2014-05-14T07:13:42-05:00 2013-06-30 232932984 PARENTEBEARD LLC 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2012-07-01 251778658 PINNACLE HEALTH SYSTEM 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 237957217 0 X WWW.PINNACLEHEALTH.ORG X 1995 PA PROVIDE MANAGEMENT AND CONSULTATIVE SERVICES TO AFFILIATED TAX-EXEMPT ENTITIES. 20 15 108 18 0 0 273854 0 18563645 23673638 4866135 4552994 35007 502605 23738641 28729237 0 15184 0 0 12162020 14988564 0 0 0 7179679 10687002 19341699 25690750 4396942 3038487 236649761 234469771 4726451 5750911 231923310 228718860 X PINNACLE HEALTH SYSTEM IS ENGAGED IN AND CONDUCTS CHARITABLE, EDUCATIONAL, AND SCIENTIFIC ACTIVITIES THROUGH THE SUPPORT AND BENEFIT OF PINNACLE HEALTH FOUNDATION, AND PROVIDES MANAGEMENT AND CONSULTATIVE SERVICES TO AFFILIATED ENTITIES THAT QUALIFY FOR FEDERAL INCOME TAX EXEMPTION UNDER CODE SECTION 501(C)(3). 0 0 19364862 15184 23673638 PINNACLE HEALTH SYSTEM IS DEDICATED TO THE HEALTH AND WELL-BEING OF THE PEOPLE WE SERVE AND MAKES A CONCERTED EFFORT TO ESTABLISH ENDURING BONDS BETWEEN THE HEALTH SYSTEM AND THE COMMUNITY. PINNACLE HEALTH SYSTEM OFFERS AN ARRAY OF COMMUNITY SERVICES AND PROGRAMS TO IMPROVE HEALTH AWARENESS AMONG COMMUNITY GROUPS AND ORGANIZATIONS, PROVIDES OPTIMAL AND TIMELY CARE AND TREATMENT FOR TARGET POPULATIONS AND ADDRESSES DIVERSE COMMUNITY NEEDS. PINNACLE HEALTH PROVIDES VARIOUS TRAINING PROGRAMS AND TRACKS AND EVALUATES THE IMPACT OF ITS SERVICES AND PROGRAMS ON THE OVERALL HEALTH OF THE COMMUNITY. 19364862 1 0 0 1 0 0 0 0 0 0 1 1 0 1 0 1 0 1 0 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 X 30 0 1 108 1 0 1 BD 0 0 0 0 0 0 0 0 0 X 20 15 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X WILLIAM H PUGH CFO 7172318245 409 SOUTH SECOND STREET HARRISBURG PA 171058700 ROBERT L LYON 0.60 X 0 0 0 GEORGE F GRODE 0.70 X X 0 0 0 JOHN O CAMPBELL 0.50 X 0 0 0 FELIX GUTIERREZ MD 0.20 39.80 X 0 559968 26948 M RICHARD KLEIMAN 0.30 X 0 0 0 DEBORAH S MILLER 0.40 X 0 0 0 DENNIS WALSH 0.30 X 0 0 0 BONY R DAWOOD 0.50 X 0 0 0 GREGORY CAVOLI 0.20 X 0 0 0 STEVEN C KUSIC 0.60 X 0 0 0 KENNETH OKEN MD 0.60 X 0 0 0 MICHAEL L FERNANDEZ MD 0.30 X 0 0 0 JOHN C HICKEY 0.60 X 0 0 0 CAROLYN KREAMER PHD 0.30 X 0 0 0 MICHAEL A YOUNG 28.00 12.00 X X 1166902 0 24982 CLARENCE ASBURY 0.60 X X 0 0 0 JOHN CAVANAUGH PHD 0.30 X 0 0 0 KEVIN KELLY MD 0.30 39.70 X 0 146608 13252 ROGER LEVIN MD 0.50 X 0 0 0 TINA NIXON 0.40 X 0 0 0 CYNTHIA TOLSMA 0.50 X 0 0 0 E GERALD WOODWARD MD 0.30 X 0 0 0 WILLIAM H PUGH 6.40 33.60 X 707232 0 23111 CHRISTOPHER P MARKLEY ESQ 6.00 34.00 X 577350 0 29280 PHILIP GUARNESCHELLI 8.00 32.00 X 845342 0 33480 NANCY HAMMONDS 4.20 35.80 X 203233 0 42443 DANA KELLIS MD 8.00 32.00 X 654514 0 33751 COREY RIGBERG 10.80 29.20 X 489195 0 33971 NIRMAL JOSHI