2013-05-13T18:32:13-05:00 2012-06-30 ERNST & YOUNG US LLP 401 CONGRESS AVENUE SUITE 1800 AUSTIN TX 78701 990 2011-07-01 752765566 COVENANT HEALTH SYSTEM % SHARON CLARK COVE 8067251011 3615 19TH STREET LUBBOCK TX 794101203 JEANNA ADLER 2013-05-13 5124789881 2011 2016-02-24 21:20:13Z RICHARD PARKS 3615 19TH STREET LUBBOCK TX 794101203 570190305 false X WWW.COVENANTHEALTH.ORG X 1998 TX SEE SCHEDULE O 20 15 4394 94 7638488 -932827 6338336 6224675 534157611 561027764 6396069 2937866 0 0 546892016 570190305 3951530 4514300 0 0 203718129 212110410 0 0 0 311898143 305351765 519567802 521976475 27324214 48213830 578229478 634343422 201667947 222471839 376561531 411871583 X SEE SCHEDULE O false false 491470605 4514300 561027764 SEE SCHEDULE O 491470605 true true false true false false false false false false true false false true true true false true false false true false false false false false true true true false true false false false false false false true true true false false false true true true true false false true 435 0 true 4394 true true true false false false false false false false false false X 20 15 false false false false true true true true true false false true true true true true true false true true false X SHARON CLARK 8067255234 3615 19TH STREET LUBBOCK TX 794101203 X JOHN C ANDERSON 3.0 X 0 0 0 MICHAEL DANCHAK MD 2.0 X 0 0 0 SISTER SHARON BECKER CSJ 2.0 X 0 0 0 SUZANNE BLAKE 2.0 X 0 0 0 TODD BRODBECK DO 2.0 X 0 0 0 JOHN HAMILTON 2.0 X 0 0 0 JOE DEE BROOKS 2.0 X 0 0 0 KITTY HARRIS PHD 2.0 X 0 0 0 SAM HAWTHORNE 2.0 X 0 0 0 BRENT HOFFMAN 2.0 X 0 0 0 JANIE RAMIREZ 3.0 X X 0 0 0 VAN MAY 5.0 X X 0 0 0 MICHAEL ROBERTSON MD 2.0 X 36000 0 0 JUAN SANCHEZ MUNOZ PHD 2.0 X 0 0 0 SR MARY THERESE SWEENEY CSJ 3.0 X 0 0 0 RICHARD PARKS 35.0 X X 0 1036771 24473 TEB THAMES MD 2.0 X 0 0 0 DAN POPE 2.0 X 0 0 0 JOHN ZWIACHER 3.0 X X 0 0 0 MONSIGNOR DAVID CRUZ 2.0 X 0 0 0 SISTER SUZANNE SASSUS CSJ 2.0 X 0 0 0 JO ANN ESCASA-HAIGH 2.0 X 0 600573 43728 TROY THIBODEAUX 30.0 X 424570 0 4245 JOHN GRIGSON 26.0 X 769606 0 30291 CLARK COCHRAN 48.0 X 244993 0 10554 SUSAN NEVES 50.0 X 548756 0 8196 STEVEN MCCAMY 5.0 X 680606 0 33969 ROXIE TAYLOR 28.0 X 432968 0 26099 SHARYN IVORY 50.0 X 338548 0 16750 STEVEN BECK 30.0 X 254238 0 29683 KAREN BAGGERLY 50.0 X 387544 0 33442 RODNEY CATES 50.0 X 354613 0 33105 SHARON PRATHER 30.0 X 378646 0 36835 SCOTT ROBINS MD 50.0 X 470006 0 20856 SHARON CLARK 50.0 X 440052 0 34144 MURALI NAIR 40.0 X 295280 0 38938 MELINDA CLARK 0.0 X 0 282512 0 6056426 1919856 425308 187 true true false ARAMARK 25271 NETWORK PLACE CHICAGO IL 606731252 FOOD SERVICES 7309834 TTUHSC 3601 4TH STREET STOP 6207 SUITE 2 LUBBOCK TX 79430 PHYSICIAN SERVICES 5764116 NORTHSTAR ANESTHESIA PA 2000 E LAMAR BLVD SUITE 400 ARLINGTON TX 76006 ANESTHESIA SERVICES 4452809 ANTHONY MECHANICAL INC PO BOX 3886 LUBBOCK TX 79452 CONSTRUCTION 3976343 NURSEFINDERS PO BOX 910738 DALLAS TX 783910738 STAFFING 3628439 194 3871619 2353056 1224914 6224675 PATIENT REVENUE 622110 530714637 530714637 MEDICAL OFFICE BUILDING 531120 4590348 4590348 OUTREACH LAB SERVICES 621511 4411667 4411667 BILLING/MANAGEMENT FEES 541611 3926240 699419 3226821 CAFETERIA 722310 3329522 3329522 14055350 14055350 561027764 2937866 2937866 0 0 0 0 0 0 0 570190305 553389276 7638488 2937866 4514300 4514300 0 0 0 3100937 3100937 31420 31420 144387777 134216430 10171347 9753332 9753332 42510864 41048005 1462859 12326080 11605214 720866 72260 72260 20430 20430 810678 640436 170242 21638 21638 0 0 105183259 99002219 6181040 3256753 92946 3163807 14467678 12050470 2417208 6842703 5794631 1048072 0 8895494 8889471 6023 929840 433109 496731 0 242169 145975 96194 7952556 7952556 0 33886258 33886258 1967490 1796577 170913 MEDICAL SUPPLIES 119037726 118969563 68163 ALL OTHER EXPENSES 1764833 564785 1200048 521976475 491470605 30505870 0 31828389 4920354 50390345 84130162 0 0 67348577 67413297 0 0 0 0 0 0 11235562 11248800 2133907 2363148 752524300 520724968 249313221 231799332 104471726 130071241 11241183 8856597 0 0 0 0 50266568 93540491 578229478 634343422 37339385 39074471 0 0 0 0 0 0 0 0 0 0 2907934 2714955 0 0 161420628 180682413 201667947 222471839 X 376561531 411871583 0 0 0 0 376561531 411871583 578229478 634343422 X 48213830 -12903778 X X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 21638 21638 false PORTION OF DUES PAID TO HOSPITAL ASSOCIATIONS FOR LOBBYING ACTIVITIES SCHEDULE C, PART II-B, LINE 1I DURING THE PAST YEAR, THE ST. JOSEPH HEALTH SYSTEM HAS CONDUCTED AN ADVOCACY EFFORT WHICH INCLUDED SOME LOBBYING ACTIVITY. THESE INCLUDED MEETING WITH LOCAL, STATE, AND FEDERAL LEGISLATORS, THEIR STAFF AND OTHER GOVERNMENTAL OFFICIALS; AND COMMUNICATIONS TO LEGISLATORS ADVOCATING POSITIONS ON LEGISLATION. 18349427 18349427 390601034 261942326 128658708 20246067 14308623 5937444 308106431 244474019 63632412 15221341 15221341 231799332 LONG TERM DUE FROM AFFILIATES 79861360 ASSETS HELD IN TRUSTS 11698109 DEFERRED FINANCING COSTS-NET 1367672 BOARD DESIGNATED ASSETS 369832 OTHER RECEIVABLES 243518 93540491 0 LONG TERM NOTES 144161486 CURRENT MATURITIES OF LT DEBT 12929838 OTHER LIABILITIES 12210856 PAYABLE TO THIRD-PARTY PAYORS 11380233 180682413 CONSOLIDATED AUDIT FOOTNOTE FOR FIN 48 (ASC 740) SCHEDULE D, PART X, LINE 2 ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES, CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING A MINIMUM RECOGNITION THRESHOLD THAT A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. ASC 740 ALSO PROVIDES GUIDANCE ON DERECOGNITION, MEASUREMENT, CLASSIFICATION, INTEREST AND PENALTIES, DISCLOSURE, AND TRANSITION. THE GUIDANCE IS APPLICABLE TO PASS-THROUGH ENTITIES AND TAX-EXEMPT ORGANIZATIONS. NO SIGNIFICANT TAX LIABILITY FOR TAX BENEFITS, INTEREST OR PENALTIES WAS ACCRUED AT JUNE 30, 2012 OR 2011. Central America and the Caribbean 0 0 Program Services CAPTIVE INSURANCE 1285843 0 0 0 0 1285843 1285843 true false false false false false ACCOUNTING METHOD SCHEDULE F, PART I, LINE 3, COLUMN (F) THE ACCRUAL METHOD OF ACCOUNTING WAS USED TO DETERMINE THE AMOUNT IN COLUMN (F). true true X true X 175. true X true true true false true true 28591881 0 28591881 0.05350 40712389 33728337 6984052 0.01310 69304270 33728337 35575933 0.06660 2898601 236448 2662153 0.00500 14229627 4667308 9562319 0.01790 91782 0 91782 0.00020 2652096 0 2652096 0.00500 19872106 4903756 14968350 0.02810 89176376 38632093 50544283 0.09470 78849 0 78849 0.00010 78849 0 78849 0.00010 false 49839726 0 142515037 169201775 -26686738 X true true COVENANT L-T CARE LP LONG-TERM CARE 0.67000 0.00000 0.33000 LUBBOCK SURG CTR LTD HEALTHCARE 0.59000 0.00000 0.41000 METHODIST DIAGNOSTIC HEALTHCARE 0.60000 0.00000 0.40000 LUBBOCK GAMMA LP HEALTHCARE 0.40000 0.00000 0.60000 2 1 COVENANT MEDICAL CENTER

