2021-05-17T17:49:50-05:00 2020-06-30 366055558 GRANT THORNTON LLP 2001 MARKET STREET SUITE 700 PHILADELPHIA PA 19103 990 2019-07-01 231352211 ST JOSEPH REGIONAL HEALTH NETWORK STJO 6103782300 2500 BERNVILLE ROAD READING PA 19605 PAULA TINCH SVP & CFO 8002431455 2021-05-17 1 RUSSLEE ARMSTRONG P00288383 2155614200 2019 2022-09-23 18:48:47Z PENN STATE HEALTH ST JOSEPH JOSEPH FRANK 2500 BERNVILLE ROAD READING PA 19605 261498977 0 X WWW.PENNSTATEHEALTH.ORG/LOCATIONS/ST-JOSEPH X 1889 PA TO NURTURE THE HEALING MINISTRY OF THE CHURCH, SUPPORTED BY EDUCATION AND RESEARCH. 12 8 1761 109 695733 152725 3875851 14960366 260448112 242068649 14030 130945 4410207 4310887 268748200 261470847 28616521 39964467 0 0 97423378 103657473 0 0 0 132355121 144313618 258395020 287935558 10353180 -26464711 170923660 158961290 167802039 182304380 3121621 -23343090 X THE MISSION OF ST. JOSEPH REGIONAL HEALTH NETWORK IS TO NURTURE THE HEALING MINISTRY OF THE CHURCH, SUPPORTED BY EDUCATION AND RESEARCH. FIDELITY TO THE GOSPEL URGES US TO EMPHASIZE HUMAN DIGNITY AND SOCIAL JUSTICE AS WE CREATE HEALTHIER COMMUNITIES. (CONTINUED IN SCH O) 0 0 224505724 39964467 244501563 SEE SCHEDULE H 224505724 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 X 0 0 1761 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 12 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 PA X CFO 6103782300 2500 BERNVILLE ROAD READING PA 19605 ALAN BRECHBILL DIRECTOR /PSH EXEC VP 2.00 48.00 X 0 1180703 70719 STEPHEN MASSINI DIRECTOR / PSH CEO (BEG 9/2019) 2.00 48.00 X 0 1093641 31451 JOHN MORAHAN PRESIDENT/CEO/DIRECTOR (THRU 5/2020) 36.00 4.00 X X 0 671661 44066 LOUIS BORGATTA MD DIRECTOR / (PHYSICIAN) 2.00 38.00 X 0 648601 42685 PAULA TINCH INTERIM TREAS/PSH SENIOR VP/CFO (BEG 3/2020) 2.00 48.00 X 0 381891 19681 ANNEMARIE BOYAN INT SEC/PSH ASSOC GC (BEG 3/2020) 2.00 48.00 X 0 353295 36214 SARA KLEIMAN PHYSICIAN ADVISOR 40.00 0.00 X 332010 0 48620 SHARON STROHECKER VP, NURSING AND CNO 40.00 0.00 X 346081 0 31581 COURTNEY COFFMAN SECRETARY/TREAS/CFO (THRU 12/2019) 36.00 4.00 X 308703 0 38892 SCOTT MENGLE VP, HUMAN RESOURCES 40.00 0.00 X 274723 0 36607 MICHAEL BRADLEY MEDICAL DIRECTOR 40.00 0.00 X 232623 0 29925 MARY HAHN VP STRATEGY & BUS. DEV. 40.00 0.00 X 233208 0 15828 ANDREW JONES PHYSICIST 40.00 0.00 X 214598 0 33841 MICHAEL JUPINA VP COMMUNICATIONS 40.00 0.00 X 219241 0 6579 CHRISTOPHER NEWMAN PHYSICIAN 40.00 0.00 X 210334 0 12323 ACCAMMA JOY PHYSICIAN 40.00 0.00 X 204559 0 15375 MAMIE ESCHLEMAN REGISTERED NURSE 40.00 0.00 X 200741 0 6420 CHRISTOPHER FALLON INTERIM CFO (BEG 01/2020) 36.00 4.00 X 0 0 0 HEIDI B MASANO CHAIR / DIRECTOR 2.00 2.00 X X 0 0 0 JOSEPH FRANK INTERIM PRESIDENT/CEO (5/4/20) 40.00 0.00 X X 0 0 0 MICHAEL DUFF VICE CHAIR / DIRECTOR 2.00 0.00 X X 0 0 0 J ANDREW WEIDMAN DIRECTOR 2.00 0.00 X 0 0 0 BRUCE D SMITH DIRECTOR 2.00 0.00 X 0 0 0 CARL N BOTTERBUSCH DIRECTOR 2.00 0.00 X 0 0 0 IVAN TORRES EDD DIRECTOR 2.00 0.00 X 0 0 0 PETER M CARLINO DIRECTOR 2.00 1.00 X 0 0 0 SR CLARE CHRISTI SCHIEFER OSF DIRECTOR 2.00 2.00 X 0 0 0 2776821 4329792 520807 120 0 1 0 SODEXO INC PO BOX 360170 PITTSBURGH PA 15251 FOOD & DIETARY 3437700 HEALTHTRUST WORKFORCE SOLUTIONS PO BOX 742697 ATLANTA GA 30374 TEMP HELP 1984959 EMERGENCY PHYSICIANS ASSOCIATES OF PA PO BOX 634850 CINCINNATI OH 45263 PHYSICIAN SERVICES 1566767 ON TOP MEDICAL LLC 100 ABBY ROAD THIBODAUX LA 70301 PHYSICIAN SERVICES 1320000 QUEST DIAGNOSTICS INC PO BOX 828669 PHILADELPHIA PA 19182 LAB SERVICES 1209933 32 4774621 10185745 14960366 NET PATIENT SERVICES 900099 235050416 235050416 OTHER HEALTHCARE RELATED REVENUE 900099 7018233 6322500 695733 242068649 127233 127233 1182240 0 1182240 1182240 1182240 31842 28130 3712 3712 3712 INCENTIVE INCOME 900099 756902 756902 SPORTS MEDICINE (SCHOOL/COLLEGE) 900099 279804 279804 RESIDENCY 900099 145558 145558 1946383 1946383 3128647 261470847 244501563 695733 1313185 39964467 39964467 1734100 680338 1053762 80753271 67170406 13582865 3218565 2665371 553194 11959483 9890868 2068615 5992054 4931460 1060594 2334 2334 22633623 13566042 9067581 1441 1441 4479491 3557140 922351 4952283 2575941 2376342 147621 116062 31559 62068 42563 19505 4068832 4068832 9590724 4922127 4668597 1298073 1269469 28604 MEDICAL SUPPLIES 54081374 54081374 0 ALLOCATED CORP SERVICES 20610708 0 20610708 BAD DEBT 18241185 18241185 0 LICENSE FEES 446772 275692 171080 3697089 553778 3143311 287935558 224505724 63429834 0 16004275 11576273 47192297 35407393 6009584 6199854 934623 1442590 141387910 41494624 96134160 99893286 0 0 0 0 0 0 4648721 4441894 170923660 158961290 15029494 26977197 39366 22317741 152733179 133009442 167802039 182304380 X 460497 -26219902 2661124 2876812 3121621 -23343090 170923660 158961290 -26464711 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 0 0 1 0 0 PART II-B, LINE 1B DESCRIPTION OF THE ACTIVITIES REPORTED ON LINES 1A THROUGH 1I: LINE 1F: THE FILING ORGANIZATION PAYS DUES TO THE ASSOCIATIONS LISTED BELOW WHO CONDUCT LOBBYING. THE AMOUNT OF DUES ALLOCATED TO LOBBYING EFFORTS IS NEGLIGIBLE. HOSPITAL & HEALTH SYSTEM ASSOCIATION OF PENNSYLVANIA AMERICAN HOSPITAL ASSOCIATION CATHOLIC HEALTH ASSOCIATION PART II-B, LINE 1I COMPENSATION, BENEFITS, AND TRAVEL EXPENSES INCURRED FOR EMPLOYEES IN CONDUCTING LOBBYING EFFORTS IS APPROXIMATELY LESS THAN $2,500 3788724 3788724 82682739 18352736 64330003 6762170 3265220 3496950 38785013 19876668 18908345 9369264 9369264 99893286 DUE TO AFFILIATES 116506462 CAPITAL LEASES 8075801 MEDICAL MALPRACTICE 4078779 RETIREMENT PLAN LIABILITY 2361654 WORKERS COMP ACCRUED PAYABLE 693590 ASBESTOS RETIREMENT 687303 SELF INSURANCE LIABILITIES 605853 133009442 1 1 0 0 1 1 1 0 1 1 1318723 1318723 0.00460 33755930 19675425 14080505 0.04890 35074653 19675425 15399228 0.05350 239645 239645 0.00080 229226 229226 0.00080 52935 52935 0.00020 521806 521806 0.00180 35596459 19675425 15921034 0.05530 1560 1560 0.00000 1560 1560 0.00000 1 18241185 50317869 60188584 -9870715 X 1 1 1 1 ST JOSEPH MEDICAL CENTER 2500 BERNVILLE ROAD READING PA 19605 PENNSTATEHEALTH.ORG/LOCATIONS/ST-JOSEP 710501 X X X X X ST JOSEPH MEDICAL CENTER 1 0 0 1 X X X X X X X X X 18 1 1 1 1 X WWW.PENNSTATEHEALTH.ORG/LOCATIONS/ST-JOSEPH X 1 18 1 WWW.PENNSTATEHEALTH.ORG/LOCATIONS/ST-JOSEPH 0 1 X X X X X 1 1 X X X 1 X SEE PART V NARRATIVE X SEE PART V NARRATIVE X SEE PART V NARRATIVE X X X X X 1 X 0 X X