MILLE LACS HEALTH SYSTEM

EIN: 410785161 501(c)(3) Health Care

ONAMIA, MN

Total Revenue
$63,532,535
Total Expenses
$64,757,375
Total Assets
$57,778,960
Net Assets
$17,601,150
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Financial Trends

Organization Details

Formation Year
1953
Legal Domicile
MN
Principal Officer
ANDREW KNUTSON
Phone
3205322581
Tax Period
2023-10-01 to 2024-09-30

MILLE LACS HEALTH SYSTEM, founded in 1953, is a mid-sized nonprofit in the Health Care sector that reported $63.5M in total revenue in fiscal year 2023. Revenue grew 11% year-over-year, indicating healthy expansion.

Mission

TO ASSIST THOSE RESIDING IN AND VISITING THE MILLE LACS AREA IN ACHIEVING AND MANTAINING OPTIMAL HEALTH.

Program Service Accomplishments

Program 1
Expenses: $57,438,885 Revenue: $61,775,282

MILLE LACS HEALTH SYSTEM (MLHS) IS A RURAL HEALTH SYSTEM LOCATION IN ONAMIA, MN, 80 MILES NORTH OF THE TWIN CITIES AREA NEAR LAKE MILLE LACS. OUR SYSTEM INCLUDES A 18-BED ACUTE CARE HOSPITAL, A...

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MILLE LACS HEALTH SYSTEM (MLHS) IS A RURAL HEALTH SYSTEM LOCATION IN ONAMIA, MN, 80 MILES NORTH OF THE TWIN CITIES AREA NEAR LAKE MILLE LACS. OUR SYSTEM INCLUDES A 18-BED ACUTE CARE HOSPITAL, A 57-BED LONG-TERM CARE FACILITY, A 10-BED SENIOR CARE FACILITY, HOME CARE, HOSPICE, A BLS AND ALS AMBULANCE SERVICE, AS WELL AS AN ATTACHED MEDICAL CLINIC. MLHS ALSO OPERATES MEDICAL CLINICS IN THE TOWNS OF ISLE, HILLMAN, GARRISON, AND MILACA. OUR MEDICAL STAFF ALSO PROVIDES COVERAGE TO THE NE-IA-SHING CLINIC ON THE NEARBY MILLE LACS RESERVATION. THE HEALTH SYSTEM IS ORGANIZED AS A 501(C)(3) NONPROFIT CORPORATION. DUE TO THE LACK OF AVAILABLE HEALTHCARE OPTIONS IN THIS CENTRAL MINNESOTA REGION, THE FEDERAL GOVERNMENT HAS DESIGNATED THIS COMMUNITY AS A MEDICALLY UNDERSERVED AREA IN TERMS OF PRIMARY CLINICS.THE REMOTENESS OF HEALTHCARE SERVICES TO THE MILLE LACS COMMUNITIES IN THE 1950'S PROMPTED AN AREA-WIDE COMMUNITY EFFORT TO BUILD A HOSPITAL. THE HOSPITAL WAS COMPLETED IN 1956 AND, FIVE YEARS LATER A NURSING HOME WAS BUILT ADJACENT TO IT. OVER THE YEARS, THE FACILITIES HAVE BEEN EXPANDED AND MODERNIZED AND RENAMED SEVERAL TIMES. IN 1995, AN AMBITIOUS BUILDING PROJECT AND INTEGRATION EFFORT, WHICH INCLUDED A NEW HOSPITAL EMERGENCY ROOM, REHABILITATION CENTER, AND CLINIC SPACE WERE COMPLETED. THIS BUILDING PROJECT WAS MADE POSSIBLE THROUGH NEARLY A HALF MILLION DOLLARS WHICH WERE RAISED LOCALLY. IN 2001, A MULTI-MILLION DOLLAR EXPANSION AND RENOVATION PROJECT WAS STARTED TO FURTHER UPGRADE THE HOSPITAL AND LONG-TERM CARE SERVICES AND POSITION US TO MEET THE GROWING HEALTHCARE NEEDS OF THE AREA.MILLE LACS HEALTH SYSTEM SERVES A PERMANENT POPULATION BETWEEN 15,000 AND 20,000, INCLUDING RESIDENTS OF THE MILLE LACS RESERVATION. BECAUSE OF THE RECREATIONAL FEATURES OF THE MILLE LACS AREA, MLHS ALSO SERVES A NUMBER OF SEASONAL RESIDENTS. IT IS ESTIMATED THAT DURING THE BUSY SUMMER AND HOLIDAY WEEKEND THERE ARE UP TO AN ADDITIONAL 25,000 PEOPLE IN THE AREA. THIS NUMBER IS BASED ON STATISTICS FROM LOCAL RESORTS, MOTELS, AND CAMPGROUNDS. THE CLOSEST ACUTE CARE FACILITY IS 28 MILES AWAY IN PRINCETON. THE CLOSEST TERTIARY CARE FACILITY IS 55 MILES AWAY IN ST. CLOUD. THE CLOSEST SECONDARY LEVEL IS 50 MILES AWAY IN BRAINERD. MLHS IS THE ONLY PROVIDER OF ACUTE CARE WITHIN OUR PRIMARY SERVICE AREA OF ONAMIA, HILLMAN, ISLE, GARRISON, AND WAHKON, WHICH INCLUDES THE MILLE LACS RESERVATION.MILLE LACS HEALTH SYSTEM ALSO SERVES PATIENTS OUTSIDE THE PRIMARY SERVICES AREA. THE SECONDARY SERVICE AREA INCLUDES MORA, BOCK, MILACA, AND OGILVIE.