3615 19TH STREET LUBBOCK TX 794101203

X X X X 2 COVENANT MED CENTER-LAKESIDE CAMPUS

4000 24TH STREET LUBBOCK TX 79410

X X X X X COVENANT MEDICAL CENTER 1 true true 175. true 300. true X X X X X X X true true X true false true X false false COVENANT MED CENTER-LAKESIDE CAMPUS 2 true true 175. true 300. true X X X X X X X true true X true false true X false false 10 JOE ARRINGTON CANCER RSCH & TRTMT CENTER

4101 22ND PLACE LUBBOCK TX 79410

GENERAL MEDICAL & SURGICAL COVENANT LT CARE LP

4000 24TH STREET LUBBOCK TX 79410

LONG TERM CARE COVENANT HEART & VASCULAR

3615 19TH STREET LUBBOCK TX 79410

GENERAL MEDICAL & SURGICAL LUBBOCK SURGERY CENTER LTD

2301 QUAKER LUBBOCK TX 79410

SURGERY CENTER METHODIST DIAGNOSTIC IMAGING

4005 24TH STREET LUBBOCK TX 79410

DIAGNOSTIC CENTER FAMILY HEALTHCARE CENTER

7601 QUAKER LUBBOCK TX 79410

MEDICAL CLINIC SOUTHWEST MEDICAL PARK

9812 SLIDE ROAD LUBBOCK TX 79424

GENERAL MEDICAL & SURGICAL FAMILY HEALTHCARE CENTER

416 FRANKFORD ROAD LUBBOCK TX 79410

MEDICAL CLINIC ARRINGTON COMPREHENSIVE BREAST CENTER

4101 22ND PLACE LUBBOCK TX 79410

GENERAL MEDICAL & SURGICAL LUBBOCK GAMMA

10000 MEMORIAL DRIVE SUITE 540 HOUSTON TX 77024

GENERAL MEDICAL & SURGICAL SCHEDULE H, PART I, LINE 7 THE AMOUNTS REPORTED IN THE TABLE WERE DERIVED FROM VARIOUS SOURCES INCLUDING THE GENERAL LEDGER, THE COST ACCOUNTING SYSTEM, OR CALCULATED USING A COST-TO-CHARGE RATIO. THE COST ACCOUNTING SYSTEM ADDRESSES ALL PATIENT SEGMENTS. WORKSHEET 2 WAS NOT USED; HOWEVER A RATIO OF TOTAL OPERATING EXPENSES TO GROSS CHARGES WAS USED. COMMUNITY BUILDING ACTIVITIES SCHEDULE H, PART II COVENANT HEALTH SYSTEM (CHS) IS COMMITTED TO SERVING ITS COMMUNITIES WITH AN EMPHASIS ON PROVIDING OPTIMAL HEALTHCARE SERVICES AND PROGRAMS BY DEDICATING ITS EFFORTS TO ASSIST ALL PERSONS REGARDLESS OF THEIR AGE, SEX, CREED, DISABILITY, NATIONAL ORIGIN OR FINANCIAL STATUS. THE VISION OF CHS IS TO BRING PEOPLE TOGETHER TO PROVIDE COMPASSIONATE CARE, PROMOTE HEALTH IMPROVEMENT, AND CREATE HEALTHY COMMUNITIES. DURING THE YEAR, THE EMPLOYEES OF CHS HAVE VOLUNTEERED COUNTLESS HOURS TO VARIOUS COMMUNITY-BASED ORGANIZATIONS, PROFESSIONAL ORGANIZATIONS, AND VOLUNTEERED WITH LOCAL NON-PROFIT ORGANIZATIONS TO IMPROVE HEALTH AND QUALITY OF LIFE IN OUR COMMUNITY. SCHEDULE H, PART III, LINE 4 THE ORGANIZATION RECOGNIZED THAT A PORTION OF THE UNINSURED OR UNDERINSURED PATIENT POPULATION MAY NOT ENGAGE IN THE TRADITIONAL FINANCIAL ASSISTANCE APPLICATION PROCESS. THEREFORE, THE ORGANIZATION ALSO USED AN AUTOMATED PREDICTIVE SCORING TOOL TO IDENTIFY AND QUALIFY PATIENTS FOR FINANCIAL ASSISTANCE FOR ACCOUNTS THAT WERE INITIALLY CLASSIFIED AS BAD DEBT. COLLECTION ACTIONS WERE NOT PURSUED ON THESE ACCOUNTS ONCE THEY ARE RECLASSIFIED BECAUSE RECLASSIFIED ACCOUNTS WERE GRANTED 100 PERCENT FINANCIAL ASSISTANCE (FREE CARE). AFTER THE RECLASSIFICATION THERE WAS NO REMAINING AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER OUR FINANCIAL ASSISTANCE POLICY. THIS POLICY WAS NOT IMPLEMENTED BY COVENANT HEALTH SYSTEM UNTIL MARCH OF 2013. FINANCIAL STATEMENT FOOTNOTE DESCRIBING BAD DEBT: THE ORGANIZATION RECEIVES PAYMENT FOR SERVICES RENDERED TO PATIENTS FROM FEDERAL AND STATE GOVERNMENTS UNDER THE MEDICARE AND MEDICAID PROGRAMS, PRIVATELY SPONSORED MANAGED CARE PROGRAMS FOR WHICH PAYMENT IS MADE BASED ON TERMS DEFINED UNDER FORMAL CONTRACTS, AND OTHER PAYORS. THE ORGANIZATION BELIEVES THERE ARE NO SIGNIFICANT RISKS ASSOCIATED WITH RECEIVABLES FROM GOVERNMENT PROGRAMS. RECEIVABLES FROM CONTRACTED AND OTHERS ARE FROM VARIOUS PAYORS WHO ARE SUBJECT TO DIFFERING ECONOMIC CONDITIONS, AND DO NOT REPRESENT ANY CONCENTRATED RISKS TO THE ORGANIZATION. THE ORGANIZATION ANALYZES ITS HISTORICAL EXPERIENCE AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS. SCHEDULE H, PART III, LINE 8 THE ORGANIZATION DOES NOT REPORT MEDICARE REVENUES AND EXPENSES (EXCEPT FOR AMOUNTS REPORTED IN PART I, LINE 7) AS COMMUNITY BENEFIT. MEDICARE COSTS ARE DETERMINED USING THE MEDICARE COST REPORT. SCHEDULE H, PART III, LINE 9B COVENANT HEALTH SYSTEM PATIENT ACCOUNTS WERE NOT FORWARDED TO COLLECTION STATUS WHEN THE PATIENT MADE A GOOD FAITH EFFORT TO RESOLVE OUTSTANDING ACCOUNT BALANCES. SUCH EFFORTS INCLUDE APPLYING FOR FINANCIAL ASSISTANCE, NEGOTIATING A PAYMENT PLAN, OR APPLYING FOR MEDICAID COVERAGE. PRIOR TO ADVANCING ANY ACCOUNT FOR EXTERNAL COLLECTION, THE ORGANIZATION PERFORMED AN EVALUATION TO IDENTIFY IF THE ACCOUNT QUALIFIED FOR FINANCIAL ASSISTANCE. ACCOUNTS FOR PATIENTS WHO QUALIFIED FOR FREE CARE (100 PERCENT FINANCIAL ASSISTANCE) WERE WRITTEN OFF AND COLLECTION EFFORTS WERE NOT PURSUED. COVENANT MEDICAL CENTER (1) AND COVENANT MED. CENTER-LAKESIDE CAMPUS (2) SCHEDULE H, PART V, SECTION B, LINE 11H THE ORGANIZATION RECOGNIZES THAT A PORTION OF THE UNINSURED OR UNDERINSURED PATIENT POPULATION MAY NOT ENGAGE IN THE TRADITIONAL FINANCIAL ASSISTANCE APPLICATION PROCESS. THEREFORE, THE ORGANIZATION ALSO USES AN AUTOMATED PREDICTIVE SCORING TOOL TO IDENTIFY AND QUALIFY PATIENTS FOR FINANCIAL ASSISTANCE FOR ACCOUNTS THAT ARE INITIALLY CLASSIFIED AS BAD DEBT. THIS POLICY WAS NOT IMPLEMENTED BY COVENANT HEALTH SYSTEM UNTIL MARCH OF 2013. COVENANT MEDICAL CENTER (1) AND COVENANT MED. CENTER-LAKESIDE CAMPUS (2) SCHEDULE H, PART V, SECTION B, LINE 13G THE ORGANIZATION POSTS ITS SUMMARIZED FINANCIAL ASSISTANCE NOTICE IN ALL ADMITTING AREAS IN BOTH ENGLISH AND SPANISH AND PROVIDES THE FULL POLICY UPON REQUEST. SUMMARIZED NOTICES OF THE POLICY ARE AVAILABLE ON ITS WEBSITE ALONG WITH CONTACT INFORMATION IN THE EVENT OF ADDITIONAL INQUIRIES. NOTICES OF FINANCIAL ASSISTANCE ARE INCLUDED WITH BILLINGS FOR UNINSURED PATIENTS. BILINGUAL PATIENT ACCOUNT REPRESENTATIVES ARE AVAILABLE TO ADDRESS QUESTIONS AND ASSIST IN THE COMPLETION OF A FINANCIAL ASSISTANCE APPLICATION IN ENGLISH OR SPANISH. COVENANT MEDICAL CENTER (1) AND COVENANT MED. CENTER-LAKESIDE CAMPUS (2) SCHEDULE H, PART V, SECTION B, LINE 19D FOR PATIENTS WITH A FAMILY INCOME BETWEEN 176% AND 300% OF FEDERAL POVERTY GUIDELINES (FPG), THE HOSPITAL FACILITY USES MEDICARE RATES WHEN