2011-11-15T15:01:14-06:00 2010-12-31 LUMSDEN & MCCORMICK LLP 403 MAIN ST BUFFALO NY 14203 990 2010-01-01 160743102 OLEAN GENERAL HOSPITAL OLEA 7163732600 515 MAIN STREET OLEAN NY 14760 RICHARD G BRAUN 7163732600 2011-11-16 1 MICHAEL J GRIMALDI 7168563300 2010 2016-03-07 17:11:31Z TIMOTHY J FINAN 515 MAIN STREET OLEAN NY 14760 104325449 0 X WWW.OGH.ORG X 1898 NY THE MISSION OF OLEAN GENERAL HOSPITAL TO PROVIDE EXCELLENT CARE IN RESPONSE TO THE HEALTH CARE NEEDS OF HTE COMMUNITY. IN SUPPORT OF THIS MISSION, OLEAN GENERAL HOSPITAL IS COMMITTED TO THE FOLLOWING:- COMPASSION: OUR SYMPATHETIC AWARENESS OF EACH PERSON'S NEEDS- INTEGRITY: OUR DEDICATION TO HONESTLY- INNOVATION: OUR PURSUIT OF CREATIVITY- RESPECT: OUR COMMITMENT TO TREAT EVERYONE WITH DIGNITY- COMMUNITY: OUR UNDERSTANDING THAT WE EXIST TO SERVE THOSE AMONG US- EDUCATION: OUR BELIEF THAT KNOWLEDGE FOSTERS EXCELLENCE 16 13 1098 275 0 0 588069 575433 93921023 95048771 110108 390078 1485344 1962190 96104544 97976472 0 0 0 0 49311052 50836755 0 0 0 43842296 45348573 93153348 96185328 2951196 1791144 112722453 128808524 39930764 51423931 72791689 77384593 X THE MISSION OF OLEAN GENERAL HOSPITAL IS TO PROVIDE EXCELLENT CARE IN RESPONSE TO THE HEALTH CARE NEEDS OF THE COMMUNITY. IN SUPPORT OF THIS MISSION, OLEAN GENERAL HOSPITAL IS COMMITTED TO THE FOLLOWING:- COMPASSION: OUR SYMPATHETIC AWARENESS OF EACH PERSON'S NEEDS- INTEGRITY: OUR DEDICATION TO HONESTY- INNOVATION: OUR PURSUIT OF CREATIVITY- RESPECT: OUR COMMITMENT TO TREAT EVERYONE WITH DIGNITY- COMMUNITY: OUR UNDERSTANDING THAT WE EXIST TO SERVE THOSE AMONG US- EDUCATION: OUR BELIEF THAT KNOWLEDGE FOSTERS EXCELLENCE 0 0 73931456 96197588 IN 2010, OLEAN GENERAL HOSPITAL DISCHARGED APPROXIMATELY 8,200 PATIENTS AND PROVIDED SERVICES TO ALMOST 160,000 OUTPATIENT VISITORS.INTENSIVISTS-DURING 2010 OGH ADDED AROUND THE CLOCK SPECIALIST COVERAGE IN THE INTENSIVE CARE UNIT (ICU). THE SPECIAL TRAINED EXPERT PHYSICIANS (CALLED INTENSIVISTS) REPRESENT A $1M INVESTMENT IN PROVIDING THE MOST ADVANCED CARE TO THE COMMUNITYS SICKEST PATIENTS. HEALTH LITERATURE POINTS TO A 40% REDUCTION IN ICU MORTALITY WHEN PATIENTS ARE CARED FOR BY INTENSIVISTS. ONLY 15 TO 20% OF HOSPITALS IN THE USA HAVE SUCH COVERAGE.OUTPATIENT SURGERY- DURING 2010 OGH FILED FOR, RECEIVED APPROVAL FOR AND BEGAN CONSTRUCTION ON A $10.4M OUTPATIENT SURGERY CENTER. THIS HOSPITAL-BASED CENTER WILL HOUSE FOUR (4) STATE OF THE ART OUTPATIENT OPERATING ROOMS, THREE ENDOSCOPY ROOMS AND 20 PRIVATE PATIENT STAGING BAYS. IT IS EXPECTED TO OPEN IN JUNE 2012.RENOVATIONS- DURING 2010 OGH INVESTED OVER $2.5M IN RENOVATIONS TO THE NEWBORN/OBSTETRICAL UNITS AND THE INTENSIVE CARE UNIT. THE RENOVATIONS ENSURE OUR PATIENTS HAVE THE MOST MODERN ACCOMMODATIONS IN THE REGION. THESE WERE THE LAST TWO UNITS THROUGHOUT THE ENTIRE HOSPITAL TO BE RENOVATED.HOSPITAL INFORMATION SYSTEM- DURING 2010 OGH SELECTED A NEW HOSPITAL INFORMATION SYSTEM (HIS) AND BEGAN INSTALLATION OF THE SYSTEM. THE $4M INVESTMENT IS CRITICAL TO THE MANAGEMENT OF PATIENT CARE AND INFORMATION AS THE PRODUCT SELECTED INCLUDES AN ELECTRONIC MEDICAL RECORD, COMPUTERIZED MEDICATION RECORDS, COMPUTERIZED PHYSICIAN ORDER ENTRY AND CREATES A COMMON PLATFORM FOR USE BY OGHS SISTER CORPORATION IN UAHS, WHICH WILL YIELD CERTAIN EFFICIENCIES OF OPERATION. 