2012-03-29T11:58:34-07:00 2011-06-30 990 2010-07-01 231352208 SACRED HEART HOSPITAL SACR 6107764500 421 Chew Street Allentown PA 181023490 John Nespoli 6107764502 2012-03-30 2010 2016-02-24 21:20:13Z John Nespoli 421 Chew Street Allentown PA 181023490 121129251 0 X www.shh.org X 1917 PA See Schedule O 10 7 1215 282 0 0 1309609 3179147 102214799 115187412 490691 192981 2752242 2446859 106767341 121006399 0 0 0 0 48406537 53264624 54 55 122635 57570368 58563442 105976959 111828121 790382 9178278 66662229 70951443 55373139 52495056 11289090 18456387 X See Schedule O 0 0 96008843 1431967 115187412 Patient Care: In the fiscal year ended 6-30-11, 38,812 days of inpatient services were provided to 6,508 Inpatients and more than 160,600 occasions of service were provided to Outpatients. 0 0 0 96008843 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 0 1 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 34 0 1 1215 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 10 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Chrisanne Katkovcin 6107765150 421 Chew St Allentown PA 181023490 Brent Peters 0 X 0 0 0 Robert Zentz 0 X 0 0 0 Dr Douglas Shoenberger 0 X 0 0 0 Dr Anthony Auteri 0 X 0 0 0 James Fronheiser 0 X 0 0 0 Msgr John Grabish 0 X 0 0 0 William Scharle 0 X 0 0 0 Dr Farhad Sholevar 9 X 128744 0 0 Dr Mahmood Tahir 3 X 30000 0 0 John Nespoli 55 X X X 0 394734 18418 Stephen Lanshe 55 X X 0 164226 13291 Dr Richard Martin 40 X 202523 0 13975 Dr Maryellen Kistler-Strout 40 X 170216 0 13052 Dr Joseph Daday 40 X 164178 0 9706 Dr Daniel Coller 40 X 161455 0 13044 Dr Stanley Yellin 40 X 156208 0 12692 1013324 558960 94178 29 0 1 0 Sodexo Box 360170 Pittsburgh PA 152516170 Food Service 1112879 Quest Dignostics PO Box 828669 Philadelphia PA 191828669 Lab Testing 640224 Navigant Consulting Inc 4880 Paysphere Circle Chicao IL 60674 Management Consultant 335533 HCSC Laundry 2171 28th Street SW Allentown PA 18103 Laundry Service 250205 Valley Pathology Associates 4416 Tracey Lane Bethlehem PA 180178712 Pathology Services 202884 14 0 0 128129 0 1619051 1431967 0 3179147 Net Patient Services 622000 115187412 115187412 0 0 0 0 0 0 115187412 192981 0 0 192981 0 0 0 0 0 0 0 0 601475 0 0 0 601475 0 601475 0 0 601475 0 0 0 320264 122852 197412 0 0 197412 Health Care Related 900099 606974 0 0 606974 Patient Related Services 900099 452749 157114 0 295635 Parking 812930 325481 0 0 325481 262768 0 0 262768 1647972 121006399 115344526 0 2482726 0 42696045 39554180 3063316 78549 404148 377703 25103 1342 6799915 5684807 1098557 16551 3364516 2892490 465739 6287 2240687 -2230680 4471367 0 35200 0 35200 0 132870 0 132870 0 55 55 6223553 4994246 1223230 6077 351674 15123 336551 0 22854648 20369213 2478922 6513 244445 4200 240245 0 3000419 1075998 1923721 700 163407 158877 4537 -7 106973 64546 42427 0 1872421 1872421 0 0 5609572 5609572 0 0 1921811 1921620 191 0 Bad Debt 13648270 13648270 0 0 Dues & Subsriptions 329522 174027 148927 6568 Prepaid Finance 18555 18555 0 0 Restructure 16332 10592 5740 0 -206917 -206917 0 0 111828121 96008843 15696643 122635 3197413 5605949 0 0 13708293 15976524 0 0 0 2136021 1981727 1762020 1858981 143686637 111860316 33416697 31826321 0 10642794 11697048 822155 739788 976836 1265105 66662229 70951443 21751754 21732705 9411773 9712556 24209612 21049795 55373139 52495056 X 9370284 17045315 941970 145968 976836 1265104 11289090 18456387 66662229 70951443 X 9178278 -2010981 X 1 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1918806 5967387 212855 0 5355059 0 2743989 2126096 2432752 -235523 0 2404519 0 1918806 2889685 456338 -557188 0 662739 0 2126096 0.53 0.47 0 0 0 1435773 0 1435773 69535672 0 45453424 24082248 0 0 0 0 72236300 0 66406892 5829408 478892 0 0 478892 31826321 Bond Funds 6560870 F Funded Depreciation 5093856 F Workmans Compensation 42322 F 11697048 Revenue Bonds 19155521 Capital Lease 1894274 21049795 121006399 111828121 9178278 0 0 0 0 0 0 9178278 121006399 0 0 0 0 0 121006399 0 0 0 121006399 111828121 0 0 0 0 0 111828121 0 0 0 111828121 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Uncompensated care, hospital specific