2021-07-15T12:07:21-05:00 2020-08-31 346565596 Ernst & Young US LLP 155 N Wacker Drive Chicago IL 60606 990 2019-09-01 610444707 Baptist Healthcare System Inc BAPT 5028965000 2701 Eastpoint Parkway Louisville KY 40223 Stephen R Oglesby VP, Treasurer, CFO 5028965000 2021-07-15 1 Katherine E Kurtzman P01236691 3128792183 2019 2022-09-23 18:48:47Z Stephen R Oglesby 2701 Eastpoint Pkwy Louisville KY 40223 2514811796 0 X www.baptisthealth.com X 1918 KY Provide quality healthcare services & enhance the health of the people & communities we serve. 13 9 17220 1000 4707056 0 1680671 94908929 2226421275 2342342161 38858032 36696168 32974387 33059711 2299934365 2507006969 2353104 3764014 0 0 947936049 1034329254 0 0 0 1047611246 1127155913 1997900399 2165249181 302033966 341757788 3059532712 3706111550 1256700355 1684560887 1802832357 2021550663 X See Schedule O.The mission of Baptist Healthcare System, Inc., (BHS), is to exemplify our Christian heritage of providing quality healthcare services by enhancing the health of the people and the communities we serve. The vision of BHS is to be nationally recognized as the premier source for healthcare in Kentucky and Indiana by leading in clinical excellence, providing compassionate care and pursuing a growth model that best meets the needs of our communities and our patients. Both the mission and vision of BHS are engrained into the culture of the entire organization. BHS will live out its Christ-centered mission and achieve its vision guided by integrity, respect, stewardship, excellence, collaboration, compassion and joy. 0 0 1909274042 3764014 2360541473 See Schedule O 1909274042 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 1 0 0 1 1246 0 1 17220 1 1 1 0 0 0 0 0 0 0 0 0 1 0 X 13 9 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 KY IN X Stephen R Oglesby 5028965000 2701 Eastpoint Parkway Louisville KY 40223 X Gerard J Colman CEO & Director 40.00 0.00 X X 2462555 0 271863 Patrick Falvey Chief Operating Officer 40.00 0.00 X 1452042 0 154623 Isaac Myers MD Chief Health Integration Officer 40.00 0.00 X 899234 0 141924 Janet Norton Secretary & Vice President 40.00 0.00 X 978179 0 36276 William G Sisson Vice President (Through 12/31/17) 40.00 0.00 X 919757 0 20008 Stephen R Oglesby CFO, Treasurer, VP 40.00 0.00 X 801296 0 124490 Daniel Eichenberger MD Hospital Pres (Through 1/2/20) 40.00 0.00 X 863828 0 27845 Kenneth Anderson MD VP & Chief Medical Officer 40.00 0.00 X 788071 0 30764 Larry Gray Hospital President 40.00 0.00 X 742589 0 29622 David Gray Vice President (Through 12/31/17) 40.00 0.00 X 559172 0 26303 William A Brown Vice President (Through 8/8/17) 0.00 0.00 X 149100 0 5210 Aaron Thompson PHD Director 1.00 0.00 X 3000 0 0 Allen Rudd Director 1.00 0.00 X 3000 0 0 Bonnie Stith Director (Effective 6/29/20) 1.00 0.00 X 3000 0 0 Dr Terry T Lester Director 1.00 0.00 X 3000 0 0 Dwain Morris Director 1.00 0.00 X 3000 0 0 Glenn Leveridge Director 1.00 0.00 X 3000 0 0 Kerry M Stemler Director 1.00 0.00 X 3000 0 0 Linda J Thomas PHD Director (Effective 1/1/20) 1.00 0.00 X 3000 0 0 Marcia Milby Ridings Director (Through 12/31/19) 1.00 0.00 X 3000 0 0 Ramsey Nassar MD Director 1.00 0.00 X 3000 0 0 Randy Owen MD Director (Through 3/23/20) 1.00 0.00 X 3000 0 0 Robert L Hook Jr Director 1.00 0.00 X 3000 0 0 Tammy Zimmerman Director 1.00 0.00 X 3000 0 0 Victoria Buster Director 1.00 0.00 X 3000 0 0 Brent Cooper Director (Through 12/31/19) 1.00 0.00 X 0 0 0 10657823 0 868928 586 1 1 0 LabCorp 531 South Spring Street Burlington NC 27215 Service Contract 22693069 Siemens Medical Solutions USA Inc 51 Valley Stream Parkway Malvern PA 19355 Service Contract 15319801 Trimedx Inc 5451 Lakeview Parkway Indianapolis IN 46268 Management Agreement 14642906 Epic Systems Corporation 1979 Milky Way Verona WI 53593 Software and Consulting 8912496 Logans PO Box 643958 Cincinnati OH 45264 Service Contract 5742422 257 X 3093529 88391917 3423483 94908929 Medicare & Medicaid Pa 621300 1180748706 1180748706 Insurance & Patient Pa 621300 1015553924 1011785507 3768417 Management Fees-Exempt 561000 61559829 61559829 Other Program Service 900099 60885956 60885956 Exempt & MOB Rent 900099 18999538 18999538 4594208 4594208 2342342161 21740197 21740197 22760798 0 7804827 22760798 -7804827 14955971 14955971 Cafe & Coffee Shops 722514 9368233 9368233 Purchasing Partnership 900099 3441904 3324890 117014 Day Care Centers 624410 2736249 821905 1914344 17513325 13935783 -280 3577822 33059711 2507006969 2355834417 4707056 51556567 3764014 3764014 4995761 4995761 289709 289709 821003678 694107774 126895904 23017006 19988735 3028271 107601932 92779186 14822746 77421168 64318802 13102366 3419109 3190781 228328 2919524 507550 2411974 992408 992408 156554 156554 52553962 42805941 9748021 9367522 84327 9283195 86439820 69280546 17159274 61754374 54301856 7452518 35127898 31758786 3369112 3561945 1319278 2242667 140323 81378 58945 34969453 34969453 125449792 119167570 6282222 19882072 9631390 10250682 Medical Supplies 522148385 520644214 1504171 Purchased Svcs-Non-Med 73210552 62673244 10537308 Provider Tax 47626239 47626239 Administrative Expenses 25523814 17800615 7723199 21912167 18182654 3729513 2165249181 1909274042 255975139 0 34151 37221 318899077 748171671 322068514 343041072 42442396 75113891 17952237 29299061 2538105622 1360838237 1089134616 1177267385 990536487 1008011218 23183745 18089420 25842113 19532948 17963396 240842866 258180777 3059532712 3706111550 265790376 286104217 967609657 965500816 37924901 23300322 395030953 1256700355 1684560887 X 1800858515 1996262723 1973842 25287940 1802832357 2021550663 3059532712 3706111550 X 341757788 58074590 49077172 -230191244 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 51000 0 1 105554 156554 0 Part II-B, Line 1: Fees and related expenses paid for lobbyist. Part II-B, Line 1i Lobbying portion of Kentucky Hospital Association and American Hospital Association dues, and an allocation of the expenses of BHS staff. 992510327 53107064 92353497 125412372 2443103 1010115413 913093464 120059496 37696832 76030460 2309005 992510327 754058582 132278360 68237615 39440329 2040764 913093464 799870635 61040747 59495543 164068546 2279797 754058582 808699955 33990776 56256745 96524337 2552504 799870635 0.99800 0.00200 0 0 147428156 147428156 1009613397 471330884 538282513 1312783862 883609760 429174102 68280207 5897593 62382614 1177267385 Other Current Assets 79971776 Due From Affiliate 76180 Trustee Funds-Malpractice 99622386 Trustee Funds-Workers Comp 27744409 Trustee Funds-Under Bond Indenture 186 Unamortized Issue Costs 6976453 Other Investments 10600176 Other Assets 9606914 ROU Assets - Operating Leases 23582297 258180777 Malpractice Liability 148560971 Workers Comp Liability 23299861 Post-Retirement/Miscellaneous 42869537 Third Party Payable 2656331 Intercompany -76502382 Contract Liability-Accelerated Payments 254146635 395030953 X Part V, Line 4: The endowment funds are used to support and enhance patient care at the hospitals, finance capital improvements and provide educational and financial assistance to hospital employees. Part X, Line 2: Baptist evaluates its uncertain tax positions on an annual basis. A tax benefit from an uncertain position may be recognized when it is more likely than not that the position will be sustained upon examination, including the resolution of any related appeals or litigation processes, based on the technical merit of the position. Baptist has determined that it has no uncertain tax positions that are required to be recorded as of August 31, 2020. Tax years that are open include the years from 2016 to 2019. 1 1 X 1 X 1 X 1 1 0 1 1 44739967 17877291 26862676 0.01240 298942759 265924248 33018511 0.01520 343682726 283801539 59881187 0.02760 2855011 2855011 0.00130 1517013 1517013 0.00070 64149197 53558526 10590671 0.00490 1746754 1746754 0.00080 1128674 1128674 0.00050 71396649 53558526 17838123 0.00820 415079375 337360065 77719310 0.03580 1 11064236 0 542837376 595063020 -52225644 X 1 1 7 1 Baptist Health Lexington 1740 Nicholasville Road Lexington KY 40503 www.baptisthealth.com 100101 X X X A 2 Baptist Health Louisville 4000 Kresge Way Louisville KY 40207 www.baptisthealth.com 100451 X X X A 3 Baptist Health Paducah 2501 Kentucky Avenue Paducah KY 42003 www.baptisthealth.com 100313 X X X A 4 Baptist Health Floyd 1850 State Street New Albany IN 47150 www.baptisthealth.com 17-005040-1 X X X A 5 Baptist Health Corbin 1 Trillium Way Corbin KY 40701 www.baptisthealth.com 100417 X X X A 6 Baptist Health LaGrange 1025 New Moody Lane LaGrange KY 40031 www.baptisthealth.com 100575 X X X A 7 Baptist Health Richmond 801 Eastern Bypass Richmond KY 40475 www.baptisthealth.com 100322 X X X A Facility Reporting Group - A 0 0 1 X X X X X X X X X 17 1 0 0 1 X https://www.baptisthealth.com X 1 17 1 https://www.baptisthealth.com 0 1 X 200.000000000000 400.000000000000 X X X X X 1 1 X X X 1 X www.baptisthealth.com X www.baptisthealth.com X www.baptisthealth.com X X X X X X 1 X 0 X X X X X 1 X 0 0 Part V, Section B Facility Reporting Group A Facility Reporting Group A consists of: - Facility 1: Baptist Health Lexington, - Facility 2: Baptist Health Louisville, - Facility 3: Baptist Health Paducah, - Facility 4: Baptist Health Floyd, - Facility 5: Baptist Health Corbin, - Facility 6: Baptist Health LaGrange, - Facility 7: Baptist Health Richmond Group A-Facility 1 -- Baptist Health Lexington Part V, Section B, line 5: A wide variety of community resources were consulted during the CHNA process, as this is a community-driven plan of action that engages the public and develops partnerships.There are numerous health departments in the Baptist Health Lexington service area responsible for the counties Baptist Health Lexington serves. Each health department's community improvement plan was evaluated by the committee and those initiatives were considered throughout the process of determining the goals for the Baptist Health Lexington Community Health Needs Assessment. Baptist Health Lexington also solicited public opinion on community health needs using a survey distributed via social media, the Baptist Health Lexington website and in paper form. Survey responses, coupled with the information from the respective health departments, were considered as primary data. Secondary data obtained from national, state and local demographic and socioeconomic sources was used, including Kentucky vital statistics, disease prevalence studies and health indicators and statistics. Group A-Facility 1 -- Baptist Health Lexington Part V, Section B, line 11: Opioid abuse, cancer, (including breast, colorectal and lung) and cardiovascular disease were the health needs of the community with the highest priorities. The committee agreed that these health issues are creating additional stress on agencies throughout the community, including the hospital.Opioid abuse has become an epidemic across the country and in our community. The committee ranked it as their first priority. Locally we are seeing a surge of opioid usage admissions and emergency room visits similar to those nationwide. Opioid abuse has a negative impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns that must be sent to neonatal intensive care units to treat withdrawal symptoms. As cancer continues to be a leading cause of death in this service area, the committee ranked it as their second priority in terms of public health issues. The committee acknowledged the continued need for board-certified oncologists and easier patient access to cancer-related services such as preventive screenings, chemotherapy and radiation therapy. Cardiovascular disease is the committee's third priority and includes related health issues such as coronary artery disease, heart attack, arrhythmia, heart failure, cardiomyopathy and vascular disease. A focus on education, prevention and treatment will be a priority as the goal is to expand public awareness of disease root causes and common associated conditions to increase compliance with standard-of-care protocols and to decrease the occurrence of these health issues.It is not within the scope of Baptist Health Lexington's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Lexington