2017-05-12T13:23:25-05:00 2016-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2015-07-01 251778658 PINNACLE HEALTH SYSTEM PINN 7172318245 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 WILLIAM H PUGH CFO 7172318245 2017-05-11 1 JULIUS GREEN CPA P00350393 7178467000 2015 2021-01-29 14:40:06Z X WILLIAM H PUGH 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 348467792 0 X WWW.PINNACLEHEALTH.ORG X 1995 PA PROVIDE MANAGEMENT AND CONSULTATIVE SERVICES TO AFFILIATED TAX-EXEMPT ENTITIES. 20 16 584 107 0 0 0 0 89648601 99323593 5437080 14016857 211979 0 95297660 113340450 0 0 0 0 55389981 54909961 0 0 0 35700830 45541985 91090811 100451946 4206849 12888504 245697349 259340325 13089480 15977524 232607869 243362801 X PINNACLE HEALTH SYSTEM IS ENGAGED IN AND CONDUCTS CHARITABLE, EDUCATIONAL, AND SCIENTIFIC ACTIVITIES THROUGH THE SUPPORT AND BENEFIT OF PINNACLE HEALTH FOUNDATION, AND PROVIDES MANAGEMENT AND CONSULTATIVE SERVICES TO AFFILIATED ENTITIES THAT QUALIFY FOR FEDERAL INCOME TAX EXEMPTION UNDER CODE SECTION 501(C)(3). 0 0 81383991 0 99323593 PINNACLE HEALTH SYSTEM IS DEDICATED TO THE HEALTH AND WELL-BEING OF THE PEOPLE WE SERVE AND MAKES A CONCERTED EFFORT TO ESTABLISH ENDURING BONDS BETWEEN THE HEALTH SYSTEM AND THE COMMUNITY. PINNACLE HEALTH SYSTEM OFFERS AN ARRAY OF COMMUNITY SERVICES AND PROGRAMS TO IMPROVE HEALTH AWARENESS AMONG COMMUNITY GROUPS AND ORGANIZATIONS, PROVIDES OPTIMAL AND TIMELY CARE AND TREATMENT FOR TARGET POPULATIONS AND ADDRESSES DIVERSE COMMUNITY NEEDS. PINNACLE HEALTH PROVIDES VARIOUS TRAINING PROGRAMS AND TRACKS AND EVALUATES THE IMPACT OF ITS SERVICES AND PROGRAMS ON THE OVERALL HEALTH OF THE COMMUNITY. 81383991 1 0 0 1 0 0 0 0 0 0 1 1 0 1 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 394 0 1 584 1 0 1 BD 0 0 0 0 0 0 0 0 0 X 20 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X WILLIAM H PUGH CFO 7172318245 409 SOUTH SECOND STREET HARRISBURG PA 17104 GEORGE F GRODE CHAIR 0.20 0.30 X X 0 0 0 FELIX GUTIERREZ MD DIRECTOR 0.10 39.90 X 0 512226 37924 DEBORAH S MILLER DIRECTOR 0.30 0.40 X 0 0 0 DENNIS WALSH DIRECTOR 0.10 0.20 X 0 0 0 BONY R DAWOOD DIRECTOR 0.30 0.40 X 0 0 0 STEVEN C KUSIC DIRECTOR 0.40 0.50 X 0 0 0 KENNETH OKEN MD DIRECTOR 0.30 0.50 X 0 76400 0 MICHAEL L FERNANDEZ MD DIRECTOR 0.20 0.30 X 0 0 0 JOHN C HICKEY DIRECTOR 0.30 0.50 X 0 0 0 CAROLYN KREAMER PHD DIRECTOR 0.20 0.40 X 0 0 0 MICHAEL A YOUNG PRESIDENT & CEO 24.00 16.00 X X 1330867 0 27853 CLARENCE ASBURY VICE CHAIR 0.10 0.30 X X 0 0 0 ROGER LEVIN MD DIRECTOR 0.40 0.50 X 0 0 0 CYNTHIA TOLSMA DIRECTOR 0.40 0.50 X 0 0 0 E GERALD WOODWARD MD