2024-05-15T10:43:24-05:00 2023-06-30 990 2022-07-01 263557623 Wellmont Cardiology Services WELL 4233023467 311 Princeton Road Suite 1 Johnson City TN 376012080 Matthew Lazari CFO-BHMA 4233026583 2024-05-15 Matthew Lazari 999009999 1 Non-Paid Preparer P03077501 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Matthew Lazari 303 Med Tech Prkwy Johnson City TN 37604 74431003 0 X balladhealth.org X 2010 TN Honor those we serve by delivering the best possible care. 12 0 406 0 0 0 50 2210 61959616 74331948 2146 6396 469230 90449 62431042 74431003 0 0 0 0 51344857 59984147 0 0 0 10562251 15442150 61907108 75426297 523934 -995294 5691536 10322339 11951369 14232461 -6259833 -3910122 X Honor those we serve by delivering the best possible care.Ballad Health is dedicated to improving the health of the 29-county Appalachian Highlands region. 0 0 71176759 0 72715590 Cardiovascular Associates was established in 1978 to provide comprehensive cardiovascular services to the Northeast Tennessee/Southwest Virginia region. In May 2010, Wellmont Cardiology Services (WCS) acquired substantially all of the assets of Cardiovascular Associates to become the region's largest provider of comprehensive cardiovascular services.This physician group provides top-quality cardiovascular services to Northeast Tennessee, Southwest Virginia, Southeast Kentucky and Northwest North Carolina, as well as areas of West Virginia.WCS strives to improve the cardiovascular health of the region and deliver high-quality, cost-effective heart and vascular care with compassion.WCS consists of 55 certified cardiologists and cardiovascular and thoracic surgeons who work in thirteen community offices and the seven member hospitals of Wellmont Health System. WCS diagnoses, treats and manages all aspects of adult cardiovascular disease. Services provided include general cardiology, preventive cardiology, electrophysiology, interventional cardiology, vascular medicine, structural heart disease, heart failure management, cardiovascular and thoracic surgery and advanced cardiovascular imaging. WCS also serves as a leader in clinical research and teaching institution through the Cardiovascular University.For fiscal year 2023, WCS had 160,666 outpatient encounters and performed 4,370 surgical procedures.WCS is dedicated to improving the community's access to quality, affordable healthcare, educating the region's caregivers, improving the health status of its communities, and contributing to the quality of life in the areas it serves.CHARITY AND OTHER UNREIMBURSED COSTS:CHARITY CARE: While reimbursement for healthcare services rendered is critical to the operation and sustainability of the organization, Wellmont Cardiology Services recognizes its obligation to provide care to individuals who cannot afford essential medical services, including emergency care. WCS accepts all patients regardless of their ability to pay. A patient is classified as a charity patient when they meet the established policies of WCS and guidelines outlined by the federal government. However, financial assistance decisions are not solely based on income. Unique financial circumstances are weighed with verified patient assets which can determine financial assistance eligibility. It is not until after verification of income and assets that a decision regarding the amount of financial assistance can be made. In fiscal year 2023, WCS incurred a loss of $692,451 attributable to the provision of charity care.TENNCARE/MEDICAID/MEDICARE/CHAMPUS: WCS provides care to persons covered by governmental programs, such as TennCare (Tennessee residents), Medicaid, Medicare and Champus. WCS incurred a loss of $10,908,321 providing care to this population of patients during the year.It is WCS's obligation to support causes that improve the quality of life in the region. WCS sponsored or participated in educational, community-based programs on healthy lifestyles, risk factor identification, diagnostic and treatment options, including continuing education programs for physicians, nurses and allied health professionals. Such initiatives included:-Annual Cardiovascular Summit-Presentations to medical societiesWCS received the highest 2019 Performance Achievement Award from the American College of Cardiology, the nation's largest and most authoritative quality improvement registry with 1.5 million patient records. WCS's platinum level award recognizes its quality performance score of 100% for NSTEMI (a type of heart attack) and STEMI (a very serious type of heart attack in which one of the heart's major arteries is blocked). 