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

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Financial Overview (2023)

Revenue Breakdown

Contributions & Grants $817,334
Program Service Revenue $61,751,201
Investment Income $308,968
Other Revenue $655,032
TOTAL REVENUE $63,532,535

Expense Breakdown

Grants Paid $0
Salaries & Benefits $33,884,366
Fundraising Expenses $0
Program Expenses $57,438,885
Other Expenses $30,873,009
TOTAL EXPENSES $64,757,375

Year-over-Year Comparison

2023 2022 Change
Revenue $63,532,535 $57,325,908 +0.1%
Expenses $64,757,375 $58,602,250 +0.1%
Net Income $-1,224,840 $-1,276,342 0.0%
Key Indicators
Grants to Organizations Grants to Individuals Lobbying Political Activity Foreign Activities Donor Advised Fund Schedule B Required
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Governance

Voting Members
9
Independent Members
7
Employees
516
Volunteers
40

Governance Policies

Conflict of Interest Policy
Whistleblower Policy
Document Retention Policy

Special Practices & Reported Activities

Operated a School
Operated a Hospital
Provided First Class Travel
Reported Conflict of Interest
Reported Asset Diversion
Excess Benefit Transaction
Made Political Expenditures
Engaged in Lobbying
Operated Donor Advised Fund
Maintained Art Collections
Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers
8
$1,167,528
Total Directors
9
$484,760
Key Employees
1
$324,311
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
DR ARDEN VIRNIG DIRECTOR/PHYSICIAN 40.00
Director
$266,249 $47,990 $314,239
ANTHONY HASS DIRECTOR/CHIROPRACTOR 40.00
Director
$130,653 $31,468 $162,121
PHIL GRAVEL BOARD CHAIR 8.00
Officer Director
$4,800 $0 $4,800
ROB DUBBS VICE CHAIR 2.00
Officer Director
$810 $0 $810
BETSY LUNDQUIST SECRETARY 2.00
Officer Director
$780 $0 $780
ROGER TRAMM DIRECTOR 2.00
Director
$780 $0 $780
DENNIS BURR DIRECTOR 2.00
Director
$660 $0 $660
JEAN STAFFORD SECRETARY 2.00
Officer Director
$510 $0 $510
TRACY SAM DIRECTOR 2.00
Director
$60 $0 $60
WILLIAM NELSON CEO 40.00
Officer
$415,817 $78,951 $494,768
JACKIE ULSETH CNO 40.00
Officer
$181,464 $40,889 $222,353
BECKY FOSSAND CAO 40.00
Officer
$177,453 $42,010 $219,463
ANDY KNUTSON CFO 40.00
Officer
$170,475 $53,569 $224,044
DR PATTI HOOK-VIRNIG VP OF MEDICAL AFFAIRS 40.00
Key Emp
$268,244 $56,067 $324,311
JAMES YOUNG HOSPITALIST 40.00
Highest
$422,764 $14,318 $437,082
EARLE MUNNS HOSPITALIST 40.00
Highest
$377,168 $48,980 $426,148
FAHAD KHEMANI PHYSICIAN 40.00
Highest
$325,345 $26,648 $351,993
RYAN FOX PHYSICIAN 40.00
Highest
$286,065 $35,762 $321,827
CATHY DONOVAN FAMILY MEDICINE PHYSICIAN 40.00
Highest
$269,130 $65,365 $334,495
Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year Revenue Expenses Assets Net Income
2024 $63,532,535 $64,757,375 $57,778,960 $-1,224,840
2023 $57,325,908 $58,602,250 $58,728,748 $-1,276,342
2022 $48,154,500 $51,072,396 $57,022,078 $-2,917,896
2021 $49,720,336 $46,122,120 $55,817,777 $3,598,216
2020 $46,649,382 $45,601,416 $41,428,821 $1,047,966
2019 $46,108,730 $44,793,049 $28,453,579 $1,315,681
2018 $44,264,598 $42,594,366 $28,390,762 $1,670,232
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