2011-02-07T13:45:17-05:00 2010-03-31 BKD LLP 400 E MAIN ST STE 200 PO BOX 1196 BOWLING GREEN KY 421021196 990 2009-04-01 610920842 BOWLING GREEN WARREN COUNTY COMM HOSP BOWL 2707451500 800 PARK STREET BOWLING GREEN KY 42102 RONALD G SOWELL 2011-01-19 true 2707810111 2009 2016-02-24 21:20:13Z THE MEDICAL CENTER John Desmarais 800 PARK STREET BOWLING GREEN KY 421029876 535679589 false X www.mcbg.org X 1977 KY PROVIDES INPATIENT AND OUTPATIENT ACUTE CARE SERVICES BY OR UNDER THE SUPERVISION OF PHYSICIANS IN BOWLING GREEN & SCOTTSVILLE, KENTUCKY AND IN THE SURROUNDING COUNTIES. 12 6 2558 112 5338599 310593 55217 264181353 267280544 998719 604716 11453879 11827604 276944544 279768081 138061 0 0 111709608 113930634 0 0 144899734 147040881 256747403 260971515 20197141 18796566 251981358 268513169 181894670 161898740 70086688 106614429 BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL PROVIDES INPATIENT AND OUTPATIENT ACUTE CARE AND NURSING FACILITY HEALTHCARE SERVICES BY OR UNDER THE SUPERVISION OF PHYSICIANS, DIAGNOSTIC AND THERAPEUTIC SERVICES FOR MEDICAL DIAGNOSiS, TREATMENT, AND CARE OF INJURED, DISABLED, OR SICK PERSONS, OR REHABILITATION OF INJURED, DISABLED, OR SICK PERSONS IN BOWLING GREEN AND SCOTTSVILLE, KENTUCKY AND IN THE SURROUNDING COUNTIES IN SOUTHCENTRAL KENTUCKY. false false 127911036 151856495 THE HOSPITAL IS AN ACUTE CARE HOSPITAL ENGAGED IN PROVIDING TO INPATIENTS, BY OR UNDER THE SUPERVISION OF PHYSICIANS, DIAGNOSTIC AND THERAPEUTIC SERVICES FOR MEDICAL DIAGNOSIS, TREATMENT, AND CARE OF INJURED, DISABLED, OR SICK PERSONS, OR REHABILITATION OF INJURED, DISABLED, OR SICK PERSONS. PLEASE SEE SCHEDULE O FOR FURTHER INFORMATION. 97223433 115424049 THE HOSPITAL SERVES THE COMMUNITY BY PROVIDING CERTAIN OUTPATIENT SERVICES, INCLUDING AN EMERGENCY DEPARTMENT, BY OR UNDER THE SUPERVISION OF PHYSICIANS, DIAGNOSTIC AND THERAPEUTIC SERVICES FOR MEDICAL DIAGNOSIS, TREATMENT, AND CARE OF INJURED, DISABLED, OR SICK PERSONS, OR REHABILITATION OF INJURED, DISABLED, OR SICK PERSONS. 225134469 true true false true false true false false true true false true false false false false false false false false true false false true true false false false false false false false true true true false false false false true true true false false true 180 0 true 2558 true true true false false false false false false false false 12 6 false false false false true true false true true false true true true true true true true true true true false KY X LARRY VAUGHN 2707451500 800 PARK STREET BOWLING GREEN KY 42102 BOB HOVIOUS 1.0 X X 0 0 0 PAUL COOK 1.0 X X 0 0 0 JANET JOHNSON 1.0 X 0 0 0 JOE NATCHER 1.0 X X 0 0 0 DONNA BLACKBURN 1.0 X 0 0 0 CURTIS SULLIVAN 1.0 X 0 0 0 ELI JACKSON III DMD 1.0 X 0 0 0 CATHY BISHOP 1.0 X 0 0 0 HUGH SIMS MD 1.0 X 0 0 0 KAL SAHETYA MD 1.0 X 0 0 0 MARK BIGLER MD 1.0 X 0 0 0 JOHN DESMARAIS 1.0 X X 0 509012 122998 CONNIE SMITH 1.0 X 0 440837 26267 SARAH MOORE 40.0 X 0 196453 47845 BETSY KULLMAN 40.0 X 0 215552 67064 BARBARA JEAN CHERRY 1.0 X 0 372918 39517 RONALD G SOWELL 1.0 X 0 383979 42036 ERIC HAGAN 40.0 X 155275 0 29332 KATHLEEN RILEY 40.0 X 155765 0 51973 DAVID REEVES 40.0 X 161583 0 27703 WADE R STONE 40.0 X 167367 0 24407 LLOYD ASP 40.0 X 182966 0 79061 CHARLES C PEARSON 40.0 X 158380 0 24242 981336 2118751 582445 26 false true false ARAMARK CTS INC 12483 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 BIOMED EQUIP REPAIR 3035763 WEHR CONSTRUCTORS INC 2517 PLANTSIDE DRIVE LOUISVILLE KY 40929 CONSTRUCTION SERVICE 6479372 MORRISON MANAGEMENT SPECIALIST INC PO BOX 102289 ATLANTA GA 30368 CAFETERIA 1427213 HOSPITAL CARE CONSULTANTS INC 17304 PRESTON ROAD SUITE 555 DALLAS TX 75252 ED PHYSICIANS 679673 PROFESSIONAL SURGICAL ASSIST 1945 SCOTTSVILLE ROAD BOWLING GREEN KY 42104 SURGICAL ASSISTANT 723159 26 37120 18097 55217 INPATIENT SERVICES 621110 151856495 151856495 OUTPATIENT SERVICES 621400 115424049 115424049 267280544 1629121 1629121 0 0 2101705 2581529 -479824 -479824 -479824 252295074 10500 253272942 57037 -977868 -46537 -1024405 0 0 0 RETAIL PHARMACY SALES 446110 4236625 4236625 MEDICAL EQUIPMENT SALES 453000 3340256 2238282 1101974 CONTRACT LABOR 900099 1448247 1448247 3282300 3282300 12307428 279768081 274249373 5338599 1149297 0 0 0 0 184607 184607 0 0 84647751 80113961 4533790 6915397 6516016 399381 15897294 14979188 918106 6285585 5921870 363715 13336400 50000 13286400 785740 785740 224287 224287 13707 13707 0 0 16592828 16592828 629611 116335 513276 68660816 64619398 4041418 0 0 3613975 3077453 536522 587984 493273 94711 0 0 4470497 2846294 1624203 0 13025384 9602155 3423229 1870130 1774086 96044 BAD DEBT EXPENSE 12979854 12979854 LAUNDRY EXPENSE 1314975 1314498 477 OTHER TAXES AND LICENSES 4073935 4008505 65430 PHYSICIAN PRACTICE EXPENSES 4281622 4281622 RECRUITING FEES 208086 845 207241 371050 127910 243140 260971515 225134469 35837046 0 11414978 10362710 78663305 85268782 26966058 28873594 5350695 5610284 2445707 2479928 276755913 173861182 90639154 102894731 27362014 23075711 2516417 2629369 6623030 7318060 251981358 268513169 19016547 29005877 231756 941789 104670000 101445000 11726472 9237575 46249895 21268499 181894670 161898740 X 68956600 105261495 1130088 1352934 70086688 106614429 251981358 268513169 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 13707 false false false 13707 LOBBYING EXPENSES SCHEDULE C, PART II-B, LINE f THE CORPORATION IS A MEMBER OF THE KENTUCKY HOSPITAL ASSOCIATION. THE PORTION OF THE DUES PAID WHICH ARE ATTRIBUTABLE TO LOBBYING TOTAL $13,707. 