2017-11-13T11:46:23-06:00 2016-12-31 990 2016-01-01 541217183 SENTARA LIFE CARE CORPORATION SENT 7574557020 6015 POPLAR HALL DRIVE NORFOLK VA 23502 ROBERT A BROERMANN TREASURER 7574557020 2017-11-13 163.230.250.197 2017-11-13 12:44:51 ES P 5DE4645C05D0C16B02C5EBC66FC9207F882F5D80 5DE4645C05D0C16B02C5EBC66FC9207F882F5D80 2016 2018-03-14 21:41:22Z HOWARD P KERN 6015 POPLAR HALL DRIVE NORFOLK VA 23502 89270381 0 X WWW.SENTARA.COM X 1982 VA AS PART OF SENTARA HEALTHCARE'S INTEGRATED HEALTH CARE SYSTEM, WE IMPROVE HEALTH EVERY DAY. 3 0 1151 556 0 0 28352 8557 93425218 89211100 -51428 -341314 29074 49924 93431216 88928267 1103977 1552469 0 0 47724243 49203800 0 0 0 42991903 42724454 91820123 93480723 1611093 -4552456 44780012 53655434 7714179 7061706 37065833 46593728 X SEE SCHEDULE O.AS PART OF SENTARA HEALTHCARE'S INTEGRATED HEALTH CARE SYSTEM, WE IMPROVE HEALTH EVERY DAY THROUGH THE ESTABLISHMENT AND OPERATION OF PROGRAMS AND SERVICES FOR THE PROVISION OF HEALTH CARE AND FOR HEALTH RELATED PURPOSES; THE PROMOTION AND ADVANCEMENT OF THE WELFARE AND SOCIAL, CULTURAL, EDUCATIONAL, AND ECONOMIC DEVELOPMENT OF THE COMMUNITY; AND THE PROMOTION OF HEALTH.SEE THE PROGRAM SERVICE ACCOMPLISHMENTS BELOW FOR FURTHER INFORMATION. 0 0 75417095 1552469 89211100 SEE SCHEDULE O. 75417095 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 X 51 0 1 1151 1 0 0 0 0 0 0 0 0 0 0 X 3 0 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X CORPORATE OFFICERS 7574557020 6015 POPLAR HALL DR NORFOLK VA 23502 MICHAEL V GENTRY DIRECTOR(EFF 6/16) 1.00 53.00 X 0 1044814 143725 DAVID L BERND DIRECTOR/CHAIRMAN(THRU 6/16) 1.00 50.00 X X 0 7825434 81327 ROBERT A BROERMANN DIRECTOR/TREAS 1.00 52.00 X X 0 1503780 71355 HOWARD P KERN DIR/PRES(THRU 6/16)/CHAIR(EFF 6/16) 1.00 50.00 X X 0 2428937 1918643 JEFFREY P KING SECRETARY 1.00 48.00 X 0 664448 100828 BRUCE S ROBERTSON VP/ADMIN(THRU 6/16)/PRES(EFF 6/16) 1.00 40.00 X 0 358849 116853 ANNIE M ALEXANDER MARKETING/PR COORDINATOR 40.00 0.00 X 134230 0 26056 IRVIN R LAND JR LTC ADMINISTRATOR, SLCC 40.00 0.00 X 129851 0 23426 RHONDA S ROUSE LTC ADMINISTRATOR, SLCC 40.00 0.00 X 127731 0 17732 ROBERT E BRUCE LTC ADMINISTRATOR, SLCC 40.00 0.00 X 122247 0 376 LAUREN R NEWMAN TEAM COORINATOR, AMBULATORY REHAB 40.00 0.00 X 119880 0 11494 GRACE R HINES FORMER OFFICER 0.00 40.00 X 0 582223 87764 633939 14408485 2599579 19 1 1 0 JAMES R VANNOY & SONS CONSTRUCTION PO BOX 635 JEFFERSON NC 28640 CONSTRUCTION 10723710 ND ACQUISITIONS CORP 5215 LINBAR DRIVE SUITE 210 NASHVILLE TN 37211 PHARMACY SOLUTIONS 1047660 C WRIGHT CONTRACTING CORP 940 CORPORATE LANE SUITE D CHESAPEAKE VA 23320 CONSTRUCTION 653227 KATCHMARK CONSTRUCTION INC 123 BRUTON CT SUITE 103 CHESAPEAKE VA 23322 CONSTRUCTION 618686 AMN HEALTHCARE INC 2735 COLLECTION CENTER DRIVE CHICAGO IL 60693 HEALTHCARE STAFFING SOLUTIONS 556353 13 8557 8557 PATIENT SERVICE REV 900099 88839947 88839947 MEALS ON WHEELS 624210 293982 293982 FACILITY SPACE RENTALS 900099 77171 77171 89211100 800 342114 -341314 -341314 -341314 OTHER REVENUE 900099 35924 35924 CAFETERIA & VENDING 900099 14000 14000 49924 88928267 89211100 0 -291390 1552469 1552469 39600530 32076429 7524101 625809 506905 118904 6077129 4922474 1154655 2900332 2349269 551063 1593287 1290562 302725 52387 42433 9954 4028 3263 765 4045184 3826694 218490 7542 6109 1433 2875284 2328980 546304 166325 134723 31602 2592009 2099527 492482 153448 124293 29155 50601 40987 9614 2601023 2106829 494194 983848 796917 186931 MEDICAL SUPPLIES EXPENS 11844814 11844814 CORP EXPENSE ALLOCATION 5930519 5930519 MEDICAL CLAIM & CAPITAT 4958422 4958422 BAD DEBT PROVISION 2440802 2440802 2424931 1964194 460737 93480723 75417095 18063628 0 414856 410480 15512596 11172701 1081064 1091352 102479 82643 85608505 45287588 27088696 40320917 577341 577341 2980 0 44780012 53655434 2837678 1838105 39159 34925 186170 220543 4651172 4968133 7714179 7061706 X 37037763 46560036 17604 23226 10466 10466 37065833 46593728 44780012 53655434 X -4552456 14080351 X 0 1 X 1 0 X 132 17330 5225 28352 8557 59596 84939419 90255946 93414054 93425218 89211100 451245737 50978 58283 41694 29074 49924 229953 84990529 90331559 93460973 93482644 89269581 451535286 0 0 0 451535286 84990529 90331559 93460973 93482644 89269581 451535286 1.00000 1.00000 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 28069 8500 2877 33692 26732 27538 26201 28069 18194 420 -8119 26732 10466 15455 7727 18194 10466 10466 0.31060 0.68940 0 0 3650309 3650309 33938853 21481639 12457214 2465741 677948 1787793 28827596 22273366 6554230 16726006 854635 15871371 40320917 DUE TO THIRD PARTY PAYORS 1294550 MEDICAL CLAIMS PAYABLE 780579 GENERAL RESERVE 1833258 DUE TO AFFILIATES 59746 OTHER LIABILITIES 1000000 4968133 PART IV, LINE 2B: EXPLANATION OF ESCROW ACCOUNT LIABILITY MEDICAID REGULATIONS REQUIRE NURSING HOME PROVIDERS TO OFFER A DEDICATED BANKING ACCOUNT AVAILABLE TO RESIDENTS FOR THE PURPOSE OF DEPOSITING MONIES, ACCESS TO MINIMAL PETTY CASH, ASSISTANCE OF BILL PAYMENT (NEWSPAPERS, BEAUTICIANS, HEALTH/LIFE INSURANCE PREMIUMS, TELECOMMUNICATION EXPENSES, ETC). ALTHOUGH MEDICAID REGULATIONS REQUIRE THIS, SERVICE IS OFFERED TO ALL RESIDENTS, REGARDLESS OF PAYOR SOURCE. FUNDS ARE STRICTLY THE PROPERTY OF THE RESIDENTS. NO CO-MINGLING WITH (SENTARA) OPERATING FUNDS IS PERMITTED. PART V, LINE 4: AN ENDOWMENT FUND WAS ESTABLISHED AT THE REQUEST OF THE DONOR TO PROVIDE FUNDING FOR THE CONTINUED IMPROVEMENT OF THE CHAPEL AT SENTARA NURSING CENTER - HAMPTON, AS WELL AS TO PROVIDE SOCIAL AND SPIRITUAL PROGRAMS FOR THE SENTARA NURSING CENTER RESIDENTS. FUNDS WERE ALSO CREATED FOR MOBILE MEALS TO COMMUNITY MEMBERS IN NEED; A CLINICAL EDUCATION INITIATIVE PROVIDING SCHOLARSHIPS TO CURRENT NURSE EMPLOYEES FOR OBTAINING A BACHELOR OF SCIENCE IN NURSING; AND BIOTERRORISM RESPONSE TRAINING. 1 SENTARA HEALTHCARE 6015 POPLAR HALL DRIVE NORFOLK VA 23502 521271901 501(C)(3) 1552469 CORPORATE ALLOCATION TO PARENT 1 0 PART I, LINE 2: PROCEDURES FOR MONITORING USE OF GRANTS FUNDS IN U.S. AS PART OF THE SENTARA HEALTHCARE SYSTEM ("THE SYSTEM"), THE ORGANIZATION DONATES FUNDS TO ITS 501(C)(3) PARENT ORGANIZATION, SENTARA HEALTHCARE, IN FURTHERANCE OF THE SYSTEM'S MISSION TO IMPROVE HEALTH EVERYDAY THROUGH THE PROVISION OF HEALTH SERVICES, AND THE PROMOTION OF HEALTH, MEDICAL EDUCATION, AND THE SOCIAL, CULTURAL, EDUCATIONAL, AND ECONOMIC DEVELOPMENT OF THE COMMUNITY. EXPENDITURE OF SUCH FUNDS IS OVERSEEN BY AN INDEPENDENT COMMUNITY BOARD WHICH MANAGES THE BUSINESS AND AFFAIRS OF THE SYSTEM. 