2016-11-06T14:31:15-06:00 2015-12-31 ERNST & YOUNG US LLP 4370 LA JOLLA VILLAGE DR STE 500 SAN DIEGO CA 92122 990 2015-01-01 942988520 SUTTER COAST HOSPITAL % CARLA WHITE-SNYDER SUTT 9162866665 C/O SH TAX 2200 RIVER PLAZA DRIVE SACRAMENTO CA 95833 GARY HUBSCHMAN CFO 2016-10-31 true DEBRA HEISKALA P00649485 8585357200 2015 2017-02-10 21:41:12Z X MITCH HANNA 800 E WASHINGTON BLVD CRESCENT CITY CA 95531 68247775 false X WWW.SUTTERHEALTH.ORG X 1985 CA SEE SCHEDULE O 10 8 503 24 0 46495 97419 70382538 68097116 34993 53240 0 0 70464026 68247775 39475 31311 0 0 30305682 31869051 0 0 0 29309689 33503307 59654846 65403669 10809180 2844106 37818798 30545953 20514833 21197124 17303965 9348829 X SEE SCHEDULE O false false 57588289 31311 68097116 SEE SCHEDULE O 57588289 true false false false false false false false false false true false false true true true false true false false false false false false false false true true false false true true false false false false false false false false false false false false false false false true true true false false true 70 0 true 503 true false false false false false false false false false false X 10 8 false false false false true true true true true false false true true true true true true true true false CA X CARLA WHITE-SNYDER 9162979847 9100 FOOTHILLS BLVD Roseville CA 95747 MOSH ARSHI DDS TRUSTEE, SECRETARY 1.0 0.0 X X 0 0 0 MIKE COHILL REGIONAL PRESIDENT, WEST BAY 1.0 40.0 X 0 2216045 347542 SCOTT FELLER TRUSTEE 1.0 0.0 X 0 0 0 KEN HALL TRUSTEE, CHAIR 1.0 0.0 X X 0 0 0 MITCH HANNA CEO, COAST 40.0 0.0 X X 0 625418 126969 JOHN JACOBSEN DVM TRUSTEE, VICE-CHAIR 1.0 0.0 X X 0 0 0 TOM POLIDORE MD TRUSTEE, COS 1.0 0.0 X 0 0 0 Warren Rehwaldt MD Trustee, CHAIR FIN & PLANNING 1.0 0.0 X X 0 0 0 TERESA MCCUNE OOSTRA TRUSTEE 1.0 0.0 X 0 0 0 DAVID ITZEN TRUSTEE 1.0 0.0 X 0 0 0 JOHN GATES CFO, EAST & WEST REGION(PT YR) 1.0 40.0 X 0 967966 183142 GARY HUBSCHMAN CFO (PART YEAR) 1.0 40.0 X 0 345248 55000 Rose Corcoran CNE SCH 40.0 0.0 X 0 294198 60734 JEREMY DAVIS Associate Administrator 40.0 0.0 X 130571 0 34947 Christopher Cutter Physician 40.0 0.0 X 170049 0 32057 Nabil Elkhoury Physician 40.0 0.0 X 473338 0 24393 Alexander Leighton Physician 40.0 0.0 X 212744 0 42063 Petre Motiu Physician 40.0 0.0 X 322564 0 39502 JASON FULROTH PHYSICIAN 40.0 0.0 X 184413 0 28415 1493679 4448875 974764 57 false true false StaffAssist Workforce 62373 Collection Ctr Dr CHICAGO IL 60693 Staffing Services 2139887 Weatherby Locums Inc PO Box 972633 DALLAS TX 753972633 Physician Services 1343402 SOUND INPATIENT PHYSICIANS 1123 PACIFIC AVENUE TACOMA WA 98402 PHYSICIAN SERVICES 1271985 MEDICAL SOLUTIONS LLC 1010 NO 102ND ST STE 300 OMAHA NE 68114 CONSULTING SERVICES 846935 WILLIAM MICHAEL STEMLER PO BOX 1147 STOCKTON CA 952011147 CONSULTING SERVICES 514244 19 97419 97419 PATIENT SERVICE REVENUE 621110 68027654 68027654 RENTAL TO AFFILIATES 900099 69462 69462 68097116 47166 47166 0 0 0 0 0 6074 6074 6074 6074 0 0 0 0 68247775 68097116 53240 X 31311 31311 0 0 0 1272837 1272837 0 18575154 17267752 1307402 1332288 1159091 173197 8825730 7678385 1147345 1863042 1620847 242195 344949 344949 73210 73210 7435 7435 0 0 33082 33082 7883646 7784469 99177 159336 159336 1501509 1345588 155921 2783771 2783771 0 1091142 1091142 131296 105037 26259 0 29024 17564 11460 508283 508283 0 2812818 2812818 753445 683406 70039 MEDICAL SUPPLIES 5632771 5604735 28036 PURCHASED SERVICES 6426284 5049612 1376672 SYSTEM ALLOCATION FEE 1083683 0 1083683 HOSPITAL FEE 1943387 1943387 0 304236 101091 203145 65403669 57588289 7815380 0 0 0 2688581 3194721 0 0 10242495 8511777 0 0 0 0 0 0 666702 588758 40979 176033 61870636 47770221 14653398 14100415 0 0 0 0 0 0 0 0 9526643 3974249 37818798 30545953 6514132 7787448 0 0 0 0 12765421 12594167 0 0 0 0 0 0 0 0 1235280 815509 20514833 21197124 X 17233355 9203959 70610 144870 0 0 17303965 9348829 37818798 30545953 X 2844106 -5967 -10793275 X false true X true false X 300000 300000 33473185 26284848 7188337 746504 734076 12428 24216884 20701811 3515073 3134063 49486 3084577 14100415 OTHER RECEIVABLES 3485794 INTERCOMPANY RECEIVABLES 238638 NOTES RECEIVABLE 7478 OTHER ASSETS 133511 LOSS RECEIVABLE 108828 3974249 0 INSURANCE LIABILITIES 343965 3RD-PARTY SETTLEMENTS 471544 815509 X SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE FROM AUDIT: THIS ORGANIZATION WAS PART OF A CONSOLIDATED FINANCIAL SYSTEM AUDIT. THE ASC 740 AUDIT FOOTNOTE DISCLOSURE FOR THE SUTTER SYSTEM IS AS FOLLOWS: SUTTER HEALTH, THE LEGAL ENTITY, AND MOST AFFILIATES HAVE BEEN DETERMINED TO BE EXEMPT ORGANIZATIONS BY THE INTERNAL REVENUE SERVICE (PURSUANT TO INTERNAL REVENUE CODE SECTION 501(C)(3)) AND THE CALIFORNIA FRANCHISE TAX BOARD (PURSUANT TO CALIFORNIA REVENUE AND TAXATION CODE 23701(D)) AND, GENERALLY, ARE NOT SUBJECT TO TAXES ON INCOME. CERTAIN ACTIVITIES OF SUTTER ARE SUBJECT TO INCOME TAXES; HOWEVER, SUCH ACTIVITIES ARE NOT SIGNIFICANT TO THE CONSOLIDATED FINANCIAL STATEMENTS. WITH RESPECT TO ITS TAXABLE ACTIVITIES, SUTTER RECORDS INCOME TAXES USING THE LIABILITY METHOD, UNDER WHICH DEFERRED TAX ASSETS AND LIABILITIES ARE DETERMINED BASED ON THE DIFFERENCES BETWEEN THE FINANCIAL ACCOUNTING AND TAX BASES OF ASSETS AND LIABILITIES. DEFERRED TAX ASSETS OR LIABILITIES AT THE END OF EACH PERIOD ARE DETERMINED USING THE CURRENTLY ENACTED TAX RATE EXPECTED TO APPLY TO TAXABLE INCOME IN THE PERIODS THAT THE DEFERRED TAX ASSET OR LIABILITY IS EXPECTED TO BE REALIZED OR SETTLED. SUTTER RECOGNIZES THE TAX BENEFIT FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY THE TAX AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFIT IS MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. SUTTER RECOGNIZES INTEREST AND PENALTIES RELATED TO INCOME TAX MATTERS IN OPERATING EXPENSES. AT DECEMBER 31, 2015 AND 2014, THERE WERE NO SUCH UNCERTAIN TAX POSITIONS. true true X true X 400. true true false true true 870712 870712 0.01330 17050973 19351992 8367 80 8287 0.00010 17930052 19352072 878999 0.01340 11 124730 169510 150 169360 0.00260 1 11 5050 5050 0.00010 5 32028 10532015 7606531 2925484 0.04470 5 24092 96732 96732 0.00150 22 180861 10803307 7606681 3196626 0.04890 22 180861 28733359 26958753 4075625 0.06230 false 428755 3562486 3443631 118855 X true true 1 1 SUTTER COAST HOSPITAL 800 E WASHINGTON BLVD CRESCENT CITY CA 955318359 WWW.SUTTERCOAST.ORG LICENSE #110000067 X X X SUTTER COAST HOSPITAL 1 false false true X X X X X X X X X 13 true false false true X SEE PART V, SECTION C X SEE PART V, SECTION C true 13 true SEE PART V, SECTION C false false true X 400. 