2011-05-09T09:28:37-04:00 2010-06-30 ERNST & YOUNG US LLP 55 MERCHANT ST SUITE 1900 C-120 HONOLULU HI 96813 990 2009-07-01 912151670 STRAUB CLINIC & HOSPITAL STRA 8085224000 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 EARL INOUYE 2011-05-09 8085312037 2009 2016-02-24 21:20:13Z RAYMOND VARA 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 293456448 false X WWW.STRAUBHEALTH.ORG X 2001 HI SEE SCHEDULE O 9 2 1730 81 477323 1212110 2276491 281289540 290026454 165500 238261 950625 915242 283617775 293456448 13000 9500 0 0 138566029 146970871 0 0 0 144097467 146416825 282676496 293397196 941279 59252 156305668 157663391 54931488 53471462 101374180 104191929 STRAUB CLINIC & HOSPITAL IS A NONPROFIT HEALTH CARE SYSTEM WHOSE MISSION IS TO PROVIDE INTEGRATED HEALTH AND MEDICAL SERVICES THAT ARE COMPREHENSIVE, CARING, CONTINUOUSLY IMPROVING AND OF THE HIGHEST QUALITY. false false 57824230 57423817 INTERNAL MEDICINE STRAUB'S BOARD-CERTIFIED INTERNISTS SPECIALIZE IN ADULTS AND ADOLESCENTS. THEY COORDINATE WITH OTHER MEDICAL AND SURGICAL SPECIALISTS, AS NEEDED, WHILE EMPHASIZING PREVENTION, EARLY DIAGNOSIS AND NON-SURGICAL TREATMENT OF MEDICAL CONDITIONS THROUGH A LONG-TERM PERSONAL RELATIONSHIP WITH PATIENTS. 23626174 26936370 CARDIOLOGY THE HEART CENTER PROVIDES COMPREHENSIVE CARDIAC CARE, EDUCATION AND REHABILITATION. SERVICES INCLUDE NON- AND MINIMALLY-INVASIVE DIAGNOSTIC EVALUATION USING ANGIOGRAMS, ECHOCARDIOGRAMS, HOLTER MONITORING, EXERCISE TOLERANCE TESTING, THALLIUM STRESS TESTING AND ELECTROPHYSIOLOGY TESTING. STRAUB WAS THE FIRST TO BRING MINIMALLY INVASIVE OPEN-HEART SURGERY AND THE CLOT-DISSOLVING DRUG "TPA" TO HAWAI'I. IT HAS RECEIVED THE HIGHEST DESIGNATION FROM THE SOCIETY FOR THORACIC SURGEONS. 20715303 19349333 ORTHOPEDIC SURGERY. THE BONE & JOINT CENTER AT STRAUB IS HAWAII'S FIRST MULTI-DISCIPLINARY CENTER TO PROVIDE COMPREHENSIVE ORTHOPEDIC, SPORTS MEDICINE AND RHEUMATOLOGY SERVICES. ITS COLLABORATIVE TEAM OF ORTHOPEDIC SURGEONS, SPORTS MEDICINE PHYSICIANS, PHYSIATRISTS, RHEUMATOLOGISTS, REHAB THERAPISTS AND ATHLETIC TRAINERS MAKES THE CENTER UNIQUE. STRAUB WAS THE FIRST TO BRING MINIMALLY INVASIVE TOTAL JOINT REPLACEMENT TO THE STATE. THE CENTER ALSO PARTICIPATES WITH LOCAL SCHOOLS TO PROVIDE PHYSICIAN SERVICES DURING ATHLETIC EVENTS. 156780673 186672016 258946380 true true false true false false false false true true false true false false false false false false false false true true false true false false false false false false false true false false false false false true true false false true 187 0 true 1730 true true true false false false false false false false false 9 2 false false false false true true true true true false true true true true true true true true true true true true X X DEBRA TUQUERO 8085357284 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 MICHAEL GIBSON ESQ 0.2 X 0 0 0 B JEANNIE HEDBERG CPA 0.2 X X 0 0 0 FAYE KURREN 0.2 X 0 0 0 THOMAS J NORDYKE MD 40.0 X X 276356 0 16148 KENNETH B ROBBINS MD 40.0 X X 0 861367 126959 KENN SARUWATARI MD 40.0 X 357958 0 26121 ROBERT SCHULZ MD 40.0 X 639241 0 24073 CHARLES A STED 3.0 X 0 2010991 283726 RAYMOND P VARA JR 15.0 X X 0 1389883 182347 DAVID OKABE 6.0 X 0 828139 109283 GAIL LERCH 6.0 X 0 623021 100175 VIRGINIA PRESSLER-FISHER MD 2.0 X 0 587408 106744 STEVEN ROBERTSON 15.0 X 0 447932 93805 CHARLES R CHING 3.0 X 0 545613 79218 EARL INOUYE 6.0 X 0 338063 33175 ARTHUR GLADSTONE 50.0 X 0 397128 43541 PATRICIA BOECKMANN RN 50.0 X 0 188159 13014 WARREN CHAIKO 5.0 X 0 287396 30756 HILTON RAETHEL 10.0 X 0 304447 14688 SUSAN MASUMOTO-NONAKA 12.0 X 0 260504 40021 PAULA DIAS 2.0 X 0 270249 25516 MAUREEN FLANNERY 50.0 X 0 36818 775 MELINDA ASHTON MD 2.0 X 0 328748 35227 ANN MK PETERS 1.0 X 0 130344 22657 KATIE SHIGEMITSU 50.0 X 0 237230 26301 DAVID FOX 10.0 X 0 111240 17249 JESSICA LEWIS 15.0 X 0 98248 11015 TERRY LONG 0.0 X 0 250732 35957 PRUDENCE KUSANO 20.0 X 0 164208 13630 KEITH MIYASHIRO 16.0 X 0 151137 23042 WESLEY KAI MD 40.0 X 1408687 0 23736 HINGSON CHUN MD 40.0 X 996273 0 23498 J ROY CHEN MD 40.0 X 897420 0 24238 ELNA MASUDA MD 40.0 X 797713 0 27088 STEPHEN CHINN MD 40.0 X 780308 0 25498 KIM HADDEN 0.0 X 0 238130 8325 6153956 11087135 1667546 328 true true false CLINICAL LABORATORIES OF HAWAI'I L PO BOX 1300 HONOLULU HI 96807 LAB SERVICES 7352413 SODEXHO INC AFFILIATES 888 S KING STREET HONOLULU HI 96813 FOOD PREP & CATERING 6448118 ARITA POULSON GENERAL CONTRACTING PO BOX 1035 PUUNENE HI 96784 CONSTRUCTION SVCS 2290948 HEARTLAND INFORMATION SERVICES PO BOX 11407 DEPT 1760 BIRMINGHAM AL 35246 TRANSCRIPTION SVCS 1121760 COMPHEALTH INC PO BOX 972651 DALLAS TX 75397 CONTRACT PHYSICIANS 919411 28 2266325 10166 2276491 NET PATIENT REVENUE 622110 165487216 165487216 MEDICARE/MEDICAID REVENUE 622110 118875294 118875294 OTHER HEALTH CARE SERVICES 622110 2381141 2381141 PREMIUM REVENUE 622110 2304410 2304410 RENTAL INCOME 531120 523573 523573 454820 454820 290026454 238261 238261 0 0 105339 105339 105339 22503 82836 0 0 0 0 PARKING REVENUE 812930 813468 813468 EQUITY INCOME OF UNCONSOLIDATED SUBSIDIARIES 900099 -3565 -3565 809903 293456448 290381537 477323 321097 9500 9500 0 0 0 1217373 1217373 0 124551987 123728710 823277 3550298 3516215 34083 10149104 9657075 492029 7502109 7444911 57199 0 34230 18733 15497 1115387 1115387 2133 2133 0 0 37925283 34054265 3871018 75799 15950 59849 