD DIRECTOR 2.0 0.0 X 150 0 0 PETER BARANY DIRECTOR 2.0 2.0 X 150 0 0 MATTHEW PLETCHER DIRECTOR 2.0 2.0 X 150 0 0 3862692 923523 616737 81 false true false Cerner Corporation 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 IS Sftwr Maintenance 9678026 SP CONSULTANTSINC 15 BAINTREE HILL OFFICE PARK SUITE BRAINTREE MA 02184 SOFTWARE MAINTENANCE 2843344 CHANGE HEALTHCARE LLC 5995 WINDWARD PARWAY ALPHARETTA GA 30005 EQUIP MAINTENANCE 2013567 Software Information Systems LLC 165 Barr Street STE 200 LEXINGTON KY 40507 SOFTWARE MAINTENANCE 1723823 Panzica Building Corporation 416 E MONROE ST STE 320 SOUTH BEND IN 46601 Construction 1659434 119 X 170962 424544 0 595506 MANAGEMENT ADMIN SERVICES 561499 90009001 89288591 720410 NET PATIENT SERVICE REVENUE 621110 8896844 8896844 AFFILIATE RENT 532000 47628 47628 JOINT VENTURE ACTIVITY 621110 -992772 -1936293 943521 97960701 8918255 320525 8597730 0 0 184377 41356 143021 0 143021 143021 199725164 75 200294985 0 -569821 75 -569746 -569746 0 0 0 0 0 0 0 0 0 ATHLETIC CLUB 713940 5932173 5932173 QUALITY INCENTIVE 900099 3397663 3397663 MANAGED CARE ACTIVITIES 900099 1069577 0 1069577 2740573 2678549 62024 13139986 120187723 108305155 3116057 8171005 X 1537 1537 807658 807658 0 0 1932238 1932238 0 43140739 43140739 1194131 1194131 8481991 8481991 3659915 3659915 0 0 340843 0 340843 22692 0 22692 28064 28064 0 136103 136103 36449477 36449477 1920969 1920969 4096176 4096176 40412 40412 0 0 2014113 2014113 165801 165801 0 0 99286 99286 156477 156477 0 0 7871190 7871190 781878 781878 MANAGEMENT FEES 3060000 3060000 GENERAL DUES & SUBSCRIPTIONS 2927862 2927862 SUPPLIES 582346 582346 RECRUITMENT 533920 533920 3415394 3415394 123861212 123497677 363535 0 2750 2750 38789293 65556234 59261 167500 1087949 1945610 0 0 0 0 0 0 0 4011804 15543436 12000570 145380097 51239301 74967276 94140796 462588916 500864823 304751755 366729925 41016008 45942055 103840 103840 13980548 17197979 952891032 1108663886 18470426 18887105 0 0 8937 3400 82156180 80136474 0 0 0 0 0 0 0 0 2349282 3858141 102984825 102885120 X 849906207 1005778766 0 0 849906207 1005778766 952891032 1108663886 X -3673489 53357929 106188119 X false true X true false X X X 5 BEACON MEDICAL GROUP INC 351536132 10 true 19934223 0 ELKHART GENERAL HOSPITAL INC 350877574 3 true 3433392 0 MEMORIAL HOSPITAL OF SOUTH BEND INC 350868132 3 true 53073851 0 BEACON HEALTH FOUNDATION 351536129 7 false 112595 17628 COMMUNITY HOSPITAL OF BREMEN 350835006 3 false 410706 30000 5 76964767 47628 false false false false false true false false false false false false false false false true false true X true true SCHEDULE A, PART IV, SECTION A, LINE 1 BEACON HEALTH SYSTEM'S ("BHS") ARTICLES OF INCORPORATION STATE THAT IT IS ORGANIZED TO CONTROL AS A SOLE MEMBER OF AN INTEGRATED REGIONAL HEALTH CARE SYSTEM COMPRISED OF ONE OR MORE SUBSIDIARY ORGANIZATIONS, INCLUDING ELKHART GENERAL HOSPITAL, INC. ("EGH"), MEMORIAL HEALTH SYSTEM, INC. (NOW BEACON MEDICAL GROUP ("BMG")), AND ALL OTHER RESPECTIVE AFFILIATES, WHICH INCLUDES MEMORIAL HOSPITAL OF SOUTH BEND ("MHSB"). EGH, BMG, AND MHSB ARE SPECIFICALLY DESIGNATED BY NAME. BHS ALSO SUPPORTS BEACON HEALTH FOUNDATION ("BHF") AND COMMUNITY HOSPITAL OF BREMEN ("CHB"). AS BOTH OF THESE ENTITIES ARE PART OF THE SAME INTEGRATED HEALTH SYSTEM WITH BHS AS THE SOLE MEMBER OF ALL SUBSIDIARIES, THEY HAVE A CONTINUOUS AND HISTORIC RELATIONSHIP. SCHEDULE A, PART IV, SECTION A, QUESTION 6 BEACON HEALTH SYSTEM (BHS) PROVIDED A SMALL NUMBER OF GRANTS TO SELECT COMMUNITY ORGANIZATIONS WHICH FURTHER THE CHARITABLE PURPOSES OF ITS SUPPORTED ORGANIZATIONS. AS BHS IS THE PARENT OF AN INTEGRATED HEALTH SYSTEM, ITS SUPPORTED ORGANIZATIONS ARE AWARE AND APPROVE OF THESE GRANTS. THE HEALTH SYSTEM