2019-11-14T14:52:40-06:00 2018-12-31 BKD LLP 1201 Walnut Suite 1700 KANSAS CITY MO 641062246 990 2018-01-01 481088982 OLATHE HEALTH PHYSICIANS INC % TOM CHIARELLI OLAT 9133553523 20333 W 151ST STREET OLATHE KS 66061 TIERNEY GRASSER CFO 9137914461 2019-11-15 true Michael J Engle P00482834 8162216300 167.68.126.162 43372220193185000057 2019-11-14 P 69A59578EE10CB617CE55D3237ABB8DD0B244B6C 355CC2E4B6E27E32DAADC48E1CA8D97843AD7DA8 2018 2020-03-31 21:24:44Z STANLEY HOLM 20333 W 151ST STREET OLATHE KS 66061 65019910 false X WWW.OLATHEHEALTH.ORG X 1990 KS THE MISSION OF OLATHE HEALTH IS TO HELP PEOPLE THROUGH HEALING, HEALTH, AND HAPPINESS. 9 9 778 9 0 0 0 67501132 62556707 4822 -12327 2376642 2451619 69882596 64995999 0 0 0 0 77889695 75084900 0 0 0 24677766 25254592 102567461 100339492 -32684865 -35343493 47968263 49828172 16825929 17094171 31142334 32734001 X TO HELP PEOPLE THROUGH HEALING, HEALTH, AND HAPPINESS false true 78111062 0 62556707 SEE SCHEDULE O 78111062 true false false false false false false false false false true false false true true false false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 35 0 true 778 true true true false false false false false false false false false false false X 9 9 true false true false true true true true true true true true true true true true true true true true false KS X TOM CHIARELLI 9133553523 20333 W 151ST STREET OLATHE KS 66061 X JAMES R HUBBARD DIRECTOR 1.0 2.0 X 0 0 0 DOUGLAS M HUSTON DIRECTOR 1.0 0.0 X 0 0 0 KENNETH A STELZER DIRECTOR/VICE CHAIRPERSON 2.0 1.0 X X 0 0 0 RICHARD K SUMMERS DIRECTOR 1.0 5.0 X 0 0 0 ELAINE TATHAM EDM DIRECTOR 1.0 1.0 X 0 0 0 CHIP WOOD DIRECTOR/CHAIRPERSON 1.0 2.0 X X 0 0 0 KRISTINE GISH HERRON MD DIRECTOR 1.0 0.0 X 0 0 0 LARRY K BRUBAKER DIRECTOR 1.0 0.0 X 0 0 0 MATT K MCBRIDE DIRECTOR 1.0 0.0 X 0 0 0 FRANK DEVOCELLE PRESIDENT/CEO 5.0 40.0 X 0 1090291 20521 STANLEY HOLM PRESIDENT/CEO 5.0 40.0 X 0 173608 26482 TIERNEY GRASSER CHIEF FINANCIAL OFFICER 5.0 40.0 X 0 540872 33498 JAMES L WETZEL CHIEF MEDICAL OFFICER 5.0 40.0 X 0 554894 20724 PATRICIA KATZER VP OF OPERATIONS 50.0 0.0 X 242516 0 16390 CHET JOHNSON VP SR.MED & OPERATIONS OFFICER 50.0 0.0 X 288370 0 5135 DAVID PURSELL SECRETARY/VP/GENERAL COUNSEL 5.0 40.0 X 0 375209 27975 RAVI YARLAGADDA CARDIOLOGIST 50.0 0.0 X 1323773 0 0 PHANI ATTALURI GASTROINTESTINOLOGIST 50.0 0.0 X 1318204 0 76777 DAVID LEE MEDICAL ONCOLOGIST 50.0 0.0 X 1032444 0 29777 LARRY CORUM MEDICAL ONCOLOGIST 50.0 0.0 X 979009 0 79186 JAMES MILLER CARDIO THORACIC SURGEON 50.0 0.0 X 859680 0 3713 6043996 2734874 340178 144 false true false MEYER BROS BUILDING CO 800 E 101ST