2014-05-14T07:13:42-05:00 2013-06-30 232932984 PARENTEBEARD LLC SUITE 200 221 W PHILADELPHIA STREET YORK PA 174012993 990 2012-07-01 251709054 PINNACLE HEALTH MEDICAL SERVICES PINN 7172318245 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 WILLIAM H PUGH 7172318245 2014-05-13 1 JULIUS GREEN CPA P00350393 7178467000 2012 2015-11-30 17:44:51Z WILLIAM H PUGH 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 57553025 0 X WWW.PINNACLEHEALTH.ORG X 1993 PA PINNACLE HEALTH MEDICAL SERVICES IS ENGAGED IN THE PROVISION OF PHYSICIAN SERVICES. 5 2 642 33 0 0 95039 7925 42633467 44219271 -13568 -3591 8917761 13205192 51632699 57428797 0 0 0 0 51565363 55753477 0 0 0 16501762 17462029 68067125 73215506 -16434426 -15786709 15729913 18250312 13254717 12682697 2475196 5567615 X PINNACLE HEALTH MEDICAL SERVICES IS A TAX EXEMPT ENTITY THAT IS PRIMARILY ENGAGED IN THE PROVISION OF BOTH PRIMARY AND SPECIALTY CARE PHYSICIAN SERVICES. 1 1 35713120 22749970 PINNACLE HEALTH MEDICAL SERVICES (PHMS) IS A TAX EXEMPT ENTITY THAT IS PRIMARILY ENGAGED IN THE PROVISION OF PHYSICIAN SERVICES. THE PHYSICIAN SERVICES PROVIDED WITHIN PHMS SUPPORT AND ENHANCE THE SERVICES OF PINNACLE HEALTH HOSPITALS AND THE PINNACLE HEALTH SYSTEM.PHMS ALSO HAD VOLUNTEERS THAT PROVIDED VARIOUS DONATED SERVICES. DURING THE YEAR ENDED JUNE 30, 2013, THERE WERE 33 VOLUNTEERS WHO PROVIDED 4,612 DONATED HOURS VALUED AT $100,509. PHMS PROVIDED FREE CARE DURING THE YEAR TO 488 PATIENTS IN THE AMOUNT OF $260,582.BASED ON TOTAL EXPENSES, THE THREE LARGEST PHYSICIAN SERVICES INCLUDED WITHIN PHMS ARE:PINNACLE SPECIALTIES PRACTICE - THE SPECIALTIES PRACTICE IS THE LARGEST SEGMENT OF PHMS, COMPRISING 56% OF THE TOTAL PROGRAM EXPENSES OF PHMS. THE SPECIALTIES PRACTICES CURRENTLY OPERATE TWENTY ONE SPECIALTY SITES THROUGHOUT CENTRAL PENNSYLVANIA. DURING THE FISCAL YEAR ENDED JUNE 30, 2013, SPECIALTY SITE VISITS TOTALED 165,510. MANAGEMENT CONSIDERS THE INVESTMENT IN SPECIALTY SERVICES CRITICAL TO MAINTAINING AN INTEGRATED DELIVERY SYSTEM AND TO THE FUTURE SUCCESS OF PINNACLE HEALTH SYSTEM. THE SPECIALTY PHYSICIAN PRACTICES INCLUDE THE FOLLOWING:SURGICAL ASSOCIATES - ON APRIL 1, 2010, PINNACLE HEALTH SURGICAL ASSOCIATES CAME TO FRUITION WHEN THE GENERAL SURGEONS AND STAFF OF CAPITAL AREA SURGICAL ASSOCIATES AND SUSQUEHANNA SURGEONS JOINED THE PINNACLE HEALTH NETWORK. EXCELLENT SURGICAL CARE DOESN'T JUST HAPPEN. IT'S THE COMBINATION OF SKILLED SURGEONS, THE LATEST TECHNOLOGY AND EQUIPMENT AND THE EXPERTISE OF THE OPERATING ROOM TEAM WORKING TOGETHER. THE MORE ADVANCED, THE MORE PRECISE, THE BETTER OUTCOME FOR THE PATIENT. PINNACLE HEALTH HAS A LONG HISTORY OF PROVIDING THE FINEST SURGICAL CARE IN CENTRAL PENNSYLVANIA, DATING TO THE OPENING OF OUR FIRST OPERATING ROOM IN 1900. TODAY, OUR OUTSTANDING TEAM OF GENERAL SURGEONS AT PINNACLE HEALTH SURGICAL ASSOCIATES CONTINUES THE TRADITION OF EXCELLENCE BY PERFORMING A WIDE RANGE OF OPEN AND MINIMALLY INVASIVE PROCEDURES. THE TEAM INCLUDES BOARD CERTIFIED AND FELLOWSHIP TRAINED PHYSICIANS WHO PROVIDE SUPERIOR SURGICAL SKILL AND CARE. WOUND & HYPERBARIC PROGRAM: THIS PROGRAM OPENED IN JANUARY 2010. IT PROVIDES EXPERT MEDICAL CARE FOR CHRONIC WOUNDS THAT HAVE FAILED PREVIOUS METHODS OF TREATMENT. THE USE OF SPECIALIZED INTENSIVE WOUND THERAPIES AND, IN SPECIFIC CIRCUMSTANCES, THE APPROVED USE OF HYPERBARIC OXYGEN THERAPY ENHANCES THE HEALING PROCESS IN AN ATTEMPT TO RETURN THE PATIENT TO THE HIGHEST LEVEL OF DAILY FUNCTIONING AND HEALING. ALSO, THE IMPLEMENTATION OF AN IN-PATIENT