2016-05-13T10:19:39-05:00 2015-06-30 ERNST & YOUNG US LLP 2323 VICTORY AVENUE SUITE 2000 DALLAS TX 75219 990 2014-07-01 743019849 St Mark's Medical Center % RICK MONTOLONGO STMA 9792422200 ONE ST MARKS PLACE LA GRANGE TX 789452040 RICK MONTOLONGO CEO 9792422200 2016-05-13 true Stephanie Lew P01080011 2149698000 2014 2016-08-17 19:52:53Z Rick Montolongo One St Marks Place La Grange TX 78945 35056523 false X www.smmctx.org X 2001 TX To provide quality, compassionate health care and promote wellness for our community through modern technology and caring professionals. 14 13 317 50 0 338996 45680 29108660 33755639 11186 17274 2655520 1095660 32114362 34914253 0 0 0 0 11780343 14256717 0 0 0 18880796 19470251 30661139 33726968 1453223 1187285 37819662 36694399 27905119 25592568 9914543 11101831 X To provide quality, compassionate health care and promote wellness for our community through modern technology and caring professionals. false false 31236918 0 34414914 ST. MARK'S MEDICAL CENTER (SMMC) IS A COMMUNITY HEALTH PROVIDER THAT SERVES THE COMMUNITY REGARDLESS OF ANY INDIVIDUAL'S RACE, CREED, NATIONALITY, OR ABILITY TO PAY FOR SERVICES INCLUDING INPATIENT, OUTPATIENT, AND EMERGENCY CARE IN SUPPORT OF THE HOSPITAL'S HEALTHCARE MISSION. DURING THE YEAR ENDED JUNE 30, 2015, WE HAD 2,020 ADMISSIONS, 7,112 PATIENT DAYS, 10,643 ER VISITS, 502 INPATIENT SURGERIES AND 958 OUTPATIENT SURGERIES. SMMC UTILIZES THE MOST ADVANCED TECHNOLOGIES RIVALING THOSE OF MAJOR CITIES IN A COMFORTABLE ENVIRONMENT CLOSE TO HOME. WE OFFER INPATIENT, OUTPATIENT, AND EMERGENCY SERVICES WITH COMPASSIONATE CARE, FOCUSING ON RESPECT AND CARE FOR THE WHOLE PERSON. SMMC ISN'T JUST CONVENIENT; IT'S A PLACE FOR ADVANCED MEDICAL CARE THAT JUST HAPPENS TO BE CLOSE TO HOME. ST. MARK'S HAS THE EXPERTISE AND RESOURCES FOR YOU AND YOUR FAMILY. WORKING TOGETHER, OUR GOAL IS TO PROVIDE MEMBERS OF THE COMMUNITY WITH "ADVANCED HOMETOWN HEALTHCARE." ST. MARK'S IS A HOSPITAL DESIGNED TO CHANGE THE WAY YOU THINK ABOUT HOSPITALS. FROM ADVANCED TECHNOLOGIES THAT RIVAL THOSE OF MAJOR METROPOLITAN INSTITUTIONS, TO A LEVEL OF SERVICE SURPASSING THAT OF ANY HOSPITAL ANYWHERE, WE ARE MAKING "ADVANCED HOMETOWN HEALTHCARE" THE CENTER OF EVERYTHING WE DO. OUR GUIDING PRINCIPLES FOCUS ON RESPECT AND CARE FOR THE WHOLE PERSON, WITH OUR BELIEFS CENTERED ON THE GOLDEN RULE AS THE STANDARD BY WHICH WE TREAT EVERY PATIENT. AT ST. MARK'S MEDICAL CENTER, WE ARE DETERMINED TO BUILD AN UNRIVALED REPUTATION FOR OUR OUTSTANDING SERVICE AND DELIVERY OF CARE. WE OFFER ADVANCED SERVICES AND PROGRAMS INCLUDING A SERENE BIRTHING CENTER, SPECIALTY CLINICS, COMPREHENSIVE PUBLIC HEALTH SERVICES AND SPECIALIZED NUTRITION PROGRAMS FOR WOMEN, INFANTS AND CHILDREN. BEST OF ALL, ST. MARK'S BRINGS ALL OF THIS WITHIN REACH, SO YOU DON'T HAVE TO TRAVEL TO GET THE CARE YOU NEED. CARE THAT JUST HAPPENS TO BE CLOSE TO HOME. ST. MARK'S HAS THE EXPERTISE AND RESOURCES FOR YOU AND YOUR FAMILY. WORKING TOGETHER, OUR GOAL IS TO PROVIDE MEMBERS OF THE COMMUNITY WITH "ADVANCED HOMETOWN HEALTHCARE." 31236918 true true false true false false false false false false true true false false true false true true false false false false false false false false true true false false true false false false false false false false false false false false false false true false false false true 57 0 true 317 true false false false false false false false false false false X 14 13 true true false false true true true true true false false true true true true true true false false false X RICK MONTOLONGO 9792422111 ONE ST MARKS PLACE La Grange TX 789452040 Dudley Piland Chairman 1.0 0.0 X X 0 0 0 Ronald Clay Rightmer Vice Chairman 1.0 0.0 X X 0 0 0 Thomas Borgstedte DO Director 1.0 0.0 X 0 0 0 Gary Pietsch Director 1.0 0.0 X 0 0 0 Lori Berger Director 1.0 0.0 X 0 0 0 William Torkildsen Director (UNTIL 10/14) 1.0 0.0 X 0 0 0 Jim Jaeger Director 1.0 0.0 X 0 0 0 Wilson Weber Director 1.0 39.0 X 0 720921 124152 MARK CLAYTON DIRECTOR 1.0 0.0 X 0 0 0 Russ Juno Director (as of 10/14) 1.0 0.0 X 0 0 0 Linda Morrison Director (as of 10/14) 1.0 0.0 X 0 0 0 Philip Burket Director (as of 10/14) 1.0 0.0 X 0 0 0 Joe Bailey Director 1.0 0.0 X 0 0 0 Denise Harlan Director 1.0 0.0 X 0 0 0 Allyson Borgstedte DO Secretary-Board 1.0 0.0 X X 0 0 0 SHANE KERNELL PRESIDENT/CEO 40.0 0.0 X 0 185617 23214 Rick Montolongo Assistant Admin 40.0 0.0 X 0 129410 25609 Jeff Casbeer CFO 40.0 0.0 X 0 96285 26646 DAVID BUTLER ASSISTANT SECRETARY 