CALCULATING THE MAXIMUM AMOUNTS THAT CAN BE CHARGED. FOR CATASTROPHIC CASES WITH A PATIENT RESPONSIBILITY GREATER THAN $75,000, MEDICARE RATES ARE USED TO DETERMINE THE MAXIMUM AMOUNT THAT CAN BE CHARGED. NEEDS ASSESSMENT SCHEDULE H, PART VI, LINE 2 A NEEDS ASSESSMENT IS COMPILED EVERY THREE YEARS WHICH DETAILS OVERARCHING HEALTHCARE CONCERNS FOR TEXAS IN GENERAL AS WELL AS MANY DETAILS AFFECTING THE LUBBOCK COMMUNITY BENEFIT SERVICE AREA IN PARTICULAR. SOME OF THE OTHER SOURCES USED FOR COVENANT'S NEEDS ASSESSMENT INCLUDE: ST. JOSEPH HEALTH SYSTEM'S PRC DATA ASSESSMENT, THE UNITED WAY COMMUNITY STATUS REPORT, AND THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES DATA. THE PROCESS USED FOR THE PRIORITIZATION OF THE PROGRAMS WAS DETERMINED BY GENERAL CONSENSUS. ALL ASSESSMENTS USED FOR THIS PLAN, PRIMARY AND SECONDARY DATA THAT WAS ANALYZED, INDIVIDUAL MEETINGS WITH GROUPS OF STAKEHOLDERS, AND MEMBERS OF THE COMMUNITY BENEFIT COMMITTEE ALL CONFIRMED THE PROGRAMS WHICH ARE PRIORITIZED FOR THIS PLAN. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE SCHEDULE H, PART VI, LINE 3 THE ORGANIZATION POSTED NOTICES INFORMING THE PUBLIC OF THE FINANCIAL ASSISTANCE PROGRAM. NOTICES WERE POSTED IN HIGH VOLUME INPATIENT AND OUTPATIENT SERVICE AREAS. NOTICES WERE ALSO POSTED AT LOCATIONS WHERE A PATIENT COULD PAY THEIR BILL. NOTICES INCLUDED CONTACT INFORMATION ON HOW A PATIENT COULD OBTAIN MORE INFORMATION ON FINANCIAL ASSISTANCE AS WELL AS WHERE TO APPLY FOR ASSISTANCE. THESE NOTICES WERE POSTED IN ENGLISH AND SPANISH AND ANY OTHER LANGUAGES THAT WERE REPRESENTATIVE OF 5% OR GREATER OF PATIENTS IN THE HOSPITAL'S SERVICE AREA. ALL PATIENTS WHO DEMONSTRATED LACK OF FINANCIAL COVERAGE BY THIRD PARTY INSURERS WERE OFFERED AN OPPORTUNITY TO COMPLETE THE FINANCIAL ASSISTANCE APPLICATION AND WERE OFFERED INFORMATION, ASSISTANCE, AND REFERRAL AS APPROPRIATE TO GOVERNMENT SPONSORED PROGRAMS FOR WHICH THEY MAY HAVE BEEN ELIGIBLE. COMMUNITY INFORMATION SCHEDULE H, PART VI, LINE 4 COVENANT HEALTH SYSTEM IS THE ONLY SJHS MINISTRY PROVIDING SERVICES TO COMMUNITIES IN TWO STATES. COVENANT HEALTH SYSTEM PROVIDES SERVICES IN NEW MEXICO AND DRAWS PATIENTS FROM NEW MEXICO COMMUNITIES INTO LUBBOCK. THE CIRCUMSTANCES OF THESE COMMUNITY MEMBERS PROFOUNDLY IMPACT THE ORGANIZATION AND THE SERVICES IT PROVIDES. COVENANT HEALTH SYSTEM'S COMMUNITY BENEFIT PRIORITIES ADDRESS DUHN POPULATIONS WITHIN BOTH CORE SERVICE AREAS AND SECONDARY SERVICE AREAS FOR COMMUNITY RESIDENTS WHO ARE FACED WITH MULTIPLE HEALTH PROBLEMS AND HAVE LIMITED ACCESS TO TIMELY, HIGH-QUALITY HEALTH CARE. CORE SERVICE AREAS INCLUDE THE TEXAS COUNTIES OF LUBBOCK, BAILEY, LAMB, HALE, FLOYD, MOTLEY, COCHRAN, HOCKLEY, CROSBY, DICKENS, YOAKUM, TERRY, LYNN, GARZA, KENT, GAINES, DAWSON, BORDEN, SCURRY, AND EDDY COUNTY IN NEW MEXICO. ESPECIALLY WITHIN LUBBOCK, FOUR NEIGHBORHOODS, ARNETT-BENSON, HARWELL, PARKWAY-CHERRY POINT AND DUNBAR-MANHATTAN HEIGHTS, ARE DESIGNATED AS MEDICALLY UNDERSERVED AREAS (MUA'S). SECONDARY SERVICE AREAS INCLUDE PARMER, CASTRO, AND KING COUNTIES IN TEXAS. PROMOTION OF COMMUNITY HEALTH SCHEDULE H, PART VI, LINE 5 THE GOVERNING BODY IS COMPRISED OF A MAJORITY OF PERSONS WHO RESIDE IN THE HOSPITAL'S PRIMARY SERVICE AREA AND WHO ARE NOT EMPLOYEES, CONTRACTORS, OR FAMILY MEMBERS. THE SUB-COMMITTEE OF THE BOARD OF TRUSTEES, KNOWN AS THE COMMUNITY BENEFIT COMMITTEE, OVERSEES THE DEVELOPMENT AND IMPLEMENTATION OF THE COMMUNITY HEALTH NEEDS ASSESSMENT AND COMMUNITY BENEFIT PLAN EVERY THREE YEARS, AS WELL AS AN ANNUAL COMMUNITY BENEFIT REPORT. THE COMMITTEE ALSO PROVIDES GENERAL DIRECTION TO COVENANT HEALTH SYSTEM REGARDING: 1) BUDGETING DECISIONS, 2) COMMUNITY BENEFIT PROGRAM CONTENT, 3) COMMUNITY BENEFIT PROGRAM DESIGN, 4) TARGET GEOGRAPHIC/POPULATION, 5) PROGRAM CONTINUATION OR DISCONTINUATION, 6) FUND DEVELOPMENT SUPPORT, AND 7) COMMUNITY-WIDE ENGAGEMENT. MEDICAL STAFF PRIVILEGES ARE EXTENDED TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY. GIVING BACK TO THE COMMUNITY IS INTEGRATED INTO EVERY ASPECT OF OUR ORGANIZATION. AS A MEMBER OF THE FAITH-BASED HEALTH MINISTRY OF ST. JOSEPH HEALTH SYSTEM, WE PROVIDE FREE AND DISCOUNTED CARE VIA OUR FINANCIAL ASSISTANCE PROGRAM AND HAVE A FUNDING STREAM TO ADDRESS THE NEEDS OF THE ECONOMICALLY POOR AND VULNERABLE IN THE COMMUNITIES WE SERVE. THIS PAST FISCAL YEAR OUR HOSPITAL PROMOTED HEALTH AND ACCESS TO CARE BY SUPPORTING THE FOLLOWING PROGRAMS: HEALTH & NUTRITION EDUCATION, MENTAL HEALTH COUNSELING FAMILY DENTISTRY, ACCESS TO CARE, AND COVENANT BODY MIND INITIATIVE. OUR MISSION IS TO EXTEND THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE BY CONTINUALLY IMPROVING THE HEALTH AND QUALITY OF LIFE OF PEOPLE IN THE COMMUNITIES WE SERVE. WE BELIEVE THAT NO ONE SHOULD DELAY SEEKING NEEDED MEDICAL CARE BECAUSE THEY LACK HEALTH INSURANCE. THAT IS WHY COVENANT HEALTH SYSTEM, AS A MINISTRY OF ST. JOSEPH HEALTH SYSTEM, HAS A PATIENT FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES FREE OR DISCOUNTED SERVICES TO ELIGIBLE PATIENTS. ON AN ANNUAL BASIS, TEN PERCENT OF OUR NET INCOME IS DEVOTED TO FUND COMMUNITY PROGRAMS FOR THE ECONOMICALLY POOR (CARE FOR THE POOR FUNDS). SPECIFICALLY, FUNDS ARE USED FOR OUTREACH PROGRAMS, DEFINED AS THOSE SERVICES THAT ADDRESS A SPECIFIC UNMET HEALTH NEED AND ARE SEPARATE FROM TRADITIONAL ACUTE CARE SERVICES. IN ADDITION TO DEVOTING A PERCENTAGE OF OUR NET INCOME TO COMMUNITY PROGRAMS FOR THE ECONOMICALLY POOR VIA CARE FOR THE POOR FUNDS, WE STRIVE TO ANNUALLY BUDGET A PORTION OF OUR TOTAL OPERATING EXPENSES FOR HEALTHY COMMUNITIES AND COMMUNITY HEALTH EFFORTS. DURING THE PAST YEAR, COVENANT HEALTH DEDICATED $1,630,499 IN CARE FOR THE POOR FUNDS AND $909,957 TO HEALTHY COMMUNITIES AND COMMUNITY HEALTH INITIATIVES. THIS FUNDING MADE THE FOLLOWING PROGRAMS THAT PROMOTE HEALTH AND ACCESS TO CARE TO THE LOW-INCOME POSSIBLE: HEALTH & NUTRITION EDUCATION, MENTAL HEALTH COUNSELING FAMILY DENTISTRY, ACCESS TO CARE, AND COVENANT BODY MIND INITIATIVE. AFFILIATED HEALTH CARE SYSTEM SCHEDULE H, PART VI, LINE 6 COVENANT HEALTH SYSTEM IS A