2022-05-13T08:58:19-05:00 2021-06-30 135565207 KPMG LLP 8350 BROAD STREET STE 900 MCLEAN VA 22102 990 2020-07-01 232266054 TOWER HEALTH MEDICAL GROUP TOWE 4846284307 PO BOX 16052 READING PA 196126052 P SUE PERROTTY TOWER HLTH PRES/CEO 4846284307 2022-05-13 true P SUE PERROTTY XXX-XX-XXXX ANDREW ROE P01876391 7032868000 2022-05-13 2020 2022-09-23 18:48:47Z P SUE PERROTTY PO BOX 16052 READING PA 196126052 250280722 false X WWW.TOWERHEALTH.ORG/THMG X 1983 PA THE REGION'S PREMIER PHYSICIAN-DIRECTED, MULTISPECIALTY GROUP OF HEALTH CARE PROFESSIONALS WHO PARTICIPATE WITH TOWER HEALTH IN MANAGING POPULATION HEALTH AND PROMOTING WELLNESS, AND DELIVERING HEALTH CARE. 11 11 1967 11 0 3300283 5232778 200025044 240962239 67478 40086 2821406 4045619 206214211 250280722 0 0 351052639 363269933 0 0 103855848 109993513 454908487 473263446 -248694276 -222982724 76675941 88789275 110515939 120066645 -33839998 -31277370 X TOWER HEALTH MEDICAL GROUP IS THE REGION'S PREMIER PHYSICIAN-DIRECTED, MULTI-SPECIALTY GROUP OF HEALTH CARE PROFESSIONALS WHO PARTICIPATE WITH TOWER HEALTH IN MANAGING POPULATION HEALTH AND PROMOTING WELLNESS, DELIVERING HEALTH CARE THAT IS READILY ACCESSIBLE, COMPASSIONATE, AND OF THE HIGHEST QUALITY AND VALUE, AND ENGAGING IN CLINICAL RESEARCH AND THE EDUCATION OF HEALTH CARE PROFESSIONALS AND OUR COMMUNITIES. false false 82651612 54616029 OUR PRIMARY CARE PROGRAM IS COMPRISED OF INTERNAL MEDICINE AND FAMILY PRACTICE PHYSICIANS, PHYSICIAN ASSISTANTS, AND NURSE PRACTITIONERS THROUGHOUT 62 LOCATIONS IN BERKS, CHESTER, MONTGOMERY AND PHILADELPHIA COUNTIES. DURING FISCAL YEAR 2021, TOWER HEALTH MEDICAL GROUP'S PRIMARY CARE PROGRAM PROVIDED CARE THROUGH 429,153 PATIENT VISITS TO PATIENTS OF ALL AGES WITH A FOCUS ON WELLNESS AND DISEASE MANAGEMENT. ALL LOCATIONS ACCEPT BOTH MEDICARE AND MEDICAID PATIENTS. 51389394 23493512 OUR ACUTE HOSPITALIST PROGRAM IS COMPRISED LARGELY OF INTERNAL MEDICINE PHYSICIANS ALONG WITH PHYSICIAN ASSISTANTS AND NURSE PRACTITIONERS AT MULTIPLE TOWER HEALTH HOSPITAL LOCATIONS. DURING FISCAL YEAR 2021, TOWER HEALTH MEDICAL GROUP'S ACUTE HOSPITALIST PROGRAM PROVIDED EFFICIENT, HIGH- QUALITY, EVIDENCED-BASED CARE THROUGH 282,105 VISITS TO OUR SYSTEM'S HOSPITALIZED PATIENTS. THIS PROGRAM ACCEPTS BOTH MEDICARE AND MEDICAID PATIENTS. 39731592 18342217 THE SURGICAL SPECIALTIES AT READING HOSPITAL PROVIDED SURGICAL AND NON- SURGICAL CARE FOR 112,064 INPATIENT AND OUTPATIENT VISITS IN FY2021. THIS INCLUDES PRIMARILY PATIENTS REQUIRING SURGICAL OR PROCEDURAL TREATMENT. THIS PROGRAM ACCEPTS BOTH MEDICARE AND MEDICAID PATIENTS. 261436107 148550181 EXPENSES INCURRED IN PROVIDING VARIOUS OTHER HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, OR ABILITY TO PAY. OTHER PHYSICIAN SERVICES INCLUDE: REVENUE EXPENSE AMBULATORY SPECIALTIES 17,891,412 36,710,560 ANESTHESIA 15,231,558 30,203,704 BEHAVIORAL HEALTH SCIENCES 4,146,127 12,099,637 CARDIOLOGY 15,959,825 34,348,139 EMERGENCY 20,011,708 35,143,740 NEUROSCIENCES 8,241,945 25,763,506 WOMEN'S HEALTHCARE 22,125,582 35,312,121 ONCOLOGY 2,253,171 7,306,947 ORTHOPEDICS 2,898,163 6,004,100 PATHOLOGY 3,659,295 5,108,686 PEDIATRICS 7,565,148 13,391,028 RADIOLOGY 15,723,318 20,093,244 SUPPORT SERVICES 13,353,973 