2024-08-14T12:15:42-05:00 2023-09-30 440160260 FORVIS MAZARS LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2022-10-01 814193950 APELLA HEALTH MANAGEMENT INC APEL 8645605010 700 N PINE STREET SPARTANBURG SC 29303 BRUCE DAVIS EVP, CFO 8645605010 2024-08-14 1 1 AMY BIBBY P00445891 8282542254 2024-08-14 2022 2024-08-08 14:25:15Z BRUCE HOLSTIEN 700 N PINE STREET SPARTANBURG SC 29303 405021942 0 X WWW.APELLAHEALTH.COM X 2016 SC APELLA HEALTH MANAGEMENT WAS FORMED TO PROVIDE CERTAIN CHARITABLE AND HEALTH CARE SERVICES TO THE BENEFIT OF SPARTANBURG REGIONAL HEALTH SERIVCES DISTRICT, INC., A PUBLIC HOSPITAL CORPORATION AND POLITICAL SUBDIVISION OF THE STATE OF SOUTH CAROLINA, IN FURTHERANCE OF SERVING THE HEALTH CARE NEEDS OF SPARTANBURG COUNTY COMMUNITIES IN SOUTH CAROLINA AND OTHER SURROUNDING COMMUNITIES. 10 8 7202 0 0 0 0 0 335850968 404044600 56348 977342 0 0 335907316 405021942 0 0 0 0 324276279 392770609 0 0 0 5075407 6595387 329351686 399365996 6555630 5655946 51496580 61151196 28228043 31119477 23268537 30031719 X APELLA HEALTH MANAGEMENT WAS FORMED TO PROVIDE CERTAIN CHARITABLE AND HEALTH CARE SERVICES TO THE BENEFIT OF SPARTANBURG REGIONAL HEALTH SERIVCES DISTRICT, INC., A PUBLIC HOSPITAL CORPORATION AND POLITICAL SUBDIVISION OF THE STATE OF SOUTH CAROLINA, IN FURTHERANCE OF SERVING THE HEALTH CARE NEEDS OF SPARTANBURG COUNTY COMMUNITIES IN SOUTH CAROLINA AND OTHER SURROUNDING COMMUNITIES. 0 0 384583443 404044600 THE ORGANIZATION WAS FORMED TO PROMOTE HEALTH FOR THE BENEFIT OF THE COMMUNITY AND LESSEN THE BURDENS OF GOVERNMENT BOTH WITHIN THE MEANING OF SECTION 501(C)(3) OF THE CODE BY PROVIDING CERTAIN ESSENTIAL CHARITABLE AND HEALTH CARE SERVICES, INCLUDING MANAGEMENT SERVICES TO THE SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT, A STATE INSTRUMENTALITY OF SOUTH CAROLINA (THE "DISTRICT").SUCH SERVICES ARE ESSENTIAL IN FURTHERANCE OF SERVING THE HEALTH CARE NEEDS OF THE COMMUNITIES IN AND SURROUNDING SPARTANBURG. THE DISTRICT'S HEALTH CARE FACILITIES, INCLUDE FIVE (5) ACUTE-CARE HOSPITALS; A LONG TERM ACUTE CARE HOSPITAL; TWO LONG-TERM CARE FACILITIES; A HOSPICE HOME AND IN-HOME HOSPICE SERVICES; A PHYSICIAN GROUP CONSISTING OF OVER 550 PHYSICIANS LOCATED THROUGHOUT THE DISTRICT'S SERVICE AREA; AND OTHER RELATED ENTITIES. PROVIDING THESE SERVICES, THE ORGANIZATION'S ACTIVITIES ALLOW THE DISTRICT TO BETTER ACHIEVE ITS CHARITABLE AND GOVERNMENTAL PURPOSES. 