2015-08-14T22:35:55-05:00 2014-09-30 861065772 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2013-10-01 951903935 DOWNEY REGIONAL MEDICAL CENTER HOSPITAL INC DOWN 5629045000 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 RONALD YOSHIHARA VP FINANCE 5629045000 2015-08-14 1 DIANA J MCCUTCHEN P00545657 7144367100 2013 2016-03-07 17:11:31Z PIH HEALTH HOSPITAL - DOWNEY RONALD YOSHIHARA 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 132548468 0 X WWW.DRMCI.ORG X 1956 CA DOWNEY REGIONAL MEDICAL CENTER HOSPITAL PROVIDES THE SURROUNDING COMMUNITY WITH A COMPREHENSIVE RANGE OF INPATIENT ACUTE CARE SERVICES FOR MEDICAL, SURGICAL, PEDIATRIC, OBSTETRIC, & CRITICAL CARE PATIENTS. 17 15 1402 237 0 0 10222 0 34873107 131079026 8197 32562 2223199 1436880 37114725 132548468 0 0 0 0 20874564 81952206 0 0 0 23425255 58810240 44299819 140762446 -7185094 -8213978 71537436 100401246 138382937 155771749 -66845501 -55370503 X THE MISSION OF DOWNEY REGIONAL MEDICAL CENTER HOSPITAL IS TO PROVIDE THE HIGHEST QUALITY HEALTH CARE TO OUR PATIENTS, TO ASSESS AND ADDRESS ALL HEALTH CARE NEEDS TO OUR SERVICE AREA, AND TO PROVIDE A SYNERGISTIC SUPPORTIVE WORKING ENVIRONMENT FOR OUR PATIENTS, EMPLOYEES, PHYSICIANS AND VOLUNTEERS. 0 0 69208779 110257751 PATIENT CARE: PIH HEALTH HOSPITAL - DOWNEY, FORMERLY KNOWN AS DOWNEY REGIONAL MEDICAL CENTER, IS PART OF THE PIH HEALTH INTEGRATED HEALTHCARE SYSTEM.PIH HEALTH PROVIDES A WIDE ARRAY OF OUTSTANDING HEALTHCARE SERVICES TO MORE THAN 2.1 MILLION PEOPLE LIVING IN LOS ANGELES COUNTY, ORANGE COUNTY AND THE SAN GABRIEL VALLEY. PIH HEALTH HOSPITAL - DOWNEY IS A NONPROFIT HOSPITAL WITH A RICH, 90-YEAR HISTORY OF MEETING THE HEALTHCARE NEEDS OF ITS COMMUNITY AND ESTABLISHING A VISION OF "PATIENTS FIRST". THE DOWNEY CAMPUS IS PROUD TO PROVIDE KEY SERVICES AND NEW TECHNOLOGIES AS PART OF PIH HEALTH'S INTEGRATED HEALTHCARE SYSTEM.PIH HEALTH IS DEDICATED TO ENSURING HIGH STANDARDS FOR CARE. IN ORDER TO ASSIST PIH HEALTH HOSPITAL - DOWNEY IN BECOMING THE PREMIER HOSPITAL IN THE AREA, PIH HEALTH IS COMMITTED TO UPGRADES THAT WILL HELP THE INSTITUTION INCREASE QUALITY, SAFETY AND EFFICIENCY. 2013 IMPROVEMENTS INCLUDE: UPGRADES TO PATIENT AND OPERATING ROOMS, HIGH-QUALITY VENTILATORS, GASTROENTEROLOGY ENHANCEMENTS, NEW REHABILITATION EQUIPMENT, IMPROVED EFFICIENCY IN FOOD AND NUTRITION SERVICES, IMAGING IMPROVEMENTS, ADVANCED LABORATORY EQUIPMENT, BUILDING IMPROVEMENTS, CLINICAL ENHANCEMENTS, AND TECHNOLOGY UPGRADES.PATIENT CARE IN 2013EMPLOYEES....1,402VOLUNTEERS....237PHYSICIANS AND ADVANCED CARE PROFESSIONALS....402NUMBER OF EMERGENCY DEPARTMENT (ED) VISITS....52,385NUMBER OF BIRTHS....1,318LICENSED HOSPITAL BEDS....199MEDICAL STAFF....400 37763694 19196197 FINANCIAL ASSISTANCE AND MEANS-TESTED GOVERNMENT PROGRAMS: FINANCIAL ASSISTANCE, ALSO KNOWN AS CHARITY CARE, IS DEFINED AS FREE OR DISCOUNTED HEALTH SERVICES PROVIDED TO INDIVIDUALS WHO CANNOT AFFORD TO PAY AND WHO MEET THE ELIGIBILITY CRITERIA OF THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY. FINANCIAL ASSISTANCE IS REPORTED IN TERMS OF COSTS, NOT CHARGES, AND DOES NOT INCLUDE BAD DEBT. PIH HEALTH OFFERS A GENEROUS FINANCIAL ASSISTANCE PROGRAM, PROVIDING CHARITY CARE TO THOSE WITH FAMILY INCOME(S) AT OR BELOW 400% OF FEDERAL POVERTY LEVEL GUIDELINES.IN PROVIDING SERVICES TO THOSE PATIENTS PARTICIPATING IN MEANS-TESTED GOVERNMENT HEALTH PROGRAMS, SUCH AS MEDI-CAL, PIH HEALTH REALIZES A COLLECTIVE NET LOSS EACH FISCAL YEAR DUE TO THE SHORTFALL CREATED WHEN THE PAYMENTS RECEIVED FROM THESE PROGRAMS ARE LESS THAN THE COST OF CARING FOR PUBLIC PROGRAM BENEFICIARIES. THIS PAYMENT SHORTFALL IS NOT THE SAME AS A CONTRACTUAL ALLOWANCE, WHICH IS THE FULL DIFFERENCE BETWEEN CHARGES AND PAYMENTS BY GOVERNMENT PROGRAMS. NUMBER OF PERSONS SERVED BY FINANCIAL ASSISTANCE AND MEANS-TESTED GOVERNMENT PROGRAMS: 27,201FOR ADDITIONAL INFORMATION, PLEASE REFER TO PIH HEALTH'S COMMUNITY BENEFIT REPORT AT PIHHEALTH.ORG/CBANNUALREPORT 4370128 1625078 COMMUNITY HEALTH IMPROVEMENT SERVICES AND COMMUNITY BENEFIT OPERATIONS, HEALTH PROFESSIONS EDUCATION, SUBSIDIZED HEALTH SERVICES, AND CASH AND IN-KIND CONTRIBUTIONS FOR COMMUNITY BENEFIT ARE COMPRISED OF THE FOLLOWING:COMMUNITY HEALTH IMPROVEMENT SERVICES: DEFINED AS COMMUNITY HEALTH IMPROVEMENT ACTIVITIES, WHICH EXTEND BEYOND PATIENT CARE ACTIVITIES (USUALLY SUBSIDIZED BY THE HEALTHCARE ORGANIZATION AND DO NOT GENERATE PATIENT CARE BILLS, ALTHOUGH MAY INVOLVE A NOMINAL FEE). THESE PROGRAMS INCLUDE: COMMUNITY COLLABORATIVES, COMMUNITY EDUCATION, COMMUNITY INFORMATION AND REFERRAL SUPPORT, ENROLLMENT ASSISTANCE, PREVENTATIVE HEALTH PROGRAMS AND SCREENINGS AND SUPPORT GROUPS.HEALTH PROFESSIONS EDUCATION: THIS CATEGORY INCLUDES EDUCATIONAL PROGRAMS FOR PHYSICIANS, NURSES AND OTHER HEALTH PROFESSIONALS WHEN EDUCATION IS NECESSARY OR REQUIRED BY STATE LAW, ACCREDITING BODY OR HEALTH PROFESSION SOCIETY. PIH HEALTH PROGRAMS INCLUDE THE FAMILY MEDICINE RESIDENCY PROGRAM, AND STUDENT EDUCATION (INTERNSHIP, EXTERNSHIP, PRECEPTORSHIP AND MENTORING PROGRAMS).SUBSIDIZED HEALTH SERVICES: SUBSIDIZED HEALTH SERVICES ARE CLINICAL PROGRAMS, WHICH ARE PROVIDED DESPITE A FINANCIAL LOSS SO SIGNIFICANT THAT NEGATIVE MARGINS REMAIN AFTER REMOVING THE EFFECTS OF FINANCIAL ASSISTANCE, BAD DEBT