73931456 1 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 167 0 1 1098 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 16 13 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 NY X RICHARD G BRAUN 7163756104 515 MAIN STREET OLEAN NY 14760 LIVINGSTON ALEXANDER 2.00 X 0 0 0 ROBERTA BRUNNER 2.00 X 0 0 0 THOMAS BUFFAMANTE 2.00 X 0 0 0 CARLYLE CONN 2.00 X 0 0 0 MARTIN DIGEL 2.00 X X 0 0 0 DR PIERRE DIONNE 2.00 X 0 0 0 TIMOTHY FINAN 37.50 X X 284744 232972 88645 DR MUHAMMED JAVED 2.00 X X 0 0 0 DANIEL MCCUNE 2.00 X X 0 0 0 DR RICHARD MCDOWELL 2.00 X 0 0 0 DR JILL OWENS 2.00 X 0 0 0 EDWIN PECHT 2.00 X 0 0 0 DAVID PRINCE 15.00 X X 0 0 0 LYNDA QUICK 2.00 X 0 0 0 EDWARD SHARKEY 2.00 X 0 0 0 BRENDA SNOW 2.00 X 0 0 0 DR LUIS GONZALEZ 2.00 X 0 0 0 TIMOTHY MCNAMARA 37.50 X 114465 82889 17522 JASON YAWORSKY 37.50 X 80232 58099 18675 RICHARD BRAUN 37.50 X 136336 111548 22294 RONALD MORNELLI 37.50 X 203183 0 22521 KAREN FOHL 37.50 X 83962 20991 8443 DR WILLIAM MILLS 37.50 X 130017 106378 22542 CATHLEEN WRIGHT 37.50 X 169406 0 6284 DR RICHARD SCOTT 37.50 X 246645 0 16442 DR GARY CARL 37.50 X 457795 0 9052 DR ROBERT KRALL 37.50 X 318858 0 12140 DR MARTHA TYMESON 37.50 X 239722 0 16407 DR GREGORY MCCRAITH 37.50 X 215812 0 11718 JOHN EICHNER 37.50 X 66431 48105 9814 2747608 660982 282499 28 1 1 0 QUEST DIAGNOSTICS INC 2178 COLLECTION CENTER DRIVE CHICAGO IL 60693 LABORATORY SERVICES 895110 TWIN TIERS ADVANCED LLC 2223 WEST STATE STREET OLEAN NY 14760 RADIOLOGY EQUIPMENT LEASE PAYMENTS 826288 EXIGENCE HOSPITALIST MED OF OLEAN 1 JOHN JAMES AUDOBON PARKWAY AMHERST NY 14228 HOSPITALIST SERVICES 785187 ZAFAR MIRZA 1604 GEMINI DRIVE OLEAN NY 14760 ENDOSCOPY SERVICES 773756 DUGGAN & DUGGAN 85 WEST MAIN STREET ALLEGANY NY 14706 CONSTRUCTION SERVICES 451744 26 550433 25000 575433 PATIENT SERVICE REVENU 621990 92469211 92469211 CONTRACT SERVICE REVEN 621990 1517289 1517289 PHYSICIAN SERVICE REVE 621990 1062271 1062271 95048771 257991 257991 201020 201020 201020 201020 6481064 6348977 132087 132087 132087 CAFETERIA/VENDING 722210 612353 612353 DISCOUNTS/REBATES 900099 96601 96601 1052216 1052216 1761170 97976472 96197588 0 1203451 1332314 1332314 37939831 31606213 6333618 2750866 2260918 489948 6044089 4945707 1098382 2769655 2236419 533236 267426 267426 35000 35000 3298398 3298398 14994923 14586802 408121 120502 25182 95320 1329532 930672 398860 6645417 4651792 1993625 1194837 797666 397171 PURCHASED SERVICES 6809215 4507159 2302056 BAD DEBTS 3863130 3863130 OTHER 3517617 1232669 2284948 LEASE/RENT 2806956 2407400 399556 LINEN 465620 444459 21161 96185328 73931456 22253872 0 14329216 12023720 1380440 16053065 6761280 7964115 1716546 1782708 1307442 1519183 109960043 58341239 51999505 51618804 5608185 10285906 6752697 3720037 22867142 23840986 112722453 128808524 20892944 22560199 10550000 5360866 26020898 3126954 2842834 39930764 51423931 X 46425760 50185038 16752155 17199878 9613774 9999677 72791689 77384593 112722453 128808524 X 1791144 2801760 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 13741322 1795143 1473816 -1769797 15240483 12593321 1372764 890168 -1114931 13741322 15120377 966664 -2487704 -1006016 12593321 0.65900 0.21600 0.12400 1 0 1862751 1862751 65144796 31078875 34065921 2927296 2122302 804994 37588366 25140062 12448304 2436834 2436834 51618804 ASSETS HELD BY OTHERS 21945803 OTHER ASSETS 1895183 23840986 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 2842834 2842834 97976472 96185328 1791144 3556662 -754902 2801760 4592904 100778232 3556662 -754902 2801760 97976472 0 97976472 96185328 0 96185328 0 96185328 PART XI, LINE 8 - OTHER ADJUSTMENTS: PENSION LIABILITY ADJUSTMENT -754,902. PART XII, LINE 2D - PENSION LIABILITY ADJUSTMENT = -754,902 1 1 X 1 X 1 X 1 0 1 1 833933 69394 764540 0.00790 14669136 11710444 2958692 0.03080 15503069 11779838 3723232 0.03870 17 6928 112948 0 112948 0.00120 250521 261895 -11374 0.00000 3 0 20 6928 363469 261895 101574 0.00120 20 6928 15866538 12041733 3824806 0.03990 0 1948999 26238013 25711695 526318 X 1 1 1 1 OLEAN GENERAL HOSPITAL

