2019-05-15T11:39:02-05:00 2018-06-30 BKD LLP 910 E ST LOUIS 200/PO BOX 1190 SPRINGFIELD MO 658062523 990 2017-07-01 320345810 PENN HIGHLANDS HEALTHCARE % BRIAN S KLINE CFO PH DUBO PENN 8143756432 PO BOX 447 DUBOIS PA 15801 STEVEN FONTAINE CEO 8143756432 2019-05-07 true Brian D Todd P00422601 4178658701 167.68.126.162 43032920191355000015 2019-05-15 P 39CBA67CBDC84C24964593991C1F330368A3BFFE 39CBA67CBDC84C24964593991C1F330368A3BFFE 2017 2019-02-21 02:37:17Z STEVEN FONTAINE CEO PO BOX 447 100 HOSPITAL AVE DUBOIS PA 15801 22482335 false X WWW.PHHEALTHCARE.ORG X 2011 PA PENN HIGHLANDS HEALTHCARE IS A COMMUNITY-BASED AND CONTROLLED HEALTH CARE SYSTEM THAT EXISTS TO IMPROVE REGIONAL ACCESS TO QUALITY HEALTHCARE. 17 10 0 20 0 0 0 112375 18201484 22348404 0 0 332165 -14283 18533649 22446496 96829 98092 0 0 14275800 17193080 0 0 0 3662525 4949312 18035154 22240484 498495 206012 3935915 40657646 3824739 10106391 111176 30551255 X OUR COMMUNITY-BASED AND CONTROLLED HEALTH CARE SYSTEM EXISTS TO IMPROVE REGIONAL ACCESS TO A WIDE ARRAY OF PREMIER PRIMARY CARE AND ADVANCED HEALTH SERVICES WHILE SUPPORTING A REVERENCE FOR LIFE AND THE WORTH AND DIGNITY OF EACH INDIVIDUAL. false false 18794031 98092 22348404 PENN HIGHLANDS HEALTHCARE WAS FORMED IN CONJUNCTION WITH THE AFFILIATION OF DUBOIS REGIONAL MEDICAL CENTER AND ITS AFFILIATED ENTITIES INCLUDING BROOKVILLE HOSPITAL, CLEARFIELD HOSPITAL AND ITS AFFILIATED ENTITIES AND ELK REGIONAL HOSPITAL AND ITS AFFILIATED ENTITIES. SEE SCHEDULE O FOR ADDITIONAL INFORMATION. 18794031 true false false false false false false false false false true false true true true false false true false false false false false false true false false true false true true false false false false false false false false false true false false false false true true true true false false true 29 0 true 0 false false false false false true true false false false false X 17 10 true false false false false true false true true false false true true true true true true true true false PA X BRIAN S KLINE CFO PH DUBO 8143756377 PO BOX 447 100 HOSPITAL AVENUE DUBOIS PA 15801 X RONALD KING CHAIRMAN 2.0 0.0 X X 0 0 0 RICHARD PFINGSTLER VICE-CHAIR 2.0 5.0 X X 0 0 0 DR RICHARD BEDGER SECRETARY 2.0 10.0 X X 0 25000 0 ROBERT A ORDIWAY TREASURER 2.0 0.0 X X 0 0 0 DR THOMAS CARNEVALE TRUSTEE 1.0 40.0 X 0 409637 26760 DR HAZEM EL KASSAS TRUSTEE 1.0 2.0 X 0 0 0 THOMAS G GASBARRE TRUSTEE 1.0 0.0 X 0 0 0 DAVID LEZZER TRUSTEE 1.0 1.0 X 0 0 0 DR CARMINE MARCHIOLI TRUSTEE 1.0 0.0 X 0 0 0 EDWARD NASUTI TRUSTEE 1.0 0.0 X 0 0 0 ROB O'LEARY