PENN STATE HEALTH

EIN: 473769205 501(c)(3) Health Care

HERSHEY, PA

Total Revenue
$866,020,903
Total Expenses
$1,033,760,536
Total Assets
$1,637,318,794
Net Assets
$-951,076,461
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Financial Trends

Organization Details

Formation Year
2014
Legal Domicile
PA
Principal Officer
DEBORAH ADDO
Phone
7175318477
Tax Period
2023-07-01 to 2024-06-30

PENN STATE HEALTH, founded in 2014, is a major nonprofit in the Health Care sector that reported $866.0M in total revenue in fiscal year 2023. Revenue surged 44% from the prior year, signaling strong growth momentum. Expenses of $1.0B exceeded revenue, resulting in a 19% operating deficit.

Mission

PENN STATE HEALTH'S MISSION IS TO CONTINUALLY IMPROVE THE HEALTH AND WELL-BEING OF THE PEOPLE OF PENNSYLVANIA, AND BEYOND. THE ORGANIZATION PROVIDES PATIENTS WITH EXCELLENT, COMPASSIONATE AND EQUITABLE CARE; EDUCATES AND TRAINS (CONTINUED IN SCHEDULE O) HEALTHCARE PROFESSIONALS; AND ADVANCES EVIDENCE-BASED MEDICAL INNOVATION THROUGH RESEARCH AND DISCOVERY.

Program Service Accomplishments

Program 1
Expenses: $847,828,163 Revenue: $775,861,227

TO PROMOTE, SUPPORT, AND FURTHER THE PENNSYLVANIA STATE UNIVERSITY; TO PROMOTE HEALTH THROUGH THE MANAGEMENT AND/OR SUPPORT OF FACILITIES AND OTHER ASSETS THAT PROVIDE HEALTH CARE SERVICES; TO...

