2015-05-14T16:14:46-05:00 2014-06-30 ERNST & YOUNG US LLP 401 CONGRESS AVENUE SUITE 1800 AUSTIN TX 78701 990 2013-07-01 752743883 COVENANT MEDICAL GROUP % LOREE CHING COVE 8067259800 3420 22ND PLACE Suite LUBBOCK TX 794101314 LOREE CHING CFO 2015-05-14 RAYMOND LEE P00004272 2013 2016-02-25 16:41:14Z STEVE MCCAMY 3420 22ND PLACE LUBBOCK TX 794101314 111952418 false X WWW.COVMEDGROUP.ORG X 1997 TX SEE SCHEDULE O 15 0 905 0 0 0 0 105191339 111928422 27981 23996 0 0 105219320 111952418 0 0 0 0 100556299 108577139 0 0 0 28659902 26616527 129216201 135193666 -23996881 -23241248 32800670 43622613 107633189 141696380 -74832519 -98073767 X SEE SCHEDULE O false false 125951644 0 111928422 SEE SCHEDULE O 125951644 true false false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false true false false false false false false false false false true true false false false true 74 0 true 905 true false false false false false false false false false false X 15 0 false false false false true true true true true false false true true true true true true false true false X LOREE CHING 8067254639 3420 22ND PLACE LUBBOCK TX 79410 KATIE HENDLEY MD BOARD MEMBER 50.0 0.0 X 307294 0 20614 FREDERICK HENSAL MD BOARD MEMBER 50.0 0.0 X 486191 0 25935 PIYUSH MITTAL MD BOARD MEMBER 48.0 2.0 X 619577 0 15550 MICHAEL OWEN MD BOARD MEMBER 50.0 0.0 X 384802 0 25696 NILESH PATEL MD BOARD MEMBER 50.0 0.0 X 435009 0 32394 DONALD QUICK MD BOARD MEMBER 50.0 0.0 X 766187 0 31501 ANDREW ROBINSON BOARD MEMBER 50.0 0.0 X 823908 0 30701 CATHERINE RONAGHAN MD BOARD MEMBER 50.0 0.0 X 683588 0 31095 JONATHAN SKELTON MD BOARD MEMBER 50.0 0.0 X 391846 0 22762 IKECHUKWU UMEZURIKE MD BOARD MEMBER (PART YEAR) 48.0 2.0 X 613326 0 21637 JOHN ZIAS MD BOARD MEMBER 50.0 0.0 X 770154 0 30972 KERRY HENDERSHOT MD BOARD MEMBER/CHAIRPERSON 50.0 0.0 X X 474549 0 33208 BILL ATKINSON MD BOARD MEMBER/CHAIRMAN 50.0 0.0 X X 1058555 0 26126 PAUL WALTER MD BOARD MEMBER/CMO 48.0 2.0 X X 660067 0 31796 LAURA BAKER MD BOARD MEMBER (PART YEAR) 50.0 0.0 X 167666 0 9024 DAVID BLANN MD BOARD MEMBER 50.0 0.0 X 638486 0 21750 BID COOPER MD BOARD MEMBER (PART YEAR) 50.0 0.0 X 401114 0 25810 JEREMY DALTON MD BOARD MEMBER 50.0 0.0 X 379117 0 21742 STEVE MCCAMY PRESIDENT/CEO OF CMG 45.0 5.0 X 0 487183 11657 KRISTEN KOTHMANN VP/COO OF CMG 50.0 0.0 X 0 240665 36842 MARK STEWART VP OF FINANCE/TREASURER 50.0 0.0 X 167382 0 28725 CINDY ECHOLS SECRETARY 40.0 0.0 X 39281 0 0 JUAN KURDI MD PHYSICIAN 50.0 0.0 X 2028112 0 7512 JASON BRADLEY MD PHYSICIAN 50.0 0.0 X 1187538 0 28847 RICHARD RANNE MD PHYSICIAN 50.0 0.0 X 1078229 0 23052 WILLIAM SPRINGER PHYSICIAN 50.0 0.0 X 1018400 0 13883 ATUL JOSHI MD PHYSICIAN 50.0 0.0 X 946192 0 28656 16526570 727848 637487 198 false true false COMPHEALTH PO BOX 972651 DALLAS TX 753972651 MEDICAL SERVICES 639889 MONICA RELVAS MD 15942 ALSDELL RD MIDLOTHIAN VA 23112 MEDICAL SERVICES 506416 MARK GITTINGS DO 3571 FAR WEST BLVD PMB80 AUSTIN TX 78731 MEDICAL SERVICES 370500 JAMES WILLIAMS DO 1400 CARROLLTON AVE BALTIMORE MD 21204 MEDICAL SERVICES 315968 MEDIUS EMERGENCY MEDICINE LLC 22 ROULSTON RD WINDHAM NH 03087 MEDICAL SERVICES 305366 8 0 0 0 NET PATIENT SERVICES REVENUE 621110 80882671 80882671 0 0 SVCS TO EXEMPT AFFILIATES 561110 28467511 28467511 0 0 OTHER OPERATING REVENUE 900099 2578240 2578240 0 0 111928422 23996 23996 0 0 0 0 0 0 0 0 0 0 111952418 111928422 0 23996 0 0 0 0 0 0 0 0 7611809 7399429 212380 0 0 0 0 0 84464182 80828873 3635309 0 2497601 2244333 253268 0 9691375 8682662 1008713 0 4312172 