2019-05-14T09:04:24-05:00 2018-06-30 WithumSmithBrown PC 200 Jefferson Park Suite 400 Whippany NJ 079811070 990 2017-07-01 232328297 SACRED HEART HEALTHCARE SYSTEM % THOMAS P LICHTENWALNER SACR 6107764500 421 W CHEW STREET ALLENTOWN PA 181023406 THOMAS P LICHTENWALNER SVP FINANCE/CFO 4845264000 2019-05-09 true SCOTT J MARIANI P00642486 9738989494 148.77.36.74 22006220191345000047 2019-05-14 P 3EAB307D2E8AFAB6AF4FCC2E4D32CBEA4C05B2A0 B4F49B62ABB70139397F9A781BA9C9E9BE652F2C 2017 2019-02-21 02:37:17Z JOHN L NESPOLI 421 W CHEW STREET ALLENTOWN PA 181023406 17156829 false X WWW.SHH.ORG X 1984 PA TO PROMOTE THE HEALTH, CHARITABLE AND EDUCATIONAL PURPOSES OF ST. LUKE'S HEALTH NETWORK, INC., SACRED HEART HOSPITAL OF ALLENTOWN AND OTHER AFFILIATES OF THE NETWORK. 2 0 187 0 0 0 0 0 20201034 16523021 689660 591352 2314071 42456 23204765 17156829 0 0 0 0 22648227 18682053 0 0 0 10140945 7879728 32789172 26561781 -9584407 -9404952 6794414 8093468 8056218 9141344 -1261804 -1047876 X TO PROMOTE THE HEALTH, CHARITABLE AND EDUCATIONAL PURPOSES OF ST. LUKE'S HEALTH NETWORK, INC. (THE "NETWORK"), SACRED HEART HOSPITAL OF ALLENTOWN AND OTHER AFFILIATES OF THE NETWORK. false false 23905605 0 16523021 EXPENSES INCURRED IN TO PROMOTING THE HEALTH, CHARITABLE AND EDUCATIONAL PURPOSES OF ST. LUKE'S HEALTH NETWORK, INC. (THE "NETWORK"), SACRED HEART HOSPITAL OF ALLENTOWN AND OTHER AFFILIATES OF THE NETWORK. 23905605 true false false false false false false false false false true false true 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 false false false true 18 0 true 187 true false false false false false false false false false false X 2 0 false true true false true true true true true false false true true true true true true true true false PA X THOMAS P LICHTENWALNER 4845264000 801 OSTRUM STREET BETHLEHEM PA 18015 X THOMAS P LICHTENWALNER TRUSTEE - SVP FINANCE & CFO 55.0 0.0 X X 0 0 0 ROBERT L WAX ESQ TRUSTEE 55.0 0.0 X 0 0 0 PAUL HUCK CHAIR - TRST (7/1/17 - 3/1/18) 1.0 0.0 X X 0 0 0 THOMAS J SCALICI 1ST VC - TRST(7/1/17 - 3/1/18) 1.0 0.0 X X 0 0 0 JOSEPH FITZPATRICK 2ND VC - TRST(7/1/17 - 3/1/18) 1.0 0.0 X X 0 0 0 GEORGE CHOVANES MD TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 NELSON DIAZ TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 MIRIAM HUERTAS TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 REV THOMAS J KULLER SJ TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 JAMES KUSKO TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 JOHN L NESPOLI TRST(7/1/17 - 3/1/18) PRES/CEO 55.0 0.0 X X 0 960085 274976 JAMES M SEITZINGER TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 PAUL J SMITH JR TRUSTEE (7/1/17 - 3/1/18) 1.0 0.0 X 0 0 0 STEPHEN A LANSHE ESQ SEC-VP GEN CNSL(7/1/17-4/2/18) 55.0 0.0 X 0 319782 30913 DANIEL C CONFALONE TREAS - CFO (7/1/17 - 11/1/17) 55.0 0.0 X 0 475763 25086 ANGELA LONG VP CHIEF NURSING OFFICER 55.0 0.0 X 0 209271 16029 JOHN HRUBENAK VP OPERATIONS & BUS. DEV. 55.0 0.0 X 0 169112 29613 FARROKH SADR MD VPMA 55.0 0.0 X 0 145680 24066 KATHLEEN SEITZIGER VP BEHAVIORAL HEALTH 55.0 0.0 X 0 127635 1949 GREGORY THOMPSON