HEALING MINISTRY OF ST. JOSEPH HEALTH SYSTEM, AN INTEGRATED HEALTHCARE DELIVERY SYSTEM SPONSORED BY THE ST. JOSEPH HEALTH MINISTRY. ST. JOSEPH HEALTH SYSTEM IS ORGANIZED INTO THREE REGIONS: NORTHERN CALIFORNIA, SOUTHERN CALIFORNIA, AND WEST TEXAS/EASTERN NEW MEXICO. THE SYSTEM INCLUDES 14 ACUTE CARE HOSPITALS, HOME HEALTH AGENCIES, HOSPICE CARE, OUTPATIENT SERVICES, COMMUNITY CLINICS, AND PHYSICIAN ORGANIZATIONS. EACH ASSOCIATED MINISTRY WORKS TO LIVE OUT ITS MISSION TO EXTEND THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE BY CONTINUALLY IMPROVING THE HEALTH AND QUALITY OF LIFE OF THE COMMUNITIES IT SERVES. IN 1986, ST. JOSEPH HEALTH SYSTEM CREATED A PLAN AND BEGAN AN EFFORT TO FURTHER ITS COMMITMENT TO NEIGHBORS IN NEED. WITH A VISION OF REACHING BEYOND THE WALLS OF ITS HEALTHCARE FACILITIES AND TRANSCENDING TRADITIONAL EFFORTS OF PROVIDING FINANCIAL ASSISTANCE FOR THOSE IN NEED OF ACUTE SERVICES, ST. JOSEPH HEALTH SYSTEM CREATED THE ST. JOSEPH HEALTH SYSTEM FOUNDATION TO IMPROVE THE HEALTH OF LOW-INCOME INDIVIDUALS RESIDING IN LOCAL COMMUNITIES. OUR FOUNDATIONAL DOCUMENT, A VISION OF VALUES, FORMALIZES A POLICY THROUGH WHICH THE HOSPITAL MINISTRIES RETURN TEN PERCENT OF THEIR NET INCOME TO THE ST. JOSEPH HEALTH SYSTEM FOUNDATION TO SUPPORT OUTREACH EFFORTS FOR THE MATERIALLY POOR. THE FOUNDATION THEN FUNDS PROGRAMS IN COMMUNITIES SERVED BY ST. JOSEPH HEALTH HOSPITALS THAT EXEMPLIFY THE FOUR CORE VALUES OF ST. JOSEPH HEALTH SYSTEM: SERVICE, EXCELLENCE, DIGNITY, AND JUSTICE. STATE FILING OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART VI, LINE 7 TEXAS MINISTRIES REPORT TO STATE OF TEXAS DEPARTMENT OF STATE HEALTH SERVICES IN ACCORDANCE WITH THE TEXAS HEALTH AND SAFETY CODE - SECTION 311.045. true DIOCESE OF LUBBOCK PO BOX 98700 LUBBOCK TX 79416 752773524 501(C)(3) 50000 DONATION TO DIOCESAN PURPOSE MEDICAL MISSION 3105 102ND STREET LUBBOCK TX 79423 263600976 501(C)(3) 60000 EQUIPMENT AND TEXAS TECH UNIVERSITY BOX 41105 LUBBOCK TX 79409 752668014 GOVERNMENT 125000 HEALTHY COMM & CHILD UNITED WAY 1655 MAIN STREET LUBBOCK TX 79401 750961812 501(C)(3) 40000 PROGRAM SUPPORT AMERICAN CANCER SOCIETY LUBBOCK 3513 10TH STREET LUBBOCK TX 79415 237040934 501(C)(3) 200000 LUBBOCK HOPE LODGE SOUTH PLAINS CLOSING THE GAPS P-20 COUNCIL PO BOX 41071 LUBBOCK TX 79409 800414487 501(C)(3) 10000 SCHOLARSHIP DONATION HOPE COMMUNITY OF SHALOM 2005 AVENUE T LUBBOCK TX 79411 364504943 501(C)(3) 10000 10TH ANNIVERSARY ST JOSEPH HEALTH SYSTEM FOUNDATION 3345 MICHELSON DR STE 100 IRVINE CA 92612 330143024 501(C)(3) 3688900 CARE FOR THE POOR 8 0 DESCRIPTION OF ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF GRANTS SCHEDULE I, PART I, LINE 2 DONATIONS MADE TO OTHER ORGANIZATIONS ARE APPROVED BY MANAGEMENT TO ENSURE THEY SUPPORT THE MISSION OF COVENANT HEALTH SYSTEM. NO ADDITIONAL MONITORING IS DONE. X X true false true true false false false false false true false RICHARD PARKS 0 617795 0 280650 0 138326 0 7350 0 17123 0 1061244 0 0 TROY THIBODEAUX 280461 0 42147 0 101962 0 0 0 4245 0 428815 0 0 0 JOHN GRIGSON 360754 0 306386 0 102466 0 9800 0 20491 0 799897 0 0 0 SUSAN NEVES 58444 0 87937 0 402375 0 5345 0 2851 0 556952 0 215882 0 STEVEN MCCAMY 315698 0 271896 0 93012 0 9800 0 24169 0 714575 0 0 0 ROXIE TAYLOR 258486 0 95668 0 78814 0 19600 0 6499 0 459067 0 0 0 SHARYN IVORY 114784 0 73452 0 150312 0 12731 0 4019 0 355298 0 0 0 STEVEN BECK 156559 0 54374 0 43305 0 17197 0 12486 0 283921 0 0 0 KAREN BAGGERLY 240850 0 81910 0 64784 0 26950 0 6492 0 420986 0 0 0 RODNEY CATES 215507 0 75577 0 63529 0 17150 0 15955 0 387718 0 0 0 SHARON PRATHER 218958 0 82908 0 76780 0 24500 0 12335 0 415481 0 15042 0 SCOTT ROBINS MD 76109 0 198276 0 195621 0 19591 0 1265 0 490862 0 156496 0 SHARON CLARK 272930 0 104559 0 62563 0 9800 0 24344 0 474196 0 0 0 JO ANN ESCASA-HAIGH 0 344020 0 173044 0 83509 0 9776 0 33952 0 644301 0 0 MELINDA CLARK 0 0 0 0 0 282512 0 0 0 0 0 282512 0 0 CLARK COCHRAN 155734 0 53344 0 35915 0 8436 0 2118 0 255547 0 0 0 MURALI NAIR 283713 0 500 0 11067 0 19600 0 19338 0 334218 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J, PART I, LINE 1A ST. JOSEPH HEALTH SYSTEM ALLOWS FOR COMPANION TRAVEL TO CERTAIN PRE-APPROVED, MINISTRY SPONSORED EVENTS. COMPANION TRAVEL IS TREATED AS TAXABLE COMPENSATION IN MOST CASES. IN THE CASE THAT COMPANION TRAVEL IS NOT TAXABLE COMPENSATION, THE INDIVIDUAL IS PROVIDING A SERVICE TO THE HEALTH SYSTEM AS A REPRESENTATIVE WITH KNOWLEDGE OF THE COMMUNITIES AND MINISTRIES WE SERVE. MEMBERS OF THE BOARD AND EXECUTIVE MANAGEMENT TEAM ARE SELECTED TO PARTICIPATE IN AN ANNUAL PILGRIMAGE TO LE PUY, FRANCE, WHERE THE SISTERS' FIRST CONGREGATION WAS FORMED. THE PURPOSE OF THE PILGRIMAGE IS FOR THE ORGANIZATION'S LEADERS TO DEVELOP A DEEPER UNDERSTANDING OF THE ROOTS AND HERITAGE OF THE ORGANIZATION IN ORDER TO CARRY OUT THE MISSION. COMPANION TRAVEL IS CONSIDERED TO BE AN ESSENTIAL PART OF THIS EXPERIENCE AND THE COMPANION ACTS AS A REPRESENTATIVE WITH KNOWLEDGE OF THE COMMUNITIES AND MINISTRIES WE SERVE. THE FOLLOWING DIRECTORS/OFFICERS RECEIVED A BENEFIT FOR COMPANION TRAVEL THAT WAS INTENDED TO BE COMPENSATION: RICHARD PARKS - $3,909 JOHN GRIGSON - $3,323 EXECUTIVES RECEIVE A PERCENTAGE OF BASE COMPENSATION FOR DISCRETIONARY SPENDING. THESE AMOUNTS ARE INCLUDED IN OTHER REPORTABLE COMPENSATION. DESCRIPTION OF CEO PAID BY EXEMPT AGENT SCHEDULE J, PART I, LINE 3 THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS PAID BY ITS TAX EXEMPT PARENT, ST. JOSEPH HEALTH SYSTEM, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. SEE SCHEDULE O, PART VI, LINE 15A FOR THE PROCESS THAT IS COMPLETED BY THE ST. JOSEPH HEALTH SYSTEM. SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A MELINDA CLARK RECEIVED $282,512 FOR SEVERANCE PAID THROUGH ST. JOSEPH HEALTH SYSTEM. SHARYN IVORY RECEIVED $99,206 AND SUSAN NEVES RECEIVED $158,362 FOR SEVERANCE PAID THROUGH COVENANT HEALTH SYSTEM. DESCRIPTION OF SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B EXECUTIVES COULD PARTICIPATE IN A NON-QUALIFIED DEFERRED COMPENSATION PLAN UNDER INTERNAL