2021-05-14T14:42:42-05:00 2020-06-30 ERNST & YOUNG US LLP 221 E 4TH ST STE 2900 CINCINNATTI OH 45202 990 2019-07-01 431936696 MERCY HOSPITAL AURORA % SHERRY CLOUSE DAY MERC 3145796100 500 Porter Ave Aurora MO 65605 CRAIG MCCOY PRES - SPRNGFLD COMM 3145796100 2021-05-14 true ABBEY E LEIBEL P01517527 5136121400 2021-05-07 2019 2022-09-23 18:48:47Z CRAIG MCCOY 500 PORTER AVE Aurora MO 65605 22414118 false 0928 X www.mercy.net X 2001 MO AS THE SISTERS OF MERCY BEFORE US, WE BRING TO LIFE THE HEALING MINISTRY OF JESUS THROUGH OUR COMPASSIONATE CARE AND EXCEPTIONAL SERVICE. 12 8 0 61 0 0 46316 110062 24731009 22195007 -10307 520 124764 108243 24891782 22413832 11492 15548 0 0 11380214 11102900 0 0 0 11496027 9147134 22887733 20265582 2004049 2148250 6663723 6487211 1447336 1606002 5216387 4881209 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 18632681 15548 22195007 MERCY HEALTH SPRINGFIELD COMMUNITIES AND ITS SUBSIDIARIES PROVIDE HIGH-QUALITY, COMPASSIONATE, FAITH-BASED HEALTH CARE IN A VARIETY OF TRADITIONAL MEDICAL SETTINGS. THIS ORGANIZATION PROVIDES SERVICES TO THE COMMUNITIES WE SERVE, WITH PARTICULAR CONCERN FOR THE ECONOMICALLY POOR, IN THE WAY OF INPATIENT HOSPITAL SERVICES, OUTPATIENT SERVICES, EMERGENCY ROOM CARE, HOME HEALTH SERVICES, AND PHYSICIAN CLINIC OFFICE VISITS. 18632681 true true false true false false false false false false true false false true false false false true false false false false false false false false true true false true 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 8 false false false false true true true true true false false false true true true true true false false false X SHERRY CLOUSE DAY 4178203400 3265 NATIONAL AVENUE SPRINGFIELD MO 65807 Swope Jon Pres - Ctrl Comm thru 5/20 2.0 58.0 X 0 1252573 170347 Scarrow MD Alan Pres. Sprg Comm thru 9/17 0.0 60.0 X 0 1000803 38651 Barbe MD David O Physician & Board Member 10.0 50.0 X 0 966335 60198 Hannasch Susan Regional VP - General Counsel 4.0 56.0 X 0 731691 20345 Reynolds Scott CFO - Ctrl Comm Thru 5/20 2.0 58.0 X 0 567650 110425 Marion Tanya Regional VP - Human Resources 3.0 57.0 X 0 380401 66401 Adewumi Olumide Physician & Board Member 1.0 59.0 X 0 317589 25246 Davison Justin VP Finance thru 11/19 5.0 55.0 X 0 289019 22931 Clouse Day Sherry VP-Finance 10.0 50.0 X 0 279780 27696 Hawks Travis Physician & Board Member 1.0 0.0 X 0 253238 25732 Vincent Jenine VP-Operations & Board Member 10.0 50.0 X X 0 244459 15071 Meredith Darrell E CRNA - Nurse Anesthetist 60.0 0.0 X 207535 0 26124 Small Susanne K Nurse Anesthetist 59.0 1.0 X 182793 0 22779 Layman Tracy Director, Pharmacy Services 60.0 0.0 X 163685 0 17638 Gamet Nicki Director of Nursing & BD MB 60.0 0.0 X 143585 0 22624 Kahre Steven Board Member 1.0 1.0 X 0 0 0 Koelsch RSM Sr Cabrini Board Member 1.0 3.0 X 0 0 0 Lecompte Jill Board Member 1.0 1.0 X 0 0 0 Lee John Paul Board Member 1.0 1.0 X 0 0 0 Redus Billy Board Member 1.0 0.0 X 0 0 0 Shiveley Bill Board Member 1.0 1.0 X 0 0 0 Boxx Amy