X X 1 X 0 0 SCHEDULE H, PART V, SECTION B, LINE 5 INPUT FOR COMMUNITY HEALTH NEEDS ASSESSMENT:FOR ITS 2018 COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA), PENN STATE HEALTH FORMED A COLLECTIVE WORKGROUP THAT INCLUDED PENN STATE HEALTH MILTON S. HERSHEY MEDICAL CENTER (PSHMC), PENN STATE HEALTH ST. JOSEPH MEDICAL CENTER (PSHSJ), PENNSYLVANIA PSYCHIATRIC INSTITUTE (PPI) AND KEY COMMUNITY STAKEHOLDERS TO IDENTIFY AND ADDRESS THE NEEDS OF RESIDENTS LIVING IN BERKS, CUMBERLAND, DAUPHIN, LANCASTER AND LEBANON COUNTIES. THIS WAS THE THIRD CHNA CONDUCTED BY ENTITIES OF PENN STATE HEALTH. PREVIOUS ASSESSMENTS IN 2012 AND 2015 INVOLVED A DIFFERENT CONSORTIUM OF HEALTH CARE INSTITUTIONS AND STUDY AREA. FOR THE 2018 CHNA, PENN STATE HEALTH OPTED TO CONDUCT A SYSTEM WIDE ASSESSMENT, FOCUSING ON THE COLLECTIVE AREAS SERVED BY ITS HOSPITALS AND AFFILIATED HEALTH PROVIDERS. THE COMPREHENSIVE CHNA WAS CONDUCTED FROM JANUARY TO AUGUST 2018, WITH BAKER TILLY AS OUR CONSULTING PARTNER. THE STUDY INCLUDED AN IN-DEPTH REVIEW OF PRIMARY AND SECONDARY DATA FOR THE FIVE COUNTIES COMPRISING PENN STATE HEALTH'S PRIMARY GEOGRAPHIC SERVICE AREA. MORE THAN 1,500 COMMUNITY MEMBERS PARTICIPATED IN THE CHNA PROCESS BY COMPLETING KEY INFORMANT AND COMMUNITY MEMBER SURVEYS, ATTENDING FORUMS AND PARTICIPATING IN FOCUS GROUPS. EXPERTS IN COMMUNITY HEALTH FROM EACH HEALTH CARE INSTITUTION, AS WELL AS KEY COMMUNITY STAKEHOLDERS, PARTICIPATED IN THE 2018 CHNA WORKGROUP TO GUIDE THE PROCESS AND REVIEW FINDINGS. THE STUDY CULMINATED WITH THE IDENTIFICATION AND PRIORITIZATION OF THE MOST PRESSING HEALTH ISSUES THAT IMPACT RESIDENTS WITHIN OUR FIVE-COUNTY SERVICE AREA. INFORMATION COLLECTED THROUGH THE CHNA IS USED TO INFORM OUR COMMUNITY BENEFIT INVESTMENTS, GUIDE OUR HEALTH IMPROVEMENT INITIATIVES AND ADVANCE OUR POPULATION HEALTH MANAGEMENT STRATEGIES. SCHEDULE H, PART V, SECTION B, LINE 6A / 6B OTHER HOSPITAL FACILITIES INCLUDED IN NEEDS ASSESSMENT: PENN STATE HEALTH MILTON S. HERSHEY MEDICAL CENTER (PSHMC) AND PENNSYLVANIA PSYCHIATRIC INSTITUTE (PPI) SCHEDULE H, PART V, SECTION B, LINE 11 PRIORITIZED COMMUNITY HEALTH NEEDSTHROUGH MULTIPLE METHODS OF COMMUNITY ENGAGEMENT, FACILITATED DIALOGUE WITH COMMUNITY HEALTH EXPERTS AND A SERIES OF CRITERIA-BASED VOTING EXERCISES. THE MOST SIGNIFICANT ISSUES TO FOCUS SYSTEM WIDE HEALTH IMPROVEMENT EFFORTS OVER THE THREE-YEAR CYCLE FROM 2019 TO 2022 ARE BEHAVIORAL HEALTH (MENTAL HEALTH, SUBSTANCE USE DISORDER), HEALTHY LIFESTYLES (NUTRITION, ORAL HEALTH, PHYSICAL ACTIVITY) AND DISEASE MANAGEMENT (CANCER, CARDIOVASCULAR DISEASE, DIABETES). ADDRESSING ACCESS TO CARE AND SOCIAL DETERMINANTS OF HEALTH WERE SEEN AS CROSS-CUTTING STRATEGIES NEEDED TO IMPROVE OUTCOMES ACROSS ALL PRIORITY AREAS.KEY INFORMANT AND COMMUNITY MEMBER SURVEYS WERE CONDUCTED.ADDRESSING BEHAVIORAL HEALTH:GOALS: -IMPROVE MENTAL HEALTH THROUGH PREVENTION AND BY ENSURING ACCESS TO APPROPRIATE, QUALITY MENTAL HEALTH SERVICES-REDUCE SUBSTANCE USE DISORDER TO PROTECT THE HEALTH, SAFETY AND QUALITY OF LIFE FOR ALLOBJECTIVES:-DECREASE THE NUMBER OF MENTALLY UNHEALTHY DAYS REPORTED IN THE LAST 30 DAYS-REDUCE THE NUMBER OF DRUG POISONING DEATHS PER 100,000 POPULATION-REDUCE THE PERCENTAGE OF ADULTS REPORTING BINGE OR HEAVY DRINKINGACCOMPLISHMENTS: -771 COMMUNITY MEMBERS RECEIVED MENTAL HEALTH TRAINING -10,000 PEOPLE REACHED BY BEHAVIORAL HEALTH COMMUNITY OUTREACH -3,000 DISPOSETX PACKETS WERE DISTRIBUTED-1,002 LOCK BOXES WERE DISTRIBUTED ACROSS 13 SITES-759 POUNDS OF DISCARDED MEDICATIONS COLLECTED IN DRUG TAKE BACK BOXESADDRESSING HEALTHY LIFESTYLES:GOALS:-ADDRESS ISSUES RELATED TO OBESITY AND FOOD INSECURITY BY PROMOTING ACCESS TO AND CONSUMPTION OF HEALTHFUL DIETS, AND IMPLEMENTING STANDARDIZED NUTRITION EDUCATION PROGRAMS-INCREASE ACCESS TO ORAL HEALTH PREVENTIVE SERVICES AND DENTAL CARE TO IMPROVE OVERALL HEALTH-IMPROVE HEALTH, FITNESS AND QUALITY OF LIFE THROUGH DAILY PHYSICAL ACTIVITYOBJECTIVES:-REDUCE OBESITY RATES IN BERKS, DAUPHIN AND LEBANON COUNTIES-REDUCE PERCENTAGE OF RESIDENTS THAT HAVE LOW ACCESS TO FOOD IN BERKS, DAUPHIN AND LEBANON COUNTIES-INCREASE THE PROPORTION OF CHILDREN, ADOLESCENTS AND ADULTS WHO USED THE ORAL HEALTH CARE SYSTEM IN THE PAST YEAR-REDUCE THE PERCENTAGE OF ADULTS WHO DO NOT ENGAGE IN LEISURE-TIME PHYSICAL ACTIVITYACCOMPLISHMENTS:-NUTRITION AND FOOD OUTREACH TO OVER 47,000 INDIVIDUALS WITH HEALTHY FOOD CHOICES AND CONSISTENT MYPLATE MESSAGING (CHOOSEMYPLATE.GOV)-3,000 PLUS POUNDS OF FOOD AND 566 FLOWER VASES WERE DISTRIBUTED FROM THE COMMUNITY GARDEN-VEGGIE RX PROGRAM: 111 PATIENTS INITIALLY ENROLLED IMPACTING OVER 215 FAMILY MEMBERS; 22,000+ VOUCHERS WERE REDEEMED; $45,000 SPENT ON LOCAL FRUITS AND VEGGIES-ORAL HEALTH MESSAGING FOCUSED ON BRUSHING TWICE PER DAY AND THE IMPORTANCE OF FLUORIDE REACH 700+ MEMBERS OF UNDERSERVED COMMUNITIES-WORKED ON UPDATING THE COMMUNITY HEALTH WORKER TRAINING CURRICULUM TO INCLUDE EARLY CHILDHOOD ORAL HEALTH EDUCATION WITH AN ONLINE COMPONENT THAT IS PUBLICLY AVAILABLE SO ANYONE CAN USEADDRESSING DISEASE MANAGEMENT:GOALS:-IMPROVE CHRONIC DISEASE MANAGEMENT AND TREATMENT OUTCOMES BY PROVIDING SCREENINGS, EDUCATIONAL SESSIONS AND CARE NAVIGATION TO IDENTIFIED HIGH-NEED COMMUNITIESOBJECTIVES:-INCREASE THE PERCENTAGE OF FEMALE MEDICARE BENEFICIARIES RECEIVING MAMMOGRAMS-INCREASE THE PERCENTAGE OF ADULTS AGE 50 AND OLDER WHO HAVE HAD COLON CANCER SCREENINGS-REDUCE HOSPITAL READMISSION OF CHRONIC DISEASE POPULATIONSACCOMPLISHMENTS:-EXPANDED EFFORTS WITH COMMUNITY PARAMEDICINE WHICH REDUCED CHRONIC DISEASE READMISSIONS FOR HEART FAILURE AND STROKE PATIENTS-13,000 COMMUNITY MEMBERS WERE REACHED BY COORDINATED DISEASE PREVENTION SCREENING, EDUCATION, NAVIGATION AND SUPPORT PROGRAMS FOCUSED ON CANCER, CARDIOVASCULAR DISEASES AND STROKE*** ALL PRIORITIZED HEALTH NEEDS IDENTIFIED IN THE CHNA WILL BE ADDRESSED. SCHEDULE H, PART V, SECTION B, LINE 13B INCOME LEVEL OTHER THAN FPG FOR ELIGIBILITYST. JOSEPH REGIONAL HEALTH NETWORK BASES ITS FINANCIAL ASSISTANCE ELIGIBILITY ON HUD'S 130% OF VERY LOW INCOME GUIDELINES BASED ON GEOGRAPHY, AND AFFORDS THE UNINSURED AND UNDERINSURED THE ABILITY TO OBTAIN FINANCIAL ASSISTANCE WRITE-OFFS, BASED ON A SLIDING SCALE, RANGING FROM 55%-100% OF CHARGES. AN INDIVIDUAL'S INCOME UNDER THE HUD GUIDELINES IS A SIGNIFICANT FACTOR IN DETERMINING WHETHER TO EXTEND DISCOUNTED OR FREE