2011-05-15T10:11:36-07:00 2010-06-30 Joseph J Szemanek Esquire LLC 5 Granite Circle Doylestown PA 18901 990 2009-07-01 231352213 ST LUKES HOSPITAL OF BETHLEHEM PA STLU 6109544000 801 Ostrum Street Bethlehem PA 18015 Thomas Lichtenwalner 6109543301 2011-05-16 1 Joseph Szemanek 2154891614 2011-05-13 X 2009 2016-02-24 21:20:13Z Thomas Lichtenwalner 801 Ostrum Street Bethlehem PA 180151000 710790674 0 X www.slhhn.org X 1872 PA To provide compassionate, excellent quality and cost-effective health care to the residents of the communities we serve regardless of their ability to pay. 17 15 5510 1124 3037053 8337 4872480 6076887 637557426 659298505 6451910 1535799 5918485 3356520 654800301 670267711 148585 111309 0 0 294462565 299407724 0 0 1197342 332084014 347694890 626695164 647213923 28105137 23053788 986873911 1080678571 703625985 752370380 283247926 328308191 To provide compassionate, excellent quality and cost-effective health care to the residents of the communities we serve regardless of their ability to pay. 0 0 38046004 64946465 Cardio Vascular Medicine Under the guidance of its community-based Board of Trustees and the support of the physicians on its open medical staff, St. Luke's Hospital (Allentown/Bethlehem), a member of the multi-hospital St. Luke's Hospital & Health Network, provides medically necessary services to individuals irrespective of their ability to pay. St. Luke's Heart and Vascular Center offers a full spectrum of advanced heart and vascular services generally available only at major metropolitan teaching hospitals. The Hospital's heart care program has earned Chest Pain Center accreditation and Joint Commission certification for heart failure. The National Committee for Quality Assurance (NCQA) has awarded the Hospital's clinics for the underserved special recognition in the area of heart and stroke care. 34132694 71309196 General Medicine Under the guidance of its community-based Board of Trustees and the support of the physicians on its open medical staff, St. Luke's Hospital (Allentown/Bethlehem), a member of the multi-hospital St. Luke's Hospital & Health Network, provides medically necessary services to individuals irrespective of their ability to pay. Coordinated care is provided for patients in both an outpatient and inpatient setting, in which care is managed by hospitalists. Emphasis is also placed on health promotion and disease prevention. Routine care of common medical illnesses and ongoing management and coordination of care for complex disease states is provided. 30165636 57214121 General Surgery Under the guidance of its community-based Board of Trustees and the support of the physicians on its open medical staff, St. Luke's Hospital (Allentown/Bethlehem), a member of the multi-hospital St. Luke's Hospital & Health Network, provides medically necessary services to individuals irrespective of their ability to pay. Hospital surgeons, combined with available leading-edge surgical technologies, provide patients with some of the most advanced surgical care available today. St. Luke's has one of the nation's oldest and most experienced minimally invasive robotic surgery programs and was the first in the U.S. to offer a "guarantee" for robotic prostatectomy. Other innovative advanced surgical techniques are offered for a wide range of conditions, such as surgery resulting from trauma injuries, bariatric surgery, and advanced, infectious and parasitic diseases. 351921811 467550468 OTHER PROGRAM SERVICES 351921811 0 467550468 454266145 1 1 0 1 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 1 278 0 1 5510 1 1 1 0 0 0 0 1 1 0 0 0 0 0 17 15 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X St Lukes Hospital of Bethlehem 6109544000 801 Ostrum Street Bethlehem PA 18015 Mr David M Lobach Jr 1 X 0 0 0 Mr Andrew F S Warner 1 X 0 0 0 Rev Dr Douglas Caldwell 1 X 0 0 0 Ms Christina Connar 1 X 0 0 0 Alice P Gast MD 1 X 0 0 0 Samual R Giamber MD 1 X 0 407601 55153 Ms Jan S Heller 1 X 0 0 0 Kostas Kalogeropoulos 1 X 0 0 0 John J Lukaszczyk MD 1 X 0 0 0 Mrs George A Hurd 1 X 0 0 0 Mr Douglas A Michels 1 X 0 0 0 Robert A Oster 1 X 0 0 0 Charles Saunders MD 1 X 0 0 0 Mr Arthur Scott 1 X 0 0 0 Mr Kenneth R Smith 1 X 0 0 0 Rev Dr Christopher Thomforde 1 X 0 0 0 Donald E Wieand Jr 1 X 0 0 0 Mr Richard Anderson 40 X X 1359666 0 383069 Mr Joel Fagerstrom 40 X 386271 0 30533 Mr Thomas Lichtenwalner 40 X 442215 0 169725 Mr Robert Zimmel 40 X 337777 0 119130 Mr Robert E Martin 40 X 345452 0 48214 Jeffrey Jahre MD 40 X 510369 0 64475 Seymour Traub Esq 40 X 316693 0 50733 Carol A Kuplen RN MSN 40 X 312521 0 86733 Mr Frank Ford 40 X 266301 0 44933 Joseph C Merola MD 40 X 499991 0 179487 Marc A Granson 40 X 458100 0 44260 James N Anasti MD 40 X 390511 0 48161 David W Anderson MD 40 X 365575 0 52430 Joel C Rosenfeld 40 X 353941 0 62766 6345383 407601 1439802 223 0 1 0 Progressive Physician Associates Inc 3735 Nazareth Rd Suite 206 Easton PA 18045 Physician Radiologic Services 12373440 Anesthesia Specialists of Bethlehem PC PO Box 5520 Bethlehem PA 18017 Anesthesiology Services 4394783 North Star Construction 7562 Pen Drive Suite 100 Allentown PA 18106 Construction 5913501 JG Petrucci Construction 171 State Rt 173 Asbury NJ 08802 Construction 4991765 Laboratory Corporation of America PO Box 12140 Burlington NC 27216 Laboratory services 2420481 42 0 0 0 0 649020 5427867 39387 6076887 Inpatient and outpatient program services 622000 650057061 647088536 2968525 0 School of Nursing 622000 2653325 2653325 0 0 General practice revenue 622000 1957911 1957911 0 0 Clinical trials 622000 1515204 1515204 0 0 Vascular services revenue 622000 409355 409355 0 0 2705649 1070874 0 1634775 659298505 4996966 0 0 4996966 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 36861837 199959 40431758 91205 -3569921 108754 -3461167 0 0 -3461167 0 Activities for patient and employee convenience 622000 1703402 1703402 0 0 Activities not regularly carried on 622000 1095856 1095856 0 0 Activities related to exempt function 622000 462953 462953 0 0 94309 25781 68528 0 3356520 670267711 657983197 3037053 3170574 111309 111309 6345383 4270443 2061615 13325 229329483 154338742 74509149 481592 19720952 13272201 6407337 41414 27107978 18243669 8807382 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13363045 18305126 19955631 283247926 328308191 986873911 1080678571 X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 110169 0 0 110169 0 SchC_P2B_S00_L01 Schedule C, Part II-B, Line 1 St. Luke's Hospital of Bethlehem Pennsylvania retained the consulting firm of Buchanan Ingersoll (301 Grant Street, 20th Floor, Pittsburgh, PA 15219)($110,169) in order to inform and educate legislators regarding Medicare and Medical Assistance Reimbursement as well as other health care issues. 149088988 11604793 18713647 -695684 2465741 0 177637371 163734348 21980648 -37362540 -1245740 509198 0 149088998 0.8211 0.1061 0.0728 0 0 0 70699517 70699517 0 334975670 168819584 166156086 0 10666532 229691385 -219024853 0 304514203 6108374 298405829 0 63157140 0 63157140 379393719 49550946 F 49550946 Corporate and partnership investments 20977273 F 20977273 Due from affiliates 48758360 Other assets 14918668 Other accounts receivable 5988247 Deferred financing costs 5806557 Annuity contracts 5274414 Amortizable goodwill (net) 219512 80965758 0 Self insurance reserves 46034488 Advance from third-party payors 2099500 Patient credit balances 9358830 Due to affiliates 12905762 Pension costs 4926265 Accrued interest on long-term debt 4309861 Estimated third-party payor settlements 20855369 Asset retirement obligation 3236749 Accrued compensation payable 108274568 Other noncurrent liabilities 551100 Swap contracts 49550404 262102896 670267711 647213923 23053788 0 0 0 0 13105244 13105244 36159032 668092135 0 0 0 0 0 668092135 0 2175576 2175576 670267711 645334617 0 0 0 0 0 645334617 0 1879306 1879306 647213923 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Board designated general purpose funds are used to support hospital operations, staff development and capital investment. Temporarily restricted assets