71176759 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 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 0 1 0 0 0 1 X 0 0 1 406 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X Shane Hilton 4233023467 303 Med Tech Parkway Suite 300 Johnson City TN 37604 Stanley Gall Jr MD Vice President 40.00 0.00 X X 671161 0 43579 Matthew Luff MD end 1122 Sec/Treasurer 40.00 0.00 X X 636690 0 40438 Eric Deaton BH EVP/COO 0.10 64.90 X X 0 1268808 106688 Marvin Eichorn BH EVP/CAO 0.10 64.90 X X 0 3107147 45520 Mark Chang MD President 40.00 0.00 X X 716483 0 49122 Thomas Helton MD Physician 40.00 0.00 X 218230 0 0 Keith Kramer MD Physician 40.00 0.00 X 667753 0 45917 Sherryl Croitor MD Physician 40.00 0.00 X 678390 0 20431 Jack Whitaker MDstart 123 Physician 40.00 0.00 X 764177 0 37924 Clay Runnels MD BH EVP & Chief Phys Exec. 0.10 64.90 X 0 1095491 98857 Tony Keck BH EVP/Sys Innov & CPMO 0.10 64.90 X X 0 837512 91471 Eduardo Fernandez MDend 1222 Physician 40.00 0.00 X 668861 0 43651 Marc Counts MD end 1222 Physician 40.00 0.00 X 581013 0 43379 Benjamin Culp MDstart 1122 Sec/Treasurer 40.00 0.00 X X 669515 0 44228 Jonathan Burress MDstart 123 Physician 40.00 0.00 X 680858 0 44384 Chase Wilson end 423 BHMA VP, COO/CFO 4.50 40.50 X 0 296185 40312 Mark Patterson MD BHMA SVP/President 54.50 0.50 X 661164 0 89742 Matthew Lazari start 722 CFO-BHMA 40.00 0.00 X 0 142000 25409 David Metzger MD Physician 40.00 0.00 X 979534 0 38064 Julius Gasso MD Physician 40.00 0.00 X 698806 0 21291 David Beckner MD Physician 40.00 0.00 X 317313 0 31084 Heesuk Yoon MD Physician 40.00 0.00 X 694151 0 42117 Luke Erdoes MD Physician 40.00 0.00 X 689988 0 13208 Leanne Cox end 102020 Former Officer VP/CFO 0.00 40.00 X 0 106022 33250 Lori Jackson Former Key Emp AVP/Svc Lin 0.00 40.00 X 0 162009 14925 10994087 7015174 1104991 103 1 1 0 0 2110 100 2210 Hospital Support 900099 34777131 34777131 Net Patient Revenue 621990 34345606 34345606 Clinical Services 621990 3469522 3469522 Research Revenue 541700 1617648 1617648 Medical Education Training 900099 61705 61705 60336 60336 74331948 5106 5106 4386 0 4386 4386 4386 1290 0 1290 1290 1290 Medical Director Fees 900099 49875 49875 Medical Records 900099 9079 9079 Vending Commission 900099 2608 2608 24501 24501 86063 74431003 72715590 0 1713203 2598723 2598723 50435747 49255183 1180564 1507301 1471956 35345 3347964 3331543 16421 2094412 2028192 66220 6028 6028 1956501 1948501 8000 98097 92597 5500 362005 185536 176469 2512603 2509098 3505 436554 434692 1862 1450258 1441396 8862 -3984 -3984 Support Services 6533578 6533578 Maintenance 1304930 1276449 28481 Medical Supplies 428430 428426 4 357150 243596 113554 75426297 71176759 4249538 0 1596 2456 1954902 2029056 96106 156606 398871 2187169 6924778 5451174 2670756 1473604 423677 423677 145628 4049771 5691536 10322339 11423210 12013782 528159 2218679 11951369 14232461 X -6259833 -3910122 -6259833 -3910122 5691536 10322339 X -995294 3345005 X 0 1 X 1 1 1 X 32508 5425 50 2210 40193 51523140 48275613 54585889 60941219 72715590 288041451 32615 20405 17161 462591 86062 618834 51588263 48296018 54608475 61403860 72803862 288700478 0 0 0 288700478 3796 6536 6357 8785 9493 34967 3796 6536 6357 8785 9493 34967 629714 761264 893809 1018397 1617648 4920832 52221773 49063818 55508641 62431042 74431003 293656277 0.98310 0.98360 0.00010 0.00010 X 130171 36149 94022 2994274 2060361 933913 3800333 3354664 445669 1473604 A/R-HPI Stock 16500 A/R-Miscellaneous 142577 Due From Affiliates 3890694 4049771 Operating Lease Obligation ST 564098 Operating Lease Obligation LT 1654012 Due to 3rd Parties - Stimulus 569 2218679 X Part X, Line 2: Wellmont Cardiology Services is included in the audited consolidated financial statements of Ballad Health. The footnote explanation relative to income taxes reads: "Ballad is classified as an organization exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. As such, no provision for federal income taxes is included in the accompanying consolidated financial statements. Taxable subsidiaries are discussed in Note K. No significant uncertain tax positions exist at June 30, 2023 and 2022. Tax returns for 2020 through 2022 are subject to examination by the Internal Revenue Service." 