TRUSTEE 1.0 0.0 X 0 0 0 DR GREGORY ROSCOE TRUSTEE 1.0 2.0 X 0 0 0 JIM RYAN TRUSTEE 1.0 0.0 X 0 0 0 TODD STOLTZ TRUSTEE 1.0 2.0 X 0 0 0 WILLIAM WOOD TRUSTEE 1.0 0.0 X 0 0 0 SCOTT FORADORA TRUSTEE 1.0 0.0 X 0 0 0 MARK NORMAN CHIEF OPERATING OFFR, TRUSTEE 40.0 2.0 X X 308875 0 34937 STEVE FONTAINE CEO, TRUSTEE 40.0 2.0 X 766400 0 110581 DR RUSS CAMERON CHIEF MEDICAL OFFICER, TRUSTEE 1.0 40.0 X 0 516550 46783 ROSE CAMPBELL VP PATIENT SERVICES/CNO 1.0 40.0 X 0 278360 35160 TARUN GHOSH PHH CFO BEG 9/17 40.0 0.0 X 123077 0 9051 ROBERT MCKEE VP CHIEF HR OFFICER 1.0 40.0 X 0 261046 34105 CLOYD GEEDY VP SUPPLY CHAIN MANAGEMENT 1.0 40.0 X 0 156431 22446 GREGORY BAUER VP BUSINESS DEVELOPMENT 1.0 40.0 X 0 241548 35231 THOMAS JOHNSON CHIEF INFORMATION OFFICER 1.0 40.0 X 0 264616 20175 DR GARY DUGAN CHIEF MEDICAL OFFICER END 4/17 1.0 40.0 X 0 199873 15498 1198352 2353061 390727 3 true true false WHITAKER CARRIER SERVICE 91 TREASURE LAKE DUBOIS PA 15801 COURIER SERVICES 288755 BKD LLP 910 E ST LOUIS SPRINGFIELD MO 65801 AUDIT/TAX/CONSULTING 252500 BALDWIN LAW GROUP 600 FAIRMOUNT AVENUE STE 306 TOWSON MD 21286 LEGAL SERVICES 228131 K L GATES 210 6TH ST KL GATES CENTER PITTSBURGH PA 15222 LEGAL SERVICES 202494 CANTOR FITZGERALD WALTH PARTNERS LL 449 PARK AVE 6TH FLOOR NEW YORK NY 10022 CONSULTING SERVICES 125000 5 112375 112375 MANAGEMENT SERVICES 541611 22348404 22348404 22348404 0 0 0 0 0 0 0 21556 112375 35839 -14283 -14283 0 0 0 0 0 0 0 22446496 22348404 -14283 X 98092 98092 0 0 0 1352921 1352921 0 12795152 12185543 609609 0 3045007 2786191 258816 0 0 432495 432495 240000 240000 0 0 0 2785128 2425289 359839 624999 544249 80750 222862 194020 28842 0 0 131931 114886 17045 93477 81400 12077 0 3719 3239 480 0 0 15142 13186 1956 157658 137289 20369 LICENSES, DUES, SUBSCRIPTIONS 202682 176495 26187 RECRUITING & RETENTION 31896 27775 4121 REPAIRS & MAINTENANCE 7323 6377 946 22240484 18794031 3446453 0 3169016 3845613 0 0 0 0 353854 306 0 0 0 0 0 0 0 0 130671 539222 75709 53477 37374 22232 0 0 0 0 0 29734257 0 0 245000 6516016 3935915 40657646 2170668 6776391 0 0 0 0 0 0 0 0 0 0 1337762 0 0 0 316309 3330000 3824739 10106391 X 111176 29539164 0 803605 0 208486 111176 30551255 3935915 40657646 X 206012 30234067 X false true X true false X X X 4 DUBOIS REGIONAL MEDICAL CENTER 251490707 3 true 36098 0 CLEARFIELD HOSPITAL 250979346 3 true 21998 0 BROOKVILLE HOSPITAL 250984595 3 true 20848 0 ELK REGIONAL HEALTH CENTER 250585280 3 true 19148 0 4 98092 true false false false false false false false false false false false false false false true true true