2017-11-06T16:23:13-06:00 2016-12-31 990 2016-01-01 810231792 HOLY ROSARY HEALTHCARE HOLY 4062332600 2600 WILSON STREET MILES CITY MT 59301 PAM PALAGI VP FINANCE & CFO 4062332600 2017-11-06 170.188.5.33 2017-11-06 10:22:44 MS P D592015B8FE208EA5042194ABEAF8E5B275B46FB D592015B8FE208EA5042194ABEAF8E5B275B46FB 2016 2018-03-14 21:41:22Z PAUL LEWIS 2600 WILSON STREET MILES CITY MT 59301 45156292 0 0928 X WWW.HOLYROSARYHEALTHCARE.ORG X 1961 MT WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THEPEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR ANDVULNERABLE. 11 11 361 95 2488 0 1139551 764929 46879473 43644615 199123 344066 422586 396506 48640733 45150116 136797 35438 0 0 18635270 19997096 0 0 0 24328759 22189595 43100826 42222129 5539907 2927987 30998988 34217459 6677052 7215881 24321936 27001578 X WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OFTHE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POORAND VULNERABLE. 0 0 33281208 35438 43925030 FOUNDED IN 1910, HOLY ROSARY HEALTHCARE IS EASTERN MONTANA'S HEALTHCARE DESTINATION. HOLY ROSARY OPERATES A COMPREHENSIVE ACUTE-CARE HOSPITAL, PHYSICIAN CLINICS, A RESIDENTIAL LIVING COMMUNITY, AND HOSPICE AND PALLIATIVE CARE SERVICES - PROVIDING A COMPLETE CONTINUUM OF CARE TO A 10-COUNTY REGION OF EASTERN MONTANA. AS PART OF SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, A FAITH-BASED, NONPROFIT HEALTH SYSTEM, HOLY ROSARY HAS DIRECT ACCESS TO BEST PRACTICES, RESOURCES, TECHNOLOGY, TALENT AND STRATEGIC CAPITAL. SERVICES INCLUDE SURGICAL, ONCOLOGY, AND MATERNITY SERVICES, AS WELL AS 24-HOUR EMERGENCY ROOM AND DIAGNOSTIC AND THERAPEUTIC SERVICES. THE EXTENDED CARE UNIT PROVIDES SHORT-TERM TRANSITIONAL CARE AFTER ILLNESS, INJURY, OR SURGERY, AS WELL AS LONG-TERM CARE FOR THOSE UNABLE TO LIVE INDEPENDENTLY.IN AUGUST 1910, THE PRESENTATION SISTERS OF ABERDEEN, SOUTH DAKOTA, ASSUMED MANAGEMENT AND OPERATION OF THE COUNTY HOSPITAL IN MILES CITY AT THE REQUEST OF THE COMMUNITY, THE MILWAUKEE RAILROAD AND THE DOCTORS ASSOCIATED WITH THE RAILROAD. IN 1915, THE SISTERS PURCHASED THE HOSPITAL, COMMITTING TO A RELATIONSHIP WITH THE COMMUNITY THAT WOULD EXTEND FOR DECADES.IN 1995, HOLY ROSARY HEALTHCARE OPENED A NEW COST EFFECTIVE FACILITY ON A 58-ACRE CAMPUS IN MILES CITY THAT ALLOWED PHYSICIANS AND OTHER CARE FACILITIES TO LOCATE IN THE NEW HOSPITAL BUILDING. THE BUILDING OF THE NEW FACILITY AND MOVING INTO THE NEW FACILITY WAS A COMMUNITY-WIDE EFFORT, AND WAS ACCOMPLISHED THROUGH THE CONTRIBUTIONS OF THE STAFF, PHYSICIANS, BOARD MEMBERS, COMMUNITY MEMBERS AND VOLUNTEERS.IN KEEPING WITH THE NEW COVENANT PROCESS, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH) ASSUMED SPONSORSHIP OF HOLY ROSARY HEALTHCARE IN 1997. TODAY, THE HOSPITAL, RESIDENTIAL LIVING COMMUNITY, AND CLINICS SERVE AS A CENTRALIZED SETTING FOR COMPREHENSIVE HEALTH CARE FOR THE PEOPLE ACROSS EASTERN MONTANA. PHYSICIAN SPECIALTIES INCLUDE FAMILY MEDICINE, INTERNAL/ADULT MEDICINE, GENERAL SURGERY, VASCULAR SURGERY, WOMEN'S HEALTH, ORTHOPEDICS, OPHTHALMOLOGY (EYE), PSYCHOLOGY, AUDIOLOGY, CARDIOLOGY, NEUROLOGY, NEUROSURGERY, ORAL SURGERY, NEPHROLOGY (KIDNEY), DERMATOLOGY, AND SLEEP MEDICINE/PULMONOLOGY.TODAY, HOLY ROSARY HEALTHCARE SERVES SEVERAL EASTERN MONTANA COUNTIES, WHICH COVER OVER 20,000 SQUARE MILES OR APPROXIMATELY 13% OF MONTANA. MORE THAN HALF OF THE PEOPLE RECEIVING HEALTHCARE IN MILES CITY, WHICH HAS A POPULATION OF 11,000, ARE FROM OUTSIDE CUSTER COUNTY. THEREFORE, HOLY ROSARY HEALTHCARE'S IMPACT ON THE HEALTHCARE DELIVERY SYSTEM REACHES FAR BEYOND CITY AND COUNTY LINES. WITH A POPULATION DENSITY OF 1.4 PERSONS PER SQUARE MILE ACROSS THE SEVEN-COUNTY REGION AROUND HOLY ROSARY, CLEARLY THIS DEGREE OF CONTEMPORARY HEALTH CARE IS EXTRAORDINARY.DURING 2016, HOLY ROSARY HEALTHCARE HAD THE FOLLOWING RESULTS:ADMISSIONS - 1,313OUTPATIENT VISITS - 58,094EMERGENCY ROOM VISITS - 4,512BIRTHS - 264SURGERIES - 902LAB TESTS - 131,634AS PART OF THE MONTANA REGION OF SCL HEALTH, HOLY ROSARY IS AFFILIATED WITH ST. JAMES HEALTHCARE IN BUTTE AND ST. VINCENT HEALTHCARE IN BILLINGS, GIVING IT ACCESS TO SOME OF THE STATE'S MOST ADVANCED MEDICAL TECHNOLOGY. HOLY ROSARY HAS A HISTORIC COMMITMENT TO SERVING THE POOR AND THOSE WITH LIMITED ACCESS TO HEALTHCARE. THE COMMITMENT IS TO THE WORTH AND DIGNITY OF THE WHOLE PERSON - SPIRITUAL, PSYCHOLOGICAL, AND MEDICAL.HOLY ROSARY IS CURRENTLY LICENSED BY THE STATE OF MONTANA AND IS ACCREDITED BY THE JOINT COMMISSION ON ACCREDITATION OF HEALTH CARE ORGANIZATIONS. HOLY ROSARY HAS 25 ACUTE CARE AND 90 EXTENDED CARE BEDS AND 24 PHYSICIAN OFFICES. MISSIONWE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.VISIONINSPIRED BY OUR FAITH,WE WILL BE DISTINGUISHED AS THE TRUSTED PERSON-CENTERED PARTNER TO THOSE WHO ENGAGE WITH US IN THEIR PHYSICAL, MENTAL AND SPIRITUAL HEALTH DECISIONS.WE WILL SHARE ACCOUNTABILITY WITH OUR CLINICIANS, ASSOCIATES AND AFFILIATED STAKEHOLDERS TO DELIVER EXCEPTIONAL CARE THAT IS WELL-COORDINATED, ACCESSIBLE, AFFORDABLE, SAFE, AND RESULTS IN OPTIMAL OUTCOMES FOR INDIVIDUALS AND POPULATIONS.WE WILL GROW AS COMMUNITY-BASED HEALTH NETWORKS IN PARTNERSHIP WITH OTHERS WHO SHARE OUR VISION AND VALUES AND ALIGN WITH US TO BE AN ESSENTIAL PROVIDER TO THOSE WE SERVE.VALUES CARING SPIRIT - WE HONOR THE SACRED DIGNITY OF EACH PERSON. EXCELLENCE - WE SET AND SURPASS HIGH STANDARDS. GOOD HUMOR - WE CREATE JOYFUL AND WELCOMING ENVIRONMENTS. INTEGRITY - WE DO THE RIGHT THING WITH OPENNESS AND PRIDE. SAFETY - WE DELIVER CARE THAT SEEKS TO ELIMINATE ALL HARM FOR PATIENTS AND ASSOCIATES. STEWARDSHIP - WE ARE ACCOUNTABLE FOR THE RESOURCES ENTRUSTED TO US.HOLY ROSARY HEALTHCARE HAS A VARIETY OF PROGRAMS AND SERVICES TO SERVE THE COMMUNITY:CANCER CAREFROM INITIAL DIAGNOSIS TO TREATMENT AND RECOVERY, PATIENTS AND THEIR FAMILIES CAN ACCESS AN EXCEPTIONAL LEVEL OF CARE CLOSE TO HOME. CARDIAC SERVICESFOR OPTIMAL CONVENIENCE, HOLY ROSARY OFFERS A CONTINUUM OF CARE - STRESS TESTING, PACEMAKER IMPLANTATION, AND CARDIAC REHABILITATION. CHILDREN'S CAREWE UNDERSTAND THE SPECIAL NEEDS OF CHILDREN AND OFFER EXPERIENCED AND SKILLED NURSES, A FAMILY-FRIENDLY EMERGENCY DEPARTMENT AND BOARD-CERTIFIED PEDIATRICIANS.CLINICLOCATED ON THE HOSPITAL CAMPUS, THE HOLY ROSARY HEALTHCARE CLINIC WAS DEVELOPED TO PROVIDE OUTSTANDING PRIMARY AND SPECIALTY CARE. DIABETES CARETHE HOLY ROSARY DIABETES CARE TEAM, CERTIFIED BY THE AMERICAN DIABETES ASSOCIATION, OFFERS BOTH INPATIENT AND OUTPATIENT SERVICES TO ASSIST PATIENTS. EMERGENCY AND TRAUMA SERVICESHOLY ROSARY'S TEAM OF EMERGENCY PROVIDERS AND NURSES ADEPTLY ASSESS CONDITIONS RANGING FROM A CHILD'S RISING FEVER TO LIFE-THREATENING HEART ATTACKS.HOSPICE AND PALLIATIVE CAREALL PALLIATIVE AND HOSPICE CARE TEAM MEMBERS ARE AVAILABLE TO MAKE HOME VISITS, NURSING HOME VISITS, ASSISTED LIVING VISITS AND TO VISIT PATIENTS AT HOLY ROSARY HEALTHCARE.HOSPITALIST PROGRAMA HOSPITALIST'S PRIMARY PROFESSIONAL FOCUS IS THE TOTAL CARE OF A PATIENT FROM THE TIME OF ADMISSION UNTIL THE PATIENT LEAVES THE HOSPITAL. LAB SERVICESTHE LABCHECK PROGRAM HELPS ENCOURAGE PEOPLE TO SEEK PREVENTIVE MEDICINE, ALLOWING PATIENTS TO RECEIVE BLOOD TESTS TO DETECT ILLNESSES AND DISORDERS AT A REDUCED COST.OCCUPATIONAL