2016-11-10T11:06:38-06:00 2015-12-31 990 2015-01-01 521271901 SENTARA HEALTHCARE SENT 7574557020 6015 POPLAR HALL DRIVE NORFOLK VA 23502 ROBERT A BROERMANN SR VP/CFO/TREASURER 7574557020 2016-11-10 2015 2017-02-10 21:41:12Z HOWARD P KERN 6015 POPLAR HALL DRIVE NORFOLK VA 23502 495300091 0 X WWW.SENTARA.COM X 1982 VA AT SENTARA, WE IMPROVE HEALTH EVERY DAY. 18 17 621 28 1893033 518841 29714011 25243485 76282194 78508928 152162694 118065181 22303584 10148428 280462483 231966022 2073939 22249350 0 0 73808562 81962896 45962 14865 573137 49902651 52518721 125831114 156745832 154631369 75220190 3234702724 3314890142 1837521879 1945116675 1397180845 1369773467 X WE IMPROVE HEALTH EVERY DAY THROUGH COORDINATING, PROMOTING AND PLANNING FOR THE PROVISION OF HEALTH SERVICES AND THE PROMOTION OF HEALTH, MEDICAL EDUCATION, AND THE SOCIAL, CULTURAL, EDUCATIONAL, AND ECONOMIC DEVELOPMENT OF THE COMMUNITY. 0 0 128654417 22249350 86764323 SEE SCHEDULE O. 128654417 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 1 0 1 X 191 0 1 621 1 1 1 1 CJ 0 0 0 0 0 0 0 0 X 18 17 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 1 1 0 X CORPORATE OFFICERS 7574557020 6015 POPLAR HALL DR NORFOLK VA 23502 WILLIAM L ACHENBACH DIRECTOR 1.00 2.00 X 0 0 0 JOHN AGOLA DIRECTOR 1.00 1.00 X 0 0 0 DAVID L BERND CEO/DIRECTOR 40.00 11.20 X X 3297673 0 78898 JOAN P BROCK DIRECTOR 1.00 1.00 X 0 0 0 DIAN T CALDERONE DIRECTOR 1.00 2.00 X 0 0 0 FREDERICK C COBLE DIRECTOR 1.00 1.00 X 0 0 0 LAWRENCE G CUMMING DIRECTOR 1.00 1.00 X 0 0 0 JACK L EZZELL JR DIRECTOR 1.00 1.00 X 0 0 0 ROBERT C FORT DIRECTOR/CHAIRMAN (THRU 10/15) 2.00 1.00 X X 0 0 0 L ALVIN GARRISON JR DIRECTOR 1.00 1.00 X 0 0 0 J LES HALL DIRECTOR (EFFEC 11/15) 1.00 1.00 X 0 0 0 RICHARD O HARRELL III DIRECTOR (RESIGNED 1/29/15) 1.00 2.00 X 0 0 0 HENRY U HARRIS III DIRECTOR/VICE CHAIRMAN/CHAIRMAN (EFFEC 11/15) 2.00 2.00 X X 0 0 0 ANN E C HOMAN DIRECTOR 1.00 3.20 X 0 0 0 CHARLES F LOVELL JR MD DIRECTOR 1.00 1.00 X 0 900 0 L ALLAN PARROTT JR DIRECTOR (EFFEC 11/15) 1.00 1.00 X 0 0 0 PETER D PRUDEN III DIRECTOR/VICE CHAIRMAN (EFFEC 11/15) 2.00 2.00 X X 0 0 0 MARC B SHARP DIRECTOR (THRU 11/15) 1.00 2.00 X 0 0 0 CAROL C THOMAS DIRECTOR (EFFEC 5/15) 1.00 6.00 X 0 0 0 MARION WALL DIRECTOR 1.00 1.00 X 0 0 0 THOMAS L WOODWARD DIRECTOR (THRU 11/15) 1.00 1.00 X 0 0 0 ROBERT A BROERMANN CFO 40.00 11.00 X 2302226 0 30888 HOWARD P KERN COO/PRESIDENT 40.00 10.20 X 3162206 0 1734160 JEFFREY P KING SECRETARY 40.00 7.00 X 644028 0 86140 SAMUEL J HAWLEY ASSIST. SECRETARY (EFFEC 11/15) 40.00 2.00 X 146046 0 20892 MICHAEL M DUDLEY KE (SHC SVP & PRESIDENT, SHP) 10.00 41.00 X 973032 0 1377319 VICKY G GRAY KE (SVP, SYSTEM DEVELOPMENT) 40.00 1.00 X 825987 0 40796 TERRY M GILLILAND MD KE (SVP & CMO) 40.00 5.20 X 1300255 0 148987 KENNETH M KRAKAUR KE (SVP & PRESIDENT PENINSULA REGION) 40.00 1.00 X 538319 0 49075 MICHAEL V TAYLOR KE (SVP HUMAN RESOURCES) 40.00 0.00 X 1284419 0 33270 LESTER R ELJAIEK VP, HOSPITAL FINANCE 40.00 0.00 X 466600 0 51833 MEGAN R PERRY CVP, MERGERS & ACQUISITIONS 40.00 1.00 X 763626 0 209846 DOUGLAS M THOMPSON VP, DECISION SUPPORT 40.00 0.00 X 600866 0 40171 GRACE R HINES CVP, SYSTEM INTERGRATION 40.00 0.00 X 574798 0 29808 GARY R YATES MD PRESIDENT, SHC QUALITY CARE NETWORK 40.00 0.00 X 530804 0 64016 VIKKI CHARLES VP, CORP FINANCE 40.00 0.00 X 398119 0 49251 MARY L BLUNT FORMER OFFICER 0.00 41.00 X 0 956958 57500 MICHAEL V GENTRY FORMER OFFICER 0.00 47.00 X 0 916949 108495 DAVID R MAIZEL MD FORMER OFFICER 0.00 0.00 X 454414 0 61540 GENEMARIE W MCGEE FORMER OFFICER 0.00 40.00 X 0 374903 55803 BERTRAM S REESE FORMER OFFICER 0.00 40.00 X 0 950428 -12956 18263418 3200138 4315732 133 1 1 0 PMA COMPANIES P O BOX 824857 PHILADELPHIA PA 19182 COMMERCIAL INSURANCE UNDERWRITER 2946872 EPAM SYSTEMS INC P O BOX 822469 PHILADELPHIA PA 19182 SOFTWARE ENGINEERING 1752566 TRUVEN HEALTH ANALYTICS INC P O BOX 95334 CHICAGO IL 60694 HEALTHCARE CONSULTANTS 1632836 KPMG P O BOX 71544 CHICAGO IL 60694 PROFESSIONAL SERVICES 1527711 TOWERS WATSON INC P O BOX 277665 ATLANTA GA 303847665 PROFESSIONAL SERVICES 999989 59 23955232 1288253 25243485 SUPPORT SERVICES 900099 78285418 77041698 1243720 WORKING DESIGN 900099 223510 214821 8689 78508928 43487068 43487068 337912182 263334069 74578113 74578113 74578113 INTERCO INTEREST CHARGES 900099 7198404 7198404 PROPERTY MANAGEMENT FEES 900099 964900 962285 2615 EARNINGS FROM ALT. INV. 524298 638009 638009 1347115 1347115 10148428 231966022 86764323 1893033 118065181 21856588 21856588 392762 392762 18593048 14316647 4276401 269207 207289 61918 44471117 34003344 10156843 310930 5748212 4404114 1315515 28583 9101501 6973338 2082945 45218 3779811 2893278 864226 22307 4780999 3681369 1099630 615252 473744 141508 1106977 852372 254605 44279 34095 10184 14865 14865 9535406 7342263 2193143 7147282 6118407 1020875 8000 5973843 4589809 1370982 13052 3382200 2569429 767492 45279 2806416 2160940 645476 1272113 979527 292586 559372 430716 128656 145918 112357 33561 10707654 10704609 3045 486157 374341 111816 39896 30720 9176 UNRELATED BUSINESS TAX 500000 500000 PURCHASED & CONTRACTED 1969141 1456422 435035 77684 ORGANIZATIONAL DUES 1583152 1219027 364125 TAXES & LICENSES 589844 454180 135664 -727180 -477270 -257129 7219 156745832 128654417 27518278 573137 470480613 507278591 678294 1023163 146659181 142078291 4208298 6790293 21999932 16459471 5026581 5540461 2015116613 1951785436 444047828 625588824 148485316 74805083 3234702724 3314890142 147954335 202520295 787988 31586130 22375 1295306260 1272889487 393450921 438120763 1837521879 1945116675 X 1394370485 1366147634 2810360 3625833 1397180845 1369773467 3234702724 3314890142 X 75220190 -150381164 47753596 X 0 1 X 1 0 X 66189186 21133614 29774513 29714011 25243485 172054809 66189186 21133614 29774513 29714011 25243485 172054809 172054809 40093753 42959801 40863885 57200957 43487068 224605464 866623 1182283 619603 697409 342235 3708153 400368426 0.42970 0.42050 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 0 0 1 52649 1 1 234616 287265 0 PART II-B, LINE 1: THE ORGANIZATION ENGAGED IN THE DISSEMINATION OF INFORMATION CONCERNING HEALTH CARE LEGISLATION TO EMPLOYEES VIA EMAIL. THE ORGANIZATION IS INVOLVED IN INDIRECT LOBBYING ACTIVITIES THROUGH PAYMENT OF MEMBERSHIP DUES TO VHHA AND AHA. FURTHERMORE, THE ORGANIZATION ENGAGED VECTRE CORPORATION TO MONITOR AND PROVIDE CONSULTATION ON FEDERAL, STATE, AND LOCAL HEALTH CARE LEGISLATION. 80469527 1288253 -224709 165000 394907 80973164 77170379 1048397 2784835 450000 84084 80469527 71429647 783033 5356116 190000 208417 77170379 61588154 612380 9724182 210000 285069 71429647 73911554 492273 -12427191 187348 201134 61588154 0.95520 0.04480 0 0 2493820 2493820 4519793 3745551 774242 228337 228337 0 13858643 12086177 1772466 899339 399406 499933 5540461 JPMORGAN MULTI STRATEGY FUND 26816897 F OAKTREE MEZZANINE FUND II 744483 F UBS TRUMBULL PROPERTY INCOME FUND 153957732 F UBS TRUMBULL PROPERTY FUND 74210748 F OAKTREE REAL ESTATE OPPORTUNITIES FUND IV 4496452 F OAKTREE REAL ESTATE OPPORTUNITIES FUND V 7291607 F HEALTH ENTERPRISES PARTNERS I, LP 1351455 F SANTE HEALTH VENTURES I, LP 3181346 F SANTE HEALTH VENTURES II, LP 2580448 F POINTER OFFSHORE LTD - HEDGE FUND 27254093 F HEALTH ENTERPRISES PARTNERS II, LP 1581161 F OAKTREE PRIVATE INVESTMENT FUND 2012 23204776 F PIMCO BRAVO II FUND 17854028 F TTCP FUND I LP 3333654 F PELOTON EQUITY FUND I LP 1829710 F OAKTREE PRINCIPAL OPPORTUNITIES FD IV, L.P. 3602750 F PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION FUND LLC 121270648 F HIGHLAND PUBLIC INFLATION HEDGE 151026836 F 625588824 DUE TO AFFILIATES 7435332 OTHER LT LIABILITIES 111468838 OTHER CURRENT LIABILITIES 31703407 RETIREMENT OBLIGATIONS 277513186 SELF-INSURANCE RESERVE 10000000 438120763 PART V, LINE 4: INTENDED USES OF ENDOWMENT FUND THE BOARD DESIGNATED ENDOWMENT FUND IS SET ASIDE FOR THE SENTARA FOUNDATION'S USE. THE FOUNDATION ASSISTS THE COMMUNITY WITH FILLING THE HEALTH CARE GAPS, DEVELOPING NEW PROGRAMS, AND BUILDING CONSENSUS AROUND CURRENT HEALTH ISSUES. THE TEMPORARILY RESTRICTED ENDOWMENT FUNDS ARE USED PREDOMINANTLY FOR EDUCATION & RESEARCH, HOSPICE HOUSE, HEART FUNDS AND SENTARA'S HOPE FUND, WHICH IS AN EMERGENCY FINANCIAL RESOURCE FOR SENTARA EMPLOYEES THAT ARE EXPERIENCING CATASTROPHIC HARDSHIP OR LOSS THROUGH NO FAULT OF THEIR OWN. CENTRAL AMERICA AND THE CARIBBEAN 0 0 UNRELATED TRADE OR BUSINESS CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 62170192 0 0 0 0 0 0 62170192 0 62170192 1 0 1 1 1 0 PART I, LINE 3 CENTRAL AMERICA AND THE CARIBBEAN, UNRELATED TRADE OR BUSINESS: THE ORGANIZATION OWNS BAY PRIMEX INSURANCE COMPANY, LTD., A CAPTIVE INSURANCE COMPANY WHOSE PRINCIPAL ACTIVITY IS THE REINSURANCE, ON A FACULTATIVE BASIS, OF A MODIFIED CLAIMS-MADE RETROSPECTIVELY RATED PROFESSIONAL AND COMMERCIAL GENERAL LIABILITY INSURANCE POLICY ISSUED BY LEXINGTON INSURANCE COMPANY. COVERAGE INCLUDES THE EMPLOYEES OF THE ORGANIZATION, ITS CONTROLLED SUBSIDIARIES, ITS AFFILIATED JOINT VENTURES, CERTAIN PHYSICIANS ON THE MEDICAL STAFF OF ITS RELATED FACILITIES, AND SOME NON-EMPLOYED PHYSICIANS. PROVISION OF INSURANCE TO NON-EMPLOYED PHYSICIANS IS TREATED AS AN UNRELATED TRADE OR BUSINESS. TO THE EXTENT THERE IS SUBPART F INCOME, IT IS REPORTED AS SUCH ON FORM 990 PART VIII LINE 11. 