Civic Intelligence

Gwinnett Hospital System Inc

990 • Fiscal year 2014 • EIN 58-2002413

Jul 01, 2013 to Jun 30, 2014 • Filed on May 07, 2015

1000 Medical Center BoulevardAtlanta, GA 30046

(678) 312-4321

Siviq Scores

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

Liabilities / Assets

66th percentile

0.48x

Higher debt load relative to assets than 66% of similar nonprofits.

2014 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2014

Liabilities / Revenue

57th percentile

0.65x

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

2014 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2014

Net Margin

40th percentile

4.2%

Higher net margin than 40% of similar nonprofits.

2014 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2014

Top Officer Pay

84th percentile

$1,823,367

Higher top officer pay than 84% of similar nonprofits.

Top officer pay equals 0.3% of source-year revenue.

2014 filings • 501(c)3 • $250M-$1B nonprofits • Source year 2014

Asset Growth

44th percentile

5.5%

Faster asset growth than 44% of similar nonprofits.

2014 filings • 501(c)3 • $250M-$1B nonprofits • Annualized from 2013 to 2014

Revenue Growth

12th percentile

-7.1%

Faster revenue growth than 12% of similar nonprofits.

2014 filings • 501(c)3 • $250M-$1B nonprofits • Annualized from 2013 to 2014

Assets

Up

$900,724,006

Up $47,047,559 (+5.5%) from 2013

Net Assets

Up

$470,243,636

Up $36,511,298 (+8.4%) from 2013

Liabilities

Up

$430,480,370

Up $10,536,261 (+2.5%) from 2013

Revenue

$660,670,375

No earlier filing loaded for comparison.

Expenses

Down

$632,916,450

Down $51,207,783 (-7.5%) from 2013

Net Income

$27,753,925

No earlier filing loaded for comparison.

Historical Trend

Balance Sheet Trend

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

$1.0B$500M$0Assets 2010: $814,489,437Liabilities 2010: $481,162,720Net Assets 2010: $333,326,7172010Assets 2011: $828,442,212Liabilities 2011: $437,216,897Net Assets 2011: $391,225,3152011Assets 2012: $840,356,628Liabilities 2012: $462,597,018Net Assets 2012: $377,759,6102012Assets 2013: $853,676,447Liabilities 2013: $419,944,109Net Assets 2013: $433,732,3382013Assets 2014: $900,724,006Liabilities 2014: $430,480,370Net Assets 2014: $470,243,6362014Assets 2015: $925,263,221Liabilities 2015: $440,864,932Net Assets 2015: $484,398,2892015Assets 2016: $912,681,206Liabilities 2016: $466,334,478Net Assets 2016: $446,346,7282016Assets 2017: $900,319,358Liabilities 2017: $421,701,221Net Assets 2017: $478,618,1372017Assets 2018: $888,989,982Liabilities 2018: $396,630,542Net Assets 2018: $492,359,4402018Assets 2019: $848,485,246Liabilities 2019: $419,510,587Net Assets 2019: $428,974,6592019

Highlighted filing

2014

Assets$900,724,006
Liabilities$430,480,370
Net Assets$470,243,636

Operations Trend

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

$1.0B$500M$0-$500MExpenses 2010: $570,228,2392010Expenses 2011: $587,565,9912011Expenses 2012: $605,767,7112012Expenses 2013: $684,124,2332013Revenue 2014: $660,670,375Expenses 2014: $632,916,450Net Income 2014: $27,753,9252014Revenue 2015: $701,037,262Expenses 2015: $662,764,161Net Income 2015: $38,273,1012015Revenue 2016: $724,486,359Expenses 2016: $725,692,190Net Income 2016: -$1,205,8312016Revenue 2017: $741,408,735Expenses 2017: $747,633,222Net Income 2017: -$6,224,4872017Revenue 2018: $754,351,363Expenses 2018: $761,789,834Net Income 2018: -$7,438,4712018Revenue 2019: $751,912,005Expenses 2019: $796,564,654Net Income 2019: -$44,652,6492019