3996601 315571 0 331869 81092 250777 0 2374 0 2374 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8542810 7950348 592462 0 16617 0 16617 0 1759943 1289261 470682 0 1656151 1653651 2500 0 0 0 0 0 6271722 5902763 368959 0 110122 74663 35459 0 0 0 0 0 16150 514 15636 0 22271 22271 0 0 0 0 0 260321 121924 138397 0 1751418 0 1751418 0 MEDICAL SUPPLIES 5362233 5362233 0 0 ALL OTHER EXPENSES 512526 363297 149229 0 135193666 125951644 9242022 0 0 47729 849521 1580117 4949563 0 0 8880432 10225924 100116 25630 0 0 622955 506592 0 0 45678 51316 14260260 12305777 931685 1954483 0 0 0 0 0 0 0 0 20591958 25059584 32800670 43622613 8584800 12034665 0 0 0 0 0 0 0 0 0 0 0 0 0 0 99048389 129661715 107633189 141696380 X -74832519 -98073767 0 0 0 0 -74832519 -98073767 32800670 43622613 -23241248 X false true X true false X 14260260 12305777 1954483 1954483 PHYSICIAN RETIREMENT 457(B) 21789748 PHYSICIAN RETIREMENT 457(F) 1549282 PHYSICIAN DEFERRED COMP. 1720554 25059584 0 DUE TO AFFILIATES 104602131 DUE TO PHYSICIANS - 457(F) & 457(B) 23339030 DUE TO PHYSICIANS - DEFERRED COMP. 1720554 129661715 X SCHEDULE D, PART X, LINE 2 CONSOLIDATED AUDIT FOOTNOTE FOR FIN 48 (ASC 740) ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES, CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING A MINIMUM RECOGNITION THRESHOLD THAT A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. ASC 740 ALSO PROVIDES GUIDANCE ON DERECOGNITION, MEASUREMENT, CLASSIFICATION, INTEREST AND PENALTIES, DISCLOSURE, AND TRANSITION. THE GUIDANCE IS APPLICABLE TO PASS-THROUGH ENTITIES AND TAX-EXEMPT ORGANIZATIONS. NO SIGNIFICANT TAX LIABILITY FOR TAX BENEFITS, INTEREST OR PENALTIES WAS ACCRUED AT JUNE 30, 2014 OR 2013. X true false false true false false false false false true false KATIE HENDLEY MD BOARD MEMBER 282159 0 1405 0 23730 0 0 0 20614 0 327908 0 0 0 FREDERICK HENSAL MD BOARD MEMBER 478988 0 0 0 7203 0 10000 0 15935 0 512126 0 0 0 PIYUSH MITTAL MD BOARD MEMBER 472175 0 260799 0 -113397 0 8000 0 7550 0 635127 0 0 0 MICHAEL OWEN MD BOARD MEMBER 376740 0 0 0 8062 0 10000 0 15696 0 410498 0 0 0 NILESH PATEL MD BOARD MEMBER 370252 0 106654 0 -41897 0 10000 0 22394 0 467403 0 0 0 DONALD QUICK MD BOARD MEMBER 586181 0 111296 0 68710 0 10000 0 21501 0 797688 0 0 0 ANDREW ROBINSON BOARD MEMBER 654684 0 350369 0 -181145 0 9712 0 20989 0 854609 0 0 0 CATHERINE RONAGHAN MD BOARD MEMBER 616897 0 84079 0 -17388 0 10000 0 21095 0 714683 0 0 0 JONATHAN SKELTON MD BOARD MEMBER 318593 0 16250 0 57003 0 2000 0 20762 0 414608 0 0 0 IKECHUKWU UMEZURIKE MD BOARD MEMBER (PART YEAR) 501317 0 222564 0 -110555 0 0 0 21637 0 634963 0 0 0 JOHN ZIAS MD BOARD MEMBER 761117 0 50268 0 -41231 0 10000 0 20972 0 801126 0 0 0 STEVE MCCAMY PRESIDENT/CEO OF CMG 0 349896 0 95831 0 41456 0 10200 0 1457 0 498840 0 0 KRISTEN KOTHMANN VP/COO OF CMG 0 168903 0 47938 0 23824 0 15896 0 20946 0 277507 0 0 MARK STEWART VP OF FINANCE/TREASURER 119326 0 35237 0 12819 0 5877 0 22848 0 196107 0 0 0 JUAN KURDI MD PHYSICIAN 1551345 0 1034486 0 -557719 0 0 0 7512 0 2035624 0 0 0 JASON BRADLEY MD PHYSICIAN 1013553 0 281370 0 -107385 0 8000 0 20847 0 1216385 0 0 0 RICHARD RANNE MD PHYSICIAN 1041164 0 0 0 37065 0 8000 0 15052 0 1101281 0 0 0 WILLIAM SPRINGER PHYSICIAN 941150 0 181042 0 -103792 0 0 0 13883 0 1032283 0 0 0 ATUL JOSHI MD PHYSICIAN 938704 0 0 0 7488 0 6667 0 21989 0 974848 0 0 0 KERRY HENDERSHOT MD BOARD MEMBER/CHAIRPERSON 422712 0 37885 0 13952 0 10000 0 23208 0 507757 0 0 0 BILL ATKINSON MD BOARD MEMBER/CHAIRMAN 884282 0 