2024-11-11T10:47:49+00:00 2023-12-31 346565596 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE INDIANAPOLIS IN 462045100 990 2023-01-01 351536129 Beacon Health Foundation Inc BEAC 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 2024-11-11 true Jennifer D Rhoderick P00395735 3176817000 2024-11-05 2023 2024-10-15 13:58:12Z KREG GRUBER 615 N MICHIGAN STREET SOUTH BEND IN 46601 6729462 false X BEACONHEALTHSYSTEM.ORG X 1982 IN WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH AND CONNECT WITH HEART. 13 13 0 15 14307 497 3733655 2734078 0 833628 1313608 1 4567283 4047687 3204655 1500758 0 789706 978187 0 799592 629121 756193 4623482 3235138 -56199 812549 38937076 42645248 9988 16575 38927088 42628673 WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH AND CONNECT WITH HEART. false false 1500758 1500758 1 SEE SCHEDULE O 1500758 true true false false false false false false true true true false false false true false true false false true false false false false false false true true true false false false false false false false false true false false false false true true true false false true X 0 0 0 false false false false false true true false false false false false false X 13 13 true false false false true true true true true false false true true true true true true false false false IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Angie Welter Secretary 2.0 0.0 X X 0 225 0 Brad Beutter Director; Vice Chair thru 3/31/23 2.0 0.0 X X 0 225 0 Diane Krill Director; Chair thru 3/31/23 2.0 0.0 X X 0 1220 0 James Sawdon Chair 2.0 0.0 X X 0 225 0 Kurtis A Janowsky Secretary thru 3/31/23 2.0 0.0 X X 0 240 0 Pam Veldman Vice Chair 2.0 0.0 X X 0 225 0 Carl Tiedemann Director thru 3/31/23 2.0 0.0 X 0 0 0 Daniel Cripe Director 2.0 0.0 X 0 900 0 Erik Brenner Director 2.0 0.0 X 0 225 0 Joel Duthie Director 2.0 0.0 X 0 900 0 Joseph M Hart Director 2.0 0.0 X 0 1220 0 LaRissa Chism Buggs MD Director 2.0 0.0 X 0 1220 0 Michael Fenech Director 2.0 0.0 X 0 650 0 Paul Phair Director 2.0 0.0 X 0 225 0 Scott Brewer Director 2.0 0.0 X 0 1220 0 Jeffrey P Costello CFO 2.0 50.0 X 0 744234 118036 Kreg R Gruber CEO 2.0 50.0 X 0 1162712 170134 Susan King President 40.0 2.0 X 0 294237 69708 0 2210104 357877 0 false true false 0 0 0 0 0 0 2734078 299926 2734078 0 0 0 0 0 834739 0 14307 820432 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3160644 2681775 478869 0 478869 0 0 478869 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CASH DISCOUNT 900099 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 4047687 1 14307 1299301 1398038 1398038 102720 102720 0 0 0 0 686847 322818 364029 234611 110267 124344 56729 26663 30066 55549 55549 69887 0 36690 33197 12571 5908 6663 442 442 4802 2257 2545 15089 13456 1633 10026 4712 5314 16843 16843 17048 17048 Corp Allocation 209620 209620 Dues / Sub 109158 51304 57854 GEM Jackets (Other Direct) 104950 104950 Four Winds Invitational Expenses 94558 44442 50116 35650 0 16769 18881 3235138 1500758 934788 799592 0 0 5953866 6929163 105000 2100 0 0 0 0 257989 239408 35424 18581 19349274 21956729 13481366 13726529 0 12146 12146 38937076 42645248 9988 16575 0 0 0 9988 16575 X 29573897 31795716 9353191 10832957 38927088 42628673 38937076 42645248 X 812549 2263274 0 0 0 625762 X false true X true false X 2668870 1970179 3216861 3733655 2734078 14323643 0 0 0 0 2668870 1970179 3216861 3733655 2734078 14323643 2226271 12097372 521359 389598 503669 591415 834739 2840780 16 479 495 0 0 0 0 0 0 17164918 31556 0.7048 0.6877 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 38758960 2440358 2682415 1424963 42456770 42986124 3689060 -4645969 3270255 38758960 37554313 3126708 3841751 1536648 42986124 34924915 1692784 2289914 1353300 37554313 30834712 2588248 3242314 1740359 34924915 0.7449 0.0 0.2551 false false 93974 76546 17428 164015 162862 1153 18581 ALTERNATIVE INVESTMENTS 13726529 F 13726529 0 X Schedule D, Part V, Line 4 Intended uses of endowment funds 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. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote 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, 2023 OR 2022. Central America and the Caribbean 0 0 Investments 9864533 Europe (Including Iceland and Greenland) 0 0 Investments 759729 North America (Canada & Mexico only) 0 0 Investments 1422981 0 0 0 0 0 0 12047243 0 12047243 true false true false false false Schedule F, Part I, Line 3 Method used to account for expenditures on org's financial statements CENTRAL AMERICA AND THE CARIBBEAN-Accrual; EUROPE (INCLUDING ICELAND AND GREENLAND)-Accrual; NORTH AMERICA (CANADA & MEXICO ONLY)-Accrual true Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 501(C)(3) 639106 To support hospital operations and capital purchases Beacon Health System Inc 615 N Michigan Street South Bend IN 46601 453864076 501(C)(3) 402941 To support scholarships and capital purchases Elkhart General Hospital 600 East Boulevard Elkhart IN 46514 350877574 501(C)(3) 112893 To support hospital operations and capital purchases Community Hospital of Bremen 1020 High Road Bremen IN 46506 350835006 501(C)(3) 50000 To support hospital operations and capital purchases 5 0 TOYS, BLANKETS, ETC 4574 102720 fmv Toys, Blankets, Household Good Etc... Schedule I, Part III THE NUMBER OF RECIPIENTS IS BASED ON THE NUMBER OF PATIENTS ADMITTED TO BOTH THE PEDIATRICS AND PEDIATRICS HEMATOLOGY/ONCOLOGY DEPARTMENTS AT MHSB FOR 2023. ALL OUTPATIENTS AND INPATIENTS RECEIVE A WELCOME GIFT. THE WELCOME GIFTS VARY BASED ON WHAT ITEMS ARE AVAILABLE WHEN THE PATIENT ARRIVES. THERE ARE ALSO SPECIAL OCCASIONS (I.E. BIRTHDAYS, CHRISTMAS, ETC.) WHEN A PATIENT MAY RECEIVE AN ADDITIONAL ITEM. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. THE ORGANIZATION HAS NUMEROUS TEMPORARILY RESTRICTED FUNDS FROM WHICH THE DISTRIBUTIONS ARE CONSIDERED GRANTS. IN GENERAL THE GRANTS ARE TO PROVIDE SCHOLARSHIPS AND/OR ARE DISTRIBUTIONS FOR THE PURPOSE OF THE SPECIFIC FUND. ALL DISTRIBUTIONS OF THE FUNDS ARE SUPPORTED BY EVIDENCE THAT THE EXPENDITURE MEETS THE DONOR'S INTENT. 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. ELIGIBILITY REQUIREMENTS 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. false true false false false false false Jeffrey P Costello CFO 0 607351 0 0 0 136883 0 95606 0 22430 0 862270 0 88827 Kreg R Gruber CEO 0 1003311 0 0 0 159401 0 149636 0 20498 0 1332846 0 131845 Susan King President 0 257060 0 0 0 37177 0 45519 0 24188 0 363945 0 21822 Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation BEACON HEALTH FOUNDATION, 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. Schedule J, Part I, Line 4b Supplemental nonqualified retirement 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 2023, REFLECTED IN COLUMN (B)(III): * KREG GRUBER, $113,175 * JEFFREY COSTELLO, $96,631 * SUSAN KING, $ 28,350 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2023 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: * KREG GRUBER, $136,436 * JEFFREY COSTELLO, $82,406 * SUSAN KING, $34,809 X 16567 Cost X 85 6206 Cost X ADVERTISING, GIFT CARDS, COUPONS, TOYS, STUFFED ANIMALS, ELECTRONICS, ETC. 21274 277153 Cost 0 false false false Schedule M, Part I, Line 31 BEACON HEALTH FOUNDATION HAS A WRITTEN POLICY FOR REVIEW OF ALL GIFTS, IT DOES NOT SPEAK SPECIFICALLY TO NON-STANDARD GIFTS, HOWEVER THERE IS A REVIEW PROCESS IN PLACE. Schedule M, Part I Explanations of reporting method for number of contributions Clothing and household goods - NUMBER OF ITEMS RECEIVED Other - ADVERTISING, GIFT CARDS, COUPONS, TOYS, STUFFED ANIMALS, ELECTRONICS, ETC. NUMBER OF ITEMS RECEIVED Securities - Miscellaneous - NUMBER OF SHARES CONTRIBUTED Form 990, Part III, Line 1 PROGRAM SERVICE DESCRIPTION On November 23, 2011, Beacon Health System, Inc. (the "Corporation") was established as the parent corporation of Memorial Hospital of South Bend, Inc. ("MHSB") and Elkhart General Hospital, Inc. ("EGH") to develop a full spectrum of health-related services for North Central Indiana and Southwestern Michigan. Along with its subsidiaries, the Corporation serves the greater