CARE TO A PATIENT, THE PATIENT'S ASSETS MAY ALSO BE TAKEN INTO CONSIDERATION. FOR EXAMPLE, A PATIENT SUFFERING A CATASTROPHIC ILLNESS MAY HAVE A REASONABLE LEVEL OF INCOME, BUT A LOW LEVEL OF LIQUID ASSETS SUCH THAT THE PAYMENT OF MEDICAL BILLS WOULD BE SERIOUSLY DETRIMENTAL TO THE PATIENT'S BASIC FINANCIAL (AND ULTIMATELY PHYSICAL) WELL-BEING AND SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. SCHEDULE H, PART V, SECTION B, LINE 16 THE FINANCIAL ASSISTANCE POLICY, APPLICATION AND PLAIN LANGUAGE SUMMARY ARE AVAILABLE AT THE FOLLOWING WEBSITE: HTTPS://WWW.PENNSTATEHEALTH.ORG/PATIENTS-VISITORS/BILLING-MEDICAL-RECORDS/FINANCIAL-ASSISTANCE 14 1 - READING DOWNTOWN CAMPUS 145 NORTH 6TH STREET 640 WALNUT STREET READING PA 19601 CLINIC/X-RAY/CT-LAB WOUND CARE/HBO/DIABETES EDUC/PT 2 - ST JOSEPH HEALTH NETWORK-STRAUSSTOWN 44 EAST AVENUE STRAUSSTOWN PA 19559 DIAG/URGENT CARE/LAB DRAW 3 - ST JOSEPH HEALTH NETWORKMAIDENCREEK 108 PLAZA DRIVE SUITE 101 BLANDON PA 19510 THERAPY, X-RAY, URGENT CARE, LAB DRAW 4 - STJOSEPH HEALTH NETWORK SPRING-RIDGE 2605 KEISER BOULEVARD SUITE 200 WYOMISSING PA 19610 CARDIAC REHAB/LAB 5 - ST JOSEPH HEALTH NETWORK-LEESPORT SCHOOLSIDE PLAZA-RT 61 AND WALL ST LEESPORT PA 19533 LAB DRAW AND X-RAY 6 - ST JOE QUALITY MED LAB-SINKING SPRG 4400 PENN AVENUE SINKING SPRING PA 19608 LAB DRAW (CLOSED 4/30/2020) 8 - ST JOE QUALITY MED LAB-HEALTHSOUTH 1623 MORGANTOWN ROAD READING PA 19607 DRAW STATION 9 - ST JOE QUALITY MED LAB-BOYERTOWN FIFTH AND MONTGOMERY AVENUES BOYERTOWN PA 19512 DRAW STATION 10 - THE HERITAGE OF GREEN HILLS 10 TRANQUILITY LANE READING PA 19607 LAB DRAW 11 - PSH ST JOSEPH EXETER RDGE HLTH CMPLX 3970 PERKIOMEN AVENUE EXETER PA 19606 PHYSICAL THERAPY, RADIOLOGY SERVICES, MEDICAL FITNESS, DIABETES EDUC. 12 - PSH ST JOSEPH MUHLENBERG 3407 N 5TH ST HIGHWAY MUHLENBERG PA 19605 LAB DRAW, URGENT CARE, RADIOLOGY, DIABETES EDUC(CLOSED 06/30/2020) 13 - PSH ST JOSEPH ROBESONIA 410 E PENN AVENUE ROBESONIA PA 19551 LAB DRAW, X-RAY, EKG 14 - PSH ST JOSEPH SPRING RDGE HLTH CORRID 2607 KEISER BOULEVARD WYOMISSING PA 19610 PHYSICAL THERAPY, WOUND CARE, DIAG. SERVICES, DIABETES EDUC. 15 - PSH ST JOSEPH MUHLENBERG 4301 N 5TH ST HIGHWAY READING PA 19605 LAB DRAW, URGENT CARE, RADIOLOGY, DIABETES EDUC(OPENED 03/01/2020) PART I, LINE 3C: ELIGIBILITY CRITERIA FOR FREE OR DISCOUNTED CARE:ST. JOSEPH REGIONAL HEALTH NETWORK BASES ITS FINANCIAL ASSISTANCE ELIGIBILITY ON HUD'S 130% OF VERY LOW INCOME GUIDELINES BASED ON GEOGRAPHY, AND AFFORDS THE UNINSURED AND UNDERINSURED THE ABILITY TO OBTAIN FINANCIAL ASSISTANCE WRITE-OFFS, BASED ON A SLIDING SCALE, RANGING FROM 55%-100% OF CHARGES. AN INDIVIDUAL'S INCOME UNDER THE HUD GUIDELINES IS A SIGNIFICANT FACTOR IN DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE. HOWEVER, IN DETERMINING WHETHER TO EXTEND DISCOUNTED OR FREE CARE TO A PATIENT, THE PATIENT'S ASSETS MAY ALSO BE TAKEN INTO CONSIDERATION. FOR EXAMPLE, A PATIENT SUFFERING A CATASTROPHIC ILLNESS MAY HAVE A REASONABLE LEVEL OF INCOME, BUT A LOW LEVEL OF LIQUID ASSETS SUCH THAT THE PAYMENT OF MEDICAL BILLS WOULD BE SERIOUSLY DETRIMENTAL TO THE PATIENT'S BASIC FINANCIAL (AND ULTIMATELY PHYSICAL) WELL-BEING AND SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. PART I, LINE 6A: COMMUNITY BENEFIT REPORT: ST. JOSEPH REGIONAL HEALTH NETWORK PREPARES A COMMUNITY BENEFIT REPORT AND MAKES IT AVAILABLE TO THE PUBLIC. PART I, LINE 7: COSTING METHODOLOGY USED TO CALCULATE FINANCIAL ASSISTANCE: A COST ACCOUNTING SYSTEM WAS NOT USED TO COMPUTE AMOUNTS IN THE TABLE; RATHER COSTS IN THE TABLE WERE COMPUTED USING THE ORGANIZATION'S COST-TO-CHARGE RATIO. THE COST-TO-CHARGE RATIO COVERS ALL PATIENT SEGMENTS. BASED ON THAT FORMULA, [$221,800,481/$956,020,243] RESULTS IN A 23.2% COST-TO-CHARGE RATIO. PART I, LINE 7G: SUBSIDIZED HEALTH SERVICES: THERE ARE NO PHYSICIAN CLINICS INCLUDED IN SUBSIDIZED HEALTH SERVICES. PART I, LN 7 COL(F): BAD DEBT EXPENSE EXCLUDED FROM FINANCIAL ASSISTANCE CALCULATION: $18,241,185 PART VI SUPPLEMENTAL INFORMATION THROUGHOUT THESE NARRATIVES, ST. JOSEPH REGIONAL HEALTH NETWORK IS ALSO KNOWN AS: PENN STATE HEALTH ST. JOSEPH MEDICAL CENTER AND ST. JOSEPH MEDICAL CENTER. PART II, COMMUNITY BUILDING ACTIVITIES: COMMUNITY BUILDING ACTIVITIES: ST. JOSEPH'S COMMUNITY FOCUSED PROGRAMS AND ACTIVITIES ARE GUIDED BY A COMPREHENSIVE COMMUNITY HEALTH NEEDS (CHNA) PROCESS CONDUCTED EVERY 3 YEARS FOLLOWED BY DETAILED IMPLEMENTATION PLANS TO ADDRESS THE NEEDS IDENTIFIED. THE CHNA PROCESS ENGAGES KEY STAKEHOLDER ORGANIZATIONS AND PROFESSIONALS AS WELL AS GRASSROOTS GROUPS AND INDIVIDUAL COMMUNITY MEMBERS FROM THROUGHOUT OUR SERVICE AREA. INFORMATION FROM THE 2013, 2016, AND 2018 CHNA'S ARE AVAILABLE AT HTTPS://WWW.PENNSTATEHEALTH.ORG/COMMUNITY/COMMUNITY-HEALTH-NEEDS-ASSESSMENT-STRATEGY. A RECENT PROGRESS REPORT ON THE 2018 CHNA IS AVAILABLE AT HTTPS://WWW.PENNSTATEHEALTH.ORG/SITES/DEFAULT/FILES/COMMUNITY/PDFS/CHNA2020REPORTCARD_V4BLEED.PDF. THE 2021 CHNA PROCESS IS CURRENTLY UNDERWAY. PART III, LINE 2: BAD DEBT EXPENSE - METHODOLOGY USED TO ESTIMATE AMOUNT: COSTING METHODOLOGY FOR AMOUNTS REPORTED ON LINE 2 IS DETERMINED USING THE ORGANIZATION'S COST/CHARGE RATIO OF 23.2%. WHEN DISCOUNTS ARE EXTENDED TO SELF-PAY PATIENTS, THESE PATIENT ACCOUNT DISCOUNTS ARE RECORDED AS A REDUCTION IN REVENUE, NOT AS BAD DEBT EXPENSE. PART III, LINE 3: BAD DEBT EXPENSE METHODOLOGY: ST. JOSEPH REGIONAL HEALTH NETWORK DOES NOT BELIEVE THAT ANY PORTION OF BAD DEBT EXPENSE COULD REASONABLY BE ATTRIBUTED TO PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE SINCE AMOUNTS DUE FROM THOSE INDIVIDUALS' ACCOUNTS WILL BE RECLASSIFIED FROM BAD DEBT EXPENSE TO CHARITY CARE WITHIN 30 DAYS FOLLOWING THE DATE THAT THE PATIENT IS DETERMINED TO QUALIFY FOR CHARITY CARE. PART III, LINE 4: BAD DEBT EXPENSE - FINANCIAL STATEMENT FOOTNOTE: ST. JOSEPH REGIONAL HEALTH NETWORK ADOPTED FASB ASU 2014-09 REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606); AS A RESULT, THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS NO LONGER ADDRESS BAD DEBT EXPENSE. PART III, LINE 8: COMMUNITY BENEFIT & METHODOLOGY FOR DETERMINING MEDICARE COSTS: USING ESSENTIALLY THE SAME MEDICARE COST REPORT PRINCIPLES AS TO THE ALLOCATION OF GENERAL SERVICES COSTS AND APPORTIONMENT METHODS, SJRHN CALCULATES A PAYER'S GROSS ALLOWABLE COSTS BY SERVICE (SO AS TO FACILITATE A