Civic Intelligence

Hallmark Health Systeminc

990 • Fiscal year 2016 • EIN 04-2767880

Oct 01, 2015 to Sep 30, 2016 • Filed on Aug 09, 2017

170 Governors AvenueMedford, MA 02155

(781) 338-7424

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

70th percentile

0.53x

Higher debt load relative to assets than 70% of similar nonprofits.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2016

Liabilities / Revenue

57th percentile

0.66x

Higher debt load relative to revenue than 57% of similar nonprofits.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2016

Net Margin

27th percentile

-0.3%

Higher net margin than 27% of similar nonprofits.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2016

Top Officer Pay

57th percentile

$988,355

Higher top officer pay than 57% of similar nonprofits.

Top officer pay equals 0.4% of source-year revenue.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2016

Asset Growth

13th percentile

-5.0%

Faster asset growth than 13% of similar nonprofits.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Annualized from 2015 to 2016

Revenue Growth

30th percentile

-2.2%

Faster revenue growth than 30% of similar nonprofits.

2016 filings • 501(c)3 • $250M-$1B nonprofits • Annualized from 2015 to 2016

Assets

Down

$330,723,599

Down $17,343,088 (-5.0%) from 2015

Net Assets

Down

$155,438,696

Down $9,404,730 (-5.7%) from 2015

Liabilities

Down

$175,284,903

Down $7,938,358 (-4.3%) from 2015

Revenue

Down

$264,947,420

Down $5,923,947 (-2.2%) from 2015

Expenses

Up

$265,652,372

Up $8,861,258 (+3.5%) from 2015

Net Income

Down

-$704,952

Down $14,785,205 (-105%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$600M$400M$200M$0Assets 2010: $275,526,067Liabilities 2010: $169,004,719Net Assets 2010: $106,521,3482010Assets 2011: $290,941,268Liabilities 2011: $168,311,361Net Assets 2011: $122,629,9072011Assets 2012: $317,298,201Liabilities 2012: $167,462,249Net Assets 2012: $149,835,9522012Assets 2013: $345,861,629Liabilities 2013: $175,866,903Net Assets 2013: $169,994,7262013Assets 2014: $342,814,392Liabilities 2014: $164,899,962Net Assets 2014: $177,914,4302014Assets 2015: $348,066,687Liabilities 2015: $183,223,261Net Assets 2015: $164,843,4262015Assets 2016: $330,723,599Liabilities 2016: $175,284,903Net Assets 2016: $155,438,6962016Assets 2017: $319,199,641Liabilities 2017: $163,241,193Net Assets 2017: $155,958,4482017Assets 2018: $294,461,064Liabilities 2018: $144,109,400Net Assets 2018: $150,351,6642018Assets 2019: $364,382,440Liabilities 2019: $186,071,835Net Assets 2019: $178,310,6052019Assets 2020: $453,532,534Liabilities 2020: $273,634,037Net Assets 2020: $179,898,4972020Assets 2021: $443,008,431Liabilities 2021: $250,925,315Net Assets 2021: $192,083,1162021Assets 2022: $344,183,016Liabilities 2022: $219,089,672Net Assets 2022: $125,093,3442022Assets 2023: $266,194,060Liabilities 2023: $204,628,564Net Assets 2023: $61,565,4962023Assets 2024: $207,226,827Liabilities 2024: $81,352,093Net Assets 2024: $125,874,7342024

Highlighted filing

2016

Assets$330,723,599
Liabilities$175,284,903
Net Assets$155,438,696

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$400M$300M$200M$100M$0-$100MExpenses 2010: $260,499,8072010Expenses 2011: $267,255,9762011Expenses 2012: $271,682,6872012Revenue 2013: $270,950,655Expenses 2013: $257,108,052Net Income 2013: $13,842,6032013Revenue 2014: $265,794,872Expenses 2014: $251,080,146Net Income 2014: $14,714,7262014Revenue 2015: $270,871,367Expenses 2015: $256,791,114Net Income 2015: $14,080,2532015Revenue 2016: $264,947,420Expenses 2016: $265,652,372Net Income 2016: -$704,9522016Revenue 2017: $271,253,979Expenses 2017: $260,827,947Net Income 2017: $10,426,0322017Revenue 2018: $255,502,455Expenses 2018: $233,537,537Net Income 2018: $21,964,9182018Revenue 2019: $249,458,051Expenses 2019: $227,360,595Net Income 2019: $22,097,4562019Revenue 2020: $253,170,701Expenses 2020: $231,079,367Net Income 2020: $22,091,3342020Revenue 2021: $268,442,770Expenses 2021: $245,540,701Net Income 2021: $22,902,0692021Revenue 2022: $249,297,940Expenses 2022: $308,860,327Net Income 2022: -$59,562,3872022Revenue 2023: $336,322,410Expenses 2023: $286,401,935Net Income 2023: $49,920,4752023Revenue 2024: $267,639,874Expenses 2024: $280,631,450Net Income 2024: -$12,991,5762024