MD 32.00 8.00 X 461459 0 40473 THOMAS KESS 40.00 X 401372 0 31259 STEVEN ROTH 40.00 X 373584 0 32982 ROGER LONGENDERFER MD 0.00 X 313740 0 2082 6193923 706576 368014 32 1 1 0 HINDIN HEALTHCARE ADVISORS LLC 1100 CLINTON STREET SUITE 302 HOBOKEN NJ 07030 HEALTHCARE CONSULTING 411949 PRICEWATERHOUSECOOPERS LLP PO BOX 7247-8001 PHILADELPHIA PA 191708001 ACCOUNTING 338770 AMERICAN HEALTHCARE SOLUTIONS 1701 KENNETH AVE ARNOLD PA 15068 HEALTHCARE STAFFING 316539 STUDER GROUP 913 GULF BREEZE PARKWAY GULF BRIDGE FL 32561 HEALTHCARE LEADERSHIP CONSULTING 299100 DGA PARTNERS INC TWO BALA PLAZA SUITE 301 BALA CYNWYD PA 19004 MANAGEMENT CONSULTING 214568 12 MANAGEMENT & SUPPORT 624100 23673638 23673638 23673638 2336211 2336211 211444763 209227789 191 2216974 -191 2216783 2216783 MISCELLANEOUS INCOME 900099 502605 502605 502605 28729237 23673638 0 5055599 X 15184 15184 3564325 2645958 918367 8799371 6599528 2199843 802413 481448 320965 1227147 736288 490859 595308 446481 148827 430226 430226 378206 378206 128333 128333 877055 877055 5291118 4857911 433207 668979 668979 920928 920928 291520 291520 124684 124684 122532 122532 596324 596324 102575 102575 99660 99660 DUES AND SUBSCRIPTIONS 654542 654542 OTHER EXPENSES 320 320 25690750 19364862 6325888 0 350 350 24508757 27734904 0 200000 428522 926508 1229019 895518 371118 333501 132987542 135765070 24986071 16753175 27668876 7103713 25698525 45652550 236649761 234469771 4726451 5750911 4726451 5750911 X 231923310 228718860 231923310 228718860 236649761 234469771 X 3038487 3453491 -9696428 X 0 1 X 1 0 X X X 0 0 0 PINNACLE HEALTH HOSPITALS 251778644 3 0 1 1 15184 PINNACLE HEALTH MEDICAL SERVICES 251709054 3 0 1 1 0 COMMUNITY LIFE TEAM 231890444 9 0 1 1 0 PINNACLE HEALTH FOUNDATION 222691718 LINE 11, II 0 1 1 0 4 15184 SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: FORM 990, SCHEDULE A, PART I, LINE 1H, COLUMN (IV) - IS THE ORGANIZATION LISTED IN YOUR GOVERNING DOCUMENT?: THE GOVERNING DOCUMENTS OF PINNACLE HEALTH SYSTEM DO NOT SPECIFICALLY NAME THE ORGANIZATIONS TO WHICH SUPPORT IS PROVIDED; HOWEVER, IT DOES MEET THE REQUIREMENTS OF SECTION 509(A)-4(D)(2)(I) BY DESIGNATING ITS PUBLICLY SUPPORTED ORGANIZATIONS TO BE ANY OTHER ORGANIZATION AFFILIATED WITH THE CORPORATION WHICH QUALIFIES AS AN EXEMPT ORGANIZATION UNDER SECTIONS 501(C)(3), 509(A)(1), OR 509(A)(2). FORM 990, SCHEDULE A, PART I, LINE 1H, COLUMN (VII) - AMOUNT OF SUPPORT: PINNACLE HEALTH SYSTEM DOES NOT PROVIDE MONETARY SUPPORT TO ITS SUPPORTING ORGANIZATIONS, EXCEPT THOSE AMOUNTS SPECIFICALLY PROVIDED. SUPPORT IS PROVIDED IN THE FORM OF MANAGEMENT AND CONSULTATIVE SERVICES TO ITS AFFILIATED ORGANIZATIONS. X 0 0 128333 128333 128333 128333 25554368 734302608 25682701 734430941 1000000 1000000 250000 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 