REVENUE CODE 457(F). THE PLAN WAS FROZEN EFFECTIVE DECEMBER 31, 2007 AFTER WHICH TIME NO FURTHER CONTRIBUTIONS WERE PERMITTED TO THE PLAN. THIS PLAN WILL CEASE TO EXIST ONCE ALL BENEFITS HAVE BEEN DISTRIBUTED IN ACCORDANCE WITH PROVISIONS OF THE PLAN. NO DISTRIBUTIONS WERE MADE DURING THE YEAR. DESCRIPTION OF NON-FIXED PAYMENTS SCHEDULE J, PART I, LINE 7 A PORTION OF EXECUTIVES SALARIES ARE PLACED "AT-RISK" AND ARE NOT AWARDED UNLESS SPECIFIC STRATEGIC OBJECTIVE TARGETS ARE MET OR EXCEEDED. THE AT-RISK EXECUTIVE PLAN IS DESIGNED TO MOTIVATE AND REWARD EXECUTIVES FOR TEAM PERFORMANCE THAT SUPPORTS THE STRATEGIC GOALS AND SUCCESSFUL PERFORMANCE OF ST. JOSEPH HEALTH SYSTEM. AT-RISK PAY IS AWARDED TO ASSISTANT VICE PRESIDENTS, VICE PRESIDENTS, SENIOR VICE PRESIDENTS, EXECUTIVE VICE PRESIDENTS, AND THE CHIEF EXECUTIVE OFFICER BASED ON ACHIEVING OR SURPASSING SPECIFIC GOALS THAT ARE PREDETERMINED BY THE BOARD OF TRUSTEES PRIOR TO THE BEGINNING OF THE FISCAL YEAR. THE GOALS INCLUDE OUR STRATEGIC OBJECTIVES OF PERFECT CARE, SACRED ENCOUNTERS, AND HEALTHIEST COMMUNITIES AS WELL AS FISCAL STEWARDSHIP. EACH OF THESE FACTORS IS TAKEN INTO CONSIDERATION WHEN DETERMINING THE PERCENTAGE OF AT-RISK PAY. PARKHILL SMITH COOPER INC JOHN HAMILTON/BD MBR 276721 ARCHITECTURAL SERVICES false MEMPHIS PLACE MALL LTD MICHAEL ROBERTSON/BD MBR 115919 LEASE OF BUILDING false KALEN PARKS DAUGHTER OF CEO 31420 EMPLOYEE OF CHS false X MEDICAL EQUIPMENT 1 1224914 COST/SELLING PRICE 0 false true false ORGANIZATION'S MISSION FORM 990, PART I, LINE 1 AND PART III, LINE 1 COVENANT HEALTH SYSTEM IS COMMITTED TO EXTENDING THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE BY CONTINUALLY IMPROVING THE HEALTH AND QUALITY OF LIFE OF PEOPLE IN THE COMMUNITIES WE SERVE. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A REALIZING OUR MISSION COVENANT HEALTH SYSTEM (COVENANT HEALTH/CHS) HAS BEEN MEETING THE HEALTH AND QUALITY OF LIFE NEEDS OF THE LOCAL COMMUNITY FOR OVER 13 YEARS. SERVING THE COMMUNITIES OF LUBBOCK, BAILEY, LAMB, HALE, FLOYD, MOTLEY, COCHRAN, HOCKLEY, CROSBY, DICKENS, YOAKUM, TERRY, LYNN, GARZA, KENT, GAINES, DAWSON, BORDEN, SCURRY, AND EDDY COUNTY IN NEW MEXICO, COVENANT HEALTH IS AN ACUTE CARE HOSPITAL THAT PROVIDES QUALITY CARE IN THE AREAS OF STATE OF THE ART CARDIAC CARE, MOBILE MAMMOGRAPHY, MOBILE DENTAL, STATE OF THE ART OUTPATIENT CANCER TREATMENT, AND HEALTH EDUCATION ETC. WITH OVER 5,000 EMPLOYEES COMMITTED TO REALIZING THE MISSION, COVENANT HEALTH IS ONE OF THE LARGEST EMPLOYERS IN THE WEST TEXAS AND EASTERN NEW MEXICO REGION. AS A MEMBER OF THE ST. JOSEPH HEALTH SYSTEM (SJHS), COVENANT HEALTH IS COMMITTED TO EXTEND THE HEALING MINISTRY OF JESUS IN THE TRADITION OF THE SISTERS OF ST. JOSEPH OF ORANGE. THIS MISSION HAS GUIDED OUR CATHOLIC HEALTHCARE MINISTRY SINCE THE OPENING OF OUR FIRST HOSPITAL IN EUREKA, CALIFORNIA 100 YEARS AGO. THE SISTERS OF ST. JOSEPH OF ORANGE TRACE THEIR ROOTS BACK TO 17TH CENTURY FRANCE AND THE UNIQUE VISION OF A JESUIT PRIEST NAMED JEAN-PIERRE MEDAILLE. HE SOUGHT TO ORGANIZE AN ORDER OF RELIGIOUS WOMEN WHO, RATHER THAN REMAINING SAFELY CLOISTERED IN A CONVENT, VENTURED OUT INTO THE COMMUNITY TO SEEK OUT "THE DEAR NEIGHBORS" AND MINISTER TO THEIR NEEDS. THE CONGREGATION MANAGED TO SURVIVE THE TURBULENCE OF THE FRENCH REVOLUTION AND EVENTUALLY EXPANDED, NOT ONLY THROUGHOUT FRANCE, BUT THROUGHOUT THE WORLD. IN 1912 A SMALL GROUP OF SISTERS OF ST. JOSEPH WENT TO EUREKA, CALIFORNIA, AT THE INVITATION OF THE LOCAL BISHOP, TO ESTABLISH A SCHOOL. A FEW YEARS LATER, THE GREAT INFLUENZA EPIDEMIC OF 1918 CAUSED THE SISTERS TO TEMPORARILY SET ASIDE THEIR EDUCATION EFFORTS TO CARE FOR THE ILL. THEY REALIZED IMMEDIATELY THAT THE SMALL COMMUNITY DESPERATELY NEEDED A HOSPITAL. THROUGH BOLD FAITH, FORESIGHT, AND FLEXIBILITY IN 1920, THE SISTERS OPENED THE 28-BED ST. JOSEPH HOSPITAL OF EUREKA, THE FIRST ST. JOSEPH HEALTH SYSTEM MINISTRY. THREE MISSION OUTCOMES STRATEGICALLY GUIDE OUR MINISTRY WORK COVENANT HEALTH IS COMMITTED TO THREE SYSTEMWIDE MISSION OUTCOMES: 1) EVERY INTERACTION WILL BE EXPERIENCED AS A SACRED ENCOUNTER. THE GOAL OF SACRED ENCOUNTER HAS A DIRECT CONNECTION TO THE OVERALL MISSION. OUR VALUE OF DIGNITY CALLS FOR US TO RESPECT EACH PERSON AS AN INHERENTLY VALUABLE MEMBER OF THE HUMAN COMMUNITY AND AS A UNIQUE EXPRESSION OF LIFE. WE STRIVE TO DO THIS BY KEEPING AT THE FOREFRONT OF OUR MINDS THE UNDERSTANDING OF THE IMPACT WE CAN HAVE ON ONE ANOTHER WITH EVERY ACTION WE TAKE. AT COVENANT HEALTH WE EDUCATE OUR EMPLOYEES AT BOTH THE MEDICAL CENTER AND WOMEN'S AND CHILDREN'S CAMPUS ON WHAT IS EXPECTED BEHAVIOR IN RELATION TO PATIENT CARE, CUSTOMER SERVICE AND TEAMWORK. EMPLOYEES ARE INTRODUCED TO THESE EXPECTATIONS AND TO THE GOAL TO MAKE EVERY ENCOUNTER SACRED AT NEW EMPLOYEE ORIENTATION. THESE CONCEPTS ARE ALSO INTEGRATED INTO EMPLOYEE'S 90 DAY AND ANNUAL EVALUATIONS. THIS IS REINFORCED THROUGHOUT THEIR EMPLOYMENT THROUGH BOTH OPTIONAL AND MANDATORY TRAINING, LEADERSHIP DEVELOPMENT AND OUR HR STANDARDS OF BEHAVIOR. SACRED PATIENT ENCOUNTERS ARE RECOGNIZED AT CHS THROUGH HERO CARDS, EMPLOYEE OF THE MONTH STORIES AND A VALUES IN ACTION RECOGNITION PROGRAM. LEADERS ARE SENT TO MISSION AND MENTORING WHICH IS A FORMATION PROGRAM LEAD BY SJHS. PATIENT AND STAFF SACRED STORIES ARE ALSO SHARED REGULARLY THROUGH WEEKLY MESSAGES FROM OUR CEO, VPMI AND PATIENT EXPERIENCE OFFICE. 