2026-05-15T15:51:15-05:00 2024-06-30 135565207 KPMG LLP 1735 MARKET STREET PHILADELPHIA PA 191032499 990 2023-07-01 251505478 JEFFCO HEALTH SERVICES INC JEFF 8148498026 417 ROUTE 28 BROOKVILLE PA 15825 DOUGLAS WINNER CFO 8148498026 2026-05-15 1 0 PHILLIP E GROFF P01247783 2672567000 2026-05-12 2023 2025-03-06 01:10:19Z PENN HIGHLANDS JEFFERSON MANOR GREGORY P BAUER 417 ROUTE 28 BROOKVILLE PA 15825 11044235 0 X WWW.JEFFERSONMANOR.NET X 1985 PA PH JEFFERSON MANOR OFFERS SKILLED NURSING, PERSONAL CARE, INDEPENDENT LIVING (SEE SCHEDULE O) AND THERAPY SERVICES TO HELP RESIDENTS MAINTAIN THEIR HIGHEST LEVEL OF INDEPENDENCE. 12 9 186 15 0 0 240608 0 8938603 10585788 -488530 151997 2603 0 8693284 10737785 0 0 0 0 5598389 7096119 0 0 0 5531616 5103097 11130005 12199216 -2436721 -1461431 11101732 23461415 3573283 8715825 7528449 14745590 PENN HIGHLANDS JEFFERSON MANOR IS COMMITTED TO BEING THE MOST CARING AND PROGRESSIVE PROVIDER OF EXTENDED CARE IN THE AREA BY PROMOTING THE HIGHEST STANDARD OF CARE AND QUALITY OF LIFE FOR OUR RESIDENTS. 0 0 9482613 9773793 PENN HIGHLANDS JEFFERSON MANOR IS AN INDEPENDENT NOT-FOR-PROFIT ONE HUNDRED SIXTY (160) BED SKILLED NURSING AND REHABILITATION FACILITY, OFFERING DEDICATED DEMENTIA AND REHABILITATION UNITS, RESPITE CARE, HOSPICE AND MOST FORMS OF LONG TERM CARE. AN IN-HOUSE REHABILITATION DEPARTMENT PROVIDES PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY SERVICES TO RESIDENTS AND COMMUNITY MEMBERS. IN FISCAL YEAR 2024, JEFFERSON MANOR STAFF PROVIDED 45,256 DAYS OF CARE. 1247712 769189 PENN HIGHLANDS JEFFERSON MANOR PERSONAL CARE IS A FORTY EIGHT (48) BED PERSONAL CARE FACILITY LOCATED ADJACENT TO THE SKILLED NURSING FACILITY, PROVIDING CARE TO THOSE WHO NEED SOME ASSISTANCE WITH DAILY LIVING. RESIDENTS ARE ENCOURAGED TO MAINTAIN INDEPENDENCE, BUT MEALS, LAUNDRY AND HOUSEKEEPING SERVICES ARE PROVIDED. ROOMS DESIGNED FOR THOSE WITH EARLY MEMORY LOSS ARE AVAILABLE IN A SECURE UNIT. 119346 42806 PENN HIGHLANDS JEFFERSON MANOR INDEPENDENT LIVING IS A FIVE (5) UNIT FACILITY, DESIGNED FOR INDEPENDENT INDIVIDUALS WHO NO LONGER WANT THE RESPONSIBILITY OF OWNING A HOME. HOUSEKEEPING AND MAINTENANCE SERVICES ARE PROVIDED. IT HAS A PRIVATE ENTRANCE AND PARKING AREA. INDIVIDUALS LIVING HERE ARE WELCOME TO PARTICIPATE IN ACTIVITIES AND OTHER EVENTS WITH THE SKILLED NURSING AND PERSONAL CARE RESIDENTS. COMBINED, WE PROVIDE A COMPLETE CONTINUUM OF CARE AND AS SUCH, WE ARE LICENSED TO BE A CONTINUING CARE RETIREMENT COMMUNITY (CCRC) EFFECTIVE FEBRUARY 2009. 