2021-05-13T10:01:15-05:00 2020-06-30 ERNST & YOUNG US LLP 221 E 4TH STSUITE 2900 CINCINNATI OH 45202 990 2019-07-01 710655753 MERCY HOSPITAL PARIS % GRETA WILCHER VP OF FINANCE MERC 3145796100 500 East Academy Paris AR 72855 GRETA WILCHER VP FINANCE 4793146000 2021-05-10 true JULIE L SPARKS P01268401 5136121400 2021-05-06 2019 2022-09-23 18:48:47Z RYAN GEHRIG CEO 7301 Rogers Ave FORT SMITH AR 72903 12014224 false 0928 X www.mercy.net X 1979 AR AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. 12 11 0 11 0 0 52477 51409 10948748 11962815 0 0 0 0 11001225 12014224 110 261 0 0 5903490 6316521 0 0 0 6079767 3601640 11983367 9918422 -982142 2095802 2214262 2403828 544442 215516 1669820 2188312 X AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. false false 1399933 0 1449920 CRITICAL ACCESS HOSPITAL RURAL HEALTH CLINIC - ACCESS TO OUTPATIENT CLINIC CARE IN RURAL COMMUNITIES IS ESSENTIAL TO THE HEALTH OF THE COMMUNITY. THE HOSPITAL FURNISHES OUTPATIENT CLINIC VISITS WITH PHYSICIANS AND APN'S. THE COMMUNITY NEED IS REPRESENTED BY 16,469 VISITS TO THE RURAL HEALTH CLINIC. 1397411 0 2198338 CRITICAL ACCESS HOSPITAL EMERGENCY SERVICES - ACCESS TO EMERGENCY CARE IN RURAL COMMUNITIES IS ESSENTIAL TO THE HEALTH OF THE COMMUNITY. THE HOSPITAL FURNISHES 24-HOUR EMERGENCY CARE SERVICES USING ON-SITE PHYSICIAN STAFF. THE COMMUNITY NEED IS REPRESENTED BY THE APPROXIMATE 3,453 ER VISITS TO MERCY HOSPITAL PARIS. 1254983 0 1102442 CRITICAL ACCESS HOSPITAL ACUTE CARE SERVICES - ACCESS TO SHORT-STAY AND SWING BED INPATIENT CARE IN RURAL COMMUNITIES IS ESSENTIAL TO THE HEALTH OF THE COMMUNITY. THE HOSPITAL FURNISHES SHORT-TERM INPATIENT ACUTE CARE THROUGH PHYSICIAN ADMISSIONS AND ADMISSIONS THROUGH THE EMERGENCY DEPARTMENT. THE COMMUNITY NEED IS REPRESENTED BY THE APPROXIMATE 310 ADMISSIONS TO MERCY HOSPITAL PARIS. 4318340 261 7212115 8370667 true true false true false false false false false false true false false false true false false true false false false false false false false false true true false false true false false false false false false false false false false false false false true true true false false true X 0 0 0 false false false false false false false false false false false false X 12 11 false false false false true true true true true false false true true true true true true false false false X GRETA WILCHER VP OF FINANCE 4793146000 7301 ROGERS AVENUE FORT SMITH AR 72903 Swope Jon President-Central Communities 1.0 59.0 X 0 1252573 170347 Gehrig Ryan CEO & Board Member 5.0 55.0 X X 0 694361 83429 Reynolds Scott CFO - Central Communities 2.0 58.0 X 0 567650 110425 Marion Tanya Regional VP-Human Resources 3.0 57.0 X 0 380401 66401 Wilcher Greta VP-Finance 5.0 55.0 X 0 278502 42996 Hertlein Kimberly Advanced Practice Nurse 60.0 0.0 X 192026 0 20301 Berry Marcus Board Member 1.0 3.0 X 0 0 0 Goss Carolyn Board Member 1.0 4.0 X 0 0 0 Hardcastle Sr Mary Board Member 1.0 3.0 X 0 0 0 Hendricks RSM Sr Rebecca Ann Board Member 1.0 14.0 X 0 0 0 Keith RSM Sr Judith Marie Board Member 1.0 3.0 X 0 0 0 Leding Rickey Board Member 1.0 3.0 X 0 0 0 Rose Cheri Board Member 1.0 3.0 X 0 0 0 Swift Kathy Board Member 1.0 3.0 X 0 0 0 Ullrich Martha Board Member 1.0 3.0 X 0 0 0 Baker Jerald Board Member 1.0 3.0 X 0 0 0 Spivey Paulette Board Member 1.0 3.0 X 0 0 0 192026 3173487 493899 1 false true false GE PRECISION HEALTHCARE LLC PO BOX 96483 CHICAGO IL 60693 IMAGING SERVICES 293500 1 2038 49000 371 51409 NET PATIENT SERVICE REVENUE 621110 11480906 11480906 TAX REVENUE 900099 329882 329882 OTHER OPERATING REVENUE 900099 123211 123211 CAPITATION BONUS 531120 28791 28791 RETURNED CHECK FEES 900099 25 25 11962815 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12014224 11632933 329882 261 261 0 0 0 0 0 5439501 5132295 307206 0 95130 89757 5373 0 489485 461840 27645 0 292405 275891 16514 0 0 0 0 2224 2224 0 0 0 291244 262912 28332 0 246 246 0 90836 36261 54575 0 0 0 80655 4201 76454 0 33823 31160 2663 0 0 0 0 0 194606 109756 84850 0 92051 40750 51301 0 SHARED SERVICE FEES 1489465 655365 834100 0 BAD DEBT 785954 785954 0 0 DRUGS & MEDICAL EXPENSES 389898 385342 4556 0 REPAIRS & MAINTENANCE 127615 93193 34422 0 23023 5729 17294 9918422 8370667 1547755 0 2193 8439 0 0 0 93317 1301394 1363376 0 0 0 0 0 0 13008 13796 12028 5630 4213460 3367858 735676 845602 0 0 0 0 0 0 0 0 149963 73668 2214262 2403828 126276 0 8169 8169 0 0 0 0 0 0 0 0 0 0 0 0 409997 207347 544442 215516 X 1669575 2181285 245 7027 1669820 2188312 2214262 2403828 X 2095802 -1577310 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 2224 2224 false FORM 990, SCHEDULE C, PART II-B, LINE 1I SUPPLEMENTAL LOBBYING INFORMATION THE FILING ORGANIZATION IS A MEMBER OF AND PAYS DUES TO THE FOLLOWING HOSPITAL ASSOCIATIONS: ARKANSAS HOSPITAL ASSOCIATION, AMERICAN HOSPITAL ASSOCIATION AND CATHOLIC HEALTH ASSOCIATION. FOR THE YEAR ENDED JUNE 30, 2020, DUES WERE $6,062, $3,573, AND $1,617 RESPECTIVELY. APPROXIMATELY 22.00% OF ARKANSAS HOSPITAL ASSOCIATION DUES, 23.32% OF AMERICAN HOSPITAL ASSOCIATION DUES AND 3.55% OF CATHOLIC HEALTH ASSOCIATION DUES WERE ATTRIBUTABLE TO LOBBYING ACTIVITIES PERFORMED BY THESE ASSOCIATIONS. 55000 55000 1449634 1169524 280110 148325 123255 25070 2509503 2026637 482866 50998 48442 2556 845602 0 DUE TO AFFILIATES 207347 207347 FORM 990, SCHEDULE D, PART X, LINE 2 ASC 740 FOOTNOTE PRIMARILY ALL OF THE HEALTH SYSTEM ENTITIES ARE RECOGNIZED BY THE INTERNAL REVENUE SERVICE (IRS) AS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE AS CHARITABLE ORGANIZATIONS QUALIFYING UNDER INTERNAL REVENUE CODE SECTION 501(C)(3), BY VIRTUE OF IRS DETERMINATION LETTERS OR INCLUSION IN THE OFFICIAL CATHOLIC DIRECTORY. THE HEALTH SYSTEM COMPLETED AN ANALYSIS OF ITS TAX POSITIONS IN ACCORDANCE WITH APPLICABLE ACCOUNTING GUIDANCE AND DETERMINED THAT NO AMOUNTS WERE REQUIRED TO BE RECOGNIZED ON THE CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2020 OR 2019. true true X true X true X true true true false true true 162841 162841 0.01780 1116465 1047838 68627 0.00750 1279306 1047838 231468 0.02530 1279306 1047838 231468 0.02530 true 312486 3861942 3820612 41330 X true true 1 1 MERCY HOSPITAL PARIS 500 EAST ACADEMY PARIS AR 72855 WWW.MERCY.NET AR4938 X X X X MERCY HOSPITAL PARIS 1 false false true X X X X X X X X X X 18 true true false true X See part V, Section C X true 18 true See part V, Section C false true X 200. 