2022-08-08T14:36:43-05:00 2021-09-30 390859910 Baker Tilly US LLP 101 Washington Street East Charleston WV 25329 990 2020-10-01 550404900 Herbert J Thomas Memorial Hospital Association HERB 3047663523 4605 MacCorkle Avenue SW South Charleston WV 25309 Timothy Skeldon Sr. Vice President, CFO 3047663523 2022-08-15 1 Timothy Skeldon XXX-XX-XXXX Dolores Rose P01286262 3043460441 2022-07-22 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z Thomas Memorial Hospital Timothy Skeldon 4605 MacCorkle Avenue SW South Charleston WV 25309 213314546 0 X www.thomashealth.org X 1946 WV To provide health care services to residents of South Charleston, WV and surrounding communities. 15 15 0 31 -285928 0 100240 5992955 196462789 205176380 54767 177310 41927929 1964849 238545725 213311494 0 0 0 0 44573972 48496202 0 0 0 89138761 95732947 133712733 144229149 104832992 69082345 129118182 179578357 32005804 15828690 97112378 163749667 To provide health care services to residents of South Charleston, WV and surrounding communities. 0 0 97872710 206584313 Services provided by the hospital include 36,045 inpatient days and 179,560 outpatient visits which includes 22,179 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 $1,817,206. The hospital provided community education activities and sponsors free health screening and wellness programs. 97872710 1 1 0 0 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 1 1 0 0 1 X 51 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 15 15 0 0 0 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 Chuck Jones Chairman 1.00 2.00 X X 0 0 0 Angela Mayfield First Vice-Chairman 1.00 2.00 X X 0 0 0 Craig Slaughter Second Vice-Chairman 1.00 2.00 X X 0 0 0 Steve Kawash Treasurer 1.00 2.00 X X 0 0 0 Andy Barker Board Member 1.00 2.00 X 0 0 0 Ashley Pack Board Member 1.00 2.00 X 0 0 0 Danny Scalise Board Member 1.00 3.00 X 0 0 0 David Sayre Board Member 1.00 2.00 X 0 0 0 Dennis Sutton Board Member 1.00 2.00 X 0 0 0 Father Higgs Board Member 1.00 2.00 X 0 0 0 Kishore Challa MD Board Member 1.00 2.00 X 0 0 0 LJ Fairless Board Member 1.00 2.00 X 0 0 0 Mark Robinson Board Member 1.00 2.00 X 0 0 0 Paul Breadlove Board Member 1.00 2.00 X 0 0 0 Susan Lavenski Board Member 1.00 2.00 X 0 0 0 Daniel J Lauffer President/CEO Thomas Health 24.00 16.00 X 0 765072 36340 Timothy K Skeldon Senior VP Finance/CFO Thomas Health 24.00 16.00 X 0 530280 32449 Brian Ulery Executive VP/COO Thomas Health 24.00 16.00 X 0 514138 26530 Tarek Anderson MD Director of Neonatology 40.00 X 249266 0 29083 Scott Alexander Brown Director of Thomas Fam. Pharmacy 40.00 X 159762 0 20652 William K Priddy 304B Pharmacy Manager 40.00 X 189292 0 11864 John M Vickers Pharmacy Manager 40.00 X 176824 0 25244 Alice Stanely Lead Physician Assistant 40.00 X 142592 0 21702 917736 1809490 203864 5 0 1 0 Hospitalist Medicine Physicians of WV PO Box 742936 Los Angeles CA 90074 Hospitalist Services 590100 Pulmonary Associates of Charleston PLLC 4619 Kanawha Ave SW Charleston WV 25309 Pulmonary Physician Services 207240 Emcare Inc 7032 Collection Center Drive Chicago IL 60693 ER Physician Services 189032 Fresenius Medical Care PO Box 10158 Atlanta GA 30392 Dialysis Services 159731 Sounds Physicians PO Box 742936 Los Angeles CA 90074 Peer to Peer Reviews/Advisory Services 142413 7 36352 5928941 27662 5992955 Patient services 622110 191746873 191746873 Family Pharmacy 446110 6560195 6615279 -55084 340B Program Revenue 900099 5630997 5630997 Laboratory-Other 621990 1238315 1238315 205176380 180362 180362 842844 0 842844 842844 842844 3052 -3052 -3052 -3052 Cafeteria & vending 722212 721292 721292 S-Corp Loss-Home Health 900099 -230844 -230844 Loss on debt restructuring 900099 -462636 -462636 1094193 1094193 1122005 213311494 206584313 -285928 1020154 X 48496202 20800021 27696181 3000 3000 17403121 7468140 9934981 581901 249577 332324 117682 50474 67208 3899654 1678411 2221243 2369 1016 1353 191960 82332 109628 7441189 3191526 4249663 Medical supplies 22231055 22231055 Pharmacy Supplies and D 19496872 19496872 Bad debts 15875231 15875231 Healthcare provider tax 5432631 5432631 3056282 1315424 1740858 144229149 97872710 46356439 0 3123184 503680 198869 15221196 21448205 6126055 6184530 741947 535329 305022977 210839137 99435074 94183840 1197476 225076 3074381 56497697 129118182 179578357 9868303 7393879 22137501 8434811 32005804 15828690 X 97112378 163749667 97112378 163749667 129118182 179578357 X 69082345 -882812 -1562244 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12025535 12025535 154963548 91274833 63688715 13834 13834 0 125860474 112577894 13282580 12159586 6972576 5187010 94183840 Estimated third party settlements 2882450 Other receivables 1148440 Financed maintenance 261574 Deposits 3971 Due from related parties 52201262 56497697 Accrued pension liabilities 3760000 Capital lease obligations 3340165 Current portion of long-term debt 1334646 8434811 X Part X, Line 2: The System, Thomas Memorial, the Foundation, Saint Francis and THS Physician Partners are recognized as exempt from Federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and similar state