HEALTH SERVICESHOLY ROSARY HELTHCARE WORKS TO TAILOR SERVICES MEET THE NEEDS OF THE INDIVIDUALS SERVED IN THE COMMUNITY.RADIOLOGY AND IMAGING SERVICESHOLY ROSARY HEALTHCARE OFFERS INPATIENT AND OUTPATIENT DIAGNOSTIC AND INTERVENTIONAL (MINIMALLY INVASIVE RADIOLOGY) SERVICES. RESIDENTIAL LIVINGRESIDENTIAL LIVING OFFERS NURSING FOR SHORT-TERM, POST-ACUTE HOSPITAL STAYS TO LONG-TERM LIVING. SLEEP MEDICINEHOLY ROSARY HEALTHCARE OPENED ITS SLEEP CENTER TO PROVIDE ON-SITE, CONVENIENT ASSESSMENT FOR INSOMNIA, OBSTRUCTIVE SLEEP APNEA, SNORING AND OTHER SLEEP PROBLEMS.SPORTS MEDICINEPRACTITIONERS WORK CLOSELY WITH ATHLETES, PARENT, AND COACHES TO EDUCATE AND PROVIDE INDIVIDUAL, AS WELL AS TEAM CONSULTATIONS. SURGICAL SERVICESSURGICAL TEAMS BRING A PERSONAL TOUCH WITH THE SOPHISTICATION OF ADVANCED MEDICINE. THERAPY AND REHABILITATION SERVICESHOLY ROSARY HEALTHCARE OFFERS A HOLISTIC APPROACH TO TREATMENT, WITH SPECIAL CONSIDERATION FOR A PATIENT'S AGE, PHYSICAL ABILITIES, RELIGIOUS AND ETHNIC BELIEFS. WALK IN CLINICHOLY ROSARY HEALTHCARE WALK-IN CLINIC SERVES ALL AGES AND IS OPEN EVERY DAY OF THE WEEK. WOMEN'S HEALTH SERVICESCOMPREHENSIVE WOMEN'S HEALTH CARE TEAM PROVIDING SERVICES TO WOMEN IN EASTERN MONTANA. 33281208 1 1 0 1 0 0 0 0 0 1 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 1 1 1 0 0 1 43 0 1 361 1 1 1 0 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X KYLE ENGMAN 3038135543 500 ELDORADO BLVD SUITE 4200 BROOMFIELD CO 80021 RACHEL ARMSTRONG MEMBER 1.00 0.00 X 0 0 0 BILL BICKLE MEMBER 1/1-3/31 1.00 0.00 X 0 0 0 SR KATHERINE FRANCHETT MEMBER 1.00 0.00 X 0 0 0 RON HATHAWAY MEMBER 1.00 0.00 X 0 0 0 STACY KLIPPENSTEIN MEMBER 1.00 0.00 X 0 0 0 TAMMIE MCFARLAND MEMBER 1.00 0.00 X 0 0 0 NIKI MUNROE MEMBER 1.00 0.00 X 0 0 0 BILL OFTEDAL CHAIR 2.00 0.00 X X 0 0 0 POLLY PETERSEN SECRETARY 2.00 0.00 X X 0 0 0 JIM REGAN VICE-CHAIR 2.00 0.00 X X 0 0 0 DERRICK RODGERS MEMBER 1.00 0.00 X 0 0 0 SR SHARON SMITH MEMBER 1.00 0.00 X 0 0 0 STEVE LOVELESS PRESIDENT CEO SVH-MT REG 50.00 0.00 X 0 628244 97110 PAUL LEWIS CHIEF EXECUTIVE OFFICER - HRH 50.00 0.00 X 0 260269 72537 RON OLDFIELD VP FINANCE 50.00 0.00 X 0 317212 35359 CAROL ENDERLE VP PATIENT CARE SERVICES-HRH 50.00 0.00 X 0 157927 30841 MARK NICHOLS MD PSO PHYSICIAN CLINIC 50.00 0.00 X 389942 0 29569 JEFFERY WILLIAMS MD PSO PHYSICIAN CLINIC 50.00 0.00 X 308632 0 35828 DOROTHY BRADBURY MD PSO PHYSICIAN ED 50.00 0.00 X 265673 0 21867 STEVEN MAERTENS MD PSO PHYSICIAN ED 50.00 0.00 X 258601 0 40405 LISA CADWELL MD PSO PHYSICIAN CLINIC 50.00 0.00 X 245590 0 25242 TRAVIS SCHEVING FORMER OFFICER 0.00 50.00 X 0 178367 46009 DARREN WALKER FORMER KEY EMPLOYEE 50.00 0.00 X 0 138680 40053 1468438 1680699 474820 21 1 1 0 TEL NET SYSTEMS INC 547 S 20TH ST WEST BILLINGS MT 59102 TECHNOLOGY SERVICES 388389 MEDEFIS INC 10826 OLD MILL RD STE 101 OMAHA NE 68154 CONTRACT LABOR 382757 YELLOWSTONE ANESTHESIA ASSOCIATES PO BOX 1576 MILES CITY MT 59301 MEDICAL SERVICES 162232 EXPRESS LAUNDRY CENTER 1115 S HAYNES AVE MILES CITY MT 59301 LAUNDRY SERVICES 161305 4 428385 336544 764929 PATIENT SERVICES REVENUE 622110 43644615 43644615 43644615 344066 344066 113603 0 113603 113603 113603 6793 6176 617 617 CAFETERIA 722310 276661 276661 DIETICIAN SERVICES 541900 3754 3754 ADMINISTRATIVE SERVICES 561000 1249 1249 622 622 282286 45150116 43925030 2488 457669 35438 35438 521574 488197 33377 15025154 14063652 961502 890351 815139 75212 2511865 2430615 81250 1048152 1007218 40934 131 131 2933829 2769699 164130 250912 9974 240938 60088 38138 21950 3475778 3475778 609923 551529 58394 166104 125376 40728 85490 75347 10143 1371960 1371960 265272 265272 MEDICAL SUPPLIES 4879196 4879196 BILLING & COLLECTION - 1563157 1563157 MAINTENANCE SERVICES 1414528 1412449 2079 BAD DEBT EXPENSE 1012112 1012112 4101115 1929897 2171218 42222129 33281208 8940921 0 70431 61462 7013319 5894134 29941 7890 75974 258534 918157 965017 670435 415933 47905401 32921244 14194298 14984157 8026433 11630332 30998988 34217459 6677052 7206914 8967 6677052 7215881 X 24321936 27001578 24321936 27001578 30998988 34217459 X 2927987 -248344 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 131 131 0 PART II-B, LINE 1: HOLY ROSARY HEALTHCARE PAYS DUES TO THE MONTANA HOSPITAL ASSOCIATION AND LEADING AGE OF WHICH $131 IS ATTRIBUTED TO LOBBYING. 138189 1760 4500 4500 139949 138189 2500 2500 138189 137825 364 138189 170833 233 33241 137825 157436 2655 13771 2500 529 170833 1.00000 0 1 1 135510 135510 15250930 8588483 6662447 12294877 9957206 2337671 19432238 14375555 5056683 791846 791846 14984157 THIRD PARTY SETTLEMENTS 541919 OTHER RECEIVABLE 20868 INTERCOMPANY RECEIVABLE 11067545 11630332 PART V, LINE 4: THE INTENDED USE FOR THE KENNETH HOM TRUST ENDOWMENT FUND IS TO PROVIDE NURSING SCHOLARSHIPS. ENDOWMENT FUNDS ARE HELD BY THE HOLY ROSARY HEALTHCARE FOUNDATION. 1 1 X 1 X 1 X 1 1 0 1 1 1076430 1076430 0.02610 6637408 7274200 0 0.00000 84725 99387 0 0.00000 7798563 7373587 1076430 0.02610 311469 311469 0.00760 140546 140546 0.00340 3142856 1630116 1512740 0.03670 57824 2350 55474 0.00130 3652695 1632466 2020229 0.04900 11451258 9006053 3096659 0.07510 33607 33607 0.00080 10573 10573 0.00030 662 662 0.00000 625 625 0.00000 6073 6073 0.00010 87 87 0.00000 2309 2309 0.00010 53936 53936 0.00130 1 1012112 0 14099446 14599878 -500432 X 1 1 1 1 HOLY ROSARY HEALTHCARE 2600 WILSON STREET MILES CITY MT 59301 WWW.SCLHEALTH.ORG/LOCATIONS/ 13512 X X X HOLY ROSARY HEALTHCARE 1 0 0 1 X X X X X X X X X 15 1 0 1 1 X SEE PART V, SECTION C X 1 15 1 SEE PART V, SECTION C 0 1 X 200.000000000000 400.000000000000 X X X 1 1 X X X X 1 X SEE PART V, SECTION C X SEE PART V, SECTION C X SEE PART V, SECTION C X X X X X X 1 X 0 X X X X 1 X 0 0 HOLY ROSARY HEALTHCARE PART V, SECTION B, LINE 5: THE STUDY AREA FOR THIS EFFORT (REFERRED TO AS THE "HOLY ROSARY HEALTHCARE SERVICE AREA OR "HRH SERVICE AREA" IN THIS REPORT) INCLUDES TEN COUNTIES: CARTER, CUSTER, DAWSON, FALLON, GARFIELD, MCCONE, POWDER RIVER, PRAIRIE, ROSEBUD, AND TREASURE. THIS COMMUNITY DEFINITION, WAS DETERMINED BASED ON THE AREAS OF RESIDENCE OF THE MOST RECENT PATIENTS OF THE HOLY ROSARY HEALTHCARE SYSTEM.TO SOLICIT INPUT FROM KEY INFORMANTS, THOSE INDIVIDUALS WHO HAVE A BROAD INTEREST IN THE HEALTH OF THE COMMUNITY, AN ONLINE KEY INFORMANT SURVEY WAS ALSO IMPLEMENTED AS PART OF THIS PROCESS. A LIST OF RECOMMENDED PARTICIPANTS WAS PROVIDED BY HOLY ROSARY HEALTHCARE; THIS LIST INCLUDED NAMES AND CONTACT INFORMATION FOR PHYSICIANS, PUBLIC HEALTH REPRESENTATIVES, OTHER HEALTH PROFESSIONALS, SOCIAL SERVICE PROVIDERS, AND A VARIETY OF OTHER COMMUNITY LEADERS. POTENTIAL PARTICIPANTS WERE CHOSEN BECAUSE OF THEIR ABILITY TO IDENTIFY PRIMARY CONCERNS OF THE POPULATIONS WITH WHOM THEY WORK, AS WELL AS OF THE COMMUNITY OVERALL. KEY INFORMANTS WERE CONTACTED BY EMAIL, INTRODUCING THE PURPOSE OF THE SURVEY AND PROVIDED A LINK TO TAKE THE SURVEY ONLINE; REMINDER EMAILS WERE SENT AS NEEDED TO INCREASE PARTICIPATION. IN ALL, 56 COMMUNITY STAKEHOLDERS TOOK PART IN THE ONLINE KEY INFORMANT SURVEY. THROUGH THIS PROCESS, INPUT WAS GATHERED FROM SEVERAL INDIVIDUALS WHOSE ORGANIZATIONS WORK WITH LOW-INCOME, MINORITY POPULATIONS (INCLUDING AFRICAN-AMERICANS, AMISH, ASIANS, CARIBBEAN