2020-11-15T14:59:06-06:00 2019-12-31 ERNST & YOUNG US LLP 155 NUPPER WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2019-01-01 453864076 Beacon Health System Inc % JEFFREY COSTELLO BEAC 5746473549 615 N MICHIGAN ST SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 5746473549 2020-11-13 true JACOB J ZEHNDER P01564049 3128792702 104.187.159.70 36964520203205000017 2020-11-15 P 70F42B1529BDAB3B66F8C0F68947A8C617E11717 08EA3ABC02870A03E2977DCD2F85AD881E89FD8E 2019 2021-01-29 14:40:06Z Kreg Gruber 615 N MICHIGAN ST SOUTH BEND IN 46601 218253326 false X BEACONHEALTHSYSTEM.ORG X 2011 IN BEACON HEALTH SYSTEM, INC. IS COMMITTED TO ENHANCING THE PHYSICAL, MENTAL, EMOTIONAL AND SPIRITUAL WELL-BEING OF THE COMMUNITIES WE SERVE. 13 11 690 12 3330387 1075926 345901 241478 87288863 93086704 37812075 41467782 3623681 3489882 129070520 138285846 569055 746512 0 0 45360753 54305353 0 0 0 51319265 51422907 97249073 106474772 31821447 31811074 855494752 952891032 101247345 102984825 754247407 849906207 BEACON HEALTH SYSTEM, INC. IS COMMITTED TO ENHANCING THE PHYSICAL, MENTAL, EMOTIONAL AND SPIRITUAL WELL-BEING OF THE COMMUNITIES WE SERVE AS THE COMMUNITY'S PROVIDER OF OUTSTANDING QUALITY, SUPERIOR VALUE AND COMPREHENSIVE HEALTH CARE SERVICES. false false 105321940 746512 95090093 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. 105321940 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 208 0 true 690 true true true false false false false false false false false false true false X 13 11 true false true 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 1670567 0 203973 JEFFREY P COSTELLO CFO 40.0 10.0 X 1208925 0 131675 WALTER HALLORAN MD DIRECTOR 2.0 40.0 X 0 1154171 27654 MARK WARLICK Chief Information Officer 40.0 0.0 X 500085 0 101458 DIANE MAAS Chief Bus Dev & Plan Officer 40.0 0.0 X 510305 0 89211 STEVEN ELLER Cheif Human Resource Officer 40.0 0.0 X 511310 0 84895 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 40.0 0.0 X 408403 0 83958 CHERYL WIBBENS Phy Advisor 40.0 0.0 X 400443 0 35716 MICHAEL O'NEIL Former CAO (Left 02/01/2018) 0.0 0.0 X 295554 0 2500 TOM CASSADY JR TREASURER 2.0 0.0 X X 2317 0 0 JOHN MARTIN DIRECTOR 2.0 0.0 X 1340 0 0 TRACY GRAHAM DIRECTOR 2.0 0.0 X 1223 0 0 JESSE HSIEH MD VICE CHAIR 2.0 0.0 X X 948 0 0 AMISH SHAH DIRECTOR 2.0 0.0 X 948 0 0 DANIEL A MORRISON TREASURER ThRU MARCH 2019 2.0 0.0 X X 294 0 0 LARRY D HARDING DIRECTOR 2.0 0.0 X 0 0 0 VIVIAN SALLIE DIRECTOR 2.0 0.0 X 0 0 0 J SCOTT TROEGER DIRECTOR 2.0 0.0 X 0 0 0 BIPIN DOSHI Chair 2.0 0.0 X X 0 0 0 DONALD ANDERSON Secretary 2.0 0.0 X X 0 0 0 THOMAS BURISH Director 2.0 0.0 X 0 0 0 SAMIR PATEL MD DIRECTOR 2.0 0.0 X 0 0 0 5512662 1154171 761040 70 true true false Cerner Corporation 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 IS Sftwr Maintenance 6272245 PANZICA BUILDING CORP 416 E Monroe St Ste 320 SOUTH BEND IN 46601 CONTRACTING SERVICE 10915166 SP CONSULTANTSINC 15 BAINTREE HILL OFFICE PARK SUITE BRAINTREE MA 02184 SOFTWARE MAINTENANCE 6390932 ALLSCRIPTS LLC 8529 SIX FORKS ROAD