2014-08-14T09:49:41-05:00 2013-09-30 BKD LLP 190 E Capitol Street Ste 500 Jackson MS 392012190 990 2012-10-01 640819193 Webster Health Services Inc % JOE REPPERT WEBS 6623773977 830 South Gloster Street Suite Tupelo MS 38801 JOSEPH REPPERT 6623773977 2014-08-15 true Penny Wood CPA 6019486700 2014-08-15 2012 2015-11-30 17:44:51Z Joe Reppert 830 South Gloster Street Tupelo MS 38801 20963659 false X www.nmhs.net/eupora/ X 1992 DE Webster Health Services, Inc. operates a 38-bed acute care hospital and a 35-bed long-term care facility in Eupora, Mississippi. 5 5 288 25 0 1788218 9487 19552828 19034367 37413 39999 978140 969860 22356599 20053713 0 0 0 0 11726700 11763618 0 0 0 11441030 10903333 23167730 22666951 -811131 -2613238 16733330 13878059 14947482 12283362 1785848 1594697 WEBSTER HEALTH SERVICES, INC. LEASES AND OPERATES A 38-BED ACUTE CARE HOSPITAL AND A 35-BED LONG-TERM CARE FACILITY IN EUPORA, MISSISSIPPI CALLED NORTH MISSISSIPPI MEDICAL CENTER-EUPORA (NMMC-EUPORA). NMMC-EUPORA IS PART OF THE NORTH MISSISSIPPI HEALTH SERVICES (NMHS) ORGANIZATION. THE MISSION OF NMHS IS TO CONTINUOUSLY IMPROVE THE HEALTH OF THE PEOPLE OF OUR REGION. NMMC-EUPORA WORKS TO ACHIEVE THIS CORPORATE MISSION TO IMPROVE THE HEALTH OF THE PEOPLE OF THIS REGION BY PROVIDING CONVENIENTLY ACCESSIBLE, COST-EFFECTIVE HEALTH CARE OF THE HIGHEST QUALITY. false false 21139822 19249630 NMMC- Eupora serves Webster County and the surrounding area. In fiscal year 2013, there were 1,399 inpatient admissions, 8,665 emergency department visits, and 9,463 outpatient visits. NMMC-Eupora uses Press Ganey, the largest patient satisfaction survey company in the nation, that works with more than 7,000 healthcare facilities. Randomly selected patients are asked about their experience with inpatient, outpatient, ER, and long term care services. Outpatient services include physical therapy, speech therapy, occupational therapy, laboratory and pulmonary rehabilitation. Radiology services include echocardiogram, nuclear medicine, ultrasound, mammography, bone density and computerized tomography (CT) and magnetic resonance imaging (MRI). NMMC-Eupora also offers 24-hour paramedic-level emergency services, outpatient rehabilitation services, a child care/learning center and Wellness Center. To further rehabilitation after a patient's acute care stay in the hospital, 10 of the hospital beds are designated for Swing Bed Care. In 2003, NMMC-Eupora opened a $10 million expansion project which involves a two-story, 30,800 square foot expansion and renovation of 30,000 square feet of existing space. The new construction provided for 38 private inpatient rooms, along with new facilities for admissions, outpatient services, and food and nutrition services. The renovated space encompasses support services as well as some clinical services. One of the primary ways NMMC-Eupora serves the community is by providing care to various populations for which it receives no compensation or receives compensation at rates significantly less than established rates. The board of directors of NMMC-Eupora has established a policy under which the hospital provides care, without charge, to needy members of its community. The charity care policy states that NMMC-Eupora will provide necessary hospital services to patients free of charge with household income levels based on the median income for Mississippi compared to the median income nationally. The Mississippi Adjusted Poverty Guidelines is approximately 74% of the federal poverty rate. The policy further provides patients with household income levels above the Mississippi Adjusted Poverty Guidelines will be liable for no more than the amount that their household income exceeds the applicable federal poverty guidelines. The policy applies to individuals who reside in Webster County. Patients from outside the county may also be granted charity care based on the judgment of NMMC-Eupora management depending on their individual circumstances. The policy also requires the patient to cooperate fully with NMMC-Eupora's request for information with which to verify the patient's eligibility. Following that policy, the hospital maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges forgone for services and supplies furnished under its charity care policy. Charges forgone, based on established rates, totaled approximately $549,738 in fiscal year 2013. Based on the gross charges provided to charity patients compared to total hospital gross charges, 1.1% of all services in fiscal year 2013 were provided on a charity basis. The net cost of charity care provided by NMMC-Eupora was approximately $200,000 in fiscal year 2013. The total cost estimate is based on the ratio of costs to charges for NMMC-Eupora. All of the forgone charges mentioned above are netted against patient service revenue to arrive at net patient service revenue as reflected as program service revenue on Part VIII of Form 990 in order to be consistent with financial statement reporting and are not reported as functional expenses on the tax return. 