2011-05-11T16:42:52-07:00 2010-06-30 990 2009-07-01 231352208 SACRED HEART HOSPITAL SACR 6107764500 421 Chew Street Allentown PA 181023490 John Nespoli 6107764502 2011-05-11 2009 2016-02-24 21:20:13Z John Nespoli 421 Chew Street Allentown PA 181023490 106939105 0 X www.shh.org X 1917 PA See Schedule O 10 6 1235 340 0 0 1155552 1309609 103974066 102214799 -864606 490691 2856423 2752242 107121435 106767341 0 0 0 0 53400531 48406537 0 54 90303 57563384 57570368 110963915 105976959 -3842480 790382 73115611 66662229 59259022 55373139 13856589 11289090 See Schedule O 0 0 89139995 1309609 102214799 Patient Care: In the fiscal year ending 6-30-10 34,171 days of Inpatient services were provided to 5,906 Inpatients and more than 165,000 occasions of service were provided to Outpatients. 0 0 0 89139995 1 1 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 1 32 0 1 1235 1 0 0 0 0 0 1 1 0 0 0 0 0 10 6 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X X Chrisanne Katkovcin 6107765150 421 Chew St Allentown PA 181023490 Brent Peters 0 X 0 0 0 Robert Zentz 0 X 0 0 0 Dr Loretta Keil 0 X 0 0 0 Dr Anthony Auteri 0 X 0 0 0 James Fronheiser 0 X 0 0 0 Msgr John Grabish 0 X 0 0 0 William Scharle 0 X 0 0 0 Dr Farhad Sholevar 9 X 128477 0 0 Dr Mahmood Tahir 3 X 30000 0 0 John Nespoli 55 X X X 0 200521 7385 Stephen Lanshe 55 X 0 140856 9941 Dr Richard Martin 40 X 208242 0 14692 Dr Daniel Coller 40 X 164741 0 14386 Dr Mayellen Kistler-Strout 40 X 162587 0 14730 Dr Stanley Yellin 40 X 161525 0 14363 Dr Thomas McGinley 40 X 155321 0 14319 1010893 341377 89816 29 0 1 0 Sodexo Box 360170 Pittsburgh PA 152516170 Food Service 1949304 The Camden Group 100 N Sepulveda Blvd El Segundo CA 90245 Management Consultant 1454681 Navigant Consulting Inc 4880 Paysphere Circle Chicao IL 60674 Management Consultant 746334 Quest Dignostics PO Box 828669 Philadelphia PA 191828669 Lab Testing 598792 HCSC Laundry 2171 28th Street SW Allentown PA 18103 Laundry Service 413382 16 0 0 108808 0 261778 939023 0 1309609 Net Patient Services 622000 102214799 102214799 0 0 0 0 0 0 102214799 490691 0 0 490691 0 0 0 0 0 0 0 0 733465 0 0 0 733465 0 733465 0 0 733465 0 0 0 380629 171764 208865 0 0 208865 Patient Related Services 900099 719616 412224 0 307392 Health Care Related 900099 616796 0 0 616796 Parking 812930 351019 0 0 351019 122481 0 0 122481 1809912 106767341 102627023 0 2830709 0 0 0 0 38598348 35344864 3190465 63019 274536 254609 19186 741 5690493 4783145 893126 14222 3843160 2920013 917887 5260 5671300 1813288 3858012 0 166496 0 166496 0 109055 0 109055 0 54 54 5762533 4417115 1343241 2177 274348 7871 267257 -780 18414920 16339737 2071122 4061 180297 12639 167658 0 2734094 968216 1765878 166962 166815 63 84 83698 51517 32061 120 2107595 2107595 5276776 5276776 2133427 2134597 -1170 Bad Debt Expense 12366842 12366842 0 0 Restructure Expenses 1886752 0 1886752 0 Dues & Subscriptions 216718 155801 59572 1345 Prepaid Finance Expense 18555 18555 0 0 105976959 89139995 16746661 90303 2691570 3197413 0 0 0 0 14155799 13708293 0 0 0 0 0 0 2334010 2136021 1910961 1762020 139992488 106575791 37148900 33416697 0 0 13227675 10642794 740670 822155 906026 976836 73115611 66662229 21593923 21751754 0 0 0 0 0 9943201 9411773 0 27721898 24209612 59259022 55373139 X 11730493 9370284 1220070 941970 906026 976836 13856589 11289090 73115611 66662229 X 1 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2126096 2432752 -235523 0 2404519 0 1918806 2889685 456338 -557188 0 662739 0 2126096 0.44 0.56 0 0 0 1435773 0 1435773 68234099 0 42757852 25476247 0 0 0 0 70275138 0 63817939 6457199 47478 0 0 47478 33416697 Assets Limited to Use - Bond Fund 6244242 F Assets Limited to Use - Funded Depreciation 4325630 F Assets Limited to Use - Workmans Comensation 72922 F 10642794 Investment - Foundation 822155 F 822155 Beneficial Interest in Perpetual Trusts 976836 976836 Capital Lease 1815982 Revenue Bonds 22393630 24209612 106767341 105976959 790382 0 0 0 0 -3127988 -3127988 -2337606 106767341 0 0 0 0 0 106767341 0 0 0 106767341 105976959 0 0 0 0 0 105976959 0 0 0 105976959 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Uncompensated care, hospital specific programs and education, equipment purchase and improvements. SchD_P10_S00_L00 Schedule D, Part X Sacred Heart Hospital is a not-for-profit corporations as described in Section 501(c)(3) of the Internal revenue Code and are exempt form federal income taxes. The Hospital follows the provision for FASB No. 48. SchD_P11_S00_L08 Schedule D, Part XI, Line 8 (3,481,975) Equity