2019-07-13T09:49:19-05:00 2018-08-31 346565596 Ernst & Young US LLP 1900 Scripps Center 312 Walnut Street Cincinnati OH 45202 990 2017-09-01 610461940 Baptist Health Richmond Inc BAPT 8596253131 PO Box 1600 Richmond KY 404762603 Janet M Norton Vice President and Secretary 5028965000 2019-07-13 1 Tricia M Johnson P00627205 5136121400 199.180.18.1 2019-07-13 09:48:34 ED P 7E530C01EC0DBF1FFF79A5BAD1379F9D370DED1E AB8BD5A88D4BA927D2DA994192B6818756100B67 2017 2019-02-21 02:37:17Z Stephen R Oglesby 2701 Eastpoint Pkwy Louisville KY 40223 104424605 0 X www.baptisthealthrichmond.com X 1892 KY To provide quality health care by a team of highly-skilled physicians & staff through nurturing, personalized services. 9 8 596 78 0 0 36635 201369 91266225 99204345 868468 1107001 1947367 3500798 94118695 104013513 170698 169758 0 0 35101592 35389140 0 0 0 51553582 57911455 86825872 93470353 7292823 10543160 84786866 88522267 49684917 30088219 35101949 58434048 X The mission of Baptist Health Richmond is to exemplify our Christian heritage of providing quality healthcare services by enhancing the health of the people and communities we serve. 0 0 83401147 169758 99204345 See Schedule O. 83401147 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 0 0 1 596 1 0 0 0 0 0 0 0 0 0 0 X 9 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X Stephen R Oglesby 5028965000 2701 Eastpoint Parkway Louisville KY 40223 Earl Baldwin Dir & Vice Chair (Effective 1/23/18) 2.00 0.00 X X 0 3000 0 Helen Fardo Director 2.00 0.00 X 0 3000 0 Jeffrey Fultz Dir & Chair (Effective 1/23/18) 2.00 0.00 X X 0 3000 0 Harry Moberly Jr Director 2.00 0.00 X 0 3000 0 Douglas G Owen DMD Director 2.00 0.00 X 0 3000 0 Laura S Steidle Dir & Vice Chair (Through 1/22/18) 2.00 0.00 X X 0 3000 0 Stephen B Gates Director 2.00 0.00 X 0 3000 0 Kristi Runyon Middleton Director 2.00 0.00 X 0 3000 0 Rizwan Akhtar MD Director (Effective 7/1/18) 1.00 0.00 X 0 108692 0 Greg G Gerard Interim President (Eff 1/27/18) 40.00 0.00 X 0 178851 22777 Christopher T Jones President (Through 1/26/18) 40.00 0.00 X 0 303115 17531 Gerard Colman CEO (Effective 1/23/18) 1.00 40.00 X 0 71385 27218 Janet Norton Secretary & Vice President 1.00 40.00 X 0 628702 33269 Stephen R Oglesby Treasurer & Vice President 1.00 40.00 X 0 520100 95344 Linda M Park Assistant Secretary 40.00 0.00 X 52417 0 11400 Kimberly Richards Pharmacist 40.00 0.00 X 173364 0 6087 Sheila M Johnson Pharmacist 40.00 0.00 X 131397 0 7980 Cathy Edwards Pharmacist 40.00 0.00 X 152891 0 9647 Donna Poindexter Pharmacist 40.00 0.00 X 132506 0 5391 Daniel Moses Pharmacist 40.00 0.00 X 145441 0 6369 Stephen C Hanson CEO (Through 3/21/2017) 0.00 0.00 X 0 1926660 29111 William Sisson Director (Through 12/31/14) 0.00 40.00 X 0 735887 34407 Ashish Patel MD Director (Through 8/31/17) 0.00 40.00 X 0 345240 23103 788016 4842632 329634 14 1 1 0 Aramark CTS Inc 1101 Market Street Philadelphia PA 19107 Hospital Services 983070 Anesthesia Service PLLC 789 Eastern Bypass Richmond KY 40475 Hospital Services 864888 Morrison Healthcare Inc 350 Missouri Avenue Jeffersonville IN 47130 Construction Services 632643 Siemens Medical Solutions USA 51 Valley Stream Parkway Malvern PA 19355 Hospital Services 459556 LabCorp Inc 531 South Spring Street Burlington NC 27215 Hospital Services 305647 18 129121 72248 201369 Net Patient Serv Rev 623990 99204345 99204345 99204345 1094312 1094312 622183 411092 211091 211091 211091 12689 0 12689 12689 12689 Pharmacy Revenue 900009 2563992 2563992 Cafeteria Revenue 900009 436390 436390 Call Coverage 900009 206154 206154 83171 83171 3289707 104013513 99204345 0 4607799 169758 169758 27570219 25173135 2397084 1984077 1812149 171928 3747333 3516698 230635 2087511 1928316 159195 109398 109398 3530511 3059575 470936 7214 5816 1398 16285706 15880569 405137 1461120 1370475 90645 73923 16547 57376 4868 4868 4070495 4070495 1365137 655266 709871 Medical Supplies 20103180 20103180 Purchased Services 5191515 5191515 Pharmacy 2751603 2751603 All Other 1793952 1719864 74088 1162833 1162833 93470353 83401147 10069206 0 10223210 7511260 11853296 14222785 2504931 3205892 190299 97593 58625158 20289378 38535326 38335780 21291154 24108616 188650 1040341 84786866 88522267 4268550 5136052 45416367 24952167 49684917 30088219 X -8403690 20683876 22214485 14076027 21291154 23674145 35101949 58434048 84786866 88522267 X 10543160 460010 12328929 X 0 1 X 1 0 X 24103814 -154540 275129 23674145 22429731 1949212 275129 24103814 22566130 138730 275129 22429731 23914216 -1072957 275129 22566130 21024428 3164917 275129 23914216 0.18490 0.81510 0 0 1191020 1191020 23631246 5017778 18613468 33089494 15118932 17970562 713398 152668 560730 38335780 Perpetual Trusts Held By Trustee 24108616 F 24108616 Inter-Company Loans 19605672 Pension Liability 6100609 Estimated 3rd Party Liability -754114 24952167 Part V, Line 4: Intended Use of Endowment Funds: Assets whose use is limited include assets set aside by the hospital's Board of Directors for long-term uses, over which the Board retains control and may, at its discretion, subsequently use for other purposes. The permanently restricted net assets represent the hospital's beneficial interest in perpetual trusts. 