RALEIGH NC 27615 Software Maintenance 2390293 TELETRACKING TECHNOLOGIES INC 336 FOURTH AVE 7TH FLOOR PITTSBURGH PA 15222 Technology Solutions 1601887 90 X 133563 107915 241478 MANAGEMENT ADMIN SERVICES 561499 81125487 80207900 917587 NET PATIENT SERVICE REVENUE 621110 8924113 8924113 AFFILIATE RENT 532000 23969 23969 JOINT VENTURE ACTIVITY 621110 3013135 1613826 1399309 93086704 13940132 -357732 14297864 0 0 126158 10888 115270 0 115270 115270 107459432 24810 79956592 0 27502840 24810 27527650 27527650 0 0 0 0 0 0 0 0 0 MANAGED CARE ACTIVITIES 621300 1358993 96258 1262735 LANGUAGE SERVICES 561499 65856 65856 CHA INFORMATION SUPPORT SYSTEM FEES 561499 18347 18347 1931416 1907131 24285 3374612 138285846 92773197 3330387 41940784 X 7684 7684 738828 738828 0 0 3222210 3222210 0 0 298054 298054 37255565 37255565 1098520 1098520 9597240 9597240 2833764 2833764 0 0 1111719 0 1111719 41113 0 41113 32312 32312 0 96032 96032 30389955 30389955 1038199 1038199 3211913 3211913 208076 208076 0 0 1454429 1454429 526887 526887 0 0 127626 127626 313901 313901 0 0 5206259 5206259 694690 694690 GENERAL DUES & SUBSCRIPTIONS 3120947 3120947 RECRUITMENT 581707 581707 SUPPLIES 306206 306206 SIGNAGE 228013 228013 2732923 2732923 106474772 105321940 1152832 0 2041 2750 13681100 38789293 0 59261 989107 1087949 0 0 0 0 0 0 0 0 10218531 15543436 114806994 39839718 56434030 74967276 463273359 462588916 270947307 304751755 32025532 41016008 103840 103840 7819905 13980548 855494752 952891032 14069602 18470426 0 0 0 8937 84220886 82156180 0 0 0 0 0 0 0 0 2956857 2349282 101247345 102984825 X 754247407 849906207 0 0 754247407 849906207 855494752 952891032 X 31811074 46128566 17719160 X false true X true false X X X 5 BEACON MEDICAL GROUP INC 351536132 10 true 25962303 0 ELKHART GENERAL HOSPITAL INC 350877574 3 true 5111671 0 MEMORIAL HOSPITAL OF SOUTH BEND INC 350868132 3 true 35030056 0 BEACON HEALTH FOUNDATION 351536129 7 true 69211 1469 COMMUNITY HOSPITAL OF BREMEN 350835006 3 true 546020 22500 5 66719261 23969 false false false false true 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, LINE 5A BEACON HEALTH SYSTEM, INC. ADDED COMMUNITY HOSPITAL OF BREMEN (CHB), EIN # 35-0835006 AS A SUPPORTED ORGANIZATION IN 2019. THIS WAS ACCOMPLISHED THROUGH BHS'S ACQUISITION OF CHB AND BY CHB'S 2018 AMENDMENT OF THE ARTICLES OF INCORPORATION TO INCLUDE BHS AS ITS SOLE MEMBER. AS BHS AND CHB HAVE A PARENT/SUBSIDIARY RELATIONSHIP WITHIN THE SAME INTEGRATED HEALTH SYSTEM, THEY HAVE A HISTORIC AND CONTINUOUS 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 2019 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 32312 32312 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. 