2020-05-15T09:31:24-05:00 2019-06-30 GRANT THORNTON LLP 2001 MARKET STREET SUITE 700 PHILADELPHIA PA 19103 990 2018-07-01 231352211 St Joseph Regional Health Network % CFO STJO 6103782300 2500 Bernville Road Reading PA 19605 PAULA TINCH SVP & CFO 6103782300 2020-05-15 true Russlee Armstrong P00288383 2155614200 73.233.84.6 23695320201365000005 2020-05-15 P FD9EB17EE6CEBBFF0A7DD1FEEB690E33963E7E29 560A5221E85C69B18852755D46CE5F4776D286E5 2018 2020-09-23 17:36:50Z PENN STATE HEALTH ST JOSEPH John Morahan 2500 Bernville Road Reading PA 19605 268784417 false X www.thefutureofhealthcare.org X 1889 PA TO NURTURE THE HEALING MINISTRY OF THE CHURCH, SUPPORTED BY EDUCATION AND RESEARCH. 15 15 1663 205 0 0 2905237 3875851 233151743 260448112 14889 14030 10411853 4410207 246483722 268748200 23471528 28616521 0 0 86703331 97423378 0 0 0 127734016 132355121 237908875 258395020 8574847 10353180 149648887 170923660 156880446 167802039 -7231559 3121621 THE MISSION OF ST. JOSEPH REGIONAL HEALTH NETWORK IS TO NURTURE THE HEALING MINISTRY OF THE CHURCH, SUPPORTED BY EDUCATION AND RESEARCH. FIDELITY TO THE GOSPEL URGES US TO EMPHASIZE HUMAN DIGNITY AND SOCIAL JUSTICE AS WE CREATE HEALTHIER COMMUNITIES. false false 195651782 28616521 263705430 See Schedule H 195651782 true true false true false false false false false false true false false false true false false true false false false false false false false false true true true false true false false false false false false false false false false false false true true true true false false true 0 0 1663 true true true false false false false false false false false false false false X 15 15 false false false false true true true true true false false true true true true true true false false false PA X CFO 6103782300 2500 BERNVILLE ROAD Reading PA 19605 John Morahan Director/President/CEO 36.0 4.0 X X 0 657800 79921 Bruce G Smith Director 2.0 0.0 X 0 0 0 J Andrew Weidman Director/Chair 2.0 0.0 X X 0 0 0 Louis Borgatta MD Director/(Physician) 2.0 38.0 X 0 176809 17090 Carl N Botterbusch Director 2.0 0.0 X 0 0 0 Robert P Flicker Director 2.0 0.0 X 0 0 0 Randolf Peers Director 2.0 0.0 X 0 0 0 Steve Massini Corp Director/PSH: CFO & CAO 2.0 48.0 X 0 967710 111703 Heidi B Masano Director/Vice Chair 2.0 0.0 X X 0 0 0 Sr Clare Christi Schiefer OSF Director 2.0 2.0 X 0 0 0 Ivan Torres EdD Director 2.0 0.0 X 0 0 0 Michael Duff Director 2.0 0.0 X 0 0 0 Peter M Carlino Director 2.0 2.0 X 0 0 0 Alan Brechbill Corp Director/PSH: COO 2.0 48.0 X 0 1253274 76630 Courtney Coffman Secretary/Treasury/CFO 36.0 4.0 X 309163 0 40159 Sharon Strohecker vp, nursing and cno 40.0 0.0 X 336946 0 46331 Scott Mengle VP, Human Resources 40.0 0.0 X 269858 0 54492 Mary Hahn VP Strategy & Bus. Dev. 40.0 0.0 X 213192 0 7419 Christopher Newman VP, Medical Affairs and CMO 40.0 0.0 X 432519 0 32491 Michael Jupina VP Communications 40.0 0.0 X 213684 0 7431 Michael Bradley Medical Director 40.0 0.0 X 236944 0 41039 Trina Alba Physician 40.0 0.0 X 284743 0 46594 Christina Scartozzi Physician 40.0 0.0 X 206901 0 27146 Mary Brigandi Physician 40.0 0.0 X 204162 0 1566 Joy Accamma Physician 40.0 0.0 X 195273 0 17479 2903385 3055593 607491 92 false true false Healthtrust Workforce Solutions PO Box 742697 ATLANTA GA 30374 Temp. Help 1921717 Sodexo Inc PO Box 350170 PITTSBURGH PA 15251 Food & Dietary 2758922 Emerg Phy Assoc of Pa PO Box 634850 CINCINNATI PA 45263 Physician services 1520468 Quest Diagnostics Inc PO Box 828669 PHILADELPHIA PA 19182 Lab services 1328727 On Top Medical LLC 100 Abby Road THIBODAUX IA 07030 Physician Services 1310200 31 3842114 33737 3875851 NET PATIENT SERVICES 900099 253540230 253540230 OTHER HEALTHCARE RELATED REVENUE 900099 6907882 6907882 260448112 3747 3747 0 0 1152889 1152889 0 1152889 1152889 46500 36217 10283 10283 10283 0 0 0 0 0 0 0 0 0 INCENTIVE INCOME-HEALTHCARE RELATED 900099 682330 682330 VENDOR REBATES 900099 64000 64000 HOUSEKEEP/LAUNDRY/DIETARY/GIFTSHOP 900099 23053 23053 2487935 2487935 3257318 268748200 263705430 1166919 28616521 28616521 0 0 0 1963685 888354 1075331 0 73720582 61784285 11936297 3784599 3165552 619047 12392708 10318799 2073909 5561804 4610962 950842 0 6873 6873 0 0 0 0 22095572 13232338 8863234 842 842 2124560 1384621 739939 0 0 5421951 3118137 2303814 149832 120354 29478 0 59041 29031 30010 5053713 384237 4669476 0 9869606 5044715 4824891 2752165 29005 2723160 ALLOCATED CORPORATE SERVICES 20010396 20010396 MEDICAL SUPPLIES 51744214 51744214 BAD DEBTS 10277937 10277937 LICENSE FEES 468110 306945 161165 2320309 594933 1725376 258395020 195651782 62743238 0 0 0 13408209 16004275 0 0 34709391 47192297 0 0 0 0 0 0 6345001 6009584 757464 934623 129023660 32889500 91547053 96134160 0 0 0 0 0 0 0 0 2881769 4648721 149648887 170923660 19201226 15029494 0 0 39366 39366 0 0 0 0 0 0 0 0 0 0 137639854 152733179 156880446 167802039 X -7875679 460497 644120 2661124 0 0 -7231559 3121621 149648887 170923660 10353180 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false true false PART II-B, LINE 1 DESCRIPTION OF THE ACTIVITIES REPORTED ON LINES 1A THROUGH 1I: LINE 1F: THE FILING ORGANIZATION PAYS DUES TO THE ASSOCIATIONS LISTED BELOW WHO CONDUCT LOBBYING. THE AMOUNT OF DUES ALLOCATED TO LOBBYING EFFORTS IS NEGLIGIBLE. HOSPITAL & HEALTH SYSTEM ASSOCIATION OF PENNSYLVANIA AMERICAN HOSPITAL ASSOCIATION CATHOLIC HEALTH ASSOCIATION LINE 1I: COMPENSATION, BENEFITS, AND TRAVEL EXPENSES INCURRED FOR EMPLOYEES IN CONDUCTING LOBBYING EFFORTS IS APPROXIMATELY LESS THAN $2,500. 