2022-04-29T15:42:59-05:00 2020-09-30 390859910 Baker Tilly US LLP 101 Washington Street East Charleston WV 25329 990 2019-10-01 550404900 Herbert J Thomas Memorial Hospital Association HERB 3047663523 4605 MacCorkle Avenue SW South Charleston WV 25309 Timothy Skeldon Sr. Vice President, CFO 3047663523 2022-04-29 1 Dolores Rose P01286262 3043460441 2022-04-29 2019 2022-09-23 18:48:47Z Thomas Memorial Hospital Daniel Lauffer 4605 MacCorkle Avenue SW South Charleston WV 25309 238545725 0 X thomashealth.org X 1946 WV To provide health care services to residents of South Charleston, WV and surrounding communities. 14 14 0 42 -257084 0 353961 100240 195724409 196462789 745676 54767 2761754 41927929 199585800 238545725 335 0 0 0 76740660 44573972 0 0 0 115496048 89138761 192237043 133712733 7348757 104832992 144733514 129118182 146399198 32005804 -1665684 97112378 To provide health care services to residents of South Charleston, WV and surrounding communities. 0 0 129382572 237690077 Services provided by the hospital include 35,200 inpatient days and 162,712 outpatient visits which includes 22,069 ER visits. The hospital provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than its established rates. Charges forgone for charity amounted to $1,434,255. The hospital provided community education activities and sponsors free health screening and wellness programs. 129382572 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 X 119 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 X 14 14 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Timothy Skeldon Sr Vice President CFO 3047663523 4605 MacCorkle Ave SW South Charleston WV 25309 Chuck Jones Chairman 1.00 2.00 X X 0 0 0 Angela Mayfield First Vice-Chairman 1.00 2.00 X X 0 0 0 Craig Slaughter Second Vice-Chairman 1.00 2.00 X X 0 0 0 Kent Hartsog Treasurer 1.00 2.00 X X 0 0 0 Andy Barker Board Member 1.00 2.00 X 0 0 0 Danny Scalise Board Member 1.00 2.00 X 0 0 0 David Sayre Board Member 1.00 3.00 X 0 0 0 Dennis Sutton Board Member 1.00 2.00 X 0 0 0 Donna Panucci DDS Board Member 1.00 2.00 X 0 0 0 Father Higgs Board Member 1.00 2.00 X 0 0 0 Kishore Challa MD Board Member 1.00 2.00 X 0 0 0 Paul Breedlove Board Member 1.00 2.00 X 0 0 0 Steve Hedrick Board Member 1.00 2.00 X 0 0 0 Steve Kawash Board Member 1.00 2.00 X 0 0 0 Susan Lavenski Board Member 1.00 2.00 X 0 0 0 Daniel J Lauffer President/CEO Thomas Health 24.00 16.00 X 0 829422 36097 Timothy K Skeldon Senior VP Finance/CFO Thomas Health 24.00 16.00 X 0 373497 31955 Brian Ulery Executive VP/COO Thomas Health 24.00 16.00 X 0 405219 27844 Tarek Anderson MD Physician 40.00 X 310564 0 34517 Patrick Rawlings Director of HR 40.00 X 201081 0 12732 William K Priddy 304B Pharmacy Manager 40.00 X 186074 0 11751 John M Vickers Pharmacy Manager 40.00 X 173756 0 25112 Donna Gorton-Childers Rehab Clinical Director 40.00 X 149537 0 29170 1021012 1608138 209178 5 0 1 0 Hospitalist Medicine Physicians of WV PO Box 742936 Los Angeles CA 90074 ER and Hospitalist Services 2958159 Berkeley Research Group LLC 2200 Powell Street Suite 1200 Emeryville CA 94608 Consulting Services 1615150 ISS Solutions PO Box 13700-1066 Philadelpia PA 19191 BioMedical Services 918380 Pulmonary Associates of Charleston PLLC 4619 Kanawha Ave SW Charleston WV 25309 Pulmonary Physician Services 626000 Advanced Technical Solutions LLC 152 Erskine Lane Scott Depot WV 25560 IT Technical Services 485454 24 63965 36275 100240 Patient services 622110 172321898 172321898 340B Program Revenue 900099 11331481 11331481 Family Pharmacy 446110 5764349 5731292 33057 Provider Relief Funds 900099 5607485 5607485 Laboratory-Other 621990 1437576 1437576 196462789 49670 8033 41637 965758 0 965758 965758 965758 5097 0 5097 5097 5097 Gain on Debt Restructuring 900099 39740741 39740741 Sales Tax Refunds and Rebates 900099 606518 606518 Cafeteria & vending 722212 551724 551724 63188 361362 -298174 40962171 238545725 237690077 -257084 1012492 44573972 42037713 2536259 13106450 12335150 771300 5477067 5165422 311645 3805015 3588510 216505 8202 7735 467 287865 271485 16380 7936760 7485158 451602 Medical supplies 21424345 21424345 Pharmacy Supplies and D 19016627 19016627 Bad debts 12674890 12674890 Healthcare provider tax 4997154 4997154 404386 378383 26003 133712733 129382572 4330161 0 849028 3123184 5653429 198869 16297066 15221196 5121983 6126055 1502940 741947 302843433 203408359 106636712 99435074 4212056 1197476 4460300 3074381 144733514 129118182 19257401 9868303 11777 127130020 22137501 146399198 32005804 X -1665684 97112378 -1665684 97112378 144733514 129118182 X 104832992 404713 -6459643 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 11964611 11964611 152577017 86115433 66461584 13834 12912 922 126133385 110648663 15484722 