300. X true true X X X true X See part V, Section C X See part V, Section C X See part V, Section C X X X X X X true X false X X X X X true X false false FORM 990, SCHEDULE H, PART V, SECTION B, LINE 3E THE HOSPITAL FACILITY DID INCLUDE A PRIORITIZED LIST OF THE COMMUNITY'S SIGNIFICANT HEALTH NEEDS IN ITS MOST RECENT CHNA REPORT. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 3J THE CHNA HAS ALL THE SECTIONS REFERENCED ABOVE AND INCLUDES AN EXECUTIVE SUMMARY, POTENTIALLY AVAILABLE RESOURCES, EVALUATION OF IMPACT, REFERENCES, AND APPENDICES. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 5 IN 2019 THE HOSPITAL GATHERED DATA FOR ITS COMMUNITY HEALTH NEEDS ASSESSMENT. A SURVEY, AVAILABLE IN BOTH HARD COPY AND ON-LINE FORMATS, WAS DESIGNED BY QUALTRICS (DATA COLLECTION SOFTWARE APPLICATION) TO CAPTURE THE PERCEPTIONS AND THOUGHTS OF COMMUNITY MEMBERS REGARDING THEIR COMMUNITYS HEALTH NEEDS. TO INCLUDE THE VOICES OF THOSE WHO MAY HAVE HAD LIMITED COMPUTER ACCESS, A CONCENTRATED EFFORT WAS MADE TO DISTRIBUTE PRINTED SURVEYS TO RURAL HEALTH COUNCIL PARTNER ORGANIZATIONS AND MERCY COWORKERS. MERCY COLLABORATED WITH DIFFERENT COMMUNITY-BASED ORGANIZATIONS TO LISTEN TO AND TO CAPTURE THE VOICE OF THE VARIOUS ETHNIC GROUPS THAT WERE NOT REPRESENTED WITHIN THE SURVEY RESULTS. THE PARTICIPANTS WERE SELECTED BY CHURCH LEADERS THAT WERE DEEMED TO BE CIVICALLY ENGAGED MEMBERS OF THE COMMUNITY. THE MERCY HOSPITAL FORT SMITH HAS CREATED THE RURAL HEALTH COUNCIL MADE UP OF LEADERS FROM THE DIFFERENT MERCY CRITICAL ACCESS HOSPITALS BOONEVILLE, OZARK, PARIS, AND WALDRON AND COMMUNITY HEALTH AND ACCESS STAFF SERVING THE ENTIRE REGION. THIS GROUP COLLABORATED AND DISCUSSED THE MOST IMPACTFUL NEEDS OF THE REGION THAT WERE WITHIN SCOPE OF CHANGE. THE RURAL HEALTH COUNCIL PINPOINTED THREE MAIN NEEDS: ACCESS TO CARE, BEHAVIORAL HEALTH AND NUTRITION. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 6A THE CHNA WAS CONDUCTED FOR MERCY HOSPITAL PARIS WITH THE ASSISTANCE OF MERCY HOSPITAL FORT SMITH. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 7A https://www.mercy.net/content/dam/mercy/en/pdf/chna/Paris-CHNA-2019.pdf FORM 990, SCHEDULE H, PART V, SECTION B, LINE 10A https://www.mercy.net/content/dam/mercy/en/pdf/chip/mercy-paris-chip-2019. pdf FORM 990, SCHEDULE H, PART V, SECTION B, LINE 11 ANALYSIS OF DATA FROM STATE AND NATIONAL SOURCES WAS UTILIZED IN CONJUNCTION WITH LOCAL SURVEYS, FOCUS GROUPS AND STAKEHOLDER MEETINGS. PRIORITIZATION OF NEEDS WAS DETERMINED BY THE MERCY FORT SMITH COMMUNITY HEALTH & ACCESS COWORKERS. THE TOP HEALTH NEEDS TO THE PARIS COMMUNITY ARE: ACCESS TO CARE, BEHAVIORAL HEALTH AND NUTRITION. ACCESS TO CARE: WHILE FACILITATING LOCAL COMMUNITY FOCUS GROUPS WITH OUR MARGINALIZED POPULATION WE DISCOVERED THAT MUCH OF THE COMMUNITY LACKED THE RESOURCES FOR OBTAINING HEALTH CARE SERVICES. THIS REMAINS AN ISSUE DUE TO THE UNDERINSURED OR COMPLETELY UNINSURED STATUS ALONG WITH OTHER OBSTACLES TO CARE LIKE TRANSPORTATION. THE LOGAN COUNTY PRIMARY CARE PHYSICIAN/CITIZEN RATIO OF 4,340:1 FAR EXCEEDS THAT OF THE ARKANSAS RATIO 1,520:1. ACCOMPANYING THE HEALTHCARE COVERAGE ISSUES ARE THE SOCIOECONOMIC BARRIERS. THE $44,030 MEDIAN FAMILY INCOME OF THE LOGAN COUNTY COMMUNITY STANDS ABOUT TEN THOUSAND DOLLARS LESS THAN THE STATE INCOME. BEHAVIORAL HEALTH: LOCAL FOCUS GROUPS, MEETINGS AND SURVEYS ALONG WITH NATIONAL AND STATE DATA HIGHLIGHT THE NEED FOR BEHAVIORAL HEALTH. THERE IS AN INCREASING NUMBER OF YOUTH AND ADULTS IN THE COMMUNITY THAT ARE EXPERIENCING ANXIETY PROBLEMS, SUICIDAL THOUGHTS, AND SUBSTANCE ABUSE. THE STAKEHOLDER FOCUS GROUP DISCUSSION HIGHLIGHTED ACCESS MENTAL HEALTH SERVICES WAS LACKING, WHICH IS SUPPORTED BY THE DESIGNATION OF A MENTAL HEALTH PROVIDER SHORTAGE AREA BY THE HEALTH RESOURCES & SERVICES ADMINISTRATION. THESE COMMUNITY MEMBERS ALSO TALKED ABOUT HOW SUBSTANCE USE REMAINS THE TOP SOCIAL BEHAVIOR IMPACTING THE PARIS REGION. THE SUBSTANCE ABUSE HEALTH CRISIS IS MAGNIFIED BY THE PREVALENCE OF FOSTER CARE AND HIGH RECIDIVISM WITHIN THE COMMUNITY. NUTRITION: THE COMMUNITY VOICE RAISED VARIOUS TIMES THAT NUTRITION REMAINS EXTREMELY IMPACTFUL. BOTH LOCAL SURVEYS AND FOCUS GROUPS PUT THAT POOR EATING HABITS WAS THE TOP RISK BEHAVIOR SEEN IN THEIR COMMUNITY AND HEALTHY COOKING CLASSES BEING UNAVAILABLE TO HELP FIND SOLUTIONS TO THESE HABITS. THE OBESITY AND DIABETES EPIDEMIC HITTING THE REGION HAS VARIOUS CAUSES, ONE OF WHICH IS HEALTHY EATING AND NUTRITION. THE ACCESS TO FAST FOOD AND HIGH-CALORIC/NUTRIENT-POOR OPTIONS ALSO CONTRIBUTES TO THE WEIGHT AND CHRONIC HEALTH CONDITION PREVALENCE IN PARIS. MERCY WILL WORK ON ACCESS TO CARE THROUGH OUR MAMMOGRAPHY VAN PROGRAM THAT COMES INTO THE AREA AT LEAST ONCE A MONTH. BEHAVORIAL HEALTH IS WORKING WITH AN ASSESSMENT TO SEE THE BEST WAY TO ADDRESS THIS ISSUE IN THE COMMUNITY. NUTRITION WILL BE WORKED ON THROUGH HEALTH SEMINARS TO MAKE SURE THE COMMUNITY IS EQUIPPED WITH THE PROPER EDUCATION AND HELP RAISE AWARENESS TO THIS ISSUE. THREE ASSESSED HEALTH ISSUES IDENTIFIED IN THE 2019 CHNA PROCESS - CHRONIC OBSTRUCTIVE PULMONARY DISEASE (COPD), HOUSING, UNEMPLOYMENT - WERE NOT CHOSEN AS PRIORITY FOCUS AREAS FOR DEVELOPMENT OF IMPLEMENTATION STRATEGIES DUE TO MERCY'S CURRENT LACK OF RESOURCES AVAILABLE TO ADDRESS THESE NEEDS. THESE ISSUES WILL BE ADDRESSED INDIRECTLY IN