21139822 true true false false false false false false false false true false false false true true true true false false false false false false false false true true false false true false false false false false false false false false false false false false true false false false true 13 0 288 true false false false false false false false false false false X 5 5 false false false false true true true true true false false false true true true true true true true false X JOE REPPERT 6623773977 830 SOUTH GLOSTER STREET Tupelo MS 38801 Sandra Dewberry 1.0 0.0 X 0 0 Henry Flowers 1.0 0.0 X 0 0 0 Frances Hyde 1.0 0.0 X 0 0 0 Harold Whitaker 1.0 0.0 X 0 0 0 Mike McCully 1.0 0.0 X 0 0 0 Bruce Toppin 1.0 39.0 X 0 342261 8840 Joe Reppert 1.0 39.0 X 0 630943 8840 Timothy H Moore 5.0 35.0 X 0 205104 6742 Rodger Brown 5.0 35.0 X 423957 8456 James K Wilson MD 40.0 0.0 X 261542 0 10040 Jewell J Huffman 40.0 0.0 X 397293 0 8456 Robert Jones 40.0 0.0 X 195924 0 7659 David A Dabbs 40.0 0.0 X 127461 0 7904 Emily M Reed 40.0 0.0 X 111225 0 7855 Gerald Wages 0.0 40.0 X 214043 3846 1093445 1816308 78638 6 true true false Correct Care Inc 17438 Hard Hat Drive COVINGTON LA 70435 Physician Fees 668840 Medicomp 119 S E First Street MAGEE MS 39111 Respiratory svc 654115 Alliance Healthcare PO Box 96485 CHICAGO IL 606936485 Imaging Services 271867 Prime Care Nursing PO Box 852 GREENVILLE MS 387020852 Nursing Contract Svc 100785 4 9487 9487 Net Patient Service Revenue 900099 19017267 19017267 Related Rental Income 900099 17100 17100 19034367 24504 24504 0 0 0 0 0 925441 909946 15495 15495 15495 0 0 0 Cafeteria Income 900099 215263 215263 Childcare Income 900099 252180 252180 Employee Drugs 900099 458013 458013 44404 44404 969860 20053713 19249630 794596 0 0 0 0 0 0 8363028 7276603 1086425 667445 667445 2136454 2136454 596691 520652 76039 299513 299513 31955 31955 35973 35973 0 0 1862 1862 2320222 2320222 24783 24783 919020 919020 202183 202183 0 409008 409008 35788 35788 0 17443 17443 8416 8416 0 1562486 1562486 -2776 -2776 Bad Debt Expense 2636413 2636413 MEDICAL SUPPLIES 1964891 1964891 Taxes and Licenses 204803 204803 COLLECTION FEES 63702 63702 167648 167648 22666951 21139822 1527129 0 490 712 1111136 411993 0 0 3034941 2771672 0 0 0 0 0 0 359895 376153 0 0 23816887 14675446 10297218 9141441 1380932 773294 0 0 0 0 0 0 548718 402794 16733330 13878059 5431287 2597599 0 0 0 0 7431902 7340063 0 0 0 0 0 0 0 0 2084293 2345700 14947482 12283362 X 1725997 1525213 41205 49818 18646 19666 1785848 1594697 16733330 13878059 X -2613238 5973 2416114 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 220889 220889 7398084 4127961 3270123 16082034 10444035 5637999 115880 103450 12430 9141441 0 Due to Affiliates 2345700 2345700 X 17433504 5973 -2636413 -2630440 20063944 -10231 -10231 20053713 20040769 10231 10231 20030538 2636413 2636413 22666951 Part X, Line 2: The Hospital applies Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740 for Income Taxes ("Topic 740"), which clarifies the accounting for uncertainty in income tax positions, and provides guidance on when tax positions are recognized in an entity's financial statements and how the values of these positions are determined. There has been no impact on the Hospital's financial statements as a result of Topic 740. Part XI, Line 2d: Bad debt expense is netted with revenue on the financial statements but included in expense on the return. Part XI, Line 4b: Rental expenses are netted with rental revenue on the return but included in expenses on the financial statements. Part XII, Line 2d: Rental expenses are netted with rental revenue on the return but included in expenses on the financial statements. Part XII, Line 4b: Bad debt expense is netted with revenue on the financial statements but included in expense on the return. true true X true X 74. false false true false true true 200259 200259 0.01000 2455484 3922161 -1466677 2655743 3922161 -1266418 0.01000 2655743 3922161 -1266418 0.01000 false 2636413 6976650 8449220 -1472570 X true true 1 1 Webster Health Services

500 Highway 9 South Eupora MS 39744

