Civic Intelligence

Highmark Health Group

990 • Fiscal year 2019 • EIN 82-1406555

Jan 01, 2019 to Dec 31, 2019 • Filed on Nov 13, 2020

120 Fifth Avenue FAPHM-192BPittsburgh, PA 15222

(412) 544-6668

Siviq Scores

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

Liabilities / Assets

75th percentile

0.58x

Higher debt load relative to assets than 75% of similar nonprofits.

2019 filings • 501(c)3 • $1B+ nonprofits • Source year 2019

Liabilities / Revenue

38th percentile

0.56x

Higher debt load relative to revenue than 38% of similar nonprofits.

2019 filings • 501(c)3 • $1B+ nonprofits • Source year 2019

Net Margin

27th percentile

2.2%

Higher net margin than 27% of similar nonprofits.

2019 filings • 501(c)3 • $1B+ nonprofits • Source year 2019

Top Officer Pay

95th percentile

$8,146,752

Higher top officer pay than 95% of similar nonprofits.

Top officer pay equals 0.2% of source-year revenue.

2019 filings • 501(c)3 • $1B+ nonprofits • Source year 2019

Asset Growth

88th percentile

20%

Faster asset growth than 88% of similar nonprofits.

2019 filings • 501(c)3 • $1B+ nonprofits • Annualized from 2018 to 2019

Revenue Growth

59th percentile

7.3%

Faster revenue growth than 59% of similar nonprofits.

2019 filings • 501(c)3 • $1B+ nonprofits • Annualized from 2018 to 2019

Assets

Up

$3,792,772,543

Up $643,138,325 (+20%) from 2018

Net Assets

Up

$1,603,311,519

Up $426,852,755 (+36%) from 2018

Liabilities

Up

$2,189,461,024

Up $216,285,570 (+11%) from 2018

Revenue

Up

$3,934,196,713

Up $265,979,696 (+7.3%) from 2018

Expenses

Up

$3,849,234,820

Up $252,598,961 (+7.0%) from 2018

Net Income

Up

$84,961,893

Up $13,380,735 (+19%) from 2018

Historical Trend

Balance Sheet Trend

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

$6.0B$4.0B$2.0B$0Assets 2015: $2,499,453,772Liabilities 2015: $2,279,977,484Net Assets 2015: $219,476,2882015Assets 2016: $2,476,442,481Liabilities 2016: $2,217,566,957Net Assets 2016: $258,875,5242016Assets 2017: $2,936,994,088Liabilities 2017: $1,977,299,284Net Assets 2017: $959,694,8042017Assets 2018: $3,149,634,218Liabilities 2018: $1,973,175,454Net Assets 2018: $1,176,458,7642018Assets 2019: $3,792,772,543Liabilities 2019: $2,189,461,024Net Assets 2019: $1,603,311,5192019Assets 2020: $4,274,556,698Liabilities 2020: $2,512,538,677Net Assets 2020: $1,762,018,0212020Assets 2021: $4,296,985,139Liabilities 2021: $2,300,217,175Net Assets 2021: $1,996,767,9642021Assets 2022: $4,232,873,367Liabilities 2022: $2,308,818,187Net Assets 2022: $1,924,055,1802022Assets 2023: $4,334,308,148Liabilities 2023: $2,258,752,324Net Assets 2023: $2,075,555,8242023Assets 2024: $4,469,412,095Liabilities 2024: $2,268,972,694Net Assets 2024: $2,200,439,4012024

Highlighted filing

2019

Assets$3,792,772,543
Liabilities$2,189,461,024
Net Assets$1,603,311,519

Operations Trend

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

$8.0B$6.0B$4.0B$2.0B$0-$2.0BRevenue 2015: $2,686,418,339Expenses 2015: $2,630,056,304Net Income 2015: $56,362,0352015Revenue 2016: $3,118,031,406Expenses 2016: $3,099,529,093Net Income 2016: $18,502,3132016Revenue 2017: $3,364,229,432Expenses 2017: $3,260,772,727Net Income 2017: $103,456,7052017Revenue 2018: $3,668,217,017Expenses 2018: $3,596,635,859Net Income 2018: $71,581,1582018Revenue 2019: $3,934,196,713Expenses 2019: $3,849,234,820Net Income 2019: $84,961,8932019Revenue 2020: $4,005,225,290Expenses 2020: $4,120,225,028Net Income 2020: -$114,999,7382020Revenue 2021: $4,793,642,986Expenses 2021: $4,586,733,862Net Income 2021: $206,909,1242021Revenue 2022: $5,213,963,153Expenses 2022: $5,031,657,157Net Income 2022: $182,305,9962022Revenue 2023: $5,620,337,593Expenses 2023: $5,512,040,788Net Income 2023: $108,296,8052023Revenue 2024: $6,059,666,088Expenses 2024: $5,884,153,492Net Income 2024: $175,512,5962024

Highlighted filing

2019

Revenue$3,934,196,713
Expenses$3,849,234,820
Net Income$84,961,893
Jump To
Filing Snapshot
Filing Period
Jan 1, 2019 to Dec 31, 2019
Signed
Nov 13, 2020
Return Version
2019v5.1
Gross Receipts
$4,855,934,502
Mission and Program Overview

Mission

Highmark health is an interdependent system designed to deliver high quality, accessible, understandable and affordable experiences, outcomes and solutions for our customers.

Promote health & wellness in our communities by providing safe, compassionate, affordable health care to all who seek it.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$1,179,077,451$1,399,440,606▲ $220,363,155
Accounts Receivable$375,128,525$394,247,623▲ $19,119,098
Investments in Publicly Traded Securities$322,559,662$374,680,231▲ $52,120,569
Savings and Temporary Cash Investments$286,596,206$171,756,184▼ $114,840,022
Intangible Assets$130,809,188$138,842,986▲ $8,033,798
Inventories for Sale or Use$50,985,484$53,019,349▲ $2,033,865
Prepaid Expenses and Deferred Charges$42,335,054$46,402,927▲ $4,067,873
Pledges and Grants Receivable$7,557,154$8,371,467▲ $814,313
Other Notes and Loans Receivable, Net$3,185,000$4,311,761▲ $1,126,761
Cash and Non-Interest-Bearing Accounts$562,457$429,074▼ $133,383
Investments Other Securities$151,526$151,526→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Program Related$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$3,149,634,218$3,792,772,543▲ $643,138,325
Other Assets Total$750,686,511$1,201,118,809▲ $450,432,298
Liabilities
Tax Exempt Bond Liabilities$991,068,667$985,858,041▼ $5,210,626
Other Liabilities$492,822,952$709,813,339▲ $216,990,387
Accounts Payable and Accrued Expenses$421,971,839$436,827,517▲ $14,855,678
Deferred Revenue$58,640,534$54,135,934▼ $4,504,600
Mortgage Notes Payable Secured by Investment Property$8,671,462$2,826,193▼ $5,845,269
Grants Payable$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Total Liabilities$1,973,175,454$2,189,461,024▲ $216,285,570
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$885,107,227$1,264,475,481▲ $379,368,254
Net Assets With Donor Restrictions$291,351,537$338,836,038▲ $47,484,501
Total Net Assets Fund Balance$1,176,458,764$1,603,311,519▲ $426,852,755
Total Liabilities and Net Assets / Fund Balance$3,149,634,218$3,792,772,543▲ $643,138,325