MD PHYSICIAN 55.0 0.0 X 519093 0 31843 TAMAM HABIB MD PHYSICIAN 55.0 0.0 X 445567 0 29343 VENKATA KANTHIMATHINATHAN MD PHYSICIAN 55.0 0.0 X 432799 0 26209 JOANN LEAHY MD PHYSICIAN 55.0 0.0 X 415053 0 16220 KSHITIJ PATEL MD PHYSICIAN 55.0 0.0 X 372959 0 28842 2185471 2407328 535089 48 false true false CERNER HEALTH SERVICES INC PO BOX 959167 ST LOUIS MO 631959167 IT 1326578 QUALITY SYSTEMS INC PO BOX 809390 CHICAGO IL 606809390 MEDICAL BILLING 727400 2 X 0 NET PATIENT SERVICE REVENUE 541900 9237881 9237881 OTHER HEALTHCARE RELATED REVENUE 541900 3754306 3754306 MANAGEMENT FEE REVENUE 541900 3530834 3530834 16523021 591352 591352 0 0 42456 42456 0 42456 42456 0 0 0 0 0 0 0 0 0 0 0 17156829 16523021 633808 0 0 0 0 0 0 16187298 14568568 1618730 143834 129451 14383 1447111 1302400 144711 903810 813429 90381 877592 789833 87759 5354 4819 535 0 0 0 0 2282361 2054125 228236 0 12170 10953 1217 170672 153605 17067 70140 63126 7014 0 967611 870850 96761 4904 4414 490 0 67843 61059 6784 1339 1205 134 0 149599 134639 14960 650955 585860 65095 MEDICAL SUPPLIES 225393 202854 22539 0 REPAIRS & MAINTENANCE 162748 146473 16275 0 DUES & SUBSCRIPTIONS 78717 70845 7872 0 OTHER EXPENSES 2152330 1937097 215233 0 26561781 23905605 2656176 0 X 1993 499 142584 1633384 0 0 1610780 268104 0 0 0 0 0 0 99650 73357 223291 107517 3560334 3299826 637437 260508 0 0 0 0 3065030 3119094 425275 0 588374 2631005 6794414 8093468 4040022 2691086 0 0 0 0 0 0 0 0 0 0 1575758 0 0 0 2440438 6450258 8056218 9141344 X -1261804 -1047876 0 0 0 0 -1261804 -1047876 6794414 8093468 X -9404952 9618880 X X false true X true false X X X 1 SACRED HEART HOSPITAL OF ALLENTOWN 231352208 3 true 0 0 1 0 0 true false false false false false false false false false false false false false false true true true X true true SCHEDULE A, PART VI, SECTION D; QUESTION 3 TOP MANAGEMENT OFFICIALS (CEO AND CFO) OF THE SACRED HEART HOSPITAL OF ALLENTOWN ("SHH") ARE ALSO THE TOP MANAGEMENT OFFICIALS OF SACRED HEART HEALTHCARE SYSTEM ("SHHS"). AS SUCH, THE SHH HAS A SIGNIFICANT VOICE IN THE SHHS'S INVESTMENT POLICIES AND IN DIRECTING THE USE OF THE SHHS'S INCOME AND ASSETS AT ALL TIMES DURING THE YEAR. SCHEDULE A, PART IV, SECTION E; QUESTION 3A SHHS WAS THE PARENT AND SOLE MEMBER OF SHH PRIOR TO THE AFFILIATION WITH ST. LUKE'S UNIVERSITY HEALTH NETWORK ON MARCH 1, 2018. AS THE SOLE MEMBER, SHHS HAD THE RIGHT TO ELECT THE MEMBERS OF THE SHH'S BOARD OF DIRECTORS AND HAD CERTAIN RESERVED POWERS AS DEFINED IN THE SHH'S BYLAWS. SCHEDULE A, PART IV, SECTION E; QUESTION 3B AS THE PRIOR PARENT ORGANIZATION AND WITH THE COMMON MEMBERS OF MANAGEMENT, SHHS EXERCISED A SUBSTANTIAL DEGREE OF DIRECTION OVER THE POLICIES, PROGRAMS, AND ACTIVITIES OF SHH. SHHS HAD THE RIGHT TO ELECT THE MEMBERS OF THE SHH'S BOARD OF DIRECTORS AND HAD CERTAIN RESERVED POWERS AS DEFINED IN THE SHH'S BYLAWS. 