21,929,089 TRAUMA 1,993,844 7,034,225 TRANSPLANT 1,933,665 6,915,662 GASTRO 712,338 1,944,831 WHEN THE COVID PANDEMIC HIT OUR COMMUNITY IN MARCH 2020, IT CAUSED MANY CRITICAL NEEDS FOR OUR ORGANIZATION AND COMMUNITY. A STRONG EMPHASIS WAS PLACED ON SAFETY FOR OUR PATIENTS AND STAFF. TOWER HEALTH MEDICAL GROUP(THMG) DEFERRED AND RESUMED PATIENT APPOINTMENTS IN A PHASED IN APPROACH: PHASE 1 INVOLVED IMPLEMENTING SAFE ENVIRONMENTAL AND PERSONAL PROTECTIVE EQUIPMENT PROTOCOLS WITHIN OUR PRACTICE SETTINGS AS GUIDED BY THE CDC, LOCAL REGULATORY HEALTH AGENCIES AND ORGANIZATIONAL POLICY. PATIENT COVID SCREENING PRACTICES WERE IMPLEMENTED PRIOR TO VISITS WITH PROVIDERS. ANY PATIENTS WITH POSITIVE COVID SYMPTOM SCREEN RESULTS WERE REFERRED TO OUR COVID TESTING SITES, URGENT CARE LOCATIONS AND/OR TRIAGE NURSING HOTLINE FOR HOME MANAGEMENT AND MONITORING SUPPORT. PHASE 2 INVOLVED A TEMPORARY DEFERMENT AND RESCHEDULING OF PREVENTIVE, ANNUAL, OR WELLNESS VISITS IN ORDER TO MAINTAIN SAFE DISTANCING WITHIN OUR CLINICAL ENVIRONMENTS AND TO REDUCE COVID EXPOSURE FOR OUR PATIENTS AND EMPLOYEES. PATIENTS WITH NEGATIVE COVID SCREEN RESULTS WERE SEEN IN THE PRACTICES WITH THE ENFORCEMENT OF LIMITED VISITOR RESTRICTIONS. THOSE PATIENTS CONSIDERED STABLE BUT PRESENTING WITH POSITIVE COVID SCREENING RESULTS WERE OFFERED BOTH TELEPHONIC OR TELEMEDICINE VIDEO VISITS WITH OUR PROVIDERS FOR MEETING THEIR REQUESTED NEEDS FOR TIMELY MEDICAL ATTENTION. PHASE 3 INVOLVED THE RESUMPTION OF PREVENTIVE, ANNUAL OR WELLNESS VISITS BEING SCHEDULED WITH PATIENTS SCREENING NEGATIVE FOR COVID SYMPTOMS. SPECIFIC APPOINTMENT GUIDELINES FOR MANAGING PATIENT WORKFLOWS AND OUR CARE ENVIRONMENT ARE BEING FOLLOWED ACCORDING TO RECOMMENDATIONS BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION. OPTIMIZATION OF TELEMEDICINE VISITS (FACE TO FACE VIDEO) RESULTED IN GREATER PATIENT ACCESS TO AMBULATORY PROVIDER CONSULTATION AND TREATMENT SERVICES. THE MAJORITY OF OUR PRACTICES HAVE RESUMED PRE-COVID PATIENT VISIT VOLUMES. THE PANDEMIC CAUSED A DECREASE IN PATIENT VISITS OF APPROXIMATELY 35% IN THE LAST THREE AND A HALF MONTHS OF FY 2020. WHILE THE MOST DRAMATIC IMPACT OF THE PANDEMIC WAS FELT BY THE ORGANIZATION FROM MARCH 2020 THROUGH JUNE 2020, THE ORGANIZATION CONTINUED TO EXPERIENCE ITS EFFECTS INTO THE EARLY PART OF FY 2021. VOLUMES FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2020, WERE STILL LESS THAN PRE-PANDEMIC VOLUMES BY APPROXIMATELY 8%. BY OCTOBER 2020, THE ORGANIZATION BELIEVES ITS VOLUMES WERE RESTORED TO PRE-PANDEMIC LEVELS. THROUGHOUT FY21, THE MEDICAL GROUP CONTINUED TO EXPERIENCE CHALLENGES STILL RELATED TO THE PANDEMIC IN THE FOLLOWING AREAS: (A)PERMANENT CHANGES IN THE REQUIREMENTS FOR ADDITIONAL PROTECTIVE EQUIPMENT, SANITATION OF FACILITIES AND SOCIAL DISTANCING WHICH ADDED OPERATIONAL COSTS. (B)TELEMEDICINE VISITS CONTINUE BUT HAVE NOT INCREASED SINCE THE MOST INTENSE PERIOD OF THE PANDEMIC. HOWEVER, THE ORGANIZATION CONTINUES TO LOOK FOR WAYS TO EXPAND THIS SERVICE AS IT CONTINUES TO GAIN MOMENTUM FROM TIME TO TIME. (C)AS PATIENTS LIMITED TREATMENT FOR CHRONIC CONDITIONS, WHEN PATIENTS DO PRESENT, THEY TEND TO BE SICKER AND/OR THEIR CONDITIONS HAVE REGRESSED WHICH REQUIRES