12154586 6631351 5523235 99435074 Accrued pension liabilities 12041884 Capital lease obligations 3415076 Due to related parties 6680541 22137501 X Part X, Line 2: The System, Thomas Memorial, the Foundation, Saint Francis and THS Physician Partners are recognized as exempt from Federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and similar state statutes relating to not-for-profit organizations. Under applicable provisions of the Internal Revenue Code and state statutes, TMH Services, which is a for-profit entity and subject to Federal and state income taxes, elected to be treated as a C-corporation for income tax purposes. Accounting principles generally accepted in the United States of America require the management of the System to evaluate tax positions taken by the System. Management has evaluated the Systems tax positions and concluded that the System had maintained its tax exempt status and had taken no uncertain tax positions that require recognition or disclosure in the financial statements. Therefore, no provision or liability for income taxes has been included in the consolidated financial statements. The System is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The management of the System believes it is no longer subject to income tax examinations for years prior to the fiscal year ended September 30, 2017. 1 1 X 1 X 1 X 320.000000000000 1 1 0 0 2311446 2311446 0.01910 23299359 20838296 2461063 0.02030 25610805 20838296 4772509 0.03940 45278 8392 36886 0.00030 45278 8392 36886 0.00030 25656083 20846688 4809395 0.03970 1 12674890 33305144 33492893 -187749 X 1 1 1 Thomas Valuecare Inc Company reserved for future use 1.00000 2 Stonerise Home Health LLC Home Health 0.30000 1 1 Thomas Memorial Hospital 4605 MacCorkle Avenue SW South Charleston WV 25309 X X X Psychiatric Herbert J Thomas Memorial Hospital 1 0 0 1 X X X X X X X X 19 1 1 1 1 X https://thomashealth.org/wp-content/uploads/2020/12/TMH-CHNA-and-IS-with-Ap X http://www.healthykanawha.org/ X 1 19 1 https://thomashealth.org/community-health/ 0 1 X 200.000000000000 320.000000000000 X X X X 1 1 X X X X 1 X https://thomashealth.org/financial-assistance/ X https://thomashealth.org/financial-assistance/ X https://thomashealth.org/financial-assistance/ X X X X 1 X 0 X X X 1 X 0 0 Herbert J. Thomas Memorial Hospital Part V, Section B, Line 5: The Coalition conducted data collection through community surveys, focus groups with under-represented populations, telehpone calls, and key informant interviews with professional representatives of key sections of the community. Herbert J. Thomas Memorial Hospital Part V, Section B, Line 6a: St. Francis Hospital, CAMC Memorial Hospital, CAMNC General Hospital, CAMC Women & Children's Hospital and Highland Hospital Association. Herbert J. Thomas Memorial Hospital Part V, Section B, Line 6b: Kanawha Coalition for Community Health Improvement Herbert J. Thomas Memorial Hospital Part V, Section B, Line 11: By conducting a CHNA, Thomas Memorial Hospital identified areas with significant need which it would focus its health improvement activities toward: 1) COVID-19, 2) health promotion and chronic disease prevention, and 3) drug and alcohol use (treatment and prevention). Other health needs identified are being addressed by providers within the community with more expertise in those areas. Saint Francis is addressing only the most significant health needs identified due to cost containment, resource constraints, and the relatively low priority assigned. Part I, Line 7: The cost of charity care and unreimbursed Medicaid was estimated using a cost to charge ratio derived from Worksheet 2 of the Schedule H instructions.The amount of cash and in-kind contributions to community groups was obtained from the hospital's accounting records. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 12,674,890. Part I, Line 3b The family income limit for eligibility for discounted care uses a range of 201%-320%. Part III, Line 2: Bad debt expense as reported on audited financial statements. Part III, Line 4: Bad debt expense is described in the consolidated financial statements as follows: Patient accounts receivable are carried at the original charge less an estimate made for doubtful or uncollectible accounts. The allowance is based upon a review of the outstanding balances aged by financial class. Management uses collection percentages based upon historical collection experience to determine collectability. Management also reviews troubled, aged accounts to determine collection potential. Patient accounts receivable are written off when deemed uncollectible. Recoveries of accounts previously written off are recorded as a reduction to bad debt expense when received. Part III, Line 8: Medicare allowable reimbursements and cost were obtained from the hospital's Medicare cost report. Part III, Line 9b: The organization's collection policies do not apply to patients that are known to qualify for financial assistance. Additionally, the organization has a separate Financial Assistance policy; patients who qualify for assistance under the policy do not receive a bill. Part VI, Line 2: The hospital is a member of the Kanawha Coalition for Community Health Improvement. The Coalition conducts a survey every three years to assess health care needs of the community. Results of the survey are presented in a meeting of community leaders and other interested persons, and are conveyed to the general public by local media. Results of the most recent survey were released March, 2020. Part VI, Line 3: The hospital informs and educates patients about their eligibility for assistance by: (1) providing a copy of the policy, or a summary thereof, and financial assistance contact information to patients as part of the intake process; (2) including the policy, or a summary thereof, along with financial assistance contact information, in patient bills; and (3) discussing with the patient the availability of various government benefits, such as Medicaid or state programs, and assisting the patient with qualification for such programs, where applicable. For those patients who come into our office after they receive a bill, we explain this same process to them. We also employ an outside agency, Advanced Patient Advocacy (APA), to speak with patients regarding Medicaid and other state and federal funding options. APA may speak with the patient during a stay or visit or after discharge. Hospital also has a DHHR employee on campus to help with getting the employees enrolled into Medicaid. Part VI, Line 4: The organization's geographic service area includes approximately 476,000 persons in a 12 county area of south-central West Virginia. Heart disease, cancer and pulmonary disease are the leading causes of death in the service area. Patients in the service area are typical of West Virginia as a whole. Except for the area within the Charleston, WV city limits, all of the counties in the organization's geographic service area are federally-designated Medically Underserved and Health Manpower Shortage Areas.Thomas Memorial Hospital is located within the city limits of Charleston, West Virginia and is in Kanawha County. Charleston is an urban area. Per the United States Census Bureau's 2019 census, the Population of Kanawha County is 178,124. The median household income is $41,900 and 16.3% are below poverty level. Kanawha Coalition for Community Health Improvement data report, 8.1% of Kanawha County adults under 65 are uninsured. There are 6 hospitals which serve the community. Part VI, Line 5: All members of the hospital's Board of Directors reside in the local community. The hospital extends medical staff privileges to all qualified physicians in the community who meet specific credentialing criteria. The hospital's 24 hour emergency room is available to all persons, regardless of ability to pay. The hospital prepares its budget to ensure adequate funding for capital improvements that are made on an on-going basis. Part VI, Line 6: The hospital, along with St. Francis Hospital, is part of Thomas Health System, Inc. The health system was formed to forge a partnership based on the strength of the two established hospitals. Bringing the two hospitals under the umbrella of the Thomas Health System allows them to provide innovative and cost-effective health care services to the Kanawha Valley and surrounding areas. Economies of scale have allowed for cost reductions in numerous areas, while providing advanced technology to a larger community, with access to the highest quality of physicians, nurses and support staff in our service area. The system provides a wide range of services that serves the entire community. 0 0 0 0 0 0 0 0 0 Daniel J Lauffer President/CEO Thomas Health 0 503718 0 325704 0 0 0 14000 0 22097 0 865519 0 0 Timothy K Skeldon Senior VP Finance/CFO Thomas Health 0 321580 0 51917 0 0 0 9768 0 22187 0 405452 0 0 Brian Ulery Executive VP/COO Thomas Health 0 328012 0 77207 0 0 0 12030 0 15814 0 433063 0 0 Tarek Anderson MD Physician 310564 0 0 0 0 0 14000 0 20517 0 345081 0 0 0 Patrick Rawlings Director of HR 116684 0 84397 0 0 0 5973 0 6759 0 213813 0 0 0 William K Priddy 304B Pharmacy Manager 186074 0 0 0 0 0 9348 0 2403 0 197825 0 0 0 John M Vickers Pharmacy Manager 173756 0 0 0 0 0 8946 0 16166 0 198868 0 0 0 Donna Gorton-Childers Rehab Clinical Director 149537 0 0 0 0 0 7854 0 21316 0 178707 0 0 0 Schedule J The Executive Compensation Committee, comprised of members who are free