2017-11-15T08:42:11-06:00 2016-12-31 160765486 LUMSDEN & MCCORMICK LLP 369 FRANKLIN STREET BUFFALO NY 14202 990 2016-01-01 250965270 BRADFORD HOSPITAL BRAD 8143628257 116 INTERSTATE PARKWAY BRADFORD PA 16701 TIMOTHY FINAN PRESIDENT/CEO 7163756190 2017-11-14 1 MICHAEL J GRIMALDI P01295846 7168563300 38.122.36.250 2017-11-14 16:48:24 ES P 87273CE15A7E4D536C246F8BF2CA388F6BFCF293 ECFD8073557412C3490EDC284AF2457AA53A359D 2016 2017-02-10 21:41:12Z BRADFORD REGIONAL MEDICAL CENTER TIMOTHY FINAN 130 SOUTH UNION STREET SUITE 300 OLEAN NY 14760 68164871 0 X WWW.BRMC.COM X 1885 PA SEE SCHEDULE O. 17 14 635 120 0 0 2200966 2551046 62032516 63158031 224843 -8318 2023368 2390341 66481693 68091100 0 0 0 0 32463999 33618553 0 0 0 33780956 34905578 66244955 68524131 236738 -433031 173311435 48476614 174924937 42481472 -1613502 5995142 X SEE SCHEDULE O. 0 0 54995034 63158031 IN 2016 BRADFORD REGIONAL MEDICAL CENTER HAD OVER 2,700 ADMISSIONS AND OVER 134,000 OUTPATIENT VISITORS. BRADFORD REGIONAL MEDICAL CENTER OFFERS PATIENTS AND THEIR FAMILIES A FULL RANGE OF DIAGNOSTIC AND MEDICAL SERVICES, AS WELL AS MANY SPECIALTY SERVICES. A WIDE ARRAY OF MULTI-SPECIALTY PHYSICIANS AND CLINICIANS OFFER SERVICES RANGING FROM CANCER, CARDIAC AND VASCULAR CARE, OB/GYN, GENERAL SURGERY, UROLOGY, WOMEN'S HEALTH, INTERNAL MEDICINE, PEDIATRICS, SLEEP MEDICINE, PSYCHIATRIC CARE, PULMONARY MEDICINE, AND COMPREHENSIVE COUNSELING FOR ALCOHOL AND CHEMICAL DEPENDENCY.HIGHLIGHTED BELOW ARE SOME OF THE INITIATIVES THAT WERE REALIZED IN 2016 AT BRMC:2016 FINANCIAL PERFORMANCE- BRMC HAD AN OPERATING LOSS OF ($488K) COMPARED WITH A 2015 GAIN OF $84K. THE OPERATING LOSS WAS THE RESULT OF ONE PRIMARY FACTOR, UPWARD PRESSURE ON KEY OPERATING EXPENSES INCLUDING THE START-UP COSTS ASSOCIATED WITH THE NEW HOSPITALIST PROGRAM AT BRMC. HOSPITALISTS ARE INPATIENT HOSPITAL SPECIALISTS. THE PROGRAM BEGAN IN DECEMBER 2015 BUT 2016, AS THE FIRST FULL YEAR OF THE PROGRAM, HAD A LARGE START-UP COST ASSOCIATED WITH IT.- IN 2016 BRMC'S BOARD OF DIRECTORS VOTED TO BECOME PART OF THE KALEIDA HEALTH SYSTEM, A BUFFALO, NEW YORK-BASED HEALTH SYSTEM. THIS DECISION WAS BASED ON A FIVE YEAR LONG-TERM FINANCIAL PLAN THAT WAS DEVELOPED FOR BRMC AND ITS SISTER HOSPITAL UNDER BRMC'S PARENT COMPANY - UPPER ALLEGHENY HEALTH SYSTEM (UAHS), WHICH DEMONSTRATED A FUTURE INABILITY TO REMAIN FINANCIALLY VIABLE GIVEN THE DOWNWARD PRESSURES ON REVENUE IN THE HEALTH CARE INDUSTRY AS WELL AS RISING COSTS TO PROVIDE CARE. BRMC IS NOT UNIQUE IN THIS VULNERABLE POSITION. HOSPITALS ACROSS AMERICA, ESPECIALLY RURAL HOSPITALS, FACE A DAUNTING CHALLENGE OF SURVIVAL. SIGNIFICANT TIME WAS SPENT ANALYZING BRMC'S AND UAHS' FINANCES AND EVALUATING KALEIDA HEALTH AS A PARTNER. A DECISION TO AFFILIATE WAS MADE IN THE FALL OF 2016. BRMC'S MANAGEMENT EXPECTS THE AFFILIATION TO BE COMPLETED IN 2017. FINANCIAL IMPROVEMENT OF OVER $10M ANNUALLY AT UAHS IS EXPECTED UNDER THE AFFILIATION PLAN.2016 QUALITY MATTERS- PHYSICIAN ELECTRONIC DOCUMENTATION (PDOC)- BRMC BEGAN ROLLING OUT THIS PHYSICIAN DOCUMENTATION SYSTEM THAT THEN FEEDS INTO THE ELECTRONIC HEALTH RECORD OF OUR PATIENTS. THIS IS A SIGNIFICANT CHANGE FROM DICTATING, SCANNING AND COPYING INTO THE ELECTRONIC HEALTH RECORD. THE FULL ROLL-OUT WILL TAKE WELL INTO 2017 TO COMPLETE.- BRMC BEGAN EDUCATION AROUND A "JUST CULTURE ORGANIZATION" IN 2016. THE JUST CULTURE IS A SYSTEM OF SHARED ACCOUNTABILITY WHERE MANAGEMENT IS ACCOUNTABLE FOR THE SYSTEMS THEY HAVE DESIGNED AND TO RESPONDING TO THE BEHAVIORS OF THEIR STAFF IN A FAIR AND EQUITABLE MANNER AND WHERE EMPLOYEES ARE HELD ACCOUNTABLE FOR THE QUALITY OF THEIR CHOICES AND FOR REPORTING ERRORS AND SYSTEM VULNERABILITIES.INFORMATION TECHNOLOGY- BRMC CONTINUED TO EXPAND THE USAGE OF ITS PHYSICIAN DOCUMENTATION SOFTWARE MAKING IT AVAILABLE IN THE EMERGENCY DEPARTMENT. ELECTRONIC PHYSICIAN DOCUMENTATION SYSTEMS HELP STANDARDIZE PHYSICIAN DOCUMENTATION TO ENSURE REQUIRED DATA ELEMENTS ARE CAPTURED AND PATIENT CARE IS DELIVERED IN ACCORDANCE WITH EVIDENCE BASED PRACTICE. ALSO, SINCE DATA IS ENTERED AS DISCRETE ELEMENTS, IT ALLOWS FOR IMPROVED QUALITY REPORTING AND MONITORING. FINALLY, ELECTRONIC PHYSICIAN DOCUMENTATION ELIMINATES THE POTENTIAL FOR TRANSCRIPTION ERRORS. - BRMC EXPANDED THE USAGE OF ITS ELECTRONIC MEDICATION PRESCRIBING SYSTEM (ERX) TO INCLUDE CONTROLLED SUBSTANCES. ERX SYSTEMS ALLOW HEALTH CARE PROVIDERS TO SEND PRESCRIPTIONS ELECTRONICALLY TO A PATIENT'S PHARMACY. E-PRESCRIBING IS CONVENIENT FOR PATIENTS, HELPS REDUCE TRANSCRIPTION ERRORS, AND CAN REDUCE FRAUD ASSOCIATED WITH TRADITIONAL PAPER PRESCRIPTIONS. - BRMC'S TELECOMMUNICATIONS INFRASTRUCTURE WAS UPGRADED TO AVAYA'S VOIP PLATFORM. THIS IMPROVED THE RELIABILITY OF THE SYSTEM AND ALLOWED BRMC TO UTILIZE MODERN PHONE SYSTEM FEATURES INCLUDING VOICE OVER IP, TELE-PRESENCE, CALL CENTERS, ETC.