X X true true true true SCHEDULE A, PART IV, SECTION D, LINE 3 SIGNIFICANT VOICE: THE BOARD IS COMPRISED OF INDIVIDUALS APPROVED BY RELATED TAX-EXEMPT ORGANIZATIONS PENN HIGHLANDS DUBOIS, PENN HIGHLANDS CLEARFIELD, PENN HIGHLANDS BROOKVILLE, AND PENN HIGHLANDS ELK. THEREFORE, THE SUPPORTED ORGANIZATIONS HAVE A SIGNIFICANT VOICE IN ALL ACTIVITIES INCLUDING INVESTMENT POLICIES AND DIRECTING THE USE OF THE ORGANIZATION'S INCOME AND ASSETS. SCHEDULE A, PART IV, SECTION E, LINES 2A & 2B MANAGEMENT SERVICES PROVIDED: PENN HIGHLANDS HEALTHCARE PROVIDED SEVERAL MANAGEMENT SERVICES INCLUDING HR, PAYROLL, IT, DEVELOPMENT, RECRUITMENT, COMPLIANCE, SUPPLY CHAIN, ADVERTISING AND OTHER SERVICES TO THE HOSPITALS IN THE PENN HIGHLANDS HEALTHCARE SYSTEM INCLUDING PENN HIGHLANDS DUBOIS, PENN HIGHLANDS ELK, PENN HIGHLANDS CLEARFIELD AND PENN HIGHLANDS BROOKVILLE. EACH INDIVIDUAL HOSPITAL WOULD NEED TO PAY FOR THESE COSTS IF THE PARENT COMPANY DIDN'T PROVIDE THEM. SCHEDULE A, PART IV, SECTION E, LINE 3A PARENT OF SUPPORTED ORGANIZATION: PENN HIGHLANDS HEALTHCARE ELECTS THE GOVERNING BODIES OF ALL THE SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 3B PARENT OF SUPPORTED ORGANIZATION: CONTROL IS EXERCISED THROUGH THE RESERVED POWERS OF THE BYLAWS. THE RESERVED POWERS IN THE BYLAWS INCLUDE BUT ARE NOT LIMITED TO APPROVING ALL FUNDAMENTAL TRANSACTIONS OF A SYSTEM SUBSIDIARY, INCLUDING AMENDMENTS OF THE BYLAWS OR OTHER ORGANIZATIONAL/GOVERNANCE DOCUMENTS, ALL STRATEGIC PLANS, ALL CAPITAL, OPERATING AND CASH FLOW BUDGETS, ALL QUALITY PLANS, ANY CHANGES PROPOSED THAT COULD AFFECT THE NOT-FOR-PROFIT, TAX-EXEMPT STATUS OF THIS CORPORATION OR ANY SYSTEM SUBSIDIARY, ANY CHANGE IN MISSION OR DIRECTION OF A SUBSIDIARY, INCLUDING, WITHOUT LIMITATION, ANY DECISION TO ADD OR DISCONTINUE A LINE OF SERVICE OR ADD OR DISCONTINUE ANY OF THE CLINICAL SERVICES. THE ENTITY OVERSEES ALL TRANSACTIONS FOR THE PURCHASE OF ASSETS WITH A CURRENT FAIR MARKET VALUE IN EXCESS OF $500,000 AND THE ENTERING INTO ANY CONTRACT, MORTGAGE OR ANY OTHER UNBUDGETED OPERATING EXPENDITURE IN EXCESS OF $500,000. RESERVED POWERS ALSO INCLUDE THE NOMINATION AND ELECTION OF CERTAIN SYSTEM SUBSIDIARY DIRECTORS AND CERTAIN SYSTEM SUBSIDIARY OFFICERS AND OTHER SYSTEM-WIDE ITEMS INCLUDING SELECTION OF THE INDEPENDENT AUDITOR AND LEGAL COUNSEL, ESTABLISHMENT OF THE CHARITABLE CARE POLICY, REALLOCATION OF INCOME AND/OR CAPITAL AMONG THE SYSTEM SUBSIDIARIES, THE ADDITION OF NEW SYSTEM SUBSIDIARIES AND THE ESTABLISHMENT AND IMPLEMENTATION OF SYSTEM-WIDE PROGRAMS, POLICIES AND INITIATIVES. 