2016-05-16T13:47:27-05:00 2015-06-30 271235638 MOUNTJOY CHILTON MEDLEY LLP 462 S FOURTH ST SUITE 2600 LOUISVILLE KY 402023445 990 2014-07-01 452696517 ARH MARY BRECKINRIDGE HEALTH SERVICE INC ARHM 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 DANNY HARRIS TREASURER 8592262440 2016-05-16 1 BOB MORELAND CPA P00418596 5027491900 2014 2016-08-17 19:52:53Z JOSEPH GROSSMAN 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 14474291 0 X WWW.ARH.ORG X 2011 KY TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL THE PEOPLE IN LESLIE COUNTY, KENTUCKY AND SURROUNDING COUNTIES. 4 1 155 12 0 0 345 3352 15126347 14274455 -30985 1963 288826 194521 15384533 14474291 0 0 0 0 7877204 7326698 0 0 5390 6667386 5427435 14544590 12754133 839943 1720158 8360194 10064552 4241802 4226002 4118392 5838550 X TO PROVIDE LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. 0 0 11730838 14464580 MARY BRECKINRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES.LOCATED IN AN AREA WITH A LARGE UNINSURED OR UNDERINSURED POPULATION, MARY BRECKINRIDGE ARH PROVIDED NEARLY $4 MILLION IN UNCOMPENSATED CARE IN THE PAST YEAR ALONE. IN EFFORTS TO PROMOTE THE BENEFITS OF PREVENTATIVE CARE TO GOOD HEALTH, THE HOSPITAL PROVIDED NEARLY $47,000 IN COMMUNITY BENEFITS THROUGH 141 COMMUNITY EVENTS THAT WERE ATTENDED BY NEARLY 4,500 PEOPLE LAST YEAR.IN ADDITION, THE HOSPITAL REACHED OUT TO LESLIE COUNTY RESIDENTS THROUGH ITS ANNUAL COMMUNITY APPRECIATION PICNIC WHERE HEALTH INFORMATION AND SCREENINGS WERE PROVIDED AND FREE LUNCH WAS SERVED TO MORE THAN 1,000 COMMUNITY MEMBERS. ADDITIONALLY, SCHOOL CHILDREN WERE BUSSED IN TO THE EVENT AND GIVEN A BAG FILLED WITH HEALTHY SNACKS.THE HOSPITAL ALSO PROMOTED PHYSICAL FITNESS TO AREA GRADE SCHOOL CHILDREN DURING A FITNESS FAIR WHERE THE CHILDREN PARTICIPATED IN A SERIES OF PHYSICAL ACTIVITIES. STUDENTS WERE MEASURED ON UPPER AND LOWER BODY STRENGTH, ENDURANCE, FLEXIBILITY AND COORDINATION. ACTIVITIES INCLUDED SIT AND REACH, CURL-UPS, PUSH-UPS, GRIP STRENGTH AND WALKING OR RUNNING A MILE. HEIGHT AND WEIGHT FOR EACH STUDENT WERE TAKEN SO THE BODY MASS INDEX (BMI) COULD BE CALCULATED. ONCE ALL DATA WAS COMPILED, THE ARH TEAM SHARED IT WITH THE SCHOOL ADMINISTRATORS AND DISCUSSED RECOMMENDATIONS FOR FOLLOW-UP HEALTH EVALUATIONS FOR THOSE STUDENTS WHO MAY NEED TO SEE A HEALTHCARE PROVIDER.THE HOSPITAL ALSO ANNUALLY HOSTS ITS ANNUAL CHILDREN'S CHRISTMAS PARTY IN THE HOSPITAL LOBBY. AS PART OF THE EVENT, EMPLOYEES DONATE ENOUGH MONEY TO PURCHASE GIFTS FOR EVERY CHILD WHO COMES TO THE CELEBRATION. IN THE PAST YEAR, AROUND 100 CHILDREN FROM WITHIN THE LESLIE COUNTY COMMUNITY ATTENDED THE EVENT AND IN ADDITION TO RECEIVING A WRAPPED GIFT, THEY WERE ALSO GIVEN A STOCKING FILLED WITH FRUIT AND OTHER TREATS.MARY BRECKINRIDGE ARH HOSPITAL ALSO HELD AN ANNUAL EASTER EGG HUNT AT THE HYDEN CITY PARK WITH MORE THAN 500 CHILDREN IN ATTENDANCE, RANGING FROM 0-9 YEARS OLD. ARH PROVIDED 1,000 EGGS FOR THIS HUNT AND BAGS FOR ALL THE CHILDREN.ADDITIONALLY, THE HOSPITAL, FRONTIER NURSING UNIVERSITY COURIER PROGRAM AND MOUNTAIN VIEW ELEMENTARY PARTNERED TOGETHER TO HOLD A FIRST ANNUAL SOCCER CAMP FOR ALL ELEMENTARY SCHOOL AGED CHILDREN JULY 14TH-16TH. APPROXIMATELY 60 CHILDREN PARTICIPATED IN THE FREE THREE-DAY CAMP HELD AT MOUNTAIN VIEW ELEMENTARY SCHOOL. 11730838 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 7 0 155 1 0 0 0 0 0 0 0 0 0 0 X 4 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X THE ORGANIZATION 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 JOSEPH GROSSMAN PRESIDENT/CEO 5.00 35.00 X X 0 739000 56798 BOBBY RICK KING SECRETARY 5.00 35.00 X X 0 287954 23066 DANNY HARRIS TREASURER 5.00 35.00 X X 0 301472 21287 RAYMOND COX TRUSTEE 3.00 3.00 X 0 0 0 ROY VARGHESE FAMILY PHYSICIAN 40.00 X 471556 0 15003 471556 1328426 116154 1 0 1 0 HYDEN EMERGENCY PHYSICIANS LLC PO BOX 301347 DALLAS TX 75303 PHYSICIAN SERVICES 465318 ALLIANCE HEALTHCARE SERVICES 100 BAY VIEW CIRCLE NEWPORT BEACH CA 92660 IMAGING SERVICES 