2013-05-15T15:23:17-05:00 2012-06-30 990 2011-07-01 250965274 BUTLER HEALTHCARE PROVIDERS BUTL 7242844429 ONE HOSPITAL WAY BUTLER PA 16001 Anne B Krebs 7242844400 2013-05-15 2011 2016-02-24 21:20:13Z Butler Memorial Hospital Kenneth P DeFurio ONE HOSPITAL WAY BUTLER PA 16001 221597280 0 X www.butlerhealthsystem.org X 1898 PA The mission of Butler Memorial Hospital is to be a healing presence in the communities we serve. We exist to make a positive difference in the lives of people by providing compassionate, high quality care and comfort, and inspiring health and wellbeing. 12 9 2069 293 4726770 657988 2354315 2307488 204952852 209233549 1804233 1112075 9562505 8944168 218673905 221597280 50000 50350 0 0 102100965 99980607 0 0 0 112248474 112251580 214399439 212282537 4274466 9314743 307666583 311663633 174484811 188837518 133181772 122826115 X The mission of Butler Memorial Hospital is to be a healing presence in the communities we serve. We exist to make a positive difference in the lives of people by providing compassionate, high quality care and comfort, and inspiring health and wellbeing. 0 0 176521723 50350 212072033 Butler Memorial Hospital (BMH) is an independent, community-based hospital that has served Butler County, PA, and the surrounding area for over 100 years. BMH employs nearly 2,000 people, making it the largest employer in Butler County. The hospital has grown into a regional referral center for the areas. It is the largest hospital facility between Pittsburgh and Erie. It is comprised of 296 acute care beds and a 25 bed skilled nursing facility. BMH serves approximately 13,000 acute care patients (admissions) and over 485,000 outpatients each year. The Hospital maintains a deep commitment to its community, as is demonstrated through its broad services offering. It provides all levels of general medical and surgical care, emergency services, a robust psychiatric service, drug & alcohol treatment, family services, preventative & wellness programs and tertiary cardiovascular care. It also has a network of 28 convenient, low cost outpatient site that are located in communities through Butler County and the surrounding area. 176521723 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 1 0 1 0 0 0 0 1 0 1 0 0 0 0 0 1 1 1 0 0 1 131 0 1 2069 1 1 1 0 0 0 0 0 0 0 0 0 X 12 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 PA X X Finance Department 7242844429 One Hospital Way Butler PA 16001 X Fiore C Londino 2.00 X X 0 0 0 Kenneth P DeFurio 40.00 X X 654692 0 190434 Marcia Segraves 2.00 X X 0 0 0 D Kelly Agnew MD 1.00 X 0 0 0 C Ross Betts MD 1.00 X 0 0 0 Mario Kinsella MD 1.00 X 0 0 0 T T Channapati MD 1.00 X 17792 0 0 David E Foreman 1.00 X 0 0 0 Kathryn S Helfer 1.00 X 0 0 0 Patti-Ann Kanterman 1.00 X 0 0 0 Douglas K McClaine 1.00 X 0 0 0 Robert M Smith PhD 1.00 X 0 0 0 Margaret Irvine 1.00 X 0 0 0 Anne B Krebs 40.00 X 350846 0 73984 Stephanie Roskovski 45.00 X 251685 0 45151 Karen Allen 50.00 X 225579 0 54045 Charles Oleson 50.00 X 245101 0 63913 A Thomas McGill MD 40.00 X 357869 0 74273 John C Reefer MD 40.00 X 355799 0 86875 Paula L Hooper 30.00 X 266094 0 56905 Maureen A Gray 50.00 X 263892 0 56028 2989349 0 701608 42 0 1 0 Metz Environmental Services Two Woodland Drive Dallas PA 18612 Environmental/Dietary 2532571 Advanced Imaging Inc 4198 Washington Road McMurray PA 15317 Imaging Servies 2211223 Butler Anesthesia Associates PO Box 737 East Butler PA 16029 Anesthesiology 1923324 Quest Diagnostics 875 Greentree Road Pittsburgh PA 152203610 Laboratory Services 1532507 Point Security Company 359 Northgate Road Warrendale PA 15086 Security Services 1016728 19 4729 878799 1423960 2307488 Net Patient Revenue 621500 209233549 206044638 3188911 209233549 1112075 915 1111160 Other Income 900099 3508000 3273956 234044 Meaningful Use 900099 1865423 1865423 Dietary 722210 1379829 1379829 2190916 888016 1302900 8944168 221597280 212072033 4726770 2490989 50350 50350 1636868 118243 1518625 74226271 65878441 8347830 4751330 4228684 522646 13971521 12434654 1536867 5394617 4787207 607410 311782 31833 279949 120000 120000 938716 199920 738796 51896791 50631140 1265651 2237068 2231675 5393 5356149 5005212 350937 458444 129237 329207 124267 81660 42607 6479498 6479498 14076797 10739013 3337784 1956253 9040 1947213 Purchased Services 12571949 9766130 2805819 Bad Debt 8625745 45474 8580271 Physician Fees 5030365 3237779 1792586 Miscellaneous 2067756 436533 1631223 212282537 176521723 35760814 0 2875 2850 25275539 44447448 27674587 29756714 1713996 1220393 3040910 2940699 2946874 3127347 300867706 151548057 158802793 149319649 78984616 71970788 3622868 3737922 5601525 5139823 307666583 311663633 20148787 23009461 135309188 133449557 19026836 32378500 174484811 188837518 X 131773372 121680563 1408400 1145552 133181772 122826115 307666583 