are used for a variety of reasons and in accordance with the donors intended purposes - examples include capital investment, community health and education, support of hospital operations, and staff development. The available funds from permanently restricted assets are used for medical research, capital investment, community health and education, support of hospital operations, staff development and to pay for indigent care. the organization applies a strict spending policy to perserve the principal amount of the original donation. SchD_P10_S00_L00 Schedule D, Part X Not applicable SchD_P11_S00_L08 Schedule D, Part XI, Line 8 Net assets released from restrictions used for operations (3,316,938); net assets released from restrictions used for purchase of property and equipment (3,075,887); transfer from affiliated organizations (1,277,054); Pension adjustment (-20,756,754); change in fair market value of 2007 SWAP contracts (-10,979,650); net unrealized gains on investment (16,629,747); gains on debt refinancing (20,601,430); and unrealized gain (loss) of derivative (1,940,602). SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Reclassification of contra accounts (1,095,856); reclassification of rent from affiliates (783,450); unrestricted investment income from assets limited as to use (5,325,516); realized gain (loss) from unrestricted investments (3,569,921); unrestricted gifts, grants and contributions (77,399); unrestricted investment income from restricted net assets (586,920); unrestricted investment (loss) income (-2,232,408); and gain (loss) on disposal of property and equipment (108,754). SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b Reclassification of contra accounts (1,095,856) and reclassification of rent from affiliates (783,450). 1 1 X 1 X 3 1 X 5 1 1 0 0 13006223 13006223 0.0214 82733673 50138721 32594952 0.0536 0 0 0 0.00 0 0 95739896 50138721 45601175 0.0750 5983218 3404817 2578401 0.0042 37856811 13295449 24561362 0.0404 9027750 6030470 2997280 0.0049 0 0 0 0.00 926027 5125 920902 0.0015 0 0 53793806 22735861 31057945 0.0510 0 0 149533702 72874582 76659120 0.1260 169200 0 169200 0.0003 3331 0 3331 0.00 947 0 947 0 0 0 0 0 0 0 0 0 1205 0 1205 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 174683 0 174683 0.0003 1 7465275 1366145 174364849 151669642 22695207 X 1 1 ST LUKES HOSPITAL OF BETHLEHEM

801 Ostrum Street Bethlehem PA 180151000

X ST LUKES HOSPITAL OF BETHLEHEM ALLENTOWN

1736 Hamilton Street Allentown PA 18104

X The McKesson, Horizon Performance Management Costing application was the tool utilized to determine the cost of unreimbursed Medicaid, Medicaid HMO, and Subsidized Health Services. The entire Hospital activity was costed through the McKesson HPM application, to include inpatient, outpatient, emergency room, and all payers. Costing consisted of allocating cost from the departmental level down to the service item level. Once costs were determined at the service item level, we then aggregated encounters into the defined targeted groups. For determination of the unreimbursed costs for Medicaid, Medicaid HMO, and Subsidized Services reported on Part I, line 7, we excluded charity care, bad debt, and all over lapping cases reported elsewhere. We utilized the Ratio of Patient Care cost to charges to determine the charity care and bad debt costs. The development of the ratio conforms to the Tax Form 990 Instructions. The Medicare shortfall/surplus was determined using the Medicare Complex Cost Reporting Form utilizing allowable Medicare Costs. Subsidized health care services include costs of hospital based clinics, but no costs of physician clinics are included. The bad debt expense subtracted for purposes of calculating the percentage in this column is $39,318,208. The organization's audited financial statements do not provide a footnote with regard to bad debt expense. The costs associated with Medicare patients are based on the submitted cost report, which uses a cost to charge methodology for determining cost. Necessary adjustments were made to this number to exclude costs already recognized in other section of Schedule H, such as costs related to subsidized health services and graduate medical education. St. Luke's is of the opinion that the full Medicare shortfall should be counted as a community benefit. As reimbursement does not fully cover the cost incurred in the treatment of Medicare patients, there is a financial benefit and thus relief of government burden. Any patient who expresses an inability to pay for services, even if previously qualified for partial financial assistance, would be further evaluated by hospital personnel to determine eligibility for additional service assistance. The hospital's collection policy is applied uniformly to all out-of-pocket patient obligations unless the patient qualifies for additional financial assistance or discounting, as described above. Schedule H, Part VI, Line 5 (cont) - Environmental Improvements St. Luke's Hospital & Health Network has an extensive commitment to continually seek methodologies to enhance its participation in meaningful participation in environmentally friendly practices. As part of that Network, St. Luke's Hospital (Allentown/Bethlehem) recycled more than 775 million tons of materials in FY '10. These materials included: cardboard, plastics, aluminum cans, paper, shredded confidential papers, batteries, newspapers and metals. The Operating Room alone recycled 38.84 tons of plastic. Recycling containers are readily available throughout all Hospital facilities to capture as much recycling material as possible. Additionally, the Hospital has purchased the first of two hybrid automobiles. St. Luke's has partnered with Ascent, a company that reprocesses and remanufactures medical devices. Through this partnership, St. Luke's was able to divert 15,951 pounds of medical waste from landfills in FY '10. The Hospital's Engineering Department at each Hospital campus has a robust system of replacing outdated equipment with energy-efficient models. Over the past five years, three main boilers, the main chiller and three cooling towers have been replaced at the Bethlehem Campus. In addition, variable speed drivers have been installed at numerous locations and a new building automation system, which controls all the HVAC equipment, has been installed. Lighting retrofit projects throughout the facility have either been completed or are in progress. The Hospital recycles all lamps, batteries and electronic equipment. At the Allentown Campus, three new energy-efficient boilers and two new cooling towers have been installed. Cooling Tower water is used for air conditioning needs during winter months. Variable speed drivers have been installed at numerous locations. The entire Campus has been retrofitted with T-8 or T-5 fluorescent bulbs, replacing old T-12 models. Dimmer switches have been added to control lighting in unoccupied spaces. Incandescent light bulbs have been replaced with CFL energy bulbs. All nightlights and exit lights in patient rooms have been retrofitted with LED bulbs. Leadership Development/Training for Community Members St. Luke's Hospital & Health Network conducts a nationally recognized Leadership Development Program. Three times each year, renowned speakers are invited to lead day-long leadership development forums. In additional to the Network's management team, managers from community organizations are invited to attend at no charge. In FY'10, forum guests represented the following organizations: Good Shepherd Rehabilitation Hospital, Lehigh University, University of Pennsylvania, The Workforce Investment Board of the Lehigh Valley, Moravian College and St. Joseph's University. The Hospital conducts extensive educational and training programs for the region's volunteer and paid pre-hospital service personnel. For example, in January 2010, the 48-hour National Registry Paramedic Refresher course was provided to 39 area paramedics at no cost to them, a $10,000 value. Additional educational and training offerings included: responding