191027 194538 142553 128333 656451 250000 250000 250000 250000 1000000 1500000 975546 758848 216698 253473 136670 116803 333501 INVESTMENT IN UNITED HEALTH RISK, LTD. 10644501 C INVESTMENT IN UNITED CENTRAL PA RECIPROCAL RISK RETENTION GROUP 6108674 C 16753175 DUE FROM RELATED PARTIES 45652547 SUSPENSE ACCOUNT PAYROLL 3 45652550 X 21609245 3453491 -9696428 -6242937 27852182 877055 877055 28729237 24705332 0 24705332 877055 108363 985418 25690750 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: EQUITY METHOD INCOME - INSURANCE SUB FILING FORM 1120-PC (EIN#13-4224033) -614,377. EQUITY METHOD INCOME - FOREIGN SUB FILING FORM 5471 805,663. EQUITY METHOD INCOME - PINNACLE HEALTH CARDIOVASCULAR INSTITUTE -16,587,722. EQUITY METHOD INCOME - PINNACLE HEALTH VENTURES -162,287. EQUITY METHOD INCOME - PINNACLE HEALTH MEDICAL GROUP -3,894,209. INTERCOMPANY TRANSFERS 10,638,740. EXPENSE REIMBURSEMENT FROM PINNACLE HEALTH FOUNDATION 117,764. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES REPORTED BY FOREIGN SUB FILING FORM 5471 108,363. CENTRAL AMERICA AND THE CARIBBEAN - 1 1 INSURANCE COVERAGE N/A 1997486 1 1 0 0 1 1 1997486 0 1997486 0 0 1 0 0 0 METHOD USED TO ACCCOUNT FOR EXPENDITURES: SCHEDULE F, PART I, LINE 3: INSURANCE PREMIUMS PAID BASED ON CLAIMS EXPERIENCE 1 PINNACLE HEALTH HOSPITALS PO BOX 8700 HARRISBURG PA 17105 251778644 501(C)(3) 15184 GENERAL SUPPORT PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION ONLY PROVIDES SUPPORT TO RELATED ENTITIES. ALL ACCOUNTING FUNCTIONS ARE CENTRALLY DIRECTED AND INTERCOMPANY GRANTS ARE MONITORED THROUGH THE GENERAL ACCOUNTING SYSTEM. X X X X 1 1 0 0 0 0 0 1 0 FELIX GUTIERREZ MD 0 436606 0 120671 0 2691 0 15000 0 11948 0 586916 0 0 MICHAEL A YOUNG 676761 0 286446 0 203695 0 10623 0 14359 0 1191884 0 0 0 KEVIN KELLY MD 0 121255 0 0 0 25353 0 8550 0 4702 0 159860 0 0 WILLIAM H PUGH 459606 0 141324 0 106302 0 15000 0 8111 0 730343 0 0 0 CHRISTOPHER P MARKLEY ESQ 290096 0 84427 0 202827 0 15045 0 14235 0 606630 0 0 0 PHILIP GUARNESCHELLI 443532 0 134991 0 266819 0 15045 0 18435 0 878822 0 0 0 NANCY HAMMONDS 145942 0 35829 0 21462 0 24037 0 18406 0 245676 0 0 0 DANA KELLIS MD 352131 0 112376 0 190007 0 15000 0 18751 0 688265 0 0 0 COREY RIGBERG 249483 0 46044 0 193668 0 15047 0 18924 0 523166 0 0 0 NIRMAL JOSHI MD 313421 0 82125 0 65913 0 15033 0 25440 0 501932 0 0 0 THOMAS KESS 299754 0 50342 0 51276 0 8726 0 22533 0 432631 0 0 0 STEVEN ROTH 233766 0 67610 0 72208 0 14405 0 18577 0 406566 0 0 0 ROGER LONGENDERFER MD 308439 0 5086 0 215 0 0 0 2082 0 315822 0 0 0 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, PHILIP GUARNESCHELLI, AND CHRISTOPHER MARKLEY RECEIVED AS TAXABLE COMPENSATION INCOME FROM A NONQUALIFIED PLAN THAT HAD BEEN DEFERRED IN PRIOR YEARS. DR. FELIX GUTIERREZ IS A MEMBER OF THE BOARD OF DIRECTORS AND IS EMPLOYED AS A CARDIOLOGIST IN A RELATED ENTITY. HE WAS COVERED BY A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN IN CALENDAR YEAR 2012 AT A TOTAL COST OF $15,000. 