TERRACE STE 120W KANSAS CITY MO 64131 CONSTRUCTION 639730 WEATHERBY LOCUMSINC PO BOX 972633 DALLAS TX 75397 CONTRACT LABOR 1082615 THERAPEUTIC RADIOLOGISTS INC PO BOX 219222 KANSAS CITY MO 64121 PHYSICIAN FEES 1445486 QUEST DIAGNOSTICS PO BOX 772976 CHICAGO IL 60677 REFERENCE LAB 854693 MEURER MEDICAL LLC 6925 BELINDER AVE MISSION HILLS KS 66208 PHYSICIAN FEES 311478 21 0 NET PATIENT SERVICE REVENUE 621110 62556707 62556707 62556707 11584 11584 0 0 319738 319738 0 319738 319738 23911 -23911 -23911 -23911 0 0 0 0 0 0 0 0 0 ON CALL PAY 900099 1888881 1888881 MISCELLANEOUS REVENUE 900099 243000 243000 2131881 64995999 62556707 2439292 0 0 0 0 552411 440012 112399 0 63914226 50604480 13309746 1386125 1267318 118807 5586454 4894697 691757 3645684 3384020 261664 1424961 1424961 118070 118070 41144 41144 0 0 0 5454913 1354135 4100778 490948 451873 39075 1027349 212732 814617 2643938 2384706 259232 0 2750900 2449273 301627 44539 4319 40220 0 173010 157737 15273 74335 74335 0 3465809 3173785 292024 771711 706525 65186 BAD DEBT EXPENSE 1802322 1795693 6629 MEDICAL SUPPLIES 4152621 4152621 DUES & LICENSES 210296 182614 27682 REPAIRS & MAINTENANCE 384722 357098 27624 223004 63089 159915 100339492 78111062 22228430 0 1290475 8401389 0 0 0 0 4595611 5244829 0 0 0 0 0 0 807191 748428 319081 409958 54202378 22191367 38245830 32011011 0 0 0 0 0 0 0 0 2710075 3012557 47968263 49828172 14402172 14360498 0 0 132039 207711 0 0 0 0 0 0 6197 1049 0 0 2285521 2524913 16825929 17094171 X 31142334 32734001 0 0 0 0 31142334 32734001 47968263 49828172 X -35343493 36935160 X false true X true false X 0 0 0 0 0 0 63970375 62361790 62461436 67451370 62556707 318801678 0 0 0 0 63970375 62361790 62461436 67451370 62556707 318801678 15279 14270 0 0 29549 0 15279 14270 0 0 29549 318772129 3290 3956 4197 5215 331322 347980 17030 17030 3290 3956 4197 22245 331322 365010 0 0 0 0 0 0 366900 301540 2148010 2402642 2131881 7350973 64340565 62667286 64613643 69876257 65019910 326517661 0.97628 0.98245 0.00112 0.00011 X 6163265 6163265 30207250 9616837 20590413 6483435 3945120 2538315 10043911 8265851 1778060 1304517 363559 940958 32011011 INVESTMENT-DEFINED BEN. PLAN 2485974 OTHER RECEIVABLES 526583 3012557 0 DUE TO AFFILIATES 2524913 2524913 SCHEDULE D, PART X, LINE 2 MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. true true false false false false false false false FRANK DEVOCELLE PRESIDENT/CEO 0 744177 0 130152 0 215962 0 2500 0 18021 0 1110812 0 0 STANLEY HOLM PRESIDENT/CEO 0 164051 0 0 0 9557 0 23793 0 2689 0 200090 0 0 TIERNEY GRASSER CHIEF FINANCIAL OFFICER 0 420355 0 40240 0 80277 0 2500 0 30998 0 574370 0 