AND MEDI-CAL SHORTFALLS. NEVERTHELESS, THE SERVICE IS PROVIDED BECAUSE IT MEETS AN IDENTIFIED COMMUNITY NEED AND, IF NO LONGER OFFERED, WOULD EITHER BE UNAVAILABLE IN THE AREA OR FALL TO THE RESPONSIBILITY OF GOVERNMENT OR ANOTHER NONPROFIT ORGANIZATION TO PROVIDE. EMERGENCY DEPARTMENT AND SPECIALTY SERVICES IS ONE SERVICE THAT FALLS UNDER THIS CATEGORY.CASH & IN-KIND CONTRIBUTIONS: THIS CATEGORY INCLUDES FUNDS AND IN-KIND SERVICES DONATED BY PIH HEALTH TO COMMUNITY ORGANIZATIONS OR TO THE COMMUNITY-AT-LARGE FOR A COMMUNITY BENEFIT PURPOSE. THESE DONATIONS INCLUDE DONATIONS TO COMMUNITY ORGANIZATIONS, HOURS CONTRIBUTED BY STAFF TO THE COMMUNITY WHILE ON PIH HEALTH WORK TIME, THE COST OF MEETING SPACE PROVIDED TO COMMUNITY GROUPS, AND THE DONATIONS OF FOOD, EQUIPMENT, MEDICATIONS, AND SUPPLIES. TOTAL NUMBER OF PERSONS SERVED BY ALL CATEGORIES: 5,877FOR ADDITIONAL INFORMATION, PLEASE REFER TO PIH HEALTH'S COMMUNITY BENEFIT REPORT AT PIHHEALTH.ORG/CBANNUALREPORT 111342601 1 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 53 0 1 1402 1 0 0 0 0 0 0 0 0 0 0 0 X 17 15 1 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X RONALD YOSHIHARA 5626980811 12102 WASHINGTON BLVD WHITTIER CA 90606 EFRAIN ACEVES SECRETARY & DIRECTOR 1.50 3.00 X X 0 0 0 RICHY AGAJANIAN MD DIRECTOR 1.50 0.00 X 0 0 0 DONALD ALVARADO DIRECTOR 1.50 3.00 X 0 0 0 RICHARD ATWOOD VICE CHAIR & DIRECTOR 1.50 4.50 X X 0 0 0 JAMES BALL DIRECTOR 1.50 1.50 X 0 0 0 PAULA COWAN DIRECTOR 1.50 3.00 X 0 0 0 JANE DICUS TREASURER & DIRECTOR 1.50 4.50 X X 0 0 0 J PATRICK DROHAN DIRECTOR 1.50 3.00 X 0 0 0 LEON M N GARCIA DIRECTOR 1.50 3.00 X 0 0 0 THOMAS KING DIRECTOR 1.50 3.00 X 0 0 0 MARK MINKES MD DIRECTOR 1.50 0.00 X 379875 0 0 ANGEL MUNOZ DIRECTOR 1.50 3.00 X 0 0 0 SANATKUMAR PATEL MD DIRECTOR 1.50 0.00 X 0 0 0 NORMA PROVENCIO DIRECTOR 1.50 3.00 X 0 0 0 DREW SONES DIRECTOR 1.50 4.50 X 0 0 0 KENTON WOODS CHAIRMAN & DIRECTOR 1.50 3.00 X X 0 0 0 HUEY-MIN YU DIRECTOR 1.50 3.00 X 0 0 0 BRIAN SMOLSKIS COO 40.00 0.00 X 181496 0 8337 JOSEFINA VELARDE RN SUPERVISOR 40.00 0.00 X 201944 0 7440 LELA ROSALES RN SUPERVISOR 40.00 0.00 X 195736 0 26320 JOSE CORTEZ LEAD RAD TECH 40.00 0.00 X 177171 0 5849 NOEMI GUEVARRA RN SUPERVISOR 40.00 0.00 X 176200 0 17898 LINDA BUDDINE RN SUPERVISOR 40.00 0.00 X 175539 0 15519 WILLIAM STEIN FORMER VP ANCIL OPER 40.00 0.00 X 160621 0 8948 KENNETH STROPLE FORMER RESIDENT & CEO 40.00 0.00 X 2058193 0 13243 ROBERT FULLER FORMER VP & COO 40.00 0.00 X 1585982 0 19740 5292757 0 123294 114 1 1 0 ARNOLD & PORTER LLP 777 SOUTH FIGUEROA ST 44TH FLOOR LOS ANGELES CA 90017 LEGAL SERVICES 1692189 SOUTHLAND MGMT GROUP INC 3300 ESOUTH ST STE 308 LONG BEACH CA 90805 HEMODIALYSIS 951030 DOWNEY ANESTHESIA MEDICAL GROUP C/O ABEO WESTERN DIV PO BOX 1809 ORANGE CA 92856 ANESTHETIC SERVICES 730471 HEALTH ADVOCATES 14721 CALIFA STREET SHERMAN OAKS CA 91411 COLLECTION AGENCY SERVICE 403567 MARK MINKES MD 11480 BROOKSHIRE AVE STE 111 DOWNEY CA 90241 ER ONCALL SERVICE 379875 16 NET PATIENT REVENUE 621110 126420230 126420230 HOSPITAL FEE PROGRAM 900099 4181412 4181412 FOOD SERVICES 900099 370035 370035 MED TRAINING PROGRAM REVENUE 624100 79952 79952 COMMUNITY ED REVENUE 624100 27397 27397 131079026 32562 32562 VENDOR SETTLEMENTS 900099 1121799 1121799 OTHER INCOME 900099 301205 301205 VENDING MACHINE 900099 13876 13876 1436880 132548468 131079026 0 1469442 X 754194 552401 201793 61759835 49152888 12606947 13500 13500 15565199 13311391 2253808 3859478 3071648 787830 24000 24000 372836 372836 106226 106226 15558 15558 14085454 8287306 5798148 3413317 2269492 1143825 4476994 3671135 805859 2829688 269076 2560612 64728 31282 33446 1328042 1328042 7010162 6820472 189690 864011 864011 MEDICAL SUPPLIES 17668672 16746734 921938 0 QUALITY ASSURANCE FEE 4181411 4181411 0 0 PURCHASED SERVICES 1114159 1048024 66135 0 EQUIPMENT LEASES 437615 175154 262461 0 817367 388645 428722 140762446 111342601 29419845 0 103486 3755803 1361198 102768 18534184 16641833 1974093 2047010 4554819 8977194 70450418 7128998 18789724 63321420 1637033 24582899 5555218 71537436 100401246 46362416 13692197 11594791 0 57292046 0 23133684 142079552 138382937 155771749 X -66845501 -55370503 0 0 -66845501 -55370503 71537436 100401246 X -8213978 19688976 X 0 1 X 1 0 X 1 15558 15558 0 PART II-B, LINE 1: A PORTION OF DUES PAID TO HOSPITAL ASSOCIATION OF SOUTHERN CALIFORNIA ARE RELATED TO LOBBYING. 15058204 15058204 30039588 881227 29158361 4638715 671344 3967371 15422929 5576427 9846502 5290982 5290982 63321420 OTHER RECEIVABLES 4057188 HOSPITAL FEE PROGRAM RECEIVABLE 1498030 5555218 CURRENT PORTION - CAPITAL LEASES 447386 CURRENT PORTION - BK LIABILITY 2419850 HOSPITAL FEE PROGRAM PAYABLE 1140814 SELF-INSURANCE RESERVES 12214377 BANKRUPTCY PAYABLE 8873368 OTHER LIABILITY 434378 INTERCOMPANY PAYABLE 116549379 142079552 X PART X, LINE 2: THE COMPANY MEASURES LIABILITIES FOR UNRECOGNIZED TAX UNCERTAINTIES IN ACCORDANCE WITH ASC 740, INCOME TAXES, WHICH PRESCRIBES A COMPREHENSIVE MODEL FOR HOW A COMPANY SHOULD RECOGNIZE, MEASURE, PRESENT, AND DISCLOSE IN ITS FINANCIAL STATEMENTS UNCERTAIN TAX POSITIONS THAT A COMPANY HAS TAKEN OR EXPECTS TO TAKE ON A TAX RETURN. THE COMPANY HAS NOT RECORDED A LIABILITY FOR UNRECOGNIZED TAX UNCERTAINTIES IN 2014 OR 2013. 