3788724 3788724 82682739 14616962 68065777 6263566 2464471 3799095 33165599 15808067 17357532 3123032 3123032 96134160 0 INTERCOMPANY PAYABLES 135288545 CAPITAL LEASES 9144172 WORKERS COMP ACCRUED PAYABLE 734046 SELF INSURANCE LIABILITIES 523537 MEDICAL MALPRACTICE 3908745 RETIREMENT PLAN LIABILITY 2361654 ASBESTOS RETIREMENT 772480 152733179 true true false false true true false true true 877799 877799 0.00350 37135193 23677022 13458171 0.05400 38012992 23677022 14335970 0.05750 65000 65000 0.00030 230000 230000 0.00090 25000 25000 0.00010 320000 320000 0.00130 38332992 23677022 14655970 0.05880 1 5000 5000 1 5000 5000 true 10277937 47201935 49513684 -2311749 X true true 1 1 ST JOSEPH MEDICAL CENTER 2500 BERNVILLE ROAD READING PA 19605 WWW.THEFUTUREOFHEALTHCARE.ORG 710501 X X X X X ST JOSEPH MEDICAL CENTER 1 false false true X X X X X X X X X 17 true true true true X WWW.THEFUTUREOFHEALTHCARE.ORG X true 17 true WWW.THEFUTUREOFHEALTHCARE.ORG false true X X X X X true true X X X true X see Part V narrative X see Part V narrative X see Part V narrative X X X X X true X false X X X X true X false false SCHEDULE H, PART V, SECTION B, LINE 5 INPUT FOR COMMUNITY HEALTH NEEDS ASSESSMENT: THIS NEEDS ASSESSMENT WAS OVERSEEN BY A STEERING COMMITTEE OF REPRESENTATIVES FROM ST. JOSEPH REGIONAL HEALTH NETWORK (SJRHN), BERKS COMMUNITY HEALTH CENTER, BERKS COUNTY COMMUNITY FOUNDATION, READING HEALTH SYSTEM, AND UNITED WAY OF BERKS COUNTY. AN ADVISORY COMMITTEE OF 17 REPRESENTATIVES FROM BERKS COUNTY COMMUNITY ORGANIZATIONS WAS SELECTED BY THE STEERING COMMITTEE TO PROVIDE INPUT FROM THE COMMUNITY. THE ADVISORY COMMITTEE SUPPLIED GUIDANCE AT ALL STAGES OF THE NEEDS ASSESSMENT PROCESS AND INDIVIDUALS REPRESENTING ORGANIZATIONS WITH FIRST-HAND KNOWLEDGE OF COMMUNITY HEALTH NEEDS INCLUDING: PRIMARY CARE, CITY HOUSING AUTHORITY, COUNTY MENTAL HEALTH, WELLNESS SERVICES FOR HIV/AIDS, HISPANIC CENTER, MIGRANT FARM WORKERS, AS WELL AS LOCAL COLLEGES. SCHEDULE H, PART V, SECTION B, LINES 6A/6B OTHER HOSPITAL FACILITIES INCLUDED IN NEEDS ASSESSMENT: ST. JOSEPH REGIONAL HEALTH NETWORK PARTNERED WITH THE OTHER NON-PROFIT HOSPITAL IN BERKS COUNTY (READING HEALTH SYSTEM) TO CONDUCT THE COMMUNITY HEALTH NEEDS ASSESSMENT. IN ADDITION, BERKS COMMUNITY HEALTH CENTER (A FEDERALLY QUALIFIED HEALTH CENTER (FQHC)), THE BERKS COUNTY COMMUNITY FOUNDATION, AND UNITED WAY OF BERKS COUNTY WERE ALSO KEY PARTICIPANTS IN THE ASSESSMENT PROCESS. SCHEDULE H, PART V, SECTION B, LINE 11 ADDRESSING OR NOT ADDRESSING SIGNIFICANT NEEDS: FROM THE FOUR PRIORITIES OF NEEDS IDENTIFIED IN THE CHNA PROCESS (ACCESS TO CARE, OBESITY, CHRONIC CONDITIONS, AND BEHAVIORAL/MENTAL HEALTH), ST. JOSEPH REGIONAL HEALTH NETWORK HAS DEVELOPED AN IMPLEMENTATION PLAN THAT INCLUDES PROGRAMS ASSOCIATED WITH OBJECTIVES TO ADDRESS THESE FOUR NEEDS. ALL OF THESE NEEDS ARE BEING ADDRESSED OR IN THE PROCESS OF BEING ADDRESSED. SCHEDULE H, PART V, SECTION B, LINE 13b income level other than FPG for eligibility: ST. JOSEPH REGIONAL HEALTH NETWORK BASES ITS FINANCIAL ASSISTANCE ELIGIBILITY ON HUD'S 130% OF VERY LOW INCOME GUIDELINES BASED ON GEOGRAPHY, AND AFFORDS THE UNINSURED AND UNDERINSURED THE ABILITY TO OBTAIN FINANCIAL ASSISTANCE WRITE-OFFS, BASED ON A SLIDING SCALE, RANGING FROM 55%-100% OF CHARGES. AN INDIVIDUAL'S INCOME UNDER THE HUD GUIDELINES IS A SIGNIFICANT FACTOR IN DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE. HOWEVER, IN DETERMINING WHETHER TO EXTEND DISCOUNTED OR FREE CARE TO A PATIENT, THE PATIENT'S ASSETS MAY ALSO BE TAKEN INTO CONSIDERATION. FOR EXAMPLE, A PATIENT SUFFERING A CATASTROPHIC ILLNESS MAY HAVE A REASONABLE LEVEL OF INCOME, BUT A LOW LEVEL OF LIQUID ASSETS SUCH THAT THE PAYMENT OF MEDICAL BILLS WOULD BE SERIOUSLY DETRIMENTAL TO THE PATIENT'S BASIC FINANCIAL (AND ULTIMATELY PHYSICAL) WELL-BEING AND SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. SCHEDULE H, PART V, SECTION B, LINE 16 The financial assistance policy, application and plain language summary are available at the following website: https://www.thefutureofhealthcare.org/patients-visitors/financial-assistan ce/ 14 READING DOWNTOWN CAMPUS 145 NORTH 6TH STREET 640 WALNUT S READING PA 19601 CLINIC/X-RAY/CT-LAB WOUND CARE/HBO/DIABETES EDUC/PT ST JOSEPH HEALTH NETWORK-STRAUSSTOWN 44 EAST AVENUE STRAUSSTOWN PA 19559 DIAG/URGENT CARE/LAB DRAW ST JOSEPH HEALTH NETWORKMAIDENCREEK 108 PLAZA DRIVE SUITE 101 BLANDON PA 19510 THERAPY, X-RAY, URGENT CARE, LAB DRAW ST JOSEPH HEALTH NETWORK-SPRING RIDGE 2605 KEISER BOULEVARD SUITE 200 WYOMISSING PA 19610 CARDIAC REHAB/LAB ST JOSEPH HEALTH NETWORK-LEESPORT SCHOOLSIDE PLAZA-RT 61 AND WALL ST LEESPORT PA 19533 LAB DRAW AND X-RAY ST JOE QUALITY MED LAB-SINKING SPRING 4400 PENN AVENUE SINKING SPRING PA 19608 LAB DRAW ST JOE QUALITY MED LAB-BIRDSBORO RT 724 MAPLE SPRINGS BIRDSBORO PA 19508 DRAW STATION ST JOE QUALITY MED LAB-HEALTHSOUTH 1623 MORGANTOWN ROAD READING PA 19607 DRAW STATION ST JOE QUALITY MED LAB-BOYERTOWN FIFTH AND MONTGOMERY AVENUES BOYERTOWN PA 19512 DRAW STATION THE HERITAGE OF GREEN HILLS 10 TRANQUILITY LANE READING PA 19607 LAB DRAW PSH ST JOSEPH EXETER RIDGE HLTH COMPLEX 3970 PERKIOMEN AVENUE EXETER PA 19606 PHYSICAL THERAPY, RADIOLOGY SERVICES, MEDICAL FITNESS, DIABETES EDUC. PSH ST JOSEPH MUHLENBERG 3407 N 5TH ST HIGHWAY MUHLENBERG PA 19605 LAB DRAW, URGENT CARE, RADIOLOGY SERVICES, DIABETES EDUC. PSH ST JOSEPH ROBESONIA 410 E PENN AVENUE ROBESONIA PA 19551 LAB DRAW, X-RAY, EKG PSH ST JOSEPH SPRING RIDGE HLTH CORRID 2607 KEISER BOULEVARD WYOMISSING PA 19610 PHYSICAL THERAPY, WOUND CARE, DIAG. SERVICES, DIABETES EDUC. PART VI SUPPLEMENTAL INFORMATION THROUGHOUT THESE NARRATIVES, ST. JOSEPH REGIONAL HEALTH NETWORK IS ALSO KNOWN AS: PENN STATE HEALTH ST. JOSEPH AND ST. JOSEPH MEDICAL CENTER SCHEDULE H, PART I, LINE 3C ELIGIBILITY CRITERIA FOR FREE OR DISCOUNTED CARE: ST. JOSEPH REGIONAL HEALTH NETWORK BASES ITS FINANCIAL ASSISTANCE ELIGIBILITY ON HUD'S 130% OF VERY LOW INCOME GUIDELINES BASED ON GEOGRAPHY, AND AFFORDS THE UNINSURED AND UNDERINSURED THE ABILITY TO OBTAIN FINANCIAL ASSISTANCE WRITE-OFFS, BASED ON A SLIDING SCALE, RANGING FROM 55%-100% OF CHARGES. AN INDIVIDUAL'S INCOME UNDER THE HUD GUIDELINES IS A SIGNIFICANT FACTOR IN DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE. HOWEVER, IN DETERMINING WHETHER TO EXTEND DISCOUNTED OR FREE CARE TO A PATIENT, THE PATIENT'S ASSETS MAY ALSO BE TAKEN INTO CONSIDERATION. FOR EXAMPLE, A PATIENT SUFFERING A CATASTROPHIC ILLNESS MAY HAVE A REASONABLE LEVEL OF INCOME, BUT A LOW LEVEL OF LIQUID ASSETS SUCH THAT THE PAYMENT OF MEDICAL BILLS WOULD BE SERIOUSLY DETRIMENTAL TO THE PATIENT'S BASIC FINANCIAL (AND ULTIMATELY PHYSICAL) WELL-BEING AND SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. SURVIVAL. SUCH A PATIENT MAY BE EXTENDED DISCOUNTED OR FREE CARE BASED UPON THE FACTS AND CIRCUMSTANCES. SCHEDULE H, PART I, LINE 6A COMMUNITY BENEFIT REPORT: ST. JOSEPH REGIONAL HEALTH NETWORK PREPARES A COMMUNITY BENEFIT REPORT AND MAKES IT AVAILABLE TO THE PUBLIC. SCHEDULE H, PART I, LINE 7 COSTING METHODOLOGY USED TO CALCULATE FINANCIAL ASSISTANCE: A COST ACCOUNTING SYSTEM WAS NOT USED TO COMPUTE AMOUNTS IN THE