Civic Intelligence

Mdwise Network Inc

990 • Fiscal year 2017 • EIN 47-2619552

Jan 01, 2017 to Dec 31, 2017 • Filed on Aug 31, 2018

1200 Madison Avenue 400Indianapolis, IN 46225

(317) 822-7100

Siviq Scores

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

Liabilities / Assets

88th percentile

0.91x

Higher debt load relative to assets than 88% of similar nonprofits.

2017 filings • $100M-$250M nonprofits • Source year 2017

Liabilities / Revenue

37th percentile

0.31x

Higher debt load relative to revenue than 37% of similar nonprofits.

2017 filings • $100M-$250M nonprofits • Source year 2017

Net Margin

10th percentile

-15%

Higher net margin than 10% of similar nonprofits.

2017 filings • $100M-$250M nonprofits • Source year 2017

Top Officer Pay

Score unavailable

No value available

This filing does not contain officer compensation rows.

Source year 2017

Asset Growth

98th percentile

114%

Faster asset growth than 98% of similar nonprofits.

2017 filings • $100M-$250M nonprofits • Annualized from 2016 to 2017

Revenue Growth

71st percentile

12%

Faster revenue growth than 71% of similar nonprofits.

2017 filings • $100M-$250M nonprofits • Annualized from 2016 to 2017

Assets

Up

$47,629,527

Up $25,404,460 (+114%) from 2016

Net Assets

Up

$4,419,843

Up $12,849,150 (+152%) from 2016

Liabilities

Up

$43,209,684

Up $12,555,310 (+41%) from 2016

Revenue

Up

$140,209,755

Up $15,219,129 (+12%) from 2016

Expenses

Up

$161,795,605

Up $18,774,593 (+13%) from 2016

Net Income

Down

-$21,585,850

Down $3,555,464 (-20%) from 2016

Historical Trend

Balance Sheet Trend

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

$60M$40M$20M$0-$20MAssets 2015: $41,969,610Liabilities 2015: $32,368,531Net Assets 2015: $9,601,0792015Assets 2016: $22,225,067Liabilities 2016: $30,654,374Net Assets 2016: -$8,429,3072016Assets 2017: $47,629,527Liabilities 2017: $43,209,684Net Assets 2017: $4,419,8432017Assets 2018: $15,215,209Liabilities 2018: $1,234,555Net Assets 2018: $13,980,6542018Assets 2019: $3,698,794Liabilities 2019: $165,604Net Assets 2019: $3,533,1902019Assets 2020: $0Liabilities 2020: $0Net Assets 2020: $02020

Highlighted filing

2017

Assets$47,629,527
Liabilities$43,209,684
Net Assets$4,419,843

Operations Trend

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

$200M$150M$100M$50M$0-$50MRevenue 2015: $108,793,441Expenses 2015: $99,192,362Net Income 2015: $9,601,0792015Revenue 2016: $124,990,626Expenses 2016: $143,021,012Net Income 2016: -$18,030,3862016Revenue 2017: $140,209,755Expenses 2017: $161,795,605Net Income 2017: -$21,585,8502017Revenue 2018: $29,761,006Expenses 2018: $27,341,855Net Income 2018: $2,419,1512018Revenue 2019: $364,724Expenses 2019: $941,634Net Income 2019: -$576,9102019Revenue 2020: $8,157,125Expenses 2020: -$44,589Net Income 2020: $8,201,7142020

Highlighted filing

2017

Revenue$140,209,755
Expenses$161,795,605
Net Income-$21,585,850
Jump To
Filing Snapshot
Filing Period
Jan 1, 2017 to Dec 31, 2017
Signed
Aug 31, 2018
Return Version
2017v2.2
Gross Receipts
$140,209,755
Mission and Program Overview

Mission

The mission of MDwise Network is to improve the health of our patients and community through innovation and excellence in care, education and service.

