2011-11-11T13:07:19-06:00 2010-12-31 990 2010-01-01 363261413 ALLINA HEALTH SYSTEM ALLI 6122620660 PO BOX 43 MR 10890 MINNEAPOLIS MN 554400043 LAURIE M LAFONTAINE 6122620660 2011-11-11 2010 2016-02-24 21:20:13Z KENNETH PAULUS PO BOX 43 MR 10890 MINNEAPOLIS MN 554400043 3086104742 0 X WWW.ALLINA.COM X 1983 MN ALLINA HEALTH SYSTEM (ALLINA) IS DEDICATED TO MEETING THE LIFELONG HEALTHCARE NEEDS OF COMMUNITIES THROUGHOUT MINNESOTA AND WESTERN WISCONSIN. THIS COMMITMENT IS EMBODIED IN OUR MISSION: TO PROVIDE EXCEPTIONAL CARE, AS WE PREVENT ILLNESS, RESTORE HEALTH AND PROVIDE COMFORT TO ALL WHO ENTRUST US WITH THEIR CARE. ALLINA PROVIDES A FULL RANGE OF PRIMARY AND SPECIALTY HEALTH CARE SERVICES INCLUDING TECHNICALLY ADVANCED INPATIENT AND OUTPATIENT CARE, 24-HOUR EMERGENCY CARE, MEDICAL TRANSPORTATION, PHARMACY, LABORATORY, HOME CARE AND HOSPICE SERVICES. BECAUSE OF ITS CHARITABLE MISSION, ALLINA PROVIDES THESE HEALTH CARE SERVICES AS WELL AS EDUCATIONAL AND WELLNESS PROGRAMS TO COMMUNITY MEMBERS REGARDLESS OF THEIR ABILITY TO PAY FOR THE SERVICES. IN 2010, ALLINA PROVIDED $394,884,324 IN DIRECT FINANCIAL SUPPORT, IN-KIND DONATIONS, FREE AND REDUCED-COST MEDICAL CARE AND SERVICES, AND FUNDING FOR PUBLIC HEALTH PROGRAMS TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. 17 16 24415 3593 28372149 2681101 25572270 26220605 2413854101 2512995565 39179487 -1372592 40967334 42159946 2519573192 2580003524 485995 849986 0 0 1258471884 1309093478 66973 41287 4614414 989057155 1049920522 2248082007 2359905273 271491185 220098251 3054603300 3237509549 1756228924 1702238653 1298374376 1535270896 X OUR MISSIONWE SERVE OUR COMMUNITIES BY PROVIDING EXCEPTIONAL CARE, AS WE PREVENT ILLNESS, RESTORE HEALTH AND PROVIDE COMFORT TO ALL WHO ENTRUST US WITH THEIR CARE.OUR VISIONWE WILL: PUT THE PATIENT FIRST; MAKE A DIFFERENCE IN PEOPLES LIVES BY PROVIDING EXCEPTIONAL CARE AND SERVICE; CREATE A HEALING ENVIORNMENT WHERE PASSIONATE PEOPLE THRIVE AND EXCEL; AND LEAD COLLABORATIVE EFFORTS THAT SOLVE OUR COMMUNITY'S HEALTH CARE CHALLENGES.OUR VALUESINTEGRITY, RESPECT, TRUST, COMPASSION AND STEWARDSHIP 0 0 1596695491 849986 2520338886 PROVIDING MEDICAL SERVICESHOSPITAL, MEDICAL AND OTHER HEALTH CARE SERVICESALLINA DELIVERS HIGH QUALITY HOSPITAL, MEDICAL AND OTHER HEALTH CARE SERVICES TO PATIENTS IN MINNESOTA AND WESTERN WISCONSIN. AS A MISSION-DRIVEN ORGANIZATION, ALLINA IS COMMITTED TO IMPROVING THE LIFELONG HEALTHCARE OF THE COMMUNITIES IT SERVES. ALLINA PROVIDES THESE SERVICES TO THE COMMUNITY THROUGH ITS FAMILY OF HOSPITALS WHICH INCLUDE:ABBOTT NORTHWESTERN HOSPITAL - MINNEAPOLIS, MINNESOTALOCATED IN MINNEAPOLIS, ABBOTT NORTHWESTERN IS A NATIONALLY RECOGNIZED HOSPITAL PROVIDING COMPREHENSIVE HEALTH CARE FOR MORE PATIENTS AND THEIR FAMILIES THAN ANY OTHER NOT-FOR-PROFIT HOSPITAL IN MINNESOTA. AMONG THE DISTINGUISHED SERVICES PROVIDED BY ABBOTT NORTHWESTERN ARE CARDIOVASCULAR CARE IN CONJUNCTION WITH THE MINNEAPOLIS HEART INSTITUTE; VIRGINIA PIPER CANCER INSTITUTE AND PIPER BREAST CENTER; MINNEAPOLIS NEUROSCIENCE INSTITUTE; ORTHOPEDIC INSTITUTE; SPINE INSTITUTE; AND WOMENCARE. ABBOTT NORTHWESTERN CONSISTENTLY PLACES IN SOLUCIENT'S TOP 100 CARDIOVASCULAR HOSPITALS AND U.S. NEWS & WORLD REPORT BEST HOSPITALS.UNITED HOSPITAL - ST. PAUL, MINNESOTALOCATED IN DOWNTOWN ST. PAUL, UNITED HOSPITAL IS THE LARGEST HOSPITAL IN THE TWIN CITIES EAST METRO AREA. UNITED HAS A REPUTATION FOR EXCELLENCE IN PATIENT CARE AND STATE-OF-THE-ART FACILITIES, WITH INNOVATIVE PROGRAMS SUCH AS CARDIOVASCULAR SERVICES (INCLUDING NASSEFF HEART CENTER, WOMEN'S HEART CENTER AND VASCULAR CENTER); NASSEFF NEUROSCIENCE CENTER; AND PSYCHIATRY, WOMEN'S HEALTH, SURGICAL, REHABILITATION AND EMERGENCY SERVICES.MERCY HOSPITAL - COON RAPIDS, MINNESOTALOCATED IN COON RAPIDS, MERCY HOSPITAL PROVIDES COMPREHENSIVE AND COMPASSIONATE HEALTH CARE SERVICES TO THE NORTH METRO COMMUNITIES. AMONG THE SERVICES PROVIDING CUTTING-EDGE CARE ARE HEART & VASCULAR CENTER, WOMEN'S HEART CENTER, CANCER CENTER, WOMEN'S & CHILDREN'S SERVICES, EMERGENCY SERVICES, MENTAL HEALTH SERVICES, AND A WIDE RANGE OF HEALTH EDUCATION AND SUPPORT GROUPS. MERCY ALSO SERVES THE COMMUNITY THROUGH ELK RIDGE HEALTH, A SURGERY CENTER AND CLINIC IN ELK RIVER.UNITY HOSPITAL - FRIDLEY, MINNESOTALOCATED IN FRIDLEY, UNITY HOSPITAL PROVIDES A FULL RANGE OF HEALTH CARE SERVICES TO THE NORTH METRO AREA, INCLUDING A RENOWNED BARIATRIC [SURGICAL WEIGHT LOSS] CENTER. OTHER SERVICES INCLUDE THE HEART & VASCULAR CENTER, WOMEN'S & CHILDREN'S SERVICES, EMERGENCY SERVICES AND MENTAL HEALTH SERVICES INCLUDING GERIATRIC MENTAL HEALTH. UNITY ALSO OFFERS A COMPLETE ARRAY OF HEALTH EDUCATION AND SUPPORT GROUPS TO PATIENTS AND THE COMMUNITY.BUFFALO HOSPITAL - BUFFALO, MINNESOTALOCATED IN THE WESTERN METROPOLITAN COMMUNITY OF BUFFALO, BUFFALO HOSPITAL IS AN EVER-EVOLVING REGIONAL MEDICAL CENTER THAT OFFERS STATE OF-THE-ART FACILITIES, PERSONALIZED CARE IN PRIVATE ROOMS AND SERVICES THAT ARE CONTINUOUSLY BEING ADDED AND ENHANCED. IT PROVIDES SPECIALTY SERVICES INCLUDING THE BIRTH CENTER, CARDIAC CENTER, EMERGENCY AND URGENT CARE SERVICES, SLEEP CENTER, PHILLIPS EYE INSTITUTE AND SISTER KENNY REHABILITATION INSTITUTE WITH PATIENT-CENTERED CARE THAT DRIVES ALL DECISIONS TO SUPPORT THE BEST INTERESTS OF ITS PATIENTS.CAMBRIDGE MEDICAL CENTER - CAMBRIDGE, MINNESOTALOCATED IN THE COMMUNITY OF CAMBRIDGE, CAMBRIDGE MEDICAL CENTER (CMC) IS A REGIONAL HEALTH CARE FACILITY PROVIDING COMPREHENSIVE HEALTH CARE SERVICES TO RESIDENTS OF ISANTI COUNTY. THE MEDICAL CENTER IS COMPRISED OF A LARGE MULTI-SPECIALTY CLINIC AND A HOSPITAL ON ONE LARGE CAMPUS. DEDICATED TO MEETING THE NEEDS OF ITS PATIENTS, CMC PROVIDES AN ATMOSPHERE THAT PROMOTES HEALING AND COMFORT.NEW ULM MEDICAL CENTER - NEW ULM, MINNESOTALOCATED IN SOUTH CENTRAL MINNESOTA, NEW ULM MEDICAL CENTER (NUMC) CONSISTS OF A HOSPITAL AND CLINIC THAT SERVES THE REGION IN AND AROUND BROWN COUNTY. NUMC OFFERS AN EXTENSIVE RANGE OF HEALTH CARE OPTIONS, INCLUDING FAMILY PRACTICE, INTERNAL MEDICINE, GENERAL SURGERY, PEDIATRICS, ORTHOPEDICS, OBSTETRICS AND GYNECOLOGY, RADIOLOGY, EMERGENCY MEDICINE, PSYCHIATRY, ORAL AND MAXILLOFACIAL SURGERY, PODIATRY, MENTAL HEALTH AND SUBSTANCE ABUSE, HOME CARE AND HOSPICE. AS A FULLY INVOLVED MEMBER OF ITS COMMUNITY, NUMC CONTINUALLY FOSTERS AN ATMOSPHERE OF WELL BEING OUTSIDE ITS FOUR WALLS THROUGH A VARIETY OF COMMUNITY-FOCUSED INITIATIVES.OWATONNA HOSPITAL - OWATONNA, MINNESOTALOCATED SOUTH OF THE TWIN CITIES METROPOLITAN AREA, OWATONNA HOSPITAL PROVIDES COMPREHENSIVE CARE TO PATIENTS IN AND AROUND STEELE COUNTY. THE HOSPITAL OFFERS A FULL RANGE OF INPATIENT, OUTPATIENT AND EMERGENCY CARE SERVICES, AS WELL AS HOME AND PALLIATIVE CARE AND HOSPICE. OWATONNA HOSPITAL HAS HELPED TO MAKE A POSITIVE DIFFERENCE IN THE LIVES OF ITS PATIENTS AND THE COMMUNITY FOR MORE THAN 100 YEARS.PHILLIPS EYE INSTITUTE - MINNEAPOLIS, MINNESOTALOCATED IN MINNEAPOLIS, PHILLIPS EYE INSTITUTE (PEI) IS THE THIRD LARGEST SPECIALTY HOSPITAL IN THE U.S., SPECIALIZING IN THE DIAGNOSIS, TREATMENT AND CARE OF EYE DISORDERS AND DISEASES. PEI DRAWS PATIENTS FROM A FIVE-STATE REGION WITH AN EXTENSIVE ARRAY OF SERVICES, RANGING FROM DIAGNOSTIC TESTS AND VISION REHABILITATION TO LASER EYE TREATMENTS AND SPECIALIZED EYE SURGERY.RIVER FALLS AREA HOSPITAL - RIVER FALLS, WISCONSINLOCATED IN WESTERN WISCONSIN, RIVER FALLS AREA HOSPITAL IS PART OF A SHARED MEDICAL CAMPUS THAT PROVIDES EASY ACCESS TO HOSPITAL SERVICES AS WELL AS PRIMARY CARE AND SPECIALTY CLINICS, A LONG-TERM CARE FACILITY AND A WELLNESS AND FITNESS CENTER. RIVER FALLS AREA HOSPITAL OFFERS CARDIOVASCULAR CARE, EMERGENCY AND SURGICAL SERVICES, BIRTH CENTER, HOME CARE AND HOSPICE SERVICES.ALLINA ALSO OPERATES SERVICE LINES WHICH INCLUDE:HOME CARE, HOSPICE AND PALLIATIVE CAREHOME OXYGEN AND MEDICAL EQUIPMENTMEDICAL LABORATORIESMEDICAL TRANSPORTATION PHARMACYPHYSICAL REHABILITATIONIN 2010, ALLINA EXPENDED ALMOST $2 BILLION TO PROVIDE SERVICES TO PATIENTS THAT INCLUDED OVER 109,000 INPATIENT ADMISSIONS AND OVER 1,100,000 HOSPITAL OUTPATIENT VISITS. THERE WERE NEARLY 250,000 EMERGENCY CARE VISITS, 193,000 HOME CARE AND HOSPICE VISITS, AND OVER 11,600 BIRTHS AT ALLINA HOSPITALS. FOR MORE INFORMATION PLEASE VISIT HTTP://WWW.ALLINA.COM.SUBSIDIZED HEALTH SERVICESALLINA SUBSIDIZES CERTAIN NECESSARY HEALTH CARE SERVICES, WHICH INCLUDE 24-HOUR EMERGENCY SERVICES TO THE COMMUNITY, ESPECIALLY THOSE LOCATED IN MEDICALLY UNDERSERVED OR HIGH-NEED AREAS, PERINATAL PROGRAMS, FREE CARE OR SLIDING FEE SCALE CLINICS, MEDICAL EDUCATION, AND SERVICES TO SPECIAL-NEEDS POPULATIONS. OTHER SUBSIDIZED SERVICES INCLUDE HOSPICE, HOME CARE AND PALLIATIVE SERVICES, DURABLE MEDICAL EQUIPMENT SERVICES, AND MENTAL HEALTH SERVICES. IN 2010, ALLINA EXPENDED $2,507,648 TO MAKE AVAILABLE AND PROVIDE THESE SERVICES TO THE COMMUNITIES WE SERVE. 234622445 COST OF PARTICIPATING IN GOVERNMENT PROGRAMSALLINA IS COMMITTED TO SERVING ALL PERSONS IN NEED, REGARDLESS OF RACE, CREED, SEX, NATIONALITY, RELIGION, DISABILITY, AGE, OR ABILITY TO PAY. TO PROMOTE ACCESS TO CARE FOR ALL INDIVIDUALS, ALLINA PARTICIPATES IN THE FOLLOWING PUBLIC HEALTH CARE PROGRAMS: MEDICARE, MEDICAID, MINNESOTACARE, AND GENERAL ASSISTANCE. PAYMENTS FROM THESE PROGRAMS FREQUENTLY DO NOT COVER THE COSTS ALLINA INCURS TO SERVE PROGRAM BENEFICIARIES. IN 2010, ALLINA PROVIDED $234,622,445 IN HEALTH CARE SERVICES IN EXCESS OF THE REIMBURSEMENT RECEIVED BY PUBLIC PROGRAMS AND SURCHARGES, TAXES AND FEES RELATED TO THESE PROGRAMS. THE FOLLOWING IS A BREAKDOWN ON COSTS RELATED TO THESE PROGRAMS, SERVICES AND ADDITIONAL TAXES AND FEES.COSTS IN EXCESS OF MEDICARE AND MEDICAID PAYMENTSALLINA PROVIDES SERVICES TO PUBLIC PROGRAM ENROLLEES. SUCH PUBLIC PROGRAMS HAVE REIMBURSED AT AMOUNTS LESS THAN COST. IN 2010, ALLINA EXPENDED $143,968,645 BEYOND REIMBURSEMENTS TO PROVIDE CARE FOR MEDICARE PATIENTS AND AN ADDITIONAL $43,320,002 BEYOND REIMBURSEMENTS FOR MEDICAID PATIENTS. MEDICAID SURCHARGEALLINA IS A PARTICIPANT IN THE MEDICAID SURCHARGE PROGRAM. THE CURRENT PROGRAM INCLUDES A 1.56% SURCHARGE ON A HOSPITAL'S NET PATIENT SERVICE REVENUE (EXCLUDING MEDICARE REVENUE). REPORTED AMOUNTS ARE NET OF ANY DISPROPORTIONATE SHARE ADJUSTMENTS. IN 2010, ALLINA PAID $19,486,809 FOR THE MEDICAID SURCHARGE. TAXESALLINA ALSO PARTICIPATES IN THE FUNDING OF MEDICAL CARE FOR THE UNINSURED THROUGH A MINNESOTACARE TAX OF 2% ON CERTAIN NET REVENUE. PATIENTS WHO ARE UNABLE TO GET INSURANCE THROUGH THEIR EMPLOYER ARE ELIGIBLE TO PARTICIPATE IN MINNESOTACARE. ALLINA PAYS PROPERTY TAXES TO LOCAL AND STATE GOVERNMENT USED IN FUNDING CIVIL AND EDUCATION SERVICES TO THE COMMUNITY. ALLINA PAID $27,846,989 FOR THE MINNESOTACARE TAX AND OTHER TAXES IN 2010. 