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$327,720,459$487,380,251$815,100,710
Buildings$552,512,520$258,864,313$811,376,833
Other Land Buildings$451,865,744$12,102,342$463,968,086
Leasehold Improvements$21,133,260$25,541,324$46,674,584
Land$46,208,623-$46,208,623
Other Assets Org$264,009,032--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2019$316,961,387$11,208,765▲ $45,810,701$15,995,604$356,617,611
2018$338,653,894$10,466,540▼ $15,453,352$16,302,712$316,961,387
2017$314,504,019$2,378,887▲ $36,108,383$13,107,770$338,653,894
2016$308,814,600$6,086,053▲ $15,032,444$14,618,247$314,504,019
2015$323,361,457$11,096,627▼ $9,567,841$16,129,681$308,041,866
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Jeffrey CrudeleDirector & TreasurerFT$630,568$2,827,721$3,458,289
Cynthia HundorfeanDirector & PresidentFT$994,664$2,138,924$3,133,588
Edward Westrick MdPhysicianFT$990,425$826,286$1,816,711
James BenedictDirector/COOFT$729,799$1,086,850$1,816,649
Daniel Altman MDPhysicianFT$847,166$778,208$1,625,374
Donald Whiting MDDirector/CHAIRMANFT$975,357$643,429$1,618,786
Gregory Altman MDPhysicianFT$849,766$662,939$1,512,705
George Eid MdPhysicianFT$893,668$497,904$1,391,572
Alexander Yu MDPhysicianFT$623,354$725,633$1,348,987
Sricharan ChalikondaChief Medical Ops OfficerFT$1,190,391$104,315$1,294,706
Sricharan Chalikonda MdChief Medical Ops Officer-$750,820$543,886$1,294,706
Patrick Demeo MDPhysicianFT$879,561$349,335$1,228,896
Robert White MDChief Medical Info OfficerFT$498,299$672,705$1,171,004
Brian Matthew ParkerDirectorFT$1,029,063$82,177$1,111,240
Brian Matthew Parker MdDirector-$558,086$553,154$1,111,240
Kenyokee CrowellSr. Vice PresidentFT$480,855$606,922$1,087,777
David Parda MDDirectorFT$866,138$184,186$1,050,324
Robert Lupo MDDirectorFT$553,344$444,109$997,453
Ngoc Thai MDPhysicianFT$768,752$204,263$973,015
Venkatraman SrinivasanTrusteeFT$929,104$24,166$953,270
Venkatraman Srinivasan MDTrustee-$624,366$328,904$953,270
G Scott Long MDDirector & PresidentFT$599,091$332,521$931,612
Ross Peterson MDDirectorFT$410,498$483,566$894,064
Srinavas Murali MDPhysicianFT$557,163$264,765$821,928
Jeffrey McGovern MDDirectorFT$544,529$250,602$795,131
Parminder Sharma MDDirectorFT$544,958$247,714$792,672
William Johnjulio MdMedical Director - CINFT$689,738$99,473$789,211
Peter Lund MdDirector-$645,155$137,793$782,948
Claire ZangerleChief Nursing OfficerFT$427,437$327,645$755,082
George J Magovern JrPhysicianFT$698,600$27,202$725,802
George J Magovern Jr MDPhysician-$688,755$37,047$725,802
Madhusudan Menon MDDirectorFT$329,992$380,303$710,295
John Balacko MdDirectorFT$475,921$222,445$698,366
Allan Klapper MDPhysicianFT$593,801$103,592$697,393
Beth Casagranda MDPhysicianFT$543,738$142,937$686,675
Mark Rubino MDDirector & PresidentFT$454,023$222,718$676,741
Susan Manzi MDPhysicianFT$597,969$75,088$673,057
Chong Park MDChief Medical OfficerFT$559,995$88,486$648,481
John Lawrence MDPhysicianFT$543,738$103,479$647,217
Louise UrbanDirector & PresidentFT$453,256$178,203$631,459
Richard ThompsonVice PresidentFT$350,506$273,710$624,216
Denzil RupertChief Operating Officer - AghFT$451,243$129,457$580,700
Daniel Muccio MdDirector-$544,368$31,069$575,437
Jan Silverman MDPhysicianFT$432,037$134,175$566,212
Ronald Andro MDDirector & PresidentFT$428,365$128,118$556,483
Christopher Clark DODirector & PresidentFT$388,890$164,946$553,836
James ValerianoPhysician Chairperson-$354,562$173,164$527,726
James RohrbaughTreasurerFT$348,959$170,766$519,725
Mark NussbaumDirector & Vice PresidentFT$341,904$173,916$515,820
Thomas Campbell MdPhysician ChairpersonFT$273,124$230,089$503,213
Joseph AracriPhysician ChairpersonFT$397,429$76,570$473,999
Jason RoebackDirectorFT$370,597$75,650$446,247
Jeffrey CarlsonDirector-$314,989$125,506$440,495
Allison QuickDirector & PresidentFT$276,355$138,150$414,505
Keith LeJeuneDirector & Vice PresidentFT$307,021$89,971$396,992
Daniel R Casper MDDirectorFT$325,756$56,997$382,753
William EnglertDirector & Pres (until 2/2019)FT$28,201$352,518$380,719
Thomas Corkery DODirectorFT$298,356$74,700$373,056
Paul Gausman DODirectorFT$219,014$153,756$372,770
Jennifer Lewis MDDirectorFT$261,954$103,737$365,691
Rand LevisAssistant TreasurerFT$327,994$32,481$360,475
Mark Leone DODirectorFT$239,529$86,842$326,371
Jeffrey Kim MDDirectorFT$205,855$120,485$326,340
Michael Culig MDDirectorFT$262,657$54,638$317,295
Scott HankinsonDirectorFT$195,322$55,551$250,873
Thomas MurphyDirectorFT$216,303$28,282$244,585
Donald McNaryDirectorFT$204,836$36,419$241,255
Thomas HipkissChief Financial OfficerFT$204,012$36,908$240,920
Vicenta Gaspar-yoo MDirectorFT$233,293$1,716$235,009
Vicenta Gaspar-yoo MdDirector-$194,661$40,348$235,009
Kelly KassabVice President & DirectorFT$217,747$3,509$221,256
Susan Moore MDDirectorFT$141,531$61,426$202,957
Paul Reilly MDDirectorFT$147,949$30,465$178,414
Dawn Karns DODirectorFT$122,680$48,254$170,934
Brad GrosteffonDIR/TREAS/SEC'Y (UNTIL 6/2019)FT$124,084$9,125$133,209
Joseph C GuyauxDirectorPT-$129,824$129,824
Karen SurkalaPresident-$123,972$3,665$127,637
David Celko MDDirectorFT$124,998$1,269$126,267
David Blandino MDBoard ChairPT-$119,612$119,612
David Michael MatterDirectorPT-$114,312$114,312
Susan BarrettAssistant SecretaryFT$94,772$19,358$114,130
Victor RoqueDirectorPT-$113,312$113,312
Alfred MansfieldChief Financial Officer-$98,560-$98,560
David MaloneDirectorPT-$84,024$84,024
Valarie JacksonPresidentFT$47,279$1,670$48,949

Board Members and Trustees

NameTitle
Edward LittleBoard Chair
Joseph MacerelliBoard Chair
Mark WebbBoard Chair
Robin BergstromBoard Chair
Russell LivingstonBoard Chair
Sandra UsherBoard Chair
Edward MarascoDirector & Chairman
Jeffrey SzumigaleDirector & Vice Chair
John Hamels PhDDirector & Vice Chair
Barbara VanKirkDirector
Beth PatriDirector
Carol BucciDirector
Carole PankasDirector
Catherine a CaponiDirector
Charlene NewkirkDirector
Chris ScottDirector
David HolmbergDirector
David Lerberg MDDirector
Deborah SmithDirector
Doris Carson WilliamsDirector
Gene G Finely MdDirector
Gregory GuttingDirector
Helen BaranDirector
James GrahamDirector
Jane Love MDDirector
Jason RossDirector
Jillian RoacheDirector
John FinneganDirector
Joseph HallDirector
Karen HanlonDirector
Kathryn BurnsDirector
LP GuptaDirector
LaDonna Fuge MDDirector
Lauren McAndrewsDirector
Leanne RobertsDirector
Mark PerryDirector
Marne RocheDirector
Michael AlterioDirector
Michael RedlawskDirector
Pamela LapczynskiDirector
R Steven JonesDirector
Richard S BartekDirector
Richard Sullivan MdDirector
Richard TalaricoDirector
Robert CraneDirector
Roberta PattersonDirector
Thomas BerkhouseDirector
Thomas TarpleyDirector
Thomas VankirkDirector
Tony Farah MDDirector
Wendy O'BrienDirector
William RichardsonDirector
Diana HoltDirector & Secretary
Jacqueline BauerDirector & Secretary
Tracey BennettDirector & Treasurer
Brian JacobTrustee
Curt MarinoTrustee
Gene BeckerTrustee
Kevin SniderTrustee
Marilyn PesciTrustee
Robert PacekTrustee

Highest Paid Contractors

ContractorServicesLocationCompensation
Gilbane Building Co Massaro CorpConstruction7 JACKSON WALKWAY, Providence, RI 02903-3694$57,677,402
Massaro CorpConstruction120 DELTA DRIVE, Pittsburgh, PA 15238$40,685,230
Mbm Contracting INCConstruction4999 OLD CLAIRTON RD, Pittsburgh, PA 15236$35,552,439
Ee Austin Son INCConstruction1919 REED ST, Erie, PA 16503$25,596,810
Mascaro Construction Co LPConstruction1720 METROPOLITAN ST, Pittsburgh, PA 15233$14,818,717
Revenue and Support

Revenue Composition

Contributions and Grants
$14,508,408
Program Service Revenue
$3,737,184,630
Investment Income
$50,291,258
Other Revenue
$132,212,417
All Other Contributions
$5,069,012
Change in Net Assets
$84,961,893

