2026-05-15T19:47:36-05:00 2025-06-30 390859910 BAKER TILLY ADVISORY GROUP LP 20 STANWIX STREET PITTSBURGH PA 15222 990 2024-07-01 250965274 BUTLER HEALTHCARE PROVIDERS BUTL 7242844166 ONE HOSPITAL WAY BUTLER PA 16001 THOMAS S ALBANESI JR CPA FHFMA CFO 7242844166 2026-04-24 1 1 KELLY A BROCIOUS P01254262 4126976400 2026-04-13 2024 2025-03-06 01:10:19Z BUTLER MEMORIAL HOSPITAL KENNETH P DEFURIO ONE HOSPITAL WAY BUTLER PA 16001 333028054 0 X WWW.INDEPENDENCE.HEALTH X 1898 PA BUTLER HEALTHCARE PROVIDERS, AN AFFILIATE OF INDEPENDENCE HEALTH SYSTEM, WILL BE RECOGNIZED AS THE PREMIER PROVIDER OF HIGH QUALITY, VALUE-DRIVEN AFFORDABLE INTEGRATED CARE IN THE REGION. WE WILL ACHIEVE THIS THROUGH UNWAVERING COMMITMENT TO INDIVIDUAL AND ORGANIZATIONAL EXCELLENCE AND TECHNOLOGICAL INNOVATION. 10 8 2298 8 5630404 260167 1242479 6431056 310140580 314372495 5816131 4895308 7382995 7329195 324582185 333028054 0 0 0 0 128686575 140232444 0 0 0 167958084 164748256 296644659 304980700 27937526 28047354 383733665 408629116 205284746 190997750 178448919 217631366 X BUTLER HEALTHCARE PROVIDERS, AN AFFILIATE OF INDEPENDENCE HEALTH SYSTEM, EXISTS TO PROVIDE A TRUSTED DELIVERY OF CARE WHICH MAKES A POSITIVE IMPACT ON THE LIVES OF EVERY INDIVIDUAL WE TOUCH. 0 0 273409265 314372495 BUTLER HEALTHCARE PROVIDERS D/B/A BUTLER MEMORIAL HOSPITAL (BMH) IS AN INDEPENDENT, COMMUNITY-BASED HOSPITAL THAT HAS SERVED BUTLER COUNTY, PA, AND THE SURROUNDING AREA FOR OVER 100 YEARS. BMH EMPLOYS APPROXIMATELY 1,600 PEOPLE. BMH HAS GROWN INTO A REGIONAL REFERRAL CENTER. IT IS THE LARGEST HOSPITAL FACILITY BETWEEN PITTSBURGH AND ERIE. IT IS COMPRISED OF 296 ACUTE CARE BEDS. BMH SERVES APPROXIMATELY 10,200 ACUTE CARE PATIENTS (ADMISSIONS) AND NEARLY 430,000 OUTPATIENT REGISTRATIONS EACH YEAR. BMH MAINTAINS A DEEP COMMITMENT TO ITS COMMUNITY, AS IS DEMONSTRATED THROUGH ITS BROAD SERVICES OFFERING, INCLUDING ALL LEVELS OF GENERAL MEDICAL AND SURGICAL CARE, EMERGENCY SERVICES, OBSTETRICS AND GYNECOLOGY SERVICES, A ROBUST BEHAVIORAL HEALTH SERVICE, DRUG AND ALCOHOL TREATMENT, FAMILY SERVICES, PREVENTATIVE & WELLNESS PROGRAMS AND TERTIARY CARDIOVASCULAR CARE. IT ALSO HAS A NETWORK OF APPROXIMATELY 60 CONVENIENT, LOW COST OUTPATIENT SITES THAT ARE LOCATED IN COMMUNITIES THROUGH BUTLER COUNTY AND THE SURROUNDING AREA. A DESCRIPTION OF THE TOP THREE SERVICE LINES FOLLOW.BUTLER MEMORIAL HOSPITAL (BMH) MEDICAL IMAGING SERVICES PROVIDES THE COMMUNITIES WE SERVE WITH EASY ACCESS TO THE LATEST MEDICAL IMAGING TECHNOLOGIES. BUTLER MEMORIAL HOSPITAL IMAGING SERVICES INCLUDE COMPUTERIZED TOMOGRAPHY (CT), MEDICAL RESONANCE IMAGING (MRI), PET/CT, AND DIGITAL MAMMOGRAPHY. ADDITIONAL IMAGING SERVICE INCLUDE ULTRASOUND (SONOGRAPHY), NUCLEAR MEDICINE, BONE DENSITY TESTING, X-RAYS AND FLUOROSCOPIC STUDIES. BMH'S IMAGING STUDIES ARE INTERPRETED BY ON-SITE BOARD-CERTIFIED RADIOLOGISTS TRAINED IN THE FOLLOWING SUBSPECIALTIES: INTERVENTIONAL RADIOLOGY, WOMEN'S IMAGING, MUSCULOSKELETAL IMAGING, BODY IMAGING, NEURORADIOLOGY AND ADVANCED VEIN CARE. BMH PROVIDED MEDICAL IMAGING SERVICES TO APPROXIMATELY 100,000 PATIENTS.CARDIOLOGY SERVICES AT BUTLER MEMORIAL HOSPITAL PROVIDES ROUTINE CARDIAC CARE, INTERVENTIONAL CARDIOLOGY, ELECTROPHYSIOLOGY, OPEN HEART SURGERY AND CARDIAC REHABILITATION. OTHER SERVICE AREAS INCLUDE A DEVICE MANAGEMENT CLINIC, VALVE CLINIC, HEART FAILURE CLINIC AND CHEST PAIN CENTER WITH PCI ACCREDITATION.BUTLER MEMORIAL HOSPITAL LABORATORY HAS STATE-OF-THE ART INSTRUMENTATION COMPLEMENTED BY PROFESSIONAL EXPERTISE IN MICROBIOLOGY, PATHOLOGY, CHEMISTRY, HEMATOLOGY AND CYTOLOGY. OUR LABORATORY PROVIDES BLOOD WORK AND TESTING THROUGHOUT OUR SERVICE AREA, FOR PATIENTS, PHYSICIAN OFFICES AND LONG-TERM CARE FACILITIES AND IS ACCREDITED BY THE COLLEGE OF AMERICAN PATHOLOGISTS (CAP) AND LICENSED BY THE CLINICAL LABORATORY IMPROVEMENT ACT (CLIA). LABORATORY SERVICES VARY BY LOCATION AND COVER ALL OF THE FOLLOWING AREAS: SURGICAL PATHOLOGY, MOLECULAR DIAGNOSTICS, DERMATOPATHOLOGY, CYTOPATHOLOGY, HEMATOPATHOLOGY AND TRANSFUSION MEDICINE. BUTLER MEMORIAL HOSPITAL PROVIDE LABORATORY SERVICE TO OVER 200,000 PATIENTS. 273409265 1 1 0 1 0 0 0 0 0 1 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 1 235 0 2298 1 1 1 0 0 0 0 0 0 0 1 0 X 10 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X THOMAS S ALBANESI JR CPA FHFMA 7248324561 ONE HOSPITAL WAY BUTLER PA 16001 KENNETH P DEFURIO PRESIDENT & CEO 20.00 40.00 X X 3614613 0 23311 JEFFREY CURRY TREASURER 4.00 5.00 X X 0 0 0 TIMOTHY MORGUS VICE CHAIR 4.00 5.00 X X 0 0 0 PAUL BACHARACH CHAIR 4.00 5.00 X X 0 0 0 ANIE PERARD MD TRUSTEE (UNTIL 12/31/24)/PHYSICIAN 3.00 50.00 X 0 341249 15460 JAMES ADISEY MD TRUSTEE/PHYSICIAN 3.00 50.00 X 0 765506 32146 PATRICK HAMPSON SECRETARY (UNTIL 12/17/24) 2.00 5.00 X X 0 0 0 DEBRA THOMPSON PHD RN TRUSTEE 1.00 5.00 X 0 0 0 JOHN SPHON TRUSTEE 1.00 5.00 X 0 0 0 TERESA PETRICK TRUSTEE 1.00 5.00 X 0 0 0 LARRY RICHERT SECRETARY 1.00 5.00 X X 0 0 0 JOHN REEFER MD TRUSTEE 1.00 5.00 X 0 0 0 MATT SCHNUR PRESIDENT, BUTLER MEMORIAL & CLARION HOSPITALS 40.00 20.00 X 210124 0 10102 KAREN