1 0 1 1 0.00 0 71881958 6761029 9206992 -713721 177575 88386125 67604167 24386804 -6555166 13553847 71881958 0.98460 0.01540 false false 7840206 7840206 112025929 62653522 49372407 4930413 3425401 1505012 151959365 107782259 44177106 102894731 0 INVESTMENT - RATE SWAP 3/2008 3496694 ACCRUED RETIREMENT, LONG-TERM 17771805 21268499 ENDOWMENT FUNDS SCH D, PART V, LINE 4 THE MEDICAL CENTER'S ENDOWMENT CONSISTS OF FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. THE ENDOWMENT INCLUDES BOTH DONOR-RESTRICTED ENDOWMENT FUNDS AND FUNDS DESIGNATED BY THE BOARD OF DIRECTORS TO FUNCTION AS ENDOWMENTS (BOARD-DESIGNATED ENDOWMENT FUNDS). AS REQUIRED BY GAAP, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING BOARD-DESIGNATED ENDOWMENT FUNDS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. UNRESTRICTED NET ASSETS INCLUDED $87,033,191 OF BOARD-DESIGNATED ENDOWMENT FUNDS FOR FUTURE CAPITAL IMPROVEMENTS AND OTHER PURPOSES AS DETERMINED BY THE BOARD OF DIRECTORS. PERMANENTLY RESTRICTED NET ASSETS INCLUDED $1,352,934 OF DONOR-RESTRICTED ENDOWMENT FUNDS. INCOME TAX STATUS SCH D, PART X, LINE 2 MOST OF THE INCOME RECEIVED BY THE MEDICAL CENTER IS EXEMPT FROM TAXATION UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE. SOME OF ITS INCOME IS SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. THE MEDICAL CENTER FILES FEDERAL INCOME TAX RETURNS, AS WELL AS AN INCOME TAX RETURN IN KENTUCKY. THE MEDICAL CENTER IS NO LONGER SUBJECT TO U.S. FEDERAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2007. FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION TOPIC 740 CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN A COMPANY'S FINANCIAL STATEMENTS AND PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN, OR EXPECTED TO BE TAKEN IN A TAX RETURN. TOPIC 740 ALSO PROVIDES GUIDANCE ON DESCRIPTION, CLASSIFICATION, INTEREST AND PENALTIES, ACCOUNTING IN INTERIM PERIODS, DISCLOSURE AND TRANSITION. THE MEDICAL CENTER DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS RECOGNIZED FOR 2010 OR 2009. THE MEDICAL CENTER'S PRACTICE IS TO RECOGNIZE INTEREST AND/OR PENALTIES RELATED TO INCOME TAX MATTERS IN INCOME TAX EXPENSE. CONSERVATION EASEMENTS SCHEDULE D, PART II BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL INDIRECTLY HELD A CONSERVATION EASEMENT THROUGH AN INVESTMENT PARTNERSHIP. LIMITED INFORMATION IS AVAILABLE RELATED TO THE CONSERVATION EASEMENT AND THE FMV OF THE EASMENT ALLOCATED TO BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL WAS $ 674. BOWLING GREEN WARREN COMMUNITY HOSPITAL DOES NOT HAVE A POLICY REGARDING MONITORING, INSPECTION AND ENFORCEMENT OF CONSERVATION EASEMENTS NOR DOES IT INCUR STAFF HOURS OR EXPENSES RELATED TO MONITORING, INSPECTING AND ENFORCING CONSERVATION EASEMENTS. THE CONSERVATION EASEMENT IS NOT ACCOUNTED FOR SEPARATELY IN THE FINANCIAL STATEMENTS. BECAUSE IT IS INDIRECTLY HELD THROUGH AN INVESTMENT, IT IS INCLUDED IN THE BALANCE SHEET VALUE OF INVESTMENTS AND INVESTMENT INCOME. true true X true X false true true true false true true 1 6395 13315917 3572224 9743693 0.03930 1 31885175 26918010 4967165 0.00020 2 6395 45201092 30490234 14710858 0.03950 356 42275 2567897 2567897 0.01040 9 865 2996281 2996281 0.01210 3 14060 13159756 7885088 5274668 0.02130 255 61295 61295 0.00020 623 57200 18785229 7885088 10900141 0.04400 625 63595 63986321 38375322 25610999 0.08350 4 2360 2360 1 3250 3250 5 5610 5610 true 3297573 888221 96379632 108463017 -12083385 X true true THE MEDICAL CENTER BOWLING GREEN CAMPUS

800 PARK STREET BOWLING GREEN KY 42101

X X X X THE MEDICAL CENTER SCOTTSVILLE CAMPUS

456 BURNLEY ROAD SCOTTSVILLE KY 42164