2) ALL PATIENTS WILL RECEIVE PERFECT CARE. IT IS OUR ATTENTION TO DETAIL AND THE SMALLEST IMPERFECTIONS OF EACH PATIENT'S EXPERIENCE THAT DRIVES A DEEPER UNDERSTANDING AND ULTIMATELY A SUSTAINABLE APPROACH TO THE ACHIEVEMENT OF PERFECT CARE. AT COVENANT HEALTH WE EDUCATE OUR EMPLOYEES AT BOTH THE MEDICAL CENTER AND WOMEN'S AND CHILDREN'S CAMPUS ON THE GOAL OF PERFECT CARE. EMPLOYEES ARE INTRODUCED TO THIS GOAL AT NEW EMPLOYEE ORIENTATION, NEW PHYSICIAN ORIENTATION, NURSING ORIENTATION AND IN THEIR DEPARTMENT ORIENTATIONS. THIS GOAL IS ALSO INTEGRATED INTO EMPLOYEE'S 90 DAY AND ANNUAL EVALUATIONS. THIS IS REINFORCED THROUGHOUT THEIR EMPLOYMENT THROUGH MANDATORY TRAINING. IN ADDITION, CHS' QUALITY DEPARTMENT CONTINUALLY STRIVES TO FORMALLY AND INFORMALLY EDUCATE STAFF ON PERFECT CARE EXPECTATIONS. QUALITY INDICATORS ARE TRACKED AND REPORTED TO EMT, THE BOARD OF DIRECTORS, PHYSICIAN MEETINGS, NURSING MEETINGS AND AT THE CLINICAL EXCELLENCE COMMITTEE. LEAN PROCESS IMPROVEMENT TACTICS ARE USED TO CONTINUALLY IMPROVE PROCESSES AND PERFORMANCE TO ENHANCE THE PATIENT EXPERIENCE AND LIMIT POTENTIAL IMPERFECTIONS IN PATIENT CARE. CME'S ARE OFFERED REGULARLY ON-SITE TO OUR PHYSICIANS AND STAFF. WITHIN DEPARTMENTS, UNITS AND SECTIONS SPECIFIC PROCESSES ARE CONSTANTLY MONITORED TO INSURE PATIENT SAFETY AND BEST CARE. TEAMSTEPPS TRAINING IS AVAILABLE TO ALL STAFF TO ENHANCE PERFORMANCE AND PATIENT SAFETY. 3) THE COMMUNITIES WE SERVE WILL BE AMONG THE HEALTHIEST IN OUR NATION. WE SEEK TO DEVELOP COMMUNITY HEALTH INITIATIVES THAT IMPACT LONG-TERM HEALTH ACROSS THE ENTIRE COMMUNITY. COVENANT WILL PROVIDE FINANCIAL SUPPORT TO TEXAS TECH UNIVERSITY CENTER FOR PREVENTION AND RESILIENCY TO FUND CBMI WHICH IS A LONGITUDINAL STUDY MEASURING THE EFFECTIVENESS OF A PREVENTION AND INTERVENTION PROGRAM THAT IMPACTS CHILDHOOD OBESITY. THOSE PERFORMING THE STUDY WILL PROVIDE THE CB COMMITTEE WITH QUARTERLY UPDATES ON STRATEGY AND MEASURES. FY 12 ACCOMPLISHMENTS: PROGRAM EXPANSION - INCREASED SCHOOLS RECEIVING CBMI CURRICULUM FROM SIX IN THE FALL OF 2011 TO TWENTY-ONE IN THE FALL OF 2012- OVER A 150% INCREASE IN SCHOOL PARTICIPATION. - FIVE SCHOOLS ARE UTILIZING THE SEMESTER COURSE FOR HIGH SCHOOL CREDIT. - COUNTIES IN WEST TEXAS RECEIVING CBMI CURRICULUM: LUBBOCK, TERRY, KING, LAMB, AND PARMER. ADDITIONAL COUNTIES IN TEXAS: TARRANT, DALLAS, AND HARRIS. - CURRICULUM EXPANDED FROM TEN WEEKS TO SIXTEEN WEEKS TO EXTEND THE LENGTH OF DIRECT STUDENT INTERVENTION. RESEARCH OUTCOMES - AMONG THE STUDENTS WHO BEGAN THE PROGRAM THREE YEARS AGO, THERE IS A 15% IMPROVEMENT IN BODY MASS INDEX - THE BECK DEPRESSION INVENTORY SHOWS THAT OUR STUDENTS ARE STAYING IN A HEALTHY EMOTIONAL RANGE - THE INSTRUMENTS SHOW AN INCREASE IN EMOTIONAL REACTIVITY, MEANING THAT STUDENTS ARE ABLE TO EXPRESS EMOTIONAL RESPONSES TO SITUATIONS COMMUNITY ACTIVITIES/FAMILY INVOLVEMENT - FIT4FUN KID'S TRIATHLON - JUNIOR LEAGUE HEALTHY KIDS CAMP - BROWNFIELD MIDDLE SCHOOL WELLNESS CAMP - LUBBOCK HIGH SCHOOL WELLNESS AND LEADERSHIP TRAINING CAMP - BUCKNER'S CHILDREN'S HOME WELLNESS CLASSES - LYON'S CHAPEL HEALTH AND WELLNESS FORUM CONFERENCE PRESENTATIONS - YOUTH DEVELOPMENT INITIATIVE CONFERENCE - FAMILY AND CONSUMER SCIENCES STATE TEACHER'S CONFERENCE - SOUTHERN OBESITY SUMMIT INITIATIVE OR PROGRAM NAME: NURSING AND RADIOLOGY STUDENTS KEY COMMUNITY PARTNERS: TEXAS TECH HEALTH SCIENCES CENTER (TTUHSC), SOUTH PLAINS COLLEGE, LUBBOCK CHRISTIAN UNIVERSITY TARGET POPULATION: PATIENTS IN THE HOSPITAL GOAL: TO ALLOW NURSING, RADIOLOGY, AND SURGICAL TECHNICIAN STUDENTS FROM COVENANT, SOUTH PLAINS COLLEGE, TTUHSC AND LUBBOCK CHRISTIAN UNIVERSITY TO FULFILL THEIR CLINICAL ROTATION HOURS UNDER THE SUPERVISION OF CHS NURSES, RADIOLOGY TECHNICIANS, AND SURGICAL TECHNICIANS. HOW WILL WE MEASURE SUCCESS?: NURSING AND RADIOLOGY STUDENTS WITH HANDS ON EXPERIENCE; AND THE KNOWLEDGE TO CREATE COMPETENT REGISTERED NURSED, RADIOLOGY TECHS AND SURGICAL TECHS. FY 12 ACCOMPLISHMENTS: THIS PROGRAM REPORTED $1,538,681 IN EXPENDITURES A DECREASE OF 17% FROM FY 2011. INITIATIVE OR PROGRAM NAME: ALLIED HEALTH STUDENTS TARGET POPULATION: PATIENTS IN THE HOSPITAL GOAL: TO ALLOW HEALTH STUDENTS IN THE FIELDS OF FOOD AND NUTRITION, OCCUPATIONAL THERAPY AND PHYSICAL THERAPY TO FULFILL THEIR CLINICAL ROTATION HOURS UNDER THE SUPERVISION OF CHS ALLIED HEALTH PROFESSIONALS. HOW WILL WE MEASURE SUCCESS?: INCREASED NUMBER OF HEALTHCARE PROFESSIONALS IN THE SOUTH PLAINS AREA; ALLIED HEALTH STUDENTS WITH HANDS-ON EXPERIENCE AND KNOWLEDGE TO CREATE COMPETENT HEALTHCARE PROFESSIONALS. FY 12 ACCOMPLISHMENTS: THIS PROGRAM REPORTED $386,014 IN EXPENDITURES AN INCREASE OF 9.1% FROM FY 2011. INITIATIVE OR PROGRAM NAME: KECC COMMUNITY RESOURCE CENTER TARGET POPULATION: ANY COMMUNITY MEMBERS OR HEALTHCARE PROFESSIONAL WHO RECEIVE HEALTH - RELATED EDUCATION GOAL: TO PROVIDE THE COMMUNITY AND SURROUNDING AREAS ACCESS TO HEALTH - RELATED EDUCATION RESOURCES AND TRAINING TO PROMOTE RECOVERY AND GOOD HEALTH. HOW WILL WE MEASURE SUCCESS?: BY BECOMING THE FIRST PLACE THAT THE COMMUNITY OF LUBBOCK AND SURROUNDING AREA TURNS TO FOR UP-TO-DATE INFORMATION ON HEALTH EDUCATION TO IMPROVE THE LIVES OF PATIENTS, THEIR FAMILIES, AND THE COMMUNITY. FY 12 ACCOMPLISHMENTS: THIS PROGRAM REPORTED $1,200,174 IN DONATED SPACE A SLIGHT DECREASE FROM FY 2011. INITIATIVE NAME: DEPRESSION REDUCTION INITIATIVE (COUNSELING CENTER MENTAL HEALTH PROGRAM) KEY COMMUNITY PARTNER(S): LUBBOCK IMPACT, CATHOLIC CHARITIES, COMMUNITY HEALTH CENTER OF LUBBOCK (CHCL), AND MHMR TARGET POPULATION: LOW INCOME PATIENTS WHO ARE IN NEED OF MENTAL HEALTH SERVICES THAT LIVE IN LUBBOCK COUNTY. OUTCOME GOAL: REDUCE DEPRESSION AMONG ADULT COVENANT COUNSELING CENTER (CCC) CLIENTS WITH PHQ - 9 SCORE OF 5 OR ABOVE SCOPE: NEW ADULT CLIENTS (18 YEARS OR OLDER), AND THOSE RETURNING WITH AT LEAST 1 YR BREAK IN SERVICES, WITH A PHQ-9 SCORE OF 5 OR ABOVE FOR THOSE IN TREATMENT. EXCEPTION: CCC CLIENTS DIAGNOSED WITH COMPLEX PSYCHIATRIC DISORDERS INCLUDING SCHIZOPHRENIA, SCHIZOAFFECTIVE DISORDER OR ONE OF THE BIPOLAR DISORDERS WILL NOT BE INCLUDED. OUTCOME GOAL MEASURE: AVERAGE CHANGE SCORE OF PHQ-9 BETWEEN INTAKE AND 12TH SESSION OR LATEST AVAILABLE SESSION BEFORE 12 WEEKS. FY 12 TARGET: 6.75 FY 12 RESULT: 7.4 FY 12 ACCOMPLISHMENTS: THROUGH THE IMPLEMENTATION OF STRATEGIES TO DECREASE THE # OF DAYS BETWEEN SCREENING AND INTAKE AND INCREASING THE % OF SESSIONS EACH QUARTER IN WHICH EVIDENCE BASED THERAPY MODALITIES WERE UTILIZED WE SURPASSED OUR TARGET OF A 6.75 CHANGE SCORE ON THE PHQ-9. STRATEGY 1: PROVIDE TIMELY INTAKE STRATEGY MEASURE 1: NUMBER OF DAYS BETWEEN TELEPHONE SCREENING OR FACE-TO-FACE SCREENING AND INTAKE FY 12 TARGET: 6.5 DAYS FY 12 RESULT: 6.1 DAYS FY 12 ACCOMPLISHMENTS: OUR TARGET WAS 6.5 DAYS BETWEEN SCREENING