transfer to Affiliate - Sacred Heart HealthCare System EIN - 23-2328297 and 353,987 Net Assets Released from restricted for capital purposes. Links to the Heart 65649 65649 0 600 0 0 7203 0 12916 Night of Chance 43159 43159 0 0 0 0 7231 0 3290 0 108808 108808 0 600 0 0 14434 0 16206 31240 -31240 1 1 1 X 1 X 1.5 1 1 0 0 1317506 1317506 0.0141 18775715 11792257 6983458 0.0746 0 0 20093221 11792257 8300964 0.0887 116008 116008 0.0012 4189556 1553400 2636156 0.0282 2108145 1235200 872945 0.0093 7227 26008 -18781 2344 2344 0.00003 0 0 6423280 2814608 3608672 0.03873 0 0 26516501 14606865 11909636 0.12743 665 665 0.00001 1596 1596 0.00002 4988 4988 0.00005 0 0 7249 0 7249 0.00008 1 2851507 1317506 21081147 25064429 -3983282 X 1 1 Sacred Heart Hospital

421 Chew Street Allentown PA 181023490

X X X X With the exception of Line g, the Cost to Charge Ratio, calculated by using Worksheet 2, was applied. For Line g - the actual departmental cost to charge ratio was applied. All of Line 7 g is attributable to clinics. $12,366,842 Bad Debt expense was excluded when calculating the Ratio of Cost to Charges. Accounts receivable, patients are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful collections is estimated based upon a periodic review of the accounts receivable aging, payor classifications and application of historical write-off percentages. The Hospital provides charity care to patients who meet certain criteria without charge or at amounts less than its established rates. Because the Hospital does not pursue collection of amounts determined to qualify as charity care, they are not reported as revenues. The Hospital maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges foregone for services rendered and supplies furnished under its charity care policy. Charges foregone, based on established rates, were $5,714,000 in 2010. Shortfall represents the cost to the Hospital for uncompensated medical services provided to the community. A computerized statement is generated within 21 days after an account has been determined to have a patient liability; with follow-up statements proceeding within 21-day cycles thereafter. P1 21 days-first message, P2 21 days-second message, liabilites over 250 will be telephone dunned, P3 21 days-third message, telephoned a second time, TR 7 days-Transfer to collection agency work list for either reference to collections or additional dunning. The dunners ask the patient for promise to pay and a date. If the patient cannot pay in full, the collector will set up for contract payments with follow up statements based on a schedule. Sacred Heart Hospital currently makes decisions on what community health needs are by analyzing inpatient and outpatient data to determine needs and trends and then responding to that. Examples of this would be the School-Based Health Centers, Parish Nursing Program, Pediatric, Adult and Dental clinics, children's obesity programs, etc. On each the billing statements it states: Sacred Heart Hospital provides free care to persons who qualify. If you cannot afford the cost of your care, you are encouraged to apply for free care by calling 610-776-4566. If the patient calls in, the Hospital would help screen them for Medical Assistance eligibility and refer to ARMDS to do an MA application if appropriate. If the patient doesn't qualify for Medical Assistance the Hospital would request the necessary documentation to determine if eligible for charity. For the patients that do not qualify for medical assistance or charity, the Hospital offers a 25% self pay discount or a payment plan. The admission packet and the hospital's web site also address this. Sacred Heart Hospital is located in the lowest per capita income zip code in Allentown. Over 50% of the population of Allentown is minority. As a school district, Allentown has almost 80% of its students receiving free or reduced lunch eligibility. Many children in Allentown are insured by PA-CHIP or have no insurance because they are illegally here with their family. 