to chemical assisted suicide incidents, diving emergencies, numerous trauma-related continuing education programs and a full-scale emergency preparedness drill at the Hospital's Bethlehem Campus. Coalition Building St. Luke's Hospital & Health Network has a proven record of forming effective partnerships built on a spirit of mutual respect and shared missions of community service. As an integral part of the Network, St. Luke's Hospital, through its Community Health Department, provides the administrative leadership, staff and financial support for the Bethlehem Partnership for a Healthy Community. Established in 1996 by the Board of Trustees of St. Luke's Hospital & Health Network, the Partnership is a national model for collaborative efforts to improve access to health care services. Currently more than 165 participating/funding agencies, representing local business, government, educational and community organizations, are actively involved in Partnership programs. Through community ownership and shared responsibility, the Partnership strives to enhance the physical, mental, emotional and spiritual wellness of individuals and communities, thereby improving the quality of life for all. Additionally, a variety of community organizations utilize meeting space in St. Luke's Hospital (Allentown/Bethlehem) at no expense. Community Health Improvement Advocacy The Hospital is an enthusiastic advocate of community health improvements as evidenced by its participation in the following: * St. Luke's Family Practice at Donegan Fowler Family Center, advocating improving access to care for residents in the economically-distressed Southside of Bethlehem. * Leadership role in the planning and collaboration with the Allentown School District that, when fully implemented, will improve the health status of all children/teens in areas such as vision, general access to a medical home and dental care. * St. Luke's Hospital & Health Network's language access initiative (medical interpretation, an advocacy program to help ensure equal access to quality health care for Limited English-Proficient community members). * The Hospital was a committed partner to start the first FQHC look-alike center in the Lehigh Valley, led by Neighborhood Health Centers of the Lehigh Valley, to improve access to care for the at-risk, underserved community. * The Hospital is a major partner in the Child Advocacy Center efforts for Northampton County residents. * Membership on the Board of New Directions Treatment Services, advocating for modifications in state regulations that prohibit drug treatment facilities from providing primary care services to improve access to services. * Membership on the United Way COMPASS Board to promote school health and wellness throughout the Lehigh Valley. Throughout the year, the Hospital utilizes numerous media outlets to educate the community about health issues that may impact them. The Hospital invested $75,561.55 in paid print advertising in area publications to ensure the collective paid circulation of 335,000 residences received notification of the free health classes/events and related information. Additionally, the Hospital produces a live, call-in weekly television program that highlights various health care topics and reaches more than 200,000 viewers each week. Workforce Development The Hospital is an active participant in the Adolescent Career Mentoring Program. The goal is to create a long-term impact both for low-income youth and the general minority community by increasing diversity of the workforce providing health care. Schedule H, Part VI, Line 6 (cont) - Twenty-five percent of the children seen had no dental insurance. During FY '10, the Dental Health Program provided more than $110,000 in subsidized and free care. Minority Health Initiatives * The Partnership strongly supports the Neighborhood Health Centers of the Lehigh Valley and their goal of establishing a Federally Qualified Health Center in the Lehigh Valley. This goal is part of the broader initiative of reducing minority health disparities in our local area. * Other initiatives focus on the following: access to culturally and linguistically responsive services; medical insurance/access to care. Tobacco Cessation Program * Nearly 200 low-income individuals received services through the Tobacco Addiction Treatment Center, with 58 percent making at least one quit attempt and 30 percent remaining abstinent from smoking at completion of the program. Through Reading Rocks!, St. Luke's Hospital provides additional community outreach through a partnership with Lehigh University formed in 2009. This partnership developed and implemented Reading Rocks!, a reading supplemental/mentoring program to promote literacy for at-risk students at Donegan Elementary School in South Bethlehem. Program highlights in FY '10 include: more than 150 students participated and more than 70 Lehigh University athletes volunteered their time to mentor the students; collection and distribution of more than 8,000 books; and opportunities for students and parents to celebrate reading achievements. Approximately 50 percent of Donegan students improved by at least one reading level during the year; 72 percent of first and second graders improved their reading levels. Donegan students made the largest academic gains from 2007-10 in the Lehigh Valley according to the Pennsylvania Value-Added Assessment System that measures individual student scores in math and reading from year to year. Students participating in Reading Rocks!, who achieved their goals, were acknowledged at assemblies at the end of each semester. A celebration was held at a Lehigh University basketball game. More than 300 students and family members attended the celebratory event. During the summer, a pilot project was implemented to take Reading Rocks! Outdoors and into the community through a partnership with the Southside Branch of the Bethlehem Public Library, incorporating the library's summer theme: Water. As part of its community outreach, St. Luke's offers a full range of free health screenings, immunizations, educational programs, health fairs, first aid services, tours of hospital facilities and numerous other programs. St. Luke's employees also sponsor an annual children's winter coat drive, purchasing new coats and other articles of clothing for more than 150 children in need. Highlights of FY '10 community outreach provided at no cost by St. Luke's Hospital (Allentown/Bethlehem) include, but are not limited to: * 56 CPR/First Aid classes in Bethlehem for 1,922 people. (Cost to St. Luke's: $82,762) * Community Health Department was the lead partner in holding H1N1 clinics. A total of 11 H1N1 clinics were held in which 1,695 vaccines were given to the public. * Cancer education to 1,192 medical professionals and the general public (Cost to St. Luke's: $31,246) * Heart disease education (Cost to St. Luke's: $18,269) * Nutrition/weight management education serving 1,423 people (Cost to St. Luke's: $5,116) * 14 health fairs serving 1,508 people (Cost to St. Luke's: $4,560) * In-kind donations and medical care at 21 community events (Cost to St. Luke's: $16,020 * 90 health screenings serving 3,095 people (Cost to St. Luke's: $22,408) * 2 presentations by St. Luke's Speaker's Bureau serving 677 people (Cost to St. Luke's: $8,304) * 9 support groups (Cost to St. Luke's: $32,935) Both St. Luke's Allentown and Bethlehem campuses provide a subsidized home ownership program, a benefit for employees who purchase a home in the immediate neighborhood surrounding the hospitals. This program helps stabilize neighborhoods adjacent to the hospital's campuses. Additionally, employees at both campuses are involved in various community outreach initiatives providing such support as food/supply collections for homeless children and families affected by domestic violence. Also, a number of managers and senior level administrators serve on local community boards. As part of the Partnership for a Tobacco Free Northeast Initiative funded by the PA Department of