0 JAMES L WETZEL CHIEF MEDICAL OFFICER 0 423892 0 52572 0 78430 0 2500 0 18224 0 575618 0 0 PATRICIA KATZER VP OF OPERATIONS 224148 0 13802 0 4566 0 2500 0 13890 0 258906 0 0 0 CHET JOHNSON VP SR.MED & OPERATIONS OFFICER 151477 0 29963 0 106930 0 0 0 5135 0 293505 0 0 0 RAVI YARLAGADDA CARDIOLOGIST 1322513 0 0 0 1260 0 0 0 0 0 1323773 0 0 0 PHANI ATTALURI GASTROINTESTINOLOGIST 1317367 0 0 0 837 0 55000 0 21777 0 1394981 0 0 0 DAVID LEE MEDICAL ONCOLOGIST 971641 0 0 0 60803 0 0 0 29777 0 1062221 0 0 0 LARRY CORUM MEDICAL ONCOLOGIST 977749 0 0 0 1260 0 55000 0 24186 0 1058195 0 0 0 JAMES MILLER CARDIO THORACIC SURGEON 849012 0 0 0 10668 0 0 0 3713 0 863393 0 0 0 DAVID PURSELL SECRETARY/VP/GENERAL COUNSEL 0 353653 0 17152 0 4404 0 2500 0 25475 0 403184 0 0 FORM 990, PART VII & SCHEDULE J, PART I, LINE 3 THE COMPENSATION BEING REPORTED FOR FRANK H. DEVOCELLE, TIERNEY L. GRASSER, JAMES L. WETZEL AND DAVID PURSELL IS FROM OLATHE HEALTH SYSTEM, INC., A RELATED TAX EXEMPT ORGANIZATION. OLATHE HEALTH SYSTEM, INC. USES A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT BOARD MEMBERS TO ESTABLISH AND APPROVE COMPENSATION AND BENEFITS FOR ALL OFFICERS OF OLATHE HEALTH SYSTEM, INC. AND ITS AFFILIATED CORPORATIONS. THE COMPENSATION COMMITTEE UTILIZED AN INDEPENDENT COMPENSATION CONSULTANT AND COMPENSATION SURVEYS TO ESTABLISH FAIR MARKET VALUE SALARIES AND BENEFITS FOR OLATHE HEALTH SYSTEM, INC. AND ITS AFFILIATES OFFICERS. SCHEDULE J, PART I, LINE 4A THE COMPENSATION REPORTED FOR DR. CHET JOHNSON INCLUDES SEVERANCE OF $105,319. SCHEDULE J, PART I, LINE 4B & PART II FRANK H. DEVOCELLE, JAMES WETZEL AND TIERNEY GRASSER PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP), IN WHICH THEY ARE FULLY VESTED. IN 2018, THERE WAS A CONTRIBUTION OF $ 123,843 TO FRANK H. DEVOCELLE, $74,811 TO TIERNEY L. GRASSER AND $67,026 TO JAMES WETZEL WHICH IS REPORTED AS TAXABLE COMPENSATION AND INCLUDED IN THEIR W-2. THE FOLLOWING AMOUNTS WERE ACCRUED IN 2018 FOR A 457(F) PLAN AND INCLUDED AS DEFERRRED INCOME ON SCHEDULE J FOR THE BENEFIT OF STAN HOLM, PRESIDENT CHIEF EXECUTIVE OFFICER, $23,793. A SELECT GROUP OF PHYSICIANS ALSO PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). DRS. ATTALURI($55,000) AND CORUM($55,000) PARTICPATE IN THE PLAN AND THEIR 2018 CONTRIBUTIONS ARE INCLUDED AS DEFERRED COMPENSATION. DR. LEE RECEIVED A PAYOUT OF $55,000 IN 2018 WHICH WAS INCLUDED IN HIS W-2. FORM 990, PART III, LINE 3 Olathe Health Physicians, Inc. had 5 rural health clinics operating in areas designated as medically underserved until June 2018 WHEN THE CLINICS WERE TRANSFERED TO MIAMI COUNTY MEDICAL CENTER, A