120658550 UNCOMPENSATED CARE:CHARITY CAREALLINA PROVIDES MEDICAL CARE WITHOUT CHARGE OR AT REDUCED COST TO RESIDENTS OF THE COMMUNITIES THAT IT SERVES THROUGH THE PROVISION OF CHARITY CARE. ALLINA'S COMMUNITY CARE PROGRAM WAS ESTABLISHED TO ASSIST PATIENTS WHO DO NOT QUALIFY FOR MEDICAL ASSISTANCE SUCH AS MEDICAID AND WHOSE ANNUAL INCOMES ARE AT OR BELOW 275% OF THE FEDERAL POVERTY LEVEL. NOTABLY, ALLINA'S DEFINITION OF CHARITY CARE DOES NOT INCLUDE BAD DEBT (CHARGES WRITTEN OFF FOR PROVIDING SERVICES TO PERSONS ABLE, BUT UNWILLING, TO PAY FOR THESE SERVICES). THROUGH THIS PROGRAM, ALLINA STRIVES TO ENSURE THAT ALL MEMBERS OF THE COMMUNITY RECEIVE QUALITY MEDICAL CARE; REGARDLESS OF ABILITY TO PAY. IN 2010, ALLINA PROVIDED $28,624,922 IN CHARITY CARE.UNINSURED DISCOUNT PROGRAMFOR UNINSURED PATIENTS WHO DO NOT QUALIFY FOR MEDICAID OR MEET THE FINANCIAL THRESHOLD FOR CHARITY CARE, BUT REQUIRE SOME FINANCIAL ASSISTANCE, ALLINA PROVIDES A SLIDING SCALE DISCOUNT. ALL UNINSURED PATIENTS ARE ELIGIBLE FOR A MINIMUM OF A 20 PERCENT DISCOUNT ON BILLED CHARGES AND MAY QUALIFY FOR DISCOUNTS UP TO 57 PERCENT BASED ON ELIGIBILITY CRITERIA. IN 2010, ALLINA PROVIDED $39,501,289 IN SUCH DISCOUNTS TO LOW-INCOME, UNINSURED INDIVIDUALS. BAD DEBTALLINA PROVIDES MEDICAL CARE TO ALL IN NEED. THERE ARE TIMES WHEN PATIENT ACCOUNT BALANCES GO UNPAID, KNOWN AS BAD DEBT. THESE BAD DEBT AMOUNTS IN 2010 TOTALED $52,532,339. 37095681 COMMUNITY SERVICES:ALLINA IS COMMITTED TO SUPPORTING PROGRAMS AND SERVICES THAT ADDRESS COMMUNITY NEEDS. IN 2010, ALLINA CONTRIBUTED $37,095,681 TO COMMUNITY PROGRAMS AND SERVICES TO ADVANCE THE HEALTH OF THE BROADER COMMUNITY. BELOW ARE EXAMPLES OF PROGRAMS AND SERVICES ALLINA PROVIDES WITHIN THE COMMUNITIES WE SERVE UNDER CATEGORIES PROVIDED BY THE CATHOLIC HEALTHCARE ASSOCIATION (CHA) AND VHA, INC. COMMUNITY HEALTH IMPROVEMENT SERVICESACCORDING TO THE CHA/VHA GUIDELINES, COMMUNITY HEALTH IMPROVEMENT SERVICES INCLUDE ACTIVITIES TO IMPROVE COMMUNITY HEALTH THAT ARE SUBSIDIZED BY THE HEALTH CARE ORGANIZATION AND DO NOT GENERATE INPATIENT OR OUTPATIENT BILLS. ALLINA HOSPITALS & CLINICS PROVIDES MANY SERVICES THAT FALL UNDER THIS CATEGORY. A FEW EXAMPLES INCLUDE: DAAN PROGRAM - DAAN IS A COMMUNITY-BASED PROGRAM FOCUSED ON FOSTERING SUSTAINABLE CHANGE IN THE OVERALL WELLNESS OF ADULTS AND CHILDREN BY PROMOTING HEALTHY LIVING THROUGH INFORMED NUTRITIONAL CHOICES AND INCREASED PHYSICAL ACTIVITY. TO HELP ACHIEVE THIS GOAL, EDUCATION AND HEALTH CARE EXPERTS DEVELOPED A DAAN AT SCHOOL PROGRAM THAT OVERLAYS THE EXISTING HEALTH AND PHYSICAL EDUCATION CURRICULUM. IN 2010, THERE WERE 14 SCHOOLS IN THE BUFFALO HOSPITAL SERVICE AREA THAT WERE PARTNERING WITH THE HOSPITAL TO IMPLEMENT THIS CURRICULUM TO SERVE ROUGHLY 2,500 CHILDREN AND TEACHERS. IN ADDITION, DAAN ALSO PROVIDED OPPORTUNITIES FOR THE ADULTS IN THE COMMUNITY THROUGH THE DAAN AT HOME AND DAAN AT WORK CURRICULA. THE DAAN AT HOME PROGRAM BEGAN IN 2009 AND FOCUSES ON HEALTH COACHING TO LOWER BLOOD PRESSURE AMONG PATIENTS WITHIN THE CLINICAL HYPERTENSION PROGRAM BY FOCUSING ON PHYSICAL ACTIVITY UTILIZING PEDOMETERS. IN 2010, DAAN AT HOME SERVED 18 PATIENTS. THE DAAN AT WORK PROGRAM SERVES EMPLOYEES WITHIN THE COMMUNITY BY PROVIDING WELLNESS PROGRAMMING IN THE FORM OF HEALTH COACHING, CLASS PRESENTATION, METABOLIC TESTING, CAMPAIGN MANAGEMENT, EXECUTIVE PHYSICALS AND EDUCATION. IN 2010, THERE WERE 1,850 PARTICIPANTS. POWER BY THE HOUR - THE POWER BY THE HOUR PROGRAM IS A NUTRITION EDUCATION AND PHYSICAL FITNESS PROGRAM DESIGNED TO INCREASE AWARENESS AND IMPROVE BEHAVIORS AROUND HEALTHY EATING AND EXERCISE IN ELEMENTARY AGED CHILDREN. IN 2010, THE PROGRAM CONTINUED TO REACH NUMEROUS YOUTH INCLUDING OFFERINGS AT 40 ADDITIONAL SCHOOLS AND COMMUNITY ORGANIZATIONS SPANNING THE ENTIRE ALLINA SERVICE AREA. THE YMCA CONTINUES TO INCORPORATE THE POWER BY THE HOUR PROGRAM IN 40 YMCAS THROUGHOUT THE TWIN CITIES AND WESTERN WISCONSIN. POWER BY THE HOUR WAS FEATURED IN LOCAL NEWSPAPERS AND TELEVISION SPOTLIGHTS AS A SUCCESSFUL PROGRAM TO ADDRESS OBESITY AND PROMOTE HEALTHIER LIFESTYLES. TO DATE, MORE THAN 4,000 YOUTH HAVE PARTICIPATED IN POWER BY THE HOUR. HEART SAFE COMMUNITIES - ALLINA'S HEART SAFE COMMUNITIES PROGRAM INCREASES SURVIVAL FROM SUDDEN CARDIAC ARREST, A LEADING CAUSE OF DEATH, BY PLACING AUTOMATED EXTERNAL DEFIBRILLATORS (AEDS) WHERE PEOPLE LIVE, LEARN, WORK AND PLAY AND TRAINING INDIVIDUALS IN THE COMMUNITY ON CPR AND AED USE. IN 2010, HEART SAFE COMMUNITIES PLACED 142 AEDS THROUGHOUT COMMUNITIES IN MINNESOTA AND TRAINED 2,066 COMMUNITY MEMBERS ON CPR AND THE USE OF AEDS. THOSE NUMBERS INCLUDED 18 AED'S GIVEN TO ALLINA'S COMMUNITY ENGAGEMENT GROUPS, WHO THEN DONATED TO THOSE COMMUNITIES IN THEIR AREA. WE WERE ALSO ABLE TO DESIGNATE 4 NEW COMMUNITIES AS HEART SAFE COMMUNITIES FOLLOWING THEIR WORK IN STRENGTHENING THE CHAIN OF SURVIVAL FOR THEIR CITIZENS AND ATTENDED OVER 40 COMMUNITY EVENTS EDUCATING PEOPLE ON THE IMPORTANCE OF EARLY CPR AND AED USE. MEDICATION ASSISTANCE PROGRAM - THE MEDICATION ASSISTANCE PROGRAM PROVIDES PRESCRIPTION MEDICATIONS AT NO-COST FOR INDIVIDUALS WITH MENTAL HEALTH PROBLEMS THAT ARE EXPERIENCING A CRISIS AND HAVE NO ACCESS TO PSYCHIATRIC MEDICATIONS FOR FINANCIAL REASONS. THE GOAL OF THE PROGRAM IS TO IMPROVE ACCESS TO, AND MANAGEMENT OF, PSYCHIATRIC MEDICATIONS FOR A DEFINED POPULATION THAT IS PRESENTLY ENCOUNTERING BARRIERS IN OBTAINING AND/OR MANAGING NEEDED MEDICATIONS. IN 2010, THE PROGRAM SERVED 173 PATIENTS.MEDELIGIBLE - MEDELIGIBLE SERVICES SUPPORTS PATIENTS WHO HAVE DIFFICULTY PAYING THEIR MEDICAL BILLS. THE STAFF HELPS PATIENTS APPLY TO FEDERAL, STATE, AND COUNTY AID PROGRAMS SUCH AS MEDICAID, MEDICARE, SOCIAL SECURITY, FOOD STAMPS, EMERGENCY FOOD AND SHELTER. MEDELIGIBLE SERVICES EDUCATES PATIENTS AND THEIR FAMILIES ABOUT THE ADVANTAGES OF THESE PROGRAMS AND WORKS WITH THEM TO GET THE HELP THEY NEED. IN 2010, MEDELIGIBLE SERVICES ASSISTED OVER 7,000 INDIVIDUALS. ALLINA.COM - OTHER COMMUNITY PROGRAMS AND HEALTH INFORMATION IS AVAILABLE ON ALLINA'S WEBSITE. THIS WEBSITE OFFERS ACCESS TO THE LATEST HEALTH INFORMATION REGARDING NUMEROUS DISEASES AND CONDITIONS AND LINKS TO ALLINA'S FINANCIAL ASSISTANCE SERVICES AND MEDFORMATION INFORMATION. THE WEBSITE ADDRESS IS HTTP://WWW.ALLINA.COM.FREE CLINICS - OWATONNA, MN AND RIVER FALLS, WI. TWO OF OUR HOSPITALS ARE INVOLVED IN THE DEVELOPMENT AND MAINTENANCE OF FREE CLINICS SERVING THEIR SURROUNDING COUNTIES. ALL SERVICES PROVIDED BY THE CLINICS ARE PROVIDED FREE OF CHARGE AND INCLUDE PREVENTABLE HEALTH CARE AND ACCESS TO PRESCRIPTION DRUGS FOR UNINSURED INDIVIDUALS AND FAMILIES. IN 2010, THE FREE CLINIC OF PIERCE AND ST. CROIX COUNTIES IN WISCONSIN PROVIDED CARE THROUGH A TOTAL OF 2,502 PATIENT VISITS, DISPENSING 5,667 PRESCRIPTIONS WITH A TOTAL RETAIL VALUE OF $554,478. HEALTH PROFESSIONS EDUCATION ALLINA ACTIVELY SUPPORTS NUMEROUS MEDICAL EDUCATION ACTIVITIES FOR PROVIDERS, HEALTH CARE STUDENTS AND OTHER HEALTH PROFESSIONALS. IN 2009, ALLINA INVESTED OVER $15 MILLION IN INTERNSHIP OPPORTUNITIES, MENTORING PARTNERSHIPS, AND GRADUATE MEDICAL EDUCATION PROGRAMMING. ALLINA'S COMMITMENT TO THE EDUCATION, TRAINING AND DEVELOPMENT OF FUTURE HEALTH CARE PROFESSIONALS ENSURES THE AVAILABILITY OF A HIGHLY TRAINED WORKFORCE TO MEET THE COMMUNITY'S HEALTH CARE NEEDS. RESEARCH ALLINA PARTICIPATES IN CLINICAL AND COMMUNITY HEALTH RESEARCH THAT IS FOCUSED ON IMPROVING COMMUNITY HEALTH. IN 2010, ALLINA CONTINUED TO SUPPORT TWO COMMUNITY HEALTH IMPROVEMENT RESEARCH PROJECTS: THE HEART OF NEW ULM AND THE BACKYARD INITIATIVE AS A MEANS TO UNDERSTAND HOW TO IMPACT BROADER COMMUNITY HEALTH THROUGH COMMUNITY-LEVEL INTERVENTIONS. ALLINA ALSO WRAPPED UP A PILOT PROJECT RELATED TO A NEW APPROACH TO PRIMARY CARE THROUGH THE USE OF CARE GUIDES AS A MEANS TO IMPACT HEALTH OUTCOMES FOR PATIENTS WITH CHRONIC DISEASES. THE PILOT THEN ENTERED INTO A LARGE, RANDOMIZED-CONTROL TRIAL WITH OVER 2,000 PATIENTS WITH CHRONIC CONDITIONS TO UNDERSTAND THE LONG-TERM HEALTH OUTCOMES RELATED TO THE USE OF CARE GUIDES. IN ADDITION TO RESEARCH PROJECTS, ALLINA OPERATES INSTITUTIONAL REVIEW BOARDS TO PROTECT COMMUNITY MEMBERS WHO PARTICIPATE IN CLINICAL AND COMMUNITY HEALTH RESEARCH. IN TOTAL, ALLINA INVESTED OVER $5.6 MILLION TOWARD THIS RESEARCH IN 2010. FINANCIAL AND IN-KIND CONTRIBUTIONSALLINA PROVIDES NUMEROUS IN-KIND AND MONETARY CONTRIBUTIONS TO INDIVIDUALS AND OTHER NOT-FOR-PROFIT ORGANIZATIONS TO SUPPORT COMMUNITY NEEDS. IN 2010, ALLINA FUNDED OVER $3 MILLION FOR DONATIONS OF EQUIPMENT, SUPPLIES, FREE MEALS, STAFF TIME AND SPONSORSHIP OF VARIOUS CIVIC AWARDS, COMMUNITY PROGRAMS AND EVENTS. COMMUNITY-BUILDING ACTIVITIESALLINA AND ITS EMPLOYEES ARE ACTIVE PARTICIPANTS IN VARIOUS COMMUNITY ACTIVITIES THAT TARGET THE ROOT CAUSES OF HEALTH PROBLEMS, SUCH AS POVERTY, HOMELESSNESS AND ENVIRONMENTAL ISSUES. EXAMPLES INCLUDE TAKING A LEADERSHIP ROLE IN PLANNING A LARGE-SCALE NATIONAL NIGHT OUT CELEBRATION IN A HIGHLY DIVERSE AND LOW-INCOME NEIGHBORHOOD IN MINNEAPOLIS, IMPLEMENTING HOSPITAL TRAIN-TO-WORK PROGRAMS, DISASTER PREPAREDNESS PLANNING, AND PARTICIPATING IN VARIOUS COMMUNITY COALITIONS. COMMUNITY BENEFIT OPERATIONSALLINA USES DEDICATED STAFF FOR THE ASSESSMENT AND MANAGEMENT OF COMMUNITY BENEFIT PROGRAMS AND NEEDS. 