0 1 0 0 0 0 0 1 0 MICHAEL V GENTRY DIRECTOR(EFF 6/16) 0 642866 0 328762 0 73186 0 126898 0 16827 0 1188539 0 55185 DAVID L BERND DIRECTOR/CHAIRMAN(THRU 6/16) 0 841431 0 1546313 0 5437690 0 57745 0 23582 0 7906761 0 2319488 ROBERT A BROERMANN DIRECTOR/TREAS 0 761691 0 577570 0 164519 0 52625 0 18730 0 1575135 0 0 HOWARD P KERN DIR/PRES(THRU 6/16)/CHAIR(EFF 6/16) 0 1292371 0 892734 0 243832 0 1897938 0 20705 0 4347580 0 0 JEFFREY P KING SECRETARY 0 451951 0 150361 0 62136 0 77120 0 23708 0 765276 0 26371 BRUCE S ROBERTSON VP/ADMIN(THRU 6/16)/PRES(EFF 6/16) 0 238908 0 77574 0 42367 0 105597 0 11256 0 475702 0 0 ANNIE M ALEXANDER MARKETING/PR COORDINATOR 77891 0 56276 0 63 0 4208 0 21848 0 160286 0 0 0 IRVIN R LAND JR LTC ADMINISTRATOR, SLCC 115416 0 8916 0 5519 0 4107 0 19319 0 153277 0 0 0 GRACE R HINES FORMER OFFICER 0 311684 0 189195 0 81344 0 66415 0 21349 0 669987 0 0 PART I, LINE 3 SENTARA HEALTHCARE, THE 501(C)(3) SOLE MEMBER OF THE ORGANIZATION, ESTABLISHED THE COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL THROUGH THE USE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION STUDY. PART I, LINE 4B HOWARD KERN PARTICIPATED IN THE SENTARA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. PARTICIPATION IN THE PLAN IS LIMITED TO SELECT INDIVIDUALS AS APPROVED BY SENTARA HEALTHCARE'S BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. THE PLAN IS CURRENTLY CLOSED TO ADDITIONAL MEMBERS. VESTING OCCURS UPON THE COMPLETION OF A TWO YEAR NON-COMPETE PERIOD FOLLOWING TERMINATION AFTER EARLY RETIREMENT DATE OR UPON DEATH. EARLY RETIREMENT DATE IS WHEN THE EXECUTIVE OBTAINS AT LEAST AGE 55 AND HAS 10 YEARS OF SERVICE AND BENEFITS ARE FORFEITED IF PARTICIPANT LEAVES PRIOR TO AGE 55 WITH 10 YEARS OF SERVICE. DAVID BERND PARTICIPATED IN THE SENTARA OPTION PLAN FOR EXECUTIVES. THIS PLAN IS UNRELATED TO "EQUITY" OF THE EMPLOYER. PARTICIPATION IS LIMITED TO SELECT INDIVIDUALS AS APPROVED BY OR SENTARA HEALTHCARE'S BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. VESTING IS DETERMINED BY THE GOVERNING BOARD OF SENTARA HEALTHCARE AND IS SEPARATELY STATED IN EACH PARTICIPANT'S OPTION AGREEMENT. THERE WERE NO OPTIONS GRANTED AFTER 2002. DURING 2016 MR. BERND RECEIVED $5,243,877 UPON EXERCISE OF OPTIONS GRANTED UNDER THE PLAN. THIS AMOUNT HAS BEEN REPORTED IN COLUMN(B)(III) OF SCHEDULE J, PART II. DAVID BERND, HOWARD KERN, ROBERT BROERMANN, MICHAEL GENTRY, GRACE HINES, BRUCE ROBERTSON AND JEFFREY KING PARTICIPATED IN THE SENTARA CAPITAL ACCUMULATION ACCOUNT PLAN. PARTICIPATION IS LIMITED TO A SELECT GROUP OF CORPORATE EXECUTIVES AS APPROVED BY SENTARA HEALTHCARE'S BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. TERMS OF THE PLAN CHANGED EFFECTIVE JANUARY 1, 2009, WHEREBY VESTING OF CONTRIBUTIONS MADE ON OR AFTER THAT DATE NOW OCCURS ON THE EARLIER OF FIVE YEARS FOR EACH YEARS' CONTRIBUTIONS OR AGE 55 WITH 10 YEARS OF SERVICE. UNDER THE OLD TERMS, VESTING OF CONTRIBUTIONS MADE PRIOR TO JANUARY 1, 2009 OCCURS ON THE EARLIEST OF ASSIGNED DISTRIBUTION DATE, DEATH, INVOLUNTARY TERMINATION WITHOUT CAUSE OR COMPLETION OF TWO-YEAR NON-COMPETE AFTER VOLUNTARY TERMINATION (REGARDLESS OF ORIGINAL ASSIGNED DISTRIBUTION DATE). DURING 2016 THE FOLLOWING CORPORATE EXECUTIVES RECEIVED VESTED DISTRIBUTIONS UNDER THE PLAN: DAVID BERND ($115,509); ROBERT BROERMANN ($138,886); MICHAEL GENTRY ($58,182); GRACE HINES ($47,777); HOWARD KERN ($202,907); JEFFREY KING ($40,639); AND BRUCE ROBERTSON ($18,176). THESE AMOUNTS HAVE BEEN REPORTED IN COLUMN (B)(III) OF SCHEDULE J, PART II. PART I, LINE 7 NON-FIXED PAYMENTS NOT LISTED DURING THE CURRENT TAX YEAR, THE ORGANIZATION MADE NON-FIXED PAYMENTS OF COMPENSATION UNDER THE FOLLOWING INCENTIVE PROGRAMS: MANAGER INCENTIVE PLAN - MANAGEMENT EMPLOYEES NOT COVERED UNDER ANOTHER INCENTIVE PLAN ARE ELIGIBLE FOR THE MANAGEMENT INCENTIVE PLAN. AWARDS ARE BASED ON SYSTEM YEAR-END RESULTS AS DETERMINED BY THE BOARD; BUSINESS UNIT RESULTS FOR FINANCIAL, SAFETY, QUALITY AND CUSTOMER SERVICE; AND THE MANAGER'S INDIVIDUAL PERFORMANCE SCORE. SYSTEM, BUSINESS UNIT, AND INDIVIDUAL RESULTS ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. FORM 990, PART III, LINE 4A SENTARA LIFE CARE CORP. PROVIDES LONG TERM HEALTH CARE AND RELATED SERVICES FOR OLDER ADULTS. SERVICES INCLUDE SKILLED AND REHABILITATIVE NURSING CARE, VENTILATOR CARE, A SPECIALTY ALZHEIMER'S UNIT, ADULT DAY HEALTH CARE CENTER, PERSONAL EMERGENCY RESPONSE AND SUPPORT SERVICES, AND MULTIPLE MOBILE MEAL PROGRAMS DELIVERING DAILY TO THE AT-HOME ELDERLY. SENTARA LIFE CARE CORPORATION OPERATES OVER 1,000 LONG TERM CARE BEDS IN TEN FACILITIES, INCLUDING NURSING CENTERS AND ASSISTED LIVING FACILITIES. PATIENT DAYS FOR THE YEAR ENDED 12/31/16 WERE 310,238, INCLUDING 167,085 MEDICAID PATIENT DAYS. ALL SERVICES ARE PROVIDED TO THE COMMUNITY REGARDLESS OF RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE OR ABILITY TO PAY. THE COST OF UNCOMPENSATED CARE PROVIDED BY SENTARA LIFE CARE CORP. TO THE COMMUNITY DURING 2016 WAS OVER $6.4 MILLION. SEE DESCRIPTION OF PROGRAMS AND ACCOMPLISHMENTS OF THE SENTARA HEALTHCARE SYSTEM FOR 2016. FORM 990, PART III, LINE 4A SENTARA HEALTHCARE I. SENTARA HEALTHCARE - YOUR NOT FOR PROFIT HEALTHCARE PARTNER SENTARA HEALTHCARE BASED IN NORFOLK, VA, CELEBRATES MORE THAN 128 YEARS IN RELENTLESS PURSUIT OF ITS MISSION TO IMPROVE HEALTH EVERY DAY THROUGH INNOVATION, COMPASSION AND COMMUNITY BENEFIT. SENTARA IS A FULLY-INTEGRATED NOT-FOR-PROFIT SYSTEM WITH NEARLY 300 SITES OF CARE OF WHICH THERE ARE 12 HOSPITALS IN VIRGINIA AND NORTH CAROLINA, INCLUDING A LEVEL I TRAUMA CENTER WITH NIGHTINGALE REGIONAL AIR AMBULANCE AND THE NATIONALLY-RANKED SENTARA HEART HOSPITAL. THE SENTARA FAMILY INCLUDES FOUR MEDICAL GROUPS, AMBULATORY CAMPUSES, POST-ACUTE CARE SERVICES, THE PHYSICIAN-LED SENTARA QUALITY CARE NETWORK, THE ACCREDITED SENTARA CANCER NETWORK, THE SENTARA COLLEGE OF HEALTH SCIENCES, OPTIMA HEALTH PLAN MEMBERS IN VIRGINIA, ALABAMA AND OHIO, AND A TEAM OF PROFESSIONALS NEARLY 30,000 STRONG. SENTARA PROUDLY INCLUDES ADVANCED IMAGING CENTERS, NURSING AND ASSISTED LIVING CENTERS, PHYSICAL THERAPY AND REHABILITATION SERVICES, HOME HEALTH AND HOSPICE, AND GROUND MEDICAL TRANSPORTATION. SENTARA IS STRATEGICALLY FOCUSED ON CONTINUOUS IMPROVEMENT IN QUALITY, SAFETY, CLINICAL OUTCOMES AND THE PATIENT EXPERIENCE AND PURSUES KEY CLINICAL GOALS THROUGH HIGH-PERFORMANCE TEAMS ACROSS THE ENTERPRISE. EFFORTS ARE CENTERED ON PROVIDING THE RIGHT CARE IN THE RIGHT SETTING AT THE RIGHT TIME AND ADDING VALUE TO THE COMMUNITIES WE SERVE. WE STRIVE TO SERVE ALL OF OUR COMMUNITIES THROUGH HEALTH OUTREACH PROGRAMS, EDUCATION, AND FINANCIAL SUPPORT OF OTHER NOT FOR PROFIT ORGANIZATIONS WITH