80% of inpatients have either government paid insurance (Medicare/Medicaid, MA Managed Care) or are self-pay. 64% of outpatient care is paid by government insurance or self-pay. The examples listed in Needs Assesssment help build our community by improving the health status of children, improving immunization rates, provide care for chronic disease management (asthma, diabetes, obesity). Parish Nursing provides needed access to care for the most indigent of Allentown, including the homeless and undocumented individuals. The Hospital does not have surplus funds because they serve so many government insured patients-hence our designation as a DSH-Disproportionate Share Hospital. The Hospital does, however, cooperate and even collaborate with the other local hospitals on projects important to the community's health. X X X X 0 0 0 0 0 0 0 0 0 John Nespoli 0 200521 0 0 0 0 0 0 0 7385 0 207906 0 0 Stephen Lanshe 0 140442 0 0 0 414 0 0 0 9527 0 150383 0 0 Dr Richard Martin 207062 0 0 0 1180 0 0 0 14692 0 222934 0 0 0 Dr Daniel Coller 163901 0 0 0 840 0 0 0 14386 0 179127 0 0 0 Dr Mayellen Kistler-Strout 162401 0 0 0 186 0 0 0 14370 0 176957 0 0 0 Dr Stanley Yellin 160685 0 0 0 840 0 0 0 14363 0 175888 0 0 0 Dr Thomas McGinley 155199 0 0 0 121 0 0 0 14319 0 169639 0 0 0 J P Morgan Trust Company 2005-12-01 26725000 o refund two series of bonds previously issued. 0 0 30800379 2665158 27467113 0 668108 0 0 2005 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 Dr Farhad Sholevar Pres of Medical Staff 125600 Stipend 0 F990_P03_S00_L00 Form 990, Part III In reference to Part I Line 1 and Part III Line 1 - Sacred Heart HealthCare System is a not-for-profit entity that operates as the parent organization of Sacred Heart Hospital, Sacred Heart Ancillary Services, Inc., and Sacred Heart Realty Corporation. Sacred Heart Hospital, a not-for-profit entity, provides acute care services to the local community. Sacred Heart Ancillary Services Inc. is a Pennsylvania for-profit entity providing pharmacy and infusion services to the general public. Sacred Heart Realty Corporation, a not-for-profit entity, holds real estate. Mission: Sacred Heart HealthCare System is committed to providing health care and wellness, from conception to natural death, through quality services and programs based on the Catholic ethical and religious directives. Our health care network continues its leadership in the community through collaboration and affiliation with recognized regional and national experts. We assure that the system will remain viable by providing cost effective and value-driven services. A program of continuous performance improvement enables us to respond to the needs of the community while giving meaningful employment, education and training to our employees. In fulfilling this mission, Sacred Heart HealthCare System recognizes the dignity and eternal destiny of each individual with special concern for the sick and the poor. Sacred Heart Hospital is located in an area with a high concentration of low income households. As a result the Hospital provides care to a large number of indigent patients. In the fiscal year ending June 30, 2010 patients with Medicaid, MA Managed Care or no insurance at all made up 17% of Sacred Heart's inpatient volume and 32% of its outpatient volume. The Hospital provides charity care to patients who meet certain criteria by providing services at a reduced rate or at no charge at all. In fiscal year 2010 the Hospital wrote off $5.7 million in charges pursuant to its charity care policy. F990_P03_S00_L00a Form 990, Part III (Cont. 1) The Missionary Sisters of the Most Sacred Heart religious order in Germany arrived in Allentown on June 15, 1912 to help care for the sick and injured of the Sacred Heart Parish during a widespread diphtheria outbreak. As diphtheria raged, the Sisters gave dispensary service as well as visiting nurse services. This was the actual "start" of Sacred Heart Hospital. In 1915, the actual founding of Sacred Heart Hospital as a community institution was formalized and dedicated. Two years later, Sacred Heart Hospital was officially incorporated under Pennsylvania law. In 1920, Sacred Heart received approval to train interns and in 1922 was accredited by the American College of Surgeons. Since then, Sacred Heart Hospital has expanded its campus and its reach across our community. Our campus includes a 233-bed Catholic medical center which offers a wide range of advanced medical, surgical and outpatient hospital services. Sacred Heart provides a vast range of specialty services at our 421 Chew Street location in Allentown, including bariatric services, behavioral health, cancer care, cardiac services, emergency services, endovascular services, imaging services, laboratory services, lung & respiratory services, neurodiagnostic testing, neurology, orthopedics, senior services, sleep disorders, stroke care, surgical services, transitional care, women's health and wound care services. In addition to hospital services, Sacred