X X X X X NURSING FACILITY THE INCOME LIMIT FOR CHARITY CARE IS 200% OF THE FEDERAL POVERTY LEVEL. DISCOUNTS ARE PROVIDED TO ALL PATIENTS WHO ARE UNINSURED WHOSE INCOME EXCEEDS THE LIMITS TO QUALIFY FOR CHARITY CARE. SELF-PAY DISCOUNTS ARE NOT LIMITED BASED ON INCOME. THE HOSPITAL ALSO PROVIDES PAYMENT PLANS FOR SELF-PAY PATIENTS. THE ANNUAL REPORT TO THE COMMUNITY IS MADE AVAILABLE TO THE PUBLIC VIA NEWSPAPER INSERTS, DIRECT MAILINGS, AND IS POSTED ON THE MEDICAL CENTER'S WEBSITE AT WWW.MCBG.ORG. COST OF CHARITY CARE WAS CALCULATED WITH A COST TO CHARGE RATIO USING WORKSHEET 2. THE COSTS RELATED TO MEDICAID PATIENTS WAS DETERMINED USING THE HOSPITAL COST ACCOUNTING SYSTEM. FOR SUBSIDIZED SERVICES THE HOSPITAL'S COST ACCOUNTING SYSTEM IS USED TO DETERMINE COSTS RELATED TO THE SPECIFIC SERVICE EXCLUDING TRADITIONAL MEDICAID AND MEDICAID MANAGED PATIENTS. COSTS FOR CHARITY AND BAD DEBT ACCOUNTS ARE DEDUCTED USING A RATIO OF COST TO CHARGE SPECIFIC TO THAT SUBSIDIZED SERVICE. COSTS FOR OTHER PROGRAMS REFLECT THE DIRECT AND INDIRECT COSTS OF PROVIDING THOSE PROGRAMS. THE AMOUNTS ARE DETERMINED BY MULTIPLYING REVENUE BY THE MEDICARE COST TO CHARGE RATIO. BAD DEBTS INCLUDED IN PART IX, LINE 25 TOTALED $12,979,854. THIS AMOUNT HAS BEEN REMOVED FROM TOTAL EXPENSES CALCULATED IN COLUMN F ON SCHEDULE H, PART I AND II. THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS DO NOT CONTAIN A FOOTNOTE THAT DESCRIBES BAD DEBT EXPENSE. BAD DEBT IS CLASSIFIED AS AN OPERATING EXPENSE. THIS TREATMENT IS CONSISTENT WITH THE HFMA PRINCIPLES AND PRACTICE BOARD STATEMENT NO. 15 AND WITH THE AICPA AUDIT AND ACCOUNTING GUIDE FOR HEALTH CARE ORGANIZATIONS. The amount on line 2 was computed by multiplying the bad debt expense by the medicare cost to charge ratio. COSTS REPORTED ON LINE 6 ARE OBTAINED FROM THE MEDICARE COST REPORT WHICH ARE BASED ON A COST TO CHARGE RATIO. THE MEDICAL CENTER PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THEIR CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN THEIR ESTABLISHED RATES. BECAUSE THE MEDICAL CENTER DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, REVENUE IS NOT RECORDED FOR SUCH SERVICES. THE MEDICAL CENTER MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE THEY PROVIDE. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FORGONE FOR SERVICES AND SUPPLIES FURNISHED UNDER THEIR CHARITY CARE POLICY. OTHER UNCOMPENSATED CARE RELATES PRINCIPALLY TO CONTRACTUAL ALLOWANCES FOR GOVERNMENT PAYERS, DISCOUNTS TAKEN BY COMMERCIAL PAYERS AND BAD DEBTS. BENEFITS FOR THE POOR INCLUDE SERVICES PROVIDED TO PERSONS WHO CANNOT AFFORD HEALTH CARE BECAUSE OF INADEQUATE RESOURCES OR WHO ARE UNINSURED. THIS INCLUDES TRADITIONAL CHARITY CARE AT STANDARD BILLING RATES AND THE COSTS OF TREATING MEDICAID BENEFICIARIES IN EXCESS OF GOVERNMENT PAYMENTS. THE MEDICAL CENTER DOES NOT PURSUE THE COLLECTION OF AMOUNTS DETERMINED TO BE TRADITIONAL CHARITY CARE. THEREFORE, THESE AMOUNTS ARE NOT INCLUDED IN NET PATIENT SERVICE REVENUE. THE MEDICAL CENTER IS BUILT UPON THE FOUNDATION OF SERVING OUR COMMUNITY, DAY IN AND DAY OUT, WITH QUALITY DEPENDABLE HEALTHCARE. THE MEDICAL CENTER HAS NOT HISTORICALLY COMPLETED FORMAL HEALTH NEEDS ASSESSMENTS; HOWEVER, AS NEEDS ARISE IN THE COMMUNITY AND SURROUNDING COUNTIES, THE MEDICAL CENTER RESPONDS. The Medical Center is part of an integrated healthcare Delivery system as described in Question 7 below. The multiple facilities including the Commonwealth Health Free Clinic are evidence of the Medical Center's committment to responding to Health needs in our community and the surrounding rural counties. UPON REGISTRATION, PATIENTS ARE PROVIDED A PATIENT HANDBOOK WHICH CONTAINS INFORMATION REGARDING FINANCIAL ASSISTANCE. ADDITIONALLY, SIGNAGE AND BROCHURES DESCRIBING FINANCIAL ASSISTANCE POLICIES ARE AVAILABLE AT ADMISSIONS AREAS. EACH PATIENT WILL RECEIVE A STATEMENT REFERRED TO AS A FIRST NOTICE. THE FIRST NOTICE STATES THAT IT IS NOT A BILL, BUT IT IS SUMMARY OF THE PATIENT'S CHARGES. THIS NOTICE AND EACH SUBSEQUENT STATEMENT CONTAINS INFORMATION CONCERNING FINANCIAL ASSISTANCE AS WELL AS CONTACT INFORMATION FOR QUESTIONS. THE MEDICAL CENTER ALSO MAINTAINS A WEBSITE FOR BILLING AND COLLECTIONS QUESTIONS. FINANCIAL ASSISTANCE POLICIES ARE POSTED TO THIS WEBSITE AS WELL AS FREQUENTLY ASKED QUESTIONS REGARDING BILLINGS. BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL CORPORATION(THE MEDICAL CENTER) IS DESIGNATED AS A REGIONAL REFERRAL CENTER BY THE BARREN RIVER REGIONAL HEALTH PLANNING COUNCIL, AN AGENCY OF THE COMMONWEALTH OF KENTUCKY. THE MEDICAL CENTER SERVES PATIENTS THROUGHOUT AN AREA COMPRISING TEN COUNTIES, CALLED THE BARREN RIVER AREA DEVELOPMENT DISTRICT (THE DISTRICT), IN SOUTH CENTRAL KENTUCKY. THE POPULATION OF THE MEDICAL CENTER'S PRIMARY SERVICE AREA IS APPROXIMATELY 280,000 PEOPLE. THE COMMUNITY IS GROWING AND WE ALSO SERVE A GROWING UNINSURED AND UNDERINSURED POPULATION. THERE ARE TWO ACUTE CARE HOSPITALS IN THE COMMUNITY. THE PERCENTAGE OF UNINSURED PERSONS IN THE COUNTIES SERVED BY THE MEDICAL CENTER RANGE FROM 17% TO 25%, WHICH IS HIGHER THAN THE KENTUCKY AVERAGE. 