311663633 X 9314743 -19670400 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2577581 2577581 84606335 29426424 55179911 6987629 2561759 4425870 196286445 115721190 80565255 10409716 3838684 6571032 149319649 Pension 27493466 Third Party Settlements 4885034 32378500 Description of Uncertain Tax Positions Under FIN 48: Part X: The System adopted the standard for accounting for uncertainty in income taxes recognized in a company's financial statement that prescribes a recognition threshold of more-likely-than-not to be sustained upon examination by the appropriate taxing authority. Measurement of the tax uncertainty occurs if the recognition threshold has not been met. The standard also provides guidance on derecognition, classification, interest and penalties, accounting for interim periods, and disclosure. Management determined that there were no tax uncertainties that meet the recognition threshold as of June 30, 2012 or 2011. The Systems income tax returns for the years ended 2011, 2010 and 2009 remain subject to examination by the Internal Revenue Service and state agencies. 1 1 1 X 1 X 1 1 1 0 1 1 3836888 161591 3675297 0.01800 25767134 17411570 8355564 0.04100 193158 186448 6710 0.00000 29797180 17759609 12037571 0.05900 210594 16725 193869 0.00100 439166 439166 0.00220 17714021 12930547 4783474 0.02350 231699 231699 0.00110 18595480 12947272 5648208 0.02780 48392660 30706881 17685779 0.08680 14564 14564 0.00010 14564 14564 0.00010 0 8625745 4634000 40452169 44871175 -4419006 X 1 1 1 1 Butler Healthcare Providers

One Hospital Way Butler PA 160014670

X X X Butler Memorial Hospital 1 1 1 200.000000000000 1 300.000000000000 1 X 1 1 X 1 0 1 X 0 0 2 Butler Healthcare Providers SNF

One Hospital Way Butler PA 16001

Skilled Nursing Facility Butler Healthcare Providers Psych

One Hospital Way Butler PA 16001

Psychiatric and Chemical Dependency Part I, Line 7: The costing methodology is based on the ratio of cost to charges from our hospital's accounting system. Part I, L7 Col(f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), was subtracted for purposes of calculating the percentage in this column is $8,625,745. Part III, Line 4: Provision for bad debts and allowance for doubtful accounts: In July 2011, the FASB issued guidance related to the presentation and disclosure of patient service revenue, provision for bad debts, the allowance for doubtful accounts, and the related disclosures for certain health care entities. This guidance requires health care entities that recognize significant amounts of patient service revenue at the time services are rendered, even though they do not access the patient's ability to pay, to present the provision for bad debts related to patient service revenue as a deduction from patient service revenue (net of contractual allowances and discounts) on their statement of operations. The new guidance also establishes enhanced disclosures surrounding the bad debts, net patient revenue, as well as the allowance for doubtful accounts. This guidance is effective for public entities with fiscal years beginning after December 15, 2011, with early adoption permitted. The system is currently evaluating the impact that adoption will have on its consolidated financial statements.The costing methodology is based on the ratio of cost to charges from our hospital's accounting system. Bad debt expense represents the amount of the patient's obligation that the hospital has been unable to collect. This includes amounts the hospital has written off, plus amounts estimated as uncollectible, less any amounts collected on accounts previously written off. For self pay patients, the balance due is adjusted from the charge amount to 32% of charges based on the average collection rate for insurance contracts. For non self pay patients, the balance is the amount due after insurance payments. Typically this is a deductible or co-insurance. Part III, Line 8: The cost used to determine the Medicare payment shortfall comes from the CMS required filing of the Medicare cost report. The methodology uses a ratio of cost to charges to determine the cost assigned to the Medicare services. Butler Memorial Hospital is committed to serving the healthcare needs of all members of our Community. We consider the revenue shortfall from the Medicare program payments to be part of our community contribution. Part III, Line 9b: Patients who have previously applied and been approved for our charity care program are automatically qualified for any additional services provided over the next six months after application approval. We also will presumptively qualify patients for charity care if they meet criteria such as being food stamp eligible and qualifying for section 8 housing. Butler Memorial Hospital Part V, Section B, Line 19d: The Hospital