ALLEN PRESIDENT, BUTLER MEMORIAL & CLARION HOSPITALS 40.00 20.00 X 548866 0 25189 THOMAS GENEVRO CHIEF HUMAN RESOURCES OFFICER 20.00 40.00 X 470820 0 15295 WILLIAM MADDEN CHIEF OPERATING OFFICER 20.00 40.00 X 429561 0 7388 ROGER LUTZ CHIEF INFORMATION OFFICER 20.00 40.00 X 412850 0 25503 PAMELA HEPP ESQ CHIEF LEGAL OFFICER 20.00 40.00 X 534359 0 7053 CAROL J FOX MD CHIEF MEDICAL OFFICER 20.00 40.00 X 0 675147 23135 MICHAEL FIORINA DO CHIEF MEDICAL OFFICER 20.00 40.00 X 429625 0 25326 DAVID ROTTINGHAUS PHYSICIAN & PROVIDER NETWORK PRESIDENT 20.00 40.00 X 713182 0 25189 THOMAS S ALBANESI JR CPA CHIEF FINANCIAL OFFICER 20.00 40.00 X 0 663850 37722 JUSTIN MCCARTHY STAFF ATTORNEY 40.00 X 197016 0 3402 DAVID DILLON CHIEF INTEGRATION OFFICER 40.00 X 416956 0 25007 MATTHEW SCHNUR VP, ANCILLARY SERVICES 40.00 X 210124 0 10102 MELINDA HILDEBRANDT CHIEF QUALITY OFFICER 40.00 X 237257 0 11191 KATHY SELVAGGI CHIEF COMMUNITY HEALTH OFFICER 40.00 X 289944 0 21678 ERIC HUSS FORMER CHIEF FINANCIAL OFFICER 0.00 0.00 X 100800 0 0 8816097 2445752 344199 198 1 1 0 FTI CONSULTING INC 1000 OMEGA DRIVE SUITE 1325 PITTSBURGH PA 15205 CONSULTING 2601126 BUTLER ANESTHESIA ASSOCIATES PC PO BOX 645587 PITTSBURGH PA 152645253 ANETHESIA SERVICES 1442820 ARTECH GROUP 201 BARDINE RD CRABTREE PA 15624 COMMERCIAL CONTRACTOR 1038565 AMERGIS HEALTHCARE STAFFING INC 317 E CARSON ST SUITE 430 PITTSBURGH PA 15219 NURSING AGENCY 1014726 QUEST DIAGNOSTICS 526 PENN AVE PITTSBURGH PA 15222 LABORATORY SERVICES 930220 142 4029794 2401262 6431056 NET PATIENT SERVICE REVENUE 621500 309653263 309653263 OTHER OPERATING REVENUE 621500 4719232 4719232 314372495 4888031 4888031 342200 0 342200 342200 342200 7277 0 7277 7277 7277 PHARMACY 456110 3820964 3820964 CAFETERIA 900099 1356591 1356591 NON PATIENT LAB 541380 1263573 1263573 545867 545867 6986995 333028054 314372495 5630404 6594099 X 6357235 6357235 103189550 91580726 11608824 4157058 3689389 467669 18352329 16287692 2064637 8176272 7256441 919831 1422945 1422945 189479 189479 16443 14593 1850 41682915 37582010 4100905 472021 418919 53102 1193070 1058850 134220 1315280 1167311 147969 4583683 4068019 515664 354069 314236 39833 4008 3557 451 5275559 4682059 593500 16407031 14561240 1845791 3758581 3335741 422840 MEDICAL SUPPLIES 62770907 62770907 BAD DEBT EXPENSE 9223022 9223022 EQUIPMENT RENTAL & MAIN 8551279 7589260 962019 MA MODERNIZATION ASSESS 8239135 8239135 -711171 -433842 -277329 304980700 273409265 31571435 0 1953 1953 26885710 21427182 39380912 51112094 3188524 3710817 16045154 15721758 428958367 316620039 115904220 112338328 93132155 88402623 20585211 23403926 68609826 92510435 383733665 408629116 46954287 62052926 103149530 98196982 14716494 14273416 40464435 16474426 205284746 190997750 X 175247577 213552463 3201342 4078903 178448919 217631366 383733665 408629116 X 28047354 68044 7738361 3328688 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 16443 16443 0 PART II-B, LINE 1: A PORTION OF THE ANNUAL DUES PAID TO THE HOSPITAL ASSOCIATION OF PENNSYLVANIA AND THE AMERICAN HOSPITAL ASSOCIATION ARE USED FOR LOBBYING. 485903 16575 502478 467911 17992 485903 454304 13607 467911 453377 927 454304 452697 680 453377 1.00000 0 1 1 2577581 2577581 112909753 71816732 41093021 8632130 7547358 1084772 279981798 227312146 52669652 24857105 9943803 14913302 112338328 INVESTMENTS IN AFFILIATES 23403926 C 23403926 OTHER ASSETS 9647236 DUE FROM THIRD PARTY 2655412 DUE FROM AFFILIATES 77886524 RIGHT OF USE ASSET - OPERATING 2321263 92510435 ACCRUED INTEREST PAYABLE 1871952 OPERATING LEASE LIABILITES 5252929 457(B) PLAN LIABILITIES 2097071 SERP PLAN LIABILITIES 1475829 DUE TO THIRD-PARTY PAYORS 5776645 16474426 X PART V, LINE 4: INVESTMENT EARNINGS WILL BE USED TO SUPPORT BUTLER HEALTHCARE PROVIDERS OR OTHER RELATED ORGANIZATIONS PER THEIR RESTRICTIVE PURPOSE (E.G. TECHNOLOGY AND CHARITY CARE) OR IF NO RESTRICTIVE PURPOSE, AT THE DISCRETION OF THE BOARD TO SUPPORT ITS MISSION. PART X, LINE 2: MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. 1 1 X 1 X 1 X 1 1 1 0 0 8883154 8883154 0.03000 31444502 18221321 13223181 0.04470 376795 394330 0 0.00000 40704451 18615651 22106335 0.07470 96046 96046 0.00030 237967 237967 0.00080 99194 99194 0.00030 433207 433207 0.00140 41137658 18615651 22539542 0.07610 0 9223022 28954481 29103433 -148952 X 1 1 1 BUTLER PHYSICIANS REALTY LLC LEASES MEDICAL OFFICE SPACE 0.16670 0.11110 1 1 BUTLER MEMORIAL HOSPITAL 1 HOSPITAL WAY BUTLER PA 160014670 WWW.BUTLERHEALTHSYSTEM.ORG X X X BUTLER MEMORIAL HOSPITAL 1 0 0 1 X X X X X X X X X 22 1 0 0 1 X INDEPENDENCE.HEALTH/ABOUT-US/COMMUNITY-WELLNESS X 1 22 1 INDEPENDENCE.HEALTH/ABOUT-US/COMMUNITY-WELLNESS 0 1 X 200.000000000000 300.000000000000 1 1 X X X 1 X INDEPENDENCE.HEALTH/PATIENTS-VISITORS/FINANCIAL-SERVICES X INDEPENDENCE.HEALTH/PATIENTS-VISITORS/FINANCIAL-SERVICES X INDEPENDENCE.HEALTH/PATIENTS-VISITORS/FINANCIAL-SERVICES X X X X X 1 X 0 X X X X 1 X 0 0 BUTLER MEMORIAL HOSPITAL PART V, SECTION B, LINE 5: THERE IS NOT A COUNTY HEALTH DEPARTMENT IN BUTLER COUNTY OR ITS PRIMARY SERVICE AREA. CURRENTLY, PENNSYLVANIA