2020-05-11T09:58:58-05:00 2019-06-30 271235638 MCM CPAS & ADVISORS LLP 462 S FOURTH ST SUITE 2600 LOUISVILLE KY 402023445 990 2018-07-01 610574577 KENTUCKY HOSPITAL ASSOCIATION KENT 5024266220 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 NANCY GALVAGNI PRESIDENT 5024266220 2020-03-25 1 ELEANOR A LIVINGSTON CPA MST P00226461 5027491900 2020-03-25 69.135.99.226 2020-03-25 07:28:47 ED P 15395EE8A161B212B967FE21EE139055B7290B59 556A34B20EBD71BDE80FA4AD9917708082DBAC75 2018 2020-09-23 17:36:50Z NANCY GALVAGNI 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 7839293 0 X WWW.KYHA.COM X 1954 KY REPRESENT AND PROVIDE SERVICES TO KY HOSPITALS THAT ARE ACCOUNTABLE AND ORIENTED TO THE COMMUNITY. 24 23 26 50 0 0 0 0 6041785 5990641 273434 234476 1493741 1169950 7808960 7395067 190514 13200 0 0 4418020 4698944 0 0 0 2500878 2464105 7109412 7176249 699548 218818 19607273 20222825 3947599 4086712 15659674 16136113 X THE MISSION OF THE ASSOCIATION SHALL BE TO SERVE AS AN ASSOCIATION THAT REPRESENTS AND SERVES HOSPITALS, RELATED HEALTH CARE ORGANIZATIONS AND INTEGRATED HEALTH CARE SYSTEMS THAT ARE ACCOUNTABLE TO THE COMMUNITY AND ORIENTED TOWARD COMMUNITY HEALTH IMPROVEMENT. WHERE APPROPRIATE, THE ASSOCIATION WILL SEEK TO INVOLVE OTHER HEALTH CARE FACILITIES, PHYSICIAN GROUPS AND OTHER MEDICAL PROFESSIONAL CORPORATIONS, HEALTH PLANS AND OTHER INTEGRATORS. 0 0 ON THE FEDERAL LEVEL, CONTINUED TO MONITOR AND ANALYZE LEGISLATION AND REGULATIONS AFFECTING HOSPITALS AND PROVIDED COMMENTS ON HOSPITAL-RELATED REGULATIONS AND INFORMED THE MEMBERSHIP. MONITORED AND PROVIDED COMMENTS ON CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS) OUTPATIENT AND INPATIENT PROSPECTIVE PAYMENT SYSTEM RULES AND WAGE INDEX CHANGES. ON AN ON-GOING BASIS, KHA WORKS WITH THE KENTUCKY CABINET FOR HEALTH AND FAMILY SERVICES ON ISSUES RELATED TO THE KENTUCKY MEDICAID PROGRAM AND THE MEDICAID MANAGED CARE ORGANIZATIONS ("MCO") RELEVANT TO A MEDICAID 1115 WAIVER PROPOSAL, EMERGENCY ROOM TRIAGE FEES, MENTAL HEALTH PARITY AND VARIOUS ADMINISTRATIVE PROCEDURES. MONTHLY MEETINGS BETWEEN MEMBERS AND MEDICAID MCOS CONTINUE TO ADDRESS PROBLEMS HOSPITALS EXPERIENCE WITH MANAGED CARE. EFFORTS CONTINUE WITH THE DEPARTMENT FOR MEDICAID SERVICES TO MODEL A NEW DISPROPORTIONATE SHARE SYSTEM FOR HOSPITAL PAYMENTS.KHA MAINTAINED THE STATE DATA CONTRACT FOR COLLECTION OF BOTH INPATIENT AND OUTPATIENT DATA AND CONTINUED THE KENTUCKY BIRTH SURVEILLANCE CONTRACT. REPORTS ARE PRODUCED UTILIZING THE DATA INCLUDING REPORTS TO ASSIST HOSPITALS IN ADDRESSING HOSPITAL READMISSIONS AND DASHBOARD REPORTS DESIGNED TO PROVIDE A HOSPITAL-SPECIFIC SUMMARY FOR EACH MEMBER. THE ECONOMIC IMPACT STUDY FOR EACH KENTUCKY HOSPITAL, WHICH DEMONSTRATES THE VALUE OF THE