0 1 0 0 0 0 0 0 0 Marvin Eichorn BH EVP/CAO 0 752788 0 598921 0 1755438 0 17400 0 28120 0 3152667 0 0 Eric Deaton BH EVP/COO 0 720293 0 530155 0 18360 0 84013 0 22675 0 1375496 0 0 Clay Runnels MD BH EVP & Chief Phys Exec. 0 626281 0 450791 0 18419 0 72852 0 26005 0 1194348 0 0 David Metzger MD Physician 574714 0 102270 0 302550 0 17400 0 20664 0 1017598 0 0 0 Tony Keck BH EVP/Sys Innov & CPMO 0 477287 0 347573 0 12652 0 63501 0 27970 0 928983 0 0 Jack Whitaker MDstart 123 Physician 649917 0 100876 0 13384 0 17686 0 20238 0 802101 0 0 0 Mark Chang MD President 612775 0 102270 0 1438 0 24492 0 24630 0 765605 0 0 0 Mark Patterson MD BHMA SVP/President 500802 0 152838 0 7524 0 61791 0 27951 0 750906 0 0 0 Heesuk Yoon MD Physician 589288 0 102270 0 2593 0 17900 0 24217 0 736268 0 0 0 Jonathan Burress MDstart 123 Physician 567762 0 102182 0 10914 0 20234 0 24150 0 725242 0 0 0 Julius Gasso MD Physician 595750 0 100770 0 2286 0 9063 0 12228 0 720097 0 0 0 Stanley Gall Jr MD Vice President 567703 0 102270 0 1188 0 18877 0 24702 0 714740 0 0 0 Benjamin Culp MDstart 1122 Sec/Treasurer 566057 0 102270 0 1188 0 17880 0 26348 0 713743 0 0 0 Keith Kramer MD Physician 565579 0 100900 0 1274 0 19091 0 26826 0 713670 0 0 0 Eduardo Fernandez MDend 1222 Physician 566154 0 100770 0 1937 0 17400 0 26251 0 712512 0 0 0 Luke Erdoes MD Physician 586530 0 102270 0 1188 0 4540 0 8668 0 703196 0 0 0 Sherryl Croitor MD Physician 575845 0 101631 0 914 0 17654 0 2777 0 698821 0 0 0 Matthew Luff MD end 1122 Sec/Treasurer 534890 0 101075 0 725 0 17395 0 23043 0 677128 0 0 0 Marc Counts MD end 1222 Physician 567375 0 11352 0 2286 0 18349 0 25030 0 624392 0 0 0 David Beckner MD Physician 316146 0 750 0 417 0 17960 0 13124 0 348397 0 0 0 Chase Wilson end 423 BHMA VP, COO/CFO 0 229756 0 66225 0 204 0 14416 0 25896 0 336497 0 0 Thomas Helton MD Physician 187299 0 30931 0 0 0 0 0 0 0 218230 0 0 0 Lori Jackson Former Key Emp AVP/Svc Lin 0 140594 0 1250 0 20165 0 9718 0 5207 0 176934 0 0 Matthew Lazari start 722 CFO-BHMA 0 140502 0 1250 0 248 0 5020 0 20389 0 167409 0 0 Leanne Cox end 102020 Former Officer VP/CFO 0 103846 0 1250 0 926 0 6906 0 26344 0 139272 0 0 Part I, Line 4b The following executives listed in Schedule J, Part II participated in a 457(f) retirement plan provided by Ballad Health (BH). The 457(f) plan is a nonqualified tax-deferred compensation plan available to a select group of key executives for the intent of supporting retention and to offer a competitive total retirement program. Account balances have a "substantial risk of forfeiture". In addition to creditor risk, substantial risk of forfeiture is created through default risk if the participant's employment with BH is terminated prior to age 65. However, the 457(f) plan contains a non-compete provision that provides the account balance to be paid in a lump sum after the executive satisfies the two-year non-compete period. This provision applies to employer contributions if the executive has provided eligible service for six or more years. The executive will receive the entire account balance if he/she becomes disabled, dies or if the executive terminates for "good reason or is involuntarily terminated without "good cause" within a 24-month period after a change-of-control occurs. Distributions from this plan are subject to federal, state, and local taxes on the entire account balance upon distribution. Eric Deaton $66,613 Tony Keck $45,581 Mark Patterson $43,898 Clay Runnels $55,452 Form 990, Part V, line 1a For CY22 Ballad Health (BH), WCS's parent organization, filed Form 1096 on a consolidated basis for all subsidiaries that were required to file Forms 1099-MISC/NEC. WCS reimburses BH for all expenses related to vendor payments and the expenses are recorded on WCS's books. Form 990, Part VI, Section A, line 6 The business and affairs of Wellmont Cardiology Services (WCS) are governed exclusively by the Board of Directors. WCS's Board of Directors is designated by Wellmont Health System, the sole member of WCS. In addition to such rights of approval and consent as may be reserved to the sole member of WCS pursuant to applicable law, transactions of the following matters by WCS require the prior approval of Wellmont Health System: (A) Implementation of Corporation's annual budget, (B) Incurring any loan or other indebtedness for borrowed money, (C) Acquisition of any equipment or personal property for a purchase price in excess of $50,000 or the acquisition of any real estate, regardless of purchase