2016-05-13T07:33:39-05:00 2015-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP SUITE 200 221 W PHILADELPHIA STREET YORK PA 174012993 990 2014-07-01 251709054 PINNACLE HEALTH MEDICAL SERVICES PINN 7172318245 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 WILLIAM H PUGH CFO 7172318245 2016-05-10 1 JULIUS GREEN CPA JD P00350393 7178467000 2014 2016-08-17 19:52:53Z WILLIAM H PUGH 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 87536034 0 X WWW.PINNACLEHEALTH.ORG X 1993 PA PINNACLE HEALTH MEDICAL SERVICES IS ENGAGED IN THE PROVISION OF PHYSICIAN SERVICES. 22 17 1007 23 0 0 0 0 60357983 70329948 -1297 -317070 14563688 16564395 74920374 86577273 300 269 0 0 70234120 80154379 0 0 0 27369959 29683123 97604379 109837771 -22684005 -23260498 29812266 33194298 18150255 24757147 11662011 8437151 X PINNACLE HEALTH MEDICAL SERVICES IS A TAX EXEMPT ENTITY THAT IS ENGAGED IN THE PROVISION OF BOTH PRIMARY AND SPECIALTY CARE PHYSICIAN SERVICES. 1 0 28905651 269 13684016 PINNACLE HEALTH MEDICAL SERVICES (PHMS) IS A TAX EXEMPT ENTITY THAT IS ENGAGED IN THE PROVISION OF PHYSICIAN SERVICES. THE PHYSICIAN SERVICES PROVIDED WITHIN PHMS SUPPORT AND ENHANCE THE SERVICES OF PINNACLE HEALTH HOSPITALS AND THE PINNACLE HEALTH SYSTEM.PHMS ALSO HAD VOLUNTEERS WHO PROVIDED VARIOUS DONATED SERVICES. DURING THE YEAR ENDED JUNE 30, 2015, THERE WERE 19 VOLUNTEERS WHO PROVIDED 439 DONATED HOURS VALUED AT $9,935. PHMS PROVIDED FREE CARE DURING THE YEAR TO 540 PATIENTS IN THE AMOUNT OF $276,660.BASED ON TOTAL EXPENSES, THE THREE LARGEST PHYSICIAN SERVICES INCLUDED WITHIN PHMS ARE:PINNACLE SPECIALTIES PRACTICE: THE SPECIALTIES PRACTICE IS THE SECOND LARGEST SEGMENT OF PHMS, COMPRISING 41% OF THE TOTAL PROGRAM EXPENSES OF PHMS. THE SPECIALTIES PRACTICES CURRENTLY OPERATE TWENTY FOUR SPECIALTY SITES THROUGHOUT CENTRAL PENNSYLVANIA. DURING THE FISCAL YEAR ENDED JUNE 30, 2015, SPECIALTY SITE VISITS TOTALED 176,605. MANAGEMENT CONSIDERS THE INVESTMENT IN SPECIALTY SERVICES CRITICAL TO MAINTAINING AN INTEGRATED DELIVERY SYSTEM AND TO THE FUTURE SUCCESS OF PINNACLE HEALTH SYSTEM. THE SPECIALTY PHYSICIAN PRACTICES INCLUDE THE FOLLOWING:SURGICAL ASSOCIATES: ON APRIL 1, 2010, PINNACLE HEALTH SURGICAL ASSOCIATES CAME TO FRUITION WHEN THE GENERAL SURGEONS AND STAFF OF CAPITAL AREA SURGICAL ASSOCIATES AND SUSQUEHANNA SURGEONS JOINED THE PINNACLE HEALTH NETWORK. EXCELLENT SURGICAL CARE DOESN'T JUST HAPPEN. IT'S THE COMBINATION OF SKILLED SURGEONS, THE LATEST TECHNOLOGY AND EQUIPMENT AND THE EXPERTISE OF THE OPERATING ROOM TEAM WORKING TOGETHER. THE MORE ADVANCED, THE MORE PRECISE, THE BETTER OUTCOME FOR THE PATIENT. PINNACLE HEALTH HAS A LONG HISTORY OF PROVIDING THE FINEST SURGICAL CARE IN CENTRAL PENNSYLVANIA, DATING TO THE OPENING OF OUR FIRST OPERATING ROOM IN 1900. TODAY, OUR OUTSTANDING TEAM OF GENERAL SURGEONS AT PINNACLE HEALTH SURGICAL ASSOCIATES CONTINUES THE TRADITION OF EXCELLENCE BY PERFORMING A WIDE RANGE OF OPEN AND MINIMALLY INVASIVE PROCEDURES. THE TEAM INCLUDES BOARD CERTIFIED AND FELLOWSHIP TRAINED PHYSICIANS WHO PROVIDE SUPERIOR SURGICAL SKILL AND CARE. WOUND & HYPERBARIC PROGRAM: THIS PROGRAM OPENED IN JANUARY 2010. IT PROVIDES EXPERT MEDICAL CARE FOR CHRONIC WOUNDS THAT HAVE FAILED PREVIOUS METHODS OF TREATMENT. THE USE OF SPECIALIZED INTENSIVE WOUND THERAPIES AND, IN SPECIFIC CIRCUMSTANCES, THE APPROVED USE OF HYPERBARIC OXYGEN THERAPY ENHANCES THE HEALING PROCESS IN AN ATTEMPT TO RETURN THE PATIENT TO THE HIGHEST LEVEL OF DAILY FUNCTIONING AND HEALING. ALSO, THE IMPLEMENTATION OF AN IN-PATIENT CONSULTATION PROGRAM AT HARRISBURG HOSPITAL, COMMUNITY GENERAL OSTEOPATHIC HOSPITAL AND THE WEST SHORE