2024-03-06T07:12:06-06:00 2023-09-30 390859910 Baker Tilly US LLP 101 Washington Street East Charleston WV 25301 990 2022-10-01 550404900 Herbert J Thomas Memorial Hospital Association HERB 3047663523 4605 MacCorkle Avenue SW South Charleston WV 25309 Jason Gizzi Interim CFO 3047663523 2024-03-04 1 Jason Gizzi XXX-XX-XXXX 0 Dolores Rose P01286262 3043460441 2024-03-04 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Thomas Memorial Hospital Greg Rosencrance 4605 MacCorkle Avenue SW South Charleston WV 25309 284290515 0 X thomashospitals.org X 1946 WV To provide health care services to residents of South Charleston, WV and surrounding communities. 4 4 0 31 207538 10963 3109560 439227 222868435 281909912 248049 245175 2828228 1696201 229054272 284290515 0 0 0 0 63940930 77855907 0 0 0 102030932 122783273 165971862 200639180 63082410 83651335 241119649 347432889 14776413 23269099 226343236 324163790 To provide health care services to residents of South Charleston, WV and surrounding communities. 0 0 136234000 282710361 Services provided by the hospital for the year ended September 30, 2023 included 40,449 inpatient days and 219,337 outpatient visits which includes 28,532 ER visits. The hospital provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than its established rates. Charges forgone for charity amounted to $646,124. The hospital provided community education activities and sponsors free health screening and wellness programs. 136234000 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 1 0 0 1 1 0 0 0 0 0 0 0 0 0 X 4 4 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Timothy Skeldon Sr Vice President CFO 3047663523 4605 MacCorkle Ave SW South Charleston WV 25309 Paul Breedlove Chairman 1.00 2.00 X X 0 0 0 Father Higgs Director 1.00 2.00 X 0 0 0 Robert Chrest DO Director 1.00 X 0 0 0 Andy Barker Director 1.00 1.00 X 0 0 0 Brian Ulery Former VP/COO Thomas Health 1.00 1.00 X 0 494046 14288 Dan Rogers MD Director 1.00 1.00 X 0 0 0 Albert Wright Jr President/CEO WVUHS 24.00 16.00 X 0 2323142 384491 Timothy K Skeldon Sr. VP Finance/CFO Thomas Health System 24.00 16.00 X 0 439547 39671 Greg Rosencrance MD President/CEO as of 3/1/2023 24.00 16.00 X 0 0 0 Connie Huston Pharmacist 40.00 X 150905 0 11038 William K Priddy 304B Pharmacy Manager 40.00 X 193196 0 11628 Teresa Simmons Director of Medical Imaging 40.00 X 158514 0 7761 Scott Brown Director of Thomas Family Pharmacy 40.00 X 149317 0 11311 Daniel J Lauffer Former Presidenet/CEO 0.00 X 0 644460 37928 651932 3901195 518116 4 1 1 0 0 165000 1500 272727 439227 Patient services 900099 256582186 256582186 Family Pharmacy 456110 14055428 13944305 111123 340B Program Revenue 900099 10257643 10257643 Laboratory-Other 621990 1014655 1014655 281909912 238347 238347 688214 0 688214 688214 688214 6828 0 6828 6828 6828 Cafeteria & vending 900099 831183 831183 S-Corp Home Health Svs 621610 96415 96415 80389 80389 1007987 284290515 282710361 207538 933389 X 77855907 52864161 24991746 21427928 14549562 6878366 994592 675328 319264 15581 10579 5002 4189601 2844739 1344862 19612 13316 6296 294902 200238 94664 7903739 5366639 2537100 Medical supplies 35911105 24383640 11527465 Pharmacy Supplies and D 30953963 21017741 9936222 Bad debts 9920352 6735919 3184433 Healthcare provider tax 7843400 5325669 2517731 3308498 2246469 1062029 200639180 136234000 64405180 0 768030 24593640 46033537 7043451 7162743 578840 1134417 116715433 5922046 92502770 110793387 207641 500140 115425277 181808665 241119649 347432889 7008638 8841662 7767775 14427437 14776413 23269099 X 226343236 324163790 226343236 324163790 241119649 347432889 X 83651335 292500 -124681 14001400 X 0 1 X 0 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2385816 2385816 90230953 347951 89883002 22467661 5554242 16913419 1631003 19853 1611150 110793387 Estimated third party settlements 4539289 Other receivables 1333494 Deposits 40931 Due from related parties 175894951 181808665 Capital lease obligations 4888515 Current portion of long-term debt 1868554 Due to Related Parties 7375629 Cash deficit 294739 14427437 X Part X, Line 2: As per Note 1 of the consolidated financial statements: Management has evaluated the tax positions and concluded that the organization has maintained its tax exempt status and has taken no uncertain tax positions that require recognition or disclosure in the financial statements. 1 1 X 1 X 1 X 320.000000000000 1 1 0 0 120954 120954 0.00060 11861496 2467657 9393839 0.04930 11982450 2467657 9514793 0.04990 49291 13184 36107 0.00020 49291 13184 36107 0.00020 12031741 2480841 9550900 0.05010 1 9920352 41720535 42098003 -377468 X 1 1 2 Stonerise Home Health LLC Home Health 0.30000 1 1 Thomas Memorial Hospital 4605 MacCorkle Avenue SW South Charleston WV 25309 X X X Psychiatric Herbert J Thomas Memorial Hospital 1 0 0 1 X X X X X X X X X 20 1 1 1 1 X https://wvumedicine.org/about/leadership-and-more/chna/ X 1 20 1 https://wvumedicine.org/about/leadership-and-more/chna/ 0 1 X 200.000000000000 320.000000000000 X X X X 1 1 X X X X 1 X https://wvumedicine.org/bill-pay/financial-assistance/ X https://wvumedicine.org/bill-pay/financial-assistance/ X https://wvumedicine.org/bill-pay/financial-assistance/ X X X X 1 X 0 X X X 1 X 0 0 Herbert J. Thomas Memorial Hospital Part V, Section B, Line 5: The Kanawha Coalition for Community Health Improvement (KCCHI) facilitated primary datacollection through community surveys, focus groups, telephone calls, and key informant interviews to identify key areas for health improvement/health need within the communities served. Individuals with the knowledge, information, and expertise relevant to the health needs of the community were consulted. These individuals included representatives from county public health departments as well as leaders, representatives, or members of medically underserved, low-income, and minority populations. Additionally, where applicable, other individuals with expertise of local health needs were consulted. Herbert J. Thomas Memorial Hospital Part V, Section B, Line 6a: Charleston Area Medical Center Herbert J. Thomas Memorial Hospital Part V, Section B, Line 6b: Kanawha Coalition for Community Health Improvement Herbert J. Thomas Memorial Hospital Part V, Section B, Line 11: By conducting a CHNA, Thomas Memorial Hospital identified areas with significant need which it would focus its health improvement activities toward: 1. Engaging in sustainable and equitable partnerships with community leaders to address the COVID19 pandemic, in terms of prevention and treatment; 2. Effectively distributing COVID-19 vaccines to targeted populations, and phasing such distribution to enable the general public to readily obtain COVID-19 vaccines; 3. Pandemic fallout: addressing overlay of mental health, drug abuse, and domestic violence; 4. Addressing a lack of access to health promotion and chronic disease prevention and education; and 5. Addressing social determinants of health to prevent unnecessary emergency room visits as well as hospital admission and readmissions. Part I, Line 7: The cost of charity care and unreimbursed Medicaid was estimated using a cost to charge ratio derived from Worksheet 2 of the Schedule H instructions. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 9,920,352. Part I, Line 3b The family income limit for eligibility for discounted care uses a range of 201%-320%. Part III, Line 2: Bad debt expense as reported on audited financial statements. Part III, Line 4: Bad debt expense is described in the consolidated financial statements as follows: "Patient accounts receivable are carried at net realizable value based on certain assumptions determined by each payor. In evaluating accounts receivable, the System analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the net realizable value. For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third party coverage exists for part of the bill), the System determines implicit price concessions based on its past historical collection experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. Management reviews troubled, aged accounts to determine collection potential. Accounts are written off when all reasonable internal and external collection efforts have been exhausted. Part III, Line 8: Medicare allowable reimbursements and cost were obtained from the hospital's Medicare cost report. Part III, Line 9b: Once Thomas Health System determines that a patient is eligible for Financial Assistance, that patient shall not receive any future bills based on undiscounted gross charges. The amount charged for emergency or other medically necessary care to a Financial Assistance eligible individual will not be more than the amounts generally billed to (received by either THS Physician Partners, Thomas Memorial or Saint Francis Hospital ) Medicare fee-for-service and commercially insured patients. The amounts generally billed are calculated using the "look-back" method based on actual past claims paid to THS Physician Partners, Thomas Memorial Hospital or Saint Francis Hospital, as applicable, in the prior fiscal year by Medicare fee-for-service together with all private health insurers. The amounts generally billed will be recalculated annually. If it is not known that a patient is eligible for Financial Assistance, usual charges will be billed and if it is later determined that the individual is eligible, any excess payments will be refunded. Part VI, Line 2: The hospital is a member of the Kanawha Coalition for Community Health Improvement. The Coalition conducts a survey every three years to assess health care needs of the community. Results of the survey are presented in a meeting of community leaders and other interested persons, and are conveyed to the general public by local media. Results of the most recent survey were released October 2022. Part VI, Line 3: The hospital informs and educates patients about their eligibility for assistance by: (1) providing a copy of the policy, or a summary thereof, and financial assistance contact information to patients as part of the intake process; (2) including the policy, or a summary thereof, along with financial assistance contact information, in patient bills; and (3) discussing with the patient the availability of various government benefits, such as Medicaid or state programs, and assisting the patient with qualification for such