2017-11-08T10:28:03-06:00 2016-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2016-01-01 474717998 Bozeman Health Deaconess Hospital BOZE 4065855000 915 Highland Blvd Bozeman MT 59715 Gordon Davidson VP Finance/CFO 4065855000 2017-10-26 1 Kim Hunwardsen CPA P00484560 6122536500 2017-10-26 72.175.213.18 2017-10-26 08:10:07 MD P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 B1517DAAED479AA3B0236E79C14EA2E11B9BE589 2016 2018-03-14 21:41:22Z X Gordon Davidson 915 Highland Blvd Bozeman MT 59715 267891340 0 X www.bozemanhealth.org X 2015 MT To improve community health and quality of life for residents and visitors of Southwest Montana. 11 10 1969 268 2405306 -233028 1292727 261374289 1049017 465897 264181930 60000 0 81429704 0 0 173581261 255070965 9110965 342535998 91037890 251498108 X To improve community health and quality of life. 1 0 67768505 61212074 The Bozeman Health Deaconess Hospital Health Group consists of our departments that provide physician services to outpatients. The number of Medicare and Medicaid patients seen in 2015 increased from about 42% of total visits in 2015 to 45% of total visits in 2016. Revenue for these patients totaled 50% of all clinic revenue. Total net operating revenues were $61,212,074 with associated operating expenses of $67,768,505. The loss of $6,556,431 is reflective of our commitment to provide access to all patients regardless of their ability to pay. 28139530 46875113 Bozeman Health Deaconess Hospital's Surgical Services strives to offer a wide array of surgical options using state of the art technology. Of the 8,254 inpatient and outpatient surgeries, about 47% were Medicare and Medicaid patients, which comprised 49% ($36,728,116) of total revenue from these services ($75,622,044). Over 57% of the Medicare/Medicaid revenues were unreimbursed ($21,083,912) and written off, along with another $7,663,019 from other payors. Our surgical services also recorded $23,679,045 in operating expenses plus another $4,460,485 of indirect overhead. 11676496 14809241 The Emergency Room at Bozeman Health Deaconess Hospital is one of the busiest departments in our organization, with just over 32,000 visits in 2016. Approximately 42% of these visits were from Medicare and Medicaid patients, comprising $12,222,187 of the $28,345,610 gross revenue. Almost 59% of the Medicare/Medicaid revenue were unreimbursed ($7,177,202) and written off, along with 39% of the remaining revenue ($6,359,167). Direct and indirect expenses incurred in supporting the operation of this emergency room accumulated to $11,676,496. 88274923 60000 137065752 Bozeman Health Deaconess Hospital operates an 86 bed hospital facility (Hospital), along with a 43 unit assisted living home and a 115 unit independent living home (Hillcrest Senior Living or HSL). All patient and resident service revenue from these operations are used to provide health care services, health care promotion, and health care education to Bozeman and the surrounding communities. 88274923 60000 137065752 195859454 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 207 0 1 1969 1 1 1 0 0 0 0 0 0 0 0 0 X 11 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Gordon Davidson 4064141036 915 Highland Blvd Bozeman MT 59715 Julie Jackson Chair 1.00 1.00 X X 0 0 0 Brian Brown 1st Vice Chair 1.00 1.00 X X 0 0 0 Katie Daughenbaugh 2nd Vice Chair 1.00 1.00 X X 0 0 0 Dr Dane Sobek Secretary/Cardiology 1.00 50.00 X X 0 614610 59989 Dennis Munson Treasurer 1.00 1.00 X X 0 0 0 John Murdoch Treasurer (Jan-Jun) 1.00 1.00 X X 0 0 0 Kerri Brown Director 1.00 1.00 X 0 0 0 Jerry Cashman Director 1.00 1.00 X 0 0 0 Rev Dave McConnell Director 1.00 1.00 X 0 0 0 Kerry Petitt Director 1.00 1.00 X 0 0 0 Walt Sales Director 1.00 1.00 X 0 0 0 Robert Watson Director 1.00 1.00 X 0 0 0 John Hill President/CEO (Aug-Dec) 15.00 35.00 X 0 270822 9340 Gordon Davidson Interim CEO (Jan-Aug)/VP Finance/CFO 35.00 15.00 X 0 494253 61385 David Chen MD Interim CEO (Jan-Aug)/CMO 35.00 15.00 X 0 481497 56465 LeRoy Wilson VP Senior Services 50.00 0.00 X 170839 0 27306 Mike Bertagnolli Pharmacy Director 50.00 0.00 X 180410 0 36231 Alan Brayton Pharmacy Supervisor 50.00 0.00 X 168015 0 32409 Rebecca Miller Pharmacy Informatics Specialist 50.00 0.00 X 146870 0 35591 Monica Stewart Pharmacist 