# Financial Intelligence — Revenue, Workforce, Executive Comp, M&A

**Audience:** healthcare M&A advisors, PE healthcare desks, IB groups, healthcare investors, pharma/medtech sales targeting, compliance and audit teams.

**What this is.** A federally-anchored financial profile for every U.S. health system in our coverage: annual revenue, expenses, total assets, W-2 employee headcount, named executive compensation, and recent M&A activity — sourced from IRS Form 990, DOL Form 5500, and SEC EDGAR. Every claim cites its filing URL.

## What's in v1 (shipped)

| Source | What it gives us | Scope |
|---|---|---|
| **IRS Form 990 (Schedule R + Schedule J)** | Nonprofit health systems: annual revenue + expenses + total assets, related-organization subsidiary structure, top compensated employees (typically 20-25 per filing). Loaded from the IRS e-File bulk XML index. | ~30 nonprofit health systems (Mayo, Cleveland Clinic, MGB, Northwell, NYU Langone, Sutter, Kaiser, UPMC, Henry Ford, Providence, more) |
| **DOL Form 5500** | Every employer with an ERISA-qualified retirement or welfare plan. Plan sponsor EIN + active participant count = floor on W-2 employee count. | ~26K healthcare-NAICS-filtered filings per year (NAICS 621xxx, 622xxx, 623xxx) |
| **SEC EDGAR 10-K** | Public healthcare-services companies: annual income statement + balance sheet for the last 5 fiscal years. | 30 curated tickers covering for-profit hospitals (HCA, Tenet, UHS, CYH, Ardent), ASCs (Surgery Partners), post-acute (Encompass, Acadia, Select Medical), labs (Labcorp, Quest), payviders (UnitedHealth, Humana, CVS, Elevance, Centene, Molina, Cigna), telehealth (Teladoc, Amwell), home health (Addus, Enhabit, Pennant), and PE-platform-adjacent (Privia, Alignment, LifeStance, Option Care, US Physical Therapy, Apollo Medical) |
| **SEC EDGAR 8-K** | Ingestion log for ~800 recent Form 8-K filings across the 30 tickers. Item 1.01 + 2.01 body parsing for M&A event extraction is in the next sprint. | M&A event feed scaffolded; population deferred. |

## API surface

| Endpoint | What it returns |
|---|---|
| `GET /systems/{system_id}/financials` | Multi-source financial filings rolling up across all EINs in the system_hierarchy. IRS 990 + DOL 5500 + SEC 10-K rows side by side per fiscal year. |
| `GET /systems/{system_id}/financials/executives` | Top compensated executives from Schedule J + 10-K NEO across the system's EINs. matched_npi populated when the executive is also an NPPES-registered clinician. |
| `GET /systems/{system_id}/financials/workforce` | DOL Form 5500 active-participant counts per EIN per year. headline_active_participants_latest is the W-2 employee anchor. |
| `GET /companies/{ticker}` | Public company profile: ticker / CIK / system_id linkage + 5-year revenue trajectory + filings inventory. |
| `GET /companies/search?q=` | Substring search across SEC-loaded company names and tickers. |
| `GET /ma-events/recent?days=N` | Recent M&A events from 8-K filings. Currently empty pending 8-K body parsing in follow-up sprint. |
| `GET /provider/{npi}/financial-affiliation` | Links a physician's PECOS billing employer to its financial profile. Returns employer EIN, system_id, latest revenue, workforce headcount, and any exec-comp match. |
| `GET /provider/{npi}` | Existing dossier — now includes `financial_intelligence` summary block. |

## Example payloads

**Cleveland Clinic** (`GET /systems/CLEVELAND_CLINIC/financials`):
- IRS 990 (2023): $8.96B revenue, 48,824 employees (from EmployeeCnt in Part V)
- DOL 5500 (2023): 65,407 active participants in the welfare plan (broader workforce anchor than 990's filing-org-only Part V)
- Both sources cited with public filing URLs

**HCA Healthcare** (`GET /companies/HCA`):
- 5-year revenue trajectory: $58.8B (2021) → $60.2B (2022) → $65.0B (2023) → $70.6B (2024) → $75.6B (2025)
- 29 10-K filings ingested, 412 8-Ks logged
- system_id=HCA links to v2's 14-division decomposition

**A Kaiser physician** (`GET /provider/{npi}/financial-affiliation`):
- Links the NPI's PECOS billing employer (e.g. Permanente Medical Group Inc) to Kaiser Foundation Health Plan's IRS 990 ($75.1B revenue, 30,295 employees)
- Returns deep_link to /systems/KAISER/financials for full detail

## How this is different from incumbents

**Definitive Healthcare** publishes some hospital-level financial data behind their paid tier; system-level rollups and executive compensation are not first-class product surfaces. M&A data is buried in their news/intelligence module.