351730 0 -177457 0 10000 0 16126 0 1084681 0 0 0 PAUL WALTER MD BOARD MEMBER/CMO 652625 0 11936 0 -4494 0 9701 0 22095 0 691863 0 0 0 LAURA BAKER MD BOARD MEMBER (PART YEAR) 160810 0 0 0 6856 0 8000 0 1024 0 176690 0 0 0 DAVID BLANN MD BOARD MEMBER 614853 0 52584 0 -28951 0 9701 0 12049 0 660236 0 0 0 BID COOPER MD BOARD MEMBER (PART YEAR) 346381 0 67564 0 -12831 0 10000 0 15810 0 426924 0 0 0 JEREMY DALTON MD BOARD MEMBER 302443 0 127990 0 -51316 0 8000 0 13742 0 400859 0 0 0 SCHEDULE J, PART I, LINE 1A SUPPLEMENTAL COMPENSATION INFORMATION EXECUTIVES RECEIVE A PERCENTAGE OF BASE COMPENSATION FOR DISCRETIONARY SPENDING. THESE AMOUNTS ARE INCLUDED IN OTHER REPORTABLE COMPENSATION. FORM 990, SCHEDULE J, PART I, LINE 3 THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS PAID BY ITS TAX EXEMPT PARENT, COVENENT HEALTH SYSTEM, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. SEE SCHEDULE O, PART VI, LINE 15A NARRATIVE FOR THE PROCESS THAT IS COMPLETED BY ST. JOSEPH HEALTH SYSTEM. FORM 990, SCHEDULE J, PART I, LINE 4B EXECUTIVES COULD PARTICIPATE IN A NON-QUALIFIED DEFERRED COMPENSATION PLAN UNDER INTERNAL REVENUE CODE 457(F). THE PLAN WAS FROZEN EFFECTIVE DECEMBER 31, 2007 AFTER WHICH TIME NO FURTHER CONTRIBUTIONS WERE PERMITTED TO THE PLAN. THIS PLAN WILL CEASE TO EXIST ONCE ALL BENEFITS HAVE BEEN DISTRIBUTED IN ACCORDANCE WITH PROVISIONS OF THE PLAN. THERE WAS NO PAYMENT OF SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN (SERP 457F PAYOUT) IN CALENDAR YEAR 2013. FORM 990, SCHEDULE J, PART I, LINE 7 A PORTION OF EXECUTIVE SALARIES ARE PLACED 'AT-RISK' AND ARE NOT AWARDED UNLESS SPECIFIC STRATEGIC OBJECTIVE TARGETS ARE MET OR EXCEEDED. THE AT-RISK EXECUTIVE PLAN IS DESIGNED TO MOTIVATE AND REWARD EXECUTIVES FOR TEAM PERFORMANCE THAT SUPPORTS THE STRATEGIC GOALS AND SUCCESSFUL PERFORMANCE OF ST. JOSEPH HEALTH SYSTEM. AT-RISK PAY IS AWARDED TO ASSISTANT VICE PRESIDENTS, VICE PRESIDENTS, SENIOR VICE PRESIDENTS, EXECUTIVE VICE PRESIDENTS, AND THE CHIEF EXECUTIVE OFFICER BASED ON ACHIEVING OR SURPASSING SPECIFIC GOALS THAT ARE PREDETERMINED BY THE BOARD OF TRUSTEES PRIOR TO THE BEGINNING OF THE FISCAL YEAR. THE GOALS INCLUDE OUR STRATEGIC OBJECTIVES OF PERFECT CARE, SACRED ENCOUNTERS, AND HEALTHIEST COMMUNITIES AS WELL AS FISCAL STEWARDSHIP. EACH OF THESE FACTORS IS TAKEN INTO CONSIDERATION WHEN DETERMINING THE PERCENTAGE OF AT-RISK PAY. COVENANT MEDICAL GROUP (CMG) HAS A PAY FOR PERFORMANCE PROGRAM BASED ON OBTAINING RESULTS FOR SPECIFIC QUALITY METRICS. EACH PHYSICIAN IS MEASURED AGAINST THEIR ANNUAL PERFORMANCE REGARDING CLINICAL METRICS TIED TO THEIR SPECIALTY. A SCORECARD IS GENERATED FOR EACH PHYSICIAN THAT MEETS CMG'S ANNUAL ADMINISTRATIVE CRITERIA. THE PHYSICIANS ARE THEN ELIGIBLE TO RECEIVE A DISBURSEMENT GENERATED BY CMG'S SHARED SAVINGS CONTRACTS. EACH PHYSICIAN SCORECARD CONTAINS INDIVIDUAL, SPECIALTY, AND AGGREGATE QUALITY PERFORMANCE MEASURES WHERE A MONETARY PAYOUT IS ESTABLISHED BASED ON OBTAINING THE GOAL SET FOR EACH INDIVIDUAL MEASURE. FOR EXAMPLE: AN INTERNAL MEDICINE PHYSICIAN COULD HAVE A POTENTIAL MAXIMUM OF $10,000 AND HAS A SCORECARD WITH 10 METRICS EQUALLY WEIGHTED AT $1,000 EACH. IF THE PHYSICIAN ONLY REACHES THE GOAL ESTABLISHED FOR 7 OF THE 10 METRICS; THE PHYSICIAN WILL RECEIVE A PAYMENT FOR $7,000. Katie Hendley MD BOARD MEMBER EDUCATION STIPEND X 52000 3281 false true true Kerry Hendershot MD BOARD MEMBER RETENTION BONUS X 60000 22349 false true true 25630 FORM 990, PART I, LINE 1 & PART III, LINE 1 ORGANIZATION'S