1 ACCESS PARTNERSHIP P O BOX 41093 NORFOLK VA 23541 201830252 501(C)(3) 77500 HEALTHCARE ACCESS TO UNDERINSURED ALZHEIMERS ASSOCIATION 6350 CENTER DR NORFOLK VA 23502 133039601 501(C)(3) 10000 PROVIDE CARE AND SUPPORT FOR ALL AFFECTED BY ALZHEIMERS DISEASE AMERICAN CANCER SOCIETY 4416 EXPRESSWAY DR VIRGINIA BEACH VA 23452 580659875 501(C)(3) 10000 SUPPORTS RESEARCH, EDUCATION, ADVOCACY AND SERVICE FOR THOSE AFFECTED BY CANCER AMERICAN HEART ASSOCIATION 4669 SOUTH BLVD VIRGINIA BEACH VA 23452 135613797 501(C)(3) 30000 PROMOTE CARDIOVASCULAR HEALTH ANGELS OF MERCY INC 7151 RICHMOND ROAD SUITE 401 WILLIAMSBURG VA 23188 541901759 501(C)(3) 8000 REDESIGN PRIMARY CARE TO MEET NEEDS OF UNINSURED AND UNDERINSURED BEACH HEALTH CLINIC 3396 HOLLAND RD STE 102 VIRGINIA BEACH VA 23452 541366960 501(C)(3) 25000 DIAGNOSTIC AND PHARMACY SERVICES FOR INDIGENT BOYS AND GIRLS CLUBS 11825 ROCK LANDING DRIVE CHESAPEAKE BUILDING STE B NEWPORT NEWS VA 23606 540538202 501(C)(3) 15000 INSPIRE AND ENABLE YOUNG PEOPLE CATHOLIC CHARITIES OF EASTERN VA 5361 A VIRGINIA BEACH BLVD VIRGINIA BEACH VA 23462 540505879 501(C)(3) 15000 MENTAL HEALTH SERVICES CHESAPEAKE CARE INC 2145 S MILITARY HWY CHESAPEAKE VA 23320 541642754 501(C)(3) 25000 HEALTHCARE FOR UNINSURED CHILDREN'S HEALTH INVESTMENT PROGRAM 1302 JEFFERSON ST CHESAPEAKE VA 23324 541893166 501(C)(3) 12000 ORAL HEALTH PROGRAM FOR CHILDREN CIVIC LEADERSHIP INSTITUTE 4211 MONARCH WAY SUITE 116 NORFOLK VA 23508 541725580 501(C)(3) 7500 PROMOTE COMMUNITY LEADERSHIP COMMUNITY FREE CLINIC OF NEWPORT NEWS 727 25TH STREET NEWPORT NEWS VA 23607 273510814 501(C)(3) 25000 NEW CLINIC CONTRIBUTION EVMS 700 WEST OLNEY RD NORFOLK VA 23507 546055378 501(C)(3) 20500000 MEDICAL EDUCATION AND HEALTH SERVICES FORKIDS INC P O BOX 6044 NORFOLK VA 23508 541477799 501(C)(3) 25000 HEALTHCARE FOR HOMELESS SHELTER GHENT AREA MINISTRY 1301 COLONIAL AVENUE STE 2 NORFOLK VA 23517 260082182 501(C)(3) 10000 RESOURCES AND FINANCIAL AID FOR THE POOR GLOUCESTER-MATHEWS FREE CLINIC 2276 GEORGE WASHINGTON MEM HWY HAYES VA 23072 541875619 501(C)(3) 25000 HEALTHCARE FOR INDIGENTS HAMPTON ECUMENICAL LODGINGS AND PROVISIONS INC P O BOX 190 HAMPTON VA 23669 541209213 501(C)(3) 15000 DENTAL CARE FOR INDIGENTS HAMPTON ROADS COMMUNITY HEALTH CENTER 664 LINCOLN STREET PORTSMOUTH VA 23704 541626757 501(C)(3) 68000 HEALTHCARE PROVIDER FOR LOW INCOME AND UNINSURED LACKEY FREE CLINIC 1620 OLD WILLIAMSBURG RD YORKTOWN VA 23690 541850915 501(C)(3) 25000 HEALTHCARE FOR INDIGENTS LEES FRIENDS 7400 HAMPTON BLVD NORFOLK VA 23505 541533488 501(C)(3) 7500 HELP AND SUPPORT CANCER PATIENTS AND THEIR FAMILIES MOTHER SETON HOUSE 3333 VIRGINIA BEACH BLVD STE 28 VIRGINIA BEACH VA 23452 541250483 501(C)(3) 20000 HIGH-RISK TEEN MENTAL HEALTHCARE NEPTUNE FESTIVAL 265 KINGS GRANT ROAD STE 102 VIRGINIA BEACH VA 23452 521372330 501(C)(3) 25000 COMMUNITY ENJOYMENT AND ENRICHMENT NORTHERN NECK FREE HEALTH CLINIC PO BOX 1694 KIMARNOCK VA 22482 541679279 501(C)(3) 20000 PROVIDES CLINICAL SERVICE TO LOW-INCOME, UNINUSRED RESIDENTS OLDE TOWN MEDICAL CTR 5249 OLDE TOWNE RD STE D WILLIAMSBURG VA 23188 541663905 501(C)(3) 25000 PEDIATRIC DENTAL SERVICES PARK PLACE HEALTH AND DENTAL CLINIC 606 W 29TH ST NORFOLK VA 23508 453086608 501(C)(3) 25000 DENTAL HEALTH NEEDS OF LOW INCOME AND UNINSURED PENINSULA AGENCY ON AGING 739 THIMBLE SHOALS BLVD SUITE 1006 NEWPORT NEWS VA 23606 510151069 501(C)(3) 5500 PROVIDE SERVICES TO ELDERLY, SUCH AS, DELIVERED MEAL, EDUCATION AND RECREATION PIN MINISTRY 557 S BIRDNECK ROAD SUITE 109 VIRGINIA BEACH VA 23451 412126841 501(C)(3) 13000 RESOURCES FOR THE POOR PRIMEPLUS NORFOLK SENIOR CENTER 7300 NEWPORT AVE SUITE 100 NORFOLK VA 23505 541118218 501(C)(3) 12000 SUPPORT THE NEEDS OF ADULTS AGE 50 AND OVER EVERY DAY PROJECT CARE OF THE GREATER VIRGINIA PENISULA 416 J CLYDE MORRIS BLVD NEWPORT NEWS VA 23601 273518508 501(C)(3) 10000 ASSISTS LOW-INCOME, UNINSURED RESIDENTS ACCESS MEDICAL CARE PIEDMONT HEALTHCARE FOUNDATION 2001 PEACHTREE RD NE ATLANTA GA 30309 581272768 501(C)(3) 10000 BUILD AND OFFER THE MOST EFFECTIVE HEALTHCARE LEADERSHIP PROGRAM RX PARTNERSHIP 2924 EMERYWOOD PKWY STE 300 RICHMOND VA 23294 571186937 501(C)(3) 13000 ACCESS TO FREE MEDICATION SAMARITAN HOUSE INC 2620 SOUTHERN BLVD VIRGINIA BEACH VA 23452 541291021 501(C)(3) 10000 SERVING THE HOMELESS SENIOR SERVICES OF SOUTHEASTERN VIRGINIA 6350 CENTER DR BUILDING 5 NO 101 NORFOLK VA 23502 546069786 501(C)(3) 10000 ASSISTS OLDER PERSONS LOCATE AND ACCESS NEEDED SERVICES SOUTHEASTERN VIRGINIA HEALTH SYSTEM 1033 28TH STREET NEWPORT NEWS VA 23607 541083954 501(C)(3) 25000 LAB AND MEDICAL SERVICES FOR INDIGENTS ST COLUMBA ECUMENICAL MINISTRIES 2414 LAFAYETTE BLVD NORFOLK VA 23509 541394797 501(C)(3) 12000 PRESCRIPTIONS THE VIRGINIA SYMPHONY 150 BOUSH STREET SUITE 201 NORFOLK VA 23510 546000598 501(C)(3) 10000 SUPPORT SYMPHONY IN PERFORMANCES TO BENEFIT THE PUBLIC UNION MISSION MINISTRIES P O BOX 3203 NORFOLK VA 23514 540506427 501(C)(3) 30000 HEALTHCARE FOR HOMELESS UNITED WAY GREATER WILLIAMSBURG 312 WALLER MILL ROAD SUITE 100 WILLIAMSBURG VA 23185 540844073 501(C)(3) 9200 SPONSORSHIP UNITED WAY OF SOUTH HAMPTON ROADS 2515 WALMER ROAD PO BOX 41069 NORFOLK VA 23513 540506322 501(C)(3) 15800 SPONSORSHIP UNITED WAY OF THE VA PENINSULA 739 THIMBLE SHOALS BLVD SUITE 400 NEWPORT NEWS VA 23606 540535602 501(C)(3) 10000 SPONSORSHIP UP CENTER 222 W 19TH ST NORFOLK VA 23517 540674774 501(C)(3) 12000 MENTORING PROGRAM FOR AT RISK YOUTH VA SUPPORTIVE HOUSING P O BOX 8585 RICHMOND VA 23226 541444564 501(C)(3) 25000 CASE MANAGEMENT FOR HOMELESS VIRGINIA FOUNDATION FOR COMMUNITY COLLEGE EDUCATION INC 101 N 14TH STREET 15TH FLOOR RICHMOND VA 23219 237004354 501(C)(3) 250000 SCHOLARSHIP FUNDING VIRGINIA LIVING MUSEUM 524 J CLYDE MORRIS BLVD NEWPORT NEWS VA 23601 546055922 501(C)(3) 50000 ENCOURAGE KNOWLEDGE, AWARENSS AND APPRECIATION FOR THE BIOLOGICAL AND PHYSICAL WORLD. WESTERN TIDEWATER FREE CLINIC 2019 MEADE PKWY SUFFOLK VA 23434 263302837 501(C)(3) 25000 PROVIDE DENTAL PROGRAM ACCESS WILLIAM AND MARY ATHLETIC EDUCATIONAL FOUNDATION P O BOX 399 WILLIAMSBURG VA 23187 546056480 501(C)(3) 43000 FUNDING FOR ATHLETIC SCHOLARSHIPS VIRGINIA BUSINESS HIGHER ED COUNCIL 1108 E MAIN STREET SUITE 1100 RICHMOND VA 23219 541827038 501(C)(3) 100000 ENHANCE AND PROVIDE FUNDING FOR VIRGINIA EDUCATIONAL INSTITUTIONS 47 CLOTHING 2 690 FOOD 83 13270 HOUSEHOLD ITEMS 5 1950 MORTGAGE 15 16786 RENT 53 74050 TEMPORARY LODGING 2 200 UTILITIES 60 35816 SCHOLARSHIPS 50 250000 0 PART I, LINE 2: SCHEDULE I, PART I, LINE 2: PROCEDURES FOR MONITORING USE OF GRANTS FUNDS IN U.S. PROCEDURES FOR MONITORING USE OF GRANTS FUNDS IN U.S. THE SENTARA FOUNDATION - HAMPTON ROADS, A DIVISION OF THE ORGANIZATION, IS RESPONSIBLE FOR AWARDING AND MONITORING THE USE OF GRANT AND SPONSORSHIP FUNDS DONATED TO OTHER ORGANIZATIONS IN THE COMMUNITY WHO SHARE THE SAME MISSION AS THE ORGANIZATION: IMPROVING HEALTH EVERYDAY THROUGH THE PROVISION OF HEALTH SERVICES, AND THE PROMOTION OF HEALTH, MEDICAL EDUCATION, AND THE SOCIAL, CULTURAL, EDUCATIONAL, AND ECONOMIC DEVELOPMENT OF THE COMMUNITY. COMMUNITY RECOGNITION GRANTS ARE AWARDED ANNUALLY BY THE FOUNDATION'S GRANT COMMITTEE TO OTHER 501(C)(3) ORGANIZATIONS WITHIN THE COMMUNITY AFTER A RIGOROUS APPLICATION AND REVIEW PROCESS. ONCE AWARDED, THE GRANTS ARE DISTRIBUTED THE FOLLOWING YEAR IN TWO PAYMENTS - AT THE BEGINNING OF THE YEAR, THEN AFTER AN INTERIM REPORT HAS BEEN FILED WITH THE FOUNDATION. THE INTERIM REPORT MUST INCLUDE THE GRANT OBJECTIVES, ANY CHANGES IN STATUS OF THE ORGANIZATION'S 501(C)(3) STATUS, DETAILS OF THE GRANT OUTCOMES TO DATE AND COMPLIANCE WITH SUBMITTED FINANCIAL BUDGET. GRANTEES ARE REQUIRED TO SUBMIT WITH THE REPORT A DETAILED LISTING OF MEASUREMENTS INCLUDING THE NUMBER OF PEOPLE SERVED AND INCOME LEVELS. FURTHER, A PLAN OF PROGRAM SUSTAINABILITY MUST BE COMPLETED TO PROMOTE THE INITIATIVE'S GOALS FOR THE FUTURE. COMMUNITY BENEFIT SPONSORSHIPS ARE AWARDED QUARTERLY BASED ON THE RECOMMENDATION OF THE FOUNDATION'S SPONSORSHIP REVIEW COMMITTEE. APPLICANTS MUST SUBMIT A PROPOSAL IN WRITING DEMONSTRATING HOW FUNDS WILL BE USED TO IMPROVE THE HEALTH STATUS OF THE COMMUNITY. SPONSORSHIPS ARE GENERALLY AWARDED TO OTHER 501(C)(3) ORGANIZATIONS WITH ACTIVE COMMUNITY BOARDS WHO OVERSEE THE EXPENDITURE OF SUCH FUNDS. THE SENTARA FOUNDATION - HAMPTON ROADS ALSO ADMINISTERS THE H.O.P.E. (HELPING OVERCOME PERSONAL EMERGENCY) FUND, A PROGRAM FOR EMPLOYEES OF THE SENTARA HEALTHCARE SYSTEM WHO ARE IN NEED OF EMERGENCY ASSISTANCE. THIS PROGRAM IS FUNDED BY DONATIONS FROM EMPLOYEES AND MANAGED BY THE PLANNING COUNCIL, A HUMAN SERVICES AGENCY USED TO PROCESS ALL H.O.P.E. FUND APPLICATIONS TO MAINTAIN CONFIDENTIALITY. EMPLOYEES WHO EXPERIENCE CATASTROPHIC EVENTS THROUGH NO FAULT OF THEIR OWN SUCH AS FIRE, DEATH IN THE FAMILY, FLOODING, HURRICANE, TORNADO, CURRENT PERSONAL ILLNESS OR SERIOUS PERSONAL FAMILY ILLNESS THAT RESULT IN HARDSHIP MAY APPLY FOR ASSISTANCE. APPLICANTS MUST COMPLETE A 3-PAGE APPLICATION FORM. APPLICANTS SUBMIT THESE FORMS ALONG WITH THEIR LATEST PAY STUBS, COPIES OF THE BILLS BEING SUBMITTED FOR PAYMENT, AND OFFICIAL DOCUMENTATION OF THE CATASTROPHIC EVENT. THE PLANNING COUNCIL THEN INTERVIEWS THE APPLICANT AND DETERMINES IF THE GUIDELINES ARE MET FOR ASSISTANCE. IN THE EVENT OF A NATURAL DISASTER, APPLICANTS MUST FIRST APPLY TO OTHER EMERGENCY ASSISTANCE PROGRAMS, SUCH AS THE AMERICAN RED CROSS, SALVATION ARMY, OR F.E.M.A., BEFORE BECOMING ELIGIBLE FOR ASSISTANCE FROM THE H.O.P.E. FUND. A REVIEW COMMITTEE EVALUATES EACH APPLICATION AND DETERMINES ASSISTANCE LEVELS BASED ON DOCUMENTED, APPROPRIATE NEED. FUNDS MAY ONLY BE USED TO PAY EXISTING BILLS OR EXTRAORDINARY EXPENSES RELATED TO A CATASTROPHIC EVENT. BILLS THAT ARE NOT NECESSARY FOR THE PRESERVATION OF DAILY LIVING, INCLUDING NON-ESSENTIAL UTILITIES (I.E., CABLE TV, ETC.), ARE NOT COVERED. PAYMENTS ARE MADE DIRECTLY TO SERVICE PROVIDERS RATHER THAN TO INDIVIDUAL RECIPIENTS. FUNDS ARE ONLY DISTRIBUTED PROVIDED ADEQUATE EMPLOYEE DONATIONS HAVE BEEN MADE BY EMPLOYEES FOR EMPLOYEES. ASSISTANCE IS PROVIDED AS THE AVAILABILITY OF FUNDS PERMIT; DECISIONS ARE MADE IN THE ORDER IN WHICH COMPLETED APPLICATIONS REQUESTS ARE RECEIVED. ASSISTANCE FOR