INCREASED CARE AND COST. (D)THE ORGANIZATION HAS HAD TO CONTINUE TO RESPOND TO THE SURGES THAT HAVE OCCURRED THROUGHOUT FY21 WHICH PUTS GREATER DEMAND ON STAFFING AND LESS RELIABILITY ON CONSISTENT VOLUMES. (E)SOME ROUTINE/ELECTIVE SURGERIES HAVE DECREASED TO CREATE ACCESS FOR THOSE PATIENTS WITH ACUTE CONDITIONS AND NEEDS. ONE OF THE MOST SIGNIFICANT CHALLENGES THROUGHOUT FY21 HAS BEEN THE CONTINUED DECREASE IN AVAILABLE STAFFING. THIS HAS IMPACTED ALL AREAS OF THE ORGANIZATION INCLUDING PROVIDERS OF CARE AS INDIVIDUALS SEEK ALTERNATIVE FORMS OF EMPLOYMENT OR ARE UNAVAILABLE DUE TO CONTRACTING THE COVID VIRUS. THE COMPETITIVE LANDSCAPE HAS CHANGED AS THE GREATER DEMAND OF STAFF HAS CREATED SALARY CHALLENGES, ESCALATED COSTS AND REQUIRING THE ORGANIZATION IN MANY CASES TO FIND RESOURCES OUTSIDE OF TYPICAL EMPLOYMENT AND AT GREAT EXPENSE. THIS LACK OF RESOURCES HAS NEGATIVELY IMPACTED PATIENT ACCESS AND THE ORGANIZATION CONTINUES TO FIND CREATIVE WAYS TO PROVIDE CARE WITH LESS RESOURCES AND BALANCING COSTS. 261436107 148550181 435208705 true true false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false false false false false false false false false false true true true false false false true 0 0 true 1967 true false false false false false false false false false false false false false false X 11 11 false false false false true true true true true false false true true true true true true true true false PA X ROBERT EHINGER SVP FIN OPERATIONS 4846288000 420 SOUTH 5TH AVENUE WEST READING PA 19611 CLINT MATTHEWS PRES & CEO T 2.00 58.00 X X 0 1853435 531987 THOMAS G PSARROS MD PHYSICIAN 50.00 X 1640124 0 41094 GARY F CONNER TREAS. TERM 2.00 52.50 X X 0 1369454 221759 JOHN A BRACA III MD PHYSICIAN 50.00 X 1087562 0 34962 SHAHIN MANOOCHEHRI PHYSICIAN 50.00 X 1050852 0 19190 HERMAN C LAWSON MD PHYSICIAN 50.00 X 942100 0 14606 ERIC E ELGIN MD PHYSICIAN 50.00 X 899076 0 34962 SUZANNE WENDEROTH SVP CHIEF CL 50.00 2.50 X 511810 0 126661 THERESA FINK SVP COO 52.00 X 433623 0 121447 KRISTIN KEARNEY SVP CFO 52.00 X 368909 0 72031 SEAN O'CONNELL INTERIM TREA 2.00 48.00 X X 0 335961 47021 TRACY DRUCKENMILLER SECRETARY 2.00 38.00 X 0 107085 32366 BARBARA ARNER BOARD MEMBER 2.00 2.00 X 0 0 0 THEODORE AUMAN BOARD MEMBER 2.00 2.00 X 0 0 0 JIM BOSCOV BOARD MEMBER 2.00 4.00 X 0 0 0 JOHN FRY BOARD MEMB T 2.00 2.00 X 0 0 0 ANGEL HELM BOARD MEMBER 2.00 2.00 X 0 0 0 CHRIS KRARAS BOARD MEMBER 2.00 4.00 X 0 0 0 BRENT WAGNER MD BOARD MEMBER 2.00 2.00 X 0 0 0 MEG MULLER VICE CHAIR 2.00 2.00 X X 0 0 0 P SUE PERROTTY TOWER HLTH P 2.00 50.00 X 0 0 0 KAREN RIGHTMIRE BOARD MEMBER 2.00 4.00 X 0 0 0 WILLIAM P THORNTON BOARD MEMBER 2.00 2.00 X 0 0 0 C THOMAS WORK CHAIRMAN 2.00 4.00 X X 0 0 0 6934056 3665935 1298086 753 false true false LOCUMSMART LLC PO BOX 372 COTTONTOWN TN 37048 MED STAFF SERV 6328330 UNIV OF PENN MEDICAL GROUP 51 N 39TH STREET ROOM 120 PHILADELPHIA PA 19104 MED STAFF SERV 3414818 VISTA STAFFING SOLUTIONS INC FILE 50834 LOS ANGELES CA 900740834 MED STAFF SERV 2283336 WEATHERBY LOCUMS INC PO BOX 972633 DALLAS TX 753972633 MED STAFF SERV 1488120 POTTSTOWN MEDICAL SPECIALISTS 1601 MEDICAL DRIVE POTTSTOWN PA 19464 MED STAFF SERV 816664 21 5062600 170178 5232778 NET PATIENT REVENUE 