CORRESPONDING COMPARISON BETWEEN GROSS ALLOWABLE COSTS AND ULTIMATE PAYMENTS RECEIVED). THE TERM GROSS ALLOWABLE COSTS MEANS COSTS BEFORE ANY DEDUCTIBLES OR CO-INSURANCE ARE SUBTRACTED. ST. JOSEPH REGIONAL HEALTH NETWORK'S ULTIMATE REIMBURSEMENT WILL BE REDUCED BY ANY APPLICABLE COPAYMENT/DEDUCTIBLE. WHERE MEDICARE IS THE SECONDARY INSURER, AMOUNTS DUE FROM THE INSURED'S PRIMARY PAYER WERE NOT SUBTRACTED FROM MEDICARE ALLOWABLE COSTS BECAUSE THE AMOUNTS ARE TYPICALLY IMMATERIAL.ALTHOUGH NOT PRESENTED ON THE MEDICARE COST REPORT, IN ORDER TO FACILITATE A MORE ACCURATE UNDERSTANDING OF THE TRUE COST OF SERVICES (FOR SHORTFALL PURPOSES) SJRHN ALLOWS A HEALTH CARE FACILITY NOT TO OFFSET COSTS THAT MEDICARE CONSIDERS TO BE NON-ALLOWABLE, BUT FOR WHICH THE FACILITY CAN LEGITIMATELY ARGUE ARE RELATED TO THE CARE OF THE FACILITY'S PATIENTS. IN ADDITION, ALTHOUGH NOT REPORTABLE ON THE MEDICARE COST REPORT, SJRHN INCLUDES THE COST OF SERVICES THAT ARE PAID VIA A SET FEE-SCHEDULE RATHER THAN BEING REIMBURSED BASED ON COSTS (E.G. OUTPATIENT CLINICAL LABORATORY). FINALLY, SJRHN ALLOWS A FACILITY TO INCLUDE OTHER HEALTH CARE SERVICES PERFORMED BY A SEPARATE FACILITY (SUCH AS A PHYSICIAN PRACTICE) THAT ARE MAINTAINED ON SEPARATE BOOKS AND RECORDS (AS OPPOSED TO THE MAIN FACILITY'S BOOKS AND RECORDS WHICH HAS ITS COSTS OF SERVICE INCLUDED WITHIN A COST REPORT). TRUE COSTS OF MEDICARE COMPUTED USING THIS METHODOLOGY:TOTAL MEDICARE REVENUE: $50,317,869TOTAL MEDICARE COSTS: $60,188,584SURPLUS OR (SHORTFALL): ($9,870,715) ST. JOSEPH REGIONAL HEALTH NETWORK BELIEVES THAT EXCLUDING MEDICARE LOSSES FROM COMMUNITY BENEFIT MAKES THE OVERALL COMMUNITY BENEFIT REPORT MORE CREDIBLE FOR THESE REASONS: UNLIKE SUBSIDIZED AREAS SUCH AS BURN UNITS OR BEHAVIORAL-HEALTH SERVICES, MEDICARE IS NOT A DIFFERENTIATING FEATURE OF TAX-EXEMPT HEALTH CARE ORGANIZATIONS. IN FACT, FOR-PROFIT HOSPITALS FOCUS ON ATTRACTING PATIENTS WITH MEDICARE COVERAGE, ESPECIALLY IN THE CASE OF WELL-PAID SERVICES THAT INCLUDE CARDIAC AND ORTHOPEDICS. SIGNIFICANT EFFORT AND RESOURCES ARE DEVOTED TO ENSURING THAT HOSPITALS ARE REIMBURSED APPROPRIATELY BY THE MEDICARE PROGRAM. THE MEDICARE PAYMENT ADVISORY COMMISSION (MEDPAC), AN INDEPENDENT CONGRESSIONAL AGENCY, CAREFULLY STUDIES MEDICARE PAYMENT AND THE ACCESS TO CARE THAT MEDICARE BENEFICIARIES RECEIVE. THE COMMISSION RECOMMENDS PAYMENT ADJUSTMENTS TO CONGRESS ACCORDINGLY.THOUGH MEDICARE LOSSES ARE NOT INCLUDED BY CATHOLIC HOSPITALS AS COMMUNITY BENEFIT, THE CATHOLIC HEALTH ASSOCIATION GUIDELINES ALLOW HOSPITALS TO COUNT AS COMMUNITY BENEFIT SOME PROGRAMS THAT SPECIFICALLY SERVE THE MEDICARE POPULATION. FOR INSTANCE, IF HOSPITALS OPERATE PROGRAMS FOR PATIENTS WITH MEDICARE BENEFITS THAT RESPOND TO IDENTIFIED COMMUNITY NEEDS, GENERATE LOSSES FOR THE HOSPITAL, AND MEET OTHER CRITERIA, THESE PROGRAMS CAN BE INCLUDED IN THE CHA FRAMEWORK IN CATEGORY C AS SUBSIDIZED HEALTH SERVICES.MEDICARE LOSSES ARE DIFFERENT FROM MEDICAID LOSSES, WHICH ARE COUNTED IN THE CHA COMMUNITY BENEFIT FRAMEWORK, BECAUSE MEDICAID REIMBURSEMENTS GENERALLY DO NOT RECEIVE THE LEVEL OF ATTENTION PAID TO MEDICARE REIMBURSEMENT. MEDICAID PAYMENT IS LARGELY DRIVEN BY WHAT STATES CAN AFFORD TO PAY, AND IS TYPICALLY SUBSTANTIALLY LESS THAN WHAT MEDICARE PAYS. PART III, LINE 9B: COLLECTION PRACTICES FOR PATIENTS ELIGIBLE FOR FINANCIAL ASSISTANCE: ST. JOSEPH REGIONAL HEALTH NETWORK'S DEBT COLLECTION POLICY PROVIDES THAT SJRHN WILL PERFORM A REASONABLE REVIEW OF EACH INPATIENT ACCOUNT PRIOR TO TURNING AN ACCOUNT FOR TO A THIRD-PARTY COLLECTION AGENT AND PRIOR TO INSTITUTING ANY LEGAL ACTION FOR NON-PAYMENT, TO ASSURE THAT THE PATIENT AND PATIENT GUARANTOR ARE NOT ELIGIBLE FOR ANY ASSISTANCE PROGRAM (E.G. MEDICAID) AND DO NOT QUALIFY FOR COVERAGE THROUGH ST. JOSEPH MEDICAL CENTER'S COMMUNITY ASSISTANCE POLICY. AFTER HAVING BEEN TURNED OVER TO A THIRD-PARTY COLLECTION AGENT, ANY PATIENT ACCOUNT THAT IS SUBSEQUENTLY DETERMINED TO MEET SJRHN COMMUNITY ASSISTANCE POLICY IS REQUIRED TO BE RETURNED IMMEDIATELY BY THE THIRD-PARTY COLLECTION AGENT TO SJRHN FOR APPROPRIATE FOLLOW-UP. SJRHN REQUIRES ITS THIRD-PARTY COLLECTION AGENTS TO INCLUDE A MESSAGE ON ALL STATEMENTS INDICATING THAT IF A PATIENT OR PATIENT GUARANTOR MEETS CERTAIN STIPULATED INCOME REQUIREMENTS, THE PATIENT OR PATIENT GUARANTOR MAY BE ELIGIBLE FOR FINANCIAL ASSISTANCE.SJRHN'S CONTRACTS WITH THIRD PARTY COLLECTION AGENCIES INCLUDE THEFOLLOWING STANDARDS: - NEITHER SJRHN NOR THEIR COLLECTION AGENCIES WILL REQUEST BENCH OR ARREST WARRANTS AS A RESULT OF NON-PAYMENT; - NEITHER SJRHN NOR THEIR COLLECTION AGENCIES WILL SEEK LIENS THAT WOULD REQUIRE THE SALE OR FORECLOSURE OF A PRIMARY RESIDENCE; - NO COLLECTION AGENCY MAY SEEK COURT ACTION WITHOUT HOSPITAL APPROVAL.FINALLY, COLLECTION AGENCIES ARE TRAINED ON SJRHN'S MISSION, CORE VALUES AND STANDARD OF CONDUCT TO MAKE SURE ALL PATIENTS ARE TREATED WITH DIGNITY AND RESPECT. PART VI, LINE 2: COMMUNITY HEALTH NEEDS ASSESSMENT:AS PART OF THE IMPLEMENTATION PLAN, PENN STATE HEALTH AND AFFILIATES WILL ADDRESS THE PRIORITIZED HEALTH NEEDS OF THE COMMUNITY OVER A THREE YEAR PERIOD. THE PLAN HAS LAID THE INFORMATION OUT AS FOLLOWS:-DESCRIPTION OF THE HEALTH CONCERNS IDENTIFIED THROUGH THE CHNA PROCESS-INITIATIVES THE HOSPITALS INTEND TO IMPLEMENT-ANTICIPATED HEALTH IMPACT OF THESE STRATEGIES BASED ON ACHIEVING SET GOALS, OBJECTIVES AND INDICATORS-PROJECTED RESOURCES-POTENTIAL COMMUNITY PARTNERS RELATED TO THE PLANSTRATEGIES INCLUDED ARE EVIDENCE-BASED, OR THOSE THAT WILL BE EVALUATED, TO ENSURE THE MOST EFFECTIVE USE OF COMMUNITY AND HOSPITAL RESOURCES. ALL OUTCOMES AND ANY NECESSARY ADJUSTMENTS TO THE PLAN WILL BE SHARED IN ANNUAL REPORTS THAT WILL BE MADE PUBLIC ON THE WEBSITE. PART VI, LINE 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCEWE BELIEVE THAT RECEIVING HEALTHCARE IS A BASIC HUMAN RIGHT. ST. JOSEPH PARTICIPATES IN THE WIDEST NUMBER OF INSURANCE PROGRAMS OF THE HOSPITALS IN THE REGION. WE REALIZE THAT MANY PEOPLE EITHER CANNOT AFFORD HEALTH INSURANCE OR DO NOT HAVE ENOUGH INSURANCE TO COVER THEIR BILLS. THOSE ARE THE REASONS FOR OUR PAYMENT OPTIONS AND FINANCIAL ASSISTANCE PROGRAM, WHICH IS PUBLICLY POSTED ON THE HOSPITAL WEBSITE: HTTPS://WWW.PENNSTATEHEALTH.ORG/PATIENTS-VISITORS/BILLING-MEDICAL-RECORDS/FINANCIAL-ASSISTANCE. A PRICE ESTIMATOR ALSO WAS ADDED IN ORDER TO