IS CONTINUING TO RE-ALIGN ITS GRANTMAKING ACTIVITY IN 2020 TO DIRECT ALL GRANTS THROUGH ITS AFFILIATED FOUNDATION AND HOSPITAL ORGANIZATIONS. SCHEDULE A, PART IV, SECTION D, QUESTION 2 & 3 BEACON HEALTH SYSTEM (PARENT) MAINTAINS A CLOSE AND CONTINUING RELATIONSHIP WITH ALL OF ITS SUPPORTED ORGANIZATIONS, AS THEY COMPRISE ONE INTEGRATED HEALTH SYSTEM. THEIR GOVERNANCE IS CLOSELY RELATED. THE PARENT SHARES COMMON OFFICERS WITH ITS SUPPORTED ORGANIZATIONS, THE CHAIR OF EACH OF THE SUPPORTED ORGANIZATIONS ARE INVITED GUESTS AT THE PARENT BOARD MEETINGS, AND THE BOARD COMMITTEES ARE ALL POPULATED WITH BOARD MEMBERS FROM BOTH THE PARENT AND SUPPORTED ORGANIZATIONS. IN ADDITION,THE INVESTMENT COMMITTEE OF THE PARENT BOARD INCLUDES COMMITTEE MEMBERS FROM BOTH THE PARENT AND THE SUPPORTED ORGANIZATIONS. AS A RESULT OF THIS OVERLAP, THE SUPPORTED ORGANIZATIONS HAVE A SIGNIFICANT VOICE IN THE PARENT'S INVESTMENT POLICIES AND IN DIRECTING THE USE OF THE PARENT'S INCOME AND ASSETS AT ALL TIMES DURING THE TAX YEAR. SCHEDULE A, PART IV, SECTION E, QUESTION 3A THE BHS BOARD HAS THE AUTHORITY TO APPOINT ALL OFFICERS AND DIRECTORS, SEE SCH. O DISCLOSURE FOR DETAILS. SCHEDULE A, PART IV, SECTION E, QUESTION 3B THE BHS BOARD AND COMMITTEES OVERSEE THE POLICIES, PROGRAMS AND ACTIVITIES OF THE SUPPORTED ORGANIZATIONS, SEE SCH. O DISCLOSURE FOR ADDITIONAL DETAILS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 28064 28064 false false Other Activities Part II-B BEACON HEALTH SYSTEM, 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. 34924915 1692784 2289914 1353300 37554313 30834712 2588248 3242314 1740359 34924915 34205140 1352757 -2479196 2243989 30834712 33854961 2155261 2479263 4284345 34205140 26556022 9605449 339397 2645907 33854961 0.80130 0.00000 0.19870 false true true 23412523 23412523 35396457 4836953 30559504 229492 167982 61510 83779852 46234366 37545486 2561773 2561773 94140796 ALTERNATIVE INVESTMENTS 366729925 F 366729925 0 DEFERRED LIABILITY EXEC SERP 2239293 DEFERRED TAX LIABILITY 961330 LEASE - LONG TERM 441388 LEASE - CURRENT 216130 3858141 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 GAIN 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 CHARGES 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 II 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 A BENEFIT) BEFORE IT IS RECOGNIZED IN THE FINANCIAL STATEMENT 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 SETS FORTH NEW DISCLOSURES REGARDING UNRECOGNIZED TAX BENEFITS. NO AMOUNT WAS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2020 OR 2019. Central America and the Caribbean 0 0 Investments 172375465 Europe (Including Iceland and Greenland) 0 0 Investments 15954596 0 0 0 0 188330061 188330061 true false true true true false true SCHOLARSHIPS/TUITION REIMBURSEMENT 482 807658 SCHEDULE I, PART I LINE 2 DONATIONS AND GRANTS GIVEN TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL-BEING OF OUR COMMUNITY ARE MONITORED THROUGH OUTCOME MEASUREMENT REPORTS THAT ARE PROVIDED TO BEACON HEALTH SYSTEM BY THE VARIOUS ORGANIZATIONS. THESE REPORTS INFORM US OF HOW THE DONATIONS AND GRANTS WERE USED. SCHEDULE I, PART III SCHOLARSHIPS/ TUITION REIMBURSEMENT FOR SCHOLARSHIPS THE INDIVIDUAL MUST MEET SEVERAL REQUIREMENTS TO QUALIFY. IN ORDER TO QUALIFY FOR A SCHOLARSHIP, THE INDIVIDUAL MUST (1) APPLY ON-LINE (INTRANET) AND WITHIN THE ACCEPTABLE TIME PARAMETERS FOR THE SEMESTER OF FUNDS BEING REQUESTED, (2) MAINTAIN A GRADE OF C OR BETTER, (3) PAY FOR TUITION/BOOKS AND SUBMIT CORRESPONDING ORIGINAL RECEIPTS FOR REIMBURSEMENT, REIMBURSED UP TO THE AMOUNT AWARDED BY THE SCHOLARSHIP COMMITTEE. (4) MEET ANY ADDITIONAL REQUIREMENTS OF THE SPECIFIC SCHOLARSHIP FUND, AND (5) MEET ELIGIBILITY REQUIREMENTS WHICH