- BRMC IMPLEMENTED THE MEDITECH EMERGENCY DEPARTMENT MANAGEMENT SOLUTION. THIS ALLOWS ALL CARE PROVIDERS TO DOCUMENT IN THE SAME ELECTRONIC HEALTH RECORD (EHR) THUS ENSURING EVERYONE INVOLVED IN THE PATIENT'S CARE HAS IMMEDIATE ACCESS TO THE LATEST CLINICAL DATA.. IT ELIMINATED THE NEED FOR STAFF TO DOCUMENT THE SAME INFORMATION IN TWO SEPARATE SYSTEMS THEREBY ELIMINATING TRANSCRIPTION ERRORS. ALSO, BY CENTRALIZING ALL DATA INTO MEDITECH, IT WILL ALLOW UAHS TO CREATE ENHANCED DATA REPORTS THAT INCORPORATE CLINICAL DATA FROM BOTH THE ED AND INPATIENT STAY.OPERATIONS/PROGRAMS- A COMPREHENSIVE PROGRAM OF EMPLOYEE ENGAGEMENT WAS ORGANIZED AND IMPLEMENTED AT BRMC. THE PROGRAM ACKNOWLEDGES THE VALUE OF EACH AND EVERY EMPLOYEE IN TAKING CARE OF OUR PATIENTS AND PROVIDES AN OPPORTUNITY TO INTERACT WITH EMPLOYEES AS THEY DO THEIR JOBS. 54995034 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 1 78 0 1 635 1 0 0 0 0 0 0 0 0 0 0 X 17 14 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X RICHARD G BRAUN JR CPA 7163756190 130 SOUTH UNION STREET SUITE 300 OLEAN NY 14760 TIMOTHY FINAN PRESIDENT AND CEO 14.00 26.00 X X 251621 428437 59778 BRENDA MCGEE BOARD CHAIR 2.00 4.50 X X 0 0 0 MUHAMMED JAVED MD BOARD VICE CHAIR 2.00 3.50 X X 0 70200 0 RICHARD ROUPE BOARD SECRETARY 2.00 3.50 X X 0 0 0 MARTIN DIGEL BOARD TREASURER 2.00 3.50 X X 0 0 0 LIVINGSTON ALEXANDER EDD DIRECTOR 2.00 3.50 X 0 0 0 JEFF BELT DIRECTOR 2.00 3.50 X 0 0 0 THOMAS BUFFAMANTE DIRECTOR 2.00 3.50 X 0 0 0 PIERRE DIONNE MD DIRECTOR 2.00 3.50 X 0 0 0 LISA FIORENTINO PHD RN DIRECTOR 2.00 3.50 X 0 0 0 LUIS GONZALEZ MD DIRECTOR 2.00 3.50 X 0 0 0 DANIEL 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157916 157916 2831446 2758173 73273 252249 252249 8572882 8369284 203598 125563 125563 880912 880912 3112241 2178569 933672 1247360 13646 1233714 PURCHASED SERVICES 7524598 7524598 OTHER 6830520 3104059 3726461 LEASE/RENT 1850734 1559853 290881 PROVISION FOR BAD DEBTS 1181527 1181527 337630 337630 68524131 54995034 13529097 0 2750 2400 711316 1101406 8133954 6585933 1697521 1626104 721905 643069 76280228 50875401 26870874 25404827 135173115 13112875 173311435 48476614 10176914 10228788 14490000 13345000 3199283 3091693 147058740 15815991 174924937 42481472 X -1755772 5852872 142270 142270 -1613502 5995142 173311435 48476614 X -433031 128023 7913652 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 338904 338904 49020766 30208239 18812527 2177513 1459779 717734 24677248 19207383 5469865 65797 65797 25404827 OTHER RECEIVABLES 1902109 DUE FROM RELATED PARTIES 1245034 OTHER ASSETS 978764 ASSETS LIMITED AS TO USE 8559807 DUE FROM THIRD-PARTY PAYORS 427161 13112875 ACCRUED PENSION LIABILITY 15167076 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 369127 DUE TO RELATED PARTIES 279788 15815991 1 1 1 X 400.000000000000 1 X 1 1 0 1 1 2123896 64943 2058953 0.03060 15397090 12401498 2995592 0.04450 17520986 12466441 5054545 0.07510 27 7198 251700 30567 221133 0.00330 2 25 604071 292320 311751 0.00460 29 7223 855771 322887 532884 0.00790 29 7223 18376757 12789328 5587429 0.08300 0 1181527 193446 17925716 17161888 763828 X 1 1 2 1 BRADFORD REGIONAL MEDICAL CENTER 116 INTERSTATE PARKWAY BRADFORD PA 16701 X 2 VNA 20 SCHOOL STREET BRADFORD PA 16701 VISITING NURSING BRADFORD REGIONAL MEDICAL CENTER 1 0 0 1 X X X X X X X X X X 15 1 0 1 1 X WWW.BRMC.COM X 1 15 1 WWW.BRMC.COM 0 1 X 400.000000000000 400.000000000000 X X X X X 1 1 X X X 1 X WWW.BRMC.COM X WWW.BRMC.COM X WWW.BRMC.COM X X X X X 1 X 0 X X X X 1 X 0 0 BRADFORD REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 3J: THE HOSPITAL COMPLETED ITS 2015 COMMUNITY HEALTH NEEDS ASSESSMENT IN OCTOBER, 