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TO PROMOTE, SUPPORT, AND FURTHER THE PENNSYLVANIA STATE UNIVERSITY; TO PROMOTE HEALTH THROUGH THE MANAGEMENT AND/OR SUPPORT OF FACILITIES AND OTHER ASSETS THAT PROVIDE HEALTH CARE SERVICES; TO INTEGRATE COMMUNITY-BASED AND ACADEMIC MEDICAL CENTER HEALTH CARE IN ORDER TO ACHIEVE IMPROVED OUTCOMES AND LIMIT THE COSTS OF CARE VIA IMPROVED EFFICIENCIES; TO SUPPORT FINANCIALLY AND OPERATIONALLY THE PENNSYLVANIA STATE UNIVERSITY COLLEGE OF MEDICINE; TO SUPPORT THE PENNSYLVANIA STATE UNIVERSITY IN THE PERFORMANCE OF ITS DUTIES AS SUCCESSOR TRUSTEE OF THE MILTON S. HERSHEY MEDICAL CENTER PURSUANT TO THAT CERTAIN DECREE OF THE ORPHANS COURT OF DAUPHIN COUNTY, PENNSYLVANIA DATED DECEMBER 17, 1968 (THE MSHMC TRUST); AND TO DO ALL LAWFUL ACTS INCIDENTAL TO THE ACCOMPLISHMENT OF SAID CHARITABLE, (CONTINUED IN SCHEDULE O) EDUCATIONAL, AND SCIENTIFIC PURPOSES.PENN STATE HEALTH PLAYS A VITAL ROLE IN SUPPORTING, BOTH OPERATIONALLY AND FINANCIALLY, THE PENNSYLVANIA STATE UNIVERSITY'S COLLEGE OF MEDICINE. THE PURPOSES OF THE TWO ORGANIZATIONS ARE INTEGRALLY INTERTWINED AND MUTUALLY SUPPORTIVE. PENN STATE HEALTH OFFERS THE COLLEGE OF MEDICINE ADDITIONAL PLATFORMS FOR EDUCATION AND RESEARCH AS WELL AS GENERATES SHARED REVENUE, WHEREAS THE COLLEGE OF MEDICINE OFFERS PENN STATE HEALTH ACCESS TO INNOVATIONS, CLINICAL TRIALS, DISCOVERIES AND A PIPELINE OF CLINICIANS AND SCIENTISTS.IN RECENT YEARS, THE PENN STATE HEALTH SYSTEM HAS UNDERGONE SUBSTANTIAL GROWTH AND MADE SIGNIFICANT PROGRESS TOWARDS CREATING A HIGH-QUALITY, LARGE SCALE INTEGRATED HEALTH CARE DELIVERY SYSTEM TO SERVE THE POPULATION OF SOUTHCENTRAL PENNSYLVANIA, BY FOCUSING ON BUILDING AN ACADEMIC HEALTH SYSTEM SUPPORTED BY A COMMUNITY NETWORK, ANCHORED BY THE ACADEMIC TERTIARY/QUATERNARY CARE RESOURCES OF ITS RELATED ORGANIZATION, MILTON S. HERSHEY MEDICAL CENTER.THE PENN STATE HEALTH SYSTEM HAS SIX, NONPROFIT TAX-EXEMPT, ACUTE CARE HOSPITALS. THE MILTON S. HERSHEY MEDICAL CENTER (MSHMC) IS A 639-LICENSED BED ACADEMIC MEDICAL CENTER LOCATED IN HERSHEY, PENNSYLVANIA. ST. JOSEPH REGIONAL HEALTH NETWORK (SJRHN) IS A 204-LICENCED BED HOSPITAL IN THE BERKS COUNTY REGION. HOLY SPIRIT MEDICAL CENTER (HSMC) WAS ACQUIRED ON NOVEMBER 1, 2020 AND IS A 306-LICENSED BED HOSPITAL IN CUMBERLAND COUNTY. PENN STATE HEALTH HAMPDEN MEDICAL CENTER (PSHHMC), OPENED IN OCTOBER 2021, IS A 110-LICENSED BED HOSPITAL ALONGSIDE INTERSTATE 81 IN HAMPDEN TOWNSHIP. PENN STATE HEALTH LANCASTER MEDICAL CENTER (PSHLMC), OPENED IN OCTOBER 2022, IS A 142-LICENSED BED HOSPITAL LOCATED IN LANCASTER COUNTY. PENNSYLVANIA PSYCHIATRIC INSTITUTE (PPI), IS A 89-BED ACUTE CARE PSYCHIATRIC FACILITY THAT SPECIALIZES IN PSYCHIATRIC AND SUBSTANCE ABUSE