Heart provides an extensive list of medical services outside of the hospital to better meet the needs of our patients and community populations. A network of physician practices throughout Lehigh and Northampton Counties provides complete primary medical care to the region's residents. In addition to the physician practices, Sacred Heart provides access to outpatient services including laboratory, imaging, retail pharmacy, infusion, medical equipment, respiratory and outpatient rehabilitation. Sacred Heart offers outreach to community members in need of care through its' vibrant home health program reaching patients in their home environment after hospitalization or medical care. Sacred Heart's hospice program supports many families with a goal of enabling terminally ill patients, young and old, to live life to the fullest in their homes among family and friends. Through three parish nurses, Sacred Heart impacts congregations of individuals, providing holistic nursing care to faith community members across the life span and facilitates wellness and the promotion of a healing community. Sacred Heart also functions as an educator for parish nurses throughout the Lehigh Valley through the Parish Nursing Coalition of the Greater Lehigh Valley. To help ensure children in our community receive high quality health care, Sacred Heart provides care through seven school-based health centers. Our goal for the centers is to provide accessible and affordable children's health care and to offer health education to the children and their families. These centers are housed in elementary schools in the Allentown School District. In addition to school-based health centers, Sacred Heart offers two pediatric practices to meet the needs of our youngest citizens. Sacred Heart offers a dental clinic to meet increased need for adults and children in our community. Throughout the Sacred Heart HealthCare System 268,100 patients were serviced from July 1, 2009 to June 30, 2010. Sacred Heart HealthCare System is proud to offer residencies and educational programs to physicians and other health care professionals. We offer three residency programs as well as two Lunch & Learn lecture series about geriatrics and various health care topics. Sacred Heart HealthCare System offers Dental Medicine, Family Medicine, and Geriatric Medicine Residency programs. Our Family Medicine Residency program also includes an Osteopathic Medicine Residency option. Sacred Heart HealthCare System is committed to providing high quality health care to all people. We have received recognition in many different areas for our excellence in health care. A sample of these awards and recognitions are below. Primary Stroke Center Certification - Sacred Heart Hospital has been granted Primary Stroke Center Certification by The Joint Commission. The Joint Commission's Certificate of Distinction for Primary Stroke Centers recognizes centers that make exceptional efforts to foster better outcomes for stroke care. Achievement of certification signals that the services Sacred Heart Hospital provides have the critical elements to achieve long-term success in improving outcomes. Transitional Care Facility - Our Transitional Care Facility (TCF) received a "Five Star" rating by the U.S. Centers for Medicare and Medicaid Services. Our TCF was one of only two facilities in Lehigh and Northampton Counties to receive this honor. MossRehab - Our acute rehabilitation unit, MossRehab, holds a three-year accreditation for its Stroke Specialty Inpatient Rehabilitation Program. MossRehab's Stroke Center is one of six Einstein programs recognized as Centers of Excellence. Certified for acute and rehabilitation care, MossRehab has specialty programs in gait and motion analysis, robotic-assisted physical therapy, and aphasia. Center for Cancer Care - The Commission on Cancer (CoC) of the American College of Surgeons (ACoS) granted three-year approval with commendation to the Center for Cancer Care at Sacred Heart Hospital. The CoC recognized the oncology program at Sacred Heart Hospital as offering high-quality cancer care. Only one in four cancer programs at hospitals across the U.S. receives this special approval. It recognizes the quality of Sacred Heart's comprehensive patient care and our commitment to providing patients with access to all of the various medical specialists involved in diagnosing and treating cancer. Imaging Services - All imaging modalities at Sacred Heart Hospital and Northampton Imaging Center have been awarded