CONSULTATION PROGRAM AT HARRISBURG HOSPITAL AND COMMUNITY GENERAL OSTEOPATHIC HOSPITAL WILL ALLOW FOR OPTIMAL PATIENT FOLLOW-UP AND REFERRALS. THE PROGRAMS ALSO PROVIDE FOR INCREASED EDUCATIONAL PROGRAMS FOR AREA PHYSICIANS, RESIDENTS AND MEDICAL STUDENTS IN THIS SPECIALTY. PROVIDING PART-TIME SERVICES AT LANCASTER GENERAL HOSPITAL HAS INCREASED AWARENESS OF OUR PROGRAM AND EXPERTISE IN CENTRAL PENNSYLVANIA.RHEUMATOLOGY: OPENING FOR BUSINESS ON MARCH 1, 2010, PINNACLE HEALTH'S RHEUMATOLOGY OFFICE WAS FOUNDED TO DIAGNOSE AND TREAT THE SURROUNDING COMMUNITY THAT EXPERIENCED CONSTANT PAIN WITH RHEUMATIC DISEASES. WHETHER FACED WITH AN INFLAMMATION OF THE JOINTS, TENDONS OR MUSCLES, OR CONSTANT PAIN, PINNACLE HEALTH'S RHEUMATOLOGY DOCTORS HELP DIAGNOSE THE CONDITION AND FIND THE COURSE OF TREATMENT SUITABLE FOR EACH INDIVIDUAL. MANY TYPES OF RHEUMATIC DISEASES ARE NOT EASILY IDENTIFIED IN THE EARLY STAGES AND BECAUSE SOME ARE MORE COMPLEX THAN OTHERS, MORE THAN ONE VISIT MAY BE NECESSARY. AS SUCH, OUR RHEUMATOLOGISTS WORK CLOSELY WITH PATIENTS TO DESIGN INDIVIDUALIZED TREATMENTS THAT MEET THEIR NEEDS.HOSPITALISTS - THIS PROGRAM HAS BEEN ESTABLISHED TO PROVIDE 24/7 IN-HOSPITAL COVERAGE FOR INTERNAL MEDICINE ADMISSIONS AND FOLLOW-UP ON A DEDICATED "HOSPITALIST SERVICE". THIS SERVICE WILL DRAW PATIENTS FROM FAMILY CARE AND INTERNAL MEDICINE PROVIDERS WHO PROVIDE OUTPATIENT CARE, BUT WISH TO HAVE INPATIENT CARE PROVIDED TO THEIR PATIENTS BY THIS SERVICE.PINNACLE HEALTH NEUROLOGISTS - THIS PROGRAM WAS ESTABLISHED TO MEET THE EMERGENT NEED FOR NEUROLOGISTS IN THE HARRISBURG AREA. COVERAGE FOR INPATIENT PHYSICIAN COVERAGE AT PINNACLE HEALTH HOSPITALS IS ITS PRIMARY FOCUS, AS WELL AS ESTABLISHING AND GROWING OUTPATIENT SERVICES TO ADDRESS COMMUNITY NEEDS. PINNACLE HEALTH NEUROSURGERY SERVICES - THIS PROGRAM WAS ESTABLISHED IN JANUARY 2008 TO MEET THE EMERGENT NEED FOR NEUROSURGEONS IN THE HARRISBURG AREA.PINNACLE HEALTH ENDOCRINOLOGISTS - THIS PROGRAM WAS ESTABLISHED IN JANUARY 2005 AND PROVIDES BOTH INPATIENT AND OUTPATIENT SERVICES. PINNACLE HEALTH ENDOCRINOLOGY ASSOCIATES PROVIDES COMPREHENSIVE CARE FOR ALL ENDOCRINOLOGY DISORDERS, ESPECIALLY COMPLEX PATIENTS WITH DIABETES. WE SPECIALIZE IN INSULIN PUMPS, CONTINUOUS GLUCOSE MONITORING, THYROID DISORDERS INCLUDING THYROID BIOPSIES, THYROID CANCERS, COMPREHENSIVE CARE FOR OSTEOPOROSIS WITH SPECIALIZED NURSE CARE, AND ALL THE OTHER ENDOCRINE DISORDERS INCLUDING POLYCYSTIC OVARY SYNDROME, ADRENAL AND PITUITARY DISEASES.PINNACLE HEALTH PEDIATRIC SURGERY - THIS PROGRAM CONSISTS OF THE EMPLOYMENT OF ONE FULL-TIME PEDIATRIC SURGEON WHO WILL CONTINUE TO PRACTICE PEDIATRIC SURGERY FULL-TIME FOR PINNACLE HEALTH HOSPITALS. A STABLE, HIGH QUALITY PEDIATRIC SURGERY SERVICE IS AN ESSENTIAL COMPONENT OF THE WOMEN AND CHILDREN HEALTH SERVICE AT PINNACLE.PINNACLE HEALTH INFECTIOUS DISEASE ASSOCIATES - THIS PROGRAM WAS ESTABLISHED IN JANUARY 2005. PINNACLE HEALTH INFECTIOUS DISEASE ASSOCIATES SPECIALIZES IN THE TREATMENT OF ANY ORGAN INFECTION AND INFECTIOUS DISEASES INCLUDING, BUT NOT LIMITED TO, OSTEOMYELITIS, LYME DISEASE, MENINGITIS, HIV, AND HEPATITIS C. BOTH INPATIENT AND OUTPATIENT SERVICES ARE PROVIDED WHICH INCLUDES A TRAVEL CLINIC.PINNACLE HEALTH CARDIOVASCULAR THORACIC SURGERY - THIS PROGRAM WAS ESTABLISHED TO ENSURE HIGH QUALITY THORACIC SURGERY FOR THE PINNACLE HEALTH SYSTEM PATIENTS. OUR MULTIDISCIPLINARY TEAM EMPLOYS THE MOST ADVANCED, MINIMALLY INVASIVE TECHNOLOGIES AVAILABLE TO PROVIDE A PERSONALIZED APPROACH TO THE DIAGNOSIS AND TREATMENT