Board Member 1.0 1.0 X 0 0 0 Boyer Rick Board Member 1.0 0.0 X 0 0 0 McCoy Craig PRES - SPRNGFLD COMM BEG 01/20 1.0 59.0 X 0 0 0 697598 6283538 672208 4 true true false MEDICAL PARTNERS OF AURORA 4180 LAWRENCE 2240 PIERCE CITY MO 65723 HOSPITALIST SERVICES 758597 SNYDER CONSTRUCTION CO 4820 N TOWNE CENTRE DR OZARK MO 65721 CONSTRUCTION SVCS 442817 AMN HEALTHCARE INC 2735 COLLECTION CENTER DRIVE CHICAGO IL 606932735 PHYSICIAN SERVICES 254224 FUSION HEALTHCARE STAFFING LLC PO BOX 202056 DALLAS TX 753202056 PHYSICIAN SERVICES 109023 4 7665 4593 8397 89407 5538 110062 NET PATIENT SERVICE REVENUE 621110 20674018 20674018 OTHER OPERATING REVENUE 531120 1520989 1520989 22195007 520 520 0 0 3700 3700 0 3700 3700 0 0 7665 286 -286 -286 0 0 0 0 0 0 CAFE AND VENDING 900099 104829 104829 104829 22413832 22195007 108763 8548 8548 7000 7000 0 0 166209 161910 4299 0 8957068 8725380 231688 0 197709 192595 5114 0 1164648 1134523 30125 0 617266 601299 15967 0 0 0 0 10782 10782 0 0 0 1009962 1007958 2004 3381 2705 676 0 313337 309156 4181 0 0 0 245580 240802 4778 0 50835 50137 698 0 0 0 0 0 522589 521128 1461 184057 147246 36811 BAD DEBT EXPENSE 3543397 3543397 SHARED SERVICE FEES 2035539 895637 1139902 DRUGS AND MEDICAL EXPENSES 989193 989193 REPAIRS AND MAINTENANCE 158974 22019 136955 79508 72048 7460 20265582 18632681 1632901 0 345865 413129 0 0 0 0 2420907 1819413 0 0 0 0 86643 86643 94701 93089 13396 14220 14671976 11512566 3611208 3159410 0 0 91003 90978 0 0 0 0 0 810329 6663723 6487211 1402323 1606002 0 0 0 0 0 0 0 0 0 0 0 0 0 0 45013 0 1447336 1606002 X 5001664 4609381 214723 271828 5216387 4881209 6663723 6487211 X 2148250 -26 -2483402 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 10782 10782 false FORM 990, SCHEDULE C, PART II-B, LINE 1(I) LOBBYING PORTION OF DUES THE FILING ORGANIZATION IS A MEMBER OF AND PAYS DUES TO THE FOLLOWING HOSPITAL ASSOCIATIONS: MISSOURI HOSPITAL ASSOCIATION AND AMERICAN HOSPITAL ASSOCIATION. FOR THE YEAR ENDED JUNE 30, 2020, DUES WERE $18,476 AND $5,434, RESPECTIVELY. APPROXIMATELY 51.50% OF MISSOURI HOSPITAL ASSOCIATION DUES AND 23.32% OF AMERICAN HOSPITAL ASSOCIATION DUES WERE ATTRIBUTABLE TO LOBBYING ACTIVITIES PERFORMED BY THESE ASSOCIATIONS. 43591 43591 8293869 6041246 2252623 6334516 5471320 863196 0 3159410 DUE FROM AFFILIATES 810329 810329 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 1688604 1688604 0.10100 3478090 3632390 0.00000 5166694 3632390 1688604 0.10100 3 112 2118 2118 0.00010 4 627 27820 27820 0.00170 7 739 29938 29938 0.00180 7 739 5196632 3632390 1718542 0.10280 683 683 683 683 true 1140495 3374820 3444963 -70143 X true true 1 1 MERCY HOSPITAL AURORA 500 PORTER AVENUE AURORA MO 65605 www.mercy.net 469-15 X X X X MERCY HOSPITAL AURORA 1 true false true X X X X X X X X X 18 true true true true X SEE PART V, SECTION C 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 5 THE HOSPITAL GATHERED DATA FOR ITS COMMUNITY HEALTH NEEDS ASSESSMENT BY SENDING OUT A COMMUNITY WIDE SURVEY FROM 