used the average payment to charge ratio of all the commercial insurance plans. The ratio is updated annually based on the prior year's payment ratio. Part VI,Line 2:BMH periodically surveys Butler County Residents about their healthcare needs. Included in the survey are questions from the Centers for Disease Control Behavioral Risk Factor Surveillance System. The goal is to assess health status, disease burden and diagnosis, disease prevention, exercise and nutrition status, access to care and overall health literacy. Responses to the survey are carefully evaluated by a specialist in Public Health and results are shared with BMH's clinical staff. The findings are then integrated into operations that meet the community's health needs. Part VI, Line 3: There are signs posted in all registration areas indicating that free care is provided to those people in need. Information is provided to all self pay patients at time of registration indicating that help is available if the patient meets the criteria. A notice is also posted on the hospital's web site. Each patient statement that is mailed out has a notice of the availability of free care and how to apply. The Hospital provides assistance to patients to determine if they are eligible for the Pennsylvania Medical Assistance program. The Patient Financial Assistance staff notifies patients of the availability of free care during phone conversations about the collection of balances due. Part VI, Line 4: Butler, Pennsylvania is a rural town with a population of approximately 13,000. The estimated median household income of $28,000 is well below the Pennsylvania average of $49,520. Approximately 21% of residents in Butler Pennsylvania live in poverty. Residents of Butler County Pennsylvania comprise the majority of patients served by Butler Memorial Hospital. Additionally, BMH serves residents of surrounding counties including Allegheny, Lawrence, Mercer, Venango, Clarion and Armstrong Counties. Part VI,Line 5:A majority of the Governing Body of Butler Memorial Hospital reside in our primary service area. Per the Corporate Bylaws 60% of the Trustees must work or reside in the service area. Medical Staff Privileges are offered to all qualified physicians subject to the recommendation of the Hospital Medical Staff and in compliance with the policies of the Board of Trustees. Currently 284 physicians, podiatrists and dentists hold privileges on the Butler Memorial Hospital Medical Staff. Privileges are offered based on qualifications and community need without regard to other factors such as race, sex, color, creed, or national origin. Annually, Butler Memorial Hospital establishes operating and capital budgets designed to efficiently allocate funds for its ongoing operation and for the additional investment in new and replacement patient care equipment; plant and infrastructure; and technology. Upon preparation by management staff the final budget is presented for approval by the Board of Trustees. 0 Community Health Clinic of Butler County 103 Bonnie Drive Butler PA 16002 204852135 501 (c) (3) 50350 General Support to provide medical care of indigent patients 1 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The organization's bylaws control the contributions that can be made and the process related to such. X X X X X X 0 1 0 0 0 0 0 1 0 Kenneth P DeFurio 470164 0 155106 0 29422 0 150925 0 39509 0 845126 0 0 0 Anne B Krebs 260870 0 52075 0 37901 0 46867 0 27117 0 424830 0 0 0 Stephanie Roskovski 201319 0 38601 0 11765 0 25929 0 19222 0 296836 0 0 0 Karen Allen 177076 0 38002 0 10501 0 21450 0 32595 0 279624 0 0 0 Charles Oleson 197264 0 34462 0 13375 0 26353 0 37560 0 309014 0 0 0 A Thomas McGill MD 282618 0 55261 0 19990 0 46911 0 27362 0 432142 0 0 0 John C Reefer MD 282091 0 55261 0 18447 0 49657 0 37218 0 442674 0 0 0 Paula L Hooper 211385 0 41929 0 12780 0 20502 0 36403 0 322999 0 0 0 Maureen A Gray 208262 0 43102 0 12528 0 29638 0 26390 0 319920 0 0 0 Part I, Line 4b 4 (b) Anne B Krebs received payment of 21,689 as part of a Senior Executive Benefit Plan for a tax-deferred Capital Accumulation Account. The amount represents the amount paid out after a two year vesting period. The program was discontinued in January, 2009. However, in some cases payments have been deferred into future years. 