Noncash Contribution Practices

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

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Securities Publicly Traded8$170,087Fair Market Value (FMV)
Other Non Cash Contri Table51$30,331Cost
Other Non Cash Contri Table40$28,608Cost
Other Non Cash Contri Table53$26,922Cost
Drugs and Medical Supplies2$19,528Cost
Other Non Cash Contri Table20$8,063Cost
Other Non Cash Contri Table5$6,356Cost
Other Non Cash Contri Table2$5,494Cost
Clothing and Household Goods-$3,470Cost
Other Non Cash Contri Table15$886Cost
Total Noncash Contributions196$299,745-
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$1,956,502,102
Salaries, Compensation, and Employee Benefits$1,891,592,268
Grants and Similar Amounts Paid$1,140,450
Total Fundraising Expense$865,240
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$1,450,494,719$108,200,246$293,764$1,558,988,729
Fees for Services Other$210,038,119$69,418,674$114,671$279,571,464
Other Employee Benefits$193,317,480$17,559,071$8,335$210,884,886
Occupancy$175,705,561$15,197,390-$190,902,951
Depreciation Depletion$131,710,370$14,768,172$78$146,478,620
Payroll Taxes$88,772,437$7,679,420$41,007$96,492,864
All Other Expenses$84,525,069$2,073,898$38,250$86,637,217
Current Officers, Directors, Trustees, and Key Employees$40,904,273$3,106,446$367,081$44,377,800
Office Expenses$29,456,232$3,146,828-$32,603,060
Information Technology$26,875,624$2,186,216$365$29,062,205
Insurance$25,391,490$1,378,473-$26,769,963
Interest$23,163,523$2,573,181-$25,736,704
Other Expenses$13,912,548$1,532,064$75$15,444,687
Travel$5,515,531$508,191$756$6,024,478
Conferences and Meetings$5,006,290$565,151$858$5,572,299
Fees for Services Management-$3,359,084-$3,359,084
Fees for Service Investment Mgmnt Fees-$1,792,947-$1,792,947
Advertising$1,347,830$129,327-$1,477,157
Fees for Services Legal$154,044$1,202,777-$1,356,821
Grants to Domestic Orgs$996,922--$996,922
Fees for Services Accounting$390$973,409-$973,799
Fees for Services Lobbying$311,641--$311,641
Grants to Domestic Individuals$142,250--$142,250
Foreign Grants$1,278--$1,278
Pension Plan Contributions$-17,556,009$-1,596,002-$-19,152,011
Total Functional Expenses$3,510,912,538$337,457,042$865,240$3,849,234,820
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
American Heart Association IncDallas, TX501(c)(3)Program Support$68,250
Prevention Point PittsburghPittsburgh, PA501(c)(3)Program Support$55,000
Children's Miracle NetworkHershey, PA501(c)(3)Program Support$52,544
Jdrf InternationalNew York, NY501(c)(3)Program Support$52,500
Westfield Memorial Hosp Foundation IncWestfield, PA501(c)(3)Program Support$50,000
Pittsburgh Three Rivers Marathon IncPittsburgh, PA501(c)(3)Program Support$42,000
American Cancer Society IncAtlanta, GA501(c)(3)Program Support$22,500
Carnegie InstitutePittsburgh, PA501(c)(3)Program Support$20,000
American Diabetes Association IncArlington, VA501(c)(3)Program Support$15,000
Cultural Arts Festivals and Events of ErieErie, PA501(c)(3)Program Support$15,000
Epilepsy Foundation of Western PaPittsburgh, PA501(c)(3)Program Support$15,000
Monroeville Area Chamber of CommerceMonroeville, PA501(c)(6)Program Support$15,000
March of Dimes IncWhite Plains, NY501(c)(3)Program Support$14,000
Northside Leadership ConferencePittsburgh, PA501(c)(3)Program Support$12,500
A Glimmer of Hope IncWexford, PA501(c)(3)Program Support$11,250
Monroeville Foundation IncMonroeville, PA501(c)(3)Program Support$11,000
Arthritis Foundation IncAtlanta, GA501(c)(3)Program Support$10,500
Bemus Bay Pops IncBemus Point, NY501(c)(3)Program Support$10,000
Community Liver AlliancePittsburgh, PA501(c)(3)Program Support$10,000
Delta Foundation of Pittsburgh IncPittsburgh, PA501(c)(3)Program Support$10,000
National Down Syndrome CongressRoswell, GA501(c)(3)Program Support$10,000
National Ovarian Cancer Coalition IncDallas, TX501(c)(3)Program Support$10,000
Seneca Valley School DistrictHarmony, PAGovernmentProgram Support$10,000
The Flagship Niagara LeagueErie, PA501(c)(3)Program Support$10,000
Pittsburgh North Regional Chamber IncWexford, PA501(c)(6)Program Support$9,550
Public Broadcasting of Nw Pa IncErie, PA501(c)(3)Program Support$9,000
Avonworth School DistrictPittsburgh, PAGovernmentProgram Support$8,300
National Kidney Foundation IncNew York, NY501(c)(3)Program Support$8,000
Dr Gertrude a Barber Foundation IncErie, PA501(c)(3)Program Support$7,500
North Hills School DistrictPittsburgh, PAGovernmentProgram Support$7,500
United WayPittsburgh, PA501(c)(3)Program Support$7,240
North Side Chamber of CommercePittsburgh, PA501(c)(6)Program Support$7,000
American Lung AssociationNew York, NY501(c)(3)Program Support$6,500
Leukemia & Lymphoma Society IncRye Brook, NY501(c)(3)Program Support$6,500
Cribs for KidsPittsburgh, PA501(c)(3)Program Support$6,000
Crohns & Colitis Foundation IncNew York, NY501(c)(3)Program Support$5,500

International Summary

Spending
$47,171

International Compliance

Foreign grant records maintained
Yes
Activity in boycott countries
No
Foreign corporation ownership
No
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
No
Transfers to foreign corporations
No

International Activities

RegionActivityServicesOfficesEmployeesSpending
North AmericaProgram ServicesConferences--$31,513
East Asia and the PacificProgram ServicesConferences--$11,281
Europe (Including Iceland and Greenland)Program ServicesConferences--$4,377
Fundraising, Events, and Gaming
Fundraising activities
Yes
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Fundraising Direct Expenses$1,092,738
Fundraising Gross Income$369,302
Gaming Direct Expenses$0
Gaming Gross Income$0
Professional Fundraising Fees$0

Fundraising Events

EventGross ReceiptsGross RevenueDirect ExpensesNet Income
Golf Events$707,269$144,099$55,151$88,948
Ahn Gala$1,733,407$130,710$437,052$-306,342
Total Events$2,925,968$369,302$1,092,738$-723,436
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
West Ridge Medical Partners35% CONTROLLED ENTITYSee Schedule L, Part VNo$2,650,213
Westminster Place Partnership35% CONTROLLED ENTITYSee Schedule L, Part VNo$857,979
Quick Med Claims35% CONTROLLED ENTITYSee Schedule L, Part VNo$397,322
Caitlin ClarkFamily of Board MemberEmploymentNo$295,430
Peter KroemerFamily of Board MemberEmploymentNo$161,059
Mary Beth KroemerFamily of Board MemberEmploymentNo$91,249
Christine MaffeoFamily of Board MemberEmploymentNo$42,645
Elizabeth KroemerFamily of Board MemberEmploymentNo$16,498

Loans and Receivables

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

Other Reported Liabilities

LiabilityAmount
Pension Funding$288,580,094
Lease Liabilities$272,807,057
Medical Malpractice Liability$99,396,346
Other Liabilities$49,029,842

Bond Issues

BondIssuerIssuedIssue PricePurpose
AAllegheny County Hospital Development Authority2018-08-29$1,000,004,532New constructions/refund prior iss

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
A$1,002,760,363$806,545,185$0$0

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
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 35% controlled entity
Yes
Business relationship with family members
Yes
Business relationship with organization members
No
Material changes to governing documents
No
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
Filing and Contact Details

Filer

Filer Name
Highmark Health Group
EIN
82-1406555
In Care Of
% MATT PETERSON
Phone
4125446668
Address
120 Fifth Avenue FAPHM-192B, Pittsburgh, PA 15222

Signing Officer

Name
Saurab Tripathi
Title
Treasurer
Phone
4125446668
Signed
2020-11-13
Discuss with paid preparer
Yes

Organization Details

Principal Officer
David Holmberg
Voting Board Members
210
Independent Board Members
88
Employees
26,671
Volunteers
1,526

Preparer

Firm
PricewaterhouseCoopers LLP
Address
2001 MARKET ST SUITE 1800, PHILADELPHIA, PA 19103
Preparer
Eric M Mcneil
Phone
2673303000
Supplemental Narrative

