2024-11-11T09:01:31+00:00 2023-12-31 346565596 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE INDIANAPOLIS IN 462045100 990 2023-01-01 351536132 Beacon Medical Group Inc BEAC 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 JEFFREY COSTELLO CFO 5746473549 2024-11-11 true Jennifer D Rhoderick P00395735 3176817000 2024-11-11 2023 2024-10-15 13:58:12Z KREG GRUBER 615 N MICHIGAN STREET SOUTH BEND IN 46601 188257261 false X BEACONHEALTHSYSTEM.ORG X 1981 IN WE DELIVER OUSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART. 8 8 1941 0 2853150 314521 1609506 2098 184627121 187463966 129394 -21357 24432 138251 186390453 187582958 23486 0 224420107 248103401 0 0 79775100 79245781 304195207 327372668 -117804754 -139789710 117701782 120475465 30683225 30591318 87018557 89884147 WE DELIVER OUTSTANDING CARE, INSPIRE HEALTH, AND CONNECT WITH HEART false false 292296149 23486 187292590 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. 105063 172055 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. 292401212 true false false true false false false false true true false true false false true false true false false false false false false false false false false true true false false false false false false false false false false false false true true true true false false true 115 0 true 1941 true true true false false false false false false false false false false false X 8 8 true false false false true true true true true false false true true true true true true false false true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Anita Knudston Secretary 2.0 0 X X 1220 0 0 James Dan MD Vice Chair thru 3/31/23 2.0 2.0 X X 0 5975 0 William Houston MD Chair 2.0 0 X X 225 0 0 David A Campbell MD Director 2.0 0 X 225 0 0 Kevin M Casey DO Director 2.0 0 X 225 0 0 Robert Bartels Jr Director 2.0 0 X 225 0 0 Samir Patel MD Director 2.0 2.0 X 0 1220 0 Thomas R Vidic MD Director 2.0 0 X 1220 0 0 William Buckley MD Director 2.0 0 X 225 0 0 Dale A Patterson President 40.0 0 X 456471 0 95673 Jeffrey P Costello CFO 2.0 50.0 X 0 744234 118036 Kreg R Gruber CEO 2.0 50.0 X 0 1162712 170134 Vincent C Henderson MD President thru 5/1/23 0.0 0 X 228313 0 15065 Charbel F Maskiny MD Employed Physician 40.0 0 X 1682846 0 24491 Ismail Al Ani MD Employed Physician 40.0 0 X 1595147 0 25950 John Gilbert Employed Physician 40.0 0 X 1463612 0 37538 Matthew Koscielski MD Employed Physician 40.0 0 X 2052799 0 35575 Neal B Patel Employed Physician 40.0 0 X 1497825 0 37187 8980579 1914141 559648 427 false true false MEDICUS ANESTHESIA SERVICES LLC 22 ROULSTON RD WINDHAM NH 03087 TEMPORARY STAFFING 9336519 ELKHART CLINIC LLC PO BOX 2968 ELKHART IN 46515 MEDICAL BILLING 4560318 OBSTETRIX MEDICAL GROUP OF INDIANA PC PO BOX 281034 ATLANTA GA 303841034 PHYSICIAN SERVICES 3580000 WOODCOX BUILDING CONTRACTORS 51175 prescott ave SOUTH BEND IN 46637 CONSTRUCTION SERVICES 2306085 HAYES LOCUMS LLC 6700 N ANDREWS AVE FT LAUDERDALE FL 33309 TEMPORARY STAFFING 1912158 35 0 0 0 2098 0 0 0 2098 Net Patient Revenue 621111 180607796 180607796 0 0 Clinical Trial Revenue 621511 172054 172054 0 0 Management Admin Services 561499 1908392 752105 1156287 0 Medical Directorship 621111 2049837 2049837 0 0 Med Svcs to Affiliates 621111 1237298 1237298 0 0 1488589 -208274 1696863 0 187463966 130209 0 0 130209 0 0 0 0 0 0 0 0 570360 0 432788 0 137572 0 137572 137572 0 89949 0 241515 0 -151566 -151566 -151566 0 0 0 0 0 0 0 Medical Records 621111 679 679 0 0 0 0 0 0 679 187582958 184611495 2853150 116215 0 0 23486 23486 0 0 0 0 797961 0 797961 0 0 0 0 0 213099738 205073774 8025964 0 4990982 4802822 188160 0 19464223 18729536 734687 0 9750497 8889540 860957 0 0 0 0 0 0 0 0 0 54480 0 54480 0 4924 4924 0 0 0 0 0 0 0 0 13608309 12833224 775085 0 28068 28068 0 0 1236244 1055931 180313 0 14847 11010 3837 0 0 0 0 0 4097185 3202643 894542 0 113867 85646 28221 0 0 0 0 0 928430 925624 2806 0 0 0 0 0 0 0 0 0 5536752 5115356 421396 0 3585234 3021910 563324 0 Medical Supplies 22841525 22841525 0 0 