2015-05-12T15:08:30-05:00 2014-06-30 WithumSmithBrown PC 465 South St Ste 200 Morristown NJ 079606497 990 2013-07-01 231352208 SACRED HEART HOSPITAL % BRIAN WESSNER SACR 6107764500 421 W CHEW STREET Suite ALLENTOWN PA 181023406 DANIEL CONFALONE CFO 9738989494 2015-05-06 true Scott J Mariani P00642486 9738989494 2013 2016-03-07 17:11:31Z JOHN NESPOLI 421 W CHEW STREET ALLENTOWN PA 181023406 100411903 false X WWW.SHH.ORG X 1917 PA THE ORG. IS COMMITTED TO PROVIDING HEALTHCARE & WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SVCS & PROG. BASED ON CATHOLIC ETHICAL & RELIGIOUS DIRECTIVES. 9 5 1142 245 415587 -444229 666532 669580 102373302 98194860 94018 53225 1039701 1241634 104173553 100159299 25208 25302 0 0 49656463 44827061 0 0 127448 48324787 47446953 98006458 92299316 6167095 7859983 65739200 75636106 40210058 44555672 25529142 31080434 X THE ORGANIZATION IS COMMITTED TO PROVIDING HEALTHCARE AND WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SERVICES AND PROGRAMS BASED ON CATHOLIC ETHICAL AND RELIGIOUS DIRECTIVES. false true 49756382 25302 56363850 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY INPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2014 THERE WERE 6,217 CASES FOR A TOTAL OF 42,326 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 27875709 0 36037513 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY OUTPATIENT SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2014 THERE WERE 143,758 CASES FOR A TOTAL OF 143,758 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 5532044 0 5793497 EXPENSES INCURRED IN PROVIDING MEDICALLY NECESSARY EMERGENCY ROOM SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. DURING THE FISCAL YEAR ENDED JUNE 30, 2014 THERE WERE 29,870 CASES FOR A TOTAL OF 29,870 PATIENT DAYS. PLEASE REFER TO SCHEDULE O FOR THE ORGANIZATION'S COMMUNITY BENEFIT STATEMENT. 83164135 true true false true false false false false false true true false true false true true true true false false false false false false true false true true true false true true false false false false false false false true false false false false false false false true false false false true 124 0 true 1142 true true true false false false false true true false false false false X 9 5 false true false false true true true true true false false true true true true true true true true false PA X BRIAN WESSNER 6107765150 421 W CHEW STREET ALLENTOWN PA 181023406 X ROBERT ZENTZ CHAIRMAN - DIRECTOR 1.0 X X 0 0 0 DOUGLAS SHOENBERGER MD FIRST VICE CHAIRMAN - DIRECTOR 1.0 X X 0 0 0 JAMES FRONHEISER SECOND VICE CHAIRMAN-DIRECTOR 1.0 X X 0 0 0 ANTHONY AUTERI MD DIRECTOR 1.0 X 0 0 0 TRICIA BERNECKER PHD DIRECTOR 1.0 X 0 0 0 RAVINDRA BOLLU MD DIRECTOR - PRES MEDICAL STAFF 1.0 X 14583 0 0 MSGR JOHN J GRABISH DIRECTOR 1.0 X 0 0 0 JOHN L NESPOLI DIRECTOR - PRESIDENT/CEO 55.0 X X 0 477644 121383 WILLIAM J SCHARLE DIRECTOR 1.0 X 0 0 0 STEPHEN A LANSHE ESQ SECRETARY - VP GENERAL COUNSEL 55.0 X 0 231467 26096 ANGIE LONG VP NURSING 55.0 X 0 190338 25941 JOHN HRUBENAK VP BUSINESS DEVELOPMENT 55.0 X 0 157432 22745 RICHARD T MARTIN MD PHYSICIAN 55.0 X 207392 0 24564 MIGUEL RUELAS SALGADO MD PHYSICIAN 55.0 X 172809 0 21595 DANIEL COLLER MD PHYSICIAN 55.0 X 172778 0 19758 ELENA KHROMENKO MD PHYSICIAN 55.0 X 158300 0 20943 DALYA DELMAR GREENBERG MD PHYSICIAN 55.0 X 155997 0 11024 881859 1056881 294049 23 false true false SACRED HEART HEALTHCARE SYSTEM 421 W CHEW STREET ALLENTOWN PA 181023406 MANAGEMENT 4039093 GRANT FACILITIES MANAGEMENT INC 188 FRIES MILL ROAD TURNERSVILLE NJ 08012 MANAGEMENT 1914861 SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN PA 181023406 MANAGEMENT 1541973 MORRISON MANAGEMENT SPECIALISTS INC PO BOX 102289 ATLANTA GA 303682289 FOOD 852708 ISS SOLUTIONS PO BOX 13700-1066 PHILADELPHIA PA 191911066 BIOMED 519601 21 X 134318 535262 10000 669580 NET PATIENT SERVICE REVENUE 541900 95379715 95379715 OTHER HEALTHCARE RELATED REVENUE 541900 2815145 2399558 415587 98194860 137779 137779 0 0 728540 728540 0 728540 728540 1932 86486 -86486 1932 -84554 -84554 60840 134318 60840 0 0 167622 105278 62344 62344 PARKING 812930 300549 300549 DIETARY 722410 75598 75598 TELEVISION 900099 36232 36232 38371 38371 450750 100159299 97779273 415587 1294859 25302 25302 0 0 0 14583 13125 1458 0 0 36013981 32412583 3539020 62378 396861 357175 38550 1136 5757359 5181623 567046 8690 2644277 2379849 259313 5115 5505393 4954854 550539 130551 117496 13055 140168 126151 14017 14517 13065 1452 0 0 9918010 8926209 951194 40607 153201 137881 15320 1151732 1036559 111324 3849 671622 604460 67162 0 3011528 2710375 301153 4656 4190 466 0 68183 61365 6818 1208143 1087329 120814 0 4587677 4128909 458768 1572539 1415285 157254 MEDICAL SUPPLIES 13837302 12545793 1291509 0 REPAIRS AND MAINTENANCE 4309187 3878268 430919 0 PROGRAM EXPENSES 468547 421692 46855 0 CONTRACTED SERVICES 226368 203731 22637 0 467629 420866 41090 5673 92299316 83164135 9007733 127448 X 2813 2813 3239646 4126288 2336830 1607927 13005284 17375927 0 0 0 0 3580604 2028817 1912970 1916033 1229677 1197360 156524036 123951006 27907767 32573030 0 0 0 0 11249554 13500060 0 0 1274055 1307851 65739200 75636106 16487773 16543549 0 0 0 0 18932468 18038274 0 0 0 0 2336114 6939046 0 0 2453703 3034803 40210058 44555672 X 19742154 24882440 4334810 4687337 1452178 1510657 25529142 31080434 65739200 75636106 X 7859983 108415 -2417106 X X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false true 8595 false true 5922 14517 false SCHEDULE C, PART II-B; LINES 1G AND 1I THE ORGANIZATION HAS ALLOCATED TOWARD LOBBYING ACTIVITY A PERCENTAGE OF COMPENSATION PAID TO CERTAIN SENIOR MANAGEMENT PERSONNEL TO REPRESENT TIME SPENT ADDRESSING FEDERAL AND STATE HEALTHCARE MATTERS. THIS ALLOCATION AMOUNTED TO $5,922. THE ORGANIZATION IS A MEMBER OF THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA WHICH ENGAGES IN LOBBYING EFFORTS ON BEHALF OF ITS MEMBER HOSPITALS. A PORTION OF THE DUES PAID TO THIS ORGANIZATION HAS BEEN ALLOCATED TO LOBBYING ACTIVITIES PERFORMED ON BEHALF OF THE ORGANIZATION. THIS ALLOCATION AMOUNTED TO $8,595. 5893410 1934142 58489 0 1359514 0 6526527 4846304 3890574 244920 0 3088388 0 5893410 2743989 5053037 30968 0 2981690 0 4846304 1918806 5967387 212855 0 5355059 0 2743989 2126096 2432752 -235523 0 2404519 0 1918806 0.06000 0.23000 0.71000 false false 1445773 1445773 73044966 53293148 19751818 80140302 70657858 9482444 1892995 1892995 32573030 CASH AND CASH EQUIVALENTS 3410643 F MUTUAL FUNDS 1582355 F MORTGAGE BACKED SECURITIES 0 F CORPORATE BONDS 840809 F MARKETABLE EQUITY SECURITIES 494080 F U.S. GOVERNMENT SECURITIES 1611423 F AGREEMENT 3984177 F AGREEMENT 65916 F PERPETUAL TRUSTS 1510657 F 13500060 0 INTEREST PAYABLE 74050 DUE TO AFFILIATES 240642 DUE TO THIRD-PARTY PAYORS 2720111 3034803 X 100372992 108415 105278 213693 100159299 100159299 92404594 105278 105278 92299316 92299316 SCHEDULE D, PART V, QUESTION 4 RESTRICTED FUNDS ARE USED TO SUPPORT THE CHARITABLE ACTIVITIES AND PROGRAMS OF THE ORGANIZATION AND ITS AFFILIATES. SCHEDULE D, PART X THE ORGANIZATION IS AN AFFILIATE OF SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM ISSUES CONSOLIDATED AUDITED FINANCIAL STATEMENTS WHICH INCLUDE ALL RELATED ENTITIES; INCLUDING THIS ORGANIZATION. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS ALSO CONTAIN CONSOLIDATING SCHEDULES ON AN ENTITY BY ENTITY BASIS. IN ADDITION, AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF SACRED HEART HOSPITAL FOR THE YEARS ENDED JUNE 30, 2014 AND JUNE 30, 2013; RESPECTIVELY. THE FIN 48 (ASC 740) FOOTNOTE BELOW IS FROM THE ORGANIZATION'S YEAR ENDED JUNE 30, 2014 AUDITED FINANCIAL STATEMENTS. THE ORGANIZATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES ON ITS EXEMPT INCOME UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE. THE ORGANIZATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2014 OR 2013. SCHEDULE D, PART XI; LINE 2D OTHER RECONCILIATION ITEMS INCLUDED ON LINE 1 BUT NOT ON FORM 990, PART VIII, LINE 12 INCLUDE: - COST OF GOODS SOLD; $105,278. SCHEDULE D, PART XII; LINE 2D OTHER RECONCILIATION ITEMS INCLUDED ON LINE 1 BUT NOT ON FORM 990, PART IX, LINE 25 INCLUDE: - COST OF GOODS SOLD; $105,278. NIGHT OF CHANCE 82893 63383 19510 13420 5581 509 LINKS TO HEART 75915 43930 31985 11175 20810 1 36350 27005 9345 2388 6340 617 195158 134318 60840 26983 11921 21936 60840 true true X true X true X true true false false 45378 0 45378 0.00050 22212957 16299880 5913077 0.06410 22258335 16299880 5958455 0.06460 425933 0 425933 0.00460 4159985 1227584 2932401 0.03180 1609185 1009529 599656 0.00650 53234 0 53234 0.00060 6248337 2237113 4011224 0.04350 28506672 18536993 9969679 0.10810 17818 0 17818 0.00020 22920 0 22920 0.00020 7502 0 7502 0.00010 44544 0 44544 0.00050 38419 0 38419 0.00040 131203 0 131203 0.00140 true 8202285 4306200 28105696 23598546 4507150 X true true 1 1 SACRED HEART HOSPITAL 421 W CHEW STREET ALLENTOWN PA 181023406 WWW.SHH.ORG 195501 X X X X BEHAVIORAL HEALTH, HOME HEALTH, HOSPICE SERVICES 1 SACRED HEART HOSPITAL 1 true X X X X X X X X X 13 true true true X www.shh.org/community-health-profile.asp X X X X X X X false false true true 150. true 250. true X X X true true X X X X X X true false X X X X true X false false SCH H,PART V, SECT B, QS 1J,6I,10,11,12I,14G,16E,17E,18E,19C,19D & 21 NOT APPLICABLE. SCHEDULE H, PART V, SECTION B, QUESTION 3 THE COALITION OF HOSPITALS HELD FOUR SEPARATE PUBLIC MEETINGS IN THE LEHIGH VALLEY THAT INCLUDED MEMBERS OF THE ALLENTOWN AND BETHLEHEM BUREAUS OF HEALTH, MANY MEMBERS OF THE PUBLIC AND HEALTHCARE PROFESSIONALS INCLUDING THOSE NOT AFFILIATED WITH OUR HOSPITALS. AS AN ACTIVE MEMBER OF THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV"), SACRED HEART HOSPITAL WORKED IN COLLABORATION WITH FOUR OTHER REGIONAL, NON-PROFIT ACUTE AND POST-ACUTE CARE HOSPITALS AND THE DOROTHY RIDER POOL TRUST TO DEVELOP THE REGION'S COMMUNITY HEALTH NEEDS ASSESSMENT. THE HOSPITAL PARTNERS OF THE HCCLV INCLUDE: - SACRED HEART HEALTHCARE SYSTEM - LEHIGH VALLEY HEALTH NETWORK - ST. LUKE'S UNIVERSITY HEALTH NETWORK - GOOD SHEPHERD REHABILITATION HOSPITAL - KIDSPEACE THE HCCLV'S APPROACH TO THE CHNA INCORPORATES BEST PRACTICE STANDARDS RECOMMENDED BY THE AMERICAN PUBLIC HEALTH ASSOCIATION ("APHA") AND THE ASSOCIATION FOR COMMUNITY HEALTH IMPROVEMENT ("ACHI") AND HAS ACTIVELY PARTNERED WITH MANY STAKEHOLDERS, COMMUNITY BASED ORGANIZATIONS AND COMMUNITY MEMBERS. THE DOROTHY RIDER POOL TRUST REACHED OUT TO TWO COMMUNITY-BASED ORGANIZATIONS, THE HISPANIC CENTER LEHIGH VALLEY IN BETHLEHEM AND THE RESURRECTED COMMUNITY DEVELOPMENT CORPORATION IN ALLENTOWN, AS ORGANIZATIONS TRUSTED WITHIN EACH COMMUNITY TO HOST THE FORUMS. THESE ORGANIZATIONS PUBLICIZED THE EVENTS AMONG STAKEHOLDERS, RECRUITED ATTENDEES, ORGANIZED REFRESHMENTS FROM LOCAL INDEPENDENT VENDORS, AND PROVIDED WELCOME AND INTRODUCTIONS AT THE START OF EACH FORUM. SCHEDULE H, PART V, SECTION B, QUESTION 4 OUR CHNA WAS CREATED IN PARTNERSHIP WITH LEHIGH VALLEY HEALTH NETWORK, ST. LUKE'S UNIVERSITY HOSPITAL NETWORK, GOOD SHEPHERD REHABILITATION HOSPITAL, KIDSPEACE AND SACRED HEART HEALTHCARE SYSTEM. THE COALITION IS KNOWN AS THE HEALTH CARE COUNCIL OF THE LEHIGH VALLEY ("HCCLV"). SCHEDULE H, PART V, SECTION B, QUESTION 5D IN ADDITION TO THIS BEING MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE, ALL PARTICIPANTS OF THE AFORE-MENTIONED HCCLV HAVE POSTED THIS INFO ON THEIR WEBSITES. SCHEDULE H, PART V, SECTION B, QUESTION 7 SACRED HEART HOSPITAL HAS PREPARED AND ADOPTED A WRITTEN IMPLEMENTATION PLAN WHICH WILL ADDRESS ALL OF THE NEEDS OUTLINED IN THE COMMUNITY HEALTH NEEDS ASSESSMENT. UNMET HEALTHCARE NEEDS THAT WERE IDENTIFIED INCLUDE: IMPROVING ACCESS TO CARE, ADDRESSING BEHAVIOR ISSUES AND ADDRESSING ENVIRONMENTAL (COMMUNITY) ISSUES. PLEASE SEE ATTACHED WRITTEN IMPLEMENTATION PLAN. THERE HAVE BEEN NO NEW PROGRAMS IMPLEMENTED BY THE HOSPITAL DURING THE CURRENT YEAR THAT ADDRESS THE UNMET NEEDS IDENTIFIED IN THE ATTACHED IMPLEMENTATION PLAN. OUR PRIORITY UNMET NEEDS IN THE IMPLEMENTATION PLAN ARE INTEGRAL TO OUR COMMUNITY BENEFIT STRATEGY. SACRED HEART'S LEADERS CONTINUE TO MONITOR NEW PROGRAM DEVELOPMENTS AND SERVICES. SCHEDULE H, PART V, SECTION B, QUESTION 20D PATIENTS WHO PROVIDE INFORMATION AND ARE DEEMED FAP-ELIGIBLE RECEIVE A SLIDING SCALE DISCOUNT. 12 SH CARDIOVASCULAR CENTER 325 NORTH 5TH STREET SUITE 2001 ALLENTOWN PA 18102 OUTPATIENT FACILITY SH IMAGING NORTHAMPTON 602 B EAST 21ST STREET NORTHAMPTON PA 18067 OUTPATIENT FACILITY SH VISITING NURSES 2268 S 12TH STREET 4TH FLOOR ALLENTOWN PA 18103 OUTPATIENT FACILITY NUCLEAR MEDICINE 325 NORTH 5TH STREET ALLENTOWN PA 18102 OUTPATIENT FACILITY SACRED HEART OUTPATIENT REHAB SERVICES 1227 LIBERTY STREET SUITE 102 ALLENTOWN PA 18102 OUTPATIENT FACILITY ALLENTOWN FAMILY PRACTICE 450 CHEW STREET SUITE 101 ALLENTOWN PA 18102 OUTPATIENT FACILITY CENTER FOR CANCER CARE 325 NORTH 5TH STREET ALLENTOWN PA 18102 OUTPATIENT FACILITY LANSHE BREAST CENTER 451 CHEW STREET SUITE 210 ALLENTOWN PA 18102 OUTPATIENT FACILITY SH PEDIATRIC AND ADOLESCENT SERVICES 450 CHEW STREET SUITE 202 ALLENTOWN PA 18102 OUTPATIENT FACILITY SH HOSPICE 2268 S 12TH STREET 4TH FLOOR ALLENTOWN PA 18103 OUTPATIENT FACILITY OBGYN SERVICES 450 CHEW STREET SUITE 201 ALLENTOWN PA 18102 OUTPATIENT FACILITY SH DENTAL CENTER 450 CHEW STREET SUITE 201 ALLENTOWN PA 18102 OUTPATIENT FACILITY SCHEDULE H, PART I, LINE 6A NOT APPLICABLE. SCHEDULE H, PART I, LINE 7 ALL OF LINE 7G IS ATTRIBUTABLE TO CLINICS AND OTHER SUBSIDIZED HEALTH SERVICES RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS CONSTITUTING COMMUNITY BENEFIT. SCHEDULE H, PART I, QUESTION 7 