MISSION AS A MEMBER OF THE ST. JOSEPH HEALTH SYSTEM (SJHS), COVENANT MEDICAL GROUP IS COMMITTED TO EXTENDING THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE BY CONTINUALLY IMPROVING THE HEALTH AND QUALITY OF LIFE OF PEOPLE IN THE COMMUNITIES WE SERVE. OUR MISSION IS REALIZED THROUGH THE DELIVERY OF QUALITY IN-PATIENT AND OUT-PATIENT SERVICES, AND FOCUSED COMMUNITY INITIATIVES AND PROGRAMS THAT ARE DEDICATED TO IMPROVING THE LIVES OF ALL WE SERVE. FORM 990, PART III, LINE 4 PROGRAM SERVICE ACCOMPLISHMENTS AS A MEMBER OF THE ST. JOSEPH HEALTH SYSTEM (SJHS), COVENANT MEDICAL GROUP IS COMMITTED TO EXTENDING THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE. THAT MISSION HAS GUIDED OUR CATHOLIC HEALTHCARE MINISTRY SINCE THE OPENING OF OUR FIRST HOSPITAL IN EUREKA, CALIFORNIA NEARLY 100 YEARS AGO. BUT THE ROOTS OF COVENANT MEDICAL GROUP AND THE LESSONS TO SERVE OUR DEAR NEIGHBORS DATE BACK TO THE YEAR 1650 WHEN THE SISTERS' FIRST CONGREGATION WAS FORMED IN LE PUY, FRANCE. SINCE THAT TIME, THE PEOPLE OF OUR ORGANIZATION CONTINUE TO ASSESS THE NEEDS OF THE COMMUNITIES WE SERVE, BUILD COLLABORATIVE PARTNERSHIPS WITH LOCAL RESIDENTS, BUSINESS AND COMMUNITY NOT-FOR-PROFITS, AND TOGETHER THROUGH THOSE PARTNERSHIPS, MEET COMMUNITY NEEDS. THE HEALTH SYSTEM IS ORGANIZED INTO THREE REGIONS - NORTHERN CALIFORNIA, SOUTHERN CALIFORNIA, AND WEST TEXAS/EASTERN NEW MEXICO - AND CONSISTS OF 14 ACUTE CARE HOSPITALS, AS WELL AS HOME HEALTH AGENCIES, HOSPICE CARE, OUT-PATIENT SERVICES, SKILLED NURSING FACILITIES, COMMUNITY CLINICS, AND PHYSICIAN ORGANIZATIONS. WHO WE ARE AND WHAT WE DO COVENANT MEDICAL GROUP "CARING FOR THE PEOPLE OF OUR REGION" OUR REGION: COVENANT MEDICAL GROUP IS HEADQUARTERED IN LUBBOCK, TEXAS, THE SITE OF THE SOUTHWEST'S PREEMINENT MEDICAL CENTER BETWEEN THE DALLAS / FORT WORTH METROPLEX AND PHOENIX. WITH A COUNTY POPULATION OF 250,000 AND SERVING AN AREA OF 1.2 MILLION PEOPLE IN THE REGION, LUBBOCK HAS MANY OF THE AMENITIES OF A LARGER METROPOLITAN AREA, INTERNATIONAL AIRPORT, GREAT SHOPPING AND RESTAURANTS, AND EXCELLENT PUBLIC AND PRIVATE SCHOOLS, YET RETAINING A WONDERFUL "SMALL-TOWN" ATMOSPHERE. OUR HEALTH SYSTEM'S REGIONAL CLINICS ARE LOCATED THROUGHOUT WEST TEXAS AND EASTERN NEW MEXICO. OUR REGIONAL CLINIC NETWORK CONTAINS SEVERAL OPERATIONALLY DIFFERENT MODELS. SOME ARE DIRECTLY OWNED AND OPERATED BY CMG; SOME ARE RURAL HEALTH CLINICS IN WHICH CMG SUPPLIES ITS EMPLOYED PHYSICIANS TO WORK FOR A RURAL HOSPITAL-OWNED FACILITY; SOME ARE RURAL HEALTH CLINICS IN WHICH THE PHYSICIANS ARE INDEPENDENT CONTRACTORS; AND SOME ARE SATELLITE CLINIC SITES TO WHICH CMG SUBSPECIALISTS TRAVEL A FEW TIMES PER MONTH. THESE REGIONAL CLINICS ARE INTEGRAL TO THE PROVISION OF PRIMARY CARE SERVICES TO THEIR LOCAL COMMUNITIES, AND ALSO SEND SUBSTANTIAL NUMBERS OF PATIENTS TO LUBBOCK FOR TERTIARY CARE THAT IS NOT AVAILABLE LOCALLY. COVENANT MEDICAL GROUP IS A NON-PROFIT, TAX-EXEMPT MEDICAL FOUNDATION THAT IS CERTIFIED UNDER TEXAS LAW TO EMPLOY PHYSICIANS AND PRACTICE MEDICINE. IT IS OWNED BY COVENANT HEALTH SYSTEM, BUT IS SELF-GOVERNING IN MOST ASPECTS, OTHER THAN FISCAL MATTERS. THERE IS A BOARD OF 14 PHYSICIANS WHO PROVIDE THE OVERSIGHT OF THE GROUP'S STRATEGIC PLANNING, POLICY DEVELOPMENT, RECRUITMENT AND CREDENTIALING, QUALITY IMPROVEMENT TASKS, RESEARCH, AND MEDICAL EDUCATION ACTIVITIES. ALL OF THE BOARD MEMBERS ARE ACTIVELY PRACTICING WITHIN CMG. THIS SELF-GOVERNING ASPECT OF CMG TENDS TO MAKE IT QUITE PHYSICIAN-FRIENDLY IN ITS POLICY