Highlighted filing

2014

Revenue$660,670,375
Expenses$632,916,450
Net Income$27,753,925
Jump To
Filing Snapshot
Filing Period
Jul 1, 2013 to Jun 30, 2014
Signed
May 7, 2015
Return Version
2013v4.0
Gross Receipts
$661,466,596
Mission and Program Overview

Mission

Gwinnett hospital system, inc. Is a not-for-profit healthcare network that provides award-winning health care services to the greater gwinnett community. Gwinnett hospital system has two facilities located in duluth and lawrenceville, georgia that together provide acute care, outpatient services, orthopedic, cardiovascular, neuroscience specialty, open heart surgery, several clinics, and a full continuum of wellness services. The facilities each operate a year round emergency room open 24 hours a day, 7 days a week.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$336,304,848$358,716,234▲ $22,411,386
Land, Buildings, and Equipment, Net$296,852,405$303,047,918▲ $6,195,513
Accounts Receivable$105,869,398$144,072,713▲ $38,203,315
Savings and Temporary Cash Investments$31,216,329$31,779,155▲ $562,826
Cash and Non-Interest-Bearing Accounts$49,396,553$24,487,590▼ $24,908,963
Investments Other Securities$9,365,303$10,855,140▲ $1,489,837
Prepaid Expenses and Deferred Charges$8,604,336$7,686,261▼ $918,075
Inventories for Sale or Use$6,234,850$5,811,177▼ $423,673
Intangible Assets$3,430,000$3,430,000→ $0
Other Notes and Loans Receivable, Net$936,107$1,985,935▲ $1,049,828
Total Assets$853,676,447$900,724,006▲ $47,047,559
Other Assets Total$5,466,318$8,851,883▲ $3,385,565
Liabilities
Tax Exempt Bond Liabilities$301,935,000$296,325,000▼ $5,610,000
Other Liabilities$77,838,501$82,054,670▲ $4,216,169
Accounts Payable and Accrued Expenses$39,765,388$51,891,070▲ $12,125,682
Deferred Revenue$405,220$209,630▼ $195,590
Total Liabilities$419,944,109$430,480,370▲ $10,536,261
Net Assets / Fund Balance
Unrestricted Net Assets$425,516,742$460,029,234▲ $34,512,492
Temporarily Rstr Net Assets$7,088,513$8,637,319▲ $1,548,806
Permanently Rstr Net Assets$1,127,083$1,577,083▲ $450,000
Total Net Assets Fund Balance$433,732,338$470,243,636▲ $36,511,298
Total Liabilities and Net Assets / Fund Balance$853,676,447$900,724,006▲ $47,047,559

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$111,634,065$220,945,469$332,579,534
Buildings$165,066,103$128,440,962$293,507,065
Leasehold Improvements$3,674,764$15,511,257$19,186,021
Land$18,734,214-$18,734,214
Other Land Buildings$3,938,772$1,436,933$5,375,705