4 (b) As part of the Senior Executive Benefit Plan, the organization contributes to a SERP plan. The SERP plan is a benefit used to retain executives. Executives do not receive any payment from the plan until they reach a vesting milestone at 5 years, 10 years and then finally at 65 years of age. Benefits paid to the participant are taxable. The organization contributed the following amounts to the SERP plan for the following individuals: 4 (b) Kenneth P DeFurio 134,425; Anne B Krebs 31,245; Maureen A Gray 23,460; Stephanie J Roskovski 23,160; A Thomas McGill MD 33,157; John C Reefer MD 33,157; Paula L Hooper 11,550; Karen A Allen 11,550; Charles Oleson 14,190 Part I, Line 7 7 Officers and employees are eligible and received bonus compensation. Bonuses are not guaranteed and are awarded based on Board approved metrics which include quality, services and financial performances. Supplemental Information Part III Butler Health System Executive Compensation Philosophy and Process The Board of Trustees recognizes the great challenges and difficulties that healthcare executives face, particularly in the current era of national and state healthcare reform. In addition, the Pittsburgh regional market is highly competitive and changing rapidly. The Board competes for and seeks executive talent on a national basis. It engages expert compensation consultants, utilizing national comparative data to guide the determination of competitive, appropriate levels of compensation. The total compensation program for executives consists of cash compensation and benefits. Factors taken into consideration in determining compensation for executives include: market demand and competition for similar positions, experience and tenure, and actual performance and effectiveness. Based on these and other pertinent criteria, BHS targets total compensation to fall within a range of the 25th to 75th percentile of the market. BHS executive compensation generally will not exceed the 75th percentile of the market. Exceptions to this may be subject to review and recommendation by the Compensation Committee, which in turn is subject to review and approval by the Board of Trustees. Exception must be supported by organizational and /or individual performance, or a retention/recruitment circumstance that warrants such compensation. The Compensation Committee consists exclusively of "non-interested" individuals with no real or perceived conflicts of interest in recommending executive compensation guidelines and levels. While benefits are accounted for in Schedule J, actual "take home" pay to the executive consists only of base salary and incentive award earned, if any. Annual increases in base pay, if any, are based on competitive market trends from the comparison group. Supplemental retirement benefits are used as a vehicle for executive recruitment and retention with appropriate vesting periods. The Board of Trustees reviews and approves executive compensation in its entirety, including the use of "tally sheets", which disclose 100% executive compensation. The Board of Trustees engages external compensation and legal expertise to assure reasonableness of executive compensation levels. Butler County Hospital Authority 251458912 1235926QB 2009-04-29 50000000 Construction of addition to hospital 0 1 0 Butler County Hospital Authority 251458912 123592CPO 2009-04-29 74728451 Construction of addition to hospital 0 1 0 Butler County Hospital Authority 251458912 000000000 2010-06-29 12165000 Construction of addition to hospital 0 1 0 50000000 833495 49166505 2010 0 0 0 1 74728451 6853385 1419179 66455887 2010 0 0 0 1 12165000 217226 0 1 1 1 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Anne B Krebs CFO & Officer of Org; Uncompensated member of Board of Directors of YMCA 191129 Organization leases from the YMCA 0 Mario Kinsella MD Member of the Board of Trustees of Org;Officer of AIRMED with 14% ownership 674602 Assoc in Respiratory Mediciane, AIRMED,provides respiratory services for the organization 0 Form 990, Part VI, Section A, line 6 Per the By-Laws of the organization, the organization shall have one corporate member, Butler Health System, Inc. There shall be no other members. Form 990, Part VI, Section A, line 7a Butler Health System, Inc., the corporate member of the organization, appoints the members of the Board of Trustees. Form 990, Part VI, Section A, line 7b As per the By-Laws of the organization, the subject matters of the powers reserved to the Member are as follows: a. The number of Trustees that will comprise the Board. b. The election of Trustees. c. The removal of any Trustee for cause from the Corporation's Board of Trustees and approval of the replacement of any such removed Trustee for the unexpired portion of the term. d. The election, re-election, appointment and reappointment of all Officers of the Board. e. The amendment, revision, or restatement of the Corporation's Articles of Incorporation and/or By-Laws. f. The adoption or change in the mission, purpose, philosophy or objectives of the Corporation. g. The change in the general structure of the Corporation as a voluntary, nonprofit corporation. h. The dissolution, division, conversion or liquidation of the Corporation, the consolidation or merger of the Corporation with another corporation or