TREATMENT. ALL ACUTE CARE HOSPITALS PROVIDE INPATIENT, OUTPATIENT AND EMERGENCY CARE SERVICES.ON JULY 1, 2023, PENN STATE HEALTH ASSUMED 100% GOVERNANCE CONTROL OF HARRISBURG-BASED PENNSYLVANIA PSYCHIATRIC INSTITUTE (PPI) AND INTEGRATED THE SPECIALTY HOSPITAL INTO ITS OPERATIONS IN DECEMBER OF THAT YEAR. PPI WAS CREATED IN 2008 AS A COLLABORATION OF PENN STATE MILTON S. HERSHEY MEDICAL CENTER AND PINNACLE HEALTH SYSTEM.PPI IS A 89-LICENSED BED BEHAVIORAL HEALTH HOSPITAL THAT OFFERS A FULL RANGE OF BEHAVIORAL HEALTH CARE FOR PEOPLE OF ALL AGES AND SERVES MORE THAN 45,000 PATIENTS EACH YEAR THROUGH COMPREHENSIVE BEHAVIORAL HEALTH CARE THAT INCLUDES INPATIENT CARE, PARTIAL HOSPITALIZATION PROGRAMS, OUTPATIENT CLINICS AND SPECIALTY ACCESS. THE INSTITUTE IS A CENTER OF EXCELLENCE FOR COMMUNITY PSYCHIATRY AND A SITE FOR THE NATIONAL INSTITUTE ON DRUG ABUSE CLINICAL TRIALS NETWORK. PPI DEMONSTRATES PENN STATE HEALTH'S COMMITMENT TO PROVIDING VITAL BEHAVIORAL HEALTH SERVICES IN PENNSYLVANIA. PENN STATE HEALTH HAS THREE SINGLE MEMBER LLCS AS FOLLOWS:PENN STATE HEALTH COMMUNITY MEDICAL GROUPPENN STATE HEALTH'S COMMUNITY MEDICAL GROUP IS CHARGED WITH SERVING THE REGIONS SURROUNDING HERSHEY MEDICAL CENTER AND THE COLLEGE OF MEDICINE. CURRENTLY COMPOSED OF 650 PROVIDERS AND 2,000 TOTAL STAFF, THE COMMUNITY MEDICAL GROUP STAFFS EACH OF THE SIX COMMUNITY ACUTE CARE MEDICAL CENTERS. SERVICES INCLUDE IN-PATIENT, SPECIALTY AND PRIMARY CARE PROGRAMS THAT FOCUS ON HIGH QUALITY CARE CLOSE TO HOME. PRIMARY CARE PRACTICES SERVICE DAUPHIN, CUMBERLAND, BERKS AND LANCASTER COUNTIES WITH A FULL ARRAY OF ADULT AND PEDIATRIC GENERAL SERVICES AS WELL AS WALK-IN AND URGENT CARE. COMMUNITY MEDICAL GROUP COVERS APPROXIMATELY 215,000 PRIMARY CARE PATIENTS. SUBSPECIALTY SERVICES ARE ALSO ROBUST IN EACH COUNTY WITH QUATERNARY CARE NEEDS BEING REFERRED TO HERSHEY MEDICAL CENTER. IN-PATIENT SERVICES INCLUDE HOSPITALIST, EMERGENCY MEDICINE, CRITICAL CARE, NEONATOLOGY, OBSTETRICS, ANESTHESIA, AS WELL AS DIAGNOSTIC AND INTERVENTIONAL RADIOLOGY. PENN STATE HEALTH LIFE LION LLCPENN STATE HEALTH LIFE LION LLC (LL LLC) IS THE HEALTH SYSTEM'S COMMUNITY FACING 911 EMERGENCY MEDICAL SERVICE (EMS) PROVIDER. INCORPORATED IN THE SUMMER OF 2020 THIS BROUGHT TOGETHER SEVERAL ESTABLISHED 3RD PARTY EMS ENTITIES UNDER THE PSH UMBRELLA AND HELPED SOLIDIFY AND EXPAND THE 911 SERVICE THESE EMS ENTITIES WHERE PROVIDING FOR MANY YEARS. LL LLC IS COMPRISED OF APPROXIMATELY 270 CLINICIANS AND SUPPORT STAFF AND PROVIDES 24/7 911 EMERGENCY SERVICES TO OVER 60 MUNICIPALITIES THROUGHOUT CUMBERLAND, PERRY, YORK, LANCASTER AND DAUPHIN COUNTIES. LL LLC RESPONDS TO OVER 30,000 CALLS FOR ASSISTANCE IN A GIVEN YEAR AND IS DISPATCHED THROUGH THE 911 CENTERS OF THE COUNTIES