HOSPITAL TO ITS COMMUNITY, WAS UPDATED. PROVIDED EDUCATIONAL, INFORMATIONAL AND NETWORKING FORUMS FOR MEMBERS TO DISCUSS CURRENT ISSUES OF INTEREST TO MEMBERS. PREPARED AND DISTRIBUTED INFORMATION TO MEMBERS ON CURRENT HEALTH CARE TOPICS.THROUGH THE KENTUCKY HOSPITAL ENGAGEMENT NETWORK AND KENTUCKY HOSPITAL IMPROVEMENT INNOVATION NETWORK, KHA STAFF IS WORKING WITH KENTUCKY HOSPITALS TO REDUCE HARM AND IMPROVE PATIENT SAFETY AND QUALITY IN 90 PARTICIPATING KENTUCKY HOSPITALS. THESE HOSPITALS ARE VOLUNTARILY PARTICIPATING IN COLLABORATIVES TO REDUCE FALLS, PRESSURE ULCERS, CENTRAL LINE ASSOCIATED BLOOD STREAM INFECTIONS, CATHETER-ASSOCIATED URINARY TRACT INFECTIONS, READMISSIONS AND OTHER CLINICAL AND CULTURAL IMPROVEMENT AREAS. REGULAR COACHING/TRAINING WEBINARS ARE HELD TO ASSIST HOSPITALS IN THIS ENDEAVOR. PARTICIPATING KENTUCKY HOSPITALS HAVE REACHED NATIONAL IMPROVEMENT GOALS IN FIVE AREAS AND CONTINUE TO WORK TO REACH PROJECT GOALS IN OTHER AREAS BY THE END OF THE PROJECT.PROVIDE OVERSIGHT AND SUPPORT STAFF SERVICES FOR THE ACTIVITIES OF THE KENTUCKY HOSPITAL RESEARCH AND EDUCATION FOUNDATION ("KHREF") AND KENTUCKY INSTITUTE FOR PATIENT SAFETY AND QUALITY ("KIPSQ").MONITOR AND PROVIDE COMMENTS AND RECOMMENDATIONS ON KENTUCKY LAWS AND REGULATIONS THAT HAVE AN IMPACT ON HOSPITALS AND HEALTH CARE. KEEP MEMBERS INFORMED REGARDING COMPLIANCE WITH KENTUCKY HEALTH STATUTES. 0 0 0 1 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 27 0 1 26 1 0 0 0 0 0 0 0 0 X 24 23 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X APRIL SMITH VICE PRESIDENTFINANCE 5024266220 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 MICHAEL T RUST PRESIDENT 31.00 9.00 X X 1009771 0 65465 JANE WHEATLEY BOARD CHAIR 1.00 0.60 X X 500 300 0 JEROME PENNER IMMEDIATE PAST CHAIR 2.00 0.60 X X 500 300 0 WILLIAM HAUGH TREASURER 1.00 0.60 X X 500 0 0 GARREN COLVIN BOARD CHAIR-ELECT 0.30 0.60 X X 500 100 0 SUSAN STARLING TRUSTEE 1.00 X 0 0 0 MICHAEL SLUSHER TRUSTEE 0.30 X 500 0 0 DAVID ANDERSON TRUSTEE 0.20 X 500 0 0 MICHAEL SHERROD TRUSTEE 0.30 X 500 0 0 PHILLIP CHANG MD TRUSTEE 0.20 X 500 0 0 WAYNE MERIWETHER TRUSTEE 0.30 0.20 X 500 0 0 HARRY BERRY TRUSTEE 0.30 X 500 0 0 MICHAEL YUNGMANN TRUSTEE 0.30 X 500 0 0 LORI JARBOE TRUSTEE 0.30 X 500 0 0 JOHN HOLLINSWORTH TRUSTEE THRU 7/18 0.50 X 500 0 0 DOUGLAS WINKELHAKE TRUSTEE 0.20 X 500 0 0 NINA EISNER TRUSTEE 0.30 X 500 0 0 KATHY STUMBO TRUSTEE 0.30 X 500 0 0 HAROLD WARMAN TRUSTEE 0.30 0.20 X 500 300 0 LARRY PEAL TRUSTEE THRU 7/18 0.30 X 500 0 0 BRUCE TASSIN TRUSTEE 0.30 X 500 0 0 ERIKA SKULA TRUSTEE THRU 9/18 0.30 X 0 0 0 MARK NEWMAN TRUSTEE 0.30 X 500 0 0 KEN MARSHALL TRUSTEE 0.30 X 500 0 0 DENNIS JOHNSON ALTERNATE 0.20 X 500 0 0 NANCY GALVAGNI SR. VICE PRESIDENT 36.00 