10000 10000 530000 530000 0 1023947 914682 109265 1996387 1855144 141243 260508 ASSISTED LIVING 3109094 F PHARMACY 10000 F 3119094 DUE FROM AFFILIATES 2532975 OTHER RECEIVABLES 98030 2631005 0 DUE TO AFFILIATES 6447243 OTHER LIABILITIES 3015 6450258 X X X false true false false false false false true false JOHN L NESPOLI TRST(7/1/17 - 3/1/18) PRES/CEO 0 417276 0 28331 0 514478 0 255400 0 19576 0 1235061 0 500000 STEPHEN A LANSHE ESQ SEC-VP GEN CNSL(7/1/17-4/2/18) 0 300158 0 18850 0 774 0 5400 0 25513 0 350695 0 0 DANIEL C CONFALONE TREAS - CFO (7/1/17 - 11/1/17) 0 276929 0 17593 0 181241 0 0 0 25086 0 500849 0 0 ANGELA LONG VP CHIEF NURSING OFFICER 0 197433 0 11424 0 414 0 4080 0 11949 0 225300 0 0 JOHN HRUBENAK VP OPERATIONS & BUS. DEV. 0 159165 0 9173 0 774 0 5400 0 24213 0 198725 0 0 FARROKH SADR MD VPMA 0 145680 0 0 0 0 0 4500 0 19566 0 169746 0 0 GREGORY THOMPSON MD PHYSICIAN 417955 0 101000 0 138 0 5400 0 26443 0 550936 0 0 0 TAMAM HABIB MD PHYSICIAN 445477 0 0 0 90 0 5400 0 23943 0 474910 0 0 0 VENKATA KANTHIMATHINATHAN MD PHYSICIAN 349634 0 83105 0 60 0 5400 0 20809 0 459008 0 0 0 JOANN LEAHY MD PHYSICIAN 414291 0 0 0 762 0 5400 0 10820 0 431273 0 0 0 KSHITIJ PATEL MD PHYSICIAN 372869 0 0 0 90 0 5400 0 23442 0 401801 0 0 0 PART VII AND SCHEDULE J TAXABLE COMPENSATION REPORTED HEREIN IS DERIVED FROM 2017 FORMS W-2. SCHEDULE J, PART I; QUESTION 4B THE AMOUNT REFLECTED IN SCHEDULE J, PART II, COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS INCLUDES CURRENT YEAR VESTINGS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) AS THE AMOUNTS WERE NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THE AMOUNTS OUTLINED HEREIN WERE INCLUDED IN EACH INDIVIDUAL'S 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOHN L. NESPOLI, $500,000 AND DANIEL C. CONFALONE, $180,000. THE DEFERRED COMPENSATION AMOUNT IN SCHEDULE J, PART II, COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN HIS 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOHN L. NESPOLI, $250,000. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2017 WHICH AMOUNTS WERE INCLUDED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. SCHEDULE J, PART II; COLUMN F THE AMOUNT REPORTED IN SCHEDULE J, PART II, COLUMN F FOR THE FOLLOWING INDIVIDUAL INCLUDES VESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) BECAUSE THIS AMOUNT WAS NO LONGER SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. THIS AMOUNT WAS REPORTED IN SCHEDULE J, PART II, COLUMN C AS RETIREMENT AND OTHER DEFERRED COMPENSATION ON PRIOR YEARS FORMS 990. THIS AMOUNT WAS TREATED AS TAXABLE INCOME AND REPORTED ON HIS 2017 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOHN L. NESPOLI, $500,000. CORE FORM, PART I, LINES 3 & 4 & PART VI, SECTION A; Q'S 1A & 1B THIS ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. AS REFLECTED ON CORE FORM, PART I, LINES 3 AND 4 AND ALSO IN PART VI, LINES 1A AND 1B, THERE ARE A TOTAL OF TWO VOTING MEMBERS ON THE BOARD OF TRUSTEES. AT YEAR END, OF THESE TWO VOTING MEMBERS, NONE ARE INDEPENDENT DUE TO THE FACT THAT THEY ARE EMPLOYED BY AN AFFILIATE. ALTHOUGH THIS FEDERAL FORM 990 SHOWS NO INDEPENDENT BOARD OF TRUSTEES UNDER THE INTERNAL REVENUE SERVICE RULES AND REGULATIONS; THIS ORGANIZATION ACTS IN A CHARITABLE TAX-EXEMPT MANNER FOR PURPOSES OF INTERNAL REVENUE CODE SECTION 501(C)(3) AND IS CONTROLLED BY ST. LUKE'S HEALTH