46149502 45989006 160496 4004771 313356 3691415 0 11445211 11131007 314204 742358 669438 72920 0 19028 17763 1265 1894361 1894361 0 11145350 7085793 4059557 2869594 3360500 -490906 CORPORATE ALLOCATION 18377244 18377244 PROVISION FOR BAD DEBT 8365449 8365449 DEFERRED COMPENSATION 1290707 1290707 PROGRAM SERVICE EXPENDITURES 14719 14719 All other expenses 945699 442256 503443 293397196 258946380 34450817 0 -1103364 -1213555 31950782 32002901 3382447 3650003 675513 756134 152056834 65988952 86155437 86067882 4999840 11493408 10573719 23751445 20826467 156305668 157663391 22776130 24168574 32155358 29302888 54931488 53471462 X 100156014 102915970 180015 187808 1038151 1088151 101374180 104191929 156305668 157663391 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 2133 62928 2133 62928 427 12586 107 3147 249 249 498 427 1423 2135 62 62 124 107 355 533 POLITICAL EXPENDITURES SCHEDULE C, PART II-A, LINE 1D LOBBYING FEES WERE INCLUDED IN THE ANNUAL MEMBERSHIP DUES PAID TO HEALTHCARE ASSOCIATION OF HAWAI'I. AFFILIATED GROUP TOTAL ALSO INCLUDES FEES PAID TO A REGISTERED LOBBYIST WHO PROVIDES GENERAL ADVICE ON LEGISLATIVE ACTIVITIES INCLUDING INFORMATION AND INSIGHT ON LEGISLATIVE ACTIONS THAT MAY BE OF INTEREST TO HAWAI'I PACIFIC HEALTH. 14001855 783751 14785606 15671969 -1670114 14001855 1.00000 false true true 8709732 8709732 71756590 19766726 51989864 7643690 3963690 3680000 62618293 42258536 20359757 1328529 0 1328529 86067882 DUE FROM THIRD PARTY PAYORS 2044875 OTHER RECEIVABLES 448652 DUE FROM STRAUB FOUNDATION 11574 BOARD DESIGNATED INVESTMENTS 14785606 BENEFICIAL INT. IN N.A. OF FDN 1215674 LIFE INSURANCE - CSV 102384 DEPOSITS AND NON-CURRENT ASSET 2158083 INVESTMENTS IN JOINT VENTURES 59619 20826467 0 DUE TO AFFILIATES - STRAUB PHARMACY INC 4555888 DUE TO AFFILIATES - PROVIDERS INSURANCE CORPORATION 230747 DUR TO AFFILIATES - KAPI'OLANI HEALTH FOUNDATION 29533 DUE TO AFFILIATES - KAPI'OLANI MEDICAL SPECIALISTS 20463 DUE TO AFFILIATES - HPHPI 7198 DUE TO AFFILIATES - WILCOX HEALTH FOUNDATION 3778 DUE TO AFFILIATES - KAUA'I MEDICAL CLINIC 475 LONG TERM LIABILITIES - DUE TO SCHI HOLDINGS INC 16347446 LONG TERM LIABILITIES - NEGATIVE LEASE RENT LIABILITY 4034857 LONG TERM LIABILITIES - COVENANT NOT TO COMPETE 1296970 LONG TERM LIABILITIES - 457B PLAN 1505033 LONG TERM LIABILITIES - PEARLRIGDE DEFERRED LIABILITY 1056860 LONG TERM LIABILITIES - OTHER 213640 29302888 USE OF ENDOWMENT FUNDS SCHEDULE D, PART V, LINE 4 THE ORGANIZATION'S ENDOWMENTS ARE HELD & ADMINISTERED BY STRAUB FOUNDATION, A RELATED TAX EXEMPT AFFILIATE. SEE STRAUB FOUNDATION'S FORM 990 FOR A DESCRIPTION OF HOW THE ENDOWMENT FUNDS ARE USED. SCHEDULE D - FIN 48 FOOTNOTE PART X, LINE 2 FOLLOWING IS THE FIN 48 FOOTNOTE FROM THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF HAWAI'I PACIFIC HEALTH, THE FILING ORGANIZATION'S PARENT. THE TAXABLE AFFILIATES OF THE COMPANY UTILIZE THE LIABILITY METHOD OF ACCOUNTING FOR INCOME TAXES. UNDER THIS METHOD, DEFERRED INCOME TAX ASSETS AND LIABILITIES ARE DETERMINED BASED ON DIFFERENCES BETWEEN THE FINANCIAL REPORTING AND TAX BASIS OF ASSETS AND LIABILITIES, AND ARE MEASURED USING THE CURRENTLY EXACTED TAX RATES AND LAWS. VALUATION ALLOWANCES ARE USED TO REDUCE DEFERRED TAX ASSETS TO THEIR ESTIMATED NET REALIZABLE VALUES WHEN MANAGEMENT DETERMINES ULTIMATE RECOVERY OF THE DEFERRED TAX ASSETS IS NOT MORE LIKELY THAN NOT TO OCCUR. true true X true X true X true true false true true 6755 621738 621738 0.00220 46394 26838854 21616248 5222606 0.01830 53149 27460592 21616248 5844344 0.02050 645363 181493 463870 0.00160 2 835090 329499 505591 0.00180 4 6699516 5349393 1350123 0.00470 48763 48763 0.00020 6 8228732 5860385 2368347 0.00830 6 53149 35689324 27476633 8212691 0.02880 347780 347780 0.00120 347780 347780 0.00120 false 3075056 302054 68119457 72152915 -4033458 X true true STRAUB CLINIC & HOSPITAL

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CLINIC N/A COMMUNITY BENEFITS ARE INCLUDED IN A REPORT PREPARED BY HAWAI'I PACIFIC HEALTH, THE FILING ORGANIZATION'S PARENT. COST TO CHARGE RATIO AND SCHEDULE H WORKSHEET WAS USED VARIOUS CLINICS (DOCTORS ON CALL, LANAI, HILO AND KONA). THE COST ASSOCIATED WITH THESE CLINICS IS REPORTED ON PART I, LINE 7G. BAD DEBT EXPENSE OF $8,365,449 WAS SUBTRACTED FROM TOTAL EXPENSES TO COMPUTE PERCENTAGES THE ESTIMATE OF BAD DEBT COST IS BASED ON THE COST TO CHARGE RATIO AND THE ESTIMATE OF CHARITY CARE COST IS BASED ON THE COST TO CHARGE RATIO ATTRIBUTED TO MANAGEMENT'S ESTIMATE OF THE PORTION OF THE UN-INSURED PATIENT THAT COULD HAVE QUALIFIED FOR CHARITY CARE. PER THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF HAWAI'I PACIFIC HEALTH, FILING ORGANIZATION'S PARENT: THE PROVISION FOR BAD DEBTS EXPENSE IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, TAKING INTO CONSIDERATION HISTORICAL BUSINESS AND ECONOMIC TRENDS, TRENDS IN HEALTHCARE COVERAGES AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. BAD DEBT CONSISTS OF SERVICES FOR WHICH THE COMPANY ANTICIPATED BUT DID NOT RECEIVE PAYMENT BECAUSE OF PATIENTS' UNWILLINGNESS TO PAY. BAD DEBT ALSO INCLUDES SERVICES FOR MEDICALLY INDIGENT AND/OR UNINSURED PATIENTS WHO ARE UNABLE TO PAY AND WHO MIGHT HAVE QUALIFIED FOR CHARITY CARE HAD THE PATIENT SELF-IDENTIFIED THEMSELVES AS MEDICALLY INDIGENT ALONG WITH PROVIDING INFORMATION SO THAT PROPER MEANS TESTING