16.38% OF RESIDENTS IN THE DISTRICT ARE IN HOUSEHOLDS BELOW THE FEDERAL POVERTY GUIDELINES. THE THREE HIGHEST POPULATED COUNTIES IN THE DISTRICT ARE WARREN, BARREN AND ALLEN WHOSE AVERAGE MEDIAN HOUSEHOLD INCOME IS $58,866, $49,172 AND $36,097 RESPECTIVELY. APPROXIMATELY 64% OF THE DISTRICT'S POPULATION IS CLASSIFIED AS RURAL. THE PERCENTAGE OF THE POPULATION IN THE COMMUNITY OVER 65 YEARS OLD IS APPROXIMATELY 14%. ACCORDING TO THE EVERYBODY SURVEY CONDUCTED BY THE BARREN RIVER DISTRICT HEALTH DEPARTMENT, THE MOST SERIOUS HEALTH PROBLEMS IN THE COMMUNITY ARE OBESITY, ALCOHOL AND DRUG ADDITION, HEART ATTACK, STROKE, HIGH BLOOD PRESSURE, CANCER AND DIABETES. THIS SURVEY ALSO IDENTIFIED PROBLEM HEALTH BEHAVIORS FOR THE DISTRICT WHICH INCLUDE ALCOHOL AND DRUG ABUSE, NOT ENOUGH PHYSICAL ACTIVITY, TOBACCO USE AND POOR DIET. COMMUNITY BUILDING ACTIVITIES INCLUDE PARTICIPATION IN CHAMBER OF COMMERCE, DOWNTOWN REDEVELOPMENT AND LEADERSHIP BOWLING GREEN. AS A HOSPITAL, THE MEDICAL CENTER: (1) IS ORGANIZED AS A NONPROFIT CHARITABLE ORGANIZATION FOR THE PURPOSE OF OPERATING AS A HOSPITAL FOR THE CARE OF THE SICK, (2) IS OPERATED FOR THE CARE OF ALL PERSONS IN THE COMMUNITY REGARDLESS OF ABILITY TO PAY THE COST THEREOF, EITHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT, (3) WILL NOT RESTRICT USE OF ITS FACILITIES TO A PARTICULAR GROUP OF PHYSICIANS AND SURGEONS TO THE EXCLUSION OF ALL OTHER QUALIFIED DOCTORS, AND (4) WILL NOT PERMIT ANY OF ITS EARNINGS TO INURE DIRECTLY OR INDIRECTLY TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL. BENEFITS FOR THE BROADER COMMUNITY INCLUDE SERVICES PROVIDED TO OTHER NEEDY INDIVIDUALS WHO MAY NOT QUALIFY AS INDIGENT BUT WHO NEED SPECIAL SERVICES AND SUPPORT. EXAMPLES INCLUDE THE ELDERLY, SUBSTANCE ABUSERS, VICTIMS OF CHILD ABUSE, AND THE DISABLED. THEY ALSO INCLUDE THE COST OF HEALTH PROMOTION AND EDUCATION, HEALTH CLINICS AND SCREENINGS, AND THE UNREIMBURSED COST OF MEDICAL TRAINING, WHICH BENEFIT THE BROADER COMMUNITY. IN ADDITION TO THE ABOVE, THE MEDICAL CENTER PROVIDES A WIDE RANGE OF COMMUNITY BENEFITS INCLUDING COORDINATION OF CHARITABLE ACTIVITIES BY MEDICAL CENTER STAFF AND PROVIDING MEDICAL CENTER SPACE FOR COMMUNITY GROUPS THAT CANNOT BE QUANTIFIED. BENEFITS FOR THE POOR INCLUDE SERVICES PROVIDED TO PERSONS WHO CANNOT AFFORD HEALTH CARE BECAUSE OF INADEQUATE RESOURCES OR WHO ARE UNINSURED. THIS INCLUDES TRADITIONAL CHARITY CARE AT STANDARD BILLING RATES AND THE COSTS OF TREATING MEDICAID BENEFICIARIES IN EXCESS OF GOVERNMENT PAYMENTS. THE MEDICAL CENTER DOES NOT PURSUE THE COLLECTION OF AMOUNTS DETERMINED TO BE TRADITIONAL CHARITY CARE. THEREFORE, THESE AMOUNTS ARE NOT INCLUDED IN NET PATIENT SERVICE REVENUE. BENEFITS FOR THE BROADER COMMUNITY INCLUDE SERVICES PROVIDED TO OTHER NEEDY INDIVIDUALS WHO MAY NOT QUALIFY AS INDIGENT BUT WHO NEED SPECIAL SERVICES AND SUPPORT. EXAMPLES INCLUDE THE ELDERLY, SUBSTANCE ABUSERS, VICTIMS OF CHILD ABUSE, AND THE DISABLED. THEY ALSO INCLUDE THE COST OF HEALTH PROMOTION AND EDUCATION, HEALTH CLINICS AND SCREENINGS, AND THE UNREIMBURSED COST OF MEDICAL TRAINING, WHICH BENEFIT THE BROADER COMMUNITY. IN ADDITION TO THE ABOVE, THE MEDICAL CENTER PROVIDES A WIDE RANGE OF COMMUNITY BENEFITS INCLUDING COORDINATION OF CHARITABLE ACTIVITIES BY MEDICAL CENTER STAFF AND PROVIDING MEDICAL CENTER SPACE FOR COMMUNITY GROUPS THAT CANNOT BE QUANTIFIED. COMMONWEALTH HEALTH CORPORATION, INC. AND AFFILIATES BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL CORPORATION ("THE MEDICAL CENTER") IS OWNED AND CONTROLLED BY COMMONWEALTH HEALTH CORPORATION ("CHC). CHC HAS BEEN DETERMINED TO BE A PUBLICLY SUPPORTED ORGANIZATION DESCRIBED IN SECTION 509(A)(3) OF THE CODE AND A CHARITABLE ORGANIZATION AS DESCRIBED IN SECTION 501(C)(3) OF THE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXATION BY VIRTUE OF SECTIONS 501(A) AND 501(C)(3) OF THE CODE. CHC IS A HOLDING COMPANY FOR A TOTAL OF ELEVEN FOR-PROFIT AND NONPROFIT CORPORATIONS AND PARTNERSHIPS (COLLECTIVELY, THE "AFFILIATES") ENGAGED IN VARIOUS ASPECTS OF THE HEALTHCARE INDUSTRY. CHC HAS ESTABLISHED VARIOUS DIVISIONS FOR ITS OPERATIONS, INCLUDING (1) BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL CORPORATION ("THE MEDICAL CENTER"), (2) COMMONWEALTH HEALTH FREE CLINIC, INC., (3) THE MEDICAL CENTER AT FRANKLIN, INC., (4) COMMONWEALTH REGIONAL SPECIALTY HOSPITAL, INC., AND (5) VARIOUS FOR-PROFIT CORPORATIONS AND PARTNERSHIPS. THE MEDICAL CENTER - BOWLING GREEN CAMPUS BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL CORPORATION'S BOWLING GREEN FACILITY IS A GENERAL ACUTE CARE HOSPITAL LICENSED FOR 330 BEDS. IN 1980, THE BOWLING GREEN FACILITY MOVED INTO A NEW, SIX-STORY, STATE-OF-THE-ART FACILITY, OCCUPYING 298,000 SQUARE FEET ON A 17-ACRE CAMPUS. SINCE 1980, BECAUSE OF AN EXPANDING DEMAND FOR OUTPATIENT SERVICES, SEVERAL ADDITIONS TO THE BOWLING GREEN FACILITY HAVE BEEN MADE AND BOTH CLINICAL AND PATIENT AREAS HAVE BEEN RENOVATED AND MODERNIZED. IN 1982, A CANCER TREATMENT CENTER WAS ADDED. IN 1984 AND AGAIN IN 1990, THE OUTPATIENT SERVICE AREA WAS EXPANDED. IN 1985, CHC ASSISTED AN AFFILIATE, COMMONWEALTH MEDICAL PLAZA CORP., IN DEVELOPING A 29,156 SQUARE FOOT MEDICAL OFFICE BUILDING ADJACENT TO THE BOWLING GREEN FACILITY. TODAY, THE MEDICAL CENTER HOLDS AN 83% EQUITY INTEREST IN THE