10849671 1 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 9 0 1 186 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 1 0 PA X ROBERT SEKELSKY 8148498026 417 ROUTE 28 BROOKVILLE PA 15825 GREGORY P BAUER DIRECTOR & PHYSICIAN 1.00 40.00 X 0 347498 42708 DR H ED RICHARDS CHAIRMAN 1.00 8.00 X X 0 0 0 CYNTHIA TURNBULL VICE CHAIRMAN 1.00 8.00 X X 0 0 0 JOHN MESTER TREASURER 1.00 8.00 X X 0 0 0 JULIE PEER SECRETARY & PRES PH ELK 1.00 40.00 X X 0 248047 29126 SCOTT BURNS DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 JAY CHAMBERLIN DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 HEIDI DENNISON DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 JIM DIETRICH DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 MARK NORMAN DIRECTOR & COO PHH 1.00 40.00 X 0 611456 38112 MATTHEW OCHS DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 BRUCE PIERSON DIRECTOR (AS OF 7/1/23) 1.00 8.00 X 0 0 0 DANA HEITZENRATER END 9823 ADMINISTRATOR 40.00 0.00 X 0 87634 16726 JENNIFER SCHROEDER NURSE 40.00 0.00 X 109897 0 0 109897 1294635 126672 1 0 1 0 MORRISON HEALTHCARE 400 NORTHRIDGE ROAD SANDY SPRINGS PA 30350 NUTRITION SERVICES 185605 COMPASSIONATE CARE NURSING AGENCY 21 OLLIE LANE DUBOIS PA 15801 AGENCY STAFF 170937 CROTHALL HEALTHCARE INC 1500 LIBERTY RIDGE DRIVE WAYNE PA 19087 HOUSEKEEPING 157933 3 NET PATIENT REVENUE 623000 10518765 10518765 OTHER REVENUE 900099 67023 67023 10585788 38 38 458409 306450 151959 151959 151959 10737785 10585788 0 151997 6232268 5546719 685549 38745 34483 4262 397648 353907 43741 427458 380438 47020 2380 2380 6196 6196 896580 797957 98623 1163 1035 128 955951 850796 105155 460546 409886 50660 35258 31380 3878 635011 565160 69851 PENN HIGHLANDS ASSESSME 1378663 1227010 151653 MEDICAL SUPPLIES & DRUG 612823 545412 67411 REPAIR AND MAINTENANCE 95108 84646 10462 LICENSES, DUES, SUBSCRI 11923 10611 1312 11495 10231 1264 12199216 10849671 1349545 0 580300 222090 177653 245483 1092188 2591022 74713 74713 13092 5821 10264636 2848622 7860188 7416014 937157 9579206 366441 3327066 11101732 23461415 591376 782057 6825 0 2975082 7933768 3573283 8715825 X 7528449 14745590 7528449 14745590 11101732 23461415 X -1461431 -178389 8856961 X 0 1 X 1 0 X 292207 1069198 721750 240608 2323763 10283461 9201204 9274539 8938603 10585788 48283595 10575668 10270402 9996289 9179211 10585788 50607358 0 0 0 50607358 247677 424370 983914 34020 38 1690019 247677 424370 983914 34020 38 1690019 2203 2203 10823345 10694772 10980203 9215434 10585826 52299580 0.96760 0.96090 0.03230 0.03910 X 0 1 170000 170000 8833766 2317645 6516121 1022384 443952 578432 238486 87025 151461 7416014 DUE FROM AFFILIATES 3313399 EMPLOYEE ADVANCES 12692 TENANT SECURITY DEPOSITS 975 3327066 INTERCOMPANY PAYABLES 7933768 7933768 X PART X, LINE 2: UNCERTAIN TAX POSITIONS: JEFFCO HEALTH SERVICES, INC. IS INCLUDED IN PENN HIGHLANDS HEALTHCARE'S CONSOLIDATED AUDITED FINANCIAL STATEMENTS. THE FOLLOWING NARRATIVE IS THE FOOTNOTE FROM THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS: THE SYSTEM AND ITS SUBSIDIARIES HAVE GENERALLY BEEN RECOGNIZED AS EXEMPT FROM INCOME TAXES UNDER SECTION 501 OF THE INTERNAL REVENUE CODE AND A SIMILAR PROVISION OF STATE LAW. HOWEVER, THESE ENTITIES ARE SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. THE