30834712 2588248 3242314 1740359 34924915 34205140 1352757 -2479196 2243989 30834712 33854961 2155261 2479263 4284345 34205140 26556022 9605449 339397 2645907 33854961 29619029 4093832 -1367472 5789367 26556022 0.80030 0.00210 0.19760 false true true 21784432 21784432 6804855 2098432 4706423 229492 159817 69675 54853763 37581469 17272294 31134452 31134452 74967276 ALTERNATIVE INVESTMENTS 304751755 F 304751755 0 DEFERRED LIABILITY EXEC SERP 2349282 2349282 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 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 SETS FORTH NEW DISCLOSURES REGARDING UNRECOGNIZED TAX BENEFITS. NO AMOUNT WAS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2019 OR 2018. Central America and the Caribbean 0 0 Investments 153112058 Europe (Including Iceland and Greenland) 0 0 Investments 12557855 0 0 0 0 165669913 165669913 true false true true true false true SCHOLARSHIPS/TUITION REIMBURSEMENT 512 738828 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 true true false false false false false true false WALTER HALLORAN MD DIRECTOR 0 1127561 0 22800 0 3810 0 11200 0 16454 0 1181825 0 0 JEFFREY P COSTELLO CFO 536899 0 213297 0 458729 0 112590 0 19085 0 1340600 0 380118 0 MICHAEL O'NEIL Former CAO (Left 02/01/2018) 0 0 0 0 295554 0 0 0 2500 0 298054 0 295907 0 KREG GRUBER CEO 792493 0 435000 0 443074 0 172991 0 30982 0 1874540 0 377156 0 STEVEN ELLER Cheif Human Resource Officer 326152 0 133544 0 51614 0 74088 0 10807 0 596205 0 37858 0 DIANE MAAS Chief Bus Dev & Plan Officer 324551 0 130326 0 55428 0 72918 0 16293 0 599516 0 30904 0 MARK WARLICK Chief Information Officer 337125 0 142343 0 20617 0 77332 0 24126 0 601543 0 LORETTA LYNNE TURNER Chief Mktg Innv & Exp Officer 280019 0 118650 0 9734 0 65169 0 18789 0 492361 0 0 CHERYL WIBBENS Phy Advisor 328039 0 68750 0 3654 0 11200 0 24516 0 436159 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: JOHN MARTIN AND THOMAS CASSADY, JR. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: JOHN MARTIN, JESSE HSIEH, THOMAS CASSADY JR, TRACY GRAHAM AND AMISH SHAH. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: JOHN MARTIN AND THOMAS CASSADY, JR. PART I, LINE 4A MICHAEL O'NEIL SERVED AS THE CHIEF ADMINISTRATIVE OFFICER FOR BEACON HEALTH SYSTEM. THIS POSITION WAS ELIMINATED ON 2/1/18 RESULTING IN A ONE YEAR SEVERANCE AGREEMENT. THE AMOUNT OF SEVERANCE PAID OUT IN 2019 TO MICHAEL O'NEIL WAS $35,907. 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 2019, REFLECTED IN COLUMN (B)(III): . KREG GRUBER, $106,338 . JEFFREY COSTELLO, $99,426 . STEVEN ELLER, $30,296 . DIANE MAAS, $39,871 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2019 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: . KREG GRUBER, $161,791 . JEFFREY COSTELLO, $101,390 . STEVEN ELLER, $62,888 . MARK WARLICK, $66,132 . LORI TURNER, $53,969 . DIANE MAAS, $61,718 BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE LONGEVITY BONUS PLAN FOR THE PURPOSE OF PROVIDING A LONGEVITY BONUS FOR ITS DESIGNATED EXECUTIVES. THIS UNFUNDED PLAN WAS EFFECTIVE APRIL 1, 2014. THE PARTICIPANTS MUST REMAIN IN AN ACTIVE EMPLOYMENT STATUS WITH BEACON FOR A PERIOD OF 5 CONSECUTIVE YEARS FROM THE EFFECTIVE DATE TO BE ELIGIBLE TO RECEIVE THE FULL LONGEVITY BONUS AMOUNT AT WHICH TIME VESTING IS 100%. VESTING PRIOR TO THE 5 YEARS IS AT 0%. THE MAXIMUM BONUS AWARD AT 100% VESTING IS $325,000. THE