LIMITED PARTNERSHIP THAT OWNS THE BUILDING. IN 1992, A MAGNETIC RESONANCE IMAGING FACILITY WAS ACQUIRED ADJACENT TO THE HOSPITAL CAMPUS. IN 1997, THE MEDICAL CENTER BUILT A 50,000 SQUARE FOOT MEDICAL OFFICE BUILDING ADJACENT TO ITS OUTPATIENT SERVICE AREA. TODAY, THE BOWLING GREEN FACILITY HAS EXPANDED TO APPROXIMATELY 376,000 SQUARE FEET AND ITS CAMPUS HAS DOUBLED IN SIZE THROUGH PURCHASES BY THE THE MEDICAL CENTER AND CHC. IN 2004, THE BOWLING GREEN FACILITY COMPLETED NEW CONSTRUCTION OF APPROXIMATELY 59,500 SQUARE FEET TO HOUSE AN EXPANDED SURGICAL AREA AND A NEW EMERGENCY SERVICES DEPARTMENT. IN ADDITION, RENOVATION OF 23,000 SQUARE FEET OF THE EXISTING FACILITY HAS BEEN COMPLETED TO SERVE THE NEEDS OF A GROWING AND RELOCATED RADIOLOGY SERVICES DEPARTMENT AND SURGICAL AREAS. THE MEDICAL CENTER - SCOTTSVILLE CAMPUS TO MORE FULLY SERVE THE HEALTH NEEDS OF SOUTH CENTRAL KENTUCKY, THE MEDICAL CENTER MERGED IN OCTOBER 1996 WITH AN AFFILIATED ENTITY, HEALTH ENDOWMENT PROPERTIES A-C, INC., A KENTUCKY NON-STOCK, NONPROFIT CORPORATION, WHICH OWNED AND OPERATED THE MEDICAL CENTER AT SCOTTSVILLE (THE "SCOTTSVILLE FACILITY"). THE SCOTTSVILLE FACILITY IS COMPRISED OF A 25-BED CRITICAL ACCESS HOSPITAL AND 110 NURSING CARE BEDS. THESE BEDS ARE LOCATED IN A 76,000 SQUARE FOOT BUILDING OPENED IN 1996 ON APPROXIMATELY 13 ACRES OF LAND IN ALLEN COUNTY, NEAR SCOTTSVILLE, KENTUCKY. IN ADDITION, CHC ENDORSED THE ESTABLISHMENT OF COMMONWEALTH HEALTH FOUNDATION ("THE FOUNDATION") FOR THE PURPOSE OF FOSTERING, SUPPORTING AND INITIATING ACTIVITIES FOR THE ADVANCEMENT OF THE HEALTH CARE OBJECTIVES OF CHC AND THE MEDICAL CENTER AND/OR AFFILIATED NON-PROFIT 501(C)(3) ORGANIZATIONS. THE CHAIRMAN OF CHC'S BOARD OF DIRECTORS, CHC'S PRESIDENT AND CEO, AND THE CHIEF FINANCIAL OFFICER OF THE MEDICAL CENTER SERVE AS EX OFFICIO DIRECTORS OF THE FOUNDATION. THEY ALL THREE ARE COUNTED FOR QUORUM PURPOSES AND HAVE THE RIGHTS AND PRIVILEGES OF OTHER DIRECTORS INCLUDING THE RIGHT TO VOTE ON ALL MATTERS PROPERLY BEFORE THE BOARD. COMMONWEALTH HEALTH FREE CLINIC, INC. ("CHFC") WAS ORGANIZED TO OPERATE A CLINIC, WHICH PROVIDES BASIC MEDICAL AND DENTAL DIAGNOSTIC AND TREATMENT SERVICES FOR CHARITABLE PURPOSES FOR THE "WORKING POOR" OF SOUTH-CENTRAL KENTUCKY. THE "WORKING POOR" ARE THOSE INDIVIDUALS WHO HAVE DONE THEIR BEST TO STAY IN THE WORK FORCE BUT DO NOT HAVE INSURANCE OR ANY FORM OF SOCIAL ASSISTANCE AND DO NOT HAVE THE MEANS TO PAY FOR THEIR HEALTHCARE. CHFC OFFERS SERVICES INCLUDING: NON-EMERGENCY CLINICAL SERVICES, DENTISTRY, SENIOR CITIZEN'S PHARMACEUTICAL PROGRAM, COMMUNITY HEALTH EDUCATION AND COUNSELING, DISEASE/CONDITION SPECIFIC EDUCATION AND COUNSELING. IN ADDITION, THE DENTAL PROGRAM HAS BEEN EXPANDED TO INCLUDE INDIVIDUALS WITH INCOME AT OR BELOW 225% OF FEDERAL POVERTY GUIDELINES. COMMONWEALTH REGIONAL SPECIALTY HOSPITAL IS A LONG-TERM ACUTE CARE HOSPITAL THAT OPERATES AS A HOSPITAL WITHIN A HOSPITAL BY LEASING 28 BEDS FROM THE MEDICAL CENTER ON THE MEDICAL CENTER'S BOWLING GREEN CAMPUS. IT IS AN ACUTE CARE HOSPITAL FOR THOSE PATIENTS REQUIRING AN EXTENDED HOSPITAL STAY (ANTICIPATED LENGTH OF STAY BETWEEN 18-35 DAYS) AND GENERALLY HAVING COMPLEX OR CHRONIC MEDICAL CONDITIONS. THE MEDICAL CENTER AT FRANKLIN, INC. ("MCF") OPERATES A HOSPITAL IN THE COMMUNITY OF FRANKLIN, SIMPSON COUNTY, KENTUCKY. THIS LOCATION IS JUST 20 MILES FROM THE MEDICAL CENTER'S BOWLING GREEN CAMPUS. MCF IS A MEDICARE DESIGNATED CRITICAL ACCESS HOSPITAL OFFERING ACUTE CARE INPATIENT AND OUTPATIENT PROGRAMS IN ITS 25 BED ACUTE CARE FACILITY. CHC'S FOR-PROFIT ACTIVITIES CENTER AROUND URGENTCARE OF BOWLING GREEN, INC. ("URGENTCARE"). URGENTCARE IS A WHOLLY-OWNED CORPORATION WHICH SERVES AS A 50% OWNER IN A PRIMARY CARE CENTER. CHC OWNS AND OPERATES SEVERAL PHYSICIAN PRACTICES EMPLOYING GENERAL PRACTITIONERS, CARDIAC SURGEONS, VASCULAR SURGEONS, NEUROLOGISTS, OBSTETRIC/GYNECOLOGISTS, AND PSYCHIATRISTS. IN ADDITION, CHC OPERATES AND PROVIDES VARIOUS CORPORATE SUPPORT SERVICES INCLUDING PATIENT BILLING, COLLECTIONS, PRINTING, MICROFILMING, ACCOUNTING, MATERIALS MANAGEMENT, ENGINEERING, SECURITY, HUMAN RESOURCES, INFORMATION SYSTEMS, AND ADMINISTRATIVE SUPPORT. CHC HAS ACQUIRED THE PHYSICIAN PRACTICES IN ORDER TO ATTRACT AND RETAIN HIGHLY SKILLED PHYSICIANS IN SPECIALTIES THAT SUPPORT THE MISSION OF CHC AND ITS AFFILIATES. SINCE 1990, CHC'S WHOLLY-OWNED CENTERCARE HEALTH BENEFITS PROGRAM ("CENTERCARE"), A PREFERRED PROVIDER ORGANIZATION (PPO), HAS ASSISTED EMPLOYERS IN MANAGING THE RISING COST OF THEIR HEALTHCARE. THE PPO OFFERS EMPLOYER GROUPS IN THIS REGION A COMPREHENSIVE NETWORK OF PHYSICIANS AND FACILITIES WITH GREATER COST SAVINGS POTENTIAL THAN OTHER NATIONAL ORGANIZATIONS. TODAY, CENTERCARE SERVICES OVER 105,000 MEMBERS BY PROVIDING ACCESS TO OVER 12,000 PROVIDERS AND 150+ HOSPITALS IN KENTUCKY, TENNESSEE, INDIANA, OHIO, AND ILLINOIS. RESPIRATORY THERAPISTS