HAS SEVEN COUNTY HEALTH DEPARTMENTS (ALLEGHENY, BUCKS, CHESTER, DELAWARE, ERIE, MONTGOMERY, AND PHILADELPHIA) AND FOUR MUNICIPAL HEALTH DEPARTMENTS (ALLENTOWN, BETHLEHEM, WILKES-BARRE, AND YORK). SEVERAL PUBLIC HEALTH PROFESSIONALS WERE CONSULTED IN THE PROCESS OF THIS COMMUNITY HEALTH NEEDS ASSESSMENT INCLUDING ALLISON ROTH, MHA CANDIDATE (MASTERS IN HEALTH ADMINISTRATION) FROM THE UNIVERSITY OF PITTSBURGH GRADUATE SCHOOL OF PUBLIC HEALTH. SHE WAS A MAJOR CONTRIBUTOR IN DATA COLLECTION AND ANALYSIS.IN JUNE OF 2021, REPRESENTATIVES FROM MANY ORGANIZATIONS WITHIN THE BUTLER COMMUNITY CAME TOGETHER VIA ZOOM (DUE TO COVID RESTRICTIONS) TO DISCUSS THE STRENGTHS AND NEEDS OF THE COMMUNITY. INPUT WAS GATHERED FROM A WIDE RANGE OF INDIVIDUALS AND ORGANIZATIONS THAT REPRESENT THE BROAD INTERESTS OF THE BUTLER REGION; THIS WAS COMPLETED THROUGH A VARIETY OF METHODS INCLUDING INDIVIDUAL ZOOM MEETINGS, GROUP ZOOM MEETINGS, SURVEY MONKEY QUESTIONNAIRES AND PHONE CONVERSATIONS.MULTIPLE MEETINGS WERE HELD TO IDENTIFY THE TOP HEALTH PRIORITIES WITHIN THE PRIMARY SERVICE AREA OF BUTLER COUNTY. BUTLER MEMORIAL HOSPITAL (BMH) COLLECTED HEALTH DATA FROM COUNTY HEALTH RANKINGS, CENTERS FOR DISEASE CONTROL AND PREVENTION, WORLD LIFE EXPECTANCY, PAYS, AND US CENSUS. 529 COMMUNITY MEMBERS COMPLETED ELECTRONIC AND PAPER SURVEYS TO PROVIDE ADDITIONAL DATA AND 36 COMMUNITY STAKEHOLDER SURVEYS WERE ALSO COMPLETED.PARTICIPATING ORGANIZATIONS:- ALLIANCE FOR NON-PROFIT RESOURCES (ANR) - FOOD INSECURE INDIVIDUALS- BUTLER AREA SCHOOL DISTRICT- BUTLER COUNTY CHILDREN'S CENTER- CHILDREN AND LOW-INCOME FAMILIES- BUTLER COUNTY COMMUNITY COLLEGE- BUTLER COUNTY HUMAN SERVICES- AGING, DRUG AND ALCOHOL, CHILDREN & YOUTH, FAIR HOUSING- BUTLER COUNTY PARKS AND RECREATION- BUTLER MEMORIAL HOSPITAL-CARE MANAGEMENT- BUTLER TRANSPORTATION AUTHORITY- CATHOLIC CHARITIES OF BUTLER COUNTY- PEOPLE LIVING IN SHELTERS, HOMELESS OR AT RISK OF BEING HOMELESS, EXPECTANT AND NEW MOTHERS- CENTER FOR COMMUNITY RESOURCES (CCR) - HOMELESS, CHILDREN AND ADULTS WITH MENTAL ILLNESS (INCLUDING SUBSTANCE USE), INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, VETERANS, HIV + INDIVIDUALS- COMMUNITY CARE CONNECTIONS- INFANTS, CHILDREN AND ADULTS WHO HAVE DEVELOPMENTAL DELAYS OR DISABILITIES- COMMUNITY OPTIONS INC.- INDIVIDUALS WITH DISABILITIES- MARS AREA SCHOOL DISTRICT- MEALS ON WHEELS OF BUTLER COUNTY- HOMEBOUND INDIVIDUALS- MONITEAU SCHOOL DISTRICT- NATIONAL ALLIANCE ON MENTAL ILLNESS (NAMI) -INDIVIDUALS WITH SEVERE MENTAL ILLNESS AND THEIR FAMILIES- VETERANS SERVICES- VETERANS- AC VALLEY SCHOOL DISTRICT- ARC OF BUTLER COUNTY - INDIVIDUALS WITH INTELLECTUAL AND DEVELOPMENTALFOCUS GROUPS MET VIA ZOOM AND DISCUSSED THE DATA COLLECTED FROM ALL THE SOURCES ABOVE. INDIVIDUALS WERE ASKED TO DESCRIBE THE OVERALL HEALTH OF THE REGION. EACH ORGANIZATION WAS ASKED TO IDENTIFY THE TOP THREE HEALTH PRIORITIES FOR THE AREA. THESE ANSWERS WERE ALSO COMPARED AMONGST THE GROUP. THE MAIN THEMES THAT AROSE OUT OF THE FOCUS GROUPS WERE MENTAL/BEHAVIORAL HEALTH, FOOD INSECURITY AND THE ONGOING NEED FOR HEALTH AND NUTRITION EDUCATION AND SUBSTANCE ABUSE AND ADDICTION. OTHER TOP PRIORITY ISSUES IDENTIFIED WERE ACCESS TO CARE, TRANSPORTATION, COVID-19, DIABETES, OBESITY, AND CHILDCARE. BUTLER MEMORIAL HOSPITAL PART V, SECTION B, LINE 11: FUTURE STRATEGIES TO IMPROVE MENTAL HEALTH ISSUES- IMPLEMENT A SYSTEM TO COMMUNICATE TO PARENTS AND STUDENTS OF SCHOOL AND COMMUNITY EVENTS TO INCREASE PARTICIPATION IN EXTRACURRICULAR ACTIVITIES.- DEVELOP SOCIAL NETWORKS FOR CHILDREN TO CONNECT WITH EACH OTHER TO HELP CREATE MEANINGFUL RELATIONSHIPS FOR THOSE WHO DO NOT HAVE THE SOCIAL SKILLS TO DO IT ON THEIR OWN.- DEVELOP BETTER REFERRAL PROCESSES TO ACCESS MENTAL HEALTH SPECIALISTS. WAIT LISTS CAN BE LONG AND IT IS DIFFICULT FOR PEOPLE TO RECEIVE PROPER CARE IN A TIMELY FASHION.- THE BUTLER AREA SCHOOL DISTRICT IS IN THE PROCESS OF HIRING BEHAVIORAL MODIFICATION SPECIALISTS TO HELP CHILDREN DEVELOP AND IMPROVE SOCIAL THEIR SOCIAL SKILLS AND INTERACTIONS.FUTURE STRATEGIES TO IMPROVE SUBSTANCE ABUSE ISSUES- PROVIDE EDUCATION TO PARENTS ON THE SIGNS AND SYMPTOMS OF SUBSTANCE ABUSE. SCHOOLS EDUCATE STUDENTS BUT PARENTS NEED EDUCATION AS WELL.- PROVIDE EASIER ACCESS AND AVAILABILITY TO RECOVERY PROGRAMS. WE NEED TO ADDRESS BARRIERS SUCH AS LACK OF TRANSPORTATION AND ONGOING MENTAL HEALTH ISSUES THAT PREVENT PEOPLE FROM SEEKING HELP.- CONTINUE ONGOING ENGAGEMENT AND COLLABORATION WITH LAW ENFORCEMENT TO HELP INDIVIDUALS OBTAIN THE BASICS LIKE EMPLOYMENT AND A DRIVER'S LICENSE FOR THOSE WHO HAVE A HISTORY OF INCARCERATION.FUTURE STRATEGIES TO IMPROVE HEALTH EDUCATION AND CHRONIC ILLNESS- ENGAGE BUTLER COUNTY FARMS WITH FOOD INSECURE RESIDENTS. THIS PILOT STUDY OF 15 FAMILIES REQUIRED FAMILIES TO BE AT THE 200% FEDERAL POVERTY LINE. THE GOAL OF THIS PROGRAM WAS TO PROVIDE NUTRITION EDUCATION AND HEALTHY MEALS TO FOOD-INSECURE FAMILIES ON A LIMITED BUDGET. A BARRIER IDENTIFIED BY THIS PROGRAM WAS THAT QUALIFIED FAMILIES DID NOT WANT TO IDENTIFY THEMSELVES AS NEEDING ASSISTANCE.