50.00 0.00 X 131396 0 23618 797530 1861182 342334 43 0 1 0 Absaroka Emergency Physicians 1184 N 15th Ste 1 Bozeman MT 59715 ER Physicians Fees 854986 Montana Linen Supply LLC 20900 E Frontage Rd Ste A Belgrade MT 59730 Linen Cleaning 802838 Microsoft Licensing One Microsoft Way Redmond WA 98052 Software Licensing 668154 Montana Surgical Clinic PLLC 905 Highland Blvd Ste 4450 Bozeman MT 59715 Physician Services 634581 Comphealth Inc PO Box 972651 Dallas TX 75397 Physician Services 549701 17 1292727 1292727 Net Patient Revenue 622110 251813613 251813613 Pharmacy Revenue 446110 3510137 2106082 1404055 Cafeteria Revenue 722210 1833125 1825071 8054 4217414 3224217 993197 261374289 3961837 3961837 1262487 796590 465897 465897 465897 2858532 54288 -2858532 -54288 -2912820 -2912820 264181930 258968983 2405306 1514914 60000 60000 65419047 58441256 6977791 2736671 2443719 292952 8376246 7479597 896649 4897740 4373453 524287 37596436 37596436 586609 586609 44915881 40095437 4820444 408002 175575 232427 3675149 1334755 2340394 2646855 590877 2055978 395455 344682 50773 263637 229788 33849 1614002 1614002 11646825 11646825 879274 758884 120390 Medical Supplies 50749439 50704052 45387 Provision for Bad Debts 10825540 10825540 Equipment Rental and Ma 5717999 4392600 1325399 Taxes and Licenses 1396772 98289 1298483 263386 250123 13263 255070965 195859454 59211511 0 28014308 39900089 7533366 775520 269092104 135315298 0 133776806 118710946 12993 1798133 0 12013837 0 342535998 20404748 728461 36772878 7591059 20950000 0 4590744 0 91037890 X 242488292 7001740 2008076 0 251498108 0 342535998 X 9110965 4456852 237930291 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 13928221 122889 843418 146615 14747913 0.74020 0.15110 0.10870 0 1 1 3520829 3520829 189766657 89896767 99869890 75319 41071 34248 72475700 45095607 27380093 3253599 281853 2971746 133776806 Estimated Payments to Third Party Payors 465000 Due to Affiliates 4125744 4590744 X Part IV, Line 2b: The organization holds resident funds on behalf of its residents, as well as security deposits. Part V, Line 4: Each endowment fund is privy to a separate agreement. Donations made for each purpose shall be received, held, and invested by Bozeman Health Foundation according to established policies governing gift acceptance, investment, and distribution. The principal of the fund shall be retained in perpetuity. The interest income is utilized for the greatest needs of the designated department. Policy says the organization can use a portion of interest for operations. The endowment fund reported in Line 1 is currently being held by a related organization, Bozeman Health Foundation, and benefits Bozeman Health and related system entities listed on Schedule R. Part X, Line 2: The Organization is a Montana nonprofit corporation and has been recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Internal Revenue Code Section 501(c)(3). The Organization is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, the Organization is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. The Organization files an Exempt Organization Business Income Tax Return (Form 990T) with the IRS to report its unrelated business taxable income. The Organization believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the consolidated financial statements. The Organization would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. 1 1 X 1 X 1 X 1 1 0 1 1 5731290 434481 5296809 0.02170 21265981 12479521 8786460 0.03600 26997271 12914002 14083269 0.05770 196357 139340 57017 0.00020 19269 19269 0.00010 45885062 32434223 13450839 0.05510 146340 146340 0.00060 46247028 32573563 13673465 0.05600 73244299 45487565 27756734 0.11370 1917 1917 0.00000 1917 1917 0.00000 1 10825540 0 42824238 42432737 391501 X 1 1 1 1 Bozeman Health Deaconess Hospital 915 Highland Blvd Bozeman MT 59715 www.bozemanhealth.org 12933 X X X Bozeman Health Deaconess Hospital 1 1 1 0 0 1 X 150.000000000000 250.000000000000 X X X X 1 1 X X X 1 X https://www.bozemanhealth.org/For-Patients-Visitors/Financial-Services X https://www.bozemanhealth.org/For-Patients-Visitors/Financial-Services X https://www.bozemanhealth.org/For-Patients-Visitors/Financial-Services X X X X X X X 1 X 0 X X X X 1 X 0 1 Bozeman Health Deaconess Hospital Part V, Section