entity, or the acquisition of substantially all of the assets of another corporation or entity, subject to the provision of the Articles of Incorporation. i. The Corporation's borrowing of money, issuance of indebtedness and/or incurrence of guarantees, whether in a single transaction or a series of related transactions, whether or not such borrowings or guarantees are to be secured by a mortgage, pledge or other lien on the Corporation's current or future real property, personal property or endowment funds. j. Approval of the annual capital and operating budgets of the Corporation and any amendments thereto. k. Approval of any charitable donation by the Corporation, other than to the Member or any nonprofit entity in which the Member is a sole member, in an amount exceeding $15,000 or in an amount exceeding $150,000 in the aggregate during any one fiscal year. l. Approval of any transfer other than charitable donations of the Corporation's assets unless specifically authorized in the Corporation's approved budgets. m. Approval of change of membership or voting rights of the Member. Form 990, Part VI, Section B, line 11 The completed 990 was reviewed by the Chief Financial Officer and an outside independent public accounting firm. Relevant sections were reviewed by the Vice President and General Counsel. Highlights of the Form 990 were reviewed with the Finance Committee and the Board of Trustees. After these reviews, but prior to filing, the full Board of Trustees and the Finance Committee was notified that the completed Form 990 was available for review on the Boards secure website. Form 990, Part VI, Section B, line 12c The responses to the Conflict of Interest Disclosure form are collected and reviewed annually by General Counsel, who then reviews the same with the Audit and Compliance Committee of the Board of Trustees. Conflict of Interest Disclosure forms are completed by all trustees, officers, committee members as well as the executive team. In the event a relationship results in a potential conflict for an issue being discussed by the Board, the trustee recues himself/herself from the discussion and vote. The recusal is documented in the minutes. The Vice President and General Counsel attends all board meetings and ensures that any needed recusals occur. Form 990, Part VI, Section B, line 15 The Board of Trustees recognizes the great challenges and difficulties that healthcare executives face, particularly in the current era of national and state healthcare reform. In addition, the Pittsburgh regional market is highly competitive and changing rapidly. The Board competes for and seeks executive talent on a national basis. It engages expert compensation consultants, utilizing national comparative data to guide the determination of competitive, appropriate levels of compensation. The total compensation program for executives consists of cash compensation and benefits. Factors taken into consideration in determining compensation for executives include: market demand and competition for similar positions, experience and tenure,and actual performance and effectiveness. Based on these and other pertinent criteria, BHS targets total compensation to fall within a range of the 25th to 75th percentile of the market. BHS executive compensation generally will not exceed the 75th percentile of the market. Exceptions to this may be subject to review and recommendation by the Compensation Committee, which in turn is subject to review and approval by the Board of Trustees. Exception must be supported by organizational and /or individual performance, or a retention/recruitment circumstance that warrants such compensation. The Compensation Committee consists exclusively of "non-interested" individuals with no real or perceived conflicts of interest in recommending executive compensation guidelines and levels. While benefits are accounted for in Schedule J, actual "take home" pay to the executive consists only of base salary and any incentive award earned. Annual increases in base pay, if any, are based on competitive market trends from the comparison group. Supplemental retirement benefits are used as a vehicle for executive recruitment and retention with appropriate vesting periods. The Board of Trustees reviews and approves executive compensation in its entirety, including the use of "tally sheets", which disclose 100% executive compensation. The Board of Trustees engages external compensation and legal expertise to assure reasonableness of executive compensation levels. Form 990, Part VI, Section C, line 19 Historically financial information is provided to the public at the annual public board meeting. Bylaws, Articles of Incorporation and the Conflict of Interest Policy are posted on the website. Part VII Section A Column B: Hours for related