OF THORACIC CONDITIONS. PH PALLIATIVE CARE - THE FOCUS OF THIS PROGRAM WILL BE ON THE INPATIENT CARE OF PATIENTS DURING THE FINAL MONTHS OR DAYS OF THEIR LIVES, SEEKING TO IMPROVE BOTH THE BALANCE OF CARE VIA COMFORT AND DIGNITY AND THE QUALITY OF PAIN RELIEF TREATMENT. IN THE ROLE AS THE PAIN TEAM OF THE SYSTEM, THE PALLIATIVE CARE SPECIALIST WILL BE AVAILABLE TO ANY PATIENT WHO IS IN NEED OF SPECIALIZED ASSESSMENT AND TREATMENT OF DIFFICULT OR INTRACTABLE PAIN. THIS WILL DOVETAIL NICELY WITH THE NEWLY PROPOSED CANCER CENTER PROGRAM. END-OF-LIFE CARE HAS BEEN IDENTIFIED NATIONALLY AS A MOMENT OF TIME WHICH TAKES UP AN INORDINATE AMOUNT OF HEALTH CARE RESOURCES, WITH GREAT VARIATION GEOGRAPHICALLY AND LITTLE IN THE WAY OF DEMONSTRABLE VALUE; DYING WITH DIGNITY IS AN OPTION THAT ALL OF US SHOULD HAVE AT THE END OF LIFE.TRANSPLANT SERVICES - THIS PROGRAM HAS BEEN ESTABLISHED TO PROVIDE OPPORTUNITY AND GROWTH OF THE TRANSPLANT PROGRAM WITHIN THE STRUCTURE OF THE HEALTH SYSTEM. THE PINNACLE HEALTH SYSTEM TRANSPLANT PROGRAM HAS PERFORMED MORE THAN 1,000 KIDNEY AND KIDNEY/PANCREAS TRANSPLANTS SINCE ITS OPENING.BREAST CANCER CENTER - THIS PROGRAM HAS BEEN ESTABLISHED TO PROVIDE PATIENTS WITH A CENTRALIZED LOCATION FOR THEIR BREAST CARE NEEDS, INCLUDING BREAST HEALTH SURGEONS, BREAST HEALTH NURSE SPECIALISTS, CERTIFIED MAMMOGRAPHERS, RADIOLOGISTS, PATHOLOGISTS AND PHYSICAL THERAPISTS, ALL OF WHOM ARE COMMITTED TO PROVIDING YOU WITH THE MOST UP-TO-DATE TECHNOLOGY AND CARE FOR YOUR COMPLETE BREAST HEALTH.THE WOMEN'S CANCER CENTER IS A UNIQUE PRACTICE, ADDRESSING THE PREVENTIVE, DIAGNOSTIC, SURGICAL, MEDICAL, AND CHEMOTHERAPY NEEDS OF WOMEN WITH GYNECOLOGIC CANCER AND OTHER COMPLICATED CONDITIONS OF THE FEMALE REPRODUCTIVE SYSTEM. MEDICAL ONCOLOGY ASSOCIATES LOCATED IN THE MEDICAL SCIENCES PAVILION ON THE COMMUNITY CAMPUS, SPECIALIZES IN THE USE OF MEDICATIONS, SUCH AS CHEMOTHERAPY, HORMONES AND PAIN MEDICATIONS IN THE MANAGEMENT OF CANCER.TWO NEW SPECIALTY PRACTICES OPENED DURING THE YEAR: RADIATION ONCOLOGY AND PSYCH ASSOCIATES-PSYCHIATRY. 18796379 14985682 FAMILY CARE SERVICES - PRIMARY CARE IS THE SECOND LARGEST SEGMENT OF PHMS COMPRISING 29.24% OF THE TOTAL PROGRAM EXPENSES OF PINNACLE HEALTH MEDICAL SERVICES. PRIMARY CARE SERVICES ARE CURRENTLY PROVIDED THROUGH TWELVE FAMILY CARE CENTERS LOCATED IN SURROUNDING CENTRAL PENNSYLVANIA COMMUNITIES. DURING THE FISCAL YEAR ENDED JUNE 30, 2013, PRIMARY CARE PATIENT VISITS TOTALED 161,798. 8145097 6316088 PINNACLE HEALTH CLINICS - THE CLINICS COMPRISE 13% OF THE TOTAL PROGRAM EXPENSES OF PHMS. THERE ARE SEVEN CLINIC FACILITIES THROUGHOUT CENTRAL PENNSYLVANIA THAT PROVIDE PATIENT CARE TO THE SURROUNDING COMMUNITY. DURING THE FISCAL YEAR ENDED JUNE 30, 2013, CLINICS HAD VISITS THAT TOTALED 62,258. THE CLINICS MAINLY SERVE AN UNINSURED, UNDER-INSURED, AND LARGE MEDICAL ASSISTANCE COMMUNITY, AS IT LIVES ITS MISSION STATEMENT TO BE A CHARITABLE ORGANIZATION DEDICATED TO MAINTAINING AND IMPROVING THE HEALTH AND QUALITY OF LIFE. THE CLINICS INCLUDE THE FOLLOWING:KLINE HEALTH CENTER - THIS PROGRAM PROVIDES PRIMARY, AS WELL AS SPECIALTY CARE, TO A LARGELY URBAN POPULATION. WHILE THE PRACTICE DOES SEE PRIVATE PATIENTS, MUCH OF THE POPULATION SERVED IS OF LOW INCOME AND/OR UNDER-INSURED. SINCE MANY OF OUR PATIENTS RELY ON PUBLIC TRANSPORTATION, KLINE IS ABLE TO MEET MANY OF THE PATIENTS' NEEDS AT ONE LOCATION. RESIDENT PHYSICIANS, UNDER THE SUPERVISION OF BOARD CERTIFIED PHYSICIAN FACULTY AS WELL AS SPECIALTY PHYSICIANS, COME TO KLINE TO