2017-06-01T12:54:31-05:00 2016-08-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2015-09-01 411765832 HealthEast Medical Research Institute HEAL 6512321000 NW 8949 PO Box 1450 Minneapolis MN 554858949 Doug Davenport SVP/CFO 6512322300 2017-06-01 1 Kim Hunwardsen P00484560 6122536500 2017-05-23 2015 2021-01-29 14:40:06Z Kathryn Correia 559 Capitol Blvd St Paul MN 55103 189793167 0 X www.healtheast.org X 1993 MN We are called to improve the health of our neighbors. 16 13 1417 0 1074511 -339676 157106 1145865 176641620 188631563 2525 13139 32980 2600 176834231 189793167 0 0 0 0 147478925 162783298 0 0 0 70626565 73173051 218105490 235956349 -41271259 -46163182 30831188 31128022 13721922 15813756 17109266 15314266 X We are called to improve the health of our neighbors. 0 0 203810824 187557052 HealthEast Medical Research Institute operates medical clinics for the treatment of the sick and infirmed to enhance the accessibility, quality and cost efficiency of medical and health care services rendered to the community while also conducting medical research. The outpatient revenue of the medical clinics includes payments from the Medicare and Medicaid programs. The institute uses medical information collected from the treatment of patients to establish and expand a database to conduct various medical research activities relating to health care in conjunction with related hospitals for the benefit of the general public. Accordingly, the treatment of patients is an essential and integral part of the research activity of the institute. HealthEast Medical Research Institute includes HealthEast Clinics' staff members that are dedicated to providing high-quality, compassionate health care. Our clinic locations are in neighborhoods throughout the Twin Cities East Metro area.Our providers include board-certified doctors, certified nurse midwives and nurse practitioners. HealthEast Clinics offer a full range of services for patients of all ages including:Primary Care: *Family Medicine *Internal Medicine *PediatricSpecialty Care: *Allergy *Audiology *Diabetes education *Ear, nose and throat *Endocrinology *Midwifery (certified nurse-midwives) *Mental Health *Osteoporosis *Podiatry *Rheumatology *Sports medicineHealthEast Medical Research Institute is committed to the communities it serves and demonstrates the committment by serving as a charitable health resource. In support of its mission of community service, HealthEast Medical Research Institute provides emergency and medically necessary non-emergency services to the community regardless of ability to pay. Charity care represents the clinical services provided to the poor for which the clinic did not receive full or partial payment because the patients did not have the ability to pay.HealthEast Medical Research Institute is a not-for-profit organization contributing time and resources to serve the community's health care needs. The organization provides the following charity care & community benefits to the communities it serves.Charity Care and Means-Tested Government Programs: Charity Care at Cost $767,220 Unreimbursed Medicaid Costs $20,824,027 Unreimbursed Minnesota Care Costs $2,354,731 Total Charity Care and Means-Tested Government Programs $23,945,978Other Benefits to the Community: Community Health Improvement Services $117,664 Health Education for Medical Professionals $52,157 Cash and In-Kind Donations $3,869 Coalition Building $39,440 Unreimbursed Medicare Costs $28,963,645 Total Other Benefits to the Community $29,176,775Total Charity Care and Community Benefits $53,122,753 In addition to the charity care and community benefits listed above, HealthEast Medical Research Institute wrote-off other medical services to bad debt in the amount of $3,428,780. HealthEast Medical Research Institute fiscal year 2016 statistics: *Primary and Specialty Care Professional Visits: 1,271,643 *Primary and Specialty Care Ancillary Services: 1,070,810 *Total Clinic Patients: Over 154,000HealthEast Medical Research Institute is part of the HealthEast Care System. HealthEast Care System is a community-focused, non-profit health care system that provides innovative technology, compassionate care and a full spectrum of family health services. In 1986, the leaders of seven hospitals in St. Paul, Minnesota blended their Baptist, Roman Catholic and Lutheran cultures to become HealthEast Care System, united in pursuit of a common mission built on Judeo-Christian values. Today, HealthEast Care System includes three short-term acute hospitals and one long-term acute