POPULATIONS, HISPANICS, NATIVE AMERICANS, HOMELESS, LESBIAN/GAY/BISEXUAL/TRANSGENDER RESIDENTS, LOW-INCOME, THE MENTALLY CHALLENGED, SENIORS, SINGLE PARENTS, SUBSTANCE ABUSERS, UNINSURED/UNDERINSURED RESIDENTS, AND WOMEN), OR OTHER MEDICALLY UNDERSERVED POPULATIONS (INCLUDING ADOLESCENTS/YOUNG ADULTS, THE AUTISTIC POPULATION, DISABLED, ELDERLY, MEDICAID/MEDICARE RECIPIENTS, RURAL PATIENTS AND VETERANS). HOLY ROSARY HEALTHCARE PART V, SECTION B, LINE 6B: THE HOLY ROSARY HEALTHCARE CHNA WAS COMPLETED WITH LOCAL GOVERNMENT AND SOCIAL SERVICE AGENCIES AND STAFF, INCLUDING MCCONE COUNTY HEALTH CENTER, GLENDIVE MEDICAL CENTER, GARFIELD PUBLIC HEALTH AND DAHL MEMORIAL HEALTHCARE ASSOCIATION, INC.HOLY ROSARY HEALTHCARE:PART V, SECTION B, LINE 7A: WWW.SCLHEALTH.ORG/LOCATIONS/HOLY-ROSARY-HEALTHCARE/ABOUT/COMMUNITY-BENEFIT/HOLY ROSARY HEALTHCARE:PART V, SECTION B, LINE 10A: WWW.SCLHEALTH.ORG/LOCATIONS/HOLY-ROSARY-HEALTHCARE/ABOUT/COMMUNITY-BENEFIT/ HOLY ROSARY HEALTHCARE PART V, SECTION B, LINE 11: IDENTIFIED HEALTH NEEDS OF THE COMMUNITY THE FOLLOWING "AREAS OF OPPORTUNITY" REPRESENT THE SIGNIFICANT HEALTH NEEDS OF THE COMMUNITY; BASED ON THE INFORMATION GATHERED THROUGH THE COMMUNITY HEALTH NEEDS ASSESSMENT AND THE GUIDELINES SET FORTH IN HEALTHY PEOPLE 2020. THEY ARE IN ALPHABETICAL ORDER: 1. ACCESS TO HEALTHCARE SERVICES 2. CANCER 3. DEMENTIAS, INCLUDING ALZHEIMER'S DISEASE 4. DIABETES 5. HEART DISEASE & STROKE 6. INFANT HEALTH & FAMILY PLANNING 7. INJURY AND VIOLENCE 8. MENTAL HEALTH 9. NUTRITION, PHYSICAL ACTIVITY & WEIGHT 10. RESPIRATORY DISEASES 11. SUBSTANCE ABUSETHE SERVANT LEADERSHIP TEAM OF HOLY ROSARY HEALTHCARE MET TO EVALUATE, DISCUSS AND PRIORITIZE HEALTH ISSUES FOR THE COMMUNITY, BASED ON FINDINGS OF THE PRC COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA). THE MEETING BEGAN WITH A PRESENTATION OF KEY FINDINGS FROM THE CHNA, HIGHLIGHTING THE SIGNIFICANT HEALTH ISSUES IDENTIFIED FROM THE RESEARCH (SEE AREAS OF OPPORTUNITY ABOVE) AND INPUT FROM COMMUNITY STAKEHOLDERS (KEY INFORMANTS).FOLLOWING THE DATA REVIEW, ATTENDEES WERE PROVIDED WORKSHEETS THAT ASKED THEM TO CONSIDER TWO CRITERIA: 1) THE SCOPE AND SEVERITY OF EACH OF THE SIGNIFICANT HEALTH NEEDS PRESENTED; AND 2) THE ABILITY OF HOLY ROSARY HEALTHCARE TO HAVE A SIGNIFICANT IMPACT ON EACH. THIS EXERCISE INFORMED THE DIALOGUE THAT FOLLOWED. THROUGH DISCUSSION, A CONSENSUS WAS REACHED TO ESTABLISH THE FOLLOWING AS PRIORITIES FOR HOLY ROSARY HEALTHCARE TO INCLUDE IN ITS IMPLEMENTATION STRATEGY TO ADDRESS THE TOP HEALTH NEEDS OF THE COMMUNITY IN THE COMING YEARS:1. ACCESS TO HEALTHCARE SERVICESHOLY ROSARY HEALTHCARE CONTINUES TO PROVIDE WALK IN CLINIC SERVICES 7 DAYS A WEEK, WHICH THE LOCAL COMMUNITY, OUTLYING AREAS AND TRAVELERS UTILIZE AND SEEK HEALTH CARE IN A MORE TIMELY MATTER. HRH PARTNERED WITH ST. VINCENT PROVIDER SERVICES TO BRING TWO NEW SPECIALTY PHYSICIANS TO OUR OUPTATIENT SERVICES. OUR TELEMED SERVICES HAS GROWN: CONNECTING PATIENTS WITH SPECIALTY PHYSICIANS (INCREASE OF 133 VISITS/YEAR) AND NON-ROUTINE TELEMED VISITS-(INCREASE OF 43 VISITS). HRH CONTINUES TO PROMOTE MYCHART, WHICH MAKES SCHEDULING, AND PHYSICIAN ACCESS EASIER; AND DR. ON DEMAND -A VIRTUAL VISIT WITH A PHYSICIAN. THIS YEAR HRH WELCOMED 2 INTERNAL MEDICINE DOCTORS TO OUR CLINIC; PREVIOUSLY A PATIENT HAD TO TRAVEL 150 MILES TO SEE AN INTERNIST. OUR PALLIATIVE CARE OUTPATIENT PROGRAM CONTINUES TO BENEFIT CHRONICALLY ILL PATIENTS WITH INDIVIDUAL VISITS, PHONE CALLS AND A DIRECT LINK TO THEIR PRIMARY CARE PROVIDER.HRH PHYSICAL THERAPY PARTNERS WITH CUSTER COUNTY HIGH SCHOOL AND MILES COMMUITY COLLEGE TO PROVIDE ATHLETIC TRAINERS AT ALL EVENTS AND FOR ONE-ON-ONE ASSISTANCE WITH INJURIES. SPEECH THERAPIST PROVIDES EDUCATIONAL SEMINARS AT LOCAL PARKSINSONS SUPPORT GROUP. THE MISSION DEPARTMENT PROVIDES GRIEF SUPPORT TO COMMUNITY. WE PARTNER WITH LOCAL DENTIST TO PROVIDE DENTAL CARE TO CHILDREN AND ADULTS WITH NO DENTAL COVERAGE; AND WE PROVIDE SEVERAL EDUCATIONAL OPPORTUNITIES FOR STUDENTS INTERESTED IN PURSUING A HEALTHCARE CAREER.WE PARTNER WITH MONTANA HEALTHNETWORK THROUGH A GRANT THEY PROCURE FROM THE FEDERAL GOVERNMENT. THE DOLLARS ARE PROVIDED TO TRAIN A NAVIGATOR FOR THE MARKETPLACE HEALTH INSURANCE. ORGINALLY TWO ASSOCIATES WERE TRAINED, AND NAVIGATORS MEET WITH ALL PATIENTS WITHOUT INSURANCE AND ARE AVAILABLE TO ANYONE COMING IN FOR ASSISTANCE. 2. MENTAL HEALTHWE WORKED WITH EASTERN MONTANA COMMUNITY MENTAL HEALTH CENTER (EMCMHC) TO DEVELOP PROCESSES TO MANAGE PATIENTS PRESENTING TO THE ER WITH A MENTAL HEALTH CRISIS. OBTAINING THEIR DIRECT INPUT INTO THE PROCESS PROVED TO BE ESSENTIAL IN SUPPORTING APPROPRIATE CARE OPTIONS. THE PROCESS IS WORKING WELL AND PATIENTS ARE BENEFITING FROM THIS NEW APPROACH. WE ARE DOING EXTENSIVE COLLABORATION WITH EMCMHC TO PROVIDE A SCREENING PROCESS IN OUR CLINIC FOR BEHAVIORAL HEALTH NEEDS AND TO PROVIDE OUTPATIENT SERVICES AT HRH OR IN THE COMMUNITY SO THAT PATIENTS CAN RECEIVE CARE BEFORE A CRISIS. WORK WILL CONTINUE TO MOVE FORWARD ON THIS HEALTH PRIORITY IN 2017.3. RESPIRATORY DISEASE: TOBACCO USEWE INITIATED THE PROCESS OF PROVIDING COUNSELING AND EDUCATION TO BOTH OUTPATIENT AND INPATIENT TOBACCO USERS. THIS IS BEING TRACKED WITHIN OUR ELECTRONIC RECORDS (EPIC) AND THE INFORMATION WILL BE USED TO DEVELOP AND MONITOR REPORTS AND PROGRAM DEVELOPMENT DIRECTION. HRH TOBACCO CESSATION 9 MEMBER TEAM MEETS MONTHLY TO CONTINUE WITH EVALUATION AND DEVELOPMENT OF ACTION STEPS NEEDED TO BE SUCCESSFUL. HRH SHOWS STRONG PERFORMANCE FOR INPATIENT TOBACCO SCREENING (87%), INITIAL COUNSELING (77%) AND INITIAL MEDICATION ACCEPTANCE (44%). ADDITIONALLY, IN REACHING BEYOND OUR HOSPITAL WALLS TO PROMOTE TOBACCO CESSATION AWARENESS AND PROVIDE QUIT RESOURCES, WE SUPPLY EDUCATIONAL MATERIALS AND TEACHING AIDS AT ALL OUR COMMUNITY EVENTS SUCH AS: AREA HEALTH FAIRS, EASTERN MONTANA FAIR, FAMILY OLYMPICS, BHS PARADE ACTIVITIES, AND RELAY FOR LIFE.NEEDS NOT ADDRESSEDEACH OF THE HEALTH NEEDS IDENTIFIED IN THE HRH CHNA IS IMPORTANT AND NUMEROUS PARTNERS THROUGHOUT THE COMMUNITY ARE ADDRESSING THESE NEEDS THROUGH INNOVATIVE PROGRAMS AND INITIATIVES. THESE INCLUDE: CANCER SERVICES ARE PROVIDED BY TWO ONCOLOGY OUTPATIENT TREATMENT DEPARTMENTS, HOLY ROSARY HEALTHCARE AND BILLINGS CLINIC. VISITING CANCER PHYSICIANS SEE PATIENTS AT BOTH FACILITIES. FRIENDSHIP VILLA (SNF) HOSTS AN ALZHEIMER'S SUPPORT GROUP. DIABETES EDUCATION IS AVAILABLE AT BOTH FACILITIES. OUR HEALTHLIFE STYLES CLASS THAT IS GIVEN TWO TIMES A YEAR THROUGH A PARTNERSHIP WITH THE STATE OF MONTANA SPECIFICALLY ADDRESSES DIABETES AND PATIENTS AROUND OUR AREA ARE ADVISED BY PHYSICIANS TO ATTEND. THIS PROGRAM ALSO ADDRESSES NUTRITION, PHYSICAL ACTIVITY AND WEIGHT MANAGEMENT AS DO THE TWO FITNESS CENTERS IN TOWN AND THE COUNTY EXTENSION AGENT. ONE HEALTH (A COMBINED PUBLIC HEALTH AND COMMUNITY HEALTH CENTER) ADDRESSES INFANT HEALTH & FAMILY PLANNING. INJURY AND VIOLENCE HAS BEEN ADDRESSED BY PARTNERING WITH LOCAL SAFETY SEMINARS, REPRESENTATION WITH CNADA AND PROVIDING EDUCATION IN COLLABORATION WITH COUNTY EXTENSION AND LOCAL POLICE/SHERIF DEPARTMENTS. ALL THREE FACILITIES (HRH, BILLINGS CLINIC AND ONE HEALTH) AND PHARMACIES WORK