HOSPITAL WILL ALLOW FOR OPTIMAL PATIENT FOLLOW-UP AND REFERRALS. THE PROGRAMS ALSO PROVIDE FOR INCREASED EDUCATIONAL PROGRAMS FOR AREA PHYSICIANS, RESIDENTS AND MEDICAL STUDENTS IN THIS SPECIALTY. PROVIDING PART-TIME SERVICES AT LANCASTER GENERAL HOSPITAL HAS INCREASED AWARENESS OF OUR PROGRAM AND EXPERTISE IN CENTRAL PENNSYLVANIA.RHEUMATOLOGY: OPENING FOR BUSINESS ON MARCH 1, 2010, PINNACLE HEALTH'S RHEUMATOLOGY OFFICE WAS FOUNDED TO DIAGNOSE AND TREAT THE SURROUNDING COMMUNITY THAT EXPERIENCED CONSTANT PAIN WITH RHEUMATIC DISEASES. WHETHER FACED WITH AN INFLAMMATION OF THE JOINTS, TENDONS OR MUSCLES, OR CONSTANT PAIN, PINNACLE HEALTH'S RHEUMATOLOGY DOCTORS HELP DIAGNOSE THE CONDITION AND FIND THE COURSE OF TREATMENT SUITABLE FOR EACH INDIVIDUAL. MANY TYPES OF RHEUMATIC DISEASES ARE NOT EASILY IDENTIFIED IN THE EARLY STAGES AND BECAUSE SOME ARE MORE COMPLEX THAN OTHERS, MORE THAN ONE VISIT MAY BE NECESSARY. AS SUCH, OUR RHEUMATOLOGISTS WORK CLOSELY WITH PATIENTS TO DESIGN INDIVIDUALIZED TREATMENTS THAT MEET THEIR NEEDS. PINNACLE HEALTH NEUROSURGERY AND NEUROSCIENCES INSTITUTE: THIS PROGRAM WAS ESTABLISHED IN JANUARY 2008 TO MEET THE EMERGENT NEED FOR NEUROSURGEONS IN THE HARRISBURG AREA. PENNSYLVANIA NEUROSURGERY AND NEUROSCIENCES INSTITUTE JOINED THIS PRACTICE IN SEPTEMBER 2013 AND PA NEUROLOGICAL ASSOCIATES JOINED IN NOVEMBER 2013.PINNACLE HEALTH ENDOCRINOLOGISTS: THIS PROGRAM WAS ESTABLISHED IN JANUARY 2005 AND PROVIDES BOTH INPATIENT AND OUTPATIENT SERVICES. PINNACLE HEALTH ENDOCRINOLOGY ASSOCIATES PROVIDES COMPREHENSIVE CARE FOR ALL ENDOCRINOLOGY DISORDERS, ESPECIALLY COMPLEX PATIENTS WITH DIABETES. WE SPECIALIZE IN INSULIN PUMPS, CONTINUOUS GLUCOSE MONITORING, THYROID DISORDERS INCLUDING THYROID BIOPSIES, THYROID CANCERS, COMPREHENSIVE CARE FOR OSTEOPOROSIS WITH SPECIALIZED NURSE CARE, AND ALL THE OTHER ENDOCRINE DISORDERS INCLUDING POLYCYSTIC OVARY SYNDROME, ADRENAL AND PITUITARY DISEASES.PINNACLE HEALTH PEDIATRIC SURGERY - THIS PROGRAM CONSISTS OF THE EMPLOYMENT OF ONE FULL-TIME PEDIATRIC SURGEON WHO WILL CONTINUE TO PRACTICE PEDIATRIC SURGERY FULL-TIME FOR PINNACLE HEALTH HOSPITALS. A STABLE, HIGH QUALITY PEDIATRIC SURGERY SERVICE IS AN ESSENTIAL COMPONENT OF THE WOMEN AND CHILDREN HEALTH SERVICE AT PINNACLE.PINNACLE HEALTH INFECTIOUS DISEASE ASSOCIATES - THIS PROGRAM WAS ESTABLISHED IN JANUARY 2005. PINNACLE HEALTH INFECTIOUS DISEASE ASSOCIATES SPECIALIZES IN THE TREATMENT OF ANY ORGAN INFECTION AND INFECTIOUS DISEASES INCLUDING, BUT NOT LIMITED TO, OSTEOMYELITIS, LYME DISEASE, MENINGITIS, HIV, AND HEPATITIS C. BOTH INPATIENT AND OUTPATIENT SERVICES ARE PROVIDED WHICH INCLUDES A TRAVEL CLINIC.PH PALLIATIVE CARE - THE FOCUS OF THIS PROGRAM IS ON THE INPATIENT CARE OF PATIENTS DURING THE FINAL MONTHS OR DAYS OF THEIR LIVES, SEEKING TO IMPROVE BOTH THE BALANCE OF CARE VIA COMFORT AND DIGNITY AND THE QUALITY OF PAIN RELIEF TREATMENT. IN THE ROLE AS THE PAIN TEAM OF THE SYSTEM, THE PALLIATIVE CARE SPECIALIST WILL BE AVAILABLE TO ANY PATIENT WHO IS IN NEED OF SPECIALIZED ASSESSMENT AND TREATMENT OF DIFFICULT OR INTRACTABLE PAIN. THIS DOVETAILS NICELY WITH THE CANCER CENTER PROGRAM. END-OF-LIFE CARE HAS BEEN IDENTIFIED NATIONALLY AS A MOMENT OF TIME WHICH TAKES UP AN INORDINATE AMOUNT OF HEALTH CARE RESOURCES, WITH GREAT VARIATION GEOGRAPHICALLY AND LITTLE IN THE WAY OF DEMONSTRABLE VALUE; THE PALLIATIVE CARE STAFF PROVIDE END OF LIFE CARE TO OUR PATIENTS SO THAT DYING WITH DIGNITY IS AN OPTION FOR ALL.BREAST CANCER CENTER - THIS PROGRAM HAS BEEN ESTABLISHED TO PROVIDE PATIENTS WITH A CENTRALIZED LOCATION FOR THEIR BREAST CARE NEEDS, INCLUDING BREAST HEALTH SURGEONS, BREAST HEALTH