FURTHER CREATE PRICE AND COST TRANSPARENCY.WE UNDERSTAND THAT THE NEED FOR HEALTH CARE AND HOSPITAL SERVICES IS OFTEN UNPLANNED, AND SOME PATIENTS MAY NOT HAVE SUFFICIENT INSURANCE, OR MAY BE UNABLE TO PAY THEIR ENTIRE BILL RIGHT AWAY. WE ASSURE PATIENTS THAT ADMISSION TO PENN STATE HEALTH ST. JOSEPH IS A MEDICAL, NOT A FINANCIAL, DECISION. AND, FOR THOSE WHO NEED TO TAKE ADVANTAGE OF OUR FINANCIAL ASSISTANCE PROGRAMS, WE PROVIDE THE NECESSARY ASSISTANCE IN COMPLETING APPLICATIONS THAT HELP TO DETERMINE ELIGIBILITY FOR FEDERAL, STATE OR COUNTY GOVERNMENT HEALTH CARE ASSISTANCE. WE ALSO OFFER PENN STATE HEALTH ST. JOSEPH'S OWN ASSISTANCE PLAN THAT CAN PAY ALL OR A SIGNIFICANT PORTION OF HOSPITAL BILLS. PART VI, LINE 4: COMMUNITY INFORMATIONPENN STATE HEALTH ST. JOSEPH WAS FOUNDED ORIGINALLY AS ST. JOSEPH HOSPITAL BY THE SISTERS OF ST. FRANCIS IN 1873 TO PROVIDE HEALTHCARE SERVICES TO THE PEOPLE OF THE CITY OF READING. AS THE ONLY CATHOLIC-SPONSORED HOSPITAL TO SERVE THE COMMUNITY, ST. JOSEPH EMBRACED THE MISSION OF THE FOUNDING RELIGIOUS CONGREGATION. FOR NEARLY 150 YEARS, ST. JOSEPH HAS SERVED THE ENTIRE READING AND BERKS COMMUNITY WITH A FOCUS ON PROVIDING CARE TO ALL WHO NEED IT WITHOUT REGARD TO ABILITY TO PAY, A PHILOSOPHY THAT HAS DRIVEN THE MISSION OF ST. JOSEPH. IT'S A MISSION THAT IS AS IMPORTANT TODAY AS IT WAS TO THE SISTERS OF ST. FRANCIS GIVEN THAT THE CITY OF READING HAS BEEN AMONG THE POOREST CITIES IN AMERICA. THIS DISTINCTION HAS PROVEN THE NEED FOR ACCESS TO HEALTHCARE SERVICES THAT ARE PROVIDED WITH COMPASSION AND WITHOUT DISCRIMINATION. PENN STATE HEALTH ST. JOSEPH IS A NON-PROFIT NETWORK CONSISTING OF ST. MEDICAL CENTER, ST. JOSEPH DOWNTOWN READING CAMPUS, ST. JOSEPH MEDICAL GROUP AND ST. JOSEPH PHYSICIAN HOSPITAL ORGANIZATION. FOUNDED IN 1873 BY THE SISTERS OF ST. FRANCIS, THE NETWORK PROVIDES A FULL-RANGE OF OUTPATIENT AND INPATIENT DIAGNOSTIC, MEDICAL AND SURGICAL SERVICES. THE 380,000 SQ. FT., 212-BED STATE-OF-THE-ART HOSPITAL AND HEALTH CAMPUS OPENED IN LATE 2006 ON 40 ACRES IN BERN TOWNSHIP.ROUTINELY RANKED AMONG THE TOP 50 HEART HOSPITALS IN QUALITY METRICS, ST. JOSEPH ALSO IS NATIONALLY CERTIFIED AS A CENTER OF EXCELLENCE IN CHEST PAIN, STROKE AND HEART FAILURE. NURSING CARE AT ST. JOSEPH ALSO HAS EARNED THE DISTINCTION AS A PATHWAYS TO EXCELLENCE ACCREDITED FACILITY.ST. JOSEPH HAS NEARLY 20 SATELLITE SITES ACROSS BERKS COUNTY, PROVIDING CARE TO WHERE THE COMMUNITY LIVES AND WORKS. ST. JOSEPH'S DOWNTOWN READING CAMPUS AT 6TH AND WALNUT STREETS ANCHORS THE AMBULATORY NETWORK AND IS THE LARGEST PRIMARY CARE PROVIDER IN THE CITY OF READING, OPERATING OUT OF A THRIVING 266,000 SQUARE FOOT FACILITY THAT PROVIDES FAMILY PRACTICE, WOMEN'S AND CHILDREN'S SERVICES AND DIAGNOSTIC SERVICES. THE DOWNTOWN FACILITY HAS BEEN LAUDED AS A MODEL FOR INNER CITY PRIMARY CARE AS WELL AS OFFERS INNOVATIVE PATIENT CENTER APPROACHES TO MATERNITY AND DIABETES MANAGEMENT. IT ALSO IS PIONEERING THE IMPLEMENTATION OF PATIENT CENTERED MEDICAL HOME PRACTICES.ST. JOSEPH MEDICAL GROUP IS A NETWORK OF 100 PLUS PHYSICIANS AND MID-LEVEL PROVIDERS. THE GROUP INCLUDES: SPECIALISTS IN INTERNAL MEDICINE, FAMILY MEDICINE, HOSPITALISTS, ORTHOPEDICS AND SPORTS MEDICINE, GYNECOLOGY AND OBSTETRICS, NEUROLOGY, NEUROSURGERY, GENERAL SURGERY, WOMEN'S SERVICES AND VASCULAR SURGERY AND IS COMMITTED TO PROVIDING THE BERKS COMMUNITY WITH THE BEST MEDICAL CARE AVAILABLE FROM BOARD CERTIFIED AND FELLOWSHIP-TRAINED PHYSICIANS. ST. JOSEPH'S 380 MEMBER MEDICAL STAFF CONSISTS OF BOARD CERTIFIED AND FELLOWSHIP TRAINED PHYSICIANS. ST. JOSEPH ALSO OFFERS A FAMILY PRACTICE MEDICAL RESIDENCY PROGRAM, AND PROVIDES CLINICAL TRAINING FOR SEVERAL NURSING AND ALLIED HEALTH PROFESSIONALS. THE NETWORK HAS NEARLY 1600 EMPLOYEES, $220 MILLION IN ANNUAL REVENUES AND NEARLY 42,651 ANNUAL EMERGENCY ROOM VISITS.ST. JOSEPH REDUCES THE BURDENS OF THE GOVERNMENT TO MEET THE COMMUNITY'S GROWING AND DIVERSE HEALTH NEEDS BY REACHING OUT THROUGH ITS TWO CAMPUSES AND MULTIPLE OUTPATIENT FACILITIES. WE HAVE A RESPONSIBILITY TO CARE FOR PEOPLE WHO COME TO US FOR SERVICES AND ALSO TO SEEK OUT THE UNMET NEEDS OF PEOPLE WHO LACK BASIC ESSENTIALS EVERY DAY. WE ALSO PARTNER WITH LOCAL ORGANIZATIONS TO HELP IMPROVE HEALTH AND QUALITY OF LIFE FOR THE POOR, MARGINALIZED AND VULNERABLE. WE PROVIDE QUALITY AND COMPASSIONATE CARE TO ALL AS WE REACH DEEPLY INTO THE COMMUNITY TO PARTICIPATE IN NUMEROUS ACTIVITIES WITH OTHER NON-PROFIT, EDUCATIONAL AND SOCIAL SERVICES AGENCIES.OUR COMMUNITY BENEFIT ACTIVITIES ARE DESIGNED TO:- IDENTIFY AND INCREASE AWARENESS OF HEALTH NEEDS IN READING AND BERKS COUNTY.- PROVIDE MEDICAL, SPIRITUAL AND FINANCIAL RESOURCES TO MEET THOSE NEEDS.- CREATE COLLABORATION AMONG COMMUNITY ORGANIZATIONS THAT FOCUS ON HEALTH AND WELL-BEING.ST. JOSEPH IS GOVERNED BY A VOLUNTEER BOARD OF DIRECTORS MADE UP OF A BROAD CROSS-SECTION OF LOCAL COMMUNITY AND BUSINESS LEADERS. THE HOSPITAL PARTICIPATES IN THE WIDEST RANGE OF PRIVATE AND GOVERNMENT INSURANCES OF ANY HOSPITAL IN THE REGION AND, ACCORDING TO THE PENNSYLVANIA HEALTH CARE COST CONTAINMENT COUNCIL, CONTINUES TO PROVIDE CARE FOR A HIGH PERCENTAGE OF MEDICAID AND NON-PAYING PATIENTS COMPARED TO NET PATIENT REVENUE IN A REGION THAT COVERS HOSPITALS IN BERKS, LEHIGH, NORTHAMPTON, SCHUYLKILL, NORTHUMBERLAND, AND CARBON COUNTIES (SEE WWW.PHC4.ORG).LOCATED IN READING, PA, PENN STATE HEALTH ST. JOSEPH SERVES PRIMARILY BERKS COUNTY, PA AND SURROUNDING AREAS. THE CITY OF READING HAS A POPULATION OF 88,232 AND WHEN COMBINED WITH THE REMAINING POPULATION OF BERKS COUNTY, THE HEALTH NETWORK SERVES APPROXIMATELY 421,164 RESIDENTS. THE MEDIAN AGE OF THE CITY OF READING IS ABOUT 30 YEARS OLD, NINE YEARS YOUNGER THAN THAT OF THE COUNTY AND A REFLECTION OF THE GROWING LATINO POPULATION. THE MEDIAN SIGNALS THE TYPE OF CARE MOST NEEDED IN THE CITY AND IS REFLECTED IN THE ST. JOSEPH'S EFFORTS TO PROVIDE PATIENTS WITH ACCESS TO PRIMARY CARE PHYSICIANS AT ITS DOWNTOWN READING CAMPUS.MOST NOTABLY, READING - THE FIFTH LARGEST CITY IN THE STATE OF PENNSYLVANIA IS ETHNICALLY DIVERSE, WITH THE HISPANIC POPULATION ACCOUNTING FOR OVER 60 PERCENT OF THOSE WHO LIVE IN THE CITY. THE MEDIAN HOUSEHOLD INCOME IS LESS THAN HALF OF THAT OF THE TOTAL COUNTY. THE CITY ITSELF IS FINANCIALLY CHALLENGED, AND REMAINS AMONG THE POOREST CITIES IN AMERICA. PART VI, LINE 5: PROMOTION OF COMMUNITY HEALTHPENN STATE HEALTH ST. JOSEPH IS THE OLDEST AND LARGEST HEALTHCARE PROVIDER IN THE CITY OF READING, WITH A MISSION DATING BACK NEARLY 150 YEARS. OUR ORIGINAL HISTORIC HOSPITAL PROPERTY WAS DONATED TO THE READING SCHOOL DISTRICT WHEN WE BUILT A NEW INPATIENT FACILITY ON THE PERIPHERY OF THE CITY JUST OVER 15 YEARS AGO. THE PSHSJ DOWNTOWN CAMPUS COMMUNITY HEALTH HUB IS LOCATED IN A CHRONIC MEDICALLY UNDERSERVED AREA/POPULATION (MUA/P #02914) AND PROVIDES A FULL CONTINUUM OF OUTPATIENT CARE AND PUBLIC HEALTH/PUBLIC BENEFIT PROGRAMMING IN THE HEART OF THE INNER CITY. OUR SOCIAL DETERMINANTS OF HEALTH WORK INCLUDES HEALTHY FOOD ACCESS AND SECURITY (I.E. WEEKLY FARM STAND), CHRONIC DISEASE PREVENTION AND INTERVENTION (I.E. VEGGIE RX PRODUCE PRESCRIPTION PROGRAM), A FREE COMMUNITY HEALTH WORKER TRAINING INSTITUTE, AND A CDC REACH (RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH) PROJECT, FOCUSED ON NUTRITION, PHYSICAL ACTIVITY, AND HEALTHY LIFESTYLES IN OUR URBAN UNDERSERVED LATINO COMMUNITIES. READING IS A RESILIENT MAJORITY LATINO CITY ONCE COUNTED AMONG THE POOREST IN THE COUNTRY. AMONG THE MANY OTHER CRITICAL PROGRAMS AND SERVICES OFFERED BY ST. JOE'S TO THE COMMUNITY RECENTLY ARE: -FREE FLU SHOTS AND COVID TESTING AND VACCINATIONS A KEY LOCATIONS-EMERGENCY FOOD PANTRY FOR PANDEMIC RELATED PATIENT NEEDS AT ALL INPATIENT AND OUTPATIENT SITES-FREE DIABETES PREVENTION AND CHRONIC DISEASE SUPPORT GROUP PROGRAMS IN ENGLISH AND SPANISH-AID TO SEASONAL AND MIGRANT LABORERS: LIVING IN THE SHADOWS OF BERKS COUNTY ARE SEASONAL FARM WORKERS WHO COME HERE HOPING TO MAKE BETTER LIVES FOR THEMSELVES AND THEIR FAMILIES. THEY WORK IN MUSHROOM HOUSES, ON FARMS AND IN ORCHARDS. THEY PICK STRAWBERRIES, PLANT CHRISTMAS TREES AND PROCESS TURKEYS. THIS GROUP OF FARM WORKERS TENDS TO BE POOR, WITH VERY LIMITED EDUCATION. SOME HAVE WORK VISAS, WHILE OTHERS ARE UNDOCUMENTED. MANY TRAVEL BETWEEN THE UNITED STATES AND MEXICO OR CENTRAL AMERICA, RETURNING TO BERKS COUNTY YEAR AFTER YEAR FOR WORK. THEY TEND TO BE TRANSIENT, AND VERY FEW HAVE ACCESS TO ADEQUATE MEDICAL CARE. ST. JOSEPH ADMINISTERS A PROGRAM IN PARTNERSHIP WITH THE KEYSTONE FARMWORKER HEALTH PROGRAM BASED AT THE ST. JOSEPH DOWNTOWN CAMPUS. WITH THE HELP OF OUR PROVIDERS AND RESIDENTS, THE PROGRAM PROVIDES IMMUNIZATIONS, HEALTH SCREENINGS, A DENTAL PROGRAM, EDUCATIONAL PROGRAMS AND OTHER PRIMARY CARE SERVICES TO THE MIGRANT COMMUNITY. PHYSICIANS AND FARMWORKER PROGRAM REPRESENTATIVES OFTEN MEET WITH FARM WORKERS AT THEIR PLACE OF EMPLOYMENT TO PROVIDE CONSULTATIONS AND BASIC SERVICES. -GUTS AND GLORY - ST. JOSEPH FOCUSES ON OBESITY, COLON CANCER AND GI HEALTH: SINCE ITS INCEPTION OVER SEVEN YEARS AGO, ST. JOSEPH HAS BEEN THE MAIN COLLABORATOR AND TITLE SPONSOR FOR BERKS COUNTY'S FIRST DIGESTIVE AND WELLNESS EXPO CALLED GUTS AND GLORY. THIS ANNUAL EVENT IS FREE AND OPEN TO THE PUBLIC AND OFFERS AN EXCITING JOURNEY OF WELLNESS EDUCATION, NUTRITIONAL AWARENESS, HEALTH CONSCIOUSNESS, AND FAMILY FUN. THE NEED THE EVENT WAS HIGHLIGHTED BY THE RELEASE OF A GALLUP POLL THAT LISTED READING AS THE 9TH MOST OBESE CITY IN THE UNITED STATES. THE STATISTIC WAS SOBERING, PARTICULARLY WHEN THERE ARE SO MANY THINGS THAT PEOPLE CAN DO TO HELP THEMSELVES WHEN IT COMES TO EATING AND LIVING BETTER. THIS EVENT TYPICALLY FEATURES LIVE HEALTHY COOKING DEMONSTRATIONS, GROUP FITNESS EXERCISE PRESENTATIONS, INSPIRING PERSONAL STORIES, AND EXPERT LECTURES. FOR 2020, GUTS AND GLORY WAS ADAPTED AS A VIRTUAL SERIES DUE TO THE PANDEMIC. ADDITIONAL INFORMATION CAN BE FOUND AT WWW.MYGUTINSTINCT.ORG. -MOBILE HEALTH INITIATIVE FOCUSES ON EMPLOYEES' OVERALL HEALTH AND WELL-BEING: PENN STATE HEALTH ST. JOSEPH'S INITIATIVE WITH LOCAL EMPLOYERS PLACES A SPECIALLY RENOVATED AND EQUIPPED DOCTOR'S OFFICE ON WHEELS AT WORKSITE LOCATIONS WEEKLY TO OFFER EMPLOYEES HEALTH CARE SERVICES RIGHT WHERE THEY WORK AND IS A COLLABORATION TO IMPROVE EMPLOYEE SATISFACTION, CREATE A WELLNESS CULTURE AND IMPROVE PRODUCTIVITY. ST. JOSEPH'S INNOVATIVE MOBILE-HEALTH INITIATIVE IS A SPECIALLY MARKED 32-FOOT RV WHICH ARRIVES AT VARIOUS WORKPLACES AND BRINGS PRIMARY MEDICAL CARE TO EMPLOYEES WHO ARE PRE-SCHEDULED. THE MOBILE EFFORT IS PART OF ST. JOSEPH'S LARGER PLAN TO DEVELOP INNOVATIVE EFFORTS TO LOWER HEALTH COSTS BY EARLY AND CONVENIENT INTERVENTION. ADDITIONAL INFORMATION CAN BE FOUND AT: HTTPS://WWW.PENNSTATEHEALTHPASSION.ORG/GIORGIO-PENN-STATE-HEALTH-ST-JOSEPH-ANNOUNCE-MOBILE-HEALTH-INITIATIVE PART VI, LINE 6: AFFILIATED HEALTH CARE SYSTEMST. JOSEPH REGIONAL HEALTH NETWORK IS A MEMBER OF THE PENN STATE HEALTH SYSTEM. PENN STATE HEALTH SYSTEM'S MANAGEMENT MEETS FREQUENTLY TO COORDINATE AND PLAN COMMUNITY BENEFIT OPERATIONS SUCH AS HEALTH NEEDS ASSESSMENTS AND STATE HEALTH IMPROVEMENT PLAN OBJECTIVES. SCHEDULE H, PART VI, LINE 7 COMMUNITY BENEFIT REPORT STATE FILINGS:THE COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH ANY STATE AGENCY IN THE STATE OF PENNSYLVANIA. 1 ST JOSEPH MEDICAL GROUP 2500 BERNVILLE ROAD READING PA 19605 208544021 501 (C) (3) 39240556 PROGRAM SUPPORT ST JOSEPH MEDICAL CENTER FOUNDATION 2500 BERNVILLE ROAD READING PA 19605 232649362 501 (C) (3) 723912 PROGRAM SUPPORT 2 PART I, LINE 2: IN THE CURRENT YEAR, SJRHN MADE GRANTS ONLY TO ITS RELATED ORGANIZATIONS. THERE IS NO SPECIFIC MONITORING OF THE GRANT FUNDS; HOWEVER SJRHN HAS ADOPTED BEST PRACTICES FOR INTERNAL CONTROLS. 