Highlighted filing

2016

Revenue$264,947,420
Expenses$265,652,372
Net Income-$704,952
Jump To
Filing Snapshot
Filing Period
Oct 1, 2015 to Sep 30, 2016
Signed
Aug 9, 2017
Return Version
2015v3.0
Gross Receipts
$329,163,367
Mission and Program Overview

Mission

To operate hospitals on two campuses (one with 24 hour er services) along with a hospital school of nursing. Melrosewakefield healthcare provides inpatient and outpatient medical care and ancillary medical services and testing.

To operate hospitals with 24 hr er services on (2) campuses along with a hospital school of nursing.hallmark health provides inpatient and outpatient medical care and ancillary medical services and testing.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$192,042,729$174,117,447▼ $17,925,282
Land, Buildings, and Equipment, Net$79,381,306$77,377,954▼ $2,003,352
Accounts Receivable$25,788,579$23,478,700▼ $2,309,879
Investments Other Securities$9,759,643$10,091,649▲ $332,006
Cash and Non-Interest-Bearing Accounts$6,083,111$9,858,467▲ $3,775,356
Receivables From Officers Etc$7,811,498$7,730,931▼ $80,567
Prepaid Expenses and Deferred Charges$7,199,728$7,114,689▼ $85,039
Inventories for Sale or Use$2,967,391$3,021,670▲ $54,279
Savings and Temporary Cash Investments$1,482,337$1,486,281▲ $3,944
Total Assets$348,066,687$330,723,599▼ $17,343,088
Other Assets Total$15,550,365$16,445,811▲ $895,446
Liabilities
Tax Exempt Bond Liabilities$115,683,171$108,177,195▼ $7,505,976
Accounts Payable and Accrued Expenses$36,396,723$33,868,918▼ $2,527,805
Other Liabilities$29,836,801$33,238,790▲ $3,401,989
Mortgage Notes Payable Secured by Investment Property$1,306,566--
Total Liabilities$183,223,261$175,284,903▼ $7,938,358
Net Assets / Fund Balance
Unrestricted Net Assets$147,660,443$137,460,861▼ $10,199,582
Permanently Rstr Net Assets$14,450,643$14,980,039▲ $529,396
Temporarily Rstr Net Assets$2,732,340$2,997,796▲ $265,456
Total Net Assets Fund Balance$164,843,426$155,438,696▼ $9,404,730
Total Liabilities and Net Assets / Fund Balance$348,066,687$330,723,599▼ $17,343,088

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$44,598,984$161,557,012$206,155,996
Buildings$21,784,227$146,701,150$168,485,377
Leasehold Improvements$1,658,424$8,437,311$10,095,735
Land$7,522,712-$7,522,712
Other Land Buildings$1,813,607-$1,813,607

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2015$17,182,983$708,411▲ $1,170,049$-1,083,608$17,977,835
2014$18,180,436$486,338▼ $625,822$-857,969$17,182,983
2013$17,542,062$803,003▲ $1,059,927$-1,224,556$18,180,436
2012$17,024,911$506,053▲ $1,155,798$-1,144,700$17,542,062
2011$15,730,987$847,142▲ $1,520,047$-1,073,265$17,024,911
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
J Nania Asst Trea Thru 91916CFO/asst. Tr--$464,266$464,266
Steve SbardellaVP-med Affairs / CMO-$348,306$72,724$384,854
C WhippleAsst.clerk/gFT-$384,042$384,042
Steve SbardellaVP-med AffaiFT-$344,879$344,879
AmacdonaldPresident-$264,724$57,941$322,665
Pam DucheneVo-nursing /FT-$292,327$292,327
C DresserVP-informati-$261,223$21,276$282,499
Epbutler MdDirector-$251,019$31,480$282,499
C BeisonPhysician -FT$271,841$5,556$277,397
M TurilliVP-fiscal-$232,941$23,183$277,397
C WarrenIntegration-$238,980$37,526$276,506
David RyanVP-human Resources-$198,880$31,638$276,506
C DresserVP-information Servi-$244,516$63,936$273,621
Pam DucheneVo-nursing / CNO-$241,662$17,701$269,235
David RyanVP-human ResFT-$260,389$260,389
M PierogVo-quality aFT$207,165$23,193$230,358
C WhippleAsst.clerk/gen Coun-$202,882$33,152$230,358
HkelleherVP-ancillaryFT$226,001$398$226,399
J Nania Asst Trea Thru 91916CFO/asst. Treasurer-$226,001$7,849$226,399
Wj Doherty MdVP / C00-$186,926$6,524$200,451
S PichetteAsst. Clerk-$70,251$1,303$71,554