Health, St. Luke's Hospital is committed to addressing the number one cause of premature death and disability in our country. The St. Luke's Community Health Department offers comprehensive smoking cessation assessment, counseling and pharmacotherapy at the Allentown Family Health Center one day per week. Staff also participates in health fairs and other education programs to encourage those addicted to nicotine to "kick the habit." The AIDS Service Center at St. Luke's Hospital has taken the lead in meeting Healthy People 2010 objectives related to HIV infection. St. Luke's provided HIV prevention education to 10,600 individuals; HIV testing and counseling to more than 400 community members and improved in all national quality indicators for HIV care. St. Luke's Hospital has developed a comprehensive continuum of services for the prevention and treatment of HIV disease to improve the health of local residents. The HIV initiative includes outreach, education, counseling and testing services, risk reduction counseling, and primary and HIV specialty care for HIV+ individuals. HIV Prevention Education programs are provided to middle school students on a regular basis, and case management and social services are provided to HIV+ patients receiving care at St. Luke's Hospital in Allentown and Bethlehem. St. Luke's is proud of its ability to form long-lasting, mutually respectful partnerships with a variety of organizations representing education, the community, government, business and other health care organizations. Our partnerships range from Lehigh University to GE Healthcare, from Temple University School of Medicine to the Northampton County 911 Center. Our partnership with GE Healthcare resulted in St. Luke's being named one of a very few premier, multi-modality global product showcase sites for GE Healthcare, thus bringing the latest technology to our patients. St. Luke's Hospital supports a medical staff comprised of private practice physicians and physicians employed by St. Luke's Physician Group, a member of St. Luke's Hospital & Health Network. The Board of Trustees of St. Luke's Hospital & Health Network is comprised of community leaders representing a wide range of backgrounds and professional expertise who volunteer their time and talents. This Board has fiduciary and governance oversight for all Network entities and also serves as the Board of Trustees for St. Luke's Hospital (Allentown/Bethlehem). St. Luke's Hospital & Health Network's Department of Community Health oversees assessment of the health care needs of the communities served by hospitals within the Network, including St. Luke's Hospital. The Department is led by Dr. Bonnie Coyle, board-certified in preventive medicine, with 15 years experience in public and preventive health. Analysis of information from the following sources is part of the Department's ongoing health needs assessment process: Vital Statistics, Pennsylvania Department of Health data, hospital discharge data, the Robert Wood Johnson County Health Profiles and other county data available from various other state agencies. In addition, the Department collects ongoing statistics from its comprehensive community outreach initiatives and from initiatives of the Bethlehem Partnership for a Healthy Community. The Department provides the administrative leadership, staff and financial support for the Bethlehem Partnership for a Healthy Community. Established in 1996 by the Board of Trustees of St. Luke's Hospital & Health Network, the Partnership is a national model for collaborative efforts to improve access to health care services. Currently more than 165 participating/funding agencies, representing local business, government, educational and community organizations, are actively involved in Partnership programs which serve the Greater Lehigh Valley. Through community ownership and shared responsibility, the Partnership strives to enhance the physical, mental, emotional and spiritual wellness of individuals and communities, thereby improving the quality of life for all. The Department's health care needs assessment process is enhanced by data obtained through the Bethlehem Partnership's various school-based programs, such as numbers of children failing dental and vision examinations and number of children not receiving medical examinations. The Department also utilizes Guidelines for Adolescent Preventive Services (GAPS) in the Bethlehem Partnership's various mobile van service programs to collect data on risk factors for students and to monitor community health problems. For example, data has been tracked on risk factors such as smoking, obesity, seatbelt use and drug and alcohol use. GAPS is also used on an ongoing basis to build and modify programs. Most recently, the Network has contracted with the Lehigh Valley Research Consortium to conduct a formal health needs assessment for the Greater Lehigh Valley and upper Bucks area, served by St. Luke's Hospital (Allentown/Bethlehem), St. Luke's Quakertown Hospital and the Visiting Nurse Association of St. Luke's. The process will be completed by the end of Summer 2011. As a non-profit entity, St. Luke's Hospital's first consideration in the admission and placement or treatment of any patient is the patient's medical needs. Some patients hesitate to obtain necessary care because of their financial concerns. In order to encourage such patients to obtain appropriate care, in December 2008, the Network's Board of Trustees redesigned the Network's Charity Care Program for patient access to discounted hospital services. This policy is updated annually. The Network also established a community benefit tracking system to comply with new IRS Form 990 Guidelines (effective 2009) to report community benefit activities/expenditures. The Charity Care Program is widely communicated in both English and Spanish. A bilingual notice of the Program is posted in all outpatient and inpatient registration areas. All patient statements include a number for patients to call if they are having difficulty paying their bills. St. Luke's website has extensive information regarding the Financial Assistance Program, including eligibility guidelines and contact information. Additionally, St. Luke's financial counselors assess each patient for eligibility for coverage through Medical Assistance, CHIP, Adult Basic and other programs. Bilingual counselors are available. St. Luke's Hospital's (Allentown/Bethlehem) primary service area consists of an urban population in Lehigh and Northampton counties in Southeastern Pennsylvania with a total population of 703,781. The average household income is $75,735 and 10 percent of the population has income below the poverty level. Seven hospitals serve the primary service area and 16 percent of hospital discharges are Medicaid patients and 3 percent are uninsured. As of the 2008 American Community Survey conducted by the U.S. Census Bureau, the Lehigh Valley consisted on the following groups: 87.1% of the population were Caucasian; Hispanics and Latinos of any race made up 11.3% of the population and 4.6% were Black or African American. South Bethlehem, Easton and Tamaqua have been designated Medically Underserved Areas. Population growth from 2000 to 2030, projected by the Lehigh Valley Planning Commission, is as follows: Ages 0 to 54 years, 9 percent; 55 to 64 years, 49 percent; 65 to 74 years, 76 percent and 75+, 57 percent. St. Luke's Hospital (Allentown/Bethlehem) has direct involvement in numerous community building activities that promote and improve the health status and general betterment of the communities served by the hospital as reported in Part II. St. Luke's Hospital has campuses in both Allentown and Bethlehem, PA and is the flagship of St. Luke's Hospital & Health Network. Additional costs related to specific building activities may be found elsewhere in Form 990, Section H. Physical Improvements/Housing St. Luke's Hospital - Allentown Campus is the largest hospital in the City of Allentown and serves as the anchor of the City's West End neighborhoods and business