TABLE; RATHER COSTS IN THE TABLE WERE COMPUTED USING THE ORGANIZATION'S COST-TO-CHARGE RATIO. THE COST-TO-CHARGE RATIO COVERS ALL PATIENT SEGMENTS. BASED ON THAT FORMULA, [$203,055,720/$795,397,309] RESULTS IN A 25.53% COST-TO-CHARGE RATIO. SCHEDULE H, PART I, LINE 7, COLUMN (F) BAD DEBT EXPENSE EXCLUDED FROM FINANCIAL ASSISTANCE CALCULATION: $10,277,937. SCHEDULE H, PART I, LINE 7G SUBSIDIZED HEALTH SERVICES: THERE ARE NO PHYSICIAN CLINICS INCLUDED IN SUBSIDIZED HEALTH SERVICES. Part II Community Building Activities: St. Joseph Regional Health Network incurred expenses for community support and other various programming throughout the fiscal year. SCHEDULE H, PART III, LINE 2 BAD DEBT EXPENSE - METHODOLOGY USED TO ESTIMATE AMOUNT: COSTING METHODOLOGY FOR AMOUNTS REPORTED ON LINE 2 IS DETERMINED USING THE ORGANIZATION'S COST/CHARGE RATIO OF 25.53%. WHEN DISCOUNTS ARE EXTENDED TO SELF-PAY PATIENTS, THESE PATIENT ACCOUNT DISCOUNTS ARE RECORDED AS A REDUCTION IN REVENUE, NOT AS BAD DEBT EXPENSE. SCHEDULE H, PART III, LINE 3 BAD DEBT EXPENSE METHODOLOGY: ST. JOSEPH REGIONAL HEALTH NETWORK DOES NOT BELIEVE THAT ANY PORTION OF BAD DEBT EXPENSE COULD REASONABLY BE ATTRIBUTED TO PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE SINCE AMOUNTS DUE FROM THOSE INDIVIDUALS' ACCOUNTS WILL BE RECLASSIFIED FROM BAD DEBT EXPENSE TO CHARITY CARE WITHIN 30 DAYS FOLLOWING THE DATE THAT THE PATIENT IS DETERMINED TO QUALIFY FOR CHARITY CARE. SCHEDULE H, PART III, LINE 4 BAD DEBT EXPENSE - FINANCIAL STATEMENT FOOTNOTE: ST. JOSEPH REGIONAL HEALTH NETWORK DOES NOT ISSUE SEPARATE COMPANY AUDITED FINANCIAL STATEMENTS. HOWEVER, THE ORGANIZATION IS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF PENN STATE HEALTH. THE CONSOLIDATED FOOTNOTE READS AS FOLLOWS: PATIENT ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, MANAGEMENT ANALYZES PAST HISTORY AND IDENTIFIES TRENDS FOR EACH MAJOR PAYOR SOURCE OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, MANAGEMENT ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES FROM SELF-PAY PATIENTS THE SUBSIDIARIES OF PENN STATE HEALTH RECORD A PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. IN ESTIMATING THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, ACCOUNT AGE IS TAKEN INTO CONSIDERATION. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. SCHEDULE H, PART III, LINE 8 COMMUNITY BENEFIT & METHODOLOGY FOR DETERMINING MEDICARE COSTS: USING ESSENTIALLY THE SAME MEDICARE COST REPORT PRINCIPLES AS TO THE ALLOCATION OF GENERAL SERVICES COSTS AND APPORTIONMENT METHODS, SJRHN CALCULATES A PAYER'S GROSS ALLOWABLE COSTS BY SERVICE (SO AS TO FACILITATE A CORRESPONDING COMPARISON BETWEEN GROSS ALLOWABLE COSTS AND ULTIMATE PAYMENTS RECEIVED). THE TERM GROSS ALLOWABLE COSTS MEANS COSTS BEFORE ANY DEDUCTIBLES OR CO-INSURANCE ARE SUBTRACTED. ST. JOSEPH REGIONAL HEALTH NETWORK'S ULTIMATE REIMBURSEMENT WILL BE REDUCED BY ANY APPLICABLE COPAYMENT/DEDUCTIBLE. WHERE MEDICARE IS THE SECONDARY INSURER, AMOUNTS DUE FROM THE INSURED'S PRIMARY PAYER WERE NOT SUBTRACTED FROM MEDICARE ALLOWABLE COSTS BECAUSE THE AMOUNTS ARE TYPICALLY IMMATERIAL. ALTHOUGH NOT PRESENTED ON THE MEDICARE COST REPORT, IN ORDER TO FACILITATE A MORE ACCURATE UNDERSTANDING OF THE TRUE COST OF SERVICES (FOR SHORTFALL PURPOSES) SJRHN ALLOWS A HEALTH CARE FACILITY NOT TO OFFSET COSTS THAT MEDICARE CONSIDERS TO BE NON-ALLOWABLE, BUT FOR WHICH THE FACILITY CAN LEGITIMATELY ARGUE ARE RELATED TO THE CARE OF THE FACILITY'S PATIENTS. IN ADDITION, ALTHOUGH NOT REPORTABLE ON THE MEDICARE COST REPORT, SJRHN INCLUDES THE COST OF SERVICES THAT ARE PAID VIA A SET FEE-SCHEDULE RATHER THAN BEING REIMBURSED BASED ON COSTS (E.G. OUTPATIENT CLINICAL LABORATORY). FINALLY, SJRHN ALLOWS A FACILITY TO INCLUDE OTHER HEALTH CARE SERVICES PERFORMED BY A SEPARATE FACILITY (SUCH AS A PHYSICIAN PRACTICE) THAT ARE MAINTAINED ON SEPARATE BOOKS AND RECORDS (AS OPPOSED TO THE MAIN FACILITY'S BOOKS AND RECORDS WHICH HAS ITS COSTS OF SERVICE INCLUDED WITHIN A COST REPORT). True costs of Medicare computed using this methodology: Total Medicare revenue: $47,201,935 Total Medicare costs: $49,513,684 Surplus or (shortfall): $(2,311,749) St. Joseph Regional Health Network believes that excluding Medicare losses from community benefit makes the overall community benefit report more credible for these reasons: Unlike subsidized areas such as burn units or behavioral-health services, Medicare is not a differentiating feature of tax-exempt health care organizations. In fact, for-profit hospitals focus on attracting patients with Medicare coverage, especially in the case of well-paid services that include cardiac and orthopedics. Significant effort and resources are devoted to ensuring that hospitals are reimbursed appropriately by the Medicare program. The Medicare Payment Advisory Commission (MEDPAC), an independent congressional agency, carefully studies Medicare payment and the access to care that Medicare beneficiaries receive. The commission recommends payment adjustments to congress accordingly. Though Medicare losses are not included by catholic hospitals as community benefit, the catholic health association guidelines allow hospitals to count as community benefit some programs that specifically serve the Medicare population. For instance, if hospitals operate programs for patients with Medicare benefits that respond to identified community needs, generate losses for the hospital, and meet other criteria, these programs can be included in the cha framework in category c as subsidized health services. Medicare losses are different from Medicaid losses, which are counted in the cha community benefit framework, because Medicaid reimbursements generally do not receive the level of attention paid to Medicare reimbursement. Medicaid payment is largely driven by what states can afford to pay, and is typically substantially less than what Medicare pays. SCHEDULE H, PART III, LINE 9b COLLECTION PRACTICES FOR PATIENTS ELIGIBLE FOR FINANCIAL ASSISTANCE: St. Joseph Regional Health Network's debt collection policy provides that SJRHN will perform a reasonable review of each inpatient account prior to turning an account for to a third-party collection agent and prior to instituting any legal action for non-payment, to assure that the patient and patient guarantor are not