384583443 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 6 0 1 7202 1 0 0 0 0 0 0 0 0 0 0 1 0 X 10 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X BRUCE DAVIS 8645604376 700 N PINE STREET SPARTANBURG SC 29303 X D BYRD MILLER III CHAIR 1.00 X X 0 0 0 SCOTT MONTGOMERY TREASURER 1.00 X X 0 0 0 KATHERINE O'NEIL VICE CHAIR 1.00 X X 0 0 0 ROB BARRETT SECRETARY 1.00 X X 0 0 0 MARY L THOMAS PAST CHAIR 1.00 X X 0 0 0 WELLESLEY ALEXANDER BOARD MEMBER 1.00 40.00 X 0 493649 20721 ASHLEY ALLEN BOARD MEMBER 1.00 X 0 0 0 TERRY CASH BOARD MEMBER 1.00 X 0 0 0 VIC BAILEY BOARD MEMBER 1.00 X 0 0 0 MICHAEL ORSECK MD BOARD MEMBER 1.00 40.00 X 0 1452730 20721 BRUCE HOLSTEIN PRESIDENT/CEO 40.00 X 2096756 0 282157 BRUCE DAVIS EVP, CFO 40.00 X 460510 0 79282 MARK AYCOCK VP-OPERATIONS 40.00 X 1784439 0 84887 MARIA WILLIAMSON VP-MARKETING 40.00 X 467517 0 11677 PARKES COGGINS VP-OPERATIONS 40.00 X 332576 0 36841 PAUL NEWHOUSE PRESIDENT-UMC 40.00 X 338483 0 25066 MARY JENNINGS CHIEF NURSING OFFICER-SMC 40.00 X 397330 0 18316 DAVID CHURCH FOUNDATION PRESIDENT 40.00 X 368683 0 31221 KENNETH MEINKE FORMER VP-FINANCE/CHIEF ADMINISTRATIVE OFFICER 40.00 X 1193390 0 84634 7439684 1946379 695523 278 1 1 0 0 LEASED STAFFING REVENU 541900 384604000 384604000 MANAGEMENT FEE REVENUE 541900 13609834 13609834 ADMINISTRATIVE FEE REV 541900 7160174 7160174 JOINT VENTURE REVENUE 901101 -1329408 -1329408 404044600 977342 977342 405021942 404044600 0 977342 5296216 5296216 320092707 320092707 11038814 9037380 2001434 32167114 31380106 787008 24175758 24055536 120222 116264 116264 6118204 6118204 71872 17714 54158 12600 12600 27969 27969 5369 5369 206542 206542 OTHER EXPENSES 36567 36567 399365996 384583443 14782553 0 13611379 9280969 17053958 23853301 1364522 2002388 92951 5369 0 87582 1613017 1291705 17853704 24635251 51496580 61151196 28228043 31119477 28228043 31119477 X 23268537 30031719 23268537 30031719 51496580 61151196 X 5655946 1107236 X X 0 1 X 1 0 X X 1 SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT 571075649 6 1 0 384583443 1 0 384583443 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 X PART IV SECTION E LN 1C THE ORGANIZATION SUPPORTS SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT WHICH IS A GOVERNMENTAL ENTITY. THE ORGANIZATION LESSENS THE BURDENS OF THE GOVERNMENTAL ENTITY BY PROVIDING CERTAIN ESSENTIAL CHARITABLE AND HEALTH CARE SERVICES. PART IV SECTION D LINE 1 THE ORGANIZATION SUBMITS AN ANNUAL LETTER TO THE SUPPORTED ORGANIZATION DEMONSTRATING THE AMOUNT OF SUPPORT PROVIDED TO THE SUPPORTED ORGANIZATION. DUE TO THE TIMING OF THE AUDITED FINANCIAL STATEMENTS AND FORM 990 THIS LETTER HAS BEEN ISSUED FOR THE PRIOR YEAR AT THE TIME OF THE 990 FILING. THE ORGANIZATION IS MODIFYING THE TIMING OF ITS NOTIFICATION TO PROVIDE THE SUPPORT NOTIFICATION TO THE SUPPORTED ORGANIZATION FOLLOWING THE CLOSE OF EACH TAX PERIOD. PART IV SECTION D LINE 2 OFFICERS OF APELLA, WHO ARE ALSO OFFICERS OF THE SUPPORTING ORGANIZATION, ATTEND ALL BOARD AND COMMITTEE MEETINGS OF THE SUPPORTED ORGANIZATION. OFFICERS PRESENT FINANCIAL AND OPERATIONAL DATA OF BOTH APELLA AND THE DISTRICT TO THE APELLA BOARD AND ARE AVAILABLE FOR DISCUSSION AND QUESTIONS. PART IV SECTION D LINE 3 THE OFFICERS PERFORM THE SAME FUNCTIONS FOR BOTH THE FILING ORGANIZATION AND SUPPORTED ORGANIZATION, AS A RESULT THE SUPPORTED ORGANIZATION HAD A DIRECT SIGNIFICANT VOICE IN TO THE USE OF THE INCOME AND THE ASSETS OF THE ORGANIZATION. IN ADDITION, ONE OF THE SUPPORTING ORGANIZATION'S BOARD MEMBERS IS INVITED TO ATTEND THE APELLA BOARD MEETING FOR INFORMATIONAL PURPOSES. 