IMPLEMENTATION STRATEGIES DEVELOPED TO MEET THE PRIORITIZED NEEDS IN AREAS THAT MAY OVERLAP. FOR EXAMPLE, EFFORTS TO REDUCE THE INCIDENCE OF OBESITY IN THE COMMUNITY MAY ALSO REDUCE THE INCIDENCE OF CANCER. ADDITIONALLY, RELATED COMMUNITY PARTNERSHIPS, EVIDENCE-BASED PROGRAMMING, AND SOURCES OF FINANCIAL AND OTHER RESOURCES WILL BE EXPLORED DURING THE NEXT THREE-YEAR CHIP CYCLE. MERCY PARIS WILL CONSIDER FOCUSING ON THESE ISSUES SHOULD RESOURCES BECOME AVAILABLE. UNTIL THEN, MERCY PARIS WILL SUPPORT, AS ABLE, THE EFFORTS OF PARTNER AGENCIES AND ORGANIZATIONS CURRENTLY WORKING TO ADDRESS THESE NEEDS WITHIN THE COMMUNITY. FORM 990, SCHEDULE H, PART V, SECTION B, LINES 16A, 16B, & 16C THE FINANCIAL ASSISTANCE POLICY, APPLICATION AND A PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY ARE AVAILABLE ONLINE AT HTTPS://WWW.MERCY.NET/PATIENTS/BILLING/FINANCIAL-ASSISTANCE/ FORM 990, SCHEDULE H, PART V, SECTION B, LINE 20E OTHER AREAS FROM A NOTICE PERSPECTIVE: FAP IS POSTED IN ALL REGISTRATION AREAS, FULL POLICY AND PLAIN LANGUAGE DOCUMENT POSTED ON WEBSITE, PLAIN LANGUAGE DOCUMENT IS AVAILABLE WHEN REQUESTED, THERE IS A NOTICE ON STATEMENT, AND ALL PATIENTS GET THREE STATEMENTS BEFORE THEY CAN GO TO A COLLECTION AGENCY. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 22 ELIGIBILITY GUIDELINES FOR CHARITY CARE DISCOUNTS THE FEDERAL POVERTY GUIDELINES FOR INCOME ARE THE BASIS FOR DETERMINING ELIGIBILITY FOR CHARITY CARE DISCOUNTS. FOR EXAMPLE, INDIVIDUALS WITH INCOMES 200% OR BELOW, THE FEDERAL POVERTY GUIDELINES WILL BE ELIGIBLE FOR FREE CARE. INDIVIDUALS WITH INCOMES GREATER THAN 200% OF THE FEDERAL POVERTY GUIDELINES MAY BE ELIGIBLE FOR CARE AT DISCOUNTED RATES DEPENDING ON THEIR INCOME LEVEL AND/OR THE AMOUNT DUE TO THE HOSPITAL. TO DETERMINE THE MAXIMUM AMOUNTS THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE, THE HOSPITAL FACILITY USES AMOUNTS GENERALLY BILLED TO INDIVIDUALS WHO HAVE INSURANCE COVERING SUCH CARE. THE HOSPITAL USES A LOOK BACK METHOD THAT CONSIDERS DISCOUNTS ALLOWED TO MEDICARE AND ALL PRIVATE HEALTH INSURERS. 2 Mercy Urgent Care Paris 500 E Academy St PARIS AR 72855 URGENT CARE CLINIC MERCY RURAL HEALTH CLINIC PARIS 303 S 5TH STREET PARIS AR 72855 RURAL HEALTH CLINIC IMPACT OF COVID-19 PANDEMIC PLEASE SEE SCHEDULE O FOR INFORMATION RELATED TO COVID-19. FORM 990, SCHEDULE H, PART I, LINE 6A THE ORGANIZATION'S COMMUNITY BENEFIT REPORT IS PREPARED BY ITS ULTIMATE PARENT ENTITY, MERCY HEALTH (EIN: 43-1423050). FORM 990, SCHEDULE H, PART I, LINE 7, COLUMN F TOTAL EXPENSES FROM FORM 990, PART IX, LINE 25, COLUMN (A) ARE $9,918,422. INCLUDED IN THIS AMOUNT WAS BAD DEBT EXPENSE (CHARGES) OF $785,954. EXPENSES FOR THE PURPOSE OF CALCULATING LINE 7, COLUMN (F) ARE $9,132,468. FORM 990, SCHEDULE H, PART II N/A FORM 990, SCHEDULE H, PART III, SECTION A, LINE 2 TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE, AT COST, BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENT ACCOUNTS WAS MULTIPLIED BY A RATIO OF COST TO CHARGES. THE RATIO OF COST TO CHARGES USED WAS BASED ON DETAILED COST ACCOUNT, WHERE AVAILABLE. WHERE COST ACCOUNTING IS NOT AVAILABLE, COST REPORT COST TO CHARGE RATIOS WERE UTILIZED. FORM 990, SCHEDULE H, PART III, SECTION A, LINE 3 THE FILING ORGANIZATION DETERMINED THAT THE ESTIMATED AMOUNT OF BAD DEBT EXPENSE (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY IS $0. ALTHOUGH THE CHARITY CARE POLICY REQUIRES THE PARTICIPATION OF THE PATIENT REQUESTING ASSISTANCE, WE HAVE A PROCESS UNDER PRESUMPTIVE CHARITY TO ADDRESS ACCOUNTS FOR PATIENTS WHO DO NOT PROVIDE THE INFORMATION. WE BELIEVE THAT OUR CHARITY POLICY IS COMPREHENSIVE ENOUGH TO CAPTURE ALMOST ALL PATIENTS WHO QUALIFY FOR CHARITY CARE. FORM 990, SCHEDULE H, PART III, SECTION A, LINE 4 IN MAY 2014, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) AND INTERNATIONAL ACCOUNTING STANDARDS BOARD ISSUED ACCOUNTING STANDARDS UPDATE (ASU) 2014-09, REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606). THE HEALTH SYSTEM ADOPTED ASU 2014-09 ON JULY 1, 2018 USING A FULL RETROSPECTIVE BASIS. UPON ADOPTION, THE MAJORITY OF WHAT WAS PREVIOUSLY CLASSIFIED AS PROVISION FOR UNCOLLECTIBLE ACCOUNTS AND PRESENTED AS A REDUCTION TO PATIENT SERVICE REVENUE ON THE CONSOLIDATED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS IS TREATED A PRICE CONCESSION THAT REDUCES THE TRANSACTION PRICE, WHICH IS REPORTED AS PATIENT SERVICE REVENUE. AS SUCH, BAD DEBT EXPENSE IS NOT REFERENCED IN MERCY HEALTH AND SUBSIDIARIES AUDITED FINANCIAL STATEMENTS. BAD DEBT EXPENSE IS TRACKED FOR FORM 990 REPORTING AS FOLLOWS: PATIENT ACCOUNTS RECEIVABLE THAT ARE DEEMED UNCOLLECTIBLE, INCLUDING THOSE PLACED WITH COLLECTION AGENCIES, ARE INITIALLY CHARGED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IN ACCORDANCE WITH COLLECTION POLICIES OF THE HEALTH SYSTEM AND, IN CERTAIN CASES, ARE RECLASSIFIED TO CHARITY CARE IF DEEMED TO OTHERWISE MEET THE HEALTH SYSTEM'S CHARITY CARE POLICY. THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES BASED UPON THE PAYOR COMPOSITION AND AGING OF RECEIVABLES WITH CONSIDERATION OF THE HISTORICAL PAYMENT AND WRITE-OFF EXPERIENCE BY PAYOR CATEGORY. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTIBLE RECEIVABLES TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, THE HEALTH SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES. FORM 990, SCHEDULE H, PART III, SECTION B, LINE 8 IT IS THE POSITION OF MERCY THAT 100% OF ANY SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT. THIS AMOUNT REPRESENTS COST OF PROVIDING SERVICES THAT REMAIN UNCOMPENSATED TO THE PROVIDER. THE UNREIMBURSED COSTS OF MEDICARE IS CALCULATED BY THE GROSS CHARGES NET OF THE COST TO CHARGE RATIO LESS ANY PAYMENTS, DEDUCTIONS OR REIMBURSEMENTS USING THE ANNUAL MEDICARE COST REPORT (CMS FORM 2552-96). FORM 990, SCHEDULE H, PART III, SECTION C, LINE 9B MERCYS COLLECTION POLICY PROVIDES THAT MERCY WILL PERFORM A REASONABLE COMMUNICATION AND/OR REVIEW OF PATIENT ACCOUNTS AS IT RELATES TO ANY SERVICE PROVIDED AT OUR FACILITIES BEFORE TURNING THE ACCOUNT TO BAD DEBT OR TAKING LEGAL ACTION FOR NONPAYMENT. MERCY ACTIVELY SCRUBS ACCOUNTS FOR PAYOR PLAN COVERAGE, INCLUDING MEDICAID. IN THE EVENT AN ACCOUNT IS TURNED TO COLLECTIONS AND IS IDENTIFIED IN NEED OF FINANCIAL ASSISTANCE DUE TO CIRCUMSTANCE CHANGES, OR IS NOW REQUESTING ASSISTANCE, THE ACCOUNTS ARE RETURNED BY THE AGENCY AND CONSIDERED FOR CHARITY IF THE PATIENT PROVIDES THE REQUESTED INFORMATION. IF THE PATIENT FAILS TO RETURN THE INFORMATION, THE ACCOUNT WILL QUALIFY FOR COLLECTIONS. MERCY UTILIZES THE EXPERIAN TOOL TO ENHANCE THE ABILITY TO DETERMINE THE CHARITY QUALIFICATION PRIOR TO TURNING TO BAD DEBT, A PROCESS KNOWN AS PRESUMPTIVE CHARITY. MERCY WILL GRANT CHARITY IN SITUATIONS WHERE THERE HAS BEEN AN INABILITY TO OBTAIN INFORMATION FROM PATIENTS OR THE INFORMATION PROVIDED IS NOT COMPLETE ENOUGH TO MAKE A CHARITY DETERMINATION WHEN A PATIENT HAS SUBMITTED AN APPLICATION. FOR A PORTION OF THE FISCAL YEAR, 7/1/19 - 10/13/19, MERCY UTILIZED THE SAME TOOL TO QUALIFY ACCOUNTS PER THE PRACTICE OF PRESUMPTIVE CHARITY PRIOR TO BAD DEBT PLACEMENT FOR BALANCES IN EXCESS OF $6,500. ALL ACCOUNT BALANCES RELATING TO ACCOUNTS IDENTIFIED BY THE HIGHER BALANCES WILL BE CONSIDERED AND FLAGGED FOR CHARITY IF THERE IS AN INABILITY TO PAY AFTER A RETURN FROM THE COLLECTION AGENCY AT APPROXIMATELY 120 DAYS. STARTING ON 10/14/19, MERCY IMPLEMENTED PRESUMPTIVE CHARITY FOR ALL BALANCES, REGARDLESS OF ACCOUNT BALANCE, WHERE THE EVALUATION TOOK PLACE PRIOR TO PATIENT BILLING AND ADDITIONALLY PRIOR TO BAD DEBT PLACEMENT. THE PRESUMPTIVE SCREENING WAS PER ENCOUNTER AND DID NOT PROMOTE ANY LOOK-BACK ADJUSTMENTS. PRIOR TO GO-LIVE ON 10/14/19, MERCY DID A ONE TIME EVALUATION OF ALL BAD DEBT ACCOUNTS BILLED IN THE LAST 240 DAYS THAT MET NEW PRESUMPTIVE CRITERIA AND ADJUSTED PER A TERMINAL PRESUMPTIVE ADJUSTMENT. MERCY WILL PURSUE APPROPRIATE MEANS IN THE COLLECTION OF DELINQUENT ACCOUNTS FROM PATIENTS WITH AN ESTABLISHED ABILITY TO PAY OR AN UNWILLINGNESS TO COOPERATE IN VALIDATING ELIGIBILITY FOR FINANCIAL ASSISTANCE. THESE APPROPRIATE MEANS MAY INCLUDE LEGAL ACTION CONSISTENT WITH MERCY MISSION AND VALUES AFTER SENDING 3 MONTHLY STATEMENTS WITH THE FINAL INCLUDING NOTIFICATION; IF NO RESOLUTION THEY WILL BE TURNED TO COLLECTIONS. ADDITIONALLY, THEY MAY INCLUDE LIENS UPON REAL PROPERTY AND REASONABLE WAGE GARNISHMENTS. LEGAL ACTIONS WILL GENERALLY NOT INCLUDE BANK GARNISHMENTS, REPOSSESSION OF ASSETS OR FORECLOSURES TO ENSURE SATISFACTION OF A LIEN. MERCY HAS POLICIES AND PROCEDURES ESTABLISHED TO ADDRESS THE INITIATION OF LEGAL ACTION AND ANNUALLY REVIEW COMPLIANCE WITH POLICIES BUT ENSURE 120 DAYS OF BILLING AND COLLECTIONS OCCUR PRIOR TO ANY EXTRAORDINARY COLLECTIONS ARE PURSUED. FORM 990, SCHEDULE H, PART VI, LINE 2 MERCY HEALTH BELIEVES THAT ITS COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS IS COMPREHENSIVE ENOUGH TO CAPTURE SUBSTANTIALLY ALL OF THE COMMUNITY'S NEEDS. THEREFORE, NO OTHER STEPS WERE TAKEN TO IDENTIFY ADDITIONAL NEEDS. FORM 990, SCHEDULE H, PART VI, LINE 3 MERCY INFORMS AND EDUCATES PATIENTS AND PERSONS WHO MAY BE BILLED FOR PATIENT CARE ABOUT THEIR ELIGIBILITY FOR ASSISTANCE UNDER FEDERAL, STATE, OR LOCAL GOVERNMENT PROGRAMS OR UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY THROUGH SEVERAL MEANS. IF AT ANY TIME A PATIENT EXPRESSES HARDSHIP AND INABILITY TO PAY, THE ACCOUNT IS PLACED FOR REVIEW. IN ADDITION, PATIENTS HAVE SIGNAGE ABOUT THE POLICY AT THE ACCESS POINTS, AND ALL STAFF WORKING WITH THE PATIENT AT POINT OF SERVICE, SCHEDULING, CUSTOMER SERVICE, AND EVEN THROUGH THE MEDICAID ELIGIBILITY SCREENING HAVE THE MEANS TO SEND THE ACCOUNT FOR REVIEW. THERE IS THE PLAIN LANGUAGE SUMMARY THAT IS BEING PROVIDED TO ALL WHOM EXPRESS HARDSHIP, IN ADDITION TO THE WEB ADDRESS PROVIDING THE APPLICATION, POLICIES, AND EVEN HOW UNINSURED ACCOUNTS ARE HANDLED. LASTLY, THE STATEMENTS MESSAGE TO THE PATIENT THAT MERCY DOES HAVE A FINANCIAL ASSISTANCE PROGRAM AND TO CALL TO SEE IF THEY ARE ELIGIBLE. MERCY STAFFS INTERNAL RESOURCES CERTIFIED TO ASSIST PATIENTS WITH MEDICAID APPLICATIONS AS WELL. FORM 990, SCHEDULE H, PART VI, LINE 4 THE PRIMARY SERVICE AREA FOR MERCY HOSPITAL PARIS INCLUDES LOGAN COUNTY, ARKANSAS. THE FOLLOWING INFORMATION IS DERIVED FROM 2019 IBM/WATSON'S DEMOGRAPHICS. THE AREA'S POPULATION IS 22,488. 22% OF THE POPULATION'S AVERAGE HOUSEHOLD INCOME IS OVER $75,000. 48% OF THE POPULATION IS 45 AND OLDER. FORM 990, SCHEDULE H, PART VI, LINE 5 PROMOTION OF COMMUNITY HEALTH MERCY PROVIDES QUALITY MEDICAL HEALTH CARE REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE OR ABILITY TO PAY. MERCY IS A CATHOLIC HEALTH CARE CORPORATION THAT, PURSUANT TO THE ORGANIZATIONAL CORE BELIEF THAT HEALTH CARE SERVICES ARE A VITAL AND INTEGRAL PART OF THE CHURCH'S HEALING MISSION, ENGAGES IN A MINISTRY WHICH PROVIDES GENERAL ACUTE CARE, AMBULATORY, LONG-TERM AND HOME CARE HEALTH SERVICES TO INDIVIDUALS AND FAMILIES IN ITS SERVICE COMMUNITIES. MERCY OFFERS SERVICES AND PROGRAMS WHICH FURTHER HEALTH PROMOTION, MAINTENANCE AND CARE TO THE COMMUNITY. PROGRAMS PROVIDED TO MEET THE COMMUNITY NEEDS INCLUDE SUPPORT GROUPS FOR VARIOUS SITUATIONS, OUTREACH PROGRAMS, BLOOD DRIVES, ETC. MERCY IS GOVERNED BY A BOARD OF DIRECTORS WHICH INCLUDES REPRESENTATION FROM COMMUNITY LEADERS IN THE ORGANIZATION'S PRIMARY SERVICE AREAS. ALL BOARD MEMBERS ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST SURVEY. ANY POTENTIAL CONFLICTS OF INTEREST DISCLOSED BY BOARD MEMBERS ARE REVIEWED AND RESOLVED. THIS PROCESS ENSURES THAT PUBLIC, RATHER THAN PRIVATE, INTERESTS ARE SERVED BY MERCY. SURPLUS FUNDS AND UNRESTRICTED ASSETS HELD BY MERCY ARE REINVESTED IN PATIENT