2017-05-12T12:49:45-05:00 2016-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2015-07-01 231352208 SACRED HEART HOSPITAL SACR 6107764500 421 W CHEW STREET ALLENTOWN PA 18102 DANIEL C CONFALONE CHIEF FINANCIAL OFFICER 6107764500 2017-05-09 1 JULIUS C GREEN CPA P00350393 2159720701 2015 2021-01-29 14:40:06Z JOHN NESPOLI 421 W CHEW STREET ALLENTOWN PA 18102 115844454 0 X WWW.SHH.ORG X 1917 PA TO PROVIDE HEALTHCARE & WELLNESS THROUGH QUALITY SERVICES AND SERVICES BASED ON CATHOLIC DIRECTIVES. 9 7 1105 122 430113 -101740 1060973 0 109983387 113301930 930031 223205 2283106 2064379 114257497 115589514 102480 47915 0 0 43586594 46530175 0 0 0 60730304 59059831 104419378 105637921 9838119 9951593 72584950 71468031 39467845 39103993 33117105 32364038 X SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HEALTHCARE AND WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SERVICES AND PROGRAMS BASED ON CATHOLIC ETHICAL AND RELIGIOUS DIRECTIVES. OUR HEALTHCARE NETWORK CONTINUES ITS LEADERSHIP IN THE COMMUNITY THROUGH COLLABORATION AND AFFILIATION WITH RECOGNIZED REGIONAL AND NATIONAL EXPERTS. WE ASSURE THAT THE SYSTEM WILL REMAIN VIABLE BY PROVIDING COST EFFECTIVE AND VALUE-DRIVEN SERVICES. A PROGRAM OF CONTINUOUS PERFORMANCE IMPROVEMENT ENABLES US TO RESPOND TO THE NEEDS OF THE COMMUNITY WHILE GIVING MEANINGFUL EMPLOYMENT, EDUCATION AND TRAINING TO OUR EMPLOYEES. IN FULFILLING THIS MISSION, SACRED HEART HEALTHCARE SYSTEM RECOGNIZES THE DIGNITY AND ETERNAL DESTINY OF EACH INDIVIDUAL WITH SPECIAL CONCERN FOR THE SICK AND THE POOR. 0 0 55819971 47915 73486539 INPATIENT SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY INPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 5,261 CASES FOR A TOTAL OF 39,067 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 29498056 32583234 OUTPATIENT SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY OUTPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 133,712 CASES FOR A TOTAL OF 133,712 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 6547372 7232157 EMERGENCY ROOM SERVICES:EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY EMERGENCY ROOM SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2016 THERE WERE 30,360 CASES FOR A TOTAL OF 30,360 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 91865399 1 0 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 144 0 1 1105 1 1 1 0 0 0 0 0 0 0 0 0 X 9 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X BRIAN WESSNER 6107765313 421 W CHEW STREET ALLENTOWN PA 18102 ROBERT ZENTZ CHAIRMAN 1.00 X X 0 0 0 DOUGLAS SHOENBERGER MD FIRST VICE CHAIRMAN 1.00 X X 0 0 0 JAMES FRONHEISER SECOND VICE CHAIRMAN 1.00 X X 0 0 0 JOHN L NESPOLI PRESIDENT/CEO 50.00 5.00 X X 0 492480 25548 ANTHONY AUTERI MD DIRECTOR 1.00 X 0 0 0 TRICIA BERNECKER PHD DIRECTOR 1.00 X 0 0 0 REV JOHN GIBBONS DIRECTOR 1.00 X 0 0 0 WILLIAM J SCHARLE DIRECTOR 1.00 X 0 0 0 DR PETER ISAAC MEDICAL STAFF PRESIDENT 10.00 X 14588 0 0 DANIEL C CONFALONE CFO 50.00 5.00 X 0 322166 26384 STEPHEN A LANSHE ESQ VP & GENERAL COUNSEL 50.00 5.00 X 0 345275 30464 ANDREW UNGER PHYSICIAN 55.00 X 219559 0 28512 DANIEL COLLER PHYSICIAN 55.00 X 205153 0 24152 RICHARD MARTIN PHYSICIAN 55.00 X 203946 0 16266 ATIRA RAHMAN PHYSICIAN 55.00 X 172228 0 26820 NANDHINI VEEREAEAGHAVEN PHYSICIAN 55.00 X 169828 0 3954 985302 1159921 182100 22 0 1 0 GRANT FACILITIES MANAGEMENT INC 188 FRIES MILL RD TURNERSVILLE NJ 08012 FACILITIES MANAGEMENT 1997870 MORRISON MANAGEMENT SPEC INC PO BOX 102289 ATLANTA GA 30368 FOOD SERVICES 1865686 PRECYSE SOLUTIONS LLC PO BOX 11407 BIRMINGHAM AL 35246 MEDICAL RECORD CODING 1668807 BOYLE CONSTRUCTION INC 1209 HAUSMAN RD ALLENTOWN PA 18104 CONTRACTOR SERVICES 1151160 CERNER HEALTH SERVICES INC PO BOX 959167 CHICAGO IL 63195 IT SERVICES 797553 30 NET PATIENT SERVICE REV 541900 112733243 112733243 MEANINGFUL USE REVENUE 541900 455864 455864 CAPITATION REVENUE 541900 112823 112823 113301930 146268 146268 795536 0 795536 795536 795536 185000 108063 76937 76937 76937 186831 146877 39954 39954 HEALTHCALL REVENUE 900099 524528 430113 94415 PARKING REVENUE 900099 300781 300781 MOSS REHAB REVENUE 900099 124817 124817 278763 278763 1228889 115589514 113301930 430113 1857471 X 47915 47915 37292345 34903824 2388521 428617 428617 6179241 5284753 894488 2629972 2451789 178183 2610368 185569 2424799 281183 24215 256968 110460 110460 7633 7633 18062061 15492891 2569170 184465 30623 153842 2574541 203099 2371442 148874 66000 82874 2518082 1162003 1356079 145529 19488 126041 83272 59068 24204 1224687 