**Doximity** has no financial intelligence layer at all.

**S&P Capital IQ / PitchBook** have rich financial data but their healthcare-services breadth (nonprofit + for-profit + payvider) is uneven and the pricing is six-figure enterprise.

**Our approach:** every financial fact cites a federally-filed public URL (IRS, DOL, or SEC). Customers can audit any revenue number back to its primary source. No proprietary "we cleaned it, trust us" layer between filing and API.

## Use cases

**Healthcare M&A diligence.** Buyer asks: "What's the financial profile of this nonprofit health system?" One call to `GET /systems/{id}/financials` returns 5 years of revenue + workforce + executive comp across all subsidiary EINs.

**Public-company peer comp.** `GET /companies/{ticker}` returns 5-year revenue history. Compare HCA vs Tenet vs UHS in three calls.

**Pharma + medtech sales targeting.** Which systems are growing financially (rising revenue) vs under margin pressure (revenue stagnant + expenses rising)? Cross-cutting query across `/systems/{id}/financials` returns this signal.

**Executive comp benchmarking for board comp consultants.** `GET /systems/{id}/financials/executives` returns Schedule J + 10-K NEO data with comp components separated (base, bonus, other, deferred). Useful for hospital board comp committees benchmarking CEO pay.

**Compliance audit of nonprofit health system finances.** Schedule R related-org structure is materialized into system_hierarchy. Customers can validate that a "system" they're looking at matches what's filed with the IRS.

## Source provenance

Every financial record returns:
- `source`: filing type (`irs_990`, `dol_5500`, `sec_10k`)
- `source_url`: the public filing URL where the original record can be verified
- `raw_payload`: the original fields from the source, preserved as JSONB

If a customer questions a revenue number, they can curl the source URL and see the same number on the IRS / DOL / SEC website.

## Limitations to disclose

1. **Nonprofit coverage is curated.** We've deeply parsed ~30 nonprofit systems. Adding a new system requires adding its EIN to our target list. ~300 EINs would cover the vast majority of US nonprofit health systems; that's the next expansion.
2. **For-profit coverage is the 30-ticker list.** Private healthcare PE platforms (USPI, Envision pre-bankruptcy, Optum's private subsidiaries) have no SEC filings — they're out of scope until we add a PitchBook/Capital IQ paid feed or state SOS LLC ownership parsing.
3. **M&A event feed is empty in v1.** We've ingested 800+ 8-K filings but haven't yet parsed the Item 1.01/2.01 body content. Coming in the next sprint.
4. **Executive NPI matching is best-effort.** We fuzzy-match Schedule J names to NPPES NPIs by last name + first initial + state. ~10-15% of matched executives are clinicians (typically CEOs at academic medical centers who hold an MD). The rest (CFOs, COOs, lay administrators) have no NPI match by design.
5. **Form 5500 active-participant counts include retirees in some plans.** The MAX-across-plans heuristic typically picks the welfare/health plan which is the cleanest active-employee proxy, but customers should treat as W-2 employee floor, not exact count.

## Source URLs

- IRS Form 990 Series Downloads: https://www.irs.gov/charities-non-profits/form-990-series-downloads
- DOL EFAST2: https://www.efast.dol.gov/
- SEC EDGAR: https://www.sec.gov/edgar.shtml
- ProPublica Nonprofit Explorer: https://projects.propublica.org/nonprofits/

## Pricing implication

Sold as a tier-up from the base Provider Intelligence API. Suggested tiers:
- **Standard:** the core provider + employer + license + quality intelligence surfaces.
- **Financial Intelligence Pro:** adds `/systems/{id}/financials*`, `/companies/*`, `/ma-events/*`. Separate add-on for M&A advisors + healthcare investors.
- **Premium Workforce Intelligence:** future — adds Form 5500 deeper detail (per-plan, plan-type filtering) and executive comp time-series.