programs and education, equipment purchases and improvements. Links to the Heart 52074 0 52074 500 0 0 5347 0 11872 Night Of Chance 76055 14490 61565 0 0 0 11094 2916 362 0 128129 14490 113639 500 0 0 16441 2916 12234 32091 81548 1 1 X 1 X 1 X 1 1 0 0 1451215 0 1451215 0.0148 19977299 15904097 4073202 0.0415 0 0 0 0 0 0 21428514 15904097 5524417 0.0563 267685 0 267685 0.0027 4000919 1343203 2657716 0.0271 1587451 1428898 158553 0.0177 9097 15373 -6276 0 19235 0 19235 0.0002 0 0 5884387 2787474 3096913 0.0477 0 0 27312901 18691571 8621330 0.1040 11603 11603 0.00012 1641 1641 0.00002 9618 9618 0.0001 6563 6563 0.00007 0 0 29425 0 29425 0.00031 1 2912069 368315 30339991 26565165 3774826 X 1 1 1 1 Sacred Heart Hospital

421 Chew Street Allentown PA 181023490

X X X X Behavioral Health, Home Health, Hospice Services Sacred Heart Hospital 1 0 1 1 150 1 250 1 X X X 1 1 X X X X X 1 X 1 X X X X X 1 X 0 1 SchH_P01_S00_L07 Schedule H, Part I, Line 7 With the exception of Line g, the Cost to Charge Ratio, calculated by using Worksheet 2, was applied. For Line g - the actual departmental cost to charge ratio was applied. SchH_P01_S00_L072f Schedule H, Part I, Line 7, Column f Bad Debt expense of $13,648,270 was excluded when calculating the Ratio of Cost to Charges. SchH_P01_S00_L07g Schedule H, Part I, Line 7g All of Line 7 g is attributable to clinics. SchH_P02_S00_L00 Schedule H, Part II SHH has not yet completed a formal health needs assessment, however, for the past year it has been collaborating with other local hospitals, facilitated by a Trust. As a group, the objective is to develop a Community Health Needs Assessment that will provide us with the opportunity to fulfill the requirements of Section 9007 of the Patient Protection and Affordable Care Act. The assessment findings will be linked to clinical decision making within the SHH system. Currently decisions on community health needs are made by analyzing inpatient and outpatient data needs and trends and then responding to them primarily through School-Based Health Centers, Parish Nursing/Outreach Department, Pediatric, Adult and Dental clinics, children's obesity programs, diabetes education program, etc. SchH_P03_S0A_L04 Schedule H, Part III, Section A, Line 4 Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful collections is estimated based upon a periodic review of the accounts receivable aging, payor classifications and application of historical write-off percentages. The Hospital provides charity care to patients who meet certain criteria without charge or at amounts less than its established rates. Because the Hospital does not pursue collection of amounts determined to qualify as charity care, they are not reported as revenues. The Hospital maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges foregone for services rendered and supplies furnished under its charity care policy. Charges foregone, based on established rates, were $6,802,000 in 2011. SchH_P03_S0B_L08 Schedule H, Part III, Section B, Line 8 Shortfall represents the cost to the Hospital for uncompensated medical services provided to the community. SchH_P03_S0C_L09b Schedule H, Part III, Section C, Line 9b A computerized statement is generated within 21 days after an account indicates a remaining patient liability. Follow-up statements are mailed at 21-day cycles thereafter, for a total of three statements. After three statements and no response the accounts are transferred to a collection agency work list for either reference to collections or additional collection activities. The collectors ask the patient for promise to pay and a date. If the patient cannot pay in full, the collector will set up for contract payments with follow up statements based on a schedule. SchH_P05_S0B_L19 Schedule H, Part V, Section B, Line 19 Sliding Fee Schedule SchH_P05_S0B_L21 Schedule H, Part V, Section B, Line 21 For patients that could not be contacted for information, the total amount is sent to collection. When no patient financial information is available due to non-cooperation by the patient, a review of charges for charity discount