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. MICHAEL A YOUNG PRESIDENT SPLIT DOLLAR INSURANCE PREMIUM ARRANGEMENT X 200000 200000 0 1 1 200000 BONY DAWOOD DIRECTOR AND OWNER, DAWOOD ENGINEERING 323941 THE ORGANIZATION PROVIDED ENGINEERING SERVICES TO THE FILING ENTITY. ALL TRANSACTIONS WERE AT ARM'S LENGTH. 0 JOHN CAMPBELL DIRECTOR JOHN CAMPBELL IS ADMINISTRATIVE VP OF PERSONAL TRUST WITH M&T BANK 135773 INVESTMENT MANAGEMENT SERVICES PROVIDED BY M&T BANK. 0 FELIX GUTIERREZ MD DIRECTOR FELIX GUTIERREZ, MD IS A PARTNER IN RIVERSIDE CARDIOLOGY 536754 RENTAL OF PHYSICIAN OFFICE SPACE 0 FORM 990, PART V, LINE 1: PINNACLE HEALTH SYSTEM, THE PARENT COMPANY, IS THE COMMON REPORTING AGENT FOR THE GROUP OF RELATED TAX-EXEMPT ORGANIZATIONS AND FILES ALL 1099 FORMS FOR THE FOLLOWING: COMMUNITY LIFE TEAM, PINNACLE HEALTH FOUNDATION, PINNACLE HEALTH HOSPITALS, AND PINNACLE HEALTH MEDICAL SERVICES. FORM 990, PART VI, SECTION B, LINE 11 THE AUTHORITY AND RESPONSIBILITY FOR REVIEW OF THE FORM 990 FOR PINNACLE HEALTH SYSTEM AND ASSOCIATED SUBSIDIARIES IS DELEGATED TO THE FINANCE AND AUDIT COMMITTEE OF THE 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 THE RESPECTIVE BOARDS OF DIRECTORS WILL BE GIVEN ACCESS TO VIEW HIS OR HER ENTITY'S 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. OTHER FEES FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 1,048,461. MANAGEMENT AND GENERAL EXPENSES 3,509. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,051,970. CONSULTING: PROGRAM SERVICE EXPENSES 3,730,955. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,730,955. PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 78,495. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 78,495. RECRUITING FEES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 429,698. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 429,698. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: EQUITY METHOD INCOME - INSURANCE SUB FILING FORM 1120-PC (EIN#13-4224033) -614,377. EQUITY METHOD INCOME - UNITED HEALTH RISK LTD 805,663. EQUITY METHOD INCOME - PINNACLE HEALTH CARDIOVASCULAR INSTITUTE -16,587,722. EQUITY METHOD INCOME - PINNACLE HEALTH VENTURES INC. -162,287. EQUITY METHOD INCOME - PINNACLE HEALTH MEDICAL GROUP -3,894,209. INTERCOMPANY TRANSFERS 10,638,740. EXPENSE REIMBURSEMENT FROM PINNACLE HEALTH FOUNDATION 117,764. PINNACLE HEALTH MEDICAL SERVICES 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251709054 PHYSICIAN SERVICES PA 501(C)(3) LINE 11B, II PINNACLE HEALTH SYSTEM 1 