AN INDIVIDUAL EMPLOYEE IS LIMITED TO ONCE PER 12-MONTH PERIOD AND TYPICALLY DOES NOT EXCEED $2,000. DURING 2015, 95 INDIVIDUAL EMPLOYEES WERE ASSISTED BY THE HOPE FUND. X 1 1 X X X X 0 1 0 0 0 0 0 1 0 DAVID L BERND CEO/DIRECTOR 1391722 0 1508038 0 397913 0 57405 0 21493 0 3376571 0 0 0 ROBERT A BROERMANN CFO 738225 0 556761 0 1007240 0 12518 0 18370 0 2333114 0 563900 0 HOWARD P KERN COO/PRESIDENT 966286 0 858798 0 1337122 0 1715812 0 18348 0 4896366 0 560147 0 JEFFREY P KING SECRETARY 434964 0 144257 0 64807 0 61948 0 24192 0 730168 0 25115 0 SAMUEL J HAWLEY ASSIST. SECRETARY (EFFEC 11/15) 127086 0 18866 0 94 0 8531 0 12361 0 166938 0 0 0 MICHAEL M DUDLEY KE (SHC SVP & PRESIDENT, SHP) 523770 0 390171 0 59091 0 1364250 0 13069 0 2350351 0 0 0 VICKY G GRAY KE (SVP, SYSTEM DEVELOPMENT) 408129 0 278395 0 139463 0 25604 0 15192 0 866783 0 24595 0 TERRY M GILLILAND MD KE (SVP & CMO) 722318 0 552328 0 25609 0 132605 0 16382 0 1449242 0 0 0 KENNETH M KRAKAUR KE (SVP & PRESIDENT PENINSULA REGION 365706 0 124682 0 47931 0 29228 0 19847 0 587394 0 0 0 MICHAEL V TAYLOR KE (SVP HUMAN RESOURCES) 465559 0 338631 0 480229 0 15764 0 17506 0 1317689 0 348467 0 LESTER R ELJAIEK VP, HOSPITAL FINANCE 303537 0 124732 0 38331 0 27425 0 24408 0 518433 0 0 0 MEGAN R PERRY CVP, MERGERS & ACQUISITIONS 458308 0 253222 0 52096 0 195123 0 14723 0 973472 0 27641 0 DOUGLAS M THOMPSON VP, DECISION SUPPORT 288727 0 186715 0 125424 0 25226 0 14945 0 641037 0 23234 0 GRACE R HINES CVP, SYSTEM INTERGRATION 301770 0 182294 0 90734 0 7950 0 21858 0 604606 0 0 0 GARY R YATES MD PRESIDENT, SHC QUALITY CARE NETWORK 245731 0 133000 0 152073 0 34534 0 29482 0 594820 0 52228 0 VIKKI CHARLES VP, CORP FINANCE 277567 0 95311 0 25241 0 30414 0 18837 0 447370 0 0 0 MARY L BLUNT FORMER OFFICER 0 520587 0 313992 0 122379 0 42097 0 15403 0 1014458 0 0 MICHAEL V GENTRY FORMER OFFICER 0 531073 0 314662 0 71214 0 94139 0 14356 0 1025444 0 53841 DAVID R MAIZEL MD FORMER OFFICER 0 0 0 0 454414 0 49030 0 12510 0 515954 0 8490 0 GENEMARIE W MCGEE FORMER OFFICER 0 268115 0 89563 0 17225 0 34717 0 21086 0 430706 0 0 BERTRAM S REESE FORMER OFFICER 0 470917 0 329384 0 150127 0 -26412 0 13456 0 937472 0 29808 PART I, LINE 1A THE ORGANIZATION PROVIDED GROSS-UP PAYMENTS ON TAXABLE RETIREMENT GIFTS TO SENIOR EXECUTIVES, THE GROSS-UP PAYMENTS WERE TREATED AS ADDITIONAL TAXABLE COMPENSATION. PART I, LINE 4B HOWARD KERN AND MICHAEL DUDLEY PARTICIPATED IN THE SENTARA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. PARTICIPATION IN THE PLAN IS LIMITED TO SELECT INDIVIDUALS AS APPROVED BY THE ORGANIZATIONS' BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. THE PLAN IS CURRENTLY CLOSED TO ADDITIONAL MEMBERS. VESTING OCCURS UPON THE COMPLETION OF A TWO YEAR NON-COMPETE PERIOD FOLLOWING TERMINATION AFTER EARLY RETIREMENT DATE OR UPON DEATH. EARLY RETIREMENT DATE IS WHEN THE EXECUTIVE OBTAINS AT LEAST AGE 55 AND HAS 10 YEARS OF SERVICE AND BENEFITS ARE FORFEITED IF PARTICIPANT LEAVES PRIOR TO AGE 55 WITH 10 YEARS OF SERVICE. DAVID BERND PARTICIPATED IN THE SENTARA OPTION PLAN FOR EXECUTIVES. THIS PLAN IS UNRELATED TO "EQUITY" OF THE EMPLOYER. PARTICIPATION IS LIMITED TO SELECT INDIVIDUALS AS APPROVED BY THE ORGANIZATIONS' BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. VESTING IS DETERMINED BY THE GOVERNING BOARD OF THE ORGANIZATION AND IS SEPARATELY STATED IN EACH PARTICIPANT'S OPTION AGREEMENT. THERE WERE NO OPTIONS GRANTED AFTER 2002. DAVID BERND, HOWARD KERN, MICHAEL DUDLEY, MARY BLUNT, ROBERT BROERMANN, MICHAEL GENTRY, VICKY GRAY, KENNETH KRAKAUR, BERTRAM REESE, MICHAEL TAYLOR, DOUGLAS THOMPSON, GARY YATES, M.D., GRACE HINES, DAVID MAIZEL, M.D., MEGAN PERRY, JEFFREY KING, TERRY GILLILAND, M.D., GENEMARIE MCGEE AND LESTER ELJAIEK PARTICIPATED IN THE SENTARA CAPITAL ACCUMULATION ACCOUNT PLAN. PARTICIPATION IS LIMITED TO A SELECT GROUP OF CORPORATE EXECUTIVES AS APPROVED BY THE ORGANIZATIONS' BOARD OF DIRECTOR'S COMPENSATION COMMITTEE. TERMS OF THE PLAN CHANGED EFFECTIVE JANUARY 1, 2009, WHEREBY VESTING OF CONTRIBUTIONS MADE ON OR AFTER THAT DATE NOW OCCURS ON THE EARLIER OF FIVE YEARS FOR EACH YEARS' CONTRIBUTIONS OR AGE 55 WITH 10 YEARS OF SERVICE. UNDER THE OLD TERMS, VESTING OF CONTRIBUTIONS MADE PRIOR TO JANUARY 1, 2009 OCCURS ON THE EARLIEST OF ASSIGNED DISTRIBUTION DATE, DEATH, INVOLUNTARY TERMINATION WITHOUT CAUSE OR COMPLETION OF TWO-YEAR NON-COMPETE AFTER VOLUNTARY TERMINATION (REGARDLESS OF ORIGINAL ASSIGNED DISTRIBUTION DATE). DURING 2015, THE FOLLOWING CORPORATE EXECUTIVES RECEIVED VESTED DISTRIBUTIONS UNDER THE PLAN: DAVID BERND ($269,148 ) MARY BLUNT ($77,803); ROBERT BROERMANN ($948,055); MICHAEL DUDLEY ($24,134); MICHAEL GENTRY ($64,851); VICKY GRAY ($108,361); GRACE HINES ($46,385); HOWARD KERN ($355,085); KENNETH KRAKAUR ($25,956); DAVID MAIZEL, M.D. ($14,432); MEGAN PERRY ($31,754); GENEMARIE MCGEE ($16,074); BERTRAM REESE ($95,669); MICHAEL TAYLOR ($452,209); JEFFREY KING ($43,559); DOUGLAS THOMPSON ($80,554); AND GARY YATES, M.D. ($105,446). THESE AMOUNTS HAVE BEEN REPORTED IN COLUMN (B)(III) OF SCHEDULE J, PART II. PART I, LINE 7 NON-FIXED PAYMENTS NOT LISTED DURING THE CURRENT TAX YEAR, THE ORGANIZATION MADE NON-FIXED PAYMENTS OF COMPENSATION UNDER THE FOLLOWING INCENTIVE PROGRAMS: ANNUAL INCENTIVE PROGRAM - EXECUTIVES AND SENIOR LEADERS ARE ELIGIBLE FOR ANNUAL AWARDS BASED ON SYSTEM AND INDIVIDUAL PERFORMANCE. BOTH SYSTEM AND INDIVIDUAL SCORES ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. TARGET AND MAXIMUM OPPORTUNITIES VARY BY LEVEL. TOP HAT- WITHIN THE ANNUAL INCENTIVE PROGRAM, EXECUTIVES AND SENIOR LEADERS MAY RECEIVE ADDITIONAL INCENTIVE PAY TO REWARD EXCEPTIONAL INDIVIDUAL PERFORMANCE. KEY CONTRIBUTOR AWARDS - REWARDS EXCEPTIONAL INDIVIDUALS OR TEAMS FOR SIGNIFICANT CONTRIBUTION AND RESULTS AS RECOGNIZED BY BUSINESS UNITS. MANAGER INCENTIVE PLAN - MANAGEMENT EMPLOYEES NOT COVERED UNDER ANOTHER INCENTIVE PLAN ARE ELIGIBLE FOR THE MANAGEMENT INCENTIVE PLAN. AWARDS ARE BASED ON SYSTEM YEAR-END RESULTS AS DETERMINED BY THE BOARD; BUSINESS UNIT RESULTS FOR FINANCIAL, SAFETY, QUALITY AND CUSTOMER SERVICE; AND THE MANAGER'S INDIVIDUAL PERFORMANCE SCORE. SYSTEM, BUSINESS UNIT, AND INDIVIDUAL RESULTS ARE DETERMINED AFTER YEAR-END, AT WHICH POINT AWARDS MAY BE PAID AND REPORTED AS COMPENSATION. A EDA OF ALBEMARLE COUNTY VA 521297503 2013-06-05 160515000 CURRENT REFUND MARTHA JEFFERSON SERIES 2008A, 2008B, 2008C, AND 2008D 0 0 0 B IDA OF THE CITY OF HARRISONBURG VA 542000436 415669BN9 2006-12-28 196167653 FUND CONSTRUCTION OF REPLACEMENT HOSPITAL 0 0 0 C IDA OF THE CITY OF HARRISONBURG VA 542000436 2011-11-28 75000000 MODIFICATION OF THE SERIES 2010 BONDS 0 0 0 D IDA OF THE CITY OF HARRISONBURG VA 542000436 2011-12-14 10000000 PARTIAL REFUNDING OF SERIES 2009 0 0 0 A 3290000 160515000 160515000 2013 1 0 1 1 B 5315000 216009050 1339016 4253886 195189648 15226499 2010 0 0 1 1 C 6897000 75000000 75000000 2011 1 0 1 1 D 400000 10000000 10000000 2007 1 0 1 1 A 0 1 1 1 0 0 0 1 B 0 1 1 1 0 0 0 1 C 0 1 1 1 0 0 0 1 D 0 1 1 1 0 0 0 1 A 0 1 1 0 1 0 0 0 1 B 1 0 0 1 MORGAN STANLEY & CO 1 1 1 C 0 1 1 0 1 0 0 0 1 D 0 1 1 0 1 1 SUNTRUST BANK 5.100000000000 0 0 0 0 1 A 1 B 1 C 1 D 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: EDA THE CITY OF NORFOLK, VA DATE THE REBATE COMPUTATION WAS PERFORMED: 12/16/2007 SCHEDULE K, PART VI ENTITY 1, ISSUER A: SERIES 2013A & 2013B (MARTHA JEFFERSON HOSPITAL) HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II 7, - THE COST OF ISSUANCES EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE CURRENT REFUNDED THE MARTHA JEFFERSON HOSPITAL SERIES 2008A, SERIES 2008B, SERIES 2008C, AND SERIES 2008D. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. ARBITRAGE COMPLIANCE CERTIFICATE PROVIDED TO SENTARA. FIRST INSTALLMENT WOULD BE NO LATER THAN 6/5/2018. ENTITY 1, ISSUER B: SERIES 2006 (ROCKINGHAM MEMORIAL HOSPITAL)HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE PLUS INVESTMENT EARNINGS (MAINLY FROM THE CONSTRUCTION FUND AND DEBT SERVICE RESERVE FUND). PART II 4 - SUBSEQUENT TO ACQUISITION OF HOSPITAL BY SENTARA, DEBT SERVICE RESERVE FUND NO LONGER REQUIRED DUE TO HIGH CREDIT RATINGS HELD BY SENTARA. THE SERIES 2006 DEBT SERVICE RESERVE PROCEEDS WERE RELEASED TO SENTARA ON 1/10/2012. SENTARA DEPOSITED THESE MONIES INTO A SEPARATELY HELD ACCOUNT AND TRACKED. THESE MONIES WERE USED TO PAY DEBT SERVICE ON THE 2006 BONDS UNTIL MONIES WERE FULLY EXPENDED. ALL SERIES 2006 PROCEEDS WERE FULLY EXPENDED AS OF 2/15/2013. PART II, 11 - MAINLY INCLUDES DEBT SERVICE RESERVE FUND PROCEEDS USED FOR DEBT SERVICE PURPOSES AFTER THE 1/10/2012 RELEASE DATE. PART IV, 1 - SENTARA REBATED 100% OF ACCRUING ARBITRAGE LIABILITY OR $743K TO THE IRS WITHIN 60 DAYS OF THE FIRST INSTALLMENT EVALUATION DATE (12/28/2011 FIRST INSTALLMENT DATE). PART IV, 5A - INVESTMENT AGREEMENTS WERE ENTERED INTO FOR THE SERIES 2006 CONSTRUCTION FUND, WHICH MATURED ON 9/1/2009 AND THE DEBT SERVICE RESERVE FUND, WHICH WAS SCHEDULED TO MATURE ON 8/15/2015. HOWEVER, DUE TO THE RELEASE OF THE DEBT SERVICE RESERVE FUND PROCEEDS, THAT INVESTMENT AGREEMENT WAS TERMINATED EARLY IN JANUARY 2012. PART IV, 5 - TERM OF GIC WAS 2.4 AND 4.7. DUE TO SYSTEM LIMITATIONS, THIS INFORMATION COULD NOT BE ENTERED ON THE APPROPRIATE LINE. ENTITY 1, ISSUE C: SERIES 2011AB&C (ROCKINGHAM MEMORIAL HOSPITAL) HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II 7, - THE COST OF ISSUANCES EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE MODIFIED THE INTEREST RATES AND TERMS OF A PRIOR SERIES 2010AB&C. MODIFICATION WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. ARBITRAGE COMPLIANCE CERTIFICATE PROVIDED TO SENTARA. FIRST INSTALLMENT DATE WOULD BE NO LATER THAN 11/28/2016. ENTITY 1, ISSUE D: SERIES 2011A (ROCKINGHAM MEMORIAL HOSPITAL) HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II 7, - THE COST OF ISSUANCES EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE MODIFIED THE INTEREST RATES AND TERMS OF A PRIOR SERIES 2009 ISSUE. MODIFICATION WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. ARBITRAGE COMPLIANCE CERTIFICATE PROVIDED TO SENTARA. FIRST INSTALLMENT DATE WOULD BE NO LATER THAN 12/14/2016. ENTITY 2, ISSUE A: SERIES 2011B (ROCKINGHAM MEMORIAL HOSPITAL) HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II 7, - THE COST OF ISSUANCES EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE MODIFIED THE INTEREST RATES AND TERMS OF A PRIOR SERIES 2009 ISSUE. MODIFICATION WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. ARBITRAGE COMPLIANCE CERTIFICATE PROVIDED TO SENTARA. FIRST INSTALLMENT DATE WOULD BE NO LATER THAN 1/4/2017. ENTITY 2, ISSUE B: SERIES 2011C (ROCKINGHAM MEMORIAL HOSPITAL) HOSPITAL FACILITIES & DEBT NOW ACQUIRED AND OWNED BY SENTARA HEALTHCARE. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II 7, - THE COST OF ISSUANCES EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE MODIFIED THE INTEREST RATES AND TERMS OF A PRIOR SERIES 2009 ISSUE. MODIFICATION WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. ARBITRAGE COMPLIANCE CERTIFICATE PROVIDED TO SENTARA. FIRST INSTALLMENT DATE WOULD BE NO LATER THAN 1/20/2017. ENTITY 2, ISSUE C: SERIES 2003 COMMERCIAL PAPER PROGRAM (SENTARA HEALTHCARE) PART II, 1 - SENTARA ISSUED TAXABLE COMMERCIAL PAPER NOTES IN 2012 TO PARTIALLY REFUND THIS 2003 COMMERCIAL PAPER PROGRAM. PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT WITHIN 18 MONTHS OF RECEIPT OF PROCEEDS. PART II, 7 - THE COST OF ISSUANCE EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART IV, 2C - SENTARA HAD ARBITRAGE COMPLIANCE REPORT COMPLETED FOR THIS ISSUE AS OF 12/16/2007, WHICH REFLECTED NO REBATE DUE TO THE IRS FOR THIS 2003 ISSUANCE. DEBT WAS ISSUED AS REIMBURSEMENT FOR PRIOR EXPENDITURES INCURRED. THEREFORE, THIS ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION. ENTITY 2, ISSUE D: SERIES 2008 ( SENTARA HEALTHCARE SYSTEM) PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDED ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II, 7 - THE COST OF ISSUANCE EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE REFUNDED A PRIOR SERIES 2006 ISSUE. THE REFUNDING WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. ALL PROCEEDS WERE SPENT ON THE DAY OF ISSUE. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. SENTARA PROVIDED WITH ARBITRAGE COMPLIANCE CERTIFICATE IN SEPTEMBER OF 2008. FIRST INSTALLMENT EVALUATION DATE WOULD BE NO LATER THAN 6/25/2013. ON MAY 1, 2015, SENTARA HEALTHCARE MODIFIED AN EXISTING TOTAL RETURN SWAP ("TRS") FOR THE $156,615,000 SERIES 2008 REVENUE BONDS. THE TRS WAS NOT ORIGINALLY TREATED OR IDENTIFIED AS A QUALIFIED HEDGE FOR TAX PURPOSES AND THEREFORE ANY MODIFICATIONS SHOULD NOT HAVE RESULTED IN A REISSUANCE FOR FEDERAL TAX PURPOSES. HOWEVER, BOND COUNSEL AND THE SWAP PROVIDERS COUNSEL REVIEWED PRIVATE LETTER RULING PLR-147816-13, WHICH OUTLINED A VERY SIMILAR SITUATION. THE PLR CONCLUDED THAT AN AMENDMENT TO THE TRS WOULD NOT RESULT IN AN ABUSIVE ARBITRAGE DEVICE AS DEFINED WITHIN THE U.S. TREASURY REGULATIONS. THE PLR DID NOT CONCLUDE WHETHER OR NOT A REISSUANCE SHOULD APPLY IN SUCH A SITUATION. AS A CONSERVATIVE APPROACH, BOND COUNSEL AND THE SWAP PROVIDERS COUNSEL DECIDED TO FOLLOW THE DIRECTION TAKEN BY THE ISSUER IN THE PLR AND ALSO TREAT THE MODIFICATION OF THE TRS AS A REISSUANCE AND FILED A NEW FEDERAL FORM 8038 WITH THE INTERNAL REVENUE SERVICE, DATED MAY 1, 2015. AGAIN, THE TREATMENT OF THE TRS MODIFICATION AS A REISSUANCE WAS PURELY DONE AS A CONSERVATIVE APPROACH. AS STATED ABOVE, THE SERIES 2008 BONDS QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION. THEREFORE, THIS ISSUE WAS EXEMPT FROM THE ARBITRAGE REBATE CALCULATION. UNDER THE REISSUANCE TREATMENT, NO REBATE AMOUNTS WOULD HAVE BEEN DUE TO THE IRS AS OF THE MAY 1, 2015 REISSUANCE DATE. FURTHERMORE, THE 2008 REISSUED BONDS WOULD ALSO QUALIFY FOR THE SIX-MONTH SPENDING EXCEPTION AND WOULD NOT OWE AN ARBITRAGE REBATE PAYMENT TO THE IRS AS OF MAY 1, 2020 (FIFTH ANNIVERSARY DATE OF THE REISSUANCE). SCHEDULE K, PART VI ENTITY 3, ISSUER A: SERIES 2010 (SENTARA HEALTHCARE SYSTEM - VSBFA) PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE, PLUS INTEREST EARNINGS (MAINLY FROM PROJECT FUND AND ESCROW FUND). PART II, 11 - OTHER SPENT PROCEEDS INCLUDES REFUNDING PROCEEDS AND INTEREST EARNINGS FROM REFUNDING ESCROW FUND. PART II, 14 - ISSUE REFUNDED A PRIOR SERIES 1997A AND 1998 ISSUE. THE REFUNDINGS WERE TREATED AS CURRENT REFUNDINGS FOR FEDERAL TAX PURPOSES. REFUNDING PROCEEDS WERE DEPOSITED INTO AN ESCROW FUND AND INVESTED. THOSE AMOUNTS WERE FULLY EXPENDED ON OR AROUND 3/1/2010 TO REDEEM THE PRIOR BONDS. PART IV, 2B - FIRST INSTALLMENT PERIOD FOR THIS ISSUE ENDED ON1/28/2015. ARBITRAGE COMPLIANCE REPORT COMPLETED THROUGH DECEMBER 31, 2011, WHICH REFLECTED ALL PROCEEDS SPENT AND NO ACCRUING ARBITRAGE LIABILITY FOR SENTARA. ENTITY 3, ISSUER B: SERIES 2010B&C (SENTARA HEALTHCARE SYSTEM - EDA OF NORFOLK) PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II, 7 - THE COST OF ISSUANCE EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE REFUNDED A PRIOR SERIES 2009B & 2009C ISSUE. THE REFUNDING WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. ALL PROCEEDS WERE SPENT ON THE DATE OF ISSUE. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. SENTARA WAS PROVIDED WITH ARBITRAGE COMPLIANCE CERTIFICATE IN MAY OF 2010. FIRST INSTALLMENT ENDED 3/3/2015. ENTITY 3, ISSUER C: SERIES 2012A (SENTARA HEALTHCARE SYSTEM - EDA OF NORFOLK) PART II, 3 - AMOUNT OF TOTAL PROCEEDS OF ISSUE INCLUDES ISSUE PRICE. NO INTEREST WAS EARNED, ALL PROCEEDS SPENT ON OR AROUND DATE OF CLOSING FOR REFUNDING PURPOSES. PART II, 7 - THE COST OF ISSUANCE EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 14 - ISSUE REFUNDED A PRIOR SERIES 2009A ISSUE. THE REFUNDING WAS TREATED AS A CURRENT REFUNDING FOR FEDERAL TAX PURPOSES. ALL PROCEEDS WERE SPENT ON THE DATE OF ISSUE. PART IV, 2B - ISSUE QUALIFIED FOR THE SIX-MONTH SPENDING EXCEPTION TO REBATE. SENTARA WAS PROVIDED WITH ARBITRAGE COMPLIANCE CERTIFICATE IN MAY OF 2012. FIFTH YEAR WOULD BE 4/26/2017. ENTITY 3, ISSUER D: SERIES 2012B (SENTARA HEALTHCARE SYSTEM) PART II, 3 - TOTAL PROCEEDS OF THE ISSUE INCLUDES ISSUE PRICE, PLUS INTEREST EARNINGS ASSOCIATED WITH PROJECT FUND AND ESCROW FUNDS. PART II, 7 - THE COST OF ISSUANCE EXPENSES OF THE ISSUE WERE PAID WITH EQUITY FROM SENTARA AND NOT FROM BOND PROCEEDS. PART II, 11 - OTHER SPENT PROCEEDS INCLUDES REFUNDING PROCEEDS AND INTEREST EARNINGS FROM REFUNDING ESCROW FUNDS. PART II, 12 - UNSPENT PROCEEDS CONSIST OF THE REMAINING PROJECT FUND PROCEEDS. PART II, 15 - SERIES 2012B ADVANCE REFUNDED THE MARTHA JEFFERSON SERIES 2002 BONDS MATURING 10/1/2012 - 10/1/2035 WITH A CALL FOR REDEMPTION DATE OF 10/1/2012. THE SERIES 2012B ALSO ADVANCE REFUNDED THE POTOMAC HOSPITAL SERIES 2003 BONDS MATURING 10/1/2012 - 10/1/2036 WITH A CALL FOR REDEMPTION DATE OF 10/1/2013. PART IV, 2A, SENTARA RECEIVES ANNUAL ARBITRAGE COMPLIANCE REPORTS COMPLETED FOR THIS ISSUE. THE FIRST INSTALLMENT PERIOD WILL END NO LATER THAN 05/16/2017. ALL PROCEEDS OF THE SERIES 2012B BONDS WERE FULLY EXPENDED AS OF 3/19/2014. ARBITRAGE COMPLIANCE CERTIFICATE WAS PROVIDED FORECASTING RESULTS THROUGH THE 5/1/2017 FIFTH BOND YEAR, WHICH REFLECTED THAT NO ARBITRAGE REBATE LIABILITY WILL BE DUE TO THE IRS AS OF THE FIRST INSTALLMENT PERIOD. A IDA OF THE CITY OF HARRISONBURG VA 542000436 2012-01-04 10000000 PARTIAL REFUNDING OF SERIES 2009 0 0 0 B IDA OF THE CITY OF HARRISONBURG VA 542000436 2012-01-20 10000000 PARTIAL REFUNDING OF SERIES 2009 0 0 0 C EDA THE CITY OF NORFOLK VA 237253445 2003-07-16 53100000 FINANCING FOR CAPITAL AND FIXED ASSETS 0 0 0 D EDA THE CITY OF SUFFOLK VA 541131047 86481QAA7 2008-06-25 156615000 REFUNDED BONDS ISSUED OCTOBER 2006 0 0 0 A 400000 10000000 10000000 2007 1 0 1 1 B 400000 10000000 10000000 2007 1 0 1 1 C 12300000 53100000 53100000 2003 0 0 1 1 D 2915000 156615000 156615000 2008 1 0 1 1 A 0 1 1 1 0 0 0 1 B 0 1 1 1 0 0 0 1 C 0 1 1 1 0 0 0 1 D 0 1 1 1 0 0 0 1 A 0 1 1 0 1 1 SUNTRUST BANK 5.100000000000 0 0 0 0 1 B 0 1 1 0 1 1 SUNTRUST BANK 5.100000000000 0 0 0 0 1 C 0 0 1 1 1 0 0 0 1 D 0 0 1 1 0 0 0 0 1 A 1 B 1 C 1 D 1 A VA SMALL BUSINESS FINANCING AUTHORITY 541300845 928105AV7 2010-01-28 296243684 REFUND PRIOR BONDS AND FUND NEW PROJECT 0 0 0 B EDA THE CITY OF NORFOLK VA 237253445 65588TAL3 2010-03-03 132480000 REFUNDED SERIES 2009B&C 0 0 0 C EDA THE CITY OF NORFOLK VA 237253445 65588TAN9 2012-04-26 68890000 REFUNDED SERIES 2009A BONDS 0 0 0 D EDA THE CITY OF NORFOLK VA 237253445 65588NBB7 2012-05-16 163163080 REF. POTOMAC 2003 & MARTHA JEFFERSON 2002 AND FINANCE NEW PROJECTS 0 0 0 A 52870000 296443256 2715612 230220167 63507476 2011 1 0 1 1 B 2445000 132480000 132480000 2010 1 0 1 1 C 1255000 68890000 68890000 2012 1 0 1 1 D 8535000 163873559 75585411 88288148 2014 0 1 1 1 A 0 1 1 1 0 0 0 1 B 0 1 1 1 1 1 0 0 1 C 0 1 1 1 1 1 0 0 1 D 0 1 1 1 0 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 0 1 1 1 0 0 0 1 C 0 1 1 0 1 0 0 0 1 D 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 D 1 ALLISON K GREENE FAMILY MEMBER OF KEN KRAKAUR, KE 106828 EMPLOYMENT 0 KELLY B LAMPING FAMILY MEMBER OF DAVID BERND, DIRECTOR AND OFFICER 97049 EMPLOYMENT 0 MARC A SHARP FAMILY MEMBER OF MARC B. SHARP, DIRECTOR 65330 EMPLOYMENT 0 X 10 46433 FAIR MARKET VALUE 0 1 0 FORM 990, PART III, LINE 4A SENTARA HEALTHCARE I. SENTARA HEALTHCARE - YOUR NOT FOR PROFIT HEALTHCARE PARTNER SENTARA HEALTHCARE BASED IN NORFOLK, VA, CELEBRATES MORE THAN 127 YEARS IN RELENTLESS PURSUIT OF