eligible for any assistance program (e.g. medicaid) and do not qualify for coverage through St. Joseph Medical Center's community assistance policy. After having been turned over to a third-party collection agent, any patient account that is subsequently determined to meet SJRHN community assistance policy is required to be returned immediately by the third-party collection agent to SJRHN for appropriate follow-up. SJRHN requires its third-party collection agents to include a message on all statements indicating that if a patient or patient guarantor meets certain stipulated income requirements, the patient or patient guarantor may be eligible for financial assistance. SJRHN's contracts with third party collection agencies include the following standards: - Neither SJRHN nor their collection agencies will request bench or arrest warrants as a result of non-payment; - Neither SJRHN nor their collection agencies will seek liens that would require the sale or foreclosure of a primary residence; - No collection agency may seek court action without hospital approval. Finally, collection agencies are trained on SJRHN's mission, core values and standard of conduct to make sure all patients are treated with dignity and respect. SCHEDULE H, PART VI, LINE 2 COMMUNITY HEALTH NEEDS ASSESSMENT: It is generally recognized that the health of the community was not the responsibility of any one entity, but rather required the coordinated efforts of many entities public and private to realize an improved health status of a community. St. Joseph Regional Health Network has a strong history of working together to advance community health. Even prior to the mandated Affordable Care Act (ACA), we partnered with others to conduct a Community Health Needs Assessment with a goal of implementing programs for meeting needs that are identified. The most recent health assessment provides a consensus on needs to establish interventions, solutions and collective action to reduce the prevalence of key health indicators. It also provides critical information upon which to make effective resource and program investments and offers a framework for updating data and measuring outcomes. The purpose of the needs assessment is to identify and prioritize community health needs so that organizations can develop strategies and implementation plans that benefit the public as well. Following the completion of the CHNA research in the fall of 2015 which included secondary data collection, behavioral risk factor survey, key informant interviews, and focus group discussions, Berks County Health Collaborative held Berks County Health Collaborative Summit on April 7, 2016 at the Reading Area Community College in Reading, Pennsylvania. The meeting highlighted key research findings and facilitated community discussion and prioritization of identified needs. The identified needs, in prioritized order of the community were: - Access to Care - Obesity - Chronic Illness - Behavioral/Mental Health On April 18, 2016, the Berks County Health Collaborative Advisory Committee met to discuss feedback secured during the Summit meeting and to make a final recommendation on the prioritized needs of the community. After reviewing and evaluating the information, the advisory group made a recommendation to prioritize the following health needs: - Obesity - Behavioral/Mental Health Access indicators appear to be generally favorable for Berks County residents, with most residents reporting having health care coverage and a primary care physician. However, findings from the key informant interviews and focus groups suggest that residents still struggle when accessing vital health care services. Specifically, challenges related to insufficient number of bi-lingual providers, mental health providers, providers accepting Medicaid/Medical Assistance and lack of transportation for medical appointments were some of the major barriers that were identified. Another notable finding was more than two out of five residents had some economic hardships, around one in eleven skipped medical treatment due to cost, and around one in nine did not fill a prescription due to cost in the past year. Key informant interviews also corroborate this finding in that nearly 80% of participants selected, inability to pay out of pocket expenses such as co-pays and prescriptions, as the most significant barrier to accessing care. Long wait times were also found to present key barriers, especially when one is trying to secure an appointment with a specialist. The research indicates health disparities exist within certain populations. Those groups include: Low income or poor residents, older residents and minorities, specifically, Latinos. Over the next three year period, interventions should be targeted at these groups. The full needs assessment can be accessed at this link: http://www.thefutureofhealthcare.org/assets/community-health-needs-assessm ent.pdf SCHEDULE H, PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE: We believe that receiving healthcare is a basic human right. St. Joseph participates in the widest number of insurance programs of the hospitals in the region. We realize that many people either cannot afford health insurance or do not have enough insurance to cover their bills. Those are the reasons for our Payment Options and Financial Assistance Program, which is publicly posted on the hospital website: www.thefutureofhealthcare.org. A price estimator also was added in order to further create price and cost transparency. We understand that the need for health care and hospital services is often unplanned, and some patients may not have sufficient insurance, or may be unable to pay their entire bill right away. We assure patients that admission to Penn State Health St. Joseph is a medical, not a financial, decision. And, for those who need to take advantage of our financial assistance programs, we provide the necessary assistance in completing applications that help to determine eligibility for federal, state or county government health care assistance. We also offer Penn State Health St. Josephs own assistance plan that can pay all or a significant portion of hospital bills. SCHEDULE H, PART VI, LINE 4 COMMUNITY INFORMATION: Penn State Health St. Joseph was founded originally as St. Joseph Hospital