Balance Sheet Detail
LineBeginningEndChange
Assets
Cash and Non-Interest-Bearing Accounts$0$24,820,914▲ $24,820,914
Accounts Receivable$15,081,542$22,808,613▲ $7,727,071
Savings and Temporary Cash Investments$0--
Other Notes and Loans Receivable, Net$0--
Pledges and Grants Receivable$0--
Receivable From Disqualified Prsn-$0-
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0--
Investments Program Related$0--
Investments in Publicly Traded Securities$0--
Land, Buildings, and Equipment, Net$0$0→ $0
Pd in Cap Srpls Land Bldg Eqp Fund$0--
Rtn Earn Endowment Incm Other Fnds$0--
Cap Stk Tr Prin Current Funds$0--
Intangible Assets$0--
Inventories for Sale or Use$0--
Loans From Officers Directors-$0-
Prepaid Expenses and Deferred Charges$0--
Total Assets$22,225,067$47,629,527▲ $25,404,460
Other Assets Total$7,143,525$0▼ $7,143,525
Liabilities
Deferred Revenue$23,515,162$23,784,823▲ $269,661
Other Liabilities$7,139,212$19,424,861▲ $12,285,649
Accounts Payable and Accrued Expenses$0--
Grants Payable$0--
Mortgage Notes Payable Secured by Investment Property$0--
Unsecured Notes Loans Payable$0--
Escrow Account Liability$0--
Tax Exempt Bond Liabilities$0--
Total Liabilities$30,654,374$43,209,684▲ $12,555,310
Net Assets / Fund Balance
Unrestricted Net Assets$-8,429,307$4,419,843▲ $12,849,150
Permanently Rstr Net Assets$0--
Temporarily Rstr Net Assets$0--
Total Net Assets Fund Balance$-8,429,307$4,419,843▲ $12,849,150
Total Liabilities and Net Assets / Fund Balance$22,225,067$47,629,527▲ $25,404,460
Compensation and Service Providers

Board Members and Trustees

NameTitle
-President/CEO, Chairman - as of Dec 2017
-President/CEO, Chairman - partial year
-Director
-Director - partial year
-General Counsel, Secretary - partial year
-Secretary
-Treasurer
-Treasurer - Partial Year

Highest Paid Contractors

ContractorServicesLocationCompensation
MDWISE Marketplace INCAdmin Fee1200 MADISON AVE SUITE 400, Indianapolis, IN 46225$13,751,570
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$140,209,755
Investment Income
$0
Other Revenue
$0
Change in Net Assets
$-21,585,850
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$161,795,605
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Salaries, Compensation, and Employee Benefits$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Expenses$4,199,586$654,958-$4,199,586
Fees for Services Other$2,787,891$306,399$0$3,094,290
All Other Expenses$1,151,762$0$0$1,151,762
Total Functional Expenses$158,771,513$3,024,092$0$161,795,605
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees-$0-
Receivables from Disqualified Persons-$0-
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Discontinued Operations Liability$9,565,000
Due to affiliate$9,107,720
Due to IU Health$752,141
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
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
No
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Line 15A Compensation paid to officers

No has been answered to lines 15a & 15 b, as all officers of MDwise Network Inc. are employees of an affiliated entity and not compensated by the filing organization.

Form 990, Part VI, Line 13 whistleblower policy

The filing organization maintains a joint policy with its affiliate, MDwise, Inc.

Form 990, Part VI, Line 14 document retention and destruction policy

The filing organization maintains a joint policy with its affiliate, MDwise, Inc.

Form 990, Part VI, Line 4 Significant changes to organizational documents

The bylaws have been amended to change the number of board members

Form 990, Part VI, Line 7B Decisions requiring approval by members or stockholders

Indiana University Health ("IU Health") shall appoint three members of the board of directors and The Health and Hospital Corporation of Marion County ("HHC") shall appoint two members of the board. In accordance with the organization's governance agreement, if HHC does not make certain additional capital contributions, the number of directors HHC is entitled to appoint may be reduced and the number IUH can appoint may be increased.

Form 990, Part VI, Line 8B Documentation of meetings held by committees of governing body

This question was marked 'no' because there are no other committees with authority to act on behalf of the governing body.

Form 990, Part VI, Line 11B Review of form 990 by governing body

The CEO of MDwise reviewed a final draft of the form 990 prior to filing with the IRS. A final copy of the form 990 was sent to every member of the governing body after it was filed with the IRS.