SIMILAR HEALTH MISSIONS. II. COMMITMENT TO THE COMMUNITY A. SENTARA HAS PROVIDED MUCH IN THE WAY OF COMMUNITY BENEFIT AND CHARITY CARE ON AN ANNUAL BASIS. IN 2016, SENTARA COMMUNITY BENEFIT REACHED $341,145,000. SENTARA PROVIDED $310,123,000 IN NET UNCOMPENSATED PATIENT CARE; $18,923,000 IN MEDICAL EDUCATION; AND $12,099,000 IN COMMUNITY PROGRAMS. B. SENTARA IS PROUD OF THE MISSION-DRIVEN WORK OF THE THREE SENTARA FOUNDATIONS. THESE FOUNDATIONS RAISED MONEY TO SUPPORT THE CLINICAL NEEDS OF THE SYSTEM AND PROVIDED FUNDING THROUGH GRANTS AND DIRECT CONTRIBUTIONS TO COMMUNITY ORGANIZATIONS THAT HAVE SIMILAR INTERESTS IN COMMUNITY HEALTH NEEDS. SENTARA FOUNDATION-HAMPTON ROADS FUNDED 31 COMMUNITY GRANTS IN 2016 TOTALING $580,000. THE RMH FOUNDATION FUNDED 7 COMMUNITY HEALTH GRANTS, AWARDING $87,000. ADDITIONALLY, THEY PROVIDED FUNDING FOR THE NEW HYBRID OPERATING ROOM AND CREATED A NEW FUND TO PROVIDE PREVENTIVE SCREENINGS FOR CANCER PATIENTS IN THE COMMUNITY. THE MARTHA JEFFERSON HOSPITAL FOUNDATION RAISED FUNDS TO SUPPORT WOMEN'S HEALTH IN THE COMMUNITY. ALL THREE FOUNDATIONS RALLIED AROUND SUPPORT FOR NURSING EXCELLENCE AND INNOVATION, FUNDING 168 SCHOLARSHIPS FOR REGISTERED NURSES WHO ARE PURSUING THEIR BACHELORS OF SCIENCE IN NURSING. SEVERAL YEARS AGO, SENTARA ESTABLISHED THE HOPE (HELPING OVERCOME PERSONAL EMERGENCY) FUND, WHICH IS AN EMERGENCY FINANCIAL RESOURCE FOR SENTARA EMPLOYEES THAT ARE EXPERIENCING CATASTROPHIC HARDSHIP OR LOSS THROUGH NO FAULT OF THEIR OWN. SENTARA EMPLOYEES WHO RECEIVE AID FROM THE HOPE FUND HAVE FACED DEVASTATING CRISES SUCH AS FIRE, DEATH, NATURAL DISASTERS, OR SERIOUS PERSONAL OR FAMILY ILLNESS. IN 2016, THE HOPE FUND AWARDED $183,743 TO SENTARA EMPLOYEES IN CRISES ACROSS THE SYSTEM. C. COMMUNITY HEALTH INITIATIVES SENTARA AND OPTIMA HEALTH HAVE LONG BEEN COMMITTED TO PROVIDING HEALTH AND PREVENTION SERVICES TO THE COMMUNITIES WE SERVE THROUGH MANY CHANNELS INCLUDING THE SENTARA HEALTHCARE COMMUNITY HEALTH AND PREVENTION ORGANIZATION WITHIN SENTARA. BELOW ARE SOME KEY HIGHLIGHTS OF THE EFFORTS IN OUR COMMUNITIES IN 2016: -HEALTH IMPROVEMENT EVENTS WERE OFFERED TO CHURCHES, EMPLOYER GROUPS INCLUDING SENTARA HEALTHCARE AND HAMPTON ROADS SANITATION DISTRICT, COMMUNITY HEALTH CENTERS AND OTHER COMMUNITY LOCATIONS INCLUDING THE POCKET EKG PROGRAM AND THE SENTARA LIVING PROGRAM. -CONTINUED TO OFFER PROGRAMS SUCH AS EATING FOR LIFE, WALKABOUT WITH HEALTHY EDGE, HEALTH HABITS, HEALTHY YOU, MEDITATION, TAICHI AND YOGA. -THE FLU PATROL ADMINISTERED A TOTAL OF 5,802 IMMUNIZATIONS. 5,124 WERE GIVEN TO OPTIMA HEALTH INSURED GROUPS THROUGHOUT VIRGINIA. THE REMAINDER WAS DELIVERED TO CHURCHES AND OTHER COMMUNITY GROUPS. -BIRTHDAY CARD REMINDERS FOR PREVENTIVE HEALTH SCREENINGS WERE DELIVERED TO ADULT MEMBERS OF OPTIMA HEALTH, OHIOHEALTH PLAN MEMBERS AND CHILDREN. SELF-CARE HANDBOOKS ON PLANNING A HEALTHY PREGNANCY WERE DISTRIBUTED TO OPTIMA HEALTH - HEALTH PLAN MEMBERS. -THE TOBACCO CESSATION PROGRAM CREATED SEVERAL NEW LITERATURE PIECES FOR THE GREAT AMERICAN SMOKEOUT. PATIENTS DISCHARGED FROM SENTARA VIRGINIA BEACH GENERAL HOSPITAL AND SENTARA HEART HOSPITAL WERE CONTACTED FOUR WEEKS AFTER THEIR HOSPITAL DISCHARGE FOR TOBACCO CESSATION FOLLOW-UP. -AS PART OF THE SENTARA BENEFIT ENROLLMENT PROCESS, 18,720 EMPLOYEES COMPLETED A HEALTH RISK ASSESSMENT IN CONJUNCTION WITH THE MISSION: HEALTH PROGRAM. -FINALLY, WEBMD, WHICH SERVES AS OUR HEALTH COACHING AND HEALTH EDUCATION PORTAL PARTNER, HAS NOW 21,549 REGISTERED MEMBERS OF WHICH 15,076 MEMBERS ARE ACTIVELY ENGAGED. SENTARA HOSTS A NUMBER OF COMMUNITY EVENTS RAISING AWARENESS AROUND KEY HEALTH AWARENESS MONTHS. ONE GOOD EXAMPLE IS THE FOCUS ON COLON CANCER: DON'T SIT ON COLON CANCER. THROUGH THE SENTARA CANCER NETWORK, WE HOSTED A 5K AT SENTARA PRINCESS ANNE HOSPITAL IN VIRGINIA BEACH. THROUGH SENTARA HEART, WE PROMOTED THE "28 DAYS OF HEART" IN FEBRUARY, 2016 IN SUPPORT OF HEART HEALTH AWARENESS. ONLINE PROMOTIONS, RADIO ADS, FACEBOOK LIVE EDUCATION SESSIONS, SCREENINGS AND MORE WERE CONDUCTED TO RAISE AWARENESS OF HEART DISEASE THROUGHOUT THE COMMUNITIES WE SERVE IN VIRGINIA AND NORTH CAROLINA. III. GROWTH IN SENTARA HEALTHCARE SINCE THE BEGINNING, SENTARA HAS REACHED OUT TO OTHER INDUSTRY LEADERS AND JOINED FORCES TO EXTEND QUALITY HEALTHCARE AND SERVICES TO MORE PEOPLE. IN RECENT YEARS, WE HAVE GROWN IN VIRGINIA AND IN OTHER STATES - NORTH CAROLINA, ALABAMA AND OHIO - BY SEEKING PARTNERSHIPS WITH SUCCESSFUL HOSPITALS AND HEALTH SYSTEMS THAT SHARE OUR DEDICATION TO EXCELLENCE, VALUE, QUALITY AND CUSTOMER FOCUS. OUR GROWTH IN 2016 INCLUDED THE FOLLOWING: A. SENTARA QUALITY CARE NETWORK (SQCN): SQCN IS A CLINICALLY INTEGRATED NETWORK (CIN) SERVING THE COMMUNITIES OF HAMPTON ROADS, CHARLOTTESVILLE AND HARRISONBURG REGIONS IN VIRGINIA. SQCN IS A COLLABORATION AMONG INDEPENDENT/PRIVATE PRACTICE AND EMPLOYED PHYSICIANS AND A HOSPITAL OR HEALTH SYSTEM, TO DEVELOP A CLINICAL INTEGRATION PROGRAM; A CLINICAL INTEGRATION PROGRAM IS AN ACTIVE AND ONGOING PROGRAM OF CLINICAL INITIATIVES TO IMPROVE THE QUALITY AND DELIVERY OF HEALTH CARE SERVICES, LEADING TO GREATER EFFICIENCY IN CARE DELIVERY AND COST SAVINGS. THE SENTARA QUALITY CARE NETWORK INCREASED TO 2,981 PROVIDERS (2,754 IN 2015) AND 67,573 PATIENTS (30,647 IN 2015) ACROSS VIRGINIA. B. SENTARA DEVELOPED THE FIRST EVER SYSTEM-WIDE BEHAVIORAL HEALTH STRATEGIC PLAN. THE PLAN PROVIDES THE STRATEGIC DIRECTION FOR THE COMPANY AS TO HOW TO PROVIDE APPROPRIATE, COMPASSIONATE, AND TIMELY CARE TO A VULNERABLE POPULATION OF PATIENTS AND MEMBERS. SENTARA VIRGINIA BEACH GENERAL HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, AND SENTARA OBICI HOSPITAL, LOCATED IN SUFFOLK, VIRGINIA, INCREASED THEIR BEHAVIORAL HEALTH ADMISSIONS BY 10+%. IV. NEW INITIATIVES A. SENTARA JOINED SIXTEEN OTHER HEALTHCARE INSTITUTIONS TO COLLABORATE WITH IBM'S WATSON HEALTH IN A LARGE - SCALE MEDICAL IMAGING EFFORT TO IMPROVE PATIENT DIAGNOSIS AND CARE. IBM WATSON HEALTH IS A TECHNOLOGY PLATFORM THAT USES NATURAL LANGUAGE PROCESSING MACHINE LEARNING TO REVEAL INSIGHTS FROM LARGE AMOUNTS OF UNSTRUCTURED DATA. B. SENTARA KICKED OFF THE IMPLEMENTATION OF TWO EPIC PRODUCTS, "PRELUDE AND "RESOLUTE." PRELUDE IS THE EPIC SYSTEM RELATED TO REGISTRATION AND RESOLUTE IS THE BILLING SYSTEM. THIS IMPLEMENTATION WILL TAKE PLACE SYSTEM-WIDE OVER THE NEXT SEVERAL YEARS. FORM 990, PART III, LINE 4A C. SENTARA EXPANDED OUR TELEHEALTH SERVICES THROUGHOUT THE SYSTEM. SENTARA PRINCESS ANNE HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, INSTALLED A "VIRTUAL VISITATION" SERVICE IN ITS NEONATAL INTENSIVE CARE