RELATED 501(C)(3) ORGANIZATION. FORM 990, PART III, LINE 4A OLATHE HEALTH PHYSICIANS, INC. (OHPI) CARRIES OUT THEIR MISSION BY PROVIDING PHYSICIAN AND ANCILLARY SERVICES TO THE GENERAL PUBLIC IN THEIR SERVICE AREA. IN 2018, OHPI PROVIDED PHYSICIAN AND ANCILLARY SERVICES AS FOLLOWS: PROGRAM NAME NUMBER OF VISITS PRIMARY CARE PHYSICIAN SERVICES 271,633 SPECIALISTS PHYSICIAN SERVICES 102,691 OHPI'S CONTRIBUTIONS TO THE HEALTH OF THE COMMUNITIES INCLUDES: CHARITY AND UNCOMPENSATED CARE OLATHE HEALTH PHYSICIANS MISSION IS TO HELP PEOPLE THROUGH HEALING, HEALTH AND HAPPINESS. OLATHE HEALTH PHYSICIANS PROVIDES HEALTH CARE TO INDIVIDUALS WHO HAVE INADEQUATE RESOURCES TO AFFORD THE SERVICES AND ARE UNINSURED OR UNDERINSURED OR PARTICIPATE IN GOVERNMENTAL HEALTH PROGRAMS SUCH AS MEDICARE, MEDICAID AND TRICARE. UNCOMPENSATED CARE IS PROVIDED TO OUR PATIENTS IN THE SERVICE AREA WHO MEET THE GUIDELINES OF THE OLATHE HEALTH PHYSICIANS' CHARITY CARE PROGRAM. IN ADDITION, OHPI PROVIDES CARE TO PATIENTS IN EXCESS OF REIMBURSEMENT TO PARTICIPANTS IN THE MEDICAID PROGRAM. CHARITY CARE PROVIDED AT COST $ 266,499 MEDICAID COST IN EXCESS OF PAYMENTS $ 3,840,903 PROVISION OF CARE IN RURAL HEALTH CLINICS Olathe Health Physicians, Inc. had 5 rural health clinics operating in areas designated as medically underserved until June 2018. These clinics help meet the needs of their respective communities by providing primary care physicians and mid-level providers, lab services and x-ray services. IN June 2018 THE CLINICS WERE TRANSFERED TO MIAMI COUNTY MEDICAL CENTER, A RELATED 501(C)(3) ORGANIZATION. EDUCATIONAL SUPPORT IN ADDITION TO PROVIDING UNCOMPENSATED CARE FOR PATIENTS IN NEED, OLATHE HEALTH PHYSICIANS PROVIDES OTHER HEALTH CARE RELATED BENEFITS TO THE COMMUNITIES IT SERVES BY PROVIDING EDUCATION FOR A VARIETY OF MEDICAL PROFESSIONALS, INCLUDING MEDICAL STUDENTS, NURSING STUDENTS, MID-LEVEL PROVIDERS, AND PHYSICIANS. THE COST OF THIS EDUCATION WAS $73,156. SUPPORT IS $73,156. FORM 990, PART VI, SECTION A, LINE 2 FRANK H DEVOCELLE, STAN HOLM, AND TIERNEY L GRASSER, SERVE AS AN OFFICER OR DIRECTOR OF RELATED FOR PROFIT COMPANIES. LARRY BRUBAKER, JAMES HUBBARD, KENNETH STELZER, RICHARD SUMMERS, ELAINE TATHAM, AND CHIP WOOD ARE BOARD MEMBERS OF OLATHE HEALTH SYSTEMS INC. AND FRANK H DEVOCELLE, STAN HOLM, TIERNEY L GRASSER, DAVID PURSELL, AND JAMES L. WETZEL, MD ARE EMPLOYED BY OLATHE HEALTH SYSTEM, INC. WHICH IS THE SOLE MEMBER OF OLATHE HEALTH PHYSICIANS, INC. FORM 990, PART VI, SECTION A, LINE 4 THE GOVERNING DOCUMENTS WERE AMENDED TO CHANGE THE MISSION STATEMENT OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 