price, (D) The undertaking of certain contractual commitments, (E) Entering into any plan of merger or consolidation, (F) Acquisition of substantially all of the assets of any other legal entity, and (G) Institution of any litigation by or on behalf of WCS. Form 990, Part VI, Section A, line 7a Wellmont Health System (WHS) is WCS's sole member. The board of directors of Ballad Health, WHS's parent organization, serves as WHS's board of directors and is responsible for appointing the directors of WCS's board. Form 990, Part VI, Section A, line 7b Certain decisions of the board are, pursuant to charter, subject to approval of the members. No ordinary, day-to-day decisions are subject to member approval. Form 990, Part VI, Section B, line 11b The Ballad Health Tax Department prepares and reviews the Form 990. During preparation other functional areas within the organization provide information and support to complete an accurate return. The return is reviewed by the organization's VP/COO and is provided in electronic form to all members of the Board of Directors prior to being filed with the IRS. Form 990, Part VI, Section B, line 12c Ballad Health has a conflict of interest policy for all members of the Board of Directors, the Executive Chair/President, Executive Vice Presidents, Senior Vice Presidents, and Vice Presidents, and applies to all Ballad Health organizations. All persons covered by this policy are required to complete a conflict of interest disclosure form on an annual basis. Should a conflict arise, it is the responsibility of the conflicted individual to update his or her disclosure immediately. All meetings of the board or board committees have a standing agenda item first on the agenda titled "Conflicts of Interest". If a member of the board or board committee has a conflict of interest involving any issue on the board agenda, he or she must declare the conflict of interest during the period allotted for disclosure. If any issue arises during a meeting in which the board member has a conflict of interest, he or she must immediately declare the conflict. While each member of the board or board committee is responsible for disclosing conflicts of interest, it is also the responsibility of any board member aware of a conflict which has not been disclosed to ensure the board is made aware. The presiding officer of a board or board committee meeting may ask a conflicted member to excuse themselves from the meeting during the discussion related to the issue with which the conflict of interest applies. Under no circumstances shall a member vote on a matter that gives rise to a potential conflict. Form 990, Part VI, Section B, line 15 Line 15a - Compensation Process for Top Official During FY23, Dr. Mark Chang served as the President of WCS and received no compensation for his board services to WCS. His compensation is derived from medical services provided to WCS. His compensation, consistent with all WCS physicians, is evaluated annually by the board utilizing an independent third-party physician compensation database. Line 15b - Compensation Process for Officers On an annual basis, Ballad Health's Human Resources (H/R) Department evaluates compensation for all executives at a position level of Assistant Vice President and above. H/R's evaluation is based on market data obtained from independent third-party consultants for positions with similar responsibilities at similarly situated organizations. Based on this comparable data, Ballad Health's CEO evaluates the data and, if appropriate, makes necessary adjustments. Any adjustments to Senior Vice Presidents or above are reviewed by the Board of Directors Executive Compensation Committee. In addition, Ballad Health offers an incentive plan to executives based on targeted achievement metrics categorized by; Quality, Service and Safety; Access to Care; Financial Stewardship, and any other metrics approved from time to time by the Board of Directors. Form 990, Part VI, Section C, line 19 Governing documents and conflict of interest policy are made available upon request to the appropriate parties requesting them. Financial statements are made available upon request to appropriate parties requesting them, and they are made available to those parties who own indebtedness of the company on a quarterly basis. Form 990, Part XI, line 9: Intercompany Transfers 3,345,005. 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