1.0 39.0 X 0 414327 30535 Tammy Hartfield CNO 40.0 0.0 X 0 121438 22832 Michael Diclemente PHYSICIAN 40.0 0.0 X 327959 0 0 Russel Clark PHYSICIAN 40.0 0.0 X 433524 0 0 THOMAS PATTON PHYSICIAN 40.0 0.0 X 148235 0 0 909718 1667998 252988 6 false true false Stryker PO Box 93213 Chicago IL 60673 Orthopedic Implants 1027965 Cardinal Health PO Box 847370 Dallas TX 75284 Medical Supplies 876228 Medline PO Box 121080 Dallas TX 75312 Medical supplies 656501 Prince Food Systems 11001 Wilcrest Drive Ste 200 Houston TX 77099 Cafeteria Service 550933 Equity 4653 Trueman Blvd Ste 100 Hilliard OH 43026 Medical Office Bldg 548128 24 0 45680 0 45680 PATIENT SERVICE REVENUE 622110 33755639 33755639 0 0 33755639 17274 17274 0 0 376880 142270 234610 0 234610 234610 0 0 0 0 MEDICARE - E.H.R. FUNDING 900099 627196 627196 0 0 CAFETERIA INCOME 900099 188849 0 0 188849 MEDICAL RECORDS 900099 12927 0 0 12927 32078 32078 0 861050 34914253 34414913 0 453660 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11973554 11427494 546060 0 78267 78267 0 1450495 1450495 0 754401 713954 40447 0 0 0 0 0 -12619 0 -12619 0 238236 238236 0 1195 1195 0 0 0 0 0 0 0 0 2178426 2178426 76933 76933 0 901731 901731 0 476658 476658 0 0 0 0 0 0 2754516 2754516 0 101451 50410 51041 0 0 0 0 0 24693 0 24693 0 296101 0 296101 0 240000 0 240000 0 2629607 2629607 0 434712 425552 9160 0 MEDICAL SUPPLIES 4727123 4727123 0 0 Bad Debt 4274485 4274485 0 0 DUES/SUBSCRIPTIONS 99159 99159 0 0 COMMUNITY RELATIONS 42438 42438 0 0 -14594 -14594 33726968 31236918 2490050 0 0 1299486 1363085 8179 8179 0 0 3655678 4078716 0 0 0 0 39373 39670 750583 856817 1139823 686221 35084843 9758606 27445334 25326237 0 0 2731206 2894941 0 0 750000 750000 0 690533 37819662 36694399 4394966 4161440 0 0 0 0 0 0 0 0 0 0 23378205 21286986 0 0 131948 144142 27905119 25592568 X 9914543 11101831 0 0 0 0 9914543 11101831 37819662 36694399 X 1187285 3 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false 0 false 0 false 0 true 1195 false 0 false 0 false 0 1195 false Schedule C, Part II-B Membership Dues to THA and TORCH: St. Mark's Medical Center Paid $2,800 to Torch and $7,370.69 to THA in 2014. The portion of dues that were used for lobbying purposes was 10% for Torch and 12.42% for THA. Total dues paid for lobbying activities were ($2,800 X .10) + ($7,370.69 X .1242) = $1,195. 1060000 1060000 22017562 3402571 18614991 231161 1700 229461 11194157 6354335 4839822 581963 0 581963 25326237 MORTGAGE RESERVE FUND 2894941 C 2894941 0 THIRD PARTY PAYABLES 144142 144142 30639768 -4274485 -4274485 34914253 34914253 28910920 28910920 4816048 4816048 33726968 Schedule D, Part XI, Line 2D Reconciliation of Revenue per AFS with Revenue per Return: Provision for Uncollectible Accounts - ($4,274,485) Schedule D, Part XII, Line 4b Reconciliation of Expenses per AFS with Revenue per Return: Provision for Uncollectible Accounts - $4,274,485 Prior period audit restatements - $ 541,560 Rounding - $ 3 ----------------------------------------------------- Total $4,816,048 true true true X true X 150. true true true false true true 257750 209759 47991 0.00160 2003151 2762209 -759058 2260901 2971968 -711067 0.00160 14977 0 14977 0.00050 10000 0 10000 0.00030 1667920 1378738 289182 0.00980 1692897 1378738 314159 0.01060 3953798 4350706 -396908 0.00000 true 4274485 128750 8811109 9025946 -214837 X true true 1 1 St Mark's Medical Center One St Marks Place La Grange TX 78945 wwww.smmctx.org 008234 X X X St Mark's Medical Center 1 false false true X X X X X X X X X 12 true false false true X www.smmctx.org X true 12 true www.smmctx.org false false true X 150. 150. X X X true true X X true X X X X X X true X false X X X X true X false true Schedule H, Part V, Line 5 THE ORGANIZATION PROVIDED COMMUNITY HOSPITAL CORPORATION WITH A LIST OF PERSONS WITH SPECIAL KNOWLEDGE OF PUBLIC HEALTH IN FAYETTE AND LEE COUNTIES INCLUDING PUBLIC HEALTH REPRESENTATIVES, NOT-FOR-PROFIT ORGANIZATION PROFESSIONALS, CHARITIES AND OTHER INDIVIDUALS WHO FOCUS SPECIFICALLY ON UNDERREPRESENTED GROUPS. FROM THAT LIST, NINE IN DEPTH INTERVIEWS WERE CONDUCTED USING A STruCTURED INTERVIEW GUIDE. EXTENSIVE NOTES WERE TAKEN DURING EACH INTERVIEW anD THEN QUANTIFIED BASeD ON RESPONSES, COMMUNITIES AND POpuLATIONS (MINORITY, ELDERLY, UN/UNDERINSURED, ETC.) SERVED, AND PRIORITIES IDENTIFIED BY RESPONDENTS. QUALITATIVE DATA FROM THE INTERVIEWS WAS ALSO ANALYZED AND REPORTED. THE PERSONS INTERVIEWED WERE: * DR. RANDY ALBERS: SUPERINTENDENT, LA