X Webster Health Services 1 true X X X X X X X 12 true true true X X X X X X X X false false true true 74. false true X X X X X true true X X X X X true false X X X true X false false 3 Webster Health Services Nursing Home

500 Highway 9 South Eupora MS 39744

Long Term Acute Care Facility Webster Health Services Wellness Center

111 East Walnut Eupora MS 39744

Wellness Center Eupora Pediatric Rural Health Clinic

15 Medical Plaza Eupora MS 39744

Pediatric Clinic Part I, Line 3c: Webster Health Services, Inc. does not use the Federal Poverty Guidelines to determine eligibility for discounted care. The Federal Poverty Guidelines are used only for free care. Discounted care is given to anyone regardless of income level if they do not have insurance. Webster Health Services will provide its prevalent managed care discount to any patient that meets Webster Health Services' definition of uninsured (an individual having no third party coverage by commercial third party insurer, an ERISA plan, Medicare, Medicaid, SCHIP, Champus or other coverage for all or part of their bill). Part I, Line 6a: Webster Health Services' community benefit information is included in the community benefit report of its parent company, North Mississippi Health Services, Inc. North Mississippi Health Services (NMHS) is a diversified regional health care organization, which serves 24 counties in north Mississippi and northwest Alabama from headquarters in Tupelo, MS. The NMHS organization covers a broad range of acute diagnostic and therapeutic services, offered through North Mississippi Medical Center in Tupelo; a community hospital system with locations in Eupora, Iuka, Pontotoc, West Point, MS, and Hamilton AL; North Mississippi Medical Clinics, a regional network of more than 30 primary and specialty clinics; and nursing homes. NMHS offers a comprehensive portfolio of managed care plans. Part I, Line 7g: Not Applicable Part I, Line 7, column (f): Bad Debt Expense of $2,636,413 was included in total expense on Form 990, Part IX, Line 25, Column (A), but was subtracted from total expense for purposes of calculating the percentage of total expense in column (F). Part I, Line 7: A cost to charge ratio was used for the amounts reported in the table for Line 7. The cost to charge ratio for Line 7 was calculated using Worksheet 2. Part III, Line 4: Webster Health Services' financial statements do not include a footnote specifically concerning bad debt. Bad debt is shown as a separate line item on the face of the income statement. The amount of bad debt booked each year is based on a review of outstanding receivables and their age from date of service. The older the account, the higher the reserve percentage used to estimate bad debt. Accounts are considered delinquent and subsequently written off as bad debts based on individual credit evaluations and specific circumstances of the account. Bad debt expense reported in Part III Line 2 matches the amount of bad debt expense reported on Webster Health Service's audited financial statements. Webster Health Services (WHS) follows the Catholic Health Association guidelines and does not include bad debt in any community benefit amounts. WHS, however, believes that some portion of bad debt results from patients who could qualify for charity care but has no way of making an estimate of the amount and therefore has answered "zero" for Part III Line 3. Part III, Line 8: The ratio of cost to charges used in the calculation of costs for Medicare was taken from the Medicare Cost Report. Lines 5, 6, & 7 do not include certain Medicare programs and costs and thus do not reflect all of the organization's revenues and costs associated with its participation in Medicare programs. Additional revenues and costs not reported on Lines 5, 6, & 7 include those associated with the organization's Medicare outpatient lab, ambulance and therapy services. Total revenues from these activities were $936,746 and total costs were $1,424,751 for a net shortfall of $488,005. When combined with the shortfall reported on Line 7, the net shortfall from all Medicare programs is $1,960,575. Part III, Line 9b: Webster Health Services does not pursue collection of amounts determined to qualify as charity care. Part V, Line 1j: A description of health indicators that affect the overall health of the community enabling access to health care. Part V, Line 3: Telephone and mail surveys involving various people in the community were conducted and the findings were summarized in the CHNA report. Webster Health