12/1/2018 THROUGH 3/1/2019. IN THE MOST RECENT CHNA, MERCY HOSPITAL AURORA DID TAKE INTO ACCOUNT INPUT FROM PERSONS WHO REPRESENT THE BROAD INTERESTS OF THE COMMUNITY SERVED BY THE HOSPITAL FACILITY, INCLUDING THOSE WITH SPECIAL KNOWLEDGE OF OR EXPERTISE IN PUBLIC HEALTH. MERCY HOSPITAL AURORA HOSTED SEVERAL ROUND TABLE EVENTS IN WHICH LOCAL PUBLIC HEALTH, BEHAVIORAL HEALTH, AND AREA NONPROFIT LEADERS REPRESENTING HEALTH-RELATED SERVICES WERE INVITED TO PARTICIPATE IN COMPREHENSIVE CONVERSATIONS WITH MERCY HOSPITAL AURORA ABOUT OUR COMMUNITY HEALTH NEEDS, RESOURCE GAPS AND OPPORTUNITIES TO COLLABORATE AND IMPROVE OUR COMMUNITYS HEALTH AND INCREASE ACCESS TO SERVICES. THE PRIORITIES FOR EACH COMMUNITY EMERGED AS A RESULT OF DATA AND FEEDBACK COLLECTION FROM A VARIETY OF SOURCES INCLUDING: -A SURVEY OPEN TO MEMBERS OF THE PUBLIC AND PARTNER AGENCIES IN ALL COMMUNITIES; -SECONDARY DATA COLLECTED FROM COMMUNITYCOMMONS.ORG AND OTHER SOURCES; -FOCUS GROUPS TARGETING UNDERSERVED, CHRONICALLY ILL AND LOW-INCOME POPULATIONS IN EACH COMMUNITY; AND; -EMERGENCY DEPARTMENT DATA FROM HOSPITAL PARTNERS. THESE SOURCES WERE COMBINED AND COMPARED TO DEVELOP COMMUNITY PRIORITIES WHICH WEIGHED MORBIDITY, MORTALITY AND A VARIETY OF OTHER FACTORS. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 6A THE CHNA WAS CONDUCTED IN CONJUNCTION WITH THE FOLLOWING HOSPITAL FACILITIES: MERCY ST. FRANCIS HOSPITAL, MERCY HOSPITAL SPRINGFIELD, MERCY HOSPITAL LEBANON, MERCY HOSPITAL CASSVILLE, CITIZENS MEMORIAL HEALTHCARE, COXHEALTH, FREEMAN HEALTH SYSTEM AND POLK COUNTY HEALTH CENTER. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 6B THE CHNA WAS CONDUCTED IN CONJUNCTION WITH THE FOLLOWING NON-HOSPITAL FACILITIES: BURRELL BEHAVIORAL HEALTH, JASPER COUNTY HEALTH DEPARTMENT, JOPLIN HEALTH DEPARTMENT, SPRINGFIELD-GREEN COUNTY HEALTH DEPARTMENT AND TANEY COUNTY HEALTH DEPARTMENT. FORM 990, SCHEDULE H, PART V, SECTION B, LINE 7A https://www.mercy.net/content/dam/mercy/en/pdf/chna/Monett-CHNA-2019.pdf FORM 990, SCHEDULE H, PART V, SECTION B, LINE 7B http://ozarkshealthcommission.org/wp-content/2019/Full%20Reports/Springfie ld%20Community.pdf FORM 990, SCHEDULE H, PART V, SECTION B, LINE 10A https://www.mercy.net/content/dam/mercy/en/pdf/chip/mercy-aurora-chip-2019 .pdf FORM 990, SCHEDULE H, PART V, SECTION B, LINE 11 MERCY HOSPITAL AURORA IS ADDRESSING THE SIGNIFICANT NEEDS IDENTIFIED IN ITS MOST RECENTLY CONDUCTED CHNA BY FOCUSING PROGRAMMING, SERVICES AND EDUCATION OR AWARENESS AROUND: (1) REDUCE THE INCIDENCE OF CARDIOVASCULAR DISEASE (2) REDUCE THE INCIDENCE OF LUNG DISEASE (3) AWARENESS OF MENTAL HEALTH ISSUES. THE FIRST IDENTIFIED NEED OR PRIORITY IS TO REDUCE THE INCIDENCE OF CARDIOVASCULAR DISEASE (1) INCREASING THE NUMBER OF UNINSURED ADULTS WHO ARE MANAGING THEIR HIGH BLOOD PRESSURE OR HYPERTENSION BY FINDING THEM PRIMARY HEALTH CARE. (2) INCREASING THE AMOUNT OF ADULTS EDUCATED ABOUT RISK FACTORS FOR CARDIOVASCULAR DISEASE. THE SECOND IDENTIFIED NEED OR PRIORITY