CARE, MEDICAL EDUCATION AND RESEARCH INITIATIVES WHICH SUPPORT THE ORGANIZATION'S MISSION TO DELIVER COMPASSIONATE CARE AND EXCEPTIONAL HEALTH CARE SERVICES TO THE COMMUNITY IT SERVES. FORM 990, SCHEDULE H, PART VI, LINE 6 AFFILIATED HEALTH CARE SYSTEM THE FILING ORGANIZATION IS PART OF MERCY HEALTH ("MERCY"). MERCY IS A MISSOURI NON-PROFIT CORPORATION WITH ITS HEADQUARTERS ("MINISTRY OFFICE") IN ST. LOUIS, MISSOURI. MERCY PROVIDES HEALTH CARE SERVICES IN FOUR STATES - ARKANSAS, KANSAS, MISSOURI, AND OKLAHOMA - AND HAS OUTREACH MINISTRIES LOCATED IN LOUISIANA, MISSISSIPPI, AND TEXAS. MERCY'S MISSION IS "AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE." AS OF JUNE 30, 2020, MERCY FACILITIES INCLUDED 29 ACUTE CARE HOSPITALS, 4 HEART HOSPITALS, 2 CHILDREN'S HOSPITALS, 2 ORTHOPEDIC HOSPITALS AND 3 REHAB HOSPITALS. FOR THE FISCAL YEAR ENDED JUNE 30, 2020, MERCY HAD MORE THAN 10.8 MILLION OUTPATIENT AND PHYSICIAN OFFICE VISITS, APPROXIMATELY 2,400 EMPLOYED PHYSICIANS, AND APPROXIMATELY 44,000 FULL-TIME EQUIVALENT EMPLOYEES, MAKING MERCY THE SIXTH LARGEST CATHOLIC HEALTH SYSTEM IN THE UNITED STATES. MERCY IS SPONSORED BY MERCY HEALTH MINISTRY, WHICH IS GOVERNED BY MEMBERS THAT INCLUDE SISTERS OF MERCY. MANY SERVICES THAT ARE ESSENTIAL TO FULFILLING MERCY'S MISSION ARE CENTRALIZED AT THE MINISTRY OFFICE. SUCH CENTRALIZED SERVICES INCLUDE: FINANCE (INCLUDING TREASURY, FINANCIAL ACCOUNTING AND REPORTING, REVENUE MANAGEMENT, INTERNAL AUDIT, ACCOUNTS PAYABLE AND PAYROLL OPERATIONS, ANALYTICS AND DECISION SUPPORT); ENVIRONMENTAL SERVICES SUPPORT; CLINICAL INTEGRATION; CARE MANAGEMENT; CLINICAL PERFORMANCE ACCELERATION; CLINICAL ENGINEERING; CLINICAL QUALITY MANAGEMENT; COMPLIANCE; GRANTS AND RESEARCH SERVICES; LEGAL AND COMPLIANCE COUNSEL; MARKETING AND COMMUNICATIONS; PLANNING, DESIGN AND CONSTRUCTION; PRODUCT DEVELOPMENT INFORMATICS; REAL ESTATE; SUPPLY CHAIN MANAGEMENT; MANAGED CARE STRATEGY SUPPORT; HUMAN RESOURCES (INCLUDING COMPENSATION, BENEFITS AND RECRUITING); MISSION SERVICES AND ETHICS; PHILANTHROPY SUPPORT; INFORMATION TECHNOLOGY; AND, COMMUNITY RELATIONS. THE CENTRALIZATION OF SUCH SUPPORT SERVICES ENABLES MERCY TO ENSURE THAT EACH OF ITS COMMUNITIES, WHETHER LARGE OR SMALL, HAS THE SERVICES IT NEEDS. FORM 990, SCHEDULE H, PART VI, LINE 7 STATE FILING OF COMMUNITY BENEFIT REPORT: N/A X X true true false true false false false false false false false Swope Jon President-Central Communities 0 739152 0 450654 0 62767 0 153986 0 16361 0 1422920 0 0 Gehrig Ryan CEO & Board Member 0 410420 0 268424 0 15517 0 67134 0 16295 0 777790 0 0 Reynolds Scott CFO - Central Communities 0 392239 0 115012 0 60399 0 98156 0 12269 0 678075 0 0 Marion Tanya Regional VP-Human Resources 0 261390 0 82453 0 36558 0 50235 0 16166 0 446802 0 0 Wilcher Greta VP-Finance 0 205962 0 25239 0 47301 0 31067 0 11929 0 321498 0 0 Hertlein Kimberly Advanced Practice Nurse 171827 0 8468 0 11731 0 8273 0 12028 0 212327 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 1 CHARTER TRAVEL IS PROVIDED TO CERTAIN EMPLOYEES AS AND WHEN APPROPRIATE, AND AS DEEMED NECESSARY FOR BUSINESS TRAVEL. AFTER CHARTER TRAVEL APPROVAL HAS BEEN GRANTED IN ACCORDANCE WITH THE FINANCIAL JUSTIFICATION PROCESS, THE APPROVED CHARTER TRAVEL FOR BUSINESS IS A REIMBURSABLE EXPENSE WHICH IS NOT TAXABLE TO THE EMPLOYEES. ONE LISTED INDIVIDUAL (A KEY EMPLOYEE) RECEIVED THIS BENEFIT DURING THE YEAR. TRAVEL FOR COMPANIONS FOR NONBUSINESS REASONS IS PROVIDED IN CERTAIN INSTANCES AND IN ACCORDANCE WITH THE CO-WORKER TRAVEL AND OTHER EXPENSE POLICY AND PROCEDURES. WHERE COMPANION TRAVEL HAS RESULTED IN A TAXABLE EVENT, THE EMPLOYEES ARE TAXED FOR SUCH TRAVEL. SPOUSAL TRAVEL WAS PROVIDED FOR ONE LISTED INDIVIDUAL (A KEY EMPLOYEE). FORM 990, SCHEDULE J, PART I, QUESTION 3 MERCY HOSPITAL PARIS RELIES ON A RELATED ORGANIZATION; REFER TO SCHEDULE O, PART VI, QUESTION 15A AND 15B FOR THE PROCESS THE RELATED ORGANIZATION FOLLOWS. FORM 990, SCHEDULE J, PART I, QUESTION 4B MERCY HEALTH OFFERS SUPPLEMENTAL RETIREMENT PLANS TO CERTAIN EXECUTIVES WHICH PROVIDE BENEFITS UPON VESTING DATE BASED ON COMPENSATION, AGE AT THE TIME OF BENEFIT COMMENCEMENT, LENGTH OF SERVICE WITH THE COMPANY AND/OR ITS AFFILIATES AND LENGTH OF TENURE IN THE PLAN. THE PLANS ARE CLOSED TO NEW ENTRANTS. THE INDIVIDUALS REPORTABLE ON THIS RETURN WHO PARTICIPATE IN THE SUPPLEMENTAL RETIREMENT PLANS INCLUDE: RYAN GEHRIG, TANYA MARION, SCOTT REYNOLDS, AND JON SWOPE. THE AMOUNT OF ALL ACCRUED BENEFITS IS INCLUDED IN COMPENSATION AMOUNTS PROVIDED IN SCHEDULE J, PART II, COLUMN (C). FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICES THE CRITICAL ACCESS HOSPITAL IS ESSENTIAL TO THE HEALTH OF THE COMMUNITY. THE HOSPITAL OFFERS A WIDE VARIETY OF SERVICES, INCLUDING EMERGENCY SERVICES, ACUTE CARE, SHORT-TERM INPATIENT CARE, AS WELL AS MANY OTHERS THAT CONTRIBUTE TO GOOD HEALTH. THE COMMUNITY NEED IS REPRESENTED BY THE APPROXIMATELY 49,900 VISITS TO MERCY HOSPITAL PARIS. FORM 990, PART V, QUESTION 1A FORM 1099/1096 FILING VENDORS FOR THE FILING ORGANIZATION ARE PAID BY MERCY HEALTH (EIN 43-1423050). AS SUCH, ALL REQUIRED FORM 1099 AND FORM 1096 REPORTING IS MADE FOR THE ENTIRE MERCY HEALTH SYSTEM (WITH LIMITED EXCEPTIONS) UNDER THE MERCY HEALTH EIN. FORM 990, PART V, QUESTION 2A W-3 FILING MOST EMPLOYEES ARE PAID BY A RELATED ORGANIZATION UNDER A COMMON PAYMASTER ARRANGEMENT. AS SUCH, REQUIRED PAYROLL FILING (INCLUDING W-2 AND W-3'S) IS REPORTED UNDER THE RELATED ORGANIZATION, MHM SUPPORT SERVICES, EIN 20-2553101. FORM 990, PART VI, LINE 6A, LINE 7A, 7B CLASSES OF MEMBERS OR STOCKHOLDERS THE FILING ORGANIZATION HAS A SOLE CORPORATE MEMBER, MERCY HOSPITAL FORT SMITH. THE FOLLOWING CORPORATE POWERS AND RESPONSIBILITIES ARE RESERVED SOLELY FOR THE SOLE CORPORATE MEMBER: - ESTABLISH THE PHILOSOPHY ACCORDING TO WHICH THE CORPORATION OPERATES; - APPOINT THE BOARD OF