175273 JANNX MEDICAL SYSTEMS CONSULTING 12166 OLD BIG BEND BLVD ST LOUIS MO 63122 MEDICAL EQUIPMENT SERVICES 158517 TRIANGLE ANESTHESIA GROUP PSC 3320 TATES CREEK RD STE 100 LEXINGTON KY 40502 PHYSICIAN SERVICES 109827 4 3352 3352 PATIENT REVENUE 621110 14236813 14236813 CAFETERIA INCOME 722210 37642 37642 14274455 1963 1963 4396 0 4396 4396 4396 COAL SEVERANCE PAYMENTS 900099 125000 125000 MISCELLANEOUS 900099 52991 52991 CONTRACT ACCOUNTS 900099 12134 12134 190125 14474291 14426938 0 44001 X 471556 471556 5165370 5165370 136680 136680 1198243 1198243 354849 354849 23875 23875 1338248 1338248 1169 392 772 5 376915 376915 110080 36845 72724 511 325138 325138 44346 44346 22322 22322 394611 392407 2204 247798 247798 MISCELLANEOUS/SHARED EX 923313 309043 609987 4283 DRUGS & MEDICAL SUPPLIE 728395 728395 REPAIRS AND MAINTENANCE 312105 312105 PROVIDER TAX 248035 248035 331085 246311 84183 591 12754133 11730838 1017905 5390 32455 16392 1611137 654829 6250 0 238926 259073 23802 45709 6773531 1208840 5639186 5564691 808438 3523858 8360194 10064552 758699 858454 35756 42508 3447347 3325040 4241802 4226002 X 4118392 5838550 4118392 5838550 8360194 10064552 1720158 0 X X 0 1 X 1 0 X 201300 201300 4653400 483958 4169442 116101 23507 92594 1416251 631037 785214 386479 70338 316141 5564691 DUE FROM RELATED ORGANIZATION 3523858 3523858 CASH OVERDRAFT 202225 MEDICARE AND MEDICAID ESTIMATED SETTLEMENTS 1426393 REFUNDS DUE PATIENTS 167908 SELF INSURANCE RESERVE 1136540 CAPITAL LEASE OBLIGATIONS 391974 3325040 X PART X, LINE 2: THE CORPORATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC. HOWEVER, THE CORPORATION IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. GAAP REQUIRES THE CORPORATION TO EVALUATE ITS TAX POSITIONS AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF IT HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS). THE CORPORATION HAS EVALUATED ITS TAX POSITIONS AND HAS CONCLUDED THAT THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY (OR ASSET) OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE CORPORATION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. THE CORPORATION BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2011. 1 1 X 1 X 1 X 100.000000000000 1 1 0 1 1 1 172 390401 835655 -445254 0.00000 1 172 4758647 2848430 1910217 0.15220 2 344 5149048 3684085 1464963 0.15220 39 704 15340 0 15340 0.00120 153 169 9855 0 9855 0.00080 192 873 25195 25195 0.00200 194 1217 5174243 3684085 1490158 0.15420 5 105 329 0 329 0.00000 8 3968 11627 0 11627 0.00090 1 12 131 0 131 0.00000 14 4085 12087 12087 0.00090 1 778862 576936 2696350 3911530 -1215180 X 1 1 1 1 ARH MARY BRECKINRIDGE HEALTH SERVICES INC 130 KATE IRELAND DRIVE HYDEN KY 41749 X X X X ARH MARY BRECKINRIDGE HEALTH SERVICES I 1 0 0 1 X X X X X X X X 13 1 0 0 1 X WWW.ARH.ORG/CHNA X 1 13 1 WWW.ARH.ORG/CHNA 0 0 1 X 100.000000000000 200.000000000000 X 1 1 X X 1 X WWW.ARH.ORG X WWW.ARH.ORG X WWW.ARH.ORG X X X 1 X X 1 X X X X X X 1 X 0 1 ARH MARY BRECKINRIDGE HEALTH SERVICES, INC PART V, SECTION B, LINE 5: A COMMUNITY STEERING COMMITTEE PROVIDED GUIDANCE OVER THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESSING EACH OF ARH'S COMMUNITIES. THIS STEERING COMMITTEE WAS MADE UP OF REPRESENTATIVES FROM VARIOUS ORGANIZATIONS AND AGENCIES THROUGHOUT EACH HOSPITAL'S SERVICE AREA. IN PARTICULAR, SOME OF THE COMMITTEE MEMBERS REPRESENTED THE LOCAL HEALTH DEPARTMENT, SENIOR SERVICES, SCHOOL SYSTEM, SOCIAL SERVICE ORGANIZATIONS, AND EMERGENCY MANAGEMENT. THESE INDIVIDUALS ASSISTED WITH DISTRIBUTING SURVEYS AND ORGANIZING FOCUS GROUPS THROUGHOUT THE COMMUNITY ENSURING THAT VARIED COMMUNITY INTERESTS AND EXPERTISE WERE REPRESENTED. SPECIAL ATTENTION WAS PAID TO ENSURING THAT REPRESENTATION FROM THE PUBLIC HEALTH SECTOR WAS INCLUDED IN THIS ASSESSMENT PROCESS AND THAT THE SENIOR CITIZEN AND UNDERSERVED POPULATION WAS REPRESENTED. A COMPLETE LIST OF THE COMMUNITY STEERING COMMITTEE MEMBERS FOR EACH ARH FACILITY IS INCLUDED IN EACH ASSESSMENT'S