2020-05-13T14:00:34-05:00 2019-06-30 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2018-07-01 263956318 HSHS Medical Group Inc HSHS 2175234747 3051 Hollis Drive Springfield IL 62704 Melinda Clark CEO 2020-05-13 true Mallory Fairless P01321579 3128997000 2018 2020-11-19 02:30:22Z MELINDA CLARK 3051 Hollis Drive Springfield IL 62704 210881603 false 0928 X www.HSHSMedicalGroup.org X 2008 IL TO REVEAL AND EMBODY CHRIST'S HEALING LOVE FOR ALL PEOPLE THROUGH A HEALTH CARE MINISTRY BY PROVIDING PRIMARY AND SPECIALTY PHYSICIAN SERVICES TO THE COMMUNITIES HOSPITAL SISTERS HEALTH SYSTEM SERVES. 7 4 1428 4 0 0 0 0 192971740 210689884 -366390 54900 55802 0 192661152 210744784 0 42088 0 155749248 167005758 0 0 0 63074792 71731364 218824040 238779210 -26162888 -28034426 48997804 52385048 33541197 43859995 15456607 8525053 TO REVEAL AND EMBODY CHRIST'S HEALING LOVE FOR ALL PEOPLE THROUGH A HEALTH CARE MINISTRY BY PROVIDING PRIMARY AND SPECIALTY PHYSICIAN SERVICES TO THE COMMUNITIES HOSPITAL SISTERS HEALTH SYSTEM SERVES. false false 201775812 42088 210689884 SEE SCHEDULE O 201775812 true false false false false false false false false true false false true true true false true false false false false false false false false false false true true false false false false false false false false false false false false true true false false false true 119 0 true 1428 true false false false false false false true false false false false false X 7 4 false false false false true true true true true false false true true true true true true true true false X Linda Dace 2175234747 3051 Hollis Drive SPRINGFIELD IL 62704 MELINDA CLARK CEO MED GROUP 47.5 12.5 X X 0 711766 156264 MARC SHELTON MD 2019 Chair 1.0 53.0 X X 0 843857 75098 KENNETH JOHNSON MD 2018 & 2019 Chair (until April 2019) 2.5 47.5 X X 0 590095 94020 MARY STARMANN-HARRISON 2018 & 2019 VICE CHAIR 2.5 57.5 X X 0 1583289 291849 DONA MCGRAW 2018 & 2019 Secretary 1.0 2.0 X X 0 0 0 JAMES BURGETT BOARD MEMBER 1.0 3.0 X 0 0 0 TIM NICOUD JR Board Member 1.0 2.0 X 0 0 0 JOHN SLAYTON BOARD MEMBER 1.0 6.0 X 0 0 0 MARY EMBERTSON CFO MED GROUP (until 12/18/18) 49.8 0.3 X 350593 0 97852 Linda Dace CFO Med Group 49.7 0.3 X 23850 0 2900 ANN M CARR TREASURER 0.3 59.7 X 0 329829 110463 LOREN HUGHES PRESIDENT MED GROUP 59.9 0.1 X 541007 0 150595 DOUGLAS MAIBENCO PHYSICIAN 40.0 0 X 885379 0 35482 MOHAMMED RAHMAN PHYSICIAN 40.0 0 X 1039422 0 44175 MUHAMMAD RAQEEM PHYSICIAN 40.0 0 X 907143 0 24623 BASSIM ASSIOUN PHYSICIAN 40.0 0 X 859714 0 32577 TIMOTHY RUFF Physician 40.0 0 X 845413 0 57499 FRANK L MIKELL MEDICAL DIRECTOR (FORMER OFFICER) 16.0 1.0 X 104123 0 21864 5556644 4058836 1195261 354 true true false WEATHERBY LOCUMS INC 6451 N FEDERAL HIGHWAY STE 800 FORT LAUDERDALE FL 33308 PROVIDER SERVICES 3579993 PREFERRED PROFESSIONAL INSURANCE COMPANY 11605 Miracle Hills Drive Suite 200 Omaha NE 68154 PROVIDER SERVICES 3531323 HENRY SCHEIN Dept CH 10241 PALATINE IL 60055 PROVIDER SERVICES 3425386 ALLIANCE HEALTH STAFFING LLC 4332 N Elston Ave Chicago IL 60641 PROVIDER SERVICES 2303403 HOLLAND CONSTRUCTION INC 124 Springfield Ct Suite 100 OFallon IL 62269 Other Purchased Services 2301234 92 0 NET PATIENT SERVICE REVENUE 621110 79258647 79258647 PURCHASED SERVICE REVENUE 621110 108213840 108213840 Hospital Support Services 621990 23217397 23217397 0 0 0 0 210689884 65890 65890 0 0 125829 136819 125829 -136819 -10990 -10990 0 0 0 0 0 210744784 210689884 0 54900 X 42088 42088 1033055 1033055 125987 125987 138692134 126114002 12578132 5846278 5176933 669345 14332831 11322891 3009940 6975473 6290293 685180 241380 241380 29872 29872 30599678 19295639 11304039 0 1539009 780697 758312 6244731 5542068 702663 3622011 2342449 1279562 11062263 9881857 1180406 525077 353091 171986 443300 51504 391796 261 261 5155926 4701530 454396 4756680 4078861 677819 PROVISION FOR BAD DEBT 2646110 2789064 -142954 Equipment Expenses 582448 498936 83512 DUES & SUBSCRIPTIONS 207698 138085 69613 LICENSES 182221 179927 2294 3892699 2195897 1696802 0 238779210 201775812 37003398 0 8534210 6015258 7877067 4884128 6669685 9343052 0 0 0 451077 139262 1354668 1316464 34601803 11005871 18630095 23595932 0 0 575559 654686 4905443 6436266 48997804 52385048 22815201 25473115 9683 23990 0 10716313 18362890 33541197 43859995 X 15456607 8525053 15456607 8525053 48997804 52385048 X -28034426 -137931 21240803 X false true X true true true X X 9 ST ELIZABETH'S HOSPITAL BELLEVILLE ILLINOIS 370663567 3 false 0 0 ST JOSEPH'S HOSPITAL BREESE ILLINOIS 371208459 3 false 0 0 ST JOSEPH'S HOSPITAL HIGHLAND ILLINOIS 370663568 3 false 0 0 ST MARY'S HOSPITAL DECATUR ILLINOIS 370661244 3 false 0 0 HSHS GOOD SHEPHERD HOSPITAL SHELBYVILLE ILLINOIS 370512290 3 false 0 0 ST ANTHONY'S HOSPITAL EFFINGHAM ILLINOIS 370661233 3 false 0 0 ST FRANCIS HOSPITAL LITCHFIELD ILLINOIS 370661236 3 false 0 0 ST JOHN'S HOSPITAL SPRINGFIELD ILLINOIS 370661238 3 false 0 0 HSHS HOLY FAMILY HOSPITAL GREENVILLE ILLINOIS 370792770 3 false 0 0 9 0 0 false true false false false false false false false false false