UNIT TO CONNECT REMOTE FAMILY MEMBERS WITH PATIENTS. SENTARA EXPANDED ITS EICU REMOTE MONITORING SYSTEM FOR ICU BEDS AT SENTARA OBICI HOSPITAL, LOCATED IN SUFFOLK, VIRGINIA. A TOTAL OF 119 ICU BEDS IN SEVERAL HOSPITALS HAVE ACCESS TO THE REMOTE MONITORING SYSTEM. TELESTROKE WAS INTRODUCED AT SENTARA ALBEMARLE MEDICAL CENTER, LOCATED IN ELIZABETH CITY, NORTH CAROLINA. SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER, LOCATED IN WILLIAMSBURG, VIRGINIA, EXPANDED INPATIENT TELENEUROLOGY SERVICES. SENTARA EXPANDED ITS TELEPSYCH SERVICES TO SIX EMERGENCY DEPARTMENTS TO REMOTELY ASSESS PSYCHIATRIC PATIENTS. MORE THAN HALF OF THE PSYCHIATRIC EVALUATIONS IN SENTARA EMERGENCY ROOMS ARE PERFORMED BY VIRTUAL TECHNOLOGIES. TELEMAGISTRATE SERVICES WERE EXPANDED TO SENTARA NORFOLK GENERAL HOSPITAL, LOCATED IN NORFOLK, VIRGINIA AND SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER, LOCATED IN WILLIAMSBURG, VIRGINIA ALLOWING MAGISTRATES TO REMOTELY CONNECT WITH PSYCHIATRIC EVALUATORS TO DETERMINE IF EMERGENCY OR TEMPORARY DETENTION ORDERS SHOULD BE ISSUED FOR PATIENTS. D. SENTARA VOLUNTARILY BECAME A PARTICIPANT IN THE CMS BUNDLED PAYMENT FOR CLINICAL IMPROVEMENT PROGRAM (BPCI) AND PARTNERED WITH SQCN TO DEVELOP CRITICALLY IMPORTANT MULTI-DISCIPLINARY AND MULTI-DIVISION 90 DAY PLANS FOR CARE FOR THE EFFECTIVE MANAGEMENT OF PATIENTS FOLLOWING TRANSITION FROM A HOSPITAL WITH SPECIFIC ATTENTION TO CARE IN THE POST - ACUTE AND AMBULATORY VENUES. E. IN ITS SECOND YEAR, CLINICAL PERFORMANCE IMPROVEMENT (CLINICAL PI), AN INITIATIVE TO DRIVE CHANGE AND CREATE RAPID PROCESS IMPROVEMENT IN TARGETED CLINICAL AREAS, RESULTED IN ALL 8 FOCUS AREAS EXCEEDING THEIR GOALS, BUT MORE IMPORTANTLY, MADE AN INCREDIBLE POSITIVE IMPACT ON QUALITY AND OUTCOMES COLLECTIVELY IMPACTING MORE THAN 750,000 PATIENTS AND MEMBERS. V. OFFERING NEW PROCEDURES AND TECHNOLOGIES CLINICAL BREAKTHROUGHS: SENTARA INTRODUCED MANY NEW CLINICAL BREAKTHROUGHS THAT BENEFITED THE PATIENT IN MANY AREAS OF CARE, INCLUDING CARDIAC AND VASCULAR. A. CARDIAC: I. SENTARA CARDIAC SPECIALISTS PLACED HAMPTON ROADS' (SOUTHEASTERN VIRGINIA) FIRST DISSOLVABLE STENT AT SENTARA HEART HOSPITAL. "ABSORB" IS THE FIRST FULLY DISSOLVING DEVICE OF ITS KIND - A DRUG ELUTING CORONARY STENT THAT DISSOLVES, COMPLETELY AND NATURALLY, IN THE BODY OVER TIME. THE DEVICE DISAPPEARS IN APPROXIMATELY THREE YEARS, ONCE IT HAS DONE THE JOB OF KEEPING A CLOGGED ARTERY OPEN AND PROMOTING HEALING OF THE ARTERY. II. SENTARA HEART HOSPITAL IS THE FIRST HOSPITAL IN HAMPTON ROADS (SOUTHEASTERN VIRGINIA) AND THE SECOND IN VIRGINIA TO IMPLANT THE WORLD'S SMALLEST PACEMAKER, MICRA TRANSCATHETER PACING SYSTEM (TPS). THE MICRA DEVICE IS MUCH SMALLER THAN A TRADITIONAL PACEMAKER, COMPARABLE IN SIZE TO A LARGE VITAMIN. THE SMALL SIZE ALLOWS THE DEVICE TO BE DELIVERED THROUGH A CATHETER AND IMPLANTED DIRECTLY INTO THE HEART, WITHOUT THE NEED FOR CARDIAC WIRE LEADS. B. VASCULAR: THE VEIN CENTER OF VIRGINIA, OPERATED BY SENTARA MEDICAL GROUP, BECAME THE FIRST CIVILIAN MEDICAL CENTER IN SOUTHEAST VIRGINIA TO USE THE VENASEAL CLOSURE SYSTEM TO TREAT VARICOSE VEINS - VENOUS REFLUX DISEASE -A CONDITION AFFECTING MORE THAN 30 MILLION AMERICANS. THE VENASEAL SYSTEM IS A NEW, MINIMALLY INVASIVE PROCEDURE PROVEN TO TREAT VENOUS REFLUX DISEASE. THE DISEASE OCCURS WHEN VALVES IN THE VEINS OF THE LOWER LEG NO LONGER FUNCTION PROPERLY. BLOOD REFLUXES (FLOWS BACKWARD), RESULTING IN VARICOSE VEINS AND OTHER SYMPTOMS. VI. EXPANDING EDUCATIONAL OPPORTUNITIES SENTARA IS COMMITTED TO ALWAYS IMPROVING-INCLUDING ENCOURAGING REGISTERED NURSES (RNS) TO CONTINUE PURSUING EDUCATIONAL OPPORTUNITIES. CONTINUOUS LEARNING WILL ADVANCE THE CARE SENTARA NURSES DELIVER TO OUR PATIENTS AND ALLOW THEM TO ADVANCE IN THEIR CAREERS. IN 2016, SENTARA MARKED FURTHER PROGRESS TOWARD ACHIEVING OUR GOAL OF 80% OF SENTARA NURSES HAVING A BSN BY 2020. IN 2016 SENTARA HAD 56.4% OF ITS NURSING WORKFORCE HOLDING A BSN OR HIGHER DEGREE WITH 19.6% OF LICENSED RNS WITH A CONTRACT TO COMPLETE THEIR BSN. SENTARA IS MOVING THE NEEDLE ON THIS MEASURE AND THE SENTARA FOUNDATIONS ARE AN ENORMOUS SUPPORT. ALL SENTARA FOUNDATIONS RALLIED AROUND ADVANCING NURSING EDUCATION BY FUNDING 168 SCHOLARSHIPS IN 2016 FOR RNS WHO ARE PURSUING THEIR BSN. VII. RESEARCH: RESEARCH IS ANOTHER WAY SENTARA IS ALWAYS IMPROVING. HERE ARE A FEW EXAMPLES OF OUR WORK WITHIN THE RESEARCH REALM: A. COPPER: SENTARA CONDUCTED THE WORLD'S LARGEST STUDY ON THE USE OF COPPER INFUSED MATERIALS (SHEETS, BLANKETS, PILLOW CASES, GOWNS, TOWELS, WASHCLOTHS, BEDSIDE TABLES, HANDRAILS AND OTHER SURFACES) IN REDUCING HOSPITAL ACQUIRED INFECTIONS. A 10-MONTH CLINICAL TRIAL AT SENTARA LEIGH HOSPITAL DETERMINED THAT HARD SURFACES AND LINENS INFUSED WITH COPPER OXIDE COMPOUNDS CONTRIBUTED TO A STATISTICALLY SIGNIFICANT REDUCTION IN C-DIFFICILE, MULTI-DRUG RESISTANT ORGANISMS AND HOSPITAL ACQUIRED INFECTIONS. THESE RESULTS OCCURRED IN A HOSPITAL WITH A ROBUST PROTOCOL FOR MANAGING INFECTION RISK CERTIFIED BY THE HEALTH CARE ACCREDITING BODY DNV-GL HEALTHCARE. RESULTS OF THE TRIAL WERE PUBLISHED IN THE PEER-REVIEWED AMERICAN JOURNAL OF INFECTION CONTROL ON SEPTEMBER 28, 2016. THE RESULTS WERE ASTOUNDING AND SENTARA IS NOW PLACING THESE MATERIALS IN ALL 12 HOSPITALS. B. CARDIAC: THROUGH THE SENTARA CARDIOVASCULAR RESEARCH INSTITUTE, CARDIOLOGISTS AND UNIQUELY TRAINED REGISTERED NURSE RESEARCH COORDINATORS MAKE SIGNIFICANT STRIDES IN ADVANCING THE UNDERSTANDING AND TREATMENT OF THE NO. 1 KILLER IN AMERICA: CARDIOVASCULAR DISEASE. AS THE PREEMINENT CARDIAC RESEARCH INSTITUTE IN THE MID-ATLANTIC REGION, SENTARA HEART WORKS COLLABORATIVELY WITH LOCAL INSTITUTIONS, GOVERNMENT AGENCIES AND BIOMEDICAL COMPANIES ON NATIONALLY AND INTERNATIONALLY RECOGNIZED CLINICAL RESEARCH TRIALS. WE FOCUS OUR EFFORTS ON DISCOVERING MORE EFFECTIVE CARDIOVASCULAR TREATMENTS AND PROTOCOLS WHILE ELIMINATING THOSE THAT ARE POTENTIALLY HARMFUL OR NOT AS BENEFICIAL. OUR ULTIMATE GOAL IS TO PROVIDE ENHANCED CLINICAL CARE THAT ADVANCES PATIENT OUTCOMES AND IMPROVES THE OVERALL HEALTH OF OUR COMMUNITY. OUR RESEARCH TOUCHES ON EVERY ASPECT OF HEART CARE, INCLUDING MEDICAL DEVICES, HEART FAILURE, ELECTROPHYSIOLOGY, CARDIAC SURGERY, CARDIAC INTERVENTIONAL PROCEDURES, STRUCTURAL HEART DISEASE, AND THE MEDICAL MANAGEMENT OF CORONARY ARTERY DISEASE RISK FACTORS SUCH AS DIABETES AND HIGH CHOLESTEROL. COLLECTIVELY, OUR RESEARCH NURSES COORDINATE MORE THAN 80 CLINICAL TRIALS AT ANY GIVEN TIME, SHEPHERDING PARTICIPANTS THROUGH THE ENTIRE TRIAL PROCESS, PROVIDING CARE DURING PERIODS OF NEED, AND TIRELESSLY ADVOCATING FOR