IS TO REDUCE THE INCIDENCE OF LUNG DISEASE. MERCY AURORA ADOPTED IMPLEMENTATION STRATEGIES FOR (1) INCREASING THE AMOUNT OF ADULTS EDUCATED ABOUT SYMPTOMS OF MILD OR UNDIAGNOSED LUNG DISEASE. (2) ENCOURAGE BREAST FEEDING AFTER DELIVERY TO DECREASE LUNG DISEASE IN CHILDREN. (3) PROMOTE EVIDENCE BASED CARE TO MANAGE CHRONIC DISEASE. THE THIRD IDENTIFIED NEED OR PRIORITY IS TO INCREASE AWARENESS FOR MENTAL HEALTH ISSUES. MERCY AURORA ADOPTED IMPLEMENTATION STRATEGIES FOR (1) PROVIDE COMMUNITY EDUCATION ON SUBSTANCE ABUSE. (2) PROVIDE EDUCATION TO THE COMMUNITY REGARDING RESOURCES IN THE GEOGRAPHIC AREA THAT ASSIST WITH MENTAL AND BEHAVIORAL HEALTH ISSUE. FOR ALL OF THESE IDENTIFIED NEEDS AND PRIORITIES, MERCY AURORA CONTINUES TO WORK CLOSELY WITH ITS LOCAL PUBLIC SCHOOL SYSTEM, NONPROFIT ORGANIZATIONS, THE CHAMBER OF COMMERCE, AND PUBLIC OFFICIALS TO ENSURE WE ARE COLLABORATIVELY ADDRESSING THE NEEDS OF OUR COMMUNITY IN A MEASURABLE WAY. MERCY AURORA REMAINS ACTIVELY ENGAGED IN ITS REPRESENTATION ON THE HEALTH COMMISSION AS A WAY TO STAY ATTACHED TO KEY LEADERS IN OUR COMMUNITY AIMING TO ACHIEVE SIMILAR WORK AND OUTCOMES, PARTICULARLY FOR PATIENTS AND OUR VULNERABLE POPULATIONS. THREE HEALTH ISSUES IDENTIFIED - DIABETES, CANCER, AND SUBSTANCE ABUSE - WERE NOT CHOSEN AS PRIORITY FOCUS AREAS DUE TO MERCYS CURRENT LACK OF RESOURCES AVAILABLE TO ADDRESS THESE NEEDS AND THE INTENTION TO FOCUS ON THE THREE PRIORITIZED HEALTH 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 HEART DISEASE IN THE COMMUNITY MAY ALSO REDUCE THE INCIDENCE OF DIABETES. MERCY AURORA WILL CONSIDER FOCUSING ON THESE ISSUES SHOULD RESOURCES BECOME AVAILABLE. UNTIL THEN, MERCY AURORA WILL SUPPORT, AS ABLE, THE EFFORTS OF PARTNER AGENCIES AND ORGANIZATIONS CURRENTLY WORKING TO ADDRESS THESE NEEDS WITHIN THE COMMUNITY. PART 990, SCHEDULE H, PART V, SECTION B, LINE 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-visitors/billing/financial-assistance/ 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 $20,265,868. INCLUDED IN THIS AMOUNT WAS BAD DEBT EXPENSE (CHARGES) OF $3,543,397. EXPENSES FOR THE PURPOSE OF CALCULATING LINE 7, COLUMN (F) ARE $16,722,471. Form 990, Schedule H, Part II COMMUNITY BUILDING ACTIVITIES WORK TOWARD IMPROVING THE HEALTH, WELLNESS AND SAFETY OF THE COMMUNITY. COMMUNITY SUPPORT ACTIVITIES PROMOTE THE HEALTH OF THE COMMUNITIES THEY SERVE THROUGH THEIR PARTICIPATION IN COMMUNITY-BASED EVENTS, MEETINGS (INCLUDING PARTICIPATION IN HEALTH CARE EDUCATION EVENTS AT LOCAL SCHOOLS) AND BY SERVING ON COMMUNITY BOARDS. MERCY HOSPITAL AURORA PARTICIPATED IN COMMUNITY SUPPORT ACTIVITIES. 