B, Line 2: Bozeman Health Deaconess Hospital is a new tax-exempt corporation with operations beginning 1/1/16. It is formed under the Bozeman Health system umbrella. Bozeman Health Deaconess Hospital Part V, Section B, Line 13b: Any individual and their dependents who are at 150% of the Federal Poverty income level or below will be eligible to receive a 100% write-off of the self-pay portion of incurred charges, upon completion of an application. Completion of the Financial Assistance application will be required. Catastrophic Financial Assistance is available to individuals who have a large balance remaining after all third party payments have been taken into account. The balance under consideration is that amount which is deemed to be the patient's financial responsibility. If such responsibility is greater than 50% of the family's annual household income, the excess amount will be treated as Catastrophic Financial Assistance and written off of the patient's account. This assistance is available without respect to the FPG, but they must follow the same process as all other patients seeking financial assistance based upon FPG. Asset tests are not used for determining any level of financial assistance. Prior to providing services, BH will make an effort to notify the patient regarding their eligibility for financial assistance. Bozeman Health Deaconess Hospital Part V, Section B, Line 16j: Medical Advocacy Services in Healthcare (MASH) will give out our financial application after determining patient is ineligible for federal and state programs.A summary of the financial assistance policy is attached to billing invoices, posted in patient admissions area, and provided to patient on admission to the hospital facility. Bozeman Health Deaconess Hospital Part V, Section B, Line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for emergency and other medically necessary care. The financial assistance policy does not apply to elective procedures. Therefore, FAP-eligible patients without insurance may be billed gross charges on elective procedures. 3 3 - Hillcrest Senior Living 1201 Highland Blvd Bozeman MT 59715 independent and assisted living facility 4 - Bozeman Health Belgrade Clinic 206 Alaska Frontage Rd Belgrade MT 59714 ambulatory healthcare services 5 - Bozeman Health Clinical Research 950 Stoneridge Dr 1 Bozeman MT 59715 outpatient healthcare research Part I, Line 3c: Any individual and their dependents who are at 150% of the Federal Poverty income level or below will be eligible to receive a 100% write-off of the self-pay portion of incurred charges, upon completion of an application. Completion of the Financial Assistance application will be required. Catastrophic Financial Assistance is available to individuals who have a large balance remaining after all third party payments have been taken into account. The balance under consideration is that amount which is deemed to be the patient's financial responsibility. If such responsibility is greater than 50% of the family's annual household income, the excess amount will be treated as Catastrophic Financial Assistance and written off of the patient's account. This assistance is available without respect to the FPG, but they must follow the same process as all other patients seeking financial assistance based upon FPG. Asset tests are not used for determining any level of financial assistance. Prior to providing services, BH will make an effort to notify the patient regarding their eligibility for financial assistance. Part I, Line 6a: The organization's community benefit report can be found on its website at https://www.bozemanhealth.org/About-Us/Community-Benefit.aspx Part I, Line 7: The cost to charge ratio from Worksheet 2 was used to obtain the costs related to Charity Care, Medicaid, and Other Means-Tested Programs. All net benefit expenses were calculated using direct costs and revenue with reasonable indirect overhead allocation methods. Benefits are allocated at 23% of payroll dollars. For Subsidized Services, other indirect overhead costs are allocated based on historical reasonableness of 15% of total expenses. Our internal system does record patient revenues based on type (inpatient vs. outpatient vs. emergency) and payor (Medicaid, Medicare, Commercial, Self-Pay, etc.). Related costs are then determined based on the pro-rated share as a percentage of the total. For example, if Medicaid comprises 7% of a department's revenue, Medicaid expenses are calculated at 7% of the total as well. Part I, Line 7g: Amount of cost attributable to a physician clinic is $44,552,915. All costs associated with a provider-based clinic operational department were considered part of this total. 