1224687 5874117 5874117 1115058 1114903 155 MEDICAL SUPPLIES 15666916 15666916 BAD DEBT EXPENSE 6407412 6407412 REPAIRS & MAINTENANCE 1014561 810770 203791 EQUIPMENT LEASES & RENT 530531 381086 149445 500081 343811 156270 105637921 91865399 13772522 0 2663 2713 1989833 4814084 902217 14493664 13529876 2161409 2122582 1415020 1404094 172456282 134481550 37537435 37974732 9952469 9454542 4130240 2165408 72584950 71468031 11394070 11407890 17100795 16116839 9143024 11365966 1829956 213298 39467845 39103993 X 29856911 31318478 1426362 0 1833832 1045560 33117105 32364038 72584950 71468031 X 9951593 70891 -10775551 X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 7633 7633 0 PART II-B, LINE 1: THE ORGANIZATION IS A MEMBER OF THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA WHICH ENGAGES IN LOBBYING EFFORTS ON BEHALF OF ITS MEMBER HOSPITALS. TOTAL HAP FEES FOR FY2016 ARE $30,604. A PORTION OF THE DUES PAID TO THIS ORGANIZATION HAS BEEN ALLOCATED TO LOBBYING ACTIVITIES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $7,633. 3653064 340461 -890905 2057060 1045560 6526527 1092030 316983 4282476 3653064 5893410 1934142 58489 1359514 6526527 4846304 3890574 244920 3088388 5893410 2743989 5053037 30968 2981690 4846304 0.00000 1.00000 0.00000 0 0 1445773 1445773 78644664 58257048 20387616 91386896 76224502 15162394 978949 978949 37974732 INTEREST PAYABLE 65445 DUE TO THIRD-PARTY PAYORS 147853 213298 X 109260093 70891 -6547189 -6476298 115736391 -146877 -146877 115589514 110013160 10782651 10782651 99230509 6407412 6407412 105637921 PART V, LINE 4: UNCOMPENSATED CARE, HOSPITAL SPECIFIC PROGRAMS AND EDUCATION, EQUIPMENT PURCHASE AND IMPROVEMENTS. PART X, LINE 2: THE HOSPITAL ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2016 OR 2015. THE HOSPITAL'S POLICY IS TO RECOGNIZE INTEREST RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. THE HOSPITAL'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR YEARS BEFORE 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS -788,272. BAD DEBT EXPENSE -6,407,412. TRANSFER FROM AFFILIATES 648,495. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -146,877. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 146,877. TRANSFERS TO AFFILIATES 10,635,774. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBT EXPENSE 6,407,412. 1 1 X 1 X 1 X 1 1 0 0 99271 99271 0.00100 24176678 19207742 4968936 0.05010 24275949 19207742 5068207 0.05110 289835 289835 0.00290 4166713 1053834 3112879 0.03140 1424459 1293115 131344 0.00130 51793 7427 44366 0.00040 5932800 2354376 3578424 0.03600 30208749 21562118 8646631 0.08710 17186 17186 0.00020 38715 38715 0.00040 4073 4073 0.00000 21483 21483 0.00020 36676 36676 0.00040 118133 118133 0.00120 1 6407412 3363891 27708834 18268986 9439848 X 1 1 1 1 SACRED HEART HOSPITAL 421 W CHEW STREET ALLENTOWN PA 181023406 WWW.SHH.ORG 195501 X X X X BEHAVIORAL HEALTH SERVICES SACRED HEART HOSPITAL 1 0 0 1 X X X X X X X X X 15 1 1 1 1 X WWW.SHH.ORG/COMMUNITY-SERVICES/COMMUNITY-HEALTH-PROFILE/ X X 1 15 1 WWW.SHH.ORG/COMMUNITY-SERVICES/COMMUNITY-HEALTH-PROFILE/ 0 0 1 X 200.000000000000 200.000000000000 X X X X X 1 1 X X X 1 X SHH.ORG/PATIENTS-VISITORS/FINANCIAL-ASSISTANCE/ X SHH.ORG/PATIENTS-VISITORS/FINANCIAL-ASSISTANCE/ X SHH.ORG/PATIENTS-VISITORS/FINANICAL-ASSISTANCE/ X X X 1 X 0 X X X X 1 X 0 0 SACRED HEART HOSPITAL PART V, SECTION B, LINE 5: THE COALITION OF HOSPITALS HELD FOUR SEPARATE PUBLIC MEETINGS IN THE LEHIGH VALLEY THAT INCLUDED MEMBERS OF THE ALLENTOWN AND BETHLEHEM BUREAUS OF HEALTH, MANY MEMBERS OF THE PUBLIC, AND HEALTHCARE PROFESSIONALS INCLUDING THOSE NOT AFFILIATED WITH OUR HOSPITALS. AS AN ACTIVE MEMBER OF THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV"), SACRED HEART HOSPITAL WORKED IN COLLABORATION WITH FOUR OTHER REGIONAL, NON-PROFIT ACUTE AND POST-ACUTE CARE HOSPITALS AND THE DOROTHY RIDER POOL TRUST TO DEVELOP THE REGION'S COMMUNITY HEALTH NEEDS ASSESSMENT. THE HOSPITAL PARTNERS OF THE HCCLV INCLUDE: - SACRED HEART HEALTHCARE SYSTEM - LEHIGH VALLEY HEALTH NETWORK - ST. LUKE'S UNIVERSITY HEALTH NETWORK - GOOD SHEPHERD REHABILITATION HOSPITAL - KIDSPEACETHE HCCLV'S APPROACH TO THE CHNA INCORPORATES BEST PRACTICE STANDARDS RECOMMENDED BY THE AMERICAN PUBLIC HEALTH ASSOCIATION ("APHA") AND THE ASSOCIATION FOR COMMUNITY HEALTH IMPROVEMENT ("ACHI") AND HAS ACTIVELY PARTNERED WITH MANY STAKEHOLDERS, COMMUNITY BASED ORGANIZATIONS AND COMMUNITY MEMBERS.THE DOROTHY RIDER POOL TRUST REACHED OUT TO TWO COMMUNITY-BASED ORGANIZATIONS, THE HISPANIC CENTER LEHIGH