by the Sisters of St. Francis in 1873 to provide healthcare services to the people of the City of Reading. As the only Catholic-sponsored hospital to serve the community, St. Joseph embraced the mission of the founding religious congregation. For 145 years, St. Joseph has served the entire Reading and Berks Community with a focus on providing care to all who need it without regard to ability to pay, a philosophy that has driven the mission of St. Joseph. It's a mission that is as important today as it was to the Sisters of St. Francis given that the City of Reading has been among the poorest cities in America. This distinction has proven the need for access to healthcare services that are provided with compassion and without discrimination. Penn State Health St. Joseph is a non-profit network consisting of St. Joseph Medical Center, St. Joseph Downtown Reading Campus, St. Joseph Medical Group and St. Joseph Physician Hospital Organization. Founded in 1873 by the Sisters of St. Francis, the network provides a full-range of outpatient and inpatient diagnostic, medical and surgical services. The 380,000 sq. ft., 212-bed state-of-the-art hospital and health campus opened in late 2006 on 40 acres in Bern Township. Routinely ranked among the Top 50 Heart Hospitals in the country in quality metrics, St. Joseph also is nationally certified as a Center of Excellence in Chest Pain, Stroke and Heart Failure. Nursing care at St. Joseph also has earned the distinction as a Pathways to Excellence accredited facility. St. Joseph has 16 Ambulatory Care Centers across Berks County, providing care to where the community lives and works. St. Josephs Downtown Reading Campus at 6th and Walnut Streets anchors the ambulatory network and is the largest primary care provider in the City of Reading, operating out of a thriving 266,000 square foot facility that provides family practice, womens and childrens services and diagnostic services. The downtown facility has been lauded as a model for inner city primary care as well as offers innovative patient center approaches to maternity and diabetes management. It also is pioneering the implementation of patient centered medical home practices. St. Joseph Medical Group is a network of 100 plus physicians and mid-level providers. The group includes: specialists in Internal Medicine, Family Medicine, Hospitalists, Orthopedics and Sports Medicine, Gynecology and Obstetrics, Neurology, Neurosurgery, General Surgery, Womens Services and Vascular Surgery and is committed to providing the Berks community with the best medical care available from board certified and fellowship-trained physicians. St. Josephs 380 member medical staff consists of board certified and fellowship trained physicians. St. Joseph also offers a family practice medical residency program, and provides clinical training for several nursing and allied health professionals. The network has nearly 1600 employees, $220 million in annual revenues and nearly 42,651 annual emergency room visits. St. Joseph reduces the burdens of the government to meet the communitys growing and diverse health needs by reaching out through its two campuses and multiple outpatient facilities. We have a responsibility to care for people who come to us for services and also to seek out the unmet needs of people who lack basic essentials every day. We also partner with local organizations to help improve health and quality of life for the poor, marginalized and vulnerable. We provide quality and compassionate care to all as we reach deeply into the community to participate in numerous activities with other non-profit, educational and social services agencies.Our Community Benefit activities are designed to: - Identify and increase awareness of health needs in Reading and Berks County. - Provide medical, spiritual and financial resources to meet those needs. - Create collaboration among community organizations that focus on health and well-being. St. Joseph is governed by a volunteer board of directors made up of a broad cross-section of local community and business leaders. The hospital participates in the widest range of private and government insurances of any hospital in the region and, according to the Pennsylvania Health Care Cost Containment Council, continues to provide care for a high percentage of Medicaid and non-paying patients compared to net patient revenue in a region that covers hospitals in Berks, Lehigh, Northampton, Schuylkill, Northumberland, and Carbon Counties (see www.phc4.org). Located in Reading, PA, Penn State Health St. Joseph serves primarily Berks County, PA. The City of Reading has a population of 87,833 and when combined with the remaining population of Berks County, the health network serves approximately 417,554 residents. The median age of the city of Reading is about 30 years old, nine years younger than that of the county and a reflection of the growing Latino population. The median signals the type of care most needed in the city and is reflected in the St. Joseph's efforts to provide patients with access to primary care physicians at its Downtown Reading Campus. Most notably, Reading the fifth largest city in the state of Pennsylvania - is a young, but ethnically diverse, with the Hispanic population accounting for nearly 60 percent of those who live in the City. The median household income is less than half of that of the total county. The city itself is financially challenged, and remains among the poorest cities in America. SCHEDULE H, PART VI, LINE 5 Promotion of community health: The heart of our mission is to touch and improve the lives in body, mind and spirit of as many people as possible who live in our extended community. We are making a difference with our numerous outreach efforts for which our staff gives unselfishly of their time. Among our programs are: - An Award for Better Breast Health: Penn State Health St. Joseph was selected as a winner in the Community Benefit category for its project, Better Breast Health Initiative: Breast Screening for the Uninsured Population. This innovative project was specifically developed to provide breast health education and screenings to the uninsured female population. Through the program, Penn State Health St. Joseph was able to provide breast imaging services for over 300 