GRANGE INDEPENDENT SCHOOL DISTRICT * DR. THOMAS BORSTEDTE, DO: LEAD PHYSICIAN, LA GRANGE FAMILY HEALTH CENTER; MEDICAL DIRECTOR, HOSPICE BRAZOS VALLEY * JUDGE PAUL E. FISCHER: COUNTY JUDGE, LEE COUNTY * CATHY HORN: CHAIR OF THE BOARD OF DIRECTORS, TEJAS HEALTHCARE * DR. DEBBIE IRWIN, MD: CEO/CMO, TEJAS HEALTHCARE * JUDGE ED JANECKA: COUNTY JUDGE, FAYETTE COUNTY * ALAN LAW: SUPERINTENDENT, GIDDINGS INDEPENDENT SCHOOL DISTRICT * MARGIE MCKEE: NURSING HOME ADMINISTRATOR, MONUMENT HILL REHABILITATION AND NURSING CENTER * JUDY VIRE, RN, FNP, BC: NURSE PRACTITIONER, ST. MARK'S FLATONIA CLINIC Schedule H, Part V, Line 11 A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS CONDUCTED FOR ST. MARK'S MEDICAL CENTER (SMMC) FROM OCTOBER 2012 TO MAY 2013. THE HOSPITAL'S STUDY AREA WAS DEFINED AS FAYETTE AND LEE COUNTIES. THE ANALYSIS INCLUDED A CAREFUL REVIEW OF THE MOST CURRENT HEALTH DATA AVAILABLE AND INPUT FROM NUMEROUS COMMUNITY REPRESENTATIVES WITH SPECIAL KNOWLEDGE OF PUBLIC HEALTH. FINDINGS INDICATED THAT THERE WERE FOUR SIGNIFICANT NEEDS IN THE COMMUNITY SERVED BY SMMC. HOSPITAL LEADERSHIP PRIORITIZED THOSE FOUR NEEDS USING A STRUCTURE MATRIX AND DECIDED TO ADDRESS EACH NEED. THE FINAL LIST OF PRIORITIZED NEEDS, IN DESCENDING ORDER, IS LISTED BELOW: 1. ADDITIONAL PRIMARY AND SPECIALTY CARE PROVIDERS AND SERVICES 2. PREVENTION AND EDUCATION REGARDING PREVENTABLE CONDITIONS AND CHRONIC DISEASES 3. ACCESS TO MENTAL HEALTH SERVICES AND PROVIDERS 4. HEALTH DISPARITIES AMONG SPECIAL POPULATIONS SMMC LEADERSHIP HAS DEVELOPED THE FOLLOWING IMPLEMENTATION PLAN TO IDENTIFY SPECIFIC ACTIVITIES AND SERVICES WHICH DIRECTLY ADDRESS THESE PRIORITIES. THE OBJECTIVES WERE IDENTIFIED BY STUDYING THE PRIORITIZED HEALTH NEEDS, WITHIN THE CONTEXT OF THE HOSPITAL'S OVERALL STRATEGIC PLAN AND THE AVAILABILITY OF FINITE RESOURCES. THE PLAN INCLUDES A RATIONALE FOR EACH PRIORITY, FOLLOWED BY OBJECTIVES, SPECIFIC IMPLEMENTATION ACTIVITIES AND ANTICIPATED IMPACT AND EVALUATION. Schedule H, Part V, Line 13H ALL PATIENTS AND INSURANCES ARE BILLED AT 100% OF CHARGES. WE CONTRACTUALLY NEGOTIATE WITH PAYORS TO ACCEPT SOMETHING LESS THAN 100% OF CHARGES. MEDICARE PAYS BASED ON FEE SCHEDULES AND DRG'S, ETC. SELF PAY AND THOSE QUALIFYING FOR FINANCIAL ASSISTANCE ARE ALL BILLED AT 100% OF CHARGES UNTIL SUCH TIME IT IS DETERMINED THAT THEY QUALIFY FOR FINANCIAL ASSISTANCE. BASED UPON THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY A PATIENT MAY QUALIFY FOR FINANCIAL ASSISTANCE ON A SLIDING SCALE, UP TO A MAXIMUM OF 95%. PATIENTS THAT QUALIFY FOR FINANCIAL ASSISTANCE HAVE THEIR ACCOUNTS REDUCED BASED ON THE LEVEL OF FINANCIAL ASSISTANCE. THE BALANCE OF THE ACCOUNT AFTER APPLICATION OF THE DISCOUNT IS HANDLED CONSISTENT WITH THE HOSPITAL'S COLLECTION POLICY. Schedule H, Part V, Line 16I FINANCIAL ASSISTANCE APPLICATIONS ARE AVAILABLE WHEN REGISTERING, THROUGH DISCHARGE PLANNING ETC. OUR STATEMENTS FOR SELF PAY HAVE A TAG LINE STATING IF THEY THINK THEY QUALIFY FOR FINANCIAL ASSISTANCE TO PLEASE CALL THIS NUMBER. WHENEVER A BILL IS DISCUSSED AND A PATIENT INDICATES THEY CAN'T PAY UPFRONT, FINANCIAL ASSISTANCE IS EXPLAINED TO THEM SO THAT IN THE EVENT IT APPLIES THEY KNOW ABOUT IT. IT IS ALSO POSTED ON BULLETIN BOARDS THROUGHOUT THE HOSPITAL THAT FINANCIAL ASSISTANCE IS AVAILABLE. Schedule H, Part V, Line 22d ALL PATIENTS AND INSURANCES ARE BILLED AT 100% OF CHARGES. WE CONTRACTUALLY NEGOTIATE WITH PAYORS TO ACCEPT SOMETHING LESS THAN 100% OF CHARGES. MEDICARE PAYS BASED ON FEE SCHEDULES AND DRG'S, ETC. SELF PAY AND THOSE QUALIFYING FOR FINANCIAL ASSISTANCE ARE ALL BILLED AT 100% OF CHARGES UNTIL SUCH TIME IT IS DETERMINED THAT THEY QUALIFY FOR FINANCIAL ASSISTANCE. BASED UPON THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY A PATIENT MAY QUALIFY FOR FINANCIAL ASSISTANCE ON A SLIDING SCALE, UP TO A MAXIMUM OF 95%. PATIENTS THAT QUALIFY FOR FINANCIAL ASSISTANCE HAVE THEIR ACCOUNTS REDUCED BASED ON THE LEVEL OF FINANCIAL ASSISTANCE. THE BALANCE OF THE ACCOUNT AFTER APPLICATION OF THE DISCOUNT IS HANDLED CONSISTENT WITH THE HOSPITAL'S COLLECTION POLICY. IF A PATIENT QUALIFIES FOR 100% CHARITY, THE ENTIRE ACCOUNT IS WRITTEN-OFF. IF THEY QUALIFY FOR PARTIAL CHARITY, THE CHARITY PORTION IS WRITTEN OFF AND THE PATIENT RECEIVES MONTHLY STATEMENTS WITH REGARD TO THE SELF-PAYMENT BALANCE. FULL PAYMENT IS EXPECTED FROM THE PATIENT. AFTER 180 DAYS FROM DATE OF SERVICE, IF THE SELF-PAYMENT BALANCE REMAINS UNPAID, THIS AMOUNT IS