works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 1 -- Baptist Health Lexington Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 1 -- Baptist Health Lexington Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 2 -- Baptist Health Louisville Part V, Section B, line 5: Contact was made with the health departments responsible for the counties in the service area. There are four health departments responsible for the counties BHLOU serves: Louisville Metro Public Health and Wellness (Jefferson County); the Bullitt County Health Department; the Oldham County Public Health Department and the North Central District Health Department, which serves both Shelby and Spencer counties. Through these contacts, the public meetings that were held, and public surveys conducted in Jefferson and Oldham counties, BHLOU solicited primary feedback on the health issues confronting its service area. Louisville Metro Public Health and Wellness also brought all of the Louisville-based hospitals, hospital systems and the Kentucky Hospital Association (KHA) together for joint meetings to assist them in the update of the public survey included in the CHNA. Secondary data from demographic and socioeconomic sources, Kentucky vital statistics, disease prevalence records, health indicators and statistics were updated. National, state, and local resources were also used. Group A-Facility 2 -- Baptist Health Louisville Part V, Section B, line 11: Based upon the data collected and analyzed through this assessment, the committee identified the following as the primary health issues that the hospital will focus on over the next three years: obesity, opioid abuse and cancer.Obesity and the related health effects on individuals and families was the consensus among the committee as the most pressing community need. Obesity has a significant impact on overall health and well-being, and can contribute to other health issues such as cardiovascular disease, diabetes, pulmonary disease, and joint deterioration. Through the combined efforts of medical professionals, schools, churches and government agencies, we will be successful in educating and engaging individuals to better care for themselves. Kentucky has some of the highest rates in the nation for preventable health conditions and for behaviors that have been identified as unhealthy. The committee ranked opioid abuse as their second priority in terms of public health issues. Opioid abuse has become an epidemic across the country and locally we are seeing a similar surge of opioid usage admissions and emergency room visits. Similar to obesity, opioid abuse has an impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns who must be sent to neonatal intensive care units to treat withdrawal symptoms. Cancer continues to be a leading cause of death in this service area, leading the committee to rank it as the third priority in terms of public health issues. Mortality levels in our service area are slightly lower than the state and national averages but still claim too many in our communities. The committee acknowledged the continued need for board-certified oncologists and easier access to cancer-related services, such as preventive screenings, chemotherapy and radiation therapy.Three additional issues identified were health literacy, cardiovascular disease and early intervention. The consensus of the team is that many of these issues are related, and efforts to combat one will result in improvements in one or more of the others.It is not within the scope of Baptist Health Louisville's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Louisville works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 2 -- Baptist Health Louisville Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 2 -- Baptist Health Louisville Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 3 -- Baptist Health Paducah Part V, Section B, line 5: The Purchase District Coalition for Health is a group comprised of representatives from the Purchase District Health Department, which serves Ballard, Carlisle, Fulton, Hickman, and McCracken counties in the Purchase Area Development District; the City of Paducah; the University of Kentucky County Extension offices; United Way of Paducah-McCracken County; Lourdes Hospital and Baptist Health Paducah. Bringing these groups together helps avoid duplication of efforts in data collection and resource allocation. Through these contacts and public surveys, BHPAD collected primary data and feedback on the health issues confronting its service area. Secondary data from demographic and socioeconomic sources, Kentucky vital statistics, disease prevalence and health indicators and statistics were collected from national, state and local sources. Group A-Facility 3 -- Baptist Health Paducah Part V, Section B, line 11: After studying the primary and secondary data, the committee prioritized the three most prevalent community health issues based on their severity and on the ability of Baptist Health Paducah and its partners to help improve them.Obesity prevention and the illnesses related to obesity are the primary health concerns in our community. To increase the awareness of obesity as a health threat to our service area residents and to encourage healthier living through diet, exercise and other means is the top priority. Failing to diminish obesity in the community will lead to higher mortality rates, increased healthcare costs and a decrease in the quality of life for families in our community.The second priority identified was ample access to health care. The ability of individuals in a community to access healthcare resources to preserve and improve health is essential. Access to healthcare has an immediate impact on overall health status, the prevention of disease, quality of life and life expectancy. To ensure service area residents have sufficient access to health care services through primary care and specialist physician planning and office locations; ambulatory care facilities; new services; school clinics, the hospital's call center and education and healthcare screenings will be a primary focus of the hospital.Smoking and lung disease are common problems in our community. The reduction of the number of smokers in the service area will ultimately reduce the incidence of heart disease, cancer, respiratory illnesses and stroke. Baptist Health Paducah supports a statewide smoking ban in public places, offers numerous early screenings tests for cancer and provides a free smoking cessation program.In spite of not having the resources other agencies have to address substance abuse directly, Baptist Health Paducah works to meet the needs of the community in ways that support the efforts of the other agencies. The annual Addiction Symposium focuses on training clinicians on the issues surrounding addiction and care. The educational program has been a catalyst to educate the community as to the circumstances of addiction and the care available for those suffering from this disease. The hospital sponsored a high-level training course for physicians and other prescribers of opiates, and experts were brought in to address questions and prescribing practices to help clinicians better care for their patients. It is not within the scope of Baptist Health Paducah's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Paducah works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 3 -- Baptist Health Paducah Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 3 -- Baptist Health Paducah Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 4 -- Baptist Health Floyd Part V, Section B, line 5: A wide variety of community resources were consulted during the CHNA process, including the six health departments responsible for the counties Baptist Health Floyd serves: the Clark County Health Department; the Crawford County Health Department; the Floyd County Health Department; the Harrison County Health Department; the Scott County Health Department and the Washington County Health Department. Through these contacts, as well as other public agencies, public surveys and focus groups, Baptist Health Floyd solicited primary feedback on the health issues confronting its service area. Secondary data was obtained from national, state and local demographic and socioeconomic sources, Indiana vital statistics, disease prevalence studies and health indicators and statistics. Group A-Facility 4 -- Baptist Health Floyd Part V, Section B, line 11: Community discussions and survey responses identified multiple community needs that were ranked based on the following criteria: magnitude, severity, opportunity to intervene at a prevention level, degree of success in affecting the problem and resources available. The four community health priorities that were identified are as follows: social determinants of health, (food security, transportation and housing); cardiovascular disease; obesity and substance abuse and addiction. The ability of individuals in a community to access health care resources to preserve and improve health is essential. The goal is to help improve Floyd County residents' access to healthy food and nutrition and to increase health education. Screening tools used to identify food insecurity for Baptist Health Floyd patients and community nutrition and cooking classes will help to promote healthier lifestyles. Reducing the number of patients that do not receive care due to a lack of reliable transportation will help reduce the spread of illness throughout the community. Strategies to address the prevention of cardiovascular disease include the promotion of positive behaviors and an active lifestyle, community-wide screenings and sufficient access to healthcare providers. The reduction of the risk of chronic diseases and the promotion of a healthy and active lifestyle will help reduce the effects of obesity and substance abuse in our communities. It is not within the scope of Baptist Health Floyd's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Floyd works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 4 -- Baptist Health Floyd Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 4 -- Baptist Health Floyd Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 5 -- Baptist Health Corbin Part V, Section B, line 5: To determine the goals and focus of the CHNA, the committee evaluated the Whitley and Laurel County Health Departments' community improvement plans and initiatives and solicited public opinion on community health issues using a survey distributed via social media, the hospital website and in paper form. Survey responses, coupled with the information from the respective health departments, were considered as primary data. Secondary data was obtained and evaluated from demographic and socioeconomic sources, Kentucky vital statistics records, disease prevalence reports, health indicators and statistics, as well as other national, state and local data. Group A-Facility 5 -- Baptist Health Corbin Part V, Section B, line 11: After studying the primary and secondary data, the committee identified the top five health concerns that the hospital will focus on over the next three years. They are: obesity, cancer, cardiovascular disease, mental health and substance abuse and patient transportation.Obesity was determined to be the top priority as it has a significant impact on other health issues, including cardiovascular disease, diabetes, pulmonary disease and joint deterioration. Through the combined efforts of medical professionals, schools, churches and government agencies, we will be successful in educating and engaging individuals to better care for themselves. Kentucky has some of the highest rates in the nation for preventable health conditions and for behaviors that have been identified as unhealthy. Cancer continues to be a leading cause of death in this service area, and a main priority in terms of public health issues. The committee acknowledged the continued need for board-certified oncologists and easy access to cancer-related services, such as preventive screenings, chemotherapy and radiation therapy. Cardiovascular disease