75709 53477 22232 22232 0 DUE FROM AFFILIATE 6516016 6516016 0 Due to Affiliates 3330000 3330000 SCHEDULE D, PART X, LINE 2 UNCERTAIN TAX POSITIONS: MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITION TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. GOLF TOURNAMENT 133931 112375 21556 9430 10465 10195 5749 0 133931 112375 21556 9430 10465 10195 5749 35839 -14283 true BROOKVILLE HOSPITAL 100 HOSPITAL ROAD BROOKVILLE PA 15825 250984595 501(C)(3) 20848 PASS-THROUGH SUPPORT CLEARFIELD HOSPITAL 809 TURNPIKE DRIVE CLEARFIELD PA 16830 250979346 501(C)(3) 21998 PASS-THROUGH SUPPORT DUBOIS REGIONAL MEDICAL CENTER 100 HOSPITAL AVENUE DUBOIS PA 15801 251490707 501(C)(3) 36098 PASS-THROUGH SUPPORT ELK REGIONAL HEALTH CENTER 763 JOHNSONBURG RD ST MARYS PA 15857 250585280 501(C)(3) 19148 PASS-THROUGH SUPPORT 4 SCHEDULE I, PART I, LINE 2 MONITORING OF GRANT FUNDS: THE GOLF TOURNAMENT FUNDS ARE DISTRIBUTED BASED ON DESIGNATIONS MADE BY DONORS BUT IF DONORS DO NOT MAKE DESIGNATIONS THEN THE FUNDS ARE DISTRIBUTED EVENLY AMONG THE PENN HIGHLANDS HOSPITALS. THE EXPENSES OF THE TOURNAMENT ARE DISTRIBUTED EVENLY AMONG THE HOSPITALS. X X X X X false true false false false false false false false DR THOMAS CARNEVALE TRUSTEE 0 409412 0 225 0 0 0 10800 0 15960 0 436397 0 0 STEVE FONTAINE CEO, TRUSTEE 560000 0 176400 0 30000 0 94800 0 15781 0 876981 0 0 0 DR RUSS CAMERON CHIEF MEDICAL OFFICER, TRUSTEE 0 450000 0 66550 0 0 0 33300 0 13483 0 563333 0 0 MARK NORMAN CHIEF OPERATING OFFR, TRUSTEE 250000 0 52875 0 6000 0 19039 0 15898 0 343812 0 0 0 DR GARY DUGAN CHIEF MEDICAL OFFICER END 4/17 0 112534 0 55028 0 32311 0 10115 0 5383 0 215371 0 0 ROBERT MCKEE VP CHIEF HR OFFICER 0 226306 0 34740 0 0 0 20367 0 13738 0 295151 0 0 ROSE CAMPBELL VP PATIENT SERVICES/CNO 0 240874 0 36131 0 1355 0 21679 0 13481 0 313520 0 0 CLOYD GEEDY VP SUPPLY CHAIN MANAGEMENT 0 156431 0 0 0 0 0 6238 0 16208 0 178877 0 0 GREGORY BAUER VP BUSINESS DEVELOPMENT 0 213585 0 26749 0 1214 0 19265 0 15966 0 276779 0 0 THOMAS JOHNSON CHIEF INFORMATION OFFICER 0 229702 0 26070 0 8844 0 9188 0 10987 0 284791 0 0 SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN: THE FOLLOWING INDIVIDUALS RECEIVED CONTRIBUTIONS TO A 457(F) PLAN DURING THE YEAR: $66,000 STEVE FONTAINE $ 4,500 DR. RUSSELL CAMERON A HOSPITAL AUTHORITY OF THE CITY OF DUBOIS 251718944 263804BQ8 2018-05-31 168594544 REFUND 2014, CONSTRUCTION false false false A 0 0 168594544 0 0 0 1514726 0 0 3352531 73615000 93141739 true false false true A false false false false 0 false false false true A false true