2024-05-14T06:42:27-05:00 2023-06-30 390859910 BAKER TILLY US LLP 1570 FRUITVILLE PIKE SUITE 400 LANCASTER PA 17601 990 2022-07-01 233009874 THE ALLENTOWN SPECIALTY HOSPITAL INC ALLE 6107763160 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 MICHAEL SPIGEL PRESIDENT & CEO 6107763160 2024-05-07 1 MICHAEL SPIGEL 999009999 1 KERRI N BOGDA CPA P00760402 7177404863 2024-05-07 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN MICHAEL SPIGEL GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 11005011 0 X WWW.GOODSHEPHERDREHAB.ORG X 1999 PA TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING. 6 2 115 3 0 0 112406 0 15188281 10990586 649 14425 0 0 15301336 11005011 0 0 0 0 7434081 6859040 0 0 0 11217252 10851097 18651333 17710137 -3349997 -6705126 12845579 5744962 979567 584076 11866012 5160886 X MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE OFTEN COMPLEX PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE, AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE INNOVATIVE CARE AND COMPASSION. 0 0 14550065 10990586 THE ALLENTOWN SPECIALTY HOSPITAL, INC. DBA GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN ("GSSH") IS A 32-BED FACILITY PROVIDING ACUTE CARE FOR MEDICALLY STABLE BUT COMPLEX PATIENTS WHO REQUIRE LONG PERIODS OF HOSPITALIZATION. GSSH WAS THE FIRST LONG-TERM ACUTE CARE HOSPITAL IN THE LEHIGH VALLEY REGION AND WAS ONE OF THE FIRST IN THE COUNTRY TO OFFER PATIENT MONITORING BY TELE-INTENSIVISTS THROUGH STATE-OF-THE-ART TECHNOLOGY. GSSH'S PATIENTS REQUIRE EXTENSIVE NURSING CARE AND ARE OTHERWISE TOO ILL TO BE DISCHARGED TO HOME, A NURSING FACILITY, OR AN ACUTE REHABILITATION HOSPITAL. GSSH'S MAJOR PROGRAMS OF SERVICE ARE THE COMPLEX MEDICAL PROGRAM, TRANSITIONAL REHABILITATION PROGRAM AND THE PULMONARY VENTILATOR PROGRAM, WHICH TYPICALLY EXCEEDS NATIONAL VENT WEANING AVERAGES.IN FISCAL YEAR 2023, GSSH DISCHARGED A TOTAL OF 201 INPATIENTS AND HAD 5,617 TOTAL PATIENT DAYS. 14550065 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 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 0 0 0 1 X 0 0 115 1 0 0 0 0 0 0 0 0 0 0 0 0 X 6 2 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X MICHAEL SPIGEL PRESIDENT & CEO 6107763160 GOOD SHEPHERD PLAZA 850 S 5TH ST ALLENTOWN PA 18103 MICHAEL R SPIGEL PRESIDENT & CEO 6.50 43.50 X X 0 609700 36114 JAMES DALEY TRUSTEE 4.00 36.00 X 0 272351 5765 PETER ENDER TRUSTEE 1.00 0.00 X 0 0 0 ASTRID GONZALEZ-PARILLA SECRETARY/TREASURER 16.00 34.00 X X 0 302973 20063 MAHESH KRISHNAMURTHY TRUSTEE 1.00 X 0 0 0 JAMES WADDELL TRUSTEE/INTERIM ADMINISTRATOR 40.00 0.00 X 47589 0 21060 DAN JANICAK INTERIM CFO 5.00 45.00 X 0 381000 0 JEANNE DZURENKO CNO & SVP 5.00 45.00 X 0 252031 17092 TERENCE P O'NEIL CHIEF INFORMATION OFFICER 5.00 45.00 X 0 277077 28653 CHERYL A FISHER CHIEF HR OFFICER 5.00 45.00 X 0 270839 29714 SANDEEP SINGH CMO & SVP 5.00 45.00 X 0 584951 45838 THANDIZO KANKONDO RN SPECIALTY 40.00 0.00 X 119180 0 12681 CHARISSA D CALIOLIO RN SPECIALTY WEEKENDS 40.00 0.00 X 153187 0 7868 DAVID CRUZADO RN SPECIALTY 40.00 0.00 X 154075 0 1541 ZACHARY BRADSHAW RN SPECIALTY 40.00 0.00 X 125868 0 3247 HEIDIE L BUSS RN SUPERVISOR WEEKENDS 40.00 0.00 X 119375 0 21587 719274 2950922 251223 9 0 1 0 APOGEE MEDICAL MGMT 15059 N SCOTTSDALE ROAD STE 600 SCOTTSDALE AZ 85254 PHYSICIAN STAFFING 512738 CROTHALL HEALTHCARE INC 13028 COLLECTION CENTER DR CHICAGO IL 60693 HOUSEKEEPING SERVICES 244873 JD FOCUS LLC 10411 LOVING TRAIL RD FRISCO TX 75035 HOSPITAL ADMINISTRATOR STAFFING 108102 LEHIGH VALLEY HOSPITAL CEDAR CREST I-78 ALLENTOWN PA 18103 MEDICAL SERVICES 100833 4 NET PATIENT SVC REV 623000 10990586 10990586 10990586 14425 14425 11005011 10990586 0 14425 X 5568081 5100831 467250 303188 277746 25442 595413 545448 49965 392358 359439 32919 917 917 1899344 1833226 66118 42484 33787 8697 550947 550947 4275 4275 21723 21723 222982 222982 5781 5781 CORPORATE ALLOCATION 6940967 4997497 1943470 MEDICAL SUPPLIES 925465 925465 EQUIPMENT RENTAL 108984 108984 FOOD 94211 94007 204 33017 18874 14143 17710137 14550065 3160072 0 2275746 2693451 78401 25574 4599014 3649834 1115661 949180 9375771 2076757 12845579 5744962 304345 532007 675222 52069 979567 584076 X 11866012 5160886 11866012 5160886 12845579 5744962 -6705126 0 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 917 917 0 PART II-B, LINE 1: THE ALLENTOWN SPECIALTY HOSPITAL, INC. ("GSSH") PAID DUES TO THE HOSPITAL & HEALTHSYSTEM ASSOCIATION OF PA ("HAP") DURING THE YEAR ENDED JUNE 30, 2023. A PERCENTAGE OF THOSE DUES WERE USED FOR LOBBYING PURPOSES. THE AMOUNT ASSOCIATED WITH LOBBYING FOR THE YEAR WAS $917. 