organization 1. Kenneth P DeFurio: Hospital 40; Butler Medical Providers 15; Butler Health System Foundation 2; Butler Health System 2; Nixsar Corp 1 2. Anne B Krebs: Hospital 40; Butler Medical Providers 7; Butler Health System Foundation 1; Butler Health System 1; Nixsar Corp 1 3. Stephanie J Roskovski: Butler Hospital 45; Butler Medical Providers 5 4. A Thomas McGill MD: Hospital 40; Butler Medical Providers 15 5. John C Reefer MD: Hospital 40; Butler Medical Providers 15 6. Paula L Hooper: Hospital 30; Butler Medical Providers 15; BHS Foundation 2; Butler Health System 5; Nixsar 1 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Noncontrolling interest in net income of consolidated subsidiaries -73,416. Transfers (to) from affiliates -5,100,000. Accumulated liability for pension benefits -14,234,136. Decrease in interest in investment of BHS assets -262,848. Total to Form 990, Part XI, Line 5: -19,670,400. Part XII Line 2c explanation The organization has not changed its process for reviewing the audited financials or the selection of an independent auditor during the year. Form 990, Part III, Line 4a, Program Service Accomplishments: "Butler Memorial Hospital is privileged to be a healing presence in the communities we serve. We exist to make a positive difference in the lives of people by providing compassionate, high quality care and comfort and inspiring health and well being." This is the mission statement of Butler Memorial Hospital (BMH). These words guide the doctors and staff of BMH every day, as they serve the residents of Butler County and the surrounding area. The people of BMH are passionate about providing high quality care with a high level of service. It extends to a commitment to being an excellent corporate citizen, demonstrated by our remaining an independent community hospital - locally controlled - working diligently to meet your healthcare needs. BMH is proud of the high value care that it provides. It offers convenient facilities and technology that rival any in the region. BMH physicians and employees are exceptionally well-trained, committed to providing patients and families the best care possible. In 2012 BMH provided over $16.4 million in charity care and other uncompensated care. Critical support is provided to education endeavors through our partnerships with Slippery Rock University, Butler County Community College, local school districts, and various other educational institutions throughout the region. BMH makes its facilities and staff available to support training programs. BMH leaders are active members of the local business community, supporting Leadership Butler County, local Chambers of Commerce, Butler County Development Corporation, and a variety of civic and social groups. These include the American Heart Association, American Cancer Society, March of Dimes and Butler Road Race, providing college scholarships to student-athletes from Butler County. These are only a few ways BMH works to serve and live up to its mission of caring for neighbors. In total, BMH provides over $22.1 million in community support each year. This report outlines some of the ways BMH supports the health and lives of people throughout the region. It is a testimony to the commitment and leadership of the BMH medical staff, Board of Trustees, employees, volunteers, and community partners, whose dedication to service touches many lives and makes the community a better place. Respectfully Submitted: Kenneth P. DeFurio President & CEO Margaret Irvine Chairperson, Board of Trustees Fiscal Year 2012 Community Benefit Report 2011 IRS Form 990 Schedule H Executive Summary Butler Memorial Hospital (BMH) is proud to serve our community. In furtherance of our charitable mission, BMH provided over $22.1 million in support in the form of charity care, unreimbursed care, community health improvement, health education, subsidized services and contributions to community organizations. This support accounts for over 10.8% of total expenses. BMH demonstrates its commitment by improving the overall health of our community through the operation of an efficient and effective health care system and by actively supporting appropriate community services. Summary of Services and Community Support Helping People to Live Better, Every Day At Butler Memorial Hospital, a key goal is to strengthen the health and well-being of the community. BMH understand that as a sole community hospital it plays an important role in the health of Butler County residents. This role is taken very seriously. Last year BMH provided over $22.1 million in total community benefit support. This accounts for over 10.8% of our total expenses. The services BMH provides are essential to not only the community's overall health, but also to the quality of life of every