NURSE SPECIALISTS, CERTIFIED MAMMOGRAPHERS, RADIOLOGISTS, PATHOLOGISTS AND PHYSICAL THERAPISTS, ALL OF WHOM ARE COMMITTED TO PROVIDING PATIENTS WITH THE MOST UP-TO-DATE TECHNOLOGY AND CARE FOR THEIR COMPLETE BREAST HEALTH.THE WOMEN'S CANCER CENTER IS A UNIQUE PRACTICE, ADDRESSING THE PREVENTIVE, DIAGNOSTIC, SURGICAL, MEDICAL, AND CHEMOTHERAPY NEEDS OF WOMEN WITH GYNECOLOGIC CANCER AND OTHER COMPLICATED CONDITIONS OF THE FEMALE REPRODUCTIVE SYSTEM. RADIATION ONCOLOGY OPENED IN JUNE OF 2013 GIVING PATIENTS THE MOST ADVANCED TECHNOLOGY IN CENTRAL PA. OUR SUPERIOR TREATMENT CAPABILITIES ALLOW US TO PROVIDE THE PATIENT WITH SHORTER TREATMENT TIMES AND FEWER SIDE EFFECTS WHILE ELIMINATING THEIR CANCER CELLS. WE MAINTAIN A HIGH LEVEL OF SKILL AND EXPERTISE WHILE PAYING CAREFUL ATTENTION TO THE PATIENT'S COMFORT AND CONCERN. MEDICAL ONCOLOGY ASSOCIATES LOCATED IN THE MEDICAL SCIENCES PAVILION ON THE COMMUNITY CAMPUS, SPECIALIZES IN THE USE OF MEDICATIONS, SUCH AS CHEMOTHERAPY, HORMONES AND PAIN MEDICATIONS IN THE MANAGEMENT OF CANCER.PSYCHOLOGICAL ASSOCIATES IS STAFFED BY LICENSED, MASTERS LEVEL, PSY.D. AND PH.D. CLINICIANS WHO PROVIDE INDIVIDUAL, FAMILY OR MARITAL EVALUATIONS, THERAPY AND MEDICATION MANAGEMENT AS NEEDED TO ALL AGES. WE ALSO OFFER GROUP THERAPY SHOULD THE PATIENT AND HIS OR HER THERAPIST DETERMINE IT WOULD BE HELPFUL. GROUPS INCLUDE THE ANGER MANAGEMENT GROUP, MOM'S NAVIGATING THROUGH LIFE GROUP, AND ADOLESCENT GROUPS.PINNACLEHEALTH OBSTETRICS AND GYNECOLOGY SPECIALISTS OPENED IN OCTOBER 2013 AND IS COMMITTED TO PROVIDING EXCEPTIONAL MEDICAL CARE TO WOMEN THROUGHOUT THEIR LIVES. THE TEAM OF CULTURALLY SENSITIVE PROVIDERS USES THE MOST UP-TO-DATE INFORMATION AND PROCEDURES TO DELIVER THE BEST OBSTETRIC AND GYNECOLOGIC HEALTHCARE TO THEIR PATIENTS. WHETHER A PREGNANCY IS PROGRESSING NORMALLY OR A PATIENT NEEDS SPECIALIZED CARE, PINNACLEHEALTH'S TEAM OF DOCTORS, NURSES, SPECIALISTS AND EDUCATORS PROVIDE THE HIGHEST LEVEL OF CARE WHILE ALSO FOCUSING ON MAKING THE BIRTH EXPERIENCE AS POSITIVE AS POSSIBLE. PINNACLEHEALTH DELIVERS MORE BABIES THAN ANY OTHER HOSPITAL IN CENTRAL PENNSYLVANIA, WELCOMING MORE THAN 4,000 BABIES INTO THE WORLD EVERY YEAR AND MAKING US THE SIXTH IN THE STATE FOR DELIVERIES.MATERNAL FETAL MEDICINE OF CENTRAL PENNSYLVANIA IS A PRACTICE DEDICATED TO CARING FOR WOMEN WITH HIGH-RISK PREGNANCIES IF THEY AND THEIR BABIES NEED SPECIAL CARE. SERVICES INCLUDE: PERINATAL/PRECONCEPTION CONSULTATION FETAL ECHOCARDIOGRAPHY ULTRASOUND ASSESSMENT OF THE CERVIX 4D ULTRASOUND IMAGING GENETIC COUNSELING SERVICES AMNIOCENTESIS/CHORIONIC VILLUS SAMPLING FIRST TRIMESTER SCREENING IN-UTERO PROCEDURES ADVANCED OBSTETRICAL SURGERY 53021192 0 46787600 FAMILY CARE SERVICES - PRIMARY CARE IS THE LARGEST SEGMENT OF PHMS COMPRISING 48% OF THE TOTAL PROGRAM EXPENSES OF PINNACLE HEALTH MEDICAL SERVICES. PRIMARY CARE SERVICES ARE CURRENTLY PROVIDED THROUGH TWENTY-FIVE FAMILY CARE CENTERS LOCATED IN SURROUNDING CENTRAL PENNSYLVANIA COMMUNITIES. DURING THE FISCAL YEAR ENDED JUNE 30, 2015, PRIMARY CARE PATIENT VISITS TOTALED 358,966. 9519035 0 9519841 PINNACLE HEALTH CLINICS - THE CLINICS COMPRISE 9% OF THE TOTAL PROGRAM EXPENSES OF PHMS. THERE ARE SEVEN CLINIC FACILITIES THROUGHOUT CENTRAL PENNSYLVANIA THAT PROVIDE PATIENT CARE TO THE SURROUNDING COMMUNITY. DURING THE FISCAL YEAR ENDED JUNE 30, 2015, CLINICS HAD VISITS THAT TOTALED 69,293. THE CLINICS MAINLY SERVE AN UNINSURED, UNDER-INSURED, AND LARGE MEDICAL ASSISTANCE COMMUNITY, AS IT LIVES ITS MISSION STATEMENT TO BE A CHARITABLE ORGANIZATION DEDICATED TO MAINTAINING AND IMPROVING THE HEALTH AND QUALITY OF LIFE. THE CLINICS INCLUDE THE