2015, WHICH IS IN FULL COMPLIANCE WITH THE CURRENT STANDARDS UNDER PART V, INCLUDING QUESTIONS 3 A-I, AND QUESTIONS 5, 7, 8 AND 10. BRADFORD REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 5: THE DESCRIPTION OF INPUT FROM PERSONS REPRESENTING A BROAD INTEREST OF THE COMMUNITY SERVED BY THE HOSPITAL, INCLUDING SPECIFIC STAKEHOLDER INTERVIEWS ARE PRESENTED ON PAGES 7-14 OF THE BRMC 2015 - 2017 CHNA. BRADFORD REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 6B: THOSE PARTICIPATING INCLUDED YMCA/YWCA, TRANSPORTATION, PA DEPARTMENT OF HEALTH, BRADFORD SCHOOL DISTRICT, VISITING NURSES ASSOCIATION, UNITED WAY, HOMELESSNESS/LOW INCOME COMMUNITY ORGANIZATIONS, ALCOHOL AND DRUG ABUSE, DENTAL SERVICE PROVIDERS, LAW ENFORCEMENT, CHILDREN AND YOUTH SERVICES, AGING POPULATION, MANUFACTURING COMPANIES, EMERGENCY SERVICES ORGANIZATIONS, FINANCIAL SERVICE ORGANIZATIONS. A COMPLETE LIST OF ORGANIZATIONS PARTICIPATING IN THE COMMUNITY HEALTH NEEDS ASSESSMENT ARE LISTED IN 2015 BRMC COMMUNITY HEALTH NEEDS ASSESSMENT. BRADFORD REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 11: THE HOSPITAL IS ADDRESSING NEEDS THROUGH ITS 2015-2017 COMMUNITY HEALTH NEEDS ASSESSMENT IMPLEMENTATION PLAN. PART I, LINE 7G: SUBSIDIZED PROGRAMS ARE NOT RECORDED AT THIS LEVEL OF DETAIL. ALL COSTS ASSOCIATED WITH THESE PROGRAMS, INCLUDING IP PSYCHIATRIC DEPARTMENT, EMERGENCY DEPARTMENT AND VARIOUS PRIMARY CARE/SPECIALTY CLINICS ARE INCLUDED IN THE AMOUNTS PROVIDED. 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 $ 1,181,527. PART II, COMMUNITY BUILDING ACTIVITIES: A RECENT PHYSICIAN WORKFORCE ANALYSIS DEMONSTRATED THAT THE BRADFORD AREA HAS SIGNIFICANT PRIMARY CARE AND SPECIALIST CARE SHORTAGES, RESULTING IN LIMITED ACCESS TO CARE FOR PATIENTS. BASED UPON A BENCHMARK OF 61.5 PRIMARY CARE PHYSICIANS PER 100,000 POPULATIONS, BRMC'S SERVICE AREA HAS A CURRENT NEED OF 5.2 PRIMARY CARE PHYSICIANS OVER THE NEXT FIVE YEARS. THE BRMC SERVICE AREA ALSO HAS SIGNIFICANT NEED FOR SPECIALISTS. THE CURRENT MEDICAL SPECIALTY NEEDS ARE DERMATOLOGY AND NEUROLOGY. IN THE NEXT FIVE YEARS, GASTROENTEROLOGY, OCCUPATIONAL MEDICINE AND ONCOLOGY WILL BE POTENTIAL NEEDS. THE HOSPITAL PROVIDES CLINICAL ROTATIONS FOR NURSING STUDENTS THROUGH AFFILIATION AGREEMENTS WITH AREA COLLEGES AND UNIVERSITITIES. PART III, LINE 3: THE RATIONALE USED TO ESTIMATE THE AMOUNT OF THE ORGANIZATION'S BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE PLAN WAS DETERMINED BY USING THE AVERAGE POVERTY LEVEL OF THE LARGEST SERVICE AREAS COVERED BY THE HOSPITAL. PART III, LINE 4: PATIENT ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTIBILITY OF PATIENT ACCOUNTS RECEIVABLE, THE MEDICAL CENTER ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE MEDICAL CENTER ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD PARTY PAYOR HAS NOT YET PAID, OR PAYORS WHO ARE KNOWN TO HAVE FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE MEDICAL CENTER RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. PART III, LINE 8: THE ALLOWABLE COSTS REPORTED ON LINE 6 ARE DIRECTLY FROM THE HOSPITAL'S 2016 MEDICARE COST REPORT, WHICH IS PREPARED USING A RATIO OF CHARGES TO COSTS BASIS (RCC) AS REQUIRED BY MEDICARE. PART III, LINE 9B: COLLECTION PRACTICES:I) BRMC WILL NOT CAUSE THE FORCED SALE OR FORECLOSURE ON A PATIENT'S PRIMARY RESIDENCE.II) BRMC WILL NOT SEND ACCOUNT TO COLLECTION IF THE PATIENT HAS SUBMITTED A COMPLETED APPLICATION FOR FINANCIAL ASSISTANCE, INCLUDING THE REQUIRED DOCUMENTATION, WHILE AN APPLICATION IS PENDING.III) BRMC WILL PROVIDE WRITTEN NOTIFICATION TO A PATIENT AT LEAST 30-DAYS BEFORE AN ACCOUNT IS SENT TO COLLECTION. THIS WRITTEN NOTICE MAY BE INCLUDED ON A BILL. IV) BRMC REQUIRES THAT A COLLECTION AGENCY HAVE ITS WRITTEN CONSENT PRIOR TO STARTING LEGAL ACTION FOR COLLECTION.V) BRMC WILL TRAIN ALL GENERAL HOSPITAL STAFF WHO INTERACT WITH PATIENTS OR HAVE RESPONSIBILITY FOR BILLING AND COLLECTION.VI) BRMC WILL MEASURE OUR COMPLIANCE WITH THESE POLICES.VII) BRMC REQUIRES ANY COLLECTION AGENCY UNDER CONTRACT TO FOLLOW OUR FINANCIAL ASSISTANCE POLICY AND PROVIDES INFORMATION TO PATIENT'S ON HOW TO APPLY, WHERE APPROPRIATE.VIII) BRMC DOES NOT ALLOW COLLECTION ACTIVITY IF THE PATIENT IS DETERMINED ELIGIBLE FOR MEDICAID FOR