resident. Community Health Assessment Butler Memorial Hospital periodically surveys up to 1000 Butler County residents. We use questions from the Centers for Disease Control Behavioral Risk Factor Surveillance System. Our goal is to assess health status, disease burden and diagnosis, disease prevention, exercise and nutrition status, access to care and overall health literacy. Responses to the survey are carefully evaluated by a specialist in Public Health and results are shared with the health system's clinical staff. The findings are then integrated into our plans to improve our service to meet the health needs of our neighbors. Butler Health System Meeting your health care needs cannot be achieved through any one employee, department, or facility. With BMH as the centerpiece of our services, Butler Health System (BHS) has established convenient locations throughout Butler County and the surrounding areas. Butler Memorial Hospital provides 339 licensed beds to care for inpatients, (237 medical/surgical, 59 behavioral, 25 skilled nursing and 18 nursery). Services include Critical Care, Surgical Services, Medical Care, Psychiatric Treatment, Drug & Alcohol Rehabilitation, Obstetrics and Skilled Nursing. Additionally our Emergency Department treated over 47,122 patients last year. This range and complexity of service is not offered by any other entity in Butler County. When the complexity of in-patient treatment is not required, it is more convenient and cost-effective to have services close to home. BHS offers 32 locations throughout the region that offer diagnostic and treatment services including imaging, cardiac diagnostics, laboratory services, family resources, physical therapy, urgent care and physician care. This year we have opened locations in Lawrence, Venango and Armstrong County. BMH recognizes the need to establish medical care available in the evening and weekends. To that end, BMH has partnered with local physicians to establish urgent care services, called BHS FastERcare. This service is offered in Butler Township, Saxonburg, Slippery Rock and Kittanning, and offers high quality walk-in medical care throughout the day and into the evening. Supporting those in need: Our Charity Care and Community Benefit BMH provides free care to those patients who have an obligation after insurance payments, if any. The amount of free care is determined based on the patient's income and family size. Free care is provided to those with incomes up to 300% of the Federal Poverty Guideline. To inform patients of this program, signs are posted in all the registration areas notifying the public of the availability of our free care program. More information is available through our Patient Handbook and on our website at www.butlerhealthsystem.org on the "About BHS" page. At the time of registration, any patient who is uninsured is given a "Patient Notice of Financial Aid." The notice instructs the patient to call or visit the Patient Financial Assistance Department to seek more information about how BMH may be able to help pay for part or all of their care. The monthly collection statements that are mailed to the patient state that the patient may contact the Patient Financial Assistance Department to discuss their eligibility for free care. The Financial Representatives receive and make many calls to the patients. During the calls the financial representatives will discuss with the patients the availability of the free care program and will mail out applications to those patients who want to apply. BMH also contracts with representatives to assist the patient in applying for Medical Assistance coverage. These representatives will also discuss with the patient the availability for free care, especially for those who may not be eligible for the government healthcare plan. Government Program Subsidies In addition to providing free and discounted care to uninsured patients or patients that need financial help, BMH makes up the difference between the costs of care and the amount paid by government-sponsored programs such as Medicare and Medicaid. Last year, that amounted to more than $12.7 million. As provisions of the Patient Protection and Affordable Care Act are implemented, we expect this burden on our patients and the health system will increase. To that end, to remain a viable healthcare provider to our community, BMH continually evaluates ways to keep our costs low while maintain high quality. Billing and Collections BMH is diligent in providing bills that are accurate and easy to understand. Every bill and statement includes information about how to contact financial representatives and arrange payment plans. BMH is committed to finding ways to help every patient pay the portion of their bill they are responsible for without experiencing an overwhelming