TURNED OVER TO A COLLECTION AGENCY AND THE ACCOUNT IS MOVED TO BAD DEBT AR. Schedule H, Part V, Line 24 ALL PATIENTS AND INSURANCES ARE BILLED AT 100% OF CHARGES. WE CONTRACTUALLY NEGOTIATE WITH PAYORS TO ACCEPT SOMETHING LESS THAN 100% OF CHARGES. MEDICARE PAYS BASED ON FEE SCHEDULES AND DRG'S, ETC. SELF PAY AND THOSE QUALIFYING FOR FINANCIAL ASSISTANCE ARE ALL BILLED AT 100% OF CHARGES UNTIL SUCH TIME IT IS DETERMINED THAT THEY QUALIFY FOR FINANCIAL ASSISTANCE. BASED UPON THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY A PATIENT MAY QUALIFY FOR FINANCIAL ASSISTANCE ON A SLIDING SCALE, UP TO A MAXIMUM OF 95%. PATIENTS THAT QUALIFY FOR FINANCIAL ASSISTANCE HAVE THEIR ACCOUNTS REDUCED BASED ON THE LEVEL OF FINANCIAL ASSISTANCE. THE BALANCE OF THE ACCOUNT AFTER APPLICATION OF THE DISCOUNT IS HANDLED CONSISTENT WITH THE HOSPITAL'S COLLECTION POLICY. 2 St Mark's Medical Center Flatonia 511 S Faires St Flatonia TX 78941 Clinic St Mark's Clinic One St Marks Place La Grange TX 78945 OB/GYN and Orthopedic Clinic Schedule H, Part I, Line 3C SMMC uses both financial status as well as amount of medical debt to determine charity status. Schedule H, Part I, Line 6A The community benefit report was prepared by the parent organization. Schedule H, Part I, Line 7, Column F TOTAL EXPENSE FROM FORM 990, PART IX, LINE 25, COLUMN (A) WAS $33,726,968. THE BAD DEBT EXPENSE INCLUDED IN THIS AMOUNT WAS $4,274,485. THIS LEFT A TOTAL EXPENSE OF $29,452,483 FOR PURPOSES OF CALCULATING LINE 7, COLUMN (F). Schedule H, Part I, Line 7B THE TEXAS HEALTH AND HUMAN SERVICES COMMISSION ("HHSC") REPLACED THE HISTORICAL MEDICAID UPL PROGRAM WITH THE TEXAS HEALTHCARE TRANSFORMATION AND QUALITY IMPROVEMENT PROGRAM WAIVER ("WAIVER"). THE WAIVER INCLUDES AN UNCOMPENSATED CARE ("UC") POOL WHICH HSHC USES TO MAKE SUPPLEMENTAL MEDICAID PAYMENTS TO HOSPITALS TO HELP DEFRAY UNCOMPENSATED CARE COSTS RELATED TO PROVIDING CARE TO MEDICAID ELIGIBLES OR TO INDIVIDUALS WHO HAVE NO SOURCE OF THIRD PARTY COVERAGE. TO QUALIFY FOR UC PAYMENTS, HOSPITALS MUST SUBMIT A UC APPLICATION TO HHSC WHICH REPORTS THE HOSPITAL'S COST OF PROVIDING UNCOMPENSATED CARE BASED ON THE UC METHODOLOGY PROSCRIBED BY HHSC. FOR THE PERIOD OF JULY 1, 2014 THROUGH JUNE 30, 2015, ST. MARK'S RECEIVED $253,000 IN DSH PAYMENTS and $183,000 in UPL payments AS SUPPLEMENTAL REIMBURSEMENT FOR THE COST OF TREATING MEDICAID ELIGIBLE INDIVIDUALS AND INDIVIDUALS WITHOUT A SOURCE OF THIRD PARTY COVERAGE. SCHEDULE H, PART II ST. MARK'S MEDICAL CENTER OFFERS A DEDICATED COMMUNITY SPACE TO AVAIL OUR COMMUNITY A WIDE RANGE OF BENEFITS THAT INCLUDE INCREASING PUBLIC AWARENESS OF HEALTH, COMMUNITY, AND POTENTIAL THREATS THROUGH MEETINGS, SCREENINGS, AND PUBLIC EDUCATION CLASSES. CIVIC ORGANIZATIONS THAT HAVE USED THE COMMUNITY SPACE FOR MEETINGS AND CLASSES INCLUDE THE LIONS CLUB FOR BOARD MEETINGS, THE ROTARY BOARD FOR BOARD MEETINGS, TURTLE WING FOUNDATION FOR SPEECH TRAINING FOR CHILDREN, AND SAINT DAVID'S FOR CERTIFICATION CLASSES. OTHER ORGANIZATIONS THAT HAVE USED THE SPACE INCLUDE BLINN COLLEGE FOR LVN CLASSES, VICTORIA COLLEGE FOR NURSING ORIENTATION CLASSES, AND ST. MARK'S FOUNDATION. THE SPACE HAS ALSO BEEN USED FOR PUBLIC HEALTH ISSUE MEETINGS TO DISCUSS ISSUES SUCH AS CHUNGA DISEASE, EMS STAFF EDUCATION, AUXILIARY VOLUNTEER CLASSES, TRAUMA EDUCATION, TOWN HALL MEETINGS, PUBLIC HEART DISEASE CLASSES, CPR/ACLS CLASSES, ORTHOPEDIC AWARENESS SEMINARS, ER TRAINING, AND TMC CLASSES. Schedule H, Part III, Line 2 THE BAD DEBT REPORTED ON LINE 2 IS THE BAD DEBT FROM THE AUDITED FINANCIAL STATEMENTS. THE METHODOLOGY TO ESTIMATE BAD DEBT IS TO RESERVE SELF-PAY ACCOUNTS ACCORDINGLY: UNBILLED - 60% 0-30 DAYS - 65% 31-60 DAYS - 70% 91-120 DAYS - 80% 121-150 DAYS - 90% >151 DAYS - 100% SELF-PAY AFTER INSURANCE CLAIMS ARE RESERVED AT THE FOLLOWING LEVELS: UNBILLED - 0% 31-60 DAYS - 40% 61-90 DAYS - 50% 91-120 DAYS - 60% 121-150 DAYS - 70% 151-180 DAYS - 80% >181 DAYS - 100% Schedule H, Part III, Line 3 THE ESTIMATE FOR BAD DEBT ATTRIBUTABLE TO PATIENTS WHO ARE ELIGIBLE FOR FINANCIAL ASSISTANCE IS BASED ON THOSE PATIENTS WHO DID NOT QUALIFY FOR 100% CHARITY. SMMC DOES HAVE LEVELS OF CHARITY BASED ON THE POVERTY GUIDELINES SO IT IS POSSIBLE THAT A PATIENT RECEIVES 90% WRITE-OFF WITH A 10% BALANCE DUE. Schedule H, Part III, Line 4 THE MEDICAL CENTER REPORTS PATIENT ACCOUNTS RECEIVABLE AT NET REALIZABLE AMOUNTS. IN EVALUATING THE COLLECTIBILITY OF ACCOUNTS RECEIVABLE, THE MEDICAL CENTER ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR UNCOLLECTIBLE ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE MEDICAL CENTER ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR UNCOLLECTIBLE ACCOUNTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYER HAS NOT YET PAID, OR FOR PAYERS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE MEDICAL CENTER RECORDS A SIGNIFICANT PROVISION FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED OR PROVIDED BY POLICY) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE MEDICAL CENTER'S ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR SELF-PAY PATIENTS WAS APPROXIMATELY 80% OF SELF-PAY ACCOUNTS RECEIVABLE AS OF JUNE 30, 2015 AND 2014. THE MEDICAL CENTER'S ALLOWANCE INCREASED BY APPROXIMATELY $671,000 DUE TO OVERALL GROWTH OF ACCOUNTS RECEIVABLE, THE GROWTH OF SELF-PAY ACCOUNTS RECEIVABLE, AND OVERALL INCREASE IN THE AVERAGE AGE OF ACCOUNTS RECEIVABLE. PATIENT ACCOUNT WRITE-OFFS WERE APPROXIMATELY $3,800,000 AND $3,100,000 FOR THE YEARS ENDED JUNE 30, 2015 AND 2014, respectively. Schedule H, Part III, Line 8 MEDICARE PAYS LESS THAN ACTUAL COST TO PROVIDE THOSE SERVICES. THE HOSPITAL BELIEVES THE SHORTFALL IS PART OF THE COMMUNITY BENEFIT PROVIDED BY THE HOSPITAL. MEDICARE IS APPROXIMATELY 1/2 OF OUR BUSINESS FROM A COST STANDPOINT. WE ARE A COMMUNITY HOSPITAL THAT PROVIDES PATIENTS EASY ACCESS TO HEALTH CARE AT A REASONABLE DISTANCE FROM THEIR HOME SO THEY DO NOT HAVE TO DRIVE TO THE NEXT TOWN FOR EMERGENCY SERVICES AND OR INPATIENT SERVICES. THE COST INFORMATION PROVIDED WAS OBTAINED FROM OUR MEDICARE COST REPORT. Schedule H, Part III, Line 9B IF A PATIENT QUALIFIES FOR 100% CHARITY, THE ENTIRE ACCOUNT IS WRITTEN-OFF. IF THEY QUALIFY FOR PARTIAL CHARITY, THE CHARITY PORTION IS WRITTEN OFF AND THE PATIENT RECEIVES MONTHLY STATEMENTS WITH REGARD TO THE SELF-PAYMENT BALANCE. FULL PAYMENT IS EXPECTED FROM THE PATIENT. AFTER 180 DAYS FROM DATE OF SERVICE, IF THE SELF-PAYMENT BALANCE REMAINS UNPAID, THIS AMOUNT IS TURNED OVER TO A COLLECTION AGENCY AND THE ACCOUNT IS MOVED TO BAD DEBT ACCOUNTS RECEIVABLE. Schedule H, Part VI, Line 2 Needs Assessment: A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS CONDUCTED FOR ST. MARK'S MEDICAL CENTER (SMMC) FROM OCTOBER 2012 TO MAY 2013. THE HOSPITAL'S STUDY AREA WAS DEFINED AS FAYETTE AND LEE COUNTIES. THE ANALYSIS INCLUDED A CAREFUL REVIEW OF THE MOST CURRENT HEALTH DATA AVAILABLE AND INPUT FROM NUMEROUS COMMUNITY REPRESENTATIVES WITH SPECIAL KNOWLEDGE OF PUBLIC HEALTH. FINDINGS INDICATED THAT THERE WERE FOUR SIGNIFICANT NEEDS IN THE COMMUNITY SERVED BY SMMC. HOSPITAL LEADERSHIP PRIORITIZED THOSE FOUR NEEDS USING A STRUCTURE MATRIX AND DECIDED TO ADDRESS EACH NEED. THE FINAL LIST OF PRIORITIZED NEEDS, IN DESCENDING ORDER, IS LISTED BELOW: 1. ADDITIONAL PRIMARY AND SPECIALTY CARE PROVIDERS AND SERVICES 2. PREVENTION AND EDUCATION REGARDING PREVENTABLE CONDITIONS AND CHRONIC DISEASES 3. ACCESS TO MENTAL HEALTH SERVICES AND PROVIDERS 4. HEALTH DISPARITIES AMONG SPECIAL POPULATIONS SMMC LEADERSHIP HAS DEVELOPED THE FOLLOWING IMPLEMENTATION PLAN TO IDENTIFY SPECIFIC ACTIVITIES AND SERVICES WHICH DIRECTLY ADDRESS THESE PRIORITIES. THE OBJECTIVES WERE IDENTIFIED BY STUDYING THE PRIORITIZED HEALTH NEEDS, WITHIN THE CONTEXT OF THE HOSPITAL'S OVERALL STRATEGIC PLAN AND THE AVAILABILITY OF FINITE RESOURCES. THE PLAN INCLUDES A RATIONALE FOR EACH PRIORITY, FOLLOWED BY OBJECTIVES, SPECIFIC IMPLEMENTATION ACTIVITIES AND ANTICIPATED IMPACT AND EVALUATION. Schedule H, Part VI, Line 3 Patient Education of Eligibility for Assistance: ALL SELF-PAY WITHOUT ABILITY TO PAY AT TIME OF SERVICE ARE REFERRED TO OUR ELIGIBILITY VENDOR. THIS ALLOWS THEM TO BE ASSESSED FOR ANY PROGRAMS THAT MAY COVER THEIR MEDICAL EXPENSES SUCH AS MEDICAID, COUNTY PROGRAMS OR ANY OTHER STATE PROGRAMS THAT MAY BE AVAILABLE. Schedule H, Part VI, Line 4 Community Information: THE PRIMARY SERVICE AREA IS LEE AND FAYETTE COUNTIES. THE ESTIMATED PRIMARY SERVICE AREA (PSA) 2012 POPULATION IS APPROXIMATELY 41,500. THE PSA GROWTH RATE FOR THE NEXT 5 YEARS IS EXPECTED TO INCREASE APPROXIMATELY 4.6%. THE PSA POPULATION HAS SUBSTANTIALLY HIGHER PERCENTAGES OF OLDER RESIDENTS (AGES 65+) THAN THE STATE OF TEXAS. THE OLDER RESIDENTS COMPRISE APPROXIMATELY 19.5% OF THE OVERALL PSA POPULATION. THE MAJORITY OF RESIDENTS IN THE PSA IDENTIFY AS WHITE-NON HISPANIC, WITH THE NEXT LARGEST RACE/ETHNICITY IS THE HISPANIC POPULATIONS. THE PSA POPULATION IS EXPECTED