FINAL REPORT. ARH MARY BRECKINRIDGE HEALTH SERVICES, INC PART V, SECTION B, LINE 22D: UNDER ARHS FINANCIAL ASSISTANCE PROGRAM AND POLICY EACH PATIENT WITHOUT MEDICAL COVERAGE FOR RENDERED SERVICES IS OFFERED A 40% DISCOUNT OF GROSS CHARGES AT TIME OF SERVICE. IF THE PATIENT EXTENDS PAYMENT AT TIME OF SERVICE THEY ARE GIVEN ANOTHER 10% DISCOUNT, MAKING THEIR LIABILITY 50% OF GROSS CHARGES. ALL OF THESE DISCOUNTS ARE APPLIED AT TIME OF CHARGE AND BILLED AFTER THE DISCOUNT IS TAKEN. IF SAID PATIENT IS UNABLE TO MEET THE FINANCIAL OBLIGATIONS FOR SERVICE, THEY ARE EDUCATED AND SCREENED FOR POTENTIAL FEDERAL AND/OR STATE ASSISTANCE PROGRAMS. BY DOING THIS THE PATIENT IS REVIEWED AND EDUCATED BY ON-SITE FINANCIAL COUNSELORS AND/OR ELIGIBILITY AGENCY TO GET THE INDIVIDUAL PLACED A PROGRAM. BASED ON INCOME AND FAMILY STATUS THE PATIENT IS SCREENED IN CONJUNCTION WITH THE FEDERAL AND STATE POVERTY GUIDELINES. AT THIS TIME, ALL APPLICATIONS ARE COMPLETED WITH THE ASSISTANCE OF ARH PERSONNEL AND SUBMITTED FOR APPROVAL. IN THE EVENT AN AGENCY REQUIRES THE PATIENT/GUARANTOR TO APPLY IN PERSON THE INDIVIDUAL IS ASKED TO MAKE AN APPOINTMENT WITH THAT AGENCY AND FILE THEIR COMPLETED DOCUMENTS. IF THE RESPONSIBLE PARTY IS NOT ELIGIBLE FOR FEDERAL OR STATE ASSISTANCE, THEY ARE ADDITIONALLY SCREENED BY ARH FOR ELIGIBILITY INTO OUR INTERNAL SLIDING FEE SCHEDULE CHARITY PROGRAM FOR ADDITIONAL DISCOUNTS UP TO 100% OF GROSS CHARGES. IF THE PATIENT IS HELD RESPONSIBLE ADDITIONAL EFFORTS TO ASSIST THE PATIENT ARE OFFERED BY OFFERING REASONABLE PAYMENT PLANS AND DEFERRED PAYMENTS. IN THE EVENT THE PATIENT/GUARANTOR DOES NOT MAKE A REASONABLE EFFORT TO COMPLETE NECESSARY DOCUMENTATION TO APPLY OR BECOME ELIGIBLE FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE THEN STILL GIVEN THE INITIAL 40% DISCOUNT AND MOVED THROUGH THE NORMAL COLLECTION PROCESS. ARH MARY BRECKINRIDGE HEALTH SERVICES, INC PART V, SECTION B, LINE 24: UNDER ARHS FINANCIAL ASSISTANCE PROGRAM AND POLICY EACH PATIENT WITHOUT MEDICAL COVERAGE FOR RENDERED SERVICES IS OFFERED A 40% DISCOUNT OF GROSS CHARGES AT TIME OF SERVICE. IF THE PATIENT EXTENDS PAYMENT AT TIME OF SERVICE THEY ARE GIVEN ANOTHER 10% DISCOUNT, MAKING THEIR LIABILITY 50% OF GROSS CHARGES. ALL OF THESE DISCOUNTS ARE APPLIED AT TIME OF CHARGE AND BILLED AFTER THE DISCOUNT IS TAKEN. IF SAID PATIENT IS UNABLE TO MEET THE FINANCIAL OBLIGATIONS FOR SERVICE, THEY ARE EDUCATED AND SCREENED FOR POTENTIAL FEDERAL AND/OR STATE ASSISTANCE PROGRAMS. BY DOING THIS THE PATIENT IS REVIEWED AND EDUCATED BY ON-SITE FINANCIAL COUNSELORS AND/OR ELIGIBILITY AGENCY TO GET THE INDIVIDUAL PLACED A PROGRAM. BASED ON INCOME AND FAMILY STATUS THE PATIENT IS SCREENED IN CONJUNCTION WITH THE FEDERAL AND STATE POVERTY GUIDELINES. AT THIS TIME, ALL APPLICATIONS ARE COMPLETED WITH THE ASSISTANCE OF ARH PERSONNEL AND SUBMITTED FOR APPROVAL. IN THE EVENT AN AGENCY REQUIRES THE PATIENT/GUARANTOR TO APPLY IN PERSON THE INDIVIDUAL IS ASKED TO MAKE AN APPOINTMENT WITH THAT AGENCY AND FILE THEIR COMPLETED DOCUMENTS. IF THE RESPONSIBLE PARTY IS NOT ELIGIBLE FOR FEDERAL OR STATE ASSISTANCE, THEY ARE ADDITIONALLY SCREENED BY ARH FOR ELIGIBILITY INTO OUR INTERNAL SLIDING FEE SCHEDULE CHARITY PROGRAM FOR ADDITIONAL DISCOUNTS UP TO 100% OF GROSS CHARGES. IF THE PATIENT IS HELD RESPONSIBLE ADDITIONAL EFFORTS TO ASSIST THE PATIENT ARE OFFERED BY OFFERING REASONABLE PAYMENT PLANS AND DEFERRED PAYMENTS. IN THE EVENT THE PATIENT/GUARANTOR DOES NOT MAKE A REASONABLE EFFORT TO COMPLETE NECESSARY DOCUMENTATION TO APPLY OR BECOME ELIGIBLE FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE THEN STILL GIVEN THE INITIAL 40% DISCOUNT AND MOVED THROUGH THE NORMAL COLLECTION PROCESS. PART V, SECTION B, LINE 16 FINANCIAL ASSISTANCE POLICY WEBSITE AVAILABILITY ARH MARY BRECKINRIDGE HEALTH SERVICES, I PART V, SECTION B, LINE 16A WEBSITE: WWW.ARH.ORG ARH MARY BRECKINRIDGE HEALTH SERVICES, I PART V, SECTION B, LINE 16B WEBSITE: WWW.ARH.ORG ARH MARY BRECKINRIDGE HEALTH