uninsured women. This initiative exemplifies Penn State Health St. Josephs commitment to the well-being of its patients and community. The HAP Achievement Awards represent Pennsylvanias health care innovation and forward-thinking during a time when much is changing in the health care industry. Fifteen judges representing the public and private sectors, health care, and business organizations chose 15 award winners. - Family and Womens Care and Family Practice Clinic in Center City: St. Joseph Family and Womens Care provides comprehensive outpatient primary care that includes services in family practice, pediatrics, and OB/GYN. The Center serves as an entry point into the continuum of care offered by Penn State Health St. Joseph. Physicians, Physician Assistants, Certified Registered Nurse Practitioners, Certified Nurse Midwives, Social Workers, Nurse Navigators, Nurses and Medical Assistants collaborate to provide an interdisciplinary approach to meet the individual healthcare needs of our patients. We offer age-appropriate health, psychological care that is culturally sensitive. Health maintenance education and wellness programs are also offered. This clinic serves as an outreach health program for an underserved patient population in the City of Reading and participates in all of the local health insurance plans including all of the Medical Assistance Plans. Access to primary healthcare is a significant issue for residents of Berks County. While it is true that residents all across Pennsylvania have to face the consequences of having too few primary care physicians in their communities it remains a problem that many county residents report not having a personal health care provider at a rate that is higher than the state average and higher than the surrounding counties. Latinos are more than three times as likely to report not having a primary health care provider as the Whites. Further, many Latinos face the significant socioeconomic barriers of poverty, language, lack of health insurance and cultural issues, including social support and attitudes about healthcare. The Downtown Campus also is home to Haven Behavioral Health, a full-service, inpatient psychiatric unit providing comprehensive and state of the art behavioral health services to wide range of patients and conditions. - About Centering Pregnancy: St. Joseph offers Centering Pregnancy a multifaceted group model of care that integrates the three major components of care health assessment, education, and support into a unified program within a group setting. Eight to twelve women with similar gestational ages meet together, learn care skills, participate in a facilitated discussion and develop a support network with other group members. Each group meets for at least 10 sessions throughout pregnancy and early postpartum and each session lasts approximately 90 minutes. Within the group space, the medical practitioner and care team complete standard physical health assessments for the women. Through this unique model of care, women are empowered to choose health-promoting behaviors. The effectiveness of this model and delivery of care has been measured by health outcomes for pregnancies, specifically increased birth weight and the gestational age of the mother at delivery. Additionally, scores show increased satisfaction by both the mother and the healthcare providers. Centering Pregnancy groups provide a dynamic atmosphere for learning and sharing that is impossible to create in a one-to-one encounter. Instead of short visits alone with a provider, Centering Pregnancy group participants receive approximately 20 hours of prenatal care across pregnancy, compared to about 2 total hours all at no additional cost. Centering Pregnancy is prenatal care that serves the general needs of all pregnant women and meets the special needs of racial and ethnic groups. This prenatal care model transcends barriers to bring women together to share what they have in common: the desire to have a healthy baby and a safe, satisfying labor and delivery experience. Hearing other women share concerns which mirror their own helps the woman to normalize the whole experience of pregnancy. St. Joseph has implemented Centering Pregnancy at our Downtown Reading Campus, and is reaching out to the community by hosting groups at other community based organization sites. - Centering Diabetes Promotes SelfManagement: Centering Diabetes classes are modeled on Centering pregnancy classes and are designed to help diabetics to access clinicians, therapists, dieticians and health educators and to participate in classes about nutrition, exercise, medications, and lifestyle and coping skills. The goal is to help patients to not be afraid of having diabetes to see that they can take care of themselves and that the disease is manageable. The program promotes self-management of the disease to achieve treatment goals that bring about healthy outcomes. -COMBATING YOUTH VIOLENCE: Violence prevention isnt often thought of as a traditional means of delivering healthcare. But it makes sense that Penn State Health St. Joseph should be at the forefront of this effort to reduce violence in our communities, we see the toll of violence every day in our emergency department. It is an epidemic and the toll of violent crimes in this country is as staggering and as persistent and pervasive as any infectious or chronic disease. St. Joseph provides the Reading Youth Violence project initiative with a five-year commitment totaling more than $840,000. Through a consensus process, three goals for preventing youth violence were developed: -Support positive relationships and home environments for youth people -Enhance student and school engagement to keep young people in school -Improve conditions in communities most impacted by violence -HERT Team: esponding to disasters: Penn State Health St. Josephs Hospital Emergency Response Team (HERT) truck carries a mobile, 10-bed emergency hospital, complete with: beds, supplies, medical equipment, cardiac monitors, suction units, splints, stretchers, evacuation chairs, six portable pop-up tents, water, food, generators, lights, tables, chairs, computers, communication equipment, triage tags, and various other emergency hospital equipment. It is a self-sufficient resource that can