WITH THE EXCEPTION OF LINE G, THE COST TO CHARGE RATIO, CALCULATED BY USING WORKSHEET 2, WAS APPLIED. FOR LINE G - THE ACTUAL DEPARTMENTAL COST TO CHARGE RATIO WAS APPLIED. SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES UNDERTAKEN BY THIS ORGANIZATION IMPROVE THE MEDICAL AND SOCIOECONOMIC WELL-BEING OF THE COMMUNITIES IN OUR CARE. THIS IS ACCOMPLISHED THROUGH SERVICE ON STATE AND REGIONAL ADVOCACY COMMITTEES AND BOARDS, VOLUNTEERISM WITH LOCAL COMMUNITY-BASED NON-PROFIT ADVOCACY GROUPS, AND PARTICIPATION IN CONFERENCES AND OTHER EDUCATIONAL ACTIVITIES TO PROMOTE UNDERSTANDING OF THE ROOT CAUSES OF HEALTH CONCERNS. THIS ORGANIZATION PROVIDES EDUCATIONAL MATERIALS, CONDUCTS COMMUNITY HEALTH FAIRS AND HOLDS HEALTH EDUCATION SEMINARS AND OUTREACH SESSIONS FOR ITS PATIENTS AND FOR COMMUNITY PROVIDERS. PRESENTATIONS ARE PROVIDED BY PHYSICIANS, NURSES AND OTHER HEALTHCARE PROFESSIONALS. SCHEDULE H, PART III, SECTION A; LINES 2, 3 & 4 BAD DEBT EXPENSE WAS CALCULATED USING THE ORGANIZATION'S BAD DEBT EXPENSE FROM ITS AUDITED FINANCIAL STATEMENTS, NET OF ACCOUNTS WRITTEN OFF AT CHARGES AND MULTIPLIED BY ITS COST TO CHARGE RATIO. THE ORGANIZATION PREPARES AND ISSUES AUDITED FINANCIAL STATEMENTS. THE ATTACHED TEXT WAS OBTAINED FROM THE FOOTNOTES TO THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION. ACCOUNTS RECEIVABLE, PATIENTS ARE REPORTED AT NET REALIZABLE VALUE. ACCOUNTS ARE WRITTEN OFF WHEN THEY ARE DETERMINED TO BE UNCOLLECTIBLE BASED UPON MANAGEMENT'S ASSESSMENT OF INDIVIDUAL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUAL AMOUNTS DUE AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS, THE HOSPITAL RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS 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 BILLED RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. THE HOSPITAL'S ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR SELF-PAY PATIENTS WAS 89% AND 85% OF SELF-PAY ACCOUNTS RECEIVABLE AT JUNE 30, 2014 and 2013; RESPECTIVELY. IN ADDITION, THE HOSPITAL'S SELF-PAY ACCOUNT WRITE-OFFS (NET OF RECOVERIES) INCREASED TO $18,740,000 IN 2014 FROM $16,749,000 IN 2013. DURING NOVEMBER 2013, THE HOSPITAL IMPLEMENTED A NEW FINANCIAL ASSISTANCE POLICY AND BEGAN ADJUSTING SELF PAY ACCOUNT BALANCES THAT DO NOT QUALIFY FOR MEDICAID OR CHARITY CARE TO 25% OF CHARGES. THE HOSPITAL DOES NOT MAINTAIN A MATERIAL ALLOWANCE FOR DOUBTFUL ACCOUNTS FROM THIRD-PARTY PAYORS, NOR DID IT HAVE SIGNIFICANT WRITE-OFFS FROM THIRD-PARTY PAYORS. SCHEDULE H, PART III, SECTION B; LINE 8 MEDICARE COSTS WERE DERIVED FROM THE MEDICARE COST REPORT FILED BY THE ORGANIZATION. BAD DEBT IS COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE ORGANIZATION FEELS THAT BAD DEBT IS COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. AS OUTLINED MORE FULLY BELOW THE ORGANIZATION BELIEVES THAT THESE SERVICES AND RELATED COSTS PROMOTE THE HEALTH OF THE COMMUNITY AS A WHOLE AND ARE RENDERED IN CONJUNCTION WITH THE ORGANIZATION'S CHARITABLE TAX-EXEMPT PURPOSES AND MISSION IN PROVIDING MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUAL'S IN A NON-DISCRIMINATORY MANNER WITHOUT REGARD TO RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY AND CONSISTENT WITH THE COMMUNITY BENEFIT STANDARD PROMULGATED BY THE IRS. THE COMMUNITY BENEFIT STANDARD IS THE CURRENT STANDARD FOR A HOSPITAL FOR RECOGNITION AS A TAX-EXEMPT AND CHARITABLE ORGANIZATION UNDER INTERNAL REVENUE CODE ("IRC") 501(C)(3). THE ORGANIZATION IS RECOGNIZED AS A TAX-EXEMPT ENTITY AND CHARITABLE ORGANIZATION UNDER 501(C)(3) OF THE IRC. ALTHOUGH THERE IS NO DEFINITION IN THE TAX CODE FOR THE TERM "CHARITABLE", A REGULATION PROMULGATED BY THE DEPARTMENT OF THE TREASURY PROVIDES SOME GUIDANCE AND STATES THAT "THE TERM CHARITABLE IS USED IN 501(C)(3) IN ITS GENERALLY ACCEPTED LEGAL SENSE," AND PROVIDES EXAMPLES OF CHARITABLE PURPOSES, INCLUDING THE RELIEF OF THE POOR OR UNPRIVILEGED; THE PROMOTION OF SOCIAL WELFARE; AND THE ADVANCEMENT OF EDUCATION, RELIGION, AND SCIENCE. NOTE: IT DOES NOT EXPLICITLY ADDRESS THE ACTIVITIES OF HOSPITALS. IN THE ABSENCE OF EXPLICIT STATUTORY OR REGULATORY REQUIREMENTS APPLYING THE TERM "CHARITABLE" TO HOSPITALS, IT HAS BEEN LEFT TO THE IRS TO DETERMINE THE CRITERIA HOSPITALS MUST MEET TO QUALIFY AS IRC 501(C)(3) CHARITABLE ORGANIZATIONS. THE ORIGINAL STANDARD WAS KNOWN AS THE CHARITY CARE STANDARD. THIS STANDARD WAS REPLACED BY THE IRS WITH THE COMMUNITY BENEFIT STANDARD WHICH IS THE CURRENT STANDARD. CHARITY CARE STANDARD IN 1956, THE IRS ISSUED REVENUE RULING 56-185, WHICH ADDRESSED THE REQUIREMENTS HOSPITALS NEEDED TO MEET IN ORDER TO QUALIFY FOR IRC 501(C)(3) STATUS. ONE OF THESE REQUIREMENTS IS KNOWN AS THE "CHARITY CARE STANDARD." UNDER THE STANDARD, A HOSPITAL HAD TO PROVIDE, TO THE EXTENT OF ITS FINANCIAL ABILITY, FREE OR REDUCED-COST CARE TO PATIENTS UNABLE TO PAY FOR IT. A HOSPITAL THAT EXPECTED FULL PAYMENT DID NOT, ACCORDING TO THE RULING, PROVIDE CHARITY CARE BASED ON THE FACT THAT SOME PATIENTS ULTIMATELY FAILED TO PAY. THE RULING EMPHASIZED THAT A LOW LEVEL OF CHARITY CARE DID NOT NECESSARILY MEAN THAT A HOSPITAL HAD FAILED TO MEET THE REQUIREMENT SINCE THAT LEVEL COULD REFLECT ITS FINANCIAL ABILITY TO PROVIDE SUCH CARE. THE RULING ALSO NOTED THAT PUBLICLY SUPPORTED COMMUNITY HOSPITALS WOULD NORMALLY QUALIFY AS CHARITABLE ORGANIZATIONS BECAUSE THEY SERVE THE ENTIRE COMMUNITY, AND A LOW LEVEL OF CHARITY CARE WOULD NOT AFFECT A HOSPITAL'S EXEMPT STATUS IF IT WAS DUE TO THE SURROUNDING COMMUNITY'S LACK OF CHARITABLE DEMANDS. COMMUNITY BENEFIT STANDARD IN 1969, THE IRS ISSUED REVENUE RULING 69-545, WHICH "REMOVED" FROM REVENUE RULING 56-185 "THE REQUIREMENTS RELATING TO CARING FOR PATIENTS WITHOUT CHARGE OR AT RATES BELOW COST." UNDER THE STANDARD DEVELOPED IN REVENUE RULING 69-545, WHICH IS KNOWN AS THE "COMMUNITY BENEFIT STANDARD," HOSPITALS ARE JUDGED ON WHETHER THEY PROMOTE THE HEALTH OF A BROAD CLASS OF INDIVIDUALS IN THE COMMUNITY. THE RULING INVOLVED A HOSPITAL THAT ONLY ADMITTED INDIVIDUALS WHO COULD PAY FOR THE SERVICES (BY THEMSELVES, PRIVATE INSURANCE, OR PUBLIC PROGRAMS SUCH AS MEDICARE), BUT OPERATED A FULL-TIME EMERGENCY ROOM THAT WAS OPEN TO EVERYONE. THE IRS RULED THAT THE HOSPITAL QUALIFIED AS A CHARITABLE ORGANIZATION BECAUSE IT PROMOTED THE HEALTH OF PEOPLE IN ITS COMMUNITY. THE IRS REASONED THAT BECAUSE THE PROMOTION OF HEALTH WAS A CHARITABLE PURPOSE ACCORDING TO THE GENERAL LAW OF CHARITY, IT FELL WITHIN THE "GENERALLY ACCEPTED LEGAL SENSE" OF THE TERM "CHARITABLE," AS REQUIRED BY TREAS. REG. 1.501(C)(3)-1(D)(2). THE IRS RULING STATED THAT THE PROMOTION OF HEALTH, LIKE THE RELIEF OF POVERTY AND THE ADVANCEMENT OF EDUCATION AND RELIGION, IS ONE OF THE PURPOSES IN THE GENERAL LAW OF CHARITY THAT IS DEEMED BENEFICIAL TO THE COMMUNITY AS A WHOLE EVEN THOUGH THE CLASS OF