VALLEY IN BETHLEHEM AND THE RESURRECTED COMMUNITY DEVELOPMENT CORPORATION IN ALLENTOWN, ASORGANIZATIONS TRUSTED WITHIN EACH COMMUNITY TO HOST THE FORUMS. THESE ORGANIZATIONS PUBLICIZED THE EVENTS AMONG STAKEHOLDERS, RECRUITED ATTENDEES, ORGANIZED REFRESHMENTS FROM LOCAL INDEPENDENT VENDORS, AND PROVIDED WELCOME AND INTRODUCTIONS AT THE START OF EACH FORUM. SACRED HEART HOSPITAL PART V, SECTION B, LINE 6A: OUR CHNA WAS CREATED IN PARTNERSHIP WITH LEHIGH VALLEY HEALTH NETWORK, ST. LUKE'S UNIVERSITY HOSPITAL NETWORK, GOOD SHEPHERD REHABILITATION HOSPITAL, KIDSPEACE, AND SACRED HEART HEALTHCARE SYSTEM. THE COALITION IS KNOWN AS THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV"). SACRED HEART HOSPITAL PART V, SECTION B, LINE 6B: OUR CHNA WAS ALSO CREATED IN PARTNERSHIP WITH THE DOROTHY RIDER POOL HEALTH CARE TRUST. SACRED HEART HOSPITAL PART V, SECTION B, LINE 7D: IN ADDITION TO THIS BEING MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE, ALL PARTICIPANTS OF THE AFORE-MENTIONED HCCLV HAVE POSTED THIS INFO ON THEIR WEBSITES. SACRED HEART HOSPITAL PART V, SECTION B, LINE 11: SACRED HEART HOSPITAL HAS PREPARED AND ADOPTED A WRITTEN IMPLEMENTATION PLAN TO ADDRESS THE SIGNIFICANT NEEDS OUTLINED IN THE COMMUNITY HEALTH NEEDS ASSESSMENT. UNMET HEALTHCARE NEEDS THAT WERE IDENTIFIED INCLUDE: HOUSING CONDITIONS, NUTRITION AND FOOD, SOCIAL ASSOCIATIONS AND CHILDHOOD OBESITY, SMOKING AND PREVENTION ACTIVITIES FOR WOMEN'S HEALTH. OUR PRIORITY UNMET NEEDS IN THE IMPLEMENTATION PLAN ARE INTEGRAL TO OUR COMMUNITY BENEFIT STRATEGY. THE HOSPITAL'S STRATEGIES FOR MEETING THESE NEEDS ARE DESCRIBED IN THE IMPLEMENTATION PLAN. SACRED HEART'S LEADERS CONTINUE TO MONITOR NEW PROGRAM DEVELOPMENTS AND SERVICES. SOME NEEDS CANNOT BE ADDRESSED FULLY BY THE HOSPITAL ALONE SUCH AS THE HOUSING ISSUE. WHEREAS THE HOSPITAL CANNOT BE SOLELY RESPONSIBLE FOR ADDRESSING THESE ISSUES, IT CAN TAKE ADVANTAGE OF OPPORTUNITIES TO PLAY A STRONGER AND BETTER ROLE IN MONITORING THESE ACTIVITIES AND COMMUNICATING WITH THE APPROPRIATE AGENCIES. 10 1 - SH CARDIOVASCULAR CENTER 325 NORTH 5TH STREET SUITE 2001 ALLENTOWN PA 18102 OUTPATIENT FACILITY 2 - SH IMAGING NORTHAMPTON 602 B EAST 21ST STREET NORTHAMPTON PA 18067 OUTPATIENT FACILITY 3 - NUCLEAR MEDICINE 325 NORTH 5TH STREET ALLENTOWN PA 18102 OUTPATIENT FACILITY 4 - SACRED HEART OUTPATIENT REHAB SERVICES 1227 LIBERTY STREET SUITE 102 ALLENTOWN PA 18102 OUTPATIENT FACILITY 5 - ALLENTOWN FAMILY PRACTICE 450 CHEW STREET SUITE 101 ALLENTOWN PA 18102 OUTPATIENT FACILITY 6 - CENTER FOR CANCER CARE 325 NORTH 5TH STREET ALLENTOWN PA 18102 OUTPATIENT FACILITY 7 - LANSHE BREAST CENTER 451 CHEW STREET SUITE 210 ALLENTOWN PA 18102 OUTPATIENT FACILITY 8 - SH PEDIATRIC AND ADOLESCENT SERVICES 450 CHEW STREET SUITE 202 ALLENTOWN PA 18102 OUTPATIENT FACILITY 9 - OBGYN SERVICES 450 CHEW STREET SUITE 201 ALLENTOWN PA 18102 OUTPATIENT FACILITY 10 - SH DENTAL CENTER 450 CHEW STREET SUITE 201 ALLENTOWN PA 18102 OUTPATIENT FACILITY PART I, LINE 7: WITH THE EXCEPTION OF LINE G, THE COST TO CHARGE RATIO, CALCULATED BY USING WORKSHEET 2, WAS APPLIED. FOR LINE G - THE ACTUAL DEPARTMENTAL COST TO CHARGE RATIO WAS APPLIED. PART I, LINE 7G: ALL OF LINE 7G IS ATTRIBUTABLE TO CLINICS AND OTHER SUBSIDIZED HEALTH SERVICES RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS CONSTITUTING COMMUNITY BENEFIT. 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 $ 6,407,412. PART II, COMMUNITY BUILDING ACTIVITIES: COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS, AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES, AND OTHER HEALTHCARE PROFESSIONALS. PART III, LINE 2: BAD DEBT EXPENSE WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES. PART III, LINE 3: BAD DEBT EXPENSE WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES AND MULTIPLIED BY ITS COST TO CHARGE RATIO.THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. PART III, LINE 4: ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, THE HOSPITAL 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. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUAL AMOUNTS DUE AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS, THE HOSPITAL 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 BILLED RATES 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: MEDICARE COSTS WERE DERIVED FROM THE MEDICARE COST REPORT FILED BY THE ORGANIZATION.THE HOSPITAL CONTINUES TO PROVIDE CARE TO ALL PRESENTING AND ADMITTED PATIENTS, REGARDLESS OF ABILITY OR PAY. NOTWITHSTANDING THE COSTS TO PROVIDE CARE, RECEIVING "LESS" THAN WHAT IT COSTS TO PROVIDE ADEQUATE CARE TO MEDICARE COVERED LIVES WOULD DO THE HOSPITAL A DISSERVICE. ANY MEDICARE SHORTFALL SHOULD COUNT AS A COMMUNITY BENEFIT. PART III, LINE 9B: AFTER AN ASSESSMENT OF MEDICAL NECESSITY IS COMPLETED AND FINANCIAL ABILITY IS DETERMINED, SHH MAY PROVIDE FREE CARE TO PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THIS POLICY. SHH WILL FOLLOW STANDARD PROCEDURES IN DETERMINING ELIGIBILITY FOR FINANCIAL ASSISTANCE AND IN COLLECTING ON DELINQUENT PATIENT ACCOUNTS AS FOLLOWS:ANY PATIENT SEEKING URGENT OR EMERGENT CARE (WITHIN THE MEANING OF SECTION 1867 OF THE SOCIAL SECURITY ACT) AT SHH SHALL BE TREATED WITHOUT DISCRIMINATION AND WITHOUT REGARD TO A PATIENT'S ABILITY TO PAY FOR CARE.FINANCIAL ASSISTANCE FOR MEDICALLY NECESSARY SERVICES IS AVAILABLE BASED ON THE PATIENT'S FAMILY INCOME. FREE CARE WILL BE GRANTED TO THOSE UNINSURED OR UNDERINSURED PATIENTS WHOSE FAMILY INCOME IS EQUAL TO OR LESS THAN 200% OF THE MOST RECENTLY PUBLISHED FEDERAL POVERTY INCOME GUIDELINES (FPG).PATIENTS MAY ALSO BE GRANTED A DISCOUNT BASED UPON MEDICAL INDIGENCE. A DETERMINATION AS TO A PATIENT'S MEDICAL INDIGENCE TAKES INTO CONSIDERATION SIGNIFICANT MEDICAL BILLS NOT COVERED BY INSURANCE, IN ADDITION TO THE PATIENT'S INCOME LEVEL AND LIQUID ASSETS.COLLECTIONS GUIDELINES SHALL APPLY TO HOSPITAL BILLS FOR PATIENTS DEEMED INELIGIBLE FOR FINANCIAL ASSISTANCE BASED ON THEIR INCOME AND FAMILY SIZE. PART VI, LINE 2: SACRED HEART HOSPITAL, IN CONJUNCTION WITH THREE OTHER REGIONAL NON-PROFIT HOSPITALS AND A LOCAL TRUST, COLLABORATED ON A COMMUNITY HEALTH NEEDS ASSESSMENT AND ACTION PLAN. INTERNALLY, SACRED HEART HOSPITAL HAS CREATED A COMMUNITY HEALTH COMMITTEE COMPRISED OF BOARD MEMBERS AND STAFF THAT WILL ADMINISTER THE IMPLEMENTATION OF THE ACTION PLAN.THE OBJECTIVE OF THIS COLLABORATION IS TO DEVELOP A COMMUNITY HEALTH NEEDS ASSESSMENT THAT WILL FULFILL THE REQUIREMENTS OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT. JUST AS IMPORTANTLY AND IN THE SPIRIT OF THIS ACT, THE GROUP'S FINDINGS WILL SERVE AS A VEHICLETO PROMOTE BETTER COOPERATION AMONG ITS MEMBERS AND OUR COMMUNITY PARTNERS WHILE CREATING A PLAN OF ACTION THAT WILL ALLOW US TO BETTER SERVE THE HEALTH CARE NEEDS OF THE REGION.THE INITIAL COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED IN 2013. A SECOND COMMUNITY HEALTH NEEDS ASSESSMENT WAS COMPLETED IN 2016. THE FINAL COMMUNITY HEALTH NEEDS ASSESSMENT WAS MADE AVAILABLE IN JANUARY 2013, AND AN IMPLEMENTATION PLAN WAS DEVELOPED IN THE EARLY SPRING OF 2016. ALL DOCUMENTS WERE ACCEPTED AND APPROVED BY THE SACRED HEART HOSPITAL BOARD OF DIRECTORS IN APRIL 2016. PART VI, LINE 3: ON EACH OF THE BILLING STATEMENTS IT STATES: "SACRED HEART HOSPITAL PROVIDES FREE CARE TO PERSONS WHO QUALIFY. IF YOU CANNOT AFFORD THE COST OF YOUR CARE, YOU ARE ENCOURAGED TO APPLY FOR FREE CARE BY CALLING 610-776-4566". IF THE PATIENT CALLS IN, THE HOSPITAL HELPS SCREEN THEM FOR MEDICAL ASSISTANCE (MA) ELIGIBILITY AND REFER TO "ADREIMA" (ADVANCED REIMBURSEMENT MANAGEMENT TO DO AN MA APPLICATION IF APPROPRIATE).IF THE PATIENT DOES NOT QUALIFY FOR MA, THE HOSPITAL REQUESTS THE NECESSARY DOCUMENTATION TO DETERMINE ELIGIBILITY FOR CHARITY. FOR THE PATIENTS THAT DO NOT QUALIFY FOR MA OR CHARITY, THE HOSPITAL OFFERS A 75% SELF PAY REDUCTION FROM GROSS CHARGES AND/OR A PAYMENT PLAN. IN ADDITION TO THE STATEMENTS, THIS INFORMATION IS PROVIDED IN ADMISSION PACKETS, AT REGISTRATION, IN THE EMERGENCY FACILITY, ON ALL BILLS, AND ON THE HOSPITAL'S WEB SITE. PART VI, LINE 4: SACRED HEART HOSPITAL IS LOCATED IN THE LOWEST PER CAPITA INCOME ZIP CODE IN ALLENTOWN, PA. OVER 57% OF THE POPULATION OF ALLENTOWN IS MINORITY, IN THE SCHOOLS IT IS MORE LIKE 87% MINORITY. ALLENTOWN SCHOOL DISTRICT HAS 87% OF ITS STUDENTS RECEIVING FREE OR REDUCED LUNCH, AN INDICATOR OFPOVERTY. MANY CHILDREN IN ALLENTOWN ARE INSURED BY PA-CHIP OR HAVE NO INSURANCE BECAUSE THEY MAY BE ILLEGALLY IN THE UNITED STATES WITH THEIR FAMILIES. A TOTAL OF 80% OF INPATIENTS HAVE EITHER GOVERNMENT PAID INSURANCE (MEDICARE/MEDICAID, MA MANAGED CARE) OR ARE SELF-PAY; OF OUTPATIENT CARE, 71% IS PAID BY GOVERNMENT INSURANCE OR SELF-PAY. PART VI, LINE 5: THE EXAMPLES LISTED IN THE HEALTH NEEDS ASSESSMENT HELP BUILD OUR COMMUNITY BY IMPROVING THE HEALTH STATUS OF CHILDREN, IMPROVING IMMUNIZATION RATES, AND PROVIDING CARE FOR CHRONIC DISEASE MANAGEMENT (ASTHMA, DIABETES, OBESITY). PARISH NURSING PROVIDES NEEDED ACCESS TO CARE FOR THE MOST INDIGENT OF ALLENTOWN, INCLUDING