DIRECTOR 0.10 0.30 X 0 0 0 BARRY KAIN DIRECTOR 0.10 0.20 X 0 0 0 DANIEL KAMBIC DO DIRECTOR/DIR., MED. EDUCAT 0.20 39.80 X 0 138965 25672 MICHAEL MURCHIE DIRECTOR 0.10 0.30 X 0 0 0 DOUG NEIDICH DIRECTOR 0.40 0.50 X 0 0 0 HAROLD YANG MD DIRECTOR 1.00 0.20 X 0 0 0 WILLIAM H PUGH TREASURER/SR VP CORP FIN./CFO 16.00 24.00 X 746821 0 23704 CHRISTOPHER P MARKLEY ESQ SEC'Y/SR VP STAT SVCS/GEN COUNSEL 12.00 28.00 X 501066 0 31109 JOHN DELORENZO ASSISTANT SECRETARY 2.00 38.00 X 175374 0 24851 PHILIP GUARNESCHELLI SR VICE PRESIDENT/COO 4.00 36.00 X 742475 0 34378 NIRMAL JOSHI MD SR VP, MEDICAL AFFAIRS 36.00 4.00 X 688347 0 38958 GEORGE BEAUREGARD SR VP AND CHIEF CLINIC (RESIGNED) 40.00 X 694443 0 31498 DEBORAH CANCILLA CHIEF INFORMATION OFFICER 40.00 X 687367 0 15829 JOHN GOLDMAN MD PHYSICIAN 40.00 X 447107 0 37903 ANN GORMLEY SENIOR VP HUMAN RESOURCES 40.00 X 367935 0 34714 6381802 727591 364393 53 0 1 0 JONES DAY 51 LOUISIANA AVENUE WASHINGTON DC 20001 LEGAL SERVICES 6830649 FTI CONSULTING INC PO BOX 418005 BOSTON MA 02241 CONSULTING SERVICES 1546605 PRICEWATERHOUSE COOPERS LLP 2 NORTH SECOND ST HARRISBURG PA 17101 AUDITING AND CONSULTING SERVICES 1059887 ECONOMISTS INCORPORATED 2121 K STREET NW WASHINGTON DC 20037 CONSULTING SERVICES 899999 WAYPOINT CONSULTING LLC 1450 E BOOT RD WEST CHESTER PA 19380 CONSULTING SERVICES 601936 24 MANAGEMENT & SUPPORT 624100 99323593 99323593 99323593 3636950 3636950 245507249 235126478 864 10380771 -864 10379907 10379907 113340450 99323593 0 14016857 X 3474304 3474304 30313723 25256207 5057516 2386304 1467412 918892 16238869 9775543 6463326 2496761 1872571 624190 1143206 1143206 437620 437620 20803 20803 158000 158000 18595047 18002277 592770 2748258 2748258 6665563 6665563 3022379 3022379 1534888 1534888 249867 249867 714265 714265 50473 50473 770261 770261 8344170 8344170 DUES AND SUBSCRIPTIONS 909457 909457 MANAGEMENT & SUPPORT 177328 177328 CONTRIBUTIONS 400 400 100451946 81383991 19067955 0 150 200 29560418 36821045 115504 131871 485020 654905 3943 4114410 5042765 11458802 9995759 1926298 1463043 105270444 126800215 50813483 40211859 -28824075 -49475829 82235697 97686308 245697349 259340325 12689480 15977524 400000 13089480 15977524 X 232607869 243362801 232607869 243362801 245697349 259340325 X 12888504 -10549960 8416388 X 0 1 X 1 0 X X 3 PINNACLE HEALTH HOSPITALS 251778644 3 0 0 0 PINNACLE HEALTH MEDICAL SERVICES 251709054 3 0 0 0 COMMUNITY LIFE TEAM 231890444 9 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FORM 990 SCHEDULE A, PART I FORM 990, SCH A, PART I, LINE 1H, COLUMN (IV) LISTED ORGANIZATIONS: THE GOVERNING DOCUMENTS