false false false false true false false X true true Schedule A, Part I, Line 12g(v) AMOUNT OF MONETARY SUPPORT HOSPITAL SISTERS HEALTH SYSTEM (HSHS) IS COMMITTED TO PROVIDING IMPROVED ACCESS TO HIGH QUALITY, INTEGRATED HEALTHCARE. EACH HSHS AFFILIATE, INCLUDING THE HSHS MEDICAL GROUP, HAS A RESPONSIBILITY TO SUPPORT THIS COMMITMENT. THROUGH THEIR INVESTMENT IN THE GROWTH OF HSHS MEDICAL GROUP, EACH HSHS HOSPITAL PROVIDES THE FINANCIAL SUPPORT NECESSARY TO RECRUIT AND RETAIN PRIMARY AND SPECIALTY CARE MEDICAL PROVIDERS IN ORDER TO MEET THE COMMUNITIES' HEALTHCARE NEEDS. INVESTING IN THE HSHS MEDICAL GROUP SUPPORTS IMPROVED ACCESS TO CARE, CREATES SEAMLESS MEDICAL INTEGRATION BETWEEN HOSPITALS AND PROVIDERS, AND IMPROVES THE OVERALL HEALTH OF THE COMMUNITIES SERVED. Schedule A, Part IV, Section D, Line 3 SUPPORTED ORG. VOICE IN INVESTMENT POLICIES THE SOLE CORPORATE MEMBER OF HSHS MEDICAL GROUP, INC. ("HSHS-MG") AND EACH OF HSHS-MG'S SUPPORTED ORGANIZATIONS IS HOSPITAL SISTERS HEALTH SERVICES, INC. ("HSSI"). THE SOLE CORPORATE MEMBER OF HSSI IS HOSPITAL SISTERS HEALTH SYSTEM ("HSHS"), AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE THE OVERALL INVESTMENT OBJECTIVE OF HOSPITAL SISTERS HEALTH SYSTEM (HSHS), THE SOLE CORPORATE MEMBER OF HOSPITAL SISTERS SERVICES, INC. (HSSI), IS TO INVEST ITS ASSETS IN A PRUDENT MANNER THAT WILL ACHIEVE AN EXPECTED RATE OF RETURN, MANAGE RISK EXPOSURE, AND FOCUS ON DOWNSIDE PROTECTION. HSHS' INVESTED ASSETS WILL MAINTAIN SUFFICIENT LIQUIDITY TO FUND A PORTION OF HSHS' ANNUAL OPERATING ACTIVITIES AND STRUCTURE THE INVESTED ASSETS TO MAINTAIN A HIGH PERCENTAGE OF AVAILABLE LIQUIDITY. HSHS DIVERSIFIES ITS INVESTMENTS AMONG VARIOUS ASSET CLASSES INCORPORATING MULTIPLE STRATEGIES AND MANAGERS. THE HSHS BOARD APPROVES THE INVESTMENT POLICY STATEMENT ("IPS"). HSHS HAS AN INVESTMENT SUBCOMMITTEE COMPRISED OF INDIVIDUALS EXPERIENCED IN INVESTMENTS AND INVESTMENT RELATED MATTERS. THE INVESTMENT SUBCOMMITTEE OVERSEES THE INVESTMENT PROGRAM IN ACCORDANCE WITH THE IPS. THE SUBCOMMITTEE INCLUDES BOTH THOSE WHO SERVE ON THE HSHS BOARD OF DIRECTORS AND OTHERS. THE SUBCOMMITTEE, MANAGEMENT, AND THE INVESTMENT CONSULTANT DEVELOP INVESTMENT POLICIES, RECOMMEND ASSET ALLOCATION AND INVESTMENT MANAGER CHANGES, MONITOR AND REVIEW INVESTMENT PERFORMANCE, RISK, AND ADHERENCE TO THE IPS. Schedule A, Part IV, Section A, Line 1 Supported Orgs Listed By Name HSHS Medical Group, Inc. ("HSHS-MG") is an Illinois not-for-profit corporation, which is organized and operated exclusively for religious, charitable, educational and/or scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code to promote and support, directly or indirectly, by donation, loan, or otherwise, the interests and purposes of the Congregation of the Hospital Sisters of the Third Order Regular of St. Francis, a religious institute within the Roman Catholic Church (the "Congregation"); be devoted primarily to the provision, management, or support of health care services; and be under common control with the hospitals sponsored by the Congregation ("Hospitals"). HSHS-MG primarily provides management or support of health care services to the Hospitals. Schedule A, Part IV, Section A, Line 2 Supported Org. Without IRS Status 509(a)1 or (2) EACH OF THE SUPPORTING HOSPITAL ORGANIZATIONS IS LISTED IN THE OFFICIAL CATHOLIC DIRECTORY AND IS RECOGNIZED AS EXEMPT UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE UNDER GROUP EXEMPTION NUMBER (GEN) 0928. SUBORDINATE ORGANIZATIONS UNDER A GROUP EXEMPTION DO NOT RECEIVE INDIVIDUAL EXEMPTION LETTERS. ALSO SEE NARRATIVE FOR SCHEDULE A, PART IV, SECTION A, LINE 1. Schedule A, Part IV, Section D, Line 2 Officers Appointed Or Serving Supported Org. Hospital Sisters Health Services, Inc. ("HSSI") is the sole corporate member of HSHS Medical Group, Inc. ("HSHS-MG") and each of HSHS-MG's supported organizations. PURSUANT TO SECTION 2.3 OF HSHS-MG'S BYLAWS AND THE BYLAWS OF EACH OF HSHS-MG'S SUPPORTED ORGANIZATIONS, HSSI HAS THE RIGHT TO APPOINT AND REMOVE THE CORPORATIONS' BOARD OF DIRECTORS, CHAIRPERSON OF THE BOARD AND PRESIDENT. RESPONSIBILITY FOR THE POLICY AND OPERATIONS OF HSHS-MG AND EACH OF HSHS-MG'S SUPPORTED ORGANIZATIONS (THE "CORPORATIONS") IS VESTED IN THE BOARD OF DIRECTORS, EXCEPT WITH RESPECT TO SPECIFIC POWERS RESERVED IN THE CORPORATIONS' BYLAWS TO HSSI. THE GOVERNANCE AND OPERATIONS OF THE CORPORATIONS ARE SUBJECT TO HSSI'S EXCLUSIVE RIGHT TO EXERCISE THESE RESERVED POWERS WITH RESPECT TO CORPORATION AND ORGANIZATIONS OF WHICH THE CORPORATION IS EITHER, DIRECTLY OR INDIRECTLY, A CONTROLLING MEMBER OR A CONTROLLING SHAREHOLDER ("AFFILIATES"). THE RESERVED POWERS INCLUDE ALL RIGHTS GRANTED TO HSSI BY LAW AND THE RIGHT TO: (A) ADOPT, APPROVE AMENDMENTS TO, OR AMEND ANY STATEMENT OF PHILOSOPHY, MISSION, MISSION INTEGRATION OR VALUES OR ANY NAME, LOGO, OR MARK OF THE CORPORATION OR OF ANY AFFILIATE; (B) ADOPT, APPROVE AMENDMENTS TO, OR AMEND THE ARTICLES OF INCORPORATION OF THE CORPORATION OR OF ANY AFFILIATE; (C) ADOPT, APPROVE