THEIR PATIENTS' WELL-BEING. C. CANCER: WITHIN THE SENTARA CANCER NETWORK, CLINICIANS AND ACADEMIC RESEARCHERS WORK TOGETHER TO ELEVATE CARE FOR CURRENT AND FUTURE PATIENTS. THIS COLLABORATIVE PHILOSOPHY FOSTERS INNOVATION IN THE NETWORK AND DRIVES ACCESS TO CLINICAL TRIAL OPTIONS FOR OUR PATIENTS. OUR PARTICIPATION IN CLINICAL TRIALS AND RESEARCH ALSO CONTRIBUTES TO CANCER STUDIES VIA TISSUE DONATION, RETROSPECTIVE CHART STUDIES AND CONTROL GROUP PARTICIPATION. THROUGH COLLABORATION WITH THE NCI NATIONAL CLINICAL TRIALS NETWORK (NCTN), THE ALLIANCE FOR CLINICAL TRIALS IN ONCOLOGY AND NRG ONCOLOGY, OUR PHYSICIANS HAVE ACCESS TO THE SCIENCE TO DEVELOP OPTIMAL TREATMENT AND PREVENTION STRATEGIES FOR CANCER, AS WELL AS RESEARCH METHODS TO ALLEVIATE SIDE EFFECTS OF CANCER AND CANCER TREATMENTS. THERE ARE PROMISING CLINICAL TRIALS BEING CONDUCTED ALL OVER THE COUNTRY FOR PATIENTS WITH CANCER, AND BY MAKING THEM ACCESSIBLE LOCALLY, WE DEMONSTRATE THE AMERICAN COLLEGE OF SURGEONS COMMISSION ON CANCER PRINCIPLE TO DELIVER QUALITY CARE CLOSE TO HOME. OUR CLINICAL TRIALS INCLUDE EFFICACY AND SAFETY TRIALS FOR INVESTIGATIONAL BIOLOGICS; COMBINATION TRIALS FOR ONCOLOGY DRUGS; SURGICAL AND RADIATION THERAPY RESEARCH TRIALS; ADJUVANT AND MAINTENANCE DRUG TRIALS, POSTOPERATIVE ONCOLOGY OPTIONS; AND RETROSPECTIVE CHART REVIEWS. THE SENTARA CANCER NETWORK CURRENTLY MAINTAINS ACADEMIC RESEARCH PARTNERSHIPS WITH EASTERN VIRGINIA MEDICAL SCHOOL AND GEORGE MASON UNIVERSITY. VIII. BUILDING FOR THE FUTURE A. SENTARA NORTHERN VIRGINIA MEDICAL CENTER, LOCATED IN WOODBRIDGE, VIRGINIA, OPENED A DEDICATED ELECTROPHYSIOLOGY LAB IN THE SENTARA HEART AND VASCULAR CENTER. SENTARA MEDICAL GROUP INTRODUCED A NEW PRIMARY CARE LOCATION, SENTARA FAMILY MEDICINE PHYSICIANS, IN DUMFRIES, VIRGINIA AND ACQUIRED AN INDEPENDENT PRIMARY CARE PRACTICE IN LAKE RIDGE RESULTING IN THE OPENING OF SENTARA FAMILY AND INTERNAL MEDICINE PHYSICIANS. FORM 990, PART III, LINE 4A B. SENTARA RMH MEDICAL CENTER (SRMH), LOCATED IN HARRISONBURG, VIRGINIA, IMPLEMENTED SENTARA ECARE AND MYCHART, THE EPIC ELECTRONIC MEDICAL RECORD USED THROUGHOUT SENTARA. SENTARA RMH MEDICAL CENTER OPENED THE SENTARA ROCKINGHAM ORTHOPEDICS CENTER, A NEW BUILDING ON THE HOSPITAL CAMPUS. SRMH COMPLETED THE CONSTRUCTION OF THE NEW HYBRID CARDIAC OPERATING ROOM IN SUPPORT OF THE STRUCTURAL HEART PROGRAM LAUNCH IN 2017. SRMH ALONG WITH CARILION CLINIC BROKE GROUND ON THE FUTURE BRIDGEWATER HEALTH CENTER. THE FACILITY WILL HOUSE SENTARA LAB SERVICES, SENTARA THERAPY SERVICES, AND SENTARA IMAGING SERVICES. CARILION WILL MOVE ITS BRIDGEWATER FAMILY MEDICINE CLINIC TO THIS NEW FACILITY ONCE COMPLETE. ADDITIONALLY, SRMH MEDICAL GROUP OPENED A PRIMARY CARE PRACTICE AT THE SENTARA EAST MARKET STREET HEALTH CENTER. SENTARA RMH MEDICAL GROUP OPENED SENTARA RMH TIMBER WAY HEALTH CENTER AND COMBINED THE OPERATIONS OF PRIMARY CARE CLINICS IN BROADWAY AND TIMBERVILLE IN A NEW STATE OF THE ART FACILITY. C. SENTARA MARTHA JEFFERSON HOSPITAL (SMJH), LOCATED IN CHARLOTTESVILLE, VIRGINIA, IMPLEMENTED SENTARA ECARE AND MYCHART, THE EPIC ELECTRONIC MEDICAL RECORD USED THROUGHOUT SENTARA. SMJH INTRODUCED A NEW HELIPAD IN JULY 2016. THE MEDEVAC SERVICE WILL ALLOW FASTER TRANSPORT TO SMJH FOR CRITICALLY ILL PATIENTS, INCLUDING PATIENTS EXPERIENCING A STROKE OR HEART ATTACK. WITH THE NEW HELIPAD, TRAINED PERSONNEL WILL BE ABLE TO BRING PATIENTS VIA HELICOPTER DIRECTLY TO THE EMERGENCY DEPARTMENT FROM OUTLYING COUNTIES WHERE SERVICES ARE NOT READILY AVAILABLE. ADDITIONALLY, SMJH INTRODUCED NEURO-INTERVENTIONAL RADIOLOGY, WHICH CAN BE USED TO TREAT SEVERE STROKES AND OTHER ACUTE ENDOVASCULAR ISSUES. SMJH LAUNCHED AN ADVANCED ENDOSCOPY PROGRAM THROUGH THE ADDITION OF A HIGHLY SKILLED GASTROENTEROLOGIST, GREATLY EXPANDING THE SERVICES AVAILABLE TO PATIENTS. THE SMJH BARIATRIC CARE CENTER WAS AWARDED FULL ACCREDITATION AS A COMPREHENSIVE BARIATRIC CARE CENTER FROM THE METABOLIC AND BARIATRIC SURGERY ACCREDITATION AND QUALITY IMPROVEMENT PROGRAM. THROUGH THE SENTARA CANCER NETWORK, SMJH INTRODUCED LOW-DOSE CT LUNG SCREENINGS FOR THE EARLY DETECTION OF LUNG CANCER. FINALLY, SMJH INTRODUCED A NEW WALK-IN SPORTS INJURY CLINIC SPECIALIZING IN SPORTS MEDICINE WITH THE ABILITY TO CARE FOR ATHLETES OF ALL AGES AND ABILITIES. D. HAMPTON ROADS (SOUTHEASTERN VIRGINIA): I. SENTARA HEART AT SENTARA PRINCESS ANNE HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, LAUNCHED THE DR. DEAN ORNISH HEART REVERSAL PROGRAM FOR CARDIAC DISEASE PATIENTS. THIS PROGRAM HAS BEEN CLINICALLY SHOWN TO REVERSE THE EFFECTS OF HEART DISEASE. SENTARA PRINCESS ANNE HOSPITAL IS THE FIRST TO OFFER THIS PROGRAM IN VIRGINIA. SENTARA PRINCESS ANNE HOSPITAL RECEIVED CERTIFICATE OF PUBLIC NEED (COPN) APPROVAL FOR 14 ADDITIONAL INPATIENT BEDS BRINGING THE INPATIENT BED COUNT TO 174 FROM THE ORIGINAL 160 BEDS WHEN IT OPENED IN 2011. TEN OBSERVATIONAL BEDS ALSO WILL BE PUT INTO PLACE. SENTARA PRINCESS ANNE HOSPITAL INTRODUCED A NEW SENTARA BACK & NECK CENTER. SENTARA PRINCESS ANNE HOSPITAL WAS AWARDED MAGNET STATUS IN NURSING - THE SIXTH HOSPITAL IN SENTARA TO ACHIEVE THIS DISTINCTION. II. SENTARA VIRGINIA BEACH GENERAL HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, OPENED THE SENTARA WOMEN'S HEALTH CENTER, WHICH IS A MULTI-DISCIPLINARY SERVICE FOCUSED ON THE UNIQUE HEALTH NEEDS OF WOMEN OF ALL AGES. THE CENTER IS DEDICATED TO PROVIDING WOMEN WITH SEAMLESS AND CONVENIENT ACCESS TO QUALITY MEDICAL CARE AND A VARIETY OF SPECIALIZED WOMEN'S HEALTHCARE SERVICES. III. SENTARA NORFOLK GENERAL HOSPITAL, LOCATED IN NORFOLK, VIRGINIA, KICKED OFF THE $199M, 5 YEAR EXPANSION AND MODERNIZATION PROJECT TO BRING FACILITIES UP TO MODERN STANDARDS AND ENHANCE THE OFFERINGS OF THIS MID-ATLANTIC MEDICAL DESTINATION CENTER. THE PROJECT WILL ADD THREE FLOORS, EXPAND THE EMERGENCY DEPARTMENT, EXPAND AND MODERNIZE 18 OPERATING ROOMS, REPLACE A 48 BED WARD STYLE SPECIAL CARE NURSERY WITH A STATE OF THE ART UNIT AND CONSOLIDATE THE HOSPITAL'S 54 ICU BEDS ON TWO FLOORS. SENTARA NORFOLK GENERAL HOSPITAL INTRODUCED A NEW SENTARA BACK & NECK CENTER. IV. SENTARA LEIGH HOSPITAL, LOCATED IN NORFOLK, VIRGINIA, COMPLETED ITS MULTI - YEAR CONSTRUCTION PROJECT RESULTING IN THE RENOVATION OF THE SURGERY RELATED DEPARTMENTS, EXPANDING THE EMERGENCY DEPARTMENT TO 34 BEDS FROM 21, AND TWO NEW FIVE-STORY PATIENT TOWERS. V. SENTARA OBICI HOSPITAL, LOCATED IN SUFFOLK, VIRGINIA, RECEIVED CERTIFICATE OF PUBLIC NEED (COPN) APPROVAL FOR STEREOTACTIC RADIOSURGERY, WHICH IS A MINIMALLY INVASIVE FORM OF RADIATION ONCOLOGY THAT USES A THREE-DIMENSIONAL COORDINATES SYSTEM TO