- INSTITUTE MORE FARMERS MARKETS IN THE COMMUNITY TO INCREASE ACCESS TO FRESH FRUITS AND VEGETABLES AND PROVIDING HEALTHY RECIPES. 2 1 - BUTLER HEALTHCARE PROVIDERS PSYCH 1 HOSPITAL WAY BUTLER PA 16001 PSYCHIATRIC AND CHEMICAL DEPENDENCY 2 - BUTLER HEALTHCARE PROVIDERS OP PSYCH 216 NORTH WASHINGTON STREET BUTLER PA 16001 OUTPATIENT BEHAVIORAL HEALTH CLINIC PART I, LINE 7: THE COSTING METHODOLOGY IS BASED ON THE RATIO OF COST TO CHARGES FROM BUTLER MEMORIAL HOSPITAL'S ACCOUNTING SYSTEM. PART I, LN 7 COL(F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), WAS SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $9,223,022. PART III, LINE 4: THE PROVISION FOR BAD DEBTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE MODIFICATIONS TO THE PROVISION FOR BAD DEBTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTABLE ACCOUNTS. PART III, LINE 8: THE COSTING METHODOLOGY IS BASED ON THE RATIO OF COST TO CHARGES FROM BUTLER MEMORIAL HOSPITAL'S ACCOUNTING SYSTEM. PART III, LINE 9B: AS PART OF OUR COMMITMENT TO THE HEALTH CARE NEEDS OF OUR COMMUNITY BHM HAS A PROGRAM DESIGNED TO PROVIDE FINANCIAL ASSISTANCE THAT MAY COVER ALL OR PART OF PATIENT CARE. ELIGIBILITY FOR FINANCIAL ASSISTANCE IS DETERMINED THROUGH AN APPLICATION PROCESS. BMH FOLLOWS THE FEDERAL POVERTY GUIDELINES WHEN DETERMINING THE PATIENT ELIGIBILITY. ONCE THE APPLICATION IS APPROVED, IT WILL BE IN EFFECT FOR SIX MONTHS BEFORE AND AFTER THE APPROVAL DATE. BMH WILL REVIEW ALL ACCOUNTS PRIOR TO PLACEMENT WITH A COLLECTION AGENCY TO SEE IF THE PATIENT IS ELIGIBLE UNDER OUR PRESUMPTIVE CHARITY CARE PROCESS. IF THERE IS NO APPLICATION ON FILE, BHM WILL USE ONE OR MORE OF THE FOLLOWING CRITERIA TO MAKE A DETERMINATION BASED ON: PATIENTS WHO QUALIFY FOR SECTION 8 HOUSING, NO ESTATE, FOOD STAMP ELIGIBILITY, PATIENT IS HOMELESS OR RECEIVED CARE FROM A HOMELESS CLINIC, OR A LETTER FROM FAMILY OR FRIENDS OF A PATIENT THAT PROVIDE INFORMATION ESTABLISHING THE PATIENT'S INABILITY TO PAY. PART VI, LINE 2: WHILE BMH HAS ALWAYS CONSIDERED THE NEEDS OF THE REGION IT SERVES, IT HAS FORMALLY BEEN CONDUCTING COMMUNITY HEALTH ASSESSMENTS FOR OVER 20 YEARS. THESE ASSESSMENTS HAVE ALLOWED THE ORGANIZATION TO APPROPRIATELY ALLOCATE RESOURCES AND DEVELOP SERVICES THAT BEST SUIT THE NEEDS OF BUTLER COUNTY AND SURROUNDING REGIONS. DURING THE CHNA PROCESS IN ATTEMPT TO REACH AS MANY PEOPLE AND DISTINCT POPULATIONS AS POSSIBLE, BMH DISTRIBUTED THE SURVEY USING VARIOUS METHODS. CENSUS DATA SHOWED THAT ONLY 78.5% OF HOUSEHOLDS IN BUTLER CITY (16001) HAD BROADBAND INTERNET, SO PAPER SURVEYS WERE CIRCULATED IN ADDITION TO AN ONLINE VERSION. DUE TO COVID RESTRICTIONS, STAKEHOLDERS AT THE INITIAL ZOOM MEETING WERE GIVEN THE ONLINE SURVEY LINK TO TAKE BACK AND DISTRIBUTE TO THEIR RESPECTIVE POPULATIONS. THEY WERE ALSO ENCOURAGED TO PROMOTE THE ONLINE VERSION OF THE SURVEY AMONGST THEIR ORGANIZATION. THE BUTLER COUNTY COLLABORATIVE FOR FAMILIES (BCF) ALSO DISTRIBUTED THE LINK TO THE ONLINE SURVEY THROUGH THEIR EMAIL LIST. THE BCF IS A MULTI-AGENCY NETWORK THAT COLLABORATES TO PROVIDE SERVICES FOR INDIVIDUALS AND FAMILIES IN BUTLER COUNTY. THE ELECTRONIC VERSION WAS ALSO DISTRIBUTED TO PRIMARY CARE OFFICES IN THE SERVICE AREA.THE EMPLOYEE SURVEY PROMPTED EMPLOYEES WHO LIVE IN BUTLER COUNTY TO TAKE THE GENERAL COMMUNITY SURVEY UPON COMPLETION OF THE EMPLOYEE SPECIFIC QUESTIONNAIRE. BUTLER MEMORIAL HOSPITAL COLLECTED A TOTAL 565 SURVEYS COMPLETED (EITHER ONLINE OR ON PAPER) BY COMMUNITY MEMBERS AND STAKEHOLDERS. THE SURVEY ASKED SEVERAL QUESTIONS REGARDING THE INDIVIDUAL'S HEALTH STATUS AND OTHER FACTORS LINKED TO HEALTH, LIKE DEMOGRAPHICS AND PROXIMITY TO STORES WITH FRESH FRUITS AND VEGETABLES. A SUMMARY OF THE RESULTS FOUND THROUGH THE COMMUNITY SURVEY ARE SHOWN IN OUR RESPONSE FOR VI, LINE 4. PART VI, LINE 3: SUPPORTING THOSE IN NEED: BMH CHARITY CARE AND COMMUNITY BENEFIT - BMH PROVIDES FREE CARE TO THOSE PATIENTS WHO HAVE AN OBLIGATION AFTER INSURANCE PAYMENTS, IF ANY. THE AMOUNT OF FREE CARE IS DETERMINED BASED ON THE PATIENT'S INCOME AND FAMILY SIZE. FREE CARE IS PROVIDED TO THOSE WITH INCOMES UP TO 300% OF THE FEDERAL POVERTY GUIDELINE.TO INFORM PATIENTS OF THIS PROGRAM, SIGNS ARE POSTED IN ALL THE REGISTRATION AREAS NOTIFYING THE PUBLIC OF THE AVAILABILITY OF OUR FREE CARE PROGRAM. MORE INFORMATION IS AVAILABLE IN THE PATIENT HANDBOOK AND ON THE SYSTEM WEBSITE WWW.BUTLERHEALTHSYSTEM.ORG UNDER PATIENT & VISITORS TAB THEN SELECT FINANCIAL SERVICES. AT THE TIME OF REGISTRATION, ANY PATIENT IS UNINSURED IS GIVEN A PATIENT NOTICE OF FINANCIAL AID NOTICE. THE NOTICE INSTRUCTS THE PATIENT TO CALL THE PATIENT FINANCIAL ASSISTANCE DEPARTMENT. THE CHARITY CARE APPLICATION IS ALSO ON THE BACK OF OUR PATIENT STATEMENTS. PART VI, LINE 4: THE PRIMARY SERVICE AREA FOR BMH WAS IDENTIFIED AS BUTLER COUNTY, PENNSYLVANIA. A MAJORITY OF PATIENTS AND VISITS ORIGINATE FROM BUTLER CITY (16001 ZIP CODE). AS SUCH BHS HAS PLACED SEVERAL SERVICE LOCATIONS WITHIN THIS AREA TO MEET THE DEMAND OF THE PRIMARY LOCATION. THE INDIVIDUALS THAT COME FROM SURROUNDING COUNTIES