care hospital, as well as 14 clinics, outpatient services, home care, hospice, medical transportation and community outreach programs. Practicing financial responsibility, HealthEast Care System is one of the largest, locally-owned health care organizations in the East Metro area of St. Paul. *Mission: We are called upon to improve the health of our neighbors. *Values: Create a "customer first" experience. Act with courage. Nurture trust and confidence. Find joy in what we do. *Vision: Optimal health and well-being for our patients, our communities and ourselves. *Spiritual Philosophy: By sustaining HealthEast's Christian heritage and identity, we provide compassionate service that respects the dignity of each person and welcomes all faith traditions, cultures and communities. HealthEast Care System fiscal year 2016 statistics: *Total Hospital Inpatient Admissions: 31,194 *Total Outpatient Visits: 214,299 *Total Emergency Department Visits: 91,297 *Lab tests: over 2.7 Million *Home Care Patients Served: 8,679 *Home Care Patient Visits: 79,886 *Health Alert Subscribers: almost 2,900 *Primary and Specialty Care Professional Visits: 1,271,643 *Primary and Specialty Care Ancillary Services: 1,070,810 *Total Clinic Patients: over 154,000 *Patient Transports: 41,104 *Employees: almost 7,000 *Volunteers: 960 203810824 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 X 0 0 1417 1 1 1 0 0 0 0 0 0 0 0 0 X 16 13 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 MN X Doug Davenport 6512322300 559 Capitol Boulevard St Paul MN 55103 X Kathryn G Correia President/CEO 0.00 40.00 X X 0 900601 186376 Roland L Hayes Chair 0.00 4.00 X X 0 65000 0 Fred Harris Jr Immediate Past Chair 0.00 4.00 X X 0 31000 0 William Brombach MD Director 40.00 2.00 X 431647 0 54747 Julie S Causey Director 0.00 2.00 X 0 34200 0 Michael R Connly Director 0.00 2.00 X 0 27000 0 John R Finnegan Jr PhD Director 0.00 2.00 X 0 29000 0 Louis C Henry Jr Director 0.00 2.00 X 0 27000 0 Howard P Kern Director 0.00 2.00 X 0 27000 0 Tim Marx Director 0.00 2.00 X 0 27833 0 Anne M Pearson MD Director 40.00 2.00 X 352710 28000 46445 Leonard M Randolph Jr MD Director 0.00 2.00 X 0 28000 0 Wayne A Sensor Director 0.00 2.00 X 0 27833 0 Jone M Tiffany Director 0.00 2.00 X 0 37000 0 Heidi Wilson Director, began 1-2016 0.00 2.00 X 0 0 0 James W Wiltz Director 0.00 2.00 X 0 31000 0 Douglas Davenport SVP/Chief Financial Officer 0.00 40.00 X 0 543411 103559 Catherine J Barr SVP/COO 0.00 40.00 X 0 449558 78834 Scott L North SVP/Acute Care ended 11-2015 40.00 0.00 X 578285 0 147524 Stephen J Kolar MD SVP CMO 0.00 40.00 X 0 275088 64491 Joanne M Sunquist SVP/CIO 0.00 40.00 X 0 376206 87306 Dawn Kessler SVP/Chief HR Officer/Org Excel 0.00 40.00 X 0 391672 65985 Paul Torgerson SVP/CAO/Gen Counsel 0.00 40.00 X 0 539612 121515 Eric Nelson VP Ops Amb/Med Svcs 40.00 0.00 X 214237 0 44910 Kevin Garrett MD SVP/Chief Medical Officer 40.00 0.00 X 411702 0 97936 Rochus V Voeller MD Physician 40.00 0.00 X 1176902 0 26244 Margaret A Wallenfriedman MD Physician 40.00 0.00 X 1058409 0 39909 Puneet Cheema MD Physician 40.00 0.00 X 1047749 0 58552 Peter H Kelly MD Physician 40.00 0.00 X 892503 0 60297 Andrew Portis MD Physician 40.00 0.00 X 883761 0 66582 Brian Patty MD Former Officer 0.00 40.00 X 0 165343 52604 Mary F Pynn Former Officer 0.00 40.00 X 0 340435 60614 Thomas A Schmitt Former Key Employee 40.00 0.00 X 560682 0 17087 Julie A Schmidt Former Key Employee 0.00 40.00 X 0 190449 105298 7608587 4592241 1586815 352 1 1 0 St Paul Infection Disease Associates 1959 Sloan Place Suite 200 St Paul MN 55117 Medical Services 1271782 Aerotek Professional Services 3689 Collection Center Drive Chicago IL 60693 Staffing Services 1075971 ENT Specialty Care 2211 Park Avenue Minneapolis MN 55404 Medical Services 1039603 Weatherby Locums Inc PO Box 972633 Dallas TX 753972633 Staffing Services 801355 Comprehensive Healthcare Staffing PO Box 972651 Dallas TX 753972651 Staffing Services 690279 30 1145865 9436 1145865 Patient Revenue 621111 186410217 186410217 Research Revenue 900099 1069356 1069356 Meaningful Use Revenue 900099 565187 565187 Medical Director Revenue 621111 335104 335104 Patient Education/Seminar Revenue 611710 163337 163337 88362 83207 5155 188631563 11139 11139 2600 0 2600 2600 2600 2000 0 2000 2000 2000 189793167 187557052 1074511 15739 1589999 1589999 419849 419849 131795238 129117259 2677979 4641689 4547373 94316 17801934 17440212 361722 6534589 6401811 132778 9030 9030 16141031 14103077 2037954 91511 66899 24612 2114833 2028270 86563 6292 6292 9745974 9448902 