AND INTAKE AND WE ENDED THE YEAR AT 6.1 DAYS WHICH WAS .4 LESS THAN THE TARGET. THIS IS A POSITIVE OUTCOME. STRATEGY 2: ENGAGE CLIENTS IN AN APPROPRIATE NUMBER OF SESSIONS FOR BENEFICIAL TREATMENT (BEGIN IN FY 13) STRATEGY MEASURE 2: PERCENTAGE OF ALPHA PROJECT CLIENTS WHO ATTEND AT LEAST THREE (3) COUNSELING SESSIONS STRATEGY 3: ENGAGE CLIENTS IN A RANGE OF EVIDENCE BASED DEPRESSION TREATMENT MODALITIES INCLUDING: CBT, IPT, PST & DIALECTICAL THERAPY STRATEGY MEASURE 3: PERCENT OF SESSIONS EACH QUARTER IN WHICH EVIDENCE BASED THERAPY MODALITIES ARE UTILIZED FY 12 TARGET: 90% FY 12 RESULT: 90% FY 12 ACCOMPLISHMENTS: WE MET OUR TARGET OF 90% FOR FY12 COVENANT'S COMMUNITY HEALTH OUTREACH ORAL HEALTH PROVIDED DENTAL SERVICES TO 1,607 ADULT/ED PATIENTS AND 560 CHILDREN. PATIENT ENCOUNTERS TOTALED 2,705. THE COMMUNITY BENEFIT BOARD APPROVED $1.5 MILLION TO REMODEL THE CHILDREN'S DENTISTRY BUILDING TO ACCOMMODATE THE TRANSITION TO A FAMILY DENTISTRY PROGRAM. INITIATIVE NAME: ORAL HEALTH INITIATIVE (FAMILY DENTISTRY PROGRAM) KEY COMMUNITY PARTNER(S): CHCL, LARRY COMBEST CENTER, BOYS AND GIRLS CLUB, TTUHSC, LUBBOCK IMPACT, LUBBOCK CHILDREN'S HEALTH CLINIC, AND HEAD START TARGET POPULATION: LOW INCOME DENTAL PATIENTS AGES 6 AND OVER OUTCOME GOAL: IMPROVE THE ORAL HEALTH OF THE VULNERABLE POPULATIONS WITHIN THE COMMUNITIES WE SERVE SCOPE: CHO DENTAL PATIENTS AGES 6 AND OVER OUTCOME GOAL MEASURE: AVERAGE CHANGE SCORE ON ORAL HEALTH ASSESSMENT TOOL BETWEEN BEGINNING TREATMENT PLAN AND 6 MONTH EVALUATION FY 12 TARGET: 10.7 AVERAGE CHANGE SCORE ON DMFT ASSESSMENT FY 12 RESULT: 7 FY 12 ACCOMPLISHMENTS: IN FY12 WE COLLECTED BASELINE DATA AND SET OUR TARGETS. WE SET THE FY12 AT 10.7 HOWEVER WE SURPASSED THAT TARGET AT THE END OF THE YEAR BY ENDING AT 7. STRATEGY 1: PROVIDE TIMELY IN HOUSE EMERGENCY DENTAL SERVICES STRATEGY MEASURE 1: PERCENT OF PATIENTS WITH URGENT/EMERGENT DENTAL NEEDS TREATED IN THE CHO DENTAL PROGRAM WITHIN 10 DAYS OF INITIAL CONTACT. FY 12 TARGET: 63% FY 12 RESULT: 75% FY 12 ACCOMPLISHMENTS: IN FY12 WE WERE 12% ABOVE OUR TARGET. THIS IS A POSITIVE OUTCOME FOR THE DENTAL PROGRAM. STRATEGY 2: STRENGTHEN PATIENT'S KNOWLEDGE AND SKILLS ABOUT ORAL HYGIENE STRATEGY MEASURE 2: PERCENT OF PATIENTS WHO REPORT INCREASED KNOWLEDGE AND SKILLS IMPLEMENTATION HAS BEGUN; BASELINE IS CURRENTLY BEING ESTABLISHED. THE DIABETES EDUCATION SERVICES PARTNERED WITH CATHOLIC CHARITIES TO FURTHER EXTEND THIS PROGRAM'S OUTREACH TO THOSE WHO ARE NEED OF DIABETES EDUCATION AND SUPPORT. INITIATIVE NAME: DIABETES PREVENTION AND INTERVENTION PROGRAM KEY COMMUNITY PARTNER(S): THE LARRY COMBEST CENTER, LUTHERAN SOCIAL SERVICES, CATHOLIC CHARITIES, AND CHCL TARGET POPULATION: LOW INCOME PERSONS WITH DIABETES OUTCOME GOAL: EDUCATE ECONOMICALLY DISADVANTAGED PATIENTS WITH DIABETES TO HELP MANAGE THEIR DISEASE SCOPE: PATIENTS ENROLLED IN THE COVENANT COMMUNITY OUTREACH DIABETES EDUCATION PROGRAM OUTCOME GOAL MEASURE: AVERAGE CHANGE SCORE BETWEEN FIRST AND THIRD CLASS ON SELF EFFICACY ASSESSMENT TOOL FY12 TARGET: 34% FY12 RESULT: 37% FY12 ACCOMPLISHMENTS: IN FY12 WE COLLECTED BASELINE DATA AND MEASURED ONE QUARTER OF DATA. OUR GOAL WAS 34% AND WE ENDED AT 37% WHICH IS AN ACCOMPLISHMENT OF 3% ABOVE OUR GOAL. STRATEGY 1: ENGAGE PATIENTS IN GROUP INTERVENTIONS STRATEGY MEASURE 1: PERCENTAGE OF PATIENTS COMPLETING AT LEAST 3 DIABETES GROUP CLASSES FY 12 TARGET: 76% FY 12 RESULT: 78% FY 12 ACCOMPLISHMENTS: WE SURPASSED OUR TARGET BY 2% IN FY12. COLLABORATE WITH OTHER DEPARTMENTS WITHIN COVENANT AND OTHER FQHCS TO PROVIDE ASSISTANCE TO THE UNDERSERVED AND FINANCIALLY VULNERABLE POPULATIONS TO HELP REMOVE ACCESS TO CARE BARRIERS. INITIATIVE NAME: MEDICAL HOME MANAGEMENT (ACCESS TO CARE) KEY COMMUNITY PARTNER(S): LARRY COMBEST CENTER AND COMMUNITY HEALTH CENTER OF LUBBOCK TARGET POPULATION: MEDICALLY UNDERSERVED AND FINANCIALLY IN NEED INDIVIDUALS OUTCOME GOAL: PROVIDE ASSISTANCE TO UNDERSERVED AND FINANCIALLY VULNERABLE COMMUNITY MEMBERS IN ORDER TO HELP REMOVE ACCESS TO CARE BARRIERS SCOPE: UN-INSURED AND UNDER-INSURED COMMUNITY MEMBERS WHO UTILIZE THE EMERGENCY ROOM FOR NON-EMERGENT ISSUES AND WHO HAVE CHRONIC HEALTH CONDITIONS WHICH ARE NOT MANAGED ON AN OUT-PATIENT BASIS OUTCOME MEASURE: MEDICAL HOME ELEMENTS IMPLEMENTED COVENANT WILL PROVIDE FINANCIAL SUPPORT TO TEXAS TECH UNIVERSITY CENTER FOR PREVENTION AND RESILIENCY TO FUND CBMI WHICH IS A LONGITUDINAL STUDY MEASURING THE EFFECTIVENESS OF A PREVENTION AND INTERVENTION PROGRAM THAT IMPACTS CHILDHOOD OBESITY. THOSE PERFORMING THE STUDY WILL PROVIDE THE CB COMMITTEE WITH QUARTERLY UPDATES ON STRATEGY AND MEASURES. INITIATIVE NAME: COVENANT BODY MIND INITIATIVE (CBMI) KEY COMMUNITY PARTNER(S): TEXAS TECH UNIVERSITY CENTER FOR PREVENTION AND RESILIENCY, LUBBOCK INDEPENDENT SCHOOL DISTRICT, AND CHRIST THE KING CATHEDRAL SCHOOL TARGET POPULATION: MIDDLE AND HIGH SCHOOL STUDENTS IN LUBBOCK, TEXAS AND THE SURROUNDING AREA GOAL: SIGNIFICANT REDUCTION IN THE PREVALENCE OF CHILDHOOD OBESITY IN LUBBOCK COUNTY AND OVERALL IMPROVEMENT IN THE HEALTH AND WELLNESS OF PROJECT PARTICIPANTS WITHIN THE NEXT 10 YEARS. HOW WILL WE MEASURE SUCCESS?: BY ASSESSING A LONGITUDINAL STUDY MEASURING THE EFFECTIVENESS OF PREVENTION AND INTERVENTION PROGRAMS THAT IMPACTS CHILDHOOD OBESITY. FINANCIAL ASSISTANCE PROGRAM WE BELIEVE THAT NO ONE SHOULD DELAY SEEKING NEEDED MEDICAL CARE BECAUSE THEY LACK HEALTH INSURANCE. THAT IS WHY COVENANT HEALTH, HAS A PATIENT FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES FREE AND/OR DISCOUNTED SERVICES TO ELIGIBLE PATIENTS. FACTORS USED IN DETERMINING ELIGIBILITY FOR PATIENT FINANCIAL ASSISTANCE INCLUDE INCOME LEVEL, ASSET LEVEL, AND MEDICAL INDIGENCE. FOR MORE INFORMATION ABOUT COVENANT HEALTH, PLEASE VISIT WWW.COVENANTHEALTH.ORG. FOR MORE INFORMATION ABOUT ST. JOSEPH HEALTH SYSTEM, PLEASE VISIT WWW.STJHS.ORG. DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, LINE 6 ST. JOSEPH HEALTH SYSTEM AND LUBBOCK METHODIST HOSPITAL SYSTEM ARE THE CORPORATE MEMBERS OF COVENANT HEALTH SYSTEM. DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, LINE 