SERVICES, I PART V, SECTION B, LINE 16C WEBSITE: WWW.ARH.ORG 4 HYDEN ARH CLINIC 130 KATE IRELAND DRIVE HYDEN KY 41749 CLINIC MB ARH HOME HEALTH AGENCY 166 KATE IRELAND DRIVE HYDEN KY 41749 HOME HEALTH BIG CREEK ARH CLINIC PO BOX 8 BIG CREEK KY 40914 CLINIC BEECHFORK ARH CLINIC 805 MIDDLE FORK ROAD ASHER KY 40803 CLINIC PART I, LINE 3C: THE DISCOUNTS ARE BASED ON A SLIDING FEE SCHEDULE STARTING AT 100% OF FPG QUALIFYING FOR FREE CARE, RANGING UP TO UNLIMITED INCOME LEVELS FOR A 40% DISCOUNT ON ALL UNINSURED CARE PROVIDED. PART I, LINE 7: THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 201,927. PART II, COMMUNITY BUILDING ACTIVITIES: MARY BRECKINRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. LOCATED IN AN AREA WITH A LARGE UNINSURED OR UNDERINSURED POPULATION, MARY BRECKINRIDGE ARH PROVIDED NEARLY $5 MILLION IN UNCOMPENSATED CARE IN THE PAST YEAR ALONE. IN EFFORTS TO PROMOTE THE BENEFITS OF PREVENTATIVE CARE TO GOOD HEALTH, THE HOSPITAL PROVIDED HEALTH SCREENINGS AND HEALTH INFORMATION THROUGH 27 COMMUNITY EVENTS THAT WERE ATTENDED BY NEARLY 3,000 PEOPLE LAST YEAR. IN ADDITION, THE HOSPITAL REACHED OUT TO LESLIE COUNTY RESIDENTS THROUGH ITS ANNUAL COMMUNITY APPRECIATION PICNIC WHERE HEALTH INFORMATION AND SCREENINGS WERE PROVIDED AND FREE LUNCH WAS SERVED TO MORE THAN 1,000 COMMUNITY MEMBERS. ADDITIONALLY SCHOOL CHILDREN WERE BUSSED IN TO THE EVENT AND GIVEN A BAG FILLED WITH HEALTHY SNACKS. THE HOSPITAL ALSO PROMOTED PHYSICAL FITNESS TO AREA GRADE SCHOOL CHILDREN DURING A FITNESS FAIR WHERE THE CHILDREN PARTICIPATED IN A SERIES OF PHYSICAL ACTIVITIES. STUDENTS WERE MEASURED ON UPPER AND LOWER BODY STRENGTH, ENDURANCE, FLEXIBILITY AND COORDINATION. ACTIVITIES INCLUDED SIT AND REACH, CURL-UPS, PUSH-UPS, GRIP STRENGTH AND WALKING OR RUNNING A MILE. HEIGHT AND WEIGHT FOR EACH STUDENT WERE TAKEN SO THE BODY MASS INDEX (BMI) COULD BE CALCULATED. ONCE ALL DATA WAS COMPILED, THE ARH TEAM SHARED IT WITH THE SCHOOL ADMINISTRATORS AND DISCUSSED RECOMMENDATIONS FOR FOLLOW-UP HEALTH EVALUATIONS FOR THOSE STUDENTS WHO MAY NEED TO SEE A HEALTHCARE PROVIDER. THE HOSPITAL ALSO ANNUALLY HOSTS ITS ANNUAL CHILDRENS CHRISTMAS PARTY IN THE HOSPITAL LOBBY. AS PART OF THE EVENT, EMPLOYEES DONATE ENOUGH MONEY TO PURCHASE GIFTS FOR EVERY CHILD WHO COMES TO THE CELEBRATION. IN THE PAST YEAR, AROUND 100 CHILDREN FROM WITHIN THE LESLIE COUNTY COMMUNITY ATTENDED THE EVENT AND IN ADDITION TO RECEIVING A WRAPPED GIFT, THEY WERE ALSO GIVEN A STOCKING FILLED WITH FRUIT AND OTHER TREATS. MARY BRECKINRIDGE ARH HOSPITAL PARTNERS WITH THE DEPARTMENT OF HEALTH AND FAMILY SERVICES AND LESLIE COUNTY'S LOCAL SHRINER'S CLUB FOR THE ANNUAL EASTER EGG HUNT. THIS EASTER EGG HUNT IS LOCATED IN THE HYDEN CITY PARK. THERE WERE OVER 500 CHILDREN IN ATTENDANCE, RANGING FROM 0-9 YEARS OLD. ARH PROVIDES 1,000 EGGS FOR THIS HUNT AND BAGS FOR ALL THE CHILDREN. MARY BRECKINRIDGE ARH HOSPITAL ALSO BEGAN A SENIOR CARE PROGRAM DURING THE FISCAL YEAR ENDED JUNE 30, 2013. PART III, LINE 4: MANAGEMENT CONTINUALLY MONITORS AND ADJUSTS THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ASSOCIATED WITH CREDIT RISK. THE CORPORATION'S ABILITY TO COLLECT OUTSTANDING RECEIVABLES IS CRITICAL TO ITS RESULTS OF OPERATIONS AND CASH FLOWS. TO PROVIDE FOR ACCOUNTS RECEIVABLE THAT COULD BECOME UNCOLLECTIBLE IN THE FUTURE, THE CORPORATION ESTABLISHES AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS TO REDUCE THE CARRYING VALUE OF SUCH RECEIVABLES TO THEIR ESTIMATED NET REALIZABLE VALUE. THE PRIMARY UNCERTAINTY OF SUCH ALLOWANCES LIES WITH UNINSURED PATIENT RECEIVABLES AND DEDUCTIBLES, CO-PAYMENTS OR OTHER AMOUNTS DUE FROM INDIVIDUAL PATIENTS. THE CORPORATION HAS AN ESTABLISHED PROCESS TO DETERMINE THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS THAT RELIES ON A NUMBER OF ANALYTICAL TOOLS AND BENCHMARKS TO ARRIVE AT A REASONABLE ALLOWANCE. NO SINGLE STATISTIC OR MEASUREMENT DETERMINES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. SOME OF THE ANALYTICAL