297072 903417 860522 42895 142485 53440 89045 1631890 1620272 11618 625544 11408 614136 HealthEast Mgmt Fee 23834117 23834117 Medical Supplies 11533429 11533429 Bad Debt Expense 3428780 3428780 Minnesota Care Tax 2354731 2354731 609987 368298 241689 235956349 203810824 32145525 0 6808 3923 18356 27788 17765314 19731309 1243013 1368034 25322098 16514363 9284037 8807735 1053576 1189233 1460084 0 30831188 31128022 13337740 15443456 384182 370300 13721922 15813756 X 17109266 15314266 17109266 15314266 30831188 31128022 X -46163182 44368182 X 0 1 X 1 0 X HealthEast Bethesda Hospital St Paul MN HealthEast St John's Hospital Maplewood MN HealthEast St Joseph's Hospital St Paul MN HealthEast Woodwinds Hospital Woodbury MN RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 505780 349890 155890 14181861 7854858 6327003 10473532 8309615 2163917 160925 160925 8807735 Physician Disability Liability 324882 Third Party Settlements 45418 370300 X Part X, Line 2: HealthEast has not identified any significant liability for uncertain tax positions, and accordingly, no such liability is recorded for the years ended August 31, 2016 or 2015. 1 1 0 0 0 0 0 1 0 Kathryn G Correia President/CEO 0 892714 0 0 0 7887 0 152178 0 34198 0 1086977 0 0 William Brombach MD Director 409527 0 6500 0 15620 0 24744 0 30003 0 486394 0 13298 0 Anne M Pearson MD Director 319022 28000 20000 0 13688 0 23052 0 23393 0 399155 28000 9390 0 Douglas Davenport SVP/Chief Financial Officer 0 485949 0 50000 0 7462 0 81502 0 22057 0 646970 0 0 Catherine J Barr SVP/COO 0 396379 0 0 0 53179 0 55720 0 23114 0 528392 0 42653 Scott L North SVP/Acute Care ended 11-2015 389089 0 0 0 189196 0 115288 0 32236 0 725809 0 53784 0 Stephen J Kolar MD SVP CMO 0 250423 0 0 0 24665 0 47852 0 16639 0 339579 0 24665 Joanne M Sunquist SVP/CIO 0 363955 0 0 0 12251 0 59001 0 28305 0 463512 0 0 Dawn Kessler SVP/Chief HR Officer/Org Excel 0 385117 0 0 0 6555 0 62811 0 3174 0 457657 0 0 Paul Torgerson SVP/CAO/Gen Counsel 0 529291 0 0 0 10321 0 83989 0 37525 0 661126 0 0 Eric Nelson VP Ops Amb/Med Svcs 213757 0 0 0 480 0 34122 0 10788 0 259147 0 0 0 Kevin Garrett MD SVP/Chief Medical Officer 406147 0 0 0 5555 0 66413 0 31523 0 509638 0 0 0 Rochus V Voeller MD Physician 1125747 0 50000 0 1155 0 1858 0 24387 0 1203147 0 0 0 Margaret A Wallenfriedman MD Physician 1042496 0 12000 0 3913 0 16323 0 23586 0 1098318 0 0 0 Puneet Cheema MD Physician 993425 0 0 0 54324 0 38424 0 20127 0 1106300 0 47567 0 Peter H Kelly MD Physician 822184 0 50000 0 20319 0 29371 0 30926 0 952800 0 0 0 Andrew Portis MD Physician 827892 0 15000 0 40869 0 30083 0 36499 0 950343 0 36922 0 Brian Patty MD Former Officer 0 53002 0 0 0 112341 0 48824 0 3780 0 217947 0 38065 Mary F Pynn Former Officer 0 300663 0 0 0 39772 0 37183 0 23431 0 401049 0 34312 Thomas A Schmitt Former Key Employee 112756 0 0 0 447926 0 6493 0 10594 0 577769 0 192629 0 Julie A Schmidt Former Key Employee 0 72784 0 0 0 117665 0 98682 0 6616 0 295747 0 27069 Part I, Line 3 HealthEast Care System, a related tax-exempt organization, engages an external consulting firm to review annually the compensation of the organization's CEO, Senior Vice Presidents and Vice Presidents. The review was last completed in November 2015. The process includes the external consulting firm evaluating current base salaries and total cash and benefits compared to comparable positions within the comparator group. The external firm presents its findings to the affiliated tax-exempt organization's Executive Committee of the Board and indicates any recommendations for change. The affiliated tax-exempt Executive Committee of the Board approves the salaries of the CEO, Senior Vice Presidents and Vice Presidents. The consulting firm issues a reasonable compensation letter to affiliated tax-exempt organization's Board of Directors. Part I, Lines 4a-b The following individuals received severance payments during the year from this organization or a related organization: Thomas Schmitt $ 219,470 The terms and conditions of the severance payments are a signed release of rights and an agreement to not make any disparaging remarks about the organization from each individual. Eligible executives receive severance payments for one year. The following individuals participated in and received payment from a supplemental nonqualified retirement plan. The amount listed is the amount paid to the individual and reported accordingly on their 2015 W-2 Form. The terms and conditions of this supplemental nonqualified retirement plan is a five year cliff vesting arrangement: Catherine J. Barr $ 42,653 Anne M. Pearson, MD $ 9,390 Julie A. Schmidt $ 27,069 Stephen J. Kolar, MD $ 24,665 William Brombach, MD $ 13,298 Scott L. North $ 53,784 Brian Patty, MD $ 38,065 Mary F. Pynn $ 34,312 Thomas A. Schmitt $192,629 Puneet Cheema, MD $ 47,567 Peter Kelly, MD $ 7,770 Andrew Portis, MD $ 36,922 The following individuals were participants in the supplemental nonqualified retirement plan. The following amounts are their current year contribution into the plan and are accordingly included in Schedule J, Column C: Kathryn Correia $124,108 Douglas Davenport $ 65,656 Paul Torgerson $ 68,085 Dawn Kessler $ 44,224 Joanne M. Sunquist $ 42,070 Catherine J. Barr $ 31,134 Anne M. Pearson, MD $ 7,791 William Brombach, MD $ 5,426 Stephen J. Kolar, MD $ 15,188 Eric Nelson $ 21,326 Kevin Garrett, MD $ 48,811 Mary F. Pynn $ 19,384 Puneet Cheema, MD $ 16,522 Peter Kelly, MN $ 14,529 Andrew Portis, MD $ 13,610 Part I, Line 7 HealthEast Care System provides a Management Incentive Program. The program provides lump sum financial awards based on system-wide, business unit and/or department financial and quality measures. Annual goals, specifically tied to productivity and quality indicators, are set for the fiscal year and an incentive paid out annually if key goals and measures are achieved. Before HealthEast Care System can authorize payment of any awards, it must meet the following qualifications: * Financial - HealthEast must have sufficient net income for the fiscal year to cover the cost of any awards. * Accreditation - All HealthEast business units must maintain a level of quality and performance that results in, and maintains, accreditation by Joint Commission (JCAHO) and equivalent licensing boards. * Approval -The HealthEast Board of Directors has final approval of all incentive program payouts. In addition, each participant must meet individual performance qualifications to be eligible to receive an award. Mitchell Timmons MD Family member of Paul Torgerson, current Key Employee. 419849 Compensation 0 Form 990, Part V, Line 1a Cash disbursements are centralized through the parent organization. Therefore the parent organization, HealthEast Care System, makes the payment and files the related Form 1099's and Form 1096 instead of HealthEast Medical Research Institute. Form 990, Part VI, Section A, line 1 The Executive Committee shall consist of five or more members, including the ex officio members. The Chair shall chair the Executive Committee. The Executive Committee shall recommend to the Board of Directors changes in the Bylaws, approve conflict of interest policies and review compliance with conflict of interest policies. The Executive Committee shall have all the power and authority of the Board of Directors. The Executive Committee shall have the power to act only in the intervals between meetings of the Board. Only the Outside Directors of the Executive Committee shall be entitled to vote on any action taken by the Executive Committee in discharging its duties with regard to human resources and governance. Members of the Executive Committee who are Inside Directors shall not participate in, or be present during, any discussion of actions proposed or taken with respect to the duties with regard to human resources and governance, except to the extent requested to do so by the Outside Directors on the Executive Committee. Form 990, Part VI, Section A, line 2 All officers and employees are employed by related organizations in which the board members are also board members of the related organization. Therefore, a business relationship exists between these individuals. Form 990, Part VI, Section A, line 6 The sole member of HealthEast Medical Research Institute is HealthEast Care System, a 501(c)(3) tax-exempt, non-profit organization. The member organization does not elect the members of HealthEast Medical Research Institute's Board of Directors because HealthEast Medical Research Institute has a self-electing board. The member organization does not approve any decisions of the board. The member of the organization receives the organization's net assets upon dissolution. Form 990, Part VI, Section B, line 11 The Form 990 is sent electronically to all members of the Board of Directors prior to the filing of the Form 990. A representative of the tax department will be available to discuss and answer any questions regarding the Form 990 at the Executive meeting. Form 990, Part VI, Section B, line 12c HealthEast Care System monitors proposed or ongoing transactions for conflicts of interest