SYSTEM CONSOLIDATES CERTAIN ENTITIES, WHICH ARE ORGANIZED AS CORPORATIONS AND SUBJECT TO FEDERAL AND STATE INCOME TAXES ON RELATED INCOME. OTHER CONSOLIDATED AFFILIATES HAVE ELECTED TO BE TAXED AS A PARTNERSHIP UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND A SIMILAR SECTION OF THE STATE INCOME TAX LAW. THEREFORE, TAXABLE INCOME OR LOSS IS REPORTED TO THE INDIVIDUAL MEMBERS FOR INCLUSION IN THEIR RESPECTIVE TAX RETURNS. TO THE EXTENT THAT THE OPERATIONS OF THE PARTNERSHIP ENTITIES ARE RELATED TO THE SYSTEM'S TAX-EXEMPT PURPOSE, ITS INCOME WILL BE EXEMPT FROM INCOME TAXES. THE SYSTEM AND ITS SUBSIDIARIES ACCOUNT FOR UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN, OR EXPECTED TO BE TAKEN, IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN, AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. THE SYSTEM'S FOR-PROFIT CORPORATIONS RECOGNIZE DEFERRED TAX ASSETS AND LIABILITIES FOR THE FUTURE TAX IMPACT OF TEMPORARY DIFFERENCES BETWEEN AMOUNTS RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND THEIR RESPECTIVE TAX BASES, AND THE FUTURE BENEFIT OF UTILIZING AVAILABLE NET OPERATING LOSSES. DEFERRED TAX ASSETS AND LIABILITIES ARE MEASURED USING ENACTED TAX RATES EXPECTED TO APPLY TO TAXABLE INCOME IN THE YEARS IN WHICH THOSE TEMPORARY DIFFERENCES ARE EXPECTED TO BE RECOVERED OR SETTLED. INCOME TAXES OF THE SYSTEM'S TAX-EXEMPT, FOR-PROFIT AND PARTNERSHIP ENTITIES ARE RECORDED IN ACCRUED EXPENSES ON THE CONSOLIDATED BALANCE SHEET. 0 1 0 0 0 0 0 0 0 MARK NORMAN DIRECTOR & COO PHH 0 506051 0 46252 0 59153 0 13200 0 24912 0 649568 0 0 GREGORY P BAUER DIRECTOR & PHYSICIAN 0 272569 0 28365 0 46564 0 11580 0 31128 0 390206 0 0 JULIE PEER SECRETARY & PRES PH ELK 0 213682 0 11030 0 23335 0 8745 0 20381 0 277173 0 0 SCHEDULE J, PART I, LINE 3 CEO COMPENSATION: PENN HIGHLANDS HEALTHCARE, INC. (PHH), A RELATED ORGANIZATION, DETERMINES THE COMPENSATION OF THE CEO. PHH USES THE FOLLOWING METHODS TO DETERMINE THE COMPENSATION: INDEPENDENT COMPENSATION CONSULTANT, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B: MARK NORMAN PARTICIPATES IN A 457(F) PLAN CONTAINING EXCESS EMPLOYER CONTRIBUTIONS OVER THE 457(F) LIMIT. DURING CALENDAR YEAR 2023, THERE WERE NO INDIVIDUAL CONTRIBUTIONS TO THE PLAN AND NO DISTRIBUTIONS FROM THE PLAN. EMPLOYER CONTRIBUTIONS INTO THE PLAN AMOUNT TO $27,122. FORM 990, PART I, LINE 1 ORGANIZATION MISSION: PENN HIGHLANDS JEFFERSON MANOR IS COMMITTED TO BEING THE MOST CARING AND PROGRESSIVE PROVIDER OF EXTENDED CARE IN THE AREA. VISION: PENN HIGHLANDS JEFFERSON MANOR WILL PROVIDE STATE OF THE ART ACCOMMODATIONS FOR ITS CUSTOMERS. THROUGH OUR CONTINUOUS INNOVATIVE, COLLABORATIVE EFFORTS, WITH PRIMARY FOCUS UPON RESIDENT CARE AND EDUCATION OF OUR STAKEHOLDERS, WE WILL BECOME THE RECOGNIZED LEADER IN LONG TERM CARE. THE ORGANIZATION IS DEDICATED TO PROVIDING OUR RESIDENTS WITH PROGRESSIVE