ARE AVAILABLE 24 HOURS PER DAY / 7 DAYS PER WEEK. X X X X false true false false false false false false false JOHN DESMARAIS 0 446275 0 0 0 62737 0 112900 0 10098 0 632010 0 0 CONNIE SMITH 0 361321 0 0 0 79516 0 17730 0 8537 0 467104 0 0 SARAH MOORE 0 187635 0 0 0 8818 0 41376 0 6469 0 244298 0 0 BETSY KULLMAN 0 206337 0 0 0 9215 0 54102 0 12962 0 282616 0 0 BARBARA JEAN CHERRY 0 331123 0 0 0 41795 0 23528 0 15989 0 412435 0 0 RONALD G SOWELL 0 334365 0 0 0 49614 0 29247 0 12789 0 426015 0 0 KATHLEEN RILEY 152208 0 0 0 3557 0 46244 0 5729 0 207738 0 0 0 DAVID REEVES 160650 0 0 0 933 0 8156 0 19547 0 189286 0 0 0 WADE R STONE 165392 0 0 0 1975 0 6677 0 17730 0 191774 0 0 0 LLOYD ASP 180492 0 0 0 2474 0 66746 0 12315 0 262027 0 0 0 ERIC HAGAN 154363 0 0 0 912 0 9356 0 19976 0 184607 0 0 0 CHARLES C PEARSON 129866 0 0 0 28514 0 7279 0 16963 0 182622 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J, PART I, LINE 4B CERTAIN EXECUTIVES OF COMMONWEALTH HEATH CORPORATION PARTICIPATE IN A SUPPLEMENTAL RETIREMENT PLAN. THE CURRENT YEAR INCREASE IN THE ACCRUED BENEFIT, AS ACTUARIALLY DETERMINED, IS REPORTED AS COMPENSATION. THE FOLLOWING ARE THE INDIVIDUALS PARTICIPATING IN THE PLAN AND THE CURRENT YEAR INCREASES REPORTED AS COMPENSATION: JOHN DESMARAIS $25,122, CONNIE SMITH $44,240, RONALD SOWELL $40,422, AND JEAN CHERRY $30,670. COUNTY OF WARREN KENTUCKY 616000710 934864AA7 2008-03-20 77010000 See Schedule O false false COUNTY OF WARREN KENTUCKY 616000710 934860BT3 2007-03-15 30885000 See Schedule O false false 77010000 4826038 42174965 3539477 26469520 true false false true 31867132 2133000 29096790 637343 true false true true false true true false true 0.02800 0.00000 0.02800 true false false false false true 0.02100 0.02100 true false true true DEUTCHE BANK 30. false false false false false false false false false SOUTHERN FOODS INC JOE NATCHER, OWNER OF SFI 593778 FOOD SERVICE - SEE SCH O GRAVES GILBERT CLINIC RON SOWELL, OFFICER 420150 LEASING - SEE SCH O GRAVES GILBERT CLINIC RON SOWELL, OFFICER 247488 PHYSICIAN SERVICES-SEE SCH O AIRGAS MID-AMERICA B JEAN CHERRY, OFFICER 172379 MEDICAL SUPPLIES - SEE SCH O KAL SAHETYA DIRECTOR 107946 LEASING - SEE SCH O KIMBERLY JACKSON ELI JACKSON, DIRECTOR 19413 COMP OF WIFE - SEE SCH O ERIN DEMARAIS JOHN DEMARAIS, OFFICER 38895 COMP OF DAUGHTER - SEE SCH O STEPHANIE BLACKBURN DONNA BLACKBURN, DIRECTOR 49757 COMP OF DTR-IN-LAW - SEE SCH O RONNIE MOORE SARAH MOORE, OFFICER 75225 COMP OF HUSBAND - SEE SCH 0 PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A ORGANIZATION BOWLING GREEN - WARREN COUNTY COMMUNITY HOSPITAL CORPORATION, DBA THE MEDICAL CENTER ("THE MEDICAL CENTER"), A KENTUCKY NON-STOCK, NON-PROFIT CORPORATION EXEMPT FROM INCOME TAXES UNDER SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE OF 1986, WAS ESTABLISHED TO ACT AND OPERATE EXCLUSIVELY FOR CHARITABLE PURPOSES SERVING THE LOCAL CITY, COUNTY AND SURROUNDING COUNTIES IN SOUTH-CENTRAL KENTUCKY. BEGUN IN 1926, THE MEDICAL CENTER HAS A RICH HERITAGE OF SERVING OUR COMMUNITY'S HEALTHCARE NEEDS AND BEING THE LEADER IN PROVIDING QUALITY CARE IN A TECHNOLOGICALLY ADVANCED SETTING. THE MEDICAL CENTER IS LICENSED BY THE CABINET FOR HEALTH AND FAMILY SERVICES, COMMONWEALTH OF KENTUCKY, PURSUANT TO KRS CHAPTER 216B AND THE REGULATIONS PROMULGATED THEREUNDER. OPERATING WITH CAMPUSES IN BOWLING GREEN, KY AND SCOTTSVILLE, KY, THE MEDICAL CENTER LICENSED BEDS INCLUDE: BOWLING SCOTTS- GREEN VILLE TOTAL ----- ------ ----- ACUTE CARE 301 301 CRITICAL ACCESS ACUTE 25 25 PSYCHIATRIC 36 36 NURSING FACILITY 110 110 ------ ------ ----- SUBTOTAL - BEDS 337 135 472 SERVICES --------- THE MEDICAL CENTER IS PRIMARILY ENGAGED IN PROVIDING TO INPATIENTS, BY OR UNDER THE SUPERVISION OF PHYSICIANS, DIAGNOSTIC AND THERAPEUTIC SERVICES FOR MEDICAL DIAGNOSIS, TREATMENT, AND CARE OF INJURED, DISABLED, OR SICK PERSONS, OR REHABILITATION SERVICES FOR THE REHABILITATION OF INJURED, DISABLED, OR SICK PERSONS. AS A HOSPITAL, IT MAINTAINS CLINICAL RECORDS ON ALL PATIENTS AND HAS BYLAWS IN EFFECT CONCERNING ITS STAFF OF PHYSICIANS. IT REQUIRES THAT EVERY PATIENT MUST BE UNDER THE CARE OF A PHYSICIAN AND PROVIDES 24-HOUR NURSING SERVICE BY OR SUPERVISED BY A REGISTERED PROFESSIONAL NURSE, AND HAS A LICENSED PRACTICAL NURSE OR REGISTERED PROFESSIONAL NURSE ON DUTY AT ALL TIMES. IT HAS IN EFFECT A HOSPITAL UTILIZATION REVIEW PLAN AND IS LICENSED OR IS APPROVED BY THE STATE OF KENTUCKY AS MEETING THE STANDARDS ESTABLISHED FOR SUCH LICENSING. IT ALSO MEETS OTHER HEALTH AND SAFETY REQUIREMENTS OF THE SECRETARY OF HEALTH AND HUMAN SERVICES. SERVICES OFFERED INCLUDE: - ACUTE MEDICAL CARE - SKILLED MEDICAL CARE - INTENSIVE/CORONARY CARE - PHARMACY - INVASIVE CARDIOLOGY - PHYSICAL THERAPY - LABORATORY, CLINICAL AND PATHOLOGY - RADIATION MEDICINE (INPATIENT / OUTPATIENT ONCOLOGY) - HOME HEALTH SERVICES - SURGICAL INPATIENT SERVICES - SURGICAL