THE HOMELESS AND UNDOCUMENTED INDIVIDUALS.THE HOSPITAL OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545:1. PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF THEIR ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE, AND MEDICAID PATIENTS;2. OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR;3. MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS;4. CONTROL RESTS WITH ITS BOARD OF DIRECTORS AND THE BOARD OF DIRECTORS OF SACRED HEART HEALTHCARE SYSTEM. BOTH BOARDS ARE COMPRISED OF A MAJORITY OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES, AND ADVANCE MEDICAL CARE PROGRAMS AND ACTIVITIES. PART VI, LINE 6: OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE SACRED HEART HEALTHCARE SYSTEM:NOT FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES:- SACRED HEART HEALTHCARE SYSTEM - SACRED HEART HEALTHCARE SYSTEM IS THE TAX-EXEMPT PARENT OF SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS ORGANIZATION IS THE SOLE MEMBER OR STOCKHOLDER OF EACH AFFILIATED ENTITY. THE SYSTEM IS AN INTEGRATED HEALTHCARE SYSTEM OF PROVIDERS THROUGHOUT THE STATE OF PENNSYLVANIA.SACRED HEART HEALTHCARE SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3).AS THE PARENT ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM STRIVES TO CONTINUALLY DEVELOP AND OPERATE A HEALTHCARE NETWORK WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE SERVICES TO THE RESIDENTS OF PENNSYLVANIA AND SURROUNDING COMMUNITIES. SACRED HEART HEALTHCARE SYSTEM ENSURES THAT THE SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN,RELIGION, OR ABILITY TO PAY. NO INDIVIDUALS ARE DENIED NECESSARY MEDICAL CARE, TREATMENT, OR SERVICES. SACRED HEART HEALTHCARE SYSTEM INCLUDES SACRED HEART HOSPITAL.-SACRED HEART FOUNDATION - SACRED HEART FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3).THROUGH FUNDRAISING SERVICES, THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS, AND SERVICES OF SACRED HEART HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION, OR ABILITY TO PAY.- SH REALTY CORPORATION - SH REALTY CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). THE ORGANIZATION SUPPORTS SACRED HEART HOSPITAL, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION, OR ABILITY TO PAY AND IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF RENTAL SPACE FOR VARIOUS AFFILIATES OF THE SACRED HEART HEALTHCARE SYSTEM.FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES:- SACRED HEART ANCILLARY SERVICES, INC. - SACRED HEART ANCILLARY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SACRED HEART HEALTHCARE SYSTEM. THE ORGANIZATION IS LOCATED IN ALLENTOWN, LEHIGH COUNTY, PENNSYLVANIA. THE ORGANIZATION PROVIDES HEALTHCARE SERVICES TO INDIVIDUALS.PART VI, LINE 7: N/A. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN PENNSYLVANIA. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE COMMONWEALTH OF PA. 1 LEHIGH CONFERENCE OF CHURCHES 534 CHEW STREET ALLENTOWN PA 181022228 231484205 501(C)(3) 11250 GENERAL SUPPORT NEW VENTURE FUND 1201 CONNECTICUT AVE NW WASHINGTON DC 20036 205806345 501(C)(3) 8333 GENERAL PURPOSE CATHOLIC CHARITIES 530 UNION BLVD ALLENTOWN PA 18109 231598117 501(C)(3) 5000 GENERAL PURPOSE 3 0 PART I, LINE 2: GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. 0 1 0 0 0 0 0 1 0 JOHN L NESPOLI PRESIDENT/CEO 0 416025 0 68931 0 7524 0 5300 0 20248 0 518028 0 0 DANIEL C CONFALONE CFO 0 279232 0 42805 0 129 0 3032 0 23352 0 348550 0 0 STEPHEN A LANSHE ESQ VP & GENERAL COUNSEL 0 298547 0 45954 0 774 0 5300 0 25164 0 375739 0 0 ANDREW UNGER PHYSICIAN 219301 0 0 0 258 0 4470 0 24042 0 248071 0 0 0 DANIEL COLLER PHYSICIAN 204391 0 0 0 762 0 4164 0 19988 0 229305 0 0 0 RICHARD MARTIN PHYSICIAN 203946 0 0 0 0 0 4184 0 12082 0 220212 0 0 0 ATIRA RAHMAN PHYSICIAN 172090 0 0 0 138 0 3206 0 23614 0 199048 0 0 0 NANDHINI VEEREAEAGHAVEN PHYSICIAN 169738 0 0 0 90 0 3400 0 554 0 173782 0 0 0 PART I, LINE 3 A RELATED ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM, USES THE FOLLOWING METHODS TO DETERMINE COMPENSATION FOR THE PRESIDENT/CEO: COMPENSATION COMMITTEE, COMPENSATION SURVEY OR STUDY AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATE IN A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN: JOHN NESPOLI, DAN CONFALONE, STEPHEN LANSHE PART I, LINE 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING THE CALENDAR YEAR AS REPORTED IN COLUMN B(II) HEREIN AND IN EACH INDIVIDUAL'S FORM W-2 AS TAXABLE WAGES. BONUSES ARE BASED ON OPERATIONAL GROWTH, PATIENT SATISFACTION, AND FINANCIAL AND CLINICAL QUALITY GOALS