0. X X true true X X X X true X X X X X X true X false X X X X true X X false false SCHEDULE H, PART V, SECTION B, LINE 5 IN CONDUCTING ITS MOST RECENT CHNA, SUTTER COAST HOSPITAL DID TAKE INTO ACCOUNT INPUT FROM PERSONS WHO REPRESENT THE BROAD INTERESTS OF THE COMMUNITY IN THE HOSPITAL'S SERVICE AREA (HSA). KEY INFORMANTS ARE HEALTH AND COMMUNITY EXPERTS FAMILIAR WITH POPULATIONS AND GEOGRAPHIC AREAS RESIDING WITHIN THE HSA. TO GAIN A DEEPER UNDERSTANDING OF THE HEALTH ISSUES PERTAINING TO CHRONIC DISEASE AND THE POPULATIONS LIVING IN THESE VULNERABLE COMMUNITIES, INPUT FROM 11 KEY INFORMANT INTERVIEWS WAS COLLECTED USING A THEORETICALLY GROUNDED INTERVIEW GUIDE (APPENDIX A IN THE CHNA). CONTENT ANALYSIS WAS CONDUCTED ON EACH INTERVIEW TO IDENTIFY KEY THEMES AND IMPORTANT POINTS. INTERVIEWS WERE HELD WITH THE FOLLOWING PEOPLE: - HILDA YEPES CONTRERAS, SITE ADMINISTRATOR FOR DEL NORTE COMMUNITY HEALTH CENTER WITH EXPERTISE IN COMMUNITY HEALTH. INTERVIEW DATE: 4/8/13. - JESSICA VANARSDALE, MD, MPH DIRECTOR OF HEALTH RESEARCH FOR CALIFORNIA CENTER FOR RURAL POLICY WITH EXPERTISE IN RURAL HEALTH AND HEALTH RESEARCH. INTERVIEW DATE: 4/9/13. - CLARKE MOORE, BOARD MEMBER FOR DEL NORTE HEALTH CARE DISTRICT WITH EXPERTISE IN COMMUNITY HEALTH. INTERVIEW DATE: 4/10/13. - GENEVA WIKI, EXECUTIVE DIRECTOR FOR WILD RIVERS COMMUNITY FOUNDATION WITH EXPERTISE IN COMMUNITY AND TRIBAL HEALTH. INTERVIEW DATE: 4/11/13. - NANETTE YANDELL, MPH, PUBLIC HEALTH POLICY COORDINATOR FOR DEL NORTE COUNTY DEPARTMENT OF HEALTH AND HUMAN SERVICES WITH EXPERTISE IN COMMUNITY HEALTH AND HEALTH POLICY. INTERVIEW DATE: 4/24/13. - ANNETTE KLINEFELTER, MANAGER OF PLANNING AND PUBLIC DEVELOPMENT AND JESSICA DELANEY, AMERICORPS VISTA FOR CURRY COMMUNITY HEALTH WITH EXPERTISE IN PUBLIC HEALTH AND COMMUNITY ASSESSMENT. INTERVIEW DATE: 5/15/13. - GARY BLATNICK, DIRECTOR OF DEL NORTE COUNTY DEPARTMENT OF HEALTH AND HUMAN SERVICES WITH EXPERTISE IN COMMUNITY HEALTH AND MENTAL HEALTH. INTERVIEW DATE: 6/11/13. - FATHER BERNIE LINDLEY OF ST. TIMOTHY'S EPISCOPAL CHURCH WITH EXPERTISE IN COMMUNITY HEALTH. INTERVIEW DATE: 6/25/13. - RONDA RICHIE, PROGRAM MANAGER FOR HOWONQUET HEAD START WITH EXPERTISE IN COMMUNITY AND TRIBAL HEALTH. INTERVIEW DATE: 6/26/13. - FRANCISCA VAN LITH, VOLUNTEER FOR ST. TIMOTHY'S CLINIC WITH EXPERTISE IN COMMUNITY HEALTH. INTERVIEW DATE: 6/27/13. SELECTION OF LOCATIONS FOR FOCUS GROUPS WAS DETERMINED BY FEEDBACK FROM KEY INFORMANTS AND ANALYSIS OF HEALTH OUTCOME INDICATORS (ED VISITS, HOSPITALIZATION, AND MORTALITY RATES) THAT POINTED TO DISEASE SEVERITY. KEY INFORMANTS WERE ASKED TO IDENTIFY POPULATIONS THAT WERE MOST AT RISK FOR CHRONIC HEALTH DISPARITIES AND MENTAL HEALTH ISSUES. IN ADDITION, ANALYSIS OF HEALTH OUTCOME INDICATORS BY ZIP CODE, RACE, ETHNICITY, AGE, AND SEX REVEALED COMMUNITIES WITH HIGH RATES THAT EXCEEDED ESTABLISHED STATE, COUNTY, AND HSA BENCHMARKS. THE FINDINGS FROM KEY INFORMANT INTERVIEWS AND FOCUS GROUPS IN SUTTER COAST HOSPITAL'S CHNA ARE AVAILABLE AT HTTP://WWW.SUTTERHEALTH.ORG/COMMUNITYBENEFIT/COMMUNITY-NEEDS-ASSESSMENT.HT ML SCHEDULE H, PART V, SECTION B, LINE 6 NO OTHER HOSPITALS COLLABORATED ON THE 2013 CHNA OF SUTTER COAST HOSPITAL, MAINLY DUE TO THE RURAL LOCATION AND GEOGRAPHY OF THE HOSPITAL. HOWEVER, THE CHNA WAS STILL A COLLABORATIVE EFFORT. PRIMARY DATA COLLECTION INVOLVED GATHERING INPUT FROM MORE THAN 65 MEMBERS OF THE HOSPITAL SERVICE AREA (HSA), INCLUDING EXPERT INTERVIEWS WITH 11 KEY INFORMANTS AND FOCUS GROUP INTERVIEWS WITH 54 COMMUNITY MEMBERS. IN ADDITION, A COMMUNITY HEALTH ASSETS ASSESSMENT COLLECTED INFORMATION ABOUT 68 ASSETS IN THE GREATER HOSPITAL SERVICE AREA. SCHEDULE H, PART V, SECTION B, LINE 7A, 7B AND 10A FILING ORGANIZATION WEBSITE: HTTP://WWW.SUTTERCOAST.ORG/ABOUT/COMMUNITY-NEEDS-ASSESSMENT.HTML OTHER WEBSITE: HTTP://WWW.SUTTERHEALTH.ORG/COMMUNITYBENEFIT/COMMUNITY-NEEDS-ASSESSMENT.HT ML SCHEDULE H, PART V, SECTION B, LINE 11 THE FOLLOWING SIGNIFICANT HEALTH NEEDS WERE IDENTIFIED IN THE 2013 COMMUNITY HEALTH NEEDS ASSESSMENT ARE NEEDS THAT SUTTER COAST HOSPITAL INTENDS TO ADDRESS THROUGH ITS IMPLEMENTATION STRATEGY: - LACK OF ACCESS TO PRIMARY AND PREVENTATIVE SERVICES - LACK OF PROVIDERS WHO ACCEPT PUBLICLY INSURED OR UNINSURED PATIENTS; CLINICS LOCATED MAINLY IN CITIES AND ARE DIFFICULT FOR RURAL POPULATION TO REACH; PATIENTS MUST WAIT FOR A LONG TIME OR ARE UNABLE TO SECURE APPOINTMENTS; PEOPLE ONLY SEEK TREATMENT FOR ACUTE CONDITIONS OR SERIOUS INJURIES; AND THE DEMAND FOR SERVICES EXCEEDS CAPACITY. - LIMITED ACCESS TO MENTAL HEALTH SERVICES - LIMITED MENTAL HEALTH SERVICES AVAILABLE, ESPECIALLY FOR THE UNINSURED AND YOUTH; STIGMAS AROUND SEEKING CARE, ESPECIALLY IN SMALL COMMUNITIES; EXISTING PROGRAMS AND SERVICES HAVE BEEN CUT DUE TO LACK OF FUNDING; PEOPLE HAVE DIFFICULTY BUILDING TRUSTING RELATIONSHIPS WITH PROVIDERS DUE TO HIGH TURNOVER. - LIMITED HEALTH LITERACY AND HEALTH EDUCATION OPPORTUNITIES - PEOPLE DO NOT MAKE THE CONNECTION BETWEEN BEHAVIOR, LIFESTYLE CHOICES AND THEIR HEALTH; MANY PEOPLE DO NOT UNDERSTAND HOW TO CARE FOR THEMSELVES OR MANAGE CHRONIC CONDITIONS; CULTURAL BELIEFS AND DIETS MAY NOT SUPPORT POSITIVE HEALTH OUTCOMES; PEOPLE DO NOT KNOW HOW TO READ FOOD LABELS OR USE FRESH FOODS TO PREPARE HEALTHY MEALS; PEOPLE HAVE DIFFICULTY UNDERSTANDING AND FOLLOWING WRITTEN INSTRUCTIONS; FEES ASSOCIATED WITH AVAILABLE CLASSES ARE COST PROHIBITIVE; CLASSES ARE OFFERED SPORADICALLY OR AT TIMES THAT ARE NOT CONVENIENT AND LOW ATTENDANCE IS AN ISSUE; PEOPLE ARE OFTEN UNAWARE OF EXISTING EDUCATIONAL RESOURCES. DESCRIPTIONS OF THE COMMUNITY BENEFIT PROGRAMS THAT ADDRESS THESE SIGNIFICANT HEALTH NEEDS CAN BE FOUND IN PART VI, ALONG WITH ADDITIONAL EFFORTS ON BEHALF OF SUTTER COAST HOSPITAL. NO HOSPITAL CAN ADDRESS ALL OF THE HEALTH NEEDS PRESENT IN ITS COMMUNITY. SUTTER COAST HOSPITAL IS COMMITTED TO SERVING THE COMMUNITY BY ADHERING TO ITS MISSION, USING ITS SKILLS AND CAPABILITIES, AND REMAINING A STRONG ORGANIZATION SO THAT IT CAN CONTINUE TO PROVIDE A WIDE RANGE OF COMMUNITY BENEFITS. THIS IMPLEMENTATION STRATEGY DOES NOT INCLUDE SPECIFIC PLANS TO ADDRESS THE FOLLOWING SIGNIFICANT HEALTH NEEDS THAT WERE IDENTIFIED IN THE 2013 COMMUNITY HEALTH NEEDS ASSESSMENT: 1. INABILITY TO FULFILL BASIC NEEDS, INCLUDING FOOD AND SHELTER - NEED BEING ADDRESSED BY MANY OTHERS IN THE COMMUNITY: - BUILDING HEALTHY COMMUNITIES - COMMUNITY ASSISTANCE LEAGUE - LOCAL MINISTRIES - DHHS - SOVEREIGN NATIONS - INSUFFICIENT RESOURCES (FINANCIAL, PERSONNEL AND EXPERTISE) TO ADDRESS THE NEED. - NEED IS NOT LIKELY TO BE RESOLVED AS OTHER PROBLEMS. 