DEVELOPMENT AND PLANNING IN THAT THE BOARD MEMBERS ARE IMMEDIATELY PERSONALLY IMPACTED IN THEIR OWN PRACTICE BY THEIR BOARD DECISIONS. FOR MORE INFORMATION ON COVENANT MEDICAL GROUP GO TO: WWW.COVMEDGROUP.ORG FOR MORE INFORMATION ON THE ST. JOSEPH HEALTH SYSTEM GO TO: WWW.STJOE.ORG FORM 990,PART VI, LINE 1B INDEPENDENT BOARD MEMBERS COVENANT MEDICAL GROUP HAS NO INDEPENDENT BOARD MEMBERS BECAUSE ALL BOARD MEMBERS ARE REQUIRED TO BE ACTIVE PHYSICIANS WITH LOYALTIES TO COVENANT HEALTH SYSTEM, THE TAX-EXEMPT PARENT. FORM 990, PART VI, LINE 6 DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS COVENANT HEALTH SYSTEM IS THE SOLE CORPORATE MEMBER OF COVENANT MEDICAL GROUP. Form 990, Part VI, Line 7a DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS COVENANT MEDICAL GROUP HAS A TIERED GOVERNANCE IN WHICH THE CORPORATE MEMBERS RESERVE THE RIGHT TO APPOINT TRUSTEES TO THE COVENANT MEDICAL GROUP BOARD. ALL TRUSTEE APPOINTMENTS THAT COME FROM THE COVENANT MEDICAL GROUP BOARD AS NOMINATIONS MUST BE APPROVED BY COVENANT HEALTH SYSTEM, AS THE CORPORATE MEMBER, AND ST. JOSEPH HEALTH SYSTEM, AS THE TAX-EXEMPT PARENT OF COVENANT HEALTH SYSTEM, AND THE ST. JOSEPH HEALTH MINISTRY, AS THE ORGANIZATIONAL SPONSOR. Form 990, Part VI, Line 7b DECISIONS REQUIRING APPROVAL THE RESERVED RIGHTS IN OUR TIERED GOVERNANCE STRUCTURE CONTEMPLATE APPROVAL BY THE COVENANT HEALTH SYSTEM MEMBER OF FINANCING, BUDGETS, UNBUDGETED EXPENDITURES OF DEFINED AMOUNTS, STRATEGIC PLAN, APPOINTMENT OF AUDITORS, CREATION OR INVESTMENT IN A LEGALLY RECOGNIZED ENTITY, JOINT VENTURES, PURPOSES, SALE OR DISPOSITION OF REAL PROPERTY, MERGER OR SALE OF SUBSTANTIALLY ALL ASSETS, APPOINTMENT AND REMOVAL OF TRUSTEES, ADOPTION OR AMENDMENT OF ARTICLES OR BYLAWS. Form 990, Part VI, Line 11b PROCESS USED BY MANAGMENT AND/OR GOVERNING BODY TO REVIEW 990 THE FORM 990 IS PREPARED BY THE FINANCE DEPARTMENT BASED ON INFORMATION RECEIVED FROM VARIOUS DEPARTMENTS OF THE ORGANIZATION AS APPLICABLE. THE FORM 990 IS THEN REVIEWED BY AN OFFICER OF THE ORGANIZATION. A COPY OF THE FORM 990 FILING IS THEN DISTRIBUTED TO ALL VOTING MEMBERS OF THE BOARD PRIOR TO FILING. FORM 990, PART VI, LINE 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST OFFICERS, TRUSTEES AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE THE EXISTENCE AND NATURE OF ANY ACTUAL, APPARENT, OR POTENTIAL CONFLICTS OF INTEREST HE/SHE MAY HAVE THAT MIGHT RESULT IN OR HAVE THE APPEARANCE OF A CONFLICT IN CONNECTION WITH THAT INDIVIDUAL SATISFYING THEIR FIDUCIARY OBLIGATIONS TO THE ORGANIZATION. DISCLOSURES SHALL BE MADE PROMPTLY ANY TIME AN ACTUAL, APPARENT OR POTENTIAL CONFLICT OF INTEREST ARISES AND BEFORE THE CONSUMMATION OF ANY CONTRACT, TRANSACTION OR ARRANGEMENT THAT IS THE SUBJECT OF THE POTENTIAL CONFLICT OF INTEREST. WITH GUIDANCE FROM THE ST. JOSEPH HEALTH SYSTEM CHIEF COMPLIANCE OFFICER (CCO), THE CHIEF EXECUTIVE AND/OR THE GOVERNING BOARD CHAIRPERSON, AS APPROPRIATE, CONSIDERS THE MATTER INITIALLY. IF THE MATTER CANNOT BE RESOLVED AT THAT LEVEL, THE MATTER IS ESCALATED TO THE CCO. THE CCO, IN CONSULTATION WITH THE ST. JOSEPH HEALTH SYSTEM GENERAL COUNSEL, REVIEWS THE MATTER AND PRESENTS RECOMMENDATIONS TO THE GOVERNING BOARD AND/OR BOARD COMMITTEE, AS APPROPRIATE, FOR DISCUSSION AND VOTE. THE INDIVIDUAL WHOSE POTENTIAL CONFLICT IS BEING REVIEWED MAY BE REQUESTED TO BE PRESENT DURING ANY MEETING IN WHICH THE BOARD OR BOARD COMMITTEE CONDUCTS ITS EVALUATION BUT SHALL BE EXCUSED FOR ANY DISCUSSION OR VOTE. FORM 990, PART V1, LINES 