190276 188722 1554 4408738 3461112 947626 949180 AMOUNTS DUE FROM AFFILIATES 1985905 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 42393 OPERATING LEASE, RIGHT-OF-USE ASSETS 48459 2076757 OPERATING LEASE LIABILITIES 49096 DUE TO AFFILIATES 2973 52069 X 11005011 0 11005011 0 11005011 17710137 0 17710137 0 17710137 PART X, LINE 2: GOOD SHEPHERD PRESCRIBES A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY IN RECORDING TAX LIABILITIES IN THE CONSOLIDATED FINANCIAL STATEMENTS. MEASUREMENT AND RECOGNITION OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. 1 1 X 1 X 0 1 1 0 1 1 22419 22419 0.00130 22419 22419 0.00130 22419 22419 0.00130 1 575460 63531 6018557 7593523 -1574966 X 1 1 1 1 THE ALLENTOWN SPECIALTY HOSPITAL INC 850 SOUTH 5TH STREET ALLENTOWN PA 181033295 53020100 X LONG-TERM ACUTE CARE HOSPITAL THE ALLENTOWN SPECIALTY HOSPITAL INC 1 0 0 1 X X X X X X X X X 21 1 0 1 1 X WWW.GOODSHEPHERDREHAB.ORG/ABOUT-GOOD-SHEPHERD/CHNA/ X 1 22 1 WWW.GOODSHEPHERDREHAB.ORG/ABOUT-GOOD-SHEPHERD/CHNA/ 0 1 X 200.000000000000 X X X X X X 1 1 X X X 1 X HTTPS://WWW.GOODSHEPHERDREHAB.ORG/FOR-PATIENTS-AND-VISITORS/CHARITY-CARE/ X HTTPS://WWW.GOODSHEPHERDREHAB.ORG/FOR-PATIENTS-AND-VISITORS/CHARITY-CARE/ X X X X X X 1 X 0 X X X 0 X X 0 0 THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 5: THIS STUDY USED A MULTI-PRONGED RESEARCH METHOD TO IDENTIFY COMMUNITY HEALTH NEEDS AMONG PEOPLE WITH DISABILITIES.1. FIRST, THIS STUDY UPDATED AND EXTENDED INFORMATION DERIVED FROM KEY SECONDARY SOURCES OF DATA. 2. SECOND, THIS STUDY SUMMARIZED FINDINGS FROM A TELEPHONE-BASED SURVEY ADMINISTERED TO A RANDOMLY SELECTED SAMPLE OF 1,019 RESIDENTS IN LEHIGH, NORTHAMPTON, AND MONROE COUNTIES. 3. THIRD, THIS STUDY INCLUDED FINDINGS FROM TWO FORUMS OF KEY STAKEHOLDERS (E.G., PEOPLE WITH DISABILITIES, HEADS OF PUBLIC AND PRIVATE AGENCIES SERVING THE DISABILITY COMMUNITY, EDUCATORS, ELECTED REPRESENTATIVES, ETC.) WHERE PARTICIPANTS SHARED ADDITIONAL INSIGHT ABOUT DIVERSITY, EQUITY, AND INCLUSION CONCERNS FOR DISABLED PEOPLE AND VALIDATED THE SECONDARY AND SURVEY DATA. 4. LASTLY, THIS STUDY REFLECTED ON WHAT WAS LEARNED FROM THE PREVIOUS CHNA CONDUCTED IN 2018-2019.BOTH FEDERAL REGULATIONS AND BEST PRACTICES FOR CARRYING OUT CHNAS EMPHASIZE THE ROLE OF COMMUNITY INPUT. A CENTRAL GOAL OF THE CURRENT STUDY WAS TO ENGAGE DIVERSE STAKEHOLDERS AS PARTNERS IN RESEARCH FOR PEOPLE WITH DISABILITIES, RATHER THAN SIMPLY AS SUBJECTS OR OBJECTS OF THE RESEARCH. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 6B: GOOD SHEPHERD'S MOST RECENT CHNA WAS CONDUCTED IN PARTNERSHIP WITH THE MUHLENBERG COLLEGE INSTITUTE OF PUBLIC OPINION UNDER THE LEADERSHIP OF DR. LANETHEA MATHEWS-SCHULTZ, PROFESSOR AND CHAIR OF POLITICAL SCIENCE AT MUHLENBERG COLLEGE. THE MUHLENBERG COLLEGE INSTITUTE OF PUBLIC OPINION IS DIRECTED BY DR. CHRISTOPHER BORICK, PROFESSOR OF POLITICAL SCIENCE AT MUHLENBERG COLLEGE. IN ADDITION, GOOD SHEPHERD PARTNERED WITH THE DISABILITY FRIENDLY COMMUNITY OF THE LEHIGH VALLEY WHICH INCLUDES PEOPLE WITH DISABILITIES, REPRESENTATIVES OF NON-PROFITS AND FOR-PROFIT SERVICE ORGANIZATIONS, CAREGIVERS, FAMILY MEMBERS, GOVERNMENT AND COMMUNITY LEADERS AS WELL AS PEOPLE ADVOCATING FOR INCLUSION. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 11: ON JUNE 6, 2022, THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK PASSED A RESOLUTION ADOPTING THEIR FY '2023-'2025 CHNA IMPLEMENTATION PLAN. THE PLAN IDENTIFIES STRATEGIES AND ACTION STEPS DESIGNED TO IMPACT PRIORITY AREAS IDENTIFIED THROUGH THE 2022 CHNA PROCESS. THE IMPLEMENTATION PLAN IDENTIFIED THREE HEALTH PRIORITIES GOOD SHEPHERD COMMITTED TO WORKING ON OVER THE THREE-YEAR PERIOD. THE FIRST GOAL IS TO PRODUCE AND PROMOTE OPPORTUNITIES FOR EXTERNAL EDUCATION. THE SECOND GOAL IS TO PRODUCE AND FACILITATE OPPORTUNITIES FOR INTERNAL EDUCATION. THE THIRD GOAL IS TO FOSTER PARTNERSHIPS WITH COLLEGES, UNIVERSITIES, AND COMMUNITY ORGANIZATIONS FOR FURTHER EDUCATION AND RESEARCH. ACTIONS TAKEN FOR EACH GOAL/PRIORITY INCLUDE:A. THE FIRST ANNUAL NATIONAL SPEAKER EVENT WAS HELD TO PROMOTE DISABILITY AWARENESS AND RESILIENCY IN OVERCOMING OBSTACLES. THIS WAS ATTENDED BY MEMBERS OF THE COMMUNITY, COMMUNITY PARTNERS, ASSOCIATES, CURRENT AND FORMER PATIENTS AND LOCAL STUDENTS.THE FIRST ANNUAL INNOVATION SUMMIT WAS HELD FEATURING PROMINENT SPEAKERS IN THE HEALTHCARE AND TECHNOLOGY SECTORS TO DISCUSS INNOVATIVE TECHNIQUES USED IN HEALTHCARE. THIS EVENT OFFERED CONTINUING PROFESSIONAL EDUCATION CREDITS FOR CLINICAL PARTNERS INTERNALLY AND EXTERNALLY. GENERAL SESSIONS WERE AVAILABLE FOR ALL ATTENDEES. THROUGH A COLLABORATION WITH THE HEART ASSOCIATION, A STROKE SCREENING EVENT WAS HELD TO SCREEN AND EDUCATE THE COMMUNITY ABOUT THE RISK OF STROKE AND THE AFTERMATH OF SUCH A CATASTROPHIC EVENT. IN ADDITION, GOOD SHEPHERD EXPERTS PROVIDED MORE THAN 30 EDUCATION SESSIONS TO TARGETED COMMUNITY GROUPS, INCLUDING FAITH COMMUNITIES, CIVIC ORGANIZATIONS, SCHOOLS AND SENIOR CENTERS.B. PARTNERING WITH GOOD SHEPHERD LEARNS, EDUCATIONAL MODULES ARE BEING DEVELOPED AND DEPLOYED ACROSS ALL DEPARTMENTS OF GOOD