TO RECEIVE MORE ADVANCED SERVICES INCLUDE: ARMSTRONG, WESTMORELAND, CLARION, BEAVER, LAWRENCE, MERCER, VENANGO, AND ALLEGHENY. FOR THE PURPOSE OF SECONDARY DATA COLLECTION, CLARION COUNTY WAS DETERMINED TO BE THE COMMUNITY SERVED. APPROXIMATELY 80% OF THE HOSPITAL'S RESIDENTS RESIDE WITHIN THE COUNTY.BELOW IS A TABLE SUMMARIZING THE COUNTY POPULATION DATA COMPARED TO DATA SPECIFIC TO THE STATE OF PENNSYLVANIA BUTLER COUNTY PENNSYLVANIA2021 POPULATION ESTIMATE 194,273 12,964,056POPULATION PERCENT CHANGE:APRIL 2020-JULY 2021 .3% -0.3%MEDIAN AGE (2019) 43.3 YEARS 40.8 YEARSPERCENT UNDER 18 19.7% 20.6%PERCENT 65 YEARS AND OLDER 19.4% 18.7%RACE AND ORIGINWHITE ALONE, NOT HISPANIC ORLATINO, PERCENT 95.8% 81.6%BLACK OR AFRICAN AMERICAN,PERCENT 1.4% 12%AMERICAN INDIAN & ALASKANNATIVE ALONE, PERCENT 0.2% 0.4%ASIAN ALONE, PERCENT 1.5% 3.8%HISPANIC OR LATINO, PERCENT 1.6% 7.8%TWO OR MORE RACES, PERCENT 1.2% 2.1%VETERANS (2016-2020) 12,838 731,411EDUCATIONHIGH SCHOOL GRADUATE OR HIGHER 95.4% 91.0%BACHELOR'S DEGREE OR HIGHER 37.5% 32.3%MEDIAN HOUSEHOLD INCOME $72,642 $63,627PER CAPITAL INCOME IN PAST12 MONTHS $39,906 $35,518PERSONS IN POVERTY, PERCENT 7.4% 10.9%PERCENT WITH A DISABILITY UNDERAGE 65, 2016-2020 8.5% 9.8%PERSONS WITHOUT HEALTHINSURANCE UNDER AGE 65, PERCENT 4.8% 7.0%TABLE: BUTLER COUNTY DEMOGRAPHICS(HTTPS://WWW.CENSUS.GOV/QUICKFACTS/FACT/TABLE/PA,BUTLERCOUNTYPENNSYLVANIA/BZA210219)WITHIN THE COUNTY, THERE IS SIGNIFICANT VARIABILITY AMONGST MANY OF THE SOCIAL AND ECONOMIC DETERMINANTS OF HEALTH DEPENDING ON THE LOCATION IN THE COUNTY BECAUSE OF THE LARGE GEOGRAPHIC AREA BUTLER COUNTY ENCOMPASSES.RECURRING THEME AMONG COMMUNITY STAKEHOLDERS WAS THE ACCESS AND RESOURCES IN THE SOUTHERN PART OF THE COUNTY DIFFERS WITHIN THE COUNTY FROM THE CENTRAL AND NORTHERN AREAS. BECAUSE OF THESE DIFFERENCES, IT SHOULD BE REMEMBERED THAT COUNTY LEVEL DATA ON HEALTH RELATED ISSUES MIGHT BE TILTED TOWARDS THE AFFLUENCE OF THE SOUTH.THE TABLE BELOW SHOWS A SELECT NUMBER OF DISPARITIES THAT EXIST WITHIN THE PRIMARY SERVICE AREA OF BMH. THESE AREAS INCLUDE: ADAMS TOWNSHIP, CRANBERRY TOWNSHIP, BUTLER CITY, AND CENTER TOWNSHIP. BUTLER CITY IS THE IMMEDIATE AREA SURROUNDING BMH, AND CENTER TOWNSHIP IS IN NORTHERN BUTLER COUNTY. ADAMS CRANBERRY BUTLER CENTER TOWNSHIP TOWNSHIP CITY TOWNSHIP (16046) (16066) (16001) (16061)HIGH SCHOOL GRADUATEOR HIGHER, PERCENT 98.8% 97.3% 91.0% 96.8%BACHELOR'S DEGREEOR HIGHER 66.2% 62.0% 22.7% 36.1%MEDIAN HOUSEHOLDINCOME, 2016-2020 $124,982 $108,160 $32,746 $76,100PER CAPITA INCOMEPAST 12 MONTHS, 2016-2020 $69,935 $53,744 $22,127 $42,109PERSONS IN POVERTY,PERCENT 3.6% 3.1% 24.2% 4.1%PERCENT WITH A DISABILITY,UNDER AGE 65, 2016-2020 3.8% 4.7% 20.4% 10.8%PERSONS WITHOUT HEALTHINSURANCE 8% 2.2% 6.1% 2.6%HOUSEHOLDS WITH BROADBANDINTERNET SUBSCRIPTION,2016-2020 93.3% 94.9% 78.5% 85.3%(HTTPS://WWW.CENSUS.GOV/QUICKFACTS/FACT/TABLE/ADAMSTOWNSHIPBUTLERCOUNTYPENNSYLVANIA, CRANBERRYTOWNSHIPBUTLERCOUNTYPENNSYLVANIA,BUTLERCITYPENNSYLVANIA,CENTERTOWNSHIPBUTLERCOUNTYPENNSYLVANIA/BZA210219)LOOKING AT DATA AT THE COUNTY LEVEL, THERE IS A SIGNIFICANT PORTION OF OUR SERVICE POPULATION BEING UNDER-REPRESENTED. THERE ARE DRAMATIC DIFFERENCES IN FACTORS LIKE INCOME, EDUCATION, AND DISABILITY ACROSS THE COUNTY CREATING A DIFFERENT PICTURE OF HEALTH AND THE HEALTH NEEDS OF DEFINED SUBPOPULATIONS WITHIN THE COUNTY. PART VI, LINE 5: BUTLER HEALTHCARE PROVIDERS, AN AFFILIATE OF INDEPENDENCE HEALTH SYSTEM, EXISTS TO PROVIDE A TRUSTED DELIVERY OF CARE WHICH MAKES A POSITIVE IMPACT ON THE LIVES OF EVERY INDIVIDUAL WE TOUCH. EVERY LIFE MEANS THAT INDEPENDENCE HEALTH SYSTEM DOES NOT DISCRIMINATE FOR RACE, RELIGION, GENDER, COLOR, OR CREED AND ACCEPTS ALL PATIENTS FOR ANY SERVICES, REGARDLESS OF THE ABILITY TO PAY FOR THOSE SERVICES. INDEPENDENCE HEALTH SYSTEM STRIVES TO PROVIDE ITS COMMUNITIES WITH STATE OF THE ART EQUIPMENT AND FACILITIES. THIS CAN ONLY BE ACCOMPLISHED BY INVESTING ANY EXCESS IN REVENUES OVER EXPENSES INDEPENDENCE HEALTH SYSTEM MAY HAVE IN SECURE INVESTMENTS TO PROVIDE FOR FUTURE TECHNOLOGY, TREATMENTS OF CARE, AND MAINTAIN AGING FACILITIES. INDEPENDENCE HEALTH SYSTEM ENCOURAGES PATIENTS TO TELL IT WHAT IT IS DOING RIGHT AND WRONG THROUGH PATIENT SATISFACTION SURVEYS AND INDEPENDENCE HEALTH SYSTEM REACTS TO THOSE SURVEYS. INDEPENDENCE HEALTH SYSTEM STRIVES TO PROVIDE ITS PATIENTS WITH GREATER ACCESS TO CARE THROUGH OFF SITE CLINICS AND DIAGNOSTIC SERVICE CENTERS. INDEPENDENCE HEALTH SYSTEM ASSISTS ITS MEDICAL STAFF IN RECRUITING TOP OF THE CLASS DOCTORS TO PROVIDE SERVICES TO ITS COMMUNITY WHERE THERE IS A NEED AND A SHORTAGE OF PHYSICIANS. INDEPENDENCE HEALTH SYSTEM ALSO RECRUITS SPECIALTY PHYSICIANS THAT WOULD HELP TO OFFSET THE BURDEN OF CALL COVERAGE AND FOR SUCCESSION PLANNING, WHICH IS ESSENTIAL FOR THE CONTINUUM OF CARE. PART VI, LINE 6: BUTLER HEALTHCARE PROVIDERS IS PART OF INDEPENDENCE HEALTH SYSTEM. INDEPENDENCE HEALTH SYSTEM (IHS) COMPRISES BUTLER MEMORIAL, CLARION, FRICK, LATROBE, AND WESTMORELAND HOSPITALS. WITH A TOTAL BED COMPLEMENT OF 925, THE SYSTEM HAS MORE THAN 1,000 