37095681 1989072167 1 1 0 1 0 0 0 0 1 1 1 0 0 1 1 0 1 0 0 1 0 0 1 1 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 1 1691 0 1 24415 1 1 1 1 BR CA BE MX 0 0 0 1 1 0 0 0 0 X 17 16 1 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 MN WI X X TAX SERVICES MAIL ROUTE 10890 6122620660 2925 CHICAGO AVENUE MINNEAPOLIS MN 554071321 WILLIAM BEER 2.00 X 0 0 0 GARY BHOJWANI 2.00 X 2500 0 0 NATE GARVIS 2.00 X 12000 0 0 JOSEPH GOSWITZ MD 2.00 X 0 0 0 SUBBARAO INAMPUDI MD 2.00 X 17539 0 0 MARK JORDAHL 2.00 X 4500 0 0 CHRISTINE MORRISON 3.00 X 1345 0 0 JEAN DELANEY NELSON 2.00 X 0 0 0 HUGH NIERENGARTEN 2.00 X 14418 0 0 KENNETH PAULUS 40.00 X X 1321114 0 545392 GLORIA PEREZ 2.00 X 10000 0 0 DEAN PHILLIPS 4.00 X 0 0 0 STEPHEN REMOLE MD 2.00 X 7156 0 0 REBECCA ROLOFF 2.00 X 17400 0 0 TERRY SAARIO PHD 2.00 X 7500 0 0 MARK SHEFFERT 2.00 X 10103 0 0 EDSON SPENCER JR 2.00 X 7250 0 0 MICHAEL TATTERSFIELD 2.00 X 0 0 0 JOAN THOMPSON 2.00 X 12000 0 0 RODNEY YOUNG 2.00 X 15000 0 0 MARGARET BUTLER 40.00 X 400369 0 198364 DUNCAN GALLAGHER 40.00 X 629166 0 179893 MARGARET HASBROUCK 40.00 X 279344 0 70833 SUSAN HEICHERT 40.00 X 359194 0 41464 CHRISTOPHER HUGHES 40.00 X 172136 0 36092 DEREK KANG 40.00 X 44155 0 10697 LAURIE LAFONTAINE 40.00 X 429154 0 99657 TOM O'CONNOR 40.00 X 609374 0 230873 JEFFEREY PETERSON 40.00 X 850357 0 277099 RICKIE RESSLER 40.00 X 282664 0 34118 TOMI RYBA 40.00 X 657474 0 198926 SHANE SEYMOUR 40.00 X 361248 0 13535 ELIZABETH TRUESDELL SMITH 40.00 X 386468 0 133625 JOHN STOLTENBERG MD 40.00 X 495650 0 86083 PENNY WHEELER MD 40.00 X 742217 0 250326 ROBERT WIELAND MD 40.00 X 545359 0 213303 JOANN YOHN 40.00 X 220816 0 39693 SANDRA SCHMITT 40.00 X 548061 0 78746 SURESHBABU AHANYA MD 40.00 X 995527 0 84295 DANIEL BUSS MD 40.00 X 1250342 0 104040 MICHAEL FREEHILL MD 40.00 X 1008620 0 80760 EMANUEL GAZIANO MD 40.00 X 1016419 0 58935 WILLIAM WAGNER MD 40.00 X 923874 0 93714 ELAINE VOSS X 35241 0 0 MARY FOARDE X 182819 0 0 RICHARD PETTINGILL X 210344 0 0 ANDREW PUGH X 283133 0 73217 GARY STRONG X 203726 0 597 15583076 0 3234277 1380 1 1 0 METROPOLITAN CARDIOLOGY CONSULTANTS 4040 COON RAPIDS BLVD STE 120 COON RAPIDS MN 55443 MEDICAL SERVICES 22918099 HEALTHPARTNERS 8170 33RD AVENUE SOUTH BLOOMINGTON MN 55425 PROFESSIONAL SERVICES 8491029 PHYSICIANS GROUP OF NEW ULM 1324 5TH N ST PO BOX 577 NEW ULM MN 56073 MEDICAL SERVICES 7311872 NURSEFINDERS INC PO BOX 910738 DALLAS TX 753910738 TEMP HELP - NURSES 5716867 EPIC SYSTEMS CORPORATION 1979 MILKY WAY VERONA MI 53593 PROFESSIONAL SERVICES - COMPUTER 5401419 252 179996 13892411 8988892 3159306 26220605 PROG.SERV.REVENUE-RELA 621990 2512995565 2512995565 2512995565 14158800 14158800 7130849 7130849 7130849 7130849 482869616 1299746 497687886 2012868 -14818270 -713122 -15531392 -15531392 5714091 179996 6400464 -686373 -686373 RETAIL PHARMACY 446110 15043745 15043745 HOME HEALTH CARE SERVI 621610 8685513 8685513 ST FRANCIS MEDICAL CEN 621990 4630598 4630598 7355614 2712723 4642891 35715470 2580003524 2520338886 28372149 5071884 849986 849986 10955027 10955027 1012799366 876355120 134009668 2434578 64040303 54819836 9068174 152293 150045024 128441671 21246533 356820 71253758 60994703 10089607 169448 13715805 2785227 10927303 3275 20868564 20868564 609855 609855 41287 41287 244145327 175507682 67989015 648630 1109036 3969 1091541 13526 414388286 399725940 14438842 223504 25558543 16317762 9240781 61478594 38723236 22733276 22082 4010292 3261009 719866 29417 1228761 795069 424744 8948 9175299 9175299 268851 268851 130951253 109316158 21632672 2423 2379230 2379230 BAD DEBT 52533558 52533558 MINNESOTA CARE TAX 29115463 29115463 MEDICAID SURCHARGE 19486809 19486809 DUES & MEMBERSHIPS 5353843 3397012 1930068 26763 INCOME TAX - UBI 1548637 1548637 11994516 7197807 4315289 481420 2359905273 1989072167 366218692 4614414 13492823 5635850 3908703 4394891 1173166330 1204054352 3008862 3109819 41998965 42720744 8275595 7330471 2084133104 1403122175 702254210 681010929 1086877601 1265643784 3317621 2679846 18302590 20928863 3054603300 3237509549 736256534 749178376 827400 771194 11758539 18175565 699168299 682759462 966721 894000 307251431 250460056 1756228924 1702238653 X 1288298007 1526911863 8450452 6568008 1625917 1791025 1298374376 1535270896 3054603300 3237509549 X 220098251 16798269 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 1 60420 0 0 1 316003 0 1 376423 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: ALLINA HEALTH SYSTEM EMPLOYS VARIOUS INDIVIDUALS, AS WELL AS CONTRACTS WITH VARIOUS LOBBYISTS, TO MONITOR LEGISLATIVE ACTS IMPORTANT TO ALL OF ALLINA ON BOTH A NATIONAL AND STATE LEVEL. 67783914 693723 4980609 39033 1831119 0 71588094 50485767 9065901 10653658 62576 2358836 0 67783914 69726546 4082055 -17914005 4000 5404829 0 50485767 0.02760 0.61410 0.35830 0 1 1 41880077 41880077 788758737 415993634 372765103 51105145 21289669 29815476 1161631837 957317759 204314078 40757308 8521113 32236195 681010929 CASH AND CASH EQUIVALENTS 64064638 F MONEY MARKET COLLECTIVE FUND AND SHORT-TERM FIXED INCOME 117786000 F FIXED INCOME 404567000 F EQUITY SECURITIES 230134000 F INVESTMENTS ACCOUNTED FOR AT NET ASSET VALUE 412280000 F INVESTMENTS IN JOINT VENTURES 36812146 C 1265643784 OTHER LIABILITIES 99769753 NET PENSION LIABILITY 28809852 DEFERRED COMPENSATION 29114511 INSURANCE CLAIMS PAYABLE 2940986 MN CARE TAX PAYABLE 6841934 CAPITALIZED LEASE OBLIGATIONS 7489321 INCURRED BUT NOT REPORTED CLAIMS FOR EMPLOYEE BENEFIT PLAN 75493699 250460056 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: EDUCATION AND RESEARCH CHARITY AND INDIGENT CARE PURCHASE OF PLANT ASSETS BUILDINGS AND EQUIPMENT PATIENT CARE OTHER ALLINA HEALTH SYSTEM FIN 48 (ASC 740) FOOTNOTE (AMOUNTS IN THOUSANDS): (17) TAXES - THE SYSTEM HAS BEEN DETERMINED TO QUALIFY AS A TAX EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE SYSTEM HAS ALSO BEEN DETERMINED TO BE EXEMPT FROM FEDERAL AND STATE INCOME TAX ON RELATED INCOME UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE AND MINNESOTA STATUTE SECTION 290.05, SUBDIVISION 2. CERTAIN OF THE SYSTEM'S SUBSIDIARIES AND AFFILIATES QUALIFY AS TAX EXEMPT ORGANIZATIONS, WHILE OTHERS ARE TAXABLE. THE SYSTEM AND ITS SUBSIDIARIES PAID TAXES OF $1,279 AND $1,078, IN 2010 AND 2009, RESPECTIVELY. AS OF DECEMBER 31, 2010 AND 2009, THE TAXABLE SUBSIDIARIES OF THE SYSTEM'S CONTINUING OPERATIONS HAD A GROSS DEFERRED TAX ASSET OF $74,064 AND $71,486, RESPECTIVELY, RESULTING FROM NET OPERATING LOSS CARRYFORWARDS, EMPLOYEE COMPENSATION AND BENEFITS ACCRUALS, PROVISION FOR BAD DEBTS, AND LIMITATION OF CHARITABLE CONTRIBUTIONS, OFFSET BY VALUATION ALLOWANCES OF $73,766 AND $71,189, RESPECTIVELY, AND A GROSS DEFERRED TAX LIABILITY OF $298 AND $298, RESPECTIVELY, PRIMARILY ATTRIBUTABLE TO DEPRECIATION AND A CHANGE IN ACCOUNTING METHOD OF A TAXABLE SUBSIDIARY. THE VALUATION ALLOWANCE INCREASED BY $2,577 AND $9,372 DURING 2010 AND 2009, RESPECTIVELY. AS OF DECEMBER 31, 2010, THE CONTINUING OPERATIONS OF THE SYSTEM AND ITS SUBSIDIARIES HAD NET OPERATING LOSS CARRYFORWARDS OF $159,995 FOR INCOME TAX PURPOSES, WHICH EXPIRE IN VARIOUS YEARS THROUGH 2030. INCOME TAXES ARE ACCOUNTED FOR UNDER THE ASSET AND LIABILITY METHOD. DEFERRED TAX ASSETS AND LIABILITIES ARE RECOGNIZED FOR THE FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO DIFFERENCES BETWEEN THE FINANCIAL STATEMENT AND TAX RETURN METHODS OF ACCOUNTING. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING THE ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. NORTH AMERICA 0 0 INVESTMENTS 163219 EUROPE 0 0 INVESTMENTS 502398 SOUTH AMERICA 0 0 INVESTMENTS 317659 CENTRAL AMERICA 0 0 INVESTMENTS 1173157424 0 0 0 1174140700 0 1174140700 0 0 1 0 0 0 X X X X 1 RUFFALOCODY 65 KIRKWOOD NORTH ROAD SW CEDAR RAPIDS IA 52404 TELEFUNDRAISING 0 29735 23388 6347 IDC LTD 2500 PASEO VERDE PARKWAY HENDERSON NV 89074 TELEFUNDRAISING 0 29480 17899 11581 59215 41287 17928 MN WI 3M CHAMPIONSHIP GOLF TOURNAMENT 5714091 5714091 1740993 132000 4483771 ANNUAL SPRING GALA 142736 142736 5182 15855 11256 2 37260 37260 11407 5894087 179996 5714091 1740993 137182 15855 4506434 6400464 -686373 EXPLANATION OF FUNDRAISING PAYMENTS SCHEDULE G, PART I, LINE 2B, COLUMN (V) TELEFUNDRAISING 1 1 X 1 X 275.000000000000 0 1 1 0 1 1 0 0 28624921 0 28624921 0.01240 0 0 43320002 0 43320002 0.01880 0 0 0 0 71944923 71944923 0.03120 170 8803173 9817340 648904 9168436 0.00400 57 6297 18444872 81266 18363606 0.00800 10 288 2538198 30550 2507648 0.00110 15 86134 5633843 0 5633843 0.00240 77 1117319 3546952 470860 3076092 0.00130 329 10013211 39981205 1231580 38749625 0.01680 329 10013211 111926128 1231580 110694548 0.04800 0 0 0 0 7 210 45159 0 45159 0.00000 22 1174028 279070 0 279070 0.00010 3 3500 1176 0 1176 0.00000 2 195 18929 0 18929 0.00000 23 26426 111605 0 111605 0.00000 14 2302 47911 0 47911 0.00000 13 2659 347675 0 347675 0.00010 0 0 0 0 84 1209320 851525 851525 0.00020 1 37261244 0 507976173 523237492 -15261319 X 1 1 1 METROPOLITAN INTEGRATED CANCER CENTER LLC RADIATION THERAPY 0.80000 0.20000 2 MOBILE IMAGING SERVICES LLC DIAGNOSTIC IMAGING 0.50000 0.50000 3 MAGNETO LEASING LLC EQUIPMENT LEASING 0.50000 0.50000 4 SUBURBAN IMAGING LLC OUTPATIENT RADIOLOGY SERVICES 0.50000 0.50000 5 SOUTHWEST SURGICAL CENTER LLC AMBULATORY SURGERY PROCEDURES 0.83330 0.16670 6 APPLE VALLEY BUILDING ASSOCIATES LLC BUILDING 0.50000 0.45000 7 CROSBY CARDIOVASCULAR SERVICES LLC CARDIOLOGY DIAGNOSTIC SERVICES 0.33330 0.33330 8 PREMIER FMC LLC REAL ESTATE 0.05000 0.52500 9 ALEXANDRIA IMAGING LLC CARDIOLOGY DIAGNOSTIC SERVICES 0.50000 0.50000 10 1 ABBOTT NORTHWESTERN HOSPITAL