515 MAIN STREET OLEAN NY 14760

X X X X DENTAL CLINIC, RADIATION ONCOLOGY NOT REQUIRED 1 0 0 0 0 0 0 0 0 0 0 0 PART I, LINE 6A: N/A - REPORT FILED BY OGH. PART I, LINE 7G: SUBSIDIZED PROGRAMS ARE NOT RECORDED AT THIS LEVEL OF DETAIL. ALL COSTS ASSOCIATED WITH THESE PROGRAMS, INCLUDING IP PSYCHIATRIC DEPARTMENT, EMERGENCY DEPARTMENT AND SALAMANCA CLINIC ARE INCLUDED IN THE AMOUNTS PROVIDED. PART II: A RECENT PHYSICIAN MANPOWER STUDY DEMONSTRATED THAT THE OLEAN AREA HAS SIGNIFICANT PRIMARY CARE AND SPECIALIST SHORTAGES, RESULTING IN LIMITED ACCESS TO CARE FOR PATIENTS. THERE IS A PRESENT NEED FOR 8.7 PRIMARY CARE PHYSICIANS AND A PROJECTED NEED OF 14.6 BY 2013. THIS COMMUNITY ALSO HAS A SIGNIFICANT NEED FOR SPECIALISTS INCLUDING ORTHOPEDIC SURGEONS, ENT, PSYCHIATRISTS AND UROLOGISTS. OLEAN GENERAL HOSPITAL'S AGGRESSIVE AND SUCCESSFUL RECRUITMENT EFFORTS HAVE RESULTED IN SIGNIFICANTLY INCREASING ACCESS TO CARE FOR THE PATIENTS IT SERVES. PHYSICIANS ARE RECRUITED TO THE HOSPITAL'S SERVICE AREA BY THE EXCELLENCE AND UNIQUENESS OF THE SERVICES OFFERED. SOME OF THE SERVICES AND PROGRAMS THAT SET OLEAN APART FROM OTHER RURAL HOSPITALS INCLUDE THE DENTAL CENTER, PRIMARILY DEVELOPED TO SERVE THE MEDICAID POPULATION; THE WOUND CARE CENTER, SPECIALIZING IN WOUND HEALING AND HYPERBARIC MEDICINE ; AND THE HOSPITALIST PROGRAM, WHICH PROVIDES CONTINUOUS PHYSICIAN COVERAGE FOR INPATIENTS. A GENERAL SURGEON, AN ONCOLOGIST, A PSYCHIATRIST, AND A WOUND CARE/VASCULAR SURGEON WERE ALL RECRUITED TO THE HOSPITAL'S SERVICE AREA IN 2010.THE HOSPITAL ALSO PROVIDES CLINICAL ROTATIONS FOR MEDICAL STUDENTS IN INTERNAL AND EMERGENCY MEDICINE THROUGH AN AFFILLIATION AGREEMENT WITH LAKE ERIE COLLEGE OF OSTEOPATHIC MEDICINE. IN ADDITION, ST BONAVENTURE UNIVERSITY PRE-MEDICAL STUDENTS PARTICIPATE IN A 14 WEEK ROTATION PROVIDING EXPOSURE TO VARIOUS CLINICAL SPECIALTIES AND DIAGNOSTIC MODALITIES, FOR AN INDEPTH EXPOSURE TO THE REALITIES OF A CAREER IN MEDICINE. PART III, LINE 4: THE HOSPITAL PROVIDES AN ALLOWANCE FOR DOUBTFUL COLLECTIONS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION, AND EXISTING ECONOMIC CONDITIONS. DELINQUENT RECEIVABLES ARE GENERALLY WRITTEN OFF BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE PATIENT AND OTHER THIRD-PARTY PAYERS. THE HOSPITAL'S 2010 RCC WAS APPLIED TO THE TOTAL BAD DEBT EXPENSE TO DETERMINE BAD DEBT EXPENSE AT COST. THE BAD DEBT AMOUNTS ABSORBED BY THE HOSPITAL ARE PART OF ITS COMMUNITY BENEFIT DUE TO ITS POLICY TO PROVIDE MEDICAL SERVICE TO THE COMMUNITY REGARDLESS OF THE PATIENT'S ABILITY TO PAY. PART III, LINE 8: THE ALLOWABLE COSTS REPORTED ON LINE 6 ARE DIRECTLY FROM THE HOSPITAL'S 2010 MEDICARE COST REPORT, WHICH IS PREPARED USING A RATIO OF CHARGES TO COSTS BASIS (RCC) AS REQUIRED BY MEDICARE. PART III, LINE 9B: COLLECTION PRACTICES:I) OGH WILL NOT CAUSE THE FORCED SALE OR FORECLOSURE ON A PATIENTS PRIMARY RESIDENCE.II) OGH WILL NOT SEND ACCOUNT TO COLLECTION