AMENDMENTS TO, OR AMEND THE BYLAWS OF THE CORPORATION OR OF ANY AFFILIATE; (D) APPOINT AND REMOVE THE BOARD OF DIRECTORS, ANY ONE OR MORE OF THE DIRECTORS OF THE CORPORATION OR OF ANY AFFILIATE, AND THE CHAIRPERSON AND PRESIDENT OF THE CORPORATION OR OF ANY AFFILIATE; (E) APPROVE THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO APPOINT OR REMOVE THE BOARD OF DIRECTORS, ANY ONE OR MORE DIRECTORS OF THE CORPORATION OR OF ANY AFFILIATE, AND THE CHAIRPERSON AND PRESIDENT OF THE CORPORATION OR OF ANY AFFILIATE. (F) WITH RESPECT TO THE CORPORATION OR ANY AFFILIATE, APPROVE THE PURCHASE, SALE, ALIENATION, EXCHANGE, LEASE OR ENCUMBRANCE OF ANY REAL PROPERTY OF THE CORPORATION OR OF ANY AFFILIATE, WHICH PROPERTY HAS A VALUE IN EXCESS OF LIMITS SET FROM TIME TO TIME BY THE MEMBER; (G) APPROVE THE OPERATING AND CAPITAL BUDGETS OF THE CORPORATION OR OF ANY AFFILIATE, AND ANY DEVIATIONS BY THE CORPORATION OR ANY AFFILIATE FROM SUCH BUDGETS IN AN AMOUNT OR PERCENTAGE SPECIFIED BY THE MEMBER FROM TIME TO TIME; (H) APPROVE THE STRATEGIC PLAN AND GOALS OF THE CORPORATION OR OF ANY AFFILIATE; (I) APPROVE THE SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF THE CORPORATION OR OF ANY AFFILIATE; (J) APPROVE THE MERGER OR DISSOLUTION OF THE CORPORATION OR OF ANY AFFILIATE; (K) ADOPT OR AMEND THE PLAN FOR MINISTRY EDUCATION AND GOVERNANCE FOR THE CORPORATION AND ITS AFFILIATES; (L) APPROVE THE CORPORATION'S MISSION ACCOUNTABILITY REPORTS AND THOSE OF ANY AFFILIATE; (M) APPROVE THE FINANCIAL POLICIES AND PROCEDURES OF THE CORPORATION OR OF ANY AFFILIATE AND APPROVE ANY DEVIATIONS FROM SUCH POLICIES AND PROCEDURES BY THE CORPORATION OR ANY AFFILIATE; (N) ADOPT POLICIES TO IMPLEMENT THE RESERVED POWERS OF THE MEMBER; (O) OUTSIDE THE BUDGETING PROCESS OF THE CORPORATION, APPROVE OR AMEND CHANGES TO A SUBSTANTIAL PART OR ALL OF THE PRICE LIST OR CHARGEMASTER OF THE CORPORATION FOR PATIENT SERVICES; AND (P) ADOPT AND AMEND EMPLOYEE AND INDEPENDENT CONTRACTOR TEMPLATE AGREEMENTS AND COMPENSATION RANGES, PLANS, POLICIES AND METHODOLOGIES (INCLUDING THE AWARDING OF ANY INCENTIVE COMPENSATION) AND BENEFITS. Schedule A, Part IV, Section E, Line 2a Org. Activities Directly Further The Exempt Purposes The HSHS-MG's mission is to deliver, manage and support health care and medical services to the community of an affiliate hospital. The HSHS-MG provides health care, medical services and health-related education for the benefit of the community in a systematic, integrated and coordinated fashion with the Hospitals and their affiliates. The HSHS-MG is engaged in the instruction of the general public in the area of medical science, public health, and hygiene and related instruction useful to the individual and beneficial to the community. Schedule A, Part IV, Section E, Line 2b Activities That One Or More Supp. Org. Engaged In The HSHS-MG is an integral part of delivering improved integration and coordination of health services for the communities it serves. There may be some cases were the model of the HSHS-MG is not an effective model to follow. In some cases affiliate hospitals may engage in similar activity with the goal of improving coordination of care and patient satisfaction. 23884951 7906840 15978111 6211681 1793199 4418482 4505171 1305832 3199339 23595932 DUE FROM AFFILIATES 6326966 Capital Leases, net 50860 Software, net 58440 6436266 PENSION LIABILITY 13065688 DUE TO AFFILIATES 5297202 18362890 X Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote HSHS and the Foundation are Illinois not-for-profit organizations as described in Section 501(c) (3) of the Internal Revenue Code (the Code) and are exempt from federal income taxes on related income pursuant to Section 501(a) of the Code. Kiara, Inc. is an Illinois for-profit corporation that recognizes income taxes under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The net operating loss carryforwards result in a deferred tax asset of $70,000 and $60,575 at June 30, 2019 and 2018, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable losses and projections for future taxable losses over the periods for which the deferred tax assets are deductible, management believes it is more likely Kiara, Inc. will not realize the majority of the benefits of these deductible differences. Full valuation allowances have been applied against the deferred tax assets attributable to the net operating loss carryforwards not realized as of June 30, 2019 and 2018 in the accompanying consolidated financial statements due to the uncertainty of realization. HSHS recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. As of June 30, 2019 and 2018, HSHS does not have any liabilities for unrecognized tax benefits. true Education Assistance (Tuition Reimbursement) 19 42088 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. In accordance with HSHS Human Resources Policies, the organization ensures grants are used for their intended purposes through various procedures as set forth by the policy for Education Assistance. Such