district. In FY '10, the Hospital made monetary donations to provide equipment, such as climbing towers, for the City's playgrounds to provide an environment that encouraged children to actively play and exercise. St. Luke's Hospital - Bethlehem Campus is located in the Borough of Fountain Hill, PA and is the community's largest employer. In FY '10, the Hospital made monetary donations to construct volleyball courts and install security cameras at the community park to provide an environment that encouraged members of the community to utilize facilities that provide an opportunity for healthy exercise. As the community's main consumer of sewage facilities, the Hospital made a monetary donation to update the Brighton Street Sewer Pumping Station. Financial assistance was provided to the Borough to help cover the costs of a new fire utility vehicle. Several years ago, the Hospital constructed the Borough's only fire station on property owned by St. Luke's. The Hospital continues to provide the facility to the Borough at no annual cost. Both Hospital campuses provide an Assisted Housing Program to employees who purchase eligible homes in neighborhoods near the Hospital. This Program not only benefits employees who receive financial incentives from both the Hospital and a local bank, it also helps stabilize the nearby neighborhoods. Economic Development With 4,486 employees, the Hospital is the second largest employer in the Lehigh Valley region of PA and is a major economic anchor in the region. According to the federal Bureau of Economic Analysis, the employment multiplier for Pennsylvania hospitals is 2.19, suggesting that for every hospital job, 1.2 additional jobs are supported within the state. In a report issued in February 2010, The Hospital and Healthsystem Association of Pennsylvania calculated St. Luke's Hospital's total spending benefit (hospital only and ripple benefit) to the region's economy at $1,003,240,274 and total salary benefit (hospital only and ripple effect) at $315,102,149. The Hospital actively participants in a number of community organizations focused on economic development. These include the Board of Directors of Lehigh Valley Economic Development Corporation, Greater Lehigh Valley Chamber of Commerce and the Southside Bethlehem Keystone Innovation Zone. The Hospital's national reputation for clinical excellence is a factor in attracting business and industry to the region and is featured in promotional materials used for this purpose. Community Support In FY '10, the Hospital made cash donations to numerous non-profit organizations including: Valley Youth House, Fegley Memorial Golf Tournament, Univest Grand Prix, India Day Parade, Lehigh Valley Coalition for Kids, Cancer Survivor's Day, Wellness Community, Skills USA, Zoellner Arts Center, Leukemia & Lymphoma Society, Community Services for Children, Allentown Firemen and the Lehigh Valley Heart/Stroke Walk. The school-based center at Donegan Elementary School in Bethlehem, PA, supported by St. Luke's Hospital, the United Way, and the Bethlehem Area School, school has provided much needed programs and services to the Donegan community for more than ten years. Donegan serves a low-income, bilingual population of approximately 400 students in grades K-5. Eighty percent of students qualify for free or reduced lunch. Three years ago, nearly 80 percent of students were reading at least one grade level below their current grade level. The inability to read has a potentially devastating life-long effect on children. Students not reading at grade level in grade 3 are statistically more likely to live their lives, at best, in poverty, and at worst, incarcerated. Recognizing this dire circumstance, St. Luke's Hospital took the lead in creating Reading Rocks!, a formal school-based, literacy initiative to assist 50 to 75 of the highest-risk students succeed at school. In FY '10, approximately 50 St. Luke's employees volunteered their time to read to students and nearly 10,000 books were collected for distribution to the students. Both these activities are integral parts of the comprehensive Reading Rocks! program. The Hospital pays all costs associated with Reading Rocks! Reading Rocks! has achieved its goal of promoting literacy at Donegan Elementary School. In FY '10, after just two full years of Reading Rocks! implementation, the percent of children reading below grade level decreased from nearly 80% to 44%. In both years of the Program, more than 50 percent of program participants increased their reading scores by at least one level. Hospital employees take a leadership role in the planning of the annual Women's 5K Classic, which raises about $200,000 in funding for programs benefiting female cancer research and education in the Lehigh Valley. The Hospital also makes a monetary donation to support the event. With about 5,500 participants, this is the 4th largest all-female walk/run event in the United States. In FY'10, about 100 St. Luke's employees and their families participated in the event. The Hospital was awarded $25,000 of the proceeds to support its Cancer Social Work Fund and a $25,000 pledge to be paid in FY '11 to support the hospital's Breast Transition Pilot Program. The Hospital also provides community support through the following: * Healthy Habits Class at Donegan Elementary School, helping participants understand healthy food choices, portion control and exercise to decrease obesity and promote a healthy life style; * The Family Center Advisory Board; working in collaboration with Professional Community Members to identify resources and provide services to support members of the community. * Leadership roles in Community Services for Children, Greater Lehigh Valley Oral Health Partnership, Hispanic Dental Association, ASPIRE/21st Century Community Learning Centers Partners In other areas of community support, Hospital personnel are active members/participants of the following community groups/activities: numerous Rotary Clubs in the region; numerous non-profit, fund-raising walks to raise funds and awareness of various health conditions such as heart, stroke, premature birth and cancer; Northampton Community College (NCC) Radiology Advisory Committee, NCC Sonography Advisory Committee. Hospital employees hold multiple annual food drives to support the Second Harvest Food Bank; provide new, warm clothing and coats to about 100 at-risk children; conducted bake sales to support homeless children in the Allentown School District, collected thousands of new toothbrushes and other dental products for elementary school children utilizing the services of the Hospitals mobile Dental Van. St. Luke's furthers its exempt purpose by promoting the health of the community through various substantive programs and services. St. Luke's offers a toll-free health information telephone number for members of the community. In FY '10, 34,267 callers were assisted with a range of services including: registration for free community health programs, screenings and other health services; referrals to physicians meeting the expressed needs of the callers; information on St. Luke's Charity Care Program. Additionally, St. Luke's produces a weekly television program on which St. Luke's physicians and other health care providers provide information on healthy living, health screenings, advances in health care treatment and technology and related topics. St. Luke's Hospital operates a wide range of medical and specialty clinics for adults, infants and children at locations in Allentown and Bethlehem. The annual budget for this service in FY '10 was $7,778,678; to provide 99,032 patient visits at the Bethlehem Campus and 24,777 patient visits at the Allentown Campus. St. Luke's Health Center at Union Station in Bethlehem provides primary care for patients 18 years and older and selected specialty services for patients 13 years and older. Care is provided to qualified patients without health insurance and patients with Medicare, Medicaid and Medicaid HMO. Specialty services include: cardiology; colon/rectal; dermatology; ear, nose and throat; endocrinology; gastroenterology; HIV/AIDS; neurology; orthopedics; physical medicine/rehabilitation; podiatry; pulmonary; rheumatology; general surgery; travel/immunizations; urology and vascular. St. Luke's Hospital provides KidsCare Centers in Allentown, Bethlehem and Easton. The Centers offer comprehensive sick and well care for children from birth to 18 years of age. Appointments are available days, evenings and Saturdays. Walk-in service is also provided at certain times, which helps reduce costly inappropriate use of St. Luke's Emergency Departments for non-emergency pediatric health concerns. Payment options include medical assistance. St. Luke's Hospital received the 2010 Inez and Edward Donnelly Award for Children's Advocacy, an honor bestowed by Community Services for Children, an Allentown-based agency that provides Head Start and other programs. The award was presented in recognition of St. Luke's KidsCare Centers (pediatric clinics) and school-based programs provided by the Bethlehem Partnership. The honor recognized St. Luke's "for its care and compassion for children from low-income families." St. Luke's Dental Clinics are located in Union Station in South Bethlehem and in Easton and serve both pediatric and adult patients. Services include: comprehensive exams/cleanings, crowns and porcelain veneers, emergency treatment, fillings, full and partial dentures, implants, night guards/grinding therapy, periodontal treatment, root canal treatment, sealants and fluoride treatments, simple extractions, sleep apnea / snoring therapy and tooth whitening/bleaching. Payment options include medical assistance and state-funded insurance plans. The mission of St. Luke's Community Health Department is to improve the health status of the community, especially for individuals with limited resources. The Department's FY '10 budget was $521,186. Through its Community Health Department, St. Luke's provides the administrative leadership, staff and financial support for the Bethlehem Partnership for a Healthy Community. Established in 1996 by the Board of Trustees of St. Luke's Hospital & Health Network, the Partnership is a national model for collaborative efforts to improve access to health care services. Currently more than 165 participating/funding agencies, representing local business, government, educational and community organizations, are actively involved in Partnership programs. Through community ownership and shared responsibility, the Partnership strives to enhance the physical, mental, emotional and spiritual wellness of individuals and communities, thereby improving the quality of life for all. Under St. Luke's leadership, Bethlehem Partnership achievements for FY '10 included: General * Successful campaign completed in partnership with Lehigh Valley Coalition for Kids to raise $1.5 million to support purchase of two mobile medical and two mobile dental vans. Fowler Family Center at Donegan Elementary School * The Center is entering its 13th year of operation serving nearly 500 students and their families. Staffed by family development specialists, a family-to-family advocate and a part-time secretary, the Center provides services to promote five main outcomes: 1) prenatal and children's health, 2) healthy childhood development, 3) school readiness and success, 4) family stability and 5) safe communities. * The Center completed its second full year of implementation of its Youth Succeeding in School Initiative to promote academic success for at-risk students. One hundred eighty-seven students and their families were enrolled in the Initiative and 105 completed the program. * The three-year Primary Challenge Grant to Donegan Elementary School in Bethlehem was completed. These funds were used to: 1) transition to a family- practice model, 2) improve rates of EPSDT completion (well care expectation for children/teens) 3) strengthen dental outreach, referral and onsite service provision (serving more than 100 individuals/year onsite via mobile dental unit). * The family clinic, staffed by Center and St. Luke's Hospital employees, provided primary and preventive care through 2,343 visits to low-income children and families, 10 percent of whom were uninsured. A Women's Health Clinic provided care during 185 visits for 83 low-income women, most of whom were either uninsured or received Medical Assistance. Vision Initiative * Re-established portable vision program utilizing the new medical van, which enabled the Partnership to provide onsite vision exams and glasses to children/adults in need on the new mobile medical van. * In FY '10, 2,848 students were referred to the Vision Initiative by school nurses after they conducted an initial vision screening; 807 of these students had their vision referral completed. Adolescent Career Mentoring * Received funding for, and successfully completed, a new nine-month program, Next Step, for high school graduates. This program provides additional training for at-risk young adults. The goal of the program is to 1) provide additional training to improve at-risk young adults' job marketability and 2) enable at risk young adults to secure unsubsidized employment at conclusion of program. Twelve at-risk young adults were enrolled; five were successfully hired by St. Luke's Hospital & Health Network. * The School-to-Work marked its 13th year. This program is designed to encourage English-acquisition high school students to complete high school and consider a health career through exposure to an interactive, hospital-based curriculum. The program enrolled 18 students with a 94 percent maintaining enrollment for the entire school year. In FY '10, the program achieved an 86 percent graduation rate of eligible senior grade students. Asthma Initiative * The Asthma Initiative has been serving the Bethlehem area for 13 years. The program offers school-age children and their families educational support, nursing interventions and asthma assessments. * 273 families who utilized the St. Luke's Hospital emergency department for asthma care received education and case management services to improve asthma management and access to care. Over 60 home visits were completed to assist families in reducing environmental factors that may exacerbate asthma symptoms. Adolescent Mobile Health Van Programs * Preventive, well and sick care services are provided through a Mobile Youth Health Center (MYHC) which visits various schools and is designed to provide clinical services to the students while limiting the amount of missed school time. The MYHC experienced a 13 percent increase in services in FY '10, providing services for 1,292 patient visits. In addition, youth from Valley Youth House Shelter are served bi-weekly for general physicals and vision-related referrals. * With the addition of new mobile vehicles, discussions with the Allentown School District began to expand current services at Raub Middle School to two additional schools: Dieruff High School and Trexler Middle School, all in Allentown. Dental * The new dental van made its debut in April 2010 - this three-chair van allows the dentist to work more efficiently, providing restorative care to more children. * The Dental Van Program served 31 sites, including schools in the Bethlehem Area School District and other schools and community agencies across the Lehigh Valley and beyond. Care was provided to almost 1,100 children - cleanings, X-rays and basic restorative care. St. Luke's Hospital is a member of St. Luke's Hospital & Health Network, a regional, integrated network of non-profit hospitals, physicians, outpatient facilities and other related health care services providing care at 150+ locations primarily in Lehigh, Northampton, Carbon, Schuylkill, Bucks, Montgomery, Berks and Monroe counties in Pennsylvania and Warren County in New Jersey. The Network invests in projects, technology, medical expertise and programs that contribute to the enhancement of the region's health care status. Individual hospitals within the Network develop, implement