1 1 X 1 X 1 X 1 1 0 1 1 490 676747 374848 301899 0.00220 25954 36144913 18540815 17604098 0.12800 757 942034 280534 661500 0.00480 27201 37763694 19196197 18567497 0.13500 9 2704 1069257 9147 1060110 0.00770 3 2315 3063359 1615931 1447428 0.01050 2 498 235660 235660 0.00170 1 360 1852 1852 0.00000 15 5877 4370128 1625078 2745050 0.01990 15 33078 42133822 20821275 21312547 0.15490 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 1 3242336 34121236 35059402 -938166 X 1 1 1 1 DOWNEY REGIONAL MEDICAL CNTR HOSPITAL 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 930000048 X X X DOWNEY REGIONAL MEDICAL CENTER HOSPITAL 1 1 X X X X X X X X X 13 1 0 1 X PIHHEALTH.ORG/CHNA X X X X X X X X X X 0 0 1 1 100.000000000000 1 400.000000000000 1 X X X X X X X 1 1 X X X X X X 1 0 X X X X 1 X 0 0 DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 3: PRIMARY DATA COLLECTION CONSISTED OF INTERVIEWS AND FOCUS GROUPS, REGARDING PERCEPTIONS AND OPINIONS OF THOSE REPRESENTING THE BROAD INTERESTS OF THE COMMUNITIES IN PIH HEALTH HOSPITAL - DOWNEY'S PRIMARY SERVICE AREA. KEY STAKEHOLDER INTERVIEWSKEY COMMUNITY STAKEHOLDERS, IDENTIFIED BY PIH HEALTH AND LOCAL PARTNERS, WERE CONTACTED AND ASKED TO PARTICIPATE IN THE NEEDS ASSESSMENT THROUGH TELEPHONE INTERVIEWS. TEN INTERVIEWS WERE CONDUCTED DURING THE MONTHS OF DECEMBER 2013 AND JANUARY 2014. THE COMMUNITY STAKEHOLDERS WHO PARTICIPATED IN THIS NEEDS ASSESSMENT REPRESENTED A CROSS-SECTION OF AGENCIES REPRESENTING A BROAD RANGE OF HEALTH AND SOCIAL SERVICES IN THE PRIMARY SERVICE AREA. INTERVIEW PARTICIPANTS INCLUDED LEADERS AND REPRESENTATIVES OF MEDICALLY UNDERSERVED, LOW-INCOME AND MINORITY POPULATIONS, AS WELL AS REGIONAL, STATE, OR LOCAL HEALTH DEPARTMENTS THAT HAVE "CURRENT DATA OR INFORMATION RELEVANT TO THE HEALTH NEEDS OF THE COMMUNITY SERVED BY THE HOSPITAL FACILITY," PER IRS REQUIREMENTS. COMMUNITY FOCUS GROUPS THREE FOCUS GROUPS WERE ALSO CONDUCTED AS PART OF THE NEEDS ASSESSMENT DURING THE MONTHS OF DECEMBER 2013 AND JANUARY 2014. PARTICIPANTS INCLUDE MEMBERS OF MEDICALLY UNDERSERVED POPULATIONS AND PERSONS REPRESENTING THE BROAD INTEREST OF THE COMMUNITY. THE FOCUS GROUPS ENGAGED 41 PARTICIPANTS. TWO FOCUS GROUPS WERE CONDUCTED IN SPANISH AND ONE IN ENGLISH. A LIST OF THE STAKEHOLDER INTERVIEW AND FOCUS GROUP RESPONDENTS, AND A SUMMARY OF RESULTS CAN BE FOUND IN THE 2013-2014 COMMUNITY HEALTH NEEDS ASSESSMENT AT PIHHEALTH.ORG/CHNA. DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 5D: IN ADDITION TO POSTING ON THE HOSPITAL'S WEBSITE, ASSESSMENT FINDINGS WERE ALSO DISTRIBUTED TO KEY STAKEHOLDERS VIA EMAIL, AS WELL AS SHARED WITH THE COMMUNITY AT-LARGE, WITH EMPHASIS ON PROVIDING COMMUNITY-BASED ORGANIZATIONS WITH INFORMATION THAT WILL SUPPORT PROGRAM PLANNING AND FUND-DEVELOPMENT ENDEAVORS, WHILE SPARING THE EXPENSE OF DUPLICATIVE DATA COLLECTION EFFORTS. ASSESSMENT FINDINGS AND IMPLEMENTATION STRATEGY INITIATIVES WERE ALSO SHARED AND COMMUNITY DIALOGUE ENCOURAGED THROUGH COMMUNITY EVENTS AND PRESENTATIONS. DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 7: SOME OF THE IDENTIFIED SIGNIFICANT HEALTH NEEDS INCLUDED INSURANCE COVERAGE / AFFORDABILITY FOR DENTAL CARE AND MENTAL HEALTH, CANCER AND SMOKING. PIH HEALTH WILL NOT FOCUS THE STRATEGIC EFFORTS OF THE 2014-2016 COMMUNITY HEALTH IMPROVEMENT IMPLEMENTATION STRATEGY ON THESE NEEDS. EXISTING WORK WILL CONTINUE IN THESE AREAS WHERE APPLICABLE AND REFERRAL RELATIONSHIPS WITH COMMUNITY-BASED AGENCIES ALREADY WORKING IN THESE AREAS WILL BE STRENGTHENED. PIH HEALTH MADE A DECISION TO FOCUS ON NEEDS DETERMINED TO BE EITHER MORE SIGNIFICANT WHEN COMPARED TO LOCAL AND NATIONAL BENCHMARKS AND/OR AREAS IN WHICH PIH HEALTH HAS EXPERTISE AND RESOURCES TO EFFECTIVELY ADDRESS THE NEED. ACCESS TO DENTAL CARE: PIH HEALTH HAS NEITHER THE EXPERTISE NOR THE INFRASTRUCTURE TO SERVE AS A LEAD AROUND THIS HEALTH NEED. PIH HEALTH WILL CONTINUE TO PARTNER WITH COMMUNITY ORGANIZATIONS THAT EFFECTIVELY ADDRESS THIS AREA OF NEED.ACCESS TO MENTAL HEALTHCARE: PIH HEALTH HAS NEITHER THE EXPERTISE NOR THE INFRASTRUCTURE TO SERVE AS A LEAD AROUND THIS HEALTH NEED. PIH HEALTH, AS PART OF ITS INTEGRATED DELIVERY SYSTEM, WILL CONTINUE TO IDENTIFY FREE OR LOW-COST MENTAL HEALTH PROVIDERS TO STRENGTHEN AND FACILITATE RELATIONSHIPS WITH THOSE ORGANIZATIONS ADDRESSING THIS AREA OF NEED. CANCER: FOR THE TIMEFRAME OF THIS REPORT, PIH HEALTH HOSPITAL - DOWNEY DOES NOT YET HAVE THE INFRASTRUCTURE IN PLACE TO SERVE AS A LEAD AROUND THIS HEALTH NEED. WHILE STILL IN THE PLANNING PHASE, COMMUNITY MEMBERS IN NEED OF RESOURCES AND CARE TO ADDRESS THIS NEED WILL BE REFERRED TO PIH HEALTH HOSPITAL - WHITTIER, WHICH HAS AN EXTENSIVE NETWORK OF SERVICES AND OTHER PROVIDERS AS APPROPRIATE.SMOKING: PIH HEALTH HAS NEITHER THE EXPERTISE NOR THE INFRASTRUCTURE TO SERVE AS A LEAD AROUND THIS HEALTH NEED. PIH HEALTH WILL CONTINUE TO PARTNER WITH COMMUNITY ORGANIZATIONS THAT EFFECTIVELY ADDRESS THIS AREA OF NEED. DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 14G: FPG IS PUBLICIZED AS FOLLOWS: - SELF-PAY PATIENTS RECEIVE A PACKET WITH A COVER LETTER AND A FINANCIAL ASSISTANCE AND MEDI-CAL APPLICATION AT SERVICE; - THE HOSPITAL LIMITS ITS CHARGES FOR MEDICALLY NECESSARY CARE PROVIDED TO FINANCIAL ASSISTANCE POLICY ELIGIBLE INDIVIDUALS TO