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2014$8,215,596$1,857,000▲ $141,806-$10,214,402
2013$6,094,379$2,121,218--$8,215,596
2012$9,977,875$1,666,000▲ $155,348$5,704,844$6,094,379
2011$7,757,383$1,970,363▲ $250,129-$9,977,875
2010$6,154,854$4,262,776▼ $2,658,501$1,750$7,757,379
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Thomas Y Mcbride IiiExecutive VPFT$1,460,910$362,457$1,823,367
Thomas Y Mcbride IiiExecutive VP & CFO-$365,650$481,486$1,823,367
Philip WolfePresident &FT$1,015,995$133,948$1,149,943
Philip WolfePresident & CEO-$668,457$242,638$1,149,943
Manfred Sandler MdVice Chairma-$2,750$820,832$823,582
Alan BierExecutive VPFT$533,749$74,396$608,145
Alan BierExecutive VP & CMO-$365,507$181,374$608,145
Jessie T ShepherdSr VP Plan &FT$422,164$64,989$487,153
Jessie T ShepherdSr VP Plan & Develop-$283,919$71,324$487,153
Wallace BrownSenior VP &FT$402,632$36,617$439,249
Wallace BrownSenior VP & Chief in-$257,875$156,893$439,249
Carol DanielsonSenior VP &FT$348,216$66,884$415,100
Carol DanielsonSenior VP & Chief-$253,716$154,132$415,100
Stephen NadeauSenior VP ofFT$349,244$65,649$414,893
Stephen NadeauSenior VP of Human-$258,000$161,384$414,893
Peter WheelerGeneral CounFT$340,677$71,863$412,540
Peter WheelerGeneral Counsel-$258,408$131,353$412,540
Lea BaySr. VP & PreFT$314,387$74,106$388,493
Lea BaySr. VP & President-$257,140$114,023$388,493
Mark D DarrowDirector G.mFT$334,156$26,095$360,251
Mark D DarrowDirector G.m.e.-$306,241$104,062$360,251
James Dennard JrVP & COO GmcFT$205,060$101,884$314,576
Scott OremVP FinanceFT$189,271$76,128$298,294
Thomas LynchVP Managed CFT$246,525$50,131$296,656
Thomas LynchVP Managed Care-$190,504$107,484$296,656
Janet SchwalbeVP PhysicianFT$234,852$34,882$269,734
Janet SchwalbeVP Physician Svc.-$175,833$63,199$269,734
Richard K AllenAvp InformatFT$236,883$24,309$261,192
Richard K AllenAvp Information Svc-$122,894$78,497$261,192
Diana PottsChief NursinFT$220,958$35,642$256,600
Diana PottsChief Nursing Office-$168,122$75,467$256,600
Cathy DoughertyAssistant VPFT$185,293$40,351$225,644
Cathy DoughertyAssistant VP Revenue-$151,109$41,011$225,644
Christopher R TrocchioDirector PerfusiFT$180,095$37,126$217,221
Christopher R TrocchioDirector Perfusion Cv Sv-$149,331$41,473$217,221
Bonny RichardsonAssociate GeFT$176,759$23,342$200,101
Bonny RichardsonAssociate Gen. Legal-$156,018$60,551$200,101
Mike HemphillDirector ofFT$166,000$33,419$199,419
Mike HemphillDirector of Material-$128,527$168,509$199,419
Cathie L BrazellDirector WomFT$172,550$22,097$194,647
Cathie L BrazellDIRECTOR WOMEN'S SVC-$155,132$10,847$194,647
Michael J NaughtonDirector ofFT$172,991$18,383$191,374
Michael J NaughtonDirector of Pharmacy-$149,694$23,821$191,374
Patricia a LavelySr. VP and CFT$146,486$29,297$175,783
Patricia a LavelySr. VP and CIO-$116,160$173,397$175,783
Carlton Keith Buchanan MdBoard Member-$2,750$47,543$50,293
Jeffery NowlinExecutive VP-$10,847-$10,847
Jeffery NowlinExecutive VP & Chief---$10,847
A Keith Carnes MdBoard Member-$2,500$5,000$7,500
Carolyn HillBoard Member-$2,750$250$3,000
Manfred Sandler MdVice Chairman-$2,750$1,457,717$2,750
David MccleskeyChairman-$2,250$250$2,500
L C JohnsonBoard Member-$2,500-$2,500

Highest Paid Contractors

ContractorServicesLocationCompensation
Suburban Hematology Onc AssocOncology/staffi-$12,682,778
Alliance Laundry & Textile ServicesLaundry-$2,735,838
Covidien Sales LLC Dba BarrxMedical Supplie-$2,412,103
Am Anesthesiology Assoc Of GaAnesthesia-$1,146,901
Gwinnett Anesthesia Service PCAnesthesia-$881,232
Revenue and Support

Revenue Composition

Contributions and Grants
$6,754,394
Program Service Revenue
$633,686,172
Investment Income
$12,015,503
Other Revenue
$8,214,306
All Other Contributions
$2,906,830
Change in Net Assets
$27,753,925

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
No
Third parties used for noncash contributions
No

Noncash Contributions

Contribution TypeContribution CountReported Amount
Other Non Cash Contri Table1$79,845
Total Noncash Contributions1$79,845