1 1 0 0 0 0 0 1 0 ALAN BRECHBILL DIRECTOR /PSH EXEC VP 0 863400 0 212378 0 104925 0 40355 0 30364 0 1251422 0 0 STEPHEN MASSINI DIRECTOR / PSH CEO (BEG 9/2019) 0 891018 0 182106 0 20517 0 21355 0 10096 0 1125092 0 0 JOHN MORAHAN PRESIDENT/CEO/DIRECTOR (THRU 5/2020) 0 513932 0 136381 0 21348 0 21355 0 22711 0 715727 0 0 LOUIS BORGATTA MD DIRECTOR / (PHYSICIAN) 0 434245 0 189434 0 24922 0 19000 0 23685 0 691286 0 0 PAULA TINCH INTERIM TREAS/PSH SENIOR VP/CFO (BEG 0 330210 0 50000 0 1681 0 3606 0 16075 0 401572 0 0 ANNEMARIE BOYAN INT SEC/PSH ASSOC GC (BEG 3/2020) 0 282461 0 25000 0 45834 0 25548 0 10666 0 389509 0 0 SARA KLEIMAN PHYSICIAN ADVISOR 279583 0 50840 0 1587 0 27310 0 21310 0 380630 0 0 0 SHARON STROHECKER VP, NURSING AND CNO 270289 0 57235 0 18557 0 8342 0 23239 0 377662 0 0 0 COURTNEY COFFMAN SECRETARY/TREAS/CFO (THRU 12/2019) 249369 0 50484 0 8850 0 8197 0 30695 0 347595 0 0 0 SCOTT MENGLE VP, HUMAN RESOURCES 212192 0 43346 0 19185 0 7565 0 29042 0 311330 0 0 0 MICHAEL BRADLEY MEDICAL DIRECTOR 220426 0 5000 0 7197 0 0 0 29925 0 262548 0 0 0 MARY HAHN VP STRATEGY & BUS. DEV. 190103 0 35144 0 7961 0 4149 0 11679 0 249036 0 0 0 ANDREW JONES PHYSICIST 204055 0 0 0 10543 0 10035 0 23806 0 248439 0 0 0 MICHAEL JUPINA VP COMMUNICATIONS 181939 0 34625 0 2677 0 5178 0 1401 0 225820 0 0 0 CHRISTOPHER NEWMAN PHYSICIAN 176779 0 0 0 33555 0 6211 0 6112 0 222657 0 0 0 ACCAMMA JOY PHYSICIAN 175382 0 27500 0 1677 0 5733 0 9642 0 219934 0 0 0 MAMIE ESCHLEMAN REGISTERED NURSE 200352 0 0 0 389 0 6009 0 411 0 207161 0 0 0 PART I, LINE 3 ARRANGEMENT USED TO ESTABLISH THE CEO'S COMPENSATION: COMPENSATION FOR THE CEO IS ESTABLISHED AND PAID BY A RELATED ORGANIZATION. THAT ORGANIZATION USED THE FOLLOWING TO ESTABLISH THE CEO'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) COMPENSATION SURVEY OR STUDY; (4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINES 4A-B COURTNEY COFFMAN $5,200 PARTICIPATE IN, OR RECEIVE PAYMENT FROM, A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: DURING THE CALENDAR YEAR ENDING WITHIN THIS FISCAL YEAR ENDED JUNE 30, 2019, CERTAIN OFFICERS AND KEY EMPLOYEES PARTICIPATED IN A RELATED ORGANIZATION'S SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE BELOW LISTED INDIVIDUAL'S CONTRIBUTIONS HAVE VESTED; SUCH VESTED CONTRIBUTIONS ARE REPORTED AS TAXABLE COMPENSATION ON SCHEDULE J, PART II, COLUMN B(III), OTHER REPORTABLE COMPENSATION. ALAN BRECHBILL DURING THE CALENDAR YEAR ENDING WITHIN THIS FISCAL YEAR ENDED JUNE 30, 2019, CERTAIN OFFICERS AND KEY EMPLOYEES PARTICIPATED IN A RELATED ORGANIZATION'S SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. THE BELOW LISTED INDIVIDUALS' CONTRIBUTIONS HAVE NOT YET VESTED; THEREFORE, UNVESTED CONTRIBUTIONS ARE REPORTED ON SCHEDULE J, PART II, COLUMN C, RETIREMENT AND OTHER DEFERRED COMPENSATION. ALAN BRECHBILL STEPHEN MASSINI PAULA TINCH PART I, LINE 7 BONUSES, PAID BY THE FILING ORGANIZATION OR BY A RELATED ORGANIZATION THAT EMPLOYS THE INDIVIDUALS, ARE BASED ON A NUMBER OF VARIABLES INCLUDING BUT NOT LIMITED TO INDIVIDUAL GOAL ACHIEVEMENTS AS WELL AS ORGANIZATION OPERATION ACHIEVEMENTS. THE FINAL DETERMINATION OF THE BONUS AMOUNT IS DETERMINED AND APPROVED BY THE APPLICABLE BOARD AS PART OF THE OVERALL COMPENSATION REVIEW OF THE OFFICERS, KEY EMPLOYEES AND HIGHEST COMPENSATED. PART VII SISTER JANET HENRY IS LISTED AS A KEY EMPLOYEE WITH ZERO TAXABLE COMPENSATION BECAUSE HER COMPENSATION IS PROVIDED TO THE ORDER SHE REPRESENTS. FORM 990, PART III, LINE 1 (CONTINUED:) THE CORPORATION, SPONSORED BY A LAY-RELIGIOUS PARTNERSHIP, CALLS OTHER CATHOLIC SPONSORS AND SYSTEMS TO UNITE TO ENSURE THE FUTURE OF CATHOLIC HEALTH CARE. TO FULFILL THIS MISSION, THE CORPORATION, AS A VALUES-BASED ORGANIZATION, WILL ASSURE THE INTEGRITY OF THE MINISTRY IN BOTH CURRENT AND DEVELOPING ORGANIZATIONS AND ACTIVITIES; RESEARCH AND DEVELOP NEW MINISTRIES THAT INTEGRATE HEALTH, EDUCATION, PASTORAL, AND SOCIAL SERVICES; PROMOTE LEADERSHIP DEVELOPMENT AND FORMATION FOR MINISTRY THROUGHOUT THE ENTIRE ORGANIZATION; ADVOCATE FOR SYSTEMIC CHANGES WITH SPECIFIC CONCERN FOR PERSONS WHO ARE POOR, ALIENATED, AND UNDERSERVED; AND STEWARD RESOURCES BY GENERAL OVERSIGHT OF THE ENTIRE ORGANIZATION. SUPPLEMENTAL INFORMATION FOR PENN STATE HEALTH AND AFFILIATES (PSH) CORONAVIRUS (COVID-19) PANDEMIC IN MARCH 2020, THE OUTBREAK OF COVID-19 PANDEMIC BEGAN TO IMPACT PSH'S PATIENTS, COMMUNITIES, AND BUSINESS OPERATIONS. THE SPREAD OF COVID-19 AND THE ENSUING RESPONSE OF FEDERAL, STATE AND LOCAL AUTHORITIES, BEGINNING IN MARCH 2020, RESULTED IN A SIGNIFICANT REDUCTION IN THE NUMBER OF SURGERIES, PHYSICIAN OFFICE VISITS AND EMERGENCY ROOM VOLUMES AT PSH. THIS WAS DUE TO MEASURES MEANT TO SLOW THE SPREAD OF THE VIRUS, INCLUDING QUARANTINES AND STAY-AT-HOME AND SHELTER-IN-PLACE ORDERS, AS WELL AS THE COMMUNITY'S GENERAL CONCERNS RELATED TO THE RISK OF CONTRACTING COVID-19. DUE TO COVID-19, PSH MAY, GOING FORWARD, EXPERIENCE SUPPLY CHAIN DISRUPTIONS, INCLUDING DELAYS AND PRICE INCREASES IN EQUIPMENT, PHARMACEUTICALS AND MEDICAL SUPPLIES DUE TO THE PANDEMIC. STAFFING, EQUIPMENT, AND PHARMACEUTICAL AND MEDICAL SUPPLIES SHORTAGES MAY ALSO INFLUENCE OUR ABILITY TO ADMIT AND TREAT PATIENTS. PSH HAS INCURRED, AND MAY CONTINUE TO INCUR, INCREASED EXPENSES ARISING FROM THE COVID-19 PANDEMIC, INCLUDING ADDITIONAL SUPPLY CHAIN AND OTHER EXPENDITURES. ADDITIONALLY, BROAD ECONOMIC FACTORS RESULTING FROM THE COVID-19 PANDEMIC, INCLUDING HIGH UNEMPLOYMENT AND UNDEREMPLOYMENT LEVELS AND REDUCED CONSUMER SPENDING AND CONFIDENCE, COULD ALSO AFFECT OUR SERVICE MIX, REVENUE MIX, PAYOR MIX AND PATIENT VOLUMES, AS WELL AS OUR ABILITY TO COLLECT OUTSTANDING RECEIVABLES. BUSINESS CLOSURES AND LAYOFFS ACROSS OUR SERVICE AREA MAY, IN FUTURE REPORTING PERIODS, LEAD TO INCREASES IN THE UNINSURED AND UNDERINSURED POPULATIONS AND ADVERSELY AFFECT DEMAND FOR OUR SERVICES, AS WELL AS THE ABILITY OF PATIENTS AND OTHER PAYERS TO PAY FOR SERVICES RENDERED. ANY INCREASE IN THE AMOUNT OR DETERIORATION IN THE COLLECTABILITY OF PATIENTS ACCOUNTS RECEIVABLE COULD ADVERSELY AFFECT PSH'S FINANCIAL RESULTS. FORTUNATELY, THE FEDERAL GOVERNMENT HAS TAKEN SEVERAL ACTIONS TO PROVIDE FINANCIAL ASSISTANCE TO HEALTHCARE PROVIDERS DURING THIS PANDEMIC. PSH HAS RECEIVED, AND MAY CONTINUE TO RECEIVE, PAYMENTS AND ADVANCES UNDER THE CARES ACT OR ANY OTHER GOVERNMENTAL ASSISTANCE PROGRAM, WHICH WILL BE BENEFICIAL IN ADDRESSING THE IMPACT OF THE NOVEL CORONAVIRUS PANDEMIC ON PSH'S RESULTS OF OPERATIONS AND FINANCIAL POSITION. AT THIS TIME, PSH IS UNABLE TO QUANTIFY THE IMPACT THAT THE COVID-19 PANDEMIC WILL HAVE ON THE CONTINUING FINANCIAL RESULTS DURING FISCAL YEAR 2021, AS THE IMPACT OF COVID-10 WILL DEPEND ON FUTURE DEVELOPMENTS, INCLUDING THE DURATION OF THE OUTBREAK AND THE RELATED ADVISORIES AND RESTRICTIONS. HOWEVER, PSH HAS TAKEN, AND WILL CONTINUE TO TAKE, VARIOUS ACTIONS TO INCREASE LIQUIDITY AND MITIGATE THE IMPACT OF REDUCTIONS IN PATIENT VOLUMES AND OPERATING REVENUES FROM THE COVID-19 OUTBREAK. FORM 990, PART V FORM 1096 FOR THE FILING ORGANIZATION IS PROCESSED AND REPORTED BY ITS RELATED ORGANIZATION PENN STATE HEALTH (EIN: 47-3769205). FORM 990, PART VI, SECTION A, LINE 6 CLASSES OF MEMBERS OR STOCKHOLDERS THE FILING ORGANIZATION'S SOLE MEMBER IS PENN STATE HEALTH, A