2019-05-13T11:03:30-05:00 2018-06-30 990 2017-07-01 421177001 Wheaton Franciscan Healthcare-Iowa Inc % TIMOTHY HUBER WHEA 3192728000 3421 West Ninth Street Waterloo IA 507025499 DOUG DAVENPORT CFO 3192727300 2019-05-13 170.232.227.236 42509020191335000002 2019-05-13 P 46DDF868077CB02D2C7E1EC7903C40E42556EC24 C72FFBF36B582C0CECDB54FA8D1B1ABE4305271A 2017 2019-02-21 02:37:17Z MERCYONE NORTHEAST IOWA Jack Dusenbery 3421 West Ninth Street Waterloo IA 507025499 59591015 false 0928 X www.wheatoniowa.org X 1982 IA This regional holding company exists to support the programs and activities of its supported organizations which, in turn, helps them achieve their exempt purposes. 15 11 0 10 0 0 0 40035974 58944820 0 0 701407 646195 40737381 59591015 0 0 0 0 0 0 0 0 0 40737381 59591015 40737381 59591015 0 17723321 34589925 3306927 39147927 14416394 -4558002 AS A MEMBER OF WHEATON FRANCISCAN HEALTHCARE, OUR AFFILIATES STRIVE TO LIVE OUT THE HEALING MINISTRY OF THE JUDEO-CHRISTIAN TRADITION WHILE PROVIDING EXCEPTIONAL AND COMPASSIONATE HEALTHCARE SERVICES THAT PROMOTE THE DIGNITY AND WELL-BEING OF THE PATIENTS AND COMMUNITIES WE SERVE. OUR VISION IS TO BE RECOGNIZED FOR SUPERIOR HEALTHCARE SERVICE, CLINICAL EXCELLENCE, AS THE HEALTHCARE EMPLOYER OF CHOICE, AND THE PREFERRED PARTNER OF PHYSICIANS. false false 29795506 59591015 WHEATON FRANCISCAN HEALTHCARE IN IOWA Wheaton Franciscan Healthcare - Iowa is a faith-based 511-bed, not-for-profit, comprehensive medical/surgical health care provider offering acute levels of medical care at Covenant Medical Center in Waterloo, Sartori Memorial Hospital in Cedar Falls, and Mercy Hospital in Oelwein. Its services in the region also include Covenant Clinic with more than 100 primary care and specialty providers; Covenant Foundation, Sartori Health Care Foundation and Mercy Hospital Foundation. Areas of excellence include cardiology, orthopedics, neurosurgery, maternity and NICU, cancer treatment, minimally invasive and Bariatric surgery. The Iowa operations have been part of a 140 year system of care sponsored by the Wheaton Franciscan Sisters, formerly incorporated in 1983. In 2016, the Wheaton Franciscan Sisters transferred their Iowa operations to Mercy Health Network, an Iowa-based health care system based out of Des Moines, Iowa. Mercy Health Network (MHN) is an integrated system of member hospitals and other health and patient care facilities united into one operating organization to improve the delivery of healthcare services to the people of Iowa and adjoining states. MHNs sponsors own and operate medical centers and other services in Clinton, Des Moines, Dubuque, Mason City, and Sioux City, and community hospitals in six other locations. In addition, MHN has 27 members who participate through contracts for management and other services. Mercy Health Network (MHN) was founded in 1998 under a joint operating agreement between two of the largest Catholic, not-for-profit health organizations in the United States: Catholic Health Initiatives, based in Englewood, Colorado, and Trinity Health, based in Livonia, Michigan. Covenant Medical Center in Waterloo, Iowa was founded in 1986 when Wheaton Franciscan Services consolidated St. Francis Hospital (founded in 1912) and Schoitz Medical Center (founded in 1904). Covenant Medical Center was located in two locations until 1991 when all acute care services were combined at one site. The other site was transformed into an assisted living center and adult services center. In 1995, Wheaton Franciscan Services Iowa region was renamed Covenant Health System and included Covenant Medical Center in Waterloo, Covenant Foundation in Waterloo, Mercy Hospital in Oelwein, N. E. Iowa Real Estate Investments and Schoitz Health Resources. Sartori Memorial Hospital became a part of Covenant Health System in 1996 when the system entered a long-term lease agreement with the City of Cedar Falls. In 2006, Covenant Health System was renamed Wheaton Franciscan Healthcare-Iowa, to reflect its continued commitment to an integrated health care delivery system for residents of Northeast Iowa. Today Wheaton Franciscan Healthcare Iowa includes Covenant