OF PINNACLE HEALTH SYSTEM DO NOT SPECIFICALLY NAME THE ORGANIZATIONS TO WHICH SUPPORT IS PROVIDED; HOWEVER, IT DOES MEET THE REQUIREMENTS OF SECTION 509(A)-4(D)(2)(I) BY DESIGNATING ITS PUBLICLY SUPPORTED ORGANIZATIONS TO BE ANY OTHER ORGANIZATION AFFILIATED WITH THE CORPORATION WHICH QUALIFIES AS AN EXEMPT ORGANIZATION UNDER SECTIONS 501(C)(3), 509(A)(1), OR 509(A)(2). FORM 990, SCHEDULE A, PART I, LINE 1H, COLUMN (VII) - AMOUNT OF SUPPORT: PINNACLE HEALTH SYSTEM DOES NOT PROVIDE MONETARY SUPPORT TO ITS SUPPORTED ORGANIZATIONS, EXCEPT AMOUNTS WHICH MAY BE SPECIFICALLY DESIGNATED AS CONTRIBUTIONS PER SCHEDULE IX, FUNCTIONAL EXPENSES. SUPPORT IS PROVIDED IN THE FORM OF MANAGEMENT AND CONSULTATIVE SERVICES TO ITS AFFILIATED ORGANIZATIONS. SCHEDULE A, PART IV, LINE 1: THE FILING ORGANIZATION IS THE PARENT OF ORGANIZATIONS WHICH ARE RELATED BY BOTH A COMMON MANAGEMENT TEAM AND COMMON BOARD MEMBERS. HISTORICALLY AND OPERATIONALLY, THE FILING ORGANIZATION SUPPORTS ITS SUPPORTED ORGANIZATIONS THROUGH MANAGEMENT AND CONSULTING SERVICES. SECTION C, LINE 1: THERE ARE COMMON BOARD DIRECTORS FOR EACH SUPPORTED ORGANIZATION. HOWEVER, THE NUMBER OF SUPPORTING ORGANIZATION BOARD DIRECTORS ARE NOT NECESSARILY A MAJORITY OF THE SUPPORTED ORGANIZATIONS' BOARDS. A COMMON MANAGEMENT TEAM HAS OPERATIONAL CONTROL OVER ALL RELATED ORGANIZATIONS WHICH ALLOWS THE SUPPORTING ORGANIZATION TO SUPPORT ITS SUPPORTED ORGANIZATIONS. X 20803 20803 20803 20803 100431143 925273680 100451946 925294483 1000000 1000000 250000 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 128333 112345 67631 20803 329112 250000 250000 250000 250000 1000000 1500000 63808 43821 19987 5362577 4457217 905360 6032417 5494721 537696 1463043 INVESTMENT IN UNITED HEALTH RISK, LTD. 14698852 C INVESTMENT IN UNITED CENTRAL PA RECIPROCAL RISK RETENTION GROUP 9991478 C INVESTMENT IN JC BLAIR 3132854 C FOREIGN INVESTMENTS 12388675 C 40211859 DUE FROM RELATED PARTIES 94575613 SUSPENSE ACCOUNT PAYROLL 1 EMS ADVANCE 175000 NOTE REC. LT - JC BLAIR 2935694 97686308 X 110047999 -10549960 7257509 -3292451 113340450 0 113340450 99293067 0 99293067 1158879 1158879 100451946 PART X, LINE 2: THE SYSTEM EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. INCREASES TO EXPENSES OF $356 AND $780 WERE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDED JUNE 30, 2016 AND JUNE 30, 2015, RESPECTIVELY. PART XI, LINE 2D - OTHER ADJUSTMENTS: INTERCOMPANY TRANSFERS 30,795,595. EQUITY METHOD INCOME - INSURANCE SUB FILING FORM 1120-PC (EIN#13-4224033) 1,284,442. EQUITY METHOD INCOME - FOREIGN SUB FILING FORM 5471 104,592. EQUITY METHOD INCOME - PINNACLE HEALTH CARDIOVASCULAR INSTITUTE -20,075,170. EQUITY METHOD INCOME - PINNACLE HEALTH VENTURES -585,317. EQUITY METHOD INCOME - RHACO -2,229,136. EQUITY METHOD INCOME - JC BLAIR -878,618. INVESTMENT FEES -981,551. NEGATIVE REVENUE RECLASSED TO EXPENSES -177,328. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 981,551. NEGATIVE REVENUE RECLASSED TO EXPENSES 177,328. CENTRAL AMERICA AND THE CARIBBEAN - 1 0 CAPTIVE INSURANCE N/A 18460210 NORTH AMERICA 0 0 INVESTMENTS 6154739 1 0 0 0 1 0 24614949 0 24614949 0 0 1 0 0 0 PART I, LINE 3: INSURANCE PREMIUMS PAID BASED ON CLAIMS EXPERIENCE X X 1 1 X X X X 1 1 0 0 0 0 0 1 0 FELIX GUTIERREZ MD DIRECTOR 0 411117 0 87239 0 13870 0 25000 0 12924 0 550150 0 0 MICHAEL A YOUNG PRESIDENT & CEO 829767 0 318520 0 182580 0 13250 0 14603 0 1358720 0 0 0 DANIEL KAMBIC DO DIRECTOR/DIR., MED. EDUCAT 0 138628 0 0 0 337 0 7229 0 18443 0 164637 0 0 WILLIAM H PUGH TREASURER/SR VP CORP FIN./CFO 516005 0 151972 0 78844 0 15900 0 7804 0 770525 0 0 0 CHRISTOPHER P MARKLEY ESQ SEC'Y/SR VP STAT SVCS/GEN COUNSEL 325199 0 96656 0 79211 0 15900 0 15209 0 532175 0 0 0 JOHN DELORENZO ASSISTANT SECRETARY 147205 0 27494 0 675 0 7610 0 17241 0 200225 0 0 0 PHILIP GUARNESCHELLI SR VICE PRESIDENT/COO 484466 0 147839 0 110170 0 15900 0 18478 0 776853 0 0 0 NIRMAL JOSHI MD SR VP, MEDICAL AFFAIRS 471847 0 143882 0 72618 0 15900 0 23058 0 727305 0 0 0 GEORGE BEAUREGARD SR VP AND CHIEF CLINIC (RESIGNED) 367382 0 134461 0 192600 0 13250 0 18248 0 725941 0 0 0 DEBORAH CANCILLA CHIEF INFORMATION OFFICER 480049 0 137114 0 70204 0 7722 0 8107 0 703196 0 0 0 JOHN GOLDMAN MD PHYSICIAN 307102 0 64144 0 75861 0 14960 0 22943 0 485010 0 0 0 ANN GORMLEY SENIOR VP HUMAN RESOURCES 255692 0 72338 0 39905 0 15760 0 18954 0 402649 0 0 0 PART I, LINE 1A THE ORGANIZATION PAYS FOR THE CEO'S CLUB DUES, WHICH ARE REPORTABLE AS TAXABLE COMPENSATION FOR THE CEO. THE CEO'S SPOUSE ACCOMPANIED THE CEO ON INFREQUENT TRIPS WHERE THE PRESENCE OF THE SPOUSE WAS EXPECTED. RELATED COSTS WERE MINIMAL AND WERE NOT INCLUDED IN THE CEO'S COMPENSATION. PART I, LINE 1B THERE IS A WRITTEN POLICY REGARDING THE PAYMENT OF CLUB DUES, HOWEVER, THERE IS NO WRITTEN POLICY REGARDING COMPANION TRAVEL. THE INFREQUENCY OF THE TRAVEL AND THE DE MINIMIS COSTS ASSOCIATED WITH THE ACTIVITY WERE DEEMED NOT TO RISE TO THE LEVEL WHERE A WRITTEN POLICY IS CONSIDERED NECESSARY. PART I, LINES 4A-B LINE 4A: GEORGE BEAUREGARD RECEIVED SEVERANCE IN THE AMOUNT OF $131,163 AFTER HIS DEPARTURE. LINE 4B: MICHAEL YOUNG PARTICIPATES IN A SPLIT INTEREST LIFE INSURANCE POLICY WHEREBY THE ORGANIZATION