financial burden. In addition to making our billing process easy to understand and ensuring ready access to charity care and financial assistance, BMH provides patient cost information in advance of services or treatment, upon request. Form 990, Part III, Line 4a, Program Service Accomplishments (cont): Providing Needed Care and Services Plays a Critical Role in Meeting Patient Needs Butler Memorial Hospital subsidizes many of the critical services it offers, such as the Transitional Care Facility, Family Services, obstetrical services, psychiatric services, and prevention and wellness services and primary care services offered through our Physician Clinics. Last year, we provided $4,783,474 in subsidized care and services. BMH actively supports the Community Health Clinic. We provide financial support as well as operational and technical support for many of the diagnostic services provided at the Clinic. Many of our physicians and employees also volunteer their own time to treat patients at the Clinic. Building Our Community Strengthening the community is a responsibility for all local businesses and something BMH takes very seriously. For example: we offer space for meetings and community education; we help local residents escape violent situations, by volunteering to help those in need; we provide education to new and expectant parents; and we provide community health outreach and patient advocacy. Opening Our Facilities for Local Meetings The Knowledge Center at Butler Memorial Hospital offers modern meeting and education space for local and regional conferences. Last year, we hosted the third annual Carol Dietrich Memorial Health Symposium to physicians, nurses and other providers, entitled "Cardiology in the Community Setting." The day long program provided a variety of high quality programs at no cost to participants. Butler Memorial Hospital also offers a series of Continuing Medical Education programs which are made available to health care professionals throughout the region. In cooperation with local institutions like Slippery Rock University and Butler County Community College, as well as others throughout Butler County and the region, we are fully committed to maintaining high quality professional health education for students and practitioners alike. Classroom space is provided for these programs within our Knowledge Center and students are given real life clinical experience as they work with our staff in the care and treatment of patients. BMH works closely with local school districts in supporting high school health occupation programs. The Simulation Laboratory is available for seminars that give students hands on experience, exposing them to the highly complex world of health care delivery. Employees in the Community Every year, BMH and its employees support a variety of community support programs. These include the Caring Angel Program, the United Way and organizations like the American Heart Association, the American Cancer Society, the Butler YMCA and the March of Dimes. This year, employees, physicians, nurses, and board members volunteered to give back to the community. In addition to these activities, employees participate in a variety of community service initiatives, from Habitat for Humanity, to Doctors without Borders, to local student mentoring programs. Summary BMH physicians, nurses, employees, volunteers and volunteer leadership maintain deep connections to the communities we serve. We live and work in Butler County and we are acutely aware of the needs of its residents. As a tax-exempt charitable organization, BMH is careful to manage our resources to meet the current and future healthcare needs of our neighbors. BMH is proud of our independence and pledge to always strive to provide high quality, low cost care in a comfortable and supporting environment. Butler Health System One Hospital Way Butler PA 16001 251441855 Healthcare Delivery System PA 501(c)(3) Line 3 0 Butler Medical Providers One Hospital Way Butler PA 16001 251441855 Physician Practices PA 501(c)(3) Line 3 Butler Health System 0 Butler Health System Foundation One Hospital Way Butler PA 16001 261543883 Fundraising on behalf of Butler Health System PA 501(c)(3) Line 11a, I Butler Health System 0 Nixsar Corporation One Hospital Way Butler PA 16001 251441960 Own and Operate real estate PA 501(c)(3) Line 3 Butler Health System 0 Butler Ambulatory Surgery Center 102 Technology Drive Butler PA 16001 061728190 Surgery PA N/A BHS FastER Care One Hospital Way Butler PA 16001 271961562 Urgent Care PA Butler Healthcare Providers Related -93518 -111269 0 1 0.51000 PCA of Butler Pc 480 East Jefferson Street Butler PA 16001 251351445 Physician Office Practice PA C 0 0 1 0 0 0 0 0 1 1 0 1 1 1 1 1 0 1 BHS-FastER Care I 76522 BHS-FastER Care P 2427174