ranked as the committee's third priority and encompasses coronary artery disease, heart attack, arrhythmias, heart failure, cardiomyopathy and vascular disease. The efforts to combat these health issues will focus on education, prevention and treatment. The goal is to increase public awareness of the disease, its root causes and commonly associated conditions to increase compliance with standard-of-care protocols. Opioid abuse has become an epidemic across the country. Locally, we are seeing a similar surge of opioid usage admissions and emergency room visits. This health issue is creating additional stress on agencies throughout the community. Similar to obesity, opioid abuse has an impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns who must be sent to neonatal intensive care units to treat withdrawal symptoms. Patient transportation is a major issue in the Baptist Health Corbin service area. Many patients do not own automobiles, and there are very limited resources for public transportation. The committee agreed it was important to explore the possibility of the hospital providing transportation services to patients.It is not within the scope of Baptist Health Corbin's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Corbin works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 5 -- Baptist Health Corbin Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 5 -- Baptist Health Corbin Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 6 -- Baptist Health LaGrange Part V, Section B, line 5: A wide variety of community resources were consulted during this process. There are three health departments responsible for the counties Baptist Health La Grange serves: the Oldham County Public Health Department (OCHD), the North Central District Health Department (NCDHD), which serves both Henry and Trimble counties and the Three Rivers District Health Department (TRDHD), which serves Carroll County. Increasing communication between community service providers, enhancing the public's awareness of the agencies and services available and promoting services provided by community partners is a common goal.Baptist Health La Grange also solicited public opinion on community health needs using a survey distributed via social media, the Baptist Health La Grange website and in paper form. Survey responses, coupled with the information from the respective health departments, were considered as primary data. Secondary data, obtained from national, state and local demographic and socioeconomic sources, Kentucky vital statistics, disease prevalence studies and health indicators and statistics was collected. Group A-Facility 6 -- Baptist Health LaGrange Part V, Section B, line 11: The committee identified six community health issues, the top three are obesity, opioid abuse and cancer.Obesity was the top community need according to the assessment committee. Obesity has a significant impact on other health issues such as cardiovascular disease, diabetes, pulmonary disease and joint deterioration. Through the combined efforts of medical professionals, schools, churches, and government agencies, we will be successful in educating and engaging individuals to live healthier lifestyles. Opioid abuse has become an epidemic across the country. The committee ranked it as their second priority. Locally we are seeing a surge of opioid usage admissions and emergency room visits similar to those nationwide. Similar to obesity, opioid abuse has an impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns who need to be cared for in neonatal intensive care units to treat withdrawal symptoms. As cancer continues to be a leading cause of death in this service area, the committee ranked it as its third priority in terms of public health issues. Oldham County mortality levels are better than the state and national averages but are still a significant threat. The committee acknowledged the continued need for board-certified oncologists and easy access to cancer-related services, such as preventive screenings, chemotherapy and radiation therapy.The other three issues identified are health literacy, cardiovascular disease and early intervention. The consensus of the team is many of these issues are related and efforts to combat one will result in improvements in one or more of the others. It is not within the scope of Baptist Health LaGrange's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health LaGrange works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 6 -- Baptist Health LaGrange Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 6 -- Baptist Health LaGrange Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Group A-Facility 7 -- Baptist Health Richmond Part V, Section B, line 5: The Madison County Health Department is responsible for the county Baptist Health Richmond serves and worked collaboratively with us to identify the needs of our community. The Health Department's Community Improvement Plan and initiatives were considered throughout the process of determining the goals for the Baptist Health Richmond Community Health Needs Assessment.Baptist Health Richmond also solicited public opinion on community health needs using a survey distributed via social media, the Baptist Health Richmond website and in paper form. Survey responses, coupled with the information from the health department, were considered as primary data. Secondary data, from national, state and local demographics and socioeconomic sources, Kentucky vital statistics, disease prevalence reports and health indicators and statistics were also collected and analyzed. Our committee also worked closely with numerous other institutions, agencies and individuals that represented public health organizations, other hospitals and community members, to gather, disseminate and prioritize the information collected. Group A-Facility 7 -- Baptist Health Richmond Part V, Section B, line 11: The committee identified a number of pressing community health issues and will focus on the following over the next three years: behavioral health, substance abuse and obesity and healthy lifestyles. Baptist Health Richmond has made behavioral health a priority as the community need continues to increase. The committee ranked expanding access to these services as the most important community health initiative. Our goal is to ensure that residents have sufficient access to mental health and substance abuse counseling and related services. Currently, behavioral health staff complete acute assessments 24/7 at the hospital. The hospital also continues to maintain a substance abuse hotline, an Intensive Outpatient Program and select telemedicine services are being provided on an outpatient basis. The committee ranked opioid abuse as their second priority in terms of public health issues. Opioid abuse has become an epidemic across the country, and locally we are seeing a similar surge of opioid usage admissions and emergency room visits. Similar to obesity, opioid abuse has an impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns that must be cared for in neonatal intensive care units to properly treat withdrawal symptoms. Obesity has a significant impact on other health issues such as cardiovascular disease, diabetes, pulmonary disease and joint deterioration. Through the combined efforts of medical professionals, schools, churches, and government agencies, we will be successful in educating and engaging individuals in better caring for themselves. Kentucky has some of the highest rates in the nation for preventable health conditions and for behaviors that have been identified as unhealthy. We are working to ensure that residents have access to a primary care physician and outpatient nutritional counseling and disease management programs for diabetes and related health issues. An increased awareness of the importance of the early detection and prevention of breast, lung and colon cancer through screening programs will also improve the health of our community members.It is not within the scope of Baptist Health Richmond's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Richmond works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Group A-Facility 7 -- Baptist Health Richmond Part V, Section B, line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Group A-Facility 7 -- Baptist Health Richmond Part V, Section B, line 20e: Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Part V, Section B, Line 3e Each hospital facility did include a prioritized list of the community's significant health needs in its CHNA report. Part V, Section B, Lines 16 a,b,c https://www.baptisthealth.com/Pages/patients-and-visitors/billing- information/financial-assistance.aspx Part V, Section B, Lines 7 a,b and 10a https://www.baptisthealth.com/pages/news/community-health-needs-assessment.aspx Part I, Line 7: COSTING METHODOLOGY:BHS utilizes a sophisticated cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Patients are also categorized by: 1. Patient type (inpatient and outpatient), 2. Payer plan (42 unique categories of payer plans. Charity, state-sponsored charity and the uninsured are among the uniquely identified payer plans), and 3. Clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care (under a State-sponsored or BHS sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient. For insured patients who also qualify for partial charity under the BHS sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt.The cost of care for uninsured patients who do NOT qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services. Part I, Line 7g: No physician clinic costs are included in the costs of subsidized health services. Form 990, Part I, Line 6A Each hospital within Baptist Healthcare System, Inc. (BHS), (61-0444707), prepares a Community Benefit Report. In addition, a summary Community Benefit Report is prepared on a consolidated basis for all entities. Part II, Community Building Activities: COMMUNITY CARE: To help Baptist Health accomplish its mission to positively impact and transform the health of our communities, the entire organization is committed to clinical excellence, patient safety and continued growth to best meet the needs of our patients and the communitites that we serve. Our providers remain focused on helping people get well and stay well, and the system is investing in a wide range of initiatives centered on enhancing quality and providing personalized care that is both efficient and proactive. WELLNESS: Baptist Health's Wellness team is constantly seeking creative new opportunities to change the health of our communities for the better, one individual at a time. The team strives to create a culture of health and accountability, effectively engaging participants to help them reach their health and wellness goals. Baptist's innovative, award-winning wellness programs include smoking-cessation classes, weight-management programs, diabetes prevention, nutritional health, stress management and fitness/physical activity. Partnerships with other like-minded organizations within the community further enhance, support and promote these successful initiatives and programs.COLLABORATIONS: Improving the health of those in the communities we serve at the grassroots level takes partnerships. In conjunction with leadership teams from other health systems and the Kentucky Hospital Association, Baptist Health played a lead role in advising state leaders as they developed the State's COVID-19 policies and guidelines to assure the safety of patients, healthcare staff, first responders, childcare workers, nursing home residents and the community at large. Baptist Health provided millions of dollars worth of critical PPE and other supplies to assist other facilities and coordinated relationships with vendors that allowed the State to secure critically depleted supplies. These alliances with state and local governments and community leaders continue as the effects of the pandemic continue to disrupt our communities.In Paducah and Corbin, a Congregational Health Network links those just released from the hospital to trained fellow church members willing to help with their