NETWORK, INC.; AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION, WHICH IS GOVERNED BY A BOARD OF DIRECTORS, A MAJORITY OF WHICH ARE COMPRISED OF INDEPENDENT VOTING MEMBERS. CORE FORM, PART VI, QUESTION 3; PART VII AND SCHEDULE J THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKES UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELVERY NETWORK. ST. LUKES HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THIS ORGANIZATION OUTSOURCED ALL OF ITS FINANCE FUNCTIONS INCLUDING BUT NOT LIMITED TO, ACCOUNTING, FINANCE, PAYROLL, ACCOUNTS PAYABLE AND TAX, TO ST. LUKES HEALTH NETWORK, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. THOMAS P. LICHTENWALNER IS THE SENIOR VICE PRESIDENT OF FINANCE/CHIEF FINANCIAL OFFICER OF THE NETWORK. MR. LICHTENWALNER RECEIVES A FEDERAL FORM W-2 FROM ST. LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. MR. LICHTENWALNERS REPORTABLE COMPENSATION, RETIREMENT/OTHER DEFERRED COMPENSATION AND NON-TAXABLE BENEFITS ARE REPORTED WITHIN CORE FORM, PART VII AND SCHEDULE J OF THE ST. LUKES HEALTH NETWORK, INC. (EIN: 23-2384282) FEDERAL FORM 990. PLEASE REFER TO THE ST. LUKES HEALTH NETWORK, INC. FORM 990 FOR THIS INFORMATION. CORE FORM, PART VI, SECTION A; QUESTION 4 ON SEPTEMBER 15, 2017 ST. LUKE'S UNIVERSITY HEALTH NEWTWORK ("NETWORK") ENTERED INTO A DEFINITIVE AGREEMENT (THE "AFFILIATION AGREEMENT") WITH SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"), SACRED HEART HOSPITAL OF ALLENTOWN ("SHH"), SH REALTY CORPORATION ("SHRC"). SACRED HEART ANCILLARY SERVICES, INC. ("SHAS"), QUALITY PATIENT CARE, LLC ("QPC"), AND SACRED HEART FOUNDATION ("SHF"). ON MARCH 1, 2018, SUBSEQUENT TO THE SATISFACTION OF ALL CONDITIONS PRECEDENT, THE AFFILIATION WAS COMPLETED AND CONSUMMATED. ACCORDINGLY, PURSUANT TO THE TERMS OF THE AFFILIATION AGREEMENT: (I) THE NETWORKS PARENT ENTITY, ST. LUKE'S HEALTH NETWORK, INC. ("SLHN") BECAME THE SOLE MEMBER OF SHHS AND SHH; (II) SHH IS THE SOLE MEMBER OF EACH OF SHRC, SHF AND QPC; AND (III) SHH IS THE SOLE STOCKHOLDER OF SHAS. SHHS, SHH AND SHF ARE PENNSYLVANIA NONPROFIT CORPORATIONS AND ORGANIZATIONS DESCRIBED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AS AMENDED (THE "CODE"). SHRC IS A PENNSYLVANIA NONPROFIT CORPORATION AND ORGANIZATION DESCRIBED UNDER SECTION 501(C)(2) OF THE CODE. QPC IS A PENNSYLVANIA FOR PROFIT LIMITED LIABILITY CORPORATION AND SHAS IS A PENNSYLVANIA FOR PROFIT CORPORATION. ACCORDINGLY, THIS ORGANIZATIONS ARTICLES OF INCORPORATION AND BYLAWS WERE AMENDED AND RESTATED TO REFLECT SLHN AS ITS SOLE MEMBER. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 ST. LUKES HEALTH NETWORK, INC. ("SLHN") IS THE SOLE MEMBER OF THIS ORGANIZATION. SLHN HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). IN ADDITION, THE ST. LUKE'S UNIVERSITY HEALTH NETWORK FINANCE COMMITTEE WAS UPDATED AS TO THIS ORGANIZATION'S CURRENT YEAR FORM 990 PRIOR TO FILING. ST. LUKE'S HEALTH NETWORK, INC. BOARD OF DIRECTORS HAS DELEGATED TO THE FINANCE COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE NETWORK. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CERTIFIED PUBLIC ACCOUNTING ("CPA") FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE NETWORK'S FINANCE PERSONNEL, INCLUDING ITS SENIOR VICE PRESIDENT OF FINANCE, VICE PRESIDENT OF FINANCE, DIRECTOR OF ACCOUNTING AND VARIOUS OTHER NETWORK INDIVIDUALS ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE NETWORK'S INTERNAL WORKING GROUP FOR THEIR REVIEW. THE NETWORK'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE NETWORK'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE ST. LUKE'S HEALTH NETWORK, INC. FINANCE COMMITTEE. THEREAFTER, THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. THE NETWORK HAS A WRITTEN CONFLICT OF INTEREST POLICY AND REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH THAT POLICY. THE POLICY REQUIRES THAT A CONFLICT OF INTEREST DISCLOSURE FORM CONSISTENT WITH BEST GOVERNANCE PRACTICES AND INTERNAL REVENUE SERVICE GUIDELINES BE CIRCULATED TO OFFICERS, DIRECTORS, BOARD COMMITTEE MEMBERS AND SENIOR MANAGERS ANNUALLY. THE NETWORK'S COMPLIANCE DEPARTMENT, INCLUDING ITS CORPORATE COMPLIANCE OFFICER AND SENIOR VICE PRESIDENT/GENERAL COUNSEL, ASSUME RESPONSIBILITY FOR THE COMPLETION OF THE CONFLICT OF INTEREST QUESTIONNAIRES AND ENFORCEMENT WITH THE POLICY. IF A DIRECTOR DISCLOSES AN INTEREST THAT COULD GIVE RISE TO A CONFLICT, THE DIRECTOR'S POTENTIAL CONFLICT MAY BE DISCLOSED TO THE ORGANIZATION'S GOVERNING BODY, WHICH EVALUATES THE CONFLICT AND ITS POTENTIAL IMPACT ON THE DIRECTOR'S PARTICIPATION ON THE BOARD. AFTER CONSULTATION AND DISCUSSION THE BOARD OF DIRECTORS MAY TAKE ACTION, IF APPROPRIATE AND NECESSARY, TO ADDRESS ANY SUCH CONFLICT IN A MANNER CONSISTENT WITH THE NETWORK'S CONFLICT OF INTEREST POLICY. CORE FORM, PART VI, SECTION B; QUESTION 15 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. ON AN ANNUAL BASIS THE HUMAN RESOURCES DEPARTMENT OF THE ORGANIZATION PROVIDES THE BOARD WITH COMPENSATION MARKET DATA TO REVIEW AND CONSIDER WITH RESPECT TO ALL KEY EMPLOYEES AND OFFICERS OF THE ORGANIZATION. THE BOARD REVIEWS THE MARKET DATA, APPROVES ANY SALARY ADJUSTMENTS FOR THE EXECUTIVE POPULATION, CONSIDERS BOTH REASONABLENESS AND EFFECTIVENESS OF ALL REMUNERATIVE PROGRAMS AND ESTABLISHES THE DETAILED PERFORMANCE EXPECTATIONS WHICH ARE INCORPORATED INTO THE ORGANIZATION'S INCENTIVE PLANS. ALL OF THESE DISCUSSIONS ARE DOCUMENTED THROUGH THE PROVISION OF MEETING MINUTES. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA. CORE FORM, PART VII AND SCHEDULE J CORE FORM, PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION OR A RELATED ORGANIZATION AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF DIRECTORS. CORE FORM, PART VII AND SCHEDULE J THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKES UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKES HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. ROBERT L. WAX, ESQ. IS A VOTING MEMBER OF THIS ORGANIZATIONS BOARD OF TRUSTEES AND IS NOT COMPENSATED FOR SERVING AS A VOTING MEMBER OF THE BOARD OF TRUSTEES. MR. WAX IS THE SENIOR VICE PRESIDENT/GENERAL COUNSEL OF THE NETWORK AND RECEIVES A FEDERAL FORM W-2 FROM