LOCATE SMALL TARGETS INSIDE THE BODY. IMPLEMENTATION WILL TAKE PLACE IN QUARTER 2, 2017. VI. SENTARA CAREPLEX HOSPITAL, LOCATED IN HAMPTON, VIRGINIA, RECEIVED CERTIFICATE OF PUBLIC NEED (COPN) APPROVAL TO INTRODUCE OBSTETRIC SERVICES. ORTHOPEDIC HOSPITAL AT SENTARA CAREPLEX, LOCATED IN HAMPTON, VIRGINIA, INTRODUCED THE SENTARA BACK & NECK CENTER. THIS SPECIALIZED PROGRAM BRINGS TOGETHER A TEAM INCLUDING EXPERT SURGEONS WITH CARING AND SPECIALLY TRAINED NURSES, THERAPISTS AND OTHER HEALTH PROFESSIONALS. VII. SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER (SWRMC), LOCATED IN WILLIAMSBURG, VIRGINIA, EXPANDED INPATIENT TELENEUROLOGY SERVICES. ADDITIONALLY, TELEMAGISTRATE SERVICES ARE NOW AVAILABLE AT SWRMC ALLOWING MAGISTRATES TO REMOTELY CONNECT WITH PSYCHIATRIC EVALUATORS TO DETERMINE IF EMERGENCY OR TEMPORARY DETENTION ORDERS SHOULD BE ISSUED FOR PATIENTS. VIII. SENTARA ALBEMARLE MEDICAL CENTER (SAMC), LOCATED IN ELIZABETH CITY, NC, NOW PROVIDES LOW-DOSE CT LUNG SCREENING FOR THE EARLY DETECTION OF LUNG CANCER IN DEFINED POPULATIONS. SAMC BEGAN CONSTRUCTION ON THE $1M ORTHOPEDIC CENTER THAT WILL INCLUDE THE FUTURE SENTARA ORTHOJOINT CENTER, SENTARA SPORTS MEDICINE AND ORTHOPEDIC PHYSICIAN OFFICES. SAMC KICKED OFF ITS EPIC ELECTRONIC MEDICAL RECORD IMPLEMENTATION AND EXPECTS TO LAUNCH SENTARA ECARE AND MYCHART IN OCTOBER, 2017. SAMC LAUNCHED THE "MEDS TO BEDS" PROGRAM, WHICH FULFILLS MEDICATION PRESCRIPTIONS TO PATIENTS BEFORE THEY LEAVE THE HOSPITAL. THIS WILL ENHANCE MEDICATION COMPLIANCE WITH THE AIM OF ASSURING A STRONG RECOVERY AND REDUCING THE OPPORTUNITY FOR READMISSION. IX. SENTARA LAUNCHED THE SENTARA REGIONAL TRANSFER CENTER, WHICH IS A CENTRALIZED RESOURCE DEVELOPED TO FACILITATE TRANSFERS OF APPROPRIATE PATIENTS FOLLOWING THE PRINCIPLE OF RIGHT PLACE, RIGHT TIME, RIGHT LEVEL OF CARE TO PARTICIPATING SENTARA HOSPITALS WITHIN HAMPTON ROADS (SOUTHEASTERN VIRGINIA.) THE CENTER SERVICES 8 SENTARA HOSPITALS AND 3 SENTARA OUTPATIENT EMERGENCY DEPARTMENTS. FORM 990, PART III, LINE 4A E. SOUTH BOSTON/HALIFAX: SENTARA HALIFAX REGIONAL HOSPITAL, LOCATED IN SOUTH BOSTON, VIRGINIA, OPENED THE 10TH SENTARA ORTHOJOINT CENTER IN THE SENTARA SYSTEM. SENTARA CLARKSVILLE FAMILY MEDICINE EXPANDED THEIR PRACTICE TO BETTER SERVE THE RESIDENTS OF MECKLENBURG COUNTY. THIS EXPANSION ALLOWS FOR GROWTH OF THE EXISTING PRIMARY CARE PRACTICE AS WELL AS FOR SPECIALISTS TO COME TO THE PRACTICE AND PROVIDE APPOINTMENTS TO MECKLENBURG COUNTY RESIDENTS IN A MORE CONVENIENT LOCATION. SENTARA HALIFAX PEDIATRICS IS THE FIRST PRACTICE IN SENTARA TO INTRODUCE "BABY BOX", A STARTER KIT FOR NEW BABIES WITH THE AIM OF REDUCING INFANT MORTALITY THROUGH THE PROVISION OF INFANT CARE ITEMS AND WITH EDUCATION OF PROPER SLEEP PRACTICES. F. SENTARA ENTERPRISES: SENTARA HOME CARE SERVICES OF ALLEGHANY, VIRGINIA AND ELIZABETH CITY, NC, WERE EACH NAMED AS A TOP AGENCY OF THE 2016 HOME CARE ELITE. THIS AWARD RECOGNIZES THE TOP-PERFORMING HOME HEALTH AGENCIES IN THE UNITED STATES. SENTARA HOME CARE SERVICES INTRODUCED PITCH (PROMOTING INDEPENDENCE THROUGH CARE AT HOME) TO REDUCE READMISSIONS IN THE HOME HEALTH POPULATION. SENTARA ENTERPRISES SUCCESSFULLY DESIGNED, BUILT AND HIRED STAFF TO OPEN "PROPRIUM PHARMACY", THE SENTARA SPECIALTY PHARMACY. THIS SPECIALTY PHARMACY WILL ENHANCE CARE COORDINATION AND REDUCE COSTS FOR THESE HIGH COST, COMPLEX DRUGS THAT MAY REQUIRE UNIQUE ADMINISTRATION. G.SENTARA LIFE CARE: SENTARA LIFE CARE IS COMPRISED OF ASSISTED LIVING CENTERS, NURSING HOMES, MOBILE MEALS AND THE PROGRAM FOR THE ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE). IN 2016, SENTARA LIFE CARE CELEBRATED THE 20TH ANNIVERSARY OF PACE. PACE IS A COMPREHENSIVE HEALTH CARE AND SUPPORTIVE SERVICES PROGRAM FOR FRAIL SENIORS WHO WISH TO REMAIN IN THEIR HOMES AND COMMUNITY. THE PROGRAM IS ONE THAT PROVIDES TOTAL CARE FOR PARTICIPANTS, INCLUDING COMPREHENSIVE MEDICAL AND REHABILITATIVE SERVICES, IN-HOME SERVICES AND TRANSPORTATION. SENTARA PACE IS OFFERED IN NORFOLK, VIRGINIA BEACH, CHESAPEAKE, SUFFOLK AND PORTSMOUTH. SENTARA LIFE CARE ACHIEVED NICHE (NURSING IMPROVING CARE FOR HEALTHSYSTEM ELDERS) CERTIFICATION. H. SENTARA MEDICAL GROUP (900+ PROVIDERS IN VIRGINIA AND NORTHEASTERN NORTH CAROLINA): I. EASE OF PATIENT ACCESS AND GROWING OUR SERVICES ARE MAJOR AREAS OF FOCUS FOR SENTARA MEDICAL GROUP (SMG). SMG LAUNCHED AN IMPROVED PRIMARY CARE ONLINE SCHEDULING TOOL FOR NEW PATIENTS VIA WWW.SENTARA.COM. THIS ENHANCED ACCESS POINT GIVES CONSUMERS DIRECT LINE OF SITE TO AVAILABLE APPOINTMENT TIMES AND LOCATIONS. IN THE SPIRIT OF TRANSPARENCY AND GIVING THE CUSTOMER WHAT THEY ARE ASKING FOR, SMG NOW POSTS PROVIDER REVIEWS ONLINE VIA WWW.SENTARA.COM. THESE STAR RATINGS ARE THE RESULT OF SURVEYS TAKEN BY PATIENTS SEEN IN THE OFFICE BY A PROVIDER. IX. QUALITY AND PATIENT SAFETY DISTINCTIONS A. AWARD-WINNING CARE- AS ALWAYS, SENTARA IS PROUD AND HUMBLED BY THE VARIOUS AWARDS AND RECOGNITIONS THE SYSTEM RECEIVED OVER THE COURSE OF THE YEAR. OUR MISSION IS TO IMPROVE HEALTH EVERY DAY. TO RECEIVE AN AWARD IS SIMPLY AN ADDED ACKNOWLEDGEMENT OF OUR MISSION - DRIVEN WORK. HERE ARE A FEW OF THE 2016 AWARDS AND RECOGNITIONS: I. FOR THE 16TH CONSECUTIVE YEAR, THE CARDIOLOGY AND HEART SURGERY PROGRAM AT SENTARA NORFOLK GENERAL HOSPITAL (SENTARA HEART HOSPITAL) WAS LISTED AMONG THE TOP 50 HEART PROGRAMS IN THE U.S. NEWS & WORLD REPORT 'BEST HOSPITALS' EDITION AND IMPROVED ITS RANKING FROM 41ST IN 2014 TO 31ST IN 2015 TO #24 IN 2016. DIABETES AND ENDOCRINOLOGY AT SENTARA NORFOLK GENERAL HOSPITAL, A SPECIALTY AT EASTERN VIRGINIA MEDICAL SCHOOL, IS RANKED #24. II. SENTARA LEIGH HOSPITAL WAS NAMED BY BECKER'S HOSPITAL REVIEW AS ONE OF ITS "100 HOSPITALS WITH GREAT ORTHOPEDIC PROGRAMS" FOR 2016. THE LIST HIGHLIGHTS NATIONALLY LEADING PROGRAMS IN ORTHOPEDIC CARE AND THE ORGANIZATIONS INCLUDED HAVE RECEIVED RECOGNITION FOR EXCELLENCE FROM VARIOUS PUBLICATIONS, INDUSTRY-LEADING ORGANIZATIONS AND ACCREDITING ORGANIZATIONS. III. SENTARA HALIFAX REGIONAL HOSPITAL (SHRH) IS ONE OF SEVEN HOSPITALS IN VIRGINIA AND MARYLAND TO RECEIVE THE VHQC'S 2015 QUALITY INNOVATION AWARD. VHQC IS A NONPROFIT HEALTH QUALITY CONSULTING COMPANY THAT STUDIES HOSPITAL PERFORMANCE. THE AWARD RECOGNIZES HOSPITALS THAT ARE ACHIEVING REDUCTIONS IN HOSPITAL-ACQUIRED INFECTIONS (HAIS) AND CREATING A CULTURE OF PATIENT SAFETY. ALL HOSPITALS CONSIDERED FOR THIS AWARD WERE ENROLLED IN THE VHQC MARYLAND-VIRGINIA HAI IMPROVEMENT NETWORK AND WERE ELIGIBLE BASED ON THEIR PERFORMANCE IN 2015. IV. SENTARA HEALTHCARE WAS THE FIRST HEALTH CARE SYSTEM IN THE U.S. TO RECEIVE MULTI-SITE