ITS MISSION TO IMPROVE HEALTH EVERY DAY THROUGH INNOVATION, COMPASSION AND COMMUNITY BENEFIT. SENTARA IS A FULLY-INTEGRATED NOT-FOR-PROFIT SYSTEM WITH NEARLY 300 SITES OF CARE OF WHICH THERE ARE 12 HOSPITALS IN VIRGINIA AND NORTH CAROLINA, INCLUDING A LEVEL I TRAUMA CENTER WITH NIGHTINGALE REGIONAL AIR AMBULANCE AND THE NATIONALLY-RANKED SENTARA HEART HOSPITAL. THE SENTARA FAMILY INCLUDES FOUR MEDICAL GROUPS, AMBULATORY CAMPUSES, POST-ACUTE CARE SERVICES, THE PHYSICIAN-LED SENTARA QUALITY CARE NETWORK, THE ACCREDITED SENTARA CANCER NETWORK, THE SENTARA COLLEGE OF HEALTH SCIENCES, OPTIMA HEALTH PLAN MEMBERS IN VIRGINIA, ALABAMA AND OHIO, AND A TEAM OF PROFESSIONALS NEARLY 30,000 STRONG. SENTARA PROUDLY INCLUDES ADVANCED IMAGING CENTERS, NURSING AND ASSISTED LIVING CENTERS, PHYSICAL THERAPY AND REHABILITATION SERVICES, HOME HEALTH AND HOSPICE, AND GROUND MEDICAL TRANSPORTATION. SENTARA IS STRATEGICALLY FOCUSED ON CONTINUOUS IMPROVEMENT IN QUALITY, SAFETY, CLINICAL OUTCOMES AND THE PATIENT EXPERIENCE AND PURSUES KEY CLINICAL GOALS THROUGH HIGH-PERFORMANCE TEAMS ACROSS THE ENTERPRISE. EFFORTS ARE CENTERED ON PROVIDING THE RIGHT CARE IN THE RIGHT SETTING AT THE RIGHT TIME AND ADDING VALUE TO THE COMMUNITIES WE SERVE. WE STRIVE TO SERVE ALL IN THE COMMUNITIES WE SERVE THROUGH HEALTH OUTREACH PROGRAMS, EDUCATION, AND FINANCIAL SUPPORT OF OTHER NOT FOR PROFIT ORGANIZATIONS WITH SIMILAR HEALTH MISSIONS. II. COMMITMENT TO THE COMMUNITY A. SENTARA HAS PROVIDED MUCH IN THE WAY OF COMMUNITY BENEFIT AND CHARITY CARE ON AN ANNUAL BASIS. IN 2015, SENTARA COMMUNITY BENEFIT REACHED $335,510,000. SENTARA PROVIDED $276,309,000 IN UNCOMPENSATED PATIENT CARE; $19,687,000 IN MEDICAL EDUCATION; AND $39,514,000 IN COMMUNITY PROGRAMS. B. SENTARA IS PROUD OF THE MISSION-DRIVEN WORK OF THE THREE SENTARA FOUNDATIONS. THESE FOUNDATIONS RAISED MONEY TO SUPPORT THE CLINICAL NEEDS OF THE SYSTEM AND PROVIDED FUNDING THROUGH GRANTS AND DIRECT CONTRIBUTIONS TO COMMUNITY ORGANIZATIONS THAT HAVE SIMILAR INTERESTS IN COMMUNITY HEALTH NEEDS. SENTARA FOUNDATION-HAMPTON ROADS FUNDED 38 COMMUNITY GRANTS IN 2015 TOTALING $585,000; AND THE RMH FOUNDATION FUNDED SEVEN COMMUNITY HEALTH PROGRAMS WITH GRANTS TOTALING ALMOST $118,000. THE MARTHA JEFFERSON HOSPITAL FOUNDATION ESTABLISHED A NEW PALLIATIVE CARE OUTPATIENT CLINIC AND FUNDED TWO 3D MAMMOGRAPHY UNITS WITHIN THEIR COMMUNITY. ALL THREE FOUNDATIONS RALLIED AROUND SUPPORT FOR NURSING EXCELLENCE AND INNOVATION, FUNDING 235 SCHOLARSHIPS FOR REGISTERED NURSES WHO ARE PURSUING THEIR BACHELORS OF SCIENCE IN NURSING. SENTARA MADE A $100,000 CONTRIBUTION TO THE NORTHEAST ACADEMY OF AEROSPACE AND ADVANCED TECHNOLOGIES (NEAAT) IN ELIZABETH CITY, NORTH CAROLINA. THE MONEY IS THE FIRST GIFT TO THE NEW CHARTER SCHOOL AND WILL BE ALLOCATED OVER THREE YEARS. THE NORTH CAROLINA STATE BOARD OF EDUCATION APPROVED THE SCHOOL IN DECEMBER 2014, AND IT WAS SLATED TO OPEN IN AUGUST 2015 WITH A GOAL OF WORKFORCE DEVELOPMENT FOR NORTHEAST NORTH CAROLINA AND AN AID TO PHYSICIAN RECRUITMENT. SEVERAL YEARS AGO, SENTARA ESTABLISHED THE HOPE (HELPING OVERCOME PERSONAL EMERGENCY) FUND, WHICH IS AN EMERGENCY FINANCIAL RESOURCE FOR SENTARA EMPLOYEES THAT ARE EXPERIENCING CATASTROPHIC HARDSHIP OR LOSS THROUGH NO FAULT OF THEIR OWN. SENTARA EMPLOYEES WHO RECEIVE AID FROM THE HOPE FUND HAVE FACED DEVASTATING CRISES SUCH AS FIRE, DEATH, NATURAL DISASTERS, OR SERIOUS PERSONAL OR FAMILY ILLNESS. IN 2015, THE HOPE FUND AWARDED $143,000 TO SENTARA EMPLOYEES IN CRISES ACROSS THE SYSTEM. MTI TRANSPORT, LLC, DONATED A RETIRED GROUND TRANSPORT AMBULANCE TO THE ONE ELEUTHERA FOUNDATION IN THE BAHAMAS TO RAISE AWARENESS OF BREAST CANCER IN A COUNTRY WITH A HIGH RATE OF BREAST CANCER. PAINTED PINK AND NAMED AFTER A SENTARA EMPLOYEE WITH BREAST CANCER, "MISS VICKI", THE AMBULANCE MADE HER WAY TO THE BAHAMAS IN 2015 TO SUPPORT THE NEEDS OF THIS COMMUNITY. C. COMMUNITY HEALTH INITIATIVES SENTARA AND OPTIMA HEALTH HAVE LONG BEEN COMMITTED TO PROVIDING HEALTH AND PREVENTION SERVICES TO THE COMMUNITIES WE SERVE THROUGH MANY CHANNELS INCLUDING THE SENTARA HEALTHCARE COMMUNITY HEALTH AND PREVENTION ORGANIZATION WITHIN SENTARA. BELOW ARE SOME KEY HIGHLIGHTS OF THE EFFORTS IN OUR COMMUNITIES IN 2015: - HEALTH IMPROVEMENT EVENTS WERE OFFERED TO CHURCHES, EMPLOYER GROUPS INCLUDING SENTARA HEALTHCARE AND HAMPTON ROADS SANITATION DISTRICT, COMMUNITY HEALTH CENTERS AND OTHER COMMUNITY LOCATIONS INCLUDING THE POCKET EKG PROGRAM AND THE SENTARA LIVING PROGRAM. - CONTINUED TO OFFER PROGRAMS SUCH AS EATING FOR LIFE, WALKABOUT WITH HEALTHY EDGE, HEALTH HABITS, HEALTHY YOU, MEDITATION, TAICHI AND YOGA. - THE FLU PATROL ADMINISTERED AT TOTAL OF 7,785 IMMUNIZATIONS. 7,010 WERE GIVEN TO OPTIMA HEALTH INSURED GROUPS THROUGHOUT VIRGINIA. THE REMAINDER WAS DELIVERED TO CHURCHES AND OTHER COMMUNITY GROUPS. - BIRTHDAY CARD REMINDERS FOR PREVENTIVE HEALTH SCREENINGS WERE DELIVERED TO ADULT MEMBERS OF OPTIMA HEALTH, OHIOHEALTH PLAN MEMBERS AND CHILDREN. - THE TOBACCO CESSATION PROGRAM DISTRIBUTED OVER 385 QUIT KITS TO PROMOTE THE GREAT AMERICAN SMOKEOUT. PATIENTS DISCHARGED FROM SENTARA VIRGINIA BEACH GENERAL HOSPITAL AND SENTARA HEART HOSPITAL WERE CONTACTED FOUR WEEKS AFTER THEIR HOSPITAL DISCHARGE FOR TOBACCO CESSATION FOLLOW-UP. - AS PART OF THE SENTARA BENEFIT ENROLLMENT PROCESS, 18,462 EMPLOYEES COMPLETED A HEALTH RISK ASSESSMENT IN CONJUNCTION WITH THE MISSION: HEALTH PROGRAM. - FINALLY, WEBMD BECAME THE NEW HEALTH COACHING AND HEALTH EDUCATION PORTAL PARTNER IN JANUARY 2015. 14,788 MEMBERS HAVE REGISTERED ON WEBMD'S PORTAL AND OF THOSE, 11,680 MEMBERS ARE ACTIVELY ENGAGED. SENTARA HOSTS A NUMBER OF COMMUNITY EVENTS RAISING AWARENESS AROUND KEY HEALTH AWARENESS MONTHS. ONE GOOD EXAMPLE IS THE FOCUS ON COLON CANCER: DON'T SIT ON COLON CANCER. THROUGH THE SENTARA CANCER NETWORK, WE HOSTED A 5K AT SENTARA PRINCESS ANNE HOSPITAL IN VIRGINIA BEACH. THROUGH SENTARA HEART , WE PROMOTED THE "28 DAYS OF HEART" IN FEBRUARY, 2015 IN SUPPORT OF HEART HEALTH AWARENESS. ONLINE PROMOTIONS, RADIO ADS, SCREENINGS AND MORE WERE CONDUCTED TO RAISE AWARENESS OF HEART DISEASE THROUGHOUT THE COMMUNITIES WE SERVE IN VIRGINIA AND NORTH CAROLINA. III. GROWTH IN SENTARA HEALTHCARE SINCE THE BEGINNING, SENTARA HAS REACHED OUT TO OTHER INDUSTRY LEADERS AND JOINED FORCES TO EXTEND QUALITY HEALTHCARE AND SERVICES TO MORE PEOPLE. IN RECENT YEARS, WE HAVE GROWN IN VIRGINIA AND IN OTHER STATES, NORTH CAROLINA, ALABAMA AND OHIO, BY SEEKING PARTNERSHIPS WITH SUCCESSFUL HOSPITALS AND HEALTH SYSTEMS THAT SHARE OUR DEDICATION TO EXCELLENCE, VALUE, QUALITY AND CUSTOMER FOCUS. OUR GROWTH IN 2015 INCLUDED THE FOLLOWING: A. SENTARA ADVANTEDGE: OPTIMA HEALTH, THE INSURANCE ARM OF SENTARA HEALTHCARE, FORMED SENTARA ADVANTEDGE, A PROGRAM THAT ESTABLISHES STRATEGIC HEALTH PLAN PARTNERSHIPS - ALABAMA AND OHIO BEING THE FIRST TWO STATES REPRESENTING GROWTH OUTSIDE OF VIRGINIA. B. SENTARA PRATT MEDICAL GROUP: SENTARA PARTNERED WITH PRATT MEDICAL CENTER TO FORM SENTARA PRATT MEDICAL GROUP. WITH 32 PROVIDERS AND 7 LOCATIONS IN THE AREAS OF FREDERICKSBURG, STAFFORD, KING GEORGE, AND DAHLGREN, SENTARA NOW HAS A PRESENCE IN THE GREATER FREDERICKSBURG MARKET. SENTARA PRATT ALSO BRINGS AN ADDITIONAL IMAGING CENTER INTO THE SENTARA HEALTHCARE NETWORK. C. SENTARA QUALITY CARE NETWORK (SQCN): THE SENTARA QUALITY CARE NETWORK EXPANDED ITS NETWORK TO COVER THE HARRISONBURG, VIRGINIA AREA IN 2015 WITH THE CREATION OF THE SHENANDOAH REGIONAL SERVICE ORGANIZATION. SQCN NOW INCLUDES 2,754 PROVIDERS AND 30,647 PATIENTS ACROSS VIRGINIA. IV. NEW INITIATIVES A. CLINICAL PERFORMANCE IMPROVEMENT: IN 2015, SENTARA DESIGNED AND IMPLEMENTED A CLINICAL PERFORMANCE IMPROVEMENT (CLINICAL PI) INITIATIVE TO EXECUTE ON THE "ALWAYS IMPROVING" INITIATIVE WITHIN SENTARA. THESE EFFORTS PROVIDED A STRUCTURE TO DRIVE CHANGE AND CREATED A PROCESS FOR RAPID CYCLE IMPLEMENTATION. THE SYSTEM-WIDE INITIATIVE PRODUCED SIGNIFICANT PROGRESS IN 5 AREAS OF CLINICAL FOCUS. B. ICD-10: SENTARA SUCCESSFULLY TRANSITIONED FROM THE ICD-9 CODING SYSTEM TO THE ICD-10 CODING SYSTEM ON OCTOBER 1, 2015. THIS WAS AN ADOPTION THAT TOOK PLACE THROUGHOUT THE U.S. HEALTHCARE INDUSTRY. SENTARA BEGAN ITS ICD-10 JOURNEY IN 2011 WITH SIGNIFICANT INVESTMENTS IN TECHNOLOGY, TOOLS AND TRAINING FOR STAFF AND PROVIDERS ACROSS THE COMPANY. V. OFFERING NEW PROCEDURES AND TECHNOLOGIES CLINICAL BREAKTHROUGHS: SENTARA INTRODUCED MANY NEW CLINICAL BREAKTHROUGHS THAT BENEFITED THE PATIENT IN MANY AREAS OF CARE, INCLUDING ORTHOPEDICS, NEUROSCIENCES AND CARDIAC. FORM 990, PART III, LINE 4A A. ORTHOPEDICS: SENTARA NORTHERN VIRGINIA MEDICAL CENTER WAS HOME TO THE FIRST STEMLESS TOTAL SHOULDER REPLACEMENT PROCEDURE IN THE DC/METRO AREA. ORTHOPAEDICS HOSPITAL AT SENTARA CAREPLEX WAS THE FIRST IN HAMPTON ROADS WHERE ORTHOPEDIC SURGEONS USE NAVIO - A ROBOTIC ASSISTED TECHNOLOGY FOR KNEE REPLACEMENTS NOT REQUIRING A CT SCAN. A NEUROSURGEON AT SENTARA PRINCESS ANNE HOSPITAL WAS THE FIRST IN SOUTHERN VIRGINIA BEACH TO USE THE MAZOR ROBOTICS RENAISSANCE GUIDANCE SYSTEM THAT ALLOWS FOR ROBOTIC ASSISTED SPINE SURGERY FOR SPINE FUSIONS AND REDUCES THE USE OF RADIATION BY REDUCING CONTINUOUS FLUOROSCOPY DURING SURGERY. B. NEUROSCIENCES: SENTARA CAREPLEX HOSPITAL AND SENTARA PRINCESS ANNE HOSPITAL OFFERED A NEW PROCEDURE IN HAMPTON ROADS USING SPENOCATH - A DEVICE USED IN AN INTERVENTIONAL RADIOLOGY PROCEDURE FOR MIGRAINE TREATMENT THROUGH THE NOSE. C. CARDIAC: SENTARA HEART HOSPITAL WAS THE FIRST IN HAMPTON ROADS TO OFFER A PROCEDURE USING THE WATCHMAN DEVICE-AN ALTERNATIVE TO LONG-TERM BLOOD THINNING MEDICATION THERAPY FOR STROKE RISK REDUCTION IN PATIENTS WITH NON-VALVULAR ATRIAL FIBRILLATIONS. VI. EXPANDING PARTNERSHIPS A. IN OCTOBER, 2015, SENTARA BECAME AN INVESTMENT PARTNER OF