QUALITY HEALTH CARE SERVICES. THE ORGANIZATION IS COMMITTED TO THE MEDICAL, PHYSICAL, SPIRITUAL, PSYCHOLOGICAL AND EMOTIONAL WELL BEING OF EVERY RESIDENT, AND IT IS A GOAL TO CREATE AND MAINTAIN A SAFE, HOMELIKE ENVIRONMENT WHERE EACH RESIDENT IS TREATED WITH DIGNITY AND RESPECT. HIGHLY TRAINED PROFESSIONAL STAFF WORKS TOGETHER WITH THE RESIDENT AND FAMILY TO ASSIST THE RESIDENT TO ATTAIN OR MAINTAIN THEIR HIGHEST LEVEL OF INDEPENDENCE. FORM 990, PART I, LINE 6 VOLUNTEERS: THE ORGANIZATION HAS 15 TOTAL VOLUNTEERS - 9 NON-COMPENSATED MEMBERS OF THE BOARD OF DIRECTORS SERVED THROUGHOUT THE YEAR AND 6 VOLUNTEERS WHO HELP OUT THE VARIOUS ACTIVITIES. FORM 990, PART VI, SECTION A, LINE 1A PENN HIGHLANDS JEFFERSON MANOR'S GOVERNING BODY DELEGATED BROAD AUTHORITY TO AN EXECUTIVE COMMITTEE. THE PURPOSE OF THE EXECUTIVE COMMITTEE SHALL BE TO ACT FOR THE BOARD IN ALL MATTERS REQUIRING DECISION IN THE PERIOD BETWEEN MEETINGS OF THE BOARD. THE FUNCTIONS DISCHARGED BY THE EXECUTIVE COMMITTEE SHALL INCLUDE: (I) ACTING ON MATTERS REQUIRING IMMEDIATE DECISION WHEN THE BOARD IS NOT IN SESSION; (II) EVALUATING, REVIEWING, AND ESTABLISHING THE COMPENSATION, BENEFIT AND BONUS PACKAGE FOR THE MANAGEMENT TEAM OF THE CORPORATION; AND (III) PERFORMING SUCH OTHER FUNCTIONS DESIGNATED BY THE BOARD NOT INCONSISTENT WITH THESE BYLAWS. FORM 990, PART VI, SECTION A, LINE 6 THE CORPORATION SHALL HAVE A SOLE MEMBER ('SOLE MEMBER'), WHOSE RIGHTS, POWERS, AND OBLIGATIONS ARE DEFINED IN THE CORPORATION'S BYLAWS, AS AMENDED FROM TIME TO TIME. THE SOLE MEMBER OF THE CORPORATION IS BROOKVILLE HOSPITAL, A PENNSYLVANIA NONSTOCK, NONPROFIT CORPORATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. FORM 990, PART VI, SECTION A, LINE 7A PENN HIGHLANDS HEALTHCARE (PHH), A PENNSYLVANIA NONPROFIT CORPORATION, SHALL HAVE THE SOLE POWER TO ELECT AND REMOVE DIRECTORS AND OFFICERS OF PENN HIGHLANDS JEFFERSON MANOR, AND MAY SEEK INPUT AND RECOMMENDATIONS FROM DUBOIS REGIONAL MEDICAL CENTER D/B/A PENN HIGHLANDS DUBOIS (PH-DUBOIS), BROOKVILLE HOSPITAL D/B/A PENN HIGHLANDS BROOKVILLE (PH-BROOKVILLE), AND PENN HIGHLANDS JEFFERSON MANOR. FORM 990, PART VI, SECTION A, LINE 7B PHH SHALL HAVE THE SOLE POWER TO MAKE GOVERNANCE DECISIONS, INCLUDING AUTHORITY TO CONDUCT THE AUDIT AND COMPLIANCE FUNCTIONS, AMENDMENTS TO THE BYLAWS OR ARTICLES AND DISTRIBUTION OF ASSETS UPON DISSOLUTION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. THE DRAFT FORM 990 IS REVIEWED BY THE CFO AND THE SYSTEM CONTROLLER OF PENN HIGHLANDS HEALTHCARE SYSTEM. AFTER ALL SUGGESTED CHANGES FROM THE CFO AND SYSTEM CONTROLLER ARE MADE, THE UPDATED DRAFT FORM 990 IS PROVIDED FOR REVIEW TO THE FULL BOARD. ANY QUESTIONS OR COMMENTS FROM THE BOARD ARE ADDRESSED BEFORE FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C MONITORING COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY: PENN HIGHLANDS HEALTHCARE, INC. (PHH), MAINTAINS