false false false false 0 false 0 false true A true SCHEDULE K, PART I, LINE A TAX-EXEMPT BONDS: THE TAX-EXEMPT BONDS LISTED ON SCHEDULE K WERE ISSUED FOR THE BENEFIT OF THE TAX-EXEMPT ENTITIES INCLUDED IN THE AFFILIATED SYSTEM OF PENN HIGHLANDS HEALTHCARE, INCLUDING THE FOLLOWING: PENN HIGHLANDS DUBOIS PENN HIGHLANDS ELK PENN HIGHLANDS CLEARFIELD PENN HIGHLANDS BROOKVILLE SCHEDULE K HAS ONLY BEEN PREPARED FOR PENN HIGHLANDS HEALTHCARE AND INCLUDES ALL PROCEEDS OF TAX-EXEMPT BONDS, OF WHICH THE BALANCES ARE SHOWN ON THE BALANCE SHEETS OF THE RELATED TAX-EXEMPT ORGANIZATIONS ABOVE. GLWD LP OWNED BY TRUSTEE 108542 RENT OF OFFICE SPACE false ONCOLOGY HEMATOLOGY ASSOC OF PA OWNED BY TRUSTEES 824700 PHYSICIAN SERVICES false SUSQUEHANNA ANESTHESIOLOGISTS OWNED BY TRUSTEE 871508 PHYSICIAN SERVICES false SCHEDULE L, PART IV, COLUMN B RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: (1) GLWD, LP, IS 100% OWNED BY DR. GREGORY ROSCOE, TRUSTEE. (2) ONCOLOGY HEMATOLOGY ASSOCIATES OF PENNSYLVANIA IS 100% OWNED BY TRUSTEES DR. CARMINE MARCHIOLI AND DR. HAZEM EL KASSAS. (3) SUSQUEHANNA ANESTHESIOLOGISTS IS 100% OWNED BY TRUSTEE DR. RICHARD BEDGER. FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS: THE PURPOSE FOR THE AFFILIATION IS TO ENSURE THE ACCESSIBILITY OF HEALTH CARE SERVICES IN THE CLEARFIELD, DUBOIS, ELK AND BROOKVILLE AREAS, ENHANCE ACCESS TO HIGH-QUALITY PATIENT CARE FACILITIES FOR PATIENTS AND MEDICAL STAFFS OF THE HOSPITALS, OFFER A BROADER RANGE OF SERVICES AND CREATE COST EFFICIENCIES IN THE DELIVERY OF HEALTH CARE SERVICES TO THE COMMUNITY. PENN HIGHLANDS HEALTHCARE EXERCISES A SUBSTANTIAL DEGREE OF DIRECTION OVER THE POLICIES, PROGRAMS AND ACTIVITIES OF THE SUPPORTED ORGANIZATIONS AND THE OTHER SUBSIDIARIES, INCLUDING OVERSEEING AND IMPLEMENTING A SYSTEM-WIDE CONFLICT OF INTEREST POLICY AND PASTORAL CARE PROGRAM. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIPS: DR. CARMINE MARCHIOLI AND DR. HAZEM EL KASSAS SHARE A BUSINESS RELATIONSHIP THROUGH OWNERSHIP IN AN UNRELATED ENTITY. COMPENSATED TRUSTEES AND OFFICERS SHARE A BUSINESS RELATIONSHIP THROUGH THEIR EMPLOYMENT WITH A RELATED ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A POWER TO ELECT OR APPOINT BOARD: THE BOARD IS COMPRISED OF INDIVIDUALS APPROVED BY RELATED TAX-EXEMPT ORGANIZATIONS PENN HIGHLANDS DUBOIS, PENN HIGHLANDS CLEARFIELD, PENN HIGHLANDS BROOKVILLE, AND PENN HIGHLANDS ELK. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. THE COMPLETE FORM 990 WILL BE PROVIDED TO THE FINANCE COMMITTEE AND BOARD OF DIRECTORS. AT THAT TIME, THE COMMITTEE WILL REVIEW THE FORM 990 AND HAVE THE OPPORTUNITY TO DISCUSS ANY INFORMATION CONTAINED WITHIN THE DOCUMENT. FORM 990, PART VI, SECTION B, LINE 12C MONITORING COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY: PENN HIGHLANDS HEALTHCARE, INC. (PHH), MAINTAINS A CONFLICT OF INTEREST POLICY WHICH APPLIES TO ALL SUBSIDIARIES. THE CONFLICT OF INTERESTS POLICY APPLIES TO BOARD MEMBERS, OFFICERS, EXECUTIVE EMPLOYEES, AND ANY OTHER MANAGER OR SUPERVISOR EXERCISING SUBSTANTIAL INFLUENCE OVER OPERATIONS. EACH COVERED PERSON WILL PROMPTLY AND FULLY DISCLOSE ALL MATERIAL FACTS OF EVERY ACTUAL OR POTENTIAL DUAL INTEREST EXISTING AT THE TIME WHEN HE/SHE BECOMES A COVERED PERSON, AND ANNUALLY THROUGH EACH PHH SYSTEM ENTITY'S DISCLOSURE STATEMENT, WHICH REQUESTS DISCLOSURE OF RELATIONSHIPS, INVESTMENTS, AND TRANSACTIONS THAT MAY LEAD TO AN ACTUAL CONFLICT OF INTEREST. ALL COMPLETED DISCLOSURE STATEMENTS WILL BE PROVIDED TO THE PHH GOVERNANCE/NOMINATING COMMITTEE. THIS COMMITTEE, IN CONSULTATION WITH THE CHAIRPERSON OR VICE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD, SHALL EVALUATED THE COMPLETED DISCLOSURE STATEMENTS AND DETERMINE IF THERE ARE ANY CONFLICTS THAT ARE SO PERVASIVE AS TO RENDER ANY COVERED PERSON INELIGIBLE FOR SERVICE. THE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD WILL DISCLOSE TO THE FULL BOARD OF SAID PHH SYSTEM ENTITY ALL DUAL INTERESTS REPORTED TO HIM OR HER UNDER THE POLICY AND WILL ALSO MAKE THE DISCLOSURE STATEMENTS OF ALL COVERED PERSONS AVAILABLE TO DIRECTORS AT ANY TIME DURING THE YEAR. IF A POTENTIAL DUAL INTEREST ARISE AS A RESULT OF A CONTEMPLATED PHH SYSTEM ENTITY BOARD (OR COMMITTEE) ACTION, THE CHAIRPERSON OF SAID PHH SYSTEM ENTITY'S BOARD OF THE INTERESTED PERSON SHALL, OR ANY OTHER DIRECTOR MAY, RAISE THE QUESTION OF THE INTERESTED PERSON'S DUAL INTEREST. THE DISINTERESTED MEMBERS OF THE PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) WILL EVALUATED THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION, ARRANGEMENT, OR POLICY GIVING RISE TO THE DUAL INTEREST TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION, ARRANGEMENT, OR POLICY. A COVERED PERSON WHO HAS A DUEL INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE A PRESENTATION TO SAID BOARD (OR COMMITTEE), TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. IF A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE DETERMINES THAT AN ACTUAL CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON SHALL BE SO ADVISED AND THE CHAIRPERSON OF A PHH SYSTEM ENTITY'S BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE OR DIRECT MANAGEMENT TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, IF THIS HAS NOT ALREADY BEEN DONE. ANY INTERESTED PERSON WHO HAS AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING ANY SUCH TRANSACTION OR ARRANGEMENT. IF AN INDIVIDUAL WHOSE COMPANY OR EMPLOYER HAS A BUSINESS RELATIONSHIP WITH A PHH SYSTEM ENTITY, BUT THE INDIVIDUAL DOES NOT HAVE AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THIS BUSINESS RELATIONSHIPS, THE INDIVIDUAL MAY NONETHELESS VOLUNTARILY RECUSE HIM/HERSELF FROM VOTING ON ANY MATTERS RELATED TO THE RELATIONSHIP. FORM 990, PART VI, SECTION B, LINES 15A & 15B COMPENSATION DETERMINATION: THE PENN HIGHLANDS HEALTHCARE EXECUTIVE COMPENSATION COMMITTEE CONSULTS WITH THE HEALTHCARE CONSULTING FIRM, YAFEE & COMPANY TO OBTAIN COMPARABLE DATA TO MAKE RECOMMENDATIONS TO THE BOARD OF DIRECTORS REGARDING EXECUTIVE COMPENSATION. THE PENN HIGHLANDS HEALTHCARE BOARD OF DIRECTORS IS ACUTELY AWARE OF THE HEIGHTENED PUBLIC SCRUTINY OF EXECUTIVE COMPENSATION AND THE NEED TO CONSIDER REGULATORY COMPLIANCE WHEN SETTING EXECUTIVE PAY. COMPENSATION REVIEWS ARE DONE ON A CONTINUOUS BASIS. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENT AVAILABILITY: THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A BOARD MEMBER COMPENSATION: NO TRUSTEES RECEIVE ANY COMPENSATION FOR THEIR TRUSTEE DUTIES. DR. RICHARD BEDGER IS COMPENSATED AS A PHYSICIAN AT PENN HIGHLANDS CLEARFIELD. DR. THOMAS CARNEVALE IS COMPENSATED AS A PHYSICIAN AT PENN HIGHLANDS DUBOIS. STEVE FONTAINE IS COMPENSATED AS CEO OF THE PENN HIGHLANDS HEALTHCARE SYSTEM. DR. RUSS CAMERON IS COMPENSATED AS CHIEF MEDICAL OFFICER OF THE PENN HIGHLANDS HEALTHCARE SYSTEM. MARK NORMAN IS COMPENSATED AS CHIEF OPERATING OFFICER OF THE PENN HIGHLANDS HEALTHCARE SYSTEM. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS: $ 499,810 CHANGE IN FAIR VALUE OF INTEREST RATE SWAP AGREEMENT 29,734,257 INVESTMENT IN EQUITY INVESTEE* ----------- $ 30,234,067 *THIS ADJUSTMENT CONSISTS OF A PRIOR INVESTMENT IN TAX-EXEMPT AFFILIATES. THE AMOUNT HAS ALWAYS BEEN SHOWN ON THE AUDITED FINANCIAL STATEMENTS, BUT HAS NOT HISTORICALLY BEEN SHOWN ON THE ORGANIZATION'S FORM 990. FORM 990 PART IX LINE 11G DESCRIPTION:OUTSIDE SERVICES TOTAL FEES:1840555 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING SERVICES TOTAL FEES:919255 FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEES TOTAL FEES:25318 PENN HIGHLANDS NATURAL THERAPIES LLC PO BOX 447 100 HOSPITAL AVENUE DUBOIS PA 15801 820776018 INVESTMENTS PA 0 3334873 PHH DUBOIS