2025-11-14T15:20:05-06:00 2024-12-31 420714325 RSM US LLP 30 South Wacker Dr Suite 3300 Chicago IL 606063392 990 2024-01-01 351536132 Beacon Medical Group Inc BEAC 5746473549 615 N Michigan Street South Bend IN 46601 Jeffrey Costello CFO 5746473549 2025-11-07 1 1 Rebekuh Eley P01247672 3126343400 2025-11-07 2024 2025-03-06 01:10:19Z Kreg Gruber 615 N Michigan Street South Bend IN 46601 220865601 0 X www.beaconhealthsystem.org X 1981 IN We deliver outstanding care, inspire health, and connect with heart. 9 9 1881 0 2814793 442984 2098 2137913 187463966 217541060 -21357 -430886 138251 372990 187582958 219621077 23486 0 0 0 248103401 256558868 0 0 0 79245781 75197010 327372668 331755878 -139789710 -112134801 120475465 105464034 30591318 32146191 89884147 73317843 We deliver outstanding care, inspire health, and connect with heart. 0 0 293737522 0 217420024 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. 83716 0 121498 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. 293821238 1 1 0 1 0 0 0 0 0 1 1 0 1 0 0 1 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 1 1 1 1 0 0 1 121 0 1 1881 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 9 9 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 IN X Jeffrey Costello 5746473549 615 N Michigan Street South Bend IN 46601 William Houston MD Chair 2.00 0.00 X X 200 0 0 Anita Knudston Secretary 2.00 0.00 X X 1220 0 0 Robert Bartels Jr Director thru 3/31/24 2.00 0.00 X 0 0 0 William Buckley MD Director 2.00 0.00 X 200 0 0 David A Campbell MD Director 2.00 0.00 X 200 0 0 Kevin M Casey DO Director 2.00 0.00 X 200 0 0 Debie M Coble Director 2.00 0.00 X 200 0 0 Kendra N Key Director 2.00 0.00 X 200 0 0 Samir Patel MD Director 2.00 2.00 X 0 1220 0 Thomas R Vidic MD Director 2.00 0.00 X 1220 0 0 Kreg R Gruber CEO 2.00 50.00 X 0 1848714 287708 Jeffrey P Costello CFO 2.00 50.00 X 0 1077612 188598 Dale A Patterson President 40.00 0.00 X 695150 0 169710 Matthew Koscielski MD Employed Physician 40.00 0.00 X 2415448 0 72758 Charbel F Maskiny MD Employed Physician 40.00 0.00 X 1770820 0 77779 Ismail Al Ani MD Employed Physician 40.00 0.00 X 1618661 0 78779 Neal B Patel Employed Physician 40.00 0.00 X 1893623 0 71385 Kasif A Shaikh Employed Physician 40.00 0.00 X 1553855 0 37546 9951197 2927546 984263 441 0 1 0 Medicus Anesthesia Services LLC 22 Roulston Rd Windham NH 03087 Temporary Staffing 3798589 Elkhart Clinic LLC PO Box 2968 Elkhart IN 46515 Medical Billing 3473325 Hayes Locums LLC PO Box 88122 Chicago IL 606801122 Temporary Staffing 3024620 Obstetrix Medical Group of Indiana PC PO Box 281034 Atlanta GA 303841034 Physician Services 3005000 Woodcox Building Contractors 51175 Prescott Ave South Bend IN 46637 Construction Services 1847181 35 2086249 51664 2137913 Net Patient Revenue 621111 175374150 175354871 19279 Med Svcs to Affiliates 621111 36297987 34147543 2150444 Affiliate Rent 531120 3066614 2421544 645070 Medical Directorship 621111 2036440 2036440 Management Admin Services 561499 642271 642271 123598 123598 217541060 102238 102238 794580 422052 372528 372528 372528 289348 822472 -533124 -533124 -533124 Medical Records 621111 462 462 462 219621077 214726729 2814793 -58358 868500 868500 220254701 212334170 7920531 5444595 5370469 74126 19793747 18984116 809631 10197325 9368905 828420 4798 4798 41952 41952 7046 7046 9203082 8573534 629548 28652 27823 829 1198815 1033499 165316 2481 2386 95 4379547 3460007 919540 97242 61598 35644 884055 883367 688 5742451 5342919 399532 3697814 2987580 710234 Corporate Allocation Fe 24121243 24121243 Patient Supplies, Drugs 16600309 16600309 Bad Debt Expense 7303821 7303821 UBI Taxes 150000 150000 1733702 1479689 254013 331755878 293821238 37934640 0 11055104 4969826 27796444 17558584 979305 630301 690620 284467 131959220 63514866 66692791 68444354 20836 21385 12366886 12366886 282676 282676 590803 905555 120475465 105464034 30591318 32146191 30591318 32146191 X 89884147 73317843 89884147 73317843 120475465 105464034 X -112134801 -67 95568564 X 0 1 X 1 0 X 7794941 2135020 1609506 2098 2137913 13679478 131960891 157979753 179006090 184611495 214726729 868284958 139755832 160114773 180615596 