PAYS THE PREMIUMS AND MR. YOUNG REPORTS THE PREMIUMS AS OTHER REPORTABLE COMPENSATION. UPON MR. YOUNG'S DEATH, THE ORGANIZATION WILL RECOVER ITS PREMIUMS BEFORE ANY PROCEEDS ARE RELEASED TO THE BENEFICIARIES. PART I, LINE 7 THE COMPENSATION COMMITTEE OF THE BOARD, WITH ASSISTANCE FROM AN INDEPENDENT OUTSIDE ADVISOR, ESTABLISHES A COMPENSATION PHILOSOPHY TO COMPENSATE LEADERS OF THE ORGANIZATION AT THE MARKET MEDIAN WITH AN INCENTIVE OPPORTUNITY TO REACH THE 75TH PERCENTILE OF THE MARKET FOR THEIR POSITION. THE INCENTIVE OPPORTUNITY IS DIVIDED BETWEEN PERSONAL GOALS AND SYSTEM LEVEL GOALS. ALL GOALS ARE MEASURABLE AND ARE DESIGNED TO IMPROVE QUALITY OF CARE, PATIENT SAFETY, PATIENT EXPERIENCE, AND MANAGEMENT OF RESOURCES. PERFORMANCE IS REWARDED AT THREE LEVELS; THRESHOLD (IMPROVEMENT OVER THE BASELINE), TARGET (SIGNIFICANT IMPROVEMENT OVER THE PRIOR YEAR) AND OPTIMUM (STRETCH). MICHAEL A YOUNG PRESIDENT SPLIT DOLLAR INSURANCE PREMIUM ARRANGEMENT X 400000 654905 0 1 1 654905 FORM 990, PART V, LINE 1: PINNACLE HEALTH SYSTEM, THE PARENT COMPANY, IS THE COMMON REPORTING AGENT FOR THE GROUP OF RELATED TAX-EXEMPT ORGANIZATIONS AND FILES ALL 1099 FORMS FOR THE FOLLOWING: COMMUNITY LIFE TEAM, PINNACLE HEALTH FOUNDATION, PINNACLE HEALTH HOSPITALS, AND PINNACLE HEALTH MEDICAL SERVICES. FORM 990, PART VI, SECTION B, LINE 11 THE AUTHORITY AND RESPONSIBILITY FOR REVIEW OF THE FORM 990 FOR PINNACLE HEALTH SYSTEM AND ASSOCIATED SUBSIDIARIES IS DELEGATED TO THE FINANCE AND AUDIT COMMITTEE OF THE SYSTEM BOARD. IN ORDER TO ACCOMPLISH THIS, ALL MEMBERS OF THE FINANCE AND AUDIT COMMITTEE ARE PROVIDED WITH A REASONABLE OPPORTUNITY TO REVIEW AND COMMENT TO EXECUTIVE LEADERSHIP ON THE IRS FORMS 990 OF THE PINNACLE HEALTH SYSTEM AND ITS SUBSIDIARIES, INCLUDING PINNACLE HEALTH HOSPITALS, PINNACLE HEALTH MEDICAL SERVICES, PINNACLE HEALTH FOUNDATION, AND COMMUNITY LIFE TEAM BEFORE THE RETURNS ARE FILED WITH THE INTERNAL REVENUE SERVICE. IN ADDITION, EACH MEMBER OF THE RESPECTIVE BOARDS OF DIRECTORS WILL BE GIVEN ACCESS TO VIEW HIS OR HER ENTITY'S INDIVIDUAL FORM 990 VIA A SHARED, PASSWORD-PROTECTED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C IN THE PERFORMANCE OF THEIR DUTIES TO PINNACLE HEALTH SYSTEM AND SUBSIDIARIES (COLLECTIVELY REFERRED TO AS "PHS"), COVERED PERSONS SHALL SEEK TO ACT IN THE BEST INTERESTS OF PHS, AND SHALL EXERCISE GOOD FAITH, LOYALTY, DILIGENCE AND HONESTY. A COVERED PERSON IS ANY INDIVIDUAL WHO SERVES IN A FIDUCIARY CAPACITY TO, OR WHO HAS LEGAL AUTHORITY TO REPRESENT OR OBLIGATE, THE PINNACLE HEALTH SYSTEM OR ANY OF ITS AFFILIATED ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO, DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS. COVERED PERSONS ALSO INCLUDE A) IMMEDIATE FAMILIES (SPOUSES, CHILDREN, SIBLINGS, PARENTS, OR SPOUSE'S PARENTS), B) ANY ORGANIZATION IN WHICH THEY OR THEIR IMMEDIATE FAMILIES DIRECTLY OR INDIRECTLY I) HAVE A MATERIAL FINANCIAL OR BENEFICIAL INTEREST, OR II) SERVE AS A DIRECTOR, OFFICER, EMPLOYEE, AGENT, ATTORNEY OR SIMILAR CAPACITY. A COVERED PERSON SHALL DISCLOSE ANY BUSINESS OR PERSONAL INTERESTS OR RELATIONSHIPS WHICH MAY BE IN CONFLICT WITH THE INTEREST OF PHS, INCLUDING, BUT NOT LIMITED TO (A) ENGAGING IN OR SEEKING TO BE ENGAGED IN (I) THE DELIVERY OF HEALTH CARE SERVICES OR (II) THE DELIVERY OF GOODS OR SERVICES TO PHS, OR (B) ANY TRANSACTION OR ARRANGEMENT WITH PHS WHICH WOULD RESULT IN BENEFIT TO COVERED PERSONS. THE GOVERNANCE COMMITTEE OF THE PHS BOARD REVIEWS ALL CONFLICT OF INTEREST STATEMENTS ANNUALLY AND DETERMINES WHETHER EACH DIRECTOR ON THE BOARD IS INDEPENDENT. COVERED PERSONS WHO ARE DIRECTORS MUST COMPLY WITH THE PINNACLE HEALTH SYSTEM GUIDELINES FOR DETERMINING DIRECTOR INDEPENDENCE AND APPLYING DIRECTOR INDEPENDENCE REQUIREMENTS. COVERED PERSONS WITH A CONFLICT OF INTEREST SHALL NOT VOTE ON THE MATTER, AND THE PHS BOARD OR COMMITTEE MUST APPROVE, AUTHORIZE, OR RATIFY THE TRANSACTION OR ARRANGEMENT BY A MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS OR COMMITTEE MEMBERS PRESENT AT A MEETING THAT HAS A QUORUM. VIOLATIONS OF THIS STATEMENT OF POLICY MAY SUBJECT COVERED PERSONS TO APPROPRIATE SANCTIONS, INCLUDING REMOVAL FROM THEIR POSITIONS WITH PHS. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE PINNACLE HEALTH SYSTEM ("PHS") BOARD OF DIRECTORS HAS THE AUTHORITY TO DEVELOP AND MAINTAIN EXECUTIVE AND PHYSICIAN COMPENSATION TO BE APPROVED BY THE PINNACLE HEALTH SYSTEM BOARD. THE COMPENSATION COMMITTEE WILL FOLLOW A DILIGENT PROCESS THAT MEETS REGULATORY REQUIREMENTS FOR A REBUTTABLE PRESUMPTION OF REASONABLENESS AND PROMOTES EFFECTIVE GOVERNANCE OF EXECUTIVE COMPENSATION, CONSISTENT WITH THE PHS COMPENSATION PHILOSOPHY. 1. FOLLOW A PROCESS THAT ESTABLISHES AND MAINTAINS A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR ALL EXECUTIVES AND PHYSICIANS POTENTIALLY SUBJECT TO INTERMEDIATE SANCTIONS. 2. PREPARE MINUTES FOR EACH MEETING TO RECORD THE TERMS OF THE COMMITTEE'S DECISIONS AND THE PROCESS FOLLOWED IN REACHING THOSE DECISIONS. THESE MINUTES MUST INCLUDE INDICATIONS THAT THE COMMITTEE IS FOLLOWING GOOD PRACTICES IN DEALING WITH CONFLICTS OF INTEREST AND IN OBTAINING AND RELYING ON APPROPRIATE COMPARABILITY DATA ON TOTAL COMPENSATION. 