community throughout the continuum of care, from health promotion and sickness prevention to diagnosis, inpatient, outpatient, and home health services. The Corporation controls MHSB, EGH, Community Hospital of Bremen, Three Rivers Health, Beacon Medical Group (BMG), Beacon Health Foundation (BHF) (f/k/a Memorial Health Foundation, Inc. (MHF)), and Beacon Health Ventures, Inc. (BHV), collectively referred to as the "System." Beacon Health Foundation, Inc. (BHF) is a tax-exempt, non-private foundation. It was established in 1982 to provide philanthropic support to MHSB and continues to provide this support to the newly created Corporation through contributions and management of endowment funds. Beacon Health Foundation's mission is to support the work of Beacon Health System by inspiring generosity and commitment. BHF exists to allow people to support Beacon in a way that connects them with their impact on our work in the community. Beacon Health Foundation works to support Beacon Health System in three key ways: * Creating relationships * Inspiring investment * Stewarding resources Creating Relationships: Beacon Health Foundation (BHF) raises funds for Beacon Health System, Inc. BHF's job is to ensure that the charitable support of Beacon is used to create the most significant impact possible in a way that is most meaningful to each donor. The Health System relies on our community's support to ensure that we can always provide the highest quality services for every patient. Inspiring Investment: In 2023, fundraising at Beacon Health Foundation Focused on the following areas: - Corporate Fundraising - Grant writing, focusing on private, corporate and family foundations - Online Giving - Major gift fundraising - Direct mail fundraising Funds available at BHF to support Memorial's mission as of December 31, 2023 Education $651,431 Beacon Children's Hospital $1,012,119 Trauma Services $1,273,192 Clinical and Patient Education Program $382,108 Stewarding Resources: In 2023, Funds from Beacon Health Foundation were to support the following areas at Beacon: Distribution Fund Description Amount Cancer Services $ 15,730 Cardiovascular Services $ 10,084 Children's Hospital Capital $ 100,045 Children's Services $ 190,459 Children's Support Services $ 169,256 Community Impact $ 61,747 Continuing Education $ 63,049 Education Endowments Spendable $ 32,002 Elkhart General Hospital Legacy Fund $ 25,152 Emergency/Trauma Services $ 600 Events $ 104,387 Family Medicine Residency $ 8,213 Patient Care Programs $ 8,446 Physician Philanthropy Council $ 98,330 Scholarships $ 57,877 Support Services $ 74,277 System Priorities $ 402,440 Women's Services $ 2,869 TOTAL $ $1,424,963 Form 990, Part V, Line 1a FORM 990, PART VI, LINE 6 - CLASSES OF MEMBERS OR STOCKHOLDERS EMPLOYEES ARE PAID BY BEACON HEALTH SYSTEM, INC. (EIN 45-3864076) AND EXPENSED TO BEACON HEALTH FOUNDATION THROUGH CONTRACT LABOR. BEACON HEALTH SYSTEM, INC. ISSUES ALL W-2S AND 1099S. Form 990, Part VI, Line 15 PART VI, SECTION B, LINE 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF BEACON HEALTH FOUNDATION 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 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, Line 2 Family/business relationships amongst interested persons Michael Fenech and James Sawdon - Business relationship Form 990, Part VI, Line 6 Classes of members or stockholders BEACON HEALTH SYSTEM, INC. IS THE SOLE CORPORATE MEMBER OF BEACON HEALTH FOUNDATION, INC Form 990, Part VI, Line 7a Members or stockholders electing members of governing body THE CORPORATE MEMBER SHALL APPOINT THE BOARD OF DIRECTORS OF THE CORPORATION AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF THE CORPORATION. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders DECISIONS OF THE BOARD OF DIRECTORS MUST BE APPROVED BY THE CORPORATE MEMBER. THE FOLLOWING MATTERS ARE SPECIFICALLY RESERVED TO REQUIRE THE APPROVAL OF THE CORPORATE MEMBER: - MAKE AND APPROVE CHANGES TO THE GOVERNING DOCUMENTS OF THE CORPORATION. - APPOINT, UPON THE RECOMMENDATION OF THE NOMINATING AND GOVERNANCE COMMITTEE OF THE CORPORATE MEMBER, OR REMOVE, WITH OR WITHOUT CAUSE, THE MEMBERS OF THE GOVERNING BOARD OF THE CORPORATION. REMOVAL DOES NOT REQUIRE A RECOMMENDATION OF THE CORPORATION ORGANIZATION'S GOVERNING BOARD. - APPROVE THE INCURRENCE OF DEBT OF THE CORPORATION IN ACCORDANCE WITH SYSTEM POLICIES. - APPROVE THE SALE, TRANSFER OR SUBSTANTIAL CHANGE IN USE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE CORPORATION AND DIVESTITURE, DISSOLUTION, CLOSURE, MERGER, CONSOLIDATION, CHANGE IN CORPORATE MEMBERSHIP OR OWNERSHIP, OR CORPORATE REORGANIZATION OF THE CORPORATION, BUT AS TO EITHER HOSPITAL ONLY IF SUCH ACTION HAS BEEN APPROVED BY SUPERMAJORITY VOTE OF THE BOARD OF DIRECTORS OF THE CORPORATE MEMBER. - APPROVE THE FORMATION OF A SUBSIDIARY ORGANIZATION, AND THE SALE, TRANSFER OR SUBSTANTIAL CHANGE IN USE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF A SUBSIDIARY ORGANIZATION OF THE CORPORATE MEMBER, OR THE DIVESTITURE, DISSOLUTION, CLOSURE, MERGER, CONSOLIDATION OR CHANGE IN CORPORATE MEMBERSHIP OR OWNERSHIP OF A SUBSIDIARY ORGANIZATION. - APPROVE THE MATERIAL TRANSFER OR ENCUMBRANCE OF THE ASSETS OF THE CORPORATION IN ACCORDANCE WITH SYSTEM POLICIES, PROVIDED THAT THE TRANSFER OF ASSETS EXCEPT IN CONNECTION WITH SYSTEM BORROWING WILL REQUIRE APPROVAL BY SUPER MAJORITY VOTE OF THE BOARD OF DIRECTORS OF THE CORPORATE MEMBER. - APPROVE THE ANNUAL OPERATING BUDGET, CAPITAL PLAN, STRATEGIC PLAN, AND BUSINESS PLAN FOR THE CORPORATION. - APPROVE THE MISSION AND VISION STATEMENTS FOR THE CORPORATION. - WITH INPUT FROM THE CHIEF EXECUTIVE OFFICER OF THE CORPORATE MEMBER, APPROVE ANY MATERIAL TRANSACTIONS OF THE CORPORATION WHICH ARE NOT OTHERWISE INCLUDED IN THE CORPORATE MEMBER APPROVED OPERATING OR CAPITAL BUDGETS OF THE CORPORATION OR AS OTHERWISE AUTHORIZED IN THE BYLAWS OR OPERATING AGREEMENT OF THE CORPORATION. - RESOLVE ANY ISSUES BETWEEN CORPORATION AS TO PARTICIPATION, OR FAILURE TO PARTICIPATE IN, SPECIFIC MANAGED CARE AGREEMENTS AND THE TERMS THERE OF. - APPROVE ANY MANAGEMENT AGREEMENT FOR THE MANAGEMENT OF ALL OR ANY SUBSTANTIAL PART OF THE CORPORATION'S OPERATIONS. Form 990, Part VI, Line 11b Review of form 990 by governing body 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, Line 12c Conflict of interest policy 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 375 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 4, 2024 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2023, 26 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, Line 19 Required documents available to the public 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 Other changes in net assets or fund balances CHANGE IN GRUBE TRUST - 174033; CHANGE IN TEMP REST INVESTMENTS - 290338; TRANSFER FROM BHS - 161388; ROUNDING - 3; BEACON MEDICAL GROUP INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351536132 PHY PRACTICES IN 501(c)(3) 10 BHS true MEMORIAL HOSPITAL OF SOUTH BEND INC 615 N MICHIGAN ST SOUTH BEND IN 46601 350868132 HOSPITAL IN 501(c)(3) 3 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) Type III-FI NA false MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(c)(3) Type III-O MHSB true COMMUNITY HOSPITAL OF BREMEN INC 1020 HIGH ROAD BREMEN IN 46506 350835006 HOSPITAL IN 501(c)(3) 3 BHS true THREE RIVERS HEALTH SYSTEM 701 S HEALTH PARKWAY THREE RIVERS MI 49093 451257972 HOSPITAL MI 501(c)(3) 3 BHS true BEACON HEALTH VENTURES INC 615 N MICHIGAN ST SOUTH BEND IN 46601 351901068 HOME MEDICAL IN NA C Corporation BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHIGAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI NA C Corporation false true false false false false false false false false false false false false false true true true true Memorial Hospital of South Bend Q 63588 ACTUAL CHARGES Memorial Hospital of South Bend R 68205 CASH Memorial Hospital of South Bend B 639106 ACTUAL CHARGES ELKHART GENERAL HOSPITAL B 112893 ACTUAL CHARGES Community Hospital of Bremen B 50000 ACTUAL CHARGES