PHYSICIANS AND ADVANCED PRACTICE PROVIDERS AND 7,300 EMPLOYEES. IHS IS NOW THE THIRD LARGEST HEALTHCARE SYSTEM IN WESTERN PENNSYLVANIA, SERVING A POPULATION BASE OF 750,000 IN A FOOTPRINT SPANNING MORE THAN 10 COUNTIES. X X X X X 1 1 0 0 0 0 0 1 0 KENNETH P DEFURIO PRESIDENT & CEO 1015575 0 0 0 2599038 0 5175 0 18136 0 3637924 0 2501911 0 JAMES ADISEY MD TRUSTEE/PHYSICIAN 0 462342 0 183975 0 119189 0 13800 0 18346 0 797652 0 0 DAVID ROTTINGHAUS PHYSICIAN & PROVIDER NETWORK PRESIDE 546886 0 0 0 166296 0 5175 0 20014 0 738371 0 86493 0 THOMAS S ALBANESI JR CPA CHIEF FINANCIAL OFFICER 0 506372 0 0 0 157478 0 18292 0 19430 0 701572 0 0 CAROL J FOX MD CHIEF MEDICAL OFFICER 0 518439 0 0 0 156708 0 21355 0 1780 0 698282 0 0 KAREN ALLEN PRESIDENT, BUTLER MEMORIAL & CLARION 486730 0 0 0 62136 0 5175 0 20014 0 574055 0 0 0 PAMELA HEPP ESQ CHIEF LEGAL OFFICER 508862 0 0 0 25497 0 5175 0 1878 0 541412 0 0 0 THOMAS GENEVRO CHIEF HUMAN RESOURCES OFFICER 162156 0 0 0 308664 0 3943 0 11352 0 486115 0 253308 0 MICHAEL FIORINA DO CHIEF MEDICAL OFFICER 425762 0 0 0 3863 0 5175 0 20151 0 454951 0 0 0 DAVID DILLON CHIEF INTEGRATION OFFICER 397405 0 0 0 19551 0 5175 0 19832 0 441963 0 0 0 ROGER LUTZ CHIEF INFORMATION OFFICER 368219 0 0 0 44631 0 5175 0 20328 0 438353 0 0 0 WILLIAM MADDEN CHIEF OPERATING OFFICER 421771 0 0 0 7790 0 0 0 7388 0 436949 0 0 0 ANIE PERARD MD TRUSTEE (UNTIL 12/31/24)/PHYSICIAN 0 317782 0 0 0 23467 0 0 0 15460 0 356709 0 0 KATHY SELVAGGI CHIEF COMMUNITY HEALTH OFFICER 219861 0 0 0 70083 0 3750 0 17928 0 311622 0 63739 0 MELINDA HILDEBRANDT CHIEF QUALITY OFFICER 236515 0 0 0 742 0 3579 0 7612 0 248448 0 0 0 MATT SCHNUR PRESIDENT, BUTLER MEMORIAL & CLARION 209734 0 0 0 390 0 3185 0 6917 0 220226 0 0 0 MATTHEW SCHNUR VP, ANCILLARY SERVICES 209734 0 0 0 390 0 3185 0 6917 0 220226 0 0 0 JUSTIN MCCARTHY STAFF ATTORNEY 197016 0 0 0 0 0 2955 0 447 0 200418 0 0 0 ERIC HUSS FORMER CHIEF FINANCIAL OFFICER 0 0 0 0 100800 0 0 0 0 0 100800 0 66472 0 PART I, LINES 4A-B 4(B) THE ORGANIZATION UTILIZES A SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM (SERP) TO RECRUIT AND RETAIN LEADERSHIP TALENT. VESTING PERIODS ARE 5 AND 10 YEARS, FOR ALL EXECUTIVES, WITH THE EXCEPTION OF THE PRESIDENT/CEO, AT AGE 65. THE THIRD VESTING PERIOD FOR THE PRESIDENT/CEO IS AGE 60. ELIGIBLE EXECUTIVES RECEIVE DISTRIBUTIONS UPON REACHING THE VESTING PERIODS. ALL CONTRIBUTIONS TO THE SERP HAVE BEEN REPORTED PREVIOUSLY AND ARE REPORTED ANNUALLY. THE ANNUAL ACCRUAL AMOUNTS FOR CALENDAR YEAR 2024 WERE: KENNETH P DEFURIO, $351,888; DAVID ROTTINGHAUS, $61,042; KAREN ALLEN, $60,001; ROGER LUTZ, $38,114; MICHAEL FIORINA, DO, $43,002. DURING CALENDAR YEAR 2024, ERIC HUSS RECEIVED SEVERANCE IN THE AMOUNT OF $34,328. PART I, LINE 7 EMPLOYEES ARE ELIGIBLE AND RECEIVED BONUS COMPENSATION. BONUSES ARE NOT GUARANTEED AND ARE AWARDED BASED ON BOARD APPROVED METRICS WHICH INCLUDE QUALITY, SERVICES, AND STRATEGIC FINANCIAL PERFORMANCE. PART II INDEPENDENCE HEALTH SYSTEM PRESIDENT & CEO KENNETH DEFURIO TURNED 60 DURING CALENDAR YEAR 2024. REACHING AGE 60 TRIGGERED A REQUIRED VESTED SERP PAYOUT OF $2,501,911. FOR THE PAST 18 YEARS, INDIVIDUAL SERP PAYMENTS FOR THE CEO HAD PREVIOUSLY BEEN REPORTED AS DEFERRED COMPENSATION IN COLUMN C OF SCHEDULE J. THIS REPORTED 2024 AMOUNT IS A TOTAL OF ALL PREVIOUSLY REPORTED FUNDING AMOUNTS. SERP PLANS ARE USED AS RECRUITMENT AND RETENTION VEHICLES IN A COMPETITIVE EXECUTIVE MARKET. A BUTLER COUNTY HOSPITAL AUTHORITY 251458912 123592DR5 2015-03-18 100481533 SEE PART VI 0 0 0 B BUTLER COUNTY HOSPITAL AUTHORITY 251458912 2015-03-18 41000000 SEE PART VI 0 0 0 A 22795000 100481533 1107924 2015 1 0 1 1 B 14070000 41000000 2015 1 0 1 1 A 0 0 0 0 0 0 0 B 0 0 0 0 0 0 0 A 0 0 0 1 0 0 0 0 0 B 0 0 1 0 1 0 0 0 0 A 0 B 0 ALISON ANNETT FAMILY MEMBER OF KENNETH DEFURIO, PRESIDENT & CEO 47636 EMPLOYEE 0 JOSHUA LUTZ FAMILY MEMBER OF ROGER LUTZ, CIO 15428 EMPLOYEE 0 FORM 990, PART VI, SECTION A, LINE 6 PER THE BY-LAWS OF THE ORGANIZATION, THE ORGANIZATION SHALL HAVE ONE CORPORATE MEMBER, BUTLER HEALTH SYSTEM, INC. THERE SHALL BE NO OTHER MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A BUTLER HEALTH SYSTEM, INC., THE SOLE CORPORATE MEMBER OF THE ORGANIZATION, APPOINTS THE MEMBERS OF THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 7B AS PER THE BY-LAWS OF THE ORGANIZATION, THE SUBJECT MATTERS OF THE POWERS RESERVED TO THE MEMBER ARE AS FOLLOWS: A. THE NUMBER OF TRUSTEES THAT WILL COMPRISE THE BOARD. B. THE ELECTION OF TRUSTEES. C. THE REMOVAL OF ANY TRUSTEE FOR CAUSE FROM THE CORPORATION'S BOARD OF TRUSTEES AND APPROVAL OF THE REPLACEMENT OF ANY SUCH REMOVED TRUSTEE FOR THE UNEXPIRED PORTION OF THE TERM. D. THE ELECTION, RE-ELECTION, APPOINTMENT AND REAPPOINTMENT OF ALL OFFICERS OF THE BOARD. E. THE AMENDMENT, REVISION, OR RESTATEMENT OF THE CORPORATION'S ARTICLES OF INCORPORATION AND/OR BY-LAWS. F. THE ADOPTION OR CHANGE IN THE MISSION, PURPOSE, PHILOSOPHY OR OBJECTIVES OF THE CORPORATION. G. THE CHANGE IN THE GENERAL STRUCTURE OF THE CORPORATION AS A VOLUNTARY, NONPROFIT CORPORATION. H. THE