TO EXPERIENCE THE MAJORITY OF THEIR GROWTH IN THE HISPANIC POPULATION. THE MEDIAN HOUSEHOLD INCOMES IN THE PSA ARE COMPARABLE TO THE STATE OF TEXAS. THE PSA HAS A LOWER PERCENTAGE OF FAMILIES BELOW THE POVERTY RATE THAN THE STATE OF TEXAS. THE UNEMPLOYMENT RATE IN THE PSA IS LOWER THAN THE STATE OF TEXAS AND THE UNITED STATES. Schedule H, Part VI, Line 5 Promotion of Community Health: DURING THIS FISCAL YEAR, ST. MARK'S PARTICIPATED IN MANY COMMUNITY AND WELLNESS ACTIVITIES INCLUDING: HEALTH FAIRS IN 5 AREA COMMUNITIES, CAR SAFETY SEAT CHECK UPS WITH THE AGRILIFE EXTENSION SERVICE AND LOCAL AIR AMBULANCE; PRESENTED EDUCATIONAL PROGRAMS ON TRANSESOPHAGEAL FUNDOPLICATIONS, HEALTHY HEART CHOICES, MAMMOGRAPHY SCREENING/CANCER EVENT IN LEE COUNTY, MATERNITY FAIRS, CAREER EDUCATION DAYS, SUMMER CAMP FOR HIGH SCHOOL TO PROMOTE HEALTHCARE CAREERS, PROGRAM FOR REDUCTION OF READMISSIONS WITH LOCAL NURSING HOMES, DIABETES EDUCATION, SMOKING CESSATION, MENDED HEARTS PROGRAM FOR CARDIAC DISEASE PATIENTS, AND CHIP HEART PROGRAM. ST. MARK'S ALSO HOSTS A WEEKLY RADIO PROGRAM WITH HEALTH EDUCATION TOPICS AND GUEST SPEAKERS. ST. MARK'S PARTNERS WITH THE SCHOOL SYSTEM TO PROVIDE GUEST LECTURES IN BIOLOGY AND HEALTH EDUCATION AS WELL AS HIGH SCHOOL PHYSICAL EXAMS FOR ATHLETICS, FLU SHOTS FOR COUNTY EMPLOYEES AND WELLNESS SCREENING. FUNDRAISING EVENTS ARE HELD BY OUR EMPLOYEES IN THE COMMUNITY TO INCLUDE: CAR SEATS FOR KIDS, COATS IN THE WINTER, DEPUTY SANTA GIFTS AT CHRISTMAS, FOOD DRIVES DURING THANKSGIVING, ANGEL TREE FOR HOSPICE PATIENTS. OTHER COMMUNITY EVENTS INCLUDE PARTICIPATION IN RELAY FOR LIFE, LIONS CLUB GUEST SPEAKERS, BREAST CANCER AWARENESS, ROTARY, UNITED WAY, CHILD PROTECTIVE SERVICE - CHILD ABUSE AWARENESS, BLOOD DRIVES, BASIC LIFE SUPPORT, CPR CLASSES, PALS AND ATLS. ST. MARK'S HAS ALWAYS HAD OPEN APPLICATION PROCESS FOR ALL ACTIVE AND CONSULTING MEDICAL STAFF. ALL STAFF MUST BE BOARD CERTIFIED OR ELIGIBLE TO TAKE BOARD EXAM TO QUALIFY FOR STAFF MEMBERSHIP. THE BOARD OF DIRECTORS ARE REPRESENTATIVES FROM THE COMMUNITIES WE SERVE INCLUDING FAYETTE AND LEE COUNTY RESIDENTS. BOARD MEMBERS SERVE 2 AND/OR 3 YEAR TERMS. BOARD MEMBERS ARE ELECTED AND APPROVED BY CHC. SURPLUS FUNDS ARE USED TO PURCHASE NEEDED HOSPITAL EQUIPMENT AND ASSIST WITH RECRUITING OF PHYSICIANS TO OUR COMMUNITIES. ST. MARK'S PROVIDES AN INCOME GUARANTEE TO RECRUITED PHYSICIANS THAT JOIN OTHER PRACTICES IN THE COMMUNITIES. Schedule H, Part VI, Line 6 Affiliated Health Care System: ST. MARK'S MEDICAL CENTER IS NOT PART OF AN AFFILIATED HEALTH CARE SYSTEM. Schedule H, Part VI, Line 7 State Filing of Community Benefit Report: Texas false true false false false false false true false SHANE KERNELL PRESIDENT/CEO 0 148179 0 25080 0 12358 0 12619 0 10595 0 208831 0 0 Rick Montolongo Assistant Admin 0 106419 0 5973 0 17018 0 5231 0 20378 0 155019 0 0 Wilson Weber Director 0 446425 0 220314 0 54182 0 95733 0 28419 0 845073 0 0 DAVID BUTLER ASSISTANT SECRETARY 0 277564 0 112370 0 24393 0 5374 0 25161 0 444862 0 0 Michael Diclemente PHYSICIAN 327959 0 0 0 0 0 0 0 0 0 327959 0 0 0 Russel Clark PHYSICIAN 433524 0 0 0 0 0 0 0 0 0 433524 0 0 0 Schedule J, Part I, Line 3 Supplemental Compensation Information: THE ORGANIZATION'S EXECUTIVES, INCLUDING THE CEO, ARE EMPLOYED BY THE PARENT ORGANIZATION Community Hospital Corporation (CHC) AND THEREFORE FOLLOW THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THE ORGANIZATION FOLLOWED THIS PROCESS FOR THE YEAR ENDED JUNE 30, 2015 FOR ITS OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER MANAGEMENT OFFICIALS. Schedule J, Part I, Line 4B NONQUALIFIED RETIREMENT PLAN PARTICIPATION WAS PAID TO: -WILSON WEBER - $114,464 -DAVID BUTLER - $16,193 Schedule J, Part I, Line 7 A PORTION OF THE DISCRETIONARY INCENTIVE COMPENSATION PROGRAM paid by the organization WAS BASED ON EARNINGS BEFORE INTEREST, DEPRECIATION AND AMORTIZATION. - Shane Kernell - $25,080 - Tammy Hartfield - $14,071 - Rick Montelongo - $5,973 - Jeff Casbeer - $1,236 Form 990, Part VI, Line 2 Officer, Director, Trustee, Key Employee Family or Business Relationship: DR. THOMAS BORGSTEDTE AND DR. ALLYSON BORGSTEDTE ARE MARRIED. Form 990, Part VI, Line 3 Description of Management Arrangement: COMMUNITY Hospital CORPORATION (CHC) PROVIDES CERTAIN FINANCIAL, TECHNICAL AND MANAGERIAL SUPPORT SERVICES TO THE HOSPITAL. Form 990, Part VI, Line 6 Description of Classes of Members or Stockholders: COMMUNITY Hospital CORPORATION, A TEXAS NON-PROFIT