statutes relating to not-for-profit organizations. Under applicable provisions of the Internal Revenue Code and state statutes, TMH Services, which is a for-profit entity and subject to Federal and state income taxes, elected to be treated as a C-corporation for income tax purposes. Accounting principles generally accepted in the United States of America require the management of the System to evaluate tax positions taken by the System. Management has evaluated the Systems tax positions and concluded that the System had maintained its tax exempt status and had taken no uncertain tax positions that require recognition or disclosure in the financial statements. Therefore, no provision or liability for income taxes has been included in the consolidated financial statements. The System is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The management of the System believes it is no longer subject to income tax examinations for years prior to the fiscal year ended September 30, 2018. 1 1 X 1 X 1 X 320.000000000000 1 1 0 0 1817206 1817206 0.01420 27110818 22816239 4294579 0.03350 28928024 22816239 6111785 0.04770 94064 11846 82218 0.00060 94064 11846 82218 0.00060 29022088 22828085 6194003 0.04830 1 15875231 32275611 32924854 -649243 X 1 1 1 Thomas Valuecare Inc Company reserved for future use 1.00000 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://thomashealth.org/community-health/ X 1 20 1 https://thomashealth.org/community-health/ 0 1 X 200.000000000000 320.000000000000 X X X X 1 1 X X X X 1 X https://thomashealth.org/billing-and-financial-assistance/ X https://thomashealth.org/billing-and-financial-assistance/ X https://thomashealth.org/billing-and-financial-assistance/ X X X X 1 X 0 X 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.The amount of cash and in-kind contributions to community groups was obtained from the hospital's accounting records. 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 $ 15,875,231. 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 March, 2020. 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: The hospital, along with St. Francis Hospital, is part of Thomas Health System, Inc. The health system was formed to forge a partnership based on the strength of the two established hospitals. Bringing the two hospitals under the umbrella of the Thomas Health System allows them to provide innovative and cost-effective health care services to the Kanawha Valley and surrounding areas. Economies of scale have allowed for cost reductions in numerous areas, while providing advanced technology to a larger community, with access to the highest quality of physicians, nurses and support staff in our service area. The system provides a wide range of services that serves the entire community. 0 0 0 0 0 0 0 0 0 Daniel J Lauffer President/CEO Thomas Health 0 493836 0 271236 0 0 0 14250 0 22090 0 801412 0 0 Timothy K Skeldon Senior VP Finance/CFO Thomas Health 0 320712 0 209568 0 0 0 10269 0 22180 0 562729 0 0 Brian Ulery Executive VP/COO Thomas Health 0 328474 0 185664 0 0 0 12262 0 14268 0 540668 0 0 Tarek Anderson MD Director of Neonatology 249266 0 0 0 0 0 12964 0 16119 0 278349 0 0 0 John M Vickers Pharmacy Manager 176824 0 0 0 0 0 9125 0 16119 0 202068 0 0 0 William K Priddy 304B Pharmacy Manager 189292 0 0 0 0 0 9480 0 2384 0 201156 0 0 0 Scott Alexander Brown Director of Thomas Fam. Pharmacy 159762 0 0 0 0 0 7271 0 13381 0 180414 0 0 0 Alice Stanely Lead Physician Assistant 142592 0 0 0 0 0 6848 0 14854 0 164294 0 0 0 Schedule J 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 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 2,083 employees. Form 990, Part VI, Section A, line 6 Thomas Health System, Inc., a nonprofit corporation organized under the laws of the State of West Virginia, 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 1,176,864. Management and general expenses 1,567,048. Fundraising expenses 0. Total expenses 2,743,912. Lab Services: Program service expenses 518,582. Management and general expenses 690,516. Fundraising expenses 0. Total expenses 1,209,098. Administrative Services: Program service expenses 2,285,056. Management and general expenses 3,042,657. Fundraising expenses 0. Total expenses 5,327,713. Medical Services: Program service expenses 2,356,611. Management and general expenses 3,137,936. Fundraising expenses 0. Total expenses 5,494,547. Maintenance Contracts: Program service expenses 1,131,027. Management and general expenses 1,496,824. Fundraising expenses 0. Total expenses 2,627,851. Form 990, Part XI, line 9: Equity transfer -1,099,608. Prior period adjustment for loss on debt restructuring -462,636. Thomas Health System Inc 4605 MacCorkle Avenue SW South Charleston WV 25309 260440674 Corporate office WV 501(c)(3) Line 3 N/A 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 TMH Services Inc 437 Division Street Ste 311 South Charleston WV 25309 550676607 Equipment sales, rental and related services, vending sales WV Thomas Memorial Hospital C 106156 7683207 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 213936 Accounting Records