TOGETHER TO SUPPORT DRUG CONTRACTS AND PROMOTE LOCAL SUPPORT GROUPS.HOLY ROSARY HEALTHCAREPART V, SECTION, B, LINE 16A, 16B, 16C: WWW.SCLHEALTH.ORG/LOCATIONS/HOLYROSARY-HEALTHCARE/PATIENTS-VISITORS/BILLING-INSURANCE/FINANCIAL-ASSISTANCE/ 7 1 - HOLY ROSARY FAM PRAC & INT MED URG CARE 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 2 - HOLY ROSARY FAMILY PRACTICEINT MED 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 3 - HOLY ROSARY HOSPITAL EMERGENCY 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 4 - HOLY ROSARY HOSPITALIST 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 5 - HOLY ROSARY RURAL HLTH CLINIC PEDIATRICS 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 6 - HOLY ROSARY RURAL HEALTH CLINIC WOM HLTH 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC 7 - HOLY ROSARY SURGICAL SERVICES 2600 WILSON ST MILES CITY MT 59301 OUTPATIENT PHYSICIAN CLINIC PART I, LINE 6A: THIS ORGANIZATION IS PART OF SCL HEALTH SYSTEM WHICH PREPARES AN ANNUAL COMMUNITY BENEFIT REPORT ON A CONSOLIDATED BASIS. THE REPORT IS PREPARED BY THE PARENT COMPANY, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. PART I, LINE 7: THE AMOUNTS REPORTED ON FORM 990, SCHEDULE H, PART I, LINE 7A, 7B AND 7C WERE DETERMINED USING THE COST TO CHARGE RATIO DERIVED FROM WORKSHEET 2, IN THE SCHEDULE H, FORM 990 INSTRUCTIONS. FORM 990, SCHEDULE H, PART I, LINES 7E, 7F, 7G, 7H AND 7I ARE REPORTED AT COST AS REPORTED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 1,012,112. PART II, COMMUNITY BUILDING ACTIVITIES: HOLY ROSARY HEALTHCARE (HRH) COLLABORATES WITH A WIDE RANGE OF COMMUNITY ORGANIZATIONS TO SUPPORT THEIR ACTIVITIES AND FOR THE GREATER GOOD OF OUR CITIZENS. OUR LEADERSHIP IS DIRECTLY INVOLVED IN THE MILES CITY ECONOMIC DEVELOPMENT COUNCIL AS PRESENTERS AND BOARD MEMBERS/OFFICERS. WE WORK WITH MILES COMMUNITY COLLEGE IN THE STRATEGIC PLANNING FOR THE COLLEGE AND WITH THE RN & CNA DEGREE PROGRAMS: PROVIDING A CLINICAL SITE AND EDUCATIONAL SUPPORT. IN 2016 WE DONATED EQUIPMENT SUCH AS A FETAL MONITOR, EKG MACHINE AND 2 ICU BEDS FOR THE STUDENTS TO USE IN THEIR LEARNING. WE MAKE FREQUENT EQUIPMENT DONATIONS OF ITEMS THAT CAN BE USED FOR TRAINING WHENEVER POSSIBLE. WE HAVE DONATED TO MEDICAL SCHOOLS AND MISSION TRIPS. THIS HELPS OUR NEIGHBORS AND LOWERS THE IMPACT ON OUR LANDFILLS.WE CONTINUE TO PARTNER WITH THE STATE OF MONTANA WITH OUR AWARD WINNING HEALTHY LIFESTYLES CLASS. ALONG WITH THE GRANT, OUR SPECIALIZED STAFF MEMBERS ORGANIZE, PRESENT AND PROMOTE THE CLASSES. THIS YEAR THE CLASS WAS OFFERED IN A DISTANCE LEARNING FORMAT TO TWO COMMUNITIES, EACH 75 MILES AWAY. WE SERVED 26 PARTICPANTS AND IN THE LOCAL CLASS SERVED 53 PARTICIPANTS.AS PART OF OUR PARTNERSHIP WITH THE COUNTY EXTENSION TO HAVE COMMUNITY GARDEN PLOTS, WE PROVIDE LAND AND WATER USE NEAR OUR CAMPUS. WE ALSO ALLOW SCHOOL AND SPORTS ORGANIZATIONS TO USE OUR GRASS FIELDS FOR FOOTBALL AND SOCCER PRACTICE. THE WELLNESS WALK THAT SURROUNDS OUR CAMPUS AND 2 OTHER FACILITIES PROVIDES THE SPACE FOR FAMILIES AND INDIVIDUALS TO ENJOY OUTDOOR PHYSICAL ACTIVITY. HRH MAINTAINS IT WITH SNOW REMOVAL AND PET STATIONS. IN THE SUMMER, THE COUNTY EXTENSION PROVIDES A STORYBOOK WALK FOR YOUNG CHILDREN THROUGH A PROGRAM THAT ENCOURAGES OUR YOUNG CITIZENS TO WALK AND READ.ADMINISTRATION, DEPARTMENT LEADERS AND ASSOCIATES ARE VERY INVOLVED IN OUR COMMUNITY, PROVIDING OVER 2,500 HOURS OF VOLUNTEER TIME TO LOCAL ORGANIZATIONS SUCH AS: MEALS ON WHEELS, MILES CITY SOUP KITCHEN, FOOD BANK, KIWANIS AND OTHER SERVICE GROUPS, SCHOOL SYSTEM, SPORTS ORGANIZATIONS, CUSTER COUNTY ON AGING-AS EXAMPLE. THIS COLLABORATION WITH OUR COMMUNITY ENABLES US TO STAY AWARE OF ISSUES AND NEEDS AS THEY COME UP AND TO BE ENGAGED IN THE SOLUTIONS.PART III, LINE 1THE ORGANIZATION REPORTS BAD DEBT IN ACCORDANCE TO HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION (HFMA) STATEMENT NO. 15 TO THE EXTENT THAT HFMA STATEMENT NO. 15 FOLLOWS THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) FOR THE REPORTING OF BAD DEBT. PART III, LINE 2: THE BAD DEBT EXPENSE REPORTED ON PART III, LINE 2 IS AT CHARGES AS RECORDED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. THE ALLOWANCE FOR BAD DEBT IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS.THE BAD DEBT ALLOWANCE IS CALCULATED AS A PERCENTAGE OF PATIENT RECEIVABLES AFTER DEDUCTIONS FOR ESTIMATED PROVISIONS FOR CONTRACTUAL ADJUSTMENTS (DISCOUNTS) ON SERVICES PROVIDED TO ENROLLEES OF MEDICARE, MEDICAID, THIRD-PARTY PAYOR PROGRAMS, CHARITY CARE, UNINSURED DISCOUNTS, AND OTHER ADMINISTRATIVE ADJUSTMENTS. PART III, LINE 4: THE ALLOWANCE FOR BAD DEBT IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS.THE BAD DEBT ALLOWANCE IS CALCULATED AS A PERCENTAGE OF PATIENT RECEIVABLES AFTER DEDUCTIONS FOR ESTIMATED PROVISIONS FOR CONTRACTUAL ADJUSTMENTS (DISCOUNTS) ON SERVICES PROVIDED TO ENROLLEES OF MEDICARE, MEDICAID, THIRD-PARTY PAYOR PROGRAMS, CHARITY CARE, UNINSURED DISCOUNTS, AND OTHER ADMINISTRATIVE ADJUSTMENTS.THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN AND PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS.CERTAIN PATIENT ACCOUNTS ARE WRITTEN OFF TO BAD DEBT BECAUSE THE ORGANIZATION DOES NOT HAVE SUFFICIENT INFORMATION TO DETERMINE IF THE PATIENT WOULD QUALIFY FOR FREE CARE OR FINANCIAL AID. THEREFORE, IT IS POSSIBLE THAT SOME BAD DEBT IS ACTUALLY CHARITY CARE. HOWEVER, IF A PATIENT ACCOUNT IS WRITTEN OFF TO BAD DEBT AND THE COLLECTION AGENCY LATER DETERMINES THAT THE PATIENT WOULD HAVE QUALIFIED FOR FREE CARE OR FINANCIAL AID, THEN THE BAD DEBT EXPENSE IS RECLASSIFIED TO CHARITY CARE. THE FOLLOWING IS THE TEXT OF THE FOOTNOTE IN THE ORGANIZATION'S FINANCIAL STATEMENTS THAT DESCRIBE THE BAD DEBT ALLOWANCE AND BAD DEBT EXPENSE: THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITION IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON HISTORICAL COLLECTION EXPERIENCE BY PAYOR CATEGORY AND OTHER FACTORS. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE MODIFICATIONS TO THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS INCLUDES A RESERVE FOR BOTH UNINSURED PATIENTS AND BALANCES DUE FROM PATIENTS AFTER INSURANCE. PART III, LINE 8: THE ORGANIZATION BELIEVES THAT AT LEAST SOME PORTION OF THE COSTS WE INCUR IN EXCESS OF PAYMENTS RECEIVED FROM THE FEDERAL GOVERNMENT FOR PROVIDING MEDICAL SERVICES TO MEDICARE ENROLLEES AND BENEFICIARIES UNDER THE FEDERAL MEDICARE PROGRAM (SHORTFALL OR MEDICARE SHORTFALL) CONSTITUTES A COMMUNITY BENEFIT. PROVIDING THESE SERVICES CLEARLY LESSENS THE BURDENS OF THE GOVERNMENT BY ALLEVIATING THE FEDERAL GOVERNMENT FROM HAVING TO DIRECTLY PROVIDE THESE MEDICAL SERVICES. AS DEMONSTRATED AND CALCULATED ON FORM 990, SCHEDULE H, PART III, LINES 5, 6 AND 7, OUR MEDICARE "ALLOWABLE COSTS" CLEARLY EXCEED THE PAYMENTS WE RECEIVE FOR PROVIDING THESE MEDICAL SERVICES UNDER THE MEDICARE PROGRAM. BY ABSORBING THE MEDICARE SHORTFALL COSTS WE ARE PROVIDING A COMMUNITY BENEFIT AS WELL AS EASING THE BURDEN OF THE FEDERAL GOVERNMENT HAVING TO COVER THESE COSTS.TO ARRIVE AT THE FORM 990, SCHEDULE H, PART III, LINE 6 AMOUNT, WE USED ACTUAL MEDICARE CHARGES FROM INTERNAL RECORDS AND APPLIED AN ESTIMATED COST TO CHARGE RATIO TO DETERMINE