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 $ 10,825,540. Part II, Community Building Activities: BHDH is represented through participation in the Bozeman Kiwanis Club, an organization dedicated to community service and improving the holistic health of children. Part III, Line 2: Bad debt is reported at charges as recorded by the organization. Part III, Line 4: The footnote to the organization's financial statements that describes bad debt expense is located in Footnote 1 on page 9 of the attached financial statements. Part III, Line 8: In the current year the Organization had a surplus. In the event there was a shortfall the entire amount of shortfall should be considered a community benefit.The Medicare shortfall represents a cost absorbed by the Hospital as a result of providing care to Medicare patients. The contract driving this loss is a nondiscretionary contract, as is providing the services to this population of individuals. The cost of providing this benefit to the community should be reportable as such. Medicare allowable costs of care are based on the Medicare cost report. The Medicare cost report is completed based on the rules and regulations set forth by Centers for Medicare and Medicaid Services. Part III, Line 9b: Bozeman Health's Financial Assistance Policy explains the patient notification practice that includes providing the patient, either directly or through its contracted collection agency with at least one written notice informing the patient about the Extraordinary Collection Actions that we intend to take if the patient does not submit an Application for Financial Assistance or pay the amount due by at least thirty days following the date of the notice. The notice will include a copy of the plain language summary and will not be mailed or delivered to a patient earlier than 30 days prior to the end of the Notification Period. No Extraordinary Collection Actions will be undertaken during the 120 day Notification Period, during which time we will take reasonable efforts to determine whether the patient is eligible for Financial Assistance. After the 120 day Notification Period, an Extraordinary Collection Action will be undertaken only if the patient has received the 30 day written notice described above. Extraordinary Collection Actions are defined as those actions that may be taken in the event of non-payment following the expiration of the notification period. These may include the reporting of adverse information about the individual to consumer credit reporting agencies or credit bureaus, garnishment of an individual's wages, and/or commencement of a legal civil action against an individual. Part VI, Line 2: Bozeman Health Deaconess Hospital (BHDH) is a newly formed nonprofit corporation, operationally effective January 1, 2016. The Community Health Needs Assessment (CHNA) requirements of this newly formed entity will be conducted by the end of 2017. Prior to this, these hospital operations were conducted under the current sole member, Bozeman Deaconess Health Services d/b/a Bozeman Health. Bozeman Health (BH), together with Gallatin City-County Health Department (GCCHD) and Community Health Partners (CHP), jointly conducted a Community Health Needs Assessment (CHNA) in the fall of 2014, to follow up the same assessment the three organizations jointly conducted back in 2011. The collaboration with GCCHD and CHP in developing the CHNA enabled BH to utilize input from persons with expertise in public health (GCCHD) and leaders of organizations mainly serving medically underserved, low-income and minority populations (CHP). All three organizations provided the financial and in-kind support for the assessment process. In the fall of 2016 and in collaboration with our partners in the Healthy Gallatin Coalition on Nutrition and Physical Activity, BH led an in-depth