TOOLS THAT THE CORPORATION UTILIZES INCLUDE, BUT ARE NOT LIMITED TO, HISTORICAL CASH COLLECTION EXPERIENCE BY PAYOR, REVENUE TRENDS BY PAYOR CLASSIFICATION AND AGED ACCOUNTS FROM DATE OF SERVICE BY PAYOR. ACCOUNTS RECEIVABLE ARE WRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITH THE CORPORATION'S POLICIES. PART III, LINE 9B: THE PROVISIONS IN THE WRITTEN DEBT COLLECTION POLICY ARE THAT CHARITY AND FINANCIAL ASSISTANCE APPLICATIONS ARE VALID FOR 6 MONTHS. AFTER THAT TIME, THE PATIENT MUST REAPPLY AND PRESENT CURRENT FINANCIAL DOCUMENTS AS NECESSARY. PART VI, LINE 2: IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT THAT WAS CONDUCTED BY ARH IN FISCAL YEAR 2013 AND REPORTED ELSEWHERE IN THIS DOCUMENT, ARH ALSO CONTINUALLY ASSESSES COMMUNITY NEEDS IN OTHER FORMS AS WELL. THE NEEDS OF THE COMMUNITIES THAT ARH SERVES THROUGHOUT EASTERN KENTUCKY ARE ASSESSED BY FOLLOWING EMERGING MEDICAL PRACTICE NEEDS AS A WHOLE ACROSS THE NATION AND SPECIFICALLY IN THE APPALACHIAN REGION. THE HEALTH NEEDS ARE EXAMINED BY LOOKING AT HEALTH STATISTICS AND DISEASE PREVALENCE COMPARED TO SERVICE/PHYSICIAN AVAILABILITY. PATIENT AND COMMUNITY SURVEYS ARE ALSO REGULARLY CONDUCTED TO ASSESS CONSUMER PERCEIVED NEEDS. LOCAL ADVISORY COUNCILS (LACS) ALSO EXIST IN EACH OF ARHS HOSPITAL COMMUNITIES. THE COUNCILS ARE COMPRISED OF LOCAL CITIZENS WHO VOLUNTEER TO HELP ARH IMPROVE THE HEALTH OF ITS COMMUNITIES THROUGH REGULAR MEETINGS THAT DISCUSS COMMUNITY HEALTH ISSUES AND HELP ARH IDENTIFY AND ADDRESS THEM. MEMBERS ALSO ADVISE ARH ABOUT IMPROVEMENTS NEEDED AND COMMUNITY PERCEPTIONS OF ARH FACILITIES AND THESE INDIVIDUALS SERVE AS EXCELLENT AMBASSADORS FOR ARH AND ITS SERVICES. THESE INDIVIDUALS HAVE DEMONSTRATED THEIR LEADERSHIP IN LOCAL CIVIC AFFAIRS AND REFLECT A CROSS SECTION OF THE COMMUNITY. QUARTERLY, ONE REPRESENTATIVE FROM EACH OF THESE LACS MEETS TO DISCUSS COMMON ISSUES ACROSS THE SYSTEM AT A REGIONAL ADVISORY COUNCIL MEETING. FROM THIS GROUP OF REPRESENTATIVES, ONE MEMBER IS SELECTED TO ALSO SERVE ON THE HEALTH SYSTEMS BOARD OF TRUSTEES. PART VI, LINE 3: APPALACHIAN REGIONAL HEALTHCAREFINANCIAL ASSISTANCE ELIGIBILITYUNDER ARHS FINANCIAL ASSISTANCE PROGRAM AND POLICY EACH PATIENT WITHOUT MEDICAL COVERAGE FOR RENDERED SERVICES IS OFFERED A 40% DISCOUNT OF GROSS CHARGES AT TIME OF SERVICE. IF THE PATIENT EXTENDS PAYMENT AT TIME OF SERVICE THEY ARE GIVEN ANOTHER 10% DISCOUNT, MAKING THEIR LIABILITY 50% OF GROSS CHARGES. ALL OF THESE DISCOUNTS ARE APPLIED AT TIME OF CHARGE AND BILLED AFTER THE DISCOUNT IS TAKEN. IF SAID PATIENT IS UNABLE TO MEET THE FINANCIAL OBLIGATIONS FOR SERVICE, THEY ARE EDUCATED AND SCREENED FOR POTENTIAL FEDERAL AND/OR STATE ASSISTANCE PROGRAMS. BY DOING THIS THE PATIENT IS REVIEWED AND EDUCATED BY ON-SITE FINANCIAL COUNSELORS AND/OR ELIGIBILITY AGENCY TO GET THE INDIVIDUAL PLACED A PROGRAM. BASED ON INCOME AND FAMILY STATUS THE PATIENT IS SCREENED IN CONJUNCTION WITH THE FEDERAL AND STATE POVERTY GUIDELINES. AT THIS TIME, ALL APPLICATIONS ARE COMPLETED WITH THE ASSISTANCE OF ARH PERSONNEL AND SUBMITTED FOR APPROVAL. IN THE EVENT AN AGENCY REQUIRES THE PATIENT/GUARANTOR TO APPLY IN PERSON THE INDIVIDUAL IS ASKED TO MAKE AN APPOINTMENT WITH THAT AGENCY AND FILE THEIR COMPLETED DOCUMENTS. IF THE RESPONSIBLE PARTY IS NOT ELIGIBLE FOR FEDERAL OR STATE ASSISTANCE, THEY ARE ADDITIONALLY SCREENED BY ARH FOR ELIGIBILITY INTO OUR INTERNAL SLIDING FEE SCHEDULE CHARITY PROGRAM FOR ADDITIONAL DISCOUNTS UP TO 100% OF GROSS CHARGES. IF THE PATIENT IS HELD RESPONSIBLE ADDITIONAL EFFORTS TO ASSIST THE PATIENT ARE OFFERED BY OFFERING REASONABLE PAYMENT PLANS AND DEFERRED PAYMENTS. IN THE EVENT THE PATIENT/GUARANTOR DOES NOT MAKE A REASONABLE EFFORT TO COMPLETE NECESSARY DOCUMENTATION TO APPLY OR BECOME ELIGIBLE FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE THEN STILL GIVEN THE INITIAL 40% DISCOUNT AND MOVED THROUGH THE NORMAL COLLECTION PROCESS. PART VI, LINE 4: THE RURAL SERVICE AREA COVERED BY ARH IN EASTERN KENTUCKY