MEDSTREAMING, A COMPANY WHOSE DATA AGGREGATION TOOL HAS LONG BEEN USED IN SENTARA VASCULAR SERVICES. MEDSTREAMING'S TECHNOLOGY ENABLES PROVIDERS TO AGGREGATE DATA FROM MULTIPLE DATA SOURCES AND ASSIMILATE THAT DATA TO PROVIDE DIAGNOSIS AND TREATMENT RECOMMENDATIONS FASTER AND MORE ACCURATELY. B. IN 2015, SENTARA BEGAN WORKING WITH WELLPEPPER INC. WELLPEPPER IS DEVELOPING GROUNDBREAKING DIGITAL TOOLS, THROUGH THEIR PROPRIETARY INTELLECTUAL PROPERTY, SUCH AS A DIGITAL "APP" THAT CAN HELP MONITOR MIGRAINES. WELLPEPPER IS WORKING WITH SENTARA TO DEPLOY THE MIGRAINE APP, AND OTHER APPS FOR OTHER CONDITIONS ARE ON THE HORIZON. C. SENTARA CONTINUES ITS EFFORTS TO GROW AND INTEGRATE MDLIVE INTO THE COMMUNITIES WE SERVE; THROUGH OUR EMPLOYEES; AND THROUGH MEMBERS INSURED THROUGH OPTIMA. MDLIVE DELIVERS REAL-TIME MEDICAL CONSULTATIONS VIA TELEPHONE AND ONLINE VIDEO THROUGH AN ESTABLISHED NETWORK OF PHYSICIANS. PATIENTS USE THE MDLIVE VIRTUAL CONSULT PLATFORM TO CONSULT DIRECTLY WITH A LICENSED SENTARA PHYSICIAN OR PARTNER PHYSICIAN WHO CAN DIAGNOSE LOW-ACUITY ILLNESSES, PROVIDE CARE AND PRESCRIBE MEDICATIONS AS APPROPRIATE. VII. EXPANDING EDUCATIONAL OPPORTUNITIES SENTARA IS COMMITTED TO ALWAYS IMPROVING-INCLUDING ENCOURAGING REGISTERED NURSES (RNS) TO CONTINUE PURSUING EDUCATIONAL OPPORTUNITIES. CONTINUOUS LEARNING WILL ADVANCE THE CARE SENTARA NURSES DELIVER TO OUR PATIENTS AND ALLOW THEM TO ADVANCE IN THEIR CAREERS. IN 2015, SENTARA MARKED FURTHER PROGRESS TOWARD ACHIEVING OUR GOAL OF 80% OF SENTARA NURSES HAVING A BSN BY 2020. IN 2015 SENTARA HAS 54.2% OF ITS NURSING WORKFORCE HOLDING A BSN OR HIGHER DEGREE. SENTARA IS MOVING THE NEEDLE ON THIS MEASURE AND THE SENTARA FOUNDATIONS ARE AN ENORMOUS SUPPORT. ALL SENTARA FOUNDATIONS RALLIED AROUND ADVANCING NURSING EDUCATION BY FUNDING 235 SCHOLARSHIPS IN 2015 FOR RNS WHO ARE PURSUING THEIR BSN. VIII. RESEARCH: RESEARCH IS ANOTHER WAY SENTARA IS ALWAYS IMPROVING. HERE ARE A FEW EXAMPLES OF OUR WORK WITHIN THE RESEARCH REALM: A. SENTARA PARTNERED WITH CUPRON AND EOS SURFACES IN 2013 TO LAUNCH THE WORLD'S LARGEST CLINICAL TRIAL TO TEST THE EFFECTIVENESS OF COPPER-INFUSED HARD SURFACES AND LINENS IN PREVENTING HOSPITAL - ACQUIRED INFECTIONS. SENTARA EXPANDED THE USE OF THE COPPER-INFUSED LINENS AND SURFACES BEYOND SENTARA LEIGH HOSPITAL AND A SMALL AREA OF SENTARA NORFOLK GENERAL HOSPITAL. MATERIALS ARE NOW AT 5 SENTARA HOSPITAL LOCATIONS PLUS ONE SENTARA NURSING CENTER. THIS WILL ALLOW US TO EXPAND THE REACH OF THE CURRENT RESEARCH STUDY THAT IS TESTING THE EFFECTIVENESS OF THESE MATERIALS IN A CLINICAL SETTING. EARLY RESULTS OF THE RESEARCH ARE EXPECTED IN 2016, WHICH WILL ENABLE SENTARA TO CHART A COURSE FOR FURTHER USE THROUGHOUT SENTARA. B. CARDIAC: THROUGH THE SENTARA CARDIOVASCULAR RESEARCH INSTITUTE, CARDIOLOGISTS AND UNIQUELY TRAINED REGISTERED NURSE RESEARCH COORDINATORS MAKE SIGNIFICANT STRIDES IN ADVANCING THE UNDERSTANDING AND TREATMENT OF THE NO. 1 KILLER IN AMERICA: CARDIOVASCULAR DISEASE. AS THE PREEMINENT CARDIAC RESEARCH INSTITUTE IN THE MID-ATLANTIC REGION, SENTARA HEART WORKS COLLABORATIVELY WITH LOCAL INSTITUTIONS, GOVERNMENT AGENCIES AND BIOMEDICAL COMPANIES ON NATIONALLY AND INTERNATIONALLY RECOGNIZED CLINICAL RESEARCH TRIALS. WE FOCUS OUR EFFORTS ON DISCOVERING MORE EFFECTIVE CARDIOVASCULAR TREATMENTS AND PROTOCOLS WHILE ELIMINATING THOSE THAT ARE POTENTIALLY HARMFUL OR NOT AS BENEFICIAL. OUR ULTIMATE GOAL IS TO PROVIDE ENHANCED CLINICAL CARE THAT ADVANCES PATIENT OUTCOMES AND IMPROVES THE OVERALL HEALTH OF OUR COMMUNITY. OUR RESEARCH TOUCHES ON EVERY ASPECT OF HEART CARE, INCLUDING MEDICAL DEVICES, HEART FAILURE, ELECTROPHYSIOLOGY, CARDIAC SURGERY, CARDIAC INTERVENTIONAL PROCEDURES, STRUCTURAL HEART DISEASE, AND THE MEDICAL MANAGEMENT OF CORONARY ARTERY DISEASE RISK FACTORS SUCH AS DIABETES AND HIGH CHOLESTEROL. COLLECTIVELY, OUR RESEARCH NURSES COORDINATE MORE THAN 80 CLINICAL TRIALS AT ANY GIVEN TIME, SHEPHERDING PARTICIPANTS THROUGH THE ENTIRE TRIAL PROCESS, PROVIDING CARE DURING PERIODS OF NEED, AND TIRELESSLY ADVOCATING FOR THEIR PATIENTS' WELL-BEING. C. CANCER: WITHIN THE SENTARA CANCER NETWORK, CLINICIANS AND ACADEMIC RESEARCHERS WORK TOGETHER TO ELEVATE CARE FOR PATIENTS. THIS COLLABORATIVE PHILOSOPHY FOSTERS INNOVATION IN THE NETWORK AND DRIVES ACCESS TO CLINICAL TRIAL OPTIONS FOR OUR PATIENTS. MEDICAL ONCOLOGISTS IN THE SENTARA CANCER NETWORK COMMUNITIES ARE ESPECIALLY INSTRUMENTAL IN CONNECTING PATIENTS WITH CLINICAL TRIALS - HELPING TO ACHIEVE THE COMMISSION ON CANCER'S PRINCIPLE TO DELIVER QUALITY CARE CLOSE TO HOME. THERE ARE PROMISING CLINICAL TRIALS BEING CONDUCTED ALL OVER THE COUNTRY FOR PATIENTS WITH CANCER, AND MANY OF THESE ARE ACCESSIBLE TO PATIENTS IN THE SENTARA CANCER NETWORK. OPPORTUNITIES TO PARTICIPATE IN CLINICAL TRIALS HAVE OPENED UP PATIENT CARE OPTIONS, INCLUDING ACCESS TO CUTTING-EDGE MEDICINE. OUR PARTICIPATION IN CLINICAL TRIALS ALSO CONTRIBUTES TO CANCER LAB RESEARCH VIA TISSUE DONATION, RETROSPECTIVE CHART STUDIES ON CONTROL GROUPS AND PARTICIPATION. OUR CLINICAL TRIALS INCLUDE EFFICACY AND SAFETY TRIALS FOR INVESTIGATIONAL BIOLOGICS; COMBINATION TRIALS FOR ONCOLOGY DRUGS; SURGICAL AND RADIATION THERAPY RESEARCH TRIALS; ADJUVANT AND MAINTENANCE DRUG TRIALS, POSTOPERATIVE ONCOLOGY OPTIONS; AND RETROSPECTIVE CHART REVIEWS. IX. BUILDING FOR THE FUTURE: A. SENTARA NORTHERN VIRGINIA MEDICAL CENTER, LOCATED IN WOODBRIDGE, VIRGINIA, COMPLETED CONSTRUCTION ON ITS NEW SURGERY CENTER, TOOK POSSESSION IN DECEMBER 2015 AND BEGAN PERFORMING SURGERIES IN JANUARY 2016. SENTARA NORTHERN VIRGINIA MEDICAL CENTER ALSO LAUNCHED A CARDIAC ELECTROPHYSIOLOGY PROGRAM AND THE CONSTRUCTION OF A DEDICATED ELECTROPHYSIOLOGY LAB IS UNDERWAY WITH A JULY 2016 COMPLETION TARGET DATE. THE WEIGHT LOSS SURGERY SERVICE AT SENTARA NORTHERN VIRGINIA MEDICAL CENTER ACHIEVED THE DESIGNATION AS A BLUE DISTINCTION CENTER+ FOR BARIATRIC SURGERY BY ANTHEM, INC. THIS, ALONG WITH RECEIVING THE AETNA INSTITUTE OF QUALITY (IOQ) BARIATRIC PROGRAM AND CIGNA 3 STAR BARIATRIC CENTER, DEMONSTRATES A PROVEN TRACK RECORD FOR DELIVERING FEWER COMPLICATIONS AND READMISSIONS THAN FACILITIES WITHOUT THESE DESIGNATIONS. B. SENTARA RMH MEDICAL CENTER, LOCATED IN HARRISONBURG, VIRGINIA, BROKE GROUND ON THE NEW SENTARA TIMBER WAY HEALTH CENTER. THIS NEW CENTER WILL BE A COMBINATION OF THE CURRENT TIMBERVILLE HEALTH CARE LOCATION AND SPRINGBROOK FAMILY MEDICINE IN BROADWAY. THE CENTER WILL ALSO OFFER X-RAY, LABORATORY AND REHABILITATION SERVICES. THIS NEW, LARGER, MORE COMPREHENSIVE CENTER WILL TRULY MEET THE NEEDS OF THE COMMUNITY IN A SINGLE LOCATION. SENTARA RMH MEDICAL CENTER COMPLETED CONSTRUCTION OF THE SENTARA RMH ORTHOPEDIC CENTER AND OPENED TO PATIENTS. THE SENTARA RMH SCHOOL OF HISTOTECHNOLOGY HELD ITS FIRST GRADUATION CEREMONY ON JUNE 3, 2015. THE FIRST CLASS CONSISTED OF EIGHT STUDENTS, FOUR OF THEM GOING ON TO WORK AT SENTARA HOSPITALS. SENTARA RMH MEDICAL CENTER IS THE ONLY HOSPITAL IN THE SENTARA SYSTEM THAT HAS A SCHOOL OF HISTOTECHNOLOGY, AND THERE IS ONLY ONE OTHER HOSPITAL-BASED HTL SCHOOL IN THE UNITED STATES. SIX STUDENTS HAVE ENROLLED IN THE SECOND CLASS WITH GRADUATION SCHEDULED FOR JUNE, 2016. FORM 990, PART III, LINE 4A C. SENTARA MARTHA JEFFERSON HOSPITAL, LOCATED IN CHARLOTTESVILLE, VIRGINIA, PARTNERED WITH THE REGION 10 COMMUNITY SERVICES BOARD TO OPEN THE PETERSON HEALTH CENTER. REGION 10 COMMUNITY SERVICES BOARD IS PART OF A STATEWIDE NETWORK OF 40 COMMUNITY SERVICES BOARDS WORKING TO PROVIDE MENTAL HEALTH, INTELLECTUAL DISABILITY AND SUBSTANCE USE SERVICES IN CENTRAL VIRGINIA. THE PETERSON HEALTH CENTER OPENED IN DOWNTOWN CHARLOTTESVILLE TO PROVIDE PREVENTATIVE CARE, INCLUDING VACCINES AND PHYSICALS, TREATMENT OF ACUTE ILLNESSES, DIABETES AND HIGH BLOOD PRESSURE MANAGEMENT, WOMEN'S HEALTH SERVICES AND GERIATRIC MEDICINE. FIRST TO SENTARA, SENTARA MARTHA JEFFERSON HOSPITAL INTRODUCED A NEW ONLINE TOOL WHERE PATIENTS CAN "CHECK-IN" TO THE EMERGENCY ROOM BY "APPOINTMENT", THUS PROVIDING A FAR IMPROVED CUSTOMER EXPERIENCE. THIS NEW ONLINE TECHNOLOGY IS BEING USED FOR THE EMERGENCY ROOM AT THE SENTARA MARTHA JEFFERSON HOSPITAL AND AT THE EMERGENCY ROOM ON THE OUTPATIENT CAMPUS, SENTARA MARTHA JEFFERSON OUTPATIENT CARE CENTER. SENTARA MARTHA JEFFERSON HOSPITAL INTRODUCED 3D-MAMMOGRAPHY IN 2015, WHICH MAKES IT POSSIBLE FOR RADIOLOGISTS TO SEE INSIDE THE BREAST IN GREATER DETAIL AND DETECT CANCERS THAT MAY HAVE OTHERWISE BEEN OBSCURED. D. HAMPTON ROADS (SOUTHEASTERN VIRGINIA): I. SENTARA BROKE GROUND ON A MEDICAL OFFICE BUILDING LOCATED IN CHESAPEAKE, VIRGINIA, CALLED SENTARA EDINBURGH. SLATED TO OPEN IN LATE 2016, SERVICES INCLUDE URGENT CARE, PRIMARY CARE, IMAGING, PHYSICAL THERAPY AND A YMCA. II. SENTARA LEIGH HOSPITAL, LOCATED IN NORFOLK, VIRGINIA, OPENED ITS 5-STORY WEST TOWER IN 2015 AND BEGAN CONSTRUCTION ON THE FINAL PHASE OF ITS EIGHT YEAR ON-SITE RENOVATION, A TWO-STORY ATRIUM FEATURING PATIENT CHECK-IN AND MEETING SPACE. III. GROWING AS A MEDICAL DESTINATION CENTER, SENTARA NORFOLK GENERAL HOSPITAL, LOCATED IN NORFOLK, VIRGINIA, CONTINUED TO INTRODUCE AND/OR EXPAND ITS QUATERNARY SERVICES, TOTALING 17 PROGRAMS. IN 2015 ALONE, SENTARA NORFOLK GENERAL HOSPITAL CARED FOR 30 MORE OUT OF AREA PATIENTS THAN IN 2014 FROM AREAS OUTSIDE OF HAMPTON ROADS. SENTARA NORFOLK GENERAL HOSPITAL RECEIVED APPROVAL FROM SENTARA LEADERSHIP TO EMBARK ON A FIVE-YEAR, $199.4 MILLION EXPANSION AND MODERNIZATION PROJECT. THE PLAN WILL ADD FLOORS, WINGS, EXPAND AND MODERNIZE 23 OPERATING ROOMS, CONSOLIDATE ICU BEDS ON TWO NEW FLOORS, EXPAND THE EMERGENCY ROOM, CREATE A STATE-OF-THE-ART NEONATAL INTENSIVE CARE UNIT AND ADD A ROOFTOP HELIPAD FOR NIGHTINGALE, SENTARA'S AIR AMBULANCE, AND OTHER MEDICAL HELICOPTERS. ADDITIONALLY, SENTARA