care needs. Physically fit youngsters is the goal of the Project Fit America partnership, bringing funding, equipment, teacher training and a curriculum to elementary and middle schools in over 20 communities. Baptist Health is among 10 health systems that founded the Kentucky Health Collaborative to share best practices for improving the health of the Commonwealth's citizens.ADVOCACY: Baptist Health is continuously working with community and state leaders, local schools, health departments and other partners to improve the health of our communities. Our efforts focus on the passage of smoke-free legislation to help children breathe clean air; tort reform, which can lower the cost of healthcare; telehealth to make healthcare more accessible and programs and opportunities to combat substance abuse and addiction. RESEARCH: Baptist Healthcare System's leadership in clinical research is directly linked to our organizational mission of serving the healthcare needs of patients and communities across Kentucky and Southern Indiana. Clinicians in Baptist Health facilities are currently engaged in more than 200 clinical studies, addressing a variety of medical conditions that include:--Cancer --Heart disease --Bone and muscle deformities --Neurological disorders --Communicable diseases --Diabetes Cancer research at Baptist Health has grown tremendously in the last 20 years with continued growth expected through the collaboration of the Baptist Health Cancer Research Network, (BHCRN). The BHCRN is a joint effort among physicians, nurses, patients, caregivers and administrators to improve cancer care at Baptist Health through research. Our program is unique among community research sites because it has always been hospital-based and has improved our ability to provide patients with National Cancer Institute(NCI)-sponsored, cooperative-group studies, culminating in our recent designation as a Main Member for NRG Oncology and Gaurdian Research Network (GRN) research organizations.Our clinicians are also involved in state and national-level research organizations, such as the NCI's National Clinical Trials Network. NRG, GRN and the NCI organizations bring together leading medical investigators to pool resources, share data and coordinate clinical trials.The Guardian Research Network is a nationwide consortium of high-performing community health systems, including Baptist Health, which created a breakthrough platform for accelerating cures for cancer. The network's objectives are to identify and place patients into clinical trials as fast as possible, cutting weeks and sometimes months off of enrollment timelines. Its searchable database houses hundreds of thousands of cancer patients' medical records. The Grail Study is the first trial launched by GRN and is designed to determine if a blood test can be created to enable the early detection of cancer. Participating hospitals include Baptist Health Lexington, Baptist Health Louisville and Baptist Health Paducah. Clinical research expands our knowledge of diseases allowing us to better understand and more effectively treat the diseases and conditions that affect the human body. Medical advancements hinge upon vigorous research programs and the commitment of healthcare organizations like Baptist Health. Part III, Line 2: As a result of certain changes required by Accounting Standards Update(ASU) 2014-09, the majority of Baptist's provision for uncollectible accounts is recorded as a direct reduction to net patient service revenue instead of being presented as a separate line on the consolidated statements of operations. The core principle of the guidance in ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For Baptist's health care operations, the adoption of ASU No. 2014-09 resulted in changes to the presentation for and disclosure of revenue related to uninsured and underinsured patients. Under ASU No. 2014-09, the estimated uncollectible amounts due from these patients are generally considered an implicit price concession and are a direct reduction to patient service revenue. Part III, Line 3: Rationale for including other bad debt amount in community benefit:No other bad debt amounts have been included as community benefit. The hospital educates patients with limited ability to pay regarding financial assistance and for this reason, the organization believes it accurately captures all charity care deductions provided according to the financial assistance policy, and the amount of bad debt expense attributable to patients eligible under the organization's charity care policy is negligible. Part III, Line 4: BAD DEBT EXPENSE FOOTNOTE:A separate footnote for bad debt expense is not included in the audited financial statements. However, beginning in 2012 BHS reported the provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenue. The costing methodology of bad debt is outlined in Schedule H, Part VI, Line 1. Part III, Line 8: MEDICARE COSTING METHODOLOGYMedicare revenues and allowable costs were taken from the "as filed" Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit. Part III, Line 9b: COLLECTION PRACTICES:Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account. Guarantors who have an ability to pay for services will be billed based on the following guidelines: - Patients or guarantors may be asked to pay an estimated patient liability at point of service. - BHS facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors. - Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHS Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs. - Patients requesting detailed charge information will be provided an itemized bill. - BHS Patient Financial Services will provide all patients the same information concerning services and charges. - Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility. Part VI, Line 2: NEEDS ASSESSMENT:BHS conducts a tri-annual planning process that is driven by the strategic vision to be the health care leader in Kentucky and Indiana. Key industry and community issues (such as prominent health conditions present within each community, underserved areas and underprovided clinical services) are considered and analyzed for their impact on BHS and the seven hospitals. Frequently, outside experts reaffirm the assessment and assist in the development of plans to address the community need. A course of action, including key strategies and goals, is shared with and approved by the BHS Board and the Hospital's administrative boards. Part VI, Line 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE:The following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - Financial counselors advise and/or screen uninsured patients before or during hospital services, - A third party vendor advises and/or screens uninsured patients during hospital services, - Financial counselors provide follow-up contact for patients missed during services, - The State-sponsored DSH form is provided to all ED uninsured patients, - Telephone calls and in-person visits are handled by staff trained to discuss financial assistance, - Information regarding financial assistance is included in patient statements. - The BHS sponsored charity care program policy is posted in key areas of each hospital. - The BHS sponsored charity care program policy is posted on the website of each hospital and the System. Part VI, Line 4: COMMUNITY INFORMATION:BHS is comprised of seven regional hospitals. Each one serves a unique and separate geographic area within Kentucky and Indiana:Baptist Health Lexington (BHLEX) opened in 1954 in Lexington, the second largest city in Kentucky. It is located approximately five miles from Interstate 75 and Interstate 64 which provide access for the immediate Lexington metro area patients, as well as patients from other areas of central and eastern Kentucky that the hospital serves. The primary geographic service area for BHLEX consists of the Kentucky counties of Bourbon, Clark, Fayette, Franklin, Jessamine, Madison, Scott and Woodford. In addition, BHLEX serves as a regional referral center with approximately 35% of its discharges coming from Kentucky counties outside of the primary service area. BHLEX provides tertiary care services not offered by many hospitals in the surrounding areas including specialty cardiovascular, orthopedic and cancer services, intensive care services and women's health services, including mother and baby care, orthopedics, sleep disorders and rehabilitation. BHLex is also a major medical research and education center. Approximately 12.2% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 4.7%, as compared to 6% for the state of Kentucky and the national average of 6.7% for 2020.Baptist Health Louisville (BHLOU) opened in 1975 and is located in St. Matthews, approximately five miles east of downtown Louisville. BHLOU serves as a general acute care facility and is strategically located near Interstate 64, a main access to downtown, and Interstate 264, a main beltway around Louisville. The primary geographic service area for BHLOU consists of Jefferson, Oldham, Shelby, Spencer and Bullitt counties in Kentucky. Area residents benefit from the hospital's emergency services, including special teams for heart attack and stroke care and the hospital's cancer services that include two freestanding Radiation Centers and the Charles and Mimi Osborn Cancer Center. BHLOU specializes in cardiovascular services, cancer care and comprehensive rehabilitation services that are much needed in the area. Special services offered include women's health, digital mammography, ultrasound and bone-density scanning. In addition, BHLOU operates one of the busiest emergency departments in the state of Kentucky. Approximately 16.7% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 5.0%, compared to 6% for the state of Kentucky and the national average of 6.7% for 2020.Baptist Health Paducah (BHPAD) was opened in 1953 in Paducah, Kentucky, the largest city in BHPAD's service area and is located approximately one and one-half miles from Interstate 64. BHPAD is one of only two hospitals located in Paducah. The primary geographic service area for BHPAD consists of Ballard, Caldwell, Carlisle, Graves, Livingston, Lyon, Marshall and McCracken counties in Kentucky and Massac County in Illinois. BHPAD draws approximately 70% of its discharges from the primary service area. BHPad is a regional medical and referral center, providing a full range of services, including cardiac and cancer care, diagnostic imaging, women's and children's services, surgery, emergency treatment, rehabilitation, transitional care, weight management and wound care. Approximately 19% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 6.2%, compared to 6% for the state of Kentucky and the national average of 6.7% for 2020.Baptist Health Floyd, (BHF) became a member of the Baptist Healthcare System after its acquisition in October of 2016. Since its inception in 1953, Baptist Health Floyd has grown to be an outstanding regional healthcare provider serving the needs of a seven county region, including Floyd, Clark, Crawford, Harrison, Orange, Scott and Washington counties in southern Indiana. Over 40% of the patients served come directly from Floyd County. BHF serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and comprehensive rehabilitation services. Approximately 16.5% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 5.1%, compared to 6.9% for the state of Indiana and the national average of 6.7% for 2020.Baptist Health Corbin (BHCOR) opened in 1986 in Corbin, Kentucky. It is located one-half mile off Interstate 75, approximately three miles from downtown Corbin and near U.S. Highway 25, which is a main access to several of the surrounding communities. The primary geographic service area for BHCOR consists of the counties of Knox, Laurel, Whitley, Bell, McCreary and Clay in Kentucky. BHCOR serves as a general acute care facility, offering 24 points of care in a full continuum from inpatient care to rehab services to behavioral health. Services include cardiac care, orthopedics, pain management, obstetrics and breast care, wound care, pain management and