621300 238866232 238866232 CAPITATION REVENUE 621300 2096007 2096007 240962239 40086 40086 5919 5919 5919 5919 INSURANCE INCENTIVES 900099 3575204 3575204 HEALTH INS SHARED SAVINGS 900099 349698 349698 OTHER INCOME 900099 114798 114798 4039700 250280722 245001939 46005 1671678 1671678 314056409 302100194 11956215 8982782 8582385 400397 21268715 19670212 1598503 17290349 16458503 831846 -8 -8 940 940 22263113 19839247 2423866 18059339 16981431 1077908 71378 56628 14750 168254 168254 2207251 2148179 59072 11418600 11418600 PHYSICIAN FEES 16155785 16155785 CORPORATE EXP ALLOCATION 15904731 15904731 SUPPLIES 13962172 13791951 170221 OTHER EXPENSES 9781958 7836404 1945554 473263446 435208705 38054741 0 1347543 23696 25391894 26660612 1544681 1512108 39265698 20613347 15166712 18652351 33225111 41940508 76675941 88789275 64736546 64791442 45779393 55275203 110515939 120066645 X -33839998 -31277370 -33839998 -31277370 76675941 88789275 X -222982724 225545352 X false true X true false X true RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10755660 7368562 3387098 14180172 11051940 3128232 14329866 2192845 12137021 18652351 OPERATING LEASE RIGHT-OF-USE ASSETS 41860105 SECURITY DEPOSITS 80403 41940508 OPERATING LEASE OBLIGATION 35994819 DEFERRED REVENUE MEDICARE COVID-19 8397852 OPERATING LEASE CURRENT 6277771 FINANCE LEASE OBLIGATION 2115586 OTHER CURRENT LIABILITIES 2071312 FINANCE LEASE CURRENT 360599 OTHER 457 PLAN 57264 55275203 X SCHEDULE D, PAGE 3, PART X THE SYSTEM IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. ON SUCH A BASIS, THE EXEMPT ENTITIES DO NOT INCUR LIABILITY FOR FEDERAL INCOME TAXES, EXCEPT IN THE CASE OF UNRELATED BUSINESS INCOME. THE SYSTEM EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. NO ADJUSTMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS WERE REQUIRED AS A RESULT OF THIS EVALUATION. false true false false false false false false false CLINT MATTHEWS PRES & CEO TERM 2/21 1392025 461410 492108 39879 2385422 426790 THOMAS G PSARROS MD PHYSICIAN 1392102 248022 17100 23994 1681218 GARY F CONNER TREAS. TERM 2/2021 736896 632558 208112 13647 1591213 587504 JOHN A BRACA III MD PHYSICIAN 718259 60000 309303 11400 23562 1122524 SHAHIN MANOOCHEHRI PHYSICIAN 672450 53400 325002 11400 7790 1070042 HERMAN C LAWSON MD PHYSICIAN 728000 60000 154100 14250 356 956706 ERIC E ELGIN MD PHYSICIAN 694381 46157 158538 11400 23562 934038 SUZANNE WENDEROTH SVP CHIEF CLINIC OFF 474869 36941 102217 24444 638471 35801 THERESA FINK SVP COO 399992 33631 97435 24012 555070 32236 KRISTIN KEARNEY SVP CFO 332264 36645 63790 8241 440940 35355 SEAN O'CONNELL INTERIM TREAS 2/2021 334671 1290 46214 807 382982 SCHEDULE J, PAGE 1, PART I, LINE 4 CLINT MATTHEWS 0 426,790 0 GARY F. CONNER 0 587,504 0 SUZANNE WENDEROTH 0 35,801 0 THERESA FINK 0 32,236 0 KRISTIN KEARNEY 0 35,355 0 SCHEDULE J, PART III SCHEDULE J, PART I, LINE 3 TOP MANAGEMENT COMPENSATION: AS PROVIDED IN THE FORM 990, SCHEDULE J INSTRUCTIONS, SINCE THE ORGANIZATION RELIES ON A RELATED ORGANIZATION WHICH USES ONE OR MORE OF THE METHODS DESCRIBED IN LINE 3 TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION, THIS QUESTION HAS BEEN LEFT UNANSWERED. COMPENSATION PROCESS: THIS ORGANIZATION DOES NOT PAY THE COMPENSATION REPORTED FROM RELATED ENTITIES. THE COMPENSATION OF EXECUTIVES IS DETERMINED BY TOWER HEALTH'S BOARD OF DIRECTORS, WHICH HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO THE TOWER HEALTH MEDICAL GROUP'S EXECUTIVE MANAGEMENT. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVECOMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS ENTIRELY OF DISINTERESTED MEMBERS OF THE BOARD, AND THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. SCHEDULE J, PART I, LINE 4B TERMS AND CONDITIONS OF PARTICIPATION IN THE SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: THE 457(F) PLAN IS A TAX-DEFERRED RETIREMENT PLAN CONSISTING OF EMPLOYER CONTRIBUTIONS THAT ARE DESIGNED TO HELP SUPPLEMENT THE RETIREMENT SAVINGS FOR KEY EMPLOYEES. THE EMPLOYEE IS IMMEDIATELY ELIGIBLE TO RECEIVE TOWER HEALTH CONTRIBUTIONS TO THE 457(F) DEFERRED COMPENSATION PLAN. THE EMPLOYEE MUST BE EMPLOYED ON DECEMBER 31ST TO RECEIVE THE EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR. THE EMPLOYEE SHALL BECOME 100% VESTED IN THE EMPLOYER CONTRIBUTION FOR THAT PLAN YEAR THREE YEARS AFTER THE CONTRIBUTION HAS BEEN MADE TO THE ACCOUNT. THE EMPLOYEE WILL ALSO BECOME 100% VESTED IN ALL OF THE EMPLOYER CONTRIBUTIONS: 1) UPON ATTAINING THE AGE 65 WHILE STILL EMPLOYED BY TOWER HEALTH 2) DUE TO DEATH OR DISABILITY 3) UPON TERMINATION OF EMPLOYMENT WITHOUT CAUSE FORM 990 - ORGANIZATION'S MISSION TOWER HEALTH MEDICAL GROUP IS THE REGION'S PREMIER PHYSICIAN-DIRECTED, MULTI-SPECIALTY GROUP OF HEALTH CARE PROFESSIONALS WHO PARTICIPATE WITH TOWER HEALTH IN MANAGING POPULATION HEALTH AND PROMOTING WELLNESS, DELIVERING HEALTH CARE THAT IS READILY ACCESSIBLE, COMPASSIONATE, AND OF THE HIGHEST QUALITY AND VALUE, AND ENGAGING IN CLINICAL RESEARCH AND THE EDUCATION OF HEALTH CARE PROFESSIONALS AND OUR COMMUNITIES. FORM 990, PAGE 1, PART I, LINE 6 BOARD MEMBERS WITHOUT COMPENSATION ARE VOLUNTEERS. FORM 990, PAGE 2, PART III, LINE 4D EXPENSES INCURRED IN PROVIDING VARIOUS OTHER HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, OR ABILITY TO PAY. OTHER PHYSICIAN SERVICES INCLUDE: REVENUE EXPENSE AMBULATORY SPECIALTIES 17,891,412 36,710,560 ANESTHESIA 15,231,558 30,203,704 BEHAVIORAL HEALTH SCIENCES 4,146,127 12,099,637 CARDIOLOGY 15,959,825 34,348,139 EMERGENCY 20,011,708 35,143,740 NEUROSCIENCES 8,241,945 25,763,506 WOMEN'S HEALTHCARE 22,125,582 35,312,121 ONCOLOGY 2,253,171 7,306,947 ORTHOPEDICS 2,898,163 6,004,100 PATHOLOGY 3,659,295 5,108,686 PEDIATRICS 7,565,148 13,391,028 RADIOLOGY 15,723,318 20,093,244 SUPPORT SERVICES 13,353,973 21,929,089 TRAUMA 1,993,844 7,034,225 TRANSPLANT 1,933,665 6,915,662 GASTRO 712,338 1,944,831 WHEN THE COVID PANDEMIC HIT OUR COMMUNITY IN MARCH 2020, IT CAUSED MANY CRITICAL NEEDS FOR OUR ORGANIZATION AND COMMUNITY. A STRONG EMPHASIS WAS PLACED ON SAFETY FOR OUR PATIENTS AND STAFF. TOWER HEALTH MEDICAL GROUP(THMG) DEFERRED AND RESUMED PATIENT APPOINTMENTS IN A PHASED IN APPROACH: PHASE 1 INVOLVED IMPLEMENTING SAFE ENVIRONMENTAL AND PERSONAL PROTECTIVE EQUIPMENT PROTOCOLS WITHIN OUR PRACTICE SETTINGS AS GUIDED BY THE CDC, LOCAL REGULATORY HEALTH AGENCIES AND ORGANIZATIONAL POLICY. PATIENT COVID SCREENING PRACTICES WERE IMPLEMENTED PRIOR