800 E 28TH STREET MINNEAPOLIS MN 55407

X X X X 2 UNITED HOSPITAL

333 NORTH SMITH AVENUE ST PAUL MN 55102

X X X X 3 MERCY HOSPITAL

4050 COON RAPIDS BLVD COON RAPIDS MN 55433

X X X X 4 UNITY HOSPITAL

550 OSBORNE ROAD FRIDLEY MN 55432

X X X 5 CAMBRIDGE MEDICAL CENTER

701 S DELLWOOD STREET CAMBRIDGE MN 55008

X X 6 BUFFALO HOSPITAL

303 CATLIN STREET BUFFALO MN 55313

X X 7 NEW ULM MEDICAL CENTER

1324 FIFTH NORTH STREET NEW ULM MN 56073

X X X 8 OWATONNA HOSPITAL

903 S OAK AVE OWATONNA MN 55060

X X 9 RIVER FALLS AREA HOSPITAL

1629 EAST DIVISION STREET RIVER FALLS WI 54022

X X X 10 PHILLIPS EYE INSTITUTE

2215 PARK AVENUE MINNEAPOLIS MN 55404

X X NOT REQUIRED 1 5 SISTER KENNY REHABILITATION INSTITUTE

800 E 28TH STREET MINNEAPOLIS MN 55407

REHABILITATION CLINIC ALLINA MEDICAL LABORATORIES

800 E 28TH STREET MINNEAPOLIS MN 55407

LABORATORY SERVICES ALLINA COMMUNITY PHARMACIES-15 LOCATIONS

800 E 28TH STREET MINNEAPOLIS MN 55407

PHARMACY SERVICES ALLINA MEDICAL TRANSPORTATION

167 GRAND AVENUE ST PAUL MN 55102

AMBULANCE AND MEDICAL TRANSPORTATION SOUTHWEST SURGICAL CENTER LLC

920 EAST 28TH STREET SUITE 500 MINNEAPOLIS MN 55407

OUTPATIENT SURGERY CENTER PART I, LINE 3C: CHARITY CARE PROGRAM- THE COMMUNITY (PARTNERS) CARE PROGRAM A KEY COMPONENT OF ALLINA'S MISSION IS TO DELIVER COMPASSIONATE, HIGH QUALITY, AFFORDABLE HEALTH CARE SERVICES AND TO ADVOCATE FOR THOSE WITH LIMITED FINANCIAL MEANS. ALLINA STRIVES TO ENSURE THAT THE FINANCIAL CAPACITY OF PEOPLE WHO NEED HEALTH CARE SERVICES DOES NOT PREVENT THEM FROM SEEKING OR RECEIVING MEDICAL CARE. THEREFORE, ALLINA HAS SEVERAL FINANCIAL ASSISTANCE PROGRAMS INCLUDING A ROBUST CHARITY CARE PROGRAM KNOWN AS THE COMMUNITY (PARTNERS) CARE PROGRAM WHICH PROVIDES FREE CARE TO ALL PERSONS AT OR BELOW 275 PERCENT OF THE FEDERAL POVERTY GUIDELINES AS PUBLISHED ANNUALLY IN THE FEDERAL REGISTRAR.THE CHARITY CARE PROGRAM ALSO PROVIDES FOR THE CONSIDERATION OF SPECIAL CIRCUMSTANCES FOR THE "MEDICALLY INDIGENT". THE ORGANIZATION EXTENDS THE CHARITY CARE PROGRAM IN INSTANCES THE ORGANIZATION HAS DETERMINED THE PATIENT IS UNABLE TO PAY SOME OR ALL OF THEIR MEDICAL BILLS DUE TO CATASTROPHIC CIRCUMSTANCES EVEN THOUGH THEY HAVE INCOME OR ASSETS THAT OTHERWISE EXCEED THE GENERALLY APPLICABLE ELIGIBILITY CRITERIA FOR THE FREE CARE PROGRAM OR THE DISCOUNTED CARE PROGRAM (DESCRIBED BELOW) UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAM GUIDELINES. DISCOUNTED CARE PROGRAM - UNINSURED DISCOUNT PROGRAM ALLINA ALSO HAS A FINANCIAL ASSISTANCE PROGRAM KNOWN AS THE UNINSURED DISCOUNT PROGRAM THAT PROVIDES A DISCOUNT ON BILLED CHARGES TO UNINSURED PATIENTS, AND INSURED PATIENTS WHO RECEIVE UNINSURED TREATMENT, FOR MEDICALLY NECESSARY CARE RECEIVED FROM ANY ALLINA HOSPITAL, HOSPITAL BASED CLINIC AND WHOLLY-OWNED AMBULATORY SURGERY CENTERS. THE UNINSURED DISCOUNT PROGRAM DOES NOT USE FEDERAL POVERTY GUIDELINES TO DETERMINE ELIGIBILITY. INSTEAD, UNINSURED PATIENTS AND INSURED PATIENTS WHO RECEIVE UNINSURED TREATMENT ARE ELIGIBLE FOR A DISCOUNT BASED UPON THEIR INCOME LEVEL AND THE LOCATION OF THE SERVICES PROVIDED. ALL PATIENTS WITH AN ANNUAL INCOME AT OR BELOW $125,000 ARE ELIGIBLE FOR A DISCOUNT. THE DISCOUNT IS ALSO GENERALLY EXTENDED TO PATIENTS WITH AN ANNUAL INCOME ABOVE $125,000. THERE ARE TWO DISCOUNTS LEVELS ESTABLISHED, ONE FOR METRO HOSPITALS AND THEIR HOSPITAL BASED CLINICS AND ONE FOR REGIONAL HOSPITALS AND THEIR HOSPITAL BASED CLINICS WITHIN THE ALLINA SYSTEM.ALLINA'S UNINSURED DISCOUNT PROGRAM PROVIDES A DISCOUNT TO BILLED CHARGES FOR UNINSURED PATIENTS BASED ON ALLINA'S MOST FAVORED INSURER WHICH PROVIDES A SUBSTANTIAL DISCOUNT TO BILLED CHARGES. PART I, LINE 6A: ALLINA'S ANNUAL COMMUNITY BENEFIT REPORT IS AVAILABLE UPON REQUEST. SEE CONTACT INFORMATION CONTAINED IN SCHEDULE O TO OBTAIN A COPY. PART I, LINE 7: WHERE APPROPRIATE, THE ORGANIZATION USES A RATIO OF PATIENT CARE COSTS TO CHARGES ("COST TO CHARGE RATIO") TO CALCULATE THE AMOUNTS REPORTED FOR PART I, LINE 7 (THE TABLE). PART I, LINE 7G: THE AMOUNT REPORTED AS SUBSIDIZED HEALTH SERVICES DOES NOT INCLUDE ANY COSTS ATTRIBUTABLE TO A PHYSICIAN CLINIC. PART I, L7 COL(F): BAD DEBT EXPENSE INCLUDED IN FORM 990, PART IX, LINE 25 HAS BEEN SUBTRACTED FOR THE PURPOSE OF CALCULATING THE AMOUNTS REPORTED IN COLUMN 7F. PART II: COMMUNITY-BUILDING ACTIVITIESUNDERSTANDING THAT GOOD HEALTH IS DEPENDENT ON SOCIETAL, COMMUNITY, AND FAMILY ENVIRONMENTS AS WELL AS INDIVIDUAL CHOICES, AND IS BIGGER THAN THE PROVISION OF HEALTH CARE, ALLINA HAS PURPOSEFULLY SET OUT TO ENGAGE IN COMMUNITY ACTIVITIES THAT ADDRESS THE ROOT CAUSES OF HEALTH PROBLEMS SUCH AS POVERTY, HOMELESSNESS AND ENVIRONMENTAL ISSUES. RESEARCH SHOWS THAT MANY OF THESE ROOT CAUSES ARE DIRECTLY TIED TO POOR HEALTH IF GONE IGNORED, PARTICULARLY AMONG LOW-INCOME, MINORITY POPULATIONS. BELOW ARE A FEW EXAMPLES OF WAYS THAT OUR TEN HOSPITALS PARTICIPATED IN COMMUNITY-BUILDING ACTIVITIES IN 2010:NATIONAL NIGHT OUT ALLINA TOOK A LEADERSHIP ROLE IN PLANNING A LARGE-SCALE NATIONAL NIGHT OUT CELEBRATION IN A HIGHLY DIVERSE, LOW-INCOME NEIGHBORHOOD IN MINNEAPOLIS AS A MEANS TO ENGAGE IN PUBLIC SAFETY ISSUES AND CONCERNS WITH RESIDENTS WHO LIVE AROUND ABBOTT NORTHWESTERN HOSPITAL, PHILLIPS EYE INSTITUTE AND ALLINA'S CORPORATE HEADQUARTERS. THE NEIGHBORHOODS SURROUNDING THESE HOSPITALS AND OFFICES ARE IMPACTED BY SOME OF THE HIGHEST CRIME RATES IN THE STATE OF MINNESOTA. ALLINA HAS BEEN ENGAGED IN WORK RELATED TO SAFETY OF THE NEIGHBORHOODS FOR DECADES DUE TO POSITION IN THE COMMUNITY AND CONCERN FOR PATIENTS, EMPLOYEES AND COMMUNITY MEMBERS. IN PARTNERING WITH COMMUNITY DURING NATIONAL NIGHT OUT, BUSINESSES AND RESIDENTS CAME TOGETHER TO GET TO KNOW AND PROTECT EACH OTHER AS A MEANS TO BUILD PRIDE AND SAFETY IN THE COMMUNITY. AS A RESULT, THE COMMUNITY WILL HAVE SAFER STREETS AND PARKS TO USE, BUSINESSES WILL THRIVE, RESIDENTS AND BUSINESSES WILL BE CONNECTED TO ONE ANOTHER AND STRESS WILL BE REDUCED. TRAIN-TO-WORKMANY OF ALLINA'S HOSPITALS HAVE TRAIN-TO-WORK PROGRAMS AS A MEANS TO BUILD A FUTURE WORKFORCE WITHIN AND OUTSIDE OF OUR ORGANIZATION. BY FOCUSING ON BUILDING THE WORKFORCE, THE GOAL IS THAT THERE WILL BE AN INCREASE IN PERSONAL EMPLOYMENT AND ECONOMIC AND WORKFORCE STABILITY. ABBOTT NORTHWESTERN HOSPITAL, BUFFALO HOSPITAL, UNITED HOSPITAL, AND UNITY HOSPITAL ALL PROVIDE TRAIN-TO-WORK PROGRAMS WITHIN THEIR FACILITIES AND HAVE DEVELOPED PARTNERSHIPS WITH LOCAL SCHOOLS AND COMMUNITY ORGANIZATIONS IN THE PROCESS. COMMUNITY COALITIONSALL ALLINA HOSPITALS PARTICIPATE ON LOCAL COMMUNITY COALITIONS AS A WAY TO RESPOND TO COMMUNITY NEEDS THROUGH COLLABORATION AND PARTNERSHIP. THESE COALITIONS PROVIDE THE HOSPITALS THE OPPORTUNITIES TO BUILD RELATIONSHIPS AND DETERMINE HOW BEST TO LEVERAGE LOCAL RESOURCES TO ADDRESS COMMUNITY NEEDS, NEEDS THAT EXIST OUTSIDE THE TRADITIONAL REALM OF HEALTH CARE. ALLINA HOSPITALS ARE PRESENT AT THOSE DISCUSSIONS TO DETERMINE THE ROLE HEALTH CARE CAN PLAY. AN EXAMPLE OF THIS IS ALLINA HOSPITALS' PARTICIPATION ON THE STATEWIDE HEALTH IMPROVEMENT PROGRAM (SHIP) COALITIONS THAT EXIST IN EACH COUNTY IN THE ALLINA SERVICE AREA. IN ADDITION TO COMMUNITY-BUILDING ACTIVITIES THAT RELATED TO ROOT CAUSES OF HEALTH, ALLINA WAS ALSO ENGAGED IN ACTIVITIES THAT WERE RELATED TO DISASTER PREPAREDNESS.DISASTER PREPAREDNESSALLINA HOSPITALS ENGAGED IN AND LED DISASTER PREPAREDNESS PLANNING TO ENSURE SAFETY, EFFICIENCY AND EXCELLENT HEALTH CARE DURING TIMES OF TRAGEDY AND/OR UPSET. THIS INCLUDED PLANNING MEETINGS AND COMMUNITY MEETINGS/TRAININGS, AMONG OTHER THINGS. THESE PROGRAMS AND SERVICES, AMONG OTHERS, PROVIDE THE HOSPITALS WITHIN OUR SYSTEM THE OPPORTUNITY TO IMPACT COMMUNITY HEALTH BEFORE IT BECOMES PROBLEMATIC AND EXPENSIVE. IN ADDITION, THIS IMPORTANT WORK IS SUPPORTED BY THE MISSION OF OUR ORGANIZATION AND IS OUR RESPONSIBILITY AS A NOT-FOR-PROFIT HEALTH CARE ORGANIZATION. WE WILL CONTINUE TO CONTRIBUTE TO IMPROVING THE HEALTH OF THE COMMUNITIES WE SERVE THROUGH THE PROMOTION OF COMMUNITY HEALTH. PART III, LINE 4: THE ORGANIZATION HAS ADOPTED HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION [HFMA] STATEMENT NO. 15, VALUATION AND FINANCIAL STATEMENT PRESENTATION OF CHARITY CARE AND BAD DEBTS BY INSTITUTIONAL HEALTHCARE PROVIDERS (STATEMENT 15). AS DISCLOSED IN THE FOOTNOTES TO THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS (AS PROVIDED BELOW VERBATIM), THE PROVISIONS FOR BAD DEBT AND CHARITY CARE ARE BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING HISTORICAL AND ECONOMIC CONDITIONS, TRENDS IN HEALTHCARE COVERAGE, AND OTHER COLLECTION INDICATORS. THEREFORE, THE BAD DEBT AMOUNT STATED FOR FINANCIAL REPORTING PURPOSES IS REPORTED "NET" OF ANY ANTICIPATED PATIENT DISCOUNTS TO WHICH THE PATIENT MAY BE ELIGIBLE INCLUDING, BUT NOT LIMITED TO, THE UNINSURED DISCOUNT PROGRAM (DISCUSSED ABOVE) AND REFLECTS THE ESTIMATED AMOUNT REPORTED AS "NET PATIENT SERVICE REVENUE" DURING THE CURRENT PERIOD OR ANY PREVIOUS PERIOD. THIS DOES NOT NECESSARILY EQUAL THE "COST" TO PROVIDE THE MEDICAL SERVICES. ALSO, NOTE THAT AMOUNTS RELATED TO PATIENTS WHO HAVE QUALIFIED UNDER THE CHARITY CARE PROGRAM ARE NOT INCLUDED IN EITHER NET PATIENT REVENUE OR IN BAD DEBT EXPENSE. IN OTHER WORDS, THE BAD DEBT EXPENSE AS REPORTED IN THE EXPENSE SECTION OF THE FINANCIAL STATEMENTS AND FUNCTIONAL EXPENSE STATEMENT OF THE FORM 990 DOES NOT INCLUDE AMOUNTS RELATED TO QUALIFIED CHARITY CARE PATIENTS AND IS STATED AT THE "NET" EXPECTED OR ANTICIPATED COLLECTION AMOUNT WHICH MAY BE SIGNIFICANTLY DIFFERENT THAN PATIENT CHARGES DUE TO THE APPLICATION OF DISCOUNTS SUCH AS THOSE PROVIDED UNDER THE UNINSURED DISCOUNT PROGRAM. THIS AMOUNT ALSO CONSTITUTES A DIFFERENT AMOUNT THAN THE ORGANIZATION'S ACTUAL COST TO PROVIDE THE MEDICAL SERVICES. TO ARRIVE AT THE FORM 990, PART III, LINE 2 BAD DEBT "AT COST", THE ORGANIZATION HAS APPLIED A RATIO OF PATIENT CARE COST TO CHARGES (COST TO CHARGE RATIO) TO THE ESTIMATED PATIENT CHARGE AMOUNT INCLUDED IN BAD DEBT AFTER REMOVING THE ANTICIPATED DISCOUNTS. THE COST TO CHARGE RATIO IS CALCULATED INDEPENDENTLY FOR EACH HOSPITAL OR OPERATING UNIT. THE RESULTING BAD DEBT (AT COST) AMOUNT FOR EACH HOSPITAL AND OPERATING UNIT IS THEN AGGREGATED TO ARRIVE AT THE BAD DEBT (AT COST) REPORTED ON LINE 2. THIS PROCESS PROVIDES A VERY CONSERVATIVE ESTIMATE OF THE ORGANIZATION'S BAD DEBT (AT COST). THE ORGANIZATION HAS A ROBUST PROCESS FOR ADMINISTERING THE ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAMS INCLUDING THE CHARITY CARE AND UNINSURED DISCOUNT PROGRAM DESCRIBED IN FURTHER DETAIL IN PART VI, LINE 3. EACH PATIENT IS PROVIDED NUMEROUS OPPORTUNITIES TO APPLY TO THE COMMUNITY CARE PROGRAM AND TO PARTICIPATE, IF QUALIFIED, TO RECEIVE FREE OR DISCOUNTED MEDICAL CARE OR BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM UNDER THE ORGANIZATIONS VARIOUS FINANCIAL ASSISTANCE PROGRAMS. THE ADMINISTRATIVE PROCESS INCLUDES IDENTIFYING ANY PATIENT WITH A FINANCIAL CONCERN, AS WELL AS INFORMING, COUNSELING, QUALIFYING AND ASSISTING PATIENTS TO APPLY FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS. ALTHOUGH EACH PATIENT IS PROVIDED NUMEROUS OPPORTUNITIES TO RECEIVE FINANCIAL ASSISTANCE AND INFORMED MULTIPLE TIMES OF THE CHARITY CARE PROGRAM PRIOR TO OUR CLASSIFYING THE AMOUNTS AS BAD DEBT, IT IS POSSIBLE THAT PATIENTS WHO WOULD QUALIFY FOR CHARITY CARE DO NOT COMPLETE THE APPLICATION. THIS AMOUNT IS NOT REASONABLY ESTIMABLE. AS A TAX-EXEMPT HOSPITAL ORGANIZATION WE ARE REQUIRED TO PROVIDE NECESSARY MEDICAL CARE REGARDLESS OF THE PATIENT'S ABILITY TO PAY FOR THE SERVICES PROVIDED. DUE TO CIRCUMSTANCES BEYOND OUR CONTROL, A PERSON WHO WOULD OTHERWISE QUALIFY UNDER THE CHARITY CARE PROGRAM MAY NOT PROVIDE US THE NECESSARY INFORMATION, QUALIFY FOR THE PROGRAM, AND RECEIVE FREE CARE ALLOWING US TO CLASSIFY AND QUANTIFY IT ACCORDINGLY AND AS SUCH. ULTIMATELY, THOSE AMOUNTS ARE WRITTEN-OFF AND REPORTED AS BAD DEBT EXPENSE. ANY METHODOLOGY WE COULD USE TO QUANTIFY AND PROVIDE AN ESTIMATE OF HOW MUCH BAD DEBT (AT COST AND IF ANY) REPORTED ON LINE 2 REASONABLY COULD BE ATTRIBUTABLE TO PERSONS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE ORGANIZATION'S CHARITY CARE POLICY AND FOR US TO PROVIDE AN ESTIMATE OF WHAT PORTION OF BAD DEBT, IF ANY, THE ORGANIZATION BELIEVES SHOULD CONSTITUTE COMMUNITY BENEFIT WOULD BE PURELY SPECULATIVE, IMPRECISE AND SUBJECT TO INHERENT METHODOLOGY FLAWS. WHILE WE FIRMLY BELIEVE, FOR THE REASONS STATED ABOVE, THAT SOME COMPONENT OF OUR REPORTED BAD DEBT EXPENSE (AT COST) ON LINE 2 CONSTITUTES AMOUNTS RELATED TO PERSONS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE ORGANIZATION'S CHARITY CARE PROGRAM, WE CANNOT REASONABLY QUANTIFY THE AMOUNT AND RESPECTFULLY DECLINE THE OPPORTUNITY TO PROVIDE AN AMOUNT. THEREFORE, WE HAVE REPORTED ZERO OR NONE FOR FORM 990, SCHEDULE H, PART III, LINE 3. FOOTNOTES TO AUDITED FINANCIAL STATEMENT THAT DESCRIBE BAD DEBT EXPENSE ARE AS FOLLOWS:2N. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES/NET PATIENT SERVICE REVENUENET PATIENT SERVICE REVENUE IS REPORTED AT THE ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS AND THIRD-PARTY PAYERS FOR SERVICES PROVIDED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS DUE TO AUDITS, REVIEWS, AND INVESTIGATIONS. RETROACTIVE ADJUSTMENTS ARE CONSIDERED IN THE RECOGNITION OF REVENUE ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED, AND SUCH AMOUNTS ARE ADJUSTED IN FUTURE PERIODS AS ADJUSTMENTS BECOME KNOWN OR AS SUCH REVENUE IS NO LONGER SUBJECT TO SUCH AUDITS, REVIEWS, AND INVESTIGATIONS.THE PROVISIONS FOR BAD DEBTS AND CHARITY CARE ARE BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING HISTORICAL BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTHCARE COVERAGE, AND OTHER COLLECTION INDICATORS. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, THE SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES, SUBJECT TO THE TERMS OF CERTAIN RESTRICTIONS ON COLLECTION EFFORTS AS DETERMINED BY THE SYSTEM. PART III, LINE 8: THE ORGANIZATION HAS MORE THAN ONE MEDICARE PROVIDER NUMBER AND THEREFORE AGGREGATED THE AMOUNTS REPORTED IN THE MEDICARE COST REPORTS AS THE SOURCE FOR THE AMOUNTS REPORTED ON PART III, LINES 5 & 6 AS OUTLINED IN THE FORM 990, SCHEDULE H INSTRUCTIONS. FOR MEDICARE COST REPORTS, ALLINA USES A RATIO OF PATIENT CARE COSTS TO CHARGES (COST TO CHARGE RATIO) TO DETERMINE MEDICARE ALLOWABLE COSTS. GENERALLY, THE RATIO IS CALCULATED AS THE TOTAL MEDICARE ALLOWABLE PATIENT COSTS OVER THE TOTAL PATIENT CHARGES. MEDICARE CHARGES MULTIPLIED BY THIS RATIO EQUALS THE MEDICARE ALLOWABLE COSTS REPORTED IN THE MEDICARE COST REPORTS. THE COST TO CHARGE RATIO IS CALCULATED INDEPENDENTLY FOR EACH MEDICARE COST REPORT/PROVIDER NUMBER. ALLINA BELIEVES THAT AT LEAST SOME PORTION OF THE COSTS WE INCUR IN EXCESS OF PAYMENTS RECEIVED FROM THE FEDERAL GOVERNMENT FOR PROVIDING MEDICAL SERVICES TO MEDICARE ENROLLEES AND BENEFICIARIES UNDER THE FEDERAL MEDICARE PROGRAM (SHORTFALL OR MEDICARE SHORTFALL) CONSTITUTES A COMMUNITY BENEFIT. ALLINA'S PROVIDING OF THESE SERVICES CLEARLY LESSENS THE BURDENS OF GOVERNMENT BY ALLEVIATING THE FEDERAL GOVERNMENT FROM HAVING TO DIRECTLY PROVIDE THESE MEDICAL SERVICES. AS DEMONSTRATED AND CALCULATED ON FORM 990, SCHEDULE H, PART III, LINE 7, OUR MEDICARE "ALLOWABLE COSTS" CLEARLY EXCEED THE PAYMENTS WE RECEIVE FOR PROVIDING THESE MEDICAL SERVICES UNDER THE MEDICARE PROGRAM. THE TRUE COMMUNITY BENEFIT FOR OUR PARTICIPATION IN THE CURRENT MEDICARE PROGRAM IS DEPENDENT ON HOW EFFICIENTLY AND COST EFFECTIVELY THE FEDERAL GOVERNMENT COULD OPERATE A DIRECT MEDICAL CARE MEDICARE PROGRAM OR ALTERNATIVELY THE COST TO THE GOVERNMENT TO CONTRACT OUT SUCH SERVICES THOUGH A COMPETITIVE BIDDING PROCESS IN THE OPEN MARKETS FOR THE SAME OR SIMILAR SERVICES FACTORING IN ITEMS SUCH AS QUALITY OF CARE, OUTCOMES AND SIMILAR IMPORTANT FACTORS AS COMPARED TO ALLINA'S ACTUAL COSTS OF PROVIDING THE MEDICAL CARE. THE MEDICARE SHORTFALL CALCULATION ON THE FORM 990, SCHEDULE H, PART III, LINE 7 SIGNIFICANTLY UNDERSTATES ALLINA'S ACTUAL MEDICARE SHORTFALL FOR TWO REASONS. FIRST, ALLINA INCURS SIGNIFICANT COSTS IN EXCESS OF PAYMENTS UNDER THE MEDICARE PROGRAM FOR PROVIDING CERTAIN SERVICES THAT ARE NOT SUBJECT TO MEDICARE COST REPORTING AND THEREFORE NOT REFLECTED IN OUR COST AMOUNTS ON LINE 6. SECOND, THE LINE 6 LIMITS OUR REPORTED COSTS TO ONLY MEDICARE "ALLOWABLE COSTS" AS SOLELY DETERMINED BY THE FEDERAL GOVERNMENT MEDICARE PROGRAM. FOR THESE TWO REASONS, THE MEDICARE SHORTFALL REPORTED ON LINE 7 SIGNIFICANTLY UNDERSTATES ALLINA'S ACTUAL MEDICARE SHORTFALL AND THE ACTUAL COST OF PROVIDING MEDICAL CARE TO MEDICARE PROGRAM PARTICIPANTS. WE ESTIMATE THESE TWO ITEMS UNDERSTATE ALLINA'S REPORTED MEDICARE SHORTFALL BY OVER $128 MILLION. WE BELIEVE A DIRECT MEDICAL SERVICE MEDICARE PROGRAM OPERATED BY THE FEDERAL GOVERNMENT AND THE COST TO THE GOVERNMENT TO CONTRACT OUT THE SERVICES UNDER A COMPETITIVE BIDDING PROCESS MAY EVEN PROVE TO BE MORE EXPENSIVE TO THE FEDERAL GOVERNMENT THAN ALLINA'S REPORTED MEDICARE "ALLOWABLE COSTS" ON LINE 6 GIVEN OUR QUALITY OF CARE, SUCCESSFUL OUTCOMES AND THE SIGNIFICANT DIFFERENCE BETWEEN ACTUAL COSTS WE INCUR AND MEDICARE "ALLOWABLE COSTS" IN PROVIDING CARE UNDER THE MEDICARE PROGRAM. THEREFORE, WE FIRMLY BELIEVE THAT THERE IS A TRUE COMMUNITY BENEFIT COMPONENT TO OUR PARTICIPATION IN THE FEDERAL MEDICARE PROGRAM. PART III, LINE 9B: THE ORGANIZATION'S WRITTEN DEBT COLLECTION POLICY AND COLLECTION PRACTICES APPLY UNIFORMLY TO ALL PATIENTS AND INCLUDE PROVISIONS RELATED TO THE ORGANIZATIONS CHARITY CARE PROGRAM AND OTHER FINANCIAL ASSISTANCE PROGRAMS. IF A PATIENT IS KNOWN TO QUALIFY FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE AUTOMATICALLY AFFORDED THE PROGRAM BENEFITS FOR UP TO ONE YEAR AS THEY WOULD HAVE ALREADY PROVIDED INFORMATION NECESSARY FOR US TO MAKE SUCH A DETERMINATION. FOR EXAMPLE, A PATIENT THAT QUALIFIED FOR THE ORGANIZATION'S CHARITY CARE PROGRAM BEFORE RECEIVING SERVICES WOULD NOT RECEIVE A BILLING STATEMENT FOR THE MEDICAL SERVICES PROVIDED. IN THE CASE OF A PATIENT QUALIFYING FOR THE CHARITY CARE PROGRAM AFTER RECEIVING SERVICES AND THE COMMENCEMENT OF CERTAIN COLLECTION ACTIVITIES, THE AMOUNTS ARE DISCHARGED AS CHARITY CARE AND ALL COLLECTION ACTIVITIES CEASE. AS DISCUSSED IN THE RESPONSE TO PART VI, LINE 3, PATIENTS ARE INFORMED AND EDUCATED ON THE ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAMS INCLUDING THE ORGANIZATION'S CHARITY CARE PROGRAM AS PART OF THE ROUTINE REGISTRATION, ADMISSION, INTAKE, BILLING AND COLLECTION PROCESSES. IF A PATIENT DESIRES TO APPLY FOR THE CHARITY CARE PROGRAM, PERSONNEL WILL SEND AN APPLICATION TO THE PATIENT. IF COLLECTION ACTIVITIES HAVE COMMENCED, THOSE ACTIVITIES WILL BE SUSPENDED FOR THIRTY (30) DAYS TO ALLOW TIME FOR THE APPLICATION PROCESS. COLLECTION ACTIVITY MAY RESUME IF, AFTER 30 DAYS, A COMPLETED APPLICATION HAS NOT BEEN RECEIVED. IN THE CASE OF AN INCOMPLETE APPLICATION, THE ORGANIZATION MAY RESUME COLLECTION ACTIVITIES IF REQUESTS FOR ADDITIONAL INFORMATION ARE NOT MET WITH A TIMELY RESPONSE. IF AN APPLICANT DOES NOT MEET THE ELIGIBILITY CRITERIA AND THE APPLICATION IS DENIED, COLLECTION ACTIVITY MAY RESUME UPON DENIAL. HOWEVER, THE PATIENT MAY STILL BE ELIGIBLE FOR OTHER FINANCIAL ASSISTANCE PROGRAMS WHICH ARE APPLIED AS WARRANTED BASED UPON THE INFORMATION PROVIDED. SUCH ACTIVITIES ARE FULLY EXPLAINED TO THE PATIENT DURING THE COLLECTION PROCESS. PART VI, LINE 2: ALLINA HEALTH SYSTEM (ALLINA) TOGETHER WITH ITS SUBSIDIARIES AND AFFILIATES AS DESCRIBED IN PART VI, LINE 6 COORDINATE COMMUNITY BENEFIT ACTIVITIES AND IDENTIFIES COMMUNITY NEEDS AS A SYSTEM TO PROMOTE THE HEALTH OF THE COMMUNITIES SERVED BY THE ORGANIZATION. ALLINA HEALTH SYSTEM (ALLINA) CONDUCTED A SYSTEM-LEVEL NEEDS ASSESSMENT IN 2004 THROUGH THE USE OF SECONDARY DATA SOURCES SUCH AS STATE AND FEDERAL DATASETS AND PEER-REVIEWED JOURNAL ARTICLES TO DETERMINE LEADING HEALTH ISSUES WITHIN ALLINA'S SERVICE AREA. THAT PROCESS LED TO THE DEVELOPMENT OF THREE SYSTEM-WIDE INITIATIVES: HEART HEALTH LIVING, CHILDHOOD OBESITY AND ACCESS TO HEALTH CARE. ALLINA COMMITTED TO WORKING ON THESE ISSUES FOR FIVE YEARS, THROUGH THE YEAR 2009. THEREFORE, IN 2010, ALLINA DEVELOPED AND IMPLEMENTED A NEW PROCESS AS A MEANS TO ASSESS COMMUNITY NEEDS AND BUILD PLANS TO CONTINUE TO RESPOND TO THOSE NEEDS FOR FISCAL YEARS 2010-2012.SECONDARY DATA ANALYSISTHE ASSESSMENT BEGAN WITH A REVIEW OF EXISTING NATIONAL, STATE AND LOCAL DATA TO IDENTIFY ISSUES AFFECTING ALL ALLINA SERVICE AREAS. ONCE A LIST OF HEALTH ISSUES WAS DEVELOPED, COMMUNITY ENGAGEMENT STAFF AND ALLINA LEADERS FROM THROUGHOUT THE SYSTEM IDENTIFIED BROAD SYSTEM-LEVEL PRIORITY AREAS THROUGH THE USE OF A PRIORITY-SETTING PROCESS AND HEALTH ISSUES SCORING TOOL. FROM THIS PROCESS, THREE PRIORITY ISSUES WERE IDENTIFIED:- HEALTHFUL EATING- ACTIVE LIVING- STRESS REDUCTION/LIFE BALANCE THESE INTERRELATED ISSUES WERE IDENTIFIED AS PRIORITIES BECAUSE THEY AFFECT MULTIPLE HEALTH OUTCOMES AND GREATLY IMPACT COMMUNITY HEALTH. COMMUNITY HEALTH DIALOGUESWITH PRIORITY ISSUES IDENTIFIED, THE NEXT STEP IN THE ASSESSMENT WAS HOSTING COMMUNITY HEALTH DIALOGUES IN EACH OF THE NINE REGIONS SERVED BY ALLINA. THESE DIALOGUES WERE FACILITATED BY AN OUTSIDE FACILITATOR AND ENGAGED 260 COMMUNITY MEMBERS IN CONVERSATION ABOUT ASSETS AND BARRIERS TO HEALTHFUL EATING, ACTIVE LIVING AND LIFE BALANCE IN THEIR COMMUNITIES. COMMUNITY MEMBERS WERE ALSO ASKED WHAT THEY THINK ALLINA SHOULD DO TO IMPROVE HEALTH IN THEIR COMMUNITIES RELATED TO THESE ISSUES. THE TOP SIX RECOMMENDATIONS FOR ALLINA WERE AS FOLLOWS:1.OFFER HEALTH EDUCATION IN COMMUNITY SETTINGS2.INCREASE COLLABORATION AND PARTNERSHIP WITH AND COMMUNICATION ABOUT EXISTING RESOURCES3.SHIFT MEDICAL PRACTICES TOWARD ILLNESS PREVENTION AND PATIENT WELLNESS4.MODEL HEALTH AND WELLNESS PROMOTION WITHIN ALLINA FACILITIES5.FOSTER BEHAVIOR CHANGE THROUGH SPONSORSHIP OF COMMUNITY ACTIVITIES THAT PROMOTE HEALTH6.ADVOCATE FOR PUBLIC POLICY CHANGESALLINA EMPLOYEE SURVEYFOLLOWING THE DIALOGUES, A SURVEY WAS CONDUCTED WITH ALLINA EMPLOYEES TO GAIN PERSPECTIVES AND IDEAS RELATED TO THE INFORMATION RECEIVED THROUGH THE COMMUNITY HEALTH DIALOGUES. THE SURVEY ASKED RESPONDENTS TO 1) PROVIDE INFORMATION ABOUT EFFORTS ALREADY UNDERWAY THROUGHOUT THE ALLINA SYSTEM THAT RELATED TO THE COMMUNITY INPUT RECEIVED AT THE DIALOGUES AND 2) SELECT THEIR TOP CHOICES FROM AND PROVIDE SPECIFIC IDEAS ABOUT THE SIX COMMUNITY SUGGESTIONS. THERE WERE 136 TOTAL RESPONDENTS TO THE SURVEY THAT SPANNED ALLINA'S SERVICES AND SERVICE AREAS. SURVEY RESULTS SHOWED THAT OF THE SIX COMMUNITY SUGGESTIONS, THE TOP THREE THAT EMPLOYEES THOUGHT ALLINA SHOULD WORK ON INCLUDED:1. SHIFT MEDICAL PRACTICES TOWARD ILLNESS PREVENTION AND PATIENT WELLNESS (28.7%)2. MODEL HEALTH AND WELLNESS PROMOTION WITHIN ALLINA FACILITIES (21.3%)3. INCREASE COLLABORATION, PARTNERSHIP AND COMMUNICATION ABOUT EXISTING RESOURCES (21.3%)THE NEXT STEP IN THE PROCESS WAS TO USE THE ASSESSMENT INFORMATION TO DEVELOP A 2011 SYSTEM-WIDE STRATEGY RELATED TO THE THREE PRIORITY AREAS. TO DO SO, ALLINA CONVENED KEY STAKEHOLDERS FROM ACROSS THE ALLINA SYSTEM TO REVIEW ASSESSMENT INFORMATION, DETERMINE THE INTERSECTION BETWEEN COMMUNITY INTERESTS AND SUGGESTIONS AND ALLINA STRENGTHS AND INTERESTS, AND BEGIN DEVELOPING THE STRATEGY TO IMPROVE HEALTHFUL EATING, ACTIVE LIVING AND STRESS REDUCTION/LIFE BALANCE. IN ADDITION, REGIONAL COMMUNITY ENGAGEMENT LEADS WORKED WITH COMMUNITY MEMBERS AND INTERNAL STAKEHOLDERS IN THEIR REGIONS TO REVIEW ASSESSMENT INFORMATION AND DEVELOP 2011 REGIONAL WORKPLANS TO MEET THE NEEDS OF THE LOCAL COMMUNITIES AS IT RELATES TO THE THREE SYSTEM-LEVEL PRIORITIES. PART VI, LINE 3: A KEY COMPONENT OF ALLINA'S MISSION IS TO DELIVER COMPASSIONATE, HIGH QUALITY, AFFORDABLE HEALTH CARE SERVICES AND TO ADVOCATE FOR THOSE WITH LIMITED FINANCIAL MEANS. ALLINA STRIVES TO ENSURE THAT THE FINANCIAL CAPACITY OF PEOPLE WHO NEED HEALTH CARE SERVICES DOES NOT PREVENT THEM FROM SEEKING OR RECEIVING MEDICAL CARE. PROVIDING CONVENIENT ACCESS TO NECESSARY MEDICAL CARE REGARDLESS OF ONE'S ABILITY TO PAY FOR THOSE SERVICES IS IMPORTANT TO US. ALLINA HAS ESTABLISHED THE FOLLOWING FINANCIAL ASSISTANCE PROGRAMS:- COMMUNITY (PARTNERS) CARE PROGRAM (CHARITY CARE)- UNINSURED DISCOUNT PROGRAM- SPECIAL CIRCUMSTANCES- MEDELIGIBLE SERVICES- MEDCREDIT FINANCIAL SERVICESOUR CARE GOES BEYOND MEDICAL CARE ASSISTANCE. WE ALSO HELP PEOPLE GET FOOD STAMPS, WIC (WOMEN, INFANTS AND CHILDREN, A FEDERAL PROGRAM THAT SUPPLIES NUTRITIOUS FOODS) OR HEATING ASSISTANCE - ALL OF WHICH ARE VITALLY IMPORTANT TO A PATIENT'S RECOVERY, HEALTH AND WELL-BEING. FOR MORE INFORMATION ON ANY OF THE ALLINA FINANCIAL ASSISTANCE PROGRAMS CALL 612-262-9000 OR 1-800-859-5077. YOU MAY ALSO VISIT WWW.ALLINA.COM AND CLICK ON THE FINANCIAL ASSISTANCE LINK. CHARITY CARE PROGRAM - THE COMMUNITY (PARTNERS) CARE PROGRAM THE COMMUNITY (PARTNERS) CARE PROGRAM PROVIDES FREE MEDICALLY NECESSARY CARE TO ALL PERSONS AT OR BELOW 275 PERCENT OF THE FEDERAL POVERTY GUIDELINES AS PUBLISHED ANNUALLY IN THE FEDERAL REGISTRAR. THE PROGRAM WAS ESTABLISHED TO ASSIST PATIENTS WHO DO NOT QUALIFY FOR MEDICAL ASSISTANCE OR MINNESOTA CARE AND WHOSE ANNUAL INCOMES ARE AT OR BELOW 275 PERCENT OF THE FEDERAL POVERTY LEVEL. THE APPLICATION IS BRIEF