NORFOLK GENERAL CELEBRATED ITS 30TH ANNIVERSARY AS A LEVEL I TRAUMA CENTER. IV. SENTARA VIRGINIA BEACH GENERAL HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, LAUNCHED SENTARA TO HOME, A STOREFRONT AND PATIENT SERVICES ENABLING PATIENTS TO GO HOME WITH THEIR MEDICATIONS AND OTHER POST-DISCHARGE NEEDS FULFILLED PRIOR TO LEAVING THE HOSPITAL. A TRANSITION SPECIALIST ENSURES THAT EACH PATIENT HAS DISCHARGE FOLLOW UP NEEDS ADDRESSED. SENTARA VIRGINIA BEACH GENERAL LAUNCHED A BACK AND NECK PROGRAM FOR SPINE SURGERY CASES. THIS SPECIALIZED PROGRAM BRINGS TOGETHER A TEAM INCLUDING EXPERT SURGEONS WITH CARING AND SPECIALLY TRAINED NURSES, THERAPISTS AND OTHER HEALTH PROFESSIONALS. THE GOAL IS TO PROVIDE SEAMLESS, COORDINATED CARE THAT REDUCES PAIN AND GETS PATIENTS BACK TO THEIR ACTIVITIES AS SOON AS POSSIBLE. ADDITIONALLY, SENTARA VIRGINIA BEACH GENERAL HOSPITAL CELEBRATED ITS 50TH ANNIVERSARY OF PROVIDING QUALITY CARE TO THE COMMUNITY. V. SENTARA CAREPLEX HOSPITAL, LOCATED IN HAMPTON, VIRGINIA, FILED A CERTIFICATE OF PUBLIC NEED APPLICATION TO THE COMMONWEALTH OF VIRGINIA TO REESTABLISH OBSTETRIC SERVICES. VI. SENTARA OBICI HOSPITAL, LOCATED IN SUFFOLK, VIRGINIA, FILED A CERTIFICATE OF PUBLIC NEEDS APPLICATION FOR TEN ADDITIONAL INPATIENT PSYCHIATRIC BEDS AND RECEIVED APPROVAL IN FEBRUARY 2016. A REAL BREAKTHROUGH FOR IDENTIFYING AND VIEWING TUMORS NEAR MOVING ORGANS, A 4D CT IS NOW AVAILABLE AT SENTARA OBICI HOSPITAL. VII. SENTARA PRINCESS ANNE HOSPITAL, LOCATED IN VIRGINIA BEACH, VIRGINIA, DESIGNATED A PEDIATRIC TRACK IN THE EMERGENCY DEPARTMENT WITH A SEPARATE WAITING AREA, KID-FRIENDLY COLORS AND GRAPHICS IN PATIENT ROOMS, AND SPECIALLY-TRAINED STAFF. PROGRAM DEVELOPMENT WAS COMPLETED AND IMPLEMENTATION IS UNDERWAY FOR THE DEAN ORNISH INTENSIVE CARDIAC REHABILITATION PROGRAM AIMED AT REVERSING HEART DISEASE. VIII. SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER, LOCATED IN WILLIAMSBURG, VIRGINIA, OFFERS A NEW PEDIATRIC OBSERVATION UNIT IN THE EMERGENCY ROOM. ADDITIONALLY, THEY OPENED AN OUTPATIENT REHABILITATION SITE AT THE YMCA IN GLOUCESTER, VIRGINIA. IX. SENTARA KITTY HAWK, AN OUTPATIENT CAMPUS LOCATED IN KITTY HAWK, NORTH CAROLINA, OBTAINED A NEW LARGE-BORE MRI; INTRODUCED PRIMARY CARE IN EDENTON, NORTH CAROLINA; LAUNCHED A SINGLE/LOCAL PRIMARY CARE CALL CENTER TO THE REGION; AND PREPARED FOR THE OPENING OF A NEW SENTARA URGENT CARE THAT OFFICIALLY OPENED ON JANUARY 4, 2016. E. SOUTH BOSTON/HALIFAX: FEBRUARY 2, 2015 MARKED THE INTRODUCTION OF THE SENTARA BRAND INTO THE HALIFAX SERVICE AREA. SENTARA HALIFAX REGIONAL HOSPITAL, LOCATED IN SOUTH BOSTON, VIRGINIA, NEARED COMPLETION OF A MAJOR EXPANSION OF TWO NURSING CARE CENTERS, SENTARA MEADOWVIEW TERRACE AND SENTARA WOODVIEW, WITH OCCUPANCY TAKING PLACE IN MAY 2016. ADDITIONALLY, CAPITAL FUNDING WAS APPROVED TO INTRODUCE EPIC, THE ELECTRONIC MEDICAL RECORD USED THROUGHOUT SENTARA, PLANNED FOR 2017. PRIMARY CARE GROWTH AND SERVICE DELIVERY ENHANCEMENTS WERE A TOP PRIORITY FOR SENTARA'S MEDICAL GROUP IN THE HALIFAX SERVICE AREA. THE SENTARA CLARKSVILLE FAMILY MEDICINE CLINIC EXPANDED ITS PHYSICAL LOCATION AND OTHER PRIMARY CARE OFFICES BEGAN OFFERING EXPANDED OFFICE HOURS TO ALLOW FOR GREATER PATIENT ACCESS. SPECIALTY CARE SERVICES, INCLUDING CARDIAC AND GENERAL SURGERY SERVICES, WERE ADDED TO THE SENTARA PRIMARY CARE CLINICS; AS IT WAS RECOGNIZED THAT ALL PATIENTS CANNOT MAKE THEIR WAY TO SENTARA HALIFAX REGIONAL HOSPITAL OR SPECIALIST OFFICES IN SOUTH BOSTON FOR THESE SPECIALIZED SERVICES. F. SENTARA ENTERPRISES: SENTARA ENTERPRISES CONTINUES TO FOCUS ON IMPROVING QUALITY, AND THIS WAS DEMONSTRATED IN 2015 WITH SENTARA ENTERPRISES HAVING AN ACCREDITATION SURVEY WITH ZERO DEFICIENCIES. G. SENTARA LIFE CARE: SENTARA LIFE CARE IS COMPRISED OF ASSISTED LIVING CENTERS, NURSING HOMES, MOBILE MEALS AND THE PROGRAM FOR THE ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE). IN 2015, SENTARA LIFE CARE ADOPTED THE USE OF COPPER INFUSED LINENS AT ONE OF THE NURSING CENTERS. JUST AS HAS BEEN IMPLEMENTED AT FIVE SENTARA HOSPITALS, THIS MATERIAL IMPLEMENTATION WILL ENABLE SENTARA TO MEASURE THE EFFECTIVENESS IN PREVENTING HOSPITAL-ACQUIRED INFECTIONS. OUR NURSING HOME IN BARCO, NORTH CAROLINA TRANSFORMED A RESIDENT WING TO SERVE AS A MORE DEFINED INPATIENT REHABILITATION UNIT WITH A LARGER, MORE MODERN GYMNASIUM. THE CONSOLIDATED UNIT WITH 23 BEDS WILL ENHANCE THE APPEAL OF SENTARA LIFE CARE - CURRITUCK FOR REHABILITATION TO RESIDENTS IN NORTHEASTERN NORTH CAROLINA. SENTARA LIFE CARE BROKE GROUND ON A NEW "HOUSEHOLD" MODEL OF CARE - SENTARA NURSING AND REHABILITATION CENTER- IN CHESAPEAKE, VIRGINIA. THIS NEW CENTER IS EXPECTED TO OPEN IN FALL 2016. THE DESIGN OF THE 120-BED CENTER CALLS FOR "HOUSEHOLDS" OF 20 RESIDENTS EACH, WITH A KITCHEN SERVING EACH ONE, AN OUTDOOR GARDEN SETTING AND COMMON AREAS FOR VISITING AND ACTIVITIES. THERE WILL ALSO BE A 40-BED SHORT STAY PAVILION FOR POST-ACUTE REHABILITATION PATIENTS FEATURING A BISTRO WHERE PATIENTS AND FAMILIES CAN SHARE MEALS. LASTLY, SENTARA LIFE CARE RELOCATED PACE (PROGRAM FOR THE ALL-INCLUSIVE CARE FOR THE ELDERLY) FROM VIRGINIA BEACH TO NORFOLK, ALLOWING US TO SERVE MORE PARTICIPANTS IN A SPACIOUS, MODERN CLINIC WITH GREATER PRIVACY AND ROOM TO GROW. PACE PROVIDES TRANSPORTATION, MEALS, MEDICAL CARE AND SOCIALIZATION FOR SENIORS LIVING WITH THEIR FAMILIES, WHO QUALIFY FOR NURSING FACILITY LEVEL OF CARE. PACE SITES IN NORFOLK AND PORTSMOUTH TRANSITIONED TO THE ELECTRONIC MEDICAL RECORD USED THROUGHOUT SENTARA, EPIC, CREATING A MORE SEAMLESS CONNECTION FOR MEDICAL SERVICES PARTICIPANTS MAY REQUIRE. H. SENTARA MEDICAL GROUP (900+ PROVIDERS IN VIRGINIA AND NORTHEASTERN NORTH CAROLINA) I. EASE OF PATIENT ACCESS AND GROWING OUR SERVICES ARE MAJOR AREAS OF FOCUS FOR SENTARA MEDICAL GROUP. ALL OF THE SENTARA URGENT CARE LOCATIONS OFFER AN ONLINE OPTION TO "RESERVE YOUR SPOT" WHEREBY CONSUMERS CAN GO ONLINE, IDENTIFY THE URGENT CARE MOST CONVENIENT TO THEM, RESERVE "THEIR SPOT AND SHOW UP AT THE APPOINTED TIME TO BE SEEN. THUS, CONSUMERS CAN AVOID THE WAIT AND IT SETS EXPECTATIONS OF WHEN THEY WILL BE SEEN. FORM 990, PART III, LINE 4A II. SENTARA PARTNERED WITH PRATT MEDICAL CENTER TO FORM SENTARA PRATT MEDICAL GROUP. WITH 32 PROVIDERS AND 7 LOCATIONS IN THE AREAS OF FREDERICKSBURG, STAFFORD, KING GEORGE AND DAHLGREN, SENTARA NOW HAS A PRESENCE IN THE GREATER FREDERICKSBURG, VIRGINIA MARKET. SENTARA PRATT MEDICAL CENTER ALSO BRINGS AN ADDITIONAL IMAGING CENTER INTO THE SENTARA HEALTHCARE NETWORK. III. SENTARA MEDICAL GROUP HAS A MAJOR FOCUS ON CUSTOMER SERVICE. IN 2015, SENTARA MEDICAL GROUP DEPLOYED A SHORTER, ONLINE AND AUTOMATED PHONE CALL SURVEY THAT PATIENTS WOULD RECEIVE ON THE HEELS OF THEIR VISIT TO A SENTARA MEDICAL GROUP PROVIDER. THE CHANGE MORE THAN TRIPLED THE AMOUNT OF SURVEY RESPONSES, AND THE DATA WAS MORE REAL-TIME FOR US TO TAKE ACTION AS NECESSARY. X. QUALITY AND PATIENT SAFETY DISTINCTIONS A. AWARD-WINNING CARE- AS ALWAYS, SENTARA IS PROUD AND HUMBLED BY THE VARIOUS AWARDS AND RECOGNITIONS THE SYSTEM RECEIVED OVER THE COURSE OF THE YEAR. OUR MISSION IS TO IMPROVE HEALTH EVERY DAY. TO RECEIVE AN AWARD IS SIMPLY AN ADDED ACKNOWLEDGEMENT OF OUR MISSION - DRIVEN WORK. HERE ARE A FEW OF THE 2015 AWARDS AND RECOGNITIONS: I. FOR THE 15TH CONSECUTIVE YEAR, THE CARDIOLOGY AND HEART SURGERY PROGRAM AT SENTARA NORFOLK GENERAL HOSPITAL (SENTARA HEART HOSPITAL) WAS LISTED AMONG THE TOP 50 HEART PROGRAMS IN THE U.S. NEWS & WORLD REPORT 'BEST HOSPITALS' EDITION AND IMPROVED ITS RANKING FROM 41ST IN 2014 TO 31ST IN 2015. THE EAR, NOSE & THROAT PROGRAM AT SNGH ALSO MADE THE TOP 50 RANKING FOR THE SECOND CONSECUTIVE YEAR. II. SENTARA CANCER NETWORK, INCLUDING SEVEN SENTARA HOSPITALS IN THE SOUTHEASTERN VIRGINIA REGION, WAS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS' COMMISSION OF CANCER. THE SENTARA CANCER NETWORK REMAINS THE ONLY NETWORK-ACCREDITED CANCER PROGRAM IN VIRGINIA. III. ALL SENTARA HOSPITALS IN HAMPTON ROADS (SENTARA WILLIAMSBURG REGIONAL MEDICAL CENTER, SENTARA CAREPLEX HOSPITAL, SENTARA NORFOLK GENERAL HOSPITAL, SENTARA LEIGH HOSPITAL, SENTARA OBICI HOSPITAL, SENTARA VIRGINIA BEACH GENERAL HOSPITAL, AND SENTARA PRINCESS ANNE HOSPITAL) AND SENTARA MARTHA JEFFERSON HOSPITAL AND SENTARA RMH MEDICAL CENTER RECEIVE LEAPFROG'S HIGHEST "A" RATING FOR DELIVERING SAFE PATIENT CARE FOR 2015. IV. SENTARA COMPLETED THE TRANSITION TO DNV HEALTHCARE FOR ACCREDITATION AT ALL SENTARA HOSPITALS WITH SUCCESSFUL SURVEYS AT SENTARA HALIFAX REGIONAL HOSPITAL AND SENTARA ALBEMARLE MEDICAL CENTER. V. SENTARA LEIGH HOSPITAL FAMILY MATERNITY CENTER RECEIVED THE ADVANCE FOR NURSES 2015 BEST NURSING TEAM RUNNER UP STATUS. THIS WAS ONE OF SIX TEAMS REPRESENTED ACROSS THE NATION. VI. SENTARA MARTHA JEFFERSON HOSPITAL MEDICAL GROUP PRACTICES RECEIVED THE NCQA CERTIFICATION TO BECOME PATIENT CENTERED MEDICAL HOMES. MEDICAL HOMES PROVIDE PATIENT-CENTERED CARE THAT EMPHASIZES CARE COORDINATION AND COMMUNICATION AND WORKS TO GIVE PATIENTS THE HEALTHCARE EXPERIENCE THEY EXPECT. MEDICAL HOMES CAN ALSO LEAD TO IMPROVED QUALITY AND DECREASED COSTS. VII. TEN SENTARA HOSPITALS WERE RECOGNIZED WITH THE PLATINUM AWARD BY THE AMERICAN COLLEGE OF CARDIOLOGY FOR CONSISTENT HIGH PERFORMANCE IN TREATING HEART ATTACK PATIENTS. VIII. THE INTENSIVE CARE UNIT AT SENTARA MARTHA JEFFERSON HOSPITAL RECEIVED THE SILVER BEACON AWARD FOR EXCELLENCE FROM THE AMERICAN ASSOCIATION OF CRITICAL CARE NURSES. B. SENTARA LEIGH HOSPITAL BECAME THE LATEST HOSPITAL WITHIN THE SENTARA FAMILY TO EARN THE NURSING MAGNET DESIGNATION FROM THE AMERICAN NURSES CREDENTIALING CENTER. MAGNET SPEAKS TO A SUPPORTIVE WORKING ENVIRONMENT FOR NURSES AND SUPERIOR CLINICAL CARE BASED ON STRICT CRITERIA THAT MAGNET HOSPITALS MUST