15A AND 15B PROCESS USED TO DETERMINE COMPENSATION THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS PAID BY ITS TAX EXEMPT PARENT, COVENANT HEALTH SYSTEM, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. EXECUTIVE COMPENSATION IS APPROVED BY THE COVENANT MEDICAL GROUP WORKLIFE COMMITTEE, WHICH IS COMPRISED OF INDEPENDENT PERSONS. THE COMMITTEE REVIEWS COMPARABILITY DATA PREPARED FOR AND COMPILED BY THE ST. JOSEPH HEALTH SYSTEM WORKLIFE COMMITTEE, A COMMITTEE OF THE ST. JOSEPH HEALTH SYSTEM BOARD OF TRUSTEES COMPRISED OF INDEPENDENT MEMBERS. THE ST. JOSEPH HEALTH SYSTEM WORKLIFE COMMITTEE ACTS IN ACCORDANCE WITH A COMMITTEE CHARTER APPROVED BY THE ST. JOSEPH HEALTH SYSTEM BOARD OF TRUSTEES AND AN EXECUTIVE COMPENSATION PHILOSOPHY. THE CHARTER DIRECTS THE ST. JOSEPH HEALTH SYSTEM WORKLIFE COMMITTEE TO ADMINISTER THE EXECUTIVE COMPENSATION PROGRAM AND TO APPROVE PROGRAM CHANGES, AS NECESSARY, TO ENSURE ALIGNMENT WITH THE STATED PHILOSOPHY AND ENSURE CONTINUED COMPLIANCE WITH FEDERAL AND STATE REGULATIONS ON BEHALF OF THE ST. JOSEPH HEALTH SYSTEM BOARD OF TRUSTEES. OVERALL, THE PHILOSOPHY IS INTENDED TO REWARD A BROAD SPECTRUM OF HIGH ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE EXPECTATIONS, AS WELL AS RETENTION OF KEY MANAGEMENT TALENT. THE EXECUTIVE COMPENSATION PHILOSOPHY DEFINES THE MARKET FOR ADMINISTERING COMPENSATION AS A COMPARABLE SET OF FOR PROFIT AND NOT-FOR-PROFIT HEALTH CARE DELIVERY SYSTEMS. ST. JOSEPH HEALTH SYSTEM PROVIDES COMPENSATION TO ITS EXECUTIVES IN THE FORM OF BASE SALARY, AN ANNUAL INCENTIVE PROGRAM, AND BENEFITS. TO ENSURE COMPENSATION PHILOSOPHY ADHERENCE AND GENERAL FAIR MARKET VALUE COMPENSATION, THE COMMITTEE REGULARLY REVIEWS INFORMATION FROM MULTIPLE SOURCES OF MARKET DATA AND ENGAGES LEGAL COUNSEL AND CONSULTING SUPPORT, AS NEEDED. THEY USE THIS INFORMATION TO SUPPORT ONGOING EFFECTIVENESS AND ADMINISTRATION OF THE PROGRAM. THE ST. JOSEPH HEALTH SYSTEM WORKLIFE COMMITTEE MEETS AT LEAST 3 TIMES A YEAR AND TAKES ACTION IN EXECUTIVE SESSION. THESE ACTIONS ARE DOCUMENTED IN DETAILED MINUTES AND APPROVED IN SUBSEQUENT MEETINGS. A FULL COMPENSATION REVIEW IS CONDUCTED ON A BIENNIAL BASIS AND THE LAST REVIEW WAS PERFORMED IN JUNE 2013. DURING THE YEAR, THE MEDICAL COVENANT GROUP WORKLIFE COMMITTEE REVIEWED AND APPROVED ANY CHANGES IN COMPENSATION FOR KEY EXECUTIVES PREDICATED ON THE ANALYSIS AND RECOMMENDATION BY AN INDEPENDENT THIRD PARTY CONSULTING FIRM WITH EXPERTISE IN HEALTHCARE EXECUTIVE COMPENSATION. IN ADDITION, ANNUAL INCENTIVE AWARDS ARE REVIEWED AND APPROVED PRIOR TO PAYMENT CONSISTENT WITH THE MOST RECENT COMPENSATION BIENNIAL REVIEW AND IN ACCORDANCE WITH THE PLAN DOCUMENT. THESE ACTIONS ARE DOCUMENTED IN DETAILED MINUTES WHICH ARE SUBSEQUENTLY APPROVED AT THE COMMITTEE MEETING. FORM 990, PART VI, LINE 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE SJHS COMMUNITY BENEFIT REPORTS, FINANCIAL REPORTS, AND PHILANTHROPY REPORTS ARE ALSO AVAILABLE ON THE SJHS INTERNET SITE. FORM 990 PART VII SUPPLEMENTAL COMPENSATION INFORMATION THE BOARD MEMBERS LISTED IN FORM 990, PART VII THAT RECEIVED COMPENSATION FROM COVENANT MEDICAL GROUP WERE PAID FOR MEDICAL SERVICES PROVIDED TO THE ORGANIZATION, NOT FOR BOARD MEMBER SERVICES. COVENANT HEALTH NETWORK INC 3345 MICHELSON DRIVE STE 100 IRVINE CA 92612 461259908 HEALTHCARE CA 501(C)(3) 11, III SJHS true COVENANT HEALTH PARTNERS 3615 19TH STREET LUBBOCK TX 79410 611573313 HEALTHCARE TX 501(C)(3) 11,I CHS true COVENANT HEALTH SYSTEM 3615 19TH STREET