Board Members and Trustees

NameTitle
Mvsack President Thru 21115President
Cp VinczeDirector
D WestDirector
E GeorgeDirector
GinfurnaDirector
J HerringtonDirector
Ja Hackett SrDirector
Ke Henrikson MdDirector
R Swanson JrDirector
R Weinstein MdDirector
Rs CummingsDirector
S GlasserDirector
T GibsonDirector
W Lawrence IiiDirector
C BeisonPhysician - Director
Mp Connelly CFO as of 92016CFO/asst, Tr
D HarnettClinical Md
P BardaroDirectpr
C WarrenIntegration Admin
AfreedbergPsych Md
J GiragosPsych Md
J KeenanTreasurer
M PierogVo-quality Assurance
HkelleherVP-ancillary Serv
N BitnerVP-education

Highest Paid Contractors

ContractorServicesLocationCompensation
Sodexho INC & AffiliatesMgt/consultingPO BOX 360170, Pittsburgh, PA 15251-6170$2,117,271
Suburban Mechanical Design ServicesMechanical SvsPO BOX 850914, Braintree, MA 02185$1,704,341
Allied Barton ServicesSecurityPO BOX 828854, Philadelphia, PA 19182-8854$1,422,166
Hospital Medicine AssociatesPhysician SvsPO BOX 634850, Cincinnati, OH 45263$1,294,624
Delphi Construction INCConstruction130 OVERLAND ROAD, Waltham, MA 02451$1,282,970
Revenue and Support

Revenue Composition

Contributions and Grants
$3,647,547
Program Service Revenue
$251,973,782
Investment Income
$7,973,580
Other Revenue
$1,352,511
All Other Contributions
$869,087
Change in Net Assets
$-704,952
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$154,353,180
Other Expenses$111,299,192
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$105,122,259$18,677,232-$123,799,491
Office Expenses$37,927,126$4,146,656-$42,073,782
Fees for Services Other$13,903,972$6,202,930-$20,106,902
Depreciation Depletion$12,035,610$4,011,870-$16,047,480
Other Employee Benefits$12,873,254$2,300,909-$15,174,163
Payroll Taxes$7,610,071$1,997,391-$9,607,462
Occupancy$6,346,884$2,159,603-$8,506,487
Fees for Services Management$3,871,459$4,204,252-$8,075,711
Information Technology-$4,494,843-$4,494,843
Pension Plan Contributions$3,210,464$842,640-$4,053,104
Interest$2,239,504$746,501-$2,986,005
Advertising$149,299$1,641,048-$1,790,347
Current Officers, Directors, Trustees, and Key Employees-$1,718,960-$1,718,960
Insurance-$1,606,631-$1,606,631
All Other Expenses$842,195$310,283-$1,152,478
Fees for Services Legal-$874,540-$874,540
Fees for Services Accounting-$327,892-$327,892
Travel$138,378$134,027-$272,405
Fees for Service Investment Mgmnt Fees-$246,367-$246,367
Other Expenses$241,290$74,016-$241,290
Conferences and Meetings$114,547$99,401-$213,948
Total Functional Expenses$208,283,265$57,369,107$0$265,652,372
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$97,733
Fundraising Gross Income$59,916
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Hallmark Mwh Go$121,177$33,668$5,700$27,968
Hallmark Lmh Go$89,457$22,422$2,274$20,148
Total Events$308,851$59,916$97,733$-37,817
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Receivables from Officers, Directors, Trustees, and Key Employees$7,811,498$7,730,931▼ $80,567
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Pension Liability$14,412,805
Estimated Settlements 3rd Party Pay$9,840,855
Insurance & Other Lt Liabilities$4,216,751
Due to Affiliates$3,993,736
Asset Retirement Obligations-fin 47$935,219
Nursing School Long Term Liabilities$668,279
Deferred Financing Cost$-828,855

Bond Issues

BondIssuerIssuedIssue PricePurpose
BMdfa Comm of Mass2013-03-01$49,606,243Refund 2011 a&b series which refinded 1998 seies a
DMdfa Comm of Mass2013-03-01$20,000,000FINANCE CAPITAL
CMdfa Mhefa ( Comm of Mass )2013-03-01$19,800,000Rate 2008 series c which refunded 1998 series b.
AMdfa Comm of Mass2011-12-09$10,000,000FINANCE CAPITAL

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
B$49,606,243-$9,210,062$500,695
D$20,000,000-$5,106,835-
C$19,800,000-$4,220,000$98,939
A$10,000,000-$2,692,151$250,528

Bond Financing Compliance

No rebate due
Yes
Rebate not yet due
No
Form 8038-T filed
No
Gross proceeds invested
No
Gross proceeds invested in GIC
No
Exception to rebate
No
Corrective action procedures
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
Yes
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

Form 990, Page 6, Part VI, Line 4

On 6-30-16, hallmark health,including affiliates, approved a letter of intent to join wellforce, the parent of tufts medical center, and circle health. Effective 8-30-16, an agreement was signed that by 1-1-17 wellforce would amend its articles and bylaws to make hallmark health a founding member of wellforce, and for wellforce to became the sole corporate member of hallmark health, and its affiliates.