3. SELECT AND DIRECTLY ENGAGE AND SUPERVISE ANY CONSULTANT HIRED BY PHS TO ADVISE THE COMMITTEE ON EXECUTIVE AND PHYSICIAN COMPENSATION. 4. PERIODICALLY EVALUATE THE APPROPRIATENESS OF THIS CHARTER AND THE EFFECTIVENESS OF THE PROCESS THE COMMITTEE USES IN GOVERNING EXECUTIVE AND PHYSICIAN COMPENSATION AND REPORT THIS EVALUATION TO THE BOARD. 5. PROVIDE THE BOARD WITH AN ANNUAL REPORT ON THE COMMITTEE'S ACTIONS. 6. MONITOR CHANGES IN LAWS AND REGULATIONS PERTAINING TO EXECUTIVE COMPENSATION AND BENEFITS TO SEE THAT PHS COMPLIES WITH THEM. 7. SEEK OUTSIDE REVIEW OF COMMITTEE OPERATIONS TO ENSURE COMPLIANCE WITH THE IRS REBUTTABLE PRESUMPTION OF REASONABLENESS. 8. REVIEW ACTUAL EXECUTIVE COMPENSATION AND BENEFITS PROVIDED TO CONFIRM CONSISTENCY WITH COMPENSATION AND BENEFITS APPROVED BY THE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. THE ORGANIZATION INCLUDES A COPY OF ITS FINANCIAL STATEMENTS WITH THE STATE REGISTRATION FILED WITH THE PENNSYLVANIA DEPARTMENT OF STATE, BUREAU OF CHARITABLE ORGANIZATIONS. THESE DOCUMENTS ARE A MATTER OF PUBLIC RECORD AND CAN BE VIEWED AT THE BUREAU OFFICE. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 15,752,577. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 15,752,577. CONSULTING: PROGRAM SERVICE EXPENSES 2,142,950. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,142,950. PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 106,750. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 106,750. RECRUITING FEES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 592,770. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 592,770. FORM 990, PART XI, LINE 9: EQUITY METHOD INCOME - INSURANCE SUB FILING FORM 1120-PC (EIN#13-4224033) 1,284,442. EQUITY METHOD INCOME - UNITED HEALTH RISK LTD 104,592. EQUITY METHOD INCOME - PINNACLE HEALTH CARDIOVASCULAR INSTITUTE -20,075,170. EQUITY METHOD INCOME - PINNACLE HEALTH VENTURES INC. -585,317. INTERCOMPANY TRANSFERS 30,795,595. EQUITY METHOD INCOME - RHACO -2,229,136. EQUITY METHOD INCOME- JC BLAIR -878,618. PINNACLE HEALTH MEDICAL SERVICES 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251709054 PHYSICIAN SERVICES PA 501(C)(3) LINE 3 PINNACLE HEALTH SYSTEM 1 PINNACLE HEALTH HOSPITALS 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251778644 INPATIENT AND OUTPATIENT HEALTHCARE SERVICES PA 501(C)(3) LINE 3 PINNACLE HEALTH SYSTEM 1 PINNACLE HEALTH FOUNDATION 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 222691718 INVESTMENT AND FUNDRAISING ACTIVITIES FOR RELATED TAX-EXEMPT ORGANIZATIONS PA 501(C)(3) LINE 11B, II PINNACLE HEALTH