IF THE PATIENT HAS SUBMITTED A COMPLETED APPLICATION FOR FINANCIAL ASSISTANCE, INCLUDING THE REQUIRED DOCUMENTATION, WHILE AN APPLICATION IS PENDING.III) OGH WILL PROVIDE WRITTEN NOTIFICATION TO A PATIENT AT LEAST 30-DAYS BEFORE AN ACCOUNT IS SENT TO COLLECTION. THIS WRITTEN NOTICE MAY BE INCLUDED ON A BILL. IV) OGH REQUIRES THAT A COLLECTION AGENCY HAVE ITS WRITTEN CONSENT PRIOR TO STARTING LEGAL ACTION FOR COLLECTION.V) OGH WILL TRAIN ALL GENERAL HOSPITAL STAFF WHO INTERACT WITH PATIENTS OR HAVE RESPONSIBILITY FOR BILLING AND COLLECTION.VI) OGH WILL MEASURE OUR COMPLIANCE WITH THESE POLICES.VII) OGH REQUIRES ANY COLLECTION AGENCY UNDER CONTRACT TO FOLLOW OUR FINANCIAL ASSISTANCE POLICY AND PROVIDES INFORMATION TO PATIENTS ON HOW TO APPLY, WHERE APPROPRIATE.VIII)OGH DOES NOT ALLOW COLLECTION ACTIVITY IF THE PATIENT IS DETERMINED ELIGIBLE FOR MEDICAID FOR THE SERVICES THAT WERE RENDERED AND OGH IS ABLE TO COLLECT MEDICAID PAYMENT. PART VI, LINE 2: THE STRATEGIC PLANNING COMMITTEE OF OLEAN GENERAL HOSPITAL IS CHARGED WITH DEVELOPING A LONG-RANGE STRATEGIC PLAN FOR THE HOSPITAL. THE PURPOSE OF THE PLAN IS TO PROVIDE DIRECTION AND CONTEXT FOR HOSPITAL DECISION MAKING AND RESOURCE ALLOCATION CONSISTENT WITH LOCAL HEALTH CARE NEEDS AND MARKET OPPORTUNITIES. TO ACCOMPLISH THIS TASK, THE COMMITTEE CREATED A COMPREHENSIVE, PARTICIPATORY PROCESS TO SOLICIT INPUT FROM ALL LEVELS OF THE ORGANIZATION AND THE COMMUNITY. A MULTI-STEP PLANNING PROCESS WAS INITIATED.STEP 1 INVOLVED THE REVIEW AND REVISION OF THE HOSPITAL'S MISSION AND VISION STATEMENTS. BOTH STATEMENTS WERE MODIFIED FROM WHAT HAD PREVIOUSLY EXISTED. A CONCISE, VALUE DRIVEN MISSION STATEMENT WAS DEVELOPED IN RESPONSE TO THE NEED FOR MISSION STATEMENTS TO DESCRIBE "WHO WE ARE." ADDITIONALLY, SEVERAL CORE VALUES WERE DELINEATED IN SUPPORT OF THE MISSION STATEMENT. THE VISION STATEMENT WAS DEVELOPED IN RESPONSE TO THE QUESTION OF WHAT DO WE WISH TO BECOME WITH THE UNDERSTANDING THAT VISION STATEMENTS SHOULD BE REALISTIC, CREDIBLE, AND POSSESS THE ABILITY TO INSPIRE AND MOTIVATE. STEP 2 IDENTIFIED A SERIES OF CRITICAL ISSUES FACING OLEAN GENERAL HOSPITAL THAT WILL PROVIDE THE CONTEXT FOR THE HOSPITAL'S NEAR TERM OPERATING ENVIRONMENT WITH RESPECT TO CARE DELIVERY, REGULATION, COMPETITION, FINANCE AND KEY PUBLICS. STEP 3 INVOLVED THE DEVELOPMENT OF A COMPREHENSIVE ENVIRONMENTAL ANALYSIS, INCLUDING AN INTERNAL AND EXTERNAL ASSESSMENT OF OLEAN GENERAL HOSPITAL. THE INTERNAL ASSESSMENT WAS PROVIDED VIA MULTIPLE FOCUS GROUPS; OPEN DISCUSSIONS ABOUT THE HOSPITALS STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS. THESE FOCUS GROUPS, FACILITATED BY AN OUTSIDE CONSULTANT RETAINED BY THE HOSPITAL, PROVIDED INPUT FROM PHYSICIANS, EMPLOYEES, VOLUNTEERS AND THE COMMUNITY AND PROVIDED SIGNIFICANT INSIGHT INTO STRENGTHS, WEAKNESSES, AND OPPORTUNITIES FOR IMPROVEMENT. THE EXTERNAL ASSESSMENT WAS DEVELOPED FROM THE COMPILATION OF UTILIZATION, MARKET SHARE DEMOGRAPHIC AND FINANCIAL DATA AND PHYSICIAN WORKFORCE INFORMATION SPECIFIC TO OLEAN GENERAL HOSPITALS SERVICE AREA.STEPS 4, 5 AND 6 IDENTIFIED GOALS, STRATEGIES, AND OBJECTIVES THAT WILL SERVE AS OLEAN GENERAL HOSPITALS PRIORITIES THROUGH 2013. GOALS RESPOND TO THE QUESTION WHAT ARE THE KEY PRIORITIES? A SERIES OF STRATEGIES WERE DEVELOPED WHICH RESPOND TO THE QUESTION HOW DO WE ACHIEVE OUR PRIORITIES? FINALLY, A NUMBER OF SPECIFIC OBJECTIVES WERE DEVELOPED WHICH RESPOND TO THE