TRUSTEES OF THE CORPORATION; - AMEND THE ARTICLES OF INCORPORATION AND BYLAWS OF THE CORPORATION; - APPROVE THE OPERATING, CAPITAL, AND CONSTRUCTION BUDGETS FOR THE CORPORATION; AND, - APPROVE THE STRATEGIC PLAN, GOALS, AND OBJECTIVES OF THE CORPORATION. ONLY MERCY HEALTH SHALL HAVE THE RIGHT AND DUTY TO: - LEASE, SELL, OR ENCUMBER CORPORATE REAL ESTATE IN EXCESS OF ONE MILLION DOLLARS ($1,000,000), AND, IN ADDITION, TO AUTHORIZE AND APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION, AND, IN CONNECTION THEREWITH, GRANT ALL SECURITY INTERESTS, PLACE ALL ENCUMBRANCES, ENTER INTO ANY COVENANTS, AND EXECUTE ALL DOCUMENTS AND TAKE ALL ACTIONS NECESSARY IN CONNECTION WITH THE INCURRENCE OF SUCH DEBT; AND, - MERGE, DISSOLVE, OR ABANDON THE CORPORATION. FORM 990, PART VI, QUESTION 11B DSCR THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM, USING INFORMATION PROVIDED BY THE FILING ORGANIZATION. A DRAFT FORM 990 IS REVIEWED BY THE FILING ORGANIZATION'S FINANCE TEAM, INCLUDING THE DIRECTOR OF FINANCE AND THE VICE-PRESIDENT OF FINANCE. THE DRAFT FORM 990 IS ALSO REVIEWED BY MERCY HEALTH'S TAX DEPARTMENT, TO ENSURE ACCURACY AND CONSISTENCY WITH OTHER RELATED ORGANIZATIONS' FORMS 990. AFTER QUESTIONS ARISING FROM THE VARIOUS REVIEWS ARE ADDRESSED AND INCORPORATED INTO THE FORM 990, A REVISED DRAFT IS PROVIDED TO THE FILING ORGANIZATION'S LEADERSHIP TEAM, INCLUDING THE CFO AND CEO, FOR REVIEW. ONCE REVIEWED AND APPROVED BY THE FILING ORGANIZATION'S LEADERSHIP TEAM, THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW; IT IS THEN SIGNED AND FILED WITH THE IRS. FORM 990, PART VI, QUESTION 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER DISQUALIFIED PERSONS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY AND DID SO IN THE NORMAL COURSE FOR THE YEAR ENDED JUNE 30, 2020. THIS PROCESS IS ADMINISTERED AT THE MERCY HEALTH LEVEL BY MERCY'S CORPORATE COMPLIANCE DEPARTMENT. THE QUESTIONNAIRES ARE REVIEWED WITH LEADERSHIP AT THE LOCAL LEVEL AND POTENTIAL CONFLICTS DISCUSSED AND RESOLVED. THE CONFLICTS AND THEIR RESPECTIVE RESOLUTIONS ARE SHARED AT THE MERCY LEVEL WITH A TEAM INCLUDING MERCY'S CHIEF FINANCIAL OFFICER, CHIEF COMPLIANCE OFFICER AND OTHER MEMBERS OF FINANCE, LEGAL AND HR. SUMMARY RESULTS ARE REVIEWED WITH MERCY'S STEWARDSHIP COMMITTEE OF THE BOARD OF DIRECTORS. FORM 990, PART VI, QUESTIONS 15A & 15B OFFICERS & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FOR THOSE CLASSIFIED AS OFFICERS (AND THUS DISQUALIFIED PERSONS), THE ORGANIZATION RELIES UPON MERCY HEALTH, WHICH USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT, AND REVIEW/APPROVAL OF COMPENSATION BY THE COMPENSATION COMMITTEE OF THE BOARD OF MERCY HEALTH. FOR THOSE CLASSIFIED AS KEY EMPLOYEES, MERCY HEALTH USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, AND REVIEW/APPROVAL OF EXECUTIVE MANAGEMENT. COMPENSATION REVIEWS ARE COMPLETED ON AN ANNUAL BASIS AND A REVIEW WAS COMPLETED DURING THE REPORTING YEAR. FORM 990, PART VI, QUESTION 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMT TO GEN PUBLIC GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST BUT ARE NOT PUBLISHED PUBLICLY. FORM 990, PART VIII IMPACT OF COVID-19 PANDEMIC EARLY IN 2020, THE MERCY HEALTH SYSTEM WAS CALLED TO SERVE AS THE COVID-19 PANDEMIC SWEPT ACROSS THE WORLD. THIS CONTINUES TO BE A DIFFICULT TIME FOR ALL HEALTHCARE PROVIDERS. ALL MERCY FACILITIES ADJUSTED OPERATIONS FOR THE IMPACTS OF THE PANDEMIC WHICH MEANT MAKING CHANGES TO PATIENT CARE AREAS AND CANCELLING MOST OF OUR OUTPATIENT PROCEDURES FOR PERIODS OF TIME. IN ADDITION, MERCY FOUNDATIONS AND OUTREACH MINISTRIES EXPERIENCED LIMITATIONS IN FUNDRAISING FOR PROGRAM AND CAPITAL SUPPORT EFFORTS THAT ASSIST THE UNDERSERVED IN OUR COMMUNITIES. MERCYS TOTAL SYSTEM NET PATIENT REVENUES WERE REDUCED BY OVER $550 MILLION DOLLARS DURING THE FOUR MONTHS ENDING JUNE 30, 2020, AND THIS FIGURE DOES NOT INCLUDE THE IMPACT OF ANY CORONAVIRUS AID RELIEF AND ECONOMIC SECURITY ACT ("CARES ACT") FUNDING. MERCY RECEIVED CARES ACT FUNDING ACROSS VARIOUS ENTITIES FOR THE YEAR ENDED JUNE 30, 2020 AND RECOGNIZED A PORTION OF THIS FUNDING IN OTHER OPERATING REVENUE. THESE FUNDS HELPED TO OFFSET REVENUE LOSSES AND ADDITIONAL EXPENSES INCURRED DUE TO THE PANDEMIC; HOWEVER, THESE FUNDS FELL SHORT OF THE SYSTEM LOSSES EXPERIENCED IN THESE MONTHS DUE TO THE PANDEMIC. THE IMPACT OF COVID-19 WAS SIGNIFICANT TO OUR COMMUNITIES AND COWORKERS AS UNEMPLOYMENT RATES SOARED AND MERCY ACTED QUICKLY TO PROVIDE CONTINUOUS CARE TO PATIENTS AND THE COMMUNITY. MERCY CONTINUES TO MONITOR THE IMPACTS OF THE PANDEMIC BOTH TO THE HEALTH SYSTEM AND THE COMMUNITIES SERVED AS WE CONTINUE TO PROVIDE ASSISTANCE AND MAINTAIN ACCESS TO CARE WITHIN OUR COMMUNITIES. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS NET TRANSFERS TO/FROM AFFILIATES ($1,584,091) EMPLOYEE CRISIS FUND $6,781 TOTAL ($1,577,310) FORM 990, PART XII, QUESTION 2C AUDIT OF FINANCIAL STATEMENTS THE FILING ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED IN MERCY HEALTH AND SUBSIDIARIES ANNUAL FINANCIAL STATEMENT AUDIT. MERCY HEALTH AND SUBSIDIARIES RECEIVED AN UNQUALIFIED OPINION FROM THE EXTERNAL AUDITORS FOR FISCAL 2020 (THE TAX YEAR CURRENTLY BEING REPORTED). HOWEVER, NO SEPARATE AUDIT OPINION WAS ISSUED ON THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION. THE ULTIMATE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE EXTERNAL AUDITOR LIES WITH THE STEWARDSHIP COMMITTEE OF THE MERCY HEALTH BOARD OF DIRECTORS. AUDIT RESULTS ARE COMMUNICATED TO THIS COMMITTEE. FORM 990, PART XII, QUESTION 3A AND 3B SINGLE AUDIT ACT AND 2 CFR 200 AUDIT MERCY HEALTH UNDERGOES A CONSOLIDATED 2 CFR 200 AUDIT EVERY YEAR. THIS AUDIT IS UNDERWAY FOR THE FISCAL YEAR ENDING JUNE 30, 2020 AND WILL BE COMPLETED BY JUNE 30, 2021. EACH ENTITY THAT RECEIVES FEDERAL FUNDS DURING THE YEAR IS INCLUDED ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) AND IS ALSO INCLUDED IN THE POPULATION INCLUDED IN THE AUDIT. IF THE FILING ENTITY RECEIVED FEDERAL FUNDS DURING THE YEAR ENDED JUNE 30, 2020, IT WILL BE INCLUDED ON THE MERCY HEALTH CONSOLIDATED SEFA, AND THEREFORE, ALSO INCLUDED IN THE POPULATION INCLUDED IN THE AUDIT. Casa de Misericordia 1000 Mier Street Laredo TX 78040 742912461 SHELTER TX 501c3 7 MM LAREDO true McAuley Portfolio Management Company 14528 S Outer Forty Suite 100 Chesterfield MO 63017 261708048 PORT MGMT MO 501c3 12b Mercy Health true Mercy ACO Clinical Services Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 464504901 VIRTUAL CARE MO 501c3 3 Mercy Health true Mercy Clinic East Communities 645 MARYVILLE CTR DR STE 100 St Louis MO 63141 431771217 PHYS GROUP MO 501c3 10 MH EAST COMM true Mercy Clinic Fort Smith Communities 7301 Rogers Avenue Fort Smith AR 72903 261318597 PHYS CLINIC AR 501c3 3 MH FS COMM true Mercy Clinic Oklahoma Communities Inc 4300 W Memorial Road Oklahoma City OK 73120 270473057 PHYS GROUP OK 501c3 3 MH OK COMM true Mercy Clinic Springfield Communities 1965 Fremont Street Suite 2950 Springfield MO 65804 431560263 PHYS GROUP MO 501c3 3 MH SF COMM true Mercy Family Center 14528 S Outer Forty Suite 100 Chesterfield MO 63017 721069468 COUNSELING LA 501c3 7 Mercy Health true Mercy Health 14528 S Outer Forty Suite 100 Chesterfield MO 63017 431423050 CORP OFFICE MO 501c3 1 NA false Mercy Health East Communities 14528 S Outer Forty Suite 100 Chesterfield MO 63017 431718408 HLTH SYSTEM MO 501c3 12a Mercy Health true Mercy Health Fort Smith Communities 7301 Rogers Avenue Fort Smith AR 72917 261318515 Holding Co AR 501c3 12b Mercy Health true Mercy Health Foundation 14528 S Outer Forty Suite 100 Chesterfield MO 63017 200901499 Foundation MO 501c3 12b Mercy Health true Mercy Health Foundation Ada 430 N Monte Vista Street Ada OK 74820 463596274 Foundation OK 501c3 12a MH ADA Inc true Mercy Health Foundation Ardmore 1011 14th Avenue NW Ardmore OK 73401 710962525 Foundation OK 501c3 12a MH ARDMORE true Mercy Health Foundation Berryville 214 Carter Street Berryville AR 72616 710759301 Foundation AR 501c3 12a MH BERRYVILL true Mercy Health Foundation Fort Scott 401 Woodland Hills Blvd Fort Scott KS 66701 481077073 Foundation KS 501c3 7 M KS COMM true Mercy Health Foundation Fort Smith 7301 Rogers Avenue Fort Smith AR 72917 237330425 Foundation AR 501c3 7 MH FS COMM true Mercy Health Foundation Jefferson 1400 US Highway 61 South Festus MO 63028 462797051 Foundation MO 501c3 12b MH JEFFERSON true Mercy Health Foundation Joplin 100 Mercy Way Joplin MO 64804 270906136 Foundation MO 501c3 7 MH SW MOKS true Mercy Health Foundation Lebanon 100 Hospital Drive Lebanon MO 65536 822514567 Foundation MO 501c3 12b MH LEBANON true Mercy Health Foundation Lincoln 1000 East Cherry Street Troy MO 63379 811477159 Foundation MO 501c3 12b MH EAST COMM true Mercy Health Foundation Nw Arkansas 2710 Rife Medical Lane Rogers AR 72758 710601687 Foundation AR 501c3 7 MH ROGERS true Mercy Health Foundation of Oklahoma 4300 W Memorial Road Oklahoma City OK 73120 454732301 Foundation OK 501c3 12a MH OK COMM true Mercy Health Foundation Oklahoma City 4300 W Memorial Road Oklahoma City OK 73120 463184231 Foundation OK 501c3 12a MH OK City true Mercy Health Foundation Springfield 1235 E Cherokee Street Springfield MO 65804 320195818 Foundation MO 501c3 12b MH SF COMM true Mercy Health Foundation St Francis 100 W Highway 60 Mountain View MO 65548 431873914 Foundation MO 501c3 12a M St Francis true Mercy Health Foundation St Louis 14528 S Outer Forty Suite 100 Chesterfield MO 63017 562410020 Foundation MO 501c3 12b MH EAST COMM true Mercy Health Foundation Washington 901 E Fifth Street Washington MO 63090 562410022 Foundation MO 501c3 12b MH EAST COMM true Mercy Health NW Arkansas Communities 2710 Rife Medical Lane Rogers AR 72758 621684203 PHYS GROUP AR 501c3 10 Mercy Health true Mercy Health Oklahoma Communities Inc 4300 W Memorial Road Oklahoma City OK 73120 731453048 HLTH SYSTEM OK 501c3 12a Mercy Health true Mercy Health Plans of Missouri Inc 3265 S National Avenue Springfield MO 65807 320481419 HMO MO 501c4 N/A Mercy Health true Mercy Health Plans Inc 3265 S National Avenue Springfield MO 65807 320486150 PPO MO 501c4 N/A MH PLANS MO true Mercy Health SW MOKS Communities 100 Mercy Way Joplin MO 64804 300584463 HLTH SYSTEM MO 501c3 12b Mercy Health true Mercy Health Springfield Communities 1235 E Cherokee Street Springfield MO 65804 431856028 HLTH SYSTEM MO 501c3 12b Mercy Health true Mercy Home Health Berryville 804 W Freeman Suite 4 Berryville AR 72616 870781247 Inactive AR 501c3 12a MH SPRINGFLD true Mercy Hospital Ada Inc 430 N Monte Vista Street Ada OK 74820 462288155 Hospital OK 501c3 3 MH OK COMM true Mercy Hospital Ardmore Inc 1011 14th Avenue NW Ardmore OK 73401 731500629 Hospital OK 501c3 3 MH OK COMM true Mercy Hospital Aurora 500 Porter Avenue Aurora MO 65605 431936696 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Berryville 214 Carter Street Berryville AR 72616 710759299 Hospital AR 501c3 3 MH NW AK COM true Mercy Hospital Booneville 880 West Main Street Booneville AR 72927 463851119 Hospital AR 501c3 3 MH FT SMITH true Mercy Hospital Carthage 3125 Dr Russell Smith Way Carthage MO 64836 453808607 Hospital MO 501c3 3 MH SW MOKS true Mercy Hospital Cassville 94 Main Street Cassville MO 65625 431936699 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Columbus 220 Pennsylvania Avenue Columbus KS 66725 270842031 Hospital KS 501c3 3 MH SW MOKS true Mercy Hospital El Reno Inc 2115 Parkview Drive El Reno OK 73036 272716065 Hospital OK 501c3 3 MH OK City true Mercy Hospital Fort Smith 7301 Rogers Avenue Fort Smith AR 72903 710240352 Hospital AR 501c3 3 MH FS COMM true Mercy Hospital Healdton Inc 3462 Hospital Rd Healdton OK 73438 263173902 Hospital