Audited Revenue Reconciliation

Revenue per Audited Statements
$658,335,594
Revenue Not Reported on Financial Statements
$2,334,781
Revenue Not Reported on Form 990
$11,688,133
Other Revenue Adjustments
$1,857,000
Total Revenue per Audited Statements
$670,023,727
Total Revenue per Form 990
$660,670,375
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$308,813,108
Salaries, Compensation, and Employee Benefits$299,071,842
Grants and Similar Amounts Paid$25,031,500
Total Fundraising Expense$452,191
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$193,861,695$36,510,621-$230,372,316
Fees for Services Other$31,355,063$28,372,763-$59,727,826
Depreciation Depletion$34,030,575--$34,030,575
Other Employee Benefits$26,328,820$5,867,013-$32,195,833
Grants to Domestic Orgs$24,991,000--$24,991,000
Payroll Taxes$13,298,101$2,958,746-$16,256,847
Interest$14,074,592--$14,074,592
Pension Plan Contributions$10,979,681$2,442,912-$13,422,593
Occupancy$12,492,115$921,971-$13,414,086
Office Expenses$5,244,357$5,099,064-$10,343,421
Information Technology$189,287$9,230,547-$9,419,834
Insurance$7,336,761$200,676-$7,537,437
Other Expenses$6,835,373$3,182,369$452,191$6,835,373
Current Officers, Directors, Trustees, and Key Employees-$6,824,253-$6,824,253
Fees for Services Management$3,192,206$998,673-$4,190,879
Advertising$99,328$2,127,930-$2,227,258
Fees for Services Legal$18,836$1,905,095-$1,923,931
Fees for Services Accounting-$545,532-$545,532
Fees for Service Investment Mgmnt Fees-$479,170-$479,170
Travel$139,954$241,356-$381,310
Conferences and Meetings$68,262$171,580-$239,842
Grants to Domestic Individuals$40,500--$40,500
Total Functional Expenses$521,572,197$110,892,062$452,191$632,916,450

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$632,916,450
Expenses per Audited Statements$607,463,669
Total Expenses per Audited Statements$607,463,669
Expenses Not Reported on Financial Statements$25,452,781
Other Expense Adjustments$24,975,000
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
58-2143107-501c3Support Related Org.$24,975,000
26-1522249-501c3Support$10,000
45-5277628-501c3Support$6,000
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
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Gwinnett Anesthesia Service PcBoard MemberMedical ServicesNo$881,232
Cardiovascular Group PcBoard MemberCompensationNo$276,482
Gwinnett Emergency SpecialistsBoard MemberMedical ServicesNo$240,181
Pam KauffmanFormer OfficerCompensationNo$61,186
Tracey WaldropFamily Former BCompensationNo$48,596
Miles H Mason IiiFormer DirectorCompensationNo$13,252
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Interest Rate Swaps$33,547,906
Accrued Pension Costs$23,808,405
Third Party Settlements$9,213,719
Self-insurance Reserves$8,588,854
Accrued Interest Payable$3,738,350
Executive Benefits Liability$1,901,412
Financing Obligation$845,870
Asset Retirement Obligation$300,865
Bond Expense Payable$78,456
Due to Affiliates$25,781
Sales & Realty Tax$5,052

Bond Issues

BondIssuerIssuedIssue PricePurpose
D58-60118782009-11-12$61,095,000CAPITAL IMPROVEMENTS
B58-60118782009-11-12$36,435,000Currently refund prior issue
A58-60118782009-11-12$32,700,000Advance refund prior issue
C58-60118782009-11-12$19,240,000CAPITAL IMPROVEMENTS

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
D$61,095,000-$1,470,000-
B$36,435,000$36,435,000$4,270,000-
A$32,700,000$32,700,000$480,000-
C$19,240,000-$305,000-

Bond Financing Compliance

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

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
Yes
Business relationship with organization members
Yes
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
No
Other officer compensation reviewed
No
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 6

The sole member of gwinnett hospital system, inc. Is gwinnett health system, inc., a related 501(c)(3) organization.

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

The board of directors of gwinnett hospital system, inc. Is appointed by the board of directors of gwinnett health system, inc., a related 501(c)(3) organization.

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

Certain actions of the board of directors of gwinnett hospital system, inc. Must be approved by the board of directors of gwinnett health system, inc., a related 501(c)(3) organization.

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

Information for preparation of this return was provided to an independent certified public accountant. After the return was prepared and prior to filing, it was reviewed in detail by senior financial management. A copy of the final return was then made available through a secure server for all board members to review prior to filing. Form 990 is also presented to the finance committee of the health system board prior to filing.