NO MORE THAN "AMOUNTS GENERALLY BILLED TO INDIVIDUALS WHO HAVE INSURANCE COVERING SUCH CARE". STATEMENTS TO THE UNINSURED REFLECT SIGNIFICANT SELF-PAY DISCOUNTS THAT EQUATE TO CONTRACTED MEDICARE ADVANTAGE RATES (OR LESS) AND A NOTICE THAT THE PATIENT MAY BE ELIGIBLE FOR STATE AND/OR UNCOMPENSATED CARE PROGRAMS; - SIGNS ARE POSTED THROUGHOUT THE FACILITY TO PROVIDE EDUCATION ABOUT CHARITY POLICIES; - THE HOSPITAL WEBSITE INCLUDES A COPY OF THE POLICY AND APPLICATIONS IN ENGLISH AND SPANISH. DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 18E: 1. SELF-PAY PATIENTS RECEIVE A FREE PACKET WITH A COVER LETTER AND FINANCIAL ASSISTANCE AND MEDI-CAL APPLICATION AT SERVICE;2. AN ELIGIBILITY VENDOR ATTEMPTS TO CONTACT UNINSURED PATIENTS TO HELP THEM APPLY FOR MEDICAID;3. THE EARLY OUT SELF-PAY VENDOR TELLS PATIENTS ABOUT CHARITY IF THEY CANNOT PAY. DOWNEY REGIONAL MEDICAL CENTER HOSPITAL, INC. PART V, SECTION B, LINE 20D: THE HOSPITAL AUTOMATICALLY EXTENDED ITS NEGOTIATED RATES OR LOWER WITH A MEDICARE ADVANTAGE PLAN TO ALL UNINSURED PATIENTS. IN ADDITION, PATIENTS ARE PROVIDED WITH FINANCIAL ASSISTANCE AND MEDI-CAL APPLICATIONS. THOSE WHO QUALIFY FOR FINANCIAL ASSISTANCE RECEIVE FURTHER REDUCTIONS TO THEIR BILL AS OUTLINED BELOW. AMOUNT OF CHARITY CARE DETERMINATION BASED ON:METHODOLOGY: PIH HEALTH HOSPITAL USES THE "SLIDING SCALE METHOD" TO DETERMINE THE DOLLAR AMOUNT TO BE CONSIDERED AS CHARITY CARE/FINANCIAL ASSISTANCE FOR ELIGIBLE PATIENTS. CHARITY CARE: PATIENT APPLICATIONS THAT SHOW THAT FAMILY INCOME AT OR BELOW 100% OF FEDERAL POVERTY GUIDELINES (FPL) WILL BE APPROVED FOR NO-COST TO THE PATIENT. DISCOUNTED CHARITY CARE: PATIENT APPLICATIONS THAT SHOW THAT FAMILY INCOME BETWEEN 101% AND 400% FPL WILL BE GRANTED THE LESSOR OF THE SELF-PAY RATE OR A DISCOUNT BASED ON THE PATIENTS'S FPL. PATIENT LIABILITY IS BASED ON THE LESSER OF - BILLED CHARGES; - THE CASH DISCOUNT RATE (BASED ON THE RATES OF A MEDICARE ADVANTAGE AGREEMENT, OR LESS); - 10% OF THE PATIENT'S ANNUAL INCOME; OR; - THE AMOUNT OUTLINED ABOVE. PART I, LINE 6A: PIH HEALTH FILES ITS COMMUNITY BENEFIT REPORT WITH THE STATE OF CALIFORNIA IN ACCORDANCE WITH CALIFORNIA SENATE BILL 697 (SB 697), WHICH REQUIRES ANNUAL DOCUMENTATION OF COMMUNITY BENEFIT PROGRAMS AND SERVICES. THIS ANNUAL COMMUNITY BENEFIT REPORT IS SUBMITTED TO OFFICE OF STATEWIDE HEALTH PLANNING & DEVELOPMENT (OSHPD), HEALTHCARE INFORMATION DIVISION. THIS REPORT INCLUDES ACTIVITIES OF PIH HEALTH HOSPITAL - WHITTIER, PIH HEALTH HOSPITAL - DOWNEY, AND PIH HEALTH PHYSICIANS. PART I, LINE 7: THE METHODOLOGY FOR CALCULATING UNPAID COSTS IN GOVERNMENT PROGRAMS, CARE FOR THE UNINSURED, AND CHARITY CARE IS BASED ON DOWNEY REGIONAL MEDICAL CENTER'S PAYOR-SPECIFIC COST-TO-CHARGE RATIOS, OFFSET BY (ANY) ACTUAL PAYMENTS RECEIVED. PHYSICIAN SERVICES INCLUDE BACKUP SERVICES IN THE EMERGENCY AND SURGICAL AREAS TO COVER THE COST OF PHYSICIANS ON CALL FOR UNINSURED PATIENTS. PSYCHIATRIC SERVICES INCLUDE THOSE PROVIDED TO HOSPITALIZED PATIENTS. UNREIMBURSED COSTS MAY INCLUDE AN HOURLY RATE FOR LABOR AND ACTUAL COSTS FOR SUPPLIES, MATERIALS AND OTHER PURCHASED SERVICES. ANY OFFSETTING REVENUE IS DEDUCTED FROM THE COSTS OF PROVIDING SERVICES. UNREIMBURSED COSTS WERE ESTIMATED BY EACH DEPARTMENT RESPONSIBLE FOR PROVIDING THE PROGRAM/SERVICE. THE PAYOR-SPECIFIC COST-TO-CHARGE SYSTEM COVERS ALL PATIENT SEGMENTS, E.G. INPATIENT, OUTPATIENT, SELF-PAY, UNINSURED, MEDICARE AND MEDICAID, ETC. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 3,242,336. PART III, LINE 8: THE HOSPITAL PREPARES MEDICARE COST REPORTS IN ACCORDANCE WITH PROVIDER REIMBURSEMENT MANUAL (PRM) SECTION 2150FF AND PRM 15-2, SECTION 1000FF, AS FOLLOWS:TOTAL ALLOWANCE COSTS OF A PROVIDER ARE APPORTIONED BETWEEN PROGRAM BENEFICIARIES AND OTHER PATIENTS SO THAT THE SHARE BORNE BY THE PROGRAM IS BASED UPON ACTUAL SERVICES RECEIVED BY PROGRAM BENEFICIARIES. THE RATIO OF COVERED BENEFICIARY CHARGES TO TOTAL PATIENT CHARGES FOR THE SERVICES OF EACH ANCILLARY DEPARTMENT IS APPLIED TO THE COST OF THE DEPARTMENT. ADDED TO THIS AMOUNT IS THE COST OF ROUTINE SERVICES FOR PROGRAM BENEFICIARIES, DETERMINED ON THE BASIS OF A SEPARATE AVERAGE COST PER DIEM FOR ALL PATIENTS FOR GENERAL ROUTINE PATIENT CARE AREAS. IN HOSPITALS, ANOTHER FACTOR TO BE CONSIDERED IS A SEPARATE AVERAGE COST PER DIEM FOR EACH INTENSIVE CARE UNIT, CORONARY CARE UNIT, AND OTHER SPECIAL CARE INPATIENT HOSPITAL UNITS. PART III, LINE 9B: THESE POLICIES ARE EXPLAINED IN COMPANY POLICIES 85300.600 CHARITY CARE, 85300.098 BAD DEBT, 85300.602 SELF- PAY DISCOUNT PROGRAM. THE HOSPITAL ENCOURAGES ALL SELF-PAY PATIENTS TO APPLY FOR FINANCIAL ASSISTANCE OR OTHER PROGRAMS. 1. ALL UNINSURED PATIENTS ARE ASSUMED TO NEED FINANCIAL ASSISTANCE AND AUTOMATICALLY RECEIVE DISCOUNTED BILLS THAT REFLECT THE CONTRACT RATE OR LESS OF A MEDICARE ADVANTAGE CONTRACT.2. ALL UNINSURED PATIENTS ARE PROVIDED WITH A FINANCIAL ASSISTANCE AND MEDICAID APPLICATION AT THE TIME OF REGISTRATION THEREBY GIVING THEM THE OPPORTUNITY TO APPLY FOR ASSISTANCE. 3. THERE ARE SIGNS THROUGHOUT THE FACILITY THAT EDUCATE PATIENTS AND VISITORS ABOUT THE AVAILABILITY OF FINANCIAL ASSISTANCE. 4. THE HOSPITAL'S WEBSITE PUBLISHES THE FINANCIAL ASSISTANCE POLICY AND APPLICATIONS.5. SELF-PAY INPATIENTS ALSO MAY BE CONTACTED BY A VENDOR TO OFFER ASSISTANCE IN APPLYING FOR MEDICAID, IF ELIGIBLE. 