2. LIMITED ACCESS TO SAFE AND AFFORDABLE PLACES TO EXERCISE - IMPLEMENTATION PLAN WILL ADDRESS HEALTH LITERACY AND EDUCATION OPPORTUNITIES; AND THIS TOPIC WILL BE INCLUDED WITHIN EDUCATION. - ISSUE IS NOT A PRIORITY FOR COMMUNITY MEMBERS, AND THEREFORE, APPROACH IS UNLIKELY TO SUCCEED. - HOSPITAL DOES NOT HAVE EXPERTISE TO EFFECTIVELY ADDRESS THE NEED. 3. LIMITED ACCESS TO RELIABLE TRANSPORTATION - NEED IS NOT LIKELY TO BE RESOLVED AS OTHER PROBLEMS. - INSUFFICIENT RESOURCES TO ADDRESS THE NEED. - MAY BE ABLE TO PARTIALLY ADDRESS THIS NEED THROUGH EDUCATION AND LITERACY FOCUS. 4. LACK OF ACCESS TO DENTAL CARE - INSUFFICIENT RESOURCES TO ADDRESS THE NEED. - HOSPITAL DOES NOT HAVE EXPERTISE TO EFFECTIVELY ADDRESS THE NEED. - IMPLEMENTATION PLAN WILL ADDRESS HEALTH LITERACY AND EDUCATION OPPORTUNITIES; AND THIS TOPIC WILL BE INCLUDED WITHIN EDUCATION. SCHEDULE H, PART V, SECTION B, LINE 15E METHOD FOR APPLYING FOR FINANCIAL ASSISTANCE - OTHER: PATIENTS MAY REQUEST ASSISTANCE WITH COMPLETING THE APPLICATION FOR FINANCIAL ASSISTANCE IN PERSON AT THE HOSPITAL, OVER THE PHONE, THROUGH THE MAIL, OR VIA THE SUTTER HEALTH WEBSITE. SCHEDULE H, PART V, SECTION B, LINE 16I MEASURES USED TO PUBLICIZE THE FACILITYS FINANCIAL ASSISTANCE POLICY: THE FINANCIAL ASSISTANCE POLICY IS AVAILABLE IN THE PRIMARY LANGUAGES OF THE HOSPITAL'S SERVICE AREA. DURING PREADMISSION OR REGISTRATION ALL PATIENTS WILL BE PROVIDED A PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY AND ALSO INFORMATION REGARDING THE RIGHT TO REQUEST AN ESTIMATE OF THEIR FINANCIAL RESPONSIBILITY FOR SERVICES. PATIENTS WHO MAY BE UNINSURED WILL BE ASSIGNED A FINANCIAL COUNSELOR WHO WILL VISIT WITH THE PATIENT IN PERSON AT THE HOSPITAL AND CAN PROVIDE ADDITIONAL INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY AND ASSIST WITH THE APPLICATION PROCESS. AT THE TIME OF DISCHARGE ALL PATIENTS WILL BE PROVIDED THE PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY. ON AN ANNUAL BASIS SUTTER HEALTH WILL PLACE AN ADVERTISEMENT REGARDING THE AVAILABILITY OF FINANCIAL ASSISTANCE AT THE ORGANIZATION IN THE PRINCIPAL NEWSPAPER IN THE COMMUNITY OR WHEN DOING SO IS NOT PRACTICAL SUTTER WILL ISSUE A PRESS RELEASE CONTAINING THE INFORMATION OR USE OTHER MEANS THAT WILL WIDELY PUBLICIZE THE AVAILABILITY OF THE POLICY. SUTTER HEALTH WILL WORK WITH AFFILIATED ORGANIZATIONS, PHYSICIANS, COMMUNITY CLINICS AND OTHER HEALTH CARE PROVIDERS TO NOTIFY MEMBERS OF THE COMMUNITY ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. SCHEDULE H, PART V, SECTION B, LINE 22D AMOUNTS CHARGED TO FAP-ELIGIBLE INDIVIDUALS: THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY PROVIDES FOR FULL WRITE OFF OF ALL CHARGES FOR AN UNINSURED PATIENT WITH A FAMILY INCOME AT OR BELOW 400% OF THE MOST RECENT FEDERAL POVERTY LEVEL. IN ACCORDANCE WITH INTERNAL REVENUE CODE SECTION 1.501(R)-5, THIS ORGANIZATION ADOPTS THE PROSPECTIVE MEDICARE METHOD FOR AMOUNTS GENERALLY BILLED; HOWEVER, PATIENTS WHO ARE ELIGIBLE FOR FINANCIAL ASSISTANCE ARE NOT FINANCIALLY RESPONSIBLE FOR MORE THAN THE AMOUNTS GENERALLY BILLED BECAUSE ELIGIBLE PATIENTS DO NOT PAY ANY AMOUNT. 3 SUTTER COAST HOSPITAL CLINIC 555 5TH STREET 2 BROOKINGS OR 97415 OUTPATIENT SERVICES SUTTER COAST HEALTH CENTER 780 E WASHINGTON BLVD STE 10 CRESCENT CITY CA 95531 RURAL HEALTH CLINIC SUTTER COAST MATERNITY PROGRAM 785 E WASHINGTON BLVD STE 104 CRESCENT CITY CA 95532 OUTPATIENT SERVICES SCHEDULE H, PART I, LINE 3C FINANCIAL ASSISTANCE ELIGIBILITY CRITERIA: FOR UNINSURED PATIENTS TO BE ELIGIBLE FOR FREE CARE THE ORGANIZATION USES THE FEDERAL POVERTY GUIDELINES (FPG) FOR FAMILY INCOMES THAT ARE AT OR BELOW 400% OF FPG. IN ADDITION THE ORGANIZATION HAS A HIGH MEDICAL COST CHARITY CARE CATEGORY IN WHICH A WRITE OFF OF THE PATIENT RESPONSIBILITY FOR HOSPITAL SERVICES CAN OCCUR IF THE INSURED PATIENT HAS FAMILY INCOME AT OR BELOW 400% FPG AND EXPENSES INCURRED FOR THEMSELVES OR THEIR FAMILY EXCEED 10% OF THE PATIENTS FAMILY INCOME. SCHEDULE H, PART I, LINE 6A SUTTER HEALTH (EIN: 94-2788907), A RELATED ORGANIZATION, PREPARES A COMBINED COMMUNITY BENEFIT REPORT. SCHEDULE H, PART I, LINE 7 COSTING METHODOLOGY USED: COST TO CHARGE RATIO UTILIZING WORKSHEET 2 METHODOLOGY. SCHEDULE H, PART I, LINE 7B IN 2010 THIS ORGANIZATION PARTICIPATED IN THE CALIFORNIA HOSPITAL FEE PROGRAM WHICH PROVIDED SUPPLEMENTAL MEDI-CAL (MEDICAID) PAYMENTS RESULTING IN A MEDICAID BENEFIT CREDIT. SCHEDULE H, PART I, LINE 7G THE AMOUNT OF COSTS ASSOCIATED WITH PHYSICIAN CLINICS IS $6,940,913. SCHEDULE H, PART III, LINE 2 METHODOLOGY FOR CALCULATING BAD DEBT (AT COST): THE RATIO OF PATIENT CARE COST TO CHARGES IS APPLIED TO THE BAD DEBT ATTRIBUTABLE TO PATIENT ACCOUNTS TO CALCULATE THE ESTIMATED COST OF BAD DEBT ATTRIBUTABLE TO PATIENT ACCOUNTS THAT IS REPORTED ON LINE 2. DISCOUNTS AND PAYMENTS ON PATIENT ACCOUNTS ARE RECORDED AS AN ADJUSTMENT TO REVENUE, NOT BAD DEBT EXPENSE. SCHEDULE H, PART III, LINE 3 METHODOLOGY FOR DETERMINING THE AMOUNT OF BAD DEBT LIKELY ATTRIBUTABLE TO CHARITY CARE: AMOUNTS MAY BE INCLUDED IN BAD DEBT PENDING A CHARITY CARE DETERMINATION. UPON ELIGIBILITY THESE AMOUNTS WOULD BE RECLASSIFIED AS CHARITY CARE. SCHEDULE H, PART III, LINE 4 AUDIT FOOTNOTE THE ORGANIZATION IS AN AFFILIATE OF SUTTER HEALTH WHICH UNDERWENT A SYSTEM-WIDE AUDIT. THE AUDIT REPORT DOES NOT INCLUDE A BAD DEBT EXPENSE FOOTNOTE. PROVISION FOR BAD DEBTS IS LISTED ON A SEPARATE LINE ITEM IN THE FINANCIAL STATEMENTS. THE AUDIT DOES INCLUDE A FOOTNOTE FOR PATIENT SERVICE REVENUES LESS PROVISION FOR BAD DEBTS. PATIENT SERVICE REVENUE FOOTNOTE: PATIENT SERVICE REVENUES ARE REPORTED AT THE ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS AND THIRD-PARTY PAYERS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS UNDER REIMBURSEMENT PROGRAMS WITH THIRD-PARTY PAYERS. ESTIMATED SETTLEMENTS UNDER THIRD-PARTY REIMBURSEMENT PROGRAMS ARE ACCRUED IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS, PRIMARILY AS A RESULT OF FINAL COST REPORT SETTLEMENTS WITH GOVERNMENTAL AGENCIES. PATIENT SERVICE REVENUES LESS PROVISION FOR BAD DEBTS ARE REPORTED NET OF THE PROVISION FOR BAD DEBTS ON THE CONSOLIDATED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS. SUTTER'S SELF-PAY WRITE-OFFS WERE $192 MILLION AND $287 MILLION FOR 2015 AND 