procedures, as outlined by the policy, include, but are not limited to detailed eligibility requirements, specifications regarding eligible educational courses, limitations on annual allowances and eligible hours, requirements to achieve certain passing grades for eligible courses and reimbursement made only upon completion of such eligible courses. X X X X X false true false false false false false false false MELINDA CLARK CEO MED GROUP 0 572399 0 9781 0 129586 0 145576 0 10688 0 868030 0 104969 MARC SHELTON MD 2019 Chair 0 704802 0 48176 0 90879 0 58410 0 16688 0 918955 0 75315 KENNETH JOHNSON MD 2018 & 2019 Chair (until April 2019) 0 530956 0 12005 0 47134 0 65765 0 28255 0 684115 0 28309 MARY STARMANN-HARRISON 2018 & 2019 VICE CHAIR 0 1231667 0 32891 0 318731 0 268169 0 23680 0 1875138 0 273086 FRANK L MIKELL MEDICAL DIRECTOR (FORMER OFFICER) 104123 0 0 0 0 0 0 0 21864 0 125987 0 0 0 MARY EMBERTSON CFO MED GROUP (until 12/18/18) 332050 0 0 0 18543 0 84883 0 12969 0 448445 0 0 0 ANN M CARR TREASURER 0 268272 0 4360 0 57197 0 89873 0 20590 0 440292 0 28431 LOREN HUGHES PRESIDENT MED GROUP 538909 0 0 0 2098 0 122244 0 28351 0 691602 0 0 0 DOUGLAS MAIBENCO PHYSICIAN 845316 0 21563 0 18500 0 6917 0 28565 0 920861 0 0 0 MOHAMMED RAHMAN PHYSICIAN 1006299 0 14063 0 19060 0 18506 0 25669 0 1083597 0 0 0 MUHAMMAD RAQEEM PHYSICIAN 873173 0 15030 0 18940 0 14625 0 9998 0 931766 0 0 0 BASSIM ASSIOUN PHYSICIAN 837796 0 15938 0 5980 0 5319 0 27258 0 892291 0 0 0 TIMOTHY RUFF Physician 821585 0 23438 0 390 0 29548 0 27951 0 902912 0 0 0 Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation PLEASE SEE RESPONSE TO FORM 990, PART VI, LINE 15A IN SCHEDULE O. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan HSHS EXECUTIVES ELIGIBLE TO PARTICIPATE IN SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) ARE DEFINED IN THE SERP PLAN DOCUMENTS;. THE SERP WAS ESTABLISHED TO PROVIDE ADDITIONAL RETIREMENT BENEFITS TO ENSURE REASONABLE MARKET COMPETITIVE BENEFITS IN ACCORDANCE WITH THE HSHS EXECUTIVE COMPENSATION PHILOSOPHY ESTABLISHED BY THE HSHS COMPENSATION COMMITTEE. THE PLAN PROVIDES A DEFINED RETIREMENT CONTRIBUTION TO PARTICIPANTS COMMENCING ON JANUARY 1, 2008, EQUAL TO A PERCENTAGE OF COMPENSATION AS DEFINED IN THE SERP PLAN DOCUENTS FOR THE PLAN YEAR. PARTICIPANTS CONSTRUCTIVELY RECEIVE A DISTRIBUTION FROM THE PLAN NO LATER THAN MARCH 15TH OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH AN AMOUNT IS VESTED and TAXABLE PURSUANT TO A VESTING SCHEDULE AS SPECIFIED IN THE PLAN DOCUMENT. THE ACTUAL DISTRIBUTION OF THE VESTED BENEFIT UNDER THE PLAN IS PAID IN A SINGLE LUMP SUM TO THE PARTICIPANT OR THE PARTICIPANT'S BENEFICIARY UPON THE EARLIER OF THE PARTICIPANT'S TERMINATION OF EMPLOYMENT, DEATH, OR TOTAL AND PERMANENT DISABILITY. THE FOLLOWING INTERESTED PERSONS CONSTRUCTIVELY RECEIVED DEFERRALS TO THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) IN 2018; THESE DEFERRALS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). ANN M. CARR -- $29,653 MARY STARMANN-HARRISON -- $193,724 MELINDA CLARK -- $80,139 MARY EMBERTSON - $28,378 LINDA DACE - $1,921 LOREN HUGHES - $54,651 KENNETH JOHNSON -- $65,765 THE FOLLOWING INTERESTED PERSONS RECEIVED DISTRIBUTIONS FROM THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) IN 2018; THESE PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III) AND SCHEDULE J, PART II, COLUMN (F), AS APPLICABLE. ANN M. CARR -- $28,431 MELINDA CLARK -- $104,969 MARY STARMANN-HARRISON -- $273,086 KENNETH JOHNSON -- $28,309 Marc Shelton -- $75,315 Form 990, Part III, Line 4a FORM 990, PART III, LINE 4A HSHS MEDICAL GROUP IS THE PHYSICIAN ORGANIZATION OF HOSPITAL SISTERS HEALTH SYSTEM ("HSHS"), A HEALTH CARE MINISTRY OF THE CATHOLIC CHURCH. AS A MISSION-BASED ORGANIZATION, IT IS OUR DESIRE TO CONNECT WITH ALL WHO SEEK CARE, HEALING, AND HOPE. PRIMARILY THE MISSION IS FILLED THROUGH PATIENT ACCESS OF PRIMARY CARE PROVIDERS, INCLUDING FAMILY MEDICINE, INTERNAL MEDICINE, AND PEDIATRICS. TO ENSURE ACCESS TO HEALTH CARE FOR ALL, A CHARITY CARE POLICY HAS BEEN IMPLEMENTED FOR ALL PRACTICES OF THE HSHS MEDICAL GROUP. THE CHARITY CARE POLICY HELPS ENSURE THAT ALL WHO COME TO US WILL RECEIVE QUALITY CARE, AND ARE TREATED WITH RESPECT AND COMPASSION. THE HSHS MEDICAL GROUP CHARITY CARE POLICY PROVIDES PATIENTS WITH AN OPPORTUNITY TO QUALIFY FOR FINANCIAL ASSISTANCE WHEN RECEIVING NON-ELECTIVE SERVICES. THE LEVEL OF CHARITY CARE ASSISTANCE FOR WHICH ANY PERSON IS ELIGIBLE IS BASED, IN PART, ON THEIR INCOME COMPARED TO THE CURRENT YEAR FEDERAL POVERTY GUIDELINES. TO QUALIFY FOR CHARITY CARE, A PERSON COMPLETES A TWO-PART INCOME TEST. PART ONE DETERMINES THAT NO OTHER GOVERNMENTAL OR PRIVATE INSURANCE IS AVAILABLE TO THE PERSON. PART TWO FOLLOWS A PROCESS TO DETERMINE THE CHARITY AMOUNT IN RELATIONSHIP TO THE PERSON'S/FAMILY'S INCOME. THE HSHS MEDICAL GROUP CHARITY CARE PROGRAM IS BASED ON THE CURRENT YEAR FEDERAL POVERTY GUIDELINES ("FPG") ISSUED BY THE DEPARTMENT OF HEALTH & HUMAN SERVICES ANNUALLY AND PUBLISHED IN