Additional Explanations

Introduction to Ahn

ALLEGHENY HEALTH NETWORK (AHN), BASED IN PITTSBURGH, PENNSYLVANIA, IS A TAX-EXEMPT, PATIENT-CENTERED AND PHYSICIAN-LED ACADEMIC HEALTHCARE SYSTEM THAT PROVIDES CHARITABLE CARE AND HIGH-QUALITY, COMPREHENSIVE HEALTH CARE SERVICES TO PATIENTS FROM WESTERN PENNSYLVANIA AND THE ADJACENT REGIONS OF OHIO, WEST VIRGINIA, NEW YORK AND MARYLAND. AHN COMPRISES 12 HOSPITALS AND MORE THAN 250 HEALTHCARE SITES, INCLUDING FIVE HEALTH + WELLNESS PAVILIONS, SURGICAL CENTERS AND OUTPATIENT CLINICS; A RESEARCH INSTITUTE; MORE THAN 2,400 EMPLOYED AND AFFILIATED PHYSICIANS; APPROXIMATELY 21,000 TOTAL EMPLOYEES; 2,000 VOLUNTEERS; A GROUP PURCHASING ORGANIZATION; AND A COMPLETE SPECTRUM OF HOME AND COMMUNITY BASED HEALTHCARE SERVICES. THE NETWORKS HOSPITALS INCLUDE ONE QUATERNARY ACADEMIC MEDICAL CENTER (ALLEGHENY GENERAL HOSPITAL IN PITTSBURGH), SEVEN TERTIARY/COMMUNITY HOSPITALS THAT PROVIDE A WIDE ARRAY OF GENERAL AND ADVANCED CLINICAL SERVICES (ALLEGHENY VALLEY HOSPITAL, NATRONA HEIGHTS, PA; CANONSBURG HOSPITAL, CANONSBURG, PA; FORBES HOSPITAL, MONROEVILLE, PA; GROVE CITY HOSPITAL, GROVE CITY, PA; JEFFERSON HOSPITAL, JEFFERSON HILLS, PA; SAINT VINCENT HOSPITAL, ERIE, PA; WEST PENN HOSPITAL, PITTSBURGH, PA; AND WESTFIELD MEMORIAL HOSPITAL, WESTFIELD, NY.), AND THREE NEIGHBORHOOD HOSPITALS (AHN HEMPFIELD IN WESTMORELAND COUNTY; AHN McCANDLESS IN ALLEGHENY COUNTY; AND AHN BRENTWOOD IN ALLEGHENY COUNTY). AHN WAS ESTABLISHED IN 2013, BUT ITS MEMBER HOSPITALS SHARE LEGACIES OF CHARITABLE CARE THAT DATE BACK 170 YEARS (WEST PENN HOSPITAL WAS CHARTERED IN 1848). AHN WAS FORMED TO ACT AS THE PARENT COMPANY OF THE HOSPITALS OF THE WEST PENN ALLEGHENY HEALTH SYSTEM, INC. (WPAHS), AS WELL AS JEFFERSON HOSPITAL, SAINT VINCENT HOSPITAL AND WESTFIELD MEMORIAL HOSPITAL. HIGHMARK HEALTH (HH), IN TURN, SERVES AS THE ULTIMATE PARENT OF AHN AND ITS AFFILIATES. IN 2019, THE HOSPITALS AND CLINICS OF AHN TOGETHER REPORTED MORE THAN 120,000 PATIENT DISCHARGES AND OBSERVATIONS, LOGGED NEARLY 300,000 EMERGENCY ROOM VISITS, AND DELIVERED MORE THAN 8,000 BABIES; ITS PHYSICIANS PERFORMED MORE THAN 100,000 SURGICAL PROCEDURES. ANCHORED BY NATIONALLY AND INTERNATIONALLY RECOGNIZED CLINICAL AND RESEARCH PROGRAMS IN THE AREAS OF BONE AND JOINT CARE, SPORTS MEDICINE, CARDIOVASCULAR DISEASE, NEUROSURGERY AND NEUROLOGY, WOMENS HEALTH, CANCER, EMERGENCY MEDICINE, BARIATRIC AND METABOLIC DISEASE, AHN PROVIDES A COMPLETE SPECTRUM OF ADVANCED DIAGNOSTIC, MEDICAL AND SURGICAL CARE ACROSS ALL MEDICAL SPECIALTIES, INCLUDING PRIMARY CARE, TRAUMA AND BURN CARE, GENERAL SURGERY, DIABETES, AUTOIMMUNE DISEASES, CRITICAL CARE, DIGESTIVE DISEASES, MENS HEALTH/UROLOGY, LUNG AND ESOPHAGEAL DISEASES AND REHABILITATION SERVICES. AHN ALSO PLAYS A PIVOTAL ROLE IN THE TRAINING OF FUTURE GENERATIONS OF HEALTHCARE PROFESSIONALS BY OFFERING FOUR DOZEN GRADUATE MEDICAL PROGRAMS, AND BY MAINTAINING AFFILIATIONS WITH THREE MEDICAL SCHOOLS AND TWO NURSING SCHOOLS. THE NETWORKS HOSPITALS SERVE AS CLINICAL CAMPUSES FOR THE MEDICAL SCHOOLS OF DREXEL UNIVERSITY, TEMPLE UNIVERSITY AND THE LAKE ERIE COLLEGE OF OSTEOPATHIC MEDICINE (LECOM). NEARLY 250 STUDENTS ARE ENROLLED EACH YEAR IN NURSING PROGRAMS AT THE WEST PENN HOSPITAL SCHOOL OF NURSING AND THE CITIZENS SCHOOL OF NURSING IN NATRONA HEIGHTS, AND ABOUT 450 MEDICAL RESIDENTS AND FELLOWS RECEIVE ADVANCED TRAINING ON STAFF AT AHN HOSPITALS. AHNS PLAN IS TO TRANSFORM THE CURRENT MODEL OF HEALTH CARE DELIVERY IN WESTERN PENNSYLVANIA BY ENCOURAGING HEALTH CARE PROVIDERS WITHIN AHN, WHETHER HOSPITALS OR PHYSICIANS, TO USE THE MOST COST-EFFECTIVE VENUE FOR CARE, ADHERE TO THE HIGHEST, EVIDENCE-BASED STANDARDS OF CARE, AND DELIVER SUPERIOR OUTCOMES BY REDUCING UNNECESSARY READMISSIONS AND HEALTHCARE ASSOCIATED COMPLICATIONS. PROVIDING COST-EFFICIENT, CONVENIENTLY ACCESSED CARE DELIVERS VALUE AND BENEFIT TO LOCAL COMMUNITIES, PARTNER HEALTH CARRIERS, AREA BUSINESSES, AND MOST OF ALL TO AHNS PATIENTS. THE GOAL OF AHN IS TO PROMOTE HEALTH AND WELLNESS IN ITS COMMUNITIE

Community Benefits

Ahn and its tax-exempt subsidiary facilities support a broad array of charitable services to the community by providing subsidized health care; sponsoring community events (health fairs, cancer screenings, walks, educational seminars; support groups); and making charitable donations. The services benefit children and teens, adults and seniors, patients and their families, and the community at large. The following is not a total account of all of ahns charitable activities, but a sampling of ahns many contributions to the community, and its commitment to provide a wide range of quality health services to diverse communities, and to all who seek ahns care: ahn positive health clinic: the positive health clinic (phc) is a comprehensive hiv primary care clinic providing state-of-the-art care to hiv-positive persons. Its support staff includes physicians, nurses, medical assistants, social workers, behavioral health therapists, psychiatrists and patient advocates. The team treats more than 750 patients and has extensive experience with all aspects of hiv management, providing a wide range of primary and specialized hiv care, regardless of an individual's medical insurance coverage or ability to pay. Services and programs include: comprehensive hiv care; rapid hiv testing and counseling and partner testing; medication adherence counseling and pharmacy support; gynecologic care; nutritional assessment and counseling by a registered dietitian; treatment for persons co-infected with hiv and hepatitis c; smoking cessation programs; mental health assessment, counseling and psychiatric support; and case-management for non-medical needs. The staff assists with financial or social issues that may interfere with the provision of medical care. Ahn also provides significant financial support to a regional aids-prevention partnership whose goal is to end new hiv infections in allegheny county. Alexis joy dachille center for perinatal mental health: in 2018, ahn opened the alexis joy dachille center for perinatal mental health at west penn hospital, an innovative new facility that offers women with pregnancy-related depression access to a spectrum of family-focused care options under one roof. The 7,300-square-foot, $2.5 million center is designed so that mothers can stay with their babies while undergoing treatment. The facility houses rooms for individual therapy as well as space for intensive outpatient care - a three-hours-daily, three-day-a-week program that focuses on group therapy, mother-child bonding and complementary modalities for stress relief, such as yoga and meditation. The center will also offer child care services for older children, addressing a major barrier to care for women. Aunt bertha: allegheny health network, highmark inc., and gateway health partnered with aunt bertha to provide a free resource tool for individuals facing food, housing or other crises during these difficult times. The aunt bertha directory contains geographic-specific information on social service agencies and community benefit organizations (cbos) across the united states. Online users will only need to enter their zip code, followed by application of filters to encompass their specific needs, to access local options. The service is free and has no income constraints for users. Aunt berthas mission is to connect all people in need and the programs that serve them with dignity and ease. The online tool allows users to find nearby cbos, making it easier for individuals to access social service options in their neighborhoods. Thanks to aunt bertha, non-profits have an easier time coordinating their efforts, while healthcare providers can integrate social care into their work more appropriately. Braddock urgent care: ahn and hh operate the ahn urgent care center, subsidizing health care access for the underserved braddock, pa., community, by providing care on a charitable basis and serving a significant share of medicare and medicaid patients. With the hel