QUESTION WHAT WILL BE ACCOMPLISHED ANNUALLY? OBJECTIVES WERE GENERATED BY SENIOR MANAGEMENT AND FORM THE BASIS FOR NEAR TERM ADMINISTRATIVE WORKPLANS.ESSENTIAL TO THE SUCCESS OF ANY STRATEGIC PLAN IS THE HOSPITALS ABILITY TO BOTH IMPLEMENT RECOMMENDATIONS MADE WITHIN THE PLAN AND TO RECOGNIZE THE DOCUMENT AS A DYNAMIC AND FLEXIBLE TOOL TO BE USED AS A GUIDE FOR THE FUTURE. SPECIFIC GOALS AND STRATEGIES MAY OR MAY NOT BE OBTAINED AND, UPON EVALUATION AND THE AVAILABILITY OF NEW INFORMATION AND DEVELOPMENTS, MAY NEED TO BE MODIFIED. A SUCCESSFUL STRATEGIC PLAN RECOGNIZES THIS POTENTIAL FOR CHANGE AND IS FLEXIBLE ENOUGH TO ACCOMMODATE NEW OR DIFFERENT OPPORTUNITIES AND CHALLENGES.CRITICAL HEALTH CARE ISSUESTHE RECENTLY ENACTED HEALTHCARE REFORM LEGISLATION UNDERSCORES MANY OF THE SIGNIFICANT ISSUES CURRENTLY FACING HOSPITALS. FOLLOWING IS LISTING OF CRITICAL ISSUES THAT WILL IMPACT HOSPITALS OVER THE NEXT SEVERAL YEARS. 1. QUALITY: HEALTH CARE QUALITY AND SAFETY ARE NOW STRATEGICALLY IMPORTANT, NOT JUST PROFESSIONALLY IMPORTANT. THE ADVENT OF WIDESPREAD PUBLIC REPORTING OF HOSPITAL QUALITY RESULTS ASSURES THAT A HOSPITALS QUALITY PERFORMANCE IS NO LONGER ONLY VISIBLE TO THE DIRECTOR OF QUALITY, QA COMMITTEE MEMBERS AND VARIOUS REGULATORS. THE NET EFFECT OF THIS TRANSPARENCY TREND OVER THE NEXT 5 YEARS WILL BE THAT THE DEFINITION OF A GOOD HOSPITAL WILL SHIFT SIGNIFICANTLY. NO LONGER WILL IT BE ENOUGH TO HAVE ATTRACTIVE FACILITIES, GOOD TECHNOLOGIES AND SKILLED DOCTORS AND NURSES. HOSPITALS WILL NEED TO MARSHAL THOSE RESOURCES INTO A QUALITY AND SAFETY SYSTEM CAPABLE OF RELIABLY PRODUCING MEASURED QUALITY RESULTS. PROVIDER PAYMENTS WILL INCREASINGLY BE A FUNCTION OF QUALITY OUTCOMES AND QUALITY BONUSES WILL BE DRAWN FROM ANNUAL PAYMENT UPDATES. INFORMATION SYSTEMS CAPABLE OF PROVIDING VALID AND RELIABLE QUALITY AND OUTCOME INDICATORS WILL BE A NECESSITY AS WILL THE USE OF EVIDENCE BASED GUIDELINES BY CLINICAL PROVIDERS. CONSUMERS WILL SEEK AND USE PERFORMANCE INFORMATION, INCLUDING PATIENT SATISFACTION INFORMATION, TO GUIDE THEIR CHOICE OF PROVIDERS.2. INFORMATION TECHNOLOGY: HEALTH INFORMATION TECHNOLOGY INCLUDES COMPUTER BASED TOOLS DEVELOPED SPECIFICALLY FOR HEALTH CARE DELIVERY. THESE TOOLS CAN PROVIDE CLINICIANS UP-TO-DATE INFORMATION ON THEIR PATIENTS, ACCESS TO THE LATEST MEDICAL KNOWLEDGE AND BEST PRACTICES THROUGH DECISION SUPPORT SYSTEMS. IT IS UNDERSTOOD THAT INVESTMENTS IN NEW CLINICAL AND INFORMATION TECHNOLOGY CAN SIGNIFICANTLY ENHANCE PATIENT SAFETY AND CLINICAL OUTCOMES. COMPUTERIZED PHYSICIAN ORDER ENTRY (CPOE), BAR CODING AND ITS POTENTIAL TO REDUCE MEDICATION ERRORS, AND ELECTRONIC MEDICAL RECORDS (EMRS) AND THEIR POSITIVE IMPACT ON MEDICAL ERRORS ARE ALL EXAMPLES OF HEALTH CARES USE OF IT SOLUTIONS TO IMPROVE QUALITY. THE FEDERAL GOVERNMENT HAS HIGHLIGHTED THE ROLE OF HEALTH INFORMATION TECHNOLOGY AS A MEANS TO IMPROVE HEALTH CARE QUALITY, SAFETY AND NOW IS PROVIDING STIMULUS AND INCENTIVE PAYMENTS TO PROVIDERS TO FACILITATE AND HASTEN THEIR ADOPTION INTO THE CARE DELIVERY PROCESS. EMRS WILL BECOME A PREREQUISITE OF ANY DELIVERY SYSTEM THAT INTENDS TO PROVIDE COORDINATED COST EFFECTIVE CARE.3. PHYSICIANS: PHYSICIANS HAVE EMERGED AS CRITICAL OPERATIONAL AND STRATEGIC PARTNERS TO HOSPITALS. THOSE THAT ARE SUCCESSFUL IN ENGAGING AND COLLABORATING WITH THEIR MEDICAL STAFFS WILL BE BEST ABLE TO DEMONSTRATE HIGH QUALITY CARE AND COMPLIANCE WITH HEALTH REFORMS