PENNSYLVANIA NONPROFIT CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A ELECTING MEMBERS OF GOVERNING BODY DIRECTORS SHALL BE ELECTED BY THE CORPORATE MEMBER, PENN STATE HEALTH. THE CORPORATE MEMBER MAY AT ANY TIME REMOVE, WITH OR WITHOUT CAUSE, ANY MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS REQUIRING APPROVAL BY MEMBERS OR STOCKHOLDERS PURSUANT TO SPECIFICATIONS DEFINED IN THE BYLAWS THE CORPORATE MEMBERS HAVE RESERVED POWERS AS FOLLOWS: - TO DETERMINE THE NUMBER OF AND TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE DIRECTORS OF THE FILING ORGANIZATION; - TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE CHAIRPERSON AND VICE CHAIRPERSON OF THE FILING ORGANIZATION; - TO INITIATE OR APPROVE ANY AND ALL AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS OF THE FILING ORGANIZATION; - TO INITIATE OR TO APPROVE ALL FUNDAMENTAL CHANGE TRANSACTIONS AND ALL OTHER TRANSACTIONS NOT IN THE ORDINARY COURSE OF BUSINESS, INCLUDING WITHOUT LIMITATION, ALL MERGERS, CONSOLIDATIONS, DIVISIONS, SALES OF SUBSTANTIALLY ALL ASSETS, AND LIQUIDATION OR DISSOLUTION OF THE FILING ORGANIZATION; - TO GIVE SUCH OTHER APPROVALS AND TAKE SUCH OTHER ACTIONS AS ARE SPECIFICALLY RESERVED TO MEMBERS OF PENNSYLVANIA NONPROFIT CORPORATIONS. FORM 990, PART VI, SECTION B, LINE 11B REVIEW OF FORM 990 BY GOVERNING BODY THE FORM 990 IS PREPARED BY AN EXTERNAL ACCOUNTING FIRM; IT IS REVIEWED BY ACCOUNTING/FINANCE DEPARTMENT PERSONNEL AND THE CHIEF FINANCIAL OFFICER, AND THEN DISTRIBUTED TO ALL MEMBERS OF THE BOARD FOR REVIEW AND COMMENT BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY THE FILING ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST (COI) POLICIES FOR OFFICERS, DIRECTORS, AND KEY EMPLOYEES (COVERED PERSONS). PER THE POLICY, NO COVERED PERSONS MAY ENGAGE IN ANY TRANSACTION OR ARRANGEMENT OR UNDERTAKE POSITIONS WITH OTHER ORGANIZATIONS THAT INVOLVE A CONFLICT OF INTEREST, EXCEPT IN COMPLIANCE WITH THE POLICY. EVERY COVERED PERSON SHALL DISCLOSE ALL ACTUAL AND POTENTIAL CONFLICTS THROUGH AN ANNUAL WRITTEN DISCLOSURE STATEMENT AND AS MATTERS INVOLVING AN ACTUAL OR POTENTIAL CONFLICT ARISE. THE BOARD WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION OR ARRANGEMENT GIVING RISE TO THE POTENTIAL CONFLICT TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION OR ARRANGEMENT. A COVERED PERSON WHO HAS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH THE BOARD OF DIRECTORS OR A COMMITTEE IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE PRESENTATION TO THE BOARD OR COMMITTEE TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. THE FILING ORGANIZATION MAY ENTER INTO A TRANSACTION OR ARRANGEMENT IN WHICH A COVERED PERSON HAS AN ACTUAL CONFLICT OF INTEREST IF A MAJORITY OF DIRECTORS WHO HAVE NO INTEREST IN THE TRANSACTION OR ARRANGEMENT APPROVE THE TRANSACTION OR ARRANGEMENT AT A BOARD OR COMMITTEE MEETING AFTER DETERMINING THAT THE TRANSACTION OR ARRANGEMENT IS FAIR AND REASONABLE TO THE CORPORATION, ANY COVERED PERSON WHO HAS A CONFLICT WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING SUCH TRANSACTION OR ARRANGEMENT (EXCEPT THAT THE COVERED PERSON MAY APPEAR AT A MEETING TO ANSWER QUESTIONS), AND IF THE TRANSACTION OR ARRANGEMENT INVOLVES COMPENSATION OR OTHER FINANCIAL BENEFIT TO THE COVERED PERSON, THE BOARD RELIES ON APPROPRIATE COMPARABILITY DATA TO DETERMINE REASONABLENESS. THE FILING ORGANIZATION WILL DOCUMENT THE FOREGOING IN THE MINUTES OF BOARD AND COMMITTEE MEETINGS, AS APPLICABLE. EACH COVERED PERSON MUST SIGN A STATEMENT THAT AFFIRMS THAT HE OR SHE HAS RECEIVED A COPY OF THE COI POLICY, HAS READ AND UNDERSTANDS IT, AND HAS AGREED TO COMPLY WITH IT. IF THE BOARD OF DIRECTORS HAS REASONABLE CAUSE TO BELIEVE THAT A COVERED PERSON HAS FAILED TO COMPLY WITH THE POLICY, THE BOARD MAY COUNSEL THE COVERED PERSON REGARDING SUCH FAILURE AND, IF THE ISSUE IS NOT RESOLVED TO THE BOARD'S SATISFACTION, MAY CONSIDER ADDITIONAL CORRECTIVE ACTION, INCLUDING REMOVAL FROM THE BOARD OF DIRECTORS OR OTHER POSITION WITH THE FILING ORGANIZATION, AS APPROPRIATE. FORM 990, PART VI, LINES 13 & 14 WHISTLEBLOWER POLICY AND DOCUMENT RETENTION/DESTRUCTION POLICY THE FILING ORGANIZATION FOLLOWS THE WHISTLEBLOWER POLICY AND DOCUMENT RETENTION AND DESTRUCTION POLICY OF A RELATED ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 15 PROCESS USED TO ESTABLISH COMPENSATION OF CEO, OFFICERS, AND KEY EMPLOYEES THE FILING ORGANIZATION DOES NOT HAVE ANY EMPLOYEES; HOWEVER, ITS APPLICABLE RELATED ORGANIZATIONS HAVE THE FOLLOWING PROCESS FOR ESTABLISHING COMPENSATION: ANNUALLY, THE COMPENSATION COMMITTEE OF THE BOARD OF THE RELATED ORGANIZATION ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT A COMPENSATION ANALYSIS FOR THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER, OFFICERS, AND KEY EMPLOYEES. AS PART OF THE ANALYSIS, THE INDEPENDENT COMPENSATION CONSULTANT IDENTIFIES, GATHERS, AND ANALYZES APPROPRIATE COMPARABILITY DATA UPON WHICH THE COMMITTEE AND THE FULL BOARD WILL RELY TO ASSESS THE REASONABLENESS OF THE TOTAL PROPOSED COMPENSATION (INCLUDING BENEFITS) OF THE CEO, OFFICERS, AND KEY EMPLOYEES. ONCE THE COMPENSATION ANALYSIS IS COMPLETE AND DOCUMENTED IN REPORTS, THE REPORTS ARE PROVIDED TO THE BOARD FOR REVIEW AND CONSIDERATION, TOGETHER WITH WRITTEN OPINIONS FROM THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION ARRANGEMENTS FOR THE CEO, OFFICERS, AND KEY EMPLOYEES ARE REASONABLE WITHIN THE MEANING OF TREASURY REGULATION 53.4958-4(B)(1)(II)(A). WITH INPUT FROM THE COMPENSATION COMMITTEE, THE FULL BOARD MAKES ANNUAL DECISIONS WITH RESPECT TO COMPENSATION FOR THE CEO, OFFICERS, AND KEY EMPLOYEES BASED UPON THE DATA IN THE REPORT AND THE OPINION OF THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION IS REASONABLE. THESE DECISIONS, THE BASIS FOR THESE DECISIONS, THE BOARD MEMBERS' NAMES WHO VOTE ON COMPENSATION, AND THAT NONE OF THE BOARD MEMBERS HAVE A CONFLICT OF INTEREST WITH RESPECT TO THESE COMPENSATION ARRANGEMENTS IS ALL CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES. FORM 990, PART VI, SECTION C, LINE 19 REQUIRED DOCUMENTS AVAILABLE TO THE PUBLIC THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE PENNSYLVANIA STATE UNIVERSITY AND ITS SUBSIDIARIES (WHICH INCLUDE PENN STATE HEALTH) ARE AVAILABLE AT WWW.PSU.EDU. 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