SEE PATIENTS FOR THEIR ORTHOPEDIC, ENDOCRINE, NEUROLOGICAL, INFECTIOUS DISEASE, AND SURGICAL NEEDS. THE OFFICE IS MANAGED BY A FULL-TIME RN WHO OVERSEES A STAFF OF MEDICAL ASSISTANTS AND OTHER OFFICE SUPPORT STAFF TO MEET THE NEEDS OF THE PATIENTS AND PROVIDERS.CHILDREN'S AND TEEN CENTER - THIS PROGRAM PROVIDES PRIMARY ACUTE AND PREVENTIVE CARE PLUS SOME SPECIALTY SERVICES FOR NEWBORNS THROUGH CHILDREN 18 YEARS OF AGE. SPECIALTY SERVICES INCLUDE NEONATAL DEVELOPMENTAL CARE, LEAD POISONING DIAGNOSIS AND FOLLOW-UP, PEDIATRIC NEUROLOGY AND CARE FOR CHILDREN INFECTED WITH HIV.WOMEN'S INPATIENT SERVICES - THIS PROGRAM PROVIDES COMPREHENSIVE INPATIENT OBSTETRICAL AND GYNECOLOGICAL SERVICES TO A PATIENT POPULATION CONSISTING LARGELY OF A MANAGED CARE MEDICAL ASSISTANCE PATIENT BASE. THIS PROGRAM WAS ESTABLISHED IN 2007. WOMEN'S OUTPATIENT HEALTH CENTER - THIS PROGRAM PROVIDES COMPREHENSIVE OUTPATIENT OBSTETRICAL AND GYNECOLOGICAL SERVICES TO A LARGELY MANAGED MEDICAL ASSISTANCE PATIENT POPULATION.PH RESOURCE EDUCATION AND COMPREHENSIVE CARE FOR HIV (REACCH) - THIS PROGRAM WAS ESTABLISHED TO PROVIDE PRIMARY AND SPECIALTY MEDICAL CARE FOR PEOPLE (INCLUDING PREGNANT WOMEN AND THEIR EXPOSED INFANTS) WHO ARE HIV-POSITIVE AS WELL AS PROVIDE SUPPORT SERVICES FOR THESE PATIENTS. ADDITIONAL SERVICES PROVIDED TO THIS PATIENT POPULATION INCLUDE NUTRITIONAL COUNSELING, TRANSPORTATION TO MEDICAL APPOINTMENTS, VISION CARE, ASSISTANCE WITH MEDICATION CO-PAYMENTS, AND ASSISTANCE WITH MENTAL HEALTH COUNSELING AND PSYCHIATRIC CARE. THE PROGRAM IS PARTIALLY GRANT FUNDED AND ALSO PROVIDES REIMBURSEMENT TO PINNACLE HEALTH SYSTEM FOR SERVICES RENDERED TO PATIENTS WHO ARE HIV-POSITIVE AND ARE EITHER UNINSURED OR UNDER-INSURED. 122146 167531 WEST SHORE SURGERY CENTER (WSSC) - THE WEST SHORE SURGERY CENTER IS A LIMITED PARTNERSHIP IN WHICH PINNACLE HEALTH MEDICAL SERVICES IS THE GENERAL PARTNER WITH A 2% CONTROLLING INTEREST AND PINNACLE HEALTH HOSPITALS IS A LIMITED PARTNER WITH A 49% INTEREST. THE REMAINING 49% INTEREST IS HELD BY VARIOUS PHYSICIANS FROM THE AREA. 122146 167531 62776742 1 1 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 X 50 0 1 642 1 0 0 0 0 0 0 0 0 0 0 X 5 2 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X WILLIAM H PUGH CFO 7172318245 409 SOUTH SECOND ST PO BOX 8700 HARRISBURG PA 171058700 DEBORAH S MILLER 0.10 X X 0 0 0 ROBERT C BUCKINGHAM MD 0.10 X X 0 0 0 NATHAN H WATERS JR ESQ 0.10 X 0 0 0 NICOLE PURCELL DO 40.00 X 258455 0 19388 LISA TORP MD 40.00 X 418625 0 21664 MICHAEL YOUNG 0.70 39.30 X X 0 1166902 24982 WILLIAM H PUGH 3.80 36.20 X 0 707232 23111 CHRISTOPHER P MARKLEY ESQ 4.00 36.00 X 0 577350 29280 RICHARD C SENECA ESQ 8.60 8.60 X 0 295433 0 NANCY HAMMONDS 2.80 37.20 X 0 203233 42443 MUBASHIR MUMTAZ 40.00 X 747067 0 68689 JOSE MISAS 40.00 X 752665 0 44300 EDWARD PODCZASKI 40.00 X 626152 0 51795 GREGORY WILLIS 40.00 X 622519 0 50495 JOSEPH ESPOSITO 40.00 X 631595 0 61502 ROGER LONGENDERFER MD 0.00 X 0 313740 2082 4057078 3263890 439731 103 1 1 0 LUCENT PHYSICIANS INC 5851 MONOCACY DRIVE BETHLEHEM PA 18017 TEMPORARY PHYSICIAN STAFFING 762100 STAFF CARE INC PO BOX 281923 ATLANTA GA 30384 TEMPORARY PHYSICIAN STAFFING 646607 WEATHERBY LOCUMS INC PO BOX 972633 DALLAS TX 75397 TEMPORARY PHYSICIAN STAFFING 535090 KEYMED PARTNERS INC 3607 ROSEMONT AVENUE SUITE 502 CAMP HILL PA 17011 A/R MANAGEMENT 449562 LOCUMTENENSCOM PO BOX 405547 ATLANTA GA 303845547 TEMPORARY PHYSICIAN STAFFING 240688 10 7925 7925 PATIENT REVENUE, NET 621110 43435804 43435804 PHYSICIAN MEDICAL