2014, RESPECTIVELY. SCHEDULE H, PART III, LINE 7 MEDICARE COSTS: MEDICARE COST REPORTS THAT THE ORGANIZATION FILES DO NOT INCLUDE ALL OF THE COSTS REQUIRED TO TREAT MEDICARE PATIENTS. SCHEDULE H, PART III, LINE 8 COSTING METHODOLOGY: MEDICARE ALLOWABLE COSTS WERE CALCULATED USING A COST TO CHARGE RATIO. COMMUNITY BENEFIT MEDICARE SHORTFALL: THE IRS COMMUNITY BENEFIT STANDARD INCLUDES THE PROVISION OF CARE TO THE ELDERLY AND MEDICARE PATIENTS. CARING FOR MEDICARE PATIENTS FULFILLS A COMMUNITY NEED AND RELIEVES A GOVERNMENT BURDEN AS THESE PATIENTS TYPICALLY HAVE LOW AND/OR FIXED INCOMES. MEDICARE DOES NOT PROVIDE SUFFICIENT REIMBURSEMENT TO COVER THE COST OF PROVIDING CARE FOR THESE PATIENTS FORCING THE HOSPITAL TO USE OTHER FUNDS TO COVER THE DEFICIT. SCHEDULE H, PART III, LINE 9B DEBT COLLECTION POLICY: COLLECTION PRACTICES ARE CONSISTENT FOR ALL PATIENTS AND COMPLY WITH APPLICABLE PROVISIONS OF FEDERAL AND CALIFORNIA LAW. DURING PREADMISSION OR REGISTRATION, THE HOSPITAL PROVIDES ALL PATIENTS WITH INFORMATION REGARDING THE AVAILABILITY OF FINANCIAL ASSISTANCE. AN UNINSURED PATIENT WHO INDICATES THE FINANCIAL INABILITY TO PAY A BILL IS EVALUATED FOR FINANCIAL ASSISTANCE. AT DISCHARGE PATIENTS WILL BE GIVEN AN APPLICATION WHICH WILL DOCUMENT THE PATIENT'S OVERALL FINANCIAL SITUATION. IF AN UNINSURED PATIENT DOES NOT COMPLETE THE APPLICATION FORM WITHIN 30 DAYS OF DELIVERY, THE HOSPITAL WILL NOTIFY THE PATIENT THAT THE APPLICATION HAS NOT BEEN RECEIVED AND WILL PROVIDE THE PATIENT AN ADDITIONAL 210 DAYS TO COMPLETE THE APPLICATION. IF A PATIENT HAS APPLIED FOR CHARITY CARE, HAS BEEN APPROVED TO RECEIVE CHARITY CARE, OR IS COOPERATING WITH THE HOSPITAL'S EFFORTS TO SETTLE AN OUTSTANDING BILL WITHIN A REASONABLE TIME PERIOD, THE HOSPITAL WILL NOT PURSUE COLLECTIONS. SCHEDULE H, PART VI, LINE 2 BETWEEN JANUARY AND AUGUST 2013, VALLEY VISION, INC., CONDUCTED AN ASSESSMENT OF THE HEALTH NEEDS OF RESIDENTS LIVING IN THE SUTTER COAST HOSPITAL SERVICE AREA (HSA). A COMMUNITY-BASED PARTICIPATORY RESEARCH ORIENTATION WAS USED TO CONDUCT THE ASSESSMENT, WHICH INCLUDED BOTH PRIMARY AND SECONDARY DATA. PRIMARY DATA COLLECTION INVOLVED GATHERING INPUT FROM MORE THAN 65 MEMBERS OF THE HSA, INCLUDING EXPERT INTERVIEWS WITH 11 KEY INFORMANTS AND FOCUS GROUP INTERVIEWS WITH 54 COMMUNITY MEMBERS. IN ADDITION, A COMMUNITY HEALTH ASSETS ASSESSMENT COLLECTED INFORMATION ABOUT 68 ASSETS IN THE GREATER HOSPITAL SERVICE AREA. SECONDARY DATA USED INCLUDED HEALTH OUTCOME DATA, SOCIO-DEMOGRAPHIC DATA, AND BEHAVIORAL AND ENVIRONMENTAL DATA AT THE ZIP CODE OR CENSUS TRACT LEVEL. HEALTH OUTCOME DATA INCLUDED EMERGENCY DEPARTMENT (ED) VISITS, HOSPITALIZATION, AND MORTALITY RATES RELATED TO HEART DISEASE, DIABETES, STROKE, HYPERTENSION, COPD, ASTHMA, SAFETY AND MENTAL HEALTH CONDITIONS. SOCIO-DEMOGRAPHIC DATA INCLUDED DATA ON RACE AND ETHNICITY, POVERTY (FEMALE-HEADED HOUSEHOLDS, FAMILIES WITH CHILDREN, PEOPLE OVER 65 YEARS OF AGE), EDUCATIONAL ATTAINMENT, HEALTH INSURANCE STATUS, AND HOUSING ARRANGEMENT (OWN OR RENT). FURTHER, BEHAVIORAL AND ENVIRONMENTAL DATA HELPED DESCRIBE GENERAL LIVING CONDITIONS OF THE HSA, SUCH AS CRIME RATES, ACCESS TO PARKS, AVAILABILITY OF HEALTHY FOOD, AND LEADING CAUSES OF DEATH. THE SUTTER COAST HOSPITAL SERVICE AREA (HSA) WAS IDENTIFIED THROUGH THE COLLECTION AND ANALYSIS OF ZIP CODES ASSOCIATED WITH PATIENTS DISCHARGED FROM THE HOSPITAL OVER A SIX-MONTH PERIOD. THROUGH THIS ANALYSIS, IT WAS DETERMINED THAT APPROXIMATELY 90% OF ALL PATIENTS RESIDED IN FIVE ZIP CODES SPLIT BETWEEN TWO COUNTIES AND TWO STATES. WITH THE EXCEPTION OF ZIP CODE 97415 (BROOKINGS, OR) ALL OF THE ZIP CODES IN THE HSA ARE LOCATED IN DEL NORTE COUNTY. A LIST OF PRIORITY HEALTH NEEDS, WHICH WERE IDENTIFIED THROUGH CAREFUL ANALYSIS OF BOTH QUANTITATIVE AND QUALITATIVE DATA, FOR SUTTER COAST HOSPITAL'S SERVICE AREA: 1. LACK OF ACCESS TO PRIMARY AND PREVENTATIVE SERVICES 2. LIMITED ACCESS TO MENTAL HEALTH SERVICES 3. INABILITY TO FULFILL BASIC NEEDS, INCLUDING FOOD AND SHELTER 4. LIMITED ACCESS TO RELIABLE TRANSPORTATION 5. LIMITED ACCESS TO SAFE AND AFFORDABLE PLACES TO EXERCISE 6. LACK OF ACCESS TO DENTAL CARE 7. LIMITED HEALTH LITERACY AND HEALTH EDUCATION OPPORTUNITIES THE ENTIRE 2013 COMMUNITY HEALTH NEEDS ASSESSMENT FOR SUTTER COAST HOSPITAL IS AVAILABLE AT HTTP://WWW.SUTTERHEALTH.ORG/COMMUNITYBENEFIT/COMMUNITY-NEEDS-ASSESSMENT.HT ML SCHEDULE H, PART VI, LINE 3 SUTTER COAST HOSPITAL FOLLOWS A SUTTER HEALTH SYSTEM-WIDE CHARITY CARE POLICY, WHICH INCLUDES THE FOLLOWING DETAILS OF HOW THE ORGANIZATION INFORMS AND EDUCATES PATIENTS AND PERSONS WHO MAY BE BILLED FOR PATIENT CARE. FOR A MORE DETAILED LOOK AT OUR CHARITY CARE POLICIES BY REGION, PLEASE VISIT THE OFFICE OF STATEWIDE AND HEALTH PLANNING'S WEBSITE AT HTTP://SYFPHR.OSHPD.CA.GOV. COMMUNICATIONS OF FINANCIAL ASSISTANCE AVAILABILITY A. INFORMATION PROVIDED TO PATIENTS: 1. PREADMISSION OR REGISTRATION: DURING PREADMISSION OR REGISTRATION (OR AS SOON THEREAFTER AS PRACTICABLE) HOSPITAL AFFILIATES SHALL PROVIDE: A. ALL PATIENTS WITH INFORMATION REGARDING THE AVAILABILITY OF FINANCIAL ASSISTANCE AND THEIR RIGHT TO REQUEST AN ESTIMATE OF THEIR FINANCIAL RESPONSIBILITY FOR SERVICES (IMPORTANT BILLING INFORMATION FOR UNINSURED PATIENTS). B. PATIENTS WHO THE HOSPITAL IDENTIFIES MAY BE UNINSURED WITH A FINANCIAL ASSISTANCE APPLICATION SUBSTANTIALLY SIMILAR TO THE SUTTER HEALTH STANDARDIZED FINANCIAL ASSISTANCE APPLICATION, "STATEMENT OF FINANCIAL CONDITION". 2. EMERGENCY SERVICES: IN THE CASE OF EMERGENCY SERVICES, HOSPITAL AFFILIATES SHALL PROVIDE THE ABOVE INFORMATION AS SOON AS PRACTICABLE AFTER STABILIZATION OF THE PATIENT'S EMERGENCY MEDICAL CONDITION OR UPON DISCHARGE. 3. ALL OTHER TIMES: UPON REQUEST, HOSPITAL AFFILIATES SHALL PROVIDE PATIENTS WITH INFORMATION ABOUT THEIR RIGHT TO REQUEST AN ESTIMATE OF THEIR FINANCIAL RESPONSIBILITY FOR SERVICES, THE SUTTER HEALTH STANDARDIZED FINANCIAL ASSISTANCE APPLICATION FORM, "STATEMENT OF FINANCIAL CONDITION". B. POSTINGS AND OTHER NOTICES: INFORMATION ABOUT FINANCIAL ASSISTANCE SHALL ALSO BE PROVIDED AS FOLLOWS: 1. BY POSTING NOTICES IN A VISIBLE MANNER IN LOCATIONS WHERE THERE IS A HIGH VOLUME OF INPATIENT OR OUTPATIENT ADMITTING/REGISTRATION, INCLUDING BUT NOT LIMITED TO THE EMERGENCY DEPARTMENT, BILLING OFFICES, ADMITTING OFFICE, AND OTHER HOSPITAL OUTPATIENT SERVICE SETTINGS. 2. BY POSTING INFORMATION ABOUT FINANCIAL ASSISTANCE ON THE SUTTER HEALTH WEBSITE AND EACH HOSPITAL AFFILIATE WEBSITE, IF ANY. 3. BY INCLUDING INFORMATION ABOUT FINANCIAL ASSISTANCE IN BILLS THAT ARE SENT TO UNINSURED PATIENTS. 