Nonprofits/Organizations/56-1373175
Active
501(c)(3)
Form 990

Foundation Health Systems Corp

EIN 56-1373175WINSTON SALEM, NC 27103Founded 1983WebsiteIRS Tax Year 2023 · Period ending December 31, 2023
Mission Statement

SEE SCHEDULE O

IRS Tax Year 2023

Period ending December 31, 2023

Tax year 2024 filing not yet available. This is the most recent filing on record.

Total Revenue

$38.6M

-57.5%YoY

Total Expenses

$26.9M

-81.7%YoY

Net Assets

$265.9M

+10.8%YoY

Employees

788

+11.8%YoY

Volunteers

8

Program Expense Ratio

84.0%

This nonprofit profile presents IRS Form 990 tax filing data for Foundation Health Systems Corp (EIN: 56-1373175), based on the 2023 tax year annual return filed with the Internal Revenue Service.

Sections below include financial summaries (revenue, expenses, and net assets), program accomplishments, officer and key employee compensation, detailed executive pay breakdowns, top independent contractors, governance policies and audit information, related tax-exempt organizations. All figures are reported in USD as filed.

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RoundPaper IndicatorsTax Year 2023

Financial Health

Revenue declined -57.5% to $38.6M
Program spending ratio of 84.0% — good
118.6 months of operating reserves — strong cushion
Expenses decreased -81.7% year-over-year

Transparency

Conflict of interest policy adopted
Whistleblower policy in place
Financial statements independently audited
7-member board, 5 independent

Compensation

Top compensation: $7,026,721 (TRUSTEE, PRES/CEO NH)
Top exec pay is 26.1% of total expenses — elevated
Schedule J filed for 9 individuals — detailed disclosure
36 executive perks reported — above typical

Program Effectiveness

1 program reported
84.0% of spending goes to programs
1 program generates revenue — self-sustaining activity
8 volunteers engaged

Financial Stability

Debt-to-asset ratio of 6.6% — low leverage
0.0 months cash runway — tight liquidity
Revenue diversification: concentrated in few sources
Net assets consistently growing over recent filings

Risk Flags

No insider or excess benefit transactions
No material diversion or misuse reported
No family/business relationships on board

Indicators derived from IRS Form 990 data. Not financial advice.

Organization Summary

Foundation Health Systems Corp is a 501(c)(3) nonprofit headquartered in WINSTON SALEM, NC, founded in 1983. In its 2023 filing, the organization reported $38.6M in total revenue, a 57.5% decrease from the prior year, and $26.9M in total expenses. The organization employed 788 people and engaged 8 volunteers. CARL ARMATO, TRUSTEE, PRES/CEO NH, is the highest-compensated individual at $7,026,721. The organization runs 1 program, totaling $22.6M in program expenses. 4 of 6 recommended governance policies are in place. Executive benefits include first-class travel, companion travel, housing allowance, discretionary spending.

Programs(Tax Year 2023)

1 record

Programs Overview

Foundation Health Systems Corp operates 1 program, with total program expenses of $22.6M. Foundation Health Systems Corp's largest program accounts for 100% of total program spending.

1
Program 1
Changed
Expenses: $22,587,164

THE ORGANIZATION OPERATES TO PROMOTE HEALTHCARE WITHIN THE COMMUNITIES IT SERVES BY PROVIDING OUTPATIENT SURGICAL DIAGNOSTIC, REHABILITATION, AND WOMEN'S HEALTHCARE SERVICES. THE FACILITIES OPERATED BY THE ORGANIZATION MAINTAIN AN OPEN DOOR POLICY AND STRIVE TO SERVE THOSE WITH THE GREATEST NEED, REGARDLESS OF THE PATIENT'S ABILITY TO PAY. DURING 2023, THE ORGANIZATION EXPERIENCED A TOTAL OF 676,878 OUTPATIENT ENCOUNTERS.

Financial Overview(Tax Years 2019–2023)

5 records

Financial Highlights

Over the past 5 years, Foundation Health Systems Corp's revenue has declined from $82.0M to $38.6M, a 52.9% decrease. Program expenses represent 84% of total spending.

Revenue decreased 57.5% year-over-year, while expenses declined 81.7%. net assets rose to $265.9M, up 10.8% from the prior year. the organization added 83 employees.