BENEFICIARIES ELIGIBLE TO RECEIVE A DIRECT BENEFIT FROM ITS ACTIVITIES DOES NOT INCLUDE ALL MEMBERS OF THE COMMUNITY, SUCH AS INDIGENT MEMBERS OF THE COMMUNITY, PROVIDED THAT THE CLASS IS NOT SO SMALL THAT ITS RELIEF IS NOT OF BENEFIT TO THE COMMUNITY. THE IRS CONCLUDED THAT THE HOSPITAL WAS "PROMOTING THE HEALTH OF A CLASS OF PERSONS THAT IS BROAD ENOUGH TO BENEFIT THE COMMUNITY" BECAUSE ITS EMERGENCY ROOM WAS OPEN TO ALL AND IT PROVIDED CARE TO EVERYONE WHO COULD PAY, WHETHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT. OTHER CHARACTERISTICS OF THE HOSPITAL THAT THE IRS HIGHLIGHTED INCLUDED THE FOLLOWING: ITS SURPLUS FUNDS WERE USED TO IMPROVE PATIENT CARE, EXPAND HOSPITAL FACILITIES, AND ADVANCE MEDICAL TRAINING, EDUCATION, AND RESEARCH; IT WAS CONTROLLED BY A BOARD OF TRUSTEES THAT CONSISTED OF INDEPENDENT CIVIC LEADERS; AND HOSPITAL MEDICAL STAFF PRIVILEGES WERE AVAILABLE TO ALL QUALIFIED PHYSICIANS. BAD DEBT IS COMMUNITY BENEFIT AND ASSOCIATED COSTS ARE INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THE AMERICAN HOSPITAL ASSOCIATION ("AHA") FEELS THAT BAD DEBT IS COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THIS ORGANIZATION AGREES WITH THE AHA POSITION. AS OUTLINED IN THE AHA LETTER TO THE IRS DATED AUGUST 21, 2007 WITH RESPECT TO THE FIRST PUBLISHED DRAFT OF THE NEW FORM 990 AND SCHEDULE H, THE AHA FELT THAT THE IRS SHOULD INCORPORATE THE FULL VALUE OF THE COMMUNITY BENEFIT THAT HOSPITALS PROVIDE BY COUNTING BAD DEBT AS QUANTIFIABLE COMMUNITY BENEFIT. BOTH THE AHA AND THIS ORGANIZATION ALSO FEEL THAT PATIENT BAD DEBT IS A COMMUNITY BENEFIT AND THUS INCLUDABLE ON THE FORM 990, SCHEDULE H, PART I. THERE ARE COMPELLING REASONS THAT PATIENT BAD DEBT SHOULD BE COUNTED AS QUANTIFIABLE COMMUNITY BENEFIT AS FOLLOWS: - A SIGNIFICANT MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO LOW-INCOME PATIENTS, WHO, FOR MANY REASONS, DECLINE TO COMPLETE THE FORMS REQUIRED TO ESTABLISH ELIGIBILITY FOR HOSPITALS' CHARITY CARE OR FINANCIAL ASSISTANCE PROGRAMS. A 2006 CONGRESSIONAL BUDGET OFFICE ("CBO") REPORT, NONPROFIT HOSPITALS AND THE PROVISION OF COMMUNITY BENEFITS, CITED TWO STUDIES INDICATING THAT "THE GREAT MAJORITY OF BAD DEBT WAS ATTRIBUTABLE TO PATIENTS WITH INCOMES BELOW 200% OF THE FEDERAL POVERTY LINE." - THE REPORT ALSO NOTED THAT A SUBSTANTIAL PORTION OF BAD DEBT IS PENDING CHARITY CARE. UNLIKE BAD DEBT IN OTHER INDUSTRIES, HOSPITAL BAD DEBT IS COMPLICATED BY THE FACT THAT HOSPITALS FOLLOW THEIR MISSION TO THE COMMUNITY AND TREAT EVERY PATIENT THAT COMES THROUGH THEIR EMERGENCY DEPARTMENT, REGARDLESS OF ABILITY TO PAY. PATIENTS WHO HAVE OUTSTANDING BILLS ARE NOT TURNED AWAY, UNLIKE OTHER INDUSTRIES. BAD DEBT IS FURTHER COMPLICATED BY THE AUDITING INDUSTRY'S STANDARDS ON REPORTING CHARITY CARE. MANY PATIENTS CANNOT OR DO NOT PROVIDE THE NECESSARY, EXTENSIVE DOCUMENTATION REQUIRED TO BE DEEMED CHARITY CARE BY AUDITORS. AS A RESULT, ROUGHLY 10% OF BAD DEBT IS PENDING CHARITY CARE. - THE CBO CONCLUDED THAT ITS FINDINGS "SUPPORT THE VALIDITY OF THE USE OF UNCOMPENSATED CARE [BAD DEBT AND CHARITY CARE] AS A MEASURE OF COMMUNITY BENEFITS" ASSUMING THE FINDINGS ARE GENERALIZABLE NATIONWIDE; THE EXPERIENCE OF HOSPITALS AROUND THE NATION REINFORCES THAT THEY ARE GENERALIZABLE. AS OUTLINED BY THE AHA, DESPITE THE HOSPITAL'S BEST EFFORTS AND DUE DILIGENCE, PATIENT BAD DEBT IS A PART OF THE HOSPITAL'S MISSION AND CHARITABLE PURPOSES. BAD DEBT REPRESENTS PART OF THE BURDEN HOSPITALS SHOULDER IN SERVING ALL PATIENTS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. IN ADDITION, THE HOSPITAL INVESTS SIGNIFICANT RESOURCES IN SYSTEMS AND STAFF TRAINING TO ASSIST PATIENTS THAT ARE IN NEED OF FINANCIAL ASSISTANCE. SCHEDULE H, PART III, SECTION C; QUESTION 9B A COMPUTERIZED STATEMENT IS GENERATED WITHIN 30 DAYS AFTER AN ACCOUNT INDICATES A REMAINING PATIENT LIABILITY. FOLLOW-UP STATEMENTS ARE MAILED AT 30-DAY CYCLES THEREAFTER, FOR A TOTAL OF FOUR STATEMENTS. IF A PATIENT RESPONDS, THE COLLECTORS ASK FOR PROMISE TO PAY AND A DATE. IF THE PATIENT CANNOT PAY IN FULL, THE COLLECTOR WILL SET UP FOR CONTRACT PAYMENTS WITH FOLLOW UP STATEMENTS BASED ON A SCHEDULE. AFTER FOUR STATEMENTS AND NO RESPONSE THE ACCOUNTS ARE TRANSFERRED TO A COLLECTION AGENCY. BASED ON A SCHEDULE. SCHEDULE H, PART VI; QUESTION 2 SACRED HEART HOSPITAL, IN CONJUNCTION WITH THREE OTHER REGIONAL NON-PROFIT HOSPITALS AND A LOCAL TRUST COLLABORATED ON A COMMUNITY HEALTH NEEDS ASSESSMENT AND ACTION PLAN. INTERNALLY, SACRED HEART HOSPITAL HAS CREATED A COMMUNITY HEALTH COMMITTEE COMPRISED OF BOARD MEMBERS AND STAFF THAT WILL ADMINISTER THE IMPLEMENTATION OF THE ACTION PLAN. THE OBJECTIVE OF THIS COLLABORATION IS TO DEVELOP A COMMUNITY HEALTH NEEDS ASSESSMENT THAT WILL FULFILL THE REQUIREMENTS OF SECTION 9007 OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT. JUST AS IMPORTANTLY AND IN THE SPIRIT OF THIS ACT, THE GROUP'S FINDINGS WILL SERVE AS A VEHICLE TO PROMOTE BETTER COOPERATION AMONG ITS MEMBERS AND OUR COMMUNITY PARTNERS WHILE CREATING A PLAN OF ACTION THAT WILL ALLOW US TO BETTER SERVE THE HEALTH CARE NEEDS OF THE REGION. A COMMUNITY PROFILE (A PUBLIC ANALYSIS OF THE FINDINGS) HAS BEEN UPLOADED TO THE PUBLIC WEBSITES OF THE COALITION MEMBERS IN THE FALL OF 2012 AND PUBLIC HEARINGS RELATING TO THIS PROFILE WERE COMPLETED IN DECEMBER 2012. THE FINAL COMMUNITY HEALTH NEEDS ASSESSMENT WAS MADE AVAILABLE IN JANUARY 2013 AND AN ACTION PLAN WAS DEVELOPED IN THE EARLY SPRING OF 2013. ALL DOCUMENTS WERE ACCEPTED AND APPROVED BY THE SACRED HEART HOSPITAL BOARD OF DIRECTORS IN MAY 2013. SCHEDULE H, PART VI; QUESTION 3 ON EACH OF THE BILLING STATEMENTS IT STATES: "SACRED HEART HOSPITAL PROVIDES FREE CARE TO PERSONS WHO QUALIFY. IF YOU CANNOT AFFORD THE COST OF YOUR CARE, YOU ARE ENCOURAGED TO APPLY FOR FREE CARE BY CALLING 610-776-4566". IF THE PATIENT CALLS IN, THE HOSPITAL WOULD HELP SCREEN THEM FOR MEDICAL ASSISTANCE (MA) ELIGIBILITY AND REFER TO ADREIMA, ADVANCED REIMBURSEMENT MANAGEMENT TO DO AN MA APPLICATION IF APPROPRIATE. IF THE PATIENT DOES NOT QUALIFY FOR MA, THE HOSPITAL WOULD REQUEST THE NECESSARY DOCUMENTATION TO DETERMINE ELIGIBILITY FOR CHARITY. FOR THE PATIENTS THAT DO NOT QUALIFY FOR MA OR CHARITY, THE HOSPITAL OFFERS A 75% SELF PAY DISCOUNT OR A PAYMENT PLAN. IN ADDITION TO THE STATEMENTS THIS INFORMATION IS PROVIDED IN ADMISSION PACKETS, AT REGISTRATION, IN THE EMERGENCY FACILITY, ON ALL BILLS AND ON THE HOSPITAL'S WEB SITE. SCHEDULE H, PART VI; QUESTION 4 SACRED HEART HOSPITAL IS LOCATED IN THE LOWEST PER CAPITA INCOME ZIP CODE IN ALLENTOWN, PA. OVER 57% OF THE POPULATION OF ALLENTOWN IS MINORITY, IN THE SCHOOLS IT IS MORE LIKE 87% MINORITY. ALLENTOWN SCHOOL DISTRICT HAS 87% OF ITS STUDENTS RECEIVING FREE OR REDUCED LUNCH, AN INDICATOR OF POVERTY. MANY CHILDREN IN ALLENTOWN ARE INSURED BY PA-CHIP