VALUE BASED PURCHASING AND OTHER QUALITY MANDATES.ADDITIONALLY, GIVEN THE INCREASE IN DEMAND FOR HEALTHCARE SERVICES THAT WILL BE OCCASIONED BY REFORM, THE ABILITY TO SUCCESSFULLY RECRUIT PHYSICIANS WILL BE CRITICAL. AT A TIME WHEN HEALTHCARE REFORM INITIATIVES EMPHASIZE THE ROLE OF PRIMARY CARE, THERE IS A SPECIAL NEED TO INTENSIFY EFFORTS TO RECRUIT PRIMARY CARE PROVIDERS. BECAUSE THE VAST MAJORITY OF NEW PHYSICIANS PREFER EMPLOYMENT AS THEIR PRACTICE PREFERENCE, THE ABILITY OF HOSPITALS TO BE ABLE TO OFFER PHYSICIANS A CONTEMPORARY AND COMPETITIVE EMPLOYMENT PLATFORM IS ESSENTIAL.4. FINANCE AND CAPITAL: FINANCIAL PERFORMANCE AND ACCESS TO CAPITAL WILL CONTINUE TO BE AMONG THE MOST CRITICAL ISSUES CONFRONTING HOSPITALS. EVEN WITH HEALTHCARE REFORM, HEALTHCARE COSTS WILL CONTINUE TO OUTPACE INFLATION. INCREASING WAGE AND SALARY COSTS, AND RISING HEALTH CARE COSTS IN GENERAL WILL CONTINUE TO IMPACT OPERATING PERFORMANCE AND PRESS HOSPITALS TO CONTINUE A RELENTLESS FOCUS ON COST MANAGEMENT. ADDITIONALLY, REVENUE STRATEGIES WILL NEED TO BE DEVELOPED TO GENERATE PROFITABLE GROWTH IN PATIENT VOLUME, AS WILL THE NEED TO ENSURE OPTIMAL MANAGEMENT OF ALL REVENUE CYCLE ACTIVITIES. HOSPITALS ARE FACING SIGNIFICANT PAYMENT REDUCTIONS IN TERMS OF DECREASES IN MEDICARE UPDATES, DISPROPORTIONATE SHARE, SNF AND HOMECARE PAYMENTS. AS HOSPITALS CONTINUE TO POST LOW OR NO PROFIT MARGINS, INVESTMENT INCOME WILL BE MORE IMPORTANT THAN EVER. HOWEVER, GIVEN THE FACT THAT INVESTMENT INCOME IS A HIGHLY UNCERTAIN COMPONENT OF A HOSPITALS OVERALL FINANCIAL HEALTH, HOSPITALS WILL BE DRIVEN TO PURSUE MORE PHILANTHROPY. HOSPITAL CAPITAL SPENDING WILL BE DRIVEN BY GROWING DEMANDS FOR ADVANCED TECHNOLOGY NEEDED TO ENSURE PATIENT QUALITY AND SAFETY, THE NEED TO REPLACE AND UPDATE AGING FACILITIES, AND THE DESIRE AND NEED TO IMPROVE TECHNOLOGY BASED SERVICES.5. RISK MANAGEMENT AND COMPLIANCE: HEALTHCARES TECHNOLOGY HAS NEVER BEEN MORE COMPLICATED, PATIENTS DEMANDS HIGHER, AND THE BUSINESS CHALLENGES GREATER. ACCORDINGLY, COMPREHENSIVE RISK MANAGEMENT PROGRAM ARE ESSENTIAL IN ASSURING CARE DELIVERY SYSTEMS THAT ARE HIGHLY EFFECTIVE IN TERMS OF ASSURING APPROPRIATE LEVELS OF PATIENT SAFETY AND QUALITY.THE DEPARTMENT OF JUSTICE ESTIMATES THAT THE FEDERAL GOVERNMENT LOSES BILLIONS OF DOLLARS ANNUALLY IN HEALTH CARE FRAUD. CONSEQUENTLY, THE GOVERNMENTS HEALTHCARE FRAUD ENFORCEMENT ACTIVITIES WITH RESPECT TO ALL HEALTHCARE PROVIDERS CONTINUE TO GROW AND EXPAND. WELL ESTABLISHED CORPORATE COMPLIANCE PROGRAMS ARE ESSENTIAL IN TERMS OF ALLOWING HOSPITALS TO IDENTIFY POTENTIAL AREAS OF LIABILITY AND TO CORRECT PROBLEMS.6. NURSING: NURSES AND NURSING CARE ARE CENTRAL TO THE DELIVERY OF SAFE AND EFFECTIVE PATIENT CARE. ACCORDINGLY, ENSURING AN ADEQUATE NURSING WORKFORCE AND CREATING A WORK ENVIRONMENT THAT SUPPORTS NURSING PRACTICE AND INTERDISCIPLINARY COLLABORATION ARE IMPORTANT PRIORITIES FOR HOSPITALS TODAY. THE HIGH RISK NURSING ISSUES CONFRONTING TODAYS(CONTINUED...) PART VI, LINE 3: INSURANCE INFORMATION IS GATHERED DURING THE SCHEDULING AND/OR REGISTRATION PROCESS. IF THE PATIENT INDICATES THAT THEY HAVE NO INSURANCE, REGISTRATION STAFF WILL ASK THE PATIENT FOR PERMISSION TO TRANSFER THEM TO SOUTHERN TIER HEALTHCARE SYSTEMS FOR ASSISTANCE WITH SCREENING FOR ELIGIBILITY FOR GOVERNMENT PROGRAMS (I.E. MEDICAID, CHILD HEALTH PLUS, FAMILY HEALTH PLUS). SOUTHERN TIER HEALTHCARE SYSTEMS' PERSONNEL WILL CONTACT THE