4. BY INCLUDING LANGUAGE ON BILLS SENT TO UNINSURED PATIENTS AS SPECIFICALLY SET FORTH IN THE MANAGEMENT OF PATIENT ACCOUNTS RECEIVABLE, COLLECTION PRACTICES, HOSPITAL AFFILIATE THIRD-PARTY LIENS, AND AFFILIATE DISPUTE INITIATION POLICY. C. APPLICATIONS PROVIDED AT DISCHARGE: IF NOT PREVIOUSLY PROVIDED, HOSPITAL AFFILIATES SHALL PROVIDE UNINSURED PATIENTS WITH APPLICATIONS FOR MEDI-CAL, HEALTHY FAMILIES, CALIFORNIA CHILDREN'S SERVICES, OR ANY OTHER POTENTIALLY APPLICABLE GOVERNMENT PROGRAM AT THE TIME OF DISCHARGE. D. LANGUAGES: ALL NOTICES/COMMUNICATIONS PROVIDED IN THIS SECTION SHALL BE AVAILABLE IN THE PRIMARY LANGUAGE(S) OF THE AFFILIATE'S SERVICE AREA AND IN A MANNER CONSISTENT WITH ALL APPLICABLE FEDERAL AND STATE LAWS AND REGULATIONS. E. NOTIFICATIONS TO UNINSURED PATIENTS OF ESTIMATED FINANCIAL RESPONSIBILITY: BY LAW, UNINSURED PATIENTS ARE ENTITLED TO RECEIVE AN ESTIMATE OF THEIR FINANCIAL RESPONSIBILITY FOR HOSPITAL SERVICES. EXCEPT IN THE CASE OF EMERGENCY SERVICES, HOSPITAL AFFILIATES SHALL NOTIFY PATIENTS WHO THE HOSPITAL IDENTIFIES MAY BE UNINSURED PATIENTS THAT THEY MAY OBTAIN AN ESTIMATE OF THEIR FINANCIAL RESPONSIBILITY FOR HOSPITAL SERVICES, AND PROVIDE ESTIMATES TO THOSE PATIENTS UPON REQUEST. ESTIMATES SHALL BE WRITTEN, AND BE PROVIDED DURING NORMAL BUSINESS HOURS. ESTIMATES SHALL PROVIDE THE PATIENT WITH AN ESTIMATE OF THE AMOUNT THE HOSPITAL AFFILIATE WILL REQUIRE THE PATIENT TO PAY FOR THE HEALTH CARE SERVICES, PROCEDURES, AND SUPPLIES THAT ARE REASONABLY EXPECTED TO BE PROVIDED TO THE PATIENT BY THE HOSPITAL, BASED UPON THE AVERAGE LENGTH OF STAY AND SERVICES PROVIDED FOR THE PATIENT'S DIAGNOSIS. SCHEDULE H, PART VI, LINE 4 THE SUTTER COAST HOSPITAL SERVICE AREA (HSA) WAS IDENTIFIED THROUGH THE COLLECTION AND ANALYSIS OF ZIP CODES ASSOCIATED WITH PATIENTS DISCHARGED FROM THE HOSPITAL OVER A SIX-MONTH PERIOD. THROUGH THIS ANALYSIS, IT WAS DETERMINED THAT APPROXIMATELY 90% OF ALL PATIENTS RESIDED IN FIVE ZIP CODES SPLIT BETWEEN TWO COUNTIES AND TWO STATES. WITH THE EXCEPTION OF ZIP CODE 97415 (BROOKINGS, OR), ALL OF THE ZIP CODES IN THE HSA ARE LOCATED IN DEL NORTE COUNTY. SUTTER COAST HOSPITAL IS THE ONLY HOSPITAL SERVING THE COMMUNITY. ZIP CODE BOUNDARIES IN RURAL COMMUNITIES ARE SOMETIMES NOT REPRESENTATIVE OF POPULATION DISTRIBUTIONS ACROSS A ZIP CODE. SOME ZIP CODES, LIKE 95543 (GASQUET) AND 95548 (KLAMATH) HAVE POPULATIONS CONCENTRATED IN A RELATIVELY SMALL AREA COMPARED TO THE OVERALL SIZE OF THE ZIP CODE. IN GENERAL, THE HSA IS COMPRISED OF CITIES AND TOWNS THAT ARE SET APART FROM ONE ANOTHER AND SURROUNDED BY LARGE TRACTS OF COASTAL AND FORESTED LAND. SUTTER COAST HOSPITAL IS LOCATED IN DEL NORTE COUNTY, ALONG THE NORTHERN COAST OF CALIFORNIA. THE HSA IS HOME TO MORE THAN 42,000 RESIDENTS. CRESCENT CITY (95531) AND BROOKINGS (97415) ARE THE MOST POPULATED AREAS IN THE HSA, WHILE GASQUET (95543), KLAMATH (95548) AND SMITH RIVER (95567) ARE SMALLER, MORE RURAL COMMUNITIES. HIGHWAY 101 LINKS MOST OF THE COMMUNITIES IN THE HSA AND SERVES AS ITS MAJOR TRANSPORTATION CORRIDOR. THE SUTTER COAST HSA IS BOUNDED BY REDWOOD FORESTS TO THE EAST AND THE PACIFIC OCEAN TO THE WEST, AND ALSO CONTAINS LARGE SECTIONS OF TRIBAL LAND. NATIONAL PARKS AND BEACHES ATTRACT TOURISTS DURING THE SUMMER MONTHS, ALTHOUGH THE AREA IS PRONE TO FOG AND RAIN DURING SEVERAL MONTHS OF THE YEAR. WHITES ACCOUNTED FOR NEARLY THREE QUARTERS OF THE HSA'S RESIDENTS (72.2%). OTHER GROUPS THAT COMPRISED THE BULK OF THE HSA'S POPULATION INCLUDED HISPANICS (14.1%), AND AMERICAN INDIANS (5.2%). IN SOME CATEGORIES, DEL NORTE AND CURRY COUNTIES DEMONSTRATE POOR HEALTH OUTCOMES WHEN COMPARED TO OTHER CALIFORNIA AND OREGON COUNTIES. THE ROBERT WOOD JOHNSON FOUNDATION PRODUCES COUNTY HEALTH RANKINGS AND ROADMAPS FOR NEARLY EVERY COUNTY IN THE UNITED STATES. THE REPORT INCLUDES COUNTY-LEVEL ESTIMATES THAT ARE BASED ON DATA COLLECTED BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION'S (CDC) BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM (BRFSS). THE 2013 REPORT USES DATA COLLECTED OVER A SEVEN-YEAR PERIOD (2005-2011). THE 2013 COUNTY HEALTH RANKINGS INDICATED THAT DEL NORTE COUNTY WAS AMONG THE WORST COUNTIES IN CALIFORNIA FOR OVERALL HEALTH OUTCOMES WITH A RANKING OF 53 OUT OF 57. IN OREGON, CURRY COUNTY FARED SLIGHTLY BETTER WITH A RANKING OF 26 OUT OF 33 COUNTIES. MORTALITY RANKINGS SHOWED DEL NORTE COUNTY RANKED 56 OF 57, WHILE CURRY COUNTY RANKED 31 OF 33. DATA INDICATED THAT 15% OF CURRY COUNTY RESIDENTS SELF-REPORTED THEIR HEALTH AS "POOR OR FAIR," COMPARED TO AN OREGON BENCHMARK OF 14% AND A NATIONAL BENCHMARK OF 10%. FINALLY, CURRY COUNTY RESIDENTS REPORTED THAT ON AVERAGE THEY EXPERIENCED 3.6 DAYS OVER A 30-DAY PERIOD THAT THEIR PHYSICAL HEALTH WAS GOOD." THIS IS BELOW THE OREGON BENCHMARK OF 3.7 DAYS AND THE ABOVE THE NATIONAL BENCHMARK OF 2.6 DAYS. SELF-REPORTED HEALTH DATA WERE NOT AVAILABLE FOR DEL NORTE COUNTY. MOST OF THE ZIP CODES IN THE SUTTER COAST HOSPITAL HSA HAD NOTABLY HIGHER RATES OF MORTALITY, ED VISITS, AND HOSPITALIZATION DUE TO CHRONIC DISEASES, SUBSTANCE ABUSE, AND MENTAL HEALTH CONDITIONS COMPARED TO COUNTY AND STATE BENCHMARKS. AN IN-DEPTH VIEW OF THE DEMOGRAPHICS AND GEOGRAPHY OF THE SERVICE AREA IS AVAILABLE IN THE SUTTER COAST HOSPITAL CHNA AT HTTP://WWW.SUTTERHEALTH.ORG/COMMUNITYBENEFIT/COMMUNITY-NEEDS-ASSESSMENT.HT ML SCHEDULE H, PART VI, LINE 5 SUTTER HEALTH'S MISSION IS TO "ENHANCE THE WELL-BEING OF THE PEOPLE IN THE COMMUNITIES WE SERVE, THROUGH A NOT-FOR-PROFIT COMMITMENT TO COMPASSION AND EXCELLENCE IN HEALTH CARE SERVICES." SUTTER HEALTH'S MISSION REACHES BEYOND THE WALLS OF OUR HOSPITALS AND FACILITIES. OUR AFFILIATES FURTHER THEIR TAX-EXEMPT PURPOSE BY: - BUILDING RELATIONSHIPS OF TRUST BY WORKING COLLABORATIVELY WITH COMMUNITY GROUPS, SCHOOLS AND GOVERNMENT ORGANIZATIONS TO EFFECTIVELY LEVERAGE RESOURCES AND ADDRESS IDENTIFIED COMMUNITY NEEDS; - SUPPORTING NONPROFIT ORGANIZATIONS THAT ARE COMMITTED TO COMMUNITY HEALTH IMPROVEMENT THROUGH FINANCIAL INVESTMENTS, IN-KIND SERVICES AND EMPLOYEE VOLUNTEERISM; AND - PROVIDING GENEROUS CHARITY CARE POLICIES FOR OUR MOST VULNERABLE COMMUNITY MEMBERS. THE 2013 - 2015 IMPLEMENTATION STRATEGY FOR SUTTER COAST HOSPITAL DEFINES A VARIETY OF PROGRAMS AND PARTNERSHIPS THAT ADDRESS IDENTIFIED PRIORITY HEALTH NEEDS AND IMPROVE THE OVERALL HEALTH OF THE COMMUNITY IT SERVES. A FEW OF