184613593 216864642 881964436 0 0 0 881964436 592131 521006 519912 700568 896818 3230435 592131 521006 519912 700568 896818 3230435 205386 774809 2907894 314521 442984 4645594 140553349 161410588 184043402 185628682 218204444 889840465 0.99110 0.99110 0.00360 0.01000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 7046 7046 0 Part II-B, Line 1: 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 Healthcare Executives - 0.05% American College of Surgeons - 1.47% American Medical Association - 5.59% American Academy of Family Physicians - 17.32% American Academy of Physicians - 1.01% American Board of Family Medicine - 2.55% American Board of Thoracic Surgery - 0.21% American Society of Clinical Oncology - 0.2% American Society of Radiation Oncology - 3.3% Indiana State Medical Association - 28.01% Medical Group Management Association - 39.92% American Association of Nurse Practitioners - 0.37% 42456771 9625097 2320861 4428203 49974526 38758960 2440358 2682416 1424963 42456771 42986124 3689060 -4645969 3270255 38758960 37554313 3126708 3841751 1536648 42986124 34924914 1692784 2289915 1353300 37554313 0.67190 0.00000 0.32810 0 1 1 5825845 5825845 86330738 33718966 52611772 181412 181412 0 39621225 29614488 10006737 68444354 Invest - BHV 12366886 C 12366886 X Part V, Line 4: Net assets with donor restrictions consist of assets whose use is limited by donor imposed, time and/or purpose restrictions. 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. 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 consolidated 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, 2024 and 2023. X 1 1 0 1 0 0 0 0 0 1 0 Matthew Koscielski MD Employed Physician 2382983 0 15764 0 16701 0 44300 0 28458 0 2488206 0 0 0 Kreg R Gruber CEO 0 1081233 0 557131 0 210350 0 259693 0 28015 0 2136422 0 64523 Neal B Patel Employed Physician 1867229 0 25554 0 840 0 36800 0 34585 0 1965008 0 0 0 Charbel F Maskiny MD Employed Physician 1757017 0 714 0 13089 0 44300 0 33479 0 1848599 0 0 0 Ismail Al Ani MD Employed Physician 1603141 0 751 0 14769 0 44300 0 34479 0 1697440 0 0 0 Kasif A Shaikh Employed Physician 1536518 0 16497 0 840 0 2961 0 34585 0 1591401 0 0 0 Jeffrey P Costello CFO 0 626239 0 261724 0 189649 0 166583 0 22015 0 1266210 0 61622 Dale A Patterson President 489221 0 196497 0 9432 0 135862 0 33848 0 864860 0 0 0 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. Health or social club dues for the following individuals was included in taxable compensation: Anita Knudston, Thomas R. Vidic and Samir Patel 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. 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 individuals received vested payments in 2024, reflected in column (b)(iii): Kreg Gruber, $198,816 Jeffrey Costello, $130,545 The following individuals received deferred payments in 2024 that will vest in future years, which are reflected in column c: Kreg Gruber, $215,393 Jeffrey Costello, $122,283 Dale Patterson, $91,563 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 nonmanagement 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 sustainability. 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 sustainability. 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, Section A, line 2 William Buckley, M.D. and Thomas R. Vidic, M.D. have a business relationship. Form 990, Part VI, Section A, line 6 Beacon Health System, Inc. is the sole corporate member of Beacon Medical Group, Inc. Form 990, 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 bylaws 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. The nomination, election, and removal of members of the Board of Directors 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 information for the form 990 and associated schedules. Some forms and schedules are reviewed by the controller. Subsequent to those steps, the organization engaged RSM to prepare form 990 and appropriate schedules. Prior to filing the return, the CFO, the audit 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. We sent out 372 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 RSM. 