4.00 X 300381 0 55691 SARAH S NICHOLSON VP/GOVERNMENT RELATIONS 40.00 X 283990 0 28969 CHARLES WARNICK VP/DATA ANALYSIS & PLANNIN 40.00 X 192264 0 26369 ELIZABETH COBB VP/HEALTH POLICY THRU 6/19 30.00 10.00 X 219359 0 25557 DONNA MEADOR DIR/QUALITY & HEALTH PROFE 34.00 6.00 X 125542 0 21632 APRIL SMITH VP/FINANCE 18.00 22.00 X 130865 0 20871 2273172 1000 244554 7 0 1 0 WITTKIEFFER INC 2015 SPRING ROAD OAK BROOK IL 60523 EXECUTIVE SEARCH FIRM 171493 BARNETT BENVENUTI & BUTLER 489 EAST MAIN STREET SUITE 300 LEXINGTON KY 40507 LEGAL SERVICES 136806 HEALTH MANAGEMENT ASSOCIATES 120 N WASHINGTON SQUARE LANSING MI 48933 CONSULTING 102305 3 MEMBERSHIP DUES 999999 4486080 4486080 KHIIN REVENUE 999999 1243173 1243173 DATA SERVICES 999999 248543 248543 AHA FEES 999999 12845 12845 5990641 235157 235157 441145 2400 444226 0 -3081 2400 -681 -681 PROFESSIONAL SERVICES 999999 1032772 1032772 SUBSIDIARY INCOME 999999 137178 137178 1169950 7395067 7160591 0 234476 13200 1442308 2485427 342698 236948 191563 155156 27881 161000 21344 430755 38152 44690 142266 224471 94227 4896 67388 K-HIIN INITIATIVE 662419 DATA SERVICE EXPENSE 310053 MEMBER/EMPLOYEE/PUBLIC 51723 ASSOCIATION & STAFF DUE 27684 7176249 500 500 604880 485981 257003 230597 21828 12711 714676 654947 1075 59729 5998175 6276373 6792834 6930019 5930978 6226915 19607273 20222825 817537 1038256 1643277 1649460 1486785 1398996 3947599 4086712 X 15659674 16136113 15659674 16136113 19607273 20222825 218818 257621 0 X X 0 1 X 1 0 0 0 1 4486080 678891 678891 677398 1493 650176 590447 59729 64500 64500 0 59729 INVESTMENT IN AFFILIATE 6930019 C 6930019 DEFERRED COMP. PLAN ASSETS 1391322 CAPITAL RESERVE FUND 4590697 ACCRUED INTEREST RECEIVABLE 17506 AFFILIATES RECEIVABLE 227390 6226915 CUSTODIAL FUNDS 4601 DEFERRED COMP. PLAN LIABILITIES 1391322 AFFILIATES PAYABLE 3073 1398996 X PART X, LINE 2: KENTUCKY HOSPITAL ASSOCIATION (KHA) IS A NONPROFIT CORPORATION AS DEFINED BY THE INTERNAL REVENUE SERVICE AND, THEREFORE, IS NOT SUBJECT TO INCOME TAX, OTHER THAN FOR ANY UNRELATED BUSINESS INCOME. THE ASSOCIATION RECOGNIZES UNCERTAIN INCOME TAX POSITIONS USING THE "MORE-LIKELY-THAN-NOT" APPROACH AS DEFINED IN THE ACCOUNTING STANDARDS CODIFICATION. NO LIABILITY FOR UNCERTAIN TAX POSITIONS HAS BEEN RECORDED IN THE ACCOMPANYING FINANCIAL STATEMENTS. 1 KHIIN MILESTONE PROGRAM 60 13200 PART I, LINE 2: THE ORGANIZATION MAINTAINS RECORDS OF THE AMOUNT OF GRANTS THEY AWARD TO KENTUCKY HOSPITALS THROUGH THE K-HIIN PROGRAM. THE K-HIIN IS A QUALITY IMPROVEMENT PROGRAM FOR KENTUCKY HOSPITALS. X X X 1 1 X X X X 1 1 0 MICHAEL T RUST PRESIDENT 601956 0 202257 0 205558 0 37125 0 28340 0 1075236 0 0 0 NANCY GALVAGNI SR. VICE PRESIDENT 251452 0 40182 0 8747 0 36989 0 18702 0 356072 0 0 0 SARAH S