OUTPATIENT SERVICES - EMERGENCY ROOM SERVICES - OUTPATIENT SERVICES - RESPIRATORY THERAPY SERVICES - RADIOLOGY, INCLUDING MAMMOGRAPHY, DIAGNOSTIC X-RAY, NUCLEAR MEDICINE, CAT SCANNING, ULTRASOUND, CARDIOLOGY, POSITRON EMISSION TOMOGRAPHY THE MEDICAL CENTER'S PROFESSIONAL STAFF INCLUDES PHYSICIANS WHO ARE ENGAGED IN THE PRACTICE OF MEDICINE AND WHO REPRESENT MULTIPLE SPECIALTIES, INCLUDING FAMILY PRACTICE AND EMERGENCY CARE. THE STAFF ALSO INCLUDES NURSES, PHYSICAL, OCCUPATIONAL, AND SPEECH THERAPISTS, PSYCHOLOGISTS, RESPIRATORY THERAPISTS, NUTRITIONISTS AND OTHERS. USING AN INTERDISCIPLINARY TEAM APPROACH, THE STAFF WORK COLLABORATIVELY TO PROVIDE PRIMARY OUTPATIENT CARE, RENDERED IN AN EMERGENCY ROOM AND OUTPATIENT SETTING, AND SECONDARY CARE CONSISTING OF INPATIENT SERVICES OF A GENERAL AND SPECIALIZED NATURE. COMMUNITY BENEFIT AND CHARITY ------------------------------ AS A HOSPITAL, THE MEDICAL CENTER: (1) IS ORGANIZED AS A NONPROFIT CHARITABLE ORGANIZATION FOR THE PURPOSE OF OPERATING AS A HOSPITAL FOR THE CARE OF THE SICK, (2) IS OPERATED FOR THE CARE OF ALL PERSONS IN THE COMMUNITY REGARDLESS OF ABILITY TO PAY THE COST THEREOF, EITHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT, (3) WILL NOT RESTRICT USE OF ITS FACILITIES TO A PARTICULAR GROUP OF PHYSICIANS AND SURGEONS TO THE EXCLUSION OF ALL OTHER QUALIFIED DOCTORS, AND (4) WILL NOT PERMIT ANY OF ITS EARNINGS TO INURE DIRECTLY OR INDIRECTLY TO THE BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL. THE MEDICAL CENTER PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER THEIR CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN THEIR ESTABLISHED RATES. BECAUSE THE MEDICAL CENTER DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, REVENUE IS NOT RECORDED FOR SUCH SERVICES. THE MEDICAL CENTER MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE THEY PROVIDE. THESE RECORDS INCLUDE THE AMOUNT OF CHARGES FORGONE FOR SERVICES AND SUPPLIES FURNISHED UNDER THEIR CHARITY CARE POLICY. OTHER UNCOMPENSATED CARE RELATES PRINCIPALLY TO CONTRACTUAL ALLOWANCES FOR GOVERNMENT PAYERS, DISCOUNTS TAKEN BY COMMERCIAL PAYERS AND BAD DEBTS. BENEFITS FOR THE POOR INCLUDE SERVICES PROVIDED TO PERSONS WHO CANNOT AFFORD HEALTH CARE BECAUSE OF INADEQUATE RESOURCES OR WHO ARE UNINSURED. THIS INCLUDES TRADITIONAL CHARITY CARE AT STANDARD BILLING RATES AND THE COSTS OF TREATING MEDICAID BENEFICIARIES IN EXCESS OF GOVERNMENT PAYMENTS. THE MEDICAL CENTER DOES NOT PURSUE THE COLLECTION OF AMOUNTS DETERMINED TO BE TRADITIONAL CHARITY CARE. THEREFORE, THESE AMOUNTS ARE NOT INCLUDED IN NET PATIENT SERVICE REVENUE. BENEFITS FOR THE BROADER COMMUNITY INCLUDE SERVICES PROVIDED TO OTHER NEEDY INDIVIDUALS WHO MAY NOT QUALIFY AS INDIGENT BUT WHO NEED SPECIAL SERVICES AND SUPPORT. EXAMPLES INCLUDE THE ELDERLY, SUBSTANCE ABUSERS, VICTIMS OF CHILD ABUSE, AND THE DISABLED. THEY ALSO INCLUDE THE COST OF HEALTH PROMOTION AND EDUCATION, HEALTH CLINICS AND SCREENINGS, AND THE UNREIMBURSED COST OF MEDICAL TRAINING, WHICH BENEFIT THE BROADER COMMUNITY. IN ADDITION TO THE ABOVE, THE MEDICAL CENTER PROVIDES A WIDE RANGE OF COMMUNITY BENEFITS INCLUDING COORDINATION OF CHARITABLE ACTIVITIES BY THE MEDICAL CENTER STAFF AND PROVIDING MEDICAL CENTER SPACE FOR COMMUNITY GROUPS THAT CANNOT BE QUANTIFIED. SIGNIFICANT PROGRAM SERVICE ACHIEVEMENTS DAYS OF ACUTE PATIENT CARE (INCLUDING NURSERY) 86,489 DAYS OF SKILLED NURSING CARE 38,750 BIRTHS 2,364 OPEN HEART PROCEDURES 265 SURGERIES 13,735 EMERGENCY ROOM VISITS 52,521 AMBULANCE RUNS 18,305 AUDITED FINANCIAL STATEMENTS FORM 990, PART IV, line 12 THE FINANCIAL STATEMENTS OF BOWLING GREEN WARREN COUNTY COMMUNITY HOSPITAL CORPORATION, INC. ARE AUDITED ON A CONSOLIDATED BASIS BY AN INDEPENDENT ACCOUNTING FIRM. UPON CONCLUSION OF THE AUDIT, A REPORT IS PREPARED AND PUBLISHED IN ACCORDANCE WITH GAAP. CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, SECTION A, LINE 6 ARTICLE 2 OF THE BYLAWS IDENTIFIES COMMONWEALTH HEALTH CORPORATION BOARD OF DIRECTORS AS THE MEMBER. CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, SECTION A, LINE 7A ARTICLE 2 OF THE BYLAWS SAYS THE MEMBER SHALL APPOINT A NOMINATING COMMITTEE WHICH SHALL MEET AND DESIGNATE NOMINEES FOR ALL POSITIONS TO BE FILLED BY APPOINTMENT BY THE MEMBER. PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS PLACED ELECTRONICALLY ON A COMPANY WEBSITE USED TO SHARE INFORMATION WITH BOARD MEMBERS. EACH BOARD MEMBER IS PROVIDED ACCESS TO THIS WEBSITE AND IS ASKED TO REVIEW FORM 990 PRIOR TO A DESIGNATED DATE ON WHICH THE RETURN WILL BE FILED. AT LEAST TWO WEEKS OF ADVANCE NOTICE IS GIVEN TO BOARD MEMBERS SO THEY MAY REVIEW THE RETURN. PROCESS FOR MONITORING THE CONFLICT ON INTEREST POLICY FORM 990, Part VI, SECTION B, LINE 12c THE COMMONWEALTH HEALTH CORPORATION (CHC) (APPLICABLE TO THE CORPORATION AND/OR ITS AFFILIATES) CODE OF CONDUCT EXPLICITLY STATES MEMBERS OF THE BOARD, ADMINISTRATION, THE