Medical Center (and its unincorporated division, Covenant Clinic) and Covenant Foundation in Waterloo, Mercy Hospital in Oelwein, Sartori Memorial Hospital and Sartori Health Care Foundation in Cedar Falls, and N. E. Iowa Real Estate Investments. WHEATON FRANCISCAN HEALTHCARE IN IOWA LIST OF ENTITIES Hospitals Covenant Medical Center, Inc. Mercy Hospital of Franciscan Sisters, Inc. Sartori Memorial Hospital, Inc. Covenant Clinic, an unincorporated division of Covenant Medical Center, Inc. Patients have access to more than 100 primary and specialty care physicians, physician assistants, nurse practitioners, and other health care professionals located throughout Northeast Iowa in 24 locations. Regional Service Lines Covenant Cardiology Covenant Cancer Treatment Center Covenant Clinic Orthopedic Services Covenant Home Health Emergency Services Imaging/Radiology Services Iowa Spine and Brain Institute Midwest Institute of Advanced Laparoscopic Surgery Maternal Child Health Occupational Medicine and Wellness Rehabilitation Services Philanthropic Foundations Covenant Foundation, Inc. Sartori Health Care Foundation, Inc. Other N.E. Iowa Real Estate Investments, Ltd. WHEATON FRANCISCAN HEALTHCARE COMMUNITY IMPACT IN IOWA / 2017 Charity Care: $3,327,650. Charity Care is defined as free or discounted health services provided to those who cannot afford to pay and who meet all criteria for financial assistance. Charity care is based on costs, not charges, and does not include bad debt. Unreimbursed Cost of Public Programs: $11,399,588. Unreimbursed cost of public programs is defined as the shortfall experienced when payments received are below the cost of treating public beneficiaries through Medicaid and other local public programs. Community Health Improvement Services: $2,091,453. Community Health Improvement Services are defined as clinical and non-clinical services designed to improve community health, which are provided to the community for free or for fees that did not cover costs. Financial Contributions: $1,059,105. Financial contributions are defined as contributions, including cash, non-cash items such as food, furniture, equipment, supplies, and loaned staff for volunteer and charitable purposes, made to individuals, community groups, or nonprofit organizations for charitable purposes. Health Professions Education: $3,165,237. Health professions education is defined as direct costs incurred for accredited training and education programs for physicians, nurses, allied health professionals and technicians (does not include ongoing education for staff). Community Building Activities: $24,611. Community building activities are defined as programs that, while not directly related to health care, provide opportunities to address the root causes of health problems, such as poverty, homelessness, and environmental issues. Costs for these activities include cash and in-kind donations. Community Benefit Operations: $19,886. Community benefit operations are defined as costs associated with dedicated staff and community health needs and/or assets assessment, as well as other costs associated with community benefit strategy and operations. Subsidized Health Services: $3,039,136. Subsidized health services are defined as the negative margin for clinical services that are provided despite a financial loss because of an identified community need that would need to be met by the government or another not-for-profit if it was not offered. The financial losses are so significant that negative margins remain after removing the effects of charity care, bad debt, and Medicaid shortfalls. TOTAL BENEFIT TO THE COMMUNITY FOR IOWA 2017: $24,126,666. 