Foundation Health Systems Corp derives 1% from contributions and grants, with 98% from program services, with 0% from investment income.

Revenue is heavily concentrated: 98% comes from program service revenue, indicating limited diversification.

Foundation Health Systems Corp allocates 84% to programs, 9% to management and general.

Revenue declined by 57.5% and expenses declined by 81.7% year over year.

Over 5 filings from 2019–2023, Foundation Health Systems Corp declined revenue from $82.0M to $38.6M (-52.9%) while maintaining a program expense ratio of 84%. During this period, the organization grew from 613 to 788 employees.

Foundation Health Systems Corp holds $284.5M in total assets against $18.6M in liabilities (debt-to-asset ratio of 7%). The organization has 118.6 months of operating reserves. Cash and equivalents of $87K cover approximately 0.0 months of expenses.

Revenue

YearTotal RevenueContributionsGov't GrantsProgram RevenueInvestment
2023$38.6M$574K$0$38.0M$5K
2022$90.9M$500K$0$90.0M$353K
2021$92.3M$517K$0$91.9M$-112K
2020$76.3M$2.3M$1.6M$74.1M$-73K
2019$82.0M$500K$0$81.2M$287K

Expenses

YearTotal ExpensesProgramManagementFundraisingGrants Paid
2023$26.9M$22.6M$2.3M$0$0
2022$147.4M$133.1M$14.2M$0$500
2021$81.7M$68.7M$13.0M$0$27K
2020$73.8M$62.6M$11.2M$0$69K
2019$74.9M$63.8M$11.1M$0$0

Program Expense Ratio

84.0%

Admin Expense Ratio

8.7%

Fundraising Efficiency

Operating Reserve

118.6 mo

People & Compensation(Tax Year 2023)

14 records

Compensation Summary

Foundation Health Systems Corp reported compensation for 14 officers and key employees. Total officer compensation was $14.4M, representing 53.6% of total expenses. 7 individuals received total compensation exceeding $500,000.

Foundation Health Systems Corp's highest-compensated individual received $7.0M in total compensation. Total officer compensation of $14.4M represents 53.6% of total expenses. 4 individuals received total compensation exceeding $1,000,000.

NameTitleTypeHours/wkComp from OrgRelated OrgsTotal
CARL ARMATOTRUSTEE, PRES/CEO NH
Director
0.20$0$5,820,530$7,026,721
FRED HARGETTEVP/CFO (TO 9/6/23)
Officer
0.20$0$2,400,670$2,451,375
PAMELA OLIVER MDTRUSTEE, EVP, PRES PHYS NTWRK
OfficerDirector
0.20$0$1,687,459$1,919,426
GEOFFREY GARDNERCFO (FR 9/6/23)
Officer
0.20$0$909,106$1,037,855
SCOTT MCGRAW MDRADIOLOGIST
Highest Comp
45.00$465,539$0$525,274
WALTER HATCHER MDRADIOLOGIST
Highest Comp
45.00$470,453$0$516,410
DANIEL GORDON MDRADIOLOGIST
Highest Comp
45.00$466,999$0$512,423
CRESS GOODNIGHTMGR REGIONAL REHAB SERVICES
Highest Comp
45.00$184,671$0$213,852
JEFFREY LEMONSMGR REGIONAL REHAB SERVICES
Highest Comp
45.00$182,328$0$213,225
JOSEPH ELYVICE CHAIR
OfficerDirector
0.20$0$0$0
DOUGLAS YOUNG PHDTRUSTEE, SECR/TREAS
OfficerDirector
0.20$0$0$0
DANIEL MURPHY MDCHAIR
OfficerDirector
0.20$0$0$0
DANIELLE SQUIRESTRUSTEE
Director
0.20$0$0$0
ROBERT BARR MDTRUSTEE
Director
0.20$0$0$0