MEET. C. SENTARA IMPROVED VITAL CLINICAL COMMUNICATION WITH ALL PATIENTS BY DEPLOYING THE LANGUAGE ACCESS NETWORK ACROSS THE ENTERPRISE TO ADDRESS COMMUNICATION NEEDS FOR PATIENTS WHO ARE DEAF OR HARD OF HEARING, BLIND OR VISION-IMPAIRED, WITH LIMITED ENGLISH PROFICIENCY OR WHO CANNOT READ. THIS NEW TECHNOLOGY IMPROVES THE PATIENT AND FAMILY EXPERIENCE WHILE ENSURING THAT ALL SENTARA SITES OF CARE REMAIN COMPLIANT WITH THE AMERICANS WITH DISABILITIES ACT AND OTHER FEDERAL CIVIL RIGHT REGULATIONS. XI. OPTIMA HEALTH A. GROWTH OPTIMA HEALTH ESTABLISHED SENTARA ADVANTEDGE, A PROGRAM THAT ESTABLISHED STRATEGIC HEALTH PLAN PARTNERSHIPS - ALABAMA AND OHIO BEING THE FIRST TWO STATES REPRESENTING OPTIMA GROWTH OUTSIDE OF VIRGINIA. AS OF JANUARY 1, 2015, SENTARA ADVANTEDGE BEGAN SERVICE AS THE THIRD PARTY ADMINISTRATOR (TPA) FOR ABOUT 30,500 OHIOHEALTH EMPLOYEES. IN ALABAMA, SENTARA ADVANTEDGE BEGAN CONTRACTING WITH PROVIDERS FOR THE FIRST REGIONAL CARE ORGANIZATION (RCO) IN ALABAMA, WITH INITIAL PLANS TO COVER MORE THAN 180,000 MEDICAID ENROLLEES ACROSS 23 COUNTIES IN 2016. IN ADDITION, OPTIMA DESIGNED A NEW PRODUCT CALLED, OPTIMA HEALTH SELECT, FOR INDIVIDUAL MEMBERS. OPTIMA HEALTH SELECT OFFERS AN EXCLUSIVELY SENTARA QUALITY CARE NETWORK (SQCN) NETWORK TO MEMBERS LIVING IN VIRGINIA BEACH, NORFOLK, PORTSMOUTH AND CHESAPEAKE AND LAUNCHED IN JANUARY 2016. B. POPULATION HEALTH ANALYTICS TO MEET THE NEEDS OF UNDERSTANDING THE POPULATIONS WE SERVE, OPTIMA HEALTH IMPLEMENTED ENHANCED POPULATION HEALTH ANALYTICS CAPABILITIES TO SUPPORT OPTIMA'S STRATEGIC PARTNERSHIPS AND VALUE BASED REIMBURSEMENT MODELS AND TO PROVIDE MEANINGFUL PROVIDER REPORTING. C. QUALITY THERE ARE MANY EXAMPLES OF HOW OPTIMA HEALTH IS FOCUSED ON ENHANCING THE QUALITY OF CARE IT PROVIDES FOR MEMBERS. ONE SHINING EXAMPLE IS THE PRODUCT CALLED LIVONGO TM. DIABETES PATIENTS WHO ARE OPTIMA HEALTH MEMBERS NOW HAVE A NEW HAND-HELD WIRELESS DEVICE THAT MONITORS THEIR BLOOD SUGAR AND OTHER VITALS. THIS DATA IS STORED SECURELY IN THE CLOUD AND CAN BE ACCESSED REAL TIME BY PROVIDERS AND CERTIFIED DIABETES EDUCATORS TO COACH AND GUIDE THE MEMBER AS NEEDED. ADDITIONALLY, OPTIMA HEALTH AIMS TO IMPROVE ITS COMMUNICATION AND CONNECTIVITY WITH MEMBERS TO ENHANCE THE QUALITY OF CARE WE PROVIDE AND TO PROVIDE BETTER CUSTOMER SERVICE. IN 2014 AND CARRIED ON IN 2015, OPTIMA FAMILY CARE (MEDICAID MANAGED CARE) PARTNERED WITH TRACFONE AND VOXIVA TO TAKE ADVANTAGE OF A FEDERAL PROGRAM TO PROVIDE MORE THAN 10,000 OPTIMA FAMILY CARE MEMBERS WITH CELL PHONES. THESE PHONES HELP MEMBERS STAY IN TOUCH WITH THEIR PROVIDERS AND RECEIVE TEXT REMINDERS FOR WELL-BABY EXAMS AND OTHER SERVICES. MEMBERS ARE LIMITED TO 250 MINUTES PER MONTH AND CALLS TO MEMBER SERVICES DO NOT COUNT AGAINST THEIR MINUTES. THIS HAS BEEN A CREATIVE WAY FOR OPTIMA HEALTH TO HELP ENSURE BETTER OUTCOMES FOR MEDICAID FAMILIES AND LOWER COSTS OF CARE. XII. CONCLUSION: SENTARA HEALTHCARE IS COMMITTED TO IMPROVING HEALTH EVERY DAY. WE DO SO BY PROVIDING QUALITY CARE THROUGH EXPERT PROVIDERS, USING CUTTING-EDGE TECHNOLOGY, DEPLOYING MEDICAL BREAKTHROUGHS, AND PROVIDING EXCELLENT CUSTOMER SERVICE - ALL WITH A CONSTANT FOCUS ON INNOVATION. WE LOOK FORWARD TO ANOTHER YEAR OF GROWTH AND INNOVATION IN 2016. FORM 990, PART V, LINE 1A: FORM 1096 THE ORGANIZATION IS THE 501(C)(3) SOLE MEMBER OR SHAREHOLDER OF SEVERAL OTHER ORGANIZATIONS FOR WHICH IT MAINTAINS AGENCY RELATIONSHIPS AND ISSUES 1099S. THE NUMBER REPORTED IS A BEST ESTIMATE OF THE 1099S ATTRIBUTABLE TO THE ORGANIZATION. THE EXACT NUMBER CANNOT BE DETERMINED; AS SOME OF THE 1099S ISSUED BY THE ORGANIZATION ARE ATTRIBUTABLE TO MORE THAN ONE ENTITY, AND THERE IS NO REPORTING MECHANISM TO DETERMINE 1099S ATTRIBUTABLE SOLELY TO THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS OR FAMILY RELATIONSHIP OF OFFICERS, DIRECTORS: DAVID BERND AND HOWARD KERN HAVE A BUSINESS RELATIONSHIP. THE ORGANIZATION'S OFFICERS AND DIRECTORS SERVED TOGETHER ON THE BOARDS OF OTHER ORGANIZATIONS WITHIN THE SENTARA HEALTHCARE SYSTEM ("THE SYSTEM"), AS WELL AS JOINT VENTURES IN WHICH THE SYSTEM HAD AN OWNERSHIP INTEREST. SEE SCHEDULE R FOR A LISTING OF SUCH ENTITIES. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 REVIEW PROCESS THE ORGANIZATION USED ITS OWN IN-HOUSE TAX DEPARTMENT, HEADED BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT, TO BOTH PREPARE AND REVIEW ITS FORM 990. DURING THE PREPARATION AND REVIEW PROCESS, THE TAX DEPARTMENT WORKED CLOSELY WITH OTHER DEPARTMENTS, SUCH AS LEGAL, COMPENSATION AND BENEFITS, COMPLIANCE, FINANCE, AND MARKETING, TO ENSURE THAT A COMPLETE AND ACCURATE RETURN WAS FILED. FORM 990, PART VI, SECTION B, LINE 12C EXPLANATION OF MONITORING AND ENFORCEMENT OF CONFLICTS: DIRECTORS, BOARD-NOMINATED OFFICERS, AND KEY EMPLOYEES SUBMIT AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE AND CERTIFY TO THE COMPLETION AND ACCURACY OF THE INFORMATION DISCLOSED. THE ORGANIZATION'S GOVERNING BOARD OR APPROPRIATE COMMITTEE MONITORS TRANSACTIONS INVOLVING DISCLOSED POTENTIAL CONFLICTS OF INTEREST, TO ENSURE THAT THEY ARE REASONABLE AND AT ARM'S LENGTH. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION FOLLOWED PROCESSES AND PROCEDURES SET FORTH IN ITS GOVERNING DOCUMENTS TO ENSURE COMPLIANCE WITH ITS OBLIGATIONS AS A 501(C)(3) HEALTHCARE ORGANIZATION TO PAY DISQUALIFIED PERSONS REASONABLE COMPENSATION. SUCH PROCESSES AND PROCEDURES ARE INTENDED TO ESTABLISH THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERNAL REVENUE CODE SECTION 4958 REGULATIONS. THE COMPENSATION PHILOSOPHY OF THE ORGANIZATION IS TO BASE OVERALL COMPENSATION AND BENEFITS FOR EXECUTIVES ON NOT-FOR-PROFIT MARKET COMPARABLES, ADJUSTED AS APPLIED TO EACH EXECUTIVE, TAKING INTO CONSIDERATION THE INDIVIDUAL SKILLS, EXPERIENCE, TENURE AND PERFORMANCE OF THE EXECUTIVE BEING COMPENSATED AND OVERALL PERFORMANCE OF THE ORGANIZATION. IN LINE WITH THIS PHILOSOPHY, THE ORGANIZATION PERFORMED SUBSTANTIAL DUE DILIGENCE AS TO MARKET COMPARABLES. THE COMPENSATION COMMITTEE, WHICH CONSISTS OF BOARD MEMBERS WITHOUT CONFLICTS OF INTERESTS, ENGAGED AN OUTSIDE CONSULTANT, WHO REPORTS TO THE COMPENSATION COMMITTEE, TO CONDUCT A STUDY ASSESSING THE COMPETITIVENESS OF TOTAL COMPENSATION (INCLUDING CASH COMPENSATION, BENEFITS AND PERQUISITES) OF ITS SENIOR EXECUTIVES PRIOR TO MAKING DECISIONS REGARDING ANNUAL BASE SALARY ADJUSTMENTS, APPROVING INCENTIVE AWARDS, OR CONSIDERING PROGRAMMATIC CHANGES. THE STUDY COMPARED THE COMPENSATION OF THE ORGANIZATION'S SENIOR EXECUTIVES TO COMPENSATION DATA FROM MULTIPLE PUBLISHED SURVEY SOURCES BASED ON THE SENIOR EXECUTIVE'S FUNCTIONAL RESPONSIBILITY. IN CONDUCTING THE STUDY, THE CONSULTANT TARGETED OTHER NOT-FOR-PROFIT HEALTH SYSTEMS OF SIMILAR SIZE BASED ON NET REVENUE AND COMPLEXITY. FOR HEALTH PLAN POSITIONS, HEALTH PLANS WITH SIMILAR PREMIUMS, OR MEMBERS, WERE TARGETED. THE CONSULTANT ALSO CONDUCTS A REVIEW OF THE ORGANIZATION'S PERFORMANCE RELATIVE TO A GROUP OF NOT-FOR-PROFIT HEALTH SYSTEMS OF COMPARABLE SIZE AND SCOPE OF OPERATIONS EVERY YEAR. THE MOST RECENT STUDY COMPARED SENTARA'S PERFORMANCE TO 31 HEALTHCARE SYSTEMS BASED ON NET REVENUE GROWTH, OPERATING MARGIN, BOND RATING, AND QUALITATIVE PERFORMANCE MEASURES BASED ON RANKINGS FROM SDI'S NATIONAL TOP INTEGRATED HEALTH NETWORKS. OVERALL, THE CONSULTANT DETERMINED THAT SENTARA'S PAY WAS ALIGNED WITH ITS RELATIVE PERFORMANCE. THE COMPENSATION STUDY WAS PRESENTED TO THE ORGANIZATION'S COMPENSATION COMMITTEE, WHICH MADE ITS COMPENSATION DECISIONS BASED ON A)ITS REVIEW AND ANALYSIS OF THE PERFORMANCE OF BOTH THE ORGANIZATION AND ITS SENIOR EXECUTIVES AND, B) A REASONABLENESS OF COMPENSATION ANALYSIS AND OPINION FROM AN EXTERNAL EXPERT IN THE COMPENSATION OF EXECUTIVES IN THE TAX-EXEMPT HEALTH CARE FIELD. THE COMMITTEE'S BASES FOR ITS DECISIONS WERE DOCUMENTED IN COMMITTEE MINUTES TAKEN DURING THE MEETING AND THEN CIRCULATED FOR REVIEW AND APPROVAL. ALL DECISIONS REGARDING COMPENSATION WERE MADE BY THE COMMITTEE, WHICH CONSISTS OF BOARD MEMBERS WITHOUT CONFLICT OF INTERESTS. THIS PROCESS WAS USED TO ESTABLISH COMPENSATION FOR THE ORGANIZATION'S CEO, PRESIDENT AND COO, SENIOR VICE PRESIDENT AND CFO, AND CERTAIN SENIOR VICE PRESIDENTS AND CORPORATE VICE PRESIDENTS. THE PROCESS WAS LAST UNDERTAKEN DURING THE CURRENT TAX YEAR FOR ALL POSITIONS LISTED. FORM 990, PART VI, SECTION C, LINE 19 PROVISION OF GOVERNING DOCS, COI POLICY AND FINANCIALS TO PUBLIC: THE CONSOLIDATED FINANCIAL STATEMENTS FOR SENTARA HEALTHCARE AND SUBSIDIARIES WERE MADE PUBLICLY AVAILABLE THROUGH THE USE OF DAC BOND (DISCLOSURE DISSEMINATION AGENT) AND CAN BE FOUND ON THE INTERNET AT WWW.DACBOND.COM. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICTS OF INTEREST POLICY ARE GENERALLY NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART VI, LINE 14 DOCUMENT RETENTION POLICY: THE ORGANIZATION HAD A WRITTEN POLICY FOR DOCUMENT RETENTION AND DESTRUCTION WHICH WAS APPROVED BY SENIOR LEADERS OF THE SENTARA HEALTHCARE SYSTEM. FORM 990, PART VI, LINE 16B JOINT VENTURE POLICY: THE ORGANIZATION HAD A WRITTEN POLICY REQUIRING EVALUATION OF ITS PARTICIPATION IN JOINT VENTURE ARRANGEMENTS WITH COMMUNITY-BASED PHYSICIANS UNDER APPLICABLE FEDERAL TAX LAW. THIS POLICY WAS APPROVED BY MANAGEMENT. THE ORGANIZATION ALSO TOOK STEPS TO SAFEGUARD THE ORGANIZATION'S EXEMPT STATUS WITH RESPECT TO SUCH ARRANGEMENTS. FORM 990, PART XI, LINE 9: CAPITAL CONTRIBUTIONS TO SUBSIDIARIES -7,500,000. CHANGE IN FUNDED STATUS OF PENSION LIABILITY -72,788,345. PARTNERSHIP INCOME TAX > BOOK -638,009. BOOK RECLASS OF INTERCOMPOANY ACCTS TO EQUITY 128,679,950. 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THE DAILY TRANSFERS OF CASH, WHICH RESULT FROM THIS CONSOLIDATED CASH ARRANGEMENT, HAVE NOT BEEN REPORTED ON SCHEDULE R PART V.