NICHOLSON VP/GOVERNMENT RELATIONS 228631 0 30000 0 25359 0 27270 0 1699 0 312959 0 0 0 CHARLES WARNICK VP/DATA ANALYSIS & PLANNIN 173520 0 17182 0 1562 0 13133 0 13236 0 218633 0 0 0 ELIZABETH COBB VP/HEALTH POLICY THRU 6/19 188757 0 30182 0 420 0 12480 0 13077 0 244916 0 0 0 APRIL SMITH VP/FINANCE 110465 0 20194 0 206 0 9008 0 11863 0 151736 0 0 0 PART I, LINE 1A THE COMPANY CHARTERS FLIGHTS AS NEEDED FOR VARIOUS EMPLOYEES WHEN THE NATURE OF THE TRAVEL TO RURAL PARTS OF KENTUCKY AND TIME CONSTRAINTS REQUIRES QUICKER TRAVEL THAN AVAILABLE BY CAR. THE PRESIDENT'S CONTRACT INCLUDES TRAVEL BY HIS SPOUSE TO VARIOUS MEETINGS. VALUE OF THIS TRAVEL IS INCLUDED ON THE PRESIDENT'S W-2. THE ASSOCIATION MAINTAINS MEMBERSHIP IN SOCIAL CLUBS TO USE MEETING SPACE AND ENTERTAIN MEMBERS/GUESTS. ANY PERSONAL EXPENSES INCURRED BY THE PRESIDENT ARE REIMBURSED TO THE ASSOCIATION. PART I, LINES 4A-B MICHAEL T. RUST CONTRIBUTED $55,484 TO A 457(B) RETIREMENT PLAN. SARAH NICHOLSON WAS TERMINATED ON 9/30/18 AND RECEIVED $108,948 IN SEVERANCE PAYMENT. FORM 990, PART VI, SECTION A, LINE 1 THE KHA EXECUTIVE COMMITTEE HAS AUTHORITY TO ACT IN BETWEEN REGULARLY SCHEDULED BOARD MEETINGS. MINUTES AND ACTIONS OF THE EXECUTIVE COMMITTEE ARE SUBSEQUENTLY APPROVED BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS ARE HOSPITALS THAT PAY DUES TO BELONG TO THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THROUGH THEIR DISTRICTS, MEMBERS NOMINATE BOARD MEMBERS TO SERVE ON THE KHA BOARD WHO ARE THEN SUBSEQUENTLY APPROVED BY THE FULL MEMBERSHIP THROUGH MAILED BALLOT. FORM 990, PART VI, SECTION A, LINE 7B SPECIAL DUES ASSESSMENTS AND AMENDMENTS TO THE BYLAWS ARE SUBJECT TO THE REVIEW AND APPROVAL OF THE MEMBERS. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF THE RETURN IS REVIEWED FIRST BY INTERNAL MANAGEMENT. AFTER INTERNAL MANAGEMENT HAS REVIEWED THE RETURN AND ANY CHANGES ARE MADE, A DRAFT IS PRESENTED TO THE FINANCE AND BUDGET COMMITTEE FOR REVIEW. AFTER THE REVIEW AND APPROVAL BY THE COMMITTEE, A COPY IS MADE AVAILABLE TO THE BOARD FOR REVIEW AND APPROVAL OF FORM 990 PRIOR TO ITS FILING. FORM 990, PART VI, SECTION B, LINE 12C STATEMENTS ARE REVIEWED BY THE COMPLIANCE OFFICER AND A STATEMENT IS INCLUDED ON THE AGENDA FOR EACH BOARD MEETING REMINDING MEMBERS OF THE CONFLICT OF INTEREST POLICY AND THE NEED TO DISCLOSE CONFLICTS AT THE TIME CONFLICTS ARISE. IF THE DISCLOSURE FORM REVEALS A SIGNIFICANT FINANCIAL INTEREST, IT WILL BE REVIEWED PROMPTLY BY THE INSTITUTIONAL OFFICIAL OR DESIGNEE FOR A DETERMINATION OF WHETHER IT CONSTITUTES A FINANCIAL CONFLICT OF INTEREST. IF A FINANCIAL CONFLICT OF INTEREST EXISTS, THE INSTITUTIONAL OFFICIAL WILL TAKE ACTION TO MANAGE THE FINANCIAL CONFLICT OF INTEREST INCLUDING THE REDUCTION