2015-05-15T16:41:25-05:00 2014-06-30 273858252 DEAN DORTON ALLEN FORD PLLC 106 W VINE STREET SUITE 600 LEXINGTON KY 40507 990 2013-07-01 311139276 CONSOLIDATED HEALTH SYSTEMS INC CONS 6068869558 PO BOX 0787 PRESTONSBURG KY 41653 JACK BLACKWELL CFO 6068869558 2015-05-14 1 LEIGH MCKEE P00169845 8592552341 2013 2016-02-25 16:41:14Z HIGHLANDS HEALTH SYSTEM JACK BLACKWELL PO BOX 0787 PRESTONSBURG KY 41653 18051123 0 X WWW.HIGHLANDSHEALTHSYSTEM.COM X 1984 KY THE ORGANIZATION SERVES TO FOSTER AND DEVELOP HEALTH CARE ACTIVITIES 8 7 73 7 -108277 -108277 0 0 14387000 13710478 1025424 2404745 2164384 575631 17576808 16690854 62577 228896 0 0 7459319 8188774 0 0 33369 7607944 8065840 15129840 16483510 2446968 207344 67986567 61512806 48842099 41056104 19144468 20456702 THE ORGANIZATION SERVES TO FOSTER AND DEVELOP HEALTH CARE ACTIVITIES IN THE SERVICE AREA OF HIGHLANDS REGIONAL MEDICAL CENTER, AN AFFILIATED HOSPITAL. 0 0 13184172 228896 15174369 THE ORGANIZATION SERVES TO FOSTER AND DEVELOP HEALTH CARE ACTIVITIES IN THE SERVICE AREA OF HIGHLANDS REGIONAL MEDICAL CENTER, AN AFFILIATED HOSPITAL. 13184172 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 52 0 1 73 1 1 1 0 0 0 0 0 0 0 0 0 X 8 7 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X THE ORGANIZATION 6068869558 PO BOX 0787 PRESTONSBURG KY 41653 HAROLD C WARMAN PRESIDENT/CEO 24.00 16.00 X X 330580 0 33153 DEWEY L BOCOOK JR CHAIRMAN 1.00 X 0 0 0 EDWARD R NAIRN SECRETARY 1.00 X 0 0 0 PAUL D NUNN TREASURER 1.00 X 0 0 0 ROBERT M DUNCAN MEMBER 1.00 X 0 0 0 GREGORY A WILSON MEMBER 1.00 X 0 0 0 DENNIS DORTON VICE CHAIRMAN 1.00 X 0 0 0 MARK E MCKENZIE MEMBER 1.00 X 0 0 0 JACK BLACKWELL CFO 23.00 17.00 X 212980 0 19237 JAMES D JACKSON CIO 40.00 X 138410 0 27322 TODD HIGHTOWER VP PHYSICIAN SERVICES 40.00 X 178900 0 27853 TERRY D HALL PHYSICIAN 40.00 X 467234 0 33330 DARYL LARKE PHYSICIAN 40.00 X 462649 0 32845 BRETT AKERS PHYSICIAN 40.00 X 681328 0 32055 ROBERT N ROYALTY PHYSICIAN 40.00 X 898908 0 28230 DEBRA HALL PHYSICIAN 40.00 X 259612 0 21268 3630601 0 255293 15 0 1 0 PROGRESSIVE HEALTHCARE INC 109 WESTPARK DRIVE STE 150 BRENTWOOD TN 37027 CONSULTING 273366 STAFF CARE INC 5001 STATESMAN DR IRVING TX 75063 STAFFING 150646 RUFINO PIEDAD DBA SANDY VALLEY CLEA 257 EDGEWOOD LANE PRESTONSBURG KY 41653 CLEANING SERVICES 146532 AUTOMATIC DATA PROCESSING 225 2ND AVENUE BOSTON MA 02129 PAYROLL PROCESSING 125485 FAIRWAY OUTDOOR ADVERTISING 1749 US HWY NORTH PRESTONSBURG KY 41653 ADVERTISING 119120 5 MANAGEMENT - CONSOLIDATED HEALTH 541610 7867646 7867646 PHYSICIAN SERVICES 621300 5842832 5842832 13710478 645205 645205 472009 