cannot occur. SchH_P06_S00_L02 Schedule H, Part VI, Line 2 Sacred Heart Hospital has not yet completed a formal health needs assessment, however, for the past year it has been collaborating with other local hospitals, facilitated by a Trust. As a group, the objective is to develop a Community Health Needs Assessment that will provide us with the opportunity to fulfill the requirements of Section 9007 of the Patient Protection and Affordable Care Act. The assessment findings will be linked to clinical decision making within Sacred Heart Hospital and its affiliates. Currently decisions on community health needs are made by analyzing inpatient and outpatient data needs and trends and then responding to them primarily through School-Based Health Centers, Parish Nursing/Outreach Department, Pediatric, Adult and Dental clinics, children's obesity programs, diabetes education program, etc. SchH_P06_S00_L03 Schedule H, Part VI, Line 3 On each of the billing statements it states: "Sacred Heart Hospital provides free care to persons who qualify. If you cannot afford the cost of your care, you are encouraged to apply for free care by calling 610-776-4566". If the patient calls in, the Hospital would help screen them for Medical Assistance (MA) eligibility and refer to ARMDS (Accounts Receivable Management & Data Services, Inc.) to do an MA application if appropriate. If the patient does not qualify for MA, the Hospital would request the necessary documentation to determine eligibility for charity. For the patients that do not qualify for MA or charity, the Hospital offers a 25% self pay discount or a payment plan. In addition to the statements this information is provided in admission packets, at registration, in the emergency facility, on all bills and on the Hospital's web site. SchH_P06_S00_L04 Schedule H, Part VI, Line 4 Sacred Heart Hospital is located in the lowest per capita income zip code in Allentown, PA. Over 50% of the population of Allentown is minority, in the schools it is more like 70-80% minority. Allentown School District has 86% of its students receiving free or reduced lunch, an indicator of poverty. Many children in Allentown are insured by PA-CHIP or have no insurance because they may be illegally in the United States with their families. A total of 79% of inpatients have either government paid insurance (Medicare/Medicaid, MA Managed Care) or are self-pay; of outpatient care, 65% is paid by government insurance or self-pay. SchH_P06_S00_L05 Schedule H, Part VI, Line 5 The examples listed in Needs Assessment help build our community by improving the health status of children, improving immunization rates, provide care for chronic disease management (asthma, diabetes, obesity). Parish Nursing provides needed access to care for the most indigent of Allentown, including the homeless and undocumented individuals. SchH_P06_S00_L06 Schedule H, Part VI, Line 6 The Hospital does not have surplus funds because they serve so many government insured patients-hence our designation as a DSH-Disproportionate Share Hospital. The Hospital does, however, cooperate and even collaborate with the other local hospitals on projects important to the community's health. X X X X 0 0 0 0 0 0 0 0 0 John Nespoli 0 363943 0 30791 0 0 0 6984 0 11434 0 413152 0 0 Stephen Lanshe 0 158382 0 5844 0 0 0 3471 0 9820 0 177517 0 Dr Richard Martin 202523 0 0 0 0 0 4039 0 9936 0 216498 0 0 0 Dr Maryellen Kistler-Strout 170216 0 0 0 0 0 3309 0 9743 0 183268 0 0 0 Dr Joseph Daday 164178 0 0 0 0 0 0 0 9706 0 173884 0 0 0 Dr Daniel Coller 161455 0 0 0 0 0 3354 0 9690 0 174499 0 0 0 Dr Stanley Yellin 156208 0 0 0 0 0 3033 0 9659 0 168900 0 0 0 Allentown Area Hospital Authority 231653718 018347EP5 2005-12-01 26621216 To refund a series of bonds previously issued 0 0 0 6325000 0 30800379 2665158 0 27467113 552904 0 0 0 0 0 2005 1 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 1 SchK_P03_S00_L03a Schedule K, Part III, Line 3a Sacred Heart Hospital will undertake a private use analysis in conjunction with a potential refinancing to occur within the next 12 to 18 months. Dr Farhad