THE SERVICES THAT WERE RENDERED AND BRMC IS ABLE TO COLLECT MEDICAID PAYMENT. PART VI, LINE 2: THE STRATEGIC PLANNING COMMITTEE OF BRMC IS CHARGED WITH DEVELOPING A LONG-RANGE STRATEGIC PLAN FOR THE MEDICAL CENTER. THE PURPOSE OF THE PLAN IS TO PROVIDE DIRECTION AND CONTEXT FOR HOSPITAL DECISION MAKING AND RESOURCE ALLOCATION CONSISTENT WITH LOCAL HEALTH CARE NEEDS AND MARKET OPPORTUNITIES. TO ACCOMPLISH THIS TASK, THE COMMITTEE CREATED A COMPREHENSIVE, PARTICIPATORY PROCESS TO SOLICIT INPUT FROM ALL LEVELS OF THE ORGANIZATION AND THE COMMUNITY. A MULTI-STEP PLANNING PROCESS WAS INITIATED.STEP 1 INVOLVED THE REVIEW AND REVISION OF THE HOSPITAL'S MISSION AND VISION STATEMENTS. BOTH STATEMENTS WERE MODIFIED FROM WHAT HAD PREVIOUSLY EXISTED. A CONCISE, VALUE DRIVEN MISSION STATEMENT WAS DEVELOPED IN RESPONSE TO THE NEED FOR MISSION STATEMENTS TO DESCRIBE "WHO WE ARE." ADDITIONALLY, SEVERAL CORE VALUES WERE DELINEATED IN SUPPORT OF THE MISSION STATEMENT. THE VISION STATEMENT WAS DEVELOPED IN RESPONSE TO THE QUESTION OF "WHAT DO WE WISH TO BECOME" WITH THE UNDERSTANDING THAT VISION STATEMENTS SHOULD BE REALISTIC, CREDIBLE, AND POSSESS THE ABILITY TO INSPIRE AND MOTIVATE.STEP 2 IDENTIFIED A SERIES OF CRITICAL ISSUES FACING THE HOSPITAL THAT WILL PROVIDE THE CONTEXT FOR THE HOSPITAL'S NEAR TERM OPERATINGENVIRONMENT WITH RESPECT TO CARE DELIVERY, REGULATION, COMPETITION, FINANCE AND KEY PUBLICS.STEP 3 INVOLVED THE DEVELOPMENT OF A COMPREHENSIVE ENVIRONMENTAL ANALYSIS,INCLUDING AN INTERNAL AND EXTERNAL ASSESSMENT OF THE HOSPITAL. THEINTERNAL ASSESSMENT WAS PROVIDED VIA MULTIPLE FOCUS GROUPS - OPENDISCUSSIONS ABOUT THE HOSPITAL'S STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS. THESE FOCUS GROUPS, FACILITATED BY AN OUTSIDE CONSULTANT RETAINED BY THE HOSPITAL, PROVIDED INPUT FROM PHYSICIANS, EMPLOYEES, VOLUNTEERS AND THE COMMUNITY AND PROVIDED SIGNIFICANT INSIGHT INTO STRENGTHS, WEAKNESSES, AND OPPORTUNITIES FOR IMPROVEMENT. THE EXTERNAL ASSESSMENT WAS DEVELOPED FROM THE COMPILATION OF UTILIZATION, MARKET SHARE DEMOGRAPHIC AND FINANCIAL DATA AND PHYSICIAN WORKFORCE INFORMATION SPECIFIC TO THE HOSPITAL'S SERVICE AREA.STEPS 4, 5 AND 6 IDENTIFIED GOALS, STRATEGIES, AND OBJECTIVES THAT WILLSERVE AS THE HOSPITAL'S PRIORITIES THROUGH 2019. THE PLAN WASREVIEWED IN JUNE 2016 AND INITIATIVES ADDED THAT WERE CARRIED OUT IN 2016.GOALS RESPOND TO THE QUESTION "WHAT ARE THE KEY PRIORITIES?" A SERIES OFSTRATEGIES WERE DEVELOPED WHICH RESPOND TO THE QUESTION "HOW DO WE ACHIEVEOUR PRIORITIES?" FINALLY, A NUMBER OF SPECIFIC OBJECTIVES WERE DEVELOPEDWHICH RESPOND TO THE QUESTION "WHAT WILL BE ACCOMPLISHED ANNUALLY?"OBJECTIVES WERE GENERATED BY SENIOR MANAGEMENT AND FORM THE BASIS FOR NEARTERM ADMINISTRATIVE WORKPLANS.ESSENTIAL TO THE SUCCESS OF ANY STRATEGIC PLAN IS THE HOSPITAL'S ABILITY TO BOTH IMPLEMENT RECOMMENDATIONS MADE WITHIN THE PLAN AND TO RECOGNIZE THE DOCUMENT AS A DYNAMIC AND FLEXIBLE TOOL TO BE USED AS A GUIDE FOR THE FUTURE. SPECIFIC GOALS AND STRATEGIES MAY OR MAY NOT BE OBTAINED AND, UPON EVALUATION AND THE AVAILABILITY OF NEW INFORMATION AND DEVELOPMENTS, MAY NEED TO BE MODIFIED. A SUCCESSFUL STRATEGIC PLAN RECOGNIZES THIS POTENTIAL FOR CHANGE AND IS FLEXIBLE ENOUGH TO ACCOMMODATE NEW OR DIFFERENT OPPORTUNITIES AND CHALLENGES.CRITICAL HEALTH CARE ISSUESTHE ENACTED HEALTHCARE REFORM LEGISLATION UNDERSCORES MANY OF THESIGNIFICANT ISSUES CURRENTLY FACING HOSPITALS. FOLLOWING IS LISTING OFCRITICAL ISSUES THAT WILL IMPACT HOSPITALS OVER THE NEXT SEVERAL YEARS.1. QUALITY: HEALTH CARE QUALITY AND SAFETY ARE NOW STRATEGICALLY IMPORTANT, NOT JUST PROFESSIONALLY IMPORTANT. THE ADVENT OF WIDESPREADPUBLIC REPORTING OF HOSPITAL QUALITY RESULTS ASSURES THAT A HOSPITAL'SQUALITY PERFORMANCE IS NO LONGER ONLY VISIBLE TO THE DIRECTOR OF QUALITY,QA COMMITTEE MEMBERS AND VARIOUS REGULATORS. THE NET EFFECT OF THISTRANSPARENCY TREND OVER THE NEXT 5 YEARS WILL BE THAT THE DEFINITION OF A"GOOD HOSPITAL" WILL SHIFT SIGNIFICANTLY. NO LONGER WILL IT BE ENOUGH TOHAVE ATTRACTIVE FACILITIES, GOOD TECHNOLOGIES AND SKILLED DOCTORS ANDNURSES. HOSPITALS WILL NEED TO MARSHAL THOSE RESOURCES INTO A QUALITY ANDSAFETY SYSTEM CAPABLE OF RELIABLY PRODUCING MEASURED QUALITY RESULTS.PROVIDER PAYMENTS WILL INCREASINGLY