PPI COVERAGE 621110 389000 389000 PHYSICIAN SERVICES/COVERAGE 621110 281486 281486 PHPA THERAPISTS 621110 64614 64614 PARTNERSHIP PASSTHROUGH - WEST SH 621400 48367 48367 44219271 247 247 262045 120390 141655 141655 141655 3838 -3838 -3838 -3838 I/C LOSS REIMBURSEMENT 900099 11430559 11430559 HITECH REPORTING INCENTIVE 900099 742756 742756 ACCOUNTABLE CARE PROGRAM 900099 224174 224174 666048 666048 13063537 57428797 44219271 0 13201601 717270 645543 71727 46190092 41571083 4619009 2383799 2145419 238380 3939873 3545886 393987 2522443 2270199 252244 4049918 334283 3715635 1227 1227 10477 10477 108315 108315 2959674 2700118 259556 39315 31452 7863 879622 751268 128354 228256 208070 20186 3463348 3103153 360195 42586 38327 4259 327507 317846 9661 285223 256701 28522 1055042 949538 105504 1606977 1606977 MEDICAL SUPPLIES 2302674 2300879 1795 DUES AND SUBSCRIPTIONS 81579 81579 REACCH PROGRAM EXPENSES 20289 20289 73215506 62776742 10438764 0 3303 3493 170494 514573 2088713 2864992 270180 300232 635761 694591 16039891 6822732 8614565 9217159 20876 16827 3272870 3190062 653151 1448383 15729913 18250312 8102288 7758061 5152429 4924636 13254717 12682697 X 2475196 5567615 2475196 5567615 15729913 18250312 X -15786709 18879128 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1887545 911614 975931 3576758 2059512 1517246 10575588 3851606 6723982 9217159 INTER-COMPANY RECEIVABLES 1448383 1448383 X 76412583 100509 18879127 18979636 57432947 108315 -112465 -4150 57428797 73328090 100509 120390 220899 73107191 108315 108315 73215506 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE PINNACLE HEALTH SYSTEM EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. NO ADJUSTMENTS TO THE CONSOLIDATED FINANCIAL STATEMENTS WERE REQUIRED AS A RESULT OF THIS EVALUATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: GOODWILL IMPAIRMENT -58,800. INTERCOMPANY TRANSFERS 18,937,927. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES RECORDED NET OF REVENUE ON 990 -120,390. CONTRIBUTIONS RECEIVED FROM PINNACLE HEALTH FOUNDATION 7,925. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES RECORDED NET OF REVENUE ON 990 120,390. 1 1 0 0 0 0 0 1 0 NICOLE PURCELL DO 238459 0 10000 0 9996 0 12317 0 7071 0 277843 0 0 0 LISA TORP MD 302599 0 70324 0 45702 0 12268 0 9396 0 440289 0 0 0 MICHAEL YOUNG 0 676761 0 286446 0 203695 0 10623 0 14359 0 1191884 0 0 WILLIAM H PUGH 0 459606 0 141324 0 106302 0 15000 0 8111 0 730343 0 45775 CHRISTOPHER P MARKLEY ESQ 0 290096 0 84427 0 202827 0 15045 0 14235 0 606630 0 137480 RICHARD C SENECA ESQ 0 0 0 0 0 295433 0 0 0 0 0 295433 0 0 NANCY HAMMONDS 0 145942 0 35829 0 21462 0 24037 0 18406 0 245676 0 0 MUBASHIR MUMTAZ 571848 0 175000 0 219 0 12500 0 56189 0 815756 0 0 0 JOSE MISAS 483356 0 211233 0 58076 0 5000 0 39300 0 796965 0 0 0 EDWARD PODCZASKI 495294 0 129321 0 1537 0 12500 0 39295 0 677947 0 0 0 GREGORY WILLIS 493614 0 124902 0 4003 0 5000 0 45495 0 673014 0 0 0 JOSEPH ESPOSITO 344753 0 160000 0 126842 0 15000 0 46502 0 693097 0 0 0 ROGER LONGENDERFER MD 0 308439 0 5086 0 215 0 0 0 2082 0 315822 0 0 PART I, LINE 3 PINNACLE HEALTH MEDICAL SERVICES RELIES ON PINNACLE HEALTH SYSTEM, A RELATED ORGANIZATION, TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S CEO. METHODS USED TO ESTABLISH COMPENSATION BY THE RELATED ORGANIZATION INCLUDE: * COMPENSATION COMMITTEE * INDEPENDENT COMPENSATION CONSULTANT * COMPENSATION SURVEY OR STUDY * APPROVAL BY THE COMPENSATION COMMITTEE OF THE BOARD PART I, LINES 4A-B ROGER LONGENDERFER, M.D., A FORMER PRESIDENT AND