Management Fees 21319873 0 21319873 0 Bad Debt Expense 4114877 4114877 0 0 Physician Recruitment 1105558 1105558 0 0 655608 535758 119850 0 327372668 292401212 34971456 0 592 0 3967083 11055104 0 0 31077973 27796444 0 0 0 0 1260932 979305 0 0 925173 690620 124858666 58165875 65376378 66692791 20347 20836 0 12649960 12366886 282676 282676 2140668 590803 117701782 120475465 30640416 30591318 0 0 0 0 0 0 0 0 0 0 0 0 0 0 42809 0 30683225 30591318 X 87018557 89884147 0 0 0 0 0 0 0 0 87018557 89884147 117701782 120475465 X -139789710 393 0 142654907 X false true X true false X 1993638 7794941 2135020 1609506 2098 13535203 135416365 131960891 157979753 179006090 184438762 788801861 0 0 0 137410003 139755832 160114773 180615596 184440860 802337064 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 802337064 479737 592131 521006 519912 700568 2813354 36840 205386 774809 2907894 314521 4239450 516577 797517 1295815 3427806 1015089 7052804 0 150134 0 0 0 0 150134 138076714 140553349 161410588 184043402 185455949 809540002 0.9911 0.9910 0.01 0.0085 X Schedule A, Part III, Line 12 Other Income DESCRIPTION - VENDOR REBATES, COLUMN A - 150134.0, COLUMN B - , COLUMN C - , COLUMN D - , COLUMN E - , COLUMN F - 150134.0; false false false false false false false false true 4924 4924 false Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY 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 AMERICAN COLLEGE OF SURGEONS AMERICAN MEDICAL ASSOCIATION AMERICAN SOCIETY OF RADIATION ONCOLOGY AMERICAN BOARD OF THORACIC SURGEONS AMERICAN MEDICAL SOCIETY URGENT CARE ASSOCIATION AMERICAN COLLEGE OF SPORTS MEDICINE AMERICAN BOARD OF FAMILY PHYSICIANS AMERICAN ACADEMY OF FAMILY PHYSICIANS NEUROSURGERY EXECUTIVES RESOURCE VALUE AND EDUCATION SOCIETY SOCIETY FOR MATERNAL-FETAL MEDICINE AMERICAN ACADEMY OF OTOLARINGIC ALLERGY AMERICAN SOCIETY FOR SPORTS MEDICINE AMERICAN ACADEMY FOR ORTHOPEDIC SURGEONS ONCOLOLOGY NURSING SOCIETY AMERICAN ASSOCIATION OF NURSE PRACTIONERS NORTH AMERICAN NEUROMODULATION SOCIETY INDIANA STATE MEDICAL ASSOCIATION EASTERN ASSOCIATION FOR THE SURGERY OF TRAUMA INTERNATIONAL SOCIETY ON THROMBOSIS AND HEMOSTASIS AMERICAN ASSOCIATION FOR THE SURGERY OF TRAUMA 38758960 2440359 2682415 1424963 42456771 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 true true 5795572 5795572 81537123 30480113 51057010 181412 181412 0 37344559 27504350 9840209 0 0 0 66692791 Invest - BHV 12271886 C Invest - Stratum Medical 95000 C Invest - LMGSC C 12366886 CAPITAL LEASES 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. 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 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 SET FORTH NEW DISCLOSURES REGARDING UNRECOGNIZED TAX BENEFITS. NO AMOUNT WAS RECORDED FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. true Scholarship/Tuition Reimbursement 1 23486 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. 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 MEDICAL GROUP, 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 true true false true false false false false false true 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 Dale A Patterson President 447328 0 0 0 9144 0 70699 0 24974 0 552144 0 0 0 Vincent C Henderson MD President thru 5/1/23 144011 0 1000 0 83302 0 6020 0 9045 0 243378 0 74914 0 Ismail Al Ani MD Employed Physician 1579730 0 0 0 15417 0 0 0 25950 0 1621097 0 0 0 John Gilbert Employed Physician 1462352 0 0 0 1260 0 13200 0 24338 0 1501150 0 0 0 Matthew Koscielski MD Employed Physician 2035450 0 0 0 17349 0 13200 0 22375 0 2088374 0 0 0 Charbel F Maskiny MD Employed Physician 1669109 0 0 0 13737 0 0 0 24491 0 1707337 0 0 0 Neal B Patel Employed Physician 1478708 0 18277 0 840 0 13200 0 23987 0 1535012 0 0 0 Schedule J, Part I, Line 1a Health or social club dues or initiation fees BEACON MEDICAL GROUP, INC. OFFERS COMPLIMENTARY HEALTH CLUB MEMBERSHIP TO BEACON HEALTH SYSTEM'S HEALTH AND LIFESTYLE CENTER, A RELATED PARTY. BEACON MEDICAL GROUP, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR SPOUSAL TRAVEL. BEACON MEDICAL GROUP, INC. 