FOLLOWING INDIVIDUALS EARNED THESE AMOUNTS IN 2019 TOWARDS THE LONGEVITY BONUS PLAN: . KREG GRUBER, $16,250 . JEFFREY COSTELLO, $16,250 THE LONGEVITY BONUS PLAN BECAME FULLY VESTED IN 2019 AND WAS PAID OUT TO THE FOLLOWING INDIVIDUALS, REFLECTED IN COLUMN (B)(III): . KREG GRUBER, $325,000 . JEFFREY COSTELLO, $325,000 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 PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET OPERATING INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME. 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 PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET INCOME. THE SLIDING SCALE CAPS, WHEN OPERATING INCOME REACHES 120% OF THE BUDGETS OPERATING INCOMES. 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 1200000 0 50000000 0 0 0 285000 0 0 49715000 0 0 2017 false false true true B 1250000 0 35000000 0 0 0 158279 0 0 27812691 0 7029030 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 VI SECTION A, LINE 2 TRACY GRAHAM AND RON FENECH HAVE A BUSINESS RELATIONSHIP. AMISH SHAH AND JESSI HSIEH HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 4 BEACON HEALTH SYSTEM, INC. ("BHS") UPDATED ITS CORPORATE BYLAWS ON MARCH 1, 2019 AND INCLUDED SIGNIFICANT CHANGES TO THE BOARD OF DIRECTORS' STRUCTURE AND OFFICERS. IN 2019 BHS REMOVED LANGUAGE IN THE BYLAWS RELATED TO THE SUNSET PROVISION. THE SUNSET PROVISION WAS RELATED TO A PROVISION WHICH EXPIRED IN 2019 WHERE THE 14 MEMBERS OF THE BOARD OF DIRECTORS WERE APPOINTED 50% BY ELKHART GENERAL HOSPITAL AND 50% BY BEACON MEDICAL GROUP. AS A RESULT OF THIS CHANGE THE BOARD OF DIRECTORS SHALL BE APPOINTED BY THE NOMINATING AND GOVERNANCE COMMITTEE OF BHS AND APPROVED BY THE BHS BOARD. REMOVAL OF ANY DIRECTOR MAY BE INITIATED BY A SUPERMAJORITY VOTE. THE NUMBER OF DIRECTORS WAS UPDATED FROM 'AN EVEN NUMBER' TO 'FROM 14 TO 18' DIRECTORS. THE TERM LIMITS FOR THESE DIRECTORS WERE ALSO UPDATED TO FURTHER CLARIFY WHETHER A PARTIAL-YEAR TERM WOULD BE CONSIDERED A FULL YEAR TERM WHEN A DIRECTOR IS FIRST ELECTED TO FILL AN OPEN POSITION PART WAY THROUGH THE TERM AS A RESULT OF A VACANCY ON THE BOARD. THE BOARD CHAIR'S TERM OF SERVICE AS A DIRECTOR OF THE CORPORATION SHALL BE EXTENDED AS NECESSARY IN ORDER THAT THE BOARD CHAIR REMAINS A DIRECTOR WHILE SERVING AS CHAIR. ALSO, AFTER A BREAK IN SERVICE ON THE BOARD OF AT LEAST ONE YEAR, A FORMER DIRECTOR WHO HAS SERVED THREE CONSECUTIVE TERMS IS AGAIN ELIGIBLE FOR SERVICE ON THE BOARD. THE BYLAWS WERE ALSO AMENDED TO ADD AN ADDITIONAL OFFICER POSITION OF THE IMMEDIATE PAST CHAIR. THE IMMEDIATE PAST CHAIR SHALL SERVE ON THE EXECUTIVE COMMITTEE AND THE COMPENSATION COMMITTEE AND SHALL PERFORM SUCH DUTIES AND FUNCTIONS AS THE BOARD MAY FROM TIME TO TIME DETERMINE. UPON THE EXPIRATION OF THE TERM OF THE CHAIR THE DIRECTOR SHALL SERVE AS THE IMMEDIATE PAST CHAIR FOR THE LESSOR OF (I) TWO YEARS, OR (II) ANY REMAINING PORTION OF THAT PERSON'S TERM AS DIRECTOR. OTHER SMALLER CHANGES WERE MADE PERTAINING TO THE COMPOSITION AND OPERATION OF VARIOUS COMMITTEES OF BHS, EVENTS THAT ARE CONSIDERED "SIGNIFICANT MATTERS" THAT WOULD REQUIRE ADDITIONAL PROCEDURES FOR APPROVAL, AND DUTIES OF THE OFFICERS. 