Sholevar Pres of Medical Staff 108644 Stipend 0 F990_P03_S00_L00 Form 990, Part III In reference to Part I Line 1 and Part III Line 1 - Sacred Heart HealthCare System is a not-for-profit entity that operates as the parent organization of Sacred Heart Hospital, Sacred Heart Ancillary Services, Inc., Sacred Heart Foundation and S H Realty Corporation. Sacred Heart Hospital, a not-for-profit entity, provides acute care services to the local community. Sacred Heart Ancillary Services, Inc. is a Pennsylvania for-profit entity providing pharmacy and infusion services to the general public. Sacred Heart Foundation is a not-for profit entity providing management services. S H Realty Corporation, a not-for-profit entity, holds real estate. Mission: Sacred Heart HealthCare System is committed to providing health care and wellness, from conception to natural death, through quality services and programs based on the Catholic ethical and religious directives. Our health care network continues its leadership in the community through collaboration and affiliation with recognized regional and national experts. We assure that the system will remain viable by providing cost effective and value-driven services. A program of continuous performance improvement enables us to respond to the needs of the community while giving meaningful employment, education and training to our employees. In fulfilling this mission, Sacred Heart HealthCare System recognizes the dignity and eternal destiny of each individual with special concern for the sick and the poor. Sacred Heart Hospital is located in an area with a high concentration of low income households. As a result, the Hospital provides care to a large number of indigent patients. In the fiscal year ended June 30, 2011, patients with Medicaid, MA Managed Care or no insurance at all made up 27% of Sacred Heart's inpatient volume and 30% of its outpatient volume. The Hospital provides charity care to patients who meet certain criteria by providing services at a reduced rate or at no charge at all. In fiscal year 2011 the Hospital wrote off $6.8 million in charges pursuant to its charity care policy. F990_P03_S00_L00a Form 990, Part III (Cont. 1) The Missionary Sisters of the Most Sacred Heart religious order in Germany arrived in Allentown on June 15, 1912 to help care for the sick and injured of the Sacred Heart Parish during a widespread diphtheria outbreak. As diphtheria raged, the Sisters gave dispensary services as well as visiting nurse services. This was the actual "start" of Sacred Heart Hospital. In 1915, the actual founding of Sacred Heart Hospital as a community institution was formalized and dedicated. Two years later, Sacred Heart Hospital was officially incorporated under Pennsylvania law. In 1920, Sacred Heart Hospital received approval to train interns and in 1922 was accredited by the American College of Surgeons. Since then, Sacred Heart Hospital has expanded its campus and its reach across our community. Our campus includes a 233-bed Catholic medical center which offers a wide range of advanced medical, surgical and outpatient hospital services. Sacred Heart HealthCare System and its Affiliates ("Sacred Heart") provides a vast range of specialty services at our 421 Chew Street location in Allentown, PA, including bariatric services, behavioral health, cancer care, cardiac services, emergency services, endovascular services, imaging services, laboratory services, lung and respiratory services, neurodiagnostic testing, neurology, orthopedics, senior services, sleep disorders, stroke care, surgical services, transitional care, women's health, pain management and wound care services. In addition to hospital services, Sacred Heart provides an extensive list of medical services outside of the hospital to better meet the needs of our patients and community populations. A network of physician practices throughout Lehigh and Northampton Counties provides complete primary medical care to the region's residents. In addition to the physician practices, Sacred Heart provides access to outpatient services including