COULD HAVE BEEN ACCOMPLISHED TO QUALIFY THE PATIENT FOR CHARITY CARE. BECAUSE TAX-EXEMPT HOSPITALS MUST PARTICIPATE IN MEDICARE AND MEDICAID AS A CONDITION OF MAINTAINING THEIR FEDERAL TAX-EXEMPT STATUS, MEDICARE UNDERPAYMENTS ARE NOT OPERATING EXPENSES THAT SHOULD BE EXPECTED IN THE ORDINARY COURSE OF BUSINESS. BECAUSE TAX-EXEMPT HOSPITALS MUST ACCEPT MEDICARE RATES THAT ARE IN SOME CASES BELOW COST, THEY SHOULD BE ABLE TO REPORT ANY NEGATIVE DIFFERENCES BETWEEN MEDICARE RATES AND COSTS ARE LOSSES INCURRED BY SERVING THE COMMUNITY. TOTAL MEDICARE ALLOWABLE COSTS WERE CALCULATED IN ACCORDANCE WITH THE FEDERAL STANDARD MEDICARE REPORTING FORM CMS-2552-96. COLLECTION PROCEDURES FOR PATIENTS WHO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE FOLLOW THE SAME POLICY AS ALL OTHER PATIENTS. IN GENERAL THE POLICY INVOLVES SENDING FOLLOW UP STATEMENTS AND DOING FOLLOW UP PHONE CALLS. PAYMENT OPTIONS ARE ALSO PRESENTED TO THE PATIENT AS PART OF THE COLLECTION PROCESS. ACCOUNTS NOT COLLECTED WITHIN THE SPECIFIED TIME PERIOD OUTLINED IN THE POLICY (HOSPITAL AND PHYSICIAN CLAIMS) ARE SENT TO A COLLECTION AGENCY FOR COLLECTIONS. THE ORGANIZATION IS CURRENTLY IN THE PROCESS OF DEVELOPING A PLAN TO ASSESS THE COMMUNITY NEEDS IN ACCORDANCE WITH IRC SECTION 501(R) WHEN A PATIENT PRESENTS FOR SERVICES AND THE PATIENT DOES NOT HAVE INSURANCE COVERAGE FOR SERVICES TO BE PROVIDED, THE PATIENT OR GUARANTOR IS ASKED TO SIGN THE "SELF PAY ACKNOWLEDGEMENT" LETTER. THIS LETTER DESCRIBES THE TERMS OF THE HAWAI'I PACIFIC HEALTH ("HPH") UNINSURED DISCOUNT PROGRAM, AND BY SIGNING THE LETTER, THE PATIENT ACKNOWLEDGES THAT HE/SHE UNDERSTANDS AVAILABLE UNINSURED PAYMENT TERMS. IN MOST UNINSURED CASES, THE PATIENT WILL BE OFFERED A HAWAI'I STATE MEDICAL ASSISTANCE APPLICATION. THIS IS THE APPLICATION FOR THE HAWAI'I STATE MEDICAID/QUEST PROGRAM. THE HOSPITAL CONTRACTS WITH SERVICE PROVIDERS WHO SPECIALIZE IN ASSISTING PATIENTS WITH THE MEDICAID/QUEST PROGRAM APPLICATION PROCESS. IF THE PATIENT'S APPLICATION FOR MEDICAID/QUEST IS DENIED OR IT IS DETERMINED THAT THE PATIENT IS INELIGIBLE TO APPLY FOR MEDICAID/QUEST, THE PATIENT MAY APPLY FOR HPH FINANCIAL ASSISTANCE EITHER IN THE HOSPITAL FINANCIAL SERVICES DEPARTMENT OR BY MAIL DIRECTLY TO THE HPH BUSINESS SERVICES OFFICE. FINANCIAL COUNSELORS ARE AVAILABLE ON SITE TO REVIEW PAYMENT OPTIONS WITH THE PATIENT OR THE GUARANTOR. THESE OPTIONS INCLUDE THE AFOREMENTIONED HPH UNINSURED DISCOUNT PROGRAM, THE HAWAI'I STATE MEDICAID/QUEST PROGRAM, THE HPH FINANCIAL ASSISTANCE PROGRAM, PAYMENT PLANS AND ANY GRANT OR FUNDING SOURCE THAT MAY BE APPROPRIATE FOR THE SERVICES PROVIDED. IN SOME CASES, HPH DETERMINES THAT A PATIENT OR GUARANTOR MAY NEED ASSISTANCE AFTER SERVICES ARE PROVIDED, AND FINANCIAL ASSISTANCE INFORMATION IS MAILED TO THE PATIENT. EDUCATION AND ASSISTANCE IS OFTEN PROVIDED VIA PHONE CONTACT IN THESE CASES. PAYMENT PLAN ARRANGEMENTS ARE HANDLED VIA PHONE CONTACT WITH THE PATIENT. STRAUB CLINIC & HOSPITAL ("STRAUB") HAS BEEN SERVING THE COMMUNITY'S HEALTH CARE NEEDS FOR MORE THAN 80 YEARS. IT IS A FULLY INTEGRATED, NONPROFIT HEALTH CARE SYSTEM WITH A 159-BED HOSPITAL IN HONOLULU, A NETWORK OF NEIGHBORHOOD CLINICS, AND A VISITING SPECIALIST PROGRAM THAT REACHES THROUGHOUT THE STATE OF HAWAI'I. STRAUB HOUSES AN ARRAY OF PHYSICIAN SPECIALISTS UNDER ONE ROOF, ENABLING THE HOSPITAL TO PROVIDE EXPERT DIAGNOSIS AND TREATMENT IN MORE THAN 32 DIFFERENT SPECIALTIES. THUS, PATIENTS WITH COMPLEX MEDICAL PROBLEMS FROM ALL ISLANDS AND COMMUNITIES OF HAWAI'I COME HERE TO QUICKLY RECEIVE FOCUSED CARE. IN FISCAL 2010, STRAUB HAD MORE THAN 110,000 IMAGING PROCEDURES, 23,003 ER VISITS, AND 6,300 INPATIENT ADMISSIONS. IT TREATS ALL PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY, THUS SERVING AS ONE OF THE COMMUNITY'S SAFETY NET PROVIDERS OF HEALTH CARE. STRAUB'S GEOGRAPHIC SERVICE AREA IS THE ENTIRE PACIFIC BASIN, SINCE MANY OF ITS MEDICAL SPECIALTIES ARE NOT PROVIDED ELSEWHERE IN THIS REGION, WHICH STRETCHES FROM THE U.S. WEST COAST TO FAR EAST ASIA. THE STRAUB BURN UNIT, FOR EXAMPLE, IS THE ONLY DEDICATED BURN TREATMENT FACILITY BETWEEN LOS ANGELES AND HONG KONG. DEMOGRAPHICS OF THE COMMUNITY IN FISCAL 2010 INCLUDE A STATE POPULATION OF 1.4 MILLION, WITH 10.7 PERCENT OF RESIDENTS HAVING INCOMES BELOW THE FPG, 7.6 PERCENT OF STRAUB PATIENTS ARE UNINSURED AND 15.6 PERCENT ARE MEDICAID RECIPIENTS. THERE ARE 10 OTHER HOSPITALS IN THE STATE, AND FEDERALLY-DESIGNATED MEDICALLY UNDERSERVED AREAS AND POPULATIONS ARE PRESENT. STRAUB CLINIC & HOSPITAL("STRAUB") IS COMMITTED TO ATTRACTING AND RETAINING TOP-QUALITY PHYSICIANS. IN HAWAI'I, THE THREAT OF LOSING PHYSICIANS TO THE U.S. MAINLAND IS CONSTANT. ACCORDING TO THE HAWAI'I MEDICAL JOURNAL AND HAWAI'I PHYSICIAN WORKFORCE ASSESSMENT PROJECT, BY 2020, HAWAI'I WILL HAVE 1,500 FEWER PHYSICIANS THAN ARE NEEDED TO MEET THE COMMUNITY'S HEALTH CARE NEEDS. SHORTAGES WILL BE PARTICULARLY SEVERE IN PRIMARY CARE, CARDIOLOGY, GASTROENTEROLOGY, ORTHOPEDICS, GENERAL SURGERY, AND OTHER SPECIALTIES. IN FISCAL 2010, STRAUB SPENT $347,780 TO ATTRACT PHYSICIANS TO HAWAI'I. THIS INCLUDED STAFF EXPENSES: THE SALARY AND BENEFITS OF A FULL-TIME RECRUITER, A PHYSICIAN SERVICES MANAGER; THE PURCHASE OF A LAPTOP COMPUTER AND SOFTWARE, THE "PRACTICE MATCH SERVICES" DATABASE FOR LOCATING PHYSICIANS AS POTENTIAL CANDIDATES; CONSULTING