OK 501c3 3 MH ARDMORE true Mercy Hospital Jefferson 1400 Highway 61 South Festus MO 63028 430687077 Hospital MO 501c3 3 MH EAST COMM true Mercy Hospital Joplin 100 Mercy Way Joplin MO 64804 270814858 Hospital MO 501c3 3 MH SW MOKS true Mercy Hospital Kingfisher Inc 1000 Kingfisher Regional Hospital C Kingfisher OK 73750 463433074 Hospital OK 501c3 3 MH OK City true Mercy Hospital Lebanon 100 Hospital Drive Lebanon MO 65536 431767432 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Lincoln 1000 East Cherry Street Troy MO 63379 472219204 Hospital MO 501c3 3 MH EAST COMM true Mercy Hospital Logan County Inc 200 South Academy Guthrie OK 73044 452998842 Hospital OK 501c3 3 MH OK City true Mercy Hospital Oklahoma City Inc 4300 W Memorial Road Oklahoma City OK 73120 730579285 Hospital OK 501c3 3 MH OK COMM true Mercy Hospital Ozark 801 W River Street Ozark AR 72949 710689680 Hospital AR 501c3 3 MH FT Smith true Mercy Hospital Rogers 2710 Rife Medical Lane Rogers AR 72758 710294390 Hospital AR 501c3 3 MH NW AK COM true Mercy Hospital Springfield 1235 E Cherokee Street Springfield MO 65804 440552485 Hospital MO 501c3 3 MH SF COMM true Mercy Hospital Tishomingo Inc 1000 South Byrd Tishomingo OK 73460 274433830 Hospital OK 501c3 3 MH ADA Inc true Mercy Hospital Waldron 1341 W 6th Street Waldron AR 72958 710557895 Hospital AR 501c3 3 MH FT Smith true Mercy Hospital Watonga Inc 500 Clarence Nash Blvd Watonga OK 73772 455199762 Hospital OK 501c3 3 MH OK City true Mercy Hospitals East Communities 615 S New Ballas Road St Louis MO 63141 430653493 Hospital MO 501c3 3 MH EAST COMM true Mercy Kansas Communities Inc 401 Woodland Hills Blvd Ft Scott KS 66701 480956045 Hospital KS 501c3 3 MH SW MOKS true Mercy Ministries of Laredo 2500 Zacatecas Laredo TX 78046 200198462 Outreach TX 501c3 7 Mercy Health true Mercy Research 524 North Booneville Avenue Springfield MO 65802 870796305 Research MO 501c3 4 Mercy Health true Mercy St Francis Hospital 100 W Highway 60 Mountain View MO 65548 440607149 Hospital MO 501c3 3 MH SF COMM true MHM Support Services 14528 S Outer Forty Suite 100 Chesterfield MO 63017 202553101 CTRL SYS FUNC MO 501c3 12a Mercy Health true Mission Clinical Services 300 Werner Street Hot Springs AR 71913 134239691 CHILD ADVOC AR 501c3 3 Mercy Health true Mercy Health Foundation South 10010 Kennerly Road St Louis MO 63128 261516789 Fundraising MO 501c3 12a MH SOUTH true Mercy Hospital South 10010 Kennerly Road St Louis MO 63128 430980256 Hospital MO 501c3 3 MH EAST COMM true St Anthony's Physician Organization 10010 Kennerly Road St Louis MO 63128 431784536 Health care MO 501c3 3 MH SOUTH true St Mary's Hospital of Enid Oklahoma Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 730614655 Inactive OK 501c3 3 MH OK COMM true Unity Ambulatory Care 14528 S Outer Forty Suite 100 Chesterfield MO 63017 431861745 Inactive MO 501c3 12c MH EAST COMM true Mercy Specialty Hospital SE KS 14528 S Outer Forty Suite 100 Chesterfield MO 63017 843730625 Hospital KS 501C3 3 MH SW MOKS true Fort Smith Emergency Medical Services 1701 S Greenwood FT SMITH AR 72901 710416615 Emergency Medical AR NA Mercy Ambulatory Surgery Center LLC 7301 Rogers FT SMITH AR 72917 710827721 AMBUL SURG CT AR NA Plaza Surgery Services Company LLC 12700 Southfork RD St Louis MO 63128 204709312 INACTIVE MO NA Resource Optimization & Innovation LLC 645 Maryville St Louis MO 63141 460468368 CENTRAL DIST. MO NA St Edward Mercy Med Ctr Multi-Purp BLDG 7301 Rogers FT SMITH AR 72903 710554050 OFFICE BUILDING AR NA Platinum CPS Holdings LLC 14528 S OUTER FORTY SUITE 100 CHESTERFIELD MO 63017 842493007 HOLDING COMPANY MO NA Frontenac Properties Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 521914421 Holding co DE NA C-Corp Inveno Health Inc 1235 E Cherokee Street Springfield MO 65804 264509571 Product Commerce MO NA C-Corp Mercy Commercial Services Inc 14528 South Outer Forty Suite 100 Chesterfield MO 63017 464953543 PARENT OF VCC MO NA C-Corp Mercy Health Center Condominium Inc 4300 W Memorial Rd Oklahoma City OK 73120 680640970 Real estate OK NA C-Corp Mercy Health Network of the Southern Reg 14528 S Outer Forty Suite 100 Chesterfield MO 63017 731580607 HOLDING CO OK NA C-Corp Mercy Health Network Inc 14528 S Outer Forty Suite 100 Chesterfield MO 63017 731381689 HOLDING CO OK NA C-Corp Mercy Managed Care Corporation 14528 S Outer Forty Suite 100 Chesterfield MO 63017 731441665 HOLDING CO OK NA C-Corp UHL Corp Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 742499535 Holding co MO NA C-Corp Unity Support Services Inc 645 Maryville Centre Drive Suite 1 St Louis MO 63141 431797042 Inactive MO NA C-Corp St Anthony's Physician Org of Illinois 10010 Kennerly Road St Louis MO 63128 320457168 Health Care MO NA C-Corp McAuley Insurance Company Ltd Aon House 30 Woodbourne Avenue Pembroke BD HM 08 000000000 INACTIVE BD NA C-CORP false false false false false false false false false false false false false false false true true false false MERCY ACO CLINICAL SERVICES Q 79436 FMV MERCY HOSPITAL FORT SMITH Q 140566 FMV MHM SUPPORT SERVICES Q 2189631 FMV Form 990, Schedule R, Part II MERCY HOSPITALS EAST COMMUNITIES MERCY HOSPITALS EAST COMMUNITIES CONSISTS OF MERCY HOSPITAL ST. LOUIS, EIN 43-0653493, AND MERCY HOSPITAL WASHINGTON, EIN 43-1066883. Form 990, Schedule R, Part V LAWSON ERP SOFTWARE IS THE PRIMARY ACCOUNTING SOFTWARE USED BY MERCY HEALTH SYSTEM, INC. AND SUBSIDIARIES. THE MAJORITY OF THE INTERCOMPANY/RELATED ORGANIZATION TRANSACTIONS ARE PROCESSED THROUGH LAWSON VIA INTERCOMPANY JOURNAL ENTRIES. WITH THE CURRENT DESIGN OF THE ERP SYSTEM, THERE ARE VARIOUS LIMITATIONS ON THE RELATED ORGANIZATION INFORMATION THAT CAN BE EXTRACTED FROM LAWSON. DUE TO THESE LIMITATIONS, MOST OF THE RELATED ORGANIZATION ACTIVITY FOR THE FILING ORGANIZATION HAS BEEN CLASSIFIED ON SCHEDULE R, PART V, IN LINES P AND Q.