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: NONE HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ANITA KNUDSTON, THOMAS R. VIDIC AND SAMIR PATEL TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: NONE Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation 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. 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 * VINCENT HENDERSON, $75,168 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 * DALE PATTERSON, $57,499 Schedule J, Part I, Line 7 Non-fixed payments 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-MANAGEMENT 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. 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, Line 15a PROCESS FOR DETERMINING EXECUTIVE COMPENSTION BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF BEACON MEDICAL GROUP, INC., 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 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. VICE PRESIDENT AND HIGHER COMPENSATION IS PAID BY BEACON HEALTH SYSTEM, INC. EXCEPT AS NOTED BELOW. COMPENSATION OF THE EXECUTIVE DIRECTOR AND KEY EMPLOYEES IS PAID BY BEACON MEDICAL GROUP, INC. THE WAGES FOR BEACON MEDICAL GROUP PRESIDENT, DALE A. PATTERSON AND VINCENT HENDERSON, WERE PAID BY BEACON MEDICAL GROUP, INC. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons William Buckley, MD and Thomas Vidic, MD - Business relationship Form 990, Part VI, Line 6 Classes of members or stockholders BEACON HEALTH SYSTEM, INC. IS THE SOLE CORPORATE MEMBER OF BEACON MEDICAL GROUP, 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 BEACON MEDICAL GROUP, INC., AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF BEACON MEDICAL GROUP, INC. 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 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, 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 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, 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. 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 VIII, Line 2f Other Program Service Revenue Affiliate Rent - Total Revenue: 1488589, Related or Exempt Function Revenue: -208274, Unrelated Business Revenue: 1696863, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Write Off InterCompany w/ Beacon Health System - XXX-XX-XXXX; Rounding - -7; Book Tax Difference on JV Revenue - 270546; BEACON SPECIALTY SURGERY CENTER LLC 100 NAVARRE PLACE SUITE 4405 SOUTH BEND IN 46601 205878254 MEDICAL IN 0 0 BMG 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 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 I 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 RD 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 BHS C Corporation false BEACON HEALTH VENTURES MICHIGAN INC 615 N MICHGIAN ST SOUTH BEND IN 46601 208259773 HOME MEDICAL MI BHS C Corporation false false false true false false false false false false true true false false false false true true true true Memorial Hospital of South Bend P 4627307 Actual Charges Memorial Hospital of South Bend Q 8829582 Actual Charges Memorial Hospital of South Bend K 1899234 Actual Charges Memorial Hospital of South Bend S 208038 Cash Memorial Hospital of South Bend R 2526328 Cash Elkhart General Hospital K 1085418 Actual Charges Elkhart General Hospital Q 3629290 Actual Charges Elkhart General Hospital P 1114447 Actual Charges Elkhart General Hospital S 365384 Cash Elkhart General Hospital R 1064041 Cash Community Hospital of Bremen K 103967 Actual Charges Community Hospital of Bremen S 1924351 Cash Beacon Health Ventures P 1285631 Actual Charges Beacon Health Ventures Q 5601554 Actual Charges Beacon Health Ventures S 1983358 Cash Beacon Health Ventures R 2330889 Cash Three Rivers Hospital P 1109118 Actual Charges Three Rivers Hospital Q 2952953 Actual Charges Community Hospital of Bremen R 2034099 Cash Three Rivers Hospital R 2130722 Cash Three Rivers Hospital S 287199 Cash