OR HAVE NO INSURANCE BECAUSE THEY MAY BE ILLEGALLY IN THE UNITED STATES WITH THEIR FAMILIES. A TOTAL OF 79% OF INPATIENTS HAVE EITHER GOVERNMENT PAID INSURANCE (MEDICARE/MEDICAID, MA MANAGED CARE) OR ARE SELF-PAY; OF OUTPATIENT CARE, 67% IS PAID BY GOVERNMENT INSURANCE OR SELF-PAY. SCHEDULE H, PART VI; QUESTION 5 THE EXAMPLES LISTED IN NEEDS ASSESSMENT HELP BUILD OUR COMMUNITY BY IMPROVING THE HEALTH STATUS OF CHILDREN, IMPROVING IMMUNIZATION RATES, PROVIDE CARE FOR CHRONIC DISEASE MANAGEMENT (ASTHMA, DIABETES, OBESITY). PARISH NURSING PROVIDES NEEDED ACCESS TO CARE FOR THE MOST INDIGENT OF ALLENTOWN, INCLUDING THE HOMELESS AND UNDOCUMENTED INDIVIDUALS. SCHEDULE H, PART VI; QUESTION 6 OUTLINED BELOW IS A SUMMARY OF THE ENTITIES WHICH COMPRISE SACRED HEART HEALTHCARE SYSTEM: NOT FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES: SACRED HEART HEALTHCARE SYSTEM SACRED HEART HEALTHCARE SYSTEM IS THE TAX-EXEMPT PARENT OF SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"). THIS INTEGRATED HEALTHCARE DELIVERY SYSTEM CONSISTS OF A GROUP OF AFFILIATED HEALTHCARE ORGANIZATIONS. THIS ORGANIZATION IS THE SOLE MEMBER OR STOCKHOLDER OF EACH AFFILIATED ENTITY. THE SYSTEM'S IS AN INTEGRATED HEALTHCARE SYSTEM OF PROVIDERS THROUGHOUT THE STATE OF PENNSYLVANIA. SACRED HEART HEALTHCARE SYSTEM IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). AS THE PARENT ORGANIZATION, SACRED HEART HEALTHCARE SYSTEM STRIVES TO CONTINUALLY DEVELOP AND OPERATE A HEALTHCARE NETWORK WHICH PROVIDES SUBSTANTIAL COMMUNITY BENEFIT THROUGH THE PROVISION OF A COMPREHENSIVE SPECTRUM OF HEALTHCARE SERVICES TO THE RESIDENTS OF PENNSYLVANIA AND SURROUNDING COMMUNITIES. SACRED HEART HEALTHCARE SYSTEM ENSURES THAT THE SYSTEM PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. NO INDIVIDUALS ARE DENIED NECESSARY MEDICAL CARE, TREATMENT OR SERVICES. SACRED HEART HEALTHCARE SYSTEM INCLUDES SACRED HEART HOSPITAL. THE HOSPITAL OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1. PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2. OPERATES AN ACTIVE EMERGENCY ROOM FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3. MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; 4. CONTROL RESTS WITH ITS BOARD OF DIRECTORS AND THE BOARD OF DIRECTORS OF SACRED HEART HEALTHCARE SYSTEM. BOTH BOARDS ARE COMPRISED OF A MAJORITY OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY; AND 5. SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. SACRED HEART HOSPITAL SACRED HEART HOSPITAL IS A 215-BED NON-PROFIT CATHOLIC MEDICAL CENTER HOSPITAL LOCATED IN ALLENTOWN, PENNSYLVANIA. SACRED HEART HOSPITAL IS RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS AN INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION. PURSUANT TO ITS CHARITABLE PURPOSES, THE ORGANIZATION PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. MOREOVER, SACRED HEART HOSPITAL OPERATES CONSISTENTLY WITH THE CRITERIA OUTLINED IN IRS REVENUE RULING 69-545. SACRED HEART FOUNDATION SACRED HEART FOUNDATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(3) AND AS A NON-PRIVATE FOUNDATION PURSUANT TO INTERNAL REVENUE CODE 509(A)(3). THROUGH MANAGEMENT SERVICES THE ORGANIZATION SUPPORTS THE CHARITABLE PURPOSES, PROGRAMS AND SERVICES OF SACRED HEART HOSPITAL; A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY. SH REALTY CORPORATION SH REALTY CORPORATION IS AN ORGANIZATION RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT PURSUANT TO INTERNAL REVENUE CODE 501(C)(2). THE ORGANIZATION SUPPORTS SACRED HEART HOSPITAL, A RELATED INTERNAL REVENUE CODE 501(C)(3) TAX-EXEMPT ORGANIZATION, THAT PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN, RELIGION OR ABILITY TO PAY, AND IS PRIMARILY RESPONSIBLE FOR THE MANAGEMENT AND OPERATION OF RENTAL SPACE FOR VARIOUS AFFILIATES OF THE SACRED HEART HEALTHCARE SYSTEM. FOR-PROFIT SACRED HEART HEALTHCARE SYSTEM ENTITIES: SACRED HEART ANCILLARY SERVICES, INC. SACRED HEART ANCILLARY SERVICES, INC. IS A FOR-PROFIT ENTITY WHOSE SOLE SHAREHOLDER IS SACRED HEART HEALTHCARE SYSTEM. THE ORGANIZATION IS LOCATED IN ALLENTOWN, LEHIGH COUNTY, PENNSYLVANIA. THE ORGANIZATION PROVIDES HEALTHCARE SERVICES TO INDIVIDUALS. SCHEDULE H, PART VI; QUESTION 7 NOT APPLICABLE. THE ENTITY AND RELATED PROVIDER ORGANIZATIONS ARE LOCATED IN PENNSYLVANIA. NO COMMUNITY BENEFIT REPORT IS FILED WITH THE COMMONWEALTH OF PENNSYLVANIA. true AMERICAN HEART ASSOCIATION 968 POSTAL ROAD SUITE 110 ALLENTOWN PA 18109 135613797 501(C)(3) 5985 GENERAL SUPPORT 1 0 SCHEDULE I, PART I; QUESTION 2 GRANTS ARE MONITORED BY THE ORGANIZATION'S FINANCE PERSONNEL THROUGH THE UTILIZATION OF COST CENTERS AND OTHER INFORMATION; INCLUDING WRITTEN DOCUMENTATION AND RECEIPTS. SCHEDULE I, PART II PLEASE NOTE THAT ALTHOUGH GRANTS AND OTHER ASSISTANCE TO GOVERNMENT AND ORGANIZATIONS IN THE UNITED STATES PER PART IX, LINE 1 TOTALS $25,302, THERE WAS ONLY ONE GRANT THAT EXCEED $5,000 INDIVIDUALLY. THEREFORE, ONLY ONE RECIPIENT WAS SHOWN ON SCHEDULE I, PART II. X X X false true false false false false false true false JOHN L NESPOLI DIRECTOR - PRESIDENT/CEO 0 411403 0 56777 0 9464 0 105100 0 16283 0 599027 0 0 STEPHEN A LANSHE ESQ SECRETARY - VP GENERAL COUNSEL 0 204015 0 27038 0 414 0 4158 0 21938 0 257563 0 0 ANGIE LONG VP NURSING 0 168216 0 21852 0 270 0 3453 0 22488 0 216279 0 0 JOHN HRUBENAK VP BUSINESS DEVELOPMENT 0 136172 0 20846 0 414 0 2757 0 19988 0 180177 0 0 RICHARD T MARTIN MD PHYSICIAN 206996 0 0 0 396 0 4221 0 20343 0 231956 0 0 0 MIGUEL RUELAS SALGADO MD PHYSICIAN 172755 0 0 0 54 0 3492 0 18103 0 194404 0 0 0 DANIEL COLLER MD PHYSICIAN 172016 0 0 0 762 0 3475 0 16283 0 192536 0 0 0 ELENA KHROMENKO MD PHYSICIAN 158252 0 0 0 48 0 3100 0 17843 0 179243 0 0 0 DALYA DELMAR GREENBERG MD PHYSICIAN 155943 0 0 0 54 0 3106 0 7918 0 167021 0 0 0 PART VII AND SCHEDULE J TAXABLE COMPENSATION REPORTED HEREIN IS DERIVED FROM 2013 FORMS W-2. SCHEDULE J, PART I; QUESTION 4B THE DEFERRED COMPENSATION AMOUNT IN COLUMN C FOR THE FOLLOWING INDIVIDUAL INCLUDES UNVESTED BENEFITS IN AN INTERNAL REVENUE CODE SECTION 457(F) PLAN (NON-QUALIFIED DEFERRED COMPENSATION PLAN) WHICH IS SUBJECT TO A SUBSTANTIAL RISK OF COMPLETE FORFEITURE. ACCORDINGLY, THE INDIVIDUAL MAY NEVER ACTUALLY RECEIVE THIS UNVESTED BENEFIT AMOUNT. THE AMOUNT OUTLINED HEREIN WAS NOT INCLUDED IN THE INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES: JOHN L. NESPOLI, $100,000. SCHEDULE J, PART I; QUESTION 7 CERTAIN INDIVIDUALS INCLUDED IN SCHEDULE J, PART II RECEIVED A BONUS DURING CALENDAR YEAR 2013 WHICH AMOUNTS WERE INCLUDED IN COLUMN (II) HEREIN AND IN EACH INDIVIDUAL'S 2013 FORM W-2, BOX 5, AS TAXABLE MEDICARE WAGES. PLEASE REFER TO THIS SECTION OF THE FORM 990, SCHEDULE J FOR THIS INFORMATION BY PERSON BY AMOUNT. A LEHIGH COUNTY GENERAL PURPOSE AUTH HOSP REV BONDS 911886539 2013-04-04 9804309 TO REFUND SERIES 2005 BONDS false false false A 552972 0 9804309 0 0 2577173 196086 0 0 0 7031050 0 2013 true true true true A false false true true false 0.00000 0.00000 0.00000 false false false true A false true false false 0 false 0 true true A true SCHEDULE K, PART IV; QUESTION 6 Defeasance escrow is invested beyond the temporary period but at or below applicable yield restriction. CENTONIA AMBULANCE CORP OFFICER/TRUSTEE - ZENTZ 172950 AMBULANCE SERVICES false SCHEDULE L, PART IV ROBERT ZENTZ IS THE CHAIRMAN OF THE ORGANIZATION. THE ORGANIZATION UTILIZED THE SERVICES OF HIS COMPANY, CENTONIA AMBULANCE CORP., DURING THE FISCAL YEAR ENDED JUNE 30, 2014. TOTAL FEES PAID TO CENTONIA AMBULANCE CORP. DURING THE FISCAL YEAR ENDED JUNE 30, 2014 WERE $172,950. SERVICES WERE RENDERED AT FAIR MARKET VALUE RATES PURSUANT TO ARM'S LENGTH NEGOTIATIONS. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS SACRED HEART HEALTHCARE SYSTEM IS A NOT-FOR-PROFIT ENTITY THAT OPERATES AS THE PARENT ORGANIZATION OF SACRED HEART HOSPITAL, SACRED HEART ANCILLARY SERVICES, INC., SACRED HEART FOUNDATION AND SH REALTY CORPORATION. SACRED HEART HOSPITAL, A NOT-FOR-PROFIT ENTITY, PROVIDES ACUTE CARE SERVICES TO THE LOCAL COMMUNITY. SACRED HEART ANCILLARY SERVICES, INC. IS A PENNSYLVANIA FOR-PROFIT ENTITY PROVIDING PHARMACY AND INFUSION SERVICES TO THE GENERAL PUBLIC. SACRED HEART FOUNDATION IS A NOT-FOR PROFIT ENTITY PROVIDING MANAGEMENT SERVICES. SH REALTY CORPORATION, A NOT-FOR-PROFIT ENTITY, HOLDS REAL ESTATE. MISSION: SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HEALTHCARE AND WELLNESS, FROM CONCEPTION TO NATURAL DEATH, THROUGH QUALITY SERVICES AND PROGRAMS BASED ON THE CATHOLIC ETHICAL AND RELIGIOUS DIRECTIVES. OUR HEALTHCARE NETWORK CONTINUES ITS LEADERSHIP IN THE COMMUNITY THROUGH COLLABORATION AND AFFILIATION WITH RECOGNIZED REGIONAL AND NATIONAL EXPERTS. WE ASSURE THAT THE SYSTEM WILL REMAIN VIABLE BY PROVIDING COST EFFECTIVE AND VALUE-DRIVEN SERVICES. A PROGRAM OF CONTINUOUS PERFORMANCE IMPROVEMENT ENABLES US TO RESPOND TO THE NEEDS OF THE COMMUNITY WHILE GIVING MEANINGFUL EMPLOYMENT, EDUCATION AND TRAINING TO OUR EMPLOYEES. IN FULFILLING THIS MISSION, SACRED HEART HEALTHCARE SYSTEM RECOGNIZES THE DIGNITY AND ETERNAL DESTINY OF EACH INDIVIDUAL WITH SPECIAL CONCERN FOR THE SICK AND THE POOR. SACRED HEART HOSPITAL IS LOCATED IN AN AREA WITH A HIGH CONCENTRATION OF LOW INCOME HOUSEHOLDS. AS A RESULT, THE HOSPITAL PROVIDES CARE TO A LARGE NUMBER OF INDIGENT PATIENTS. IN THE FISCAL YEAR ENDED JUNE 30, 2014 PATIENTS WITH MEDICAID, MA MANAGED CARE OR NO INSURANCE AT ALL MADE UP 28.5% OF SACRED HEART'S INPATIENT VOLUME AND 31.1% OF ITS OUTPATIENT VOLUME. THE HOSPITAL PROVIDES CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA BY PROVIDING SERVICES AT A REDUCED RATE OR AT NO CHARGE AT ALL. IN FISCAL YEAR 2014 THE HOSPITAL WROTE OFF $2.2 MILLION IN CHARGES PURSUANT TO ITS CHARITY CARE POLICY. ALSO, IN RECOGNIZING ITS MISSION TO THE COMMUNITY, THE HOSPITAL PROVIDES CARE TO PERSONS COVERED BY MEDICAL ASSISTANCE WHICH REIMBURSES THE HOSPITAL BELOW INCURRED COSTS. SACRED HEART HOSPITAL ("SHH") IS A GENERAL MEDICAL, SURGICAL AND TEACHING HOSPITAL. SHH IS RECOGNIZED BY THE IRS AS AN INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION. SHH IS AN AFFILIATE OF THE SACRED HEART HEALTHCARE SYSTEM; A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. PURSUANT TO ITS CHARITABLE PURPOSES, SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS IN A NON-DISCRIMINATORY MANNER REGARDLESS OF RACE, COLOR, CREED, SEX, NATIONAL ORIGIN OR ABILITY TO PAY. MOREOVER, SHH OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 69-545: 1) SHH PROVIDES MEDICALLY NECESSARY HEALTHCARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF ABILITY TO PAY, INCLUDING CHARITY CARE, SELF-PAY, MEDICARE AND MEDICAID PATIENTS; 2) SHH OPERATES AN ACTIVE EMERGENCY DEPARTMENT FOR ALL PERSONS; WHICH IS OPEN 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS PER YEAR; 3) SHH MAINTAINS AN OPEN MEDICAL STAFF, WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS; AND 4) CONTROL OF SHH RESTS WITH ITS BOARD OF DIRECTORS; WHICH IS COMPRISED OF INDEPENDENT CIVIC LEADERS AND OTHER PROMINENT MEMBERS OF THE COMMUNITY. 5) SURPLUS FUNDS ARE USED TO IMPROVE THE QUALITY OF PATIENT CARE, EXPAND AND RENOVATE FACILITIES AND ADVANCE MEDICAL CARE; PROGRAMS AND ACTIVITIES. THE MISSIONARY SISTERS OF THE MOST SACRED HEART RELIGIOUS ORDER IN GERMANY ARRIVED IN ALLENTOWN ON JUNE 15, 1912 TO HELP CARE FOR THE SICK AND INJURED OF THE SACRED HEART PARISH DURING A WIDESPREAD DIPHTHERIA OUTBREAK. AS DIPHTHERIA RAGED, THE SISTERS GAVE DISPENSARY SERVICES AS WELL AS VISITING NURSE SERVICES. THIS WAS THE ACTUAL "START" OF SACRED HEART HOSPITAL. IN 1915, THE ACTUAL FOUNDING OF SACRED HEART HOSPITAL AS A COMMUNITY INSTITUTION WAS FORMALIZED AND DEDICATED. TWO YEARS LATER, SACRED HEART HOSPITAL WAS OFFICIALLY INCORPORATED UNDER PENNSYLVANIA LAW. IN 1920, SACRED HEART HOSPITAL RECEIVED APPROVAL TO TRAIN INTERNS AND IN 1922 WAS ACCREDITED BY THE AMERICAN COLLEGE OF SURGEONS. SINCE THEN, SACRED HEART HOSPITAL HAS EXPANDED ITS CAMPUS AND ITS REACH ACROSS OUR COMMUNITY. OUR CAMPUS INCLUDES A 215-BED CATHOLIC MEDICAL CENTER WHICH OFFERS A WIDE RANGE OF ADVANCED MEDICAL, SURGICAL AND OUTPATIENT HOSPITAL SERVICES. SACRED HEART HEALTHCARE SYSTEM AND ITS AFFILIATES ("SACRED HEART") PROVIDE A VAST RANGE OF SPECIALTY SERVICES AT OUR 421 CHEW STREET LOCATION IN ALLENTOWN, PA, INCLUDING BARIATRIC SERVICES, BEHAVIORAL HEALTH, CANCER CARE, CARDIAC SERVICES, EMERGENCY SERVICES, ENDOVASCULAR SERVICES, IMAGING SERVICES, LABORATORY SERVICES, LUNG AND RESPIRATORY SERVICES, NEURODIAGNOSTIC TESTING, NEUROLOGY, ORTHOPEDICS, PAIN MANAGEMENT, SENIOR SERVICES, SLEEP DISORDERS, STROKE CARE, SURGICAL SERVICES, TRANSITIONAL CARE, WOMEN'S HEALTH AND WOUND CARE SERVICES. IN ADDITION TO HOSPITAL SERVICES, SACRED HEART PROVIDES AN EXTENSIVE LIST OF MEDICAL SERVICES OUTSIDE OF THE HOSPITAL TO BETTER MEET THE NEEDS OF OUR PATIENTS AND COMMUNITY POPULATIONS. A NETWORK OF PHYSICIAN PRACTICES THROUGHOUT LEHIGH AND NORTHAMPTON COUNTIES PROVIDES COMPLETE PRIMARY MEDICAL CARE TO THE REGION'S RESIDENTS. IN ADDITION TO THE PHYSICIAN PRACTICES, SACRED HEART PROVIDES ACCESS TO OUTPATIENT SERVICES INCLUDING LABORATORY, IMAGING, RETAIL PHARMACY, INFUSION, RESPIRATORY AND OUTPATIENT REHABILITATION. SACRED HEART OFFERS OUTREACH TO COMMUNITY MEMBERS IN NEED OF CARE THROUGH ITS HOME HEALTH PROGRAM REACHING PATIENTS IN THEIR HOME ENVIRONMENT AFTER HOSPITALIZATION OR MEDICAL CARE. SACRED HEART'S HOSPICE PROGRAM SUPPORTS MANY FAMILIES WITH A GOAL OF ENABLING TERMINALLY ILL PATIENTS, YOUNG AND OLD, TO LIVE LIFE TO THE FULLEST IN THEIR HOMES AMONG FAMILY AND FRIENDS. THROUGH PARISH NURSING, SACRED HEART IMPACTS FIVE CONGREGATIONS