qualitative study of parents and children in Gallatin County to gain insight into why there is a decrease in healthy weight and behaviors. The objective of this project was to learn and understand what children and families understood about healthy living and behaviors related to it and use the information to develop strategies to reverse the trend. BHDH also reviews surveys completed by health initiative partners such as HRDC. Part VI, Line 3: Bozeman Health Deaconess Hospital (BHDH) is deeply committed to providing financial assistance to patients needing, but unable to afford, medically necessary health care services. BHDH posts notice of its Financial Assistance Policy in all admitting areas, as well as on the website. At the earliest feasible time, BHDH will attempt to determine whether a patient has third party coverage for any part of the hospital services provided. If a patient does not have third party coverage, a patient advocate from the Medical Advocacy Services in Healthcare (MASH) program will screen all inpatient cases and any outpatient cases exceeding $1,000 in total charges to determine if the patient qualifies for third party funding. If not, the patient advocate will explain the Financial Assistance Policy and give the patient an application if desired. In circumstances where payment in full will cause financial hardship that will significantly harm the patient or patient's family, the applicant may be asked to visit with Consumer Credit Counseling Services to further review their financial situations. Upon request, patients may be asked to complete an application for Medicaid participation or for coverage by other governmental payment programs. Patient bills also contain billing information explaining financial options and provide contact information to the appropriate resources. Part VI, Line 4: Bozeman Health Deaconess Hospital (BHDH) primarily serves Gallatin, Park, and Madison Counties. 86.6% of 2016 inpatient admissions were of patients originating from these three counties (Gallatin: 77.6%, Park 4.8%, and Madison 3.9%). The population of the tri-county region was an estimated 128,540 in 2016 (U.S. Census Bureau). The area as a whole has experienced tremendous growth since 2010, up nearly 16,000 residents, or 15%, with much of the growth occurring in Gallatin County (14,900 residents). Bozeman (in Gallatin County) was listed in the 2015 ACS as a Micropolitan area whereas Belgrade (Gallatin County), Four Corners (Gallatin County), and Livingston (Park County) were listed as Urban Clusters in the 2010 Census. As of 2015, 12.91% of the population was below the poverty level in the tri-county region-ranging from 13.2% in Gallatin County to 12.3% in Park County and 10.7% in Madison County (2015 ACS 5yr estimates). Average household income in 2016 was an estimated $76,850 in Gallatin County followed by Madison ($73,900) and Park ($63,800) (Truven Health Analytics 2017). Estimates suggest that about 14,000 (10.9%) residents in the tri-county area were insured by Medicaid (both pre-reform and expansion) and roughly 9,800 (7.6%) were uninsured in 2016 (Truven Health Analytics 2017). About 15.2% of BHDH inpatients were insured under Medicaid in 2016.BHDH's tri-county service area houses five hospitals-of which, three are critical access hospitals (CAH): Bozeman Health Deaconess Hospital (Bozeman, MT), Bozeman Health Big Sky Medical Center (Big Sky, MT), Livingston HealthCare-CAH (Livingston, MT), Madison Valley Medical Center-CAH (Ennis, MT), and Ruby Valley Hospital-CAH (Sheridan, MT).As listed on the HRSA webpage, three areas in Gallatin County are classified as a "Medically Underserved Area" (CT 0006.00, CT 0011.01, and CT 0011.02) with a Medical Underservice Score of 54.00 (Note: last update listed as 3/30/1999). One area in Madison County is listed as a "Medically Underserved Area" (MCD (93045) Sheridan CCD) with a score of 53.30 (Note: last update listed as 05/31/1994). Park County is listed as a "Medically Underserved Area" with a score of 62.00 (last updated 10/17/1997). Part VI, Line 5: As a sole community hospital, Bozeman Health Deaconess Hospital (BHDH) Services is committed to providing quality care and promoting health to the very community that supports us. Our governing body is represented