FOLLOWING:KLINE HEALTH CENTER - THIS PROGRAM PROVIDES PRIMARY, AS WELL AS SPECIALTY CARE, TO A LARGELY URBAN POPULATION. WHILE THE PRACTICE DOES SEE PRIVATE PATIENTS, MUCH OF THE POPULATION SERVED IS OF LOW INCOME AND/OR UNDER-INSURED. SINCE MANY OF OUR PATIENTS RELY ON PUBLIC TRANSPORTATION, KLINE IS ABLE TO MEET MANY OF THE PATIENTS' NEEDS AT ONE LOCATION. RESIDENT PHYSICIANS, UNDER THE SUPERVISION OF BOARD CERTIFIED PHYSICIAN FACULTY AS WELL AS SPECIALTY PHYSICIANS, COME TO KLINE TO SEE PATIENTS FOR THEIR ORTHOPEDIC, ENDOCRINE, NEUROLOGICAL, INFECTIOUS DISEASE, AND SURGICAL NEEDS. THE OFFICE IS MANAGED BY A FULL-TIME RN WHO OVERSEES A STAFF OF MEDICAL ASSISTANTS AND OTHER OFFICE SUPPORT STAFF TO MEET THE NEEDS OF THE PATIENTS AND PROVIDERS.CHILDREN'S AND TEEN CENTER - THIS PROGRAM PROVIDES PRIMARY ACUTE AND PREVENTIVE CARE PLUS SOME SPECIALTY SERVICES FOR NEWBORNS THROUGH CHILDREN 18 YEARS OF AGE. SPECIALTY SERVICES INCLUDE NEONATAL DEVELOPMENTAL CARE, LEAD POISONING DIAGNOSIS AND FOLLOW-UP, PEDIATRIC NEUROLOGY AND CARE FOR CHILDREN INFECTED WITH HIV.WOMEN'S INPATIENT SERVICES - THIS PROGRAM PROVIDES COMPREHENSIVE INPATIENT OBSTETRICAL AND GYNECOLOGICAL SERVICES TO A PATIENT POPULATION CONSISTING LARGELY OF A MANAGED CARE MEDICAL ASSISTANCE PATIENT BASE. THIS PROGRAM WAS ESTABLISHED IN 2007. WOMEN'S OUTPATIENT HEALTH CENTER - THIS PROGRAM PROVIDES COMPREHENSIVE OUTPATIENT OBSTETRICAL AND GYNECOLOGICAL SERVICES TO A LARGELY MANAGED MEDICAL ASSISTANCE PATIENT POPULATION.PH RESOURCE EDUCATION AND COMPREHENSIVE CARE FOR HIV (REACCH) - THIS PROGRAM WAS ESTABLISHED TO PROVIDE PRIMARY AND SPECIALTY MEDICAL CARE FOR PEOPLE (INCLUDING PREGNANT WOMEN AND THEIR EXPOSED INFANTS) WHO ARE HIV-POSITIVE AS WELL AS PROVIDE SUPPORT SERVICES FOR THESE PATIENTS. ADDITIONAL SERVICES PROVIDED TO THIS PATIENT POPULATION INCLUDE NUTRITIONAL COUNSELING, TRANSPORTATION TO MEDICAL APPOINTMENTS, VISION CARE, ASSISTANCE WITH MEDICATION CO-PAYMENTS, AND ASSISTANCE WITH MENTAL HEALTH COUNSELING AND PSYCHIATRIC CARE. THE PROGRAM IS PARTIALLY GRANT FUNDED AND ALSO PROVIDES REIMBURSEMENT TO PINNACLE HEALTH SYSTEM FOR SERVICES RENDERED TO PATIENTS WHO ARE HIV-POSITIVE AND ARE EITHER UNINSURED OR UNDER-INSURED. 257434 0 338491 WEST SHORE SURGERY CENTER (WSSC) - THE WEST SHORE SURGERY CENTER IS A LIMITED PARTNERSHIP IN WHICH PINNACLE HEALTH MEDICAL SERVICES IS THE GENERAL PARTNER WITH A 2% CONTROLLING INTEREST AND PINNACLE HEALTH HOSPITALS IS A LIMITED PARTNER WITH A 49% INTEREST. THE REMAINING 49% INTEREST IS HELD BY VARIOUS PHYSICIANS FROM THE AREA. 257434 0 338491 91703312 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 0 0 1007 1 0 0 0 0 0 0 0 0 0 0 X 22 17 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 PA X WILLIAM H PUGH CFO 7172318245 409 SOUTH SECOND ST PO BOX 8700 HARRISBURG PA 171058700 GEORGE GRODE CHAIRMAN 0.10 1.80 X 0 0 0 MICHAEL YOUNG PRESIDENT & CEO 2.40 38.60 X X 0 1218282 25702 CLARENCE ASBURY VICE CHAIRMAN 0.10 1.60 X 0 0 0 JOHN CAVANAUGH DIRECTOR 0.10 0.60 X 0 0 0 BONY DAWOOD DIRECTOR 0.10 1.40 X 0 0 0 MICHAEL FERNANDEZ DIRECTOR 0.10 0.40 X 0 0 0 FELIX GUTIERREZ DIRECTOR 0.30 39.70 X 0 509565 12536 JOHN HICKEY DIRECTOR 0.10 1.20 X 0 0 0 BARRY KAIN DIRECTOR 0.10 0.30 X 0 0 0 DANIEL KAMBIC DIRECTOR 0.30 39.40 X 0 111116 25693 KEVIN KELLY DIRECTOR/PHYSICIAN 38.80 0.20 X 0 203397 18659 STEVE KUSIC DIRECTOR 0.10 1.60 X 0 0 0 ROGER LEVIN DIRECTOR 0.10 1.40 X 0 0 0 DEBORAH MILLER DIRECTOR 0.10 1.20 X 0 0 0 MICHAEL MUNCHIE DIRECTOR 0.10 1.00 X 0 0 0 TINA NIXON DIRECTOR 0.10 0.60 X 0 0 0 KENNETH OKEN DIRECTOR 0.10 1.40 X 0 75000 0 CYNTHIA TOLSMA DIRECTOR 0.10 1.90 X 0 0 0 DENNIS WALSH DIRECTOR 