CORPORATION, IS THE SOLE MEMBER OF SAINT MARK'S MEDICAL CENTER. Form 990, Part VI, Line 7A Description of Classes of Persons and the Nature of Their Rights: COMMUNITY HOSPITAL CORPORATION (CHC) AS THE SOLE MEMBER OF SAINT MARK'S MEDICAL CENTER (SMMC) ELECTS THE MEMBERS OF THE BOARD OF DIRECTORS OF SMMC AND IS EMPOWERED WITH THE ABILITY TO REMOVE DIRECTORS, WITH OR WITHOUT CAUSE. Form 990, Part VI, Line 7B Descr Classes of Persons/Decisions Requiring Appr/Type of Voting Rights: RESERVED POWERS OF THE MEMBER: WHILE THE AFFAIRS OF THE CORPORATION SHALL BE MANAGED BY ITS BOARD OF DIRECTORS, THE APPROVAL OF THE MEMBER FOLLOWING APPROVAL BY THE BOARD OF DIRECTORS SHALL BE NECESSARY FOR THE FOLLOWING MATTERS: (A) THE ESTABLISHMENT OF OR ANY CHANGE IN THE ACTIVITIES, PHILOSOPHY, MISSION OR PURPOSE OF THE CORPORATION AS SET BY THE MEMBER; (B) ANY AMENDMENTS OR REVISIONS TO THE CERTIFICATE OF FORMATION OR BYLAWS OF THE CORPORATION; (C) ANY AMENDMENTS OR REVISIONS OF THE CERTIFICATE OF FORMATION OR BYLAWS OF ANY SUBSIDIARY CORPORATION OF THE CORPORATION; (D) THE CREATION OF, OR INVESTMENT IN, ANY SUBSIDIARY ENTITY, PARTNERSHIP OR VENTURE; (E) ANY AMENDMENT, REVISION OR TERMINATION OF THE PARTNERSHIP AGREEMENT OF ANY PARTNERSHIP OR REGULATIONS OF ANY LIMITED LIABILITY COMPANY TO WHICH THE CORPORATION IS A PARTY; (F) THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE CORPORATION; (G) ALL MATERIAL EXPENDITURE DEVIATIONS ($25,000 IN ANY SINGLE OR SERIES OF TRANSACTIONS) FROM THE ANNUAL OPERATING AND CAPITAL BUDGETS; (H) THE PURCHASE OR ACQUISITION OF ANY REAL PERSONAL, OR MIXED PROPERTY BY THE CORPORATION IN EXCESS OF $25,000 THAT IS NOT PROVIDED FOR IN THE CORPORATION'S ANNUAL OPERATING OR CAPITAL BUDGETS; (I) THE SALE, MORTGAGE, ENCUMBRANCE, TRANSFER, LEASE, GIFT, OR OTHER DISPOSITION OF ANY REAL PROPERTY OF THE CORPORATION; (J) ANY SALE, GIFT, EXCHANGE, LEASE, MORTGAGE OR OTHER TRANSFER OR ENCUMBRANCE (COLLECTIVELY, "TRANSFER") OF THE PERSONAL PROPERTY OF THE CORPORATION (TANGIBLE OR INTANGIBLE) IF THE SUM OF SUCH TRANSFER AND THE SUM OF ALL PRIOR TRANSFERS PER FISCAL YEAR, EXCEED $50,000.00; (K) ANY DEBT OR FINANCING ARRANGEMENT OF THIS CORPORATION, EXCEPT USUAL AND CUSTOMARY TRADE DEBTS WHICH IS INCURRED IN THE ORDINARY COURSE OF BUSINESS OF THE CORPORATION; (L) SETTLEMENT OF ANY CLAIMS OR LITIGATION INVOLVING THE CORPORATION; (M) THE MERGER, DISSOLUTION, OR CONSOLIDATION OF THE CORPORATION OR SUBSIDIARY CORPORATION; (N) THE EXECUTION, REVISION, AMENDMENT, EXTENSION, NON-RENEWAL OR TERMINATION OF ANY MANAGEMENT, EMPLOYMENT, LEASE, OR SERVICE CONTRACT, WITH AN ANNUAL COMPENSATION IN EXCESS OF $30,000 OR AN AGGREGATE COMPENSATION IN EXCESS OF $50,000; (O) ANY DEBTS, LOANS, GUARANTIES, OR GRANTS NOT INCLUDED AND APPROVED AS PART OF THE CORPORATION'S ANNUAL OPERATING AND CAPITAL BUDGETS; (P) THE ELECTION OF THE MEMBERS OF THE BOARD OF DIRECTORS OR THE REMOVAL OF SAID BOARD MEMBER, WHETHER WITH OR WITHOUT CAUSE; (Q) THE APPROVAL OF THE EMPLOYEE POLICIES AND BENEFITS PROGRAMS OF THE CORPORATION; (R) THE APPROVAL OF MAJOR DEVELOPMENT CAMPAIGNS AND FUND-RAISING; AND (S) THE APPROVAL OF THE FINANCE MANAGEMENT SYSTEM FOR THE CORPORATION. Form 990, Part VI, Line 11B Description of Process Used by Management &/or Governing Body to Review 990: THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE FORM 990. ONCE PREPARED, THE FORM IS REVIEWED BY THE ORGANIZATION'S INTERNAL ACCOUNTANTS PRIOR TO FILING. ELECTRONIC COPIES ARE PROVIDED TO EACH BOARD MEMBER VIA EMAIL UPON COMPLETION OF THE FORM PRIOR TO FILING WITH THE IRS. Form 990, Part VI, Line 12C Description of Process to Monitor Transactions for Conflicts of Interest: A FINANCIAL INTEREST IS NOT NECESSARILY A CONFLICT OF INTEREST. A PERSON WHO HAS A FINANCIAL INTEREST MAY HAVE A CONFLICT OF INTEREST ONLY IF THE APPROPRIATE BOARD OR COMMITTEE DECIDES THAT A CONFLICT OF INTEREST EXISTS. PROCEDURES FOR ADDRESSING THE CONFLICT OF INTEREST (1) AN INTERESTED PERSON MAY MAKE A PRESENTATION AT THE BOARD OR COMMITTEE MEETING, BUT AFTER SUCH PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. (2) THE CHAIR OF THE BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. (3) AFTER EXERCISING DUE DILIGENCE, THE BOARD OR COMMITTEE SHALL DETERMINE WHETHER THE CORPORATION CAN OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT WITH REASONABLE EFFORTS FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. (4) IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE CORPORATION'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE CORPORATION AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY IF THE BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE THAT A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE OF THE MEMBER AND MAKING SUCH FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD OR COMMITTEE DETERMINES THAT THE MEMBER HAS IN FACT FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE AND DISCIPLINARY AND CORRECTIVE ACTION. Form 990, Part VI, Lines 15A & 15B Offices & Positions for which Process was Used, & Year Process was Begun: THE ORGANIZATION'S EXECUTIVES, INCLUDING THE CEO, ARE EMPLOYED BY THE PARENT ORGANIZATION CHC AND THEREFORE FOLLOW THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THIS PROCESS IS PERFORMED EACH YEAR PRIOR TO THE ANNUAL EMPLOYEE EVALUATION PROCESS, WHICH ENDS ON JULY 1ST OF EACH YEAR. Form 990, Part VI, Line 19 Governing Documents, Conflict of Interest Policy Available to Public: THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE AT ITS BUSINESS OFFICE UPON REQUEST. FORM 990, PART XI, LINE 9 ROUNDING 3 BAPTIST HOSPITALS OF SOUTHEAST TEXAS POST OFFICE BOX 1591 BEAUMONT TX 77704 741303720 HOSPITAL TX 501(C)(3) 3 SWCH INC false BAPTIST PHYSICIANS NETWORK 3080 COLLEGE STREET BEAUMONT TX 77701 760453250 PRIMARY CARE TX 501(C)(3) 3 BHSET false ARTESIA GENERAL HOSPITAL 702 NORTH 13TH STREET ARTESIA NM 88210 742851819 HOSPITAL NM 501(C)(3) 3 CHC false SOUTHWEST COMMUNITY HOSPITAL INC 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 752725353 Support org TX 501(C)(3) 11D-III-O CHC false YOAKUM COMMUNITY HOSPITAL 1200 CARL RAMERT DRIVE YOAKUM TX 77995 742323822 HOSPITAL TX 501(C)(3) 3 CHC false CONTINUECARE HOSPITAL OF TYLER 800 E DAWSON STREET TYLER TX 75701 200991990 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSPITAL OF SOUTHEAST TEXAS 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 201150480 HOSPITAL TX 501(C)(3) 3 CCC false CHC COMMUNITY CARE LLC 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 371485773 SUPPORT ORG DE 501(C)(3) 11C-III-FI CHC false CONTINUECARE HOSPITAL OF MIDLAND 4214 ANDREWS HIGHWAY MIDLAND TX 79703 463053684 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSPITAL at HENDRICK MED CT 1900 PINE STREET 5TH FLOOR ABILENE TX 79601 463607347 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSPITAL AT BAKERSFIELD 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 465236524 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSP BAP HLT MADISONVILLE 900 Hospital Drive 4th Floor Madisonville KY 42431 465033192 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSP AT BPTST HLT PADUCAH 2501 Kentucky Avenue 5th FL Paducah KY 42003 465032999 HOSPITAL DE 501(C)(3) 3 CCC false CONTINUECARE HOSPITAL AT BAPTIST HEALTH 1 TRILLIUM WAY CORBIN KY 40701 200925675 HOSPITAL KY 501(C)(3) 3 CCC false CRAWLEY MEMORIAL HOSPITAL 706 KINGS STREET KINGS MOUNTAIN NC 28086 560691100 HOSPITAL NC 501(C)(3) 3 CAR CC false CAROLINAS COMMUNITY CARE 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 465590355 SUPPORT ORG DE 501(C)(3) 11B-II CHC false CAROLINAS CONTINUECARE HOSPITAL 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 463796709 HOSPITAL DE 501(C)(3) 3 CAR CC false JELLICO COMMUNITY HOSPITAL INC 188 Hospital Lane Jellico TN 37762 620924706 HOSPITAL TN 501(C)(3) 3 CHC false MERCY RESTORATIVE CARE HOSPITAL INC 10648 Park Road Charlotte NC 28210 753054855 HOSPITAL NC 501(C)(3) 3 CAR CC false CONTINUECARE HOSPITAL AT ODESSA INC 500 W 4th Street Odessa TX 79761 473539943 HOSPITAL DE 501(C)(3) 3 CCC false COMMUNITY HOSPITAL CORP(FKA VHASW CHC 7800 N DALLAS PARKWAY Ste 200 PLANO TX 75024 752638469 SUPPORT ORG TX 501(C)(3) 11C-III-FI NA false St Mark's Medical Center Foundation One St Marks Place La Grange TX 78945 742795943 support org TX 501(C)(3) 7 NA false YOAKUM COMMUNITY HOSPITAL FOUNDATION 1200 Carl Ramert Drive Yoakum TX 77995 453609830 support org TX 501(C)(3) 11a-1 ych false BHSETX Foundation 810 Hospital Drive 235 beaumont TX 77701 611557670 support org TX 501(C)(3) 7 BHSETX false COMMUNITY HEALTH ASSURANCE SPC LTD CAYMAN ISLANDS POB 69GT GRAND CAYMAN CJ CAPTIVE INSURANCE CJ CHC C Corp false COMMUNITY HOSPITAL CONSULTING 7800 N DALLAS PARKWAY 200 PLANO TX 75024 204710183 MGMT CONSULTING TX CHC C Corp false false false false false false false false false false false false false false false false true false false false Community Hospital Corporation p 3193649 cost