LUBBOCK TX 79410 752765566 HEALTHCARE TX 501(C)(3) 3 SJHS true COVENANT HEALTH SYSTEM FOUNDATION 4000 24TH STREET LUBBOCK TX 79410 752897026 HEALTHCARE TX 501(C)(3) 7 CHS true COVENANT PHYSICIAN PARTNERS 3615 19TH STREET LUBBOCK TX 79410 463516417 HEALTHCARE TX 501(C)(3) 3 CHS true HOAG CHARITY SPORTS 3920 BIRCH STREET SUITE 105 NEWPORT BEACH CA 92660 452982422 SUPPORT CA 501(C)(3) 7 HHF true HOAG HOSPITAL FOUNDATION 1 HOAG DRIVE BOX 6100 NEWPORT BEACH CA 92663 953222343 FUNDRAISING CA 501(C)(3) 7 HMHP true HOAG MEMORIAL HOSPITAL PRESBYTERIAN 1 HOAG DRIVE BOX 6100 NEWPORT BEACH CA 92663 951643327 HEALTHCARE CA 501(C)(3) 3 CHN true HOME CARE PARTNERS 1165 MONTGOMERY DR SANTA ROSA CA 95405 680318656 INACTIVE CA 501(C)(3) 3 SRMH true HOSPICE OF LUBBOCK 1102 SLIDE ROAD LUBBOCK TX 79414 752133781 HEALTHCARE TX 501(C)(3) 9 CHS true LUBBOCK METHODIST HOSPITAL FOUNDATION 3615 19TH STREET LUBBOCK TX 79410 752220963 HEALTHCARE TX 501(C)(3) 7 CHS true METHODIST CHILDREN'S HOSPITAL 3610 21ST STREET LUBBOCK TX 79410 752428911 HEALTHCARE TX 501(C)(3) 3 CHS true METHODIST HOSPITAL LEVELLAND 1900 COLLEGE AVENUE LEVELLAND TX 79336 752246348 HEALTHCARE TX 501(C)(3) 3 CHS true METHODIST HOSPITAL PLAINVIEW 2601 DIMMITT ROAD PLAINVIEW TX 79072 752426010 HEALTHCARE TX 501(C)(3) 3 CHS true MISSION HOSPITAL REGIONAL MEDICAL CTR 27700 MEDICAL CENTER ROAD MISSION VIEJO CA 92691 951643360 HEALTHCARE CA 501(C)(3) 3 CHN true QUEEN OF THE VALLEY MEDICAL CENTER 1000 TRANCAS STREET NAPA CA 94558 941243669 HEALTHCARE CA 501(C)(3) 3 SJHS true REDWOOD MEMORIAL FOUNDATION 3300 RENNER DRIVE FORTUNA CA 95540 942779313 HEALTHCARE CA 501(C)(3) 7 RMH true REDWOOD MEMORIAL HOSPITAL 3300 RENNER DRIVE FORTUNA CA 95540 941384665 HEALTHCARE CA 501(C)(3) 3 SJHS true SANTA ROSA MEMORIAL HOSPITAL 1165 MONTGOMERY DR SANTA ROSA CA 95405 941231005 HEALTHCARE CA 501(C)(3) 3 SJHS true SISTERS OF ST JOSEPH OF ORANGE 480 S BATAVIA ORANGE CA 92868 951643383 RELIGIOUS ORG CA 501(C)(3) 1 NA false SRM ALLIANCE HOSPITAL SERVICES 400 NORTH MCDOWELL BLVD PETALUMA CA 94954 680395200 HEALTHCARE CA 501(C)(3) 3 SRMH true ST JOSEPH HEALTH MINISTRY 3345 MICHELSON DRIVE STE 100 IRVINE CA 92612 271666576 RELIGIOUS ORG CA 501(C)(3) 1 SSJO false ST JOSEPH HEALTH SYSTEM 3345 MICHELSON DRIVE STE 100 IRVINE CA 92612 953589356 HEALTHCARE CA 501(C)(3) 11, I SJHM false ST JOSEPH HEALTH SYSTEM FOUNDATION 3345 MICHELSON DRIVE STE 100 IRVINE CA 92612 330143024 HEALTHCARE CA 501(C)(3) 7 SJHS true ST JOSEPH HOME CARE NETWORK 170 PROFESSIONAL CENTER DR B ROHNERT PARK CA 94928 680331084 HEALTHCARE CA 501(C)(3) 9 SJHS true ST JOSEPH HOSPITAL OF EUREKA 2700 DOLBEER STREET EUREKA CA 95501 941156596 HEALTHCARE CA 501(C)(3) 3 SJHS true ST JOSEPH HOSPITAL OF ORANGE 1100 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NA N/A HERITAGE INVESTMENT GROUP INVESTMENTS CA NA N/A MISSION AMBULATORY SURGICENTER HEALTHCARE SVCS CA NA N/A COMPREHENSIVE IMAGING PARTNERS HEALTHCARE SVCS CA NA N/A ST JOSEPH PHYSICIAN VENTURES REAL ESTATE CA NA N/A ADVANCED SURGERY INSTITUTE LLC HEALTHCARE SVCS CA NA N/A HOAG OUTPATIENT CENTERS HEALTHCARE SVCS CA NA N/A NEWPORT IMAGING CENTER HEALTHCARE SVCS CA NA N/A HOAG ORTHOPEDIC INSTITUTE HEALTHCARE SVCS CA NA N/A MAIN ST SPECIALTY SURGERY CNTR SEE PART VII SANTA ROSA CA 95404 262299255 HEALTHCARE SVCS CA NA N/A ORTHOPEDIC SURGERY CNTR OF OC HEALTHCARE SVCS CA NA N/A THE INSTITUTE FOR INNOVATION HEALTHCARE SVCS DE NA N/A HEALTHCARE DESIGN & CONSTRUCT REAL ESTATE DE NA N/A NORTH BAY ENDOSCOPY CENTER HEALTHCARE SVCS