6. STATEMENTS (WHICH REFLECT A REDUCTION IN CHARGES TO THE RATES AT OR LOWER THAN CONTRACTED RATES FOR MEDICARE ADVANTAGE MEMBERS) PROMOTE THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM.7. ONLY PATIENTS WHO DO NOT QUALIFY FOR FURTHER FINANCIAL ASSISTANCE (AFTER DISCOUNTS) OR WHO DO NOT APPLY FOR PROGRAMS AND DO NOT PAY ARE REFERRED TO COLLECTION. IN ADDITION, IF A PATIENT IS REFERRED TO COLLECTION AND LATER APPLIES FOR FINANCIAL ASSISTANCE AND QUALIFIES, THE PATIENT'S ACCOUNT IS RETURNED TO THE HOSPITAL AND FINANCIAL ASSISTANCE IS EXTENDED. PART VI, LINE 3: FINANCIAL ASSISTANCE, OR CHARITY CARE, IS DEFINED AS FREE OR DISCOUNTED HEALTH SERVICES PROVIDED TO PERSONS WHO CANNOT AFFORD TO PAY AND WHO MEET THE ELIGIBILITY CRITERIA OF THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY. FINANCIAL ASSISTANCE IS REPORTED IN TERMS OF COSTS, NOT CHARGES, AND DOES NOT INCLUDE BAD DEBT.PIH HEALTH OFFERS A GENEROUS FINANCIAL ASSISTANCE PROGRAM, PROVIDING CHARITY CARE TO THOSE WITH FAMILY INCOME(S) AT OR BELOW 400% OF FEDERAL POVERTY LEVEL GUIDELINES. DURING FISCAL YEAR 2013-2014, A TOTAL OF $301,899 IN FINANCIAL ASSISTANCE WAS PROVIDED TO 490 INDIVIDUALS, ENSURING ACCESS TO NEEDED HEALTHCARE SERVICES, REGARDLESS OF ABILITY TO PAY.FOR FY 2012-2013, PIH HEALTH'S REPORTABLE FINANCIAL ASSISTANCE ENCOMPASSES THE FOLLOWING PROGRAM: CHARITY CARE PROGRAM (BASED ON POLICY NO. 85300.600)PIH HEALTH OFFERS A GENEROUS FINANCIAL ASSISTANCE PROGRAM, PROVIDING CHARITY CARE TO THOSE WITH FAMILY INCOME(S) WITHIN 400% OF THE 2012 FEDERAL POVERTY LEVEL GUIDELINES. PER PIH HEALTH'S CHARITY CARE POLICY, THOSE WHO WOULD QUALIFY UNDER THIS PROGRAM INCLUDE: - UNINSURED PATIENTS WHO DO NOT HAVE THE ABILITY TO PAY AS DETERMINED BY THE FINANCIAL GUIDELINES STATED IN THE CHARITY CARE POLICY; - PATIENTS WHO HAVE RESTRICTED MEDI-CAL EMERGENCY AND PREGNANCY SERVICES COVERAGE (AND NO SHARE OF COST) AND WHOSE SERVICES ARE NOT COVERED FOR A PARTICULAR EPISODE OR PARTIAL EPISODE OF CARE. (AN UNCOMPENSATED CARE APPLICATION IS NOT REQUIRED SINCE THE PATIENT IS PRESUMED TO MEET THE CHARITY CARE ELIGIBILITY REQUIREMENTS); - THERE ARE INSTANCES WHEN A PATIENT MAY APPEAR ELIGIBLE FOR CHARITY CARE DISCOUNTS, BUT THERE IS NO FINANCIAL ASSISTANCE FORM ON FILE DUE TO A LACK OF SUPPORTING DOCUMENTATION. PRESUMPTIVE ELIGIBILITY MAY BE DETERMINED ON THE BASIS OF INDIVIDUAL LIFE CIRCUMSTANCES THAT MAY INCLUDE, BUT ARE NOT LIMITED TO:O STATE-FUNDED PRESCRIPTION PROGRAMS; O HOMELESS OR RECEIVED CARE FROM A HOMELESS CLINIC OR SHELTER; O PARTICIPATION IN WOMEN, INFANTS AND CHILDREN PROGRAMS (WIC);O FOOD STAMP ELIGIBILITY; O SUBSIDIZED SCHOOL LUNCH PROGRAM ELIGIBILITY; O LOW INCOME/SUBSIDIZED HOUSING IS PROVIDED AS A VALID ADDRESS; AND O PATIENT IS DECEASED WITH NO KNOWN ESTATE; ANDO PATIENTS WHO ARE CURRENTLY ELIGIBLE FOR MEDI-CAL, BUT WERE NOT ELIGIBLE IN ONE TO THREE MONTHS PRIOR TO ELIGIBILITY ARE PRESUMED TO BE ELIGIBLE FOR CHARITY AND DO NOT NEED TO FILL OUT THE APPLICATION.O INSURED PATIENTS WHOSE COVERAGE IS INADEQUATE TO COVER A CATASTROPHIC SITUATION;O PERSONS WHOSE INCOME IS SUFFICIENT TO PAY FOR BASIC LIVING COSTS BUT NOT MEDICAL CARE, AND ALSO THOSE PERSONS WITH GENERALLY ADEQUATE INCOMES WHO ARE SUDDENLY FACED WITH CATASTROPHICALLY LARGE MEDICAL BILLS;O PATIENTS WHO DEMONSTRATE ABILITY TO PAY PART BUT NOT ALL OF THEIR LIABILITY. FOR EXAMPLE, THOSE WHO HAVE AN OUT OF POCKET THAT EXCEEDS 10% OF THEIR ANNUAL NET FAMILY INCOME IN THE PRIOR TWELVE MONTHS. SELF-PAY PAYMENT PROGRAMADDITIONALLY, UNDER THE PIH HEALTH SELF-PAY PAYMENT PROGRAM, PATIENTS WHO ARE UNINSURED OR HAVE VERY LIMITED BENEFITS ARE AUTOMATICALLY GIVEN A BILL REDUCTION REFLECTIVE OF OR LESS THAN THE HEALTHY FAMILIES RATE WITH A CONTRACTED PLAN; NO PRE-QUALIFICATION IS NECESSARY. IF A PATIENT CANNOT PAY THE ENTIRE DISCOUNTED OBLIGATION AND DOES NOT QUALIFY FOR GOVERNMENT OR HOSPITAL PROGRAMS, PIH HEALTH WILL EXTEND REASONABLE NO-INTEREST PAYMENTS. THIS PROGRAM IS ESPECIALLY OF BENEFIT TO THOSE APPLYING FOR PIH HEALTH'S CHARITY CARE OR OTHER PUBLIC MEANS-TESTED HEALTHCARE PROGRAMS AND AWAITING ELIGIBILITY DETERMINATION. UNINSURED PATIENTS ARE EDUCATED ABOUT THE SELF-PAY PAYMENT PROGRAM PRIOR TO OR AT REGISTRATION/ADMISSION (OR AFTER AN EMERGENCY DEPARTMENT PATIENT HAS BEEN MEDICALLY SCREENED AND STABILIZED).ADDITIONAL PATIENT EDUCATION REGARDING PIH HEALTH'S FINANCIAL ASSISTANCEIT IS IMPORTANT TO NOTE THAT, REGARDLESS OF ABILITY TO PAY, APPROPRIATE CLINICAL STAFF ESTABLISH A PLAN OF CARE, ORDER MEDICALLY NECESSARY TREATMENT, SERVICES AND MEDICATIONS, IN ORDER TO STABILIZE ALL PATIENTS. ONCE STABILIZED, BILINGUAL (ENGLISH & SPANISH) FINANCIAL COUNSELORS OR OTHER APPROPRIATE STAFF WORK WITH ELIGIBLE PATIENTS IN APPLYING FOR PIH HEALTH'S CHARITY CARE OR OTHER GOVERNMENT MEANS-TESTED PROGRAMS. IN ACCORDANCE WITH CALIFORNIA'S FAIR PRICING LAW FOR LOW-INCOME, UNINSURED INDIVIDUALS, PIH HELATH POSTS NOTICES IN BOTH ENGLISH AND SPANISH WITH INFORMATION REGARDING ITS CHARITY CARE POLICY IN SETTINGS THAT ARE HIGHLY VISIBLE TO THE PUBLIC, SUCH AS THE EMERGENCY DEPARTMENT, BILLING/CASHIER OFFICE, PATIENT REGISTRATION, AS WELL AS VARIOUS ANCILLARY DEPARTMENTS AND OUTPATIENT