PATIENT AND DISCUSS OPTIONS, INCLUDING THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM. ALL REGISTRATION, CARE MANAGEMENT AND BILLING PERSONNEL ARE EDUCATED ABOUT THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM AND CAN DISCUSS AND SHARE INFORMATION WITH PATIENTS AT ANY TIME BEFORE, DURING OR AFTER THE EPISODE OF CARE. BILLING STATEMENTS CONTAIN THE FOLLOWING MESSAGE: IF YOU HAVE ANY QUESTIONS OR WOULD LIKE TO APPLY FOR OUR FINANCIAL ASSISTANCE PROGRAM, PLEASE CALL OUR OFFICE AT ...". THE FINANCIAL ASSISTANCE POLICY IS POSTED ON THE HOSPITAL WEBSITE TO HELP EDUCATE THE PUBLIC. PART VI, LINE 4: OLEAN GENERAL HOSPITAL IS LOCATED IN OLEAN, NY WHICH, WITH A POPULATION OF 15,000, IS THE LARGEST CITY IN CATTARAUGUS COUNTY. THE HOSPITAL SERVES APPROXIMATELY 100,000 RESIDENTS OF THE CITY AND THE SURROUNDING RURAL COUNTIES. AS OF THE 2000 CENSUS, THE POPULATION OF THE AREA WAS DISTRIBUTED AS FOLLOWS: 25% UNDER THE AGE OF 18, 57% AGE 18 TO 64 AND 18% 65 AND OLDER. THE MEDIAN INCOME IN THE AREA WAS $30,400, WHILE PER CAPITAL INCOME WAS $17,169 AND 16% OF THE POPULATION WERE BELOW THE POVERTY LINE, INCLUDING 21% OF THOSE UNDER AGE 18 AND 10% OF THOSE AGE 65 AND OLDER. PART VI, LINE 7: OLEAN GENERAL HOSPITAL IS PART OF THE UPPER ALLEGHENY HEALTH SYSTEM (UAHS), AN INTEGRATION OF TWO REGIONAL HOSPITALS UNDER A COMMON PARENT ORGANIZATION. UAHS HAS A MISSION OF COLLABORATIVE HEALTH CARE IN THE TWO COMMUNITIES SERVED BY THE INTEGRATED HOSPITALS TO MEET THE HEALTH CARE NEEDS OF THE RESIDENTS AND SURROUNDING AREAS. THIS INTEGRATION ALSO ALLOWS BOTH HOSPITALS TO REALIZE MORE ROBUST PURCHASING POWER AND PHYSICIAN RECRUITMENT OPPORTUNITIES THAN EITHER HOSPITAL COULD GENERATE ON THEIR OWN. REPORTS FILED WITH STATES PART VI, LINE 7 NY NEEDS ASSESSMENT (CONTINUED) SCHEDULE H PART V LINE 2 (CONTINUED) HOSPITAL LEADERS FALL INTO 4 MAJOR AREAS: NURSING SUPPLY AND DEMAND, NURSING LEADERSHIP, PRACTICE ENVIRONMENTS, AND THE PIPELINE FOR NURSING FACULTY AND STUDENTS.7. PUBLIC TRUST: PUBLIC OPINION POLLING OVER THE PAST FEW YEARS CONTINUES TO INDICATE SIGNIFICANT ATTRITION IN PUBLIC CONFIDENCE IN THE HEALTH CARE SYSTEM IN GENERAL AND IN HOSPITALS IN PARTICULAR. A CLEAR MAJORITY OF AMERICANS REPORT THEY DO NOT FULLY TRUST HOSPITALS. THIS DECLINE PARALLELS THE NEGATIVE PORTRAYAL OF HOSPITALS IN POPULAR CULTURE AND THE NEWS MEDIA. THE LONGER NEGATIVE IMAGES PERSIST, THE MORE DIFFICULTY HOSPITALS WILL HAVE WITH RESPECT TO RECAPTURING A POSITIVE IMAGE AND IMPROVED TRUST FROM PATIENTS AND THE PUBLIC AT LARGE. X X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 TIMOTHY FINAN 284744 232972 0 0 0 0 38019 31106 10736 8784 333499 272862 0 0 TIMOTHY MCNAMARA 114465 82889 0 0 0 0 1708 1237 8455 6122 124628 90248 0 0 JASON YAWORSKY 80232 58099 0 0 0 0 1218 882 9614 6961 91064 65942 0 0 RICHARD BRAUN 136336 111548 0 0 0 0 2021 1654 10241 8378 148598 121580 0 0 RONALD MORNELLI 203183 0 0 0 0 0 3000 0 19521 0 225704 0 0 0 DR WILLIAM MILLS 130017 106378 0 0 0 0 1941 1588 10457 8556 142415 116522 0 0 CATHLEEN WRIGHT 169406 0 0 0 0 0 0 0 6284 0 175690 0 0 0 DR RICHARD SCOTT 246645 0 0 0 0 0 3675 0 12767 0 263087 0 0 0 DR GARY CARL 457795 0 0 0 0 0 3675 0 5377 0 466847 0 0 0 DR ROBERT KRALL 318858 0 0 0 0 0 3675 0 8465 0 330998 0 0 0 DR MARTHA TYMESON 239722 0 0 0 0 0 3640 0 12767 0 256129 0 0 0 DR GREGORY MCCRAITH 215812 0 0 0 0 0 3253 0 8465 0 227530 0 0 0 JOHN EICHNER 66431 48105 0 0 0 0 1005 728 4687 