OF INDIVIDUALS, PROVIDING HOLISTIC NURSING CARE TO FAITH COMMUNITY MEMBERS ACROSS THE LIFE SPAN AND FACILITATES WELLNESS AND THE PROMOTION OF A HEALING COMMUNITY. SACRED HEART ALSO FUNCTIONS AS AN EDUCATOR FOR PARISH NURSES THROUGHOUT THE LEHIGH VALLEY THROUGH THE PARISH NURSING COALITION OF THE GREATER LEHIGH VALLEY. TO HELP ENSURE CHILDREN IN OUR COMMUNITY RECEIVE HIGH QUALITY HEALTHCARE, SACRED HEART PROVIDES CARE THROUGH FIVE SCHOOL-BASED HEALTH CENTERS. OUR GOAL FOR THE CENTERS IS TO PROVIDE ACCESSIBLE AND AFFORDABLE CHILDREN'S HEALTHCARE AND TO OFFER HEALTH EDUCATION TO THE CHILDREN AND THEIR FAMILIES. THESE CENTERS ARE HOUSED IN ELEMENTARY SCHOOLS IN THE ALLENTOWN SCHOOL DISTRICT. IN ADDITION TO SCHOOL-BASED HEALTH CENTERS, SACRED HEART OFFERS A PEDIATRIC PRACTICE TO MEET THE NEEDS OF OUR YOUNGEST CITIZENS. SACRED HEART OFFERS A DENTAL CLINIC TO MEET INCREASED NEED FOR ADULTS AND CHILDREN IN OUR COMMUNITY AS WELL AS AN OB/GYN CLINIC TO MEET THE NEEDS OF WOMEN IN OUR COMMUNITY. THROUGHOUT SACRED HEART HEALTHCARE SYSTEM 259,997 PATIENTS WERE SERVICED FROM JULY 1, 2013 TO JUNE 30, 2014. SACRED HEART HEALTHCARE SYSTEM IS COMMITTED TO PROVIDING HIGH QUALITY HEALTHCARE TO ALL PEOPLE. WE HAVE RECEIVED RECOGNITION IN MANY DIFFERENT AREAS FOR OUR EXCELLENCE IN HEALTHCARE. A SAMPLE OF THESE AWARDS AND RECOGNITIONS ARE BELOW. SACRED HEART HEALTHCARE SYSTEM IS PROUD TO OFFER RESIDENCIES AND EDUCATIONAL PROGRAMS TO PHYSICIANS AND OTHER HEALTHCARE PROFESSIONALS. WE OFFER THREE RESIDENCY PROGRAMS INCLUDING DENTAL MEDICINE, FAMILY MEDICINE, AND GERIATRIC MEDICINE RESIDENCY PROGRAMS. OUR FAMILY MEDICINE RESIDENCY PROGRAM RECENTLY RECEIVED A 4-YEAR ACCREDITATION BY THE ACCREDITATION COUNCIL FOR GRADUATE MEDICAL EDUCATION (ACGME). MOSS REHAB- ACUTE REHABILITATION UNIT, HOLDS A THREE-YEAR ACCREDITATION FOR ITS STROKE SPECIALTY INPATIENT REHABILITATION PROGRAM. MOSS REHAB'S STROKE CENTER IS ONE OF SIX EINSTEIN PROGRAMS RECOGNIZED AS CENTERS OF EXCELLENCE. CERTIFIED FOR ACUTE AND REHABILITATION CARE, MOSS REHAB HAS SPECIALTY PROGRAMS IN GAIT AND MOTION ANALYSIS, ROBOTIC-ASSISTED PHYSICAL THERAPY, AND APHASIA. SACRED HEART HOSPITAL HAS BEEN GRANTED PRIMARY STROKE CENTER CERTIFICATION BY THE JOINT COMMISSION. THE JOINT COMMISSION'S CERTIFICATE OF DISTINCTION FOR PRIMARY STROKE CENTERS RECOGNIZES CENTERS THAT MAKE EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE CARE. ACHIEVEMENT OF CERTIFICATION SIGNALS THAT THE SERVICES SACRED HEART HOSPITAL PROVIDES HAVE THE CRITICAL ELEMENTS TO ACHIEVE LONG-TERM SUCCESS IN IMPROVING OUTCOMES. CORE FORM, PART III, STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS TRANSITIONAL CARE FACILITY (TCF) RECEIVED A "FIVE STAR" RATING BY THE U.S. CENTERS FOR MEDICARE AND MEDICAID SERVICES. TCF WAS ONE OF ONLY TWO FACILITIES IN LEHIGH AND NORTHAMPTON COUNTIES TO RECEIVE THIS HONOR. THE COMMISSION ON CANCER (COC) OF THE AMERICAN COLLEGE OF SURGEONS (ACOS) GRANTED THREE-YEAR APPROVAL WITH COMMENDATION TO THE CENTER FOR CANCER CARE AT SACRED HEART HOSPITAL. THE COC RECOGNIZED THE ONCOLOGY PROGRAM AT SACRED HEART HOSPITAL AS OFFERING HIGH-QUALITY CANCER CARE. ONLY ONE IN FOUR CANCER PROGRAMS AT HOSPITALS ACROSS THE U.S. RECEIVES THIS SPECIAL APPROVAL. IT RECOGNIZES THE QUALITY OF SACRED HEART'S COMPREHENSIVE PATIENT CARE AND OUR COMMITMENT TO PROVIDING PATIENTS WITH ACCESS TO ALL OF THE VARIOUS MEDICAL SPECIALISTS INVOLVED IN DIAGNOSING AND TREATING CANCER. ALL IMAGING MODALITIES AT SACRED HEART HOSPITAL AND SACRED HEART IMAGING NORTHAMPTON HAVE BEEN AWARDED A THREE-YEAR TERM OF ACCREDITATION IN IMAGING BY THE AMERICAN COLLEGE OF RADIOLOGY (ACR). SACRED HEART PHARMACY WAS GRANTED ACCREDITATION FOR HOME INFUSION THERAPY SERVICES FROM THE COMMUNITY HEALTH ACCREDITATION PROGRAM (CHAP). CHAP IS THE LEADER IN COMMUNITY-BASED HEALTHCARE ACCREDITATION SERVICES IN THE U.S. AND IS AN ALTERNATIVE TO THE JOINT COMMISSION. CHAP IS AN INDEPENDENT AND NON-PROFIT ACCREDITING BODY. CHAP'S GOAL IS FOR HOME CARE TO NOT ONLY PROSPER BUT GAIN STRENGTH IN THE OVERALL HEALTHCARE INDUSTRY. THE VASCULAR LABORATORY HAS BEEN ACCREDITED BY THE INTERSOCIETAL COMMISSION FOR THE ACCREDITATION OF VASCULAR LABS (ICAVL) SINCE 1996 AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION. SACRED HEART HOSPITAL RECEIVED THE GOLD PLUS GET WITH THE GUIDELINES-STROKE ACHIEVEMENT AWARD FOR STROKE RECOGNITION. GET WITH THE GUIDELINES-STROKE HELPS SACRED HEART HOSPITAL'S STAFF DEVELOP AND IMPLEMENT ACUTE AND SECONDARY PREVENTION GUIDELINE PROCESSES TO IMPROVE PATIENT CARE AND OUTCOMES. THE PROGRAM PROVIDES HOSPITALS WITH A WEB BASED PATIENT MANAGEMENT TOOL, BEST PRACTICE DISCHARGE PROTOCOLS AND STANDING ORDERS, ALONG WITH A ROBUST REGISTRY AND REAL-TIME BENCHMARKING CAPABILITIES TO TRACK PERFORMANCE. THE CARDIOVASCULAR REHABILITATION PROGRAM IS ACCREDITED BY THE AMERICAN ASSOCIATION OF CARDIOVASCULAR AND PULMONARY REHABILITATION (AACVPR) AND WAS GRANTED A THREE-YEAR RE-ACCREDITATION. CORE FORM, PART III; QUESTION 3 EFFECTIVE MAY 21, 2014, SACRED HEART HOSPITAL SOLD THE OPERATING ASSETS OF ITS HOME HEALTH AND HOSPICE OPERATIONS TO AN UNRELATED THIRD PARTY AND DISCONTINUED THE OPERATIONS OF THIS BUSINESS. SACRED HEART HOSPITAL ENTERED INTO AN ASSET PURCHASED AGREEMENT WITH THE THIRD-PARTY PURCHASER ON JANUARY 21, 2014. CORE FORM, PART VI, SECTION A; QUESTION 3 THE ORGANIZATION DELEGATED CONTROL OVER MANAGEMENT DUTIES OF THE CHIEF FINANCIAL OFFICER POSITION TO AN INDEPENDENT FIRM; REGNER & ASSOCIATES, L.L.C. FOR THE FISCAL YEAR ENDED JUNE 30, 2014. AMOUNTS PAID FOR THESE SERVICES TOTALED $456,026 AND WERE RENDERED AT FAIR MARKET VALUE RATES PURSUANT TO ARM'S LENGTH NEGOTIATIONS. CORE FORM, PART VI, SECTION A; QUESTIONS 6 & 7 SACRED HEART HEALTHCARE SYSTEM IS THE SOLE MEMBER OF THIS ORGANIZATION. SACRED HEART HEALTHCARE SYSTEM HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS. CORE FORM, PART VI, SECTION B; QUESTION 11B THE ORGANIZATION IS AN AFFILIATE IN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. SACRED HEART HEALTHCARE SYSTEM IS THE PARENT ENTITY OF THE SYSTEM. THE ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY (ITS BOARD OF DIRECTORS) PRIOR TO THE FILING WITH THE IRS. IN ADDITION, THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE ALSO PERFORMED A DETAILED REVIEW OF THE FEDERAL FORM 990 PRIOR TO PROVIDING IT TO EACH VOTING MEMBER OF ITS BOARD OF DIRECTORS. SACRED HEART HEALTHCARE SYSTEM BOARD OF DIRECTORS HAS DELEGATED TO THE AUDIT COMMITTEE THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES OF THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL CPA FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S CONTROLLER AND VARIOUS OTHER INDIVIDUALS OF THE SYSTEM TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP, INCLUDING, BUT NOT LIMITED TO, THOSE INDIVIDUALS OUTLINED