A CONFLICT OF INTEREST POLICY WHICH APPLIES TO ALL SUBSIDIARIES. THE CONFLICT OF INTEREST POLICY APPLIES TO BOARD MEMBERS, OFFICERS, EXECUTIVE EMPLOYEES, AND ANY OTHER MANAGER OR SUPERVISOR EXERCISING SUBSTANTIAL INFLUENCE OVER OPERATIONS. EACH COVERED PERSON WILL PROMPTLY AND FULLY DISCLOSE ALL MATERIAL FACTS OF EVERY ACTUAL OR POTENTIAL DUAL INTEREST EXISTING AT THE TIME WHEN HE/SHE BECOMES A COVERED PERSON, AND ANNUALLY THROUGH EACH PHH SYSTEM ENTITY'S DISCLOSURE STATEMENT, WHICH REQUESTS DISCLOSURE OF RELATIONSHIPS, INVESTMENTS, AND TRANSACTIONS THAT MAY LEAD TO AN ACTUAL CONFLICT OF INTEREST. ALL COMPLETED DISCLOSURE STATEMENTS WILL BE PROVIDED TO THE PHH GOVERNANCE/NOMINATING COMMITTEE. THIS COMMITTEE, IN CONSULTATION WITH THE CHAIRPERSON OR VICE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD, SHALL EVALUATE THE COMPLETED DISCLOSURE STATEMENTS AND DETERMINE IF THERE ARE ANY CONFLICTS THAT ARE SO PERVASIVE AS TO RENDER ANY COVERED PERSON INELIGIBLE FOR SERVICE. THE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD WILL DISCLOSE TO THE FULL BOARD OF SAID PHH SYSTEM ENTITY ALL DUAL INTERESTS REPORTED TO HIM OR HER UNDER THE POLICY AND WILL ALSO MAKE THE DISCLOSURE STATEMENTS OF ALL COVERED PERSONS AVAILABLE TO DIRECTORS AT ANY TIME DURING THE YEAR. IF A POTENTIAL DUAL INTEREST ARISES AS A RESULT OF A CONTEMPLATED PHH SYSTEM ENTITY BOARD (OR COMMITTEE) ACTION, THE CHAIRPERSON OF SAID PHH SYSTEM ENTITY'S BOARD OR THE INTERESTED PERSON SHALL, OR ANY OTHER DIRECTOR MAY, RAISE THE QUESTION OF THE INTERESTED PERSON'S DUAL INTEREST. THE DISINTERESTED MEMBERS OF THE PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION, ARRANGEMENT, OR POLICY GIVING RISE TO THE DUAL INTEREST TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION, ARRANGEMENT, OR POLICY. A COVERED PERSON WHO HAS A DUAL INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE A PRESENTATION TO SAID BOARD (OR COMMITTEE), TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. IF A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE DETERMINES THAT AN ACTUAL CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON SHALL BE SO ADVISED AND THE CHAIRPERSON OF A PHH SYSTEM ENTITY'S BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE OR DIRECT MANAGEMENT TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, IF THIS HAS NOT ALREADY BEEN DONE. ANY INTERESTED PERSON WHO HAS AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING ANY SUCH TRANSACTION OR ARRANGEMENT. IF AN INDIVIDUAL WHOSE COMPANY OR EMPLOYER HAS A BUSINESS RELATIONSHIP WITH A PHH SYSTEM ENTITY, BUT THE INDIVIDUAL DOES NOT HAVE AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THIS BUSINESS RELATIONSHIP, THE INDIVIDUAL MAY NONETHELESS VOLUNTARILY RECUSE HIM/HERSELF FROM VOTING ON ANY MATTERS RELATED TO THE RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 15B THE PENN HIGHLANDS