of any conflicts of interest, adheres to a disciplined process for reviewing compensation for senior executives to ensure that the compensation is reasonable. The Committee has retained an independent consulting and advisory firm, Gallagher & Company, to provide appropriate market data as to comparability. The Committee reviews comparability data and other relevant evidence and approves the compensation of senior executives; provided, however, that in the case of the CEO, the Board, after review of the comparability data and other relevant evidence, including a recommendation from the Committee, has the final approval with regard to the CEO's compensation. Only those Board members who are free of conflicts of interest vote on the CEO's compensation. All compensation decisions, including the comparability data reviewed and any other relevant information considered, are contemporaneously documented in meeting minutes. Form 990 Part V, Line 2a: Thomas Health System is the common paymaster for this related entity and therefore the W-2s are filed under Thomas Health System. This organization has approximately 1,440 employees. Form 990, Part VI, Section A, line 6 Thomas Health System, Inc., a nonprofit corporation organized under the laws of the State of West Virginia, is the sole member of the organization. Form 990, Part VI, Section A, line 7a The organization's board of directors is elected by its sole member, Thomas Health System, Inc. Form 990, Part VI, Section A, line 7b The Organization's sole member, Thomas Health System, Inc., reserves all corporate powers of the Organization except for items specifically listed in the Organization's Articles of Incorporation. Form 990, Part VI, Section B, line 11b Thomas Health System, Inc. (the System) is the sole member of the organization. The System's finance committee is responsible for financial management of the organization. The 990 is reviewed by the organization's CFO as part of the finance committee. The 990 is then discussed with the System's finance committee and a copy is provided to all board members before it is filed with the IRS. Form 990, Part VI, Section B, line 12c The organization regularly and consistently monitors and enforces compliance with our written conflict of interest policy by asking annually that all Trustees, officers and employees (managers) who have decision making/purchasing authority disclose any potential conflicts of interest. Disclosure forms are signed annually then logged onto a spread sheet that identifies any potential conflicts. Form 990, Part VI, Section B, line 15 The Executive Compensation Committee, comprised of members who are free of any conflicts of interest, adheres to a disciplined process for reviewing compensation for senior executives to ensure that the compensation is reasonable. The Committee has retained an independent consulting and advisory firm, Gallagher & Company, to provide appropriate market data as to comparability. The Committee reviews comparability data and other relevant evidence and approves the compensation of senior executives; provided, however, that in the case of the CEO, the Board, after review of the comparability data and other relevant evidence, including a recommendation from the Committee, has the final approval with regard to the CEO's compensation. Only those Board members who are free of conflicts of interest vote on the CEO's compensation. All compensation decisions, including the comparability data reviewed and any other relevant information considered, are contemporaneously documented in meeting minutes. Form 990, Part VI, Section C, line 19 The Hospital makes its governing documents, conflict of interest policy and financial statements available to the public upon request. These documents are maintained in the administrative offices of the hospital and are provided via copy upon request. The documents also can be reviewed on site at the hospital upon advance notice. Form 990, Part XI, line 9: Defined benefit pension plan adjustment -6,459,443. Audit expense adjustment -200. Thomas Health System Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 260440674 Corporate office WV 501(c)(3) Line 3 N/A 0 St Francis Hospital 333 Laidley St Charleston WV 25301 611272692 Hospital WV 501(c)(3) Line 3 Thomas Health System Inc 0 THS Physician Partners Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 454395947 Medical services WV 501(c)(3) Line 3 Thomas Health System Inc 0 TMH Services Inc 437 Division Street Ste 311 South Charleston WV 25309 550676607 Equipment sales, rental and related services, vending sales WV Thomas Memorial Hospital C 142819 6775204 1.00000 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 TMH Services J 213936 Accounting Records