SET EACH YEAR. A LEHIGH COUNTY GENERAL PURPOSE AUTH HOSP REV BONDS 911886539 2013-04-04 9804309 TO REFUND SERIES 2005 BONDS 0 0 0 A 1575057 9804309 2577173 196086 7031050 2013 1 1 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 1 1 A 1 FORM 990, PART III, LINE 4A SACRED HEART HOSPITAL IS LOCATED IN AN AREA WITH A HIGH CONCENTRATION OF LOW INCOME HOUSEHOLDS. AS A RESULT, THE HOSPITAL PROVIDES CARE TO A LARGE NUMBER OF INDIGENT PATIENTS. IN THE FISCAL YEAR ENDED JUNE 30, 2016 PATIENTS WITH MEDICAID, MA MANAGED CARE OR NO INSURANCE AT ALL MADE UP 33.28% OF SACRED HEART'S INPATIENT VOLUME AND 32.31% OF ITS OUTPATIENT VOLUME. THE HOSPITAL PROVIDES CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA BY PROVIDING SERVICES AT A REDUCED RATE OR AT NO CHARGE AT ALL. IN FISCAL YEAR 2016 THE HOSPITAL WROTE OFF $100,000 IN CHARGES PURSUANT TO ITS CHARITY CARE POLICY. ALSO, IN RECOGNIZING ITS MISSION TO THE COMMUNITY, THE HOSPITAL PROVIDES CARE TO PERSONS COVERED BY MEDICAL ASSISTANCE WHICH REIMBURSES THE HOSPITAL BELOW INCURRED COSTS. SACRED HEART HOSPITAL ("SHH") IS A GENERAL MEDICAL, SURGICAL AND TEACHING HOSPITAL. SHH IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. SHH IS AN AFFILIATE OF THE SACRED HEART HEALTHCARE SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. PURSUANT TO ITS CHARITABLE PURPOSES, SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SHH OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) SHH OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3) SHH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4) CONTROL OF SHH RESTS WITH ITS BOARD OF DIRECTORS; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE MISSIONARY SISTERS OF THE MOST SACRED HEART RELIGIOUS ORDER IN GERMANY ARRIVED IN ALLENTOWN ON JUNE 15, 1912 TO HELP CARE FOR THE SICK AND INJURED OF THE SACRED HEART PARISH DURING A WIDESPREAD DIPHTHERIA OUTBREAK. AS DIPHTHERIA RAGED, THE SISTERS GAVE DISPENSARY SERVICES AS WELL AS VISITING NURSE SERVICES. THIS WAS THE ACTUAL "START" OF SACRED HEART HOSPITAL. IN 1915, THE ACTUAL FOUNDING OF SACRED HEART HOSPITAL AS A COMMUNITY INSTITUTION WAS FORMALIZED AND DEDICATED. TWO YEARS LATER, SACRED HEART HOSPITAL WAS OFFICIALLY INCORPORATED UNDER PENNSYLVANIA LAW. IN 1920, SACRED HEART HOSPITAL RECEIVED APPROVAL TO TRAIN INTERNS AND IN 1922 WAS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS. SINCE THEN, SACRED HEART HOSPITAL HAS EXPANDED ITS CAMPUS AND ITS REACH ACROSS OUR COMMUNITY. OUR CAMPUS INCLUDES A 215-BED CATHOLIC MEDICAL CENTER WHICH OFFERS A WIDE RANGE OF ADVANCED MEDICAL, SURGICAL AND OUTPATIENT HOSPITAL SERVICES. SACRED HEART HEALTHCARE SYSTEM AND ITS AFFILIATES ("SACRED HEART") PROVIDE A VAST RANGE OF SPECIALTY SERVICES AT OUR 421 CHEW STREET LOCATION IN ALLENTOWN, PA, INCLUDING BARIATRIC SERVICES, BEHAVIORAL HEALTH, CANCER CARE, CARDIAC SERVICES, EMERGENCY SERVICES, ENDOVASCULAR SERVICES, IMAGING SERVICES, LABORATORY SERVICES, LUNG AND RESPIRATORY SERVICES, NEURODIAGNOSTIC TESTING, NEUROLOGY, ORTHOPEDICS, PAIN MANAGEMENT, SENIOR SERVICES, SLEEP DISORDERS, STROKE CARE, SURGICAL SERVICES, TRANSITIONAL CARE, WOMEN'S HEALTH AND WOUND CARE SERVICES. IN ADDITION TO HOSPITAL SERVICES, SACRED HEART PROVIDES AN EXTENSIVE LIST OF MEDICAL SERVICES OUTSIDE OF THE HOSPITAL TO BETTER MEET THE NEEDS OF OUR PATIENTS AND COMMUNITY POPULATIONS. A NETWORK OF PHYSICIAN PRACTICES THROUGHOUT LEHIGH AND NORTHAMPTON COUNTIES PROVIDES COMPLETE PRIMARY MEDICAL CARE TO THE REGION'S RESIDENTS. IN ADDITION TO THE PHYSICIAN PRACTICES, SACRED HEART PROVIDES ACCESS TO OUTPATIENT SERVICES INCLUDING LABORATORY, IMAGING, RETAIL PHARMACY, INFUSION, RESPIRATORY AND OUTPATIENT REHABILITATION. SACRED HEART OFFERS OUTREACH TO COMMUNITY MEMBERS IN NEED OF CARE THROUGH ITS HOME HEALTH PROGRAM REACHING PATIENTS IN THEIR HOME ENVIRONMENT AFTER HOSPITALIZATION OR MEDICAL CARE. SACRED HEART'S HOSPICE PROGRAM SUPPORTS MANY FAMILIES WITH A GOAL OF ENABLING TERMINALLY ILL PATIENTS, YOUNG AND OLD, TO LIVE LIFE TO THE FULLEST IN THEIR HOMES AMONG FAMILY AND FRIENDS. THROUGH PARISH NURSING, SACRED HEART IMPACTS FIVE CONGREGATIONS OF INDIVIDUALS, PROVIDING HOLISTIC NURSING CARE TO FAITH COMMUNITY MEMBERS ACROSS THE LIFE SPAN AND FACILITATES WELLNESS AND THE PROMOTION OF A HEALING COMMUNITY. SACRED HEART ALSO FUNCTIONS AS AN EDUCATOR FOR PARISH NURSES THROUGHOUT THE LEHIGH VALLEY THROUGH THE PARISH NURSING COALITION OF THE GREATER LEHIGH VALLEY. TO HELP ENSURE CHILDREN IN OUR COMMUNITY RECEIVE HIGH QUALITY HEALTHCARE, SACRED HEART PROVIDES CARE