Form 990, Part VI, Line 12C Conflict of interest policy

The organization REQUIRES THAT ALL BOARD MEMBERS and OFFICERS SIGN A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. THE COMPLIANCE OFFICER OF MDWISE, INC. REVIEWS EACH COMPLETED STATEMENT AND IS PRESENT AT BOARD MEETINGS TO ENFORCE COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. IF AN ISSUE WITH A POTENTIAL CONFLICT IS BROUGHT TO THE TABLE AT A BOARD MEETING, THE PERSON WITH THE POTENTIAL CONFLICT ABSTAINS FROM VOTING ON THE ISSUES.

Form 990, Part VI, Line 19 Required documents available to the public

All required documents will be made available upon authorized request.

Filing and Contact Details

Filer

Filer Name
Mdwise Network Inc
EIN
47-2619552
Phone
3178227100
Address
1200 MADISON AVENUE 400, INDIANAPOLIS, IN 46225

Signing Officer

Name
Robert Komula
Title
President
Signed
2018-08-31
Discuss with paid preparer
Yes

Organization Details

Formed
2014
Legal Domicile
In
Voting Board Members
5
Independent Board Members
2
Employees
0
Volunteers
2

Preparer

Firm
Crowe Llp
Address
135 N Pennsylvania Street Suite 200, Indianapolis, IN 46204
Preparer
Jacqueline Coburn
Phone
3176321100
Supplemental Narrative

Additional Explanations

Form 990, Part III, Line 3 Significant changes in program services

During 2017, the Company elected to exit the Indiana Health Insurance Exchange ('Exchange") and covered members were notified of the decision to withdraw from the Exchange. The election by the Company was announced on June 21, 2017 and resulted in the discontinuation of coverage for existing members of the Company beginning in 2018 and significantly alters the ongoing operations of the Company. The Company's decision was influenced by uncertainty over the future of the federally subsidized exchange. In 2018 and going forward, the Company intends to discontinue operations after all obligations to policyholders have been satisfied.

Form 990, Part XI, Line 9 Other changes in net assets or fund balances

Transfer in from affiliate - 44000000; Loss on discontinued operations - -9565000;

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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BonusRelatedOrganizationsAmt461385
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BusinessName/BusinessNameLine1Txt0Robert William Komula
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BusinessName/BusinessNameLine1Txt1James T Parker
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BusinessName/BusinessNameLine1Txt2Christopher Scott Weaver MD
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BusinessName/BusinessNameLine1Txt3Ryan Christopher Kitchell
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BusinessName/BusinessNameLine1Txt4Jennifer Marie Alvey
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt0President/CEO, Chairman - as of Dec 2017
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt1President/CEO, Chairman - partial year
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt2Director - partial year
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt3Director
IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt4Director
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IRS990ScheduleJ/SeverancePaymentInd0false
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt0SCHEDULE J, PART I, LINE 3 IS LEFT BLANK AS THE PRESIDENT/CEO OF THE FILING ORGANIZATON IS EMPLOYED AND PAID BY A RELATED ORGANIZATION WHICH ESTABLISHES COMPENSATION.
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt1James T. Parker, Ryan C. Kitchell, and Christopher S. Weaver, M.D. participate in a supplemental executive retirement plan of Indiana University Health, Inc., provisions of which are designed to retain its critical employees. The plan provides for an additional retirement benefit for service through normal retirement or other key dates. If the executive leaves prior to retirement or other key dates, the benefit may be forfeited or reduced. Each of the executives listed above have an amount included in column c, deferred compensation, representing the current year unvested contributions made under the supplemental executive retirement plan. No amounts were paid to the executives under the supplemental executive retirement plan during the year.
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc0Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc1Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan
IRS990ScheduleJ/SupplementalNonqualRtrPlanInd0true
IRS990/ScheduleORequiredInd0true
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt0During 2017, the Company elected to exit the Indiana Health Insurance Exchange ('Exchange") and covered members were notified of the decision to withdraw from the Exchange. The election by the Company was announced on June 21, 2017 and resulted in the discontinuation of coverage for existing members of the Company beginning in 2018 and significantly alters the ongoing operations of the Company. The Company's decision was influenced by uncertainty over the future of the federally subsidized exchange. In 2018 and going forward, the Company intends to discontinue operations after all obligations to policyholders have been satisfied.

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