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 ACCOUNTING, 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 ELIGIBILITY 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 HOSPITAL AURORA 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, IRREGARDLESS 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 EVALUTION OF ALL BAD DEBT ACCOUNTS BILLED IN THE LAST 240 DAYS THAT MET NEW PRESUMPTIVE CRITIERA 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 HOSPITAL AURORA BELIEVES THAT ITS COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS IS COMPREHENSIVE ENOUGH TO CAPTURE SUBSTANTIALLY ALL OF THE COMMUNITYS NEEDS. MERCY HOSPITAL AURORA MEASURES ALL COMMUNITY HEALTH INDICATORS AS SET FORTH BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION, AND MEASURES ALL UTILIZATION ACTIVITY (PARTICULARLY FOR VULNERABLE POPULATIONS) TO FIRST UNDERSTAND THE STATUS OF THE COMMUNITYS HEALTH ON AN ANNUAL BASIS. BASED ON THESE FINDINGS, MERCY REFINES ITS IMPLEMENTATION STRATEGIES TO MEET THE NEEDS OF THE COMMUNITY AND MONITORS PROGRESS THROUGH A COMMUNITY BENEFIT COMMITTEE OF THE BOARD OF DIRECTORS. THE DIRECTOR OF COMMUNITY BENEFIT ALSO SERVES ON A COMMUNITY HEALTH COLLABORATION BOARD WITH OTHER AREA NONPROFIT HEALTH SYSTEM AND ORGANIZATIONAL LEADERS TO MAKE SURE OUR UNDERSTANDING OF COMMUNITY NEEDS ARE CORRECT AND TO DEVELOP ALIGNED STRATEGIES TO ASSESS THE HEALTH CARE NEEDS OF THE COMMUNITIES AND SUBSEQUENT IMPROVEMENT STRATEGIES. 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 AURORA INCLUDES BARRY AND LAWRENCE COUNTIES IN MISSOURI. THE FOLLOWING INFORMATION IS DERIVED FROM 2019 IBM/WATSON'S DEMOGRAPHICS. THE AREA'S POPULATION IS 79,322. 22% OF THE POPULATION'S AVERAGE HOUSEHOLD INCOME IS OVER $75,000. 47% OF THE POPULATION IS 45 AND OLDER. FORM 990, SCHEDULE H, PART VI, LINE 5 MERCY HOSPITAL AURORA 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 CHURCHS 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 COMMUNITIES. MERCY OFFERS SERVICES AND PROGRAMS WHICH FURTHER HEALTH PROMOTION, MAINTENANCE AND CARE TO THE COMMUNITY. PROGRAMS PROVIDED TO MEET THE COMMUNITY INCLUDE SUPPORT GROUPS FOR VARIOUS SITUATIONS, OUTREACH PROGRAMS, EDUCATIONAL PROGRAMS, HEALTH RESOURCE COORDINATION, COMMUNITY BLOOD DRIVES AND HEALTH FAIRS, ETC. MERCY HOSPITAL AURORA IS GOVERNED BY A BOARD OF DIRECTORS WHICH INCLUDES REPRESENTATION FROM COMMUNITY LEADERS IN THE ORGANIZATIONS 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 HOSPITAL AURORA ARE REINVESTED IN PATIENT CARE, MEDICAL EDUCATION AND RESEARCH INITIATIVES WHICH SUPPORT THE ORGANIZATIONS MISSION TO DELIVER COMPASSIONATE CARE AND EXCEPTIONAL HEALTH CARE SERVICES TO THE COMMUNITIES 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: MO true SCHOLARSHIPS 5 7000 FORM 990, SCHEDULE I, PART I, LINE 2 DESCRIPTION OF ORGANIZATION'S PROCEDURES FOR MONITORING USE OF GRANTS AFTER THE SCHOLARSHIP APPLICATIONS ARE RECEIVED, THE NAMES OF THE APPLICANTS ARE WHITED OUT. THE WHITED OUT APPLICATIONS ARE REVIEWED AND RANKED BY A COMMITTEE. THE RANKING SHEETS ARE TALLIED TO DETERMINE THE RECIPIENT. SCHOLARSHIP FUNDS ARE PROVIDED DIRECTLY TO THE INSTITUTION ON BEHALF OF THE INDIVIDUAL, THEREFORE NO FURTHER MONITORING RELATED TO THE USE OF THE FUNDS IS NEEDED. X X X true true true true false false false false false false false Swope Jon Pres - Ctrl Comm