FRONT DOOR INITIATIVE: AHN'S JEFFERSON HOSPITAL IS UTILIZING A

$1 MILLION, FOUR-YEAR GRANT TO ESTABLISH THE "FRONT DOOR INITIATIVE FOR EMERGENCY MEDICINE," A COMPREHENSIVE EFFORT TO BETTER UNDERSTAND AND ADDRESS THE SOCIAL DETERMINANTS OF HEALTH AMONG PATIENTS WHO VISIT THE HOSPITALS EMERGENCY DEPARTMENT. PATIENTS WHO FREQUENTLY UTILIZE EMERGENCY DEPARTMENT OFTEN DO SO BECAUSE OF CHALLENGES FACED IN THEIR SOCIAL ENVIRONMENT. JEFFERSON HOSPITAL WILL APPLY THE GRANT TOWARD: EXTENSIVE ASSESSMENT OF COMMUNITY NEEDS RELATED TO ITS EMERGENCY SERVICES; IDENTIFICATION OF MODEL PRACTICES FOR SOCIAL EMERGENCY MEDICINE; WORKING WITH COMMUNITY PARTNERS ON THE DEVELOPMENT OF A FRONT DOOR VISION AND PLAN; IMPLEMENTATION OF A STRONG DATA SYSTEM; EDUCATIONAL INTERVENTIONS FOR STAFF; AND DEVELOPMENT OF AN INTEGRATED SUPPORT NETWORK AND ENSURING PATIENTS ARE PROPERLY CONNECTED TO IT. HEALTHY FOOD CENTER: A FIRST OF ITS KIND IN THE REGION, AHNS HEALTHY FOOD CENTERS ACT AS A "FOOD PHARMACY" WHERE PATIENTS WHO LACK ACCESS TO FOOD CAN RECEIVE NUTRITIOUS FOOD ITEMS, EDUCATION ON DISEASE-SPECIFIC DIETS, AND ADDITIONAL SERVICES FOR OTHER SOCIAL CHALLENGES THEY MIGHT FACE. ACCORDING TO THE GREATER PITTSBURGH COMMUNITY FOOD BANK, A PARTNER OF THE HEALTHY FOOD CENTER, FOOD INSECURITY AFFECTS MORE THAN 350,000 PEOPLE OR ONE IN SEVEN ADULTS IN THE PITTSBURGH REGION. FOOD INSECURITY REFERS TO A LACK OF AVAILABLE FINANCIAL RESOURCES FOR NUTRITIONALLY ADEQUATE FOOD SUCH AS FRUITS, VEGETABLES, LEAN PROTEINS AND WHOLE GRAINS. THE HEALTHY FOOD CENTER PRIMARILY SERVES PATIENTS WITH DIABETES WHO ARE SCREENED BY THEIR DOCTOR AS BEING FOOD INSECURE. PATIENTS RECEIVE A REFERRAL TO THE HEALTHY FOOD CENTER AT WEST PENN AND ALLEGHENY GENERAL HOSPITALS WHERE THEY INITIALLY MEET WITH AN ONSITE DIETITIAN TO DISCUSS THEIR DIETARY NEEDS BASED ON THEIR CONDITION. AFTER SHOPPING AT THE CENTER FOR THE RECOMMENDED FOOD ITEMS, PATIENTS GO HOME WITH TWO TO THREE DAYS WORTH OF FOOD FOR ALL MEMBERS OF THEIR HOUSEHOLD. THE HEALTHY FOOD CENTER OPENED IN 2018 AT WPH AND EXPANDED TO AGH in 2020. IMMIGRANT HEALTH PROGRAM: THE IMMIGRANT HEALTH PROGRAM AT AHN, PART OF THE AHN CENTER FOR INCLUSION HEALTH, WAS AWARDED A $250,000 GRANT FROM THE JEWISH HEALTHCARE FOUNDATION IN SUPPORT OF ITS EFFORTS TO DELIVER A NEW COMMUNITY HEALTH MODEL AIMED AT MEETING THE HEALTH CARE NEEDS OF IMMIGRANT WOMEN IN OUR REGION. FROM 2005-2015, THE NUMBER OF FOREIGN-BORN AREA RESIDENTS GREW FROM 48,266 TO 72,265, MORE THAN HALF OF WHOM ARE WOMEN. OVER THE NEXT THREE YEARS, AHNS CENTER FOR INCLUSION HEALTH AND MORE THAN A DOZEN LOCAL COMMUNITY HEALTH AND SOCIAL SERVICE PROVIDERS WILL CONVENE TO DELIVER THE "IMMIGRANT WOMEN-COMMUNITY HEALTH MODEL" AIMED AT PROVIDING IMMIGRANT WOMEN ACCESS TO CULTURALLY- COMPETENT AND QUALITY PERINATAL SERVICES, AS WELL AS OTHER WOMENS HEALTH AND SOCIAL SERVICES. OPEN HEART SURGERY OBSERVATION: SINCE 2008, HIGH SCHOOL STUDENTS FROM WESTERN PENNSYLVANIA, WEST VIRGINIA AND OHIO HAVE BEEN INVITED TO OBSERVE AHNS CARDIOVASCULAR SURGEONS IN ACTION THROUGH THE CARDIOVASCULAR INSTITUTES (CVI) OPEN HEART SURGERY OBSERVATION PROGRAM. THE PROGRAM, WHICH HAS HOSTED MORE THAN 15,000 AREA STUDENTS FROM DOZENS OF SCHOOLS, IS SUPPORTED BY TWO PART-TIME POSITIONS, AND IS PART OF AHNS AND THE CVIS COMMITMENT TO COMMUNITY EDUCATION AND INSPIRING FUTURE GENERATIONS OF HEALTHCARE PROFESSIONALS. OPIOIDS AND ADDICTION MEDICINE: OVER THE LAST SEVERAL YEARS, AHN HAS TAKEN NUMEROUS STEPS TO CURB PAINKILLER MISUSE AND ADDICTION, OPIOID USE DISORDER, AND OVERDOSE DEATHS RELATED TO FENTANYL, CARFENTANIL, AND OTHER SYNTHETIC OPIATES. IN 2019, AHN RECEIVED A $5 MILLION FEDERAL GRANT FROM THE SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION (SAMHSA) TO WILL SUPPORT THE IMPLEMENTATION AND EVALUATION OF ENHANCED SUBSTANCE USE SCREENING AND INTERVENTION SERVICES IN THE PRIMARY CARE SETTING. ADDITIONALLY, AHN AND GATEWAY HEALTH HAVE PARTNERED TO LAUNCH AN ENHANCED PAIN MANAGEMENT PROGRAM WHICH TAKES A NOVEL, HOLISTIC APPROACH TO TREATING A PATIENT'S PAIN WITHOUT OPIOID