FACILITIES. UNINSURED PATIENTS ALSO RECEIVE A LETTER IN ENGLISH AND/OR SPANISH, WHICH DETAILS THE VARIOUS PROGRAMS FOR WHICH THEY MAY BE ELIGIBLE. THE UNCOMPENSATED CARE APPLICATION IS ALSO AVAILABLE ON THE PIH HEALTH WEBSITE. IN ADDITION, THE BELOW STATEMENT APPEARS ON ALL PATIENT BILLING STATEMENTS IN ENGLISH AND SPANISH:"PLEASE PAY THE BALANCE DUE. IF YOU CANNOT PAY THE ENTIRE BALANCE, PLEASE CALL TO SET UP INSTALLMENT PAYMENTS. IF YOU ARE UNABLE TO PAY ALL OR PART OF YOUR BALANCE AND YOUR FAMILY INCOME IS WITHIN 400% OF FEDERAL POVERTY LIMITS, PLEASE CALL AND REQUEST AN UNCOMPENSATED CARE APPLICATION." PART VI, LINE 4: PIH HEALTH HOSPITAL - DOWNEY IS SITUATED IN THE SOUTHEAST PORTION OF LOS ANGELES COUNTY, WITHIN AN AREA REFERRED TO AS SERVICE PLANNING AREA 7 (SPA 7) AND SPA 6. THE SERVICE AREA WAS DETERMINED BY HOSPITAL DISCHARGE DATA OBTAINED THROUGH THE OFFICE OF STATEWIDE HEALTH PLANNING AND DEVELOPMENT, WHICH INCLUDED ALL WHO RECEIVED CARE WITHOUT REGARD TO INSURANCE COVERAGE OR ELIGIBILITY FOR FINANCIAL ASSISTANCE. APPROXIMATELY 82.2% OF PIH HEALTH HOSPITAL - DOWNEY'S INPATIENT DISCHARGES COME FROM THE 18 CITIES/COMMUNITIES NOTED BELOW. PRIMARY SERVICE AREAARTESIA 90701BELL 90201BELLFLOWER 90706BELL GARDENS 90201-90202CERRITOS 90703COMMERCE 90040COMPTON 90221CUDAHY 90201DOWNEY 90240-90242HUNTINGTON PARK 90255LYNWOOD 90262LOS ANGELES 90001MAYWOOD 90270NORWALK 90650PARAMOUNT 90723PICO RIVERA 90660SANTA FE SPRINGS 90670 SOUTH GATE 90280PRIMARY SERVICE AREA PROFILETHE POPULATION FOR PIH HEALTH HOSPITAL - DOWNEY'S PRIMARY SERVICE AREA IS 983,011. CHILDREN AND YOUTH (AGES 0-17) MAKE UP 29.9% OF THE POPULATION; OLDER ADULTS (AGES 65+) MAKE UP 8.5% OF THE POPULATION. THE LARGEST POPULATION BY RACE AND ETHNICITY IN THE SERVICE AREA IS HISPANIC OR LATINO (77.9%). WHITE/CAUCASIANS MAKE UP 8% OF THE POPULATION. ASIANS COMPRISE 7.2% OF THE POPULATION, AND AFRICAN AMERICANS, NATIVE AMERICANS, HAWAIIANS, AND OTHER RACES COMBINED TOTAL 6.9% OF THE POPULATION. IN THE SERVICE AREA, SPANISH IS SPOKEN IN 68.8% OF THE HOMES, HIGHER THAN THE NUMBER OF SPANISH SPEAKING HOUSEHOLDS IN THE COUNTY AND THE STATE. THE MEDIAN HOUSEHOLD INCOME IN THE SERVICE AREA RANGES FROM $36,386 IN LOS ANGELES (90001) TO $87,522 IN CERRITOS. THE AVERAGE FAMILY SIZE RANGES FROM 3.54 INDIVIDUALS IN CERRITOS TO 4.73 INDIVIDUALS IN COMPTON (90221).IN THE SERVICE AREA, 54.8% OF THE ADULT POPULATION, 25 YEARS AND OLDER, HAVE OBTAINED A HIGH SCHOOL DIPLOMA OR HIGHER EDUCATION. THE SERVICE AREA HAS A HIGHER UNEMPLOYMENT RATE (15%) THAN THE COUNTY AND THE STATE. IN THE SERVICE AREA, 17.9% OF THE POPULATION IS AT POVERTY LEVEL, GREATER THAN THE COUNTY RATE. IN SPA 7, 43.6% OF RESIDENTS ARE NOT ABLE TO AFFORD FOOD AND 16.1% UTILIZE FOOD STAMPS. ACCORDING TO THE LOS ANGELES HOMELESS SERVICES AUTHORITY COUNT, THE PERCENTAGE OF HOMELESS FAMILIES GREW FROM 19% IN 2011 TO 21% IN 2013. HEART DISEASE, CANCER, AND STROKE ARE THE THREE LEADING CAUSES OF DEATH IN SPA 7. WHEN COMPARED TO COUNTY DEATH RATES, THE AREA HAS HIGHER DEATH RATES FOR HEART DISEASE, STROKE, DIABETES, AND HYPERTENSION. THE SERVICE AREA RATES OF OBESITY EXCEED THE COUNTY RATE. PART VI, LINE 5: PIH HEALTH'S COMMUNITY BENEFIT OVERSIGHT COMMITTEE (CBOC) IS COMPRISED OF COMMUNITY STAKEHOLDERS AND A PUBLIC HEALTH REPRESENTATIVE. THE CBOC PROMOTES THE HEALTH OF THE COMMUNITY BY 1) REVIEWING AND VALIDATING LEGAL AND REGULATORY COMPLIANCE WITH RESPECT TO COMMUNITY BENEFIT MANDATES, 2) REVIEWING AND VALIDATING THAT PIH HEALTH'S COMMUNITY BENEFIT PROGRAMS AND SERVICES EFFECTIVELY MEET IDENTIFIED COMMUNITY HEALTH NEEDS, WITH EMPHASIS ON VULNERABLE POPULATIONS, AS AN ESSENTIAL EXPRESSION OF PIH HEALTH'S CHARITABLE MISSION AND 3) INCREASING PUBLIC AWARENESS OF COMMUNITY BENEFIT ACTIVITIES AND COMMUNITY VALUE. PART VI, LINE 6: HOSPITAL AFFILIATES INCLUDE: 1) INTERHEALTH CORP, PIH HEALTH'S PARENT COMPANY; 2) PIH HEALTH HOSPITAL - DOWNEY; 3) PIH HEALTH PHYSICIANS ("PHP"), A NONPROFIT MEDICAL FOUNDATION; 4) THE PIH HEALTH FOUNDATION, A NONPROFIT ORGANIZATION THAT EXISTS TO RAISE PHILANTHROPIC FUNDS IN SUPPORT OF PIH'S CHARITABLE MISSION; AND 5) MEDSITE, WHICH SUBSIDIZES THE PIH HEALTH S. MARK TAPER FOUNDATION A DAY AWAY ADULT DAY HEALTH CARE CENTER. INTERHEALTH CORP. PROVIDES TECHNICAL, FACILITY AND SUPPORT SERVICES FOR TAX-EXEMPT AFFILIATES WHOSE CHARITABLE PURPOSE IS TO PROVIDE A BROAD RANGE OF HEALTHCARE SERVICES TO THEIR COMMUNITY BY WAY OF AN INTEGRATED HEALTH CARE DELIVERY SYSTEM.PIH HEALTH HOSPITAL - WHITTIER PROVIDES THE HIGH-QUALITY HEALTHCARE OUR COMMUNITIES HAVE COME TO EXPECT. FOUNDED IN 1959 AS PRESBYTERIAN INTERCOMMUNITY HOSPITAL, THE HOSPITAL WAS BUILT TO ADDRESS THE NEED FOR CARE AFTER A POST-WORLD WAR II POPULATION BOOM. PIH HEALTH HOSPITAL - WHITTIER PROVIDES OUTSTANDING AND COMPASSIONATE CARE TO PATIENTS, EVERY DAY.PHP SUPPORTS THE LOCAL COMMUNITY THROUGH ITS FINANCIAL ASSISTANCE PROGRAM, WHITTIER FIRST DAY HEALTH & WELLNESS CENTER FOR THE HOMELESS AND THOSE AT-RISK FOR HOMELESSNESS, HEALTH PROFESSIONS EDUCATION, AND OTHER COMMUNITY HEALTH IMPROVEMENT SERVICES. PIH HEALTH FOUNDATION'S HEALTHY LIVING HEALTHY GIVING PHILANTHROPIC EFFORT RAISES FUNDS IN SUPPORT OF PIH HEALTH TO ENSURE THE HEALTH AND WELL-BEING OF OUR COMMUNITIES FOR YEARS TO COME THROUGH SUPPORTING