laboratory, imaging, retail pharmacy, infusion, medical equipment, respiratory and outpatient rehabilitation. Sacred Heart offers outreach to community members in need of care through its vibrant home health program reaching patients in their home environment after hospitalization or medical care. Sacred Heart's Hospice program supports many families with a goal of enabling terminally ill patients, young and old, to live life to the fullest in their homes among family and friends. Through three parish nurses, Sacred Heart impacts congregations of individuals, providing holistic nursing care to faith community members across the life span and facilitates wellness and the promotion of a healing community. Sacred Heart also functions as an educator for parish nurses throughout the Lehigh Valley through the Parish Nursing Coalition of the Greater Lehigh Valley. To help ensure children in our community receive high quality health care, Sacred Heart provides care through five school-based health centers. Our goal for the centers is to provide accessible and affordable children's health care and to offer health education to the children and their families. These centers are housed in elementary schools in the Allentown School District. In addition to school-based health centers, Sacred Heart offers two pediatric practices to meet the needs of our youngest citizens. Sacred Heart offers a dental clinic to meet increased need for adults and children in our community as well as an OB/GYN clinic to meet the needs of women in our community. Throughout Sacred Heart HealthCare System 249,945 patients were serviced from July 1, 2010 to June 30, 2011. Sacred Heart HealthCare System is proud to offer residencies and educational programs to physicians and other health care professionals. We offer three residency programs as well as a Lunch & Learn lecture series about geriatrics and various health care topics. Sacred Heart HealthCare System offers Dental Medicine, Family Medicine, and Geriatric Medicine Residency programs. Our Family Medicine Residency program also includes an Osteopathic Medicine Residency option. Sacred Heart HealthCare System is committed to providing high quality health care to all people. We have received recognition in many different areas for our excellence in health care. A sample of these awards and recognitions are below. Primary Stroke Center Certification - Sacred Heart Hospital has been granted Primary Stroke Center Certification by The Joint Commission. The Joint Commission's Certificate of Distinction for Primary Stroke Centers recognizes centers that make exceptional efforts to foster better outcomes for stroke care. Achievement of certification signals that the services Sacred Heart Hospital provides have the critical elements to achieve long-term success in improving outcomes. Transitional Care Facility - Our Transitional Care Facility (TCF) received a "Five Star" rating by the U.S. Centers for Medicare and Medicaid Services. Our TCF was one of only two facilities in Lehigh and Northampton Counties to receive this honor. MossRehab - Our acute rehabilitation unit, MossRehab, holds a three-year accreditation for its Stroke Specialty Inpatient Rehabilitation Program. MossRehab's Stroke Center is one of six Einstein programs recognized as Centers of Excellence. Certified for acute and rehabilitation care, MossRehab has specialty programs in gait and motion analysis, robotic-assisted physical therapy, and aphasia. Imaging Services - All imaging modalities at Sacred Heart Hospital and Northampton Imaging Center have been awarded a three-year term of accreditation in imaging by the American College of Radiology (ACR). Pharmacy -Sacred Heart Pharmacy was granted accreditation for Home Infusion Therapy Services from the Community Health Accreditation Program (CHAP). CHAP is the leader in community-based health care accreditation services in the U.S. and is an alternative to The Joint Commission. CHAP is an independent and non-profit accrediting body. CHAP's goal is for home care to not only prosper but gain strength in the overall health care industry. Vascular