SHEPHERD. THESE MODULES WILL BE OFFERED EXTERNALLY AS A COMMUNITY EDUCATION OUTREACH.GOOD SHEPHERD'S CHIEF MEDICAL OFFICER OFFERED EDUCATIONAL SESSIONS FOR STUDENTS IN MEDICAL SCHOOL RESIDENCY PROGRAMS.THE DEI COMMITTEE CONTINUED TO ACTIVELY ENGAGE OUR ASSOCIATES AND PATIENTS. SUBGROUPS FOCUSED ON DEI ISSUES THAT SOMETIMES IMPACT DISABILITY OUTCOMES.C. A CONTINUING AND ENHANCED COLLABORATION WITH LOCAL COLLEGES AND UNIVERSITIES RESULTED IN THE APPLICATION OF 3D PRINTING TECHNOLOGY TO DESIGN AND CREATE ADAPTIVE EQUIPMENT TO AID THOSE WITH DISABILITIES. THE ALLENTOWN SPECIALTY HOSPITAL, INC. PART V, SECTION B, LINE 13H: THE SPECIALTY HOSPITAL HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:- SOURCES OF INCOME- LIVING EXPENSES- OTHER PERSONAL ASSETS AND LIABILITIES- DEMOGRAPHIC INFORMATION- ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. PART I, LINE 3C: GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE "SPECIALTY HOSPITAL") HAS A WRITTEN CHARITY CARE POLICY. ALL PATIENTS ARE NOTIFIED OF GOOD SHEPHERD'S CHARITY CARE AVAILABILITY PRIOR TO THE START OF THEIR CARE. GENERALLY, PATIENTS AUTOMATICALLY QUALIFY UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY IF THEIR INCOME IS LESS THAN 200% OF THE CURRENT FEDERAL POVERTY GUIDELINES. HOWEVER, OTHER FACTORS ARE ALSO USED TO DETERMINE ELIGIBILITY INCLUDING:- SOURCES OF INCOME- LIVING EXPENSES- OTHER PERSONAL ASSETS AND LIABILITIES- DEMOGRAPHIC INFORMATION- ONGOING HEALTHCARE NEEDSQUALIFICATION UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY ENTITLES PATIENTS TO COMPLETELY FREE CARE. THE SPECIALTY HOSPITAL DOES NOT OFFER A PROGRAM OF DISCOUNTED CHARITY CARE. HOWEVER, PATIENTS THAT DO NOT QUALIFY FOR CHARITY CARE AND HAVE NO INSURANCE ARE OFFERED A DISCOUNTED PRIVATE PAY RATE FOR SERVICES, PAYABLE AT THE TIME OF SERVICE. THE DISCOUNTED PRIVATE PAY RATE IS DETERMINED CONSIDERING THE ESTIMATED COST OF SERVICES PROVIDED. THE SPECIALTY HOSPITAL'S POLICY ALSO PROVIDES FOR CHARITY CARE FOR CERTAIN PATIENTS UNDER UNIQUE CIRCUMSTANCES. THESE CIRCUMSTANCES INCLUDE PATIENTS WHO MAY EXPERIENCE SIGNIFICANT FINANCIAL HARDSHIP OR PERSONAL FINANCIAL LOSS REGARDLESS OF THEIR INCOME, INCLUDING PATIENTS WHO MAY BE CLASSIFIED AS "MEDICALLY INDIGENT." THESE UNIQUE CIRCUMSTANCES ARE REVIEWED BY ADMINISTRATION, PURSUANT TO POLICY. THE GOOD SHEPHERD AUDITED FINANCIAL STATEMENTS PROVIDE THE FOLLOWING DISCLOSURES WITH RESPECT TO CHARITY CARE:"GOOD SHEPHERD PROVIDES CHARITY CARE TO PATIENTS WHO MEET CERTAIN CRITERIA REGARDLESS OF THEIR ABILITY TO PAY. THE CRITERIA FOR CHARITY CONSIDERS FAMILY SIZE, SOURCES OF INCOME, LIVING EXPENSES, NET WORTH, ONGOING HEALTHCARE NEEDS, AS WELL AS OTHER PERTINENT INFORMATION. BECAUSE GOOD SHEPHERD DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUES. GOOD SHEPHERD MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE AMOUNT OF CHARITY CARE IT PROVIDES. THE COSTS ASSOCIATED WITH THE CHARITY CARE SERVICES PROVIDED ARE ESTIMATED BY APPLYING A COST-TO-CHARGE RATIO TO THE AMOUNT OF GROSS UNCOMPENSATED CHARGES FOR THE PATIENTS RECEIVING CHARITY CARE. THE LEVEL OF CHARITY CARE PROVIDED BY GOOD SHEPHERD AMOUNTED TO APPROXIMATELY $210,000 IN 2023 AND $250,000 IN 2022. GOOD SHEPHERD RECEIVED $2,550 AND $4,175 IN CONTRIBUTIONS RESTRICTED FOR CHARITY CARE DURING 2023 AND 2023, RESPECTIVELY." PART I, LINE 6A: THE SPECIALTY HOSPITAL'S COMMUNITY BENEFIT ACTIVITIES ARE PUBLISHED ON A CONSOLIDATED BASIS BY GOOD SHEPHERD REHABILITATION NETWORK (GSRN). THIS REPORT INCLUDES THE COMMUNITY BENEFIT ACTIVITIES PROVIDED BY GSRN, AS WELL AS BY ITS CONTROLLED ENTITIES (INCLUDING THE HOSPITAL). THIS REPORT IS DISTRIBUTED AND MADE AVAILABLE TO THE PUBLIC ON THE GSRN WEBSITE. A COMMUNITY BENEFIT REPORT IS NOT REQUIRED TO BE FILED WITH THE COMMONWEALTH OF PENNSYLVANIA AND, ACCORDINGLY, GSRN HAS NOT FILED ONE.IN ORDER TO BETTER UNDERSTAND THE ORGANIZATIONAL, FINANCIAL AND OPERATIONAL COMPLEXITIES OF THE ORGANIZATIONS CONTAINED WITHIN GSRN, THE FOLLOWING INFORMATION IS PROVIDED:THE HOSPITAL'S FINANCIAL RESULTS ARE REPORTED AS A COMPONENT OF THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD). SEPARATE AUDITED FINANCIAL STATEMENTS ARE NOT PREPARED FOR THE HOSPITAL. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF GOOD SHEPHERD INCLUDE THE FOLLOWING CORPORATIONS:-GOOD SHEPHERD REHABILITATION NETWORK (GSRN), THE CONTROLLING PARENT CORPORATION, FORMERLY GOOD SHEPHERD HOME-GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL)-GOOD SHEPHERD HOME LONG-TERM CARE FACILITY, INC. (LTC)-GOOD SHEPHERD LONG-TERM ACUTE SERVICES, INC., D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL (THE SPECIALTY HOSPITAL)-GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL)-GOOD SHEPHERD RECIPROCAL RISK RETENTION GROUP (THE RRG)-GOOD SHEPHERD GROUP, LLC (GS GROUP)-GOOD SHEPHERD DEVELOPMENT, LLC (GSD)GOOD SHEPHERD'S PRIMARY OPERATIONS ARE CONDUCTED WITHIN THE HOSPITAL, WHICH PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT REHABILITATION SERVICES AT NUMEROUS LOCATIONS. THE LTC OPERATES TWO SKILLED NURSING FACILITIES WHICH SERVICE THE NEEDS OF SEVERELY DISABLED ADULTS. THE LTACH PROVIDES SERVICES THAT REPRESENT THE FIRST STEP IN THE POST-ACUTE CARE PROCESS OF RECOVERY. SUPPIL PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THE RRG IS A SELF-INSURANCE COMPANY THATPROVIDES PRIMARY LIABILITY INSURANCE AND RISK MANAGEMENT SERVICES. GSD WAS ESTABLISHED TO DEVELOP, OWN AND MANAGE BUSINESSES RELATED TO GOOD SHEPHERD'S MISSION.IN ADDITION TO THE ORGANIZATIONS DESCRIBED ABOVE, IN JANUARY 2007, GSRN ENTERED INTO A JOINT VENTURE AGREEMENT WITH THE TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA (THE UNIVERSITY) TO CREATE PHILADELPHIA POST-ACUTE PARTNERS, LLC D/B/A GOOD SHEPHERD PENN PARTNERS (GSPP). GSPP WAS CREATED TO ESTABLISH AND OPERATE A NEW LONG-TERM ACUTE CARE HOSPITAL, TO ASSUME THE OWNERSHIP OF AND CONTINUE TO OPERATE ALL OF THE OUTPATIENT OPERATIONS OF THE UNIVERSITY, TO CARRY OUT THE DAY-TO-DAY OPERATIONS OF THE HOSPITAL OF THE UNIVERSITY OF PENNSYLVANIA'S (HUP'S) INPATIENT REHABILITATION UNIT, AND TO PROVIDE THE UNIVERSITY AND ITS AFFILIATES WITH CERTAIN CLINICAL AND/OR STAFFING SERVICES RELATING TO REHABILITATION. GSRN WAS A 51% OWNER OF GSPP IN FY23; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. PART I, LINE 7: THE SPECIALTY HOSPITAL USED A COST-TO-CHARGE RATIO IN DETERMINING THE FIGURES REPORTED IN THIS TABLE. THIS COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2 RATIO OF PATIENT CARE COST-TO CHARGES. PART I, LN 7 COL(F): THE AMOUNT OF BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $261,975. PART III, LINE 2: THE COSTING METHODOLOGY USED IN DETERMINING BAD DEBT EXPENSE AT COST IS BAD DEBT EXPENSE TIMES THE COST TO CHARGE RATIO. PART III, LINE 3: WE BELIEVE THAT A PORTION OF OUR BAD DEBTS RESULTS FROM SERVICES PROVIDED TO PATIENTS WHO MEET THE CHARITY CARE GUIDELINES BUT WERE UNABLE OR UNWILLING TO PROVIDE THE APPROPRIATE DOCUMENTATIONS TO ALLOW THAT CLASSIFICATION. THESE WOULD BE CLASSIFIED AS BAD DEBT EXPENSE AT COST TIMES THE AVERAGE ESTIMATED POVERTY PERCENTAGE WITHIN THE HOSPITAL'S 5 COUNTY PRIMARY SERVICE AREA. THE HOSPITAL PROVIDES CARE TO ALL PATIENTS WHO NEED IT, REGARDLESS OF THEIR ABILITY TO PAY. THIS IS PART OF THE HOSPITAL'S MISSION. PART III, LINE 4: REFER TO NOTE #3 PATIENT SERVICE REVENUES IN THE AUDITED FINANCIAL STATEMENTS FOR GOOD SHEPHERD REHABILITATION NETWORK. PART III, LINE 8: THE COSTING METHODOLOGY UTILIZED IN THE DETERMINATION OF THE MEDICARE ALLOWABLE COSTS REPORTED IN THE SPECIALTY HOSPITAL'S COST REPORT IS QUITE COMPREHENSIVE. DIRECTLY ALLOCATED COSTS ARE USED AS A STARTING POINT AND OTHER COSTS ARE STEPPED-DOWN TO THE SPECIALTY HOSPITAL BASED UPON INDUSTRY-ACCEPTABLE ALLOCATION METHODOLOGIES. THE SPECIALTY HOSPITAL HAS REPORTED A MEDICARE SHORTFALL OF $1,574,966 IN PART III, SECTION B (MEDICARE), LINE 7. THIS SHORTFALL SHOULD BE CONSIDERED AS A COMPONENT OF COMMUNITY BENEFIT BECAUSE THE SPECIALTY HOSPITAL TREATS ALL MEDICALLY NECESSARY PATIENTS, REGARDLESS OF THEIR ABILITY TO PAY AND REGARDLESS OF WHETHER THE EXPECTED REIMBURSEMENT IS ADEQUATE TO COVER ALL RELATED AND NECESSARY EXPENSES. PART III, LINE 9B: THE SPECIALTY HOSPITAL HAS A WRITTEN BILLING AND COLLECTION POLICY AND SUCH POLICY COVERS THE PROCEDURES NECESSARY TO BILL AND COLLECT FOR THE MEDICAL SERVICES PROVIDED TO PATIENTS. PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE SPECIALTY HOSPITAL'S CHARITY CARE POLICY (AS EVIDENCED BY A PROPERLY COMPLETED AND APPROVED CHARITY CARE APPLICATION) ARE NOT SUBJECT TO THE COLLECTION PROVISIONS OF THIS POLICY. RATHER, THEIR ACCOUNT BALANCES ARE WRITTEN-OFF FROM THE PATIENT ACCOUNTING RECORDS AS CHARITY CARE. IN INSTANCES WHERE THE HOSPITAL BELIEVES A PATIENT MAY QUALIFY FOR CHARITY CARE AND THE PATIENT DOES NOT OR CAN NOT COMPLETE THE REQUIRED CHARITY CARE APPLICATION, THE HOSPITAL MAKES REASONABLE EFFORTS TO INDEPENDENTLY SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE. IN INSTANCES WHERE REASONABLE EFFORTS ARE INSUFFICIENT OR INCONCLUSIVE TO SUPPORT THE APPROPRIATE WRITE-OFF OF THE PATIENT ACCOUNT BALANCES AS CHARITY CARE, THE PATIENT ACCOUNT BALANCES BECOME SUBJECT TO THE COLLECTION PROVISIONS OF THE HOSPITAL'S BILLING AND COLLECTION POLICY. PART VI, LINE 2: TO ASSESS THE HEALTH CARE NEEDS OF THE COMMUNITIES WE SERVE FOR OUR MOST RECENT CHNA, VIRTUAL COMMUNITY FORUM OF KEY STAKEHOLDERS (INCLUDING PEOPLE WITH DISABILITIES, HEADS OF PUBLIC AND PRIVATE AGENCIES SERVING THE DISABILITY COMMUNITY, EDUCATORS, ELECTED REPRESENTATIVES, COUNTY OFFICIALS, ADVOCACY ORGANIZATIONS, REPRESENTATIVES FROM THE ARTS, RELIGIOUS, AND COMMUNITY ORGANIZATIONS) WERE HELD. IN ADDITION, A PHONE SURVEY WAS