PROGRAMS THAT DIRECTLY IMPACT THE COMMUNITY, INCLUDING PIH HEALTH'S COMMUNITY BENEFIT PROGRAMS. HEALTHY LIVING HEALTHY GIVING IS AN OPPORTUNITY FOR EVERYONE TO PLAY A ROLE IN THE OVERALL HEALTH OF THEIR FRIENDS, FAMILY, NEIGHBORS AND EVERYONE WHO LIVES, WORKS, LEARNS AND PLAYS IN OUR COMMUNITY. GIFTS BIG, SMALL AND ALL WILL SUPPORT PIH HEALTH'S WORK TO PROVIDE ACCESS TO QUALITY HEALTHCARE, SCREENINGS, PREVENTATIVE CARE, PREVENTION-FOCUSED EDUCATION AND OTHER IMPORTANT INITIATIVES. PIH HEALTH S. MARK TAPER FOUNDATION A DAY AWAY ADULT DAY HEALTH CARE CENTER (MEDSITE) HAS, SINCE 1999, PROVIDED SAFE, APPROPRIATE CARE FOR ADULTS REQUIRING CONTINUOUS DAY-TIME SUPERVISION. A DAY AWAY ENSURES AN OPPORTUNITY FOR CAREGIVERS TO MAINTAIN THEIR JOBS, CARE FOR OTHER FAMILY MEMBERS, AND ATTEND TO THE BASIC DEMANDS OF LIFE. FOR DETAILED INFORMATION REGARDING THESE PIH HEALTH AFFILIATES ADDITIONAL ACTIVITIES TO SUPPORT AND PROMOTE COMMUNITY HEALTH, PLEASE SEE EACH RESPECTIVE ORGANIZATION'S IRS FORM 990. PART VI, LINE 7, REPORTS FILED WITH STATES CA X 1 1 X X X X X X 1 0 0 0 0 0 0 0 0 MARK MINKES MD DIRECTOR 379875 0 0 0 0 0 0 0 0 0 379875 0 0 0 BRIAN SMOLSKIS COO 178496 0 0 0 3000 0 0 0 8337 0 189833 0 0 0 JOSEFINA VELARDE RN SUPERVISOR 193466 0 8478 0 0 0 0 0 7440 0 209384 0 0 0 LELA ROSALES RN SUPERVISOR 195736 0 0 0 0 0 0 0 26320 0 222056 0 0 0 JOSE CORTEZ LEAD RAD TECH 177171 0 0 0 0 0 0 0 5849 0 183020 0 0 0 NOEMI GUEVARRA RN SUPERVISOR 176200 0 0 0 0 0 0 0 17898 0 194098 0 0 0 LINDA BUDDINE RN SUPERVISOR 175539 0 0 0 0 0 0 0 15519 0 191058 0 0 0 WILLIAM STEIN FORMER VP ANCIL OPER 118054 0 0 0 42567 0 0 0 8948 0 169569 0 0 0 KENNETH STROPLE FORMER RESIDENT & CEO 319778 0 0 0 1738415 0 0 0 13243 0 2071436 0 0 0 ROBERT FULLER FORMER VP & COO 307941 0 0 0 1278041 0 0 0 19740 0 1605722 0 0 0 PART I, LINE 1A ALL EMPLOYEES ARE ELIGIBLE FOR HEALTH CLUB REIMBURSEMENT AND ANY SUCH REIMBURSEMENTS WERE INCLUDED IN TAXABLE COMPENSATION, PER 2014 PLAN YEAR BENEFITS SUMMARY. PART I, LINE 4A SEVERANCE PAYMENTS WERE INCLUDED IN OTHER REPORTABLE COMPENSATION FOR FORMER OFFICERS. THESE INCLUDED PAYMENTS OF $1,685,776 TO KENNETH STROPLE AND $1,260,000 TO ROBERT FULLER. RICHY AGAJANIAN MD OFFICER OF THE ONCOLOGY INSTITUTE OF HOPE & INNOVATION 1937081 MEDICAL SERVICES PROVIDED TO THE HOSPITAL 0 FORM 990, PART VI, SECTION A, LINE 2 JANE DICUS (DOWNEY'S BOARD MEMBER) HAS A BUSINESS RELATIONSHIP WITH ROSALIO LOPEZ, MD (DOWNEY'S OFFICER). FORM 990, PART VI, SECTION A, LINE 4 THE PIH HEALTH HOSPITAL - DOWNEY BYLAWS WERE COMPLETELY RE-WRITTEN DUE TO THE OCTOBER 1, 2013 MEMBER SUBSTITUTION BY INTERHEALTH CORPORATION ("IHC"). THE BY-LAWS WERE REWRITTEN TO MIRROR THOSE OF PIH HEALTH HOSPITAL - WHITTIER, A TAX-EXEMPT HOSPITAL IN WHICH IHC IS ALSO THE SOLE MEMBER. FORM 990, PART VI, SECTION A, LINE 6 INTERHEALTH CORP. ("IHC") IS THE SOLE MEMBER OF DOWNEY REGIONAL MEDICAL CENTER - HOSPITAL, INC (DBA: PIH HEALTH HOSPITAL - DOWNEY) FORM 990, PART VI, SECTION A, LINE 7A INTERHEALTH CORP. ("IHC") HAS AUTHORITY TO ELECT ALL THE MEMBER OF THE BOARD OF DIRECTORS OF DOWNEY REGIONAL MEDICAL CENTER - HOSPITAL, INC (DBA: PIH HEALTH HOSPITAL - DOWNEY) FORM 990, PART VI, SECTION A, LINE 7B INTERHEALTH CORP. ("IHC") HAS ALL VOTING RIGHTS AND THE POWER TO ELECT THE BOARD OF DIRECTORS OF DOWNEY REGIONAL MEDICAL CENTER - HOSPITAL, INC (DBA: PIH HEALTH HOSPITAL - DOWNEY) FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS REVIEWED BY THE AUDIT COMMITTEE OF THE PARENT ORGANIZATION, WHICH IS MADE UP OF INDEPENDENT DIRECTORS. THE FORM 990 IS THEN PROVIDED TO THE BOARD FOR ITS INFORMATION. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR, ALL MANAGEMENT AND BOARD OF DIRECTORS MEMBERS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE FORM. ALL POSITIVE RESPONSES ARE REVIEWED BY THE COMPLIANCE OFFICER. EACH POSITIVE RESPONSE IS CONSIDERED IN LIGHT OF MAGNITUDE OF OWNERSHIP INTEREST, FINANCIAL TRANSACTION(S), ETC. IF DEEMED NECESSARY, CONFLICTS OF INTEREST COULD BE RESOLVED BY INSISTING THAT THE INCUMBENT EITHER DIVEST THEIR OWNERSHIP INTEREST, THAT THE ORGANIZATION TERMINATE THE BUSINESS RELATIONSHIP, OR EVEN THAT THE DIRECTOR RESIGN. DIRECTORS WITH POTENTIAL CONFLICTS OF INTEREST MAY RECUSE THEMSELVES FROM VOTING ON CERTAIN MATTERS AND/OR MAY EXCUSE THEMSELVES FROM MEETINGS DURING THE DISCUSSION, DELIBERATION, AND VOTING ON OF MATTERS. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S EXECUTIVE COMPENSATION COMMITTEE ENGAGES AN INDEPENDENT, THIRD-PARTY, EXPERT COMPENSATION CONSULTANT TO REVIEW ITS EXECUTIVE SALARIES. THE CONSULTANT OBTAINS SPECIFIC ORGANIZATIONAL DATA FROM WHICH TO BASE ITS ANALYSIS (REVENUES, EXPENSES, EMPLOYEES, SERVICE AREA, JOB DESCRIPTIONS, ETC.). THE CONSULTANT'S ANALYSIS INCLUDES A REVIEW OF COMPENSATION TRENDS, REGULATORY ISSUES, THE ORGANIZATION'S EXECUTIVE COMPENSATION PHILOSOPHY, THE METHODOLOGY USED FOR THE ASSESSMENT, THE BASE SALARY ANALYSIS, THE INCENTIVE COMPENSATION ANALYSIS, THE TOTAL CASH COMPENSATION ANALYSIS, AND THE TOTAL COMPENSATION ANALYSIS. SALARY MOVEMENT, INCENTIVE COMPENSATION, MARKET BENEFIT, AND RECRUITMENT AND RETENTION TRENDS ARE REVIEWED. THIS ANALYSIS IS PROVIDED TO THE ORGANIZATION'S EXECUTIVE COMPENSATION COMMITTEE, WHICH IS COMPRISED OF INDEPENDENT DIRECTORS. THE