ST. LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA, A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. MR. WAXS REPORTABLE COMPENSATION, RETIREMENT/OTHER DEFERRED COMPENSATION AND NON-TAXABLE BENEFITS ARE REPORTED WITHIN CORE FORM, PART VII AND SCHEDULE J OF THE ST. LUKES HEALTH NETWORK, INC. (EIN: 23-2384282) FEDERAL FORM 990. PLEASE REFER TO THE ST. LUKES HEALTH NETWORK, INC. FORM 990 FOR THIS INFORMATION. CORE FORM, PART VII AND SCHEDULE J STEPHEN A. LANSHE, ESQ., SECRETARY/VICE PRESIDENT GENERAL COUNSEL OF THE ORGANIZATION FOR THE PERIOD OF 7/1/2017 TO 4/2/2018, IS STILL EMPLOYED WITHIN THE ST. LUKES UNIVERSITY HEALTH NETWORK AS THE ASSOCIATE GENERAL COUNSEL OF ST. LUKES HEALTH NETWORK, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. DANIEL C. CONFALONE, TREASURER/CHIEF FINANCIAL OFFICER OF THE ORGANIZATION FOR THE PERIOD OF 7/1/2017 TO 11/1/2017, IS STILL EMPLOYED WITHIN THE ST. LUKES UNIVERSITY HEALTH NETWORK AS THE NETWORK VICE PRESIDENT OF FINANCE OF ST. LUKES HEALTH NETWORK, INC.; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. THE NETWORK INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF DIRECTOR MEMBERS AND OFFICERS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE NETWORK. THE HOURS SHOWN ON THIS FORM 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENTS THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF DIRECTORS OF OTHER RELATED ORGANIZATIONS WITHIN THE NETWORK, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY THE SAME AS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990. THE HOURS REFLECTED ON CORE FORM, PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE NETWORK; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES INCLUDE: - TRANSFER FROM SACRED HEART HOSPITAL; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $2,201,917; - TRANSFER OF INVESTMENT IN QUALITY PATIENT CARE, LLC; A SINGLE MEMBER LIMITED LIABILITY COMPANY TO SACRED HEART HOSPITAL; A RELATED INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION - $3,407,373; AND - ADJUSTMENT IN NET ASSETS DUE TO AFFILIATION WITH ST. LUKE'S UNIVERSITY HEALTH NETWORK - $4,009,590. CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE NETWORK AND ITS CONTROLLED AFFILIATES FOR THE YEARS ENDED JUNE 30, 2018 AND JUNE 30, 2017; RESPECTIVELY, AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CONSOLIDATING SCHEDULES BY ENTITY. AN UNMODIFIED OPINION WAS ISSUED EACH YEAR BY THE INDEPENDENT CPA FIRM. THE NETWORK'S FINANCE COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE NETWORK'S CONSOLIDATED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. ST LUKE'S HEALTH NETWORK INC 801 OSTRUM STREET BETHLEHEM PA 18015 232384282 HEALTH SVCS. PA 501(C)(3) 509(A)(3) NA false ST LUKE'S HOSPITAL OF BETHLEHEM PA 801 OSTRUM STREET BETHLEHEM PA 18015 231352213 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false ST LUKE'S HOSPITAL ANDERSON CAMPUS 801 OSTRUM STREET BETHLEHEM PA 18015 454394739 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false ST LUKE'S HOSPITAL MONROE CAMPUS 801 OSTRUM STREET BETHLEHEM PA 18015 465143606 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false