THE MEDICARE ALLOWABLE COSTS. THE ESTIMATED MEDICARE COST TO CHARGE RATIO IS THE PRIOR PERIOD MEDICARE COST REPORT COST TO CHARGE RATIO. PART III, LINE 9B: AN INTEGRAL COMPONENT OF OUR MISSION IS TO BE GOOD FINANCIAL STEWARDS. THIS REQUIRES US TO DETERMINE WHICH PATIENTS ARE IN NEED OF CHARITY CARE AND WHICH ARE ABLE TO CONTRIBUTE SOME PAYMENT FOR CARE RECEIVED. WEMAINTAIN A BALANCE THAT ENABLES US TO CONTINUE TO PROVIDE CHARITY CARE TOTHOSE WHO NEED IT MOST AND ENSURE THAT WE MANAGE OUR RESOURCES SOWE CAN CONTINUE TO BE HERE WHEN PEOPLE NEED US MOST. THE ORGANIZATION NOTIFIES PATIENTS OF FINANCIAL ASSISTANCE POLICY UPON ADMISSION AND DISCHARGE. IN ADDITION, THE PATIENTS RECEIVE INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. PATIENTS ARE CONTACTED MULTIPLE TIMES ABOUT UNPAID BALANCES PRIOR TO INITIATING ANY COLLECTION ACTION. IF A PATIENT IS DETERMINED TO BE ELIGIBLE FOR FINANCIAL ASSISTANCE AT ANY TIME DURING THE COLLECTION PROCESS, THE ACCOUNT IS RECLASSIFIED AS FINANCIAL ASSISTANCE AND DEBT COLLECTION EFFORTS ARE CEASED. PART VI, LINE 2: PART OF OUR ORGANIZATIONAL MISSION TO RESPOND TO THE HEALTH NEEDS OF THE PEOPLE AND COMMUNITIES WE SERVE, HOLY ROSARY HEALTHCARE (HRH) TAKES STEPS TO DETERMINE WHERE THERE IS THE MOST NEED IN ORDER TO PROVIDE THE GREATEST GOOD. HRH HAS REGULARLY INITIATED THEIR COMMUNITY HEALTH NEEDS ASSESSMENT SURVEYS TO IDENTIFY THE ONGOING AND CHANGING NEEDS OF THE COMMUNITY.HRH CONTINUOUSLY ASSESSES THE NEEDS OF THE COMMUNITY THROUGH CLOSE WORKING RELATIONSHIPS AND PARTNERSHIPS WITH SERVICE AGENCIES IN THE COMMUNITY. HRH ADMINISTRATION IS VERY INVOLVED IN THE MILES CITY AREA ECONOMIC DEVELOPMENT COUNCIL AND THE SOUTHEAST MONTANA ECONOMIC DEVELOPMENT CENTER, LEADERSHIP MONTANA AND MILES CITY COMMUNITY COLLEGE AND NURSING PROGRAM. OUR STRATEGIC PLANNING DIVISION ALSO CONSIDERS STATE AND COUNTY HEALTH STATISTICS, HEALTHY PEOPLE 2020, AND SOCIAL DETERMINANTS OF HEALTH, AS WELL AS THE NEEDS SHARED BY OUR PATIENTS AND COMMUNITY AT LARGE IN THE DEVELOPMENT PROCESS. IN 2016 HRH WAS INVITED TO JOIN A COMMITTEE TO ADDRESS THE TRANSPORTATION ISSUES FOR THE ELDERLY, HANDICAPPED AND LOW INCOME CITIZENS BY THE COUNCIL ON AGING. THE COMMITTEE WAS FORMED TO ADDRESS THE ACCESS TO MEDICAL CARE LIMITATIONS IN OUR COMMUNITY AND TO BILLINGS. THERE IS CURRENTLY VERY LIMITED TRANSPORTATION TO MEET THIS NEED. OUR CITIZENS RELY SOLEY ON TAXI SERVICE OR NEIGHBORS. IN MEETING THIS NEED, HRH DOES PROVIDE COMMUNITY BENEFIT FUNDS TO SUPPORT SOME OF THESE TRANSPORTATION NEEDS THROUGH TAXI VOUCHERS. PART VI, LINE 3: THE ORGANIZATION NOTIFIES PATIENTS ABOUT THE FINANCIAL ASSISTANCE POLICY UPON ADMISSION AND PRIOR TO DISCHARGE. NOTICES ABOUT THE FINANCIAL ASSISTANCE POLICY ARE DISPLAYED THROUGHOUT THE HOSPITAL. IN ADDITION, PATIENTS RECEIVE INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. THE FINANCIAL ASSISTANCE POLICY AND APPLICATION ARE POSTED ON THE HOSPITAL'S WEBSITE. THE POLICY AND APPLICATION ARE ALSO AVAILABLE UPON REQUEST. THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN, PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS. PART VI, LINE 4: LOCATED IN EASTERN MONTANA, HOLY ROSARY HEALTHCARE IS A FEDERALLY-DESIGNATED CRITICAL ACCESS HOSPITAL PROVIDING CARE TO THE COMMUNITIES OF MILES CITY, MONTANA, AND THE SURROUNDING AREAS. HOLY ROSARY IS THE LARGEST HEALTHCARE FACILITY BETWEEN BILLINGS, MONTANA, AND BISMARCK, NORTH DAKOTA, AND PROVIDES A COMPLETE CONTINUUM OF CARE THROUGH OUR 25-BED ACUTE CARE HOSPITAL, 90-BED EXTENDED CARE LIVING COMMUNITY, OUTPATIENT MEDICAL ARTS CENTER, HOSPICE AND PALLIATIVE CARE PROGRAMS AND REHABILATION.WHILE THE ORGANIZATION DRAWS PATIENTS FROM A 13-COUNTY REGION, HOLY ROSARY'S PRIMARY AND SECONDARY SERVICE AREAS INCLUDE A NINE-COUNTY CORE REGION WITH APPROXIMATELY 45,000 PEOPLE. HOLY ROSARY PROVIDES OVER 60% OF ITS INPATIENT CARE TO PATIENTS LIVING IN THE CITY OF MILES CITY, FOLLOWED BY A HIGH CONCENTRATION OF PATIENTS ORIGINATING FROM THE COMMUNITIES OF BAKER, GLENDIVE AND FORSYTH. COMBINED, PATIENTS FROM MILES CITY AND THESE THREE OTHER COMMUNITIES REPRESENT ABOUT FOUR FIFTHS OF HOLY ROSARY'S DISCHARGES. THE PRIMARY SERVICE AREA IS COMPRISED OF 10 ZIP CODES COMPRISING CUSTER COUNTY (4 ZIP CODES) AND PORTIONS OF ROSEBUD COUNTY (4 ZIP CODES) AND PRAIRIE COUNTY (2 ZIP CODES). THE SECONDARY SERVICE AREA IS REPRESENTED BY ANOTHER 10 ZIP CODES AND INCLUDES PORTIONS OF DAWSON COUNTY (2 ZIP CODES), FALLON COUNTY (3 ZIP CODES), GARFIELD COUNTY (2 ZIP CODES), POWDER RIVER COUNTY (2 ZIP CODES) AND PRAIRIE COUNTY (1 ZIP CODE).WITHIN HOLY ROSARY'S PRIMARY SERVICE AREA THERE ARE THREE CRITICAL ACCESS HOSPITALS. HOLY ROSARY, ROSEBUD HEALTH CARE CENTER LOCATED IN FORSYTH (A NOT-FOR-PROFIT INSTITUTION) AND PRAIRIE COMMUNITY HOSPITAL LOCATED IN TERRY (GOVERNMENT OWNED). THERE ARE TWO CRITICAL ACCESS HOSPITALS IN THE SECONDARY SERVICE AREA, GLENDIVE MEDICAL CENTER (NOT-FOR-PROFIT) LOCATED IN GLENDIVE AND GARFIELD COUNTY HEALTH CENTER (GOVERNMENT OWNED) LOCATED IN JORDAN. FOR MORE SPECIALIZED HEALTHCARE NEEDS, IT IS COMMON FOR PATIENTS IN THESE SERVICE AREAS TO TRAVEL THE 150 MILES TO BILLINGS TO SEEK CARE AT ANOTHER ONE OF OUR SCL FACILITIES IN BILLINGS, ST. VINCENT HOSPITAL AND/OR THE BILLINGS CLINIC. THE HOLY ROSARY HEALTHCARE SERVICE AREA ENCOMPASSES 29,449.31 SQUARE MILES AND HOUSES A TOTAL POPULATIOM OF 40,754. THE DEMOGRAPHIC MAKE-UP OF OUR PRIMARY AND SECONDARY SERVICE AREAS INCLUDES:- IN THE HRH SERVICE AREA, 23.1% OF THE POPULATION ARE INFANTS, CHILDREN OR ADOLESCENTS (AGE 0-17); ANOTHER 59.6% ARE AGE 18 TO 64, WHILE 17.3% ARE AGE 65 AND OLDER. (THE PERCENTAGE OF OLDER ADULTS (65+) IS HIGHER THAN FOUND STATEWIDE OR NATIONALLY.) - IN LOOKING AT RACE INDEPENDENT OF ETHNICITY (HISPANIC OR LATINO ORIGIN), 98.4% OF RESIDENTS OF HRH SERVICE AREA ARE WHITE AND 1.3% ARE NATIVE AMERICAN. A TOTAL OF 2.2% OF SERVICE AREA RESIDENTS ARE HISPANIC OR LATINO. - AMONG THE HRH SERVICE AREA POPULATION AGE 25 AND OLDER, AN ESTIMATED 9.8% (OVER 2,746 INDIVIDUALS) DO NOT HAVE A HIGH SCHOOL DIPLOMA. (THIS IS SLIGHTLY LESS FAVORABLE THAN FOUND STATEWIDE).- THE LATEST CENSUS ESTIMATE SHOWS 14.9% OF THE HRH SERVICE AREA POPULATION LIVING BELOW THE FEDERAL POVERTY LEVEL. IN ALL, 35.4% OF SERVICE AREA RESIDENTS (AN ESTIMATED 14,000 INDIVIDUALS) LIVE BELOW 200% OF THE FEDERAL POVERTY LEVEL.- OVERALL HEALTH STATUS SHOWS A TOTAL OF 16.0% OF HRH SERVICE AREA ADULTS RATE THEIR OVERALL HEALTH AS "FAIR OR "POOR". (THIS IS LESS FAVORABLE THAN STATEWIDE FINDINGS).- OVERALL FLAT POPULATION CHANGES. - LARGE GEOGRAPHIC AREA WITH SPARSE POPULATION, AVERAGING 1.4 PEOPLE/SQUARE MILE.