by individuals of our community, with all but one being independent to our organization. To ensure immediate access to care, BHDH has an open medical staff and requires each medical staff member to care for anyone presenting a need for care in the Emergency Department. We also devote a significant amount of surplus funds to maintaining a high level of patient care through quality initiatives and technology investments.Various employees, physicians, administrators, and board members of the Hospital are actively involved in volunteer roles including community board positions in numerous other activities, groups, and organizations that actively promote the health of the community. Part VI, Line 6: Bozeman Health Deaconess Hospital is a nonprofit public benefit corporation with a sole corporate member, Bozeman Deaconess Health Services d/b/a Bozeman Health. 1 Cancer Support Community 102 S 11th Ave Bozeman MT 59715 810542266 501(c)(3) 60000 General Support 1 0 Part I, Line 2: The organization does not require sustantiation of how the funds are spent but they do meet prior to providing funds to discuss what programs the funds will support. X X X 0 0 0 0 0 0 0 0 0 Dr Dane Sobek Secretary/Cardiology 0 573770 0 40300 0 540 0 38194 0 22770 0 675574 0 0 John Hill President/CEO (Aug-Dec) 0 205248 0 50000 0 15574 0 0 0 9915 0 280737 0 0 Gordon Davidson Interim CEO (Jan-Aug)/VP Finance/CFO 0 430525 0 50045 0 13683 0 44790 0 17570 0 556613 0 0 David Chen MD Interim CEO (Jan-Aug)/CMO 0 423142 0 52573 0 5782 0 32525 0 24914 0 538936 0 0 LeRoy Wilson VP Senior Services 134237 0 36385 0 217 0 10540 0 17294 0 198673 0 0 0 Mike Bertagnolli Pharmacy Director 180064 0 0 0 346 0 11268 0 25679 0 217357 0 0 0 Alan Brayton Pharmacy Supervisor 167569 0 0 0 446 0 10537 0 22431 0 200983 0 0 0 Rebecca Miller Pharmacy Informatics Specialist 146797 0 0 0 73 0 9560 0 26487 0 182917 0 0 0 Monica Stewart Pharmacist 131274 0 0 0 122 0 8254 0 15857 0 155507 0 0 0 A Montana Facility Finance Authority 364615155 61204EAH8 2010-04-22 6645000 Refinancing of 1998 bond debt issued 9/2/1998 0 0 0 B Montana Facility Finance Authority 810302402 61204MAS6 2011-09-28 20680164 To fund structure and equipment of new ER, acquisition of Legacy condos 0 0 0 C Montana Facility Finance Authority 364615155 2015-09-10 19522471 Refinance 2005 bond issued 12/1/2015 0 0 0 D Montana Facility Finance Authority 364615155 2015-01-09 15700000 Portion for MOB V addition 0 0 0 A 4855000 6645000 132900 6512100 2010 1 0 1 1 B 3859793 20693206 11797 401295 20278869 1246 2013 0 0 1 1 C 693904 19522471 243567 19278904 2015 1 0 1 1 D 15700000 37689 15662311 2016 0 0 0 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 D 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 1 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 C 0 0 0 0 0 0 0 0 1 D 0 0 0 0 0 0 0 0 1 A 1 B 1 C 1 D 1 Date Rebate Computation Performed Issuer Name: Montana Facility Finance Authority Date the Rebate Computation was Performed: 06/30/2014 Issuer Name: Montana Facility Finance Authority Date the Rebate Computation was Performed: 06/01/2014 Form 990, Part III, line 2 Bozeman Health Deaconess Hospital formally began operating as a separate corporation on January 1, 2016. Prior to this, these operations were carried out under Bozeman Deaconess Health Services, dba Bozeman Health. Bozeman Health now serves as the parent of this health system. Form 990, Part VI, Section A, line 6 Bozeman Deaconess Health Services, dba Bozeman Health, is the sole member of the organization. Form 990, Part VI, Section A, line 7a Bozeman Deaconess Health Services, dba Bozeman Health, is the sole member of BHDH. Bozeman Health appoints the board members. The board of directors of Bozeman Health also serve as the board members of BHDH. The Yellowstone Conference of the Methodist Church confirms the Board Members for Bozeman Health and has authority to appoint the clergy member of the board. Form 990, Part VI, Section A, line 7b Bozeman Health has the authority over the following items: 1) approval of mission, vision and values 2) approval of the strategic plans 3) adoption of annual capital and operating budgets 4) oversight of financial operations, including the consolidated audit 5) incurrance of any long-term debt 6) establishment