TO VISITS WITH PROVIDERS. ANY PATIENTS WITH POSITIVE COVID SYMPTOM SCREEN RESULTS WERE REFERRED TO OUR COVID TESTING SITES, URGENT CARE LOCATIONS AND/OR TRIAGE NURSING HOTLINE FOR HOME MANAGEMENT AND MONITORING SUPPORT. PHASE 2 INVOLVED A TEMPORARY DEFERMENT AND RESCHEDULING OF PREVENTIVE, ANNUAL, OR WELLNESS VISITS IN ORDER TO MAINTAIN SAFE DISTANCING WITHIN OUR CLINICAL ENVIRONMENTS AND TO REDUCE COVID EXPOSURE FOR OUR PATIENTS AND EMPLOYEES. PATIENTS WITH NEGATIVE COVID SCREEN RESULTS WERE SEEN IN THE PRACTICES WITH THE ENFORCEMENT OF LIMITED VISITOR RESTRICTIONS. THOSE PATIENTS CONSIDERED STABLE BUT PRESENTING WITH POSITIVE COVID SCREENING RESULTS WERE OFFERED BOTH TELEPHONIC OR TELEMEDICINE VIDEO VISITS WITH OUR PROVIDERS FOR MEETING THEIR REQUESTED NEEDS FOR TIMELY MEDICAL ATTENTION. PHASE 3 INVOLVED THE RESUMPTION OF PREVENTIVE, ANNUAL OR WELLNESS VISITS BEING SCHEDULED WITH PATIENTS SCREENING NEGATIVE FOR COVID SYMPTOMS. SPECIFIC APPOINTMENT GUIDELINES FOR MANAGING PATIENT WORKFLOWS AND OUR CARE ENVIRONMENT ARE BEING FOLLOWED ACCORDING TO RECOMMENDATIONS BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION. OPTIMIZATION OF TELEMEDICINE VISITS (FACE TO FACE VIDEO) RESULTED IN GREATER PATIENT ACCESS TO AMBULATORY PROVIDER CONSULTATION AND TREATMENT SERVICES. THE MAJORITY OF OUR PRACTICES HAVE RESUMED PRE-COVID PATIENT VISIT VOLUMES. THE PANDEMIC CAUSED A DECREASE IN PATIENT VISITS OF APPROXIMATELY 35% IN THE LAST THREE AND A HALF MONTHS OF FY 2020. WHILE THE MOST DRAMATIC IMPACT OF THE PANDEMIC WAS FELT BY THE ORGANIZATION FROM MARCH 2020 THROUGH JUNE 2020, THE ORGANIZATION CONTINUED TO EXPERIENCE ITS EFFECTS INTO THE EARLY PART OF FY 2021. VOLUMES FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2020, WERE STILL LESS THAN PRE-PANDEMIC VOLUMES BY APPROXIMATELY 8%. BY OCTOBER 2020, THE ORGANIZATION BELIEVES ITS VOLUMES WERE RESTORED TO PRE-PANDEMIC LEVELS. THROUGHOUT FY21, THE MEDICAL GROUP CONTINUED TO EXPERIENCE CHALLENGES STILL RELATED TO THE PANDEMIC IN THE FOLLOWING AREAS: (A)PERMANENT CHANGES IN THE REQUIREMENTS FOR ADDITIONAL PROTECTIVE EQUIPMENT, SANITATION OF FACILITIES AND SOCIAL DISTANCING WHICH ADDED OPERATIONAL COSTS. (B)TELEMEDICINE VISITS CONTINUE BUT HAVE NOT INCREASED SINCE THE MOST INTENSE PERIOD OF THE PANDEMIC. HOWEVER, THE ORGANIZATION CONTINUES TO LOOK FOR WAYS TO EXPAND THIS SERVICE AS IT CONTINUES TO GAIN MOMENTUM FROM TIME TO TIME. (C)AS PATIENTS LIMITED TREATMENT FOR CHRONIC CONDITIONS, WHEN PATIENTS DO PRESENT, THEY TEND TO BE SICKER AND/OR THEIR CONDITIONS HAVE REGRESSED WHICH REQUIRES INCREASED CARE AND COST. (D)THE ORGANIZATION HAS HAD TO CONTINUE TO RESPOND TO THE SURGES THAT HAVE OCCURRED THROUGHOUT FY21 WHICH PUTS GREATER DEMAND ON STAFFING AND LESS RELIABILITY ON CONSISTENT VOLUMES. (E)SOME ROUTINE/ELECTIVE SURGERIES HAVE DECREASED TO CREATE ACCESS FOR THOSE PATIENTS WITH ACUTE CONDITIONS AND NEEDS. ONE OF THE MOST SIGNIFICANT CHALLENGES THROUGHOUT FY21 HAS BEEN THE CONTINUED DECREASE IN AVAILABLE STAFFING. THIS HAS IMPACTED ALL AREAS OF THE ORGANIZATION INCLUDING PROVIDERS OF CARE AS INDIVIDUALS SEEK ALTERNATIVE FORMS OF EMPLOYMENT OR ARE UNAVAILABLE DUE TO CONTRACTING THE COVID VIRUS. THE COMPETITIVE LANDSCAPE HAS