Hospital Profiles and Health System Components

ALLEGHENY GENERAL HOSPITAL: FOUNDED IN 1885, ALLEGHENY GENERAL HOSPITAL (AGH) IS AHNS FLAGSHIP HOSPITAL, SERVING AS AHNS PRIMARY TEACHING HOSPITAL, ITS PREMIER QUATERNARY CARE FACILITY, OFFERING HIGHLY ADVANCED SPECIALTIES SUCH AS ORGAN TRANSPLANTATION, NEUROSURGERY, SURGICAL ONCOLOGY AND CARDIOVASCULAR SURGERY. LOCATED IN PITTSBURGHS NORTH SIDE, AGH IS ALSO A LEVEL I SHOCK TRAUMA CENTER, AND ITS LIFEFLIGHT AEROMEDICAL SERVICE WAS THE FIRST TO FLY IN THE NORTHEASTERN UNITED STATES. ALLEGHENY VALLEY HOSPITAL: ALLEGHENY VALLEY HOSPITAL (AVH) HAS SERVED NATRONA HEIGHTS, PA., AND THE SURROUNDING COMMUNITY FOR OVER 100 YEARS. AVH PROVIDES EMERGENCY CARE, SURGICAL CARE, REHABILITATION CARE AND OTHER QUALITY HEALTH CARE SERVICES FOR ITS PATIENTS. CANONSBURG HOSPITAL: SINCE 1904, CANONSBURG HOSPITAL (CH), BASED IN CANONSBURG, PA., HAS SERVED THE COMMUNITIES OF NORTHERN WASHINGTON AND SOUTHERN ALLEGHENY COUNTIES, PROVIDING QUALITY MEDICAL CARE AND IMPROVING THE HEALTH AND WELL-BEING OF ITS PATIENTS. FORBES HOSPITAL: SINCE 1978, MONROEVILLES FORBES HOSPITAL (FH) HAS BEEN PROVIDING HIGH-QUALITY CARE FOR THE COMMUNITIES OF EASTERN ALLEGHENY AND WESTMORELAND COUNTIES. FORBES FEATURES A LEVEL II TRAUMA CENTER, A TOP-RATED CARDIOVASCULAR SURGERY PROGRAM AND A COMPREHENSIVE OBSTETRICS AND GYNECOLOGY SERVICE AMONG ITS MANY CLINICAL OFFERINGS. GROVE CITY HOSPITAL: GROVE CITY MEDICAL CENTER, NOW AHN GROVE CITY, WAS CREATED IN 1978, THROUGH THE MERGER OF TWO EXISTING GROVE CITY, PA., HOSPITALS. TODAY, THE HOSPITAL OPERATES SIX OUTPATIENT CLINICS AND LAB SITES THROUGHOUT ITS SERVICE FOOTPRINT. IT PROVIDES CANCER CARE, CARDIAC CARE, GENERAL SURGERY, LAB SERVICES, HOME HEALTH AND DIAGNOSTIC IMAGING, AMONG OTHER CLINICAL SERVICES. JEFFERSON HOSPITAL: JEFFERSON HOSPITAL (JH) WAS ORGANIZED IN 1973. LOCATED JUST SOUTH OF PITTSBURGH, THE HOSPITAL PROVIDES A WIDE SPECTRUM OF HIGH QUALITY HEALTH CARE SERVICES, FROM EMERGENCY CARE AND INTENSIVE CARE, to COMPREHENSIVE SURGICAL PROGRAMS AND REHABILITATION, cancer care and comprehensive LABOR AND DELIVERY services including a level II neonatal intensive care unit. SAINT VINCENT HOSPITAL: SAINT VINCENT HOSPITAL (SVH) PROVIDES INPATIENT, OUTPATIENT AND EMERGENCY CARE SERVICES FOR RESIDENTS OF NORTHWESTERN PENNSYLVANIA AND ADJACENT AREAS OF NEW YORK AND OHIO. FOUNDED BY THE SISTERS OF ST. JOSEPH IN 1875, SVH CONTINUES TO EXEMPLIFY THE VALUES OF THE SISTERS IN PROVIDING COMPASSIONATE CARE TO ALL. ADDITIONALLY, SVHS FOUR-BED SATELLITE FACILITY, WESTFIELD MEMORIAL HOSPITAL, HAS PROVIDED HIGH QUALITY HEALTH CARE TO RESIDENTS OF WESTERN NEW YORK FOR MORE THAN HALF A CENTURY. IN 2019, THE HOSPITAL OPENED A NEW COMPREHENSIVE CANCER CENTER, A NEW, GREATLY EXPANDED EMERGENCY DEPARTMENT, NEW OPERATING ROOM SUITE AND A SECOND HEALTH & WELLNESS PAVILION ON THE CITYS WESTSIDE. WEST PENN HOSPITAL: SERVING THE BLOOMFIELD AREA OF PITTSBURGH AND ITS SURROUNDING COMMUNITIES SINCE 1848, WEST PENN HOSPITAL (WPH) IS AN ACADEMIC MEDICAL CENTER WITH PRIVATE ACUTE-CARE PATIENT ROOMS AND ONE OF PENNSYLVANIAS MOST ADVANCED OBSTETRICAL AND NEWBORN CARE PROGRAMS, INCLUDING A LEVEL 3 NEONATAL INTENSIVE CARE UNIT. WPH HAS A REPUTATION FOR OUTSTANDING CLINICAL CARE AND NURSING EXCELLENCE; AND WAS THE FIRST HOSPITAL IN WESTERN PENNSYLVANIA TO EARN MAGNET RECOGNITION STATUS FROM THE AMERICAN NURSES CREDENTIALING CENTER (ANCC). WPH ALSO IS HOME TO THE WEST PENN BURN CENTER, THE ONLY FACILITY OF ITS KIND IN THE REGION CERTIFIED TO TREAT BOTH PEDIATRIC AND ADULT BURN PATIENTS. IN 2019, WPH WAS NAMED ONE OF THE NATIONS TOP 100 HOSPITALS BY IBM WATSON.

OUTPATIENT CARE FACILITIES: IN ADDITION TO ITS HUNDREDS OF

Clinical offices, ahn operates five large, multi-specialty health + wellness pavilions (two in allegheny county, one in washington county, and two in erie county), as well as several urgent care clinics and surgery centers. Allegheny health network research institute: ahns research institute offers access to new drug therapies, hones revolutionary surgical procedures, and has advanced expertise with innovative devices and wearable technologies that help reduce the impact of chronic disease. The institute partners with industry, government, academia, and health systems across the region to work toward a series of common goals: discovering cures, developing the next clinical "best practices" improving the health of patients and advancing the science of medicine. Physicians and scientists at ahn are often on the cutting edge of advanced treatments and new technologies. Innovative medical research across all of the networks programs is a critical component of the organizations mission. The networks research institute coordinates private and federally funded interdisciplinary programs designed to better understand, treat and prevent disease, and the networks hospitals are frequently involved in clinical trials of breast, prostate and bowel cancer, burn and traumatic injuries, gene therapy, cardiovascular disease, leukemia and lymphoma, autoimmune diseases, neurological diseases, and more. The network is currently home to hundreds of active clinical research trials. Allegheny clinic: the allegheny clinic is one of western pennsylvanias largest physician groups. Since the formation of ahn, ahn has added hundreds of primary care physicians, specialists and surgeons to the allegheny clinic. Those physicians and administrative staff support dozens of specialty service lines and clinical institutes, including the bariatric and metabolic institute, the cancer institute, the cardiovascular institute, the esophageal and lung institute, the neuroscience institute, the orthopaedic institute and the transplant institute. Clinically integrated network (cin): ahns cin is a regional partnership of independent and ahn-affiliated physicians. The cin, known as "physician partners of western pa," coordinates care for nearly a quarter-million patients across various medical specialties and care sites by setting common goals in the areas of outcomes, value, and evidenced-based clinical models. The cin helps physicians and practices prepare for current and future challenges in the areas of technology infrastructure, government regulations, and payment reform. Clinical goals and financial incentives are established through a physician-led governance structure. Foundations: in addition to the aforementioned entities, ahn also includes a number of affiliated philanthropic organizations: the alle-kiski medical center trust, forbes health foundation, suburban health foundation, saint vincent foundation for health and human services, and the western pennsylvania hospital foundation. Key institutes and services lines allegheny health network cancer institute: ahns cancer institute includes more than 50 cancer institute clinics, two dozen separate clinical locations and a multidisciplinary team of more than 200 physicians. The institute treats 10,000 patients annually in western pennsylvania, erie, west virginia, and ohio. In 2019, ahn opened new community cancer centers in butler, beaver, allegheny, and erie counties. Ahn also plans to open a new academic cancer institute and cancer genome laboratory on the agh campus in 2020. Additionally, ahn collaborates with johns hopkins kimmel cancer center, to offer more stream-lined access to clinical trials and provide additional treatment options and second opinions for patients with rare and complex cancers, among other benefits.

ALLEGHENY HEALTH NETWORK CARDIOVASCULAR INSTITUTE: ON THE

Frontier of advanced specialty heart care, the allegheny health network cardiovascular institute (cvi) is one of the premier cardiac programs in the country, providing superior state-of-the-art care for patients with heart disease and access to western pennsylvania's most comprehensive, multidisciplinary team of specialists and innovative therapies, including many available only through advanced clinical trials. The physicians of the ahn cvis seven hospitals and 20 outpatient pittsburgh- and erie-area locations have helped to pioneer the use of the latest generation of implantable cardioverter-defibrillators; were among the first in the nation to perform trans-catheter aortic valve replacement (tavr), replacing defective aortic heart valves via a minimally invasive catheter procedure; introduced new treatments to repair defective mitral valves via robot-assisted minimally invasive surgery; and played an instrumental role in the development of left ventricular assist devices (lvad), a mechanical pump that is surgically implanted to assist a weakened heart muscle. Currently, the physicians at the cardiovascular institute are conducting research that leads to better ways to prevent, find and treat heart disease. Additionally, ahns womens heart center, the first heart center of its kind in allegheny county, treats complex cardiovascular conditions for adult women of all ages. Allegheny health network medicine institute: ahns medicine institutes houses the one-of-a-kind autoimmunity institute, which opened a new facility in 2018 that combines multispecialty care with cutting-edge research, patient education and advocacy to advance the treatment of autoimmune diseases and accelerate discovery of a cure for more than 100 different disease types. The ahn autoimmunity institute hosts four "centers of excellence" for the treatment of common autoimmune diseases including lupus, rheumatoid arthritis, inflammatory bowel disease and celiac disease. The institute includes physicians from an array of clinical subspecialties such as rheumatology, allergy and clinical immunology, pulmonary, dermatology, gastroenterology, nephrology, endocrinology, cardiology and infusion therapy. The medicine institute also includes specialty programs dedicated to dermatology, dentistry, infectious disease, nephrology, and inclusion health. Allegheny health network neuroscience institute: ahns neuroscience institute is a national leader in providing innovative, expert care for complex brain, spine, or neurological conditions. Ahns renowned neurosurgeons have developed groundbreaking surgeries and treatment advancements that lead to improved care for patients experiencing the symptoms of parkinsons disease, trigeminal neuralgia, stroke complications, congenital spinal conditions, and more. Additionally, agh has earned a "comprehensive stroke center" designation, the highest distinction of stroke care awarded by the american heart associations joint commission. Ahns neuroscience program includes renowned experts in the subspecialties of neurology, neuro-otology, neuroradiology, neuro-critical care, and neurosurgery, and the institute has been identified as a neurosciences center of excellence and a spine center of excellence, enabling ahn and agh to serve as a national and international referral center for treatment of all types of neurological conditions. Allegheny health network orthopaedic institute: the orthopaedic institutes multidisciplinary team of surgeons, physicians, nurses, physician assistants and rehabilitation specialists work together to develop a coordinated treatment plan specifically designed for each patient, specializing in pediatric orthopaedics, joint replacement, orthopaedic surgery, spinal surgery, and sports medicine. Together, ahn and hh have made significant investments in ahns orthopaedic capabilities and infrastructure, including the opening of the ahn sports complex at cool springs, a large multi-sport facility specializing in orthop

Accomplishments

Over the years, ahn has been recognized for its advanced technologies, clinical quality, and the depth and breadth of its professional and clinical programming. In 2019, it received the following awards, recognitions and accreditations, among others: the american stroke association recognized ahn hospitals for leading stroke care. The cardiothoracic intensive care unit at forbes hospital was one of two pa hospitals to earn national three-year beacon award for excellence ahns dr. Susan manzi was honored at the art rooney awards event for outstanding contributions to the community. Ahn hospitals earned 17 blue distinction center designations for high quality care. Aghs heart transplant programs 3-year survival was rated tops in state, and seventh nationally. Ahns allegheny valley hospital was awarded advanced certification as a primary stroke center. Ahn's robert white, md, named a "cio of the year" by pittsburgh technology council. West penn hospital was named one of the nation's 100 top hospitals by ibm watson. Ahn president and ceo cynthia hundorfean was named to modern healthcares top 25 women leaders list.