Services' Community Health Department also works closely with the local and state departments of health, which has resulted in several projects concerning obesity and smoking cessation. Part V, Line 4: Webster Health Services is part of the North Mississippi Health Services' diversified regional healthcare system. North Mississippi Health Services operates five community hospitals in addition to Webster Health Services. The CHNA included Webster Health Services, Clay County Medical Corporation, Pontotoc Health Services, North Mississippi Medical Center, Tishomingo Health Services, and Marion Regional Medical Center. Part V, Line 5c: The CHNA report was not posted on Webster Health Services' website by 9/30/2013. However, the report has since been posted to the website at http://www.nmhs.net/communityreport.php. Part V, Line 7: There were numerous health needs identified in the CHNA report as the state of Mississippi ranks last in the U.S. regarding overall health. It is not financially feasible for Webster Health Services to address each of the needs identified. Instead, Webster Health Services has prioritized and addressed the needs that cause the biggest concern for the community. Currently, Webster Health Services is addressing the most pressing needs of obesity (including child hood obesity), smoking cessation, and diabetes. Part V, Line 11: Webster Health Services, Inc. does not use the Federal Poverty Guidelines to determine eligibility for discounted care. The Federal Poverty Guidelines are used only for free care. Discounted care is given to anyone regardless of income level if they do not have insurance. Webster Health Services will provide its prevalent managed care discount to any patient that meets Webster Health Services' definition of uninsured (an individual having no third party coverage by commercial third party insurer, an ERISA plan, Medicare, Medicaid, SCHIP, Champus or other coverage for all or part of their bill). Part VI, Line 2: Needs Assessment Webster Health Services utilizes varied but complimentary methods to assess the health care needs of the community it serves. Webster Health Services and Webster County are included in the North Mississippi Health Services Community Health Assessment which is performed every three years and provides information on health status, utilization of health services, healthy beliefs and satisfaction with health care services. The North Mississippi Health Services Community Health Assessment covers the 24 county service area including Webster County and provides information by county. In addition, the North Mississippi Health Services Community Relations Facilitator conducts routine visits with our internal and external stakeholders across the entire service area including Webster County. The information gathered through several qualitative survey questions is used to determine our community's needs for the entire service area as well as the local service area for each hospital such as Webster Health Services. Part VI, Line 3: Patient Education of Eligibility for Assistance Explanations of the Webster Health Services charity care policy are communicated in a variety of forms including signage at all admission and registration areas, on the web site, on bills and statements, and in admission packets. Financial counselors assist the patient and responsible parties with determining eligibility for government programs, primarily Medicaid, and charity care status. The patient can apply for charity care at any time from the date of service through the collection process and once qualified and approved all collection efforts are stopped. Part VI, Line 4: Community Information Webster Health Services serves more than 10,000 people in Webster County, MS and the surrounding area. The population for the service area is projected to remain essentially flat over the next five years. According to the 2010 census, age demographics for the service area show that approximately 25% of the population is under 18 years of age, approximately 58% is between 18 and 64 years of age and that 17% is 65 or older. Caucasians make up 77% of the service area's population while African Americans make up 21% and Hispanics and others make up 2%. The median household income for 2007-2011 was $36,392 for the service area, which is below the overall average for Mississippi and significantly less than the nationwide average. The patient population for Webster Health Services is covered by insurance or is uninsured as follows: 61.17% Medicare, 12.04% Medicaid, and 18.36% private insurance