Compensation Breakdown

Schedule J detail — base, bonus, benefits, and executive perks

CARL ARMATO

Base Salary

Bonus

Other Reportable

Retirement/Deferred

Nontaxable Benefits

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

FRED HARGETT

Base Salary

Bonus

Other Reportable

Retirement/Deferred

Nontaxable Benefits

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

PAMELA OLIVER MD

Base Salary

Bonus

Other Reportable

Retirement/Deferred

Nontaxable Benefits

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

GEOFFREY GARDNER

Base Salary

Bonus

Other Reportable

Retirement/Deferred

Nontaxable Benefits

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

SCOTT MCGRAW MD

Base Salary

$418,007

Bonus

$21,981

Other Reportable

$25,551

Retirement/Deferred

$19,800

Nontaxable Benefits

$39,935

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

WALTER HATCHER MD

Base Salary

$421,177

Bonus

$21,506

Other Reportable

$27,770

Retirement/Deferred

$19,800

Nontaxable Benefits

$26,157

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

DANIEL GORDON MD

Base Salary

$423,407

Bonus

$19,051

Other Reportable

$24,541

Retirement/Deferred

$19,800

Nontaxable Benefits

$25,624

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

CRESS GOODNIGHT

Base Salary

$112,505

Bonus

$9,750

Other Reportable

$62,416

Retirement/Deferred

$6,975

Nontaxable Benefits

$22,206

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

JEFFREY LEMONS

Base Salary

$112,615

Bonus

$10,064

Other Reportable

$59,649

Retirement/Deferred

$7,066

Nontaxable Benefits

$23,831

Executive Perks

First-class travelCompanion travelHousing allowanceDiscretionary spending

Top Contractors(Tax Year 2023)

5 records

Contractor Summary

Foundation Health Systems Corp reported 5 contractors receiving over $100,000, with total contractor payments of $5.3M.

NameServiceCompensation
TRIMEDX INCCLINICAL ENGINEERING SERVICES$3,277,897
SHELCO LLCCONSTRUCTION SERVICES$1,420,815
IMAGEFIRST HEALTHCARE LAUNDRY SPECIALISTLAUNDRY SERVICE$300,217
LANGUAGE RESOURCE CENTERINTERPRETER SERVICES$202,846
DPS TELECOM SERVICESREMOTE MONITORING SERVICES$136,075

Governance & Compliance(Tax Year 2023)

Governance Snapshot

Foundation Health Systems Corp has 4 of 6 recommended governance policies in place, including conflict of interest, whistleblower, document retention. Its board has 7 members, 5 of whom are independent.

Foundation Health Systems Corp's financial statements are audited, an audit committee oversees the process, the organization is subject to a federal grant audit (Single Audit).

Policies & Oversight

Conflict of interest policy
Whistleblower policy
Document retention policy
CEO compensation review process
Other officer compensation review
990 provided to governing body
Board members7
Independent members5

Audit & Financial Oversight

Financial statements audited
Independent audit
Audit committee
Federal grant audit required

Filing History(Tax Years 1983–2023)

5 records

Showing the 5 Form 990 filings currently in our system.

Tax YearFormPeriodRevenueExpensesNet Assets
2023
990
2023-01-01 – 2023-12-31$38.6M$26.9M$265.9M
2022
990
2022-01-01 – 2022-12-31$90.9M$147.4M$239.9M
2021
990
2021-01-01 – 2021-12-31$92.3M$81.7M$265.0M
2020
990
2020-01-01 – 2020-12-31$76.3M$73.8M$254.4M
2019
990
2019-01-01 – 2019-12-31$82.0M$74.9M$251.9M
1983–2018No filings acquired yet

Frequently Asked Questions

What does Foundation Health Systems Corp do?

SEE SCHEDULE O

How much revenue does Foundation Health Systems Corp have?

Foundation Health Systems Corp reported $38,638,230 in total revenue for tax year 2023, down 57.5% from the prior year.

Who is the highest-paid executive at Foundation Health Systems Corp?

CARL ARMATO, TRUSTEE, PRES/CEO NH, received $7,026,721 in total compensation as of tax year 2023.

Is Foundation Health Systems Corp a 501(c)(3)?

Yes, Foundation Health Systems Corp is classified as a 501(c)(3) tax-exempt organization.

Where is Foundation Health Systems Corp located?

Foundation Health Systems Corp is headquartered in WINSTON SALEM, NC 27103.

How many employees does Foundation Health Systems Corp have?

Foundation Health Systems Corp has 788 employees and 8 volunteers as of tax year 2023.

Is Foundation Health Systems Corp audited?

Yes, Foundation Health Systems Corp's financial statements are audited, and the organization has an audit committee.

Data Source

IRS Form 990 electronic filings via the IRS Exempt Organizations Business Master File. All financial figures are as reported in USD.

Publicly available IRS data
Verified filing records
Updated quarterly
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