THROUGH FIVE SCHOOL-BASED HEALTH CENTERS. OUR GOAL FOR THE CENTERS IS TO PROVIDE ACCESSIBLE AND AFFORDABLE CHILDREN'S HEALTHCARE AND TO OFFER HEALTH EDUCATION TO THE CHILDREN AND THEIR FAMILIES. THESE CENTERS ARE HOUSED IN ELEMENTARY SCHOOLS IN THE ALLENTOWN SCHOOL DISTRICT. IN ADDITION TO SCHOOL-BASED HEALTH CENTERS, SACRED HEART OFFERS A PEDIATRIC PRACTICE TO MEET THE NEEDS OF OUR YOUNGEST CITIZENS. SACRED HEART OFFERS A DENTAL CLINIC TO MEET INCREASED NEED FOR ADULTS AND CHILDREN IN OUR COMMUNITY AS WELL AS AN OB/GYN CLINIC TO MEET THE NEEDS OF WOMEN IN OUR COMMUNITY. THROUGHOUT SACRED HEART HEALTHCARE SYSTEM 262,083 PATIENTS WERE SERVICED FROM JULY 1, 2015 TO JUNE 30, 2016. SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HIGH QUALITY HEALTHCARE TO ALL PEOPLE. WE HAVE RECEIVED RECOGNITION IN MANY DIFFERENT AREAS FOR OUR EXCELLENCE IN HEALTHCARE. A SAMPLE OF THESE AWARDS AND RECOGNITIONS ARE BELOW. SACRED HEART HEALTHCARE SYSTEM IS PROUD TO OFFER RESIDENCIES AND EDUCATIONAL PROGRAMS TO PHYSICIANS AND OTHER HEALTHCARE PROFESSIONALS. WE OFFER THREE RESIDENCY PROGRAMS INCLUDING DENTAL MEDICINE, FAMILY MEDICINE, AND GERIATRIC MEDICINE RESIDENCY PROGRAMS. OUR FAMILY MEDICINE RESIDENCY PROGRAM RECENTLY RECEIVED A 4-YEAR ACCREDITATION BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME). MOSS REHAB- ACUTE REHABILITATION UNIT, HOLDS A THREE-YEAR ACCREDITATION FOR ITS STROKE SPECIALTY INPATIENT REHABILITATION PROGRAM. MOSS REHAB'S STROKE CENTER IS ONE OF SIX EINSTEIN PROGRAMS RECOGNIZED AS CENTERS OF EXCELLENCE. CERTIFIED FOR ACUTE AND REHABILITATION CARE, MOSS REHAB HAS SPECIALTY PROGRAMS IN GAIT AND MOTION ANALYSIS, ROBOTIC-ASSISTED PHYSICAL THERAPY, AND APHASIA. SACRED HEART HOSPITAL HAS BEEN GRANTED PRIMARY STROKE CENTER CERTIFICATION BY THE JOINT COMMISSION. THE JOINT COMMISSION'S CERTIFICATE OF DISTINCTION FOR PRIMARY STROKE CENTERS RECOGNIZES CENTERS THAT MAKE EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE CARE. ACHIEVEMENT OF CERTIFICATION SIGNALS THAT THE SERVICES SACRED HEART HOSPITAL PROVIDES HAVE THE CRITICAL ELEMENTS TO ACHIEVE LONG-TERM SUCCESS IN IMPROVING OUTCOMES. TRANSITIONAL CARE FACILITY (TCF) RECEIVED A "FIVE STAR" RATING BY THE U.S. CENTERS FOR MEDICARE AND MEDICAID SERVICES. TCF WAS ONE OF ONLY TWO FACILITIES IN LEHIGH AND NORTHAMPTON COUNTIES TO RECEIVE THIS HONOR. THE COMMISSION ON CANCER (COC) OF THE AMERICAN COLLEGE OF SURGEONS (ACOS) GRANTED THREE-YEAR APPROVAL WITH COMMENDATION TO THE CENTER FOR CANCER CARE AT SACRED HEART HOSPITAL. THE COC RECOGNIZED THE ONCOLOGY PROGRAM AT SACRED HEART HOSPITAL AS OFFERING HIGH-QUALITY CANCER CARE. ONLY ONE IN FOUR CANCER PROGRAMS AT HOSPITALS ACROSS THE U.S. RECEIVES THIS SPECIAL APPROVAL. IT RECOGNIZES THE QUALITY OF SACRED HEART'S COMPREHENSIVE PATIENT CARE AND OUR COMMITMENT TO PROVIDING PATIENTS WITH ACCESS TO ALL OF THE VARIOUS MEDICAL SPECIALISTS INVOLVED IN DIAGNOSING AND TREATING CANCER. ALL IMAGING MODALITIES AT SACRED HEART HOSPITAL AND SACRED HEART IMAGING NORTHAMPTON HAVE BEEN AWARDED A THREE-YEAR TERM OF ACCREDITATION IN IMAGING BY THE AMERICAN COLLEGE OF RADIOLOGY (ACR). SACRED HEART PHARMACY WAS GRANTED ACCREDITATION FOR HOME INFUSION THERAPY SERVICES FROM THE COMMUNITY HEALTH ACCREDITATION PROGRAM (CHAP). CHAP IS THE LEADER IN COMMUNITY-BASED HEALTHCARE ACCREDITATION SERVICES IN THE U.S. AND IS AN ALTERNATIVE TO THE JOINT COMMISSION. CHAP IS AN INDEPENDENT AND NON-PROFIT ACCREDITING BODY. CHAP'S GOAL IS FOR HOME CARE TO NOT ONLY PROSPER BUT GAIN STRENGTH IN THE OVERALL HEALTHCARE INDUSTRY. THE VASCULAR LABORATORY HAS BEEN ACCREDITED BY THE INTERSOCIETAL COMMISSION FOR THE ACCREDITATION OF VASCULAR LABS (ICAVL) SINCE 1996 AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION. FORM 990, PART III, LINE 4A SACRED HEART HOSPITAL RECEIVED THE GOLD PLUS GET WITH THE GUIDELINES-STROKE ACHIEVEMENT AWARD FOR STROKE RECOGNITION. GET WITH THE GUIDELINES-STROKE HELPS SACRED HEART HOSPITAL'S STAFF DEVELOP AND IMPLEMENT ACUTE AND SECONDARY PREVENTION GUIDELINE PROCESSES TO IMPROVE PATIENT CARE AND OUTCOMES. THE PROGRAM PROVIDES HOSPITALS WITH A WEB BASED PATIENT MANAGEMENT TOOL, BEST PRACTICE DISCHARGE PROTOCOLS AND STANDING ORDERS, ALONG WITH A ROBUST REGISTRY AND REAL-TIME BENCHMARKING CAPABILITIES TO TRACK PERFORMANCE. FORM 990, PART VI, SECTION A, LINE 6 SACRED HEART HEALTHCARE SYSTEM IS THE SOLE MEMBER OF THIS ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A SACRED HEART HEALTHCARE SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. FORM 990, PART