THE FEDERAL REGISTER. AN FPG AND CHARITY ALLOWANCE TABLE IS UPDATED ANNUALLY BY THE HSHS MEDICAL GROUP AND IS USED TO DETERMINE WHETHER THE PERSON QUALIFIES FOR CHARITY CARE AND, IF SO, AT WHAT LEVEL. THE AMOUNT IS DETERMINED BY MULTIPLYING THE ALLOWANCE LEVEL SPECIFIED IN THE TABLE BY TOTAL CHARGES CALCULATED USING THE RATE OF 150% OF THE MEDICARE ALLOWABLE CHARGE FOR EACH ITEM OR SERVICE RENDERED DURING THE VISIT BASED ON THE APPLICABLE MEDICARE LOCALITY. Form 990, Part VI, Line 13 WHISTLEBLOWER POLICY PROVISIONS WITHIN THE CORPORATE COMPLIANCE PROGRAM AND CONFLICT OF INTEREST POLICY PROVIDE PROTECTIONS FOR WHISTLEBLOWER TYPE ACTIVITIES. Form 990, Part VI, Line 1a Delegate broad authority to a committee Per Article 5.5 of the organization's By-Laws, the governing body delegates broad authority to an executive committee. The executive committee shall be vested with and may in its discretion exercise the full powers, duties, responsibilities, and authority of the board except where prohibited by law and subject to any limitations imposed by the Bylaws or the board of directors. As provided in the By-Laws, the executive committee shall consist of three to six members, including the chairperson of the board, the vice chairperson, the president and other members selected from among the directors by the board. Form 990, Part VI, Line 6 Classes of members or stockholders THE SOLE CORPORATE MEMBER OF HSHS MEDICAL GROUP, INC. (THE CORPORATION) IS HOSPITAL SISTERS SERVICES, INC. ("HSSI"), AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body PURSUANT TO SECTION 2.3 OF THE CORPORATION'S BYLAWS, THE ORGANIZATION'S MEMBER, HOSPITAL SISTERS SERVICES, INC. ("HSSI"), AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, HAS THE RIGHT TO APPOINT AND REMOVE THE CORPORATION'S BOARD OF DIRECTORS. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders RESPONSIBILITY FOR THE POLICY AND OPERATIONS OF HSHS MEDICAL GROUP, INC. (THE "CORPORATION") IS VESTED IN ITS BOARD OF DIRECTORS, EXCEPT WITH RESPECT TO SPECIFIC POWERS RESERVED IN THE CORPORATION'S BYLAWS TO THE CORPORATION'S MEMBER, HOSPITAL SISTERS SERVICES, INC. ("HSSI"), AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE MEMBER OF HSSI IS HOSPITAL SISTERS HEALTH SYSTEM ("HSHS"), AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE GOVERNANCE AND OPERATIONS OF THE CORPORATION ARE SUBJECT TO HSSI'S RIGHT TO EXERCISE THESE RESERVED POWERS WITH RESPECT TO THE CORPORATION AND ORGANIZATIONS OF WHICH THE CORPORATION IS EITHER, DIRECTLY OR INDIRECTLY, A CONTROLLING MEMBER OR A CONTROLLING SHAREHOLDER ("AFFILIATES"). HSSI'S RIGHT TO EXERCISE CERTAIN OF THESE RESERVED POWERS IS, IN TURN, SUBJECT TO THE APPROVAL OF HSHS AND HSHS' MEMBERS. THE RESERVED POWERS INCLUDE ALL RIGHTS GRANTED TO HSSI BY LAW AND THE RIGHT TO: (A) ADOPT, APPROVE AMENDMENTS TO, OR AMEND ANY STATEMENT OF PHILOSOPHY, MISSION, MISSION INTEGRATION, OR VALUES OR ANY NAME, LOGO, OR MARK OF THE CORPORATION OR OF ANY AFFILIATE; (B) ADOPT, APPROVE AMENDMENTS TO, OR AMEND THE ARTICLES OF INCORPORATION OF THE CORPORATION OR OF ANY AFFILIATE; (C) ADOPT, APPROVE AMENDMENTS TO, OR AMEND THE BYLAWS OF THE CORPORATION OR OF ANY AFFILIATE; (D) APPOINT AND REMOVE THE BOARD OF DIRECTORS, ANY ONE OR MORE OF THE DIRECTORS OF THE CORPORATION OR OF ANY AFFILIATE, AND THE CHAIRPERSON AND PRESIDENT OF THE CORPORATION OR OF ANY AFFILIATE; (E) APPROVE THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO APPOINT OR REMOVE THE BOARD OF DIRECTORS, ANY ONE OR MORE DIRECTORS OF THE CORPORATION OR OF ANY AFFILIATE, AND THE CHAIRPERSON AND PRESIDENT OF THE CORPORATION OR OF ANY AFFILIATE. (F) WITH RESPECT TO THE CORPORATION OR ANY AFFILIATE, APPROVE THE PURCHASE, SALE, ALIENATION, EXCHANGE, LEASE, OR ENCUMBRANCE OF ANY REAL PROPERTY OF THE CORPORATION OR OF ANY AFFILIATE, WHICH PROPERTY HAS A VALUE IN EXCESS OF LIMITS SET FROM TIME TO TIME BY THE MEMBER; (G) APPROVE THE OPERATING AND CAPITAL BUDGETS OF THE CORPORATION OR OF ANY AFFILIATE, AND ANY DEVIATIONS BY THE CORPORATION OR ANY AFFILIATE FROM SUCH BUDGETS IN AN AMOUNT OR PERCENTAGE SPECIFIED BY THE MEMBER FROM TIME TO TIME; (H) APPROVE THE STRATEGIC PLAN AND GOALS OF THE CORPORATION OR OF ANY AFFILIATE; (I) APPROVE THE SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF THE CORPORATION OR OF ANY AFFILIATE; (J) APPROVE THE MERGER OR DISSOLUTION OF THE CORPORATION OR OF ANY AFFILIATE; (K) ADOPT OR AMEND THE PLAN FOR MINISTRY EDUCATION AND GOVERNANCE FOR THE CORPORATION AND ITS AFFILIATES; (L) APPROVE THE CORPORATION'S MISSION ACCOUNTABILITY REPORTS AND THOSE OF ANY AFFILIATE; (M) APPROVE THE FINANCIAL POLICIES AND PROCEDURES OF THE CORPORATION OR OF ANY AFFILIATE AND APPROVE ANY DEVIATIONS FROM SUCH POLICIES AND PROCEDURES BY THE CORPORATION OR ANY AFFILIATE; (N) ADOPT POLICIES TO IMPLEMENT THE RESERVED POWERS OF THE MEMBER; (O) OUTSIDE THE BUDGETING PROCESS OF THE CORPORATION, APPROVE OR AMEND CHANGES TO A SUBSTANTIAL PART OR ALL OF THE PRICE LIST OR CHARGEMASTER OF THE CORPORATION FOR PATIENT SERVICES; AND (P) ADOPT AND AMEND EMPLOYEE AND INDEPENDENT CONTRACTOR TEMPLATE AGREEMENTS AND COMPENSATION RANGES, PLANS, POLICIES AND METHODOLOGIES (INCLUDING THE AWARDING OF ANY INCENTIVE COMPENSATION) AND BENEFITS. Form 990, Part VI, Line 11b Review of form 990 by governing body THE ORGANIZATION EMPLOYS CROWE LLP TO ASSIST IN THE OVERALL REVIEW AND ELECTRONIC SUBMISSION OF ITS FORM 990. CROWE LLP PROVIDES GUIDANCE IN IDENTIFYING CRITICAL ERRORS IN THE RETURN SUBMISSION AND FEEDBACK ON QUANTITATIVE AND QUALITATIVE RESPONSES. ADDITIONALLY, THE ORGANIZATION'S CFO PERFORMS A THOROUGH REVIEW OF THE RETURN AND REVIEWS IT WITH THE HOSPITAL CEO AND/OR SENIOR LEADERS BEFORE PRESENTING IT IN ITS ENTIRETY TO THE HOSPITAL BOARD FOR QUESTIONING AND REVIEW PRIOR TO THE RETURN'S SIGNING AND SUBMISSION TO THE IRS. Form 990, Part VI, Line 12c Conflict of interest policy THE ORGANIZATION IS SUBJECT TO THE CORPORATE COMPLIANCE PROGRAM AND CONFLICT OF INTEREST POLICY ("POLICY") OF HOSPITAL SISTERS HEALTH SYSTEM, AN ILLINOIS NOT FOR PROFIT CORPORATION EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. A REVISED CORPORATE COMPLIANCE PROGRAM AND CONFLICT OF INTEREST POLICY HAVE BEEN IMPLEMENTED SINCE JANUARY 2009 TO MANAGE CONFLICTS OF INTEREST USING A SYSTEM-WIDE PROTOCOL FOR DISCLOSURE STATEMENTS. IN ACCORDANCE WITH THE ORGANIZATON'S CONFLICT OF INTEREST POLICY, ALL COVERED PERSONS HAVE A DUTY TO COMPLY WITH THE CONFLICT OF INTEREST POLICY FOR ANY CONTRACT, TRANSACTION, RELATIONSHIP, OR ACTIVITY CONTEMPLATED, ENTERED INTO, OR CONDUCTED AT HSHS OR ITS AFFILIATES. THE POLICY DEFINES COVERED PERSONS AS BOARD MEMBERS, BOARD COMMITTEE MEMBERS, OFFICERS, BOARD DESIGNEES, SENIOR MANAGEMENT, MEMBERS OF ANY COMMITTEE THAT OVERSEES THE APPROVAL OF PHARMACEUTICALS AND MEDICAL DEVICES, AND ANY OTHER INDIVIDUAL WHO HOLDS A POSITION OF TRUST. ON AN ANNUAL BASIS, HSHS DISCLOSES A COPY OF THE CONFLICT OF INTEREST POLICY (AND ALL CORRESPONDING PROCEDURES, GUIDELINES, FORMS, AND TOOLS) TO ALL COVERED PERSONS AND ADVISES ALL COVERED PERSONS IN WRITING OF ANY SUBSTANTIVE CHANGES TO THIS POLICY AND SUCH RELATED MATERIALS. COVERED PERSONS ARE REQUIRED TO REVIEW AND COMPLETE THE CORRESPONDING CONFLICT OF INTEREST STATEMENT. THE SYSTEM OFFICE VICE PRESIDENT - SYSTEM RESPONSIBILITY, VICE PRESIDENT - RISK & COMPLIANCE, OR MEMBERS OF THE AUDIT AND INTEGRITY COMMITTEE ("COMMITTEE") ARE AVAILABLE TO ANSWER ANY QUESTIONS A COVERED PERSON MAY HAVE. IN ADDITION, IF, AT ANY TIME AFTER SUBMITTING AN ANNUAL CONFLICT OF INTEREST STATEMENT, A COVERED PERSON BECOMES AWARE OF AN INTEREST THAT HE OR SHE WOULD HAVE HAD TO DISCLOSE AT THE ANNUAL INTERVAL, THE COVERED PERSON IS REQUIRED PROMPTLY TO DISCLOSE THE INTEREST TO THE COMMITTEE USING THE HSHS CONFLICT OF INTEREST DISCLOSURE STATEMENT. COMPLETED CONFLICT OF INTEREST STATEMENTS ARE SUBMITTED TO THE COMMITTEE, WHICH IS RESPONSIBLE FOR IDENTIFYING, ASSESSING, AND MANAGING CONFLICTS OF INTEREST THAT ARISE IN THE COURSE OF CONDUCTING THE AFFAIRS OF HSHS AND ITS AFFILIATES. IF THE COMMITTEE DETERMINES THAT A CONFLICT OF INTEREST EXISTS, THE CONFLICT OF INTEREST POLICY REQUIRES HSHS NOT TO ENGAGE IN, OR ENTER INTO A PROPOSED CONTRACT, TRANSACTION, RELATIONSHIP, ARRANGEMENT, OR ACTIVITY UNLESS THE COMMITTEE OR, WHERE NECESSARY, THE BOARD OF DIRECTORS (ACTING THROUGH ITS DISINTERESTED MEMBERS), HAS INVESTIGATED ALTERNATIVES TO THE PROPOSED CONTRACT, TRANSACTION, RELATIONSHIP, ARRANGEMENT, OR ACTIVITY AND, IN THE ABSENCE OF ALTERNATIVES THAT ARE IN THE BEST INTERESTS OF HSHS, HAS DETERMINED: 1. THAT, REGARDLESS OF WHETHER THE COVERED PERSON PARTICIPATES IN THE IMPLEMENTATION OF THE PROPOSED CONTRACT, TRANSACTION, RELATIONSHIP, ARRANGEMENT, OR ACTIVITY; 2. THE CONTRACT, TRANSACTION, ARRANGEMENT, OR ACTIVITY IS IN THE BEST INTERESTS OF HSHS; 3. THE CONTRACT, TRANSACTION, ARRANGEMENT, OR ACTIVITY IS FAIR AND REASONABLE FROM THE PERSPECTIVE OF HSHS; AND 4. HSHS CANNOT OBTAIN A MORE ADVANTAGEOUS CONTRACT, TRANSACTION, ARRANGEMENT, OR ACTIVITY WITH REASONABLE EFFORTS UNDER THE CIRCUMSTANCES. IN DETERMINING WHETHER A CONTRACT, TRANSACTION OR ARRANGEMENT IS FAIR AND REASONABLE TO HSHS, THE COMMITTEE SHALL CONSIDER, WHERE APPLICABLE: 1. APPRAISALS OR OTHER INDEPENDENT VALUATIONS OF THE FAIR MARKET VALUE OF THE CONTRACT, TRANSACTION, OR ARRANGEMENT; 2. INFORMATION REGARDING COMPARABLE CONTRACTS, TRANSACTIONS, OR ARRANGEMENTS BETWEEN UNRELATED PARTIES; 3. OFFERS FROM COMPARABLE COMPETING ENTITIES; AND/OR 4. STUDIES OF COMPARABLE COMPENSATION ARRANGEMENTS. IN ANY CASE IN WHICH THE COMMITTEE FINDS, AFTER TAKING THE STEPS DESCRIBED ABOVE, THAT HSHS SHOULD PARTICIPATE IN A PROPOSED TRANSACTION OR ARRANGEMENT DESPITE THE EXISTENCE OF A CONFLICT OF INTEREST, THE COMMITTEE SHALL DEVELOP, IMPLEMENT, MONITOR, AND ENFORCE COMPLIANCE WITH A CONFLICT MANAGEMENT PLAN FOR MANAGING THE CONFLICT OF INTEREST AS IT CONSIDERS NECESSARY FOR SUCH FINDINGS TO REMAIN VALID THROUGHOUT THE LIFE OF THE CONTRACT, TRANSACTION, RELATIONSHIP, ARRANGEMENT, OR ACTIVITY. ALL CONFLICT MANAGEMENT PLANS SHALL: 