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

Annually, a conflicts of interest questionnaire is distributed to and discussed with each member of the board of directors. The legal department is responsible for ensuring these questionnaires are signed and returned. Legal monitors all transactions involving conflicts of interest with board members. Board members must disclose potential conflicts using a reasonable belief standard; play no direct or indirect part in deliberations; and absent themselves from the meeting at which any potential conflict is discussed. Only non-conflicted members may decide to pursue a transaction or arrangement involving a conflict if a majority determines the transaction or arrangement is in the organization's best interest. Violation of the coi policy is subject to corrective action, including exoneration, censure, and/or requesting the resignation of the member. Approval for any loans, payments, honorariums, trip or travel reimbursements, services, products, entertainment, prizes or awards provided to any board member must be approved by an administrative officer or his or her designee. The ceo must obtain the approval of the chairman of the board (and payments to the ceo are approved by another administrative officer). In addition, the human resource department sends out a coi policy and disclosure form to officers and key employees every 3 - 5 years. These officers and key employees are required to disclose any potential conflicts that arise during the fiscal year.

Form 990, Page 6, Part VI, Line 19

Governing documents are filed with and available on the georgia secretary of state website or through that office. Governing documents can also be obtained by contacting the hospital. Limited financial information is available online in our community benefit report. In addition, our annual report is available online at www.gwinnettmedicalcenter.org. Gwinnett hospital's conflict of interest policy can be obtained by contacting the hospital. The hospital is under obligation to disclose to bond holders pertinent financial information in the annual disclosure documents. Contact information for the hospital can be obtained at www. Gwinnettmedicalcenter.org.

Form 990, Part VII

Board members of gwinnett entities are provided a small stipend for their services. Manfred sandler, md also receives compensation as an employed cardiologist of gwinnett medical group, inc.

Filing and Contact Details

Filer

EIN
58-2002413
Phone
6783124321

Signing Officer

Name
Thomas Y Mcbride Iii
Title
Executive VP & CFO
Phone
6783124321
Signed
2015-05-07
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Philip R Wolfe
Formed
1992
Legal Domicile
Ga
Voting Board Members
5
Independent Board Members
3
Employees
5,201
Volunteers
359

Preparer

Preparer
William Edward Phillips
Phone
2298837878
Supplemental Narrative

Additional Explanations

FORM 990 - ORGANIZATION'S MISSION

Gwinnett hospital system, inc. Is a not-for-profit healthcare network that provides award-winning health care services to the greater gwinnett community. Gwinnett hospital system has two facilities located in duluth and lawrenceville, georgia that together provide acute care, outpatient services, orthopedic, cardiovascular, neuroscience specialty, open heart surgery, several clinics, and a full continuum of wellness services. The facilities each operate a year round emergency room open 24 hours a day, 7 days a week.

Form 990, Page 1, Part I, Line 6

Volunteer services has a database system that tracks the number of volunteers and their hours of service.

Form 990, Part XI, Line 9

Interest rate swap change -195,810 contribution from related foundation -1,857,000 contribution to related party 24,975,000

Form 990, Part XI, Line 9

Benficial interest in assets of foundation 735,066 accrued pension costs adjustment -3,665,633 change in interest rate swap -195,810 rounding -193 contribution to related party -24,975,000 contribution from related party 1,857,000 interest rate swap 195,810

Financial Statement Notes

Schedule D, Page 2, Part V, Line 4

Endowment funds are used to support specific hospital projects or programs.

Schedule D, Page 3, Part X

The hospital applies fasb asc topic 740, income taxes (asc 740), which addresses the accounting for uncertainty in income tax positions. It also provides guidance on the timing of recognition of tax positions in an entity's financial statements and the determination of the values of these positions. There is currently no impact on the hospital's financial statements as a result of applying asc 740.

Schedule D, Page 4, Part XI, Line 2D

Interest rate swap change -195,810

Schedule D, Page 4, Part XI, Line 4B

Contribution from related foundation 1,857,000

Schedule D, Page 4, Part XII, Line 4B

Contribution to related party 24,975,000

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Filings

Peer Organizations

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