VI, SECTION A, LINE 7B AS THE SOLE MEMBER OF THIS ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION IS AN AFFILIATE IN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SACRED HEART HEALTHCARE SYSTEM IS THE PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE IRS. IN ADDITION, THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE ALSO PERFORMED A DETAILED REVIEW OF THE FEDERAL FORM 990 PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS BOARD OF DIRECTORS. SACRED HEART HEALTHCARE SYSTEM BOARD OF DIRECTORS HAS DELEGATED TO THE AUDIT COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S CONTROLLER AND VARIOUS OTHER INDIVIDUALS OF THE SYSTEM TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE. FOLLOWING THE AUDIT COMMITTEE'S REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS ADOPTED A CONFLICT OF INTEREST POLICY WHICH SETS FORTH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND PROCESSES. ANNUALLY, ALL THOSE SERVING THE ORGANIZATION IN A FIDUCIARY CAPACITY, INCLUDING DIRECTORS, OFFICERS AND KEY EMPLOYEES RECEIVE A COPY OF THE POLICY AND ANNUAL DISCLOSURE STATEMENTS TO BE COMPLETED. IN ACCORDANCE WITH THE POLICY, THOSE DISCLOSURES ARE REVIEWED AND CONSIDERED BY THE ORGANIZATION'S PRESIDENT AND CEO AND, AS APPROPRIATE, THE BOARD OF DIRECTORS. AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POSSIBLE CONFLICT OF INTEREST. AFTER EXERCISING ANY REASONABLE DUE DILIGENCE REQUIRED BY THE CIRCUMSTANCES, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER SACRED HEART CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE IN GOOD FAITH BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN SACRED HEART'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SACRED HEART AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. THE INTERESTED DIRECTOR OR COMMITTEE MEMBER SHALL NOT VOTE REGARDING THE DECISION OF WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. IF THE BOARD OF TRUSTEES OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT AN INTERESTED PERSON HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE INTERESTED PERSON OF THE BASIS FOR SUCH BELIEF AND AFFORD THE INTERESTED PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE OF THE INTERESTED PERSON AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OF TRUSTEES OR COMMITTEE DETERMINES THAT THE INTERESTED PERSON HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 ON AN ANNUAL BASIS THE HUMAN RESOURCES DEPARTMENT OF THE ORGANIZATION PROVIDES THE BOARD WITH COMPENSATION MARKET DATA TO REVIEW AND CONSIDER WITH RESPECT TO ALL KEY EMPLOYEES AND OFFICERS OF THE ORGANIZATION. THE BOARD REVIEWS THE MARKET DATA, APPROVES ANY SALARY ADJUSTMENTS FOR THE EXECUTIVE POPULATION, CONSIDERS BOTH REASONABLENESS AND EFFECTIVENESS OF ALL REMUNERATIVE PROGRAMS AND ESTABLISHES THE DETAILED PERFORMANCE EXPECTATIONS WHICH ARE INCORPORATED INTO THE ORGANIZATION'S INCENTIVE PLANS. ALL OF THESE DISCUSSIONS ARE DOCUMENTED THROUGH THE PROVISION OF MEETING MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA. GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 6,798,114. MANAGEMENT AND GENERAL EXPENSES 2,035,326. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 8,833,440. CONTRACTED PHARMACY SERVICES: PROGRAM SERVICE EXPENSES 1,447,757. MANAGEMENT AND GENERAL EXPENSES 636. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,448,393. DIETARY ADMIN FEES: PROGRAM SERVICE EXPENSES 1,689,137. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,689,137. COLLECTION FEES: PROGRAM SERVICE EXPENSES 20,237. MANAGEMENT AND GENERAL EXPENSES 533,208. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 553,445. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 5,537,646. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,537,646. FORM 990, PART XI, LINE 9: TRANSFER TO AFFILIATES -10,635,774. CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST -788,272. TRANSFER FROM AFFILIATES 648,495. SACRED HEART HEALTHCARE SYSTEM 421 W CHEW STREET ALLENTOWN PA 18102 232328297 HEALTH SERVICES PA 501(C)(3) LINE 11C, III-FI N/A 0 SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN PA 18102 232328300 MANAGEMENT SERVICES PA 501(C)(3) LINE 7 SACRED HEART HEALTHCARE SYSTEM 0 SACRED HEART REALTY CORPORATION 421 W CHEW STREET ALLENTOWN PA 18102 232384986 TITLE HOLDING CORPORATION PA 501(C)(2) N/A SACRED HEART HEALTHCARE SYSTEM 0 SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN PA 18102 232384987 HEALTH SERVICES PA N/A C 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0