29795506 true false false false false false false false false false true false false false true true 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 true true true true false false true X 0 0 0 false false false false false false false false false false X 15 11 false false false false true true true true true false false true true true true true true false false true true X TIMOTHY HUBER 3192727607 3421 WEST NINTH STREET WATERLOO IA 507025499 X Luis Avila MD Director; Physician Employee 1.0 40.0 X 0 501942 54035 David Deaver Vice Chair 1.0 1.0 X X 0 0 0 Jack Dusenbery Director; President 1.0 40.0 X X 0 580880 42654 Noreen Hermansen Director 1.0 1.0 X 0 0 0 Neil McMahon MD Director; Physician Employee 1.0 40.0 X 0 338118 40937 Kenton Nelson Director 1.0 1.0 X 0 0 0 Robert W Petersen Director 1.0 1.0 X 0 0 0 Gregory Schmitz Chair - Director 1.0 1.0 X X 0 0 0 Paul Stapella Director 1.0 1.0 X 0 0 0 Richard Valente MD Director; Physician Employee 1.0 40.0 X 0 999285 52043 Joan Lowe Director 1.0 1.0 X 0 0 0 Shirley Dunlap Director 1.0 1.0 X 0 0 0 Casey McLaughlin Director 1.0 1.0 X 0 0 0 Keyah Levy Director as of 4/18 1.0 1.0 X 0 0 0 Bob Ritz Director, Ex Offici, MHN Pres. 1.0 1.0 X 0 0 0 Nancy Schaefer Asst. Secretary 1.0 40.0 X 0 57970 4622 Timothy Huber Asst. Treasurer; CFO 1.0 40.0 X 0 205960 29717 Jeffrey Halverson VP Physician Networking 1.0 40.0 X 0 289723 50657 James Lehman MD VP Medical Affairs 1.0 40.0 X 0 399151 33028 Michele Panicucci Asst. Treas.; CFO through 4/17 0.0 0.0 X 0 113832 19007 Ryan Meyer Admin Directr; Former Key Empl 1.0 40.0 X 0 138316 32070 0 3625177 358770 0 true true false CONVERGENT REVENUE CYCLE MANAGEMENT PO Box 677688 DALLAS TX 75267 Medical Services 1017974 TRINITY INFORMATION SERVICES 20555 VICTOR PKWY LIVONIA MI 48152 IT SERVICES 5316800 TEKSYSTEMS INC PO BOX 198568 ATLANTA GA 30384 MEDICAL SERVICES 468188 GRAPETREE MEDICAL STAFFING 2501 BOJI BEND DRIVE SUITE 100 MILFORD IA 51351 MEDICAL SERVICES 327795 QUALITY REIMBURSEMENT SERVICES 150 N SANTA ANITA AVE STE 570A ARCADIA CA 91006 MEDICAL SERVICES 315327 5 0 SUPPORT SERVICE TO AFFILIATES 561110 58944820 58944820 58944820 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 HEALTH INFORMATION MANAGEMENT 541512 345998 345998 QUALITY SERVICES 561110 267082 267082 INFORMATION SERVICES 541512 21764 21764 11351 11351 646195 59591015 59591015 0 0 0 0 0 0 0 0 0 0 0 0 125000 62500 62500 0 0 0 2003147 1001572 1001575 654302 327151 327151 3331154 1665577 1665577 0 0 183982 91991 91991 30940 15470 15470 0 5784 2892 2892 997638 498819 498819 0 3761584 1880792 1880792 0 SALARY ALLOCATION 15269460 7634730 7634730 CORPORATE SERVICES ALLOCATION 22356952 11178476 11178476 DUES & SUBSCRIPTIONS 135986 67993 67993 PURCHASED SERVICES 10575458 5287729 5287729 159628 79814 79814 59591015 29795506 29795509 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 38762321 4172396 17723321 34589925 0 0 0 0 0 0 0 0 0 0 17723321 34589925 3306927 13884768 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25263159 3306927 39147927 X 14416394 -4558002 0 0 0 0 14416394 -4558002 17723321 34589925 X 0 -18974396 X false true X true false X X 3 COVENANT MEDICAL CENTER INC 421264647 3 false 48966767 0 MERCY HOSPITAL OF FRANCISCAN SISTERS INC 421178403 3 false 2811319 0 SARTORI MEMORIAL HOSPITAL INC 420758901 3 false 7626043 0 3 59404129 false false false false false true false false false false false false false false false true true true X true true Sch A Supplemental Information Part IV Section A Line 1: Our supported organizations are not normally listed by name in the governing documents. Wheaton Franciscan Healthcare - Iowa, Inc. is a Tier II parent organization, and due to long-standing historical relationships as well as relationships that are officially delineated in our organizational chart, supports all organizations at the Tier III level that are not themselves supporting organizations. Wheaton Franciscan Healthcare - Iowa, Inc. provides this support by way of corporate oversight and related administrative and program services such as Payroll, Human Resources, Legal Services, and many others, which result in monetary equity transfers and intercompany journal entries that provide "support". Part IV Section A Line 6: Wheaton Franciscan Healthcare - Iowa, Inc. is a Tier II parent organization that is part of a controlled group of healthcare provider organizations. As such, it is common to have intercompany journal entries that result in support being provided to other supporting organizations within the group that may provide additional support to one or more of the same supported organization. Part