Services - Our Vascular Laboratory has been accredited by the Intersocietal Commission for the Accreditation of Vascular Labs (ICAVL) since 1996 and was granted a three-year re-accreditation. Stroke Care -Sacred Heart Hospital received the Get With The Guidelines-Stroke Award for Stroke Recognition. Get With The Guidelines-Stroke (GWTG-Stroke) helps ensure continuous quality improvement of acute stroke treatment and ischemic stroke prevention. It focuses on care team protocols to ensure that patients are treated and discharged appropriately. The program is available for implementation at acute care hospitals nationwide. Cardiovascular Rehabilitation -The Cardiovascular Rehabilitation program is accredited by the American Association of Cardiovascular and Pulmonary Rehabilitation (AACVPR) and was granted a three-year re-accreditation. Osteopathic Medicine Residency Program - Sacred Heart HealthCare System's Osteopathic Medicine Residency Program received a five-year accreditation from the American Osteopathic Association (AOA). The AOA serves as the primary certifying body for D.O.s (osteopathic physicians) and is the accrediting agency for all osteopathic medical colleges and health care facilities. F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 Sacred Heart HealthCare Systems is the sole member F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a Sacred Heart HealthCare System approves the appointment of members of the governing body. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b Sacred Heart HealthCare System approves the appointment of members of the governing body. F990_P06_S0B_L11a Form 990, Part VI, Section B, Line 11a The Organization took steps to educate management, members of the Board and members of appropriate subcommittees of the Board on the compliance requirements mandated by the Form 990. The Form 990 was reviewed by management and then submitted to the Board or a subcommittee thereof which reported its finding to the Board. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c The Organization has adopted a Conflict of Interest Policy which sets forth the Organization's conflict of interest policy and processes. Annually, all those serving the Organization in a fiduciary capacity, including Directors, Officers and Key Employees receive a copy of the Policy and annual Disclosure Statements to be completed. In accordance with the Policy, those disclosures are reviewed and considered by the Organization's CEO and, as appropriate, the Board. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 On an annual basis the Human Resources Department of the Organization provides the Board with compensation market data to review and consider with respect to all Key Employees and Officers of the Organization. The Board reviews the market data, approves any salary adjustments for the Executive population, considers both reasonableness and effectiveness of all remunerative programs and establishes the detailed performance expectations which are incorporated into the Organization's incentive plans. All of these discussions are documented through the provision of meeting minutes. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Organizational Articles of Incorporation, Corporate Bylaws, Governance Policies believed to be of interest to the Public, the Conflict of Interest Policy, and IRS Form 990 are available to the Public upon request. F990_P09_S00_L24a Form 990, Part IX, Line 24a - 24e Restructure expense relates to internal operations restructuring. There were no resulting changes to the Corporate Bylaws or other governing documents. F990_P11_S00_L05 Form 990, Part XI, Line 5 Transfers to Affiliates (3,346,565), Net Assets Released from restriction for operating purposes (1,091,795), Contributions and Grant Income 2,139,111, Change in FMV of Beneficial Interest in Perpetual Trust 288,268 Sacred Heart HealthCare System 421 W Chew Street Allentown PA 181023430 232328297 Provision of medical care PA 501(c)(3) 170(b)(1)(A)(iii) N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 Sacred Heart HealthCare System q 3346565