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 24, 2020 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 $ 78,243,382 WRITE OFF INTER COMPANY ELKHART GENERAL HOSPITAL $ 27,624,911 WRITE OFF INTER COMPANY BEACON MEDICAL GROUP $ -87,998,995 TAX DIFFERENCES BETWEEN JV $ -150,145 ROUNDING VARIANCE $ 7 TOTAL $ 17,719,160 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:677440 FORM 990 PART IX LINE 11G DESCRIPTION:EQUIPMENT RENTAL AND MAINTENAN TOTAL FEES:19145964 FORM 990 PART IX LINE 11G DESCRIPTION:RADIOLOGY FEES TOTAL FEES:49909 FORM 990 PART IX LINE 11G DESCRIPTION:LAB READING FEES TOTAL FEES:358307 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:198388 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:6800884 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:3159063 Community Occupational Medicine 22818 Old US 20 Elkhart IN 46516 352073758 Medical Cent IN 6703155 2956905 BHS CHA ACO LLC 53842 Generations Dr South Bend IN 46635 462860087 ACO IN 107287 178523 BHS Beacon Health LLC 615 N MICHIGAN ST SOUTH BEND IN 46601 320541809 MEDICAL SRVCS IN 2355961 2237038 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 350835006 FINANCIAL SUP IN 501(c)(3) 12B,II BHS true BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN BHS C 5556304 7163034 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 true true true true true true true true true Beacon Medical Group K 117500 Actual Charges Beacon Medical Group P 25962303 Actutal Charges Beacon Medical Group Q 39189448 Actual Charges Beacon Medical Group R 60902755 CASH Beacon Medical Group L 13582657 TRANSFER PRICE Beacon Medical Group R 87998995 Actual Charges Memorial Hospital of South Bend S 78243382 Actual Charges Memorial Hospital of South Bend P 35030056 Actual Charges Memorial Hospital of South Bend Q 157459517 Actual Charges Memorial Hospital of South Bend S 241750000 Cash Memorial Hospital of South Bend L 41723640 Transfer Price Memorial Hospital of South Bend K 710599 Actual Charges Beacon Health Foundation Q 1275918 ACTUAL CHARGES Beacon Health Foundation S 1168988 CASH Beacon Health Foundation L 217566 TRANSFER PRICE Community Hospital of Bremen Q 3770760 Actual Charges Community Hospital of Bremen L 1829000 TRANSFER PRICE Community Hospital of Bremen P 546020 Actual Charges Community Hospital of Bremen A 22500 Actual Charges Community Hospital of Bremen S 2650000 CASH Beacon Health Ventures K 286014 ACTUAL CHARGES Beacon Health Ventures P 622513 ACTUAL CHARGES Beacon Health Ventures Q 5753604 Actual Charges Beacon Health Ventures S 7700000 CASH Beacon Health Ventures L 917587 Transfer Price Elkhart General Hospital P 5111671 Actual Charges Elkhart General Hospital Q 85631725 ACTUAL CHARGES Elkhart General Hospital S 131000000 CASH Elkhart General Hospital L 22855035 Actual Charges Elkhart General Hospital S 27624911 Actual Charges Beacon Health Foundation C 133563 Actual Charges