INCLUDE: (A) EMPLOYED BY BEACON HEALTH SYSTEM, INC. (B) ENROLLED IN A QUALIFIED PROGRAM, (C) SUBMITTED A POSITIVE RECOMMENDATION EACH SEMESTER FROM THE IMMEDIATE SUPERVISOR, AND (D) SUBMITTED A POSITIVE RECOMMENDATION EACH SEMESTER FROM THE SCHOOL. X X X true true X X X X X false true false false false false false true false WALTER HALLORAN MD DIRECTOR 0 807659 0 17834 150 4110 0 10897 0 14807 150 855307 0 0 JEFFREY P COSTELLO CFO 542577 0 0 0 143221 0 87612 0 13710 0 787120 0 77377 0 KREG GRUBER CEO 833477 0 0 0 151234 0 129958 0 20254 0 1134923 0 77770 0 STEVEN ELLER Cheif Human Resource Officer 328633 0 0 0 98128 0 57288 0 10915 0 494964 0 34928 0 DIANE MAAS Chief Bus Dev & Plan Officer 340919 0 0 0 53351 0 53861 0 16132 0 464263 0 31150 0 MARK WARLICK Chief Information Officer 348027 0 0 0 21810 0 57665 0 24054 0 451556 0 0 HAYSAM ELDALATI MD CHIEF CLINICAL OFFICER 514575 0 50453 70880 16862 652770 34088 SCOTT ESCHOWSKY MEDICAL INFORMATION OFFICER 376790 6825 3010 0 46290 0 7588 0 24254 0 457932 6825 0 0 PART I, LINE 1A COMPLIMENTARY HEALTH CLUB MEMBERSHIP WITH BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER IS OFFERRED TO DIRECTORS. BEACON HEALTH SYSTEM, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON HEALTH SYSTEM 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: KREG GRUBER, DON ANDERSON, J. SCOTT TROEGER, HAYSAM ELDALATI, M.D. AND LARRY HARDING. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: JOHN MARTIN, JESSE HSIEH, THOMAS CASSADY JR, AMISH SHAH, DANIEL MORRISON, LARRY HARDING AND JULIA WILLIS. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: LARRY HARDING, DON ANDERSON, J.SCOTT TROEGER, KREG GRUBER, AND HAYSAM ELDALATI, M.D. PART I, LINE 4B 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 INDIVIDUAL RECEIVED VESTED PAYMENTS IN 2020, REFLECTED IN COLUMN (B)(III): . KREG GRUBER, $111,266 . JEFFREY COSTELLO, $107,531 . STEVEN ELLER, $52,076 . DIANE MAAS, $43,121 . HAYSAM ELDALATI, $34,567 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 . STEVEN ELLER, $50,391 . MARK WARLICK, $50,603 . DIANE MAAS, $47,527 . HAYSAM ELDALATI, $70,880 PART I, LINE 7 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-MANAGMENT 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. A HOSPITAL AUTHORITY OF SAINT JOSEPH COUNTY 366311914 2016-08-18 50000000 CONSTRUCT CHILDREN'S HOSPITAL false false false B HOSPITAL REVENUE BONDS SERIES 2018 911914363 2018-12-11 35000000 CONSTRUCT ADMIN AND BREMEN HOSPITA false false false A 1995000 0 50000000 0 0 0 285000 0 0 49715000 0 0 2017 false false true true B 2500000 0 35424227 0 0 0 158279 0 0 34598907 0 667041 2019 false false false true A false false false false 0 false false false true B false false false false 0 false false false true A false true false false false false 0 false 0 false true B false true false false true false 0 false 0 false true A true B true Megan Ball Martin Board Member is father-in-law 45498 Compensation false FORM 990, PART III, LINE 2 In 2020, Beacon Health System, Inc.(BHS) consolidated the Beacon Health and Fitness (BH&F) services to BHS. As part of the consolidation, all BH&F operations, programs and employees are now included in BHS, whereas in the past these were separate departments of affiliated entities. The addition of BH&F caused an increase in income and employees in 2020 compared to 2019. FORM 990 PART VI SECTION A, LINE 2 Amish Shah and Jessi Hsieh have a business relationship. 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 ON JANUARY 12, 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. HAS AN EXTENSIVE EXAMINATION THAT IS CONDUCTED FOR VICE PRESIDENT AND HIGHER. 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. 