- PRIMARY INDUSTRIES ARE AGRICULTURE, STATE/LOCAL GOVERNMENT, AND RETAIL. - AVERAGE HOUSEHOLD INCOME IS $51,000, WHICH IS $17,000 BELOW THE NATIONAL AVERAGE. PART VI, LINE 5: OUR MISSION STATEMENT "WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE." IS WHAT WE STRIVE TO CARRY OUT IN ALL OF OUR ACTIVITIES, BOTH WITHIN OUR FACILITY AND IN OUR COMMUNITY.THE MOST SIGNIFICANT EXPENSE IN HEALTH CARE SUPPORT SERVICES CONTINUES TO BE THE COST OF PHYSICIAN RECRUITMENT TO OUR MEDICALLY UNDERSERVED AREA. WE WERE ABLE TO RECRUIT 2 MEDICAL INTERNISTS, ADD 2 VISITING SPEACIALISTS AND PROVIDE TELE-MED SERVICES FOR SPECIALIST AND LONG DISTANCE FOLLOW UP CARE. WE ARE ALSO INVOLVED IN MANY COMMUNITY ORGANIZATIONS THAT VARY IN SCOPE INCLUDING CRITICAL INCIDENT STRESS MANAGEMENT, COMMUNITY HEALTH ALLIANCE (WHICH PARTNERS WITH ALL LOCAL HEALTH ORGANIZATIONS TO CREATE COMMUNITY HEALTH IMPROVEMENT),MILES COMMUNITY COLLEGE AND NURSING PROGRAM(CLINICAL SITE, MONTANA HEALTH NETWORK, AND OTHER CIVIC MINDED ORGANIZATIONS). WE ARE AN IMPORTANT PART OF OUR COMMUNITY AND SERVE IN MANY WAYS, FROM DELIVERING CORE HEALTH CARE TO PREVENTIVE CARE TO SUPPORT OF OTHER CIVIC GROUPS. OUR BOARD OF DIRECTORS INCLUDES MEDICAL AND BUSINESS PROFESSIONALS WHO LIVE AND WORK IN OUR COMMUNITY AND WHO ARE NOT EMPLOYEES OF HOLY ROSARY. ALL PROVIDE HOURS OF SERVICE IN SUPPORT OF OUR HOSPITAL. THEY ARE DEEPLY INVOLVED IN OUR NEEDS ASSESSMENT PROCESS, BUILDING PROGRAMS AND SERVICES, AND COMMUNITY OUTREACH TO ENSURE THAT PEOPLE KNOW ABOUT SERVICES AVAILABLE TO THEM THROUGH OUR HOSPITAL. WHEN HOLY ROSARY HAS EXCESS REVENUE OVER OPERATING EXPENSES, WE USE THOSE FUNDS TO OBTAIN CURRENT HEALTH CARE TECHNOLOGIES AND EQUIPMENT, IMPROVE PATIENT CARE, PROVIDE MEDICAL TRAINING EDUCATION AND RESEARCH, AND TO EXPAND ACCESS POINTS OF CARE. THESE INVESTMENTS ENSURE WE'LL BE HERE TO CARE FOR FUTURE GENERATIONS. WE ALSO SUPPORT OUR EMPLOYEES BY ENCOURAGING THEM TO VOLUNTEER WITH COMMUNITY ORGANIZATIONS, INCLUDING SERVING ON COMMUNITY BOARDS, AND PROVIDE OPPORTUNITIES FOR THEM TO SUPPORT CAUSES THROUGH HOSPITAL EVENTS SUCH AS FOOD DRIVES, RELAY FOR LIFE (AMERICAN CANCER SOCIETY), SCHOOL SUPPLY DRIVES FOR LOCAL NEEDY CHILDREN, AND MANY OTHERS. HRH EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY.WE ARE GOOD CITIZENS BY PARTNERING WITH OTHER ORGANIZATIONS AND AGENCIES TO SUPPORT OUR COMMUNITY. HOLY ROSARY IS REPRESENTED ON A NUMBER OF COMMUNITY-BASED ORGANIZATIONS AND BOARDS INCLUDING MILES CITY AREA ECONOMIC DEVELOPMENT, KIWANIS, EASTERN MONTANA INDUSTRIES, EASTERN MONTANA AREA HEALTH EDUCATION, CUSTER COUNTY COMMUITY TABLE, AMERICAN CANCER SOCIETY, RSVP, RELAY FOR LIFE, KEEP AMERICA BEAUTIFUL-MILES CITY CHAPTER, MILES CITY COMMUNITY GARDEN, AND A NUMBER OF ADDITIONAL NOT-FOR-PROFIT, COMMUNITY-FOCUSED, CHARITABLE ORGANIZATIONS. PART VI, LINE 6: THE ORGANIZATION IS A CONTROLLED ENTITY OF THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). SCLHS AND ITS AFFILIATED ENTITIES HAVE A COMMON CALLING AND MISSION: "WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE." WE STRIVE TO PROVIDE HIGH-QUALITY, COMPASSIONATE AND AFFORDABLE HEALTHCARE IN EACH OF OUR HOSPITAL SITES AND THEIR RESPECTIVE COMMUNITY, AS WELL AS IN A VARIETY OF OUTPATIENT SETTINGS AND IN THE HOME. SCLHS IS A FAITH-BASED, NONPROFIT HEALTHCARE ORGANIZATION THAT OPERATES NINE HOSPITALS, TWO SAFETY NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES - COLORADO, KANSAS AND MONTANA. THE HEALTH SYSTEM INCLUDES MORE THAN 15,000 FULL-TIME ASSOCIATES AND MORE THAN 500 EMPLOYED PROVIDERS.AS OUR HEALTH SYSTEM GROWS, WE'RE LEVERAGING THAT GROWTH TO ACHIEVE BENEFITS OF SCALE - IDENTIFYING COST AND OTHER ADVANTAGES THAT WE GAIN DUE TO OUR SIZE. WE'RE ALSO WORKING TO STREAMLINE AND UNIFY OUR SYSTEM-WIDE PROCESSES TO ELIMINATE COSTLY DUPLICATION OF EFFORT. WE ACTIVELY ENCOURAGE OUR PEOPLE TO PURSUE CREATIVE IDEAS THAT IMPROVE EFFICIENCY, SERVICE AND THE OVERALL CARE EXPERIENCE. WHEN OUR ASSOCIATES OR LEADERSHIP TEAMS IDENTIFY BEST PRACTICES IN ANY AREA OF CARE, WE RAPIDLY REPLICATE THOSE ACROSS ALL CARE SITES.THE ORGANIZATION PROMOTES THE HEALTH OF THE COMMUNITY BY DELIVERING DIRECT HIGH QUALITY HEALTHCARE SERVICES THAT ARE RESPONSIVE TO THE NEEDS OF ITS PATIENTS AND THEIR FAMILIES. THIS INCLUDES COORDINATING COMMUNITY BENEFIT PROCESSES, PROVIDING GUIDANCE WITH COMMUNITY NEEDS ASSESSMENTS, AND ESTABLISHING CONSISTENT FINANCIAL ASSISTANCE AND CHARITY CARE POLICIES AND PROCEDURES. ADDITIONALLY, SCLHS BENEFITS AFFILIATES THROUGH QUALITY IMPROVEMENT AND PERFORMANCE EXCELLENCE INITIATIVES; SYSTEM-WIDE INFORMATION TECHNOLOGY IMPLEMENTATION AND INFRASTRUCTURE; STRATEGIC AND OPERATIONS DIRECTION AND OVERSIGHT; SUPPLY CHAIN MANAGEMENT AND PURCHASING; FINANCE ADMINISTRATION AND REVENUE CYCLE SUPPORT, BENEFITS ADMINISTRATION, RISK MANAGEMENT; DISASTER PLANNING AND CRISIS ASSISTANCE, CENTRAL CASH MANAGEMENT AND INVESTMENT, INTERNAL AUDIT, LEGAL SERVICES, TAX SERVICES AND MISSION INTEGRATION. 1 HOLY ROSARY FOUNDATION 2600 WILSON STREET MILES CITY MT 59301 202270238 501(C)(3) 21123 SUPPORT MISSION 1 0 PART I, LINE 2: THE ORGANIZATION KEEPS RECORDS TO SUPPORT THE AMOUNTS PROVIDED OR REASON FOR SUCH SUPPORT. ELIGIBILITY FOR FUNDING IS DETERMINED ON AN INDIVIDUAL BASIS, CONSIDERING THE USE OF THE FUNDS AND HOW THE USE RELATES TO THE ORGANIZATION'S MISSION. X 0 1 0 1 0 0 0 0 0 1 0 STEVE LOVELESS PRESIDENT CEO SVH-MT REG 0 461919 0 71543 0 94782 0 75503 0 21607 0 725354 0 80560 PAUL LEWIS CHIEF EXECUTIVE OFFICER - HRH 0 212085 0 35510 0 12674 0 50174 0 22363 0 332806 0 0 RON OLDFIELD VP FINANCE 0 219715 0 25544 0 71953 0 17370 0 17989 0 352571 0 0 CAROL ENDERLE VP PATIENT CARE SERVICES-HRH 0 150788 0 4047 0 3092 0 17640 0 13201 0 188768 0 0 MARK NICHOLS MD PSO PHYSICIAN CLINIC 369907 0 0 0 20035 0 13250 0 16319 0 419511 0 0 0 JEFFERY WILLIAMS MD PSO PHYSICIAN CLINIC 299329 0 5000 0 4303 0 18744 0 17084 0 344460 0 0 0 DOROTHY BRADBURY MD PSO PHYSICIAN ED 255849 0 5000 0 4824 0 12873 0 8994 0 287540 0 0 0 STEVEN MAERTENS MD PSO PHYSICIAN ED 238043 0 15520 0 5038 0 14800 0 25605 0 299006 0 0 0 LISA CADWELL MD PSO PHYSICIAN CLINIC 201151 0 34200 0 10239 0 16248 0 8994 0 270832 0 0 0 TRAVIS SCHEVING FORMER OFFICER 0 165298 0 12467 0 602 0 27896 0 18113 0 224376 0 0 DARREN WALKER FORMER KEY EMPLOYEE 0 114081 0 23762 0 837 0 30161 0 9892 0 178733 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS THE ORGANIZATION AND RELATED ORGANIZATIONS ALLOW FOR CERTAIN TAX INDEMNIFICATION AND GROSS-UP PAYMENTS IN THE INSTANCES OF RELOCATION. THESE AMOUNTS ARE TREATED AS TAXABLE COMPENSATION. THE INDIVIDUALS THAT RECEIVED TAX GROSS-UP PAYMENTS IN 2016 WERE: CAROL ENDERLE - $897 PART I, LINE 1B TAX INDEMNIFICATION AND GROSS-UP PAYMENTS - WRITTEN POLICY THE ORGANIZATION AND RELATED ORGANIZATIONS DO NOT HAVE A FORMAL WRITTEN POLICY FOR TAX INDEMNIFICATION AND GROSS-UP PAYMENTS. HOWEVER, BEFORE ANY TAX INDEMNIFICATION AND GROSS-UP PAYMENTS ARE MADE; PROPER APPROVAL FROM THE EMPLOYEE'S MANAGER IS REQUIRED. IN ADDITION, APPROVAL IS ALSO REQUIRED FROM HUMAN RESOURCES. PART I, LINE 3 THE ORGANIZATION'S OFFICERS AND SENIOR MANAGEMENT ARE PAID BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH). COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SCL HEALTH BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. PART I, LINE 4B A RELATED ORGANIZATION PROVIDES NONQUALIFIED DEFERRED COMPENSATION PLANS (NQDC) KNOWN AS SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM (SERP) FOR EXECUTIVES (SENIOR MANAGEMENT) TO COMPENSATE FOR REGULATORY IMPOSED LIMITATIONS IN QUALIFIED RETIREMENT PLANS AND TO PROVIDE A BENEFIT CONSISTENT WITH OTHER NOT FOR PROFIT HEALTH SYSTEMS. THESE PLANS ENABLE THE EXECUTIVE TO EARN BENEFITS DURING EACH YEAR THAT THEY PARTICIPATE. IN 2014, IN AN