operate independently for several days. The team consists of physicians, nurses, Paramedics, EMT, decontamination specialists, and support personnel who are employees of the hospital and contribute their time to support the team. The HERT vehicle has become a staple at community health events such as the Reading Fair, WWII Weekend, Berks County Heritage Festival, Community Days, and many other venues. In addition, and perhaps more importantly, the HERT truck transports some of our essential emergency preparedness equipment, such as decontamination gear, portable hospital litters, and mass casualty medical supplies, that the hospital would use in times of disaster. Communities around the county have come to rely on the Penn State Health St. Joseph HERT to help ensure the safety of mass gathering events. - Free Flu shots: St. Josephs annual flu shot outreach once again served more than 1000 in our community with free flu vaccine and, as in past years, St. Joseph made special effort to provide the service to public servants, police, fire and ems in a drive up setting.-Giving kids a life, by giving kids a smile: The year 2017 is the 18th year that Penn State Health St. Joseph has collaborated with the Keystone Farmworker Program, the Berks-Schuylkill Dental Hygienists Association, the Berks County Dental Society, and individual private practice dental professionals to provide a Childrens Dental Clinic that operates one Saturday morning a month from January through May. The Childrens Dental Clinic cares for children with serious dental diseases who have fallen through the cracks. A majority of those clinic patients are low income, minority children, including farm-worker children. - Comenzando Bien: A Free Spanish Prenatal Class: Comenzando Bien (Good Beginning) was created by the national March of Dimes as a way to help educate Hispanic women about pre SCHEDULE H, PART VI, LINE 6 AFFILIATED HEALTH CARE SYSTEM: St. Joseph Regional Health Network is a member of the Penn State Health System. Penn State Health system's management meets frequently to coordinate and plan community benefit operations such as health needs assessments and state health improvement plan objectives. SCHEDULE H, PART VI, LINE 7 Community benefit report state filings: The community benefit report is not required to be filed with any state agency in the state of Pennsylvania. true St Joseph Medical Group 2500 Bernville Rd Reading PA 19605 208544021 501(c)(3) 28109054 Program Support St Joseph Medical Center Foundation 2500 Bernville Rd Reading PA 19605 232649362 501(c)(3) 507467 Program Support 2 PART I, LINE 2 IN THE CURRENT YEAR, SJRHN MADE GRANTS ONLY TO ITS RELATED ORGANIZATIONS. THERE IS NO SPECIFIC MONITORING OF THE GRANT FUNDS; HOWEVER SJRHN HAS ADOPTED BEST PRACTICES FOR INTERNAL CONTROLS. false true false false false false false true false John Morahan Director/President/CEO 0 503024 0 137154 0 17622 0 59687 0 20234 0 737721 0 0 Louis Borgatta MD Director/(Physician) 0 174354 0 0 0 2455 0 12424 0 4666 0 193899 0 0 Steve Massini Corp Director/PSH: CFO & CAO 0 708439 0 254356 0 4915 0 91001 0 20702 0 1079413 0 0 Alan Brechbill Corp Director/PSH: COO 0 862806 0 305506 0 84962 0 54628 0 22002 0 1329904 0 0 Courtney Coffman Secretary/Treasury/CFO 248452 0 59179 0 1532 0 7430 0 32729 0 349322 0 0 0 Sharon Strohecker vp, nursing and cno 273502 0 60890 0 2554 0 24500 0 21831 0 383277 0 0 0 Scott Mengle VP, Human Resources 221673 0 46193 0 1992 0 24500 0 29992 0 324350 0 0 0 Mary Hahn VP Strategy & Bus. Dev. 177607 0 35358 0 227 0 4500 0 2919 0 220611 0 0 0 Christopher Newman VP, Medical Affairs and CMO 348628 0 81534 0 2357 0 20929 0 11562 0 465010 0 0 0 Michael Bradley Medical Director 226985 0 8750 0 1209 0 11315 0 29724 0 277983 0 0 0 Michael Jupina VP Communications 174930 0 37186 0 1568 0 6155 0 1276 0 221115 0 0 0 Trina Alba Physician 283443 0 0 0 1300 0 24772 0 21822 0 331337 0 0 0 Christina Scartozzi Physician 197880 0 8000 0 1021 0 6186 0 20960 0 234047 0 0 0 Mary Brigandi Physician 177376 0 25476 0 1310 0 0 0 1566 0 205728 0 0 0 Joy Accamma Physician 186167 0 8000 0 1106 0 5080 0 12399 0 212752 0 0 0 PART VII SISTER JANET HENRY IS LISTED AS A KEY EMPLOYEE WITH ZERO TAXABLE COMPENSATION BECAUSE HER COMPENSATION IS PROVIDED TO THE ORDER SHE REPRESENTS. PART I, LINE 3 ARRANGEMENT USED TO ESTABLISH THE CEO'S COMPENSATION: COMPENSATION FOR THE CEO IS ESTABLISHED AND PAID BY A RELATED ORGANIZATION. THAT ORGANIZATION USED THE FOLLOWING TO ESTABLISH THE CEO'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) COMPENSATION SURVEY OR STUDY; (4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B PARTICIPATE IN, OR RECEIVE PAYMENT FROM, A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: During the calendar year ending within this fiscal year ended June 30, 2019, certain officers and key employees participated in a related organization's supplemental nonqualified retirement plan. The below listed individual's contributions have vested; such vested contributions are reported as taxable compensation on Schedule J, Part II, Column B(III), Other Reportable Compensation. Alan Brechbill During the calendar year ending within this fiscal year ended June 30, 2019, certain officers and key employees participated in a related organization's supplemental nonqualified retirement plan. The below listed individuals contributions have not yet vested; therefore, unvested contributions are reported on Schedule J, Part II, Column C, Retirement and Other Deferred Compensation. Alan Brechbill Stephen Massini PART I, LINE 7 Bonuses, paid by the filing organization or by a related organization that employs the individuals, are based on a number of variables including but not limited to individual goal achievements as well as organization operation achievements. The final determination of the bonus amount is determined and approved by the applicable board as part of the overall compensation review of the officers, key employees and highest compensated. FORM 990, PART VI, LINE 1A FORM 1096 REPORTING: FORM 1096 FOR THE FILING ORGANIZATION IS PROCESSED AND REPORTED BY ITS RELATED ORGANIZATION PENN STATE HEALTH (EIN: 47-3769205). FORM 990, PART VI, LINE 6 CLASSES OF MEMBERS OR STOCKHOLDERS: THE FILING ORGANIZATION'S SOLE MEMBER IS PENN STATE HEALTH, A PENNSYLVANIA NONPROFIT