NOTED. SERVICES ARE PROVIDED AT BOTH THE BASIC LIFE SUPPORT (BLS) AND ADVANCED LIFE SUPPORT (ALS) LEVELS RESPONDING TO ANY 911 CALL THAT REQUIRES PRE HOSPITAL EMS CARE. LL LLC IS LICENSED BY THE COMMONWEALTH OF PA DEPT. OF HEALTH BUREAU OF EMS, AND FOLLOWS ALL CLINICAL REQUIREMENTS AND STANDARDS SET FORTH BY THE PA DOH FOR EMS AGENCIES. THESE 911 PATIENTS ARE TRANSPORTED TO MANY DIFFERENT HOSPITALS, NOT JUST PENN STATE HEALTH HOSPITALS. THIS IS PER THE PATIENT/FAMILY REQUEST OR DIRECTED BY COMMONWEALTH OF PA EMS PROTOCOLS WHERE INDICATED. BY PROVIDING THIS SERVICE PENN STATE HEALTH HELPS TO ALLEVIATE THESE MUNICIPALITIES OF THE COST AND BURDEN OF HAVING TO PROVIDE FOR EMS SERVICES ON THEIR OWN. AN EMS PROGRAM AFFILIATED WITH A HEALTH SYSTEM ALSO HELPS TO PROVIDE A HIGHER QUALITY OF EMS THAN WHAT MANY MUNICIPAL AGENCIES WOULD BE ABLE TO FIELD ON THEIR OWN. IN ADDITION, LL LLC ALSO PROVIDES NON-EMERGENCY TRANSPORTATION FOR PATIENTS REQUIRING AMBULANCE OR WHEELCHAIR SERVICES OUT OF, AND BETWEEN THE VARIOUS PENN STATE HEALTH HOSPITALS. LL LLC ALSO PROVIDES COMMUNITY EDUCATION AND OUTREACH FOR VARIOUS COMMUNITY GROUPS ON CPR, FIRST AID, SAFETY AND WELL-BEING AND OTHER PRE-HOSPITAL SERVICES AS NEEDED. LL LLC WORKS CLOSELY WITH MULTIPLE OTHER FIRST RESPONDER AGENCIES, INCLUDING POLICE, FIRE AND LOCAL AND STATE EMERGENCY MANAGEMENT AGENCIES TO PLAN FOR AND MITIGATE EMERGENCY OR DISASTER INCIDENTS WHEN THEY ARISE. CENTRAL PA HEALTH NETWORK, LLCCENTRAL PA HEALTH NETWORK, LLC (DBA: PENN STATE HEALTH CARE PARTNERS) IS THE PENN STATE HEALTH (PSH) SYSTEM'S CLINICALLY INTEGRATED NETWORK (CIN). GOVERNED BY A BOARD OF MANAGERS, THE CIN IS A COLLECTION OF HEALTH PROVIDERS THAT INCLUDES PHYSICIANS, HOSPITALS, AND POST-ACUTE SPECIALISTS WHO JOIN TOGETHER TO COORDINATE CARE, IMPROVE THE QUALITY OF CARE AND REDUCE COSTS FOR POPULATIONS. THE CIN HAS FORMED A COLLABORATION BETWEEN PSH AND 31 INDEPENDENT COMMUNITY PRACTICES ACROSS CENTRAL PA AND STATE COLLEGE REGIONS. THE CIN OFFERS VALUE-BASED CARE PROGRAMS TO THIS GROUP OF PHYSICIANS AND OTHER CARE PROVIDERS. THE CIN USES DATA FROM THESE PROGRAMS TO IDENTIFY CLINICAL INTERVENTIONS, INCREASE ADHERENCE TO CARE PLANS, SHARE BEST PRACTICES, THAT PROVIDE FINANCIAL REWARDS FOR IMPROVED CLINICAL OUTCOMES AND COST CONTROL ACHIEVEMENTS. OUR CIN IS CURRENTLY ADMINISTERING A COMMERCIAL PAYOR VALUE-BASED CARE PROGRAMS FOR 26,000 PEDIATRIC PATIENTS FOR ACROSS THE PSH REGIONS. IN ADDITION, THE CIN OFFERS POPULATION HEALTH MANAGEMENT SERVICES TO EMPLOYER GROUPS. THESE SERVICES INCLUDE DATA ANALYTICS AND CARE MANAGEMENT SERVICES THAT HAVE DEMONSTRATED IMPROVEMENTS IN PATIENT ADHERENCE TO CARE PLANS AND REDUCTION IN INAPPROPRIATE UTILIZATION TRANSLATING TO COST SAVINGS FOR AN EMPLOYER.