7A COVENANT HEALTH SYSTEM HAS A TIERED GOVERNANCE IN WHICH THE CORPORATE MEMBERS RESERVE THE RIGHT TO APPOINT TRUSTEES TO THE COVENANT HEALTH SYSTEM BOARD. ALL TRUSTEE APPOINTMENTS THAT COME FROM THE COVENANT HEALTH SYSTEM BOARD AS NOMINATIONS MUST BE APPROVED BY THE ST. JOSEPH HEALTH SYSTEM, AS THE CORPORATE MEMBER, AND THE ST. JOSEPH HEALTH MINISTRY, AS THE ORGANIZATIONAL SPONSOR. THE ST. JOSEPH HEALTH SYSTEM MEMBER APPROVES 50% OF THE BOARD NOMINATIONS, PLUS THE VOTING CEO. THE LUBBOCK METHODIST HEALTH SYSTEM MEMBER APPROVES THE OTHER 50% OF BOARD NOMINATIONS. DECISIONS REQUIRING APPROVAL FORM 990, PART VI, LINE 7B THE RESERVED RIGHTS IN OUR TIERED GOVERNANCE STRUCTURE CONTEMPLATE APPROVAL BY THE ST. JOSEPH HEALTH SYSTEM MEMBER OF FINANCING, BUDGETS, UNBUDGETED EXPENDITURES OF DEFINED AMOUNTS, STRATEGIC PLAN, APPOINTMENT OF AUDITORS, CREATION OR INVESTMENT IN A LEGALLY RECOGNIZED ENTITY, JOINT VENTURES, PURPOSES, SALE OR DISPOSITION OF REAL PROPERTY, MERGER OR SALE OF SUBSTANTIALLY ALL ASSETS, APPOINTMENT AND REMOVAL OF TRUSTEES, ADOPTION OR AMENDMENT OF ARTICLES OR BYLAWS. PROCESS USED BY MANAGEMENT AND/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, LINE 11B THE FORM 990 WAS PREPARED BY THE FINANCE DEPARTMENT BASED ON INFORMATION RECEIVED FROM VARIOUS DEPARTMENTS OF THE ORGANIZATION AS APPLICABLE. THE FORM 990 WAS THEN REVIEWED BY AN OFFICER OF THE ORGANIZATION. A COPY OF THE FORM 990 FILING WAS DISTRIBUTED TO ALL VOTING MEMBERS OF THE BOARD FOR THE APRIL 2013 MEETING. DURING THE FINANCE COMMITTEE MEETING, MANAGEMENT PRESENTED AND DISCUSSED CERTAIN DISCLOSURES AND INFORMATION INCLUDED IN THE FORM 990. THE FINANCE COMMITTEE CHAIR THEN PROVIDED A SUMMARY AT THE FULL BOARD MEETING. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, LINE 12C OFFICERS, TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANNUALLY ON THE CONFLICT OF INTEREST DISCLOSURE FORM THE EXISTENCE AND NATURE OF ANY ACTUAL, APPARENT, OR POTENTIAL CONFLICTS OF INTEREST HE/SHE MAY HAVE. ADDITIONALLY, DISCLOSURES SHALL BE MADE PROMPTLY ANY TIME AN ACTUAL, APPARENT, OR POTENTIAL CONFLICT OF INTEREST ARISES AND BEFORE THE CONSUMMATION OF ANY CONTRACT, TRANSACTION, OR ARRANGEMENT THAT IS THE SUBJECT OF THE POTENTIAL CONFLICT OF INTEREST. WHEN A CONFLICT OF INTEREST IS IDENTIFIED, SUCH CONFLICT IS DISCLOSED TO THE CONFLICTS & COMPENSATION COMMITTEE. IF THE CONFLICT INVOLVES A MEMBER OF THAT COMMITTEE, THE REMAINING COMMITTEE MEMBERS REVIEW THE MATTER AND DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. THE OFFICER, TRUSTEE, OR KEY EMPLOYEE MAY NOT BE PRESENT DURING ANY MEETING IN WHICH THE COMMITTEE CONDUCTS ITS EVALUATION, EXCEPT TO ANSWER QUESTIONS AS MAY BE NECESSARY. ONCE ALL NECESSARY INFORMATION HAS BEEN OBTAINED, THE COMMITTEE CONDUCTS ITS EVALUATION AND FORWARDS ITS FINDINGS AND RECOMMENDATIONS TO THE SJHS CHIEF COMPLIANCE OFFICER. IF THE COMMITTEE DETERMINES AN UNRESOLVED CONFLICT OF INTEREST EXISTS, THE COMMITTEE WILL EVALUATE AND RECOMMEND CONFLICT MITIGATION STRATEGIES. THE SJHS CHIEF COMPLIANCE OFFICER, IN CONSULTATION WITH SJHS GENERAL COUNSEL, WILL REVIEW THE COMMITTEE FINDINGS, RECOMMENDATIONS, AND MITIGATION STRATEGIES, AND PRESENT RECOMMENDATIONS TO THE BOARD FOR DISCUSSION AND VOTE. PROCESS USED TO DETERMINE COMPENSATION FORM 990, PART VI, LINES 15A AND 15B THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS PAID BY ITS TAX EXEMPT PARENT, ST. JOSEPH HEALTH SYSTEM, AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. THE EXECUTIVE COMPENSATION PROCESS AT ST. JOSEPH HEALTH SYSTEM IS ADMINISTERED BY A COMMITTEE OF INDEPENDENT TRUSTEES. THEY FOLLOW A BOARD-APPROVED CHARTER AND OVERALL EXECUTIVE COMPENSATION PHILOSOPHY. THE CHARTER EMPOWERS THE SJHS BOARD WORKLIFE COMMITTEE TO ADMINISTER THE EXECUTIVE COMPENSATION PROGRAM AND PROCESS ON BEHALF OF THE FULL BOARD OF TRUSTEES OF SJHS. OVERALL, THE PHILOSOPHY IS INTENDED TO REWARD A BROAD SPECTRUM OF HIGH ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE EXPECTATIONS, AS WELL AS THE RETENTION OF KEY MANAGEMENT TALENT. THE SJHS EXECUTIVE COMPENSATION PHILOSOPHY DEFINES THE MARKET FOR ADMINISTERING COMPENSATION AS A COMPARABLE SET OF NOT-FOR-PROFIT HEALTH CARE DELIVERY SYSTEMS. SJHS PROVIDES COMPENSATION TO ITS SENIOR EXECUTIVES IN THE FORM OF BASE SALARY, AN ANNUAL INCENTIVE PROGRAM, AND BENEFITS. TO FULFILL THEIR RESPONSIBILITY, THE COMMITTEE REGULARLY REVIEWS INFORMATION FROM MULTIPLE SOURCES OF MARKET DATA. THEY USE THIS INFORMATION TO SUPPORT THEIR DECISIONS REGARDING ONGOING EFFECTIVENESS AND ADMINISTRATION OF THE PROGRAM. THE WORKLIFE COMMITTEE IS COMPRISED OF SEVERAL INDEPENDENT MEMBERS OF THE BOARD. THEY MEET AT LEAST 3 TIMES A YEAR AND MAKE ALL CRITICAL DECISIONS IN EXECUTIVE SESSION. THESE DECISIONS ARE DOCUMENTED IN DETAILED MINUTES AND APPROVED IN SUBSEQUENT MEETINGS. THE COMMITTEE IS EMPOWERED TO ENGAGE OUTSIDE COUNSEL AND CONSULTING SUPPORT AS NEEDED. THE WORKLIFE COMMITTEE PERFORMED ITS LAST COMPENSATION REVIEW FOR ASSISTANT VICE PRESIDENTS, VICE PRESIDENTS, SENIOR VICE PRESIDENTS, EXECUTIVE VICE PRESIDENTS, AND THE CHIEF EXECUTIVE OFFICER IN JUNE 2012. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE SJHS COMMUNITY BENEFIT REPORTS, FINANCIAL REPORTS, AND PHILANTHROPY REPORTS ARE ALSO AVAILABLE ON THE SJHS INTERNET SITE. AUDITED FINANCIAL STATEMENTS ARE ATTACHED TO THE FORM 990. HOURS DEVOTED TO RELATED ORGANIZATIONS FORM 990, PART VII CERTAIN EXECUTIVES AND BOARD MEMBERS OF THIS ORGANIZATION ALSO DEVOTED TIME TO OTHER ENTITIES RELATED TO THE FILING ORGANIZATION. THE HOURS DEVOTED TO THE RELATED ORGANIZATIONS ARE NOT GENERALLY TRACKED BY ENTITY. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 5 NONOPERATING UNREALIZED LOSSES $ (9,996,857) NET CHANGE IN EQUITY TRANSFER $ (2,906,921) ------------ TOTAL $(12,903,778) ============ OVERSIGHT OR SELECTION PROCESS FORM 990, PART XII, LINE 2C THE ST. JOSEPH HEALTH SYSTEM BOARD APPROVED THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND SELECTION OF THE INDEPENDENT ACCOUNTANT. 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