Voting Members of Governing Board

Form 990, part i, line 3 the number of voting members of the governing body reflected in irs form 990, page 1, part i, line 3 will not correspond to the actual number of voting members listed in irs form 990, page 7, part vii because certain voting members of the governing body are voting members for more than one of the organizations included in this group filing. In these instances, the individual is counted in part i, line 3 in accordance with the number of organizations for which they are voting members but will only be listed in part vii once.

Contributions, Grants, and Similar Amounts Received

Form 990, part i, line 8 pursuant to treasury regulation section 1 6033-2(d)(5) the sponsoring entity of highmark health group, highmark health, has elected to report information about contributions, grants, and similar amounts received, information about officers, directors, trustees, and key employees, certain other highly paid employees, certain independent contractors on a consolidated basis along with all members of the highmark health group in the highmark health group return.

Business Relationships

FORM 990, PART VI, SECTION A, LINE 2 THE FOLLOWING BOARD MEMBERS HAVE A BUSINESS RELATIONSHIP THROUGH THEIR CONNECTION OF SERVING TOGETHER ON THE BOARD OF RELATED TAXABLE NON-PROFIT ORGANIZATIONS: JOSEPH GUYAUX, DAVID BLANDINO, M.D., VICTOR ROQUE, DAVID MALONE, DAVID MATTER, AND DAVID HOLMBERG. MEMBERS OR STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 6 WEST PENN ALLEGHENY HEALTH SYSTEM, INC. IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - CANONSBURG GENERAL HOSPITAL - ALLEGHENY MEDICAL PRACTICE NETWORK - ALLEGHENY SINGER RESEARCH INSTITUTE - ALLE-KISKI MEDICAL CENTER - THE WESTERN PENNSYLVANIA HOSPITAL FOUNDATION - FORBES HEALTH FOUNDATION - ALLEGHENY CLINIC - ALLEGHENY CLINIC MEDICAL ONCOLOGY AHN IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - JEFFERSON REGIONAL MEDICAL CENTER - WEST PENN ALLEGHENY HEALTH SYSTEM, INC. - SAINT VINCENT HEALTH SYSTEM - SAINT VINCENT HEALTH CENTER ALLE-KISKI MEDICAL CENTER IS THE SOLE MEMBER OF: - ALLE-KISKI MEDICAL CENTER TRUST HIGHMARK HEALTH IS THE SOLE MEMBER OF: - ALLEGHENY HEALTH NETWORK SAINT VINCENT HEALTH SYSTEM IS THE SOLE MEMBER OF THE FOLLOWING ENTITIES: - SAINT VINCENT FOUNDATION FOR HEALTH AND HUMAN SERVICES - SAINT VINCENT AFFILIATED PHYSICIANS - SAINT VINCENT MEDICAL EDUCATION & RESEARCH INSTITUTE - Westfield Memorial Hospital CANONSBURG GENERAL HOSPITAL IS THE SOLE MEMBER OF: - CANONSBURG GENERAL HOSPITAL AMBULANCE SERVICE FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OR STOCKHOLDERS WHO MAY ELECT PURSUANT TO THE BYLAWS OF EACH ENTITY, EITHER HIGHMARK HEALTH OR THE ENTITY'S SOLE DIRECT MEMBER HAS THE AUTHORITY TO ELECT OR APPOINT ALL OR A SIGNIFICANT PORTION OF SUCH ENTITY'S BOARD OF DIRECTORS AND TO REMOVE OR REPLACE SUCH DIRECTORS.

Decisions Subject to Approval

FORM 990, PART VI, SECTION A, LINE 7B For the following entities that comprise the group, Highmark Health, as the direct or indirect sole member, holds certain reserve powers pursuant to the bylaws of: - CANONSBURG GENERAL HOSPITAL - ALLEGHENY HEALTH NETWORK - JEFFERSON REGIONAL MEDICAL CENTER - ALLEGHENY SINGER RESEARCH INSTITUTE - ALLE-KISKI MEDICAL CENTER - THE WESTERN PENNSYLVANIA HOSPITAL FOUNDATION - ALLE-KISKI MEDICAL CENTER TRUST - FORBES HEALTH FOUNDATION - WEST PENN ALLEGHENY HEALTH SYSTEM, INC. - SAINT VINCENT FOUNDATION FOR HEALTH AND HUMAN SERVICES - SAINT VINCENT MEDICAL EDUCATION AND RESEARCH INSTITUTE - SAINT VINCENT HEALTH SYSTEM - SAINT VINCENT HEALTH CENTER - SAINT VINCENT AFFILIATED PHYSICIANS - CANONSBURG GENERAL HOSPITAL AMBULANCE SERVICE - ALLEGHENY CLINIC - ALLEGHENY CLINIC MEDICAL ONCOLOGY - ALLEGHENY MEDICAL PRACTICE NETWORK THE FOLLOWING ARE THE RESERVED POWERS OF HIGHMARK HEALTH: 1) TO APPROVE THE ELECTION, RE-ELECTION AND REMOVAL OF ALL OFFICERS, INCLUDING THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, OF THE CORPORATION AND ITS SUBSIDIARIES; 2) TO AMEND, REVISE OR RESTATE THE CORPORATION'S ARTICLES OF INCORPORATION AND BYLAWS AND APPROVE ALL AMENDMENTS OR REVISIONS OF THE CORPORATION'S ARTICLES OF INCORPORATION AND BYLAWS THAT MAY BE PROPOSED OR APPROVED BY AHN, THE MEMBER OR BOARD OF DIRECTORS OF THE CORPORATION, SUBJECT TO CERTAIN EXCEPTIONS. 3) TO ADOPT OR CHANGE THE MISSION, PURPOSE, PHILOSOPHY OR OBJECTIVES OF THE CORPORATION OR ITS SUBSIDIARIES; 4) TO CHANGE THE GENERAL STRUCTURE OF THE CORPORATION OR ANY OF ITS SUBSIDIARIES AS A VOLUNTARY, NONPROFIT CORPORATION; 5) TO (A) DISSOLVE, DIVIDE, CONVERT OR LIQUIDATE THE CORPORATION OR ITS SUBSIDIARIES, (B) CONSOLIDATE OR MERGE THE CORPORATION OR ITS SUBSIDIARIES WITH ANOTHER CORPORATION OR ENTITY, (C) SELL OR ACQUIRE ASSETS, WHETHER IN A SINGLE TRANSACTION OR SERIES OF TRANSACTIONS, WHERE THE CONSOLIDATION EXCEEDS 1% OF THE CORPORATION'S OR THE RELEVANT SUBSIDIARY'S TOTAL ASSETS, AND (D) APPROVE ANY OF THE FOREGOING ACTIONS THAT MAY BE PROPOSED BY AHN, THE MEMBER OR THE BOARD OF DIRECTORS OF THE CORPORATION BEFORE SUCH ACTION BECOMES EFFECTIVE; 6) TO APPROVE THE ANNUAL CONSOLIDATED CAPITAL AND OPERATING PLAN AND BUDGET OF THE CORPORATION AND ITS SUBSIDIARIES, AND ANY AMENDMENTS THERETO OR SIGNIFICANT VARIANCES THEREFROM; 7) APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION AND ITS SUBSIDIARIES OR THE MAKING OF CAPITAL EXPENDITURES BY THE CORPORATION AND THE SUBSIDIARIES DURING ANY FISCAL YEAR OF THE CORPORATION, IN EITHER CASE IN EXCESS OF ONE QUARTER OF 1% OF THE CONSOLIDATED ANNUAL OPERATING BUDGET OF THE CORPORATION AND ITS SUBSIDIARIES FOR EACH FISCAL YEAR IF SUCH DEBT OR CAPITAL EXPENDITURES ARE NOT INCLUDED IN THE CORPORATION'S SUBSIDIARIES' APPROVED BUDGETS, WHETHER IN A SINGLE TRANSACTION OR A SERIES OF RELATED TRANSACTIONS. 8) TO APPROVE ANY DONATION OR ANY OTHER TRANSFER OF THE CORPORATION'S OR ITS SUBSIDIARIES' ASSETS, OTHER THAN TO THE MEMBER OR TO THE CORPORATION BY ITS SUBSIDIARIES, IN EXCESS OF $10,000,000, UNLESS SPECIFICALLY AUTHORIZED IN THE CORPORATION'S OR ITS SUBSIDIARIES' APPROVED BUDGETS. 9) TO APPROVE STRATEGIC PLANS AND MISSION STATEMENTS OF THE CORPORATION AND ITS SUBSIDIARIES; 10) TO APPROVE INVESTMENT POLICIES OF THE CORPORATION AND SUBSIDIARIES; 11) TO APPROVE THE CLOSURE OR RELOCATION OF A LICENSED HEALTHCARE FACILITY OF THE CORPORATION AND ITS SUBSIDIARIES; 12) TO APPROVE THE FORMATION OF SUBSIDIARY CORPORATIONS, PARTNERSHIPS AND JOINT VENTURES OR TO MAKE NEW INVESTMENTS IN EXISTING SUBSIDIARY CORPORATIONS, PARTNERSHIPS AND JOINT VENTURES, IF THE NEW INVESTMENTS OF THE CORPORATION AND THE SUBSIDIARIES IN SUCH SUBSIDIARIES CORPORATIONS, PARTNERSHIPS, AND JOINT VENTURES DURING ANY FISCAL YEAR WOULD, IN THE AGGREGATE, EXCEED 1% OF THE CORPORATION'S CONSOLIDATED TOTAL ASSETS AT THE END OF THE PRIOR FISCAL YEAR OF THE CORPORATION; 13) TO ESTABLISH AND MANAGE THE CORPORATION'S PROGRAM FOR COMPLIANCE WITH ALL LEGAL REQUIREMENT