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 RSM 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 March 4, 2025 and the signed acknowledgements are kept by the director of internal audit. In 2024, 31 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 15 Beacon Medical Group, Inc.'s parent, Beacon Health System, Inc. has a comprehensive process in place for reviewing and approving compensation of the executive leadership team. This review compares the total compensation provided to each executive to that provided to functionally similar positions in similarly situated organizations. This review is conducted regularly by the board compensation committee in consultation with an independent compensation advisor who is hired by and reports to the board compensation committee. Based on the advice of the compensation advisor and comparable and appropriate market data reported in third-party compensation surveys, and applying the organization's executive compensation philosophy, the board compensation committee makes compensation recommendations regarding the CEO's compensation to the board of directors for approval and the CEO makes compensation recommendation regarding all other members of the executive leadership team to the board compensation committee for approval. Deliberations and final decisions are contemporaneously documented. The annual compensation review was completed by the board compensation committee in March 2025 and the independent compensation advisor provided a statement of reasonableness of the compensation provided to the CEO and executive leadership team members. 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 Intercompany 95,568,564. Beacon Specialty Surgery Center LLC 100 Navarre Place Suite 4405 South Bend IN 46601 205878254 Medical IN 0 0 Beacon Medical Group Inc Memorial Hospital of South Bend Inc 615 N Michigan St South Bend IN 46601 350868132 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Beacon Health Foundation Inc 615 N Michigan St South Bend IN 46601 351536129 Financial Support IN 501(c)(3) Line 7 Beacon Health System Inc 1 Elkhart General Hospital Inc 600 East Boulevard Elkhart IN 46514 350877574 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Beacon Health System Inc 615 N Michigan St South Bend IN 46601 453864076 Parent Organization IN 501(c)(3) Line 12c, III-FI N/A 0 Community Hospital of Bremen Inc 1020 High Road Bremen IN 46506 350835006 Hospital IN 501(c)(3) Line 3 Beacon Health System Inc 1 Three Rivers Health System 701 S Health Parkway Three Rivers MI 49093 451257972 Hospital MI 501(c)(3) Line 3 Beacon Health System Inc 1 South Bend Specialty Surgery Center LLC 335 Florence Ave 1B Granger IN 46530 460571418 Ambulatory Surgery Center IN N/A 0 0 Beacon Health Ventures Inc 615 N Michigan St South Bend IN 46601 351901068 Home Medical IN Beacon Health System Inc C 0 Beacon Health Ventures Michigan Inc 615 N Michigan St South Bend IN 46601 208259773 Home Medical MI Beacon Health System Inc C 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 1 Beacon Health Foundation Inc C 2086249 Actual Charges Memorial Hospital of South Bend Inc K 1856380 Actual Charges Elkhart General Hospital Inc K 1114140 Actual Charges Community Hospital of Bremen Inc K 111788 Actual Charges Memorial Hospital of South Bend Inc P 8424622 Actual Charges Three Rivers Hospital Inc P 159978 Actual Charges Elkhart General Hospital Inc P 1452689 Actual Charges Beacon Health Ventures Inc P 2251288 Actual Charges Memorial Hospital of South Bend Inc Q 34294272 Actual Charges Elkhart General Hospital Inc Q 17131051 Actual Charges Three Rivers Hospital Inc Q 1330762 Actual Charges Beacon Health Ventures Inc Q 552967 Actual Charges Beacon Health Ventures Inc R 1887609 Cash Three Rivers Hospital Inc R 956784 Cash Elkhart General Hospital Inc R 6064234 Cash Memorial Hospital of South Bend Inc R 17709886 Cash Beacon Health Foundation Inc R 56563 Cash Three Rivers Hospital Inc S 214001 Cash Community Hospital of Bremen Inc S 93202 Cash Elkhart General Hospital Inc S 8499988 Cash Memorial Hospital of South Bend Inc S 6319297 Cash Beacon Health Ventures Inc S 182115 Cash Beacon Health Foundation Inc S 57551 Cash