cancer care. Approximately 17% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 5.7%, compared to 6% for the state of Kentucky and the national average of 6.7% for 2020.Baptist Health La Grange, (BHLAG) provides a broad spectrum of healthcare services to Kentucky residents of Oldham, Henry, Trimble, Carroll and eastern Jefferson counties. Opened as Tri-County Community Hospital in 1987, the hospital joined the Baptist Health family in 1992, enlarging the facilities and expanding services to meet the needs of the growing community. The facility offers a 24-hour emergency department that is stroke certified by the Joint Commission, inpatient and outpatient surgery, imaging and MRI services, lab services, occupational therapy services, a sleep disorders lab and a five-star rated Skilled and Rehab Care Center. Approximately 82% of BHLAG's inpatients come from Oldham, Henry, Trimble and Carroll counties. Oldham County is a shared service area between Baptist Health Louisville and BHLAG. Approximately 13.5% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 3.9%, compared to 6% for the state of Kentucky and the national average of 6.7% for 2020.Baptist Health Richmond,(BHR) was founded in 1892 and became part of the Baptist Healthcare System in 2012. Effective September 1, 2019, BHR merged with its sole corporate member, Baptist Healthcare System Inc. BHR is a rural, acute care hospital that has served Madison and surrounding counties with primary and secondary services for more than a century. Its core programs include inpatient, outpatient, diagnostic and community services. The hospital offers 19 points of care in a full continuum from inpatient care to rehab services to home care, with a vast network of healthcare providers. Services include cardiac surgery and rehabilitation; orthopedics and spine care; occupational, physical and respiratory therapy; a full range of women's health and childbirth services; cancer care; diabetic treatment; a sleep disorders center and a retail pharmacy. The hospital offers outpatient surgery and infusion services on campus. Diagnostic services include a clinical laboratory; CT; MRI and radiologic imaging; nuclear medicine; cardiac catheterization and angioplasty. Staffed with board-certified emergency physicians and nurses, the Emergency Department treats more than 30,000 patients a year and trains for disaster preparedness annually with the federal government's Chemical Stockpile Emergency Preparedness Program (CSEPP). More than one third of BHR patients are from low-income households or underserved populations, and 97% of them live in Appalachia. Approximately 10.2% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 4.9%, compared to 6% for the state of Kentucky and the national average of 6.7% for 2020. Part VI, Line 5: PROMOTION OF COMMUNITY HEALTH:The BHS Board of Directors is comprised of local representatives who, along with the hospital's management and employees, understand that they are responsible for providing high quality health care services to the communities they serve. Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2020, Baptist was able to re-invest over $176 million into the communities in new technology, construction, renovation and systems improvement. BHS hospitals reach out to the community in many ways through: - Conducting health fairs for local schools, businesses and churches. - Participating in fund-raising and other events to help local agencies such as the American Heart Association, Metro United Way, American Cancer Society, Big Brothers and Big Sisters and the American Red Cross. - Donating hospital space for community group meetings. - Participating on community health assessment teams that are dedicated to identifying and addressing local health needs in each of the counties we serve. - Hosting educational programs, including our pre-natal classes, CPR, smoking cessation, AED training and safe sitter programs. - Maintaining necessary, but unprofitable services that meet community needs. - Helping to recruit physicians to underserved areas and extending medical staff provileges to all qualified physicians in our community for some or all of our departments and specialties.- Helping patients coordinate services with other healthcare providers. - Providing resources for support groups, such as cancer recovery groups. - Promoting and providing preventive care services. - Monitoring clinical outcomes in order to ensure quality care. - Committing resources to improving safety and processes of care. - Providing services conveniently accessible by patients. In addition, BHS employees volunteer thousands of hours in community services and leadership. BHS's support for community activities underscores its commitment to improving the lives of those served. Because BHS and its employees contribute so much of their time, talent and resources to serve others, communities served by BHS are better places to live and work. Quantification of many of the community benefits is detailed elsewhere in this schedule. However, what the quantifiable amount doesn't measure is the economic benefit derived by the community from BHS being one of the major employers in the area. The economic impact of the wages paid to BHS employees is significant considering the dollars they spend on food, housing, services, and other products. The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. BHS hospitals operate emergency departments that are open 24 hours a day, 365 days a year and treated over 277,000 emergency patients during fiscal year 2020. BHS and its emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient BHS may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, BHS does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention. Part VI, Line 6: AFFILIATED HEALTH CARE SYSTEM:Baptist Healthcare System, Inc., (BHS), is a nonprofit, tax-exempt organization that owns and operates seven hospitals. Baptist Health Madisonville, Inc. is a nonprofit, tax-exempt affiliate that owns and operates a hospital in Madisonville, KY. Baptist Health Medical Group, Inc. is a nonprofit, tax-exempt affiliate that owns and operates physician practices and other healthcare facilities. Baptist Healthcare Foundation, Inc., Baptist Health Foundation of Greater Louisville, Inc., Baptist Health Foundation Corbin, Inc., Baptist Health Foundation Richmond, Inc., Baptist Health Foundation Madisonville, Inc., Baptist Health Foundation Lexington, Inc., and Baptist Health Foundation Paducah, Inc. are nonprofit, tax-exempt affiliate corporations. Baptist Physicians' Surgery Center is a limited liability corporation, of which Baptist Healthcare System Inc. owns 55%. Baptist Health Surgery Center Eastpoint, (formerly known as Eastpoint Surgery Center, LLC. and owned 84% by BHS),is a non-profit limited liability corporation of which Baptist Healthcare System, Inc. owns 100% after purchasing the remaining interest on 1/1/2020. Baptist Health Surgery Center LLC. is a non-profit limited liability corporation formed in 2020 to purchase an existing surgery center in Lexington, KY. Baptist Healthcare System Inc. is the sole member.Baptist Health Network Partners, LLC. (BHNP), (formerly known as Purchase Health Quality Collaborative, LLC "PHQC"), formed in 2011, is a non-profit limited liability company whose sole member is BHS. BHNP was formed to support a physician/hospital network established by PHP, working with BHPAD to engage in clinical integration activities. Baptist Health Care Partners, LLC. (BHCP), formed in 2015, is a non-profit limited liability company whose sole member is BHS. BHCP was formed to participate in the CMS Medicare Shared Savings Program, (MSSP), as an Accountable Care Organization (ACO).Mercy Regional Emergency Medical System, LLC ("MREMS"), formed in 1996, is a non-profit taxable corporation, which owns and operates an ambulance service in McCracken County, Kentucky in the service area of BH Paducah. BHS owns a 50% interest in MREMS and the remaining 50% interest is owned by Mercy Health System, Inc. D.B.A. Lourdes Hospital. All related entities are located in the Commonwealth of Kentucky or the state of Indiana. All entities described in Schedule H, Part VI, Line 6 contributed a combined community benefit amount as follows: Charity Care at Cost $26,863,000 Unreimbursed Medicaid 33,018,000 Community Health Improvement 2,855,000 Health Professions Education 1,517,000 Subsidized Health Services 10,590,000 Research 1,747,000 Cash and In-Kind Contributions 1,129,000 Total Community Benefit $77,719,000 Part VI, Line 7, Reports Filed With States KY,IN Form 990, Schedule H, Impact of Covid-19 Baptist Health reached out to our state and our communities:Clinical leaders from Baptist Health, the largest health system in the Commonwealth of Kentucky, have played a principal role as advisors to the Commissioner for Public Health, the Cabinet for Health and Family Services ("CHFS"), Office of Inspector General, and other state agencies in response to the unprecedented needs of our community during the COVID-19 pandemic. In conjunction with leadership teams from other health systems and the Kentucky Hospital Association, Baptist Health played a lead role in advising and developing the State's COVID-19 policies and its guidelines on multiple matters including: --- Initial planning at the beginning of the COVID-19 pandemic to ensure the safety of patients, first responders and healthcare workers by establishing guidelines for the suspension of elective procedures, non-urgent/emergent radiology, therapy and ambulatory visits. --- Collaboration with the CHFS to help manage the nursing home and post-acute care setting emergencies that became a focal point of the COVID-19 pandemic. Baptist Health worked closely with the State to provide on-site resources in support of facilities that were in crisis, in an effort to help stabilize those facilities and provide care to vulnerable residents. --- Provided critical PPE and other necessary materials to fellow healthcare providers when the State was unable to secure much needed supplies. --- Coordinated key vendor relationships that allowed the State to secure high quality PPE products with fluid deliveries. These products were ultimately made available to nursing homes and other facilities that provided care and aid to indigent members of our community. --- The development of guidelines for restarting all non-emergent clinical services including the appropriate phasing and criteria required of hospitals to resume elective care, both in ambulatory and acute care settings.Two Baptist Health executives joined the Kentucky Procurement Advisory Committee to support entrepreneurs and small businesses that began producing PPE during the COVID 19 pandemic, allowing for the possibility of producing PPE on a permanent basis. The benefits of having a source of critical supplies in the US and within the State are significant. Healthcare and non-healthcare companies came together through this committee to develop an inventory system for the State to ensure that adequate inventory levels of appropriate supplies would be maintained in preparation for any future state of emergencies.The Baptist Health Back to Work Program was developed to help employers implement a safe return to work plan for their employees through convenient and easy-to-use screening and monitoring tools, including COVID-19 Testing Solutions, a web-based screening application, and a MyChart-based home monitoring and case management platform. Baptist Health is the only major health system in Kentucky or southern Indiana that offers customized COVID-19 solutions for employers. Baptist Health Child Care Centers extended childcare services to critical workers in key community services.Baptist Health ensured the safety of patients, providers and employees:Baptist Health acted swiftly and efficiently to the COVID-19 pandemic by responding to the needs of our communities, our patients and our staff members through implementing disaster readiness protocols and the following: --- In early March 2020, Baptist Health began to secure PPE to meet the expected COVID-related demand throughout each of its markets and developed System-wide warehousing and logistics plans to manage and distribute critical equipment and PPE to ensure that all facilities had adequate supplies at all times.