COVERS 16 COUNTIES AND CONSISTS OF ALMOST 370,000 RESIDENTS. THIS REGION IS FRAUGHT WITH SOME OF THE HIGHEST CHRONIC HEALTH PREVALENCE RATES IN THE COUNTRY FOR LUNG CANCER, DIABETES, AND HEART DISEASE. TO COMPOUND THESE PROBLEMS, MOST OF ARHS FACILITIES ARE LOCATED IN AREAS THAT ARE AT LEAST PARTIALLY CLASSIFIED AS MEDICALLY UNDERSERVED AREAS AND HEALTH PROFESSIONAL SHORTAGE AREAS BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. IN ADDITION, THE AREAS SERVED BY ARH ALSO FACE UNEMPLOYMENT RATES THAT ARE SUBSTANTIALLY HIGHER THAN STATE AND NATIONAL AVERAGES AND A HIGHER NUMBER OF CITIZENS IN THESE AREAS RANK BELOW THE NATIONAL POVERTY LEVEL. FOR EXAMPLE, IN AUGUST 2013, THE UNEMPLOYMENT RATE FOR HARLAN COUNTY, KENTUCKY WAS 16.3 PERCENT, COMPARED TO 7.8 PERCENT FOR THE STATE AND 7.3 PERCENT NATIONALLY. FOR MORE THAN HALF A CENTURY, ARH HAS CARRIED A HEAVY LOAD IN CARING FOR THIS POPULATION. OVER 8 PERCENT OF ARHS INPATIENTS IN FISCAL YEAR 2014 WERE UNINSURED AND DURING THAT SAME FISCAL YEAR MORE THAN 77 PERCENT OF ARHS INPATIENTS WERE MEDICARE OR MEDICAID BENEFICIARIES. PART VI, LINE 5: MARY BRECKINRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. LOCATED IN AN AREA WITH A LARGE UNINSURED OR UNDERINSURED POPULATION, MARY BRECKINRIDGE ARH PROVIDED NEARLY $5 MILLION IN UNCOMPENSATED CARE IN THE PAST YEAR ALONE. IN EFFORTS TO PROMOTE THE BENEFITS OF PREVENTATIVE CARE TO GOOD HEALTH, THE HOSPITAL PROVIDED HEALTH SCREENINGS AND HEALTH INFORMATION THROUGH 27 COMMUNITY EVENTS THAT WERE ATTENDED BY NEARLY 3,000 PEOPLE LAST YEAR. IN ADDITION, THE HOSPITAL REACHED OUT TO LESLIE COUNTY RESIDENTS THROUGH ITS ANNUAL COMMUNITY APPRECIATION PICNIC WHERE HEALTH INFORMATION AND SCREENINGS WERE PROVIDED AND FREE LUNCH WAS SERVED TO MORE THAN 1,000 COMMUNITY MEMBERS. ADDITIONALLY SCHOOL CHILDREN WERE BUSSED IN TO THE EVENT AND GIVEN A BAG FILLED WITH HEALTHY SNACKS. THE HOSPITAL ALSO PROMOTED PHYSICAL FITNESS TO AREA GRADE SCHOOL CHILDREN DURING A FITNESS FAIR WHERE THE CHILDREN PARTICIPATED IN A SERIES OF PHYSICAL ACTIVITIES. STUDENTS WERE MEASURED ON UPPER AND LOWER BODY STRENGTH, ENDURANCE, FLEXIBILITY AND COORDINATION. ACTIVITIES INCLUDED SIT AND REACH, CURL-UPS, PUSH-UPS, GRIP STRENGTH AND WALKING OR RUNNING A MILE. HEIGHT AND WEIGHT FOR EACH STUDENT WERE TAKEN SO THE BODY MASS INDEX (BMI) COULD BE CALCULATED. ONCE ALL DATA WAS COMPILED, THE ARH TEAM SHARED IT WITH THE SCHOOL ADMINISTRATORS AND DISCUSSED RECOMMENDATIONS FOR FOLLOW-UP HEALTH EVALUATIONS FOR THOSE STUDENTS WHO MAY NEED TO SEE A HEALTHCARE PROVIDER. THE HOSPITAL ALSO ANNUALLY HOSTS ITS ANNUAL CHILDRENS CHRISTMAS PARTY IN THE HOSPITAL LOBBY. AS PART OF THE EVENT, EMPLOYEES DONATE ENOUGH MONEY TO PURCHASE GIFTS FOR EVERY CHILD WHO COMES TO THE CELEBRATION. IN THE PAST YEAR, AROUND 100 CHILDREN FROM WITHIN THE LESLIE COUNTY COMMUNITY ATTENDED THE EVENT AND IN ADDITION TO RECEIVING A WRAPPED GIFT, THEY WERE ALSO GIVEN A STOCKING FILLED WITH FRUIT AND OTHER TREATS. MARY BRECKINRIDGE ARH HOSPITAL PARTNERS WITH THE DEPARTMENT OF HEALTH AND FAMILY SERVICES AND LESLIE COUNTY'S LOCAL SHRINER'S CLUB FOR THE ANNUAL EASTER EGG HUNT. THIS EASTER EGG HUNT IS LOCATED IN THE HYDEN CITY PARK. THERE WERE OVER 500 CHILDREN IN ATTENDANCE, RANGING FROM 0-9 YEARS OLD. ARH PROVIDES 1,000 EGGS FOR THIS HUNT AND BAGS FOR ALL THE CHILDREN. MARY BRECKINRIDGE ARH HOSPITAL ALSO BEGAN A SENIOR CARE PROGRAM DURING THE FISCAL YEAR ENDED JUNE 30, 2013. PART VI, LINE 6: DURING FISCAL YEAR 2014, ARHS SERVICES WERE MAINLY ORGANIZED AROUND 10 SPECIFIC COMMUNITIES ACROSS EASTERN KENTUCKY. IN EACH OF THESE COMMUNITIES A HOSPITAL EXISTS ALONG WITH A COMPLIMENTARY ARRANGEMENT OF OTHER ARH SERVICES WHICH MAY INCLUDE CLINICS, HOME HEALTH AGENCIES, PHARMACIES, AND/OR HOME DURABLE MEDICAL EQUIPMENT STORES. AT THE SYSTEM LEVEL, VARIOUS HEALTH PROMOTION ACTIVITIES ARE ORGANIZED AND PROMOTED ACROSS THE FACILITIES, INCLUDING THE INTRODUCTION OF NEW SERVICE LINES AND NEW TECHNOLOGY. HOWEVER, IN EACH OF ARHS 10 COMMUNITIES, VARIOUS COMMUNITY OUTREACH PROGRAMS ARE ALSO UNDERWAY AND AGGRESSIVELY ADDRESSING THE HEALTH CONCERNS OF THAT PARTICULAR AREA WHILE STRONG COMMUNITY COLLABORATION IS BEING DEVELOPED. FROM SENIOR CITIZEN WELLNESS PROGRAMS TO PATIENT ASSISTANCE VIA A CANCER NAVIGATOR, ARHS COMMUNITIES ARE REAPING THE BENEFITS OF SUCCESSFUL COMMUNITY OUTREACH. 