2015-11-13T13:33:17-06:00 2014-12-31 010523282 Berry Dunn McNeil & Parker LLC PO Box 1100 Portland ME 041041100 990 2014-01-01 010263198 Down East Community Hospital DOWN 2072553356 11 Hospital Drive Machias ME 04654 Lynnette Parr CFO 2072553356 2015-11-13 1 Barbara J McGuan CPA P00219457 2077752387 2015-11-13 2014 2016-02-25 16:41:14Z Ralph Gabarro 11 Hospital Drive Machias ME 04654 36217039 0 X www.dech.org X 1963 ME Acute Care Critical Access Hospital 15 12 341 40 0 0 31255 157306 32962760 33478121 600832 186850 0 0 33594847 33822277 194384 9711 0 0 19557411 20748470 0 0 0 14913784 14567407 34665579 35325588 -1070732 -1503311 24417559 21640843 13041638 13573139 11375921 8067704 X Provide access to quality healthcare and promote community wellness through the delivery of primary, emergency and ancillary inpatient and outpatient healthcare. The Hospital strives to improve the overall health of the communities we serve while exceeding customer expectations. 0 0 1997061 5257466 Surgical services to inpatients and outpatients, totaling 2,028 surgeries. 2877037 2710327 Care for medical/surgical unit patients. Unit provided care to 920 admissions for 2,857 patient days. 1748051 6834086 Imaging Services to inpatients and outpatients. 16,624 radiological exams were provided to inpatients and outpatients. 24495593 9711 18676242 Various other medical services supplied to patients. 24495593 9711 18676242 31117742 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 0 0 1 44 0 1 341 1 0 0 0 0 0 0 0 0 0 0 X 15 12 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 ME X X Lynnette Parr 2072553356 11 Hospital Drive Machias ME 04654 Blaine Jones Trustee 1.70 0.30 X 0 0 0 Cynthia Huggins PhD Past Trustee 1.70 0.30 X 0 0 0 David Whitney Chair 1.70 0.30 X X 0 0 0 Douglas Jones Past CEO 39.70 0.30 X X 315541 2641 11485 Eric Burke MD Vice Chair 1.70 0.30 X X 0 0 0 Jack Corrigan Trustee 1.70 0.30 X 0 0 0 Patricia Hennessey Trustee 1.70 0.30 X 0 0 0 Kara Dwight DO Past Trustee 1.70 0.30 X 0 0 0 Kathryn Land Trustee 1.70 0.30 X 2500 0 0 Michael Hennessey Treasurer 1.70 0.30 X X 0 0 0 Mortimer Lockett Past Trustee 1.70 0.30 X 0 0 0 Patti Sansing Past Trustee 1.70 0.30 X 0 0 0 Rebecca Irving Trustee 1.70 0.30 X 0 0 0 Rita Ten MD Trustee 39.70 0.30 X 438370 0 23277 Rose St Louis Trustee 1.70 0.30 X 0 0 0 Thomas Potter Past Treasurer 1.70 0.30 X X 0 0 0 Wayne Peters Secretary 1.70 0.30 X X 0 0 0 Ralph Gabarro Interim CEO 39.70 0.30 X X 160618 1344 0 Rick Ramsdell Trustee 1.70 0.30 X 0 0 0 Lisa Reynolds Trustee 1.70 0.30 X 0 0 0 Rodney Sparks MD Trustee 39.70 0.30 X 243185 0 0 Lynnette Parr CFO 39.70 0.30 X 195218 1634 20806 Dhanvant Rathod Physician 40.00 0.00 X 475192 0 22154 John Joseph Physician 40.00 0.00 X 413516 0 15994 Stephen Madigan Physician 40.00 0.00 X 465488 0 18861 Thomas Crowe Physician 40.00 0.00 X 470254 0 23287 Colin Coor Physician 40.00 0.00 X 442598 0 24043 Aziz Massaad MD Former Trustee 40.00 0.00 X 307000 0 0 3929480 5619 159907 29 1 1 0 Physician Services Inc 126 Osborne Rd Farmington ME 04398 Physician Staffing Services 906107 Machias Primary Care Services Inc PO Box 398 Machias ME 04654 Physician Staffing Services 370893 Weatherby Locums Inc PO Box 972633 Dallas TX 753972633 Physician Staffing Services 310383 Downeast Medical Associates PO Box 317 Machias ME 04654 Surgical Call Services 307000 Comphealth Medical Staffing PO Box 972670 Dallas TX 753972670 Staffing Services 281702 10 36952 120354 157306 Patient Revenue 621400 65112818 65112818 Other Revenue 621400 251398 184706 66692 Electronic Health Records 621400 82329 82329 Provision for Bad Debts 621400 -2822935 -2822935 Contractual/Char. Adj. 621400 -29145489 -29145489 33478121 207060 207060 2374552 2394762 -20210 -20210 -20210 33822277 33411429 0 253542 X 9711 9711 1410765 1410765 15615203 14783804 831399 563772 503747 60025 2126117 1853453 272664 1032613 886659 145954 125640 125640 53649 53649 4928660 4601033 327627 88029 2254 85775 1581510 820176 761334 968417 965246 3171 25707 17002 8705 157626 157626 