MEDICAL STAFF AND ALL EMPLOYEES ARE EXPECTED TO AVOID CONFLICTS OF INTEREST. FURTHER, IT REQUIRES DISCLOSURE OF ANY POTENTIAL CONFLICTS OF INTEREST IN A TIMELY MANNER. ALL INDIVIDUALS SIGN AN ACKNOWLEDGEMENT UPON EMPLOYMENT THAT THEY HAVE RECEIVED A COPY OF THE CODE OF CONDUCT, ARE FAMILIAR WITH ITS CONTENT AND UNDERSTAND THEIR RESPONSIBILITIES TO AVOID NON-COMPLIANT ACTIVITY. CHC'S REGULATORY COMPLIANCE COMMITTEE (RCC) REVIEWS AND APPROVES ALL CONTRACTS FOR CHC AND/OR ITS AFFILIATES. THE REVIEW IS DESIGNED TO IDENTIFY POTENTIAL CONFLICTS OF INTEREST BY BOARD MEMBERS AND/OR OFFICERS. RCC MEMBERS ARE PROHIBITED FROM TAKING PART IN DECISIONS REGARDING TRANSACTIONS WITH WHICH HE/SHE HAS A CONFLICT OF INTEREST. ANNUALLY, WRITTEN INQUIRY IS MADE BY QUESTIONNAIRE OF BOARD MEMBERS AND OFFICERS SEEKING DISCLOSURE OF CONFLICTS OF INTEREST OR INFORMATION THAT RELATES TO FAMILY MEMBERS. TRANSACTIONS ARISING ARE REVIEWED BY MANAGEMENT AS THEY OCCUR. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINES 15A AND 15B COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER IS SET BY THE REGULATORY COMPLIANCE COMMITTEE (RCC) OF THE BOARD OF DIRECTORS. COMPENSATION FOR OFFICERS OF THE CORPORATION IS REVIEWED BY THE SAME COMMITTEE. THE RCC RETAINS AN INDEPENDENT CONSULTANT TO CONDUCT ANNUAL SURVEYS OF COMPENSATION FOR SIMILAR POSITIONS IN THE HEALTHCARE INDUSTRY AND USES ITS REPORT IN ITS COMPENSATION DECISION. MAKING DOCUMENTS AVAILABLE TO THE PUBLIC FORM 990, PART VI, LINE 19 DOCUMENTS ARE MADE AVAILABLE IF REQUIRED AND IN THE MANNER REQUIRED BY GOVERNING AGENCY OR BOND AUTHORITY. HOURS DEVOTED TO RELATED ORGANIZATIONS FORM 990, PART VII, SECTION A, COLUMN B THE FOLLOWING DIRECTORS AND/OR OFFICERS ARE PAID BY COMMONWEALTH HEALTH CORPORATION AS FULL TIME EMPLOYEES. IT IS ESTIMATED THAT THEIR AVERAGE HOURS PER WEEK, AS REPORTED ON THE COMMONWEALTH HEALTH CORPORATION'S FORM 990, PART VII ARE 40 HOURS. HOWEVER, THEIR TOTAL HOURS DEVOTED ON A SYSTEM-WIDE BASIS WOULD BE IN EXCESS OF 40. JOHN DESMARAIS CONNIE D. SMITH BARBARA JEAN CHERRY RONALD G. SOWELL BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS SCHEDULE L PART IV JOE NATCHER, DIRECTOR FOR BOWLING GREEN-WARREN COUNTY COMMUNITY HOSPITAL CORPORATION ("THE MEDICAL CENTER"), IS THE OWNER OF SOUTHERN FOODS, INC., A FOOD SERVICE DISTRIBUTOR. SOUTHERN FOODS, INC. SUPPLIES BCWCCHC WITH FOOD AND RELATED ITEMS. ALL TRANSACTIONS ARE CONDUCTED ON AN ARMS LENGTH BASIS. RONALD SOWELL IS AN OFFICER OF THE MEDICAL CENTER. MR. SOWELL'S WIFE, DR. DEBRA SOWELL, IS THE MEDICAL DIRECTOR OF GRAVES GILBERT CLINIC (GGC). THE MEDICAL CENTER LEASES PROPERTY TO GGC AND ALSO PURCHASES PHYSICIAN SERVICES FROM THEM. ALL TRANSACTIONS ARE CONDUCTED ON AN ARMS LENGTH BASIS. BARBARA JEAN CHERRY IS AN EXECUTIVE VICE PRESIDENT FOR THE MEDICAL CENTER. MRS. CHERRY'S SPOUSE IS THE CHIEF FINANCIAL OFFICER OF AIRGAS MID-AMERICA. AIRGAS MID-AMERICA SUPPLIES MEDICAL GAS TO THE MEDICAL CENTER. JEAN CHERRY DOES NOT PARTICIPATE IN THE NEGOTIATIONS OF CONTRACTS WITH AIRGAS MID-AMERICA AND ALL TRANSACTIONS ARE CONDUCTED ON AN ARM'S LENGTH BASIS. DR. KAL SAHETYA IS A DIRECTOR OF THE MEDICAL CENTER. DR. SAHETYA RENTS SPACE AT MEDICAL PLAZA PARTNERS, LTD, A PARTNERSHIP MORE THAN 80% OWNED BY THE MEDICAL CENTER. ALL TRANSACTIONS ARE CONDUCTED ON AN ARMS LENGTH BASIS. JOHN DESMARAIS SERVES AS PRESIDENT OF THE MEDICAL CENTER. MR. DESMARAIS' DAUGHTER, ERIN DESMARAIS, IS EMPLOYED BY THE MEDICAL CENTER. DONNA BLACKBURN SERVES AS A DIRECTOR OF THE MEDICAL CENTER. MS. BLACKBURN'S DAUGHTER-IN-LAW, STEPHANIE BLACKBURN, IS EMPLOYED BY THE MEDICAL CENTER. ELI JACKSON SERVES AS A DIRECTOR OF THE MEDICAL CENTER. MR. JACKSON'S WIFE, KIMBERLY JACKSON, IS EMPLOYED BY THE MEDICAL CENTER. SARAH MOORE SERVES AS AN OFFICER OF THE MEDICAL CENTER. MS. MOORE'S HUSBAND, RONNIE MOORE, IS EMPLOYED BY THE MEDICAL CENTER. DESCRIPTION OF PURPOSE SCHEDULE K, PART I - BOND ISSUES, LINE A, COLUMN F - DESCRIP OF PURPOSE TO (1) REFUND THE OUTSTANDING PRINCIPAL AMOUNT OF THE ISSUER'S HOSPITAL REVENUE BONDS, SERIES 1998 (BOWLING GREEN-WARREN COUNTY COMMUNITY HOSPITAL CORPORATION) ISSUED ON JANUARY 15, 1998, (2) FINANCE THE COSTS OF MAJOR FACILITY ADDITIONS, INTERIOR RENOVATIONS, EQUIPMENT, AND FURNISHINGS AND SITE DEVELOPMENT AT THE MEDICAL CENTER AT BOWLING GREEN, (3) FUND A DEBT SERVICE RESERVE FUND FOR THE BONDS, (4) FUND INTEREST ON THE BONDS. AND (5) PAY COSTS OF ISSUING THE BONDS. FORM 990, SCHEDULE K, PART I - BOND ISSUES, LINE B, COLUMN (F) DESCRIPTION OF PURPOSE. TO (1) CURRENTLY REFUND VARIABLE RATE DEMAND HOSPITAL REVENUE BONDS, SERIES 2001 (BOWLING GREEN-WARREN COUNTY COMMUNITY HOSPITAL CORPORATION PROJECT) THAT WERE ISSUED ON AUGUST 2, 2001, (2) FUND A DEBT SERVICE RESERVE FUND FOR THE BONDS, AND (3) PAY COSTS OF ISSUING THE BONDS. BONDS, AND (3) PAY COSTS OF ISSUING THE BONDS. 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