3394 72123 52227 0 0 FORM 990, PART VI, SECTION A, LINE 3 ENVIRONMENTAL SERVICES FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED BY THE ORGANIZATION'S FINANCE COMMITTEE PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C IN ORDER TO PROTECT THE HOSPITAL'S INTEREST WHEN IT IS CONTEMPLATING ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MAY BENEFIT THE PRIVATE INTEREST OF A DIRECTOR OR OFFICER, PERIODIC REVIEWS ARE CONDUCTED. THE PERIODIC REVIEWS, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE AND ARE THE RESULT OF ARM'S-LENGTH BARGAINING B. WHETHER ACQUISITIONS OR PROPERTY AND SERVICES FROM ANY PERSON RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT C. WHETHER PARTNERSHIP AND JOINT VENTURE ARRANGEMENTS AND ARRANGEMENTS WITH MANAGEMENT SERVICE ORGANIZATIONS (IF ANY) CONFORM TO WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE PAYMENTS FOR GOODS AND SERVICES, FURTHER THE CORPORATION'S CHARITABLE PURPOSES, AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT D. WHETHER AGREEMENTS TO PROVIDE CHARITABLE SERVICES AND AGREEMENTS WITH OTHER SERVICE PROVIDERS AND THIRD PARTIES FURTHER THE CORPORATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OF IMPERMISSIBLE PRIVATE BENEFIT IN CONDUCTING THE PERIODIC REVIEWS, THE HOSPITAL MAY, BUT NEED NOT, USE OUTSIDE ADVISORS. IF OUTSIDE EXPERTS ARE USED, THEIR USE SHALL NOT RELIEVE THE BOARD OF ITS RESPONSIBILITY FOR ENSURING THAT PERIODIC REVIEW ARE CONDUCTED. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE HOSPITAL D/B/A THE EXECUTIVE COMPENSATION COMMITTEE (THE COMMITTEE) IS APPOINTED BY THE BOARD OF DIRECTORS TO ASSIST THE BOARD IN ESTABLISHING AND OVERSEEING THE EXECUTIVE COMPENSATION PROGRAM OF THE HOSPITAL. THE COMMITTEE IS RESPONSIBLE FOR ADHERING TO THE OVERALL COMPENSATION PHILOSOPHY OF THE HOSPITAL. THE COMPENSATION PHILOSOPHY IS A TOTAL COMPENSATION CONCEPT THAT WILL EMPLOY A COMBINATION OF BASE SALARY, VARIABLE OPPORTUNITY, FLEXIBLE BENEFITS, DEFERRED COMPENSATION AND OTHER PERQUISITES AS MAY BE NEEDED FROM TIME TO TIME TO MAINTAIN A COMPETITIVE POSITION WITH PEER INSTITUTIONS IN THE REGION. FORM 990, PART VI, SECTION C, LINE 19 THE HOSPITAL HAS AVAILABLE, UPON REQUEST TO ADMINISTRATION, ITS MOST RECENTLY FILED FORM 990, GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS. THE HOSPITAL ALSO REPORTS ANNUALLY ITS COMMUNITY BENEFIT EFFORTS AND ISSUES ANNUAL REPORT THAT INCLUDES FINANCIAL AND OTHER INFORMATION OF INTEREST TO THE PUBLIC. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 3,556,662. PENSION LIABILITY ADJUSTMENT -754,902. TOTAL TO FORM 990, PART XI, LINE 5: 2,801,760. FORM 990, PART XII, LINE 2C THERE HAVE NOT BEEN ANY CHANGES TO THE AUDIT OVERSIGHT PROCESS IN THE CURRENT YEAR. OLEAN GENERAL HOSPITAL FOUNDATION 515 MAIN STREET OLEAN NY 14760 161497087 FUNDRAISING NY 501(C)(3) LINE 11D, III-O N/A 0 OLEAN GENERAL HEALTHCARE SYSTEMS LLC 85 WOODRIDGE DRIVE AMHERST NY 14228 161544460 PROVIDER OF DURABLE MEDICAL EQUIPMENT, HOME CARE PRODUCTS, AND SERVICES NY N/A OLEAN GENERAL SERVICES CORP 515 MAIN STREET OLEAN NY 14760 161447054 JOINT VENTURE HOLDING COMPANY NY OLEAN GENERAL HOSPITAL C 44917 3448194 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OLEAN GENERAL SERVICES CORPORATION A 214927 FAIR MARKET VALUE OF SERVICES OLEAN GENERAL HOSPITAL FOUNDATION B 71514 FAIR MARKET VALUE OF SERVICES OLEAN GENERAL HOSPITAL FOUNDATION C 1540408 FAIR MARKET VALUE OF SERVICES