92951 5369 87582 87582 DUE FROM RELATED ORGANIZATION 24635251 24635251 X 405374008 0 405374008 -352066 -352066 405021942 399365996 0 399365996 0 399365996 PART X, LINE 2: THE COMPANY HAS BEEN GRANTED EXEMPTION FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND, ACCORDINGLY, NO PROVISION FOR INCOME TAX IS RECORDED IN THE ACCOMPANYING FINANCIAL STATEMENTS. THE COMPANY HAS DETERMINED THAT IT DOES NOT HAVE ANY UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF SEPTEMBER 30, 2023. PART XI, LINE 4B - OTHER ADJUSTMENTS: TOTAL NON-OPERATING GAINS -352,066. X X X X 0 1 0 0 0 0 0 0 0 BRUCE HOLSTEIN PRESIDENT/CEO 1172827 0 899703 0 24226 0 263841 0 18316 0 2378913 0 813335 0 MARK AYCOCK VP-OPERATIONS 677818 0 1067597 0 39024 0 69181 0 15706 0 1869326 0 650480 0 MICHAEL ORSECK MD BOARD MEMBER 0 1434657 0 0 0 18073 0 0 0 20721 0 1473451 0 0 KENNETH MEINKE FORMER VP-FINANCE/CHIEF ADMINISTRATI 668744 0 473178 0 51468 0 66318 0 18316 0 1278024 0 142216 0 BRUCE DAVIS EVP, CFO 200505 0 227351 0 32654 0 58561 0 20721 0 539792 0 0 0 WELLESLEY ALEXANDER BOARD MEMBER 0 474650 0 0 0 18999 0 0 0 20721 0 514370 0 0 MARIA WILLIAMSON VP-MARKETING 371225 0 90100 0 6192 0 0 0 11677 0 479194 0 0 0 MARY JENNINGS CHIEF NURSING OFFICER-SMC 330760 0 51500 0 15070 0 0 0 18316 0 415646 0 0 0 DAVID CHURCH FOUNDATION PRESIDENT 305318 0 59700 0 3665 0 10500 0 20721 0 399904 0 0 0 PARKES COGGINS VP-OPERATIONS 285806 0 45600 0 1170 0 10675 0 26166 0 369417 0 0 0 PAUL NEWHOUSE PRESIDENT-UMC 253786 0 75400 0 9297 0 6750 0 18316 0 363549 0 0 0 PART I, LINE 4B EXECUTIVES OF THE ORGANIZATION PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. DURING THE YEAR THE EXECUTIVES ACCRUED THE FOLLOWING AMOUNTS UNDER THE TERMS OF THE PLAN. BRUCE HOLSTIEN - $253,166 KENNETH MEINKE - $55,643 MARK AYCOCK - $58,506 BRUCE DAVIS - $53,311 THE FOLLOWING AMOUNTS WERE RECEIVED AS COMPENSATION INCLUDED ON FORM W-2 AS A RESULT OF AMOUNTS VESTED IN THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. BRUCE HOLSTEIN - $813,335 KENNETH MEINKE - $142,216 MARK AYCOCK - $728,146 A SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT INC 576000934 847113EA1 2022-01-19 125980226 SEE PART VI 0 0 0 B SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT INC 576000934 847113DH7 2020-07-09 77557006 SEE PART VI 0 0 0 C SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT INC 571075649 847113CJ4 2017-12-21 201824247 SEE PART VI 0 0 0 A 4830000 125991361 813503 125177858 1 0 0 1 B 2300000 