--- Established local incident command operations in each market, with hospital and medical groups coordinating in to a single unit. The System Crisis Management Team coordinates efforts and all communications across the System to ensure safety, best practices and consistency of implementation.--- Baptist Health hospitals created respiratory evaluation centers to triage patients to specific COVID-19 testing sites away from emergency room and other facility entryways. --- Baptist Health created a central, system-wide respirator inventory to serve as a supply source in order to deploy equipment to specific locations based on need in the event of COVID-19 surge activity. At no time during the COVID-19 pandemic was any Baptist Health hospital without adequate respirator equipment.--- Baptist Health secured additional testing supplies and more rapid testing capabilities, and developed specific screening, testing and treatment protocols. --- Our quick pivot to digital healthcare solutions, with the creation of new processes and procedures and the enhancement of existing services, allowed us to provide healthcare services for patients to address their immediate medical needs, all while ensuring the safety of the patients, staff and physicians. Video teleconferencing services proved to be a valuable tool as it became a lifeline for our behavioral health patients. In just a few months, we advanced digital health services by years and have seen our patients embrace this change. We made access to healthcare more convenient and more readily available, and eased our patients and their caretakers' concerns about exposure to COVID-19. Because of these innovations, we will be able to continue to utilize and enhance digital solutions well in to the future.--- Baptist Health continues to make a concerted effort to support our communities by providing frequent education and assistance to community members and local businesses who have questions regarding operating in a COVID-19 environment.The Kentucky Department of Health rescinded the order limiting healthcare services effective May 13, 2020, and Baptist Healthcare System facilities initiated restart processes that were specialty-specific and focused on restoring the safe delivery of care to those most in need. Previously cancelled appointments and procedures were rescheduled and outpatient clinics were reopened in a gradual, thoughtful and safe manner. Telehealth and telemedicine continue to be utilized effectively to better protect patients and improve patient experience, and high quality PPE inventories are closely monitored to ensure the safety of patients and staff. Navigating the COVID-19 pandemic has accelerated the growth and development of innovations in the delivery of healthcare services that will positively affect how care is provided in the future. Baptist Health continuously monitors COVID-19 health data, statistics, trends, clinical information and research in order to reevaluate and reassess current policies and procedures so that we can maintain the highest safety standards and provide peak levels of care to our patients. Through 8/31/2020, Baptist Health facilities administered nearly 95,000 COVID-related diagnostic tests and screenings and treated over 3,600 COVID-19 patients. 1 Alzheimer's Association 6100 Dutchmans Lane Suite 401 Louisville KY 40205 133039601 501 (c)(3) 6000 General Support American Cancer Society 1504 College Way Lexington KY 40502 131788491 501 (c)(3) 25000 General Support American Heart Association 240 Whittington Parkway Louisville KY 40222 135613797 501 (c)(3) 67700 General Support Center for Women and Families PO Box 2048 927 South Second St Louisville KY 40201 610444846 501 (c)(3) 10000 General Support Citizens of Louisville Organized and United Together Inc 1113 S 4th Street Louisville KY 40203 611202173 501 (c)(3) 5000 General Support Commerce Lexington Inc 3300 E Main Street Lexington KY 40507 610258800 501 (c)(3) 10500 General Support Foundation for a Healthy Kentucky Inc 1640 Lyndon Farm Court Louisville KY 40223 311784753 501 (c)(3) 5000 General Support Hope Center Inc PO Box 6 Lexington KY 40588 611107296 501 (c)(3) 50000 General Support Iha Hospital Assistance Foundation inc 500 N Meridian Street Indianapolis IN 46204 455573748 501 (c)(3) 7124 General Support Ironcology 1185 Indian Mound Road Lexington KY 40502 825111678 501 (c)(3) 20000 General Support Jefferson Community and Technical College Foundation Inc 109 E Broadway Louisville KY 40202 237035648 501 (c)(3) 30000 General Support Kentucky and Southern Indiana Stroke Association 3425 Stony Brook Circle Louisville KY 40220 611335267 501 (c)(3) 7000 General Support Kentucky CancerLink 2425 Regency Road Lexington KY 40503 262704188 501 (c)(3) 5000 General Support Kentucky Chamber Foundation Inc 464 Chenault Road Frankfort KY 40601 611284992 501 (c)(3) 7500 General Support Kentucky Derby Festival Inc 1001 S 3rd Street Louisville KY 40203 610713833 501 (c)(3) 5000 General Support KY Baptist Convention 13420 Eastpoint Center Drive Louisville KY 40223 610549873 501 (c)(3) 35397 General Support Leadership Paducah Foundation Inc 300 South 3rd Street Paducah KY 42003 611390534 501 (c)(3) 5000 General Support Leadership Southern Indiana Inc 8204 Highway 311 Sellersburg IN 47172 351644080 501 (c)(3) 5000 General Support Leukemia and Lymphoma Society 3 International Drive Rye Brook NY 10573 135644916 501 (c)(3) 5000 General Support Lexington Strides Ahead Foundation 330 E Main Street Suite 205 Lexington KY 40507 611322448 501 (c)(6) 25000 General Support Louisville South FC Incorporated 3417 Southmeade Circle Louisville KY 40214 812784824 501 (c)(3) 200975 General Support March of Dimes 196 W Lowry Lane Lexington KY 40503 131846366 501 (c)(3) 23500 General Support McCracken County High School 6530 Old Highway 60 Paducah KY 42001 463183133 Government 15000 General Support National Multiple Sclerosis Society 1201 Story Avenue Suite 200 Louisville KY 40206 135661935 501 (c)(3) 8000 General Support Oldham County Board of Education 6165 W KY-146 Crestwood KY 40014 237075524 Government 10000 General Support Oldham County Chamber and Economic Development 112 S First Avenue LaGrange KY 40031 611243293 501 (c)(6) 6500 General Support One Southern Indiana 4100 Charlestown Road New Albany IN 47150 204176026 501 (c)(6) 16600 General Support Paducah Area Chamber of Commerce 300 South 3rd Street Paducah KY 42002 610210420 501 (c)(6) 5375 General Support Paducah Junior College PO Box 7380 Paducah KY 42002 616001156 501 (c)(3) 50000 General Support Paducah Symphony Orchestra 222 Kentucky Avenue Paducah KY 42003 610965156 501 (c)(3) 15000 General Support Refuge Clinic 2349 Richmond Road 220 Lexington KY 40502 371547506 501 (c)(3) 75000 General Support Southern KY Chamber of Commerce PO Box 1566 Corbin KY 40702 270825308 501 (c)(3) 8994 General Support The Carson Center 100 Kentucky Avenue Paducah KY 42001 611293428 501 (c)(3) 37500 General Support The Police Foundation of Paducah-McCracken County inc PO Box 594 Paducah KY 42002 462537273 501 (c)(3) 5000 General Support University of Louisville Research Foundation 2215 S Brook Street Louisville KY 40208 611029626 501 (c)(3) 25000 General Support WHAS Crusade For Children 520 W Chestnut Street Louisville KY 40202 237075524 501 (c)(3) 10000 General Support Women Leading Kentucky 620 Euclid Avenue 105 Lexington KY 40502 861120254 501 (c)(3) 5000 General Support 33 4 Part I, Line 2: Baptist Healthcare System provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed. X X X X X X 1 1 0 0 0 0 0 0 0 Gerard J Colman CEO & Director 1260381 0 1186664 0 15510 0 243199 0 28664 0 2734418 0 0 0 Patrick Falvey Chief Operating Officer 805834 0 630500 0 15708 0 143453 0 11170 0 1606665 0 0 0 Isaac Myers MD Chief Health Integration Officer 600210 0 282500 0 16524 0 119911 0 22013 0 1041158 0 0 0 Janet Norton Secretary & Vice President 543732 0 256903 0 177544 0 8400 0 27876 0 1014455 0 0 0 William G Sisson Vice President (Through 12/31/17) 606997 0 289282 0 23478 0 8400 0 11608 0 939765 0 0 0 Stephen R Oglesby CFO, Treasurer, VP 543274 0 244120 0 13902 0 96786 0 27704 0 925786 0 0 0 Daniel Eichenberger MD Hospital Pres (Through 1/2/20) 557298 0 247894 0 58636 0 4154 0 23691 0 891673 0 0 0 Kenneth Anderson MD VP & Chief Medical Officer 413350 0 364053 0 10668 0 8400 0 22364 0 818835 0 0 0 Larry Gray Hospital President 525598 0 193513 0 23478 0 8400 0 21222 0 772211 0 0 0 David Gray Vice President (Through 12/31/17) 0 0 0 0 559172 0 0 0 26303 0 585475 0 0 0 William A Brown Vice President (Through 8/8/17) 0 0 0 0 149100 0 0 0 5210 0 154310 0 0 0 Part I, Lines 4a-b Line 4a: Two former officers and one highest compensated employee received severance payments in 2019: William Brown $144,256 David Gray $562,200 Daniel Eichenberger, MD $47,018 Line 4b: Four officers and/or executives who participated in the Supplemental Executive Retirement Plan accrued amounts for 2019 which is a portion of the amount reported as deferred compensation in Schedule J, Column C. Other retirement and deferred compensation reported in Schedule J, Column C include amounts for the Retirement Accumulation Plan and Thrift Plan. The following individuals participate in and accrued amounts from the Supplemental Executive Retirement Plan: Gerard J. Colman $234,799 Isaac Myers, MD $111,511 Patrick Falvey $135,053 Stephen R. Oglesby $88,386 The following individual received a payout from the Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan, as she is fully vested in the plan: Janet Norton $161,020 Schedule J: Certain executives receive a cell phone stipend. A KY Economic Development Finance Authority 610600439 49126KFM8 2009-02-09 502227848 See Part VI 1 0 0 B KY Economic Development Finance Authority 610600439 49126KHR5 2011-12-14 136101238 See Part VI 0 0 0 C KY Economic Development Finance Authority 610600439 2015-12-15 18682500 See Part VI 0 0 0 D KY Economic Development Finance Authority 610600439 49126KLD1 2017-05-31 234927003 See Part VI 0 0 0 A 91710000 124320000 502247678 4753545 661234 99994925 396837974 2010 1 0 1 1 B 136739919 15207068 1482800 120048434 1617 2015 0 0 1 1 C 9337500 18682500 18682500 2015 1 0 1 1 D 234949536 2108234 20077563 212763739 2017 0 0 0 0 A 0 0 1 1 0 0.00100 0.00100 0 0 1 B 0 0 0 0 0 0 1 C 0 1 1 0 0 0.02190 0.02190 0 0 1 D 0 0 1 1 0 0 0 1 A 0 0 1 0 1 0 0 0 1 B 0 0 0 1 0 0 0 0 1 C 0 1 0 1 1 0 0 0 1 D 0 1 0 1 0 0 0 0 1 A 1 B 1 C 1 D 1 Date Rebate Computation Performed Issuer Name: KY Economic Development Finance Authority Date the Rebate Computation was Performed: 08/01/2016 Issuer Name: KY Economic Development Finance Authority Date the Rebate Computation was Performed: 12/01/2016 Issuer Name: KY Economic Development Finance Authority Date the Rebate Computation was Performed: 05/31/2020 Schedule K, Part I, Line A Description of Purpose: Series 2009A and 2009B Revenue Bonds were issued to redeem the 1/99, 1/05, and 12/05 bonds, and for the costs of acquiring and constructing hospital facilities, and for the purchase of equipment. Schedule K, Part I, Line B Description of Purpose: Series 2011 fixed rate Hospital Revenue Bonds were issued for the costs of certain hospital projects, including a portion of the costs of constructing and equipping a new medical structure connected to the existing hospital building at Baptist Health Lexington, (fka Central Baptist Hospital). Schedule K, Part I, Line C Description of Purpose: The series 2015a Bonds were issued to refinance the Series 2010 Variable Rate Demand Hospital Revenue Bonds issued by Baptist Health Madisonville. Schedule K, Part I, Line D The Series 2017B Bond was issued primarily for the purpose of paying and reimbursing the costs of construction, acquisition, installation, renovation and equipping health care and health related properties and facilities, and to pay all or a portion of the costs of issuance. Schedule K, Part I, Line A The 2017A Bond was issued primarily for the purpose of