SYSTEM 1 COMMUNITY LIFE TEAM 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 231890444 MEDICAL TRANSPORT SERVICES PA 501(C)(3) LINE 9 PINNACLE HEALTH SYSTEM 1 WEST SHORE SURGERY CENTER LTD 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251821415 SURGICAL CARE - MEDICAL SERVICES PA N/A RIVER HEALTH ACO LLC 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 462567488 MEDICAL SERVICES PA N/A SUSQUEHANNA VALLEY SURGICAL CENTER 4310 LONDONDERRY ROAD SUITE 1 HARRISBURG PA 17109 251847818 SURGICAL CARE - MEDICAL SERVICES PA N/A UNITED CENTRAL PA RISK RETENTION GROUP 76 ST PAUL ST SUITE 500 BURLINGTON VT 054014477 134224033 CAPTIVE INSURANCE VT N/A C 112912 21341624 1.00000 1 UNITED HEALTH RISK LTD PO BOX 2450 HAMILTON HM JX BD CAPTIVE INSURANCE BD N/A C 902802 18460210 1.00000 1 PINNACLE HEALTH CARDIOVASCULAR INSTITUTE PO BOX 8700 HARRISBURG PA 17105 320321362 PHYSICIAN SERVICES PA PINNACLE HEALTH SYSTEM C -19605545 12931036 1.00000 1 PINNACLE HEALTH VENTURES INC PO BOX 8700 HARRISBURG PA 17105 611677624 HOLDING COMPANY PA PINNACLE HEALTH SYSTEM C 28573339 1.00000 1 PINNACLE HEALTH IMAGING INC PO BOX 8700 HARRISBURG PA 17105 231718571 IMAGING SERVICES PA PINNACLE HEALTH VENTURES INC C 35858023 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 PINNACLE HEALTH CARDIOVASCULAR INSTITUTE R 1322424 COST PINNACLE HEALTH IMAGING R 7027308 COST COMMUNITY LIFE TEAM R 312044 COST PINNACLE HEALTH MEDICAL SERVICES R 9116588 COST PINNACLE HEALTH HOSPITALS R 3787955 COST PINNACLE HEALTH IMAGING S 7380563 COST PINNACLE HEALTH HOSPITALS S 2265387 COST PINNACLE HEALTH CARDIOVASCULAR INSTITUTE S 20757949 COST PART V, LINE 2 PINNACLE HEALTH SYSTEM CANNOT SEPARATELY STATE AMOUNTS FOR EACH TRANSACTION IDENTIFIED WITH A RELATED ORGANIZATION. ITS ACCOUNTING SYSTEM NETS ALL TRANSACTIONS INTO A SINGLE AMOUNT, WHICH IS REPORTED AS A GIFT, GRANT AND/OR CAPITAL CONTRIBUTION TO OR FROM RELATED ORGANIZATIONS. PINNACLE HEALTH SYSTEM 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251778658 X 0 20803 20803 100431143 100451946 1000000 250000 0 0 0 PINNACLE HEALTH HOSPITALS 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251778644 0 0 0 791567199 791567199 1000000 250000 0 0 0 PINNACLE HEALTH MEDICAL SERVICES 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251709054 0 0 0 124129090 124129090 1000000 250000 0 0 0 PINNACLE HEALTH FOUNDATION 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 222691718 0 0 0 1514643 1514643 225732 56433 0 0 0 COMMUNITY LIFE TEAM 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 231890444 0 0 0 8062748 8062748 553137 138284 0 0 0