CHANGED AS THE GREATER DEMAND OF STAFF HAS CREATED SALARY CHALLENGES, ESCALATED COSTS AND REQUIRING THE ORGANIZATION IN MANY CASES TO FIND RESOURCES OUTSIDE OF TYPICAL EMPLOYMENT AND AT GREAT EXPENSE. THIS LACK OF RESOURCES HAS NEGATIVELY IMPACTED PATIENT ACCESS AND THE ORGANIZATION CONTINUES TO FIND CREATIVE WAYS TO PROVIDE CARE WITH LESS RESOURCES AND BALANCING COSTS. FORM 990, PAGE 6, PART VI, LINE 6 THE SOLE MEMBER OF TOWER HEALTH MEADICAL GROUP IS TOWER HEALTH, A PENNSYLVANIA NONPROFIT 501(C)(3) CORPORATION. FORM 990, PAGE 6, PART VI, LINE 7A THE SOLE MEMBER OF TOWER HEALTH MEDICAL GROUP IS TOWER HEALTH, A PENNSYLVANIA NONPROFIT 501(C)(3) CORPORATION. THE BUSINESS AND AFFAIRS OF THE CORPORATION SHALL BE MANAGED BY THE BOARD OF DIRECTORS OF TOWER HEALTH UNDER THE PURSUANT TO THE PROVISIONS OF THE BYLAWS OF TOWER HEALTH. FORM 990, PAGE 6, PART VI, LINE 7B THE SOLE MEMBER OF TOWER HEALTH MEDICAL GROUP IS TOWER HEALTH, A PENNSYLVANIA NONPROFIT 501(C)(3) CORPORATION. THE BUSINESS AND AFFAIRS OF THE CORPORATION SHALL BE MANAGED BY THE BOARD OF DIRECTORS OF TOWER HEALTH UNDER THE PURSUANT TO THE PROVISIONS OF THE BYLAWS OF TOWER HEALTH. FORM 990, PAGE 6, PART VI, LINE 11B TOWER HEALTH MEDICAL GROUP'S RETURN IS PREPARED BY HOSPITAL STAFF AND REVIEWED BY ITS EXTERNAL TAX ADVISORS. THE TOWER HEALTH MEDICAL GROUP'S RETURN IS THEN POSTED FOR REVIEW BY THE TOWER HEALTH BOARD, WHICH IS THE PARENT CORPORATION, PRIOR TO FILING THE RETURN. FORM 990, PAGE 6, PART VI, LINE 12C IT SHALL BE THE POLICY OF THE HOSPITAL AND CORRESPONDINGLY TOWER HEALTH MEDICAL GROUP TO REQUIRE EACH BOARD MEMBER TO SUBMIT IN WRITING TO THE CHIEF EXECUTIVE OFFICER A LIST OF BUSINESS OR OTHER ORGANIZATIONS OF WHICH THE MEMBER OR MEMBER'S SPOUSE IS AN OFFICER, DIRECTOR, MEMBER EMPLOYEE OR OWNER (35% OR GREATER SHARE) WITH WHICH THE COMPANY MIGHT REASONABLY ENTER INTO A RELATIONSHIP OR A TRANSACTION IN WHICH THE BOARD MEMBER WOULD HAVE CONFLICTING INTERESTS. EACH YEAR A COPY OF THE WRITTEN STATEMENT WILL BE SENT TO THE BOARD MEMBER FOR UPDATING AND RESUBMISSION AND BY WHICH THE BOARD MEMBER SHALL CONFIRM HIS AWARENESS OF THIS POLICY. FORM 990, PAGE 6, PART VI, LINE 15A THE COMPENSATION OF EXECUTIVES IS DETERMINED BY TOWER HEALTH'S BOARD OF DIRECTORS, WHICH HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO THE TOWER HEALTH MEDICAL GROUP'S EXECUTIVE MANAGEMENT. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS ENTIRELY OF DISINTERESTED MEMBERS OF THE BOARD, AND THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. FORM 990, PAGE 6, PART VI, LINE 15B SAME RESPONSE AT QUESTION 15A FORM 990, PAGE 6, PART VI, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9 INTERCOMPANY ELIMINATIONS 225,545,352 TOWER HEALTH MEDICAL GROUP HOLDING 420 SOUTH 5TH AVENUE WEST READING PA 19611 822221547 HEALTHCARE PA 65082028 20076472 THMG COATESVILLE CLINIC COMPANY LLC 201 REECEVILLE ROAD COATESVILLE PA 19320 204634462 HEALTHCARE PA 5640935 1909442 THMG HOLD COATESVILLE CARDIOLOGY CLINIC LLC 201 REECEVILLE ROAD COATESVILLE PA 19320 272764483 HEALTHCARE PA 1741919 1813488 THMG HOLD VILLAGE MEDICAL CENTER ASSOC LLC 201 REECEVILLE ROAD COATESVILLE PA 19320 261913734 HEALTHCARE PA 933349 THMG HOLD CHESTNUT HILL CLINIC