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 MEMORIAL HOSPITAL OF SB $145,892,247 WRITE OFF INTER COMPANY ELKHART GENERAL HOSPITAL $61,772,832 WRITE OFF INTER COMPANY BEACON MEDICAL GROUP $-100,822,944 WRITE OFF INTER COMPANY BEACON HEALTH FOUNDATION $-593,960 JOINT VENTURE TAX DIFFERENCES $-60,103 ROUNDING VARIANCE $ 47 TOTAL $106,188,119 TOTAL $106,188,119 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:805544 FORM 990 PART IX LINE 11G DESCRIPTION:EQUIPMENT RENTAL & MAINTENANCE TOTAL FEES:22006645 FORM 990 PART IX LINE 11G DESCRIPTION:RADIOLOGY FEES TOTAL FEES:44828 FORM 990 PART IX LINE 11G DESCRIPTION:LAB READING FEES TOTAL FEES:353314 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:64222 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:8947313 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:4227611 BEACON OCCUPATIONAL HEALTH 22818 Old US 20 Elkhart IN 46516 352073758 Medical Cent IN 6529407 3063437 BHS CHA ACO LLC 53842 Generations Dr South Bend IN 46635 462860087 ACO IN 3513703 2979944 BHS Beacon Health LLC 615 N MICHIGAN ST SOUTH BEND IN 46601 320541809 MEDICAL SRVCS IN 2417507 2296377 BHS 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 BLVD ELKHART IN 46514 350877574 HOSPITAL IN 501(C)(3) 3 BHS true BEACON MEDICAL GROUP INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351536132 PHY PRACTICES IN 501(C)(3) 10 BHS true MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(C)(3) 12D III-O MHSB true COMMUNITY HOSPITAL OF BREMEN INC 1020 HIGH ROAD 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,II BHS true South Bend Surgery Ctr 335 Florence Ave 1B Granger IN 46530 460571418 Surgical Services IN NA UnRelated 493128 646771 false 155 true 0.54000 BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN BHS C 3844594 13148429 1.00000 true BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHGIAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI BHS C 0 0 1.00000 true true true true false false false false false true false false true true true true true true true true Beacon Medical Group P 19934223 Actual Charges Beacon Medical Group Q 37266419 Actutal Charges Beacon Medical Group R 69283106 CASH Beacon Medical Group L 14426739 TRANSFER PRICE Beacon Medical Group R 100822944 ACTUAL CHARGES Beacon Medical Group K 127380 Actual Charges Memorial Hospital of South Bend P 53073851 Actual Charges Memorial Hospital of South Bend Q 142657125 Actual Charges Memorial Hospital of South Bend R 142907 CASH Memorial Hospital of South Bend S 282200000 Cash Memorial Hospital of South Bend L 47150955 Transfer Price Memorial Hospital of South Bend K 577139 Actual Charges Memorial Hospital of South Bend S 145892247 ACTUAL CHARGES Beacon Health Foundation Q 1382663 ACTUAL CHARGES Beacon Health Foundation S 1105285 CASH Beacon Health Foundation L 154795 TRANSFER PRICIN Beacon Health Foundation P 112595 ACTUAL CHARGES Beacon Health Foundation A 17628 Actual Charges Beacon Health Foundation R 593960 Actual Charges Beacon Health Foundation C 170962 ACTUAL CHARGES Community Hospital of Bremen Q 4424344 ACTUAL CHARGES Community Hospital of Bremen L 1989495 TRANSFER PRICE Community Hospital of Bremen P 410706 Actual Charges Community Hospital of Bremen A 30000 ACTUAL CHARGES Community Hospital of Bremen S 7916779 CASH Beacon Health Ventures P 46608 Actual Charges Beacon Health Ventures Q 5216927 ACTUAL CHARGES Beacon Health Ventures S 3492084 CASH Beacon Health Ventures L 720410 TRANSFER PRICE Elkhart General Hospital P 3433392 Actual Charges Elkhart General Hospital Q 85753032 Actual Charges Elkhart General Hospital S 170100000 CASH Elkhart General Hospital L 25566606 TRANSFER PRICE Elkhart General Hospital K 96324 ACTUAL CHARGES Elkhart General Hospital S 61772832 ACTUAL CHARGES