IV Section D Line 3: All supported organizations and their respective boards, investment committees, and investment managers, have sole discretion on all investment policies and decisions as they relate to the group of controlled healthcare organizations under the parent organization, Wheaton Franciscan Healthcare - Iowa, Inc. Part IV Section E Lines 3a-3b: Wheaton Franciscan Healthcare - Iowa, Inc. and its supported organizations have several members of its governing bodies that serve on common boards. These members hold reserved powers that include, but are not limited to, the election of members of the governing body and election of officers, approval of certain financial expenditures in accordance with policies, and approval of budgets and strategic plans. These approvals are based on recommendations from the governing body. 81705 3961 77744 0 38663279 4166745 34496534 17337 1689 15647 34589925 0 LOAN PRINCIPAL 25263159 25263159 IRS Form 990 Schedule D, Part X The Company follows the provisions of ASC Subtopic 740-10, Income Taxes - Overall. ASC Subtopic 740-10 clarifies the accounting for uncertainty in tax positions and also provides guidance on when the tax positions are recognized in an entity's financial statements and how the values of these positions are determined. As of June 30, 2018, the Company did not have a liability for unrecognized tax benefits. false false false false false false false false false Luis Avila MD Director; Physician Employee 501083 0 859 16200 37835 555977 0 Jack Dusenbery Director; President 439742 128910 12228 16200 26454 623534 0 Jeffrey Halverson VP Physician Networking 226633 49532 13558 20250 30407 340380 0 James Lehman MD VP Medical Affairs 336455 57133 5563 12150 20878 432179 0 Neil McMahon MD Director; Physician Employee 335186 0 2932 16200 24737 379055 0 Ryan Meyer Admin Directr; Former Key Empl 137589 0 727 6150 25920 170386 0 Michele Panicucci Asst. Treas.; CFO through 4/17 75292 0 38540 5190 13817 132839 0 Richard Valente MD Director; Physician Employee 991308 0 7977 12150 39893 1051328 0 Timothy Huber Asst. Treasurer; CFO 205380 0 580 15589 14128 235677 0 Schedule O Disclosures IRS Form 990 Part V Line 1a and Part VII Section B Line 1-2 Wheaton Iowa streamlined their reporting of IRS Forms 1099-MISC so that most 1099-MISC are now reported using the FEIN number of the parent organization or of a related organization. The actual expense continues to be either paid by, or transferred to, the individual entity, which is normally a subsidiary or related organization to the organization(s) issuing the 1099. For this reason, the reader may notice on some 990's that there are top 5 independent contractors reported, but no 1099s are reported. Likewise on the 990's of the organization(s) reporting number of 1099's, there may be a disproportionate share of 1099's reported as compared with the actual expenses of the organization. IRS Form 990 Part VI Section A Lines 6-7b Wheaton Franciscan Healthcare Iowa, Inc. had two members, a Corporate Member and a Managing Member; both of which hold several reserved powers over Wheaton Franciscan Healthcare Iowa, Inc. These reserved powers include, but are not limited to, the election of members of the governing body and election of officers, approval of certain financial expenditures in accordance with policy, and approval of budgets and strategic plans; these approvals are based on recommendations from the governing body. IRS Form 990 Part VI Section B Line 11A and 11B Affiliates of Wheaton Iowa during the fiscal year ending June 30, 2018 used a multiple-level review process on all IRS Forms 990 to ensure accurate and timely filing for all organizations. Under the direction of the Chief Financial Officer, the Accounting Department prepares Forms 990 and any applicable 990-T and associated state filings. When complete, the return is first reviewed by a Senior-Level (or higher) associate in the Finance Department, who focuses on income statement and balance sheet items, and schedules where transactions of this type might be reported. If discrepancies are found, the item will be corrected prior to the next step in the