and fund programs specific to the needs of the community. The Board of Trustees of St. Luke's Hospital & Health Network, which also serves as the Board of Trustees of St. Luke's Hospital, supports and has oversight for a dynamic Community Health Policy. The Board views improving the health of the community as fundamental to the mission and values of St. Luke's Hospital & Health Network. It is the policy and practice of the Network to incorporate and engage in initiatives which will create a healthier community. The Board demonstrates its commitment to improving the health of the community by dedicating resources to achieve the following: * To work with other members of the community to develop an environment which provides opportunities for healthy choices and provides norms and support for healthy actions and behaviors. Multidimensional initiatives, which include and impact on various community characteristics such as safety, education, transportation, social supports and economic opportunities, are considered and developed. * To include specific actions and commitments in the Network's operations and business plans related to community health efforts. * To develop and sustain partnerships with other members of the community to share the responsibility, work and successes of creating a healthier community. * To provide leadership and commitment in developing sustainable infrastructures for a healthier community by providing technical assistance, expertise, information and support where they are relevant to the community's efforts. 1 School of nursing scholarships ranging in amounts from $50 to $10,568. Fourteen scholarship recipients received assistance of more than $5000 while the thirtytwo of the recipients received more than $1000 of assistance. 66 111309 0 Cash and cah equivilent Not applicable SchI_P01_S00_L02 Schedule I, Part I, Line 2 The individuals benefitting from the assistance were all recipients of Scholarships from the St. Luke's School of Nursing in FY 2010. The scholarships/tuition awards were given based on financial need. All of the recipients were students at the St. Luke's School of Nursing in FY 2010. The qualifications of the individual receipients as well as the use of the assistance are reviewed and monitored St. Luke's School of Nursing. X 1 1 X X X X X X 0 1 0 0 0 1 0 0 0 Samual R Giamber MD 0 403791 0 0 0 3810 0 41079 0 14075 0 462755 0 Mr Richard Anderson 707950 0 0 0 651715 0 367475 0 15595 0 1742735 0 0 0 Mr Joel Fagerstrom 385821 0 0 0 450 0 15356 0 15177 0 416804 0 0 Mr Thomas Lichtenwalner 335109 0 0 0 107106 0 156277 0 13448 0 611940 0 0 0 Mr Robert Zimmel 252896 0 0 0 84881 0 106163 0 12967 0 456907 0 0 0 Mr Robert E Martin 265826 0 0 0 79626 0 31886 0 16328 0 393666 0 0 0 Jeffrey Jahre MD 369892 0 131464 0 9013 0 49900 0 14575 0 574844 0 0 0 Seymour Traub Esq 277467 0 0 0 39226 0 35395 0 15338 0 367426 0 0 0 Carol A Kuplen RN MSN 241329 0 0 0 71192 0 72646 0 14087 0 399254 0 0 0 Mr Frank Ford 204460 0 0 0 61841 0 32069 0 12864 0 311234 0 0 0 Joseph C Merola MD 454087 0 0 0 45904 0 165912 0 13575 0 679478 0 0 0 Marc A Granson 456810 0 0 0 1290 0 30431 0 13829 0 502360 0 0 0 James N Anasti MD 382661 0 0 0 7850 0 30884 0 17277 0 438672 0 0 0 David W Anderson MD 339038 0 24557 0 1980 0 35856 0 16574 0 418005 0 0 0 Joel C Rosenfeld 345513 0 0 0 8428 0 49191 0 13575 0 416707 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a St. Luke's Hospital of Bethlehem, PA provided the Chief Executive Officer with membership to a local country club to conduct corporation business as necessary. SchJ_P01_S00_L03 Schedule J, Part I, Line 3 See Form 990, Part VI, Section B, Line 15(b). SchJ_P01_S00_L04 Schedule J, Part I, Line 4 The following individuals participated in and accrued benefits in accordance with a 457 Supplemental Nonqualified Retirement Plan: Richard A Anderson ($16,500); Samual R Giamber MD ($10,400); Joel Fagerstrom ($16,500); Thomas Lichtenwalner ($16,500); Robert Zimmel ($2,600); Robert E Martin ($16,500); Jeffrey Jahre MD ($16,500); Seymour Traub Esq ($15,125); Frank Ford ($16,500); Joseph Merola MD ($16,500); David W Anderson MD ($16,500); James N Anasti MD ($16,500); and Joel C Rosenfeld ($16,500). SchJ_P01_S00_L06 Schedule J, Part I, Line 6 The executive compensation package for the health network consists of both a fixed salary and additional at-risk compensation that is based on several qualitative and quantitative components. The components of the at-risk compensation plan includes JCAHO, Department of Health and Trauma Center accreditations, evidence based hospital process of care measures, outcome measures such as patient satisfaction, mortality rate, and length of stay, efficiency measures as demonstrated by cost per adjusted discharge and finally net income. The at-risk compensation reported on the 2009 Form 990, Schedule J is related to fiscal year 2009 (July 2008-June 2009) performance and reported on the 2009 W-2. There was no at-risk compensation paid or accrued for fiscal year 2009 (July 2009-June 2010) performance. Hospital Revenue Bonds Series 2007 issued by Lehigh County General Purpose 231352213 5248055C8 2007-02-21 110420000 Construct and equip expansion of Allentown facility 0 0 Hospital Revenue Bonds Series 2007 issued by Lehigh County General Purpose 231352213 5248055D6 2007-02-21 155890000 Construct and equip expansion of Allentown facility 0 0 Hospital Revenue Bonds Series 2008A issued by Northampton County General Pu 231352213 66353RAA2 2008-06-11 4260000 Acquire, construct and equip new Riverside Campus 0 0 Hospital Revenue Bonds Series 2008A issued by Northampton County General Pu 231352213 66353RAB0 2008-06-11 4480000 Acquire, construct and equip new Riverside Campu 0 0 Hospital Revenue Bonds Series 2008A issued by Northampton County General Pu 231352213 66353RAC8 2008-06-11 4715000 Acquire, construct and equip new Riverside CCampus 0 0 110420000 4102417 56781696 0 1104217 0 50011294 2010 0 1 1 1 155890000 5791756 80163907 0 1558923 0 70605513 2011 0 1 1 1 4260000 398699 0 0 49991 0 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0 1 0 Rev Dr Douglas Caldwell Moravian College - Director 337937 Contracted services 0 Rev Dr Christopher Thomforde Moravian College - President 337937 Contracted services 0 Mr Andrew F S Warner Park Avenue Quakertown LLP - Partner 552779 Property lease 0 Donald E Wieand Jr Stevens & Lee PC - Shareholder 150273 Legal services 0 X 8 39387 Market quote date contributed 0 1 0 F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 St. Luke's Hospital of Bethlehem, Pennsylvania is a not-for-profit organization with members who, in accordance with the governing documents, elect and/ or appoint the members of the governing body of the organization and have the right to participate in the significant decisions of the governing body. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a St. Luke's Hospital of Bethlehem, Pennsylvania is a not-for-profit organization with members who, in accordance with the governing documents, have the right to elect and/ or appoint one or more of the members of the organization's governing body, whether periodically or as vacancies arise. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b St. Luke's Hospital of Bethlehem, Pennsylvania is a not-for-profit organization with members who, in accordance with the governing documents, have the right to participate in, or approve of, the significant decisions of the governing body. F990_P06_S0B_L11 Form 990, Part VI, Section B, Line 11 The Form 990 "Return of Organization Exempt From Income Tax" was presented to and discussed with the Finance Committee of the Board of St. Luke's Health Network during the April meeting. The Form 990 was subsequently reviewed by the full Board of Directors of St. Luke's Hospital of Bethlehem, Pennsylvania during the April meeting. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c BOARD OF TRUSTEES POLICY MANUAL, CONFLICT OF INTEREST POLICY Section 2. Duty to Disclose Financial and Conflicting Interests. Every Person Covered by this Policy shall submit in writing to the President/CEO at least each calendar year a Conflict of Interest Disclosure Statement listing all Financial and Conflicting Interests which shall be shared with the Chairman of the Board. Each statement must be resubmitted with any necessary changes each year or as any additional Conflicting of Financial Interests arise. The Chairman of the Board shall become familiar with all such Disclosure Statements to guide his/her conduct should a conflict arise. The Vice Chairman of the Board and the President/CEO of SLHN shall also become familiar with the Disclosure Statement filed by the Chairman of the Board. The Chairman of the Board shall share with each Chairperson of a Board Committee the Statements submitted by members of such Board Committee. Section 3. Procedures to be followed at Meetings. Whenever the Board of a Board Committee is considering a transaction or arrangement with any organization with any organization, entity or individual in which a Person Covered by this Policy has a Financial of Conflicting Interest, the following shall occur. (a) If the Interested Person is present, the Interested Person must disclose the Financial or Conflicting Interest to the Board and/or the affected Board Committee. If the Interested Person is not present, the Chairman of the Board or the Chairperson of the affected Board Committee must disclose the Financial or Conflicting Interest to the Board and/or the affected Board Committee. (b) If the Interest Person is present, the Chairman of the Board or the Chairperson of the Board Committee may ask the Interested Person to excuse himself from the meeting during discussion of the matter that gives rise to the potential conflict. If asked, the Interested Person shall excuse himself from the meeting, although he or she may make a statement or answer any question on the matter before leaving. (c) The Interested Person will not vote on the matter that gives rise to the potential conflict. (d) The Board or the Board Committee must approve the matter referenced in Section 3(c) by a majority vote of the persons present at the meeting that has a quorum. The Interested Person's attendance shall count for the purposes of determining whether a quorum exists. In addition, if an Interested Person is a member of the Board and has a Financial Interest in a transaction or arrangement, the follow should be observed in addition to the provisions described above: (e) If appropriate, the Chairman of the Board may appoint a person other than an Interested Person or a committee to investigate alternatives to the proposed transaction or arrangement. (f) In order to approve the proposed arrangement, the Board of Trustees must first find, by a majority vote of the Trustees present at the meeting, without the vote of the Interested Person, that the proposed arrangement is in SLHN's best interest and is of benefit; that the proposed arrangement is fair and reasonable to SLHN; and that, after reasonable investigation, SLHN cannot obtain a more advantageous arrangement through reasonable efforts under the circumstances. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 Compensation Review: Executive compensation for the health network consists of fixed salary, at-risk compensation and other deferred compensation arrangements. Total compensation for network executives is approved annually by the network's Board of Trustees. The recommended compensation is established though a multi-faceted approach including use an independent consultant engaged on an ongoing basis by the Board of Trustees and who works directly with the Executive Compensation Committee of the board. Also, included is the review of 990s and compensation surveys of other comparable health care organizations. Bonus/Incentive: The at-risk compensation is approved by the Executive Compensation Committee of the board and is based on several qualitative and quantitative components, including Joint Commission, Pennsylvania Department of Health and Pennsylvania Trauma Systems Foundation accreditations, evidence-based hospital process of care measures, outcome measures, such as patient satisfaction, mortality rate, and length of stay ; efficiency measures as demonstrated by cost-per-adjusted discharge and net income. Deferred Compensation: Deferred compensation represents retirement benefits earned during the reporting period, yet not recognized as compensation on the employee's 2009 W-2. Nontaxable Benefits: Health and welfare benefits Compensation Reported on prior 990: Total compensation reported on prior 990's represented recognition of deferred compensation benefits that had accumulated over years of service and was reported and distributed in accordance with vesting requirements and Internal Revenue Service rules and regulations. The amount was reported in Schedule J, column 3-other compensation. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Pursuant to IRS Regulations, St. Luke's Hospital of Bethlehem, Pennsylvania, upon request, makes the following documents available for public inspection: original and amended, if any, annual information returns; application for tax exemption including its governing instruments, supporting documents, and all IRS correspondence pertaining thereto; and audited financial statements. ST LUKES HOMESTAR SERVICES LLC 801 Ostrum Street Bethlehem PA 180151000 260369246 Medical equipment and infusion services PA 11349596 5673038 ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA ST LUKES HEALTH NETWORK 801 Ostrum Street Bethlehem PA 180151000 232384282 Parent Corporation PA 501(c)(3) 11 N/A ST LUKES QUAKERTOWN HOSPITAL 801 Ostrum Street Bethlehem PA 180151000 231352203 Acute care services PA 501(c)(3) 3 ST LUKES HEALTH NETWORK INC CARBON SCHUYLKILL COMMUNITY HOSPITAL INC 801 Ostrum Street Bethlehem PA 180151000 251550350 Acute care services PA 501(c)(3) 3 ST LUKES HEALTH NETWORK INC ST LUKES PHYSICIAN GROUP INC 801 Ostrum Street Bethlehem PA 180151000 232389812 Physician services PA 501(c)(3) 11 ST LUKES HEALTH NETWORK INC LIFESTAR 801 Ostrum Street Bethlehem PA 180151000 232179542 Patient transport PA 501(c)(3) 3 ST LUKES HEALTH NETWORK INC QUAKERTOWN REHABILITATION CENTER 801 Ostrum Street Bethlehem PA 180151000 232543924 Rehabilitation services PA 501(c)(3) 3 ST LUKES HEALTH NETWORK VNA OF ST LUKES - HOSPICE AND HOME HEALTH INC 801 Ostrum Street Bethlehem PA 180151000 240795497 Home health services PA 501(c)(3) 8 ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA HOMESTAR MEDICAL EQUIPMENT AND INFUSION SERVICES 801 Ostrum Street Bethlehem PA 180151000 232318254 Medical equipment and infusion services PA 501(c)(3) 9 ST LUKES HEALTH NETWORK INC ST LUKES HOSPITAL AND HEALTH NETWORK AUXILIARY 801 Ostrum Street Bethlehem PA 180151000 232134479 Fundraising PA 501(c)(3) 3 ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA EIGHTH & EATON PROFESSIONAL BUILDING LP 801 Ostrum Street Bethlehem PA 180151000 263017143 Real estate management PA ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA Investment 0 0 ST LUKES HEALTH NETWORK INSURANCE COMPANY 801 Ostrum Street Bethlehem PA 180151000 752993150 Risk retention groupo VT ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA C 0.88 ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA AMBULATORY SURGERY LTD 801 Ostrum Street Bethlehem PA 18015 233018850 Orthopedic services PA ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA C 1 CANCER IMMUNOTHERAPIES LLC 801 Ostrum Street Bethlehem PA 180151000 208783508 Research projects PA ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA C 1 ST LUKES EIGHTH & EATON HOLDINGS INC 801 Ostrum Street Bethlehem PA 180151000 237192801 Real estate management PA ST LUKES HOSPITAL OF BETHLEHEM PENNSYLVANIA C 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 ST LUKES HEALTH NETWORK h 21529896 ST LUKES QUAKERTOWN HOSPITAL h -7393294 CARBON SCHUYLKILL COMMUNITY HOSPITAL INC h 4636735 ST LUKES PHYSICIAN GROUP INC h 28409656 LIFESTAR h -13940527 QUAKERTOWN REHABILITATION CENTER h 3322664 VNA OF ST LUKES - HOSPICE AND HOME HEALTH INC h 270926