of policies specifying the level of internal authority 7) approval of annual quality plan and aoption of policies and procedures regarding healthcare services and law and regulation 8) appointment and removal of board members and officers 9) approval of any affiliations, mergers, and dissolutions 10) approval of closures of medical staffs and services 11) approval of any amendment of the Articles or Bylaws Due to Bozeman Health governing documents any changes in the Articles of Incorporation in relationship to the process of selecting board membership must be approved by the Yellowstone Conference of the United Methodist Church. Form 990, Part VI, Section A, line 8b The organization does not have any committees with the authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b The Finance Committee will review Form 990 in detail and will make a recommendation to the full Board for approval before filing of the Form 990. The CFO reviews the Form 990 at a higher level with the board before approval is granted. Form 990, Part VI, Section B, line 12c In-house Counsel identifies potential conflicts from annual disclosures and informs the Board Chair. The Board Chair discusses the conflict and decides whether the conflict is of such a nature to exclude the conflicted party from discussion and/or vote. This policy covers all Board members, Officers, Senior Administration, and key employees. Form 990, Part VI, Section B, line 15 Bozeman Deaconess Health Services, parent company and sole member of the BHDH, compensates the CEO and CFO. The board of directors and exectuive committee consist of the same individuals for both organizations. The Executive Committee receives a formal presentation by an independent compensation consultant (as selected by the Board) qualified to perform compensation reviews including usage of comparability data. This person presents recommendations to the Compensation Committee of the Board. The Compensation Committee makes recommendations to the full Board on an annual basis for Officers and Senior Administration. This annual process was performed in fall 2016 to determine 2017 compensation. Form 990, Part VI, Section C, line 19 Governing documents, conflict of interest policy, and all tax related information required to be available for public inspection are available via walk-in, telephone call, e-mail, and/or mail-in request. The audited financial statements are required to be attached to the Form 990 and provided to the Municipal Securities Rulemaking Board, which is our tax-exempt bonds trustee, via an on-line, central filing location called Electronic Municipal Market Access (EMMA). The financial statements can be obtained by the general public at the EMMA website. Form 990, Part XI, line 9: Transfer of Net Assets From Related Party Due to Organization Restructure 234,642,853. Change in Temp & Perm Restricted Investment of Foundation 3,287,438. Form 990, Part XI: Inconsistent Treatment of Partnership Investments: The following partnership incorrectly reports the EIN of the partner as Bozeman Deaconess Health Services Depreciation Alternative Investment (EIN 81-0232121). The investment and income are actually held and reported on the Bozeman Health Deaconess Hospital (EIN 47-4717998). All tax reporting will be made on the Bozeman Health Deaconess Hospital Form 990. Coast Access LLC (EIN 16-1662779) Bozeman Deaconess Health Services 915 Highland Blvd Bozeman MT 59715 810232121 Hospital and Healthcare Services MT 501(c)(3) Line 3 N/A 0 Bozeman Deaconess Foundation dba Bozeman Health Foundation 931 Highland Blvd Suite 3200 Bozeman MT 59715 841407943 Raise Funds to Support Bozeman Deaconess Health Services MT 501(c)(3) Line 7 Bozeman Deaconess Health Services 0 Deaconess Intercity Imagining LLC 915 Highland Blvd Bozeman MT 59715 810666871 Healthcare - Imaging Services MT N/A Rocky Mountain Surgical Center LLC 1450 Ellis St Suite 101 Bozeman MT 59715 364462300 Healthcare - Surgical Services MT N/A Spanish Peaks Plaza LLC 120 N 15th Ave Suite A Bozeman MT 59718 810539803 Rental Real Estate MT N/A Bozeman Deaconess Real Estate Development PO Box 10490 Bozeman MT 59719 205496567 Sale of Real Estate Property and Residences to Seniors MT N/A C 0 0 0 1 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1