review process. Once cleared through Finance, the return is provided to the Tax Department of the Wheaton Iowa sponsor organization, where the Tax Director concentrates primarily on consistency of reporting between all returns, accuracy of tax related information, and narrative explanation of any outliers. Again, any problems or questions are investigated and corrected. Depending on the level of complexity of the year in question, as well as the individual issues specific to that filing, certain returns may be selected for outside review by a public accounting firm. This decision will vary from year to year based on many factors, and sometimes outside review is not utilized at all. Also, certain schedules, such as Schedule H or Schedule J may be reviewed by committees, such as the Community Benefit Team or the Compensation Committee in selected years. The board has also asked for formal presentations on various 990 topics over the years. This decision will vary from year to year, again based on many factors. Once all levels of review have been completed, a designated finance and accounting employee will schedule an appointment with the signer of the 990. The signer, the Vice President-Finance and CFO, will perform an additional, normally high level review, prior to signing the return. Once signed, the return is cleared to provide to members of the Board of Directors, who at a later date but prior to efiling, are provided access to all 990s throughout their assigned region. IRS Form 990 Part VI Section B Line 12A - 12C Wheaton Franciscan Healthcare-Iowa, Inc. has adopted a Conflict of Interest policy which applies to all "interested persons" of Wheaton Franciscan Healthcare-Iowa, Inc. including directors, principal officers, key employees, and members of committees with board-delegated powers. Interested persons are expected to discharge their duties in a manner the person reasonably believes to be in the best interests of Wheaton Franciscan Healthcare-Iowa, Inc. and to avoid situations involving a conflict of interest. On an annual basis, interested persons are required to complete a conflict of interest disclosure statement and to affirm their receipt of the conflict of interest policy, compliance with its requirements, and agree to notify the organization of changes impacting their annual disclosure in accordance with the policy. The annual disclosures are provided to internal legal counsel and the integrity and compliance officer, from which legal counsel prepares a report for the board chair and CEO. A summary of potential conflicts is reviewed with the board of directors of Wheaton Franciscan Healthcare-Iowa, Inc. (or a delegated committee of the board) on a yearly basis. Interested persons are required to make full disclosure to Wheaton Franciscan Healthcare-Iowa, Inc. of any financial or business interests that might result in or have the appearance of a conflict of interest. The board of directors of Wheaton Franciscan Healthcare-Iowa, Inc. (or a delegated committee of the board) is responsible for the review of transactions to determine whether an actual conflict of interest exists. In the event of an actual conflict, the board (or a delegated committee of the board) will either avoid the conflict or appropriately scrutinize the transaction to ensure it is in the best interests of Wheaton Franciscan Healthcare-Iowa, Inc. Interested persons are required to recuse themselves from discussion and voting on matters involving a conflict of interest. The policy further addresses the proper documentation of the proceedings and potential disciplinary and corrective action for violations of the policy. The policy is available to the public upon request. IRS Form 990 Part VI Section B Line 15a Question 15a is answered "No" because the compensation for the CEO of Wheaton Franciscan Healthcare-Iowa, Inc. is established and paid by a related entity, Covenant Medical Center, Inc. In establishing CEO compensation, Covenant Medical Center, Inc. follows a process which includes the following: Use of an independent compensation consultant and compensation study, use of a written employment contract, and