6 OLATHE HEALTH SYSTEM, INC., IS A NOT-FOR-PROFIT, 501(C)(3) ORGANIZATION, AND IS THE SOLE MEMBER OF OLATHE HEALTH PHYSICIANS, INC. FORM 990, PART VI, SECTION B, LINE 7A OLATHE HEALTH SYSTEM, INC. IS THE SOLE MEMBER OF OLATHE HEALTH PHYSICIANS, INC. AND HAS THE RIGHT TO ELECT OR APPOINT ALL THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 7B OLATHE HEALTH SYSTEM, INC. IS THE SOLE MEMBER, AND HAS THE RIGHT TO APPROVE OLATHE HEALTH PHYSICIANS, INC.'S BYLAWS AND ARTICLES OF INCORPORATION AND ALSO MUST APPROVE A VARIETY OF OTHER TRANSACTIONS. FORM 990, PART VI, SECTION B, LINE 11B AN INDEPENDENT ACCOUNTING FIRM PREPARES AND REVIEWS THE 990. THE 990 IS THEN REVIEWED BY THE ORGANIZATION'S MANAGEMENT PERSONNEL. ANY QUESTIONS AND CONCERNS MANAGEMENT HAS ARE ADDRESSED AND ANY CORRECTIONS OR CLARIFICATIONS ARE MADE. THE 990 IS THEN REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE OLATHE HEALTH SYSTEM, INC. BOARD ON BEHALF OF ALL OF ITS AFFILIATES. THE AUDIT & COMPLIANCE COMMITTEE IS COMPRISED OF INDEPENDENT BOARD MEMBERS OF OLATHE HEALTH SYSTEM, INC. PRIOR TO FILING THE RETURN WITH THE INTERNAL REVENUE SERVICE THE FINAL FORM 990 WITH ALL REQUIRED SCHEDULES IS THEN PROVIDED TO ALL BOARD MEMBERS FOR REVIEW. PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C THE PURPOSE OF THE ORGANIZATION'S CONFLICT OF INTEREST POLICY IS TO PROTECT THE ORGANIZATION'S INTEREST WHEN IT IS CONTEMPLATING A DECISION OR ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF ANY PERSON IN A POSITION OF AUTHORITY OVER THE ORGANIZATION, OR MIGHT RESULT IN A POSSIBLE EXCESS BENEFIT TRANSACTION. CORPORATE OFFICERS AND MEMBERS OF THE BOARD OF DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY AND COMPLETE A DISCLOSURE OF INFORMATION FORM ANNUALLY. A SUMMARY OF THE ANNUAL DISCLOSURES OF INFORMATION IS PROVIDED TO THE FULL BOARD FOR REVIEW AT LEAST ONE TIME PER YEAR. THE CONFLICT OF INTEREST POLICY CALLS FOR ANY INTERESTED PERSON TO DISCLOSE THE EXISTENCE OF A FINANCIAL RELATIONSHIP OR COMPETITIVE INTEREST IN CONNECTION WITH ANY PENDING TRANSACTION OR ARRANGEMENT. THE INDIVIDUAL IS GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT THAT GAVE RISE TO THE DISCLOSURE. WHEN A TRANSACTION INVOLVES AN INTERESTED PARTY, THE FOLLOWING PROCEDURES ARE FOLLOWED: 1. THE INTERESTED PARTY LEAVES THE MEETING AFTER PROVIDING ANY MATERIAL FACTS OR DISCUSSION REGARDING THE MATTER THAT GIVES RISE TO THE INTEREST UNLESS REQUESTED TO STAY BY THE REMAINING BOARD OR COMMITTEE MEMBERS. 2. IF APPROPRIATE, THE BOARD MAY APPOINT A NON-INTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION. 3. THE INTERESTED DIRECTOR MAY NOT VOTE IN THE MATTER THAT GIVES RISE TO THE INTEREST. 