1. STATE THAT THE COMMITTEE WILL OVERSEE, MONITOR, AND ENFORCE COMPLIANCE WITH THE PLAN THROUGHOUT THE COURSE OF THE STUDY AND SPECIFY MEANS FOR DOING SO, INCLUDING, WITHOUT LIMITATION, THAT THE APPROPRIATE INDIVIDUALS MUST PROVIDE THE COMMITTEE WITH WRITTEN REPORTS PERTAINING TO COMPLIANCE WITH THE CONFLICT MANAGEMENT PLAN, THAT THE COMMITTEE SHALL HAVE THE RIGHT TO AUDIT THE STUDY FOR SUCH COMPLIANCE AND THE RIGHT TO IMPOSE SANCTIONS FOR NON-COMPLIANCE; 2. STATE THAT THE PLAN MUST BE SHARED WITH COVERED PERSON WHOSE INTERESTS IT WAS DEVELOPED TO MANAGE; 3. STATE THAT THE PLAN MUST BE SHARED WITH, AND PERIODIC REPORTS ON COMPLIANCE WITH THE PLAN MUST BE PROVIDED TO, THE BOARD, SENIOR MANAGEMENT, AND/OR GOVERNMENT AGENCIES; AND 4. PROVIDE FOR SUCH OTHER MANAGEMENT STEPS AND MECHANISMS THE COMMITTEE CONSIDERS NECESSARY AND APPROPRIATE. IN ADDITION TO THE COMMITTEE, THE SYSTEM OFFICE VICE PRESIDENTS OF SYSTEM RESPONSIBILITY AND RISK & COMPLIANCE MAY RETAIN SUCH INDEPENDENT ADVISORS OR EXPERTS AS DEEMED NECESSARY TO ASSIST IN MAKING ITS DETERMINATIONS AND DECISIONS. IF THE COMMITTEE DETERMINES THAT THE CONTEMPLATED TRANSACTION, RELATIONSHIP, ARRANGEMENT, OR ACTIVITY CANNOT PROCEED DUE TO A CONFLICT OF INTEREST, THE COMMITTEE SHALL INFORM THE APPLICABLE COVERED PERSON OR DECISION-MAKING BODY OF SUCH DETERMINATION WITHIN ONE WEEK OF THE COMMITTEE MEETING AT WHICH THE CONTEMPLATED TRANSACTION WAS DISCUSSED. THE COMMITTEE SHALL DOCUMENT ITS REJECTION OF THE CONTEMPLATED TRANSACTION IN THE COMMITTEE'S MEETING MINUTES. Form 990, Part VI, Line 15a Process to establish compensation of top management official THE COMPENSATION COMMITTEE (COMMITTEE) IS COMPRISED OF INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS. THE COMMITTEE DEVELOPS A COMPENSATION PHILOSOPHY FOR THE SYSTEM AND ALL AFFILIATES. THE COMMITTEE SELECTS AND HIRES THE INDEPENDENT COMPENSATION CONSULTANT TO DEVELOP COMPARABILITY DATA AND ADVISE THE COMMITTEE DURING ITS DELIBERATIONS REGARDING ALL ELEMENTS OF TOTAL COMPENSATION FOR ALL HSHS EXECUTIVES, (the top management official, other officers and key employees). INTEGRATED HEALTHCARE STRATEGIES ("IHS"), THE CONSULTANTS UTILIZED BY THE COMMITTEE, USE DATA FROM MULTIPLE TAX-EXEMPT PEER GROUP SOURCES (derived from a full market review conducted every other year) TO DETERMINE SALARY RANGES, INCENTIVE OPPORTUNITY RANGES AND BENEFITS FOR THE HSHS executives. IHS THEN ASSISTS THE COMMITTEE IN PREPARING CONTEMPORANEOUS DOCUMENTATION OF ALL ACTIONS. EACH COMMITTEE MEETING IS CONDUCTED WITH THE INTENT TO CREATE A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR ALL ELEMENTS OF EXECUTIVE TOTAL COMPENSATION. THE CHAIRMAN MAKES THIS DECLARATION AND ALSO INQUIRES IF THERE ARE ANY CONFLICTS OF INTEREST BY ANY ATTENDEES. ANY CONFLICTS ARE DISCLOSED AND THE COMMITTEE THEN ACTS IN A MANNER TO AVOID ANY CONFLICTED INDIVIDUAL PARTICIPATING IN ANY MANNER WHERE A CONFLICT MIGHT EXIST. AT THE END OF THE MEETING, THE COMMITTEE PREPARES CONTEMPORANEOUS MINUTES THAT RECORD ALL ACTIONS TAKEN DURING THE MEETING. The process for reviewing compensation by the compensation committee is completed each fiscal year. Form 990, Part VI, Line 15b Process to establish compensation of other employees PLEASE SEE RESPONSE TO FORM 990, PART VI, LINE 15A. Form 990, Part VI, Line 19 Required documents available to the public BOARD APPROVED FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE GENERAL PUBLIC AT THIS TIME. Form 990, Part IX, Line 11g Other Fees CONTRACT LABOR - Total Expense: 16956748, Program Service Expense: 15814881, Management and General Expenses: 1141867, Fundraising Expenses: ; COLLECTION FEES - Total Expense: 219218, Program Service Expense: 2908, Management and General Expenses: 216310, Fundraising Expenses: ; SSC FEE - Total Expense: 3581893, Program Service Expense: 1224856, Management and General Expenses: 2357037, Fundraising Expenses: ; TRANSCRIPTION - Total Expense: 6088, Program Service Expense: 6088, Management and General Expenses: , Fundraising Expenses: ; LAB FEES - Total Expense: 913590, Program Service Expense: 810773, Management and General Expenses: 102817, Fundraising Expenses: ; OTHER PURCHASED SERVICES - Total Expense: 6229906, Program Service Expense: 919476, Management and General Expenses: 5310430, Fundraising Expenses: ; RECRUITMENT EXPENSES - Total Expense: 1045905, Program Service Expense: 304101, Management and General Expenses: 741804, Fundraising Expenses: ; OTHER PROFESSIONAL SERVICES - Total Expense: 1172493, Program Service Expense: 40235, Management and General Expenses: 1132258, Fundraising Expenses: ; Shared Services Fee - Management - Total Expense: 473837, Program Service Expense: 172321, Management and General Expenses: 301516, Fundraising Expenses: ; Form 990, Part X, Line 2 POOLED INVESTMENT ACCOUNT THE ORGANIZATION'S CASH RESERVES ARE INVESTED IN A POOLED INVESTMENT ACCOUNT MAINTAINED BY HOSPITAL SISTERS HEALTH SYSTEM ("HSHS"). PARTICIPATION IN THE POOLED INVESTMENT FUND IS LIMITED TO THE 501(C)(3) HOSPITALS AND