1360269 -888260 -888260 -108277 -779983 1759540 0 1759540 1759540 1759540 MEANINGFUL USE FUNDS 900099 919899 919899 INTERDEPARTMENT BENEFITS 900099 543992 543992 1463891 16690854 15174369 -108277 1624762 X 228896 228896 863071 863071 5700857 5667883 32974 232693 232693 992539 956357 36182 399614 399614 3101 3101 90000 90000 4884397 4568673 315724 653417 653022 395 251743 251506 237 464979 464979 66766 66766 53463 53463 15419 15419 364436 364436 1392 1392 PROVISION FOR BAD DEBTS 498405 498405 SUPPLIES 420398 414547 5851 DUES & SUBSCRIPTIONS 115412 115412 LICENSES & TAXES 105710 105710 76802 776 76026 16483510 13184172 3265969 33369 790895 1182787 26117376 23451772 886768 656442 5150723 2025293 16250 16250 1698721 2042034 25526826 8527542 17120638 16999284 984927 984927 15220269 14154017 67986567 61512806 1368407 1724664 81894 506429 47391798 38825011 48842099 41056104 X 19144468 20456702 19144468 20456702 67986567 61512806 207344 1104890 0 X X 0 1 X 1 0 X X X X 0 0 0 HIGHLANDS HOSPITAL CORPORATION 610658773 3 1 1 1 0 1 0 12886270 2102427 14988697 11375859 1510411 12886270 10748641 927218 11375859 8800172 1948469 10748641 8365650 434522 8800172 1.00000 0.00000 0.00000 0 0 2584885 2584885 18660179 5378317 13281862 577896 453191 124705 3656317 2683830 972487 47549 12204 35345 16999284 INTERCOMPANY RECEIVABLE 13346491 OTHER ASSETS 807526 14154017 INTERCOMPANY LIABILITIES 37966763 PHYSICIAN COMMITMENTS 436093 OTHER LIABILITIES 422155 38825011 X PART V, LINE 4: THE BOARD RESTRICTED NET ASSETS CONSIST OF ASSETS DESIGNATED BY THE BOARD OF DIRECTORS FOR FUTURE CAPITAL IMPROVEMENTS. PART X, LINE 2: THE PARENT COMPANY, HHHC, THE HOSPITAL AND HCFA ARE EXEMPT FROM FEDERAL INCOME TAXES PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC), EXCEPT FOR ANY UNRELATED BUSINESS INCOME ACTIVITIES. NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THE COMBINED FINANCIAL STATEMENTS FOR ANY OF THESE ENTITIES. CHE IS A FOR-PROFIT CORPORATION ON WHICH APPLICABLE CORPORATE INCOME TAXES APPLY. HMP II, HS, HIGHLANDS PRESTONSBURG, HIGHLANDS PAINTSVILLE, HOMETOWN AND HHV ARE LIMITED LIABILITY ENTITIES. IN LIEU OF INCOME TAXES, THE OWNERS OF THE ENTITIES ARE REQUIRED TO REPORT THEIR RESPECTIVE SHARES OF THE ENTITIES' TAXABLE INCOME OR LOSS ON THEIR RESPECTIVE INCOME TAX RETURNS. THE HOSPITAL HAS UNRELATED BUSINESS INCOME FROM CERTAIN ACTIVITIES. THESE ACTIVITIES ARE GENERALLY CONDUCTED AT A LOSS AND HELP TO COVER OVERHEAD COSTS. BOTH THE HOSPITAL AND CHE HAVE SMALL NET OPERATING LOSS CARRYFORWARDS. MANAGEMENT HAS EVALUATED THE COMPANY'S TAX POSITIONS AND CONCLUDED THAT THE COMPANY TOOK NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE COMBINED FINANCIAL STATEMENTS TO COMPLY WITH GAAP. WITH FEW EXCEPTIONS, THE COMPANY IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. 