COMPANY LLC 8835 GERMANTOWN AVE PHILADELPHIA PA 19118 205689327 HEALTHCARE PA 14879815 3553210 THMG HOLD WEST GROVE CLINIC COMPANY LLC 1015 W BALTIMORE PIKE WEST GROVE PA 19390 205689381 HEALTHCARE PA 3442167 3072787 THMG HOLD WEST GROVE FAMILY PRACTICE LLC 1015 W BALTIMORE PIKE WEST GROVE PA 19390 263678542 HEALTHCARE PA 1820847 1879203 THMG HOLD JENNERSVILLE FAMILY MEDICINE LLC 1015 W BALTIMORE PIKE WEST GROVE PA 19390 263678578 HEALTHCARE PA 1279177 1567969 THMG HOLD PHOENIXVILLE CLINIC COMPANY LLC 140 NUTT ROAD PHOENIXVILLE PA 19460 204398490 HEALTHCARE PA 12957455 -4410625 THMG HOLD PHOENIXVILLE SPECIALTY CLINIC LLC 140 NUTT ROAD PHOENIXVILLE PA 19460 205689638 HEALTHCARE PA 228 -19249 THMG HOLD PHOENIXVILLE ORTHO SPECIALISTS LLC 140 NUTT ROAD PHOENIXVILLE PA 19460 900870615 HEALTHCARE PA 2858463 3192461 THMG HOLD SCHUYLKILL INTERNAL MED ASSOC LLC 140 NUTT ROAD PHOENIXVILLE PA 19460 260598987 HEALTHCARE PA 622206 396042 THMG HOLD POTTSTOWN CLINIC COMPANY LLC 1600 EAST HIGH STREET POTTSTOWN PA 19464 061694715 HEALTHCARE PA 14119222 4916939 THMG HOLD COVENTRY CLINIC LLC 1600 EAST HIGH STREET POTTSTOWN PA 19464 205689515 HEALTHCARE PA 2202 -788867 THMG HOLD TOWER-DREXEL ACADEMIC MED GRP LLC 219 NORTH BROAD STREET 1ST FLOOR PHILADELPHIA PA 19107 205689638 HEALTHCARE PA 5717391 2060324 THG HOLD TOWER HEALTH 420 SOUTH 5TH AVENUE WEST READING PA 19611 232201344 HEALTHCARE PA 501C3 12C NA false READING HOSPITAL 420 SOUTH 5TH AVENUE WEST READING PA 19611 231352204 HEALTHCARE PA 501C3 3 TOWER HLTH false THE FRIENDS OF THE READING HOSPITAL 420 SOUTH 5TH AVENUE WEST READING PA 19611 236026108 FUNDRAISE PA 501C3 10 RDG HOSP false THE RDG HOSPITAL & MED CENTER SELF- 420 SOUTH 5TH AVENUE WEST READING PA 19611 232087514 TRUST FUND PA 501C3 12B RDG HOSP false READING HOSPITAL FOUNDATION 420 SOUTH 5TH AVENUE WEST READING PA 19611 473054125 SUPPORT PA 501C3 12B RDG HOSP false TOWER HEALTH AT HOME 1170 BERKSHIRE BLVD WYOMISSING PA 19610 232469321 SUPPORTING PA 501C3 12B TOWER HLTH false THAH - ADVANTAGE HOME CARE 1170 BERKSHIRE BLVD WYOMISSING PA 19610 232469319 HEALTHCARE PA 501C3 3 THAH false TOWER HEALTH AT HOME - BERKS 1170 BERKSHIRE BLVD WYOMISSING PA 19610 231466250 HEALTHCARE PA 501C3 3 THAH false TOWER HEALTH AT HOME - POTTSTOWN 1170 BERKSHIRE BLVD WYOMISSING PA 19610 231352574 HEALTHCARE PA 501C3 3 THAH false SOUTHERN CHESTER CNTY MED BLDG 1 1015 WEST BALTIMORE PIKE WEST GROVE PA 19390 232200841 HEALTHCARE PA N/A false false READING - UPMC JOINT VENTURE LLC 600 GRANT STREET PITTSBURGH PA 15219 814566751 HEALTHCARE PA NA false false TOWERUSP SURGERY CENTERS 15305 DALLAS PARKWAY-SUITE 1600LB28 ADDISON TX 75001 364911103 HEALTHCARE PA N/A false false MEDICAL SCHOOL VENTURE LLC ELLIS PRES 3843 WEST CHESTER PIKE NEWTOWN SQUARE PA 19073 842638593 HEALTHCARE PA N/A false false TOWER HEALTH PPO PO BOX 14744 READING PA 19612 232430798 PPO PA NA C CORP false MEDICUS RESOURCE MANAGEMENT PO BOX 14744 READING PA 19612 232565297 CM REVIEW PA NA C CORP false TOWER HEALTH RECIPROCAL RISK 151 MEETING STREET SUITE 301 CHARLESTON SC 29401 822758845 INSURANCE SC N/A C CORP false false false false false false false false false false false true false false false false false false false true