OR ELIMINATION OF THE CONFLICT, AS APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT CPA FIRM REVIEWS ANNUAL SALARY SURVEY AND INFORMATION PROVIDED FOR LIKE POSITIONS IN ASSOCIATIONS OF SIMILAR SIZE AND CONTIGUOUS TO KENTUCKY EVERY TWO YEARS AND ISSUES A LETTER SUBSTANTIATING THE REASONABLENESS OF COMPENSATION AND BENEFITS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PAGE 13, PART XII LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. KHA CONTINUES TO BE AUDITED AS PART OF THE KENTUCKY HOSPITAL ASSOCIATION CONSOLIDATED GROUP. KHA CONTINUES TO BE INCLUDED IN THE KENTUCKY HOSPITAL ASSOCIATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS. THE ORGANIZATION STILL HAS AN AUDIT/FINANCE COMMITTEE THAT OVERSEES THE AUDIT OF THE FINANCIAL STATEMENTS AND THE SELECTION OF THE INDEPENDENT AUDITOR. KENTUCKY HOSPITAL RESEARCH & EDUCATION FOUNDATION INC 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 616052378 HEALTHCARE, CHARITABLE, RESEARCH AND EDUCATIONAL ACTIVITIES IN KENTUCKY KY 501(C)(3) LINE 7 KENTUCKY HOSPITAL ASSOCIATION 1 KENTUCKY INSTITUTE FOR PATIENT SAFETY AND QUALITY INC 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 264657040 EDUCATING ORGANIZATIONS ON PATIENT SAFETY KY 501(C)(3) LINE 10 KENTUCKY HOSPITAL ASSOCIATION 1 KENTUCKY HOSPITAL SERVICE COMPANY OF KENTUCKY LLC 2501 NELSON MILLER PARKWAY LOUISVILLE KY 40223 611004776 PROVIDE INSURANCE/RISK MANAGEMENT SERVICES KY KENTUCKY HOSPITAL ASSOCIATION C 2743337 5402230 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 KENTUCKY HOSPITAL SERVICE CO K 176000 ALLOCATION OF SPACE & EQUIP USE KENTUCKY HOSPITAL SERVICE CO O 497778 ALLOCATED TIME OF SHARED EES KY HOSPITAL RESEARCH AND EDUCATION FOUNDATION O 348217 ALLOCATED TIME OF SHARED EES KENTUCKY HOSPITAL SERVICE CO Q 521988 ALLOCATED EXPENSE REIMBURSEMENT KENTUCKY HOSPITAL SERVICE CO O 87500 ALLOCATED TIME OF SHARED EES KY INSTITUTE FOR PATIENT SAFETY AND QUALITY O 186777 ALLOCATED TIME OF SHARED EES KY INSTITUTE FOR PATIENT SAFETY AND QUALITY P 262500 ALLOCATED DATA REPORT FEE KENTUCKY HOSPITAL SERVICE CO P ALLOCATED EXPENSE REIMBURSEMENT SCHEDULE R,PAGE 3, PART V KENTUCKY HOSPITAL ASSOCIATION (KHA), KENTUCKY HOSPITAL SERVICE COMPANY OF KENTUCKY, LLC (KHSC), KENTUCKY HOSPITAL RESEARCH AND EDUCATION FOUNDATION (KHREF) AND KENTUCKY INSTITUTE FOR PATIENT SAFETY AND QUALITY (KIPSQ) SHARE EXPENSES FOR EMPLOYEES. THE COMPANIES ALSO SHARE EXPENSES FOR OFFICE SUPPLIES, INSURANCE, AND OTHER OFFICE EXPENSES. THESE EXPENSES ARE PAID BY ONE ORGANIZATION AND THEN THE OTHER ORGANIZATIONS WILL REIMBURSE FOR THESE EXPENSES BASED ON THE REIMBURSEMENT PERCENTAGES DETERMINED AT THE BEGINNING OF EACH YEAR. THE REIMBURSEMENT PERCENTAGE IS BASED ON THE TOTAL NUMBER OF EMPLOYEES.