CERTIFICATION IN THE ISO 9001 QUALITY MANAGEMENT SYSTEM FROM OUR ACCREDITING BODY, DNV-GL. THE CERTIFICATION VALIDATES SENTARA PROCESSES AND PROMOTES ACCOUNTABILITY. IT REFLECTS OUR FOCUS ON THE PATIENTS AND OUR COMMITMENT TO REDUCE VARIABILITY AND INCREASE CONSISTENCY THROUGH RAPID DEPLOYMENT OF BEST PRACTICES ACROSS THE SYSTEM. V. SENTARA ALBEMARLE MEDICAL CENTER (SAMC) WAS SELECTED AS ONE OF THE 2016 TOP 100 RURAL & COMMUNITY HOSPITALS. THE SELECTION OF HOSPITALS IS BASED ON IVANTAGE'S HOSPITAL STRENGTH INDEX(R) - AN ANALYSIS OF MORE THAN 70 DIFFERENT PERFORMANCE MEASURES INCLUDING QUALITY, OUTCOMES, PATIENT PERSPECTIVE, AFFORDABILITY, POPULATION RISK AND EFFICIENCY. DATA USED IN THE ANALYSIS IS GATHERED FROM PUBLICALLY AVAILABLE SOURCES, WHICH IS USED TO COMPARE THE PERFORMANCE OF HOSPITALS NATIONWIDE. THE RESULTS DEMONSTRATE THE HARD WORK OF THE SAMC PROVIDERS AND STAFF TO DELIVER A CRITICAL SERVICE OF QUALITY HEALTHCARE TO THE COMMUNITIES THEY SERVE. VI. THE RESPECTED PEER-REVIEWED JOURNAL MEDICAL LABORATORY OBSERVER NAMED SENTARA LAB SERVICES 'LAB OF THE YEAR' FOR 2016. THE SENTARA LAB SERVICES (SLS) TEAM OFFERED A COMPELLING NOMINATION COVERING SIX REQUIRED CATEGORIES: CUSTOMER SERVICE, PRODUCTIVITY, TEAMWORK, EDUCATION AND TRAINING, STRATEGIC OUTLOOK AND INSPECTION RESULTS. WHILE MANY LAB TESTS ARE PERFORMED FOR HOSPITAL INPATIENTS, THERE IS ALSO SIGNIFICANT USE OF LABS BY OUTPATIENTS. VII. EIGHT SENTARA HOSPITALS EARNED THE HIGHEST GRADE OF "A" FOR DELIVERING SAFE CARE FOR PATIENTS ACCORDING TO THE LEAPFROG HOSPITAL SAFETY SCORE (2016) INCLUDING: SENTARA CAREPLEX HOSPITAL, SENTARA LEIGH HOSPITAL, SENTARA MARTHA JEFFERSON HOSPITAL, SENTARA NORFOLK GENERAL HOSPITAL, SENTARA OBICI HOSPITAL, SENTARA PRINCESS ANNE HOSPITAL, SENTARA VIRGINIA BEACH GENERAL HOSPITAL, SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER. VIII. THE PRESTIGIOUS TRUVEN HEALTH 100 TOP HOSPITALS ANNUAL AWARDS PROGRAM HAS NAMED SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER AS ONE OF THE HIGHEST-PERFORMING HOSPITALS IN THE NATION. USING INDEPENDENT PUBLIC DATA AND PROPRIETARY ANALYTICS, THE 100 TOP HOSPITALS STUDY RECOGNIZES HOSPITALS THAT HAVE CLEARLY DEMONSTRATED THE VISION TO DEVELOP LONG-TERM EXCELLENCE IN CARE, EFFICIENCY, AND COMMUNITY VALUE. AS A 2016 AWARD WINNER, OUR LEADERSHIP TEAM, MEDICAL STAFF, AND EMPLOYEES - TOGETHER AS A TEAM - HAVE MET NATIONAL BENCHMARKS FOR THE HIGHEST-BALANCED PERFORMANCE IN THE U.S. IX. OPTIMA HEALTH WAS VERY PLEASED TO HAVE RECEIVED AN OVERALL STAR RATING OF 4.5 OUT OF 5 FROM THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS) FOR ITS 2017 MEDICARE ADVANTAGE PLAN AND PRESCRIPTION DRUG PLAN KNOW AS OPTIMA MEDICARE. ADDITIONALLY, OPTIMA MEDICARE WAS ALSO LISTED IN THE U.S. NEWS BEST MEDICARE ADVANTAGE PLANS 2017. B. SENTARA PRINCESS ANNE HOSPITAL BECAME THE LATEST HOSPITAL WITHIN THE SENTARA FAMILY TO EARN THE NURSING MAGNET DESIGNATION FROM THE AMERICAN NURSES CREDENTIALING CENTER. MAGNET SPEAKS TO A SUPPORTIVE WORKING ENVIRONMENT FOR NURSES AND SUPERIOR CLINICAL CARE BASED ON STRICT CRITERIA THAT MAGNET HOSPITALS MUST MEET. X. OPTIMA HEALTH PROGRAM AND PRODUCT DEVELOPMENT: THROUGH AN EXTENSIVE COMMONWEALTH OF VIRGINIA RFP PROCESS OPTIMA HEALTH WAS AWARDED PARTICIPATION IN VIRGINIA'S NEW MLTSS (MANAGED LONG TERM SERVICES AND SUPPORT) INITIATIVE, ONE OF SEVEN HEALTH PLANS SELECTED TO SERVE SIX REGIONS THROUGHOUT THE STATE OF VIRGINIA. LAUNCH IS SLATED FOR AUGUST 1, 2017 IN THE TIDEWATER REGION WITH THE REMAINING 5 REGIONS TO FOLLOW. SENTARA ADVANTEDGE, A PROGRAM THAT ESTABLISHED STRATEGIC HEALTH PLAN PARTNERSHIPS OUTSIDE OF VIRGINIA, CONTINUED TO SERVE AS THE THIRD PARTY ADMINISTRATOR (TPA) FOR OHIO HEALTH EMPLOYEES, WITH TOTAL MEMBERSHIP GROWING BY ABOUT 2,000 FROM 2015 TO 2016. OPTIMA MEDICARE INTRODUCED A $0 PREMIUM OPTION AND ADDED BENEFIT ENHANCEMENTS COMPETITIVE WITH OTHERS IN THE MARKET. XI. CONCLUSION: SENTARA HEALTHCARE IS COMMITTED TO IMPROVING HEALTH EVERY DAY. WE DO SO BY PROVIDING QUALITY CARE THROUGH EXPERT PROVIDERS, USING CUTTING-EDGE TECHNOLOGY, DEPLOYING MEDICAL BREAKTHROUGHS, AND PROVIDING EXCELLENT CUSTOMER SERVICE - ALL WITH A CONSTANT FOCUS ON INNOVATION. WE LOOK FORWARD TO ANOTHER YEAR OF GROWTH AND INNOVATION IN 2017. FORM 990, PART V, LINE 1A: FORM 1096 THE 501(C)(3) SOLE MEMBER OF THE ORGANIZATION, SENTARA HEALTHCARE, MAINTAINS AN AGENCY RELATIONSHIP WITH THE ORGANIZATION AND ISSUES ALL 1099S ON ITS BEHALF. THE NUMBER REPORTED IS A BEST ESTIMATE OF THE 1099S ATTRIBUTABLE TO THE ORGANIZATION. THE EXACT NUMBER CANNOT BE DETERMINED; AS SOME OF THE 1099S ISSUED BY THE AGENT ARE ATTRIBUTABLE TO MORE THAN ONE ENTITY, AND THERE IS NO REPORTING MECHANISM TO DETERMINE 1099'S ATTRIBUTABLE SOLELY TO THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 2 THE ORGANIZATION'S OFFICERS AND DIRECTORS SERVED TOGETHER ON THE BOARDS OF OTHER ORGANIZATIONS WITHIN THE SENTARA HEALTHCARE SYSTEM ("THE SYSTEM"), AS WELL AS JOINT VENTURES IN WHICH THE SYSTEM HAD AN OWNERSHIP INTEREST. SEE SCHEDULE R FOR A LISTING OF SUCH ENTITIES. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE MEMBER WAS SENTARA HEALTHCARE, A VIRGINIA NONSTOCK CORPORATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS, WHICH SERVED AS THE ORGANIZATION'S GOVERNING BODY, WAS ELECTED BY ITS SOLE MEMBER, SENTARA HEALTHCARE, A 501(C)(3) ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7B AS SOLE MEMBER, SENTARA HEALTHCARE IS ENTITLED TO ONE VOTE ON ALL MATTERS AND HAS THE RIGHT TO ELECT AND REMOVE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY; APPROVE ANY ALTERATION, AMENDMENT OR REPEAL OF ITS GOVERNING DOCUMENTS; APPROVE THE ANNUAL OPERATING AND CAPITAL BUDGET AND ALL FORMAL LONG-RANGE PLANS; APPROVE ANY SINGLE CAPITAL EXPENDITURE EXCEEDING $1 MILLION; APPROVE ALL BORROWING OR INDEBTEDNESS WHICH IN ANY ONE TRANSACTION OR RELATED SERIES OF TRANSACTIONS EXCEEDS $500,000; APPROVE ANY PLAN OF MERGER OR CONSOLIDATION, ANY SALE, LEASE, EXCHANGE, MORTGAGE, PLEDGE OR OTHER DISPOSITION OF ALL, OR SUBSTANTIALLY ALL, THE PROPERTY AND ASSETS OF THE ORGANIZATION, THE VOLUNTARY DISSOLUTION OF THE ORGANIZATION, OR REVOCATION OF VOLUNTARY DISSOLUTION PROCEEDINGS; REVIEW THE BOOKS AND RECORDS, CONDUCT AUDITS, AND APPROVE THE SELECTION OF AUDITORS CHOSEN TO CONDUCT AUDITS OF THE ORGANIZATION; AND APPROVE THE CREATION OR ACQUISITION OF ANY SUBSIDIARY OF THE ORGANIZATION, OR THE CREATION OF ANY OTHER CORPORATION OF WHICH THE ORGANIZATION IS TO BE A MEMBER, AND TO APPROVE ANY DISSOLUTION OR OTHER CHANGE IN ANY SUCH LEGAL RELATIONSHIP PREVIOUSLY APPROVED BY SENTARA HEALTHCARE. FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION WAS PART OF THE SENTARA HEALTHCARE SYSTEM ("THE SYSTEM"), AND AS SUCH, USED THE SYSTEM'S IN-HOUSE TAX DEPARTMENT, HEADED BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT, TO BOTH PREPARE AND REVIEW ITS FORM 990. DURING THE PREPARATION AND REVIEW PROCESS, THE TAX DEPARTMENT WORKED CLOSELY WITH OTHER SYSTEM DEPARTMENTS, SUCH AS LEGAL, COMPENSATION AND BENEFITS, COMPLIANCE, FINANCE, AND MARKETING, TO ENSURE THAT A COMPLETE AND ACCURATE RETURN WAS FILED. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, BOARD-NOMINATED OFFICERS, AND KEY EMPLOYEES SUBMIT AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE AND CERTIFY TO THE COMPLETION AND ACCURACY OF THE INFORMATION DISCLOSED. THE ORGANIZATION'S GOVERNING BOARD OR APPROPRIATE COMMITTEE MONITORS TRANSACTIONS INVOLVING DISCLOSED POTENTIAL CONFLICTS OF INTEREST, TO ENSURE THAT THEY ARE REASONABLE AND AT ARM'S LENGTH. FORM 990, PART VI, SECTION B, LINE 15 AS PART OF THE SENTARA HEALTHCARE SYSTEM ("THE SYSTEM"), THE ORGANIZATION FOLLOWED PROCESSES AND PROCEDURES SET FORTH IN ITS GOVERNING DOCUMENTS TO ENSURE COMPLIANCE WITH ITS OBLIGATIONS AS A 501(C)(3) HEALTHCARE ORGANIZATION TO PAY DISQUALIFIED PERSONS REASONABLE COMPENSATION. SUCH PROCESSES AND PROCEDURES ARE INTENDED TO ESTABLISH THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERNAL REVENUE CODE SECTION 4958 REGULATIONS. THE COMPENSATION PHILOSOPHY OF THE SYSTEM AS A WHOLE IS TO BASE OVERALL COMPENSATION AND BENEFITS FOR EXECUTIVES ON NOT-FOR-PROFIT MARKET COMPARABLES, ADJUSTED AS APPLIED TO EACH EXECUTIVE, TAKING INTO CONSIDERATION THE INDIVIDUAL SKILLS, EXPERIENCE, TENURE AND PERFORMANCE OF THE EXECUTIVE BEING COMPENSATED AND OVERALL PERFORMANCE OF THE ORGANIZATION. IN LINE WITH THIS PHILOSOPHY, THE SYSTEM PERFORMED SUBSTANTIAL DUE DILIGENCE AS TO MARKET COMPARABLES. THE SYSTEM'S COMPENSATION COMMITTEE, WHICH CONSISTS OF SYSTEM BOARD MEMBERS WITHOUT CONFLICTS OF INTERESTS, ENGAGED AN OUTSIDE CONSULTANT, WHO REPORTS TO THE COMPENSATION COMMITTEE, TO CONDUCT A STUDY ASSESSING THE COMPETITIVENESS OF TOTAL COMPENSATION (INCLUDING CASH COMPENSATION, BENEFITS AND PERQUISITES) OF ITS SENIOR EXECUTIVES PRIOR TO MAKING DECISIONS REGARDING ANNUAL BASE SALARY ADJUSTMENTS, APPROVING INCENTIVE AWARDS, OR CONSIDERING PROGRAMMATIC CHANGES. THE STUDY COMPARED THE COMPENSATION OF THE SYSTEM'S SENIOR EXECUTIVES TO COMPENSATION DATA FROM MULTIPLE PUBLISHED SURVEY SOURCES BASED ON THE SENIOR EXECUTIVE'S FUNCTIONAL RESPONSIBILITY. IN CONDUCTING THE STUDY, THE CONSULTANT TARGETED OTHER NOT-FOR-PROFIT HEALTH SYSTEMS OF SIMILAR SIZE BASED ON NET REVENUE AND COMPLEXITY. FOR HEALTH PLAN POSITIONS, HEALTH PLANS WITH SIMILAR PREMIUMS, OR MEMBERS, WERE TARGETED. THE CONSULTANT ALSO CONDUCTS A REVIEW OF THE ORGANIZATION'S PERFORMANCE RELATIVE TO A GROUP OF NOT-FOR-PROFIT HEALTH SYSTEMS OF COMPARABLE SIZE AND SCOPE OF OPERATIONS EVERY YEAR. THE MOST RECENT STUDY COMPARED SENTARA'S PERFORMANCE TO 31 NOT-FOR-PROFIT HEALTHCARE SYSTEMS BASED ON NET REVENUE GROWTH, OPERATING MARGIN, VARIOUS CLINICAL QUALITY METRICS AND PATIENT SATISFACTION. OVERALL, THE CONSULTANT DETERMINED THAT SENTARA'S PAY WAS ALIGNED WITH ITS RELATIVE PERFORMANCE. THE COMPENSATION STUDY WAS PRESENTED TO THE SYSTEM'S COMPENSATION COMMITTEE, WHICH MADE ITS COMPENSATION DECISIONS BASED ON A)ITS REVIEW AND ANALYSIS OF THE PERFORMANCE OF BOTH THE ORGANIZATION AND ITS SENIOR EXECUTIVES AND, B) A REASONABLENESS OF COMPENSATION ANALYSIS AND OPINION FROM AN EXTERNAL EXPERT IN THE COMPENSATION OF EXECUTIVES IN THE TAX-EXEMPT HEALTH CARE FIELD. THE COMMITTEE'S BASES FOR ITS DECISIONS WERE DOCUMENTED IN COMMITTEE MINUTES TAKEN DURING THE MEETING AND THEN CIRCULATED FOR REVIEW AND APPROVAL. ALL DECISIONS REGARDING COMPENSATION WERE MADE BY THE COMMITTEE, WHICH CONSISTS OF SYSTEM BOARD MEMBERS WITHOUT CONFLICT OF INTERESTS. THIS PROCESS WAS USED TO ESTABLISH COMPENSATION FOR THE ORGANIZATION'S CHAIRMAN AND TREASURER; WHO ALSO SERVE AS PRESIDENT AND CEO, AND SENIOR VICE PRESIDENT AND CFO OF THE SYSTEM, RESPECTIVELY. THE PROCESS WAS LAST UNDERTAKEN DURING THE CURRENT TAX YEAR FOR ALL POSITIONS LISTED. THE OUTSIDE MARKET STUDY DESCRIBED ABOVE WAS ALSO USED TO ESTABLISH COMPENSATION FOR THE ORGANIZATION'S PRESIDENT, WHO IS CONSIDERED THE TOP MANAGEMENT OFFICIAL OF THE ORGANIZATION. RESULTS WERE PRESENTED TO THE PRESIDENT AND CEO OF THE SYSTEM FOR REVIEW AND APPROVAL RATHER THAN THE SYSTEM'S COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 OTHER ORGANIZATION DOCUMENTS PUBLICLY AVAILABLE THE CONSOLIDATED FINANCIAL STATEMENTS FOR SENTARA HEALTHCARE AND SUBSIDIARIES WERE MADE PUBLICLY AVAILABLE THROUGH THE USE OF DAC BOND (DISCLOSURE DISSEMINATION AGENT) AND CAN BE FOUND ON THE INTERNET AT WWW.DACBOND.COM. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICTS OF INTEREST POLICY ARE GENERALLY NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART VI, LINE 1A & 1B, BOARD MEMBER INDEPENDENCE THE ORGANIZATION'S BOARD OF DIRECTORS IS ELECTED ANNUALLY BY SENTARA HEALTHCARE, THE ORGANIZATION'S 501(C)(3) SOLE MEMBER. THE GOVERNING BOARD OF SENTARA HEALTHCARE IS A COMMUNITY-BASED BOARD COMPRISED OF 16 VOTING MEMBERS, 15 OF WHICH ARE CONSIDERED INDEPENDENT, AS DEFINED IN THE FORM 990 INSTRUCTIONS. FORM 990, PART XI, LINE 9: BOOK RECLASS OF INTERCO ACCOUNTS TO EQUITY 14,080,601. PLEDGE RECEIVABLES ALLOWANCE -250. STATEMENT FILED PURSUANT TO TREASURY REGULATION SEC. 1.6038-2(J)(3): THE TAXPAYER IS A MEMBER OF THE SENTARA HEALTHCARE ("SHC") CONTROLLED GROUP. SHC, EIN 52-1271901, OWNS BAY PRIMEX INSURANCE COMPANY, LTD., A CONTROLLED FOREIGN CORPORATION. SHC FURNISHES ALL INFORMATION REQUIRED OF THE TAXPAYER BY IRC SECTION 6038 AND THE REGULATIONS THEREUNDER WITH RESPECT TO BAY PRIMEX INSURANCE COMPANY, LTD. THEREFORE, PURSUANT TO TREASURY REGULATION SEC. 1.6038-2(J)(2), THE TAXPAYER IS EXCEPTED FROM PROVIDING SUCH INFORMATION. THE REQUIRED INFORMATION IS E-FILED WITH SHC'S FORM 990 RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX. IN ADDITION, ONE OTHER MEMBER OF THE SHC CONTROLLED GROUP OWNS AN INTEREST IN A CONTROLLED FOREIGN CORPORATION. ALL INFORMATION REQUIRED OF THE TAXPAYER BY IRC SECTION 6038 AND THE REGULATIONS THEREUNDER WITH RESPECT TO THIS INTEREST IS FURNISHED BY MEDSTREAMING LLC (FKA MEDSTREAMING HOLDINGS LLC) EIN 45-1573625. THEREFORE, PURSUANT TO TREASURY REGULATION SEC. 1.6038-2(J)(2), THE TAXPAYER IS EXCEPTED FROM PROVIDING SUCH INFORMATION. THE REQUIRED INFORMATION IS E-FILED WITH THE ORGANIZATION'S FORM 1065. 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