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Trantor Score

Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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

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Financial Overview (2023)

Revenue Breakdown

Contributions & Grants $743,613
Program Service Revenue $773,691,912
Investment Income $37,108,949
Other Revenue $54,476,429
TOTAL REVENUE $866,020,903

Expense Breakdown

Grants Paid $72,506,613
Salaries & Benefits $593,497,944
Fundraising Expenses $0
Program Expenses $847,828,163
Other Expenses $367,755,979
TOTAL EXPENSES $1,033,760,536

Year-over-Year Comparison

2023 2022 Change
Revenue $866,020,903 $601,230,428 +0.4%
Expenses $1,033,760,536 $881,341,749 +0.2%
Net Income $-167,739,633 $-280,111,321 -0.4%
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
15
Independent Members
11
Employees
5359
Volunteers
11

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
9
$4,591,870
Total Directors
16
$4,885,791
Key Employees
5
$3,275,743
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
STEPHEN MASSINI DIRECTOR / CEO 48.00
Officer Director
$1,600,902 $68,408 $1,669,310
NEELI BENDAPUDI DIRECTOR (PSU EMP) 1.00
Director
$0 $56,351 $1,434,827
KEVIN P BLACK MD DIRECTOR / DEAN (THRU 8/23) 1.00
Director
$0 $51,975 $803,960
DR SARA THORNDIKE DIRECTOR (PSU EMP) 1.00
Director
$0 $51,574 $600,157
DR KAREN KIM DIRECTOR / DEAN (AS OF 9/23) 1.00
Director
$0 $45,830 $377,537
KEITH MASSER CHAIR / DIRECTOR 1.00
Officer Director
$0 $0 $0
MARK DAMBLY VICE CHAIR / DIRECTOR 1.00
Officer Director
$0 $0 $0
TIMOTHY P BROWN DIRECTOR 1.00
Director
$0 $0 $0
PETER M CARLINO DIRECTOR 1.00
Director
$0 $0 $0
TONY FARAH DIRECTOR 1.00
Director
$0 $0 $0
KAREN HANLON DIRECTOR 1.00
Director
$0 $0 $0
DAVID KLEPPINGER DIRECTOR 1.00
Director
$0 $0 $0
DEBORAH RICE-JOHNSON DIRECTOR 1.00
Director
$0 $0 $0
BARRY ROBINSON DIRECTOR 1.00
Director
$0 $0 $0
PETER G TOMBROS DIRECTOR 1.00
Director
$0 $0 $0
STEVEN WAGMAN DIRECTOR 1.00
Director
$0 $0 $0
DEBORAH ADDO PRESIDENT / COO 43.00
Officer
$989,928 $112,426 $1,102,354
PAULA TINCH EVP & CFO, TREASURER 48.00
Officer
$770,936 $113,925 $884,861
NICOLE LEHMAN INTERIM SEC. (PSU EMP) 1.00
Officer
$0 $103,230 $366,966
ROSS DARROW ASSOC. TREAS / VP TREAS - FINANCE 44.00
Officer
$297,918 $66,026 $363,944
KATHLEEN MILLER ASSOC. SECRETARY (THRU 5/24) 33.00
Officer
$101,559 $11,101 $112,660
ANN ALLWEIN INTERIM ASSOC. SEC. (AS OF 5/24) 33.00
Officer
$77,372 $14,403 $91,775
PETER DILLON MD PRN PHYSICIAN LEADER (THRU 12/23) 50.00
Key Emp
$538,613 $32,393 $571,006
THOMAS STOESSEL EXEC VP & CHIEF STRATEGY OFFICER 45.00
Key Emp
$741,755 $68,408 $810,163
CLETIS EARLE SENIOR VP & CIO 40.00
Key Emp
$582,929 $94,814 $677,743
JUDITH HLAFCSAK CHIEF OF STAFF 38.00
Key Emp
$575,663 $78,793 $654,456
KIMBERLY LANSFORD CHIEF COMPLIANCE AND BUSINESS RISK 40.00
Key Emp
$500,387 $61,988 $562,375
ROLINE ADOLPHINE PHYSICIAN 40.00
Highest
$1,098,941 $35,006 $1,133,947
LANCE WOOD MD PHYSICIAN 40.00
Highest
$1,023,663 $67,683 $1,091,346
DANIEL LODGE PHYSICIAN 40.00
Highest
$947,796 $51,070 $998,866
IAN WILHELM PHYSICIAN 40.00
Highest
$936,306 $45,637 $981,943
DENNIS DURYEA PHYSICIAN 40.00
Highest
$927,763 $52,333 $980,096
DR ERIC BARRON FMR DIRECTOR (PSU EMP) (THRU 5/22) 0.00
$0 $40,407 $647,052
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
2025 No data No data No data No data
2024 $866,020,903 $1,033,760,536 $1,637,318,794 $-167,739,633
2023 $601,230,428 $881,341,749 $1,460,460,820 $-280,111,321
2022 $528,411,422 $716,043,116 $1,585,838,588 $-187,631,694
2021 $534,372,914 $612,082,108 $1,838,675,424 $-77,709,194
2020 $424,892,556 $527,247,411 $2,010,298,637 $-102,354,855
2019 $301,760,919 $428,422,773 $1,277,843,609 $-126,661,854
2018 $226,079,946 $243,243,032 $418,101,541 $-17,163,086
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