FEES FOR IN-STATE PHYSICIANS WHO RECRUIT MAINLAND PHYSICIANS; AND MISCELLANEOUS OFFICE AND TRAVEL EXPENSES. IN ADDITION, STRAUB PAID THE TRAVEL EXPENSES OF PHYSICIAN CANDIDATES WHO INTERVIEWED AT STRAUB, INCLUDING AIRFARE, HOTEL, CAR RENTAL, MEALS AND GENERAL RECRUITMENT ACTIVITIES. STRAUB ALSO PAID THE MOVING EXPENSES OF PHYSICIANS WHO COMMITTED TO PRACTICING AT THE HOSPITAL, INCLUDING AIRFARE, SHORT-TERM HOUSING, CAR RENTAL, FOOD, RELOCATION SERVICES FOR MOVING/SHIPPING PERSONAL ITEMS, AND RELATED EXPENSES OF ANY FAMILY MEMBERS. BY COVERING THESE COSTS, STRAUB IS INVESTING IN HAWAII'S FUTURE, AND ENSURING THAT THE COMMUNITY'S HEALTH CARE NEEDS WILL BE MET. STRAUB CLINIC & HOSPITAL ("STRAUB") OPERATES SEVERAL HIGHLY REGARDED SPECIALTY CARE UNITS, INCLUDING THE HEART CENTER AND BONE AND JOINT CENTER. THE BURN UNIT IS THE ONLY MULTIDISCIPLINARY BURN TREATMENT CENTER IN THE PACIFIC REGION, PROVIDING BURN VICTIMS WITH IMMEDIATE AND COMPREHENSIVE CARE, CLOSE TO HOME. STRAUB MAINTAINS AN OPEN MEDICAL STAFF IN 19 SPECIALTIES AND AN OPEN/MANAGED MEDICAL STAFF IN 14 SPECIALTIES. THIS ARRANGEMENT, WHICH GRANTS HOSPITAL PRIVILEGES TO NONAFFILITATED PHYSICIAN SPECIALISTS, ALSO BROADENS STRAUB'S ABILITY TO OFFER HIGH-QUALITY, SPECIALIZED CARE TO THE COMMUNITY. STRAUB IS GOVERNED BY A COMMUNITY BOARD COMPRISED OF PHYSICIANS, COMMUNITY MEMBERS AND KEY LEADERSHIP WITHIN HAWAI'I PACIFIC HEALTH. THESE VOLUNTEER, UNPAID MEMBERS ENSURE THAT STRAUB FULFILLS ITS MISSION-DRIVEN GOALS. AS AN AFFILIATE OF THE NON-PROFIT HAWAI'I PACIFIC HEALTH NETWORK, STRAUB REINVESTS ALL SURPLUS RESOURCES BACK INTO PATIENT CARE AND TO SUBSIDIZE THOSE WHO CANNOT PAY. IN ADDITION, STRAUB PROVIDES CHARITY CARE, HEALTH EDUCATION AND PREVENTATIVE PROGRAMS TO THE COMMUNITY. IN FISCAL 2010, ITS MEDICAL SPECIALISTS DELIVERED FREE PUBLIC HEALTH EDUCATION PROGRAMS AND EVENTS THAT HELPED THOUSANDS OF INDIVIDUALS LEARN THE LATEST STRATEGIES FOR PREVENTING OR MANAGING HEART ATTACKS, CANCER, ARTHRITIS, ASTHMA, ALLERGIES, STRESS, OSTEOPOROSIS, OBESITY AND DRUG ABUSE. THESE EVENTS INCLUDED KIDS FEST, LIVING HEALTHY IN PARADISE, WOMEN'S WAY TO HEALTH, CANCER CARE: CURRENT ISSUES, BREATHE WITH EASE, VALENTINE IN PARADISE AND GETTING A GRIP ON ARTHRITIS. THE ANNUAL WOMEN'S 10K RUN, ONE OF THE MORE VISIBLE SPORTS EVENTS IN THE COMMUNITY, CELEBRATED ITS 33ND CONSECUTIVE YEAR. THE HAWAI'I PACIFIC HEALTH CARE SYSTEM INCLUDES FOUR AFFILIATED HOSPITALS, 49 OUTPATIENT CLINICS AND SERVICE SITES, AND MORE THAN 1,300 PHYSICIANS. THE FOUR HOSPITALS PROVIDE ACUTE AND SPECIALTY CARE WITH 553 BEDS AND 76 BASSINETS, AND HANDLE MORE THAN 34,000 ADMISSIONS ANNUALLY. HAWAI'I PACIFIC HEALTH, THE STATE'S LARGEST HEALTH CARE PROVIDER, IS COMMITTED TO PROVIDING THE HIGHEST QUALITY AND MOST ACCESSIBLE MEDICAL CARE AND SERVICES TO THE PEOPLE OF HAWAI'I AND THE PACIFIC REGION. true X FORM 990, SCHEDULE I DESCRIPTION OF ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF GRANTS THE HAWAI'I PACIFIC HEALTH DONATIONS COMMITTEE REVIEWS AND APPROVES DONATIONS TO 501(C)(3) ORGANIZATIONS ON AN ANNUAL BASIS. NO FURTHER MONITORING IS NECESSARY SINCE DONATIONS ARE ONLY MADE TO 501(C)(3) ORGANIZATIONS. true true false false false false false true false THOMAS J NORDYKE MD 255135 0 16485 0 4736 0 2450 0 13698 0 292504 0 4736 0 KENNETH B ROBBINS MD 0 407086 0 83109 0 371172 0 109190 0 17769 0 988326 0 301378 KENN SARUWATARI MD 276143 0 25331 0 56484 0 9800 0 16321 0 384079 0 41876 0 ROBERT SCHULZ MD 619093 0 16139 0 4009 0 9800 0 14273 0 663314 0 0 0 CHARLES A STED 0 753034 0 189314 0 1068643 0 271408 0 12318 0 2294717 0 927278 RAYMOND P VARA JR 0 601040 0 130473 0 658370 0 166024 0 16323 0 1572230 0 558878 DAVID OKABE 0 410893 0 83331 0 333915 0 94274 0 15009 0 937422 0 263953 GAIL LERCH 0 320190 0 69507 0 233324 0 82010 0 18165 0 723196 0 185756 VIRGINIA PRESSLER-FISHER MD 0 322660 0 63901 0 200847 0 76480 0 30264 0 694152 0 145627 STEVEN ROBERTSON 0 306299 0 66491 0 75142 0 66642 0 27163 0 541737 0 25048 CHARLES R CHING 0 309809 0 61739 0 174065 0 68962 0 10256 0 624831 0 129699 EARL INOUYE 0 229057 0 28589 0 80417 0 30185 0 2990 0 371238 0 52775 ARTHUR GLADSTONE 0 279978 0 43298 0 73852 0 21014 0 22527 0 440669 0 46593 PATRICIA BOECKMANN RN 0 169626 0 18533 0 0 0 0 0 13014 0 201173 0 0 WARREN CHAIKO 0 210889 0 26472 0 50035 0 11653 0 19103 0 318152 0 26874 HILTON RAETHEL 0 203431 0 24396 0 76620 0 11637 0 3051 0 319135 0 75187 SUSAN MASUMOTO-NONAKA 0 197875 0 24444 0 38185 0 11637 0 28384 0 300525 0 23460 PAULA DIAS 0 191240 0 24224 0 54785 0 11637 0 13879 0 295765 0 35942 MELINDA ASHTON MD 0 262570 0 29981 0 36197 0 14152 0 21075 0 363975 0 0 ANN MK PETERS 0 121730 0 8614 0 0 0 6334 0 16323 0 153001 0 0 KATIE SHIGEMITSU 0 172800 0 18787 0 45643 0 11166 0 15135 0 263531 0 32196 TERRY LONG 0 162112 0 26010 0 62610 0 28137 0 7820 0 286689 0 46971 PRUDENCE KUSANO 0 164133 0 0 0 75 0 2876 0 10754 0 177838 0 0 KIM HADDEN 0 64600 0 0 0 173530 0 2624 0 5701 0 246455 0 21841 KEITH MIYASHIRO 0 141278 0 9859 0 0 0 7299 0 15743 0 174179 0 0 WESLEY KAI MD 786008 0 5100 0 617579 0 9800 0 13936 0 1432423 0 613549 0 HINGSON CHUN MD 815369 0 96446 0 84458 0 9800 0 13698 0 1019771 0 84458 0 J ROY CHEN MD 647736 0 77446 0 172238 0 9800 0 14438 0 921658 0 11210 0 ELNA MASUDA MD 570345 0 9215 0 218153 0 9800 0 17288 0 824801 0 57631 0 STEPHEN CHINN MD 533457 0 9215 0 237636 0 9800 0 15698 0 805806 0 0 0 QUESTIONS REGARDING COMPENSATION SCHEDULE J, PART I, LINE 3 THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS PAID BY ITS TAX EXEMPT PARENT, HAWAI'I PACIFIC HEALTH ("HPH"), AND IS DISCLOSED AS A PERSON PAID BY A RELATED ORGANIZATION. SEE SCHEDULE O FOR 990 PART VI, LINE 15A FOR THE PROCESS USED BY HPH TO DETERMINE COMPENSATION. SEVERANCE PAYMENT SCHEDULE J, PART I, LINE 4A $140,000 TO KIM HADDEN BY HAWAI'I PACIFIC HEALTH, FILING ORGANIZATION'S PARENT. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B AMOUNTS PAID OUT DURING THE YEAR BY THE ORGANIZATION: J ROY CHEN, M.D. $ 11,210 STEPHEN CHINN, M.D. $ 13,841 HINGSON CHUN, M.D. $ 84,458 WESLEY KAI, M.D. $613,549 ELNA MASUDA, M.D. $ 57,631 THOMAS J. NORDYKE, M.D. $ 4,736 KENN SARUWATARI, M.D. $ 41,876 AMOUNTS PAID OUT DURING THE YEAR BY RELATED ORGANIZATION: WARREN CHAIKO $ 26,874 CHARLES R. CHING $129,699 PAULA DIAS $ 35,942 ARTHUR GLADSTONE $ 46,593 KIM HADDEN $ 21,841 EARL INOUYE $ 52,775 GAIL LERCH $185,756 TERRY LONG $ 46,971 SUSAN MASUMOTO-NONAKA $ 23,460 DAVID OKABE $263,953 VIRGINIA PRESSLER-FISHER, M.D. $145,627 STEVEN ROBERTSON $ 25,048 HILTON RAETHEL $ 75,187 KENNETH B. ROBBINS, M.D. $301,378 KATIE SHIGEMITSU $ 32,196 CHARLES A. STED $927,278 RAYMOND P. VARA, JR. $558,878 IN RESPONSE TO NEW REGULATORY REQUIREMENTS ASSOCIATED WITH INTERNAL REVENUE CODE SECTIONS 409A AND 457(F). HPH PROVIDED AN OPTION TO ITS OFFICERS ON PAYING OUT ACCUMULATED BALANCES ON ITS VARIOUS NON-QUALIFIED DEFERRED COMPENSATION ARRANGEMENTS IN 2009 OR TO DEFER ITS DISTRIBUTION SUBJECT TO CLIFF VESTING IN ACCORDANCE WITH THE IRS APPROVED ONE TIME 409A TRANSITION RULE. CERTAIN OFFICERS SELECTED THE PAY OUT OPTION ON THE ACCUMULATED BALANCE ASSOCIATED WITH THE CAPITAL ACCUMULATION PLAN AND ITS RESTORATION PLAN DURING 2009. THE AMOUNTS PAID OUT HAVE BEEN INCLUDED IN THE W-2 OF THOSE PARTICIPANTS ELECTING THE PAYOUT OPTION. THE RESTORATION PLAN WAS DESIGNED TO RESTORE BENEFITS THAT ARE LOST DUE TO LIMITS IMPOSED BY SECTIONS 401 AND 415 OF THE INTERNAL REVENUE CODE ON COMPENSATION CONSIDERED UNDER SUCH PLANS. THE CAPITAL ACCUMULATION ACCOUNT (CAA) IS A SECTION 457(F) PROGRAM THAT WAS PREVIOUSLY AFFORDED TO EXECUTIVE OFFICERS OF THE ORGANIZATION TO PROVIDE BENEFITS ON A TAX DEFERRED BASIS. NON-FIXED PAYMENTS TO PERSON LISTED ON PART VII, SECTION A, LINE 1A SCHEDULE J, PART I, LINE 7 NON-FIXED PAYMENTS ARE MADE TO EXECUTIVES BASED ON SYSTEM GOALS THAT ARE NOT BASED ON A PERCENTAGE OF NET EARNINGS. NON-FIXED PAYMENTS MADE TO PHYSICIANS ARE BASED ON CLINICAL PERFORMANCE MEASURES. FIRST HAWAIIAN BANK DIR. IS DIR. OF SCH 105842 BANK TRANSACTION FEES false PACIFIC RADIOPHARMACY DIR. IS OFFICER OF SCH 312803 PURCHASE OF MEDICAL SUPPLIES false UNITED LAUNDRY DIR. IS DIR. OF SCH 809364 LAUNDRY SERVICES false BOSTON SCIENTIFIC DIR. IS OFFICER OF SCH 710818 PURCHASE OF MEDICAL SUPPLIES false MISSION & PROGRAM SERVICE ACCOMPLISHMENTS ORGANIZATION'S MISSION FORM 990, PART I, LINE 1 STRAUB CLINIC & HOSPITAL IS A NONPROFIT HEALTH CARE SYSTEM WHOSE MISSION IS TO PROVIDE INTEGRATED HEALTH AND MEDICAL SERVICES THAT ARE COMPREHENSIVE, CARING, CONTINUOUSLY IMPROVING AND OF THE HIGHEST QUALITY. DESCRIBE PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICES STRAUB CLINIC & HOSPITAL ("STRAUB") WAS FOUNDED IN 1921 AND HAS BEEN MEETING THE HEALTH CARE NEEDS OF HAWAI'I FOR MORE THAN 80 YEARS. AN AFFILIATE OF HAWAI'I PACIFIC HEALTH, THE STATE'S LARGEST HEALTH CARE PROVIDER, STRAUB IS A FULLY INTEGRATED HEALTH CARE SYSTEM WITH NEIGHBORHOOD CLINICS AND VISITING SPECIALIST PROGRAMS THROUGHOUT HAWAI'I. STRAUB HAS CONSISTENTLY BROUGHT NEW TECHNOLOGIES AND INNOVATIVE MEDICAL PRACTICES TO HAWAI'I, SUCH AS MINIMALLY INVASIVE OPEN-HEART SURGERY AND TOTAL JOINT REPLACEMENT, WHICH SUBSEQUENTLY HAVE BEEN ADOPTED BY OTHER HEALTH CARE PROVIDERS. IT HAS 159 BEDS AND EMPLOYS 1,337 STAFF AND NEARLY 200 EMPLOYED OR CONTRACTED PHYSICIANS. IN ADDITION, 81 PEOPLE VOLUNTEERED THERE. DURING FISCAL 2010, STRAUB ADMITTED 6,357 PATIENTS FOR A TOTAL OF 36,534 PATIENT DAYS. THE EMERGENCY ROOM TREATED 23,003 PATIENTS. THERE WERE 5,108 SURGERY CASES AND 746,971 CLINIC ENCOUNTERS. STRAUB HOUSES AN ARRAY OF PHYSICIAN SPECIALISTS UNDER ONE ROOF, ALLOWING PATIENTS WITH COMPLEX MEDICAL PROBLEMS TO QUICKLY RECEIVE FOCUSED CARE. IT PROVIDES EXPERT DIAGNOSIS AND TREATMENT IN MORE THAN 32 DIFFERENT SPECIALTIES, INCLUDING BONE AND JOINT, HEART, CANCER, ENDOCRINOLOGY/DIABETES, FAMILY MEDICINE, GASTROENTEROLOGY, GERIATRICS, INTERNAL MEDICINE, VASCULAR, UROLOGY, ALLERGY, ANESTHESIOLOGY, DERMATOLOGY, EMERGENCY, HOSPITALISTS, PATHOLOGY, NEUROLOGY, NUCLEAR MEDICINE, OBSTETRICS/GYNECOLOGY, OCCUPATIONAL HEALTH, OPHTHALMOLOGY, OTOLARYNGOLOGY, PLASTIC SURGERY, PSYCHIATRY AND PSYCHOLOGY, RADIOLOGY, SPORTS MEDICINE AND RHEUMATOLOGY. STRAUB OPERATES SEVERAL HIGHLY REGARDED SPECIALTY CARE UNITS. THE BURN UNIT IS THE ONLY MULTI-DISCIPLINARY BURN TREATMENT CENTER IN THE STATE. THE HEART CENTER PROVIDES COMPREHENSIVE CARDIAC SERVICES, FROM EDUCATION TO DIAGNOSIS AND TREATMENT TO REHABILITATION. IT HAS RECEIVED A THREE-STAR RATING, THE HIGHEST DESIGNATION, FROM THE NATIONAL SOCIETY FOR THORACIC SURGEONS. THE BONE AND JOINT CENTER OFFERS MINIMALLY INVASIVE HIP AND JOINT REPLACEMENT. STRAUB PROVIDES CHARITY CARE, HEALTH EDUCATION AND PREVENTATIVE PROGRAMS TO THE COMMUNITY. IN FISCAL 