ABOVE, FOR THEIR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP AND OTHER INDIVIDUALS REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP AND VARIOUS OTHER INDIVIDUALS FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION OF THE FEDERAL FORM 990 TO THE MEMBERS OF THE SACRED HEART HEALTHCARE SYSTEM AUDIT COMMITTEE. FOLLOWING THE AUDIT COMMITTEE'S REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY PRIOR TO THE FILING WITH THE IRS. CORE FORM, PART VI, SECTION B; QUESTION 12 THE ORGANIZATION HAS ADOPTED A CONFLICT OF INTEREST POLICY WHICH SETS FORTH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND PROCESSES. ANNUALLY, ALL THOSE SERVING THE ORGANIZATION IN A FIDUCIARY CAPACITY, INCLUDING DIRECTORS, OFFICERS AND KEY EMPLOYEES RECEIVE A COPY OF THE POLICY AND ANNUAL DISCLOSURE STATEMENTS TO BE COMPLETED. IN ACCORDANCE WITH THE POLICY, THOSE DISCLOSURES ARE REVIEWED AND CONSIDERED BY THE ORGANIZATION'S PRESIDENT AND CEO AND, AS APPROPRIATE, THE BOARD OF DIRECTORS. CORE FORM, PART VI, SECTION B; QUESTION 15 ON AN ANNUAL BASIS THE HUMAN RESOURCES DEPARTMENT OF THE ORGANIZATION PROVIDES THE BOARD WITH COMPENSATION MARKET DATA TO REVIEW AND CONSIDER WITH RESPECT TO ALL KEY EMPLOYEES AND OFFICERS OF THE ORGANIZATION. THE BOARD REVIEWS THE MARKET DATA, APPROVES ANY SALARY ADJUSTMENTS FOR THE EXECUTIVE POPULATION, CONSIDERS BOTH REASONABLENESS AND EFFECTIVENESS OF ALL REMUNERATIVE PROGRAMS AND ESTABLISHES THE DETAILED PERFORMANCE EXPECTATIONS WHICH ARE INCORPORATED INTO THE ORGANIZATION'S INCENTIVE PLANS. ALL OF THESE DISCUSSIONS ARE DOCUMENTED THROUGH THE PROVISION OF MEETING MINUTES. CORE FORM, PART VI, SECTION C; QUESTION 19 THE ORGANIZATION HAS ISSUED TAX-EXEMPT BONDS TO FINANCE VARIOUS CAPITAL IMPROVEMENT PROJECTS, RENOVATIONS AND EQUIPMENT. IN CONJUNCTION WITH THE ISSUANCE OF THESE TAX-EXEMPT BONDS, THE ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED WITH THE TAX-EXEMPT BOND PROSPECTUS WHICH WAS MADE AVAILABLE TO THE GENERAL PUBLIC FOR REVIEW. THE ORGANIZATION'S FILED CERTIFICATE OF INCORPORATION AND ANY AMENDMENTS CAN BE OBTAINED AND REVIEWED THROUGH THE COMMONWEALTH OF PENNSYLVANIA. CORE FORM, PART VII AND SCHEDULE J PART VII AND SCHEDULE J REFLECT CERTAIN BOARD MEMBERS AND OFFICERS RECEIVING COMPENSATION AND BENEFITS FROM A RELATED ORGANIZATION. PLEASE NOTE THIS REMUNERATION WAS FOR SERVICES RENDERED AS FULL-TIME EMPLOYEES OF THIS ORGANIZATION AND RELATED ORGANIZATIONS AND NOT FOR SERVICES RENDERED AS A VOTING MEMBER OR OFFICER OF THIS ORGANIZATION'S BOARD OF DIRECTORS. CORE FORM, PART VII, SECTION A, COLUMN B THE ORGANIZATION IS AN AFFILIATE IN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"); A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM INCLUDES BOTH FOR-PROFIT AND NOT FOR-PROFIT ORGANIZATIONS. CERTAIN BOARD OF DIRECTOR MEMBERS, OFFICERS AND/OR DIRECTORS LISTED ON CORE FORM, PART VII AND SCHEDULE J OF THIS FORM 990 MAY HOLD SIMILAR POSITIONS WITH BOTH THIS ORGANIZATION AND OTHER AFFILIATES WITHIN THE SYSTEM. THE HOURS SHOWN ON THIS FORM 990 FOR BOARD MEMBERS WHO RECEIVE NO COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, REPRESENTS THE ESTIMATED HOURS DEVOTED PER WEEK FOR THIS ORGANIZATION. TO THE EXTENT THESE INDIVIDUALS SERVE AS A MEMBER OF THE BOARD OF DIRECTORS OF OTHER RELATED ORGANIZATIONS IN THE SYSTEM, THEIR RESPECTIVE HOURS PER WEEK PER ORGANIZATION ARE APPROXIMATELY ONE HOUR. THE HOURS REFLECTED ON PART VII OF THIS FORM 990, FOR BOARD MEMBERS WHO RECEIVE COMPENSATION FOR SERVICES RENDERED IN A NON-BOARD CAPACITY, PAID OFFICERS AND KEY EMPLOYEES, REFLECT TOTAL HOURS WORKED PER WEEK ON BEHALF OF THE SYSTEM; NOT SOLELY THIS ORGANIZATION. CORE FORM, PART XI; QUESTION 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES INCLUDE: - NET ASSETS RELEASED FROM RESTRICTION FOR CAPITAL PURPOSES - $468,411; - TRANSFERS TO AFFILIATE, NET - ($5,816,572); - INCOME FROM DISCONTINUED OPERATIONS - $2,520,049; - TEMPORARILY RESTRICTED CONTRIBUTIONS AND GRANT INCOME, $1,288,736; - NET ASSETS RELEASED FROM TEMPORARY RESTRICTION FOR CAPITAL PURPOSES - ($468,411); - NET ASSETS RELEASED FROM TEMPORARY RESTRICTION FOR OPERATING PURPOSES; ($467,798); AND - CHANGE IN FAIR VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUSTS; $58,479. CORE FORM, PART XII; QUESTION 2 THE ORGANIZATION IS AN AFFILIATE WITHIN THE SACRED HEART HEALTHCARE SYSTEM ("SYSTEM"), A TAX-EXEMPT INTEGRATED HEALTHCARE DELIVERY SYSTEM. THE SYSTEM'S PARENT ENTITY IS SACRED HEART HEALTHCARE SYSTEM. AN INDEPENDENT CPA FIRM AUDITED THE CONSOLIDATED FINANCIAL STATEMENTS OF THE TAXPAYER AND ALL AFFILIATES FOR THE YEARS ENDED JUNE 30, 2014 AND JUNE 30, 2013; RESPECTIVELY AND ISSUED A CONSOLIDATED FINANCIAL STATEMENT WITH CONSOLIDATING SCHEDULES BY ENTITY. AN UNQUALIFIED OPINION WAS ISSUED EACH YEAR BY THE INDEPENDENT CPA FIRM. SACRED HEART HEALTHCARE SYSTEM'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE SYSTEM'S CONSOLIDATED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT AUDITOR. IN ADDITION, AN INDEPENDENT CPA FIRM AUDITED THE FINANCIAL STATEMENTS OF SACRED HEART HOSPITAL FOR THE YEARS ENDED JUNE 30, 2014 AND JUNE 30, 2013; RESPECTIVELY. THE INDEPENDENT CPA FIRM ISSUED AN UNQUALIFIED OPINION WITH RESPECT TO THE AUDITED FINANCIAL STATEMENTS. FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES TOTAL FEES:7353316 FORM 990 PART IX LINE 11G DESCRIPTION:DIETARY ADMIN FEES TOTAL FEES:1617223 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACTED PHARMACY FEES TOTAL FEES:493907 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:316710 FORM 990 PART IX LINE 11G DESCRIPTION:AGENCY FEES TOTAL FEES:136854 SACRED HEART HEALTHCARE SYSTEM 421 W CHEW STREET ALLENTOWN PA 18102 232328297 HEALTH SVCS. PA 501(C)(3) 509(A)(3) NA false SACRED HEART FOUNDATION 421 W CHEW STREET ALLENTOWN PA 18102 232328300 MGMT. SVCS. PA 501(C)(3) 509(A)(1) SHHS false SH REALTY CORPORATION 421 W CHEW STREET ALLENTOWN PA 18102 232384986 TITLE HLDNG. PA 501(C)(2) N/A SHHS false SACRED HEART ANCILLARY SERVICES INC 421 W CHEW STREET ALLENTOWN PA 18102 232384987 HEALTH SVCS. PA NA C CORP. false false false false false true false false false false false false false true false false false false true false SACRED HEART HEALTHCARE SYSTEM E 160555 COST SACRED HEART HEALTHCARE SYSTEM M 4039093 COST SACRED HEART HEALTHCARE SYSTEM R 5591077 COST SCHEDULE R, PART V SACRED HEART HEALTHCARE SYSTEM ROUTINELY PAYS EXPENSES FOR VARIOUS AFFILIATES WITHIN THE SACRED HEART HEALTHCARE SYSTEM IN THE ORDINARY COURSE OF BUSINESS, INCLUDING THIS ORGANIZATION. THESE RELATED PARTY TRANSACTIONS ARE RECORDED ON THE REVENUE/EXPENSE AND BALANCE SHEET STATEMENTS OF THIS ORGANIZATION AND ITS AFFILIATES. THESE ENTITIES WORK TOGETHER TO DELIVER HIGH QUALITY HEALTHCARE AND WELLNESS SERVICES TO THE COMMUNITIES IN WHICH THEY ARE SITUATED.