DISSOLUTION, DIVISION, CONVERSION OR LIQUIDATION OF THE CORPORATION, THE CONSOLIDATION OR MERGER OF THE CORPORATION WITH ANOTHER CORPORATION OR ENTITY, OR THE ACQUISITION OF SUBSTANTIALLY ALL OF THE ASSETS OF ANOTHER CORPORATION OR ENTITY, SUBJECT TO THE PROVISION OF THE ARTICLES OF INCORPORATION. I. THE CORPORATION'S BORROWING OF MONEY, ISSUANCE OF INDEBTEDNESS AND/OR INCURRENCE OF GUARANTEES, WHETHER IN A SINGLE TRANSACTION OR A SERIES OF RELATED TRANSACTIONS, WHETHER OR NOT SUCH BORROWINGS OR GUARANTEES ARE TO BE SECURED BY A MORTGAGE, PLEDGE OR OTHER LIEN ON THE CORPORATION'S CURRENT OR FUTURE REAL PROPERTY, PERSONAL PROPERTY OR ENDOWMENT FUNDS. J. APPROVAL OF THE ANNUAL CAPITAL AND OPERATING BUDGETS OF THE CORPORATION AND ANY AMENDMENTS THERETO. K. APPROVAL OF ANY CHARITABLE DONATION BY THE CORPORATION, OTHER THAN TO THE MEMBER OR ANY NONPROFIT ENTITY IN WHICH THE MEMBER IS A SOLE MEMBER, IN AN AMOUNT EXCEEDING $15,000 PER DONEE OR IN AN AMOUNT EXCEEDING $150,000 IN THE AGGREGATE DURING ANY ONE FISCAL YEAR. L. APPROVAL OF ANY TRANSFER OTHER THAN CHARITABLE DONATIONS OF THE CORPORATION'S ASSETS UNLESS SPECIFICALLY AUTHORIZED IN THE CORPORATION'S APPROVED BUDGETS. M. APPROVAL OF CHANGE OF MEMBERSHIP OR VOTING RIGHTS OF THE MEMBER. N. APPROVAL OF THE STRATEGIC PLANS AND/OR INVESTMENT POLICIES OF THE CORPORATION AND ANY SUBSIDIARY OF THE CORPORATION. FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION HAS A CPA FIRM PREPARE ITS FORM 990. THE RETURN IS COMPLETED IN DRAFT FORM AND REVIEWED BY MANAGEMENT OF THE ORGANIZATION. THE FORM 990 IS THEN PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C A WEB-BASED SOFTWARE PROGRAM IS USED TO ADMINISTER A CONFLICT OF INTEREST DISCLOSURE FORM AND QUESTIONNAIRE ANNUALLY TO ALL BOARD TRUSTEES, KEY EMPLOYEES AND CERTAIN OTHER DIRECTORS, MANAGERS AND CONTRACTED PHYSICIANS. COMPLIANCE IN COMPLETING THE FORM IS REQUIRED AT 100% FOR OFFICERS, TRUSTEES AND KEY EMPLOYEES. THE DISCLOSURES ARE REVIEWED BY THE COMPLIANCE OFFICER, CHIEF LEGAL OFFICER AND CERTAIN BOARD COMMITTEES. ADDITIONALLY, THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY THAT IS SHARED WITH EMPLOYEES, MEDICAL STAFF AND BUSINESS PARTNERS THROUGH ONE OR MORE OF THE FOLLOWING METHODS: POSTING ON THE ORGANIZATION'S INTRANET WEBSITE, ON THE ORGANIZATION'S PUBLIC WORLD WIDE WEBSITE, IN ITS POLICY MANUAL AND IN ITS CORPORATE CODE. REPORTS AND SUBSEQUENT FINDINGS OF NON-COMPLIANCE RESULT IN DISCIPLINARY ACTION THROUGH HUMAN RESOURCES, THE OFFICE OF MEDICAL AFFAIRS, OR THROUGH COMPANY SANCTIONS TOWARDS BUSINESS PARTNERS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES RECOGNIZES THE GREAT CHALLENGES AND DIFFICULTIES THAT HEALTHCARE EXECUTIVES FACE, PARTICULARLY IN THE CURRENT ERA OF NATIONAL AND STATE HEALTHCARE REFORM. IN ADDITION, THE PITTSBURGH REGIONAL MARKET IS HIGHLY COMPETITIVE AND CHANGING RAPIDLY. THE BOARD COMPETES FOR AND SEEKS EXECUTIVE TALENT ON A NATIONAL BASIS. IT ENGAGES EXPERT COMPENSATION CONSULTANTS, UTILIZING NATIONAL COMPARATIVE DATA TO GUIDE THE DETERMINATION OF COMPETITIVE, APPROPRIATE LEVELS OF COMPENSATION. THE EXECUTIVE COMPENSATION PROCESS IS OVERSEEN BY THE EXECUTIVE/COMPENSATION COMMITTEE OF THE IHS BOARD OF TRUSTEES. THE COMMITTEE IS COMPOSED ENTIRELY OF "DISINTERESTED" MEMBERS WITH NO CONFLICTS OF INTEREST. THE TOTAL COMPENSATION PROGRAM FOR EXECUTIVES CONSISTS OF CASH COMPENSATION AND BENEFITS. FACTORS TAKEN INTO CONSIDERATION IN DETERMINING COMPENSATION FOR EXECUTIVES INCLUDE: MARKET DEMAND AND COMPETITION FOR SIMILAR POSITIONS, EXPERIENCE AND TENURE, AND ACTUAL PERFORMANCE AND EFFECTIVENESS. BASED ON THESE AND OTHER PERTINENT CRITERIA, IHS TARGETS TOTAL COMPENSATION TO FALL WITHIN A RANGE OF THE 25TH TO 75TH PERCENTILE OF THE MARKET. IHS EXECUTIVE COMPENSATION GENERALLY WILL NOT EXCEED THE 75TH PERCENTILE OF THE MARKET. EXCEPTIONS TO THIS MAY BE SUBJECT TO REVIEW AND RECOMMENDATION BY THE COMPENSATION COMMITTEE, WHICH IN TURN IS SUBJECT TO REVIEW AND APPROVAL BY THE BOARD OF TRUSTEES. EXCEPTION MUST BE SUPPORTED BY ORGANIZATIONAL AND/OR INDIVIDUAL PERFORMANCE, OR A RETENTION/RECRUITMENT CIRCUMSTANCE THAT WARRANTS SUCH COMPENSATION. THE COMPENSATION COMMITTEE CONSISTS EXCLUSIVELY OF INDEPENDENT INDIVIDUALS WITH NO REAL OR PERCEIVED CONFLICTS OF INTEREST IN RECOMMENDING EXECUTIVE COMPENSATION GUIDELINES AND LEVELS. WHILE BENEFITS ARE ACCOUNTED FOR IN SCHEDULE J, ACTUAL "TAKE HOME" PAY TO THE EXECUTIVE TYPICALLY CONSISTS ONLY OF BASE SALARY, AND INCENTIVE AWARD EARNED, IF EARNED. APPLICABLE TAXES OR OTHER WITHHOLDINGS ARE DEDUCTED. ANNUAL INCREASES IN BASE PAY, IF ANY, ARE BASED ON COMPETITIVE MARKET TRENDS FROM THE COMPARISON GROUP. SUPPLEMENTAL RETIREMENT BENEFITS ARE USED AS A VEHICLE FOR EXECUTIVE RECRUITMENT AND RETENTION WITH APPROPRIATE VESTING PERIODS. THE BOARD OF TRUSTEES REVIEWS AND APPROVES EXECUTIVE COMPENSATION IN ITS ENTIRETY, INCLUDING THE USE OF "TALLY SHEETS", WHICH DISCLOSE 100% EXECUTIVE COMPENSATION. THE BOARD OF TRUSTEES ENGAGES EXTERNAL COMPENSATION AND LEGAL EXPERTISE TO ASSURE REASONABLENESS OF EXECUTIVE COMPENSATION LEVELS. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990, FORM 990-T, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 AT THIS TIME, THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS AND CONFLICTS OF INTEREST POLICY AVAILABLE TO THE GENERAL PUBLIC. FORM 990, PART IX, LINE 11G PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 427,598. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 427,598. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 31,110,395. MANAGEMENT AND GENERAL EXPENSES 3,943,571. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 35,053,966. OTHER FEES: PROGRAM SERVICE EXPENSES 1,241,188. MANAGEMENT AND GENERAL EXPENSES 157,334. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,398,522. CONTRACT LABOR: PROGRAM SERVICE EXPENSES 4,802,829. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,802,829. FORM 990, PART XI, LINE 9: PENSION OBLIGATION ADJUSTMENT 6,711,580. OTHER. NET ADJUSTMENTS -1,900,392. TRANSFER TO AFFILIATES -1,482,500. BHS DERMATOLOGY ASSOCIATES 1 HOSPITAL WAY BUTLER PA 16001 800929620 DERMATOLOGY PA BHP BUTLER IMAGING & INTERVENTIONAL ASSOC 1 HOSPITAL WAY BUTLER PA 16001 264263364 RADIOLOGY PA BHP BHS NALLATHAMBI MEDICAL ASSOCIATES PLLC 1 HOSPITAL WAY BUTLER PA 16001 264746949 PRIMARY CARE PA BHP BUTLER HEALTH SYSTEM PROVIDER HOSPITAL 1 HOSPITAL WAY BUTLER PA 16001 474212217 PHYS HOSP ORG PA 750576 7435744 BHP BHS SENECA MEDICAL CENTER LLC 1 HOSPITAL WAY BUTLER PA 16001 464444529 PRIMARY CARE PA BHP LATROBE AREA HOSPITAL 121 W SECOND AVENUE LATROBE PA 15650 250965414 HEALTH CARE PA 501(C)(3) LINE 3 EXCELA HEALTH 0 WESTMORELAND REGIONAL HOSPITAL 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 250965612 HEALTH CARE PA 501(C)(3) LINE 3 EXCELA HEALTH 0 LATROBE AREA HOSPITAL CHARITABLE FOUNDATION ONE MELLON WAY LATROBE PA 15650 251750654 FUNDRAISING PA 501(C)(3) LINE 12A, I LATROBE AREA HOSPITAL 0 WESTMORELANDFRICK HOSPITAL FOUNDATION 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 251309084 FUNDRAISING PA 501(C)(3) LINE 12A, I EXCELA HEALTH 0 FRICK HOSPITAL 508 SOUTH CHURCH STREET MOUNT PLEASANT PA 15650 250965375 HEALTH CARE PA 501(C)(3) LINE 3 EXCELA HEALTH 0 EXCELA HEALTH HOME CARE AND HOSPICE 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 203474707 HEALTH CARE PA 501(C)(3) LINE 10 EXCELA HEALTH 0 EXCELA HEALTH 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 251471089 HEALTH CARE PA 501(C)(3) LINE 12C, III-FI INDEPENDENCE HEALTH SYSTEM 0 CAREGIVERS OF SOUTHWESTERN PA 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 251570733 HEALTH CARE PA 501(C)(3) LINE 10 EXCELA HEALTH 0 MOUNTAIN VIEW CANCER ASSOCIATES INC 200 VILLAGE DRIVE GREENSBURG PA 15601 030480551 HEALTH CARE PA 501(C)(3) LINE 3 EXCELA HEALTH 0 BUTLER HEALTH SYSTEM ONE HOSPITAL WAY BUTLER PA 16001 251441855 HC DELIV SYST PA 501(C)(3) LINE 10 INDEPENDENCE HEALTH SYSTEM 0 BUTLER MEDICAL PROVIDERS ONE HOSPITAL WAY BUTLER PA 16001 251441961 PHYSICIAN PRACTICE PA 501(C)(3) LINE 3 BUTLER HEALTH SYSTEM 0 NIXSAR CORPORATION ONE HOSPITAL WAY BUTLER PA 16001 251441960 REAL ESTATE PA 501(C)(3) LINE 12B, II BUTLER HEALTH SYSTEM 0 BUTLER HEALTH SYSTEM FOUNDATION ONE HOSPITAL WAY BUTLER PA 16001 261543883 FUNDRAISING PA 501(C)(3) LINE 12A, I BUTLER HEALTH SYSTEM 0 CLARION HOSPITAL ONE HOSPITAL WAY CLARION PA 16214 251010039 HOSPITAL PA 501(C)(3) LINE 3 BUTLER HEALTH SYSTEM 0 CLARION HOSPITAL SELF INS TRUST FUND ONE HOSPITAL WAY CLARION PA 16217 250766602 SELF INSURANCE PA 501(C)(3) LINE 12A, I CLARION HOSPITAL 0 BUTLER MEMORIAL HOSPITAL AUXILIARY ONE HOSPITAL WAY BUTLER PA 16001 251457575 AUXILIARY PA 501(C)(3) LINE 10 BUTLER HEALTH SYSTEM 0 INDEPENDENCE HEALTH SYSTEM ONE HOSPITAL WAY BUTLER PA 16001 921340805 HEALTH CARE PA 501(C)(3) LINE 12B, II N/A 0 BUTLER AMBULATORY SURGERY CENTER LLC 102 TECHNOLOGY DRIVE BUTLER PA 16001 061728190 AMBULATORY SURG. PA N/A 0 0 BHS FASTERCARE ONE HOSPITAL WAY BUTLER PA 16001 271961562 URGENT CARE PA BUTLER HEALTHCARE PROVIDERS RELATED 2943565 1080303 0 0 0.53400 BHS FASTER CARE LABORATORY ONE HOSPITAL WAY BUTLER PA 16001 800628384 LAB. SERVICES PA BUTLER HEALTHCARE PROVIDERS RELATED 0 0 0.51000 EXCELA HEALTH PHYSICIAN PRACTICES 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 251744392 HEALTH CARE PA N/A C 0 EXCELA HEALTH HOLDING COMPANY 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 251826537 HEALTH CARE PA N/A C 0 EXCELA HEALTH VENTURES LLC 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 461290845 REAL ESTATE PA N/A C 0 EXCELA RECIPROCAL RRG & SUBSIDIARY 100 BANK STREET SUITE 610 BURLINGTON VT 05401 464602850 INSURANCE VT N/A C 0 EXCELA PHYSICIAN HOSPITAL ORGANIZATION LLC 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 820639487 HEALTH CARE PA N/A C 0 EXCELA HEALTH DIVERSIFIED SERVICES LLC 532 WEST PITTSBURGH STREET GREENSBURG PA 15601 871455824 HEALTH CARE PA N/A C 0 PCA OF BUTLER PC 480 EAST JEFFERSON STREET BUTLER PA 16001 251351445 PHY. OFFICE PA N/A C 0 CLARION DEVELOPMENT CORPORATION ONE HOSPITAL DRIVE CLARION PA 16214 251516298 PHARMACY PA N/A C 0 0 1 1 0 0 0 0 0 0 1 1 1 1 1 1 1 1 0 0