BE A FUNCTION OF QUALITY OUTCOMES ANDQUALITY BONUSES WILL BE DRAWN FROM ANNUAL PAYMENT UPDATES. INFORMATIONSYSTEMS CAPABLE OF PROVIDING VALID AND RELIABLE QUALITY AND OUTCOMEINDICATORS WILL BE A NECESSITY AS WILL THE USE OF EVIDENCE BASEDGUIDELINES BY CLINICAL PROVIDERS. CONSUMERS WILL SEEK AND USE PERFORMANCEINFORMATION, INCLUDING PATIENT SATISFACTION INFORMATION, TO GUIDE THEIRCHOICE OF PROVIDERS.2. INFORMATION TECHNOLOGY: HEALTH INFORMATION TECHNOLOGY INCLUDES COMPUTER BASED TOOLS DEVELOPED SPECIFICALLY FOR HEALTH CARE DELIVERY. THESE TOOLS CAN PROVIDE CLINICIANS UP-TO-DATE INFORMATION ON THEIR PATIENTS, ACCESS TO THE LATEST MEDICAL KNOWLEDGE AND BEST PRACTICES THROUGH DECISION SUPPORT SYSTEMS. IT IS UNDERSTOOD THAT INVESTMENTS IN NEW CLINICAL AND INFORMATION TECHNOLOGY CAN SIGNIFICANTLY ENHANCE PATIENT SAFETY AND CLINICAL OUTCOMES. COMPUTERIZED PHYSICIAN ORDER ENTRY (CPOE), BAR CODING AND ITS POTENTIAL TO REDUCE MEDICATION ERRORS, AND ELECTRONIC MEDICAL RECORDS (EMRS) AND THEIR POSITIVE IMPACT ON MEDICAL ERRORS ARE ALL EXAMPLES OF HEALTH CARE'S USE OF IT SOLUTIONS TO IMPROVE QUALITY. THE FEDERAL GOVERNMENT HAS HIGHLIGHTED THE ROLE OF HEALTH INFORMATION TECHNOLOGY AS A MEANS TO IMPROVE HEALTH CARE QUALITY, SAFETY AND NOW IS PROVIDING STIMULUS AND INCENTIVE PAYMENTS TO PROVIDERS TO FACILITATE AND HASTEN THEIR ADOPTION INTO THE CARE DELIVERY PROCESS. EMR'S WILL BECOME A PREREQUISITE OF ANY DELIVERY SYSTEM THAT INTENDS TO PROVIDE COORDINATED COST EFFECTIVE CARE.3. PHYSICIANS: PHYSICIANS HAVE EMERGED AS CRITICAL OPERATIONAL ANDSTRATEGIC PARTNERS TO HOSPITALS. THOSE THAT ARE SUCCESSFUL IN ENGAGING ANDCOLLABORATING WITH THEIR MEDICAL STAFF WILL BE BEST ABLE TO DEMONSTRATEHIGH QUALITY CARE AND COMPLIANCE WITH HEALTH REFORM'S VALUE BASEDPURCHASING AND OTHER QUALITY MANDATES. ADDITIONALLY, GIVEN THE INCREASEIN DEMAND FOR HEALTHCARE SERVICES THAT WILL BE OCCASIONED BY REFORM, THEABILITY TO SUCCESSFULLY RECRUIT PHYSICIANS WILL BE CRITICAL. AT A TIMEWHEN HEALTHCARE REFORM INITIATIVES EMPHASIZE THE ROLE OF PRIMARY CARE,THERE IS A SPECIAL NEED TO INTENSIFY EFFORTS TO RECRUIT PRIMARY CAREPROVIDERS. BECAUSE THE VAST MAJORITY OF NEW PHYSICIANS PREFER EMPLOYMENTAS THEIR PRACTICE PREFERENCE, THE ABILITY OF HOSPITALS TO BE ABLE TO OFFERPHYSICIANS A CONTEMPORARY AND COMPETITIVE "EMPLOYMENT PLATFORM" ISESSENTIAL.4. FINANCE AND CAPITAL: FINANCIAL PERFORMANCE AND ACCESS TO CAPITAL WILL CONTINUE TO BE AMONG THE MOST CRITICAL ISSUES CONFRONTING HOSPITALS. EVEN WITH HEALTHCARE REFORM, HEALTHCARE COSTS WILL CONTINUE TO OUTPACE INFLATION. INCREASING WAGE AND SALARY COSTS, AND RISING HEALTH CARE COSTSIN GENERAL WILL CONTINUE TO IMPACT OPERATING PERFORMANCE AND PRESSHOSPITALS TO CONTINUE A RELENTLESS FOCUS ON COST MANAGEMENT. ADDITIONALLY,REVENUE STRATEGIES WILL NEED TO BE DEVELOPED TO GENERATE PROFITABLE GROWTHIN PATIENT VOLUME, AS WILL THE NEED TO ENSURE OPTIMAL MANAGEMENT OF ALLREVENUE CYCLE ACTIVITIES. HOSPITALS ARE FACING SIGNIFICANT PAYMENT REDUCTIONS IN TERMS OF DECREASES IN MEDICARE UPDATES, DISPROPORTIONATESHARE, SNF AND HOMECARE PAYMENTS. AS HOSPITALS CONTINUE TO POST LOW OR NOPROFIT MARGINS, INVESTMENT INCOME WILL BE MORE IMPORTANT THAN EVER.HOWEVER, GIVEN THE FACT THAT INVESTMENT INCOME IS A HIGHLY UNCERTAINCOMPONENT OF A HOSPITAL'S OVERALL FINANCIAL HEALTH, HOSPITALS WILL BEDRIVEN TO PURSUE MORE PHILANTHROPY. HOSPITAL CAPITAL SPENDING WILL BEDRIVEN BY GROWING DEMANDS FOR ADVANCED TECHNOLOGY NEEDED TO ENSURE PATIENTQUALITY AND SAFETY, THE NEED TO REPLACE AND UPDATE AGING FACILITIES, ANDTHE DESIRE AND NEED TO IMPROVE TECHNOLOGY BASED SERVICES.IN 2016 BRMC'S BOARD OF DIRECTORS VOTED TO BECOME PART OF THE KALEIDA HEALTH SYSTEM, A BUFFALO, NEW YORK-BASED HEALTH SYSTEM. THIS DECISION WAS BASED ON A FIVE YEAR LONG-TERM FINANCIAL PLAN THAT WAS DEVELOPED FOR BRMC AND ITS SISTER HOSPITAL UNDER BRMC'S PARENT COMPANY- UPPER ALLEGHENY HEALTH SYSTEM (UAHS), WHICH DEMONSTRATED A FUTURE INABILITY TO REMAIN FINANCIALLY VIABLE GIVEN THE DOWNWARD PRESSURES ON REVENUE IN THE HEALTH CARE INDUSTRY AS WELL AS RISING COSTS TO PROVIDE CARE. BRMC IS NOT UNIQUE IN THIS VULNERABLE POSITION. HOSPITALS ACROSS AMERICA, ESPECIALLY RURAL HOSPITALS, FACE A DAUNTING CHALLENGE OF SURVIVAL. SIGNIFICANT TIME WAS SPENT