2010, ITS MEDICAL SPECIALISTS DELIVERED FREE PUBLIC HEALTH EDUCATION PROGRAMS THAT HELPED THOUSANDS OF INDIVIDUALS LEARN THE LATEST STRATEGIES FOR PREVENTING OR MANAGING HEART ATTACKS, CANCER, ARTHRITIS, ASTHMA, ALLERGIES, STRESS, OSTEOPOROSIS, OBESITY AND DRUG ABUSE. THEY INCLUDED KIDS FEST, LIVING HEALTHY IN PARADISE, WOMEN'S WAY TO HEALTH, CANCER CARE: CURRENT ISSUES, BREATHE WITH EASE, VALENTINE IN PARADISE AND GETTING A GRIP ON ARTHRITIS. THE ANNUAL WOMEN'S 10K RUN, ONE OF THE MORE VISIBLE SPORTS EVENTS IN THE COMMUNITY, CELEBRATED ITS 33RD CONSECUTIVE YEAR. STRAUB TREATS ALL PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY, THUS SERVING AS ONE OF THE COMMUNITY'S SAFETY NET PROVIDERS OF HEALTH CARE. IT HAS AN ESTABLISHED CHARITY CARE POLICY THAT SETS GUIDELINES ON WHICH PATIENTS QUALIFY FOR FREE OR DISCOUNTED CARE. IN FISCAL 2010, STRAUB CLINIC & HOSPITAL PROVIDED MORE THAN $8.2 MILLION WORTH OF CARE TO PATIENTS WHO WERE UNINSURED OR UNABLE TO PAY FOR THEIR CARE, AS WELL AS IN OTHER COMMUNITY BENEFITS. TAX EXEMPT BONDS FORM 990, PART IV, LINE 24A STRAUB CLINIC & HOSPITAL IS A MEMBER OF THE HAWAI'I PACIFIC HEALTH OBLIGATED GROUP, WHICH HAS ISSUED VARIOUS BOND ISSUES AND IS REPORTED ON THE HAWAI'I PACIFIC HEALTH FORM 990. MEMBERS AND RIGHTS FORM 990, PART VI, LINE 6 HAWAI'I PACIFIC HEALTH IS THE SOLE MEMBER WHO HAS THE RIGHT TO PARTICIPATE IN THE ORGANIZATION'S GOVERNANCE WITH THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY AND/OR APPROVE SIGNIFICANT DECISIONS OF THE GOVERNING BOARD. DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, LINE 7A HAWAI'I PACIFIC HEALTH IS THE SOLE MEMBER, AND HAS THE POWER TO APPROVE THE ELECTION OF MEMBERS OF THE GOVERNING BODY. HAWAI'I PACIFIC HEALTH, AS MEMBER, ALSO HAS THE POWER TO ELECT ONE OR MORE EX OFFICIO VOTING MEMBERS OF THE GOVERNING BODY. DESCRIBE CLASSES OF PERSONS, DECISIONS REQUIRING APPR & TYPE OF VOTING RIGHTS FORM 990, PART VI, LINE 7B HAWAI'I PACIFIC HEALTH, AS MEMBER, HAS THE FOLLOWING POWERS RESERVED TO APPROVE THE FOLLOWING: (I) NOMINATE CANDIDATES TO THE BOARD FOR THE FOLLOWING POSITIONS: THE TREASURER, SECRETARY, EXECUTIVE VICE-PRESIDENT/CHIEF FINANCIAL OFFICER, EXECUTIVE VICE PRESIDENTS OTHER THAN THE EXECUTIVE VICE-PRESIDENT/CHIEF EXECUTIVE OFFICER (THE "EVP/CEO") AND THE; EXECUTIVE VICE-PRESIDENT/CHIEF MEDICAL OFFICER (THE "EVP/CMO") OF THE CORPORATION, SENIOR VICE-PRESIDENTS, ASSISTANT SECRETARIES, AND ALL VICE-PRESIDENTS EXCEPT THE CLINIC AND HOSPITAL UNIT VICE-PRESIDENTS, AS SUCH TERM IS DEFINED IN THESE BYLAWS; (II) REMOVE ANY DIRECTOR FROM THE BOARD; PROVIDED, HOWEVER, THAT THE BOARD MAY REMOVE ANY DIRECTOR FROM THE BOARD IF APPROVED BY THE MEMBER BOARD; (III) DELEGATE MANAGEMENT AUTHORITIES FROM THE BOARD TO OFFICERS OR COMMITTEES OF THE CORPORATION IN ACCORDANCE WITH A DELEGATED AUTHORITIES MATRIX ADOPTED BY THE MEMBER BOARD; (IV) AMEND THE BYLAWS; (V) THE CORPORATION'S PARTICIPATION IN ALL LONG TERM FINANCING TRANSACTIONS WHICH ARE IN EXCESS OF ONE (1) YEAR AND/OR FOR ONE MILLION DOLLARS ($1,000,000) OR MORE; (VI) ACQUIRE ASSETS WORTH OVER ONE MILLION DOLLARS ($1,000,000); (VII) ACQUIRE SHARES IN ANOTHER CORPORATION; (VIII) SELECT BANKS, TRUST COMPANIES, OR OTHER DEPOSITORIES TO WHICH THE CORPORATION'S FUNDS SHALL BE DEPOSITED; (IX) DIRECT, MANAGE AND CONTROL THE CUSTODY, ADVISORY SERVICE, AND ASSET MANAGEMENT OF THE FINANCIAL ASSETS OF THE CORPORATION; (X) DETERMINE AND EFFECT INTER-CORPORATE TRANSFERS BY AND BETWEEN THE CORPORATION AND ANY AFFILIATE; (XI) DEVELOP AND IMPLEMENT THE GENERAL POLICIES REGARDING THE CORPORATION'S PHYSICIAN AND EXECUTIVE COMPENSATION AND BENEFIT PLANS; (XII) FORM A NEW CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, OR OTHER ORGANIZATION THAT IS OWNED SOLELY BY THE CORPORATION; (XIII) FORM A JOINT VENTURE OR OTHER BUSINESS RELATIONSHIP (OTHER THAN THE ORDINARY COURSE OF BUSINESS CONTRACTS) BETWEEN THE CORPORATION AND ANY PERSON OR ENTITY; (XIV) CLOSE THE ACUTE CARE HOSPITAL OR CLINIC FACILITIES OWNED AND OPERATED BY THE CORPORATION; (XV) RELOCATE THE ACUTE CARE HOSPITAL OR CLINIC FACILITIES OWNED AND OPERATED BY THE CORPORATION; (XVI) CONVERT THE ACUTE CARE HOSPITAL OWNED AND OPERATED BY THE CORPORATION INTO A NON-ACUTE CARE FACILITY; (XVII) AFTER CONSULTING WITH THE BOARD, REMOVE THE TREASURER, SECRETARY, EXECUTIVE VICE-PRESIDENT/CHIEF FINANCIAL OFFICER, EXECUTIVE VICE-PRESIDENTS OTHER THAN THE EVP/CEO AND THE EVP/CMO, SENIOR VICE-PRESIDENTS, ASSISTANT SECRETARIES, AND/OR ALL VICE-PRESIDENTS EXCEPT THE CLINIC AND HOSPITAL UNIT VICE-PRESIDENTS; AND (XVIII) DEVELOP AND PROMULGATE THE CORPORATE GOALS AND THE LONG-RANGE AND STRATEGIC PLAN OF THE CORPORATION. THE FOLLOWING ACTIONS REQUIRE APPROVAL FROM THE MEMBER BOARD: (I) ADD ANY DIRECTOR TO THE BOARD; (II) AMEND THE ARTICLES OF INCORPORATION; (III) SELL, LEASE, EXCHANGE OR DISPOSE OF FIFTY PERCENT (50%) OR MORE OF THE AMOUNT OF PROPERTY OR ASSETS HELD BY THE ORGANIZATION, AS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, TO ANY ENTITY THAT IS NOT AN AFFILIATE, EXCEPT THAT IF THE GFS HEALTH PHYSICIAN ADVISORY GROUP (THE "PAG") ELECTS TO INITIATE A SEPARATION ACTION PURSUANT TO ARTICLE XIII OF THE AFFILIATION AGREEMENT BY AND AMONG THE MEMBER, THE ORGANIZATION, AND STRAUB CLINIC AND HOSPITAL, INC., DATED AS OF DECEMBER 23, 2001, THE ORGANIZATION SHALL BE ALLOWED, BY A MAJORITY VOTE OF