through the procedures set forth in its Conflicts of Interest Policy (the Policy). The Policy covers HealthEast Care System's Directors, Officers and members of a Committee with Board-delegated powers. A Director, Officer or member of a Committee with Board-delegated powers who has a direct or indirect financial interest, is an interested person under the terms of the Policy. If a person is an interested person with respect to any entity in the HealthEast Care System he or she is an interested person with respect to all entities in the HealthEast Care System. Pursuant to the terms of the Policy, in connection with any actual or possible conflicts of interest, an interested person must disclose the existence of his or her financial interest and must be given the opportunity to disclose all material facts relating to his or her financial interest to the Directors or members of Committees with Board-delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, the interested person must leave the Board (or Committee) meeting while the financial interest is discussed and voted upon. The remaining Board (or Committee) members shall decide if a conflict of interest exists. An interested person may make a presentation at the Board or Committee meeting regarding the proposed transaction or arrangement, but after such presentation, the interested person shall leave the meeting during the discussion of, and the vote on, the proposed transaction or arrangement that results in the conflict of interest. Form 990, Part VI, Section B, line 15 The Chair of the Board of Directors engages an external consulting firm to review the compensation of the organization's CEO, Senior Vice Presidents and Vice Presidents annually and was last completed in November 2015. The process includes the external consulting firm evaluating current base salaries and total cash and benefits compared to comparable positions within the comparator group. The external firm presents its findings to the Executive Committee of the Board and indicates any recommendations for change. The Executive Committee of the Board approves the salaries. The consulting firm issues a reasonable compensation letter to the Board of Directors. Form 990, Part VI, Section C, line 19 The Articles of Incorporation for this organization are available to the public through the Secretary of State Office. The organization's conflict of interest policy and other governing documents are not made available to the public. The financial statements for this organization are available to the public through the Attorney General's Office. Form 990, Part VII, Section A, Column B This organization is a subsidiary of HealthEast Care System, a 501(c)(3), tax-exempt, non-profit organization. The Board of Directors for this organization is the same as the Board of Directors for HealthEast Care System. All hours worked as a member of the Board of Directors are reported on the Form 990 for the parent organization, HealthEast Care System. Therefore, we have reported 0.00 hours worked by each member of the Board of Directors on this organization's return. Form 990, Part XI, line 9: Transfers from Parent Organization 44,368,182. D & T Facility Management Company PO Box 64624 St Paul MN 55164 411928275 Management of Diagnostic Medical Services MN 501(c)(3) Line 11a, I HealthEast Woodwinds Hospital 0 HealthEast Professional Services PO Box 64624 St Paul MN 55164 261226617 Physician services provided to related tax-exempt hospitals. MN 501(c)(3) Line 9 HealthEast Care System 0 HealthEast St John's Hospital PO Box 64624 St Paul MN 55164 411456897 Hospital MN 501(c)(3) Line 3 HealthEast Care System 0 HealthEast St Joseph's Hospital PO Box 64624 St Paul MN 55164 410693880 Hospital MN 501(c)(3) Line 3 HealthEast Care System 0 HealthEast Woodwinds Hospital PO Box 64624 St Paul MN 55164 411592761 Hospital MN 501(c)(3) Line 3 HealthEast Care System 0 HealthEast Care System PO Box 64624 St Paul MN 55164 363517697 Hospital MN 501(c)(3) Line 3 N/A 0 Maplewood Professional Building Limited Partnership 1655 Beam Avenue Maplewood MN 55109 411431847 Rental Real Estate MN N/A HealthEast Surgery Center-Maplewood LLC 1655 Beam Avenue Maplewood MN 55109 203349887 Outpatient Surgery Center MN N/A East Metro Insurance LTD 62 Forum Lane 3rd Floor Camana Ba Grand Cayman CJ KY1-1203 980417513 Captive Insurance Organization CJ N/A C 0 HealthEast Diversified Services Inc PO Box 64624 St Paul MN 55164 411388583 Reference Lab & Rental Real Estate MN N/A C 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 1 0