AND ASKS FOR INFORMATION ON FAMILY SIZE, EMPLOYMENT, INCOME, BANKING AND INSURANCE. IF PATIENTS MEET THE PROGRAM ELIGIBILITY GUIDELINES, THEIR TOTAL ALLINA BALANCE WILL BE ZERO. THEY WILL RECEIVE FREE MEDICAL CARE. AN ELIGIBLE INDIVIDUAL WILL BE COVERED BY THE PROGRAM FOR UP TO ONE YEAR BARRING ANY SIGNIFICANT CHANGE IN INCOME. PATIENTS MAY BE ASKED TO APPLY FOR MEDICAL ASSISTANCE AND MINNESOTA CARE AND BE FOUND INELIGIBLE FOR THOSE PROGRAMS BEFORE THEY QUALIFY FOR THE COMMUNITY (PARTNERS) CARE. UNINSURED DISCOUNT PROGRAM - THE UNINSURED DISCOUNT PROGRAM PROVIDES A DISCOUNT ON BILLED CHARGES TO UNINSURED PATIENTS, AND INSURED PATIENTS WHO RECEIVE UNINSURED TREATMENT, FOR MEDICALLY NECESSARY CARE RECEIVED FROM ANY ALLINA HOSPITAL, HOSPITAL BASED CLINIC AND WHOLLY-OWNED AMBULATORY SURGERY CENTERS. UNINSURED PATIENTS AND INSURED PATIENTS WHO RECEIVE UNINSURED TREATMENT ARE ELIGIBLE FOR A DISCOUNT BASED UPON THEIR INCOME LEVEL AND THE LOCATION OF THE SERVICES PROVIDED. ALL PATIENTS WITH AN ANNUAL INCOME AT OR BELOW $125,000 ARE ELIGIBLE FOR A DISCOUNT. THE DISCOUNT IS ALSO GENERALLY EXTENDED TO PATIENTS WITH AN ANNUAL INCOME ABOVE $125,000. THERE ARE TWO DISCOUNTS LEVELS ESTABLISHED, ONE FOR METRO HOSPITALS AND THEIR HOSPITAL BASED CLINICS AND ONE FOR REGIONAL HOSPITALS AND THEIR HOSPITAL BASED CLINICS WITHIN THE ALLINA SYSTEM. SPECIAL CIRCUMSTANCES ASSISTANCE (ON INDIVIDUAL CASE BY CASE BASIS) - THE ORGANIZATION PROVIDES FOR THE CONSIDERATION OF SPECIAL CIRCUMSTANCES FOR THE "MEDICALLY INDIGENT". THE ORGANIZATION EXTENDS THE CHARITY CARE PROGRAM IN INSTANCES THE ORGANIZATION HAS DETERMINED THE PATIENT IS UNABLE TO PAY SOME OR ALL OF THEIR MEDICAL BILLS DUE TO CATASTROPHIC CIRCUMSTANCES EVEN THOUGH THEY HAVE INCOME OR ASSETS THAT OTHERWISE EXCEED THE GENERALLY APPLICABLE ELIGIBILITY CRITERIA FOR THE FREE CARE PROGRAM OR THE DISCOUNTED CARE PROGRAM (DESCRIBED BELOW) UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAM GUIDELINES. FINANCIAL ASSISTANCE SERVICES WILL PROVIDE AN EVALUATION OF PATIENTS WITH SPECIAL CIRCUMSTANCES. THERE MAY BE A CIRCUMSTANCE WHERE PATIENTS EXPERIENCE A CATASTROPHIC EVENT THAT PUTS THEM IN A DEVASTATING FINANCIAL POSITION WHEREBY THE PROGRAM REPRESENTATIVES WILL DETERMINE HOW TO BEST SUPPORT THEM FINANCIALLY.MEDELIGIBLE SERVICES - MEDELIGIBLE SERVICES PROVIDES ADVOCACY SUPPORT TO PATIENTS WHO HAVE DIFFICULTY PAYING THEIR MEDICAL BILLS. THEY CAN ASSIST PATIENTS WITH APPLYING FOR FEDERAL, STATE AND COUNTY BENEFIT PROGRAMS. THE MEDELIGIBLE SERVICES PERSONNEL ARE ADVOCATES WHO EDUCATE PATIENTS AND FAMILIES ABOUT THE ADVANTAGE OF PROGRAMS AND ASSIST THEM WITH GETTING HELP. PERSONNEL CAN PROVIDE ASSISTANCE WITH MEDICAID AND MEDICARE, SOCIAL SECURITY, VETERAN'S ADMINISTRATION, FOOD STAMPS, EMERGENCY FOOD, AND SHELTER. MEDCREDIT FINANCIAL SERVICES - MEDCREDIT FINANCIAL SERVICES PROVIDES FINANCIAL LOANS TO PATIENTS WHO CANNOT AFFORD TO PAY THEIR MEDICAL BILLS. THE PATIENT CAN CONSOLIDATE ALL MEDICAL EXPENSES FROM PARTICIPATING PROVIDERS SUCH THAT THE PATIENT HAS ONLY ONE MONTHLY PAYMENT. THERE IS NO CREDIT APPLICATION REQUIRED AND NO ANNUAL FEES OR DUES. THE ANNUAL PERCENTAGE INTEREST RATE IS 8 PERCENT. ONCE A PATIENT HAS ESTABLISHED A MEDCREDIT ACCOUNT, AMOUNTS CAN BE ADDED ON ANY ADDITIONAL MEDICAL EXPENSES FOR THEMSELVES AND THEIR FAMILY. THE FINANCIAL ASSISTANCE SERVICES INFORMATION AND EDUCATION METHODS - ALLINA HAS ROBUST METHODS TO INFORM AND EDUCATE PATIENTS AND PERSONS WHO ARE BILLED FOR PATIENT CARE ABOUT THEIR ELIGIBILITY FOR ASSISTANCE UNDER THE ORGANIZATIONS FINANCIAL ASSISTANCE PROGRAMS INCLUDING ITS CHARITY CARE PROGRAM AND ALSO ABOUT GOVERNMENT PROGRAMS FOR WHICH THEY MAY BE ELIGIBLE TO RECEIVE BENEFITS. EACH PATIENT BILLING STATEMENT CONTAINS INFORMATION ABOUT THE FINANCIAL ASSISTANCE PROGRAMS AND INCLUDES CONTACT INFORMATION. THE ALLINA WEBSITE HOMEPAGE AT WWW.ALLINA.COM PROMINENTLY CONTAINS A LINK TO THE FINANCIAL ASSISTANCE SERVICES PAGE WHICH DESCRIBES THE ORGANIZATIONS FINANCIAL ASSISTANCE PROGRAMS AND INCLUDES CONTACT INFORMATION.THE ORGANIZATION POSTS SUMMARIES OF ITS FINANCIAL ASSISTANCE PROGRAMS IN BROCHURES IN ADMISSIONS AREAS, EMERGENCY ROOMS, AND OTHER AREAS OF THE ORGANIZATIONS FACILITIES WHERE ELIGIBLE PATIENTS ARE LIKELY TO BE PRESENT. THE BROCHURES CONTAIN SUMMARIES OF THE FINANCIAL ASSISTANCE PROGRAMS AND INCLUDE CONTACT INFORMATION FOR THE PROGRAMS. THIS INFORMATION IS AVAILABLE IN VARIOUS LANGUAGES SUCH AS HMONG, SOMALI, AND SPANISH. REGISTRATION, ADMISSIONS AND INTAKE PERSONNEL ARE TRAINED TO PROVIDE FINANCIAL ASSISTANCE PROGRAM INFORMATION TO ANYONE EXPRESSING A CONCERN ABOUT THEIR ABILITY TO PAY FOR SERVICES. ALL "SELF-PAY" PATIENTS (THE PATIENT IS NOT COVERED BY INSURANCE OR A GOVERNMENT PROGRAM) THAT COMES TO ONE OF THE ORGANIZATION'S EMERGENCY ROOMS RECEIVES A PACKET OF INFORMATION CONTAINING EVERYTHING NECESSARY TO APPLY FOR THE ORGANIZATIONS FINANCIAL ASSISTANCE PROGRAMS AND CERTAIN GOVERNMENT PROGRAMS. THERE IS CONTACT INFORMATION AND TELEPHONE NUMBERS THEY CAN CALL WITH ANY QUESTIONS OR TO RECEIVE ASSISTANCE IN COMPLETING APPLICATIONS. FINANCIAL ASSISTANCE PROGRAM PERSONNEL ALSO MEET DIRECTLY WITH ANY SELF-PAY PATIENT ADMITTED TO THE HOSPITAL. PERSONNEL WILL MEET WITH PATIENTS WHEREVER IT IS MOST CONVENIENT FOR THE PATIENT SUCH AS THE HOSPITAL, A CLINIC, THE ORGANIZATION'S OFFICES OR THE PATIENT'S HOME.ALLINA HAS A SYSTEM WIDE INTERPRETER SERVICES TEAM THAT PROVIDES INTERPRETERS TO PATIENTS, COMPANIONS AND FAMILIES WHO HAVE LIMITED ENGLISH PROFICIENCY (LEP) OR ARE DEAF OR HARD OF HEARING (DHH). THIS SERVICE IS PROVIDED AT NO COST TO THE PATIENT. LDP AND DHH PERSONNEL ARE TRAINED TO INFORM AND EDUCATE PATIENTS ABOUT THE FINANCIAL ASSISTANCE PROGRAMS. ALL PERSONNEL RESPONSIBLE FOR THE ORGANIZATIONS COLLECTION ACTIVITIES ARE EXTENSIVELY TRAINED ON THE ORGANIZATION'S FINANCIAL ASSISTANCE PROGRAMS. ANY TIME A PATIENT EXPRESSES A CONCERN REGARDING THEIR ABILITY TO PAY FOR SERVICES, THE PERSONNEL EXPLAIN THE FINANCIAL ASSISTANCE PROGRAMS, ASK CERTAIN QUESTIONS TO OBTAIN INFORMATION AND TO DETERMINE WHICH FINANCIAL ASSISTANCE PROGRAMS THE PATIENT MAY QUALIFY AND BEST FITS THE PATIENTS' NEEDS. PART VI, LINE 4: ALLINA HEALTH SYSTEM (ALLINA) TOGETHER WITH ITS SUBSIDIARIES AND AFFILIATES AS DESCRIBED IN PART VI, LINE 6 COORDINATE COMMUNITY BENEFIT ACTIVITIES AND IDENTIFIES COMMUNITY NEEDS AS A SYSTEM TO PROMOTE THE HEALTH OF THE COMMUNITIES SERVED BY THE ORGANIZATION.ALLINA HOSPITALS & CLINICS IS A NOT-FOR-PROFIT SYSTEM OF HOSPITALS, CLINICS AND OTHER HEALTH CARE SERVICES. ALLINA OWNS AND OPERATES 10 HOSPITALS, MORE THAN 90 CLINICS, AND HEALTH CARE SERVICES, INCLUDING HOME CARE, HOSPICE CARE, PALLIATIVE CARE, OXYGEN AND MEDICAL EQUIPMENT, PHARMACIES AND EMERGENCY MEDICAL TRANSPORTATION IN OPERATION WITHIN MINNESOTA AND WESTERN WISCONSIN. IN 2010, OVER 95 PERCENT OF ALLINA HOSPITAL PATIENTS CAME FROM MINNESOTA AND WISCONSIN, THE MAJORITY OF WHICH CAME FROM COUNTIES IN AND SURROUNDING THE METROPOLITAN AREAS OF MINNEAPOLIS AND ST. PAUL. IN 2010, ALLINA DEVELOPED A NEW COMMUNITY ENGAGEMENT STRATEGY TO WORK MORE EFFECTIVELY WITH COMMUNITIES SERVED BY ALLINA HOSPITALS & CLINICS. THIS ENGAGEMENT STRATEGY INCLUDED THE DEVELOPMENT OF NINE REGIONS MADE UP OF THE COMMUNITIES SERVED BY ALLINA HOSPITALS & CLINICS. EACH REGION INCLUDES AT LEAST ONE HOSPITAL WITHIN OUR SYSTEM. WEST METRO THE WEST METRO REGION INCLUDES ABBOTT NORTHWESTERN HOSPITAL AND PHILLIPS EYE INSTITUTE AND SERVES MOST COMMUNITIES WITHIN HENNEPIN COUNTY, THE LARGEST COUNTY IN MINNESOTA. THE CITY OF MINNEAPOLIS IS ITS LARGEST CITY AND THE COUNTY SEAT. THE WEST METRO REGION SERVES BOTH URBAN AND SUBURBAN COMMUNITIES AND INCLUDES A RANGE OF SOCIOECONOMIC STATUSES AS WELL AS A BROAD REPRESENTATION OF RACES AND ETHNICITIES. EAST METRO THE EAST METRO REGION INCLUDES UNITED HOSPITAL AND SERVES RAMSEY, WASHINGTON AND DAKOTA COUNTIES. THIS REGION SPANS THE EASTERN EDGE OF MINNESOTA INTO THE METRO AREA SURROUNDING THE CITY OF ST. PAUL, THE CAPITAL AND SECOND-MOST POPULOUS CITY IN THE STATE. THE EAST METRO REGION IS HIGHLY DIVERSE; GEOGRAPHICALLY, SOCIOECONOMICALLY AND RACIALLY. NORTHWEST METRO THE NORTHWEST METRO REGION INCLUDES BOTH MERCY AND UNITY HOSPITALS AND PRIMARILY SERVES COMMUNITIES WITHIN ANOKA COUNTY, BUT ALSO INCLUDES AREAS WITHIN SHERBURNE AND HENNEPIN COUNTIES. ANOKA COUNTY IS THE FOURTH-MOST POPULOUS COUNTY IN THE STATE OF MINNESOTA AND INCLUDES THE NORTHWEST METROPOLITAN AREA THAT IS PREDOMINANTLY SUBURBAN IN NATURE. SOUTH METRO THE SOUTH METRO REGION INCLUDES ST. FRANCIS MEDICAL CENTER, A JOINTLY-OWNED HOSPITAL WITHIN THE ALLINA SYSTEM, AND PRIMARILY SERVES SCOTT AND CARVER COUNTIES, BUT ALSO INCLUDES COMMUNITIES IN SIBLEY, LE SUEUR, DAKOTA AND HENNEPIN COUNTIES. THIS REGION INCLUDES BOTH SUBURBAN AND SMALL COMMUNITIES IN THE SOUTHWEST AREA OF THE MINNEAPOLIS-ST. PAUL METROPOLITAN AREA. NORTHWEST REGIONAL THE NORTHWEST REGIONAL AREA INCLUDES BUFFALO HOSPITAL AND IS LOCATED WEST OF THE METROPOLITAN AREA OF MINNEAPOLIS AND ST. PAUL. THIS REGION PRIMARILY SERVES WRIGHT COUNTY, BUT ALSO SERVES COMMUNITIES WITHIN STEARNS, MEEKER AND HENNEPIN COUNTIES. THIS REGION IS MADE UP OF BOTH SMALL AND RURAL COMMUNITIES. NORTH REGIONALTHE NORTH REGIONAL AREA INCLUDES CAMBRIDGE MEDICAL CENTER AND SERVES SMALL AND RURAL COMMUNITIES WITHIN ISANTI, CHISAGO, KANABEC AND PINE COUNTIES NORTH OF THE METROPOLITAN AREA OF MINNEAPOLIS AND ST. PAUL. SOUTHWEST REGIONALTHE SOUTHWEST REGIONAL AREA IS LOCATED IN SOUTH CENTRAL MINNESOTA AND INCLUDES NEW ULM MEDICAL CENTER. THE REGION SERVES COMMUNITIES AND RURAL AREAS IN AND AROUND BROWN COUNTY AND COMMUNITIES WITHIN SIBLEY AND NICOLLET COUNTIESSOUTH REGIONALLOCATED SOUTH OF THE TWIN CITIES METROPOLITAN AREA, THE SOUTH REGIONAL REGION SERVES SMALL AND RURAL COMMUNITIES IN AND AROUND STEELE, RICE, WASECA, DODGE, AND GOODHUE COUNTIES. OWATONNA HOSPITAL SERVES THESE AREAS FROM THE COUNTY SEAT OF OWATONNA, MINNESOTA. WESTERN WISCONSINLOCATED IN WESTERN WISCONSIN, THIS REGION INCLUDES SMALL AND RURAL COMMUNITIES WITHIN PIERCE AND ST. CROIX COUNTIES. RIVER FALLS AREA HOSPITAL (RFAH) IS LOCATED WITHIN AND SERVES THIS REGION. PART VI, LINE 6: GOVERNING BODYTO ENSURE THAT THE BOARD OF DIRECTORS REPRESENTS THE COMMUNITIES SERVED BY ALLINA, THE BY-LAWS STATE THAT A MAJORITY OF THE VOTING MEMBERS OF THE BOARD OF DIRECTORS SHALL AT ALL TIMES BE INDEPENDENT CIVIC LEADERS. IN FURTHERANCE OF THIS REQUIREMENT, AND SUBJECT TO VACANCIES THAT MAY OCCUR FROM TIME TO TIME, NO MORE THAN ONE-THIRD (1/3) OF THE DIRECTORS (INCLUDING ANY EX-OFFICIO DIRECTORS WITH VOTE) MAY BE INTERESTED DIRECTORS. INTERESTED DIRECTORS SHALL INCLUDE PERSONS WHO ARE NOT ON THE BOARD OF DIRECTORS BUT SERVE ON COMMITTEES OR OTHERWISE PARTICIPATE IN THE AFFAIRS OF THE CORPORATION AND WOULD BE DEEMED INTERESTED DIRECTORS IF THEY WERE ON THE BOARD OF DIRECTORS. "INTERESTED DIRECTORS" ARE: (1) ANY MEMBERS OF THE CORPORATION'S MANAGEMENT WHO SERVE AS DIRECTORS; AND (2) ANY PHYSICIAN DIRECTORS WHO PROVIDE SERVICES IN CONJUNCTION WITH THE CORPORATION OR ANY OF ITS HOSPITALS OR CLINICS, INCLUDING WITHOUT LIMITATION SERVICES UNDER A CONTRACT WITH ANY OF THE CORPORATION'S HOSPITALS OR CLINICS, AS A PHYSICIAN EMPLOYEE OF ONE OF THE CORPORATION'S CLINICS OR AS A MEDICAL STAFF MEMBER OF ONE OF THE CORPORATION'S HOSPITALS. FUNDING FOR IMPROVEMENTS IN PATIENT CARE AND RESEARCH AS DESCRIBED IN THE COMMUNITY HEALTH IMPROVEMENT SECTION OF THE STATEMENT FOR PROGRAM SERVICES, ALLINA IS ENGAGED IN A TREMENDOUS AMOUNT OF WORK RELATED TO PROMOTING COMMUNITY HEALTH. ONE LARGE INVESTMENT ALLINA MAINTAINED IN 2010 WAS TO THE CENTER FOR HEALTHCARE INNOVATION AT ALLINA. THE CENTER RESEARCHES NEW CARE MODELS AND TREATMENTS TO TRANSFORM HEALTH AND HEALTH CARE AND ADVANCE ALLINA'S STRATEGIC VISION TO IMPROVE PATIENT CARE AND SERVE AS A CATALYST FOR CHANGE IN HEALTH CARE LOCALLY AND NATIONALLY. THREE MAIN INITIATIVES OF THE CENTER IN 2010 WERE:- ROBINA CARE GUIDE PROJECT - A PILOT PROJECT USING CARE GUIDES TO HELP PATIENTS WITH CHRONIC DISEASES LIKE DIABETES, HIGH BLOOD PRESSURE AND HEART FAILURE MANAGE THEIR HEALTH.