with 8.43% being uninsured. Part VI, Line 5: Promotion of Community Health Webster Health Services has a commitment to a wide variety of community health outreach activities, which are coordinated by the community health coordinator and are staffed by Webster Health Services employees who volunteer their time to help with these events and activities. The community health coordinator assists in educating the community on health-related issues by organizing and presenting various health fairs and seminars. These events are held at local businesses, schools and community organizations and address a variety of health-related topics. In addition, the hospital sponsors cholesterol, blood pressure, vision, memory, and heart-risk screening events, through which tests are made available to the public for a nominal fee or at no charge with the majority of the costs incurred absorbed by the hospital. Part VI, Line 6: Affiliated Health Care System As noted above, Webster Health Services (WHS) is part of North Mississippi Health Services (NMHS). NMHS operates North Mississippi Medical Center, four other community hospitals in addition to WHS, as well as, North Mississippi Medical Clinics, which operates more than 30 medical clinics. Some of these facilities operate at an ongoing financial loss and NMHS provides operating funds in the form of working capital loans that have no set repayment date. These working capital loans have historically been converted to capital transfers in many cases, and therefore, the loans are forgiven such that the facility never makes repayment. NMHS does this in order to provide access to a variety of services across the service area and is an intentional part of its business model. The Community Health department that is part of NMMC coordinates a variety of community health activities across the service area as well. Part VI, Line 7: State filing of community benefit report Webster Health Services does not file a community benefit report with the state of Mississippi as there is no requirement to do so. The community benefit report is available online at nmhs.net. X X X X X false true false false false false false false false Bruce Toppin 0 238115 0 97237 0 6909 0 5000 0 3840 0 351101 James K Wilson MD 259203 0 1979 0 360 0 5000 0 5040 0 271582 0 Joe Reppert 0 406866 0 206154 0 17923 0 5000 0 3840 0 639783 Jewell J Huffman 375864 0 3877 0 17552 0 5000 0 3456 0 405749 0 Robert Jones 184227 0 6216 0 5481 0 3819 0 3840 0 203583 0 Timothy H Moore 0 147989 0 39643 0 17472 0 3462 0 3280 0 211846 Gerald Wages 77207 109934 26902 3558 288 217889 Rodger Brown 246866 107501 69590 5000 3456 432413 Part I, Line 4b: Participant: Joe Reppert $17,023 Rodger Brown $42,861 Terms and Conditions: North Mississippi Health Services, Inc. (NMHS) adopted the Management Deferred Annuity Plan (the Plan) on October 1, 1998. Participants in the Plan are designated by the Compensation Committee of the Board of Directors of NMHS. At the beginning of each Plan Year, NMHS shall pay a contribution, less withholding for taxes, to the Participant's annuity contract, which is a deferred annuity contract selected, owned, and controlled by the Participant. The contribution is determined by multiplying the participant's compensation in the preceding plan year by a percentage set forth in Appendix B of the Plan. A participant is terminated from the Plan on the earliest of: (1) the date the Board determines the employee is no longer a participant; (2) the date the Participant retires; (3) the date that the Participant dies; or (4) the date the Participant no longer is employed by NMHS for reasons other than retirement or death. Form 990, Page 6, Part VI, Section A, Line 6: Webster Health Services is a not-for-profit, nonstock, membership corporation of which North Mississippi Health Services, Inc. is the sole member and has sole voting control. Form 990, Page 6, Part VI, Section A, Line 7a: The Governance Committee of North Mississippi Health Services, Inc. (NMHS), which is made up of past Chairmen, nominate candidates for the Board. These candidates are then approved by the Board of NMHS. Form 990, Page 6, Part VI, Section A, Line 7b: The Board of North Mississippi Health Services, Inc. approves all transactions that exceed $1 million. Form 990, Page 6, Part VI, Section B, Line 11b: The Form 990 goes through a review process in the Accounting Department. The accountant for each facility reviews the returns for reasonableness and accuracy. All totals are tied to the audit reports, and all amounts are cross-referenced to