review and approval by the Mercy Health Network board of directors. This process is performed annually. IRS Form 990 Part VI Section B Line 15b Question 15b is answered "No" because the compensation for the other officers and key employees of Wheaton Franciscan Healthcare-Iowa, Inc. is established and paid by a related entity, Covenant Medical Center, Inc. In establishing other officer and key employee compensation, Covenant Medical Center, Inc. follows a process which includes the following: Use of an independent compensation consultant and compensation study, use of a written employment contract, and review and approval by the Covenant Medical Center, Inc. and Wheaton Franciscan Healthcare - Iowa, Inc. CEO, authorized to act on behalf of the board with respect to certain compensation matters. This process is performed annually. IRS Form 990 Part VI Section B Lines 16A-16B Wheaton Franciscan Healthcare-Iowa, Inc. participated in one or more joint ventures in furtherance of its exempt activities. Wheaton Iowa has several policies that govern entering into joint venture relationships and all governing documents of such joint ventures do include one or more safeguards to protect the tax-exempt status of Wheaton Franciscan Healthcare-Iowa, Inc. IRS Form 990 Part VI Section C Line 19 Affliates of Wheaton Iowa, during the fiscal year ending June 30, 2018, made available, upon request, certain documents including our financial statements, conflict of interest policy, and governing documents that support our tax exempt status, including, but not limited to, articles of incorporation and bylaws. IRS Form 990 Part VII Column B Affiliates of Wheaton Iowa, during the fiscal year ending June 30, 2018, operated as a controlled group of related healthcare organizations. As such, many employees who are at the Director level or above, or who are Officers and/or Directors of organizations where Wheaton has common boards and other overlaps in committee representations, spend significant time devoted to tasks not only for the filing organization, but also for related organizations. While there is no official time study tracking that is done, it is estimated that for each employee, tasks devoted to related organizations could approximate up to 80% or more of total hours. Schedule O Disclosures Continued IRS Form 990 Part IX Line 11g The majority of these other fees for services include collection expenses and physician recruitment fees. IRS Form 990 Part XI Line 9 Certain related organizations utilize receivable/payable accounts throughout the year. These intercompany balances are settled through the equity account at the end of each fiscal year to bring the receivable/payable balances to zero. For the fiscal year ended June 30, 2018 this resulted in a decrease in net assets or fund balances of $18,974,396. Cedar Valley Comm Hlthcr-Wheaton IA LLC 3421 West Ninth Street Waterloo IA 50702 264634545 Healthcare IA -14949 WFH-IOWA INC Covenant Foundation Inc 3421 WEST NINTH STREET WATERLOO IA 50702 421295784 FOUNDATION IA 501(c)(3) 10 COV MED CTR true Covenant Medical Center Inc 3421 WEST NINTH STREET WATERLOO IA 50702 421264647 HOSPITAL IA 501(c)(3) 3 WFH-IOWA true Mercy Hospital of Fran Sisters Inc 3421 WEST NINTH STREET WATERLOO IA 50702 421178403 HOSPITAL IA 501(c)(3) 3 WFH-IOWA true NE Iowa Real Estate Invsts 3421 WEST NINTH STREET WATERLOO IA 50702 421207432 HOLDING CO IA 501(c)(2) N/A WFH-IOWA true Sartori Health Care Foundation Inc 3421 WEST NINTH STREET WATERLOO IA 50702 421240996 FOUNDATION IA 501(c)(3) 12 - I SARTORI HOSP true Sartori Memorial Hospital Inc 515 COLLEGE STREET CEDAR FALLS IA 50613 420758901 HOSPITAL IA 501(c)(3) 3 WFH-IOWA true Mercy Health Network 1111 6th Avenue Des Moines IA 50314 421478417 PARENT DE 501(C)(3) 12 - III-FI NA true false false false false false false false false false false true false false false false false false false Covenant Medical Center Inc L 48966767 Book value Covenant Foundation Inc L 23104 Book value Sartori Memorial Hospital Inc L 7626043 Book value Sartori Health Care Foundation Inc L 9819 Book value Mercy Hospital of Franciscan Sisters Inc L 2811319 Book value