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 1 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 1 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 1 WEST SHORE SURGERY CENTER LTD 409 SOUTH SECOND STREET PO BOX 8700 HARRISBURG PA 171058700 251821415 SURGICAL CARE - MEDICAL SERVICES PA N/A UNITED CENTRAL PA RISK RETENTION GROUP 76 ST PAUL ST SUITE 500 BURLINGTON VT 054014477 134224033 CAPTIVE INSURANCE VT N/A C -239907 21974894 1.00000 1 UNITED HEALTH RISK LTD PO BOX 2450 HAMILTON HM JX BD CAPTIVE INSURANCE BD N/A C -532545 15364967 1.00000 1 PINNACLE HEALTH CARDIOVASCULAR INSTITUTE PO BOX 8700 HARRISBURG PA 17105 320321362 PHYSICIAN SERVICES PA PINNACLE HEALTH SYSTEM C -13539567 13844417 1.00000 1 PINNACLE HEALTH MEDICAL GROUP PO BOX 8700 HARRISBURG PA 17105 800771040 PHYSICIAN SERVICES PA PINNACLE HEALTH SYSTEM C -3894210 6797451 1.00000 1 PINNACLE HEALTH VENTURES INC PO BOX 8700 HARRISBURG PA 17105 611677624 HOLDING COMPANY PA PINNACLE HEALTH SYSTEM C -144 30377515 1.00000 1 PINNACLE HEALTH IMAGING INC PO BOX 8700 HARRISBURG PA 17105 231718571 IMAGING SERVICES PA PINNACLE HEALTH VENTURES INC C -267706 40136906 1.00000 1 CARDIOLOGY PRACTICE INC PO BOX 8700 HARRISBURG PA 17105 800658616 PHYSICIAN SERVICES PA N/A C 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 PINNACLE HEALTH HOSPITALS R 38001728 COST PINNACLE HEALTH IMAGING R 9609508 COST CARDIOLOGY PRACTICE INC R 1735749 COST PINNACLE HEALTH CARDIOVASCULAR INSTITUTE S 33119278 COST PINNACLE HEALTH MEDICAL GROUP S 13917722 COST COMMUNITY LIFE TEAM S 1781931 COST PINNACLE HEALTH MEDICAL SERVICES S 17143436 COST PINNACLE HEALTH CARDIOVASCULAR INSTITUTE S 8480983 COST PINNACLE HEALTH MEDICAL GROUP S 12231658 COST PINNACLE HEALTH IMAGING S 11702903 COST CARDIOLOGY PRACTICE INC S 9053026 COST TRANSACTIONS WITH RELATED ORGANIZATIONS: PART V, LINE 2 PINNACLE HEALTH SYSTEM CANNOT SEPARATELY STATE AMOUNTS FOR EACH TRANSACTION IDENTIFIED WITH A RELATED ORGANIZATION. ITS ACCOUNTING SYSTEM NETS ALL TRANSACTIONS INTO A SINGLE AMOUNT, WHICH IS REPORTED AS A GIFT, GRANT AND/OR CAPITAL CONTRIBUTION TO OR FROM RELATED ORGANIZATIONS. PINNACLE HEALTH SYSTEM 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251778658 X 0 128333 128333 25554368 25682701 1000000 250000 0 0 0 PINNACLE HEALTH HOSPITALS 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251778644 0 0 0 628197294 628197294 1000000 250000 0 0 0 PINNACLE HEALTH MEDICAL SERVICES 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 251709054 0 0 0 73215506 73215506 1000000 250000 0 0 0 PINNACLE HEALTH FOUNDATION 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 222691718 0 0 0 1073623 1073623 182362 45591 0 0 0 COMMUNITY LIFE TEAM 409 S SECOND STREET PO BOX 8700 HARRISBURG PA 17105 231890444 0 0 0 6640211 6640211 482011 120503 0 0 0