RELATED HEALTH SERVICES ORGANIZATIONS SPONSORED BY THE HOSPITAL SISTERS HEALTH SYSTEM. THE POOLED ACCOUNT CONSISTS OF CASH, EQUITY AND DEBT SECURITIES THAT ARE PUBLICLY TRADED. IN ACCORDANCE WITH THE PROVISIONS OF STATEMENT OF FINANCIAL ACCOUNTING STANDARDS ("SFAS") NO. 124, "ACCOUNTING FOR CERTAIN INVESTMENTS HELD BY NOT-FOR-PROFIT ORGANIZATIONS", INVESTMENTS IN EQUITY SECURITIES WITH READILY DETERMINABLE FAIR VALUES AND ALL INVESTMENTS IN DEBT SECURITIES ARE REPORTED AT FAIR VALUE ON THE BALANCE SHEET. INCOME, REALIZED AND UNREALIZED GAINS AND LOSSES ARE POOLED AND ALLOCATED TO THE PARTICIPANTS. INDIVIDUAL COMPONENTS OF ASSETS AND REVENUE ARE NOT IDENTIFIED TO THE INDIVIDUAL HOSPITAL PARTICIPANTS. Form 990, Part XI, Line 9 Other changes in net assets or fund balances TRANSFER FROM AFFILIATES - 32254808; PENSION LIABILITY ADJUSTMENT - -10860511; Transfer From Affiliates - WI amount adj - -153494; SCHEDULE O AFFILIATED HEALTH SYSTEM DISCLOSURE HSHS MEDICAL GROUP, INC. IS AN AFFILIATE OF HOSPITAL SISTERS HEALTH SYSTEM (HSHS), A HEALTH CARE MINISTRY THAT INCLUDES 16 HOSPITALS, NUMEROUS COMMUNITY-BASED HEALTH CENTERS AND CLINICS, AND HUNDREDS OF PHYSICIAN PARTNERS ACROSS ILLINOIS AND WISCONSIN. Headquartered in Springfield, Illinois, Hospital Sisters Health System (HSHS) is a highly integrated, multi-institutional health care system comprised of 15 hospitals and more than 200 physician practice sites in Illinois and Wisconsin. HSHS is sponsored by Hospital Sisters Ministries (HSM), which is a public juridic person of the Roman Catholic Church. HSHS continues the health care ministries begun by its founders, the Hospital Sisters of St. Francis, more than 140 years ago, in rural and midsized communities throughout Illinois and Wisconsin. HSHS provides compassionate, holistic, high quality, and cost-effective health care through its acute care hospitals, physician practices, home health programs, palliative and hospice programs, and community outreach services. In addition, HSHS affiliated hospitals include critical access facilities that offer essential health services that otherwise would not be available in many communities. Our mission calls us to reveal and embody Christ's healing love for all people, and we extend our high quality Franciscan health care ministry beyond the walls of our hospitals by providing community health improvement services with special emphasis on the poor and vulnerable. In addition to providing community health improvement services to the broader community, HSHS cares for everyone who comes to its facilities, regardless of their ability to pay. In tandem with a variety of cross sector community partners, HSHS's Community Benefit initiatives are strategically planned and professionally implemented to improve access to health care services; enhance the health of the community; advance medical or general health care knowledge; and relieve or reduce the burden of government to improve health. In FY2019, HSHS collectively provided $211.7 million in Community Benefit (9.2% of total hospital expenses). This amount included $27.7 million provided for Financial Assistance (a.k.a. Charity Care) and $142.3 million for unreimbursed care provided as part of the Medicaid program. In addition, HSHS hospitals committed significant resources to treat Medicare patients. The cost of providing services to primarily elderly beneficiaries of the Medicare program - in excess of governmental and managed care contract payments - was $279.9 million. HSHS hospitals also recorded $41.1 million in uncollectible accounts. While HSHS does not count the latter two amounts as Community Benefit, they nonetheless reflect our commitment to serving all persons in need of care. In addition to the dollars invested in our Community Benefit programs, HSHS continues to reinvest any surplus revenue from operations and investments into new medical technology, facility infrastructure and health care services in our communities. By doing so, we ensure our ability to meet the ongoing demand for high quality, efficient and easily accessible health care. 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THE GROUP PROVIDES ACCOUNTING, PAYROLL, HR, BILLING AND MANAGEMENT SERVICES FOR THE PRACTICES. THE GROUP EMPLOYS THE PROVIDERS AND THE STAFF, PROCESSES PATIENT BILLING AND PAYS THE EXPENSES OF THE PRACTICES. THE BUDGETED PROFIT/LOSSES OF THE PRACTICES ARE TRANSFERRED MONTHLY FROM EACH HOSPITAL TO OR FROM THE GROUP AND ACTUALS ARE TRUED UP BY YEAR END. Schedule R, Part VII Related Organizations Due to the increasingly complex organization structure of Hospital Sisters Health System and Affiliates, the filing organization has elected to report all organizations within Hospital Sisters Health System as related, regardless of ownership interest or "control" as defined by the instructions to Schedule R. The intent of this reporting is to promote transparency and increase consistency across the numerous Form 990 submissions by Hospital Sisters Health System and Affiliates.