- BACKYARD INITIATIVE - THIS INITIATIVE IS WORKING TO IMPROVE HEALTH AND HEALTH CARE THROUGH ACTIVE ENGAGEMENT WITH COMMUNITY, ADDRESSING SOCIAL DETERMINANTS OF HEALTH, AND FACILITATING PARTNERSHIPS BETWEEN COMMUNITY CARE SYSTEMS. - HEART OF NEW ULM PROJECT (HONU) - HONU IS A 10-YEAR INITIATIVE DESIGNED TO REDUCE, AND EVENTUALLY ELIMINATE, HEART ATTACKS IN NEW ULM, MINNESOTA BY HELPING RESIDENTS IMPROVE THEIR HEALTH RISKS, SUCH AS PHYSICAL ACTIVITY, NUTRITION, OBESITY, OR TOBACCO USE, AMONG OTHERS. THE CENTER IS ALSO INVOLVED IN:- OVERSEEING THE ALLINA INSTITUTIONAL REVIEW BOARD OFFICE - DEVELOPING A POSITIVE DEVIANCE INITIATIVE TO IMPROVE BOTH EMPLOYEE ENGAGEMENT AND PATIENT PAIN MANAGEMENT EXPERIENCE AT UNITED HOSPITAL - PARTNERING WITH THE CLINICS TO DO CUTTING EDGE WORK ON PHYSICIAN JOB SATISFACTION AND BURNOUT - DEVELOPING A FIRST-EVER SOCIAL NETWORK ANALYSIS PROJECT BY A CARE DELIVERY ORGANIZATION- RESEARCHING CARE DELIVERY RE-DESIGN IN EMERGENCY SERVICES AND PRIMARY CARE PART VI, LINE 7: ALLINA HEALTH SYSTEM ("ALLINA") IS A MINNESOTA NONPROFIT CORPORATION WHICH, TOGETHER WITH ITS SUBSIDIARIES AND AFFILIATES, DELIVERS HIGHLY INTEGRATED HEALTH CARE SERVICES TO PATIENTS IN MINNESOTA AND WESTERN WISCONSIN. WITH APPROXIMATELY 23,000 FULL AND PART-TIME EMPLOYEES, ALLINA IS ONE OF THE LARGEST EMPLOYERS IN MINNESOTA. AS A MISSION-DRIVEN ORGANIZATION, ALLINA IS COMMITTED TO IMPROVING THE HEALTH OF THE COMMUNITIES IT SERVES. AS AN INTEGRATED HEALTH SYSTEM THAT INCLUDES TERTIARY AND REGIONAL REFERRAL HOSPITALS, EMERGENCY, AMBULATORY, HOMECARE AND HOSPICE SERVICES, AN AUTOMATED ELECTRONIC MEDICAL RECORD SYSTEM, AND APPROXIMATELY 1,200 EMPLOYED PHYSICIANS, ALLINA IS UNIQUELY POSITIONED AS A LEADER IN HEALTHCARE IN THE MINNEAPOLIS/ST. PAUL AREA. ALLINA IS THE MOST COMPREHENSIVE HEALTH CARE SYSTEM AND HAS THE LARGEST PHYSICIAN NETWORK IN MINNESOTA.ALLINA CONTROLS AND OPERATES TEN HOSPITALS AND JOINTLY OWNS AND OPERATES ONE OTHER HOSPITAL. THESE INCLUDE URBAN TERTIARY CARE, SUBURBAN COMMUNITY AND RURAL HOSPITALS. ALLINA ALSO MANAGES ONE RURAL HOSPITAL UNDER A MANAGEMENT AGREEMENT WITH THE HOSPITAL'S OWNER. ALLINA HOSPITAL HEALTH CARE SERVICES INCLUDED NEARLY 109,000 INPATIENT AND NEARLY 1,100,000 OUTPATIENT ADMISSIONS DURING THE YEAR ENDED DECEMBER 31, 2010. AS OF DECEMBER 31, 2010, ALLINA HOSPITALS HAD LICENSED BED CAPACITY OF 2,379 ACUTE CARE BEDS, 1,706 OF WHICH WERE STAFFED FOR INPATIENT SERVICES. ALLINA PROVIDES OUTPATIENT SERVICES THROUGH SEVERAL WHOLLY CONTROLLED CLINIC GROUPS THAT GENERATED MORE THAN 5,850,000 WORK RVU'S DURING THE YEAR ENDED DECEMBER 31, 2010. ALLINA'S WHOLLY-OWNED SUBSIDIARY, THE ALLINA MEDICAL CLINIC ("AMC"), CONTROLS AND OPERATES 62 PHYSICIAN CLINICS AND THREE HOSPITALIST PROGRAMS ON THE ABBOTT NORTHWESTERN, UNITED, AND UNITY HOSPITAL CAMPUSES. THE AMC EMPLOYS APPROXIMATELY 790 PHYSICIANS AND IS ONE OF THE LARGEST PHYSICIAN GROUPS IN THE MINNEAPOLIS/SAINT PAUL METROPOLITAN AREA. ALLINA SPECIALTY ASSOCIATES ("ASA"), ALSO KNOWN AS MINNEAPOLIS CARDIOLOGY ASSOCIATES ("MCA"), EMPLOYS APPROXIMATELY 65 PHYSICIANS, CONSISTING OF CARDIOLOGISTS, CARDIOTHORACIC AND VASCULAR SURGEONS. ASPEN MEDICAL GROUP ("ASPEN"), A MULTI-SPECIALTY GROUP THAT OPERATES 12 MEDICAL CLINICS, EMPLOYS APPROXIMATELY 130 PHYSICIANS AND QUELLO CLINIC LTD. ("QUELLO"), WHICH OPERATES FIVE PRIMARY CARE MEDICAL CLINICS, EMPLOYS APPROXIMATELY 30 PHYSICIANS. IN ADDITION TO THE AMC, ASA, ASPEN, AND QUELLO, ALLINA HOSPITALS DIRECTLY EMPLOY MORE THAN 350 SPECIALTY PHYSICIANS INCLUDING INTENSIVISTS/HOSPITALISTS, PERINATOLOGISTS, AND PSYCHIATRISTS. ALLINA'S HOME & COMMUNITY SERVICES DIVISION PROVIDES CARE NAVIGATION AND MANAGEMENT SERVICES, HOME CARE, HOSPICE, PALLIATIVE CARE, HOME OXYGEN & MEDICAL EQUIPMENT, ADVANCE CARE PLANNING AND SENIORCARE TRANSITIONS, A GERIATRIC CARE PRACTICE PROVIDING CARE AT MORE THAN 50 NURSING HOMES. ALLINA MEDICAL TRANSPORTATION (AMT) DIVISION IS ONE OF THE REGION'S LARGEST AMBULANCE AND MEDICAL TRANSPORT SERVICES. AMT SERVES MORE THAN 80 MINNESOTA COMMUNITIES, WHERE ABOUT 1 MILLION PEOPLE LIVE. AMT EMPLOYS AROUND 400 PARAMEDICS, EMERGENCY MEDICAL TECHNICIANS, DISPATCHERS, MAINTENANCE AND ADMINISTRATION AND SUPPORT PERSONNEL. AMT SERVICES INCLUDE PRIORITY MEDICAL (911) DISPATCH, 911 PRE-ARRIVAL INSTRUCTIONS, EMERGENCY AND NON-EMERGENCY AMBULANCE RESPONSE, THE GREATER MINNESOTA RIDE PROGRAM, WHEELCHAIR TRANSPORT, AND FLIGHT CARE PROGRAM (IN-FLIGHT MEDICAL KITS).IN ADDITION TO THE CHARITY CARE DISCLOSED ON THIS SCHEDULE H, ALLINA AFFILIATED ORGANIZATIONS PROVIDED $8,615,616 OF CHARITY CARE (AT COST) WHICH IS NOT DISCLOSED ON A SCHEDULE H ELSEWHERE AS MANY OF THE AFFILIATED ORGANIZATIONS ARE NOT REQUIRED AND DO NOT FILE A FORM 990, SCHEDULE H.IN ADDITION TO THE AMOUNTS DISCLOSED ON THIS SCHEDULE H, ALLINA AND AFFILIATED ORGANIZATIONS INCURRED COSTS FOR PARTICIPATION IN GOVERNMENT MEDICAL CARE PROGRAMS IN EXCESS OF GOVERNMENT REIMBURSEMENTS IN THE AMOUNT OF $119,060,833.ALLINA PARTNERS WITH THE UNIVERSITY OF MINNESOTA MEDICAL SCHOOL TO PROVIDE PHYSICIAN RESIDENCY PROGRAMS FOR FAMILY PRACTICE AND INTERNAL MEDICINE RESIDENT PHYSICIANS.ALLINA CONTROLS AND OPERATES SEVEN (7) AFFILIATED FOUNDATIONS THAT PROVIDE PHILANTHROPIC FUNDING SUPPORT FOR ALLINA PROGRAMS AND NUMEROUS COMMUNITY PROGRAMS AND INITIATIVES INCLUDING A FEDERALLY QUALIFIED HEALTH CENTER. SEE SCHEDULE R AND SCHEDULE H, PART IV FOR A LIST OF RELATED ORGANIZATIONS AND JOINT VENTURES INCLUDING THE PRIMARY ACTIVITY OF THE AFFILIATED ORGANIZATION. ALLINA AND ITS AFFILIATES ALSO ROUTINELY COOPERATE AND INNOVATE WITH OTHER ORGANIZATIONS INCLUDING HEALTH CARE AND SOCIAL WELFARE ORGANIZATIONS, COMMUNITY GROUPS, GOVERNMENT AGENCIES AND HEALTH CARE PROVIDERS TO PREVENT ILLNESS, PROMOTE AND RESTORE HEALTH TO THE COMMUNITIES WE SERVE AND BEYOND. REPORTS FILED WITH STATES PART VI, LINE 7 MN,WI 1 MINNEAPOLIS HEART INSTITUTE FOUNDATION 920 EAST 28TH STREET SUITE 100 MINNEAPOLIS MN 55407 411426406 501C3 50000 "SPIRIT OF HEALTH GALA" SPONSORSHIP UNIVERSITY OF MINNESOTA FOUNDATION 420 DELAWARE ST SE MMC 505 MINNEAPOLIS MN 55455 416042488 501C3 15000 SPONSORSHIP OF DALAI LAMA EVENT AMERICAN HEART ASSOCIATION 4701 W 77TH STREET EDINA MN 55435 135613797 501C3 13800 SPONSORSHIP OF GO RED CAMPAIGN ACHIEVEMPLS 111 3RD AVE S STE 5 MINNEAPOLIS MN 55401 411425264 501C3 25000 2010 STEP-UP PROGRAM RANDY SHAVER GOLF CLASSIC 294 E GROVE LANE SUITE 200F WAYZATA MN 55391 270476510 501C3 5500 SPONSORSHIP FOR 2010 RANDY SHAVER GOLF CLASSIC PORTICO HEALTHNET 2610 UNIVERSITY AVENUE WEST SUITE 550 ST PAUL MN 55114 411814659 501C3 277194 GENERAL SUPPORT ASSOCIATED ANESTHESIOLOGISTS PA 8681 EAGLE POINT BLVD LAKE ELMO MN 55042 410995496 501C3 7500 GENERAL SUPPORT MINNEAPOLIS SCHOOL OF ANESTHESIA 333 NORTH SMITH AVENUE ST PAUL MN 55102 416059072 501C3 6057 GENERAL SUPPORT UNITED WAY OF STEELE COUNTY 144 W MAIN STREET BOX 32 OWATONNA MN 55060 237366680 501C3 15000 GENERAL SUPPORT AND FLOOD ASSISTANCE IN STEELE COUNTY PROJECT FOR PRIDE IN LIVING 1035 E FRANKLIN AVENUE MINNEAPOLIS MN 55404 237232208 501C3 51500 SUPPORT FOR PHILLIPS PARTNERSHIP PROGRAM STEELE COUNTY COMMUNITIES FOR A LIFETIME 1409 SOUTH CEDAR AVENUE OWATONNA MN 55060 270705237 501C3 16037 SUPPORT FOR CONSTRUCTION OF LONG TERM CARE FACILITY 11 0 OTHER INFORMATION: PART IV: ALLINA HEALTH SYSTEM STRICTLY MONITORS GRANT FUNDS TO ENSURE THAT SUCH GRANTS ARE USED FOR PROPER AND INTENDED PURPOSES AND ARE NOT OTHERWISE DIVERTED FROM THE INTENDED USE. THE ORGANIZATION HAS A PROCESS WHICH INCLUDES A WRITTEN APPLICATION WHICH REQUIRES SUPPORTING DOCUMENTATION AND SUBSTANTIATION PRIOR TO A GRANT BEING APPROVED AND DISBURSED. IN ADDITION AND DEPENDING ON THE FACTS AND CIRCUMSTANCE OF THE GRANT, THE ORGANIZATION EMPLOYS VARIOUS METHODS TO ENSURE PROPER AND INTENDED USE SUCH AS; PERIODIC REPORTING TO THE ORGANIZATION, FIELD INVESTIGATIONS, CONTRACTS WITH REPAYMENT CLAUSES, REQUIRING ADDITIONAL SUBSTANTIATION AND DOCUMENTATION NOT AVAILABLE AT THE TIME OF THE GRANT, PAYING THIRD PARTIES DIRECTLY ON BEHALF OF THE GRANTEE ORGANIZATION, AND OTHER METHODS AS APPROPRIATE AND WARRANTED. X X 1 1 X X X X X 1 1 0 0 0 1 1 0 1 1 KENNETH PAULUS 686549 0 590428 0 44137 0 517123 0 28269 0 1866506 0 336189 0 MARGARET BUTLER 268014 0 86545 0 45810 0 170784 0 27580 0 598733 0 6538 0 DUNCAN GALLAGHER 527748 0 57714 0 43704 0 153865 0 26028 0 809059 0 0 0 MARGARET HASBROUCK 199309 0 48664 0 31371 0 47276 0 23557 0 350177 0 19745 0 SUSAN HEICHERT 158132 0 103810 0 97252 0 35889 0 5574 0 400657 0 0 0 CHRISTOPHER HUGHES 153577 0 16696 0 1863 0 20900 0 15192 0 208228 0 0 0 LAURIE LAFONTAINE 305174 0 84290 0 39690 0 72611 0 27046 0 528811 0 34216 0 TOM O'CONNOR 358797 0 195728 0 54849 0 203236 0 27637 0 840247 0 142827 0 JEFFEREY PETERSON 492646 0 280532 0 77179 0 240136 0 36963 0 1127456 0 190817 0 RICKIE RESSLER 68160 0 198589 0 15915 0 32570 0 1548 0 316782 0 106156 0 TOMI RYBA 476380 0 168032 0 13062 0 171863 0 27063 0 856400 0 0 0 SHANE SEYMOUR 140432 0 28000 0 192816 0 2266 0 11269 0 374783 0 0 0 ELIZABETH TRUESDELL SMITH 290736 0 69543 0 26189 0 111235 0 22390 0 520093 0 1983 0 JOHN STOLTENBERG MD 410463 0 74210 0 10977 0 70879 0 15204 0 581733 0 0 0 PENNY WHEELER MD 427020 0 295638 0 19559 0 230828 0 19498 0 992543 0 179902 0 ROBERT WIELAND MD 395390 0 122410 0 27559 0 182286 0 14138 0 741783 0 0 0 JOANN YOHN 135480 0 57879 0 27457 0 26122 0 13572 0 260510 0 23224 0 SANDRA SCHMITT 286824 0 80713 0 180524 0 52181 0 26565 0 626807 0 62275 0 SURESHBABU AHANYA MD 972258 0 0 0 23269 0 60495 0 23800 0 1079822 0 0 0 DANIEL BUSS MD 1232665 0 12966 0 4711 0 77423 0 26617 0 1354382 0 0 0 MICHAEL FREEHILL MD 993546 0 11840 0 3234 0 59256 0 21504 0 1089380 0 0 0 EMANUEL GAZIANO MD 649062 0 0 0 367357 0 32431 0 26504 0 1075354 0 94963 0 WILLIAM WAGNER MD 916520 0 0 0 7354 0 66164 0 27550 0 1017588 0 0 0 ELAINE VOSS 0 0 0 0 35241 0 0 0 0 0 35241 0 0 0 MARY FOARDE 42467 0 0 0 140352 0 0 0 0 0 182819 0 0 0 RICHARD PETTINGILL 0 0 210344 0 0 0 0 0 0 0 210344 0 0 0 ANDREW PUGH 210426 0 52377 0 20330 0 42000 0 31217 0 356350 0 17678 0 GARY STRONG 13880 0 0 0 189846 0 0 0 597 0 204323 0 0 0 PART I, LINE 1A TAX INDEMNIFICIATION AND GROSS-UP PAYMENTS: ALLINA HEALTH SYSTEM PROVIDES THIS TYPE OF PAYMENT AS IT RELATES TO TAXABLE MOVING EXPENSE REIMBURSEMENTS ON CERTAIN EXECUTIVES. DUNCAN GALLAGHER, $34,427; TOMI RYBA, $7,856; SHANE SEYMOUR, $59,055. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: ALLINA HEALTH SYSTEM PROVIDES THIS TYPE OF PAYMENT AS IT RELATES TO TEMPORARY HOUSING FOR CERTAIN EXECUTIVES WHO ARE RELOCATING DUE TO EMPLOYMENT WITH ALLINA AND DO NOT INITIALLY HAVE A PERMANENT RESIDENCE. PART I, LINES 4A-B SHANE SEYMOUR, $103,853; MARY FOARDE, $122,558; GARY STRONG, $159,828 PART I, LINE 4B: MARGARET BUTLER, $33,585; MARGARET HASBROUCK, $27,253; SUSAN HEICHERT - $46,279; LAURIE LAFONTAINE, $24,853; TOM O'CONNOR, $40,450; JEFFREY PETERSON, $42,937; SANDRA SCHMITT, $149,619; SHANE SEYMOUR, $14,662; ELIZABETH T. SMITH; $20,318; ROBERT WIELAND, MD, $8,546; JOANN YOHN, $22,034; SURESHBABU N. AHANYA, MD, $19,204; EMANUEL P. GAZIANO, MD, $300,873; ANDREW PUGH, $17,555; MARY FOARDE, $17,794; GARY STRONG, $24,667; ELAINE V. VOSS, $35,241. PART I, LINE 6 DEFERRED COMPENSATION PLANS TERMS AND CONDITIONS: MANAGEMENT INCENTIVE PLAN (MIP) ALLINA PROVIDES AN ANNUAL INCENTIVE COMPENSATION OPPORTUNITY TO MOST MANAGERS, SOME HIGH-LEVEL INDIVIDUAL CONTRIBUTORS AND EXECUTIVES. UNDER THIS PLAN, THE TARGET AWARD IS EXPRESSED AS A FUNCTION OF THE PARTICIPANT'S SALARY PAID DURING THE CALENDAR YEAR AND REQUIRES AT LEAST FOUR MONTHS OF SERVICE IN AN ELIGIBLE POSITION DURING THE YEAR. ACTUAL AWARDS CAN RANGE FROM 0% TO 150% OF THE TARGET AWARD, BASED ON ALLINA'S PERFORMANCE OVER THE CALENDAR YEAR. PERFORMANCE MEASURES INCLUDE FINANCIAL PERFORMANCE, SERVICE QUALITY, PATIENT SATISFACTION, PATIENT SAFETY AND COMMUNITY SERVICE. NO AWARDS ARE PROVIDED UNLESS THRESHOLD FINANCIAL PERFORMANCE IS ACHIEVED. PARTICIPANTS WHO HAVE LEFT EMPLOYMENT PRIOR TO THE END OF THE YEAR AS THE RESULT OF VOLUNTARY TERMINATION OR TERMINATION FOR POOR PERFORMANCE ARE NOT ELIGIBLE FOR AN AWARD. LONG-TERM INCENTIVE PLAN (LTIP) ALLINA HAS A LONG-TERM INCENTIVE PLAN THAT PROVIDES A CASH AWARD OPPORTUNITY TO A SMALL NUMBER OF TOP EXECUTIVES APPROVED FOR PARTICIPATION BY THE COMPENSATION COMMITTEE OF THE BOARD. THE AWARD OPPORTUNITY IS BASED ON ALLINA PERFORMANCE DURING OVERLAPPING THREE-YEAR CYCLES. PERFORMANCE MEASURES AND TARGETS ARE DEFINED BY THE COMMITTEE FOR EACH THREE-YEAR PERIOD AND CAN VARY FROM ONE PERIOD TO ANOTHER DEPENDING ON THE COMMITTEE'S JUDGMENT OF THE MOST IMPORTANT MEASURES OF SUCCESS. AWARDS CAN RANGE FROM 0% TO 150% OF TARGET AWARDS. PART I, LINE 8 CERTAIN AMOUNTS REPORTED ON FORM 990, PART VII WERE PAID OR ACCRUED PURSUANT TO A CONTRACT THAT WAS SUBJECT TO THE INITIAL CONTRACT EXCEPTION DESCRIBED IN REGULATION SECTION 53.4958-4(A)(3). FROM TIME TO TIME, ALLINA HEALTH SYSTEM ENTERS INTO CONTRACTUAL ARRANGEMENTS THAT MAY QUALIFY FOR THE INITIAL CONTRACT EXCEPTION BASED ON THE TERMS AND UNDERSTANDINGS OF THE CONTRACTUAL AGREEMENTS. SUPPLEMENTAL INFORMATION PART III THE FOLLOWING INDIVIDUALS COMPENSATION REPRESENTS A PARTIAL YEAR OF EMPLOYMENT OR A SELECT PERIOD OF TIME