CEO, WAS PAID SEVERANCE IN THE FORM OF SALARY AND BENEFITS TOTALING $315,821 IN 2012 AS PART OF HIS RETIREMENT PACKAGE. WILLIAM PUGH AND CHRISTOPHER MARKLEY RECEIVED AS TAXABLE COMPENSATION INCOME FROM A NONQUALIFIED PLAN THAT HAD BEEN DEFERRED IN PRIOR YEARS. PART I, LINE 7 THE COMPENSATION COMMITTEE OF THE BOARD WITH ASSISTANCE FROM AN INDEPENDENT OUTSIDE ADVISOR ESTABLISHES A COMPENSATION PHILOSOPHY TO COMPENSATE LEADERS OF THE ORGANIZATION AT THE MARKET MEDIAN WITH AN INCENTIVE OPPORTUNITY TO REACH THE 75TH PERCENTILE OF THE MARKET FOR THEIR POSITION. THE INCENTIVE OPPORTUNITY IS DIVIDED BETWEEN PERSONAL GOALS AND SYSTEM LEVEL GOALS. ALL GOALS ARE MEASURABLE AND ARE DESIGNED TO IMPROVE QUALITY OF CARE, PATIENT SAFETY, PATIENT EXPERIENCE, AND MANAGEMENT OF RESOURCES. PERFORMANCE IS REWARDED AT THREE LEVELS; THRESHOLD (IMPROVEMENT OVER THE BASELINE), TARGET (SIGNIFICANT IMPROVEMENT OVER THE PRIOR YEAR) AND OPTIMUM (STRETCH). SUPPLEMENTAL INFORMATION PART III NOTE THAT NANCY HAMMONDS WAS "GRANDFATHERED" IN WITH A GROUP OF EMPLOYEES FOR WHOM IT WAS DETERMINED THAT THE CHANGE TO A NEW DEFINED CONTRIBUTION PLAN WOULD NOT MAKE THEM "WHOLE" DUE TO THEIR LENGTH OF SERVICE. IT WAS DETERMINED THAT THESE EMPLOYEES SHOULD RECEIVE AN ADDITIONAL BENEFIT TO ADJUST FOR THE ADVERSE CONSEQUENCE TO THEM OF THE NEW PLAN. DR JOSEPH ESPOSITO SPOUSE OF LISA TORP MD, DIRECTOR 631595 WAGES PROVIDED FOR NORMAL WORK ACTIVITIES PAID BY THE ORGANIZATION 0 NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 RADIATION ONCOLOGY OPENED IN JUNE OF 2013 GIVING PATIENTS THE MOST ADVANCED TECHNOLOGY IN CENTRAL PA. OUR SUPERIOR TREATMENT CAPABILITIES ALLOW US TO PROVIDE THE PATIENT WITH SHORTER TREATMENT TIMES AND FEWER SIDE EFFECTS WHILE ELIMINATING THEIR CANCER CELLS. WE MAINTAIN A HIGH LEVEL OF SKILL AND EXPERTISE WHILE PAYING CAREFUL ATTENTION TO THE PATIENTS' COMFORT AND CONCERNS. CHANGES IN PROGRAM SERVICES FORM 990, PART III, LINE 3 PINNACLE HEALTH COMPLEMENTARY SERVICES - THIS PROGRAM WAS ESTABLISHED IN OCTOBER 2005 TO PROVIDE ACUPUNCTURE SERVICES BY A PENNSYLVANIA STATE REGISTERED ACUPUNCTURIST BUT WAS CLOSED IN OCTOBER 2012. PINNACLE HEALTH TOXICOLOGY SERVICES OPENED IN OCTOBER 2011. THIS WAS A SPECIALTY DEPARTMENT DEDICATED TO SETTING NEW STANDARDS OF CARE AND DEVOTED SPECIFICALLY TO THE TREATMENT OF POISONED PATIENTS. THIS DEPARTMENT WAS CLOSED IN DECEMBER 2012. FAMILY CARE OF HALIFAX WAS CLOSED IN NOVEMBER 2012. NUMBER OF 1099S REPORTED: FORM 990, PART V, LINE 1: PINNACLE HEALTH SYSTEM, THE PARENT ENTITY OF A GROUP COMPRISED OF TAXABLE AND TAX-EXEMPT ORGANIZATIONS, IS THE COMMON REPORTING AGENT FOR THE GROUP AND FILES ALL 1099 FORMS FOR PINNACLE HEALTH MEDICAL SERVICES. THE NUMBER OF 1099S REPORTED IS AN ESTIMATE BASED ON THE ENTITY'S ACTIVITIES. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE CORPORATION IS PINNACLE HEALTH SYSTEM, A NONPROFIT CORPORATION (EIN 25-1778658). FORM 990, PART VI, SECTION A, LINE 7A AS SOLE MEMBER OF THE ORGANIZATION, PINNACLE HEALTH SYSTEM SHALL ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING POWERS ARE RESERVED TO THE SOLE MEMBER, PINNACLE HEALTH SYSTEM: TO APPROVE AND AUTHORIZE: ANNUAL OPERATING AND CAPITAL BUDGETS STRATEGIC PLANS BORROWINGS OR EXTENSIONS OF CREDIT EQUAL TO OR GREATER THAN ONE MILLION DOLLARS VOLUNTARY DISSOLUTION, MERGER, OR CONSOLIDATION THE SALE, PLEDGING, LEASING OR TRANSFER OF ASSETS IN EXCESS OF $500,000 THE CREATION OR ACQUISITION OR ANY SUBSIDIARY OR AFFILIATE ADDITION OR DELETION OF CLINICAL CENTERS OF EMPHASIS ANY