refinancing a portion of the bridge loan used as a component of the financing of the Baptist Health Floyd acquisition and to pay all or a portion of the financing of the cost of the issuance. Schedule K, Part II, Line 3, Col A, Col B, Col D The difference between Part I, Column (E), and Part II, Line 3, is due to investment earnings. Schedule K, Part II, Line 3, Column A The difference between Part I, Column (E), and Part II, Line 3, is due to investment earnings. Schedule K, Part II, Line 7-8, Column A The amounts reported on the 8038 represented estimates of the issuance costs and the credit enhancement fees. The amounts reported here are actual amounts paid from the proceeds. Schedule K, Part II, Line 7-8, Column B The amounts reported on the 8038 represented estimates of the issuance costs and the credit enhancement fees. The amounts reported here are actual amounts paid from the proceeds. A Indiana Finance Authority 351602316 45471CAZ1 2017-05-31 84818149 See Part VI 0 0 0 A 89818149 818149 89000000 0 0 1 1 A 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 Cary Lester Family of Director 136416 Wages 0 Susan D White Family of Director 139895 Wages 0 Jessica Greer Family of Director 13398 Wages 0 Form 990, Part III, Line 4a, Description of Program Service: Since its inception in 1924, Baptist Healthcare System, Inc. ("Baptist") has been dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist Healthcare System, Inc. under tax identification number 61-0444707 include: Baptist Health Louisville, located in Louisville, Kentucky; Baptist Health Corbin, located in Corbin, Kentucky; Baptist Health Lexington, located in Lexington, Kentucky; Baptist Health Paducah, located in Paducah, Kentucky; Baptist Health LaGrange, located in LaGrange, Kentucky, Baptist Health Richmond, located in Richmond, Kentucky, and Baptist Health Floyd, located in New Albany, Indiana. VISION: The vision of Baptist Health is to lead in clinical excellence, compassionate care and growth to meet the needs of our patients and to be the healthcare leader in Kentucky and Indiana. Having earned a reputation of providing high quality patient care and utilizing the latest in medical technology, patients seek out Baptist facilities for their care. According to state statistics for the period ended 6/30/2020, Baptist is one of the largest healthcare providers in the Commonwealth of Kentucky, providing more services than any other health system. KENTUCKY FY2020 HOSPITAL STATISTICS: LICENSED BEDS: 2,502 beds - the second largest number of beds of any health system in Kentucky. EMPLOYEES: 17,220 employees at end of the fiscal year - one of the top employers in Kentucky. INPATIENT CARE: 83,684 admissions/398,144 days - the largest number of admissions in Kentucky at a system-owned or managed hospital. One out of every six inpatients receiving care in Kentucky received care at a system-owned or managed hospital. OBSTETRIC (DELIVERIES): 11,139 babies - the largest number of babies delivered in Kentucky at a system-owned or managed hospital. Almost one in five babies in Kentucky was delivered at a Baptist owned or managed hospital. EMERGENCY VISITS: 277,977 registrations - the largest number of emergency visits in Kentucky at a system-owned or managed hospital. One in ten ED patients was treated at a system-owned or managed hospital. OUTPATIENT VISITS: 1,568,962 hospital visits - one in eleven outpatients in Kentucky receiving care in an acute-care setting was seen at a system-owned or managed hospital. MISSION: As indicated by its mission statement, "Baptist Health demonstrates the love of Christ by providing and coordinating care and improving health in our communities", BHS strives to continue its Christian heritage of service. Baptist is organized and operated exclusively for the benefit of each community and each hospital is considered a valuable community asset. The Baptist Boards of Directors are comprised of local representatives who, along with the hospitals' management and employees, understand that they are responsible to the communities for providing high quality health care services. Over the years, Baptist has gained a reputation for providing compassionate, high quality, cost efficient, patient friendly care. RESPONSIVE TO COMMUNITY NEEDS: Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. During the 2020 fiscal year, Baptist was able to re-invest over $176 million into the communities in new technology, construction, renovation and systems improvement. Because of the need to generate a modest margin while caring for all patients, Baptist strives to fulfill its community responsibility of collecting appropriate reimbursement from all patients who have the necessary resources while providing a generous, yet accountable charity care policy to assist those patients who do not have the means to pay for the services rendered. (See "Charity Care Policy" later in this section for further discussion). From a broad perspective, Baptist hospitals consistently provide a high level of quality care to every patient and enhance the health of the people it serves through health promotions, health screenings, medical research, community engagement and training of health professionals. OTHER COMMUNITY BENEFITS INCLUDE: - Maintaining necessary, but unprofitable services that meet community needs - Helping to recruit physicians to underserved areas - Helping patients coordinate services with other healthcare providers - Providing resources for support groups - Promoting and providing preventive care services - Monitoring clinical outcomes in order to ensure quality care - Committing resources to improving safety and processes of care - Providing services conveniently accessible by patients - Working with state and local agencies and governments to safely and effectively respond to public health emergencies. In addition, Baptist employees volunteer thousands of hours in community services and leadership. Baptist's support for community activities underscores its commitment to improving the lives of those served. Because Baptist and its employees contribute so much of their time, talent and resources to serve others, communities served by Baptist are better places to live and work. Quantification of many of the community benefits is detailed later in this section. However, what the Statement of Program Service Accomplishments doesn't measure is the economic benefit derived by each community from Baptist being one of the largest employers in the state. The economic impact of the wages paid to Baptist employees is significant considering the dollars they spend on food, housing, services and other products. Continued: CHARITY CARE POLICY: To further the mission of enhancing the health of the people and communities it serves, Baptist provides medically necessary inpatient and outpatient care to patients regardless of race, religion, sex, national origin, disability, age or their ability to pay. Recognizing that not all patients have the ability to pay, Baptist has a charity care policy to accurately evaluate a patient's ability to pay for services received. Baptist relies solely on the physician order to determine whether treatment is medically necessary and whether the patient is treated on an inpatient or outpatient basis. Neither the patient's financial condition nor their ability to pay for services has any bearing upon whether, or how, the patient is treated in a Baptist facility. Patients are transferred only when Baptist does not provide the specialized service that is required, or by specific request of the patient. Baptist has notices posted throughout the hospital that clearly communicate Baptist's charity care policy. Baptist employees are instructed in the application of the charity care policy and are trained to recognize situations that indicate the financial resources of a patient may be inadequate. These employees freely and willingly volunteer information regarding the charity care policy to any patient who may express a concern regarding the ability to pay for services. The policy provides that: 1. Patients/guarantors with resources of less than 200% of the Poverty Guideline for their family size will receive full charity. 2. Patients/guarantors with resources of 200% but less than 400% of the Poverty Guideline for their family size will qualify for partial charity. The ratio of resources up to 400% of the Poverty Guideline determines the percentage of the bill that will be the responsibility of the applicant. However, the liability is capped at 10% of the resources. 3. Patients/guarantors with resources of 400% of the Poverty Guideline for their family size but no more than 1200% of the Poverty Guideline for their family of one will qualify for partial charity if the liability exceeds 20% of their resources. In these situations, the patient/guarantor will be responsible for an amount not to exceed 20% of their resources. 4. If eligible for a charity discount, a patient will receive the discount regardless of whether they pay the balance on the bill. If necessary, payment arrangements may be made on the balance of the patient's bill in accordance with hospital procedures. In accordance with the provisions of Section 501(r), if charity care eligibility cannot be determined, good stewardship requires that the hospital initially begin the collection process. However, immediately upon determining that the guarantor is eligible for charity care, collection efforts on the balance eligible for charity will cease and the appropriate balance will be designated as charity. TAX-EXEMPT STATUS REQUIREMENTS: The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. Baptist operates Emergency Departments that are open 24 hours a day, 365 days a year and treated over 277,000 emergency patients during fiscal year 2020. Baptist facilities and emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient, Baptist may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, Baptist does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention. ACCOUNTABILITY TO THE BROADER COMMUNITY: As previously noted, the Baptist Board of Directors embraces its responsibility to represent the broader community in guiding Baptist in its provision of healthcare services. The Board meets periodically to provide oversight as to how best to continue to serve each community. Regularly scheduled meetings of the full Board and its Committees are described below: Board of Directors Quarterly Audit Committee Quarterly Executive Committee As needed Compensation Committee As needed Finance Committee Monthly Governance Effectiveness Committee Quarterly Enterprise Risk Committee Quarterly Quality and Mission Effectiveness Committee Quarterly Continued: One of the key functions of the Board is to ensure Baptist not only utilizes sound financial management, but also embraces a culture of compliance that permeates throughout the healthcare system. This is best demonstrated by Baptist's commitment of resources for compliance activities including the designation of a Compliance Officer. The compliance function reports to the Audit Committee (established in 1994) which is comprised of three independent members of the Board who are not members of either the Executive or Finance Committees. Additionally, at least one member has the expertise to be considered a financial expert in the public sector. Another key function of the Board is to ensure that compensation paid to executives is reasonable and meets the guidelines set forth by the Internal Revenue Service. Through the Compensation Committee, (CC), the Board ensures that: 1) members of the CC do not have any conflicts of interest, i.e., they are not employed or receive compensation subject to approval by the executives, 2) the compensation is approved in advance by the CC, 3) the CC obtains and relies upon appropriate comparability data in making decisions, 4) every form of compensation and benefit is included in the comparisons, 5) the CC documents the basis for its decision concurrently with making the decision, and 6) based upon the data, the compensation is reasonable. The following is a summary of Baptist's community service for the year ended August 31, 2020, in terms of services to the poor and indigent and the benefits provided to the communities it serves. QUANTIFIABLE COMMUNITY BENEFIT: Baptist is fully committed to its responsibility as a charitable organization and commits extensive resources to fulfill that obligation to the community. To the extent possible, Baptist has quantified the benefits provided to the communities it serves: Description Amount Benefits for the Poor and Indigent: Unreimbursed Cost of Charity Care $ 26,863,000 Unreimbursed Cost of Medicaid 33,018,000 -------------- Total Benefits for the Poor and Indigent $ 59,881,000 Benefits for the Broader Community: Net Loss on Subsidized Health Services $ 10,590,000 Community Health Improvement Services 2,855,000 Health Professions Education 1,517,000 Research 1,747,000 Financial & In-Kind Contributions 1,129,000 --------------- Total Benefits for the Community $ 17,838,000 ---------------- Total Quantifiable Community Benefit $ 77,719,000 GLOSSARY OF COMMUNITY BENEFIT TERMS: BENEFITS FOR THE POOR AND INDIGENT: Describes services provided to persons who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured. This includes those patients that qualify for Charity, Medicaid, Kentucky's Children Health Insurance Program (KCHIP), Kentucky Hospital Care Program (KHCP) and other citizens whose income is inadequate (based on each patient's individual circumstances). 