schedules or other parts of the actual return. Once the accountant reviews, the Accounting Supervisor and the Director of Accounting reviews. The Supervisor does a detailed review by checking the return for the same items that the accountant checked for. Then the Director does a more high level review, reading the return for reasonableness and comparing prior year amounts to current year amounts. Finally, the VP of Finance reviews the return for reasonableness. The returns are then sent to the Executive VP/Treasurer to be reviewed. The Treasurer signs the return and it is then sent to the IRS. Form 990, Page 6, Part VI, Section B, Line 12c: An annual conflict of interest questionnaire is required to be completed by all officers and directors of the organization. The questionnaire is reviewed by North Mississippi Health Services, Inc.'s compliance officer and Conflict Committee. The Conflict Committee reviews conflict transactions and makes recommendations to the board of directors regarding conflict transactions in accordance with the organization's conflict of interest policy. All members of the Conflict Committee are prohibited from engaging in transactions with the organization or its affiliates during their tenure on the Conflict Committee and one year after their service concludes. Form 990, Page 6, Part VI, Section B, Line 15a&b: An independent compensation consulting firm, The Hay Group, is used to help establish the compensation of the CEO, Executive Director, other officers, and key employees. The firm presents their independent analysis, which contains comparability data, to the Compensation Committee of North Mississippi Health Services, Inc (NMHS). In addition to this, the VP of Human Resources obtains another independent analysis from another compensation consulting firm in order to verify the information provided by The Hay Group. The compensation of the individuals are then approved by the Compensation Committee. The salaries of NMHS' CEO and senior leadership are then reviewed by the NMHS Board of Directors. The individual whose compensation is being discussed is not present during the discussion or approval of their compensation. The discussions and decisions regarding the compensation are documented in the minutes of the meetings. Compensation of these individuals is approved annually. Form 990, Page 6, Part VI, Section C, Line 19: The governing documents, conflict of interest policy, and financial statements are available to the public upon request. A consolidated statement of operations is available on the organization's website. Form 990, Page 12, Part XI, Line 9: Pension-related changes other than net periodic pension cost: 2,406,481 Increase in interest in net assets of affiliated foundation: 9,633 Total other changes in net assets or fund balance = 2,416,114 North MS Management Services Inc 830 S Gloster Street Tupelo MS 38801 640762694 Mgmt & Admin DE 501(c)(3) 11-I NA false North MS Health Services Inc 830 S Gloster Street Tupelo MS 38801 640653269 Mgmt Services DE 501(c)(3) 11-II NA false Clay County Medical Corporation 830 S Gloster Street Tupelo MS 38801 640668465 Hospital DE 501(c)(3) 3 NA false Tishomingo Health Services Inc 830 S Gloster Street Tupelo MS 38801 640741047 Hospital DE 501(c)(3) 3 NA false Pontotoc Health Services Inc 830 S Gloster Street Tupelo MS 38801 640751410 Hospital DE 501(c)(3) 3 NA false North MS Medical Clinics Inc 830 S Gloster Street Tupelo MS 38801 640787918 Med Clinics DE 501(c)(3) 3 NA false Tupelo Service Finance Inc 844 Cliff Gookin Blvd Tupelo MS 38801 640508308 Collections DE 501(c)(3) 3 NA false North MS Medical Center Inc 830 S Gloster Street Tupelo MS 38801 640662976 Hospital DE 501(c)(3) 3 NA false Marion Regional Medical Center Inc 830 S Gloster Street Tupelo MS 38801 640926753 Hospital DE 501(c)(3) 3 NA false North MS Emergency Services Inc 830 S Gloster Street Tupelo MS 38801 640780130 ER Physicians DE 501(c)(3) 9 NA false North MS Health Link Inc 830 S Gloster Street Tupelo MS 38801 640715886 Medical Services DE NA C Corp North MS Enterprises Inc 830 S Gloster Street Tupelo MS 38801 640658059 Medical Services DE NA C Corp Professional Practice Management Inc 830 S Gloster Street Tupelo MS 38801 721390014 Med Serv Mgmt DE NA C Corp Acclaim Inc 830 S Gloster Street Tupelo MS 38801 721356116 Hlth Care Claims DE NA C Corp North MS Support Services Inc 830 S Gloster Street Tupelo MS 38801 260718275 Support Services DE NA C Corp false false false false false false false false false false false false true false true true true true false