IN THE POSITION FOR WHICH COMPENSATION DISCLOSURES ARE REQUIRED: SUSAN HEICHERT, CHRISTOPHER HUGHES, DEREK KANG, RICKIE RESSLER, SHANE SEYMOUR, JOHN STOLTENBERG, MD, JOANN YOHN. ADDITIONAL COMPENSATION DISCLOSURES: MARY FOARDE AND GARY STRONG OTHER REPORTABLE COMPENSATION INCLUDED PAYMENT OF SEVERANCE (IF APPLICABLE AND OTHER DEFERRED COMPENSATION FOLLOWING SEPARATION FROM EMPLOYMENT. DEFERRED COMPENSATION PLANS - TERMS AND CONDITIONS: ALLINA SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) THIS PLAN WAS AMENDED EFFECTIVE DECEMBER 31, 2008, SUCH THAT NO FUTURE BENEFITS ACCRUE FOR SERVICE AFTER THAT DATE. ELIGIBLE ALLINA EXECUTIVES PARTICIPATED IN A DEFINED CONTRIBUTION SERP. EMPLOYER CREDITS WERE MADE EACH YEAR TO THEIR SERP BALANCE ACCORDING TO THE FOLLOWING SCHEDULE: EXECUTIVE YEARS OF SERVICE CONTRIBUTION AS A % OF PENSIONABLE EARNINGS 0-5 2.75% 6-10 3.50% 11+ 4.75% EXECUTIVES WERE ALSO CREDITED AN AMOUNT EQUAL TO THE EXCESS AMOUNT THAT WOULD HAVE BEEN CREDITED TO THE PENSION ACCOUNT PLAN WERE IT NOT FOR THE QUALIFIED PLAN COMPENSATION LIMITS. DEPOSITS EARN THE INVESTMENT RATE OF RETURN EQUAL TO THE PENSION ACCOUNT PLAN CREDITING RATE AS DECLARED BY ALLINA. THE CURRENT RATE IS 4%. THE PARTICIPANT VESTS AFTER THREE YEARS OF EXECUTIVE SERVICE PROVIDED THAT IF THE PARTICIPANT TERMINATES EMPLOYMENT WITH ALLINA PRIOR TO AGE 65 FOR ANY REASON OTHER THAN ELIMINATION OF POSITION, THE PARTICIPANT MUST FULFILL THE TERMS OF A COVENANT NOT TO COMPETE BENEFITS ARE PAID AS A SINGLE LUMP-SUM AMOUNT UPON AGE 65 RETIREMENT OR JOB POSITION ELIMINATION. IN THE CASE OF OTHER VOLUNTARY TERMINATIONS, PAYMENT IS DELAYED UNTIL COMPLETION OF THE TWO-YEAR NON-COMPETE PERIOD. THE SERP IS PAYABLE FROM ALLINA'S GENERAL ASSETS. IF ALLINA BECOMES INSOLVENT, THE PARTICIPANT WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. ALLINA EXECUTIVE RETIREMENT BENEFIT RESTORATION PLAN ELIGIBLE ALLINA EXECUTIVES PARTICIPATE IN A DEFERRED COMPENSATION RETIREMENT PLAN. EXECUTIVES ARE CREDITED AN AMOUNT EQUAL TO THE EXCESS AMOUNT THAT WOULD HAVE BEEN CREDITED TO THE ALLINA RETIREMENT SAVINGS PLAN WERE IT NOT FOR THE QUALIFIED PLAN COMPENSATION LIMITS. EMPLOYER CREDITS ARE MADE EACH YEAR TO THEIR ACCOUNT BALANCE ACCORDING TO THE FOLLOWING SCHEDULE AS OF THE END OF THE PLAN YEAR: PARTICIPANT'S YEARS OF VESTING SERVICE APPLICABLE PERCENTAGE LESS THAN 1 0% 1-5 5.0% 6-10 5.5% 11-15 6.0% 16 OR MORE 6.5% DEPOSITS EARN THE INVESTMENT RATE OF RETURN EQUAL TO THE INVESTMENT OPTIONS SELECTED BY THE PARTICIPANT WHICH ARE THE SAME OPTIONS AVAILABLE UNDER THE QUALIFIED PLAN. A PARTICIPANT WHO HAS COMPLETED AT LEAST TWO YEARS OF SERVICE BECOMES VESTED IN THE PORTION OF HIS OR HER ACCOUNT ATTRIBUTABLE TO THE ANNUAL CREDIT FOR A PARTICULAR YEAR AS OF JANUARY 15 OF THE YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE ANNUAL CREDIT IS EARNED. IN THE EVENT OF TERMINATION (OTHER THAN BECAUSE OF DEATH) PRIOR TO AGE 67, THE DISTRIBUTION DATE SHALL BE AS SOON AS ADMINISTRATIVELY POSSIBLE AFTER TERMINATION IN THE FORM OF A LUMP SUM PAYMENT. THE PLAN IS PAYABLE FROM ALLINA'S GENERAL ASSETS. IF ALLINA BECOMES INSOLVENT, THE PARTICIPANT WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. THIS PLAN WAS EFFECTIVE JANUARY 1, 2009. ALLINA HOSPITALS AND CLINICS EXECUTIVE BENEFIT PLAN ALLINA HOSPITALS AND CLINICS PHYSICIAN BENEFIT PLAN MUTUAL FUND ACCOUNT THESE ACCOUNTS GIVE THE PARTICIPANT THE OPPORTUNITY FOR CAPITAL ACCUMULATION NOT FULLY AVAILABLE TO THEM THROUGH SOCIAL SECURITY OR THE GENERAL EMPLOYEE RETIREMENT PLANS BECAUSE OF MAXIMUMS PLACED ON COMPENSATION THAT CAN BE RECOGNIZED UNDER FEDERAL LAW FOR PURPOSES OF CONTRIBUTIONS. THEY ALSO SERVE AS AN IMPORTANT NON-COMPETE INCENTIVE TO PARTICIPANTS. PRIOR TO THE YEAR IN WHICH CONTRIBUTIONS ARE MADE, THE PARTICIPANT MUST DESIGNATE A VESTING/PAYOUT DATE CONSISTENT WITH THE CONSTRAINTS OF THE PLANS AND FEDERAL DEFERRED COMPENSATION REGULATIONS. AFTER THE CONTRIBUTIONS ARE MADE, THE PARTICIPANT HAS A ONE-TIME LIMITED OPPORTUNITY TO EXTEND THE ELECTED PAYMENT DATE FOR AT LEAST FIVE YEARS. ONCE THE VESTING/PAYOUT DATE HAS BEEN REACHED, ALLINA WILL WITHHOLD THE APPROPRIATE TAXES AND THE BALANCE WILL BE PAID TO THE PARTICIPANT ON THEIR PAYCHECK AS SOON AS ADMINISTRATIVELY FEASIBLE. IF THE PARTICIPANT TERMINATES EMPLOYMENT VOLUNTARILY BEFORE AN AMOUNT IS PAID, PAYMENT WILL BE SUBJECT TO THE PARTICIPANT'S COMPLIANCE WITH A NON-COMPETE AGREEMENT WITH ALLINA FOR TWO YEARS AFTER TERMINATION. THE PARTICIPANT MAY ELECT FROM AMONG INVESTMENT ALTERNATIVES THAT ARE SIMILAR TO THOSE AVAILABLE IN THE RETIREMENT SAVINGS PLAN. UNLIKE THE RETIREMENT SAVINGS PLAN, THE PARTICIPANT HAS THE STATUS AN UNSECURED CREDITOR OF ALLINA AND WILL NOT HAVE A PREFERRED CLAIM TO PAYMENT IN THE CASE OF THE COMPANY'S INABILITY TO PAY. HOWEVER, THE COMPANY DOES SET ASIDE ASSETS FOR ITS OBLIGATIONS BY ACTUALLY INVESTING THE PROMISED ASSETS CONSISTENT WITH PARTICIPANT ELECTIONS. EXECUTIVE SEVERANCE PLAN ALLINA PROVIDES SALARY CONTINUATION FOR EXECUTIVES WHOSE EMPLOYMENT HAS BEEN INVOLUNTARILY TERMINATED FOR REASONS OTHER THAN CAUSE OR POOR PERFORMANCE. THE LENGTH OF THE SEVERANCE PAY PERIOD IS DEFINED BY THE PLAN AND DEPENDS ON THE LEVEL OF THE EXECUTIVE POSITION. UNDER THE PLAN THE SEVERED EXECUTIVE ALSO COULD CONTINUE CERTAIN BENEFITS FOR A LIMITED PERIOD OF TIME. IN 2009 THE PLAN WAS AMENDED TO FURTHER RESTRICT SEVERANCE BENEFITS IN THE CASE THAT THE EXECUTIVE OBTAINS OTHER EMPLOYMENT DURING THE SEVERANCE PERIOD. CITY OF MINNEAPOLIS 416005375 792909BJ1 2009-11-10 348409221 REFUNDING OF 2007B & A PORTION OF 1998A;CONSTRUCTION;REMODELLING;RENOVATION 0 0 0 CITY OF MINNEAPOLIS 416005375 792909BH5 2007-10-17 482877203 REFUNDING OF 1993A AND ADVANCED REFUNDING OF 2002A BONDS;REMODELING&RENOVATE 0 0 0 1270000 348750261 3332390 27870509 295092023 22098576 2011 1 0 1 1 3925000 217520000 487127003 205279635 2717494 6787000 126922772 138047162 2010 1 1 1 1 0 1 1 0 1 0.00700 0.00000 0.00700 1 0 1 1 0 1 0.02300 0.00000 0.02300 1 0 1 1 JP MORGANWELLS FARGO 25.800000000000 1 0 0 0 0 0 1 1 UBS 24.800000000000 1 0 1 MBIA 0.800000000000 1 0 0 FORM 990, PART VI, SECTION A, LINE 2 RODNEY A YOUNG AND MARK SHEFFERT - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION B, LINE 11 THE ALLINA HEALTH SYSTEM FORM 990 WAS PREPARED BY THE TAX SERVICES FUNCTION OF ALLINA HEALTH SYSTEM. THE FORM 990 FILING WAS SUBJECTED TO A RIGOROUS REVIEW PROCESS BY ALLINA'S TAX MANAGER AND TAX DIRECTOR. ALLINA'S VICE PRESIDENT OF FINANCE & TREASURY ALSO PERFORMED AN EXECUTIVE REVIEW OF THE FORM 990. AFTER THE MANAGEMENT REVIEW PROCESS DESCRIBED ABOVE WAS COMPLETED, THE FINAL FORM 990, AS ULTIMATELY FILED WITH THE INTERNAL REVENUE SERVICE [IRS], WAS PROVIDED TO EACH VOTING MEMBER OF THE ALLINA HEALTH SYSTEM BOARD OF DIRECTORS. AN ALLINA HEALTH SYSTEM BOARD OF DIRECTORS MEETING WAS HELD ON NOVEMBER 1, 2011 TO REVIEW AND DISCUSS THE FORM 990 FILING. THE ALLINA HEALTH SYSTEM BOARD OF DIRECTORS VOTED ON AND APPROVED A RESOLUTION APPROVING THE FORM 990, THE MINNESOTA CHARITABLE ORGANIZATION ANNUAL REPORT TO BE FILED WITH THE MINNEOSOTA ATTORNY GENERAL AND THE WISCONSIN CHARITABLE ORGANIZATION ANNUAL REPORT TO BE FILED WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. THE BOARD OF DIRECTORS RESOLUTION ALSO DIRECTED OFFICERS TO FILE THE FORM 990 WITH THE IRS, THE CHARITABLE ANNUAL REPORT WITH THE CHARITIES DIVISION OF THE OFFICE OF THE MINNESOTA ATTORNEY GENERAL AND THE WISCONSIN CHARITABLE ORGANIZATION ANNUAL REPORT WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. THE ABOVE STATED REVIEW AND APPROVAL PROCESS OCCURRED PRIOR TO FILING THE ALLINA HEALTH SYSTEM FORM 990 WITH THE IRS, THE MINNESOTA CHARITABLE ORGANIZATION ANNUAL REPORT WITH THE MINNESOTA ATTORNEY GENERAL AND THE WISCONSIN CHARITABLE ANNUAL REPORT WITH THE WISCONSIN DEPARTMENT OF REGULATION AND LICENSING. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS SEVERAL METHODS OF MONITORING AND ENFORCING COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. FIRST, THE ORGANIZATION REGULARLY DISTRIBUTES CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRES TO ITS OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES. THESE INDIVIDUALS ARE REQUIRED TO DISCLOSE ANNUALLY ANY INTEREST THAT COULD GIVE RISE TO CONFLICTS, INCLUDING ANY FAMILY OR BUSINESS RELATIONSHIP. SECOND, THE GENERAL COUNSEL'S OFFICE ANNUALLY DELIVERS A REPORT TO ALLINA'S BOARD OF DIRECTORS WHICH INCLUDES, AMONG OTHER THINGS, THE RESULTS OF THE CONFLICT OF INTEREST QUESTIONNAIRE, AN ANALYSIS OF POTENTIAL CONFLICTS, AND GUIDANCE FOR SATISFACTORILY RESOLVING CONFLICTS. THIRD, THE ORGANIZATION UNDERTAKES MANDATORY COMPLIANCE TRAINING OF ALL ITS EMPLOYEES WHICH INCLUDES TRAINING ON CONFLICTS OF INTEREST. FOURTH, ALL EMPLOYEES RECEIVE, AND ARE EXPECTED TO CONDUCT THEMSELVES IN ACCORDANCE WITH ALLINA'S CODE OF CONDUCT. THE CODE OF CONDUCT CONTAINS EDUCATIONAL MATERIALS AND GUIDANCE TO RESOLVE POTENTIAL CONFLICTS OF INTEREST. FIFTH, ALLINA MAINTAINS A CORPORATE INTEGRITY HOTLINE, A CONFIDENTIAL 24 HOUR EXTERNAL RESOURCE TO HELP ANSWER QUESTIONS RELATED TO ETHICAL BUSINESS CONDUCT. ALL CALLS TO THE INTEGRITY LINE ARE KEPT CONFIDENTIAL. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE ALLINA HEALTH SYSTEM BOARD OF DIRECTORS IS RESPONSIBLE FOR ALL COMPENSATION AND BENEFITS PROGRAM ELEMENTS FOR NON-COLLECTIVELY BARGAINED ALLINA HEALTH SYSTEM EMPLOYEES. ALLINA HEALTH SYSTEM USES A PROCESS FOR DETERMINING COMPENSATION FOR THE CEO AND CERTAIN OTHER OFFICERS AND KEY EMPLOYEES THAT INCLUDED ALL OF THE FOLLOWING ELEMENTS: REVIEW AND APPROVAL BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS, THE MEMBERS OF WHICH ARE INDEPENDENT AND WITHOUT A CONFLICT OF INTEREST AS DEFINED IN REGULATION SECTION 53.4958-6(C)(1)(III). ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT SPECIALIZING IN EXECUTIVE COMPENSATION USE OF DATA AS TO COMPARABLE COMPENSATION FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS CONTEMPORANEOUS DOCUMENTATION, SUBSTANTIATION AND RECORDKEEPING WITH RESPECT TO DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENT THE ABOVE DESCRIBED PROCESS AND AN ASSESSMENT IS PERFORMED AT LEAST ANNUALLY FOR THE FOLLOWING POSITIONS: CHIEF EXECUTIVE OFFICER/PRESIDENT, CHIEF FINANCIAL OFFICER, CHIEF CLINICAL OFFICER, SENIOR VICE PRESIDENT - CHIEF COMPLIANCE OFFICER, PRESIDENT - CENTER FOR HEALTHCARE INNOVATION, PRESIDENT - ABBOTT NORTHWESTERN HOSPITAL, PRESIDENT - UNITED HOSPITAL, PRESIDENT - MERCY HOSPITAL, PRESIDENT - UNITY HOSPITAL, PRESIDENT - ALLINA MEDICAL CLINIC, SENIOR VICE PRESIDENT - GENERAL COUNSEL, EXECUTIVE VICE PRESIDENT PHILANTHROPY, EXECUTIVE VICE PRESIDENT - STRATEGY AND DEVELOPMENT, EXECUTIVE VICE PRESIDENT - AMBULATORY CARE. IN ADDITION, THE COMPENSATION COMMITTEE REVIEWS AND APPROVES ALL COMPENSATION CHANGES OF THE CHIEF EXECUTIVE OFFICER AND THE OTHER FORE MENTIONED POSITIONS LISTED IN ADVANCE OF THE CHANGE. FORM 990, PART VI, SECTION C, LINE 19 ALLINA HEALTH SYSTEM MAKES ITS FORM 990, FORM 1023, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. TO ARRANGE AN INSPECTION OR RECEIVE A COPY, PLEASE CONTACT THE FOLLOWING: ALLINA HEALTH SYSTEM TAX SERVICES MAIL ROUTE 10890 P.O. BOX 43 MINNEAPOLIS, MN 55407-0043 TELEPHONE: 612-262-0660 PHYSICAL ADDRESS: 2925 CHICAGO AVENUE MINNEAPOLIS, MN 55407-1321 THE FORM 990 AND FORM 1023 ARE ALSO AVAILABLE DIRECTLY FROM THE INTERNAL REVENUE SERVICE. THE FORM 990 AND FINANCIAL STATEMENTS ARE ALSO AVAILABLE FROM THE CHARITIES DIVISION OF THE OFFICE OF THE MINNESOTA ATTORNEY GENERAL. THE FINANCIAL STATEMENTS ARE ALSO AVAILABLE FROM DIGITAL ASSURANCE CERTIFICATION (DAC) AND ON THEIR WEBSITE AT DACBOND.COM DAC CLIENTS MEET THE IRS SECTION 6104(D) REQUIREMENTS ON ALLOWING "PUBLIC INSPECTION OF CERTAIN ANNUAL RETURNS, REPORTS, AND APPLICATIONS FOR EXEMPTION AND NOTICES OF STATUS" VIA THE DAC WEBSITE. DAC ENRURES THE RELIABILITY AND ACCURACY OF THE POSTED DOCUMENTS AND TAKES REASONABLE PRECAUTIONS TO PRECENT ALTERATION, DESTRUCTION OR ACCIDENTAL LOSS OF THE POSTED DOCUMENTS. WHERE REQUESTD, A USER MAY DOWNLOAD A DOCUMENT, PRINT A DOCUMENT, EMAIL A DOCUMENT OR, GIVEN REASONABLE WRITTEN NOTICE, DAC WILL MAIL A NOTIFICATION INDICATING WHERE SUCH DOCUMENTS ARE AVAILABLE WITHIN 7 DAYS OF THE WRITTEN REQUEST, PER IRS TREA. REG. SECTION 301.6104(D)-2(D). CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 40,784,582. PENSION LIABILITY ADJUSTMENTS -19,441,658. PLEDGED CONTRIBUTIONS WRITTEN OFF -65,128. CUR YR CONTRIB TO TAX EXEMPT SUB -4,479,527. TOTAL TO FORM 990, PART XI, LINE 5: 16,798,269. PART XII, LINE 2C THIS PROCESS REMAINS UNCHANGED FROM PRIOR YEAR. 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