EFFORT TO REDUCE LONG-TERM COST AND HAVE GREATER CONTROL OVER FINANCIAL RISK, THE SERP WAS CONVERTED FROM A DEFINED BENEFIT (DB) TO A DEFINED CONTRIBUTION (DC) DESIGN. CERTAIN MEMBERS OF SENIOR MANAGEMENT WHOSE BENEFITS WERE CONVERTED FROM DB TO DC WOULD HAVE BEEN DISPROPORTIONATELY AND NEGATIVELY AFFECTED BY THE CHANGE, SO THE COMMITTEE DETERMINED IT WOULD BE APPROPRIATE TO GRANT "TRANSITION CREDITS" IN ORDER TO MITIGATE THE NEGATIVE IMPACT OF THE CHANGE ON THEIR RETIREMENT BENEFITS. THIS IS A COMMON APPROACH EMPLOYED BY OTHER ORGANIZATIONS UNDERGOING A SIMILAR TRANSITION. THE TRANSITION CREDITS VEST IN ACCORDANCE WITH THE TERMS OF THE DC SERP (I.E., AFTER THREE YEARS) AND ARE PAID TO THE EXECUTIVE UPON VESTING. NQDC SERP PLANS PRIOR TO 2014 PRIOR TO 2014, THE RELATED ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS 5 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN AFTER DECEMBER 31, 2013. THE RELATED ORGANIZATION HAS DETERMINED THAT THESE BENEFITS SHOULD BE SUBJECT TO TAXATION AS THE AMOUNTS ARE VESTED RATHER THAN WHEN THEY ARE RECEIVED. AS A RESULT, THE TOTAL NONQUALIFIED RETIREMENT PLAN BENEFITS, WHICH WERE VESTED IN THE CURRENT YEAR, ARE CONSIDERED TAXABLE AND THUS WERE TAXED TO THE PARTICIPANTS. FOR SOME OF THE PARTICIPANTS, AN AMOUNT EQUAL TO THE PARTICIPANT'S EXPECTED INCOME TAX LIABILITY WAS WITHDRAWN FROM THE PARTICIPANT'S ACCOUNT AND REMITTED TO THE FEDERAL AND STATE GOVERNMENTS AS WITHHOLDING ON THE TAXABLE BENEFIT. NO CASH PAYMENT IS MADE DIRECTLY TO THE PARTICIPANT AND THE REMAINING BENFIT AMOUNT STAYS IN THE RETIREMENT PLAN. THE AMOUNTS WITHDRAWN FROM THE PLAN FOR TAXES IN 2016 WERE: STEVE LOVELESS - $36,382. FOR AMOUNTS CONTRIBUTED TO THE NQDC SERP PLAN PRIOR TO 2014, VESTED AMOUNTS ARE PAYABLE UPON THE END OF EMPLOYMENT. THE VESTED AMOUNTS WITHDRAWN INCLUDE AMOUNTS PREVIOUSLY TAXED TO THE RECIPIENT AND AMOUNTS TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. NQDC SERP PLANS STARTING IN 2014 STARTING IN 2014, THE RELATED ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS ROLLING 3 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN BEFORE JANUARY 1, 2014. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. STARTING IN 2014, FOR CONTRIBUTIONS TO THE NQDC SERP PLAN, CERTAIN PARTICIPANTS ARE VESTED OR BECAME VESTED IN THE PLAN DURING 2016. VESTED AMOUNTS ARE PAYABLE TO THE RECIPIENT. THE VESTED AMOUNTS ARE TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. THE AMOUNTS WITHDRAWN FROM THE NQDC SERP PLANS IN 2016 WERE: RON OLDFIELD -$67,854. IN ACCORDANCE WITH THE REQUIREMENTS OF SCHEDULE J, DEFERRED COMPENSATION EARNED OVER THE VESTING PERIOD IS REPORTED IN COLUMN C AND ANY AMOUNTS VESTED/PAID FROM A DEFERRED COMPENSATION PLAN ARE REPORTED IN COLUMN B(III). THUS, THE SAME AMOUNT WOULD BE REPORTED TWICE (FIRST WHEN IT ACCRUED DURING THE VESTING PERIOD AND AGAIN WHEN IT IS VESTED/PAID). THIS RESULTS IN THE APPEARANCE OF CERTAIN EXECUTIVES RECEIVING MORE THAN THEY ARE ACTUALLY PAID FROM THE DEFERRED COMPENSATION PLANS. COLUMN F IS INTENDED TO RECONCILE THIS DUPLICATION (BY REPORTING AMOUNTS INCLUDED IN COLUMN B(III) THAT HAD BEEN REPORTED AS DEFERRED COMPENSATION ON A SCHEDULE J FOR A PREVIOUS YEAR). HOWEVER, THE SIGNIFICANCE OF THE AMOUNTS LISTED IN COLUMN F IS OFTEN OVERLOOKED AND GIVEN THE COMPLEXITY OF THE SCHEDULE J REPORTING REQUIREMENTS, THE AMOUNTS SHOWN ARE EASILY MISUNDERSTOOD. TO DETERMINE TOTAL AMOUNT EARNED (RATHER THAN THE AMOUNT VESTED/PAID OUT) DURING THE YEAR, SUBTRACT THE AMOUNT IN COLUMN F FROM COLUMN E. PART I, LINE 7 THE AT RISK COMPENSATION PLAN WAS ESTABLISHED TO ENABLE THE HEALTH CARE SYSTEM AND ITS CARE SITES TO ATTRACT AND ENGAGE QUALIFIED LEADERS AND TO PROVIDE SUCH LEADERS WITH AN ADDITIONAL PERFORMANCE COMPENSATION OPPORTUNITY TO PROMOTE AND FURTHER ITS CHARITABLE MISSION, VISION, STRATEGIC PRIORITIES AND KEY INITIATIVES. THE PLAN OPERATES ON A CALENDAR-YEAR BASIS AND IS FUNDED EACH YEAR BY MEETING THRESHOLD LEVELS OF OPERATING INCOME. TARGET AWARD AMOUNTS ARE A PERCENTAGE OF LEADERS' BASE PAY AS DETERMINED BY THEIR SPECIFIC ROLE AT THE HEALTH CARE SYSTEM. ACTUAL AWARDS ARE PAID OUT BASED ON ATTAINMENT OF BOARD APPROVED GOALS, INCLUDING OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. AWARDS ARE BASED ON THE BOARD'S DETERMINATION ON HOW WELL THE HEALTH CARE SYSTEM PERFORMS RELATIVE TO THE PLAN'S STATED PERFORMANCE STANDARDS AND THE WEIGHT GIVEN TO EACH OF THE PERFORMANCE MEASURES AS DEFINED FOR THAT PLAN YEAR. THE AT RISK COMPENSATION PLANS ARE BASED ON A COMBINATION OF PERFORMANCE MEASURES. PERFORMANCE MEASURES INCLUDE OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. THE AT RISK COMPENSATION PLAN SHALL BE INTERPRETED, APPLIED AND ADMINISTERED AT ALL TIMES IN ACCORDANCE WITH CODE SECTION 409A AND GUIDANCE ISSUED THEREUNDER. THE HEALTH CARE SYSTEM RESERVES THE RIGHT TO AMEND OR TERMINATE THIS PLAN AT ANY TIME FOR ANY REASON. ADDITIONAL OFFICER AND BOARD DISCLOSURES THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) AND RELATED TAX EXEMPT ORGANIZATIONS CONSISTS OF NINE HOSPITALS, NINE FOUNDATIONS, TWO SAFETY-NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES. SCLHS AND RELATED TAX EXEMPT ORGANIZATIONS ADHERE TO GOVERNANCE EXCELLENCE STANDARDS INCLUDING TRANSPARENCY AND ACCOUNTABILITY. IN KEEPING WITH SCLHS' CORE VALUE OF STEWARDSHIP, NO BOARD MEMBER SERVING ON THE BOARD OF DIRECTORS (BOARD) IS COMPENSATED FOR THAT SERVICE. SCLHS' BOARD COMPENSATION COMMITTEE (COMMITTEE) HAS RETAINED THE SERVICES OF AN INDEPENDENT COMPENSATION ADVISOR. THE COMPENSATION ADVISOR IS RESPONSIBLE FOR ADVISING THE COMMITTEE ON ALL MATTERS RELATING TO EXECUTIVE COMPENSATION INCLUDING SUPPORTING THE COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. THE SISTERS WHO SERVE AS OFFICERS AND/OR BOARD MEMBERS ARE MEMBERS OF THE SISTERS OF CHARITY OF LEAVENWORTH (A RELIGIOUS ORDER OF WOMEN). THE SISTERS HAVE TAKEN VOWS OF POVERTY AND RECEIVE NO COMPENSATION, EXPENSE ACCOUNT ALLOWANCE, OR CONTRIBUTIONS TO BENEFIT PLANS FOR THEIR SERVICES TO THE HEALTH CARE SYSTEM. HOWEVER, A PAYMENT IS MADE DIRECTLY TO THE SISTERS OF CHARITY OF LEAVENWORTH FOR THE SERVICES OF THOSE WHO PERFORM PROFESSIONAL, ADMINISTRATIVE, AND OTHER SUCH SERVICES. LISA CADWELL HIGHEST PAID EMPLOYEE RETENTION LOAN X 24458 7890 0 1 1 7890 STEPHANIE THOMASON SEE PART V 60467 EMPLOYMENT 0 FORM 990, SCHEDULE L, PART IV DERRICK RODGERS (BOARD MEMBER), IS THE BROTHER IN LAW OF STEPHANIE THOMASON, AN EMPLOYEE OF HOLY ROSARY HEALTHCARE. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) IS THE SOLE MEMBER OF HOLY ROSARY HEALTHCARE. FORM 990, PART VI, SECTION A, LINE 7A POWER TO ELECT OR APPOINT MEMBERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC., THE SOLE MEMBER OF HOLY ROSARY HEALTHCARE, APPROVES MEMBERS OF HOLY ROSARY HEALTHCARE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS RESERVED TO MEMBERS OR STOCKHOLDERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) HAS CERTAIN RESERVE POWERS TO APPROVE CHANGES TO THE ARTICLES OF INCORPORATION AND THE BYLAWS INCLUDING THE APPOINTMENT OR REMOVAL OF BOARD MEMBERS AND THE PRESIDENT/CEO. SCLHS ALSO HAS CERTAIN RESERVE POWERS OVER ANY CHANGE IN OWNERSHIP OF THE CORPORATION, CHANGE IN MISSION, ACQUISITION OF ASSETS, DISPOSAL OF ASSETS, LEASING OF ASSETS, INCURRENCE OF DEBT, MERGER OR DISSOLUTION, APPROVAL OF STRATEGIC PLANS AND BUDGETS, APPOINTMENT OF AUDITORS AND OVERSIGHT AND APPROVAL OF COMPENSATION AND BENEFITS FOR DIRECTORS, OFFICERS, KEY EMPLOYEES AND PHYSICIANS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE TAX DEPARTMENT OF THE PARENT ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). THE FORM 990 IS REVIEWED BY CERTAIN MEMBERS OF SENIOR MANAGEMENT. A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO THE FILING OF THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. ANY QUESTIONS ARE ADDRESSED TO THE TAX DIRECTOR OF SCLHS PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY HOLY ROSARY HEALTHCARE AND THE PARENT ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (COLLECTIVELY REFERRED TO AS SCL HEALTH), REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES ITS CONFLICT OF INTEREST POLICY BY PROVIDING EDUCATION AND TRAINING FOR ITS EMPLOYEES, STAFF, OFFICERS AND DIRECTORS. PERSONS CONSIDERED TO BE IN AN INFLUENTIAL POSITION, SUCH AS BOARD MEMBERS, OFFICERS, PHYSICIANS, EXECUTIVES AND MANAGERS ARE ALL REQUIRED TO COMPLETE A CONFLICT OF INTEREST STATEMENT ON AN ANNUAL BASIS TO DISCLOSE ANY POTENTIAL CONFLICT ISSUES. THESE STATEMENTS ARE CAREFULLY REVIEWED BY THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT AND APPROPRIATE LEADERSHIP. A REPORT IS PROVIDED TO SCLHS' PRESIDENT/CEO AND THE BOARD OF DIRECTORS. THE BUSINESS AND AFFAIRS OF SCL HEALTH WILL AT ALL TIMES BE CONDUCTED IN A MANNER THAT IS SOLELY IN THE BEST INTERESTS OF SCL HEALTH AND NOT BE INFLUENCED BY CONFLICTING INTERESTS OF PERSONS RESPONSIBLE FOR ADMINISTERING THOSE AFFAIRS. THE EXISTENCE OF ANY CONFLICTS OF INTEREST WILL BE DISCLOSED AND THE PROCEDURES SET FORTH HEREIN WILL BE FOLLOWED. CERTAIN TRANSACTIONS SUGGESTIVE OF A CONFLICT OF INTEREST ARE PROHIBITED. ANY PERSON IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER SCL HEALTH IS CONSIDERED AN INTERESTED PERSON. THIS TERM INCLUDES, BUT IS NOT LIMITED TO THE FOLLOWING: - BOARD MEMBERS, BOARD COMMITTEE MEMBERS, OFFICERS AND DIRECTORS; - SENIOR LEADERS AND EXECUTIVES (CEO, PRESIDENT, SVP, VP, EXECUTIVE DIRECTORS); - EMPLOYED PHYSICIANS AND PHYSICIANS IN MEDICAL STAFF LEADERSHIP ROLES (E.G., DEPARTMENT CHAIRS, MEMBERS OF MEDICAL STAFF COMMITTEES); - MEDICAL DIRECTORS OF CLINICAL PROGRAMS THAT ASSESS, REVIEW, RECOMMEND OR REQUEST PURCHASE OF ANY SPECIFIC PHARMACEUTICAL PRODUCTS, MEDICAL DEVICES, SUPPLIES AND/OR EQUIPMENT; - DEPARTMENT DIRECTORS AND MANAGERS; AND - OTHER SELECT INDIVIDUALS IDENTIFIED BY LEADERSHIP WHICH MAY INCLUDE, BUT IS NOT LIMITED TO, SUPPLY CHAIN AND FINANCE. UPON BECOMING AN INTERESTED PERSON AND ON AN ANNUAL BASIS, INTERESTED PERSONS ARE REQUIRED TO DISCLOSE ANY RELATIONSHIPS THAT CONSTITUTE OR MIGHT LEAD TO A CONFLICT OF INTEREST BY COMPLETING THE CURRENT CONFLICT OF INTEREST AND GIFT DISCLOSURE STATEMENT ("STATEMENT") AS APPROVED BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER. THE CHIEF INTEGRITY AND COMPLIANCE OFFICER WILL OVERSEE THE REVIEW OF THE STATEMENTS AND THE RESOLUTION OF ANY IDENTIFIED CONFLICTS OF INTEREST AND ALERT THE SCL HEALTH CEO AND/OR THE CHAIR OF THE SCL HEALTH BOARD OF DIRECTORS TO ANY ITEMS OF CONCERN. WHEN AN INTERESTED PERSON BECOMES AWARE OF A CONFLICT OF INTEREST WHICH HAS NOT BEEN DISCLOSED ON A STATEMENT, HE OR SHE SHALL CONTACT THE LOCAL COMPLIANCE AND PRIVACY OFFICER OR THE CHIEF INTEGRITY AND COMPLIANCE OFFICER, OBTAIN A STATEMENT FORM, COMPLETE AND RETURN IT TO THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT. WHENEVER AN INTERESTED PERSON BECOMES AWARE THAT AN ARRANGEMENT WITH RESPECT TO WHICH HE OR SHE HAS A CONFLICT OF INTEREST IS BEING CONSIDERED, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS CONCERNING THE EXISTENCE AND NATURE OF THE CONFLICT OF INTEREST TO HIS OR HER SUPERVISOR (IF AN EMPLOYEE OTHER THAN THE ORGANIZATIONS SCL HEALTH CEO) OR TO THE APPLICABLE BOARD OR COMMITTEE CHAIR (IF THE SCL HEALTH CEO OR A BOARD OR COMMITTEE MEMBER), EVEN IF THE CONFLICT OF INTEREST HAS BEEN PREVIOUSLY DISCLOSED. WITH REGARD TO EMPLOYEES OTHER THAN THE SCL HEALTH CEO, THE INTERESTED PERSON'S SUPERVISOR WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. WITH REGARD TO THE SCL HEALTH CEO AND BOARD OR COMMITTEE MEMBERS, THE REMAINING MEMBERS OF THE BOARD OR COMMITTEE WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. PERSON(S) RESPONSIBLE FOR THE DETERMINATION SHOULD OBTAIN FURTHER GUIDANCE FROM THE SCL HEALTH INTEGRITY AND COMPLIANCE OR LEGAL DEPARTMENTS. UPON MAKING HIS OR HER DISCLOSURE, THE INTERESTED PERSON WILL LEAVE THE MEETING OR OTHERWISE REMOVE HIM OR HERSELF FROM THE DELIBERATIONS OR OTHER DECISION-MAKING PROCESS UNTIL SUCH TIME AS A DETERMINATION IS REACHED. IF A DETERMINATION HAS BEEN MADE THAT NO CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON MAY BE PRESENT AND PARTICIPATE IN THE DELIBERATION REGARDING THE TRANSACTION OR ARRANGEMENT. HOWEVER, IF AN INTERESTED PERSON HAS BEEN DETERMINED TO HAVE A CONFLICT OF INTEREST, HE OR SHE MAY NOT PARTICIPATE IN THE DELIBERATION OR DECISION REGARDING THE TRANSACTION OR ARRANGEMENT; BE PRESENT DURING THE DELIBERATION OR DECISION-MAKING; OR BE ALLOWED TO MAKE A PRESENTATION PRIOR TO THE DELIBERATION AND DECISION-MAKING ACTIVITIES. WHEN AN INTERESTED PERSON HAS A CONFLICT OF INTEREST, THE DECISION-MAKER/DECISION-MAKING BODY CONSIDERING THE TRANSACTION OR ARRANGEMENT WILL TAKE REASONABLE MEASURES, PRIOR TO APPROVING OR ENTERING INTO THE TRANSACTION OR ARRANGEMENT, TO ENSURE THAT THE PROPOSAL IS IN SCL HEALTH'S BEST INTERESTS. THE PROPOSED TRANSACTION OR ARRANGEMENT MAY PROCEED IF THE DECISION-MAKER/DECISION-MAKING BODY, AFTER HAVING BEEN FULLY INFORMED OF THE MATERIAL FACTS ESTABLISHING THE CONFLICT OF INTEREST, DETERMINES THAT THE TRANSACTION OR ARRANGEMENT IS IN SCL HEALTH'S BEST INTERESTS AND IS FAIR AND REASONABLE. A MAJORITY VOTE OF THE DISINTERESTED DECISION-MAKERS IS REQUIRED WHEN A DETERMINATION IS MADE BY A BOARD, COMMITTEE OR OTHER DECISION-MAKING BODY. MANAGEMENT OF POTENTIAL CONFLICTS IS DONE BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER AND/OR CARE SITE COMPLIANCE AND PRIVACY OFFICERS AND REPORTED ANNUALLY TO THE CARE SITE LEADERSHIP COMMITTEES AND/OR EXECUTIVE INTEGRITY AND COMPLIANCE COMMITTEE, THE AUDIT COMMITTEE, ORGANIZATIONAL INTEGRITY AND COMPLIANCE COMMITTEE OF THE SCL HEALTH BOARD OF DIRECTORS. ANY REPORTED CONFLICTS OR POTENTIAL CONFLICTS WILL ALSO BE REPORTED TO AND REVIEWED BY THE SCL HEALTH TAX DIRECTOR FOR COMPLIANCE WITH THE FORM 990 TAX RETURN. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S OFFICERS AND SENIOR MANAGEMENT ARE PAID BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH). COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SCL HEALTH BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THE ORGANIZATION MAKES ITS CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS, AND GOVERNING DOCUMENTS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: EQUITY TRANSFER - INTEREST EXPENSE IN EXCESS OF INTEREST INCOME -248,344. 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