1. Unreimbursed cost of charity care describes the services provided to persons who cannot afford to pay. It also includes the Health Care Provider Tax (Kentucky Revised Statutes 142.303) that is assessed on all hospital patient revenues received for the purpose of funding state Medicaid, KHCP and KCHIP programs. The amounts reflect the net cost of these services after reducing the costs for contributions and other revenues received by Baptist as direct assistance for the provision of care. 2. Unreimbursed cost of Medicaid reflects costs of treating Medicaid beneficiaries not reimbursed by government programs. BENEFITS FOR THE BROADER COMMUNITY: Describes services provided to other needy populations that may not qualify as indigent but that need special services and support. The benefits include the cost of health promotion and education, health clinics and screenings, and medical research that benefits the community. 1. Net loss on subsidized health services reflects the loss from services that would be discontinued if the decision were based on profit motives only. 2. Other community benefit includes costs incurred by Baptist in providing support and coordination of health education and awareness events as well as the cost of employees paid time to attend, staff, and coordinate these activities. 3. Baptist makes cash and in-kind donations on behalf of the poor and needy to community agencies and to special funds used for charitable purposes. Form 990, Part VI, Section A, line 2 The Board of Directors is made up of executives from related organizations. The following individuals have a business relationship in that they serve on the Board of Directors of the organization and are officers and/or directors of a related organization: Gerard Colman, Janet Norton and Stephen Oglesby. Form 990, Part VI, Section B, line 11b The internally prepared Form 990 is reviewed by an outside accounting firm. A copy of the IRS Form 990 is provided to the Board of Directors prior to the filing of the return. Any questions or comments are addressed by explanation or a change to the form. Form 990, Part VI, Section B, line 12c DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST: Annually the Secretary of BHS sends out a Conflict of Interest questionnaire to each of the directors and officers serving on the Board of BHS. After completion, they are returned to the Secretary and reviewed by the Board or the Governance Effectiveness Committee for any potential conflicts. A conflict of interest is any circumstance, relationship (financial or otherwise), activity or decision (made in the course of governance, management or professional responsibilities or otherwise) that adversely influences or appears to adversely influence the ability of a covered person to: 1) make objective decisions on behalf of BHS and/or 2) act in the best interests of BHS in a manner consistent with the tax-exempt purposes of BHS. The Board or Committee will determine by a majority vote of disinterested directors whether the disclosed financial or special interest may result in a conflict of interest. Form 990, Part VI, Section B, line 15 COMPENSATION DETERMINATION PROCESS: Annually in September, the BHS Compensation Committee reviews the compensation, including base compensation and incentive compensation, for the CEO and all officers and key employees of BHS. The BHS Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of BHS. Form 990, Part VI, Section C, line 19 AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, & FINANCIAL STATEMENTS TO GENERAL PUBLIC: In adherence to the Master Trust Indenture among BHS and U.S. Bank National Association, as Master Trustee, dated as of February 1, 2009, BHS reports its financial results on a quarterly basis to the Master Trustee who in turn makes them available through Electronic Municipal Market Access. Additionally, the organization will provide any documents open to public inspection upon request. Form 990, Part VII HOURS WORKED FOR RELATED ORGANIZATION: Officers for BHS provide services to BHS and its subsidiaries. Hours worked are not tracked on an entity by entity basis. Therefore, all officers' hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week for all entities. Form 990, Part VIII, Statement of Revenue Impact of COVID-19: Following the March 11, 2020 declaration by the World Health Organization (WHO) of COVID-19 as a pandemic, an order was issued by the Kentucky Department of Health, effective March 18, 2020, that required all non-essential healthcare services that utilized personal protective equipment ("PPE") be cancelled. In addition, Kentucky Governor Andy Beshear required all non-emergent, non-urgent in-person medical, surgical, dental and other healthcare practices and procedures to cease immediately. Because of these orders, Baptist Healthcare System experienced a significant decline in patient volumes and revenues. The pandemic also created a worldwide shortage of critical PPE and other patient supplies, which resulted in a tremendous increase in the cost of supplies used for patient care and employee safety. All of these events significantly affected the financial results for the fiscal year ended 8/31/2020. The financial impact of the decline in net patient service revenue and the increase in supply costs are reflected in Form 990, Part VIII, Statement of Revenue, and Part IX, Statement of Functional Expenses. Form 990, Part XI, line 9: MIS Funding 6,399,468. Transfer JV Fund 948,712. Physician Entity Funding -226,262,183. Other Changes -2,564,429. IS Depreciation -6,042,232. Post Retirement Change -1,532,407. Balance Sheet Transfer -2,875,013. Capital Released 443,252. Unrestricted Capital 1,293,588. Baptist Health Network Partners LLC 2501 Kentucky Avenue Paducah KY 42001 454290974 Physician Network KY 2545112 0 BHSI Baptist Health Care Partners LLC 2701 Eastpoint Parkway Louisville KY 40223 474067700 ACO KY 0 0 BHSI Baptist Health Surgery Center Eastpoint 2400 Eastpoint Parkway Louisville KY 40223 260834852 Ambulatory Surgery Center KY 290266 1172907 BHSI Baptist Health Surgery Center LLC 2701 Eastpoint Parkway Louisville KY 40223 843280181 Ambulatory Surgery Center KY 0 0 BHSI Baptist Health Medical Group Inc 2701 Eastpoint Parkway Louisville KY 40223 205497203 Physician Services KY 501(c)(3) Line 3 BHSI 1 Baptist Health Madisonville Inc 900 Hospital Drive Madisonville KY 42431 610654587 Hospital KY 501(c)(3) Line 3 BHSI 1 Mercy Regional Emergency Medical Systems 126 Lone Oak Road Paducah KY 42001 611310466 Ambulance Service KY 501(c)(3) Line 12a, I BHSI 1 Medical Center Ambulance Services Inc 629 Lafoon Street Madisonville KY 42431 610946210 Ambulance Service KY 501(c)(3) Line 10 N/A 1 Baptist Health Foundation Richmond Inc 2701 Eastpoint Parkway Louisville KY 40223 311506378 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Health Foundation Madisonville Inc 2701 Eastpoint Parkway Louisville KY 40223 472893430 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Health Foundation Corbin Inc 2701 Eastpoint Parkway Louisville KY 40223 473033550 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Health Foundation Lexington Inc 1740 Nicholasville Road Lexington KY 40503 611480774 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Health Foundation Paducah Inc 2501 Kentucky Avenue Paducah KY 42003 264057759 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Health Foundation Greater Louisville Inc 4000 Kresge Way Louisville KY 40207 200292291 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Baptist Healthcare Foundation Inc 2701 Eastpoint Parkway Louisville KY 40223 311122867 Fundraising KY 501(c)(3) Line 12a, I BHSI 1 Pattie A Clay Hospital Auxiliary PO Box 1600 Richmond KY 40476 510172717 Hospital Support KY 501(c)(3) Line 12a, I BHSI 0 Baptist East Milestone Fitness Center 750 Cypress Station Road Louisville KY 40207 611355065 Fitness Center KY BHSI Excluded 942305 3822043 0 0 0.50230 Baptist Physicicans Surgery Center 1720 Nicholasville Road Lexington KY 40503 043665929 Ambulatory Surgery Center KY BHSI Related 1269013 2984413 0 0 0.54650 Medical Associates of Middletown 4000 Kresge Way Louisville KY 40207 200399400 Medical Office Building KY BHSI Related 21795 775634 0 0 0.35000 Cumberland Valley Surgical Center LLC PO Box 1620 Corbin KY 40701 611348280 Ambulatory Surgery Center IN BHSI Related 408860 3791151 0 0 0.51000 1931 West Street 2701 Eastpoint Parkway Louisville KY 40223 831709486 Real Estate KY BHSI Related 0 0 1.00000 Northgate Medical Imaging LLC 1214 Spring Street Jeffersonville IN 47130 202246378 Outpatient Care Facility IN BHSI Related -169404 1737641 0 0 0.50000 Baptist Health Plan Inc 651 Perimeter Park Lexington KY 40517 611241101 Insurance KY BHSI C 1.00000 1 MS Community Health Inc 2701 Eastpoint Parkway Louisville KY 40223 611303514 Health Clinic KY BHMG C 1.00000 1 0 1 1 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 1 Baptist Health Care Partners Inc S 3210944 Cost Baptist Health Employer Solutions Inc Q 60000 Cost Baptist Health Foundation Corbin Inc B 117226 Cost Baptist Health Foundation Corbin Inc C 204577 Cost Baptist Health Foundation Lexington Inc B 443084 Cost Baptist Health Foundation Lexington Inc C 367997 Cost Baptist Health Foundation Lexington Inc R 141960 Cost Baptist Health Foundation Madisonville Inc R 69054 Cost Baptist Health Foundation of Greater Louisville Inc B 747918 Cost Baptist Health Foundation of Greater Louisville Inc C 625747 Cost Baptist Health Foundation of Greater Louisville Inc R 410841 Cost Baptist Health Foundation Paducah Inc B 254356 Cost Baptist Health Foundation Paducah Inc C 481840 Cost Baptist Health Foundation Paducah Inc R 343108 Cost Baptist Health Foundation Richmond Inc B 164468 Cost Baptist Health Foundation Richmond Inc C 1410732 Cost Baptist Health Foundation Richmond Inc R 173043 Cost Baptist Health Madisonville Inc S 37146345 Cost Baptist Health Madisonville Inc Q 25104589 Cost Baptist Health Medical Group Inc J 8859369 Cost Baptist Health Medical Group Inc Q 36513262 Cost Baptist Health Medical Group Inc S 17945313 Cost Baptist Health Medical Group Inc O 274184 Cost Baptist Health Medical Group Inc P 32195770 Cost Baptist Health Plan Inc S 2303795 Cost Baptist Health Surgery Center Eastpoint LLC J 259250 Cost Baptist Health Surgery Center Eastpoint LLC S 209008 Cost Baptist Health Surgery Center LLC J 455570 Cost Baptist Health Surgery Center LLC O 117724 Cost Baptist Healthcare Foundation Inc B 1122273 Cost Baptist Healthcare Foundation Inc R 512981 Cost Baptist Physicians Surgery Center LLC Q 90355 Cost Baptist Physicians Surgery Center LLC J 1119578 Cost Baptist Physicians Surgery Center LLC O 151432 Cost Cumberland Valley Surgical Center LLC R 199491 Cost