1577502 1577502 891065 891065 Supplies 3200375 3170898 29477 Service Provider Tax 822874 822874 Miscellaneous 146353 54692 91661 35325588 31117742 4207846 0 X 1105 960 4725853 2567673 4135292 3391140 69983 34991 433019 468621 318380 325270 29518590 18330437 11548213 11188153 3121547 3608287 64167 55748 24417559 21640843 3512504 2122680 4218326 3604384 65167 185167 5245641 7660908 13041638 13573139 X 9993201 6618377 39485 55731 1343235 1393596 11375921 8067704 24417559 21640843 X -1503311 133508 -1938414 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 5858 5858 0 Part II-B, Line 1: The Organization pays dues to local associations, a portion of which are attributable to lobbying activities. 3371967 50361 283325 28111 3677542 2930298 470402 28733 3371967 2594743 370531 34976 2930298 1653523 1000900 -32851 26829 2594743 1463886 208434 18797 1653523 0.42000 0.58000 0.00000 0 0 257946 257946 15595371 7526926 8068445 12483749 10222211 2261538 1181524 581300 600224 11188153 Unfunded Pension Liability 3188864 Estimated Third Party Payor Settlements 4472044 7660908 Part V, Line 4: Growth of investment to provide earnings that will support operations. 1 1 1 X 1 X 1 1 0 1 1 1 358 954000 954000 0.03000 7198407 6838324 360083 0.01020 1 358 8152407 6838324 1314083 0.04020 106598 106598 0.00340 44020 44020 0.00140 150618 150618 0.00480 1 358 8303025 6838324 1464701 0.04500 1 1515916 7885790 7966257 -80467 X 1 0 1 1 Down East Community Hospital 11 Hospital Drive Machias ME 04654 www.dech.org 38083 X X X X Down East Community Hospital 1 0 0 1 X X X X X X X X 14 1 1 1 1 X http://www.dech.org X http://chna.emh.org X 1 13 1 http://www.dech.org 0 0 1 X 150.000000000000 200.000000000000 X X 1 1 X X 1 X X X X 1 X 0 X X X X 1 X 0 0 Down East Community Hospital Part V, Section B, Line 5: DECH worked in conjunction with the EMHS systems and various other partnering hospitals to develop its Community Needs Health Assessment. In June 2014, EMHS conducted on online survey with stakeholders and partners living or working in an eight-county region to understand key issues, including facilitators and barriers that impact healthcare and population health in these communities. The survey was widely distributed and ultimately yielded 1,477 completed surveys. There were 112 respondents representing Washington County. The respondents represent the following sectors:50% Healthcare20% Other12% Other Non-Profit6% Government6% Private Sector/Business6% Social Services Down East Community Hospital Part V, Section B, Line 6a: The Hospital conducted its community health needs assessment along with the following hospital facilities:EMHS Member Organizations: Acadia Hospital; Blue Hill Memorial Hospital; Charles A Dean Memorial Hospital; Eastern Maine Medical Center, Inland Hospital, Mercy Hospital; and Sebasticook Valley Health; TAMC; Affiliated; Beacon Health; Eastern Maine HomeCare; EMHS Foundations; Rosscare; VNA Home Health HospicePartnering hospitals: Cary Medical Center, Houlton Regional Hospital; Maine Coast Memorial Hospital; Mayo Regional Hospital; Millinocket Regional Hospital; Mount Desert Island Hospital; Northern Maine Medical Center, and Redington-Fairview General Hospital. Down East Community Hospital Part V, Section B, Line 11: DECH addressed the needs in its most recent CHNA by preparing and adopting an implementation strategy. DECH plans to address all priorities identified through the management and budget of community benefit activities. In addition, DECH also takes advantage of partnering with other community plans by participating, supporting or promoting programs which support community health needs. No needs are not addressed. DECH's detailed implementation strategy can be found on the hospital website, www.dech.org. Down East Community Hospital Part V, Section B, Line 22d: No amount is billed to free care eligible individuals. Discounted care is offered at 75% of gross charges for all eligible individuals. Part V, Section B, Line 16 Financial Assistance Policy Website