0.10 0.80 X 0 0 0 E GERALD WOODWARD DIRECTOR 0.10 0.60 X 0 0 0 M RICHARD KLEIMAN DIRECTOR 0.10 0.60 X 0 0 0 CAROLYN KREAMER DIRECTOR 0.10 0.80 X 0 0 0 WILLIAM H PUGH TREASURER/ SR VP CORP. FIN 1.80 38.20 X 0 724542 22887 CHRISTOPHER P MARKLEY ESQ SEC'Y/SR VP STAT SVCS/GEN COUNSEL 0.00 40.00 X 0 460495 23002 NANCY HAMMONDS ASST. TREASURER 4.00 36.00 X 0 233459 24697 JAMES BLEICHER PRESIDENT/PHMS (RESIGNED 9/14) 40.00 X 632478 0 31631 PHILIP GUARNESCHELLI SR VP/COO 0.10 39.90 X 0 718900 34733 TIMOTHY CROWLEY CEO 40.00 X 86500 0 0 BARRY MOORE PHYSICIAN 40.00 X 721559 0 28515 STEPHEN POWERS PHYSICIAN 40.00 X 785710 0 30530 BRIJ SOOD PHYSICIAN 40.00 X 659389 0 32269 GREGORY WILLIS PHYSICIAN 40.00 X 634581 0 32135 JOSE MISAS PHYSICIAN 40.00 X 675449 0 29587 4195666 4254756 372576 151 0 1 0 WEATHERBY LOCUMS INC PO BOX 972633 DALLAS TX 75397 TEMPORARY PHYSICIAN STAFFING 1928850 IRON MOUNTAIN RECORDS MANAGEMENT PO BOX 27128 NEW YORK NY 10087 RECORDS MANAGEMENT 189062 HAMILTON HEALTH CENTER INC 110 SOUTH 17TH STREET HARRISBURG PA 17104 OB/GYN SERVICES 145435 ASSURANCE STAFFING INC 4660 TRINDLE RD CAMP HILL PA 17011 TEMPORARY STAFFING 119570 LISA DITULLIO ASSOCIATES 137 N WASHINGTON STREET NORWELL MA 02061 SYSTEMS CONSULTING 115486 8 PATIENT REVENUE, NET 621110 69991011 69991011 PHYSICIAN SERVICES/COVERAGE 621110 243034 243034 PHPA THERAPISTS 621110 52942 52942 WEST SHORE PARTNERSHIP 621400 42961 42961 70329948 18378 18378 684253 623313 60940 60940 60940 335448 -335448 -335448 -335448 I/C LOSS REIMBURSEMENT 900099 9314461 9314461 REPORTING/QUALITY INCENTIVES 900099 1653019 1653019 HIGHMARK INCENTIVE 900099 1511904 1511904 4024071 4024071 16503455 86577273 70329948 0 16247325 269 269 683380 683380 67790603 61609330 6181273 2396083 2160544 235539 5419153 4890424 528729 3865160 3478644 386516 8004928 800493 7204435 56042 56042 5550 5550 2495314 1992577 502737 87910 70328 17582 1580804 1201954 378850 1447489 947341 500148 6798373 6056377 741996 80279 72251 8028 449360 435881 13479 188788 188788 2644365 2375464 268901 116588 116588 MEDICAL SUPPLIES 5497873 5494847 3026 DUES AND SUBSCRIPTIONS 180125 180125 49335 49335 109837771 91703312 18134459 0 6643 6755 505803 4712996 6350352 7246987 340842 290045 511681 638557 1037541 1127681 22460145 10624748 11279806 11835397 13700 16694 7549681 7319186 2216217 0 29812266 33194298 13469135 15909843 4681120 4134308 0 4712996 18150255 24757147 X 11662011 8437151 11662011 8437151 29812266 33194298 X -23260498 20035638 X 0 1 X 1 0 X 4319769 1659577 2660192 6015642 2922099 3093543 12124734 6043072 6081662 11835397 INTERCOMPANY PAYABLES 4712996 4712996 X 107075474 19874888 19874888 87200586 -623313 -623313 86577273 110300334 623313 623313 109677021 160750 160750 109837771 PART X, LINE 2: THE PINNACLE HEALTH SYSTEM EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. AN ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS WAS REQUIRED AS A RESULT OF THIS EVALUATION IN THE AMOUNT OF $780 FOR THE FISCAL YEAR ENDED JUNE 30, 2015. NO ADJUSTMENT WAS REQUIRED FOR THE FISCAL YEAR ENDED JUNE 30, 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: INTERCOMPANY TRANSFERS 19,272,969. NET ASSETS RELEASED 762,669. INVESTMENT EXPENSES -160,750. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES RECORDED NET OF REVENUE ON 990 -623,313. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES RECORDED NET OF REVENUE ON 990 623,313. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT EXPENSES 160,750. X X 1 1 1 0 0 0 0 0 0 1 0 MICHAEL YOUNG PRESIDENT & CEO 0 736060 0 324970 0 157252 0 13000 0 12702 0 1243984 0 0 FELIX GUTIERREZ DIRECTOR 0 394357 0 93892 0 21316 0 0 0 12536 0 522101 0 0 KEVIN KELLY DIRECTOR/PHYSICIAN 0 146627 0 46138 0 10632 0 11090 0 7569 0 222056 0 0 WILLIAM H PUGH TREASURER/ SR VP CORP. FIN 0 487613 0 158533 0 78396 0 15600 0 7287 0 747429 0 0 CHRISTOPHER P MARKLEY ESQ SEC'Y/SR VP STAT SVCS/GEN COUNSEL 0 302600 0 102910 0 54985 0 14734 0 8268 0 483497 0 0 NANCY HAMMONDS ASST. TREASURER 0 163408 0 50310 0 19741 0 10061 0 14636 0 258156 0 0 JAMES BLEICHER PRESIDENT/PHMS (RESIGNED 9/14) 336101 0 140827 0 155550 0 12498 0 19133 0 664109 0 0 0 PHILIP GUARNESCHELLI SR VP/COO 0 457130 0 160128 0 101642 0 15600 0 19133 0 753633 0 0 BARRY MOORE PHYSICIAN 670461 0 25000 0 26098 0 15600 0 12915 0 750074 0 0 0 STEPHEN POWERS PHYSICIAN 742274 0 31626 0 11810 0 15600 0 14930 0 816240 0 0 0 BRIJ SOOD PHYSICIAN 530627 0 50000 0 78762 0 13106 0 19163 0 691658 0 0 0 GREGORY WILLIS PHYSICIAN 493300 0 123800 0 17481 0 13000 0 19135 0 666716 0 0 0 JOSE MISAS PHYSICIAN 491142 0 140725 0 43582 0 13000 0 16587 0 705036 0 0 0 PART I, LINE 1A THE ORGANIZATION PAYS FOR THE CEO'S CLUB DUES, WHICH ARE REPORTABLE AS TAXABLE COMPENSATION FOR THE CEO. THE CEO'S SPOUSE ACCOMPANIED THE CEO ON INFREQUENT TRIPS WHERE THE PRESENCE OF THE SPOUSE WAS EXPECTED. RELATED COSTS WERE MINIMAL AND WERE NOT INCLUDED IN THE CEO'S COMPENSATION. PART I, LINE 1B THERE IS A WRITTEN POLICY REGARDING THE PAYMENT OF CLUB DUES, HOWEVER, THERE IS NO WRITTEN POLICY REGARDING COMPANION TRAVEL. THE INFREQUENCY OF THE TRAVEL AND THE DE MINIMIS COSTS ASSOCIATED WITH THE ACTIVITY WERE DEEMED NOT TO RISE TO THE LEVEL WHERE A WRITTEN POLICY WAS CONSIDERED NECESSARY. PART I, LINE 3 PINNACLE HEALTH MEDICAL SERVICES RELIES ON PINNACLE HEALTH SYSTEM, A RELATED ORGANIZATION, TO ESTABLISH THE COMPENSATION FOR THE ORGANIZATION'S CEO. METHODS USED TO ESTABLISH COMPENSATION BY THE RELATED ORGANIZATION INCLUDE: * COMPENSATION COMMITTEE * INDEPENDENT COMPENSATION CONSULTANT * COMPENSATION SURVEY OR STUDY * APPROVAL BY THE COMPENSATION COMMITTEE OF THE BOARD PART I, LINE 4A JAMES BLEICHER RECEIVED $213,676 AS SEVERANCE UPON HIS SEPARATION FROM THE ORGANIZATION. PART I, LINE 7 THE COMPENSATION COMMITTEE OF THE BOARD, WITH ASSISTANCE FROM AN INDEPENDENT OUTSIDE ADVISOR, ESTABLISHES A COMPENSATION PHILOSOPHY TO COMPENSATE LEADERS OF THE ORGANIZATION AT THE MARKET MEDIAN WITH AN INCENTIVE OPPORTUNITY TO REACH THE 75TH PERCENTILE OF THE MARKET FOR THEIR POSITION. THE INCENTIVE OPPORTUNITY IS DIVIDED BETWEEN PERSONAL GOALS AND SYSTEM LEVEL GOALS. ALL GOALS ARE MEASURABLE AND ARE DESIGNED TO IMPROVE QUALITY OF CARE, PATIENT SAFETY, PATIENT EXPERIENCE, AND MANAGEMENT OF RESOURCES. PERFORMANCE IS REWARDED AT THREE LEVELS; THRESHOLD (IMPROVEMENT OVER THE BASELINE), TARGET (SIGNIFICANT IMPROVEMENT OVER THE PRIOR YEAR) AND OPTIMUM (STRETCH). DR HANFORD NDLOVU EMPLOYEE RECEIVABLE RELATED TO THE PURCHASE OF PHYSICIAN'S PRACTICE X 471000 290045 0 1 1 290045 FORM 990, PART III, LINE 2 THE ORGANIZATION OPENED TWO PINNACLE HEALTH FAST CARE LOCATIONS DURING THE YEAR WHICH HAD 6,793 VISITS. FORM 990, PART V, LINE 1: PINNACLE HEALTH SYSTEM, THE PARENT ENTITY OF A GROUP COMPRISED OF TAXABLE AND TAX-EXEMPT ORGANIZATIONS, IS THE COMMON REPORTING AGENT FOR THE GROUP AND FILES ALL 1099 FORMS FOR PINNACLE HEALTH MEDICAL SERVICES. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE CORPORATION IS PINNACLE HEALTH SYSTEM, A NONPROFIT CORPORATION (EIN 25-1778658). FORM 990, PART VI, SECTION A, LINE 7A AS SOLE MEMBER OF THE ORGANIZATION, PINNACLE HEALTH SYSTEM SHALL ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING POWERS ARE RESERVED TO THE SOLE MEMBER, PINNACLE HEALTH SYSTEM: TO APPROVE AND AUTHORIZE: ANNUAL OPERATING AND CAPITAL BUDGETS STRATEGIC PLANS BORROWINGS OR EXTENSIONS OF CREDIT EQUAL TO OR GREATER THAN ONE MILLION DOLLARS VOLUNTARY DISSOLUTION, MERGER, OR CONSOLIDATION THE SALE, PLEDGING, LEASING OR TRANSFER OF ASSETS IN EXCESS OF $500,000 THE CREATION OR ACQUISITION OR ANY SUBSIDIARY OR AFFILIATE ADDITION OR DELETION OF CLINICAL CENTERS OF EMPHASIS ANY CONTRACT WITH AN UNRELATED PARTY FOR MANAGEMENT OF SUBSTANTIALLY ALL ACTIVITIES INVESTMENT POLICIES UNBUDGETED CAPITAL EXPENDITURES TO SELECT THE CERTIFIED PUBLIC ACCOUNTANTS TO ESTABLISH AN OBLIGATED GROUP FOR FINANCING PURPOSES TO ADOPT EMPLOYEE BENEFIT PLANS FORM 990, PART VI, SECTION B, LINE 11 THE AUTHORITY AND RESPONSIBILITY FOR REVIEW OF THE FORM 990 FOR PINNACLE HEALTH SYSTEM AND SUBSIDIARIES IS DELEGATED TO THE FINANCE AND AUDIT COMMITTEE OF THE PINNACLE HEALTH SYSTEM BOARD. IN ORDER TO ACCOMPLISH THIS, ALL MEMBERS OF THE FINANCE AND AUDIT COMMITTEE ARE PROVIDED WITH A REASONABLE OPPORTUNITY TO REVIEW AND COMMENT TO EXECUTIVE LEADERSHIP ON THE IRS FORMS 990 OF THE PINNACLE HEALTH SYSTEM AND ITS SUBSIDIARIES, INCLUDING PINNACLE HEALTH HOSPITALS, PINNACLE HEALTH MEDICAL SERVICES, PINNACLE HEALTH FOUNDATION, AND COMMUNITY LIFE TEAM BEFORE THEY ARE FILED WITH THE INTERNAL REVENUE SERVICE. IN ADDITION, EACH MEMBER OF EACH RESPECTIVE BOARD OF DIRECTORS WILL BE GIVEN ACCESS TO VIEW THEIR INDIVIDUAL FORM 990 VIA A SHARED, PASSWORD-PROTECTED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C IN THE PERFORMANCE OF THEIR DUTIES TO PINNACLE HEALTH SYSTEM AND SUBSIDIARIES (COLLECTIVELY REFERRED TO AS "PHS"), COVERED PERSONS SHALL SEEK TO ACT IN THE BEST INTERESTS OF PHS, AND SHALL EXERCISE GOOD FAITH, LOYALTY, DILIGENCE AND HONESTY. A COVERED PERSON IS ANY INDIVIDUAL WHO SERVES IN A FIDUCIARY CAPACITY TO, OR WHO HAS LEGAL AUTHORITY TO REPRESENT OR OBLIGATE, THE PINNACLE HEALTH SYSTEM OR ANY OF ITS AFFILIATED ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO, DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS. COVERED PERSONS ALSO INCLUDE A) IMMEDIATE FAMILIES (SPOUSES, CHILDREN, SIBLINGS, PARENTS, OR SPOUSE'S PARENTS), B) ANY ORGANIZATION IN WHICH THEY OR THEIR IMMEDIATE FAMILIES DIRECTLY OR INDIRECTLY I) HAVE A MATERIAL FINANCIAL OR BENEFICIAL INTEREST, OR II) SERVE AS A DIRECTOR, OFFICER, EMPLOYEE, AGENT, ATTORNEY OR SIMILAR CAPACITY. A COVERED PERSON SHALL DISCLOSE ANY BUSINESS OR PERSONAL INTERESTS OR RELATIONSHIPS WHICH MAY BE IN CONFLICT WITH THE INTEREST OF PHS, INCLUDING, BUT NOT LIMITED TO (A) ENGAGING IN OR SEEKING TO BE ENGAGED IN (I) THE DELIVERY OF HEALTH CARE SERVICES OR (II) THE DELIVERY OF GOODS OR SERVICES TO PHS, OR (B) ANY TRANSACTION OR ARRANGEMENT WITH PHS WHICH WOULD RESULT IN BENEFIT TO COVERED PERSONS. THE GOVERNANCE COMMITTEE OF THE PHS BOARD REVIEWS ALL CONFLICT OF INTEREST STATEMENTS AND DETERMINES WHETHER EACH DIRECTOR ON THE BOARD IS INDEPENDENT. COVERED PERSONS WHO ARE DIRECTORS MUST COMPLY WITH THE PINNACLE HEALTH SYSTEM GUIDELINES FOR DETERMINING DIRECTOR INDEPENDENCE AND APPLYING DIRECTOR INDEPENDENCE REQUIREMENTS. COVERED PERSONS WITH A CONFLICT OF INTEREST SHALL NOT VOTE ON THE MATTER, AND THE PHS BOARD OR COMMITTEE MUST APPROVE, AUTHORIZE, OR RATIFY THE TRANSACTION OR ARRANGEMENT BY A MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS OR COMMITTEE MEMBERS PRESENT AT A MEETING THAT HAS A QUORUM. VIOLATIONS OF THIS STATEMENT OF POLICY MAY SUBJECT COVERED PERSONS TO APPROPRIATE SANCTIONS, INCLUDING REMOVAL FROM THEIR POSITIONS WITH PHS. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE PINNACLE HEALTH SYSTEM ("PHS") BOARD OF DIRECTORS HAS THE AUTHORITY TO DEVELOP AND MAINTAIN EXECUTIVE AND PHYSICIAN COMPENSATION TO BE APPROVED BY THE PINNACLE HEALTH SYSTEM BOARD. THE COMPENSATION COMMITTEE WILL FOLLOW A DILIGENT PROCESS THAT MEETS REGULATORY REQUIREMENTS FOR A REBUTTABLE PRESUMPTION OF REASONABLENESS AND PROMOTES EFFECTIVE GOVERNANCE OF EXECUTIVE COMPENSATION, CONSISTENT WITH THE PHS COMPENSATION PHILOSOPHY. 1. FOLLOW A PROCESS THAT ESTABLISHES AND MAINTAINS A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR ALL EXECUTIVES AND PHYSICIANS POTENTIALLY SUBJECT TO INTERMEDIATE SANCTIONS. 2. PREPARE MINUTES FOR EACH MEETING TO RECORD THE TERMS OF THE COMMITTEE'S DECISIONS AND THE PROCESS FOLLOWED IN REACHING THOSE DECISIONS. THESE MINUTES MUST INCLUDE INDICATIONS THAT THE COMMITTEE IS FOLLOWING GOOD PRACTICES IN DEALING WITH CONFLICTS OF INTEREST AND IN OBTAINING AND RELYING ON APPROPRIATE COMPARABILITY DATA ON TOTAL COMPENSATION. 3. SELECT AND DIRECTLY ENGAGE AND SUPERVISE ANY CONSULTANT HIRED BY PHS TO ADVISE THE COMMITTEE ON EXECUTIVE AND PHYSICIAN COMPENSATION. 4. PERIODICALLY EVALUATE THE APPROPRIATENESS OF THIS CHARTER AND THE EFFECTIVENESS OF THE PROCESS THE COMMITTEE USES IN GOVERNING EXECUTIVE AND PHYSICIAN COMPENSATION AND REPORT THIS EVALUATION TO THE BOARD. 5. PROVIDE THE BOARD WITH AN ANNUAL REPORT ON THE COMMITTEE'S ACTIONS. 6. MONITOR CHANGES IN LAWS AND REGULATIONS PERTAINING TO EXECUTIVE COMPENSATION AND BENEFITS TO SEE THAT PHS COMPLIES WITH THEM. 7. SEEK OUTSIDE REVIEW OF COMMITTEE OPERATIONS TO ENSURE COMPLIANCE WITH THE IRS REBUTTABLE PRESUMPTION OF REASONABLENESS. 8. REVIEW ACTUAL EXECUTIVE COMPENSATION AND BENEFITS PROVIDED TO CONFIRM CONSISTENCY WITH COMPENSATION AND BENEFITS APPROVED BY THE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. THE ORGANIZATION INCLUDES A COPY OF ITS FINANCIAL STATEMENTS WITH THE STATE REGISTRATION FILED WITH THE PENNSYLVANIA DEPARTMENT OF STATE, BUREAU OF CHARITABLE ORGANIZATIONS. THESE DOCUMENTS ARE A MATTER OF PUBLIC RECORD AND CAN BE VIEWED AT THE BUREAU OFFICE. FORM 990, PART XI, LINE 9: INTERCOMPANY TRANSFERS 19,272,969. NET ASSETS RELEASED 762,669. PINNACLE HEALTH SYSTEM 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251778658 MANAGEMENT AND CONSULTATIVE SERVICES FOR RELATED EXEMPT ORGS PA 501(C)(3) LINE 11B, II N/A 0 PINNACLE HEALTH FOUNDATION 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 222691718 INVESTMENT AND FUNDRAISING ACTIVITIES FOR RELATED TAX-EXEMPT ORGANIZATIONS PA 501(C)(3) LINE 11B, II PINNACLE HEALTH SYSTEM 0 COMMUNITY LIFE TEAM 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 231890444 MEDICAL TRANSPORT SERVICES PA 501(C)(3) LINE 9 PINNACLE HEALTH SYSTEM 0 PINNACLE HEALTH HOSPITALS 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251778644 INPATIENT AND OUTPATIENT HEALTHCARE SERVICES PA 501(C)(3) LINE 3 PINNACLE HEALTH SYSTEM 0 WEST SHORE SURGERY CENTER LTD 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251821415 SURGICAL CARE - MEDICAL SERVICES PA PINNACLE HEALTH MEDICAL SERVICES RELATED 44962 90282 0 1 0.02000 RIVER HEALTH ACO 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 462567488 MEDICAL SERVICES PA N/A UNITED CENTRAL PA RISK RETENTION GROUP 76 ST PAUL STREET SUITE 500 BULINGTON VT 054014477 134224033 CAPTIVE INSURANCE VT N/A C 0 UNITED HEALTH RISK LTD PO BOX 2450 HAMILTON HM JX BD CAPTIVE INSURANCE BD N/A C 0 PINNACLE HEALTH CARDIOVASCULAR INSTITUTE PO BOX 8700 HARRISBURG PA 17105 320321362 PHYSICIAN SERVICES PA N/A C 0 PINNACLE HEALTH VENTURES INC PO BOX 8700 HARRISBURG PA 17105 611677624 HOLDING COMPANY PA N/A C 0 PINNACLE HEALTH IMAGING INC PO BOX 8700 HARRISBURG PA 17105 231718571 IMAGING SERVICES PA N/A C 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1