ANALYZING BRMC'S AND UAHS' FINANCES AND EVALUATING KALEIDA HEALTH AS A PARTNER. A DECISION TO AFFILIATE WAS MADE IN THE FALL OF 2016. BRMC'S MANAGEMENT EXPECTS THE AFFILIATION TO BE COMPLETED IN 2017. FINANCIAL IMPROVEMENT OF OVER $10M ANNUALLY AT UAHS IS EXPECTED UNDER THE AFFILIATION PLAN.SEE CONTINUATION AT THE END OF PART VI. PART VI, LINE 3: INSURANCE INFORMATION IS GATHERED DURING THE SCHEDULING AND/ORREGISTRATION PROCESS. IF THE PATIENT INDICATES THAT THEY HAVE NOINSURANCE, REGISTRATION STAFF WILL ASK THE PATIENT FOR PERMISSION TOTRANSFER THEM TO KEYSTONE FOR ASSISTANCE WITH SCREENING FOR ELIGIBILITY FOR GOVERNMENT PROGRAMS. KEYSTONE PERSONNEL WILL CONTACT THE PATIENT AND DISCUSS OPTIONS, INCLUDING THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM. ALL REGISTRATION, CARE MANAGEMENT AND BILLING PERSONNEL ARE EDUCATED ABOUT THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM AND CAN DISCUSS AND SHARE INFORMATION WITH PATIENTS AT ANY TIME BEFORE, DURING OR AFTER THE EPISODE OF CARE. BILLING STATEMENTS CONTAIN THE FOLLOWING MESSAGE: IF YOU HAVE ANY QUESTIONS OR WOULD LIKE TO APPLY FOR OUR FINANCIAL ASSISTANCE PROGRAM, PLEASE CALL OUR OFFICE AT ...". THE FINANCIAL ASSISTANCE POLICY IS POSTED ON THE HOSPITAL WEBSITE TO HELP EDUCATE THE PUBLIC. PART VI, LINE 4: BRADFORD REGIONAL MEDICAL CENTER IS LOCATED IN BRADFORD, PENNSYLVANIA, THE LARGEST CITY IN MCKEAN COUNTY. THE HOSPITAL SERVES APPROXIMATELY 55,000 RESIDENTS OF MCKEAN COUNTY AND THE SURROUNDING AREA. THE POPULATION OF THE AREA IS DISTRIBUTED AS FOLLOWS: 20% UNDER THE AGE OF 18, 60% AGE 18 TO 64 AND 20% 65 AND OLDER. THE ANNUAL HOUSEHOLD INCOME WAS DISTRIBUTED AS FOLLOWS: 28% EARNING LESS THAN $25K; 30% EARNING BETWEEN $25-$50K, AND 24% EARNING $50K OR HIGHER. PART VI, LINE 6: BRADFORD REGIONAL MEDICAL CENTER IS PART OF THE UPPER ALLEGHENY HEALTH SYSTEM (UAHS), AN INTEGRATION OF TWO REGIONAL HOSPITALS UNDER A COMMON PARENT ORGANIZATION. UAHS HAS A MISSION OF COLLABORATIVE HEALTH CARE IN THE TWO COMMUNITIES SERVED BY THE INTEGRATED HOSPITALS TO MEET THE HEALTH CARE NEEDS OF THE RESIDENTS AND SURROUNDING AREAS. THIS INTEGRATION ALSO ALLOWS BOTH HOSPITALS TO REALIZE MORE ROBUST PURCHASING POWER AND PHYSICIAN RECRUITMENT OPPORTUNITIES THAN EITHER HOSPITAL COULD GENERATE ON THEIR OWN. PART VI, LINE 7, REPORTS FILED WITH STATES PA PART VI, LINE 2 5. RISK MANAGEMENT AND COMPLIANCE: HEALTHCARE'S TECHNOLOGY HAS NEVER BEEN MORE COMPLICATED, PATIENTS' DEMANDS HIGHER, AND THE BUSINESS CHALLENGES GREATER. ACCORDINGLY, COMPREHENSIVE RISK MANAGEMENT PROGRAM ARE ESSENTIAL IN ASSURING CARE DELIVERY SYSTEMS THAT ARE HIGHLY EFFECTIVE IN TERMS OF ASSURING APPROPRIATE LEVELS OF PATIENT SAFETY AND QUALITY. THE DEPARTMENT OF JUSTICE ESTIMATES THAT THE FEDERAL GOVERNMENT LOSES BILLIONS OF DOLLARS ANNUALLY IN HEALTH CARE FRAUD. CONSEQUENTLY, THE GOVERNMENT'S HEALTHCARE FRAUD ENFORCEMENT ACTIVITIES WITH RESPECT TO ALL HEALTHCARE PROVIDERS CONTINUE TO GROW AND EXPAND. WELL ESTABLISHED CORPORATE COMPLIANCE PROGRAMS ARE ESSENTIAL IN TERMS OF ALLOWING HOSPITALS TO IDENTIFY POTENTIAL AREAS OF LIABILITY AND TO CORRECT PROBLEMS.6. NURSING: NURSES AND NURSING CARE ARE CENTRAL TO THE DELIVERY OF SAFE AND EFFECTIVE PATIENT CARE. ACCORDINGLY, ENSURING AN ADEQUATE NURSINGWORKFORCE AND CREATING A WORK ENVIRONMENT THAT SUPPORTS NURSING PRACTICEAND INTERDISCIPLINARY COLLABORATION ARE IMPORTANT PRIORITIES FOR HOSPITALS TODAY. X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 TIMOTHY FINAN PRESIDENT AND CEO 251621 428437 0 0 0 0 6232 10611 15886 27049 273739 466097 0 0 RICHARD G BRAUN JR SENIOR VP OF FINANCE/CFO 133824 227862 0 0 0 0 5742 9776 13124 22347 152690 259985 0 0 TIMOTHY MCNAMARA SENIOR VP OF HUMAN RESOURC 91232 155340 0 0 0 0 5134 8743 14614 24882 110980 188965 0 0 DR WILLIAM MILLS VP OF MEDICAL AFFAIRS 116645 198613 0 0 0 0 5741 9776 10268 17484 132654 225873 0 0 JASON YAWORSKY SENIOR VP/CIO 85000 144729 0 0 0 0 5895 10037 14576 24818 105471 179584 0 0 GAIL BAGAZZOLI VP OF QUALITY 54843 93380 0 0 0 0 3343 5692 10471 17829 68657 116901 0 0 DENNIS MCCARTHY VP OF COMMUNICATIONS & MAR 52038 88605 0 0 0 0 2224 3787 14309 24363 68571 116755 0 0 JEFFREY ZEWE SENIOR VP OF NURSING PATIE 113042 192478 0 0 0 0 5740 9774 15021 25577 133803 227829 0 