0 1 0 0 0 0 1 0 0 JOSEPH GROSSMAN PRESIDENT/CEO 0 596380 0 140871 0 1749 0 54646 0 2152 0 795798 0 0 BOBBY RICK KING SECRETARY 0 236568 0 51386 0 0 0 20914 0 2152 0 311020 0 0 DANNY HARRIS TREASURER 0 247722 0 53750 0 0 0 19135 0 2152 0 322759 0 0 ROY VARGHESE FAMILY PHYSICIAN 390562 0 80994 0 0 0 12851 0 2152 0 486559 0 0 0 PART I, LINE 3 THE RELATED ORGANIZATION USES THE FOLLOWING METHODS TO DETERMINE COMPENSATION FOR ITS CEO: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - COMPENSATION SURVEY OR STUDY - APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 4B ARH PROVIDES SENIOR EXECUTIVES A CONTRIBUTION OF SEVEN (7) PERCENT OF PAY (SUBJECT TO DOLLAR CAP) INTO THE TOP HAT 457(B) RETIREMENT PLAN, IF THE EXECUTIVE SIGNS A NON-COMPETE AGREEMENT. THE CONTRIBUTION AND EARNINGS ARE TAX DEFERRED UNTIL ASSETS ARE DISTRIBUTED OR WITHDRAWN. THE MAXIMUM CONTRIBUTION IS SUBJECT TO THE IRS COMPENSATION CAP, WHICH ALLOWS A CONTRIBUTION OF UP TO $17,500 IN 2014. THIS CONTRIBUTION TOTAL IS AN AGGREGATE TOTAL REGARDLESS OF WHETHER ARH OR THE EXECUTIVE MAKES THE CONTRIBUTION. CONTRIBUTION TO THE 457(B) DOES NOT AFFECT THE AMOUNTS THE EXECUTIVE MIGHT CONTRIBUTE TO THE 403(B) THRIFT PLAN. THE EXECUTIVE MAY CONTRIBUTE HIS/HER OWN MONEY TO THE PLAN PRE-TAX, TO THE EXTENT THE IRS CAPS ALLOW ROOM AFTER ARH'S CONTRIBUTION. CATCH UP CONTRIBUTIONS ARE ALLOWED WITHIN IRS LIMITS IN THE LAST THREE YEARS PRIOR TO RETIREMENT (AND, IF 7% OF PAY EXCEEDS THE REGULAR DOLLAR CAP, ARH MAY USE THE BALANCE OF THE 7% TO FUND UP THE CATCH UP LIMIT). BENEFITS ARE SUBJECT TO SOCIAL SECURITY AND MEDICARE TAXES AS THEY ACCRUE. THE FUNDS ARE INVESTED AS DIRECTED BY THE EXECUTIVE, BUT THE ACCOUNT REMAINS A GENERAL ASSET OF ARH. IF ARH BECOMES INSOLVENT, THE EXECUTIVE WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. TO RECEIVE THE ARH CREDIT TO THE 457(B) PLAN, THE EXECUTIVE MUST SIGN A NON-COMPETE, CONFIDENTIALITY, ETC. AGREEMENT RESTRICTING WORK FOR A COMPETING ORGANIZATION FOR TWO (2) YEARS POST TERMINATION. IF THE FUNDING OF THE 457(B), INCLUDING ANY CATCH UP PROVISIONS, IS LESS THAN 7% OF BASE PAY, THEN ARH WILL CONTRIBUTE THE REMAINDER TO A 457(F) PLAN. INDIVIDUALS PARTICIPATING IN THE 457(F) PLAN AND THE RESPECTIVE EMPLOYER CONTRIBUTIONS FOR EACH INCLUDE: JOE GROSSMAN $15,677 PART I, LINE 6 THE COMPENSATION AND CONTRACTS COMMITTEE OF THE ARH BOARD OF TRUSTEES ADOPTED A SHORT-TERM INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVES IN SEPTEMBER 2002. THE PROGRAM ESTABLISHED INCENTIVES FOR ACHIEVING SYSTEM AND COMMUNITY OBJECTIVES FOR EXECUTIVE LEADERSHIP BY INTEGRATING THE PERFORMANCE MANAGEMENT AND EXECUTIVE COMPENSATION SYSTEMS. THE INCENTIVE THRESHOLDS HAVE BEEN MODIFIED ACROSS TIME TO REFLECT INCREASED PERFORMANCE EXPECTATIONS AS IDENTIFIED IN THE SYSTEM'S STRATEGIC, BUDGET AND OPERATIONS PLAN. THE INCENTIVE AWARDS PROVIDE ADDITIONAL CASH COMPENSATION AS A PERCENTAGE OF BASE SALARY IN RELATION TO LEVELS OF ACHIEVEMENT. THESE ACHIEVEMENT LEVELS RANGE FROM THRESHOLD (LOWEST), TO TARGET (10% ABOVE THE THRESHOLD), AND MAXIMUM (HIGHEST AND 20% ABOVE THE THRESHOLD) AND VARY BASED UPON EXECUTIVE LEVEL. THE EXECUTIVE INCENTIVE PLAN WILL BE ADMINISTERED IN ACCORDANCE WITH THE FOLLOWING GUIDELINES: A OBJECTIVES AND TARGETS ARE SET THROUGH THE STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT PROCESSES. B. SYSTEM MARGIN AND CASH BUDGET THRESHOLDS MUST BE MET BEFORE INDIVIDUAL AWARDS WILL BE CONSIDERED. C. AWARDS WILL BE CONSIDERED AS HAVING BEEN EARNED UPON AFFIRMATION BASED ON AUDITED FINANCIAL RESULTS AND ACTUAL OPERATING PERFORMANCE. D. THE PRESIDENT AND CEO WILL RECOMMEND PAYMENT OF INDIVIDUAL AWARDS, IF ANY, TO THE COMPENSATION AND CONTRACTS COMMITTEE FOR CONSIDERATION. E. THE COMPENSATION AND CONTRACTS COMMITTEE MAY ACCEPT, REJECT, OR MODIFY THE PRESIDENT AND CEO'S RECOMMENDATION. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE MEMBER IS APPALACHIAN REGIONAL HEALTHCARE, INC. FORM 990, PART VI, SECTION A, LINE 7A APPALACHIAN REGIONAL HEALTHCARE, INC. APPOINTS THE BOARD OF DIRECTORS OF THE ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION A, LINE 7B APPALACHIAN REGIONAL HEALTHCARE, INC. HAS THE POWER TO APPROVE AMENDMENTS TO THE ARTICLES OF INCORPORATION OF ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION B, LINE 11 APPALACHIAN REGIONAL HEALTHCARE'S (ARH) DIRECTOR OF ACCOUNTING AND CFO BOTH REVIEW THE 990 PRIOR TO THE ARH BOARD REVIEW. THE ARH BOARD THEN REVIEWS THE 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ARH MARY BRECKINRIDGE FOLLOWS ARH'S CONFLICT OF INTEREST POLICY AND ONGOING MONITORING. ARH'S MONITORING PROCESS IS: A SECURE WEBSITE IS PROVIDED TO OFFICERS AND TRUSTEES FOR ANNUAL DISCLOSURES, AND IS MONITORED REGULARLY BY THE VICE PRESIDENT OF LEGAL AFFAIRS AND THE CORPORATE COMPLIANCE OFFICERS. POTENTIAL CONFLICTS OF INTEREST ARE REPORTED DIRECTLY TO THE CHAIRMAN OF THE BOARD. TRUSTEES IDENTIFIED AS HAVING A CONFLICT OF INTEREST IN A PARTICULAR MATTER BEFORE THE BOARD MAY NOT PARTICIPATE IN THE BOARD'S DECISION-MAKING PROCESS. FAILURE TO DISCLOSE IS SUBJECT TO DISCIPLINE, INCLUDING CENSURE, AND IN SOME CASES, REMOVAL FROM THE BOARD. EMPLOYEE OFFICERS ARE SUBJECT TO DISCIPLINE IN ACCORDANCE WITH THE CORPORATION'S HUMAN RESOURCE POLICIES AND THE ARH CODE OF BUSINESS AND PROFESSIONAL CONDUCT. FORM 990, PART VI, SECTION B, LINE 15 THE RELATED ORGANIZATION, APPALACHIAN REGIONAL HEALTHCARE, INC.'S (ARH) BOARD SETS COMPENSATION LEVELS FOR PRESIDENT/CEO AND OTHER ARH EXECUTIVES AND KEY EMPLOYEES. THE BOARD CONTRACTS WITH A CONSULTING FIRM TO REVIEW THE MARKET FOR THE POSITIONS ON THE SYSTEM OPERATING COUNCIL WHO MAKES RECOMMENDATIONS ON THE SALARY RANGES AND ASSESSES THE COMPETITIVENESS OF THE SALARIES. WITH THAT INFORMATION, THE COMPENSATION AND CONTRACTS COMMITTEE SET THE RANGES AND THE PRESIDENT'S COMPENSATION. THE BOARD REVIEWS AND FINALIZES COMPENSATION AMOUNTS. THE CONSULTING FIRM FOLLOWS UP WITH A LETTER ATTESTING TO THE REASONABLENESS OF COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 WHILE ARH MARY BRECKINRIDGE HAS NOT YET ADOPTED A POLICY OF SHARING ITS FINANCIAL STATEMENTS WITH THE PUBLIC, IT DOES PROVIDE FINANCIAL INFORMATION THROUGH THE FORM 990 AND ALSO PROVIDES CERTAIN FINANCIAL INFORMATION IN OTHER PUBLIC DOCUMENTS, INCLUDING ITS PERIODIC REPORTS TO THE COMMUNITIES IT SERVES. FORM 990, PART IX, LINE 11G PHYSICIAN SERVICES: PROGRAM SERVICE EXPENSES 470,510. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 470,510. LAUNDRY SERVICES: PROGRAM SERVICE EXPENSES 47,457. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 47,457. COLLECTION SERVICES: PROGRAM SERVICE EXPENSES 26,159. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 26,159. OUTSIDE SERVICES: PROGRAM SERVICE EXPENSES 794,122. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 794,122. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. PRIOR TO THE START OF THE AUDIT, THE VICE PRESIDENT OF FINANCE MEETS WITH THE INDEPENDENT AUDITORS. AT THE CONCLUSION OF THE AUDIT, THE FINANCE COMMITTEE MEETS WITH THE INDEPENDENT AUDITORS FOR PRESENTATION OF THE FINANCIAL STATEMENTS. THE INDEPENDENT AUDITORS ARE SELECTED WHEN DEEM NECESSARY BY MANAGEMENT THROUGH A FORMAL "REQUEST FOR PROPOSAL" (RFP) PROCESS. THE ARH FOUNDATION FOR HEALTHIER COMMUNITIES INC 100 AIRPORT GARDENS RD HAZARD KY 41701 204840007 CARRYING OUT FUNDRAISING AND CHARITABLE ACTIVITIES FOR ARH KY 501(C)(3) LINE 7 APPALACHIAN REGIONAL HEALTHCARE INC 0 APPALACHIAN REGIONAL HEALTHCARE INC 2285 EXECUTIVE DR LEXINGTON KY 40505 520795508 HEALTH CARE KY 501(C)(3) LINE 3 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0