programs, where applicable. For those patients who come into our office after they receive a bill, we explain this same process to them. We also employ an outside agency, Advanced Patient Advocacy (APA), to speak with patients regarding Medicaid and other state and federal funding options. APA may speak with the patient during a stay or visit or after discharge. Hospital also has a DHHR employee on campus to help with getting the employees enrolled into Medicaid. Part VI, Line 4: The organization's geographic service area includes approximately 476,000 persons in a 12 county area of south-central West Virginia. Heart disease, cancer and pulmonary disease are the leading causes of death in the service area. Patients in the service area are typical of West Virginia as a whole. Except for the area within the Charleston, WV city limits, all of the counties in the organization's geographic service area are federally-designated Medically Underserved and Health Manpower Shortage Areas.Thomas Memorial Hospital is located within the city limits of South Charleston, West Virginia and is in Kanawha County. South Charleston is an urban area. Per the United States Census Bureau's 2019 census, the Population of Kanawha County is 178,124. The median household income is $60,408 and 16.3% are below poverty level. Kanawha Coalition for Community Health Improvement data report, 8.1% of Kanawha County adults under 65 are uninsured. There are 6 hospitals which serve the community. Part VI, Line 5: All members of the hospital's Board of Directors reside in the local community. The hospital extends medical staff privileges to all qualified physicians in the community who meet specific credentialing criteria. The hospital's 24 hour emergency room is available to all persons, regardless of ability to pay. The hospital prepares its budget to ensure adequate funding for capital improvements that are made on an on-going basis. Part VI, Line 6: As of January 1, 2023, Thomas Memorial Hospital and related organizations under Thomas Health System, became a member of the West Virginia United Health System (WVUHS). WVUHS is a not-for-profit corporation formed to serve as part of an integrated health science and healthcare delivery system. WVUHS serves as the parent corporation to an affiliated group of healthcare providing entities. The strategic plan of the System states intent to build a regional health care delivery system in its service areas, while offering a variety of options for providers who want to participate. The System maintains a demonstrated commitment to assist rural communities in preserving and improving the health care available to the patients it serves. 1 0 0 0 0 0 0 0 0 Albert Wright Jr President/CEO WVUHS 0 1480677 0 815255 0 27210 0 356068 0 28423 0 2707633 0 0 Daniel J Lauffer Former Presidenet/CEO 0 533123 0 111337 0 0 0 15250 0 22678 0 682388 0 0 Brian Ulery Former VP/COO Thomas Health 0 421440 0 72606 0 0 0 8218 0 6070 0 508334 0 0 Timothy K Skeldon Sr. VP Finance/CFO Thomas Health Sys 0 380562 0 58985 0 0 0 15250 0 24421 0 479218 0 0 William K Priddy 304B Pharmacy Manager 187688 0 5508 0 0 0 9534 0 2094 0 204824 0 0 0 Teresa Simmons Director of Medical Imaging 157957 0 557 0 0 0 6324 0 1437 0 166275 0 0 0 Connie Huston Pharmacist 142794 0 8111 0 0 0 7531 0 3507 0 161943 0 0 0 Scott Brown Director of Thomas Family Pharmacy 149024 0 293 0 0 0 7804 0 3507 0 160628 0 0 0 Part I, Line 3 The Executive Compensation Committee, comprised of members who are free of any conflicts of interest, adheres to a disciplined process for reviewing compensation for senior executives to ensure that the compensation is reasonable. The Committee has retained an independent consulting and advisory firm, PricewaterhouseCoopers (PwC), to provide appropriate market data as to comparability. The Committee reviews comparability data and other relevant evidence and approves the compensation of senior executives; provided, however, that in the case of the CEO, the Board, after review of the comparability data and other relevant evidence, including a recommendation from the Committee, has the final approval with regard to the CEO's compensation. Only those Board members who are free of conflicts of interest vote on the CEO's compensation. All compensation decisions, including the comparability data reviewed and any other relevant information considered, are contemporaneously documented in meeting minutes. Schedule J, Part I, Line 4a Daniel J Lauffer, Former CEO, received a severance payment in 2022 for $682,388 which included compensation and benefits. Form 990 Part V, Line 2a: Thomas Health System (The System) is the common paymaster for this related entity and therefore the W-2s are filed under The System. The System has approximately 2,066 employees. Form 990, Part VI, Section A, line 4 Effective January 1, 2023, West Virginia United Health System, Inc. became the sole member of Thomas Health System, Inc., the sole member of the filing Organization. Form 990, Part VI, Section A, line 6 Thomas Health System, Inc., a West Virginia nonprofit organization and an organization exempt from federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code, is the