1 HIGHLANDS FOUNDATION INC 5000 KY HIGHWAY 321 PRESTONSBURG KY 41653 208036784 501(C)(3) 214332 TO PROMOTE HEALTH AND COMMUNITY EDUCATION AND INVOLVEMENT TO RESIDENTS OF EASTERN KENTUCKY ANONYMOUS HOPE 108 BIRCHWOOD DR MURRAY KY 42071 274643547 501(C)(3) 12000 TO ASSIST WITH THE MISSION OF PROVIDING OPPORTUNITY TO THE PEOPLE OF APPALACHIA. 2 PART I, LINE 2: THE ORGANIZATION MAINTAINS RECORDS TO SUBSTANTIATE THE GRANTS PAID AND DOCUMENTATION RECEIVED FROM THE RECIPIENT ORGANIZATION REQUESTING THE GRANT. HOWEVER, THE ORGANIZATION DOES NOT MONITOR THE USE OF THE FUNDS BY THE RECIPIENT ORGANIZATION AT THIS TIME. X X X X 0 0 0 0 0 0 0 0 0 HAROLD C WARMAN PRESIDENT/CEO 330580 0 0 0 0 0 12573 0 20580 0 363733 0 0 0 JACK BLACKWELL CFO 212980 0 0 0 0 0 10619 0 8618 0 232217 0 0 0 JAMES D JACKSON CIO 138410 0 0 0 0 0 6742 0 20580 0 165732 0 0 0 TODD HIGHTOWER VP PHYSICIAN SERVICES 178900 0 0 0 0 0 7978 0 19875 0 206753 0 0 0 TERRY D HALL PHYSICIAN 467234 0 0 0 0 0 12750 0 20580 0 500564 0 0 0 DARYL LARKE PHYSICIAN 462649 0 0 0 0 0 12265 0 20580 0 495494 0 0 0 BRETT AKERS PHYSICIAN 681328 0 0 0 0 0 11475 0 20580 0 713383 0 0 0 ROBERT N ROYALTY PHYSICIAN 898908 0 0 0 0 0 7650 0 20580 0 927138 0 0 0 DEBRA HALL PHYSICIAN 259612 0 0 0 0 0 12650 0 8618 0 280880 0 0 0 FORM 990, PART VI, SECTION B, LINE 11 THE DIRECTOR OF ACCOUNTING, CFO AND BOARD OF DIRECTORS WILL REVIEW FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO EACH BOARD MEMBER ANNUALLY. THE POLICY IS DISTRIBUTED BY THE BOARD SECRETARY ALONG WITH A DISCLOSURE FORM. RESPONSES ARE REVIEWED BY THE CEO. IF THERE IS A PARTICULAR ISSUE THAT NEEDS TO BE BROUGHT TO THE ATTENTION OF THE BOARD, THE CEO WILL CONTACT THE BOARD CHAIR TO DISCUSS, AND IF NECESSARY, IT WILL BE PLACED ON THE BOARD AGENDA FOR REVIEW. ADDITIONALLY, IF A BOARD MEMBER OR THE CEO BECOME AWARE OF POTENTIAL CONFLICTS THEY CAN REPORT THIS TO THE BOARD CHAIR DURING THE YEAR. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE CEO AND OFFICERS IS DETERMINED BY A COMMITTEE OF THE BOARD OF DIRECTORS THAT REVIEWS PERFORMANCE ANNUALLY. THE BOARD CONSULTS WITH VARIOUS SOURCES TO DETERMINE MARKET RATES OF COMPENSATION AGAINST COMPARABLE ORGANIZATIONS. THE BOARD USES ACHE COMPENSATION SURVEYS, MODERN HEALTHCARE COMPENSATION SURVEYS, AND VERBALLY CONSULTS WITH THE KY HOSPITAL ASSOCIATION TO DETERMINE KY COMPENSATION. FROM TIME TO TIME, THE BOARD MAY USE OTHER SOURCES THAT ARE AVAILABLE. COMPENSATION IS BASED ON MARKET RATES AND PERFORMANCE AGAINST GOALS, WHICH ARE ESTABLISHED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 4,568,673. MANAGEMENT AND GENERAL EXPENSES 315,724. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,884,397. FORM 990, PART XII, LINE 2C THERE IS A COMMITTEE OF THE BOARD OF DIRECTORS THAT ASSUMES RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS AND THE SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. HHS DEVELOPMENT COMPANY PRESTONSBURG LLC 5000 KY RT 321 PRESTONSBURG KY 41653 271260438 HOLD MEDICAL OFFICE BUILDING KY -299430 6053678 CONSOLIDATED HEALTH SYSTEMS INC HHS DEVELOPMENT COMPANY PAINTSVILLE LLC 5000 KY RT 321 PRESTONSBURG KY 41653 271259520 HOLD MEDICAL OFFICE BUILDING KY -156026 3816880 CONSOLIDATED HEALTH SYSTEMS INC HOMETOWN FAMILY CARE LLC 5000 KY RT 321 PRESTONSBURG KY 41653 202470645 FAMILY CARE CLINIC KY 0 1314699 CONSOLIDATED HEALTH SYSTEMS INC HIGHLANDS HOME CARE INC 5032 KENTUCKY ROUTE 321 PRESTONSBURG KY 41653 611349726 HOME HEALTH SERVICES KY 501(C)(3) 9 CONSOLIDATED HEALTH SYSTEMS INC 1 HIGHLANDS HOSPITAL CORPORATION BOX 668 5032 KENTUCKY ROUTE 321 PRESTONSBURG KY 41653 610658773 HEALTH CARE SERVICES KY 501(C)(3) 3 CONSOLIDATED HEALTH SYSTEMS INC 1 HIGHLANDS FOUNDATION INC 5000 KY HIGHWAY 321 PRESTONSBURG KY 41653 208036784 PROMOTE HEALTH AND COMMUNITY EDUCATION AND INVOLVEMENT KY 501(C)(3) 7 CONSOLIDATED HEALTH SYSTEMS INC 1 HIGHLANDS CENTER FOR AUTISM INC 5000 KY HIGHWAY 321 PRESTONSBURG KY 41653 264541964 SCHOOL FOR AUTISM SPECTRUM DISORDER KY 501(C)(3) 9 CONSOLIDATED HEALTH SYSTEMS INC 1 HIGHLANDS MEDICAL PARTNERS II LLC 5000 KENTUCKY ROUTE 321 PRESTONSBURG KY 41653 311139276 MEDICAL SERIVCES - SLEEP LAB KY CONSOLIDATED HEALTH SYSTEMS INC RELATED -18897 12039 0 1 0.51000 HIGHLANDS HEART & VASCULAR LLC 5000 KENTUCKY ROUTE 321 PRESTONSBURG KY 41653 463963059 MEDICAL SERIVCES - HEART LAB KY CONSOLIDATED HEALTH SYSTEMS INC RELATED -382797 70507 0 1 0.55000 CONSOLIDATED HEALTH ENTERPRISES BOX 668 5032 KY ROUTE 321 PRESTONSBURG KY 41653 611261592 PHARMACY KY CONSOLIDATED HEALTH SYSTEMS INC C -235212 684145 1.00000 1 HIGHLANDS STAFFING INC 5000 KY RT 321 PRESTONSBURG KY 41653 270835324 STAFFING KY CONSOLIDATED HEALTH SYSTEMS INC C 400044 1.00000 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 HIGHLANDS HOSPITAL CORPORATION E 8005102 HIGHLANDS HOME CARE INC E 270135 HIGHLANDS FOUNDATION INC D 134874 CONSOLIDATED HEALTH ENTERPRISES D 65895 HIGHLANDS FOUNDATION INC B 214332 HIGHLANDS HOSPITAL CORPORATION A 178087 CONSOLIDATED HEALTH ENTERPRISES A 11475