CONTRACT WITH AN UNRELATED PARTY FOR MGT OF SUBSTANTIALLY ALL ACTIVITIES INVESTMENT POLICIES UNBUDGETED CAPITAL EXPENDITURES TO SELECT THE CERTIFIED PUBLIC ACCOUNTANTS TO ESTABLISH AN OBLIGATED GROUP FOR FINANCING PURPOSES TO ADOPT EMPLOYEE BENEFIT PLANS FORM 990, PART VI, SECTION B, LINE 11 THE AUTHORITY AND RESPONSIBILITY FOR REVIEW OF THE FORM 990 FOR PINNACLE HEALTH SYSTEM AND SUBSIDIARIES IS DELEGATED TO THE FINANCE AND AUDIT COMMITTEE OF THE PINNACLE HEALTH SYSTEM BOARD. IN ORDER TO ACCOMPLISH THIS, ALL MEMBERS OF THE FINANCE AND AUDIT COMMITTEE ARE PROVIDED WITH A REASONABLE OPPORTUNITY TO REVIEW AND COMMENT TO EXECUTIVE LEADERSHIP ON THE IRS FORMS 990 OF THE PINNACLE HEALTH SYSTEM AND ITS SUBSIDIARIES, INCLUDING PINNACLE HEALTH HOSPITALS, PINNACLE HEALTH MEDICAL SERVICES, PINNACLE HEALTH FOUNDATION, AND COMMUNITY LIFE TEAM BEFORE THEY ARE FILED WITH THE INTERNAL REVENUE SERVICE. IN ADDITION, EACH MEMBER OF EACH RESPECTIVE BOARD OF DIRECTORS WILL BE GIVEN ACCESS TO VIEW THEIR INDIVIDUAL FORM 990 VIA A SHARED, PASSWORD-PROTECTED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C IN THE PERFORMANCE OF THEIR DUTIES TO PINNACLE HEALTH SYSTEM AND SUBSIDIARIES (COLLECTIVELY REFERRED TO AS "PHS"), COVERED PERSONS SHALL SEEK TO ACT IN THE BEST INTERESTS OF PHS, AND SHALL EXERCISE GOOD FAITH, LOYALTY, DILIGENCE AND HONESTY. A COVERED PERSON IS ANY INDIVIDUAL WHO SERVES IN A FIDUCIARY CAPACITY TO, OR WHO HAS LEGAL AUTHORITY TO REPRESENT OR OBLIGATE, THE PINNACLE HEALTH SYSTEM OR ANY OF ITS AFFILIATED ORGANIZATIONS INCLUDING, BUT NOT LIMITED TO, DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS. COVERED PERSONS ALSO INCLUDE A) IMMEDIATE FAMILIES (SPOUSES, CHILDREN, SIBLINGS, PARENTS, OR SPOUSE'S PARENTS), B) ANY ORGANIZATION IN WHICH THEY OR THEIR IMMEDIATE FAMILIES DIRECTLY OR INDIRECTLY I) HAVE A MATERIAL FINANCIAL OR BENEFICIAL INTEREST, OR II) SERVE AS A DIRECTOR, OFFICER, EMPLOYEE, AGENT, ATTORNEY OR SIMILAR CAPACITY. A COVERED PERSON SHALL DISCLOSE ANY BUSINESS OR PERSONAL INTERESTS OR RELATIONSHIPS WHICH MAY BE IN CONFLICT WITH THE INTEREST OF PHS, INCLUDING, BUT NOT LIMITED TO (A) ENGAGING IN OR SEEKING TO BE ENGAGED IN (I) THE DELIVERY OF HEALTH CARE SERVICES OR (II) THE DELIVERY OF GOODS OR SERVICES TO PHS, OR (B) ANY TRANSACTION OR ARRANGEMENT WITH PHS WHICH WOULD RESULT IN BENEFIT TO COVERED PERSONS. THE GOVERNANCE COMMITTEE OF THE PHS BOARD REVIEWS ALL CONFLICT OF INTEREST STATEMENTS AND DETERMINES WHETHER EACH DIRECTOR ON THE BOARD IS INDEPENDENT. COVERED PERSONS WHO ARE DIRECTORS MUST COMPLY WITH THE PINNACLE HEALTH SYSTEM GUIDELINES FOR DETERMINING DIRECTOR INDEPENDENCE AND APPLYING DIRECTOR INDEPENDENCE REQUIREMENTS. COVERED PERSONS WITH A CONFLICT OF INTEREST SHALL NOT VOTE ON THE MATTER, AND THE PHS BOARD OR COMMITTEE MUST APPROVE, AUTHORIZE, OR RATIFY THE TRANSACTION OR ARRANGEMENT BY A MAJORITY VOTE OF THE NON-INTERESTED DIRECTORS OR COMMITTEE MEMBERS PRESENT AT A MEETING THAT HAS A QUORUM. VIOLATIONS OF THIS STATEMENT OF POLICY MAY SUBJECT COVERED PERSONS TO APPROPRIATE SANCTIONS, INCLUDING REMOVAL FROM THEIR POSITIONS WITH PHS. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE PINNACLE HEALTH SYSTEM ("PHS") BOARD OF DIRECTORS HAS THE AUTHORITY TO DEVELOP AND MAINTAIN EXECUTIVE AND PHYSICIAN COMPENSATION TO BE APPROVED BY THE PINNACLE HEALTH SYSTEM BOARD. THE COMPENSATION COMMITTEE WILL FOLLOW A DILIGENT PROCESS THAT MEETS REGULATORY REQUIREMENTS FOR A REBUTTABLE PRESUMPTION OF REASONABLENESS AND PROMOTES EFFECTIVE GOVERNANCE OF EXECUTIVE COMPENSATION, CONSISTENT WITH THE PHS COMPENSATION PHILOSOPHY. 