EXECUTIVE COMPENSATION COMMITTEE HAS APPROVED A REGIONAL PEER GROUP THAT INCLUDES HIGH-PERFORMING, COMPARABLY-SIZED CALIFORNIA HOSPITALS AND HEALTH SYSTEMS. THE CONSULTANT COMPILES COMPARABILITY DATA FROM NATIONAL AND REGIONAL PEERS; COMPARES THE ORGANIZATION'S EXECUTIVE COMPENSATION WITH PEER GROUP COMPENSATION LEVELS; AND PREPARES A REPORT THAT INCLUDES ALL OF THE BACK-UP DATA ON COMPARABILITY, PEER GROUPS, AND JOB MATCHES. THE METHODOLOGY USED BY THE CONSULTANT WAS TWO PEER GROUPS: A NATIONAL PEER GROUP OF COMPARABLY-SIZED HOSPITALS AND SINGLE HOSPITAL SYSTEMS AND A REGIONAL PEER GROUP OF HOSPITALS AND SYSTEMS IN SOUTHERN CALIFORNIA, THE DATA OF WHICH IS PROVIDED TO THE COMMITTEE IN ITS REPORT. THE NATIONAL DATA IS USED AS THE PRIMARY COMPARATOR FOR THE ANALYSIS. THE COMMITTEE IS PRESENTED WITH CHARTS THAT COMPARE ORGANIZATION SALARIES TO THE LEVEL TARGETED IN THE COMPENSATION PHILOSOPHY. NEITHER PERFORMANCE NOR QUALIFICATIONS OF THE INCUMBENT IS CONSIDERED WHEN PROVIDING THE MARKET DATA. THE COMMITTEE IS PROVIDED WITH A REVIEW OF THE BASE SALARY ANALYSIS, A REVIEW OF THE INCENTIVE COMPENSATION ANALYSIS, A REVIEW OF THE TOTAL CASH COMPENSATION ANALYSIS (BASE SALARY PLUS INCENTIVE), AND A REVIEW OF THE TOTAL COMPENSATION ANALYSIS (BASE SALARY PLUS INCENTIVE PLUS BENEFITS/PERQUISITES). BASED UPON ALL OF THE ABOVE INFORMATION, THE CONSULTANT PROVIDES THE COMMITTEE WITH RECOMMENDED SALARY RANGES FOR THE PERIOD ASSESSED. THE EXECUTIVE COMPENSATION COMMITTEE DELIBERATES ON THE COMPARABILITY DATA TO ENSURE THAT IT IS APPROPRIATE IN REPRESENTING LIKE ORGANIZATIONS, LIKE POSITIONS, AND LIKE CIRCUMSTANCES, AND THAT IT COULD REALISTICALLY RELY ON THE COMPARABILITY DATA IN REACHING ITS DECISION THAT THE COMPENSATION IS REASONABLE AND REPRESENTS FAIR MARKET VALUE FOR SERVICES RENDERED. THE EXECUTIVE COMPENSATION COMMITTEE AFFIRMS THIS PROCESS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 WHILE FEDERAL TAX LAWS DO NOT MANDATE THAT THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS BE MADE AVAILABLE FOR PUBLIC INSPECTION, THE ORGANIZATION MAKES THESE DOCUMENTS AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PROFESSIONAL FEES - PHYSICIANS/MEDICAL: PROGRAM SERVICE EXPENSES 2,399,625. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,399,625. SUPPLIES - OTHER: PROGRAM SERVICE EXPENSES 482,922. MANAGEMENT AND GENERAL EXPENSES 105,358. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 588,280. MEDICAL PURCHASED SERVICES - OUTSIDE: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 1,107,351. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,107,351. MAINTENANCE EXPENSE: PROGRAM SERVICE EXPENSES 356,097. MANAGEMENT AND GENERAL EXPENSES 174,031. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 530,128. CPR EXPENSE: PROGRAM SERVICE EXPENSES 1,605. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,605. PUBLIC RELATIONS: PROGRAM SERVICE EXPENSES 14,306. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 14,306. OTHER PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 5,032,751. MANAGEMENT AND GENERAL EXPENSES 4,411,408. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,444,159. FORM 990, PART XI, LINE 9: ELIMINATION OF NET DEFICIT UPON 10/1/13 ACQUISITION 66,845,501. GOODWILL IMPAIRMENT -38,606,860. BANKRUPTCY/REORGANIZATION COSTS -3,838,186. GAIN/LOSS ON EARLY EXTINGUISHED DEBT -4,711,479. DOWNEY REGIONAL MEDICAL CENTER INC 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 954504845 SUPPORTING ORGANIZATION CA SECTION 501(C)(3) 11, TYPE 1 INTERHEALTH CORP 1 MEMORIAL TRUST FOUNDATION OF DOWNEY REGIONAL 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 203883428 FUNDRAISING CA SECTION 501(C)(3) 11, TYPE 1 INTERHEALTH CORP 1 PIH FOUNDATION 12401 WASHINGTON BLVD WHITTIER CA 90602 953761274 FUNDRAISING CA SECTION 501(C)(3) 7 INTERHEALTH CORP 1 IHC MANAGEMENT CORP 12401 WASHINGTON BLVD WHITTIER CA 90602 954016278 SUPPORT OF TAX-EXEMPT AFFILIATES CA SECTION 501(C)(3) 11, TYPE 1 INTERHEALTH CORP 1 INTERHEALTH HOME HEALTH CARE 12401 WASHINGTON BLVD WHITTIER CA 90602 953036281 HEALTHCARE CA SECTION 501(C)(3) 9 INTERHEALTH CORP 1 INTERHEALTH CORP 12401 WASHINGTON BLVD WHITTIER CA 90602 953619388 SUPPORT OF TAX-EXEMPT AFFILIATES CA SECTION 501(C)(3) 11, TYPE 1 INTERHEALTH CORP 0 MED SITE - HACIENDA HEIGHTS 12401 WASHINGTON BLVD WHITTIER CA 90602 953643829 HEALTHCARE CA SECTION 501(C)(3) 9 INTERHEALTH CORP 1 BRIGHT HEALTH PHYSICIANS OF PIH 12401 WASHINGTON BLVD WHITTIER CA 90602 953942828 HEALTHCARE CA SECTION 501(C)(3) 9 INTERHEALTH CORP 1 PRESBYTERIAN INTERCOMMUNITY HOSPITAL INC 12401 WASHINGTON BLVD WHITTIER CA 90602 951934652 HEALTHCARE CA SECTION 501(C)(3) 3 INTERHEALTH CORP 1 DRMC PROPERTIES 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 954769768 REAL ESTATE CA DRMC INC C 2248288 19129443 0 DRMC INSURANCE SERVICES 11500 BROOKSHIRE AVENUE DOWNEY CA 90241 953967987 INSURANCE CA DRMC INC C 0 PIH INSURANCE CO A RECIPROCAL RISK RETENTION GROUP 1003 BISHOP STREET HONOLULU HI 96813 263760243 CAPTIVE INSURANCE HI INTERHEALTH CORP T 1 PIH HEALTH CARE SOLUTIONS 6557 GREENLEAF AVENUE WHITTIER CA 90601 462072342 HEALTHCARE CA INTERHEALTH CORP C 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 1 DRMC PROPERTIES K 599784 FMV PIH INSURANCE CO R 705303 FMV