ST LUKE'S QUAKERTOWN HOSPITAL 801 OSTRUM STREET BETHLEHEM PA 18015 231352203 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false CARBON-SCHUYLKILL COMMUNITY HOSPITAL 801 OSTRUM STREET BETHLEHEM PA 18015 251550350 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false ST LUKE'S PHYSICIAN GROUP INC 801 OSTRUM STREET BETHLEHEM PA 18015 232380812 HEALTH SVCS. PA 501(C)(3) 509(A)(3) SLHN false ST LUKE'S EMERGENCY & TRANSPORT SVCS 801 OSTRUM STREET BETHLEHEM PA 18015 232179542 HEALTH SVCS. PA 501(C)(3) 170B1AIII SLHN false QUAKERTOWN REHABILITATION CENTER 801 OSTRUM STREET BETHLEHEM PA 18015 232543924 INACTIVE PA 501(C)(3) 170B1AIII SLHN false HOMESTAR MEDICAL EQUIP & INFUSION SVCS 801 OSTRUM STREET BETHLEHEM PA 18015 232418254 INACTIVE PA 501(C)(3) 509(A)(2) VNA false VNA OF ST LUKE'S - HOME HEALTH HOSPICE 801 OSTRUM STREET BETHLEHEM PA 18015 240795497 HEALTH SVCS. PA 501(C)(3) 509(A)(1) SLB false ST LUKE'S WARREN HOSPITAL INC 185 ROSEBERRY STREET PHILLIPSBURG NJ 08865 221494454 HEALTH SVCS. NJ 501(C)(3) HOSPITAL SLHN false BLUE MOUNTAIN HOSPITAL INC 211 NORTH 12TH STREET LEHIGHTON PA 18235 240795436 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false CMS MEDICAL CARE CORPORATION 211 NORTH 12TH STREET LEHIGHTON PA 18235 232473899 HEALTH SVCS. PA 501(C)(3) 170B1AIII SLHN false SACRED HEART HOSPITAL OF ALLENTOWN 421 W CHEW STREET ALLENTOWN PA 18102 231352208 HEALTH SVCS. PA 501(C)(3) HOSPITAL SLHN false SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN PA 18102 232328300 FUNDRAISING PA 501(C)(3) 509(A)(1) SHH false SH REALTY CORPORATION 421 W CHEW STREET ALLENTOWN PA 18102 232384986 HOLDING CO. PA 501(C)(2) N/A SHH false SH ASSISTED LIVING 3910 ADLER PLACE BETHLEHEM PA 18017 200546001 MEDICAL OFFICE PA SHHS RELATED 348762 2776416 false false 0.50000 ST LUKE'S HEALTH NETWORK INSURANCE COMP 801 OSTRUM STREET BETHLEHEM PA 18015 752993150 FINANCIAL VEHICLE VT NA C CORP. false ST LUKE'S PHYSICIAN HOSPITAL ORG INC 801 OSTRUM STREET BETHLEHEM PA 18015 232786818 HEALTHCARE SVCS. PA NA C CORP. false HILLCREST EMERGENCY SERVICES PC 185 ROSEBERRY STREET PHILLIPSBURG NJ 08865 204429976 HEALTHCARE SVCS. NJ NA C CORP. false TWO RIVERS ENTERPRISES INC 185 ROSEBERRY STREET PHILLIPSBURG NJ 08865 521552606 REAL ESTATE NJ NA C CORP. false ST LUKE'S WARREN PHYSICIAN GROUP PC 185 ROSEBERRY STREET PHILLIPSBURG NJ 08865 223837316 HEALTHCARE SVCS. NJ NA C CORP. false SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN PA 18102 232384987 HEALTHCARE SVCS. PA NA C CORP. false false false false true true false false false false false true true false false false false false true true SCHEDULE R, PART V THE ORGANIZATION IS AN AFFILIATE WITHIN ST. LUKE'S UNIVERSITY HEALTH NETWORK ("NETWORK"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY NETWORK. ST. LUKE'S HEALTH NETWORK, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE NETWORK. IN THE ORDINARY COURSE OF BUSINESS, VARIOUS AFFILIATES WITHIN THE SYSTEM, ROUTINELY PAY EXPENSES FOR VARIOUS AFFILIATES WITHIN THE NETWORK, INCLUDING THIS ORGANIZATION. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.