thru 5/20 0 739152 0 450654 0 62767 0 153986 0 16361 0 1422920 0 0 Scarrow MD Alan Pres. Sprg Comm thru 9/17 0 955561 0 0 0 45242 0 22290 0 16361 0 1039454 0 0 Barbe MD David O Physician & Board Member 0 354557 0 561723 0 50055 0 47924 0 12274 0 1026533 0 498385 Hannasch Susan Regional VP - General Counsel 0 169835 0 350545 0 211311 0 12493 0 7852 0 752036 0 221782 Reynolds Scott CFO - Ctrl Comm Thru 5/20 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 Adewumi Olumide Physician & Board Member 0 281191 0 0 0 36398 0 9625 0 15621 0 342835 0 0 Davison Justin VP Finance thru 11/19 0 204285 0 16731 0 68003 0 8505 0 14426 0 311950 0 0 Clouse Day Sherry VP-Finance 0 196882 0 21751 0 61147 0 15874 0 11822 0 307476 0 0 Hawks Travis Physician & Board Member 0 229574 0 4888 0 18776 0 9625 0 16107 0 278970 0 0 Meredith Darrell E CRNA - Nurse Anesthetist 166336 0 40 0 41159 0 19677 0 6447 0 233659 0 0 0 Small Susanne K Nurse Anesthetist 168720 0 40 0 14033 0 7204 0 15575 0 205572 0 0 0 Layman Tracy Director, Pharmacy Services 149473 0 4229 0 9983 0 9712 0 7926 0 181323 0 0 0 Gamet Nicki Director of Nursing & BD MB 131136 0 3695 0 8754 0 12940 0 9684 0 166209 0 0 0 Vincent Jenine VP-Operations & Board Member 0 213458 0 16445 0 14556 0 9700 0 5371 0 259530 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. THERE WAS ONE LISTED INDIVIDUAL THAT RECEIVED THIS BENEFIT DURING THE YEAR (AN OFFICER). 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 TWO LISTED INDIVIDUALS (TWO OFFICERS). FORM 990, SCHEDULE J, PART I, QUESTION 3 MERCY HOSPITAL AURORA RELIES ON A RELATED ORGANIZATION; REFER TO SCHEDULE O, PART VI, QUESTIONS 15A AND 15B FOR THE PROCESS THE RELATED ORGANIZATION FOLLOWS. FORM 990, SCHEDULE J, PART I, QUESTION 4A THE FOLLOWING INDIVIDUAL RECEIVED A SEVERANCE PAYMENT AS NOTED: SUSAN HANNASCH - $132,947. 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: DAVID BARBE, SUSAN HANNASCH, TANYA MARION, SCOTT REYNOLDS, ALAN SCARROW AND JON SWOPE. THE AMOUNT OF ALL ACCRUED BENEFITS IS INCLUDED IN COMPENSATION AMOUNTS PROVIDED IN SCHEDULE J, PART II, COLUMN (C). THE FOLLOWING INDIVIDUALS RECEIVED PAYOUTS FROM THE PLAN DURING THE YEAR: DAVID BARBE - $498,385 SUSAN HANNASCH - $221,782 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-3S) WAS REPORTED UNDER THE RELATED ORGANIZATION, MHM SUPPORT SERVICES, EIN 20-2553101. FORM 990, PART VI, LINES 6A, 7A, & 7B CLASSES OF MEMBERS OR STOCKHOLDERS THE FILING ORGANIZATION HAS A SOLE CORPORATE MEMBER, MERCY HEALTH SPRINGFIELD COMMUNITIES. SUBJECT TO CONSULTATION WITH THE BOARD OF DIRECTORS, THE FOLLOWING CORPORATE POWERS AND RESPONSIBILITIES SHALL BE RESERVED SOLELY TO THE CORPORATE MEMBER: -TO APPROVE THE MISSION AND ESTABLISH THE PHILOSOPHY ACCORDING TO WHICH THE CORPORATION SHALL OPERATE; -TO ADOPT OR AMEND THE ARTICLES OF INCORPORATION AND BYLAWS IN ACCORDANCE WITH ARTICLE XII OF THESE BYLAWS; -TO APPOINT OR REMOVE, WITH OR WITHOUT CAUSE, A MEMBER OF THE BOARD OF DIRECTORS OF THE CORPORATION; -TO