THOSE PROGRAMS AND PARTNERSHIPS ARE DESCRIBED BELOW. SUTTER COAST HOSPITAL OFFERS A VARIETY OF HEALTH EDUCATION PROGRAMS. THERE ARE PROGRAMS FOR HEALTHY PREGNANCY, BREAST FEEDING, WEIGHT MANAGEMENT, CHILDHOOD DEVELOPMENT AND MORE. IN ADDITION, SUTTER COAST HOSPITAL CONTINUES TO SUPPORT ORGANIZATIONS IN THE COMMUNITY, INCLUDING DEL NORTE UNIFIED SCHOOL DISTRICT, CASA DEL NORTE AND RELAY FOR LIFE. ORGANIZATIONS ALSO USE OUR FACILITIES FOR MEETING SPACE. SUTTER COAST HOSPITAL ALSO SUPPORTS HARRINGTON HOUSE THROUGH THEIR MONTHLY FOOD RECOVERY PROGRAM. HARRINGTON HOUSE IS A COMMUNITY RESOURCE CENTER AND SHELTER FOR VICTIMS OF DOMESTIC VIOLENCE AND THEIR CHILDREN. THEY PROVIDE A 28 BED EMERGENCY SHELTER, 24-HOUR CRISIS HOTLINE, COUNSELING, LEGAL SERVICES, HOUSEHOLD ESTABLISHMENT, OUTREACH AND PREVENTION EDUCATION. LAST YEAR, HARRINGTON HOUSE PROVIDED OVER 2,500 SHELTER NIGHTS AND OVER 10,000 MEALS TO PERSONS AND FAMILIES IN CRISIS. SUTTER COAST PROVIDES FREE HEALTH CARE TO THE COMMUNITY INCLUDING MAMMOGRAMS, MONTHLY BLOOD PRESSURE CLINICS AT THE LOCAL SENIOR CENTER, AS WELL AS SERVICES TO RURAL HEALTH CLINIC WALK-IN PATIENTS SENT TO THE EMERGENCY DEPARTMENT. SUTTER COAST HOSPITAL ASSISTS WITH TRANSPORTATION COSTS FOR PATIENTS UNABLE TO DRIVE AND HAVE NO OTHER MEANS OF TRANSPORTATION TO RECEIVE NECESSARY MEDICAL CARE. SUTTER COAST HOSPITAL PROVIDES ASSISTANCE TO CLIENTS WHO ENROLL IN PUBLIC PROGRAMS SUCH AS MEDI-CAL. SCHEDULE H, PART VI, LINE 6 AFFILIATED HEALTH CARE SYSTEM: THE ORGANIZATION IS AFFILIATED WITH SUTTER HEALTH, A NOT-FOR-PROFIT NETWORK OF HOSPITALS, PHYSICIANS, EMPLOYEES AND VOLUNTEERS WHO CARE FOR PEOPLE WHO LIVE IN MORE THAN 100 NORTHERN CALIFORNIA TOWNS AND CITIES. TOGETHER, WE'RE CREATING A MORE INTEGRATED, SEAMLESS AND AFFORDABLE APPROACH TO CARING FOR PATIENTS. THE HOSPITAL'S MISSION IS TO ENHANCE THE WELL-BEING OF THE PEOPLE IN OUR COMMUNITIES THROUGH COMPASSION, EXCELLENCE AND INNOVATION IN HEALTH CARE SERVICES, RESEARCH AND EDUCATION. OVER THE PAST FIVE YEARS, SUTTER HEALTH HAS COMMITTED NEARLY $4 BILLION TO CARE FOR PATIENTS WHO COULDN'T AFFORD TO PAY, AND TO SUPPORT PROGRAMS THAT IMPROVE COMMUNITY HEALTH. OUR 2015 COMMITMENT OF $843 MILLION INCLUDES UNREIMBURSED COSTS OF PROVIDING CARE TO MEDI-CAL PATIENTS, TRADITIONAL CHARITY CARE AND INVESTMENTS IN HEALTH EDUCATION AND PUBLIC BENEFIT PROGRAMS. FOR EXAMPLE: - TO PROVIDE CARE TO MEDI-CAL PATIENTS IN 2015, SUTTER HEALTH INVESTED $712 MILLION MORE THAN THE STATE PAID. SUTTER HEALTH HOSPITALS PROUDLY SERVE MORE MEDI-CAL PATIENTS IN OUR NORTHERN CALIFORNIA SERVICE AREA THAN ANY OTHER HEALTH CARE PROVIDER. - IN 2015, SUTTER HEALTH'S COMMITMENT TO DELIVERING CHARITY CARE TO PATIENTS WAS $52 MILLION. - THROUGHOUT OUR HEALTH CARE SYSTEM, WE PARTNER WITH AND SUPPORT COMMUNITY HEALTH CENTERS TO ENSURE THAT THOSE IN NEED HAVE ACCESS TO PRIMARY AND SPECIALTY CARE. WE ALSO SUPPORT CHILDREN'S HEALTH CENTERS, FOOD BANKS, YOUTH EDUCATION, JOB TRAINING PROGRAMS AND SERVICES THAT PROVIDE COUNSELING TO DOMESTIC VIOLENCE VICTIMS. EVERY THREE YEARS, SUTTER HEALTH HOSPITALS PARTICIPATE IN A COMPREHENSIVE AND COLLABORATIVE COMMUNITY HEALTH NEEDS ASSESSMENT, WHICH IDENTIFIES LOCAL HEALTH CARE PRIORITIES AND GUIDES OUR COMMUNITY BENEFIT STRATEGIES. THE ASSESSMENTS HELP ENSURE THAT WE INVEST OUR COMMUNITY BENEFIT DOLLARS IN A WAY THAT TARGETS AND ADDRESSES REAL COMMUNITY NEEDS. SCHEDULE H, PART VI, LINE 7 STATE FILING OF COMMUNITY BENEFIT REPORT: CALIFORNIA X true true X X X X false true false false false false false true false MIKE COHILL REGIONAL PRESIDENT, WEST BAY 0 730128 0 1294826 0 191091 0 323092 0 24450 0 2563587 0 555196 Rose Corcoran CNE SCH 0 203305 0 77267 0 13626 0 40708 0 20026 0 354932 0 44286 Christopher Cutter Physician 168376 0 0 0 1673 0 8843 0 23214 0 202106 0 0 0 JEREMY DAVIS Associate Administrator 124208 0 6363 0 0 0 6790 0 28157 0 165518 0 0 0 Nabil Elkhoury Physician 313846 0 7500 0 151992 0 13792 0 10601 0 497731 0 0 0 JOHN GATES CFO, EAST & WEST REGION(PT YR) 0 633354 0 285096 0 49516 0 163042 0 20100 0 1151108 0 135078 MITCH HANNA CEO, COAST 0 350257 0 206552 0 68609 0 109042 0 17927 0 752387 0 124098 Alexander Leighton Physician 207112 0 0 0 5632 0 11063 0 31000 0 254807 0 0 0 Petre Motiu Physician 320000 0 0 0 2564 0 13792 0 25710 0 362066 0 0 0 GARY HUBSCHMAN CFO (PART YEAR) 0 234055 0 99875 0 11318 0 42382 0 12618 0 400248 0 45299 JASON FULROTH PHYSICIAN 182569 0 0 0 1844 0 9589 0 18826 0 212828 0 0 0 SCHEDULE J, PART I, LINE 1A TAX INDEMNIFICATION: STANDARD POLICY FOR ALL SUTTER HEALTH EMPLOYEES IS THAT NON-CASH GIFTS AND AWARDS ARE GROSSED-UP FOR TAX PURPOSES. THE AMOUNT OF THE GROSS-UP IS ADDED TO THE EMPLOYEES WAGES AND TAXED ACCORDINGLY. SCHEDULE J, PART I, LINE 3 SUPPLEMENTAL COMPENSATION INFORMATION: THE CEO OF THIS ORGANIZATION IS AN EMPLOYEE OF SUTTER HEALTH, A RELATED TAX-EXEMPT ORGANIZATION. THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTERS EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATIONS OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH. SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN: THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTHS OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN. SUTTERS PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTH EMPLOYEES IS A COMBINATION OF SOCIAL SECURITY, 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. ADDITIONALLY, QUALIFIED PLAN BENEFITS CAPS HAVE THE EFFECT OF SUBSTANTIALLY REDUCING RETIREMENT BENEFITS THAT ARE OTHERWISE PROVIDED TO ALL EMPLOYEES. THE EFFECT IS THAT EXECUTIVES OFTEN DO NOT RECEIVE THE SAME LEVEL OF RETIREMENT BENEFIT ON AN INCOME REPLACEMENT BASIS AS OTHER EMPLOYEES. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT AND TO ADDRESS THE SHORTFALLS DESCRIBED ABOVE, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA HAS TWO PARTS: (1) 4% TO 7% OF BASE SALARY (COMMENSURATE WITH MANAGEMENT LEVEL), PLUS (2) A CONTRIBUTION STARTING AT 5% (BASED UPON TENURE) FOR ELIGIBLE EARNINGS BEYOND THE IRS DEFINITION OF INCLUDIBLE COMPENSATION ("PENSION PAY CAP"). THE LATTER OF WHICH IS DESIGNED TO HELP RESTORE LOST PENSION BENEFITS FORFEITED UNDER THE QUALIFIED PLAN FOR EARNINGS OVER THE PENSION PAY CAP LIMIT. CONTRIBUTIONS ARE ALSO MADE FOR A SMALL GROUP OF SENIOR LEVEL EXECUTIVES WHOSE ESTIMATED RETIREMENT BENEFIT (SOCIAL SECURITY PLUS QUALIFIED PLAN BENEFITS PLUS 457(F)) FALLS BELOW 50% - 65% OF FINAL 4-YEAR AVERAGE BASE SALARY WHEN RETIRING AT AGE 65 WITH 22.5 YEARS OF SERVICE. TARGET BENEFIT LEVELS ARE DISCOUNTED FOR YEARS OF SERVICE LESS THAN 22.5 AT AGE 65. UNLIKE SUTTER HEALTHS QUALIFIED PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTERS NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT. SCHEDULE J, PART I, LINE 7 NON-FIXED PAYMENTS: SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD BUT THE AMOUNT TENDS TO NOT EXCEED 5% TO 10% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP) THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, REGION, AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. A PORTION OF THE PLAN AWARD IS DISCRETIONARY IN THAT THE SUPERVISOR MAY ADD UP TO 5% TO THE AWARD PROVIDED THE TOTAL AWARD (FORMULA PORTION PLUS DISCRETIONARY) DOES NOT EXCEED THE MAXIMUM ESTABLISHED FOR ANY GIVEN EXECUTIVE. LONG TERM PERFORMANCE PLANS SUTTER HEALTH ALSO EMPLOYS LONG TERM PERFORMANCE PLANS WHICH ARE DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTERS LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS. THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. TO ENSURE THAT EXTRAORDINARY EFFORTS BY INDIVIDUALS CAN BE RECOGNIZED AND THAT ACTIONS OF LEADERSHIP ARE CONSISTENT WITH SUPPORTING SUTTER HEALTHS OVERALL MISSION, VISION, AND VALUES, SUTTERS LONG TERM INCENTIVE PLAN APPROACH ALSO INCORPORATES A COMBINATION OF CEO AND SUTTER HEALTH COMPENSATION COMMITTEE DISCRETION. IN SOME CASES, THE SUTTER HEALTH COMPENSATION COMMITTEE HAS DELEGATED AUTHORITY TO THE PRESIDENT & CEO TO MODIFY INDIVIDUAL AWARDS WITHIN LIMITS THAT HAVE BEEN PRE-APPROVED BY THE SUTTER HEALTH COMPENSATION COMMITTEE. THIS INCLUDES BOTH THE REDUCTION AND INCREASE OF AWARD AMOUNTS. SUCH MODIFICATIONS GENERALLY DO NOT EXCEED +/- 20% AND ARE EMPLOYED JUDICIOUSLY. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED PRIOR TO PAYMENT BY THE COMPENSATION COMMITTEE. A CSCDA 2011C 680164610 1307954U8 2011-12-22 38777964 REFUNDING 99, 90 & 89 false false false A 0 0 38777964 0 0 38777964 0 0 0 0 0 0 true false true true A 0 A false true false false false false 0 false 0 false true A true SCHEDULE K THE ORGANIZATIONS SOLE CORPORATE MEMBER IS A CONDUIT BORROWER OF TAX-EXEMPT BOND ISSUES THAT ALLOCATES PORTIONS OF EACH ISSUE TO CERTAIN SUBSIDIARY ORGANIZATIONS, INCLUDING THE ORGANIZATION. THE OUTSTANDING BOND LIABILITY ALLOCATED TO THIS ORGANIZATION IS REPORTED ON FORM 990, PART X, BALANCE SHEET, AND PART VI HEREIN. WITH THE EXCEPTION OF THIS PORTION OF PART VI, THE SCHEDULE K FOR THIS ORGANIZATION IS REPORTING INFORMATION FOR THE ENTIRE BOND ISSUE. SCHEDULE K, PART I, LINE A, COLUMN (E) THE FILING ORGANIZATION RECEIVED BOND PROCEEDS IN THE AMOUNT OF: $13,060,704 FROM THE 2011C ISSUE. SCHEDULE K, PART I, LINE A, COLUMN (F) REFUNDED 1999 CERTIFICATES WHICH REFUNDED 1990 AND 1989 BONDS. SCHEDULE K, PART II, LINE 7 ISSUANCE COSTS WERE FUNDED THROUGH EQUITY CONTRIBUTIONS. FORM 990, PART I, LINE 1 AND PART III, LINE 1 MISSION STATEMENT: WE ENHANCE THE WELL-BEING OF PEOPLE IN THE COMMUNITIES WE SERVE, THROUGH A NOT-FOR-PROFIT COMMITMENT TO COMPASSION AND EXCELLENCE IN HEALTH CARE SERVICES. FORM 990, PART III, LINE 4A EXEMPT PURPOSE ACHIEVEMENTS: SUTTER COAST HOSPITAL IS THE SOLE COMMUNITY PROVIDER LOCATED IN THE DEL NORTE COUNTY SEAT OF CRESCENT CITY, CALIFORNIA. SUTTER COAST SERVES A POPULATION OF OVER 40,000 STRETCHED ALONG 80 MILES OF PACIFIC NORTHWEST COASTLINE FROM SOUTH OF CRESCENT CITY, CALIFORNIA TO GOLD BEACH, OREGON. A COMMUNITY-BASED BOARD OF TRUSTEES GOVERNS SUTTER COAST HOSPITAL. SUTTER COAST HOSPITAL IS A 49-BED ACUTE CARE FULL SERVICE HOSPITAL OFFERING CRITICAL CARE, EMERGENCY SERVICES, FAMILY PRACTICE, OBSTETRICS, GYNECOLOGY, INTERNAL MEDICINE, ORTHOPEDICS, OPHTHALMOLOGY, RADIOLOGY, UROLOGY, OTOLARYNGOLOGY AND SURGERY SERVICES. THE HOSPITAL ALSO OFFERS PHYSICAL AND RESPIRATORY THERAPY, A FULL SERVICE COMPUTERIZED LABORATORY, SOCIAL SERVICES AND A CLINICAL PHARMACY. OTHER SPECIALIZED SERVICES INCLUDE AMBULATORY/URGENT CARE, CORONARY CARE, CARDIOPULMONARY, PRENATAL CARE AND EEG/EKG. THERE WERE 6,271 PATIENT DAYS IN 2015. FORM 990, PART VI, LINE 1A THE AFFAIRS AND MANAGEMENT OF SUTTER COAST HOSPITAL (SCH) ARE SUPERVISED BY THE EXECUTIVE COMMITTEE WHICH HAS POWER TO TRANSACT ALL REGULAR BUSINESS OF SCH DURING THE PERIOD BETWEEN MEETINGS OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE CONSISTS OF SCH'S CHAIR WHO SHALL SERVE AS CHAIR OF THE COMMITTEE, THE VICE CHAIR, THE CHAIR OF THE FINANCE AND PLANNING COMMITTEE, THE SENIOR DESIGNATED DIRECTOR (OR HIS/HER DESIGNEE, AS LONG AS SUCH DESIGNEE IS A DIRECTOR OF THE CORPORATION), THE SECRETARY, AND THE CHIEF EXECUTIVE OFFICER. FORM 990, PART VI, LINES 6 & 7A DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS: THIS CORPORATION IS AN AFFILIATE OF SUTTER HEALTH, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION. SUTTER HEALTH IS THE SOLE MEMBER WITH THE RIGHT TO ELECT AT LEAST A MAJORITY OF THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, LINE 7B DESCRIPTION OF CLASSES OF PERSONS, DECISIONS REQUIRING APPROVAL & TYPE OF VOTING RIGHTS: SUTTER HEALTH AS THE SOLE MEMBER OF THE ORGANIZATION IS ENTITLED TO EXERCISE FULLY ALL RIGHTS AND PRIVILEGES OF MEMBERS OF NONPROFIT CORPORATIONS UNDER THE CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION LAW, AND ALL OTHER APPLICABLE LAWS. THE MEMBER HAS THE RIGHTS AND POWERS TO APPOINT (AND REMOVE) MEMBERS OF THE CORPORATION'S BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE BYLAWS. IN ADDITION, THE MEMBER HAS THE RIGHT TO APPROVE THE FOLLOWING ACTIONS OF THE CORPORATION'S BOARD OF DIRECTORS: A. MERGER, CONSOLIDATION, REORGANIZATION, OR DISSOLUTION OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; B. AMENDMENT OR RESTATEMENT OF THE ARTICLES OF INCORPORATION OR THE BYLAWS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; C. ADOPTION OF OPERATING BUDGETS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY, INCLUDING CONSOLIDATED OR COMBINED BUDGETS OF THE CORPORATION AND ALL SUBSIDIARY ORGANIZATIONS OF THE CORPORATION; D. ADOPTION OF CAPITAL BUDGETS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; E. AGGREGATE OPERATING OR CAPITAL EXPENDITURES ON AN ANNUAL BASIS THAT EXCEED APPROVED OPERATING OR CAPITAL BUDGETS BY A SPECIFIED DOLLAR AMOUNT TO BE DETERMINED FROM TIME TO TIME BY THE GENERAL MEMBER; F. LONG-TERM OR MATERIAL AGREEMENTS INCLUDING, BUT NOT LIMITED TO, BORROWINGS, EQUITY FINANCINGS, CAPITALIZED LEASES AND INSTALLMENT CONTRACTS; AND PURCHASE, SALE, LEASE, DISPOSITION, HYPOTHECATION, EXCHANGE, GIFT, PLEDGE, OR