77557590 781789 1770223 15916110 59089468 2021 0 1 0 1 C 202629995 1867799 160668524 40093672 2019 0 1 1 1 A 0 0 1 1 1 1 0.00000 0.00000 0.00000 0 0 1 B 0 1 1 1 1 1 0.00000 0.00000 0.00000 0 0 1 C 0 1 1 1 1 1 0.00000 0.00000 0.00000 0 0 1 A 0 1 1 0 0 0 0 0 1 B 0 1 1 0 0 0 0 0 1 C 0 0 0 1 0 0 0 0 1 A 1 B 1 C 1 COLUMN A: PART I(F) THE BONDS WERE ISSUED TO CURRENT REFUND THE 2012AB REISSUED BONDS (ISSUED ON DECEMBER 19. 2017). COLUMN A: PART II, LINE 13 SINCE PROCEEDS OF THE BONDS WERE ISSUED FOR REFUNDING PURPOSES, THE YEAR OF SUBSTANTIAL COMPLETION IS NOT APPLICABLE. COLUMN A: PART II, LINE 3 THE TOTAL PROCEEDS SHOWN IN PART II, LINE 3 DIFFERS FROM THE ISSUE PRICE SHOWN IN PART I, (E) DUE TO INTEREST EARNINGS ON INVESTED PROCEEDS. COLUMN A: PART III, LINE 7 AS PROVIDED IN TREASURY REGULATION SECTION 1.141-4(C)(2)(I)(B), THE AMOUNT OF PRIVATE PAYMENTS TAKEN INTO ACCOUNT UNDER THE PRIVATE SECURITY OR PAYMENT TEST MAY NOT EXCEED THE AMOUNT OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE. ACCORDINGLY, THE AMOUNT OF PRIVATE PAYMENTS FOR THE REPORTING PERIOD DOES NOT EXCEED THE AMOUNT STATED IN PART III, LINE 6. THE ORGANIZATION HAS NOT UNDERTAKEN AN ANALYSIS OF THE PRIVATE SECURITY OR PAYMENT TEST WITH RESPECT TO THE BONDS, AS THE LEVEL OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE REPORTED IN PART III, LINE 6 IS NOT IN EXCESS OF AMOUNTS PERMITTED UNDER SECTION 145 OF THE CODE. COLUMN A: PART IV, LINE 2(B) BOND PROCEEDS HAVE MET AN EXCEPTION TO THE REBATE REQUIREMENT. COLUMN B: PART I(F) BOND PROCEEDS WERE USED TO FINANCE CAPITAL PROJECTS, PAYOFF TWO TAXABLE LOANS, PAY A BOND INSURANCE PREMIUM, AND PAY COSTS OF ISSUANCE. COLUMN B: PART II, LINE 3 THE TOTAL PROCEEDS SHOWN IN PART II, LINE 3 DIFFERS FROM THE ISSUE PRICE SHOWN IN PART I, (E) DUE TO INTEREST EARNINGS ON INVESTED PROCEEDS. COLUMN B: PART III, LINE 7 AS PROVIDED IN TREASURY REGULATION SECTION 1.141-4(C)(2)(I)(B), THE AMOUNT OF PRIVATE PAYMENTS TAKEN INTO ACCOUNT UNDER THE PRIVATE SECURITY OR PAYMENT TEST MAY NOT EXCEED THE AMOUNT OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE. ACCORDINGLY, THE AMOUNT OF PRIVATE PAYMENTS FOR THE REPORTING PERIOD DOES NOT EXCEED THE AMOUNT STATED IN PART III, LINE 6. THE ORGANIZATION HAS NOT UNDERTAKEN AN ANALYSIS OF THE PRIVATE SECURITY OR PAYMENT TEST WITH RESPECT TO THE BONDS, AS THE LEVEL OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE REPORTED IN PART III, LINE 6 IS NOT IN EXCESS OF AMOUNTS PERMITTED UNDER SECTION 145 OF THE CODE. COLUMN B: PART IV, LINE 2(B) BOND PROCEEDS HAVE MET AN EXCEPTION TO THE REBATE REQUIREMENT. COLUMN C: PART I(F) BOND PROCEEDS WERE USED TO FINANCE CAPITAL PROJECTS, ADVANCE REFUND A PORTION OF SERIES 2008A BONDS (ISSUED ON JUNE 25, 2008), ADVANCE REFUND SERIES 2008D BONDS (ISSUED ON JULY 30, 2008), AND PAY COSTS OF