4. IN ORDER TO APPROVE THE TRANSACTION, THE BOARD MUST FIRST FIND, BY A MAJORITY VOTE OF THE DIRECTORS THEN IN OFFICE, WITHOUT COUNTING THE VOTE OF THE INTERESTED DIRECTOR, A. THAT THE PROPOSED TRANSACTION IS IN THE ORGANIZATION'S BEST INTERESTS AND FOR ITS OWN BENEFIT, AND B. THAT, AFTER REASONABLE INVESTIGATION, THE BOARD HAS DETERMINED THAT THE ORGANIZATION CANNOT OBTAIN A MORE ADVANTAGEOUS TRANSACTION WITH REASONABLE EFFORTS UNDER THE CIRCUMSTANCES. FORM 990, PART VI, SECTION B, LINES 15A & 15B ANNUALLY,THE PERSONNEL AND COMPENSATION COMMITTEE OF THE OLATHE HEALTH SYSTEM, INC. (OLATHE HEALTH PHYSICIANS, INC.'S SOLE MEMBER) IS COMPRISED OF INDEPENDENT MEMBERS OF THE BOARD OF OLATHE HEALTH SYSTEM, INC. THE PERSONNEL AND COMPENSATION COMMITTEE REVIEWS AND APPROVES THE CEO AND OTHER OFFICERS OF THE CORPORATION'S COMPENSATION IN ACCORDANCE WITH THEIR COMPENSATION POLICY. THE PERSONNEL AND COMPENSATION COMMITTEE REVIEWS THIRD PARTY SALARY SURVEYS, USES INDEPENDENT CONSULTANTS AND ALSO UTILIZES WRITTEN CONTRACTS FOR THE CEO TO DETERMINE THE FAIR MARKET VALUE OF THE CURRENT COMPENSATION, SALARY RANGES AND BENEFITS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9 TRANSFER FROM AFFILIATE $ 36,935,160 OLATHE MEDICAL CENTER INC 20333 W 151ST ST OLATHE KS 66061 480577664 HOSPITAL KS 501(C)(3) 3 OHSI true OLATHE HEALTH SYSTEM INC 20333 W 151ST ST OLATHE KS 66061 480979845 SUPPORT ORG KS 501(C)(3) 12C NA false MIAMI COUNTY MEDICAL CENTER INC 2100 BAPTISTE DR PAOLA KS 66071 481155548 HOSPITAL KS 501(C)(3) 3 OHSI true OLATHE HEALTH CHARITABLE FOUNDATION 20333 W 151ST ST OLATHE KS 66061 481136010 FUNDRAISING KS 501(C)(3) 12A OMCI true OMC DOCTOR'S BLDG CONDO OWNERS ASSOC INC 20333 W 151ST ST OLATHE KS 66061 481244766 REAL ESTATE KS NA C CORPORATION 0 0 true OLATHE HEALTH DEVELOPMENT CORPORATION 20333 W 151ST ST OLATHE KS 66061 363445097 MEDICAL SERVI KS OHSI C CORPORATION 0 0 true false false false false false false false false true false false true true true true true true true true OLATHE MEDICAL CENTER INC I 112366 COST OLATHE MEDICAL CENTER INC L 1888880 COST OLATHE MEDICAL CENTER INC M 129736 COST OLATHE MEDICAL CENTER INC N 4392917 COST OLATHE MEDICAL CENTER INC O 3464555 COST OLATHE MEDICAL CENTER INC P 1295679 COST OLATHE MEDICAL CENTER INC Q 15275448 COST OLATHE MEDICAL CENTER INC S 35935160 COST OLATHE HEALTH SYSTEM INC M 1125043 COST OLATHE HEALTH SYSTEM INC S 1445402 COST MIAMI COUNTY MEDICAL CENTER R 6248220 COST MIAMI COUNTY MEDICAL CENTER P 827243 COST MIAMI COUNTY MEDICAL CENTER I 5412104 COST