ENCUMBRANCE OF ANY ASSET, REAL OR PERSONAL, WITH A FAIR MARKET VALUE IN EXCESS OF A DOLLAR AMOUNT TO BE DETERMINED FROM TIME TO TIME BY THE DIRECTORS OF THE GENERAL MEMBER, WHICH SHALL NOT BE LESS THAN 10% OF THE TOTAL ANNUAL CAPITAL BUDGET OF THE CORPORATION; G. APPOINTMENT OF AN INDEPENDENT AUDITOR AND HIRING OF INDEPENDENT COUNSEL EXCEPT IN CONFLICT SITUATIONS BETWEEN THE GENERAL MEMBER AND THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; H. THE CREATION OR ACQUISITION OF ANY SUBSIDIARY OR AFFILIATE ENTITY; I. CONTRACTING WITH AN UNRELATED THIRD PARTY FOR ALL OR SUBSTANTIALLY ALL OF THE MANAGEMENT OF THE ASSETS OR OPERATIONS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; J. APPROVAL OF MAJOR NEW PROGRAMS AND CLINICAL SERVICES OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. THE GENERAL MEMBER SHALL FROM TIME TO TIME DEFINE THE TERM "MAJOR" IN THIS CONTEXT; K. APPROVAL OF STRATEGIC PLANS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY; L. ADOPTION OF QUALITY ASSURANCE POLICIES NOT IN CONFORMITY WITH POLICIES ESTABLISHED BY THE GENERAL MEMBER; M. ANY TRANSACTION BETWEEN THE CORPORATION, A SUBSIDIARY OR AFFILIATE AND A DIRECTOR OF THE CORPORATION OR AN AFFILIATE OF SUCH DIRECTOR. IN ADDITION, THE GENERAL MEMBER SHALL HAVE THE AUTHORITY (BY A VOTE OF NOT LESS THAN TWO-THIRDS (2/3) OF ITS BOARD), TO DECLARE A MAJOR ACTIVITY REQUIRING APPROVAL. FORM 990, PART VI, LINE 11B DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW FORM 990: SUTTER HEALTH, A RELATED TAX-EXEMPT ORGANIZATION, HAS A CENTRALIZED TAX DEPARTMENT RESPONSIBLE FOR THE PREPARATION OF THE FORM 990. ANNUALLY THE TAX DEPARTMENT PROVIDES TRAINING AND EDUCATION TO AFFILIATE PERSONNEL WHO ASSIST THE TAX DEPARTMENT IN COLLECTING AND REVIEWING DATA TO BE REPORTED ON THE FORM 990. THE PREPARATION MATERIAL IS REVIEWED BY VARIOUS DEPARTMENTS INCLUDING TAX, FINANCE, LEGAL, AND HUMAN RESOURCES. A NATIONAL ACCOUNTING FIRM PREPARES AND/OR REVIEWS THE RETURN. A COMPLETED RETURN IS THEN REVIEWED BY THE TAX DEPARTMENT, THE AFFILIATE, AND THE CFO BEFORE THE RETURN IS FILED. A COPY OF THE FORM 990 HAS BEEN PROVIDED TO ALL MEMBERS OF THE GOVERNING BODY BEFORE FILING THE FORM. FORM 990, PART VI, LINE 12 DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST: EMPLOYEES ARE EDUCATED ON THE CONFLICT OF INTEREST POLICY AND THE NEED TO MAKE DISCLOSURE AS PART OF ANNUAL COMPLIANCE EDUCATION. IN ADDITION, ANNUALLY A DISCLOSURE STATEMENT IS COMPLETED BY ALL DIRECTORS AND OFFICERS THAT INCLUDES AN ACKNOWLEDGEMENT THAT THEY HAVE READ THE CONFLICT OF INTEREST POLICY. ON THIS STATEMENT THE INDIVIDUAL WILL LIST A WIDE RANGE OF INFORMATION WHICH INCLUDES BUSINESS RELATIONSHIPS, EMPLOYMENT RELATIONSHIPS, PROPERTY INTERESTS, AND THOSE OF RELATED PARTIES. THE CEO AND BOARD CHAIR WILL REVIEW THE STATEMENTS AND MONITOR SITUATIONS THAT MAY POSE A POTENTIAL CONFLICT OF INTEREST. THE CEO AND BOARD CHAIR MAY CONSULT WITH THE OFFICE OF THE GENERAL COUNSEL AS NECESSARY. IF THERE IS A POTENTIAL CONFLICT OF INTEREST RELATED TO A PARTICULAR TRANSACTION, THE INTERESTED INDIVIDUAL MUST DISCLOSE THE EXISTENCE AND NATURE OF THE RELATIONSHIP. THE BOARD CHAIR MAY APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE THE CONFLICT. UNTIL THE POTENTIAL CONFLICT IS RESOLVED, THE BOARD CHAIR MAY REQUEST THE INDIVIDUAL TO NOT PARTICIPATE DURING RELATED PRESENTATIONS AND DISCUSSIONS. IN ALL CIRCUMSTANCES INVOLVING AN ACTUAL CONFLICT, THE INTERESTED INDIVIDUAL SHALL REFRAIN FROM VOTING ON ANY MATTER RELATED TO THE TRANSACTION. FORM 990, PART VI, LINES 15A & 15B PROCESS FOR DETERMINING COMPENSATION: THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ENSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTER'S EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATION'S OVERALL MISSION. IN ORDER TO ENSURE EXTERNAL COMPETITIVENESS, NATIONAL, CALIFORNIA AND LOCAL MARKET AREA COMPENSATION DATA COMPARISONS ARE REVIEWED. COMPETITIVE ANALYSIS INCLUDES: (A) BASE SALARY, (B) TOTAL CASH (BASE SALARY + ANNUAL INCENTIVE) AND (C) TOTAL REMUNERATION (BASE SALARY + ANNUAL INCENTIVE + BENEFITS AND LONG TERM INCENTIVE). THIS ANALYSIS INCLUDES COMPARABLE ORGANIZATIONS AND GEOGRAPHIC CONSIDERATIONS. FOR THE MOST SENIOR EXECUTIVE POSITIONS, NATIONAL COMPARISONS FOR ORGANIZATIONS SIMILAR IN SIZE, SCOPE AND COMPLEXITY AS SUTTER HEALTH ARE MOST APPROPRIATE SINCE IT IS A NATIONAL MARKETPLACE IN WHICH SUTTER COMPETES FOR EXECUTIVE TALENT. ON THE OTHER HAND, BECAUSE CALIFORNIA'S UNDERLYING COMPENSATION STRUCTURE IS HIGHER THAN NATIONAL DATA (ESPECIALLY IN THE BAY AREA), REGIONAL PAY COMPARISONS AND ADJUSTMENTS ARE MADE. OFFICERS AND KEY EMPLOYEES OF THIS ORGANIZATION WHO ARE SUTTER HEALTH EMPLOYEES UNDERGO A REVIEW AND COMPENSATION COMMITTEE APPROVAL, AND SUCH APPROVAL IS RECORDED IN THE MINUTES. THE COMPENSATION REVIEW PROCESS WAS LAST COMPLETED IN DECEMBER OF 2015. FORM 990, PART VI, LINE 19 AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, & FINANCIAL STATEMENTS TO GENERAL PUBLIC: THE SUTTER HEALTH SYSTEM POSTS ITS CURRENT AND PAST AUDITED FINANCIAL STATEMENTS AT SUTTERHEALTH.ORG. OTHER DOCUMENTS ARE ALSO LOCATED AT THIS WEBSITE INCLUDING THE ANNUAL REPORT, MISSION STATEMENT, HISTORY, AND LINKS TO AFFILIATE WEBSITES. THE GOVERNING DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS: EQUITY TRANSFERS (NET) $(10,793,275) FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES - PHYSICIANS TOTAL FEES:4624628 FORM 990 PART IX LINE 11G DESCRIPTION:NURSE REGISTRY FEES TOTAL FEES:2395930 FORM 990 PART IX LINE 11G DESCRIPTION:THERAPISTS & OTHER MEDICAL TOTAL FEES:863088 ADOLESCENT TREATMENT CENTERS INC C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 680088443 HEALTHCARE CA 501(C)(3) 3 SUTTER EBH true BETTER HEALTH EAST BAY FOUNDATION C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 510160184 FUNDRAISING CA 501(C)(3) 7 SUTTER EBH true CALIFORNIA PACIFIC MEDICAL CTR FOUND C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942728423 FUNDRAISING CA 501(C)(3) 7 SUTTER WBH true EAST BAY PERINATAL CENTER 3012 SUMMIT STREET 3RD FLOOR OAKLAND CA 94609 510172285 HEALTHCARE CA 501(C)(3) 3 SUTTER EBH true EDEN MEDICAL CENTER C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942948100 HEALTHCARE CA 501(C)(3) 9 SUTTER HLTH true MEMORIAL HOSPITAL FOUNDATION C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942290244 FUNDRAISING CA 501(C)(3) 11A - 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