Form 990 Review Process

FORM 990, PART VI, SECTION B, LINE 11B HIGHMARK HEALTH GROUP IRS FORM 990 WAS PREPARED BY ITS EXTERNAL ADVISORS, PRICEWATERHOUSECOOPERS LLP AND REVIEWED BY THE HIGHMARK HEALTH TAX DEPARTMENT, SENIOR MANAGEMENT OF THE ORGANIZATION, AND THE AUDIT AND COMPLIANCE COMMITTEE. Before filing the tax return with the Internal Revenue Service, a final copy was provided to all members of the Boards of Directors.

Conflict of Interest Policy Monitoring & Enforcement

FORM 990, PART VI, SECTION B, LINE 12C Highmark Health (HH) has a corporate compliance department that monitors and oversees compliance with the Conflict of Interest Policy for all entities within the filing group. The following describes the manner in which the corporate compliance department monitors and oversees compliance with the conflict of interest policy: CONFLICT OF INTEREST DISCLOSURE STATEMENTS ARE COMPLETED UPON HIRE/APPOINTMENT AND ON AN ANNUAL BASIS BY ALL BOARD MEMBERS, OFFICERS, KEY EMPLOYEES, SUPERVISORS AND ABOVE, PERSONS WITH PURCHASING AND DECISION MAKING AUTHORITY, AND ANY OTHER EMPLOYEES AS DESIGNATED BY THE COMPLIANCE DEPARTMENT. INDIVIDUALS ARE REQUIRED TO REPORT TO THE COMPLIANCE DEPARTMENT THROUGHOUT THE YEAR IF CHANGES IN CIRCUMSTANCES ARISE THAT MAY GIVE RISE TO A POTENTIAL CONFLICT OF INTEREST OR CHANGE A PREVIOUSLY-DISCLOSED CONFLICT. Upon completion of the above disclosure statement by all applicable individuals, the Corporate Compliance Department reviews all disclosures. Those disclosure statements that require additional information or clarification are contacted by the corporate compliance department requesting such. Once received, the Corporate Compliance Department reviews the information to determine whether a real or potential conflict of interest exists. As applicable, Legal and Senior Management are consulted to determine whether a real or potential conflict of interest exists. When a conflict requires a mitigation plan, the mitigation plan is developed and approved in coordination with the respective responsible senior management. The senior managers are responsible for discussing the mitigation plan with the individual and monitoring compliance with the mitigation plan. A Conflict of Interest/Independence Disclosure Summary Report of all board members and officers with reportable disclosures is provided to the Audit and Compliance committee of the Board of Highmark Health as well as the Board of Directors of Highmark Health, AHN and any applicable hospital.

Process for Determining Executive Compensation

FORM 990, PART VI, SECTION B, LINES 15A AND 15B AHN follows a process for determining compensation for executive positions, (including officers, key employees and other management positions), and is covered by the Highmark Health executive compensation policy. The policy was approved by the Highmark Health board of directors. It is the policy of AHN management to compensate its executives in accordance with the market and in relation to the experience, service and accomplishments of the individual both prior to and during their service with AHN. The Highmark Health personnel and compensation committee (P&C) of the Board of Directors approves the compensation for the president and CEO of AHN and all non-hospital senior executives who report directly to the president and CEO of AHN. The personnel and compensation committee uses comparability data provided by an independent compensation consultant. The external consultant provides a letter of reasonability for all offers made to new executives that report to the AHN CEO. Each P&C committee member voting on a senior executive's compensation arrangement ensures that he or she has no conflict of interest, including that he or she (a) does not economically benefit from the proposed employment; (b) does not receive compensation subject to the approval of the proposed employee; and (c) has no material financial interest affected by the transaction. The executive compensation program for the hospital entities within the group is administered by the CEO of AHN with respect to the CEOs, COOs and CFOs of each hospital, pursuant to overall guidelines established by the personnel and compensation committee of the board of directors of Highmark Health. It is the policy of AHN to compensate its executives in accordance with competitive market practices, taking into account organizational performance and the skills, experience, qualifications and performance of each executive. AHN generally targets the median of the relevant market with reasonable variation based on each executive's skills, experience, performance and current positioning relative to market. Highmark Health management, in coordination with the independent consultant to the P&C committee obtains appropriate market comparability data for each position, including nationally published compensation surveys and/or specific organization peer groups, to prepare compensation recommendations for all key executives, including officers, key employees, and other disqualified persons. Recommendations are reviewed ]and approved by a committee that is independent with respect to the compensation provided to the executives. Compensation may include several forms of cash compensation, including base salary, performance-based incentive compensation, and a competitive employee benefits program. Base salary is the fixed element of compensation intended to align with each executive's role, responsibilities, overall performance and other contributions. Incentive compensation is used to provide variable, or "at risk" compensation, based on the performance of both the executive and the organization. Typically, AHN and hospital executives can earn incentive compensation only if the organization achieves certain pre-determined goals as approved by the P&C Committee. The plans are intended to hold executives accountable for achieving performance that is consistent with the long-term goals and objectives of the organization. All entities within the filing follow the requirement in the regulations to comply with the rebuttable presumption of the reasonableness of compensation. THE P&C COMMITTEE COMPLETED A REVIEW AND APPROVAL OF THE ANNUAL COMPENSATION STUDY OF CORPORATE EXECUTIVES PREPARED BY THE INDEPENDENT COMPENSATION CONSULTANT IN JULY 2019.

How Documents Are Made Available to the Public

Form 990, part vi, section c, line 19 the organization does not make its governing documents or conflict of interest policy available to the public. Financial statements are on a consolidated basis, and are available upon request and approval by the cfo of highmark health. Independent contractors part vii, section b, line 2 listed in this form 990, part vii are the five highest paid independent contractors that provided services the highmark health group. The amount of independent contractors reported on line 2 includes the total amount of vendors paid over $100,000.

Other Changes in Net Assets

Form 990, part xi, line 9 equity transfers 289,592,971 pension liability adjustments (11,089,000) other 104,941,473 ------------- total 383,445,444

Financial Statement Notes

Schedule D, Part V

Intended use of endowment funds the intended uses of the permanent and term endowments are for but not exclusive to: capital improvements, research, education, nursing activities, departmental needs, operating efficiencies, and overall patient care. The earnings off of the permanent endowment are expendable, based on the specific use of the fund.

Inclusion in Consolidated Afs

Highmark health group does not issue independent audited financial statements. Highmark health group is a component of a consolidated audited financial statement.

Schedule D, Part X, Line 2

Asc 740 footnote highmark health records uncertain tax positions in accordance with fasb accounting standards codification (asc) 740, income taxes. Asc 740 clarifies the accounting for uncertainty in income taxes by defining criteria that a tax positon on an individual matter must meet before that position is recognized. Asc 740 also provides guidance on measurement, classification, interest and penalties, disclosure and accounting in interim periods. Based on an analysis prepared by highmark health, it was determined that the application of fasb asc 740 had no material effect on the recorded assets and liabilities of hh on a standalone basis. An external audit is completed at a consolidated highmark system level only, including highmark health and all taxable and tax-exempt subsidiaries.

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