1. FOLLOW A PROCESS THAT ESTABLISHES AND MAINTAINS A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR ALL EXECUTIVES AND PHYSICIANS POTENTIALLY SUBJECT TO INTERMEDIATE SANCTIONS. 2. PREPARE MINUTES FOR EACH MEETING TO RECORD THE TERMS OF THE COMMITTEE'S DECISIONS AND THE PROCESS FOLLOWED IN REACHING THOSE DECISIONS. THESE MINUTES MUST INCLUDE INDICATIONS THAT THE COMMITTEE IS FOLLOWING GOOD PRACTICES IN DEALING WITH CONFLICTS OF INTEREST AND IN OBTAINING AND RELYING ON APPROPRIATE COMPARABILITY DATA ON TOTAL COMPENSATION. 3. SELECT AND DIRECTLY ENGAGE AND SUPERVISE ANY CONSULTANT HIRED BY PHS TO ADVISE THE COMMITTEE ON EXECUTIVE AND PHYSICIAN COMPENSATION. 4. PERIODICALLY EVALUATE THE APPROPRIATENESS OF THIS CHARTER AND THE EFFECTIVENESS OF THE PROCESS THE COMMITTEE USES IN GOVERNING EXECUTIVE AND PHYSICIAN COMPENSATION AND REPORT THIS EVALUATION TO THE BOARD. 5. PROVIDE THE BOARD WITH AN ANNUAL REPORT ON THE COMMITTEE'S ACTIONS. 6. MONITOR CHANGES IN LAWS AND REGULATIONS PERTAINING TO EXECUTIVE COMPENSATION AND BENEFITS TO SEE THAT PHS COMPLIES WITH THEM. 7. SEEK OUTSIDE REVIEW OF COMMITTEE OPERATIONS TO ENSURE COMPLIANCE WITH THE IRS REBUTTABLE PRESUMPTION OF REASONABLENESS. 8. REVIEW ACTUAL EXECUTIVE COMPENSATION AND BENEFITS PROVIDED TO CONFIRM CONSISTENCY WITH COMPENSATION AND BENEFITS APPROVED BY THE COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. THE ORGANIZATION INCLUDES A COPY OF ITS FINANCIAL STATEMENTS WITH THE STATE REGISTRATION FILED WITH THE PENNSYLVANIA DEPARTMENT OF STATE, BUREAU OF CHARITABLE ORGANIZATIONS. THESE DOCUMENTS ARE A MATTER OF PUBLIC RECORD AND CAN BE VIEWED AT THE BUREAU OFFICE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: GOODWILL IMPAIRMENT -58,800. INTERCOMPANY TRANSFERS 18,937,928. PINNACLE HEALTH SYSTEM 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251778658 MANAGEMENT AND CONSULTATIVE SERVICES FOR RELATED EXEMPT ORGS PA 501(C)(3) LINE 11C, III-FI N/A 0 PINNACLE HEALTH FOUNDATION 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 222691718 INVESTMENT AND FUNDRAISING ACTIVITIES FOR RELATED TAX-EXEMPT ORGANIZATIONS PA 501(C)(3) LINE 11B, II PINNACLE HEALTH SYSTEM 0 COMMUNITY LIFE TEAM 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 231890444 MEDICAL TRANSPORT SERVICES PA 501(C)(3) LINE 9 PINNACLE HEALTH SYSTEM 0 PINNACLE HEALTH HOSPITALS 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251778644 INPATIENT AND OUTPATIENT HEALTHCARE SERVICES PA 501(C)(3) LINE 3 PINNACLE HEALTH SYSTEM 0 WEST SHORE SURGERY CENTER LTD 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251821415 SURGICAL CARE - MEDICAL SERVICES PA PINNACLE HEALTH MEDICAL SERVICES RELATED 58417 837301 0 1 0.02000 UNITED CENTRAL PA RISK RETENTION GROUP 76 ST PAUL STREET SUITE 500 BULINGTON VT 054014477 134224033 CAPTIVE INSURANCE VT N/A C 0 UNITED HEALTH RISK LTD PO BOX 2450 HAMILTON HM JX BD CAPTIVE INSURANCE BD N/A C 0 PINNACLE HEALTH CARDIOVASCULAR INSTITUTE PO BOX 8700 HARRISBURG PA 17105 320321362 PHYSICIAN SERVICES PA N/A C 0 PINNACLE HEALTH MEDICAL GROUP PO BOX 8700 HARRISBURG PA 17105 800771040 PHYSICIAN SERVICES PA N/A C 0 PINNACLE HEALTH VENTURES INC PO BOX 8700 HARRISBURG PA 17105 611677624 HOLDING COMPANY PA N/A C 0 PINNACLE HEALTH IMAGING INC PO BOX 8700 HARRISBURG PA 17105 231718571 IMAGING SERVICES PA N/A C 0 CARDIOLOGY PRACTICE INC PO BOX 8700 HARRISBURG PA 17105 800658616 PHYSICIAN SERVICES PA N/A C 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 1 1 1 1