ISSUANCE. COLUMN C: PART II, LINE 3 THE TOTAL PROCEEDS SHOWN IN PART II, LINE 3 DIFFERS FROM THE ISSUE PRICE SHOWN IN PART I, (E) DUE TO INTEREST EARNINGS ON INVESTED PROCEEDS. COLUMN C: PART III, LINE 7 AS PROVIDED IN TREASURY REGULATION SECTION 1.141-4(C)(2)(I)(B), THE AMOUNT OF PRIVATE PAYMENTS TAKEN INTO ACCOUNT UNDER THE PRIVATE SECURITY OR PAYMENT TEST MAY NOT EXCEED THE AMOUNT OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE. ACCORDINGLY, THE AMOUNT OF PRIVATE PAYMENTS FOR THE REPORTING PERIOD DOES NOT EXCEED THE AMOUNT STATED IN PART III, LINE 6. THE ORGANIZATION HAS NOT UNDERTAKEN AN ANALYSIS OF THE PRIVATE SECURITY OR PAYMENT TEST WITH RESPECT TO THE BONDS, AS THE LEVEL OF PRIVATE BUSINESS USE AND/OR UNRELATED TRADE OR BUSINESS USE REPORTED IN PART III, LINE 6 IS NOT IN EXCESS OF AMOUNTS PERMITTED UNDER SECTION 145 OF THE CODE. COLUMN C: PART IV, LINE 2(C) THE MOST RECENT 5TH YEAR REBATE REPORT WAS PREPARED ON MAY 11, 2022. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN WAS REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE. RETURN WAS THEN PROVIDED TO THE BOARD MEMBERS FOR THEIR REVIEW PRIOR TO ISSUANCE. ALL QUESTIONS/COMMENTS WERE APPROPRIATELY ADDRESSED. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS MUST DISCLOSE TO THE BOARD ALL APPLICABLE FINANCIAL INTERESTS, BOARD MEMBERSHIPS, AND OTHER INTERESTS, AND ALL MATERIAL FACTS RELATING TO ANY ORGANIZATION ENTERING INTO A TRANSACTION OR ARRANGEMENT WITH THE CORPORATION THAT MAY RESULT IN A CONFLICT OF INTEREST. BOARD MEMBERS ARE RESPONSIBLE FOR IDENTIFYING POTENTIAL CONFLICTS AS ITEMS ARE DISCUSSED. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION UTILIZES SEVERAL SOURCES OF COMPARIBILITY DATA DURING ITS COMPENSATION REVIEW PROCESS INCLUDING: WILLIS TOWERS WATSON CONDUCTS AN ANNUAL EXECUTIVE MARKET COMPENSATION ASSESSMENT. THE DATA IS PROVIDED FROM NATIONAL SURVEYS: TOWER DATA SERVICES, MERCER, INC., INTEGRATED HEALTHCARE STRATEGIES, AND SULLIVAN COTTER AND ASSOCIATES. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 1023, AND FORM 990 AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. FORM 990 PART VII & PART IX COMPENSATION REPORTED IN PART VII OF THE RETURN IS REPORTED ON A CALENDAR YEAR BASIS AS REQUIRED BY THE FORM 990 INSTRUCTIONS. COMPENSATION REPORTED IN PART PART IX LN 5 OF THE RETURN IS REPORTED ON THE FISCAL YEAR BASIS. THIS DIFFERENCE RESULTS IN A DISCREPANCY BETWEEN THE AMOUNTS ILLUSTRATED IN EACH SECTION. FORM 990, PART XI, LINE 9: ADDITIONAL CHANGE IN NET ASSETS RELATED TO JOINT VENTURES 1,107,236. FORM 990 PART XII LINE 2C THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. SPARTANBURG REGIONAL HEALTH SERVICES DISTRICT 101 EAST WOOD STREET SPARTANBURG SC 29303 571075649 HEALTHCARE SERVICES SC GOVERNMENT N/A N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0