0 BASIL ARIGLIO VP OF FINANCE 61303 104380 0 0 0 0 0 0 14613 24881 75916 129261 0 0 MELISSA SULLIVAN VP OF CLINICAL & SUPPORT S 52278 89013 0 0 0 0 1860 3168 12452 21203 66590 113384 0 0 JASON KINKARTZ PHYSICIAN 401174 0 0 0 0 0 14192 0 9866 0 425232 0 0 0 DAVID GODFREY PHYSICIAN 431490 0 0 0 0 0 19492 0 16288 0 467270 0 0 0 SYED ALLY CHIEF OF PATHOLOGY 343039 0 0 0 0 0 16843 0 16287 0 376169 0 0 0 RHONDA PENA PHYSICIAN 338193 0 0 0 0 0 8216 0 5482 0 351891 0 0 0 ARIS GREDZEN PHYSICIAN 306668 0 0 0 0 0 11946 0 14065 0 332679 0 0 0 PART I, LINE 4B TIMOTHY FINAN: SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN - $18,433. A MCKEAN COUNTY HOSPITAL AUTHORITY 251513489 581293CE5 2005-09-14 24093208 CAPITAL PROJECTS AND REFUNDING PAST BONDS 0 0 0 A 23330000 3990812 763208 23330000 2007 1 0 1 1 A 0 0 0 0 0 0 0 A 0 0 0 0 0 0 0 0 0 A 0 JILL OWENS MD DR. OWENS IS THE SPOUSE OF RICHARD G. BRAUN, JR., SENIOR VP OF FINANCE/CFO. 148333 DR. OWENS IS COMPENSATED BY THE HOSPITAL FOR PHYSICIAN SERVICES. 0 RICHARD G BRAUN JR RICHARD G. BRAUN, JR., SENIOR VP OF FINANCE/CFO IS THE SPOUSE OF DR. OWENS. 412675 RICHARD G. BRAUN, JR. IS COMPENSATED BY THE HOSPITAL AND A RELATED PARTY AS SENIOR VP OF FINANCE/CFO. 0 X 6 1188146 FAIR MARKET VALUE 0 1 0 FORM 990, PART I, LINE 1 THE MISSION OF BRADFORD REGIONAL MEDICAL CENTER IS TO PROVIDE THE HIGHEST QUALITY MEDICAL SERVICES IN RESPONSE TO THE HEALTHCARE NEEDS OF THE REGION, TO PROMOTE COMMUNITY WELLNESS, AND TO RESTORE HEALTH AND COMFORT TO PATIENTS AS SWIFTLY AND SAFELY AS POSSIBLE. IN SUPPORT OF THIS MISSION, BRADFORD REGIONAL MEDICAL CENTER IS COMMITTED TO THE FOLLOWING: - QUALITY: WE CONSISTENTLY STRIVE TO PROVIDE THE HIGHEST QUALITY AND SAFEST PATIENT CARE. - RESPECT: WE RESPECT EACH PERSON AS A MEMBER OF THE HOSPITAL COMMUNITY. - COMPASSION: WE SHOW SYMPATHY AND ARE EMPATHETIC OF EACH PERSON'S NEEDS. - SERVICE: WE ARE COMMITTED TO THE HIGHEST STANDARDS OF SERVICE EXCELLENCE AND DEDICATED TO EXCEEDING THE EXPECTATIONS OF THOSE WE SERVE. - RESPONSIBILITY: WE ACCEPT PERSONAL ACCOUNTABILITY FOR ALL OF THE WORK WE DO. - INNOVATION: WE ARE COMMITTED TO CONTINUOUS IMPROVEMENT IN THE DELIVERY OF CARE THROUGH NEW IDEAS AND CREATIVITY. - STEWARDSHIP: WE ENSURE THE ONGOING VIABILITY OF THE ORGANIZATION THROUGH RESPONSIBLE FINANCIAL AND OPERATING MANAGEMENT OF THE MEDICAL CENTER. FORM 990, PART III, LINE 1 THE MISSION OF BRADFORD REGIONAL MEDICAL CENTER IS TO PROVIDE THE HIGHEST QUALITY MEDICAL SERVICES IN RESPONSE TO THE HEALTHCARE NEEDS OF THE REGION, TO PROMOTE COMMUNITY WELLNESS, AND TO RESTORE HEALTH AND COMFORT TO PATIENTS AS SWIFTLY AND SAFELY AS POSSIBLE. IN SUPPORT OF THIS MISSION, BRADFORD REGIONAL MEDICAL CENTER IS COMMITTED TO THE FOLLOWING: - QUALITY: WE CONSISTENTLY STRIVE TO PROVIDE THE HIGHEST QUALITY AND SAFEST PATIENT CARE. - RESPECT: WE RESPECT EACH PERSON AS A MEMBER OF THE HOSPITAL COMMUNITY. - COMPASSION: WE SHOW SYMPATHY AND ARE EMPATHETIC OF EACH PERSON'S NEEDS. - SERVICE: WE ARE COMMITTED TO THE HIGHEST STANDARDS OF SERVICE EXCELLENCE AND DEDICATED TO EXCEEDING THE EXPECTATIONS OF THOSE WE SERVE. - RESPONSIBILITY: WE ACCEPT PERSONAL ACCOUNTABILITY FOR ALL OF THE WORK WE DO. - INNOVATION: WE ARE COMMITTED TO CONTINUOUS IMPROVEMENT IN THE DELIVERY OF CARE THROUGH NEW IDEAS AND CREATIVITY. - STEWARDSHIP: WE ENSURE THE ONGOING VIABILITY OF THE ORGANIZATION THROUGH RESPONSIBLE FINANCIAL AND OPERATING MANAGEMENT OF THE MEDICAL CENTER. FORM 990, PART VI, SECTION A, LINE 2 JILL OWENS, MD, DIRECTOR, AND RICHARD G. BRAUN, JR., SENIOR VP OF FINANCE/CFO HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 UPPER ALLEGHENY HEALTH SYSTEM, INC. IS THE SOLE CORPORATE MEMBER OF THE MEDICAL CENTER. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT COPY OF THE FORM 990 IS REVIEWED FOR ACCURACY AND COMPLETENESS BY THE HOSPITAL'S CHIEF FINANCIAL OFFICER AND SENIOR MANAGEMENT OF UPPER ALLEGHENY HEALTH SYSTEM. IN ADDITION, A FINAL DRAFT COPY OF THE FORM 990 IS PROVIDED TO MEMBERS OF THE BOARD OF DIRECTORS TO REVIEW AND COMMENT PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE HOSPITAL'S CONFLICT OF INTEREST POLICY IS PRESENTED AND REVIEWED ANNUALLY. EACH MEMBER OF THE BOARD COMPLETES A DISCLOSURE FORM. SEE THE FORMAL POLICY, AS OUTLINED IN THE ORGANIZATION'S BYLAWS, BELOW. CONFLICTS OF INTEREST: EACH DIRECTOR, PRIOR TO TAKING HIS POSITION ON THE BOARD, AND ALL PRESENT DIRECTORS AS SOON AS PRACTICABLE AFTER THE ADOPTION OF THESE BYLAWS, SHALL SUBMIT IN WRITING TO THE CHAIRMAN OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER A LIST OF ALL BUSINESS OR OTHER ORGANIZATIONS OF WHICH HE IS AN OFFICER, DIRECTOR, TRUSTEE, MEMBER, OWNER (EITHER AS SOLE PROPRIETOR OR PARTNER), SHAREHOLDER WITH 5% OR GREATER INTEREST IN ALL OUTSTANDING VOTING SHARES, EMPLOYEE OR AGENT, WITH WHICH THE CORPORATION HAS, OR MIGHT BE REASONABLY IN THE FUTURE ENTER INTO, A RELATIONSHIP OR A TRANSACTION IN WHICH THE DIRECTOR WOULD HAVE CONFLICTING INTERESTS. EACH WRITTEN STATEMENT WILL BE RESUBMITTED WITH ANY NECESSARY CHANGES EACH YEAR. THE CHAIRMAN OF THE BOARD SHALL BECOME FAMILIAR WITH THE STATEMENTS OF ALL DIRECTORS IN ORDER TO GUIDE HIS CONDUCT SHALL A CONFLICT ARISE. THE CHAIRMAN-ELECT OF THE BOARD SHALL BE FAMILIAR WITH THE STATEMENT FILED BY THE CHAIRMAN. SHOULD THE CHAIRMAN-ELECT POSITION BE VACANT, THE MOST SENIOR MEMBER OF THE EXECUTIVE COMMITTEE WILL ASSUME THIS RESPONSIBILITY. AT SUCH TIME AS ANY MATTER COMES BEFORE THE BOARD IN SUCH A WAY AS TO GIVE RISE TO A CONFLICT OF INTEREST, THE AFFECTED DIRECTOR SHALL MAKE KNOWN THE POTENTIAL CONFLICT WHETHER DISCLOSED BY HIS WRITTEN STATEMENT OR NOT, AND AFTER ANSWERING ANY QUESTIONS THAT MIGHT BE ASKED HIM, SHALL WITHDRAW FROM THE MEETING FOR SO LONG AS THE MATTER SHALL CONTINUE UNDER DISCUSSION. SHOULD THE MATTER BE BROUGHT TO A VOTE, THE AFFECTED DIRECTOR SHALL NOT VOTE ON IT. IN THE EVENT THE CONFLICT OF INTEREST AFFECTS THE CHAIRMAN, THE CHAIRMAN-ELECT IS EMPOWERED AND SHALL REQUIRE THAT THE CHAIRMAN REMOVE HIMSELF IN THE SAME MANNER, AND FOR THE DURATION OF DISCUSSION AND ACTION ON THE MATTER THE CHAIRMAN-ELECT SHALL PRESIDE. SHOULD THE CHAIRMAN-ELECT POSITION BE VACANT, THE MOST SENIOR MEMBER OF THE EXECUTIVE COMMITTEE WILL ASSUME THIS RESPONSIBILITY. IF THE MATTER IS THE ITEM OF BUSINESS FOR WHICH A SPECIAL MEETING OF THE BOARD WAS CALLED, THE AFFECTED DIRECTOR SHALL NOT BE COUNTED TO ESTABLISH A QUORUM, NOR SHALL HE PARTICIPATE IN THE DELIBERATIONS OR VOTE ON IT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE HOSPITAL D/B/A THE EXECUTIVE COMPENSATION COMMITTEE (THE COMMITTEE) IS APPOINTED BY THE BOARD OF DIRECTORS TO ASSIST THE BOARD IN ESTABLISHING AND OVERSEEING THE EXECUTIVE COMPENSATION PROGRAM OF THE HOSPITAL. THE COMMITTEE IS RESPONSIBLE FOR ADHERING TO THE OVERALL COMPENSATION PHILOSOPHY OF THE HOSPITAL. THE COMPENSATION PHILOSOPHY IS A TOTAL COMPENSATION CONCEPT THAT WILL EMPLOY A COMBINATION OF BASE SALARY, VARIABLE OPPORTUNITY, FLEXIBLE BENEFITS, DEFERRED COMPENSATION AND OTHER PERQUISITES AS MAY BE NEEDED FROM TIME TO TIME TO MAINTAIN A COMPETITIVE POSITION WITH PEER INSTITUTIONS IN THE REGION. FORM 990, PART VI, SECTION C, LINE 19 THE HOSPITAL HAS AVAILABLE, UPON REQUEST TO ADMINISTRATION, ITS MOST RECENTLY FILED FORM 990, GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS. THE HOSPITAL ALSO REPORTS ANNUALLY ITS COMMUNITY BENEFIT EFFORTS AND ISSUES ANNUAL REPORT THAT INCLUDES FINANCIAL AND OTHER INFORMATION OF INTEREST TO THE PUBLIC. FORM 990, PART XI, LINE 9: PENSION LIABILITY ADJUSTMENT -932,685. SETTLEMENT OF INTERCOMPANY BALANCES 8,846,337. FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE CONSOLIDATED AUDIT, AS WELL AS THE CHOICE OF AN INDEPENDENT ACCOUNTANT. THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. BRADFORD REGIONAL MEDICAL SERVICES 116-156 INTERSTATE PARKWAY BRADFORD PA 16701 232875157 PHYSICIANS PRACTICE PA 501(C)(3) LINE 3 BRADFORD HOSPITAL 0 BRADFORD HOSPITAL FOUNDATION 116 INTERSTATE PARKWAY BRADFORD PA 16701 251612399 FUNDRAISING PA 501(C)(3) LINE 12A, I BRADFORD HOSPITAL 0 UPPER ALLEGHENY HEALTH SYSTEM INC 515 MAIN STREET OLEAN NY 14760 271255425 MANAGEMENT HOLDING CORPORATION NY 501(C)(3) LINE 12A, I N/A 0 OLEAN GENERAL HOSPITAL 515 MAIN STREET OLEAN NY 14760 160743102 HOSPITAL NY 501(C)(3) LINE 3 UPPER ALLEGHENY HEALTH SYSTEM INC 0 BRADFORD HEALTH ENTERPRISES 116-156 INTERSTATE PARKWAY BRADFORD PA 16701 251591420 INVESTMENT PA BRADFORD HOSPITAL C 1.00000 0 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 0