CONDUCTED WITH PEOPLE WITH AND WITHOUT DISABILITIES AND THEIR FAMILIES TO SHARE INSIGHT ABOUT THEIR OWN CHALLENGES TO LIVING FULLY, INDEPENDENTLY, AND HEALTHFULLY. IN ADDITION TO THESE EFFORTS FOR OUR MOST RECENT CHNA, GOOD SHEPHERD REGULARLY ASSESSES MARKET POTENTIAL AND DEMAND FOR SERVICES THROUGHOUT VARIOUS REGIONS. ON AVERAGE, THESE ASSESSMENTS ARE PERFORMED ON AN ANNUAL BASIS AND DO NOT SPECIFICALLY TARGET NEEDS BUT RATHER OPPORTUNITIES TO EXPAND SERVICE TO OTHER AREAS IN NEED. PART VI, LINE 3: 1) GOOD SHEPHERD'S MISSION IS AS FOLLOWS:"MOTIVATED BY THE DIVINE GOOD SHEPHERD AND THE OFTEN COMPLEX PHYSICAL AND COGNITIVE REHABILITATION NEEDS OF OUR COMMUNITIES, OUR MISSION IS TO ENHANCE LIVES, MAXIMIZE FUNCTION, INSPIRE HOPE AND PROMOTE DIGNITY AND WELL-BEING WITH EXPERTISE, INNOVATIVE CARE AND COMPASSION."GOOD SHEPHERD VIGOROUSLY PURSUES THEIR MISSION REGARDLESS OF A PATIENT'S ABILITY TO PAY.2) IN EACH INPATIENT ROOM, GOOD SHEPHERD PROVIDES A REFERENCE BINDER OF IMPORTANT INFORMATION TO ALL INPATIENTS. THIS BINDER SUPPLEMENTS THE PATIENT'S ADMISSIONS PACKAGE AND INCLUDES A NOTICE OF FINANCIAL AID WHICH INCLUDES THE FOLLOWING WORDING:"IF YOU HAVE LITTLE OR NO HEALTH INSURANCE TO PAY FOR THE SERVICES YOU RECEIVE FROM GOOD SHEPHERD AND WORRY THAT YOU MAY NOT BE ABLE TO PAY FOR PART OR ALL OF YOUR CARE, WE MAY BE ABLE TO HELP. GOOD SHEPHERD PROVIDES CHARITY CARE TO PATIENTS BASED ON THEIR INCOME, ASSETS AND FINANCIAL NEEDS. IN ADDITION, IF YOU DO NOT MEET THE CRITERIA TO BE ELIGIBLE FOR CHARITY CARE, WE WILL HELP YOU ARRANGE FOR AN INTEREST-FREE PAYMENT PLAN TO RESOLVE ANY BALANCES YOU OWE."3) CHARITY CARE INFORMATION IS AVAILABLE ON THE GOOD SHEPHERD WEBSITE IN ENGLISH AND SPANISH. IN PARTICULAR, PATIENTS MAY ACCESS A COPY OF THE NOTICE OF FINANCIAL AID AND A CHARITY CARE APPLICATION.4) GOOD SHEPHERD PUBLISHES AND DISTRIBUTES A NOTICE OF PAYMENT RESPONSIBILITY TO ALL PATIENTS. THE FIRST PARAGRAPH OF THIS FORM STATES THE FOLLOWING:"GOOD SHEPHERD IS A NON-PROFIT CHARITABLE ORGANIZATION THAT PROVIDES HEALTHCARE SERVICES TO ALL MEDICALLY APPROPRIATE PATIENTS WHO SEEK CARE REGARDLESS OF THEIR FUNDS TO PAY FOR SERVICES. THIS INCLUDES THE UNINSURED AND THE UNDER INSURED."THE NOTICE GOES ON TO STATE:"IT HAS BEEN BROUGHT TO OUR ATTENTION THAT YOU POTENTIALLY LACK THE FINANCIAL RESOURCES TO PAY FOR YOUR MEDICAL CARE. YOUR ADMISSION TO GOOD SHEPHERD IS CONTINGENT UPON YOUR ASSISTANCE IN HELPING US SECURE PAYMENT OF YOUR MEDICAL BILL FOR THE CARE BEING PROVIDED TO YOU. TO ADDRESS THE PAYMENT OF YOUR BILL, WE ARE REQUESTING THAT YOU APPLY FOR MEDICAL ASSISTANCE BENEFITS THROUGH THE PENNSYLVANIA MEDICAID PROGRAM AND APPLY FOR GOOD SHEPHERD'S CHARITY CARE PROGRAM."5) EACH PATIENT BILL OR STATEMENT INCLUDES THE FOLLOWING STATEMENT:"THE GOOD SHEPHERD SPECIALTY HOSPITAL IS A NON-PROFIT ORGANIZATION AND OFFERS CHARITY CARE TO THOSE WHO QUALIFY. IF YOU DO NOT HAVE THE FUNDS TO PAY, PLEASE CONTACT US."6) TRANSLATION SERVICES ARE AVAILABLE TO ANY NON-ENGLISH-SPEAKING PATIENT. THESE SERVICES ALSO INCLUDE ASSISTANCE WITH CHARITY CARE ELIGIBILITY AND OTHER FINANCIAL MATTERS. 7) AS PART OF INTERNAL DEPARTMENTAL ORIENTATION AND TRAINING, ADMISSIONS, CARE MANAGEMENT AND PATIENT ACCOUNTING PERSONNEL ARE TRAINED IN GOOD SHEPHERD'S CHARITY CARE POLICIES AND PROCEDURES. PART VI, LINE 4: BASED UPON PA HEALTH CARE COST CONTAINMENT COUNCIL DATA FOR THE 2022 FISCAL YEAR, THE HOSPITAL'S PRIMARY SERVICE AREA IS COMPRISED OF THE FOLLOWING FIVE PENNSYLVANIA COUNTIES. IN ADDITION, THE HOSPITAL'S MARKET SHARE PERCENTAGE IS INDICATED FOR EACH COUNTY WITHIN ITS PRIMARY SERVICE AREA.LEHIGH 82.1%NORTHAMPTON 89.2%CARBON 78.6%MONROE 63.6%BERKS 32.7%LEHIGH, NORTHAMPTON AND BERKS COUNTIES ARE A MIX OF URBAN, SUBURBAN AND RURAL COMMUNITIES WHILE CARBON AND MONROE COUNTIES ARE PRIMARILY RURAL. THE FOLLOWING HOSPITALS ARE LOCATED WITHIN EACH OF THESE COUNTIES:CARBON COUNTYTWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALSLEHIGH COUNTYFIVE (5) NOT-FOR-PROFIT ACUTE CARE HOSPITALS TWO (2) NOT-FOR-PROFIT INPATIENT REHABILITATION HOSPITALS (THE HOSPITAL NOTE ONE LICENSE IN TWO LOCATIONS)ONE (1) NOT-FOR-PROFIT LONG-TERM ACUTE CARE HOSPITAL (THE SPECIALTY HOSPITAL)ONE (1) NOT-FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALNORTHAMPTON COUNTY THREE (3) NOT-FOR-PROFIT ACUTE CARE HOSPITALS ONE (1) NOT-FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALMONROE COUNTYTWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALSBERKS COUNTYTWO (2) NOT-FOR-PROFIT ACUTE CARE HOSPITALS ONE (1) FOR-PROFIT INPATIENT REHABILITATION HOSPITALONE (1) FOR-PROFIT SPECIALTY GENERAL ACUTE CARE HOSPITALTHESE COUNTIES HAVE THE FOLLOWING DEMOGRAPHICS AND CHARACTERISTICS:1. AVERAGE INCOME LEVEL AND POVERTY RATES (US CENSUS 2022 ESTIMATES MEDIAN HOUSEHOLD INCOME AND POPULATION PERCENTAGE BELOW THE POVERTY LEVEL)CARBON COUNTY $64,538 AND 10.2%LEHIGH COUNTY $74,973 AND 11.3% NORTHAMPTON COUNTY $82,201 AND 10.6%MONROE COUNTY $80,656 AND 12.3%BERKS COUNTY $74,617 AND 10.8%2. RATES OF UNINSURED OR UNDERINSURED PERSONS (US CENSUS 2022 ESTIMATES)CARBON COUNTY 4,061 INDIVIDUALS OR 6.2% OF THE COUNTY POPULATION UNDER 65 YEARS OLDLEHIGH COUNTY 30,854 INDIVIDUALS OR 8.2% OF COUNTY POPULATION UNDER 65 YEARS OLDNORTHAMPTON COUNTY 19,710 INDIVIDUALS OR 6.2% OF THE COUNTY POPULATION UNDER 65 YEARS OLDMONROE COUNTY 12,056 INDIVIDUALS OR 7.2% OF THE COUNTY POPULATION UNDER 65 YEARS OLDBERKS COUNTY 33,663 INDIVIDUALS OR 7.8% OF THE COUNTY POPULATION UNDER 65 YEARS OLD3. PERCENT OF FAMILIES WHO ARE ELIGIBLE FOR MEDICAL ASSISTANCE NOTE: FAMILY DATA NO LONGER AVAILABLECALCULATED PERCENTAGE PERSONS OF ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE USING PA DEPT OF HUMAN SERVICES DATA AND US CENSUS DATACARBON COUNTY 2022 PERCENTAGE PERSONS ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE 36.1%LEHIGH COUNTY 2022 PERCENTAGE PERSONS ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE 38.8%NORTHAMPTON COUNTY 2022 PERCENTAGE PERSONS ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE 28.2%MONROE COUNTY 2022 PERCENTAGE PERSONS ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE 36.4%BERKS COUNTY 2022 PERCENTAGE PERSONS ALL AGES ELIGIBLE FOR MEDICAL ASSISTANCE 35.8%4. POPULATION AGE BREAKDOWN (US CENSUS 2021 ESTIMATED); PENNSYLVANIA POPULATION > AGE 65 IS 19.6%)CARBON COUNTY POPULATION > AGE 65 22.5%LEHIGH COUNTY POPULATION > AGE 65 17.6%NORTHAMPTON COUNTY POPULATION > AGE 65 20.6%MONROE COUNTY POPULATION > AGE 65 19.6%BERKS COUNTY POPULATION > AGE 65 18.2%5. PERCENTAGES OF LIMITED ENGLISH-SPEAKING POPULATIONS: PERCENT SPEAK ENGLISH LESS THAN "VERY WELL" (SOURCE: US CENSUS AMERICAN COMMUNITY SURVEY 2015-19; SOURCE GEOGRAPHY TRACT; LATEST AVAILABLE DATA)CARBON COUNTY 1.5%LEHIGH COUNTY 10.5%NORTHAMPTON COUNTY 4.8%MONROE COUNTY 4.3%BERKS COUNTY 7.6%6. AREAS DESIGNATED AS FEDERALLY MEDICALLY UNDERSERVED AREAS OR POPULATIONS (LATEST AVAILABLE, DATES VARY)CARBON COUNTY COALDALE AND ASSOCIATED BOROUGHS/TOWNSHIPS - PRIMARY CARELEHIGH COUNTY ALLENTOWN SERVICE AREA - CT 0004.00 AND CT 0005.00 - PRIMARY CARENORTHAMPTON COUNTY EASTON SERVICE AREA - CT: 144.00 AND SOUTH BETHLEHEM SERVICE AREA -CT: 109-113 PRIMARY CAREMONROE COUNTY LOW INCOME AREA STROUDSBURG PRIMARY CARE BERKS COUNTY CITY OF READING SERVICE AREAS - CT: 1, 2, 10, 11, 13, 14, 17, 19, 21, 22, 23 AND 25 PRIMARY CARE7. SPECIAL POPULATIONS WITHIN THE AREA SERVED, INCLUDING ETHNIC AND CULTURAL GROUPS (US CENSUS 2022: 2018-2022)CARBON COUNTY HISPANIC OR LATINO POPULATION 6.9% VS. 8.6% IN PA LEHIGH COUNTY HISPANIC OR LATINO POPULATION 28.7% VS. 8.6% IN PA NORTHAMPTON COUNTY HISPANIC OR LATINO POPULATION 15.6% VS 8.6% IN PA MONROE COUNTY HISPANIC OR LATINO POPULATION 18.8% VS. 8.6% IN PABERKS COUNTY HISPANIC OR LATINO POPULATION 24.5% VS. 8.6% IN PASOURCE: MARKET SHAREPHC4 DATA FOR SOURCE: FACILITY CENSUS BY COUNTYAHD.COM SOURCES: #1, 2, 4, 5; & 7 US CENSUS STATE AND COUNTY QUICK FACTS#3 MA-FOOD-STAMPS-AND-CASH-STATS@LISTSERV.DPW.STATE.PA.US FROM PA DEPT OF HUMAN SERVICES AND UNDER 65 POP FROM US CENSUS#6 HTTPS://DATA.HRSA.GOV/TOOLS/SHORTAGE-AREA/MUA-FIND PART VI, LINE 5: WITH RESPECT TO HOW THE SPECIALTY HOSPITAL FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY, THE FOLLOWING INFORMATION IS PROVIDED:1) THE GSRN BOARD OF TRUSTEES GOVERNS ALL OF THE ENTITIES DESCRIBED IN PART I, LINE 6A (INCLUDING THE SPECIALTY HOSPITAL). THE GSRN BOARD OF TRUSTEE MEMBERS (BOARD MEMBERS) ALL LIVE IN THE SPECIALTY HOSPITAL'S PRIMARY SERVICE AREA AS DEFINED IN PART VI (SUPPLEMENTAL INFORMATION), LINE 4. THE VAST MAJORITY OF THE BOARD MEMBERS ARE NOT EMPLOYEES OR CONTRACTORS OF THE SPECIALTY HOSPITAL. NONE OF THE BOARD MEMBERS ARE FAMILY MEMBERS.2) THE SPECIALTY HOSPITAL ALSO MAINTAINS A SEPARATE BOARD OF TRUSTEES. ALL OF THE MEMBERS OF THIS SEPARATE BOARD LIVE IN THE SPECIALTY HOSPITAL'S PRIMARY SERVICE AND MOST ARE MANAGEMENT EMPLOYEES OF THE SPECIALTY HOSPITAL.3) THE SPECIALTY HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS PRIMARY SERVICE AREA. ALL APPLICANTS ARE APPROVED BY THE SPECIALTY HOSPITAL'S MEDICAL EXECUTIVE COMMITTEE. 