HEALTHCARE (PHH) EXECUTIVE COMPENSATION COMMITTEE CONSULTS WITH THE HEALTHCARE CONSULTING FIRM, YAFEE & COMPANY TO OBTAIN COMPARABLE DATA TO MAKE RECOMMENDATIONS TO THE BOARD OF DIRECTORS REGARDING EXECUTIVE COMPENSATION. THE PENN HIGHLANDS HEALTHCARE BOARD OF DIRECTORS IS ACUTELY AWARE OF THE HEIGHTENED PUBLIC SCRUTINY OF EXECUTIVE COMPENSATION AND THE NEED TO CONSIDER REGULATORY COMPLIANCE WHEN SETTING EXECUTIVE PAY. COMPENSATION REVIEWS ARE DONE ON A CONTINUOUS BASIS. COMPENSATION DETERMINATIONS OF PHH EMPLOYED OFFICERS ARE MADE BY THE PHH COMPENSATION COMMITTEE. COMPENSATION DETERMINATIONS OF CERTAIN EMPLOYED OFFICERS ARE ALSO REVIEWED AND APPROVED BY THE PHH COMPENSATION COMMITTEE AND SHARED WITH THE COMPENSATION COMMITTEE OR BOARD. THE COMPENSATION COMMITTEE OF PHH STRIVE TO TAKE THE STEPS NECESSARY TO QUALIFY FOR THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" UNDER FEDERAL TAX LAW. THE PHH EXECUTIVE COMPENSATION COMMITTEES ARE RESPONSIBLE FOR (1) DETERMINING THE OVERALL TOTAL COMPENSATION STRATEGY FOR ALL THEIR RESPECTIVE CORPORATE OFFICERS, (2) APPROVING ALL COMPENSATION AND BENEFITS DECISIONS FOR CORPORATE OFFICERS, AND (3) REPORTING SUCH ACTIONS TO THE PHH BOARD ON A CONTINUOUS BASIS. IN ADDITION, THE EXECUTIVE COMPENSATION COMMITTEES, AS APPLICABLE, EXPRESSLY DETERMINE THE REASONABLENESS OF TOTAL COMPENSATION AND BENEFITS FOR ALL CORPORATE OFFICERS, AND ASSURES THAT ALL OFFICER COMPENSATION DECISIONS ARE MADE AFTER THOROUGH CONSIDERATION OF AND COMPARISON TO THE MARKET PRACTICES OF OTHER SIMILARLY SITUATED NOTFORPROFIT HEALTHCARE EXECUTIVES IN COMPARABLE ORGANIZATIONS. THE EXECUTIVE COMPENSATION COMMITTEES CONSIST OF BOARD MEMBERS WHO DO NOT HAVE MATERIAL FINANCIAL INTERESTS THAT COULD BE AFFECTED BY THE OFFICER COMPENSATION DECISIONS MADE BY THE COMMITTEES. THE COMPARABILITY DATA USED TO ASSIST THE EXECUTIVE COMPENSATION COMMITTEES IN THEIR COMPENSATION DELIBERATIONS ARE COMPILED BY AN INDEPENDENT, NATIONAL COMPENSATION CONSULTING FIRM THAT IS RETAINED BY AND REPORTS DIRECTLY TO THE EXECUTIVE COMPENSATION COMMITTEES. THE DATA COLLECTED BY THE CONSULTANT CONSISTS OF MARKET INFORMATION FOR EXECUTIVES IN FUNCTIONALLY SIMILAR POSITIONS IN SIMILARLY SITUATED NOT-FOR-PROFIT HEALTHCARE ORGANIZATIONS. THE DELIBERATIONS AND DECISIONS OF THE EXECUTIVE COMPENSATION COMMITTEES ARE CONTEMPORANEOUSLY DOCUMENTED, REVIEWED AND APPROVED BY THE EXECUTIVE COMPENSATION COMMITTEES, AND PROVIDED TO THE BOARD OF PHH, AS APPLICABLE. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENT AVAILABILITY: THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: TRANSFER OF SEI INVESTMENT FROM PENN HIGHLANDS HEALTHCARE INC 8,856,961. PENN HIGHLANDS HEALTHCARE PO BOX 447 DUBOIS PA 15801 320345810 MGMT SERVICES PA 501(C)(3) LINE 7 N/A 0 DUBOIS REGIONAL MEDICAL CENTER 100 HOSPITAL AVENUE DUBOIS PA 15801 251490707 HOSPITAL PA 501(C)(3) 3 PHH 0 ELCO HOUSING 759 JOHNSONBURG ROAD ST MARYS PA 15857 251639115 HOUSING PA 501(C)(3) 12 A I PHH 1 COMMUNITY NURSES HOME HEALTH & HOSPICE 761 JOHNSONBURG ROAD ST MARYS PA 15857 250996070 HEALTHCARE PA 501(C)(3) 10 CNI 1 COMMUNITY NURSES INC 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 251623598 HEALTHCARE PA 501(C)(3) LINE 10 PHH 1 COMMUNITY NURSES HOME SUPPORT SERVICES 757 JOHNSONBURG ROAD ST MARYS PA 15857 251623601 HEALTHCARE PA 501(C)(3) 10 CNI 1 DRMC EMPLOYEE BENEFITS PLAN TRUST 100 HOSPITAL AVENUE DUBOIS PA 15810 256332829 DRMC EMP BENE PA 501(C)(9) DRMC 1 JC BLAIR MEMORIAL HOSPITAL 1225 WARM SPRINGS AVENUE HUNTINGDON PA 16652 231352159 HOSPITAL PA 501(C)(3) 3 PHH 1 JC BLAIR MEMORIAL HOSPITAL FOUNDATION 935 14TH STREET HUNTINGDON PA 16652 251881377 SUPPORT HOSP PA 501(C)(3) 12 A I PHH 1 DRMC WORKERS COMPENSATION TRUST PO BOX 447 DUBOIS PA 15801 251741497 SUPPORT HOSP PA 501(C)(3) 12 B II DRMC 1 HELPMATES INC 757 JOHNSONBURG RD ST MARYS PA 15857 251555968 HEALTHCARE PA 501(C)(3) 10 CNI 1 PENN HIGHLANDS TYRONE 187 HOSPITAL DRIVE TYRONE PA 16686 231440116 HOSPITAL PA 501(C)(3) 3 PHH 1 TYRONE REGIONAL HEALTH NETWORK FOUNDATIO 187 HOSPITAL DRIVE TYRONE PA 16686 814504606 SUPPORT PA 501(C)(3) 12 A I PH TYRONE 1 HIGHLANDS HOSPITAL 401 EAST MURPHY AVENUE CONNELSVILLE PA 15425 251494705 HOSPITAL PA 501(C)(3) 3 PHH 1 HIGHLANDS HOSPITAL FOUNDATION 401 EAST MURPHY AVENUE CONNELSVILLE PA 15425 843713870 SUPPORT HOSP PA 501(C)(3) 12 A I PHH 1 WRC HEALTH CARE SUPPORT SERVICES 985 ROUTE 28 BROOKVILLE PA 15825 251601734 HEALTHCARE PA 501(C)(3) 10 WRC SR SRVCS 1 WRC SENIOR SERVICES 985 ROUTE 28 BROOKVILLE PA 15825 251552925 HEALTHCARE PA 501(C)(3) 10 DRMC 1 WRC NORTH FORK HEIGHTS 985 ROUTE 28 BROOKVILLE PA 15825 251684846 HEALTHCARE PA 501(C)(3) 10 WRC SR SRVCS 1 WRC PENNSYLVANIA MEMORIAL HOME 985 ROUTE 28 BROOKVILLE PA 15825 250718600 HEALTHCARE PA 501(C)(3) 10 WRC SR SRVCS 1 MONONGAHELA VALLEY HOSPITAL FOUNDATION 1163 COUNTRY CLUB ROAD MONONGAHELA PA 15063 825336533 FUNDRAISING PA 501(C)(3) 12 B II PHH 1 MONONGAHELA VALLEY HOSPITAL INC 1163 COUNTRY CLUB ROAD MONONGAHELA PA 15063 237218917 HOSPITAL PA 501(C)(3) 3 PHH 1 CLEARFIELD EMS 713 W FRONT ST CLEARFIELD PA 16830 251672659 EMS SERVICE PA 501(C)(3) 10 PHH 1 BROOKVILLE HOSPITAL 100 HOSPITAL RD BROOKVILLE PA 15825 250984595 HOSPITAL PA 501(C)(3) 3 DRMC 0 ELK REGIONAL HEALTH CENTER 763 JOHNSONBURG ROAD ST MARYS PA 15857 250585280 HEALTHCARE PA 501(C)(3) 3 PHH 1 ELK REGIONAL PROESSIONAL GROUP INC 763 JOHNSONBURG ROAD ST MARYS PA 15858 251875183 HEALTHCARE PA 501(C)(3) 3 PHH 1 BENNETTS VALLEY PHARMACY PO BOX 112 ST MARYS PA 15857 251601794 PHARMACY PA N/A S 1 E NICHOLSON PHARMACY 265 ALLEGHENY BLVD BROOKVILLE PA 15825 473117408 PHARMACY PA N/A S 0 JC BLAIR MEDICAL SERVICES INC 1225 WARM SPRINGS AVENUE HUNTINGDON PA 16652 251881378 HEALTH CARE PA N/A C 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0