A QUORUM OF THE BOARD, TO SELL, LEASE, EXCHANGE OR DISPOSE OF FIFTY PERCENT (50%) OR MORE OF THE AMOUNT OF THE PROPERTY OR ASSETS HELD BY THE ORGANIZATION, AS REPORTED UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND SHALL NOT BE REQUIRED TO RECEIVE DIRECTION OR APPROVAL TO DO SO FROM THE MEMBER; (IV) IMPLEMENT THE ANNUAL CAPITAL, OPERATING, AND CASH FLOW BUDGETS; (V) IMPLEMENT INDIVIDUAL PHYSICIAN COMPENSATION ARRANGEMENTS FOR EACH PHYSICIAN OPERATING UNIT IN THE ORGANIZATION; (VI) ENTER INTO ANY UNBUDGETED CONTRACTS ON BEHALF OF THE ORGANIZATION WHICH REQUIRE ANNUAL PAYMENTS ON BEHALF OF THE ORGANIZATION EXCEEDING ONE MILLION DOLLARS ($1,000,000) IN VALUE; (VII) ISSUE THE ORGANIZATION'S MEMBERSHIP TO ANYONE OTHER THAN THE MEMBER; (VIII) MERGE THE ORGANIZATION WITH ANY ENTITY; (IX) DISSOLVE THE ORGANIZATION; AND (X) DEVELOP A NEW LINE OF BUSINESS OR A NEW SERVICE. REVIEW OF THE 990S BY THE ORGANIZATION'S GOVERNING BODY FORM 990, PART VI, LINE 11A VARIOUS SCHEDULES OF THE 990S ARE PREPARED PRIMARILY BY STAFF WITHIN THE ACCOUNTING AREA OF THE ORGANIZATION WORKING WITH VARIOUS OTHER AREAS OF THE ORGANIZATION SUCH AS MANAGEMENT OF THE OPERATING UNITS, HR, LEGAL, ETC. DISCLOSURE NARRATIVES ARE WRITTEN AND COMPILED INTERNALLY BASED ON INPUT AND DISCUSSION WITH FINANCIAL ANALYSTS AND THE CHIEF OPERATING OFFICER / EXECUTIVE DIRECTOR OF THE REPORTING ENTITY. THE CHIEF OPERATING OFFICER / EXECUTIVE DIRECTOR OF EACH REPORTING ENTITY REVIEWS AND APPROVES THE DISCLOSURE NARRATIVES WHICH DESCRIBES THE MISSION/PURPOSE AND PROGRAM ACCOMPLISHMENTS OF THEIR ORGANIZATION. SENIOR MANAGEMENT OF THE HEALTH CARE SYSTEM REVIEWS THE 990S OF EACH FILING ORGANIZATION WITHIN THE HEALTH CARE SYSTEM. ONCE SENIOR MANAGEMENT HAS COMPLETED ITS REVIEW, THE 990S ARE THEN PROVIDED TO THE GOVERNANCE AND NOMINATING COMMITTEE OF THE HEALTH CARE SYSTEM'S BOARD OF DIRECTORS FOR THEIR REVIEW. THE GOVERNANCE AND NOMINATING COMMITTEE OF THE PARENT ENTITY'S (HAWAI'I PACIFIC HEALTH "HPH") BOARD PROVIDES OVERSIGHT FOR THE 990 REPORTING AND REVIEWS THE 990S FOR EACH ENTITY PRIOR TO FILING. IN ADDITION, THE 990S FOR EACH ENTITY IS MADE AVAILABLE TO THE HPH BOARD OF DIRECTORS THROUGH A BOARD MEMBER PORTAL FOR REVIEW PRIOR TO THE FILING OF THE 990. COPIES OF THE 990S ARE MADE AVAILABLE TO THE BOARD MEMBERS OF EACH SUBSIDIARY UNIT OF HPH AND IS PHYSICALLY LOCATED AT EACH FACILITY'S SITE FOR THE BOARD MEMBER TO REVIEW PRIOR TO FILING. THE 990S WILL BE POSTED TO HPH'S WEBSITE FOR PUBLIC ACCESS AFTER THE FILING OF THE RETURN WITH THE IRS. MONITORING & ENFORCING CONFLICT OF INTEREST POLICY FORM 990, PART VI, LINE 12C ANNUALLY, EACH DIRECTOR, OFFICER, KEY EMPLOYEE AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON: -RECEIVED A COPY OF THE CONFLICT OF INTEREST ("COI") POLICY; -HAS READ AND UNDERSTANDS THE POLICY; -AGREES TO COMPLY WITH THE POLICY; AND -UNDERSTANDS THAT THE ORGANIZATION IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION, THE ORGANIZATION MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. THE IN-HOUSE LEGAL DEPARTMENT DISTRIBUTES THE STATEMENT REQUEST AND REVIEWS THE COI STATEMENTS RETURNED. IDENTIFIED CONFLICTS OF INTEREST ARE PRESENTED TO THE BOARD FOR REVIEW, DELIBERATION AND CONFIRMATION/REFUTATION THAT A CONFLICT OF INTEREST EXISTS. IF A CONFLICT OF INTEREST HAS BEEN FOUND, THE INDIVIDUAL MAY ADDRESS THE BOARD AND EXPLAIN THE TRANSACTION OR ARRANGEMENT CAUSING THE CONFLICT. AFTER THE PRESENTATION, THE INDIVIDUAL IS EXCUSED FROM THE MEETING AND SHALL NOT PARTICIPATE WITH ANY DISCUSSION OR VOTE ON MATTERS PERTAINING TO THE TRANSACTION OR ARRANGEMENT. IN MEETINGS WHERE APPLICATION OF THE COI POLICY OCCURS, THE MEETING MINUTES INCLUDE NATURE OF THE FINANCIAL INTEREST/CONFLICT, NAME(S) OF THE PERSON(S) WITH THE POTENTIAL OR ACTUAL CONFLICT, ANY ACTION TAKEN TO ASSIST IN THE DETERMINATION OF WHETHER A CONFLICT EXISTED, INCLUDING ANY DISCUSSION OF ALTERNATIVE ARRANGEMENTS, THE BOARD'S DECISION9S) REGARDING THE CONFLICT AND NAMES OF PERSON PRESENT IN THE DISCUSSION AND VOTES RELATING TO THE TRANSACTION OR ARRANGEMENT. OFFICES AND POSITIONS FOR WHICH PROCESS WAS USED, AND YEAR PROCESS WAS LAST COMPLETED FORM 990, PART VI, LINE 15A & 15B COMPENSATION FOR HPH EXECUTIVES (VICE PRESIDENT AND ABOVE) IS SET BY THE HAWAI'I PACIFIC HEALTH ("HPH") COMPENSATION COMMITTEE, WHICH IS COMPOSED SOLELY OF INDEPENDENT, COMMUNITY-BASED MEMBERS OF THE HPH BOARD OF DIRECTORS. ON AN ANNUAL BASIS THE HPH BOARD CHAIRPERSON (WHO IS INDEPENDENT) SELECTS A NEUTRAL THIRD PARTY EXECUTIVE COMPENSATION CONSULTANT TO REVIEW THE EXECUTIVES' COMPENSATION AND BENEFITS. THE CONSULTANT PROVIDES A WRITTEN REPORT TO THE COMPENSATION COMMITTEE AT ITS ANNUAL MEETING. INCLUDED IN THE REPORT IS MARKET BASED DATA FROM LIKE ORGANIZATIONS. THE COMPENSATION COMMITTEE MAKES FINAL DECISIONS REGARDING COMPENSATION AND BENEFITS AT THE MEETING AFTER REVIEW AND DISCUSSION OF THE CONSULTANT'S REPORT, AND SUCH DECISIONS ARE DOCUMENTED IN THE COMPENSATION COMMITTEE MEETING MINUTES. COMMUNITY BASED DIRECTORS OF THE ORGANIZATION ARE NOT COMPENSATED. CERTAIN EMPLOYED PHYSICIANS MAY BE OFFICERS OR AN IDENTIFIED KEY EMPLOYEE OF THE REPORTING OR RELATED ORGANIZATION. PHYSICIAN COMPENSATION IS ALSO HANDLED IN THE SAME MANNER AS EXECUTIVE COMPENSATION, WITH THE HPH COMPENSATION COMMITTEE RECEIVING A REPORT FROM A NEUTRAL CONSULTANT AND FOLLOWING THE SAME PROCESS AS DESCRIBED ABOVE ON AN ANNUAL BASIS. DISCLOSURE OF GOV DOCS, CONFLICT OF INTEREST POLICY & FINANCIAL STMTS FORM 990, PART VI, LINE 19 THE CONFLICT OF INTEREST POLICY AND STANDARDS OF CONDUCT ARE AVAILABLE ON THE HAWAI'I PACIFIC HEALTH WEBSITE. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS WILL BE MADE AVAILABLE TO THE GENERAL PUBLIC VIA THE HAWAI'I PACIFIC HEALTH WEBSITE. SCHEDULE J-2, COLUMN B INDIVIDUALS LISTED ON SCHEDULE J-2 ALSO DEVOTE TIME TO RELATED ORGANIZATION AS LISTED BELOW: HAWAI'I PACIFIC HEALTH ASHTON 40.0 C.R. CHING 30.0 CHAIKO 15.0 FOX 4.0 GLADSTONE 5.0 INOUYE 25.0 KURREN .3 LERCH 40.0 LEWIS .3 LONG 32.0 MASUMOTO-NONAKA 20.0 OKABE 35.0 PRESSLER-FISHER 45.0 RAETHAL 15.0 ROBBINS 10.0 ROBERTSON 15.0 SARUWATARI .4 STED 32.0 VARA 5.0 KAPI'OLANI HEALTH FOUNDATION C.R. CHING .5 INOUYE .5 LEWIS .2 LONG .5 OKABE 1.0 PRESSLER-FISHER 1.0 STED 3.0 KAUA'I MEDICAL CLINIC C.R. CHING 4.0 CHAIKO 1.0 INOUYE 4.0 LEWIS 2.4 LONG 4.0 MASUMOTO-NONAKA 1.0 OKABE 1.0 RAETHAL 5.0 ROBBINS 10.0 ROBERTSON 1.0 STED 6.0 VARA 5.0 KAPI'OLANI MEDICAL CENTER AT PALI MOMI ASHTON 2.0 C.R. CHING 1.0 CHAIKO 10.0 FOX 6.0 GLADSTONE .5 INOUYE 1.0 KUSANO 5.2 LERCH 6.0 LEWIS 6.0 MASUMOTO-NONAKA 8.0 MIYASHIRO 16.0 OKABE 3.0 PRESSLER-FISHER 1.0 RAETHAL 5.0 ROBERTSON 8.0 STED 2.0 VARA 10.0 KAPI'OLANI MEDICAL CENTER FOR WOMEN & CHILDREN ASHTON 2.0 C.R. CHING 4.0 CHAIKO 15.0 DIAS 30.0 FOX 10.4 GLADSTONE .5 INOUYE 5.0 KUSANO 8.7 LERCH 6.0 LEWIS 10.8 MASUMOTO-NONAKA 10.0 OKABE 4.0 PETERS 1.0 PRESSLER-FISHER 1.0 RAETHAL 10.0 ROBERTSON 12.0 STED 2.0 VARA 10.0 KAPI'OLANI MEDICAL SPECIALISTS C.R. CHING 3.0 CHAIKO 1.0 INOUYE 2.0 KUSANO .9 LERCH 1.0 LEWIS 1.3 OKABE 1.0 PRESSLER-FISHER 5.0 RAETHAL .2 ROBBINS 1.0 STED 1.0 PROVIDERS INSURANCE CORPORATION ASTHON .1 C.R. CHING 2.0 GIBSON .1 OKABE 1.0 STED 1.0 VARA 5.0 STRAUB FOUNDATION C.R. CHING .5 GIBSON .1 HEDBERG .1 LEWIS .5 OKABE .5 ROBBINS .1 STED 1.0 VARA .1 WILCOX HEALTH FOUNDATION C.R. CHING .5 INOUYE .5 LEWIS .5 OKABE .5 PRESSLER-FISHER 1.0 STED 1.0 WILCOX MEMORIAL HOSPITAL ASHTON 1.0 C.R. CHING 5.0 CHAIKO 5.0 FOX 4.2 GLADSTONE .5 INOUYE 12.0 LERCH 1.0 LEWIS 3.9 LONG 4.0 MASUMOTO-NONAKA 9.0 OKABE 3.0 PRESSLER-FISHER 2.0 RAETHAL 5.0 ROBERTSON 8.0 STED 8.0 SCHEDULE R, PART V, LINE 2 REASONABLE METHOD TO DETERMINE VALUE OF SERVICES, CASH & OTHER SERVICES IN GENERAL, AMOUNTS REPORTED WITH RELATED ORGANIZATIONS ARE DETERMINED BASED ON MARKET VALUES FOR SIMILAR ITEMS OR SERVICES. HAWAI'I PACIFIC HEALTH 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990246363 HOLDING COMPA HI 501 (C)(3) 11B TYPE II NA PROVIDERS INSURANCE CORPORATION 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 710893000 NFP INSURANCE HI 501 (C)(3) 11B TYPE II NA KAPI'OLANI MEDICAL CTR WOMEN & CHILDREN 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990177350 HOSPITAL HI 501 (C)(3) 3 NA KAPI'OLANI HEALTH FOUNDATION 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990246364 FUNDRAISING HI 501 (C)(3) 7 NA KAPI'OLANI MEDICAL SPECIALISTS 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990322406 HEALTH CARE HI 501 (C)(3) 9 NA KAPI'OLANI MEDICAL CENTER AT PALI MOMI 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990274038 HOSPITAL HI 501 (C)(3) 3 NA WILCOX MEMORIAL HOSPITAL 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990074365 HOSPITAL HI 501 (C)(3) 3 NA WILCOX HEALTH FOUNDATION 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990204242 FUNDRAISING HI 501 (C)(3) 7 NA KAUA'I MEDICAL CLINIC 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990326099 HOSPITAL HI 501 (C)(3) 3 NA STRAUB FOUNDATION 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990109350 RESEARCH/EDU HI 501 (C)(3) 7 NA HAWAI'I PACIFIC HEALTH PARTNERS INC& SUB 55 MERCHANT STREET 24TH FLOOR HONOLULU HI 96813 990318588 HOLDING COMPANY HI NA C CORP STRAUB PHARMACY INC 888 SOUTH KING STREET HONOLULU HI 96813 990145107 INACTIVE HI SCH C CORP -3564 4999836 1.00000 false true true false false false false true true true false false false true true true true true KAPI'OLANI MEDICAL CENTER FOR WOMENCHILDREN N 74033 KAPI'OLANI MEDICAL CENTER FOR WOMENCHILDREN P 432061 KAPI'OLANI MEDICAL CENTER FOR WOMENCHILDREN R 134469 KAPI'OLANI MEDICAL CENTER FOR WOMENCHILDREN O 758965 PROVIDERS INSURANCE CORPORATION Q 3308616 KAPI'OLANI HEALTH FOUNDATION R 55309 KAPI'OLANI MEDICAL CENTER AT PALI MOMI N 214854 KAPI'OLANI MEDICAL CENTER AT PALI MOMI R 55580 KAPI'OLANI MEDICAL CENTER AT PALI MOMI O 1196983 KAPI'OLANI MEDICAL CENTER AT PALI MOMI Q 425952 STRAUB FOUNDATION C 235995 WILCOX MEMORIAL HOSPITAL O 243312 HAWAI'I PACIFIC HEALTH PARTNERS INC & SUB 0 KAPI'OLANI MEDICAL SPECIALISTS 0 WILCOX HEALTH FOUNDATION 0 KAUA'I MEDICAL CLINIC 0 STRAUB PHARMACY INC 0 HAWAI'I PACIFIC HEALTH 99-0246363 KAPI'OLANI MEDICAL CENTER FOR WOMEN & CHILDREN 99-0177350 KAPI'OLANI MEDICAL CENTER AT PALI MOMI 99-0274038 WILCOX MEMORIAL HOSPITAL 99-0274038 KAUA'I MEDICAL CLINIC 99-0326099 PROVIDERS INSURANCE CORPORATION 71-0893000 KAPI'OLANI MEDICAL SPECIALISTS 99-0322406 STRAUB FOUNDATION 99-0109350 WILCOX HEALTH FOUNDATION 99-0204242 KAPI'OLANI HEALTH FOUNDATION 99-0246364 STRAUB CLINIC & HOSPITAL 91-2151670 MAILING ADDRESS FOR ALL MEMBERS OF THE AFFILIATED GROUP IS 55 MERCHANT STREET, 24TH FLOOR, HONOLULU, HI 96813. THE ONLY MEMBER TO MAKE THE ELECTION UNDER SECTION 501(H) WAS STRAUB CLINIC & HOSPITAL