a three-year term of accreditation in imaging by the American College of Radiology (ACR). Pharmacy -Sacred Heart Pharmacy was granted accreditation for Home Infusion Therapy Services from the Community Health Accreditation Program (CHAP). CHAP is the leader in community-based health care accreditation services in the U.S. and is an alternative to The Joint Commission. CHAP is an independent and non-profit accrediting body. CHAP's goal is for home care to not only prosper but gain strength in the overall health care industry. Vascular Services - Our Vascular Laboratory has been accredited by the Intersocietal Commission for the Accreditation of Vascular Labs (ICAVL) since 1996 and was granted a three-year re-accreditation. Stroke Care -Sacred Heart Hospital received the Get With The Guidelines-Stroke Award for Stroke Recognition. Get With The Guidelines-Stroke (GWTG-Stroke) helps ensure continuous quality improvement of acute stroke treatment and ischemic stroke prevention. It focuses on care team protocols to ensure that patients are treated and discharged appropriately. The program is available for implementation at acute care hospitals nationwide. Cardiovascular Rehabilitation -The Cardiovascular Rehabilitation program is accredited by the American Association of Cardiovascular and Pulmonary Rehabilitation (AACVPR) and was granted a three-year re-accreditation. Osteopathic Medicine Residency Program - Sacred Heart HealthCare System's Osteopathic Medicine Residency Program received a five-year accreditation from the American Osteopathic Association (AOA). The AOA serves as the primary certifying body for D.O.s (osteopathic physicians) and is the accrediting agency for all osteopathic medical colleges and health care facilities. F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 Sacred Heart HealthCare Systems in the sole member. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a Sacred Heart HealthCare System approves the appointment of members of the governing body. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b Sacred Heart HealthCare System approves the appointment of members of the governing body. F990_P06_S0B_L11 Form 990, Part VI, Section B, Line 11 The organization took steps to educate management, member of the Board and members of appropriate subcommittees of the Board on the compliance requirements mandated by the new Form 990. The Form was reviewed by management and then submitted to the Board or a subcommittee thereof which reported its finding to the Board. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c The organization has adopted a Conflict of Interest Policy which sets forth the Organization's conflict of interest policy and processes. Annually, all those serving the Organization in a fiduciary capacity, including Directors, Officers and Key Employees receive a copy of the Policy and annual Disclosure Statements to be completed. In accordance with the policy, those disclosures are reviewed and considered by the Organization's CEO and, as appropriate, the Board. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 On an annual basis the Human Recourses Department of the Organization provides the Board with compensation market data to review and consider with respect to all Key Employees and Officers of the Organization. The Board reviews the market data, approves any salary adjustments for the Executive population, considers both reasonableness and and effectiveness of all remunerative programs and establishes the detailed performance expectations which are incorporated into the Organization's incentive plans. All of these discussions are documented through the provision of meeting minutes. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Organizational Articles of Incorporation Corporate By-Laws, Governance Policies believed to be of interest to the Public, the Conflict of Interest Policy, and IRS Form 990 are available to the Public upon request. SchK_P03_S00_L02 Schedule K, Part III, Line 2 Sacred Heart Hospital will undertake a private use analysis in conjunction with a potential refinancing to occur within the next 12 to 18 months. SchK_P03_S00_L03a Schedule K, Part III, Line 3a Sacred Heart Hospital will undertake a private use analysis in conjunction with a potential refinancing to occur within the next 12 to 18 months. Scred Heart HealthCare Sysytem 421 W Chew Street Allentown PA 181023430 232328297 Provision of medical care PA 501(c)(3) 170(b)(1)(A)(iii) N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0