CORPORATION. FORM 990, PART VI, LINE 7A ELECTING MEMBERS OF GOVERNING BODY: DIRECTORS SHALL BE ELECTED BY THE CORPORATE MEMBER, PENN STATE HEALTH. THE CORPORATE MEMBER MAY AT ANY TIME REMOVE, WITH OR WITHOUT CAUSE, ANY MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, LINE 7B DECISIONS REQUIRING APPROVAL BY MEMBERS OR STOCKHOLDERS: PURSUANT TO THE FILING ORGANIZATION'S BYLAWS THE CORPORATE MEMBER HAS RESERVED POWERS AS FOLLOWS: - TO DETERMINE THE NUMBER OF AND TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE DIRECTORS OF THE FILING ORGANIZATION; - TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE CHAIRPERSON AND VICE CHAIRPERSON OF THE FILING ORGANIZATION; - TO INITIATE OR APPROVE ANY AND ALL AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS OF THE FILING ORGANIZATION; - TO INITIATE OR TO APPROVE ALL FUNDAMENTAL CHANGE TRANSACTIONS AND ALL OTHER TRANSACTIONS NOT IN THE ORDINARY COURSE OF BUSINESS, INCLUDING WITHOUT LIMITATION, ALL MERGERS, CONSOLIDATIONS, DIVISIONS, SALES OF SUBSTANTIALLY ALL ASSETS, AND LIQUIDATION OR DISSOLUTION OF THE FILING ORGANIZATION; - TO GIVE SUCH OTHER APPROVALS AND TAKE SUCH OTHER ACTIONS AS ARE SPECIFICALLY RESERVED TO MEMBERS OF PENNSYLVANIA NONPROFIT CORPORATIONS. FORM 990, PART VI, LINE 11B REVIEW OF FORM 990 BY GOVERNING BODY: THE FORM 990 IS PREPARED BY AN EXTERNAL ACCOUNTING FIRM; IT IS REVIEWED BY ACCOUNTING/FINANCE DEPARTMENT PERSONNEL AND THE CHIEF FINANCIAL OFFICER, AND THEN DISTRIBUTED TO ALL MEMBERS OF THE BOARD FOR REVIEW AND COMMENT BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, LINE 12C CONFLICT OF INTEREST POLICY: THE FILING ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST (COI) POLICIES FOR OFFICERS, DIRECTORS, AND KEY EMPLOYEES (COVERED PERSONS). PER THE POLICY, NO COVERED PERSONS MAY ENGAGE IN ANY TRANSACTION OR ARRANGEMENT OR UNDERTAKE POSITIONS WITH OTHER ORGANIZATIONS THAT INVOLVE A CONFLICT OF INTEREST, EXCEPT IN COMPLIANCE WITH THE POLICY. EVERY COVERED PERSON SHALL DISCLOSE ALL ACTUAL AND POTENTIAL CONFLICTS THROUGH AN ANNUAL WRITTEN DISCLOSURE STATEMENT AND AS MATTERS INVOLVING AN ACTUAL OR POTENTIAL CONFLICT ARISE. THE BOARD WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION OR ARRANGEMENT GIVING RISE TO THE POTENTIAL CONFLICT TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION OR ARRANGEMENT. A COVERED PERSON WHO HAS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH THE BOARD OF DIRECTORS OR A COMMITTEE IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE PRESENTATION TO THE BOARD OR COMMITTEE TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. THE FILING ORGANIZATION MAY ENTER INTO A TRANSACTION OR ARRANGEMENT IN WHICH A COVERED PERSON HAS AN ACTUAL CONFLICT OF INTEREST IF A MAJORITY OF DIRECTORS WHO HAVE NO INTEREST IN THE TRANSACTION OR ARRANGEMENT APPROVE THE TRANSACTION OR ARRANGEMENT AT A BOARD OR COMMITTEE MEETING AFTER DETERMINING THAT THE TRANSACTION OR ARRANGEMENT IS FAIR AND REASONABLE TO THE CORPORATION, ANY COVERED PERSON WHO HAS A CONFLICT WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING SUCH TRANSACTION OR ARRANGEMENT (EXCEPT THAT THE COVERED PERSON MAY APPEAR AT A MEETING TO ANSWER QUESTIONS), AND IF THE TRANSACTION OR ARRANGEMENT INVOLVES COMPENSATION OR OTHER FINANCIAL BENEFIT TO THE COVERED PERSON, THE BOARD RELIES ON APPROPRIATE COMPARABILITY DATA TO DETERMINE REASONABLENESS. THE FILING ORGANIZATION WILL DOCUMENT THE FOREGOING IN THE MINUTES OF BOARD AND COMMITTEE MEETINGS, AS APPLICABLE. EACH COVERED PERSON MUST SIGN A STATEMENT THAT AFFIRMS THAT HE OR SHE HAS RECEIVED A COPY OF THE COI POLICY, HAS READ AND UNDERSTANDS IT, AND HAS AGREED TO COMPLY WITH IT. IF THE BOARD OF DIRECTORS HAS REASONABLE CAUSE TO BELIEVE THAT A COVERED PERSON HAS FAILED TO COMPLY WITH THE POLICY, THE BOARD MAY COUNSEL THE COVERED PERSON REGARDING SUCH FAILURE AND, IF THE ISSUE IS NOT RESOLVED TO THE BOARD'S SATISFACTION, MAY CONSIDER ADDITIONAL CORRECTIVE ACTION, INCLUDING REMOVAL FROM THE BOARD OF DIRECTORS OR OTHER POSITION WITH THE FILING ORGANIZATION, AS APPROPRIATE. FORM 990, PART VI, LINES 13 & 14 WHISTLEBLOWER POLICY AND DOCUMENT RETENTION/DESTRUCTION POLICY: THE FILING ORGANIZATION FOLLOWS THE WHISTLEBELOWER POLICY AND DOCUMENT RETENTION AND DESTRUCTION POLICY OF A RELATED ORGANIZATION. FORM 990, PART VI, LINES 15A & 15B PROCESS USED TO ESTABLISH COMPENSATION OF CEO, OFFICERS, AND KEY EMPLOYEES: THE FILING ORGANIZATION DOES NOT HAVE ANY EMPLOYEES; HOWEVER, ITS RELATED ORGANIZATION HAS THE FOLLOWING PROCESS FOR ESTABLISHING COMPENSATION: ANNUALLY, THE COMPENSATION COMMITTEE OF THE BOARD OF THE RELATED ORGANIZATION ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT A COMPENSATION ANALYSIS FOR THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER, OFFICERS, AND KEY EMPLOYEES. AS PART OF THE ANALYSIS, THE INDEPENDENT COMPENSATION CONSULTANT IDENTIFIES, GATHERS, AND ANALYZES APPROPRIATE COMPARABILITY DATA UPON WHICH THE COMMITTEE AND THE FULL BOARD WILL RELY TO ASSESS THE REASONABLENESS OF THE TOTAL PROPOSED COMPENSATION (INCLUDING BENEFITS) OF THE CEO, OFFICERS, AND KEY EMPLOYEES. ONCE THE COMPENSATION ANALYSIS IS COMPLETE AND DOCUMENTED IN REPORTS, THE REPORTS ARE PROVIDED TO THE BOARD FOR REVIEW AND CONSIDERATION, TOGETHER WITH WRITTEN OPINIONS FROM THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION ARRANGEMENTS FOR THE CEO, OFFICERS, AND KEY EMPLOYEES ARE REASONABLE WITHIN THE MEANING OF TREASURY REGULATION 53.4958-4(B)(1)(II)(A). WITH INPUT FROM THE COMPENSATION COMMITTEE, THE FULL BOARD MAKES ANNUAL DECISIONS WITH RESPECT TO COMPENSATION FOR THE CEO, OFFICERS, AND KEY EMPLOYEES BASED UPON THE DATA IN THE REPORT AND THE OPINION OF THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION IS REASONABLE. THESE DECISIONS, THE BASIS FOR THESE DECISIONS, THE BOARD MEMBERS' NAMES WHO VOTE ON COMPENSATION, AND THAT NONE OF THE BOARD MEMBERS HAVE A CONFLICT OF INTEREST WITH RESPECT TO THESE COMPENSATION ARRANGEMENTS IS ALL CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES. FORM 990, PART VI, LINE 19 REQUIRED DOCUMENTS AVAILABLE TO THE PUBLIC: THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF THE PENNSYLVANIA STATE UNIVERSITY AND ITS SUBSIDIARIES (WHICH INCLUDE THE FILING ORGANIZATION) ARE AVAILABLE AT WWW.PSU.EDU. 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