Form 990, Page 6, Part VI, Line 6

Hallmark health system, inc. Has approximately 150 community members.

Form 990, Page 6, Part VI, Line 7A

Members elect board of trustees

Form 990, Page 6, Part VI, Line 7B

Members have rights to approve decisions of board as required by the organization's articles, bylaws and laws of the commonwealth of massachustts.

Form 990, Page 6, Part VI, Line 11B

Form 990 was provided to the governing body and reviewed by the audit & compliance committee prior to filing.

Form 990, Page 6, Part VI, Line 12C

Annually the governing body and key employees are sent the policy and required to complete a disclosure form that is submitted to the office of general counsel for review.the contents of the disclosures and actions necessary to address conflicts are reviewed with the chair of the governing body's board and its president.

Form 990, Page 6, Part VI, Line 15A

Annually the human resources committee of the organization comprised of independent directors reviews the compensation of the president using data from an independent third party evaluation of comparable compensation data to assess and set compensation. Compensation is paid by a related corporation.

Form 990, Page 6, Part VI, Line 15B

Anually the human resources committee of the organization comprised of independent directors reviews the compensation of the president and executive leadership team using data from an independent third party evaluation of comparable compensation data to assess and set compensation. Compensation is paid by a related corporation.

Form 990, Page 6, Part VI, Line 18

Documents are available for public inspection upon request to the office of general counsel. The organization's returns and financials should also be available to the public at the public charities division of massachusetts attorney general website.

Form 990, Page 6, Part VI, Line 19

Documents are available for public inspection upon request to the office of general counsel. The organization's returns and financials should also be available to the public at the public charities division of massachusetts attorney general website.

Filing and Contact Details

Filer

Filer Name
Hallmark Health Systeminc
EIN
04-2767880
Phone
7813387424
Address
170 GOVERNORS AVENUE, MEDFORD, MA 02155
Doing Business As
Lawrence Memorial Hospital of

Signing Officer

Name
Amacdonald
Title
President
Phone
7813387323
Signed
2017-08-09

Organization Details

Principal Officer
Alan G Macdonald
Formed
1982
Legal Domicile
Ma
Voting Board Members
16
Independent Board Members
13
Employees
2,727
Volunteers
200
Supplemental Narrative

Additional Explanations

Form 990, Page 1, Item C

Medford melrose-wakefield hospital

Form 990, Part XI, Line 9

Unrealized gain investments(net cumulative effect) 7,651,348 unrealized gain-beneficial interests perpetual tr. 332,006 pension liability adjustment -897,693 net assets released from restrictions-operations -628,889 net distributions to affiliates -15,154,962 hospital auxiliary, net change 1,978 friends of lmh, net change -3,566 total -8,699,778

Financial Statement Notes

Schedule D, Page 2, Part V, Line 4

The endowment funds are used to further the exempt purpose of the organization in providing healthcare to the surrounding communities.

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Document Assets

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Facts available. Structured filing facts are available, but richer extracted sections are limited.$207$81.4$126$268$281$13.0
2023Detailed filing. Detailed filing data is available for this year.$266$205$61.6$336$286$49.9
2022Facts available. Structured filing facts are available, but richer extracted sections are limited.$344$219$125$249$309$59.6
2021XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$443$251$192$268$246$22.9
2020XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$454$274$180$253$231$22.1
2019Import issue. A filing source exists for this year, but detailed import did not complete cleanly.$364$186$178$249$227$22.1
2018XML pending. An XML filing is linked for this year, but detailed extraction is still pending.$294$144$150$256$234$22.0
2017Facts available. Structured filing facts are available, but richer extracted sections are limited.$319$163$156$271$261$10.4
2016Detailed filing. Detailed filing data is available for this year.$331$175$155$265$266$0.70
2015Detailed filing. Detailed filing data is available for this year.$348$183$165$271$257$14.1
2014Detailed filing. Detailed filing data is available for this year.$343$165$178$266$251$14.7
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$346$176$170$271$257$13.8
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$317$167$150$272
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$291$168$123$267
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$276$169$107$260
Peer Organizations

Similar nonprofits based on the same Siviq industry and scale cohort. 2016 filings • 501(c)3 • $250M-$1B nonprofits