4) THE SPECIALTY HOSPITAL PARTICIPATES IN THE MEDICARE, CHAMPUS, TRICARE AND OTHER GOVERNMENT SPONSORED HEALTHCARE PROGRAMS.5) THE COMMONWEALTH OF PENNSYLVANIA DOES NOT RECOGNIZE THE LONG-TERM ACUTE CARE HOSPITAL LEVEL OF SERVICE. ACCORDINGLY, THE SPECIALTY HOSPITAL DOES NOT PARTICIPATE IN THE PENNSYLVANIA MEDICAID PROGRAM. HOWEVER, PATIENTS THAT QUALIFY FOR THE PENNSYLVANIA MEDICAID PROGRAM WOULD ALSO MEET GOOD SHEPHERD'S CHARITY CARE CRITERIA. FINALLY, THE SPECIALTY HOSPITAL ACCEPTS MEDICAID PATIENTS FROM OTHER STATES.6) TO THE EXTENT THE SPECIALTY HOSPITAL GENERATES SURPLUS OPERATING MARGINS AND/OR FREE CASH FLOW, THE AMOUNTS ARE COMPLETELY REINVESTED WITHIN THE SPECIALTY HOSPITAL AND/OR THE OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN). SUCH REINVESTMENT CAN TAKE THE FORM OF INFRASTRUCTURE IMPROVEMENTS, INVESTMENTS IN MEDICAL EQUIPMENT AND TECHNOLOGY, OR OTHER INVESTMENTS INTENDED TO ENHANCE PATIENT SATISFACTION, IMPROVE THE QUALITY OF CARE, CONFORM WITH SAFETY CODES OR REGULATIONS, ETC.7) THE SPECIALTY HOSPITAL AND OTHER AFFILIATED CORPORATIONS UNDER THE CONTROL OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) ARE INVOLVED IN HEALTH PROFESSIONS EDUCATION, PARTICULARLY FOR NURSING AND THERAPY. PART VI, LINE 6: WITHIN THE GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), THE GOOD SHEPHERD REHABILITATION HOSPITAL (THE HOSPITAL), PROVIDES "CHARITY CARE AND CERTAIN OTHER COMMUNITY BENEFITS AT COST" AS REPORTED ON THEIR SCHEDULE H TO FORM 990. THESE AMOUNTS AGGREGATE $10,559,448 OR APPROXIMATELY 11.82% OF THE HOSPITAL'S EXPENSES. THROUGH ITS GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION (SUPPIL) SUBSIDIARY, GOOD SHEPHERD REHABILITATION NETWORK AND CONTROLLED ENTITIES (GOOD SHEPHERD), PROVIDES SUPPORTIVE INDEPENDENT HOUSING TO PERSONS WITH DISABILITIES UNDER SECTION 811 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. THESE SERVICES WERE OPERATED AT A LOSS, WHICH TOTALED $94,001 FOR THE FISCAL YEAR ENDED JUNE 30, 2023, AND WHICH WAS FUNDED BY GOOD SHEPHERD. THE LOSS WAS DETERMINED AFTER REDUCING SUPPIL RENTAL REVENUE AND OTHER INCOME BY THE DIRECTLY ASSIGNED EXPENSES INCURRED TO OPERATE THE PROGRAM.GSRN IS A 51% OWNER OF GSPP; HOWEVER, THE OPERATIONS OF GSPP ARE NOT CONSOLIDATED WITHIN THE CONSOLIDATED FINANCIAL STATEMENTS OF GOOD SHEPHERD AS GSRN IS NOT DEEMED TO HAVE CONTROL OVER GSPP. AS A RESULT, GSRN RECORDS THEIR INVESTMENT IN GSPP UNDER THE EQUITY METHOD OF ACCOUNTING WITHIN THE GSRN CONSOLIDATED FINANCIAL STATEMENTS. THROUGH ITS OWNERSHIP IN THE GSPP UNCONSOLIDATED AFFILIATE, GSRN PROVIDES THE FOLLOWING COMMUNITY BENEFITS, WHICH TOTAL TO $5,968,600:FINANCIAL ASSISTANCE AT COST $90,000UNREIMBURSED MEDICAID $3,205,200COMMUNITY HEALTH IMPROVEMENT SERVICES $69,000HEALTH PROFESSIONS EDUCATION $2,526,600RESEARCH $75,000COMMUNITY BUILDING ACTIVITIES $1,800FINANCIAL AND IN-KIND CONTRIBUTIONS TO OTHER COMMUNITY GROUPS $1,000SUBSIDIZED HEALTH SERVICES $0TOTAL $5,968,600THESE AMOUNTS ARE REPORTED ABOVE AT THEIR FULL COST ALTHOUGH GOOD SHEPHERD HAS A 51% OWNERSHIP INTEREST IN GSPP. PART VI, LINE 7: N/A 0 0 0 0 0 0 0 1 0 MICHAEL R SPIGEL PRESIDENT & CEO 0 609700 0 0 0 0 0 10250 0 25864 0 645814 0 0 SANDEEP SINGH CMO & SVP 0 352911 0 232040 0 0 0 10250 0 35588 0 630789 0 0 DAN JANICAK INTERIM CFO 0 381000 0 0 0 0 0 0 0 0 0 381000 0 0 ASTRID GONZALEZ-PARILLA SECRETARY/TREASURER 0 263223 0 39750 0 0 0 8002 0 12061 0 323036 0 0 TERENCE P O'NEIL CHIEF INFORMATION OFFICER 0 277077 0 0 0 0 0 7743 0 20910 0 305730 0 0 CHERYL A FISHER CHIEF HR OFFICER 0 270839 0 0 0 0 0 8229 0 21485 0 300553 0 0 JAMES DALEY TRUSTEE 0 209829 0 62522 0 0 0 4171 0 1594 0 278116 0 0 JEANNE DZURENKO CNO & SVP 0 252031 0 0 0 0 0 6201 0 10891 0 269123 0 0 CHARISSA D CALIOLIO RN SPECIALTY WEEKENDS 148187 0 5000 0 0 0 4677 0 3191 0 161055 0 0 0 DAVID CRUZADO RN SPECIALTY 154075 0 0 0 0 0 1541 0 0 0 155616 0 0 0 PART I, LINE 3 THE CEO IS COMPENSATED BY GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), AN AFFILIATED TAX-EXEMPT ORGANIZATION. THE HOSPITAL RELIED ON GSRN'S USE OF COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE TO ESTABLISH COMPENSATION. PART I, LINE 7 GSRN HAS A PERFORMANCE COMPENSATION PROGRAM IN PLACE WHICH IS APPROVED BY THE BOARD. CERTAIN MEMBERS OF MANAGEMENT CAN RECEIVE AN ANNUAL PERFORMANCE PAYMENT WHEN PRE-DEFINED AND PRE-APPROVED FINANCIAL AND NON-FINANCIAL GOALS ARE ACHIEVED. FORM 990, PART V, LINE 1: ACCOUNTS PAYABLE PAYMENTS ARE CONSOLIDATED UNDER A COMMON REPORTING SYSTEM. SINCE TOTALS FOR EACH VENDOR MAY CONTAIN TRANSACTIONS FROM MULTIPLE CORPORATIONS, THE NUMBER OF 1099'S FILED ON BEHALF OF THE ALLENTOWN SPECIALTY HOSPITAL, INC. BY THE COMMON REPORTING AGENT CANNOT BE SEPARATELY IDENTIFIED AND DETERMINED. FORM 990, PART V, LINE 2: THE SALARY AND BENEFIT EXPENSES REPORTED ON FORM 990, PART IX, AND THE EMPLOYEE INFORMATION REPORTED ON FORM 990, PART VII, ARE THE ALLENTOWN SPECIALTY HOSPITAL, INC. D/B/A GOOD SHEPHERD SPECIALTY HOSPITAL - ALLENTOWN'S ("GSSH") ALLOCATED PAYROLL COSTS BASED ON TIME SPENT. ALL INDIVIDUALS WORKING AT GSSH ARE EMPLOYEES OF THE GOOD SHEPHERD REHABILITATION HOSPITAL ("GSRH") AND ARE REPORTED ON ITS FORM W-3 UNDER EIN: 23-1371947. GSRH IS AN AFFILIATED TAX-EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRS OF ALL THE BOARD COMMITTEES AS WELL AS THE CHAIR AND VICE CHAIR OF THE BOARD. ALL EXECUTIVE COMMITTEE MEMBERS ARE MEMBERS OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE CAN ACT ON BEHALF OF THE BOARD OF TRUSTEES IN MOST CASES. ANY FUNDAMENTAL CHANGES WILL GO TO THE FULL BOARD. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER OF THE ORGANIZATION IS THE GOOD SHEPHERD LONG TERM ACUTE CARE SERVICES, INC. ("LTACS"). THE SOLE CORPORATE MEMBER OF LTACS IS THE GOOD SHEPHERD REHABILITATION NETWORK ("GSRN"), A RELATED TAX-EXEMPT ENTITY. THE GOVERNING BOARD OF THE ORGANIZATION SHALL BE APPOINTED BY THE BOARD OF GSRN. IN ADDITION, ANY AMENDMENTS TO THE ORGANIZATION'S BYLAWS MUST BE APPROVED BY THE BOARD OF LTACS. FORM 990, PART VI, SECTION A, LINE 7B SEE EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 7A. FORM 990, PART VI, SECTION B, LINE 11B THE IRS FORM 990 IS PREPARED USING INFORMATION SOLICITED FROM OFFICERS, DIRECTORS, TRUSTEES, BOARD COMMITTEE MEMBERS, AND MANAGEMENT. THIS GROUP OF INDIVIDUALS IS PROVIDED A DRAFT RETURN BEFORE THE FINAL RETURN IS FILED. QUESTIONS, COMMENTS, AND ADDITIONAL INFORMATION PROVIDED BY THIS GROUP ARE INCORPORATED INTO THE FINAL RETURN. THE FINAL RETURN IS REVIEWED AT A COMMITTEE LEVEL OF THE BOARD PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THERE IS A SYSTEMATIC PROCESS COORDINATED THROUGH THE GOVERNANCE COMMITTEE WHERE THE CONFLICT OF INTEREST STATEMENTS COMPLETED ANNUALLY BY BOARD MEMBERS AND SENIOR LEADERSHIP TEAM MEMBERS ARE REVIEWED BY THE GOVERNANCE COMMITTEE. WHENEVER THE COMMITTEE FEELS THE CONFLICT STATEMENT IS EITHER INCOMPLETE OR FEELS SOMETHING MAY BE MISSING, THE COMMITTEE WILL ASK MANAGEMENT TO PURSUE FURTHER DUE DILIGENCE. WHEN A BOARD MEMBER DOES HAVE AN INHERENT CONFLICT, THE TRUSTEE IS ASKED TO EITHER ABSTAIN FROM VOTING OR EXCUSE HIMSELF FROM THE ROOM DURING THE DISCUSSION AND VOTING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES OF GOOD SHEPHERD REHABILITATION NETWORK (GSRN) DELEGATE RESPONSIBILITY FOR ADHERENCE TO ALL LEGAL AND REGULATORY REQUIREMENTS AFFECTING EXECUTIVE COMPENSATION TO THE HUMAN RESOURCES / COMPENSATION COMMITTEE OF THE BOARD (THE COMMITTEE). THE COMMITTEE IS PERMITTED TO ENGAGE EXTERNAL RESOURCES AS NECESSARY TO EDUCATE THEM ON NEW LEGAL OR REGULATORY GUIDELINES, MARKET TRENDS AND TO SUPPORT DELIBERATIONS AND DECISION MAKING RELATED TO EXECUTIVE COMPENSATION. THE COMMITTEE SELECTED AND UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, MERCER- A MARSH & MCCLENNAN COMPANY, (THE CONSULTANT) AS A RESOURCE TO ASSIST WITH DECISIONS RELATED TO EXECUTIVE COMPENSATION. IN ACCORDANCE WITH THE COMMITTEE'S ANNUAL WORK PLAN, THE COMMITTEE REVIEWED AT THE SEPTEMBER 2023 MEETING THE FOLLOWING: MERCER (US), INC. CERTIFIES THAT IT (1) IS A COMPENSATION CONSULTING FIRM, (2) PERFORMS COMPENSATION VALUATION STUDIES OF THIS TYPE ON A REGULAR BASIS, AND (3) IS QUALIFIED TO PERFORM THE VALUATIONS OF THE TYPE OF PROPERTY OR SERVICES INVOLVED. DURING MERCER'S REVIEW OF EXECUTIVE COMPENSATION, IT WAS FOUND IN THEIR OPINION TO BE FAIR, REASONABLE AND MARKET APPROPRIATE BASED ON THEIR ANALYSIS OF COMPETITIVE COMPENSATION AND BENEFIT PRACTICES FOR FUNCTIONALLY COMPARABLE POSITIONS IN SIMILARLY SITUATED ORGANIZATIONS. ALL OF THE COMPENSATION MEETINGS ARE FORMALLY DOCUMENTED CONSISTENT WITH BEST GOVERNANCE PRACTICES. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PHYSICIANS FEES: PROGRAM SERVICE EXPENSES 692,856. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 692,856. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 1,140,370. MANAGEMENT AND GENERAL EXPENSES 66,118. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,206,488. FORM 990, PART XII, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR. GOOD SHEPHERD HOME LONG-TERM CARE FACILITY INC GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232215800 OPERATES TWO SKILLED NURSING FACILITIES FOR THE SEVERELY DISABLED PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD HOUSING DEVELOPMENT CORPORATION GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 233073390 PROVIDES INDEPENDENT LIVING APTS FOR DISABLED, LOW-INCOME ADULTS PA 501(C)(3) LINE 10 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD REHABILITATION HOSPITAL GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 231371947 PROVIDES COMPREHENSIVE INPATIENT AND OUTPATIENT REHABILITATION SERVICES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD REHABILITATION NETWORK GOOD SHEPHERD PLAZA 850 SOUTH 5TH S ALLENTOWN PA 18103 232216041 PROVIDES MANAGEMENT SERVICES IN SUPPORT OF ITS TAX-EXEMPT AFFILIATES PA 501(C)(3) LINE 7 N/A 0 PHILADELPHIA POST-ACUTE PARTNERS LLC 1800 LOMBARD STREET PHILADELPHIA PA 19146 208283421 OPERATES INPATIENT REHAB HOSP, ACUTE CARE HOSP & 8 OUTPATIENT FACILITIES PA 501(C)(3) LINE 3 GOOD SHEPHERD REHABILITATION NETWORK 0 GOOD SHEPHERD RECIPROCAL RISK RENTENTION GROUP 7301 RIVERS AVENUE SUITE 230 NORTH CHARLESTON SC 29406 204065112 RISK RETENTION GROUP SC N/A C 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1