CA NA N/A ST JOSEPH PROF SVCS ENTERPRISES INC 3345 MICHELSON DRIVE SUITE 100 IRVINE CA 92612 330155323 HEALTHCARE SVCS CA NA C-CORP AMERICAN UNITY GROUP LTD 58 PAR-LA-VILLE ROAD HAMILTON HM BD HX CAPTIVE INSURANCE BD NA C-CORP ALLIANCE PHYSICIAN SERVICES INACTIVE CA NA C-CORP MISSION VIEJO MEDICAL VENTURES 27800 MEDICAL CENTER RD 354 MISSION VIEJO CA 92691 330212905 HEALTHCARE SVCS CA NA C-CORP ST JOSEPH YORBA PARK INACTIVE CA NA C-CORP LUBBOCK METHODIST HOSPITAL SVCS PO BOX 1201 LUBBOCK TX 79410 752118585 HEALTHCARE SVCS TX NA C-CORP LUBBOCK METHODIST HOSP PRACTICE MGMT 2107 OXFORD STREET STE 300 LUBBOCK TX 79410 752578995 INACTIVE TX NA C-CORP HOAG MANAGEMENT SERVICES INC 1 HOAG DRIVE BOX 6100 NEWPORT BEACH CA 92658 330731587 HEALTHCARE SVCS CA NA C-CORP COASTAL MANAGEMENT SERVICES ORGANIZATION 1 HOAG DRIVE BOX 6100 NEWPORT BEACH CA 92658 330676831 HEALTHCARE SVCS CA NA C-CORP HMTS INC FKA HOAG MEDICAL FOUNDATION 1 HOAG DRIVE BOX 6100 NEWPORT BEACH CA 92658 453583707 HEALTHCARE SVCS CA NA C-CORP ST JOSEPH HEALTH SOURCE INC 3345 MICHELSON DRIVE SUITE 100 IRVINE CA 92612 461900168 HEALTHCARE SVCS CA NA C-CORP DATU HEALTH INC 16150 MAIN CIRCLE DR SUITE 250 CHESTERFIELD MO 63017 463070062 IT SVCS MO NA C-CORP ST JOSEPH HEALTH 3345 MICHELSON DR SUITE 100 IRVINE CA 92612 462340232 HOLDING COMPANY CA NA C-CORP false false false false false false false false false false true true true false true false false true true SCHEDULE R, PART III IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A PARTNERSHIP ST. JOSEPH HEALTH SYSTEM HOME HEALTH AGENCY EIN: 33-0282945 ADDRESS: 1845 W. ORANGEWOOD AVENUE, STE. 200 ORANGE, CA 92868-2012 ST. JOSEPH HEALTH SYSTEM HOME CARE SERVICES EIN: 33-0307672 ADDRESS: 1845 W. ORANGEWOOD AVENUE, STE. 100, ORANGE, CA 92868-2012 METHODIST DIAGNOSTIC IMAGING EIN: 75-2343261 ADDRESS: 4005 24TH STREET, LUBBOCK, TX 79410 SHA, LLC EIN: 75-2569094 ADDRESS: 12940 NORTH HIGHWAY 183, AUSTIN, TX 78750 LUBBOCK SURGERY CENTER, LTD. EIN: 75-2177401 ADDRESS: 2301 QUAKER, LUBBOCK, TX 79410 COVENANT LONG-TERM CARE, LP EIN: 20-5033419 ADDRESS: 4000 24TH STREET, LUBBOCK, TX 79410 HERITAGE INVESTMENT GROUP I, LLC EIN: 27-1000061 ADDRESS: 3345 MICHELSON DRIVE, STE. 100, IRVINE, CA 92612 MISSION AMBULATORY SURGICENTER, LTD EIN: 33-0355575 ADDRESS: 27800 MEDICAL CENTER ROAD, STE. 362, MISSION VIEJO, CA 92691 COMPREHENSIVE IMAGING PARTNERS OF ORANGE COUNTY, LLC EIN: 26-4591502 ADDRESS: ONE CITY BOULEVARD WEST, SUITE 1100, ORANGE, CA 92868 ST. JOSEPH PHYSICIAN VENTURES I, LLC EIN: 45-4521884 ADDRESS: 1100 WEST STEWART DRIVE, ORANGE, CA 92868 ADVANCED SURGERY INSTITUTE, LLC EIN: 26-2299255 ADDRESS: 1739 4TH STREET, SANTA ROSA, CA 95404 HOAG OUTPATIENT CENTERS EIN: 45-3587572 ADDRESS: 1 HOAG DRIVE, BOX 6100, NEWPORT BEACH, CA 92658 NEWPORT IMAGING CENTER EIN: 33-0191776 ADDRESS: 360 SAN MIGUEL, NEWPORT BEACH, CA 92660 HOAG ORTHOPEDIC INSTITUTE EIN: 61-1588294 ADDRESS: 1 HOAG DRIVE, BOX 6100, NEWPORT BEACH, CA 92658 MAIN ST SPECIALTY SURGERY CENTER EIN: 95-4813223 ADDRESS: 280 MAIN STREET, STE 100, ORANGE, CA 92868 ORTHOPEDIC SURGERY CENTER OF OC, LLC EIN: 33-0841806 ADDRESS: 22 CORPORATE PLAZA, NEWPORT BEACH, CA 92660 THE INSTITUTE FOR INNOVATION, LLC EIN: 90-0745066 ADDRESS: 1 CENTERPOINTE DRIVE SUITE 200, LA PALMA, CA 90623-1052 HEALTHCARE DESIGN AND CONSTRUCTION EIN: 46-2611662 ADDRESS: 1 CENTERPOINTE DRIVE SUITE 200, LA PALMA, CA 90623-1052 NORTH BAY ENDOSCOPY CENTER, LLC EIN: 61-1559876 ADDRESS: 1383 N. MCDOWELL BLVD SUITE 110, PETALUMA, CA 94954