APPOINT OR REMOVE, WITH OR WITHOUT CAUSE, THE PRESIDENT/CHIEF OPERATING OFFICER OF THE CORPORATION; -TO APPROVE OR AMEND THE OVERALL STRATEGIC, LONG RANGE, AND HEALTH MANPOWER DEVELOPMENT PLANS, GOALS AND OBJECTIVES OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION; -TO APPROVE OR AMEND THE CONSOLIDATED OPERATING, CAPITAL, AND CONSTRUCTION BUDGETS FOR THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION AND CHANGES IN BUDGETS IN EXCESS OF AN AMOUNT ESTABLISHED FROM TIME TO TIME BY SMHS; -TO AUTHORIZE AND APPROVE THE LEASE OR SALE OF ANY OF THE ASSETS OF THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION IN EXCESS OF AN AMOUNT ESTABLISHED FROM TIME TO TIME BY THE CORPORATE MEMBER; -TO AUTHORIZE AND APPROVE THE INCURRENCE OF DEBT BY THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION (OTHER THAN DEBT INCURRED FOR THE ACQUISITION OF GOODS THAT ARE ACQUIRED IN THE ORDINARY COURSE OF BUSINESS) AND TO GRANT ANY SECURITY INTERESTS, PLACE ANY ENCUMBRANCES, ENTER INTO ANY COVENANTS, AND EXECUTE ANY DOCUMENTS AND TAKE ANY ACTIONS NECESSARY OR APPROPRIATE IN CONNECTION WITH THE INCURRENCE OF SUCH DEBT; -TO MERGE, DISSOLVE, OR ABANDON THE CORPORATION OR ANY ORGANIZATION CONTROLLED BY THE CORPORATION, SUBJECT TO APPROVAL BY THE BOARD AS REQUIRED PURSUANT TO CHAPTER 355 OF THE REVISED STATUTES OF MISSOURI FOR GENERAL NOT-FOR-PROFIT CORPORATIONS ("THE ACT"); -TO APPROVE THE CREATION, OWNERSHIP OR ACQUISITION OF, OR AFFILIATION WITH, ANY OTHER ORGANIZATION CONTROLLED BY THE CORPORATION; AND, -TO APPROVE CONTRACTS IN WHICH THE CORPORATION ASSUMES FINANCIAL RISK, INCLUDING BUT NOT LIMITED TO MANAGED CARE CONTRACTS. FORM 990, PART VI, QUESTION 11B DSCR OF 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 MADE AVAILABLE TO THE FILING ORGANIZATION'S LEADERSHIP TEAM FOR THEIR REVIEW. THE FORM 990 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 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, THE ORGANIZATION RELIES UPON MERCY HEALTH, WHICH 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 VII, SECTION B IT IS POSSIBLE THAT A PORTION OF THE AMOUNTS REPORTED FOR SNYDER CONSTRUCTION CO. WERE RELATED TO MATERIALS IN ADDITION TO AMOUNTS PAID FOR SERVICES. HOWEVER, THE AMOUNTS ARE NOT DISTINGUISHABLE. 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. Mercy's 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 - ($2,486,894) OTHER - $3,492 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 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 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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 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 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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 Paris 500 E Academy Paris AR 72855 710655753 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 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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.