Availability Down East Community Hospital Part V, Section B, line 16a website: http://www.dech.org Down East Community Hospital Part V, Section B, line 16b website: http://www.dech.org Part I, Line 6a: The senior leadership team, with approval by the board of trustees, manages the community benefit activities of the Hospital. An expense budget is identified annually for community benefit activities. Community benefit activities are reported each year in the Hospital's annual report. Part III, Line 4: See Pages 7 & 8 of audited financial statements for footnote disclosure.Bad debt expense represents actual and estimated write-offs as identified by the Hospital. Actual write-offs represent accounts that have exceeded 90 days in Accounts Receivable with no payment plans established. Estimated write-offs represent bad debts that are expected based on payment percentage assumptions as determined by the age and payor type of the receivable. Part VI, Line 2: Down East Community Hospital partners with EMHS Systems and varying other partnering hospitals to develop its Community Health Needs Assessment. Part VI, Line 3: Each private pay patient that receives a bill from the Hospital will receive a copy of the Hospital's free care guidelines and application with their bill. The free care guidelines are posted throughout the hospital in patient waiting areas and the application is also available on the Hospital's website. At every opportunity, billing personnel will communicate to patients the free care policy and encourage patients to apply. Part VI, Line 4: Down East Community Hospital provides services to rural communities of Washington County, Maine. The population of 32,856 for the Hospital Service Area (HSA) has an average household income of $37,236, compared to $48,453 for the State of Maine. Of the HSA population, approximately 19.5% fall below the poverty level and 21.8% of the population is over age 65. Part VI, Line 5: The Hospital furthers its exempt purpose by promoting the health of the community. The board consists of volunteer community members that are elected by the Corporators of the Hospital.The Hospital has an open medical staff where all applicants have the opportunity to obtain membership as long as the guidelines as determined by the medical staff bylaws are met. 1 Women's Health Resource Library PO Box 463 Milbridge ME 04658 550880014 501(c)(3) 9711 To support that Womens' Health Resource Library. 1 0 Part I, Line 2: The Organization only awards grants to qualifying public charities exempt under 501(c)(3) or municipalities. Additional monitoring is not deemed necessary. X X X 1 0 0 0 0 0 0 1 0 Douglas Jones Past CEO 303917 2641 0 0 11624 0 6837 57 4557 34 326935 2732 0 0 Rita Ten MD Trustee 438370 0 0 0 0 0 8118 0 15159 0 461647 0 0 0 Ralph Gabarro Interim CEO 146779 1344 0 0 13839 0 0 0 0 0 160618 1344 0 0 Rodney Sparks MD Trustee 243185 0 0 0 0 0 0 0 0 0 243185 0 0 0 Lynnette Parr CFO 174148 1634 20000 0 1070 0 7942 66 12720 78 215880 1778 0 0 Dhanvant Rathod Physician 475192 0 0 0 0 0 10400 0 11754 0 497346 0 0 0 John Joseph Physician 413516 0 0 0 0 0 6740 0 9254 0 429510 0 0 0 Stephen Madigan Physician 465488 0 0 0 0 0 7800 0 11061 0 484349 0 0 0 Thomas Crowe Physician 470254 0 0 0 0 0 9377 0 13910 0 493541 0 0 0 Colin Coor Physician 442598 0 0 0 0 0 6587 0 17456 0 466641 0 0 0 Aziz Massaad MD Former Trustee 307000 0 0 0 0 0 0 0 0 0 307000 0 0 0 Part I, Line 4a Douglas Jones, Former CEO, received a severance payment in the amount of $146,852 during calendar year 2014. Part I, Line 7 Lynette Parr, CFO received a bonus payment during calendar year 2014. The bonus payment was tied to meeting certain organizational goals and objectives, none of which were contingent upon revenues or net earnings of the Organization. A Maine Health and Higher Educational Facilities Authority 010314384 560425V80 2007-11-01 1035000 Finance New Construction and Equipment 0 0 1 B Maine Health and Higher Educational Facilities Authority 010314384 560427JA5 2010-06-24 5480000 Refinance 1998 Bond 0 0 1 A 495498 1040241 47144 33641 969739 2007 0 0 1 1 B 2806280 5865921 341888 65460 2010 1 0 1 1 A 0 0 0 0 0 0 0 B 0 0 0 0 0 0 0 A 0 0 1 0 0 0 0 0 0 B 0 0 1 0 0 0 0 0 0 A 0 B 0 Part II, Line 3 The total proceeds of issue listed on line 3 differ from the issue prices listed on Part I due to the amount of premiums of each bond. Downeast Medical Associates Entity more than 35% owned by Aziz Massaad, former director 307000 Dr. Aziz Massaad provided on-call physician services through his medical practice Downeast Medical Associates, to the Organization. 