REGIONAL MEDICAL CENTER 100 HOSPITAL AVENUE DUBOIS PA 15801 251490707 HOSPITAL PA 501(C)(3) 3 PHH true BROOKVILLE HOSPITAL 100 HOSPITAL ROAD BROOKVILLE PA 15825 250984595 HOSPITAL PA 501(C)(3) 3 PHH true CLEARFIELD HOSPITAL 809 TURNPIKE DR CLEARFIELD PA 16830 250979346 HOSPITAL PA 501(C)(3) 3 PHH true ELK REGIONAL HEALTH CENTER 763 JOHNSONBURG RD ST MARYS PA 15857 250585280 HOSPITAL PA 501(C)(3) 3 PHH true CLEAR-MED PROVIDER CORPORATION PO BOX 1260 CLEARFIELD PA 16830 251657668 PHYSICIAN SVC PA 501(C)(3) 3 PHH true DRMC EMPLOYEE BENEFITS PLAN TRUST 100 HOSPITAL AVENUE DUBOIS PA 15801 256332829 BENEFIT TRUST PA 501(C)(9) DRMC true COMMUNITY NURSES HOME HEALTH & HOSPICE 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 250996070 HEALTH CARE PA 501(C)(3) 10 CNI true COMMUNITY NURSES HOME SUPPORT SERVICES 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 251623601 HEALTH CARE PA 501(C)(3) 10 CNI true COMMUNITY NURSES INC 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 251623598 HEALTH CARE PA 501(C)(3) 7 PHH true ELCO HOUSING 759 JOHNSONBURG ROAD ST MARYS PA 15857 251639115 HOUSING PA 501(C)(3) 12 A I PHH true ELK REGIONAL PROFESSIONAL GROUP INC 763 JOHNSONBURG ROAD ST MARYS PA 15857 251875183 HEALTH CARE PA 501(C)(3) 3 PHH true DRMC WORKERS COMPENSATION TRUST PO BOX 447 DUBOIS PA 15801 251741497 SUPPORT PA 501(C)(3) 12 B II DRMC true CLEARFIELD MEDICAL ASSOCIATES 809 TURNPIKE DRIVE CLEARFIELD PA 16830 251369635 PHYSICIAN OFFICES PA CLEARFIELD HOSP EXCLUDED DUBOIS REGIONAL MEDICAL GROUP 100 HOSPITAL AVENUE DUBOIS PA 15801 251856569 PHYSICIAN SERVICE PA DRMC C CORP true DUBOIS MEDICAL RISK RETENTION GROUP 100 HOSPITAL AVE DUBOIS PA 15801 200324622 INSURANCE SERVICE PA DRMC C CORP true BROOKCARE II INC 100 HOSPITAL ROAD BROOKVILLE PA 15825 251477768 LEASE OFFICE SPAC PA BROOKVILLE HOSP C CORP true PENN HIGHLANDS APOTHECARY INC PO BOX 447 100 HOSPITAL AVE DUBOIS PA 15801 364862024 PAIN MGMT PA PHH C CORP true CLEAR-CARE CORPORATION PO BOX 1411 CLEARFIELD PA 16830 251512107 MEDICAL EQUIPMENT PA CLEARFIELD HOSP C CORP true false true false false false false false false false false true true false true true true false false false DUBOIS REGIONAL MEDICAL CENTER K 191545 COST DUBOIS REGIONAL MEDICAL CENTER L 14275531 COST ELK REGIONAL HEALTH CENTER L 3153295 COST CLEARFIELD HOSPITAL L 2261150 COST BROOKVILLE HOSPITAL L 1473101 COST COMMUNITY NURSES INC L 1185327 COST BROOKVILLE HOSPITAL P 173819 COST ELK REGIONAL HEALTH CENTER P 553099 COST CLEARFIELD HOSPITAL P 418630 COST DUBOIS REGIONAL MEDICAL CENTER P 16202278 COST