sole member of the organization. Form 990, Part VI, Section A, line 7a The organization's board of directors is elected by its sole member, Thomas Health System, Inc. Form 990, Part VI, Section A, line 7b The Organization's sole member, Thomas Health System, Inc., reserves all corporate powers of the Organization except for items specifically listed in the Organization's Articles of Incorporation. Form 990, Part VI, Section B, line 11b Thomas Health System, Inc. (the System) is the sole member of the organization. The System's finance committee is responsible for financial management of the organization. The 990 is reviewed by the organization's CFO as part of the finance committee. The 990 is then discussed with the System's finance committee and a copy is provided to all board members before it is filed with the IRS. Form 990, Part VI, Section B, line 12c The organization regularly and consistently monitors and enforces compliance with our written conflict of interest policy by asking annually that all Trustees, officers and employees (managers) who have decision making/purchasing authority disclose any potential conflicts of interest. Disclosure forms are signed annually then logged onto a spread sheet that identifies any potential conflicts. Form 990, Part VI, Section B, line 15 The Executive Compensation Committee, comprised of members who are free of any conflicts of interest, adheres to a disciplined process for reviewing compensation for senior executives to ensure that the compensation is reasonable. The Committee has retained an independent consulting and advisory firm, PricewaterhouseCoopers (PwC), to provide appropriate market data as to comparability. The Committee reviews comparability data and other relevant evidence and approves the compensation of senior executives; provided, however, that in the case of the CEO, the Board, after review of the comparability data and other relevant evidence, including a recommendation from the Committee, has the final approval with regard to the CEO's compensation. Only those Board members who are free of conflicts of interest vote on the CEO's compensation. All compensation decisions, including the comparability data reviewed and any other relevant information considered, are contemporaneously documented in meeting minutes. Form 990, Part VI, Section C, line 19 The Hospital makes its governing documents, conflict of interest policy and financial statements available to the public upon request. These documents are maintained in the administrative offices of the hospital and are provided via copy upon request. The documents also can be reviewed on site at the hospital upon advance notice. Form 990, Part IX, line 11g Hospitalist: Program service expenses 2,299,121. Management and general expenses 1,086,919. Fundraising expenses 0. Total expenses 3,386,040. Lab Services: Program service expenses 1,332,435. Management and general expenses 629,914. Fundraising expenses 0. Total expenses 1,962,349. Administrative Services: Program service expenses 4,772,735. Management and general expenses 2,256,330. Fundraising expenses 0. Total expenses 7,029,065. Medical Services: Program service expenses 4,371,141. Management and general expenses 2,066,475. Fundraising expenses 0. Total expenses 6,437,616. Maintenance Contracts: Program service expenses 1,774,130. Management and general expenses 838,728. Fundraising expenses 0. Total expenses 2,612,858. Form 990, Part XI, line 9: Equity transfer -365,363. Gain on revaluation of assets 14,366,763. Donnally Street Partners 331 Laidley Street Charleston WV 25301 270807676 Medical Office rental WV TMH Services Inc Thomas Health System Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 260440674 Corporate office WV 501(c)(3) Line 3 West Virginia United Health System Inc 0 St Francis Hospital 333 Laidley St Charleston WV 25301 611272692 Hospital WV 501(c)(3) Line 3 Thomas Health System Inc 0 THS Physician Partners Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 454395947 Medical services WV 501(c)(3) Line 3 Thomas Health System Inc 0 Grant Memorial Hospital Inc 117 Hospital Drive Petersburg WV 268479566 881740605 Hospital WV 501(c)(3) Line 3 West Virginia United Health System 0 Princeton Community Hospital Association Inc PO Box 1369 Princeton WV 25740 550483245 Hospital WV 501(c)(3) Line 3 West Virginia United Health System 0 Princeton Community Hospital Foundation Inc PO Box 1369 Princeton WV 24740 550694209 Hospital Support WV 501(c)(3) Line 12a, I Princeton Community Hospital Association Inc 0 West Virginia United Health System Inc PO Box 8034 Morgantown WV 26506 550754713 Healthcare Access WV 501(c)(3) Line 12a, I N/A 0 The Foundation for the Thomas Memorial and Saint Francis Hospitals Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 550694220 Supporting Organization WV 501(c)(3) Line 12c, III-FI N/A 0 TMH Services Inc 437 Division Street Ste 311 South Charleston WV 25309 550676607 Equipment sales, rental and related services, vending sales WV Herbert J Thomas Memorial Hospital Association Inc C 1335679 6764152 1.00000 1 0 0 1 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 TMH Services K 217967 Accounting Records