0 Rita Ten MD Family member of Dr. Aziz Massaad, former board member 461647 Dr. Rita Ten provided anesthesia and Pain Management services to the Organization. 0 Form 990, Part VI, Section A, line 2 Michael and Patricia Hennessey, both board members, have a family relationship. Form 990, Part VI, Section A, line 6 The members of the Organization, known as "Corporators," shall be those individuals who are Corporators of Down East Community Hospital as of January 1, 2011, and such other individuals as may be elected to membership in this Corporation by a majority vote of (i) those Corporators present at the Annual Meeting of this Corporation; or (ii) the Board of Trustees. A Corporator is elected for life, unless the Corporator voluntarily resigns, or the Corporator fails to attend two sucessive annual meetings of the Corporation. Additionally, those individuals who are appointed as members of the Active Medical Staff of Down East Community Hospital are eligible to serve as Corporators during the period of their appointment to the Active Medical Staff if so desired. Form 990, Part VI, Section A, line 7a The Corporators shall elect the Trustees of this Corporation from a slate of nominees presented by the Nominating Committee in accordance with the provisions of the Bylaws. Form 990, Part VI, Section B, line 11 The 990 is reviewed by the CEO and CFO and a copy is provided to the full board before filing. Form 990, Part VI, Section B, line 12c In order to monitor compliance with the conflict of interest policy for the Organization, each member of the board of trustees is required annually to submit a conflict of interest document and the compliance officer verifies the receipt of these documents. The compliance officer also reviews payments issued to the board of trustees and any contracts in effect with board members. All new employees sign a conflict of interest statement at the time of hire. Form 990, Part VI, Section B, line 15a Compensation for the Organization's CEO is set by the Executive Compensation Committee made up of independent board members. Form 990, Part VI, Section C, line 19 The financial statements and annual report are made available to the public upon request. The Organization's governing documents and conflict of interest policy are not made available to the public. Form 990, Part IX, line 11g Purchased Services: Program service expenses 2,473,399. Management and general expenses 271,414. Fundraising expenses 0. Total expenses 2,744,813. Professional Fees: Program service expenses 2,127,634. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,127,634. Collection Fees: Program service expenses 0. Management and general expenses 56,213. Fundraising expenses 0. Total expenses 56,213. Form 990, Part X, Line 10: Land, Buildings, and Equipment Section 1.263(a)-3(n) Election: Down East Community Hospital 11 Hospital Drive Machias, ME 04654 EIN: 01-0263198 Down East Community Hospital is electing to capitalize repair and maintenance costs under Regulation Section 1.263(a)-3(n). Form 990, Part XI, line 9: Unfunded Pension Liability Adjustment for Actuarial Losses -1,938,414. Sunrise Nursing Care Facility 11 Hospital Drive Machias ME 04645 222582949 Nursing Care Facility ME 501(c)(3) Line 9 Down East Community Hospital 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 1 Sunrise Nursing Care Facility Q 107060 Fair Market Value Sunrise Nursing Care Facility A 16200 Fair Market Value