1 1 X 1 X 1 X 1 1 0 1 1 916 3268082 1085990 2182092 0.02330 31363 23034117 24315207 32279 26302199 25401197 2182092 0.02330 7665 29151 0 29151 0.00030 1922 2330963 1581050 749913 0.00800 20687 20687 0.00020 9587 2380801 1581050 799751 0.00850 41866 28683000 26982247 2981843 0.03180 0 1109157 308540 23521897 25860816 -2338919 X 1 1 1 1 Baptist Health Richmond Inc 801 Eastern Bypass Richmond KY 40475 www.baptisthealthrichmond.com 100322 X X Baptist Health Richmond Inc 1 0 0 1 X X X X X X X X X 17 1 0 0 1 X www.baptisthealthrichmond.com X X 1 17 1 www.baptisthealthrichmond.com 0 1 X 200.000000000000 400.000000000000 X X X X X 1 1 X X X 1 X www.baptisthealthrichmond.com X www.baptisthealthrichmond.com X www.baptisthealthrichmond.com X X X X X X 1 X 0 X X X X X 1 X 0 0 Baptist Health Richmond, Inc. Part V, Section B, Line 5: The Madison County Health Department is responsible for the county Baptist Health Richmond serves, and worked collaboratively with us to identify the needs of our community. The Health Department's Community Improvement Plan and initiatives were considered throughout the process of determining the goals for the Baptist Health Richmond Community Health Needs Assessment. Baptist Health Richmond also solicited public opinion on community health needs using a survey distributed via social media, the Baptist Health Richmond website and in paper form. Survey responses, coupled with the information from the health department, were considered as primary data. Secondary data, from national, state and local demographics and socioeconomic sources, Kentucky vital statistics, disease prevalence reports and health indicators and statistics were also collected and analyzed. Our committee also worked closely with numerous other institutions, agencies and individuals that represented public health organizations, other hospitals and community members, to gather, disseminate and prioritize the information collected. Baptist Health Richmond, Inc. Part V, Section B, Line 7d: Availability of CHNA Report:Copies of the CHNA were distributed internally and externally to the individuals and organizations that participated in the needs assessment. The CHNA is also available on our website, www.baptisthealthrichmond.com. Baptist Health Richmond, Inc. Part V, Section B, Line 11: The committee identified a number of pressing community health issues and will focus on the following over the next three years: behavioral health, substance abuse and obesity and healthy lifestyles. Baptist Health Richmond has made behavioral health a priority as the community need continues to increase. The committee ranked expanding access to these services as the most important community health initiative. Our goal is to ensure that residents have sufficient access to mental health and substance abuse counseling and related services. Currently, behavioral health staff complete acute assessments 24/7 at the hospital. The hospital also continues to maintain a substance abuse hotline, an Intensive Outpatient Program and select telemedicine services are being provided on an outpatient basis.The committee ranked opioid abuse as their second priority in terms of public health issues. Opioid abuse has become an epidemic across the country, and locally we are seeing a similar surge of opioid usage admissions and emergency room visits. Similar to obesity, opioid abuse has an impact on overall health and can lead to other co-morbidities. In addition, the service area is seeing a greater presence of drug-addicted newborns that must be cared for in neonatal intensive care units to properly treat withdrawal symptoms. Obesity has a significant impact on other health issues such as cardiovascular disease, diabetes, pulmonary disease and joint deterioration. Through the combined efforts of medical professionals, schools, churches, and government agencies, we will be successful in educating and engaging individuals in better caring for themselves. Kentucky has some of the highest rates in the nation for preventable health conditions and for behaviors that have been identified as unhealthy. We are working to ensure that residents have access to a primary care physician and outpatient nutritional counseling and disease management programs for diabetes and related health issues. An increased awareness of the importance of the early detection and prevention of breast, lung and colon cancer through screening programs will also improve the health of our community members.It is not within the scope of Baptist Health Richmond's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. However, it is through networking, partnerships and collaboration with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Richmond works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being managed by economic development groups, the Kentucky Chamber of Commerce, city and county governments and county health departments. Baptist Health Richmond, Inc. Part V, Section B, Line 13b: Based on the information provided in the FAP application and/or through the presumptive eligibility process, a patient or guarantor whose income is less than 200% of the current Federal Poverty Guideline for his or her family size is eligible for a full discount under the FAP after all other healthcare resources have been utilized and exhausted. A patient or guarantor whose income is greater than 200% but less than 400% of the current Federal Poverty Guideline for his or her family size is eligible for a sliding scale discount after all other healthcare resources have been utilized and exhausted. Baptist Health Richmond, Inc. Part V, Section B, Line 20e: Prior to referring individuals to a collection agency, BHR processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Part V, Section B, Line 3e The hospital did include a prioritized list of the community's significant health needs in its CHNA report. Part I, Line 7: Baptist Health Richmond, (BHR), utilizes a cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Additionally, BHR uses a cost-to-charge ratio, derived from worksheet 2, of patient care cost-to-charges. Patients are also categorized by:1. Patient type (inpatient and outpatient), 2. Payer plan (42 unique categories of payer plans. Charity, state-sponsored charity and the uninsured are among the uniquely identified payer plans), and3. Clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care under a state-sponsored or BHR sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient. For insured patients who also qualify for partial charity under the BHR sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. The cost of care for uninsured patients who do not qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services. Part I, Line 7g No physician clinic costs are included in the costs of subsidized health services. Part II, Community Building Activities: Community building activities:The hospital is an active community partner, working with local government, businesses and civic organizations, education systems, and social service agencies to strengthen the community and provide opportunities for those less fortunate. The hospital participates in Bowl for Kids' Sake, Paint the Town Pink, Salvation Army holiday meal bags, hosts blood drives, supports the United Way and offers a Patient Assistance Fund. The hospital also offers numerous free health care classes, medical screenings and health fairs, and staff members serve on boards and local committees where they speak at meetings and give freely of their time as volunteers. Last year, Baptist Health Richmond contributed more than $14 million in free health education classes, screenings, services and other community benefits. That includes the more than $175,000 invested in preparing regional students to enter the workplace through education, clinical rotations and preceptor programs.Less visible services are freely given as well. Volunteers are on hand daily to visit with patients, deliver mail and run errands for them. They form the hospital's board of directors, staff the gift shop and organize events to raise money for hospital needs. Through their kindness, teddy bears are provided for young patients to ease the emotional trauma often associated with a child's hospital visit. Coloring books, crayons and small toys are given to young patients and visitors to help pass the time. If families staying with loved ones cannot afford to buy food, meals are provided. Volunteers craft hand-made gowns for the burial of perinatal losses. Financial assistance for critical medications is also provided through the case management department. Part III, Line 2: The Cost to Charge ratio is the methodology used in determining bad debt expense at cost. Part III, Line 3: Methodology used to estimate bad debt expenses attributable to patients eligible under FAP:The estimated amount of bad debt expense attributable to patients eligible under the organization's FAP was determined using a historical percentage to total of net amounts written off as bad debt for those patients with a low propensity to pay or low income to total net amounts written off as bad debt.Rationale for including other bad debt amount in community benefit:No other bad debt amounts have been included as community benefit. The hospital educates patients with limited ability to pay regarding financial assistance and for this reason, the organization believes it accurately captures all charity care deductions provided according to the financial assistance policy, and the amount of bad debt expense attributable to patients eligible under the organization's charity care policy is negligible. Part III, Line 4: Bad Debt Expense Footnote:A separate footnote for bad debt expense is not included in the audited financial statements. However, beginning in 2012 Baptist Healthcare System and BHR reported the provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenue. Costing methodology of bad debt is outlined in Schedule H, Part VI, Line 1. The estimated amount of bad debt expense attributable to patients eligible under the organization's FAP was determined using a historical percent to total of net amounts written off as bad debt for those patients with a low propensity to pay or low income to total net amounts written off as bad debt. Part III, Line 8: Medicare costing methodology: Medicare revenues and allowable costs were taken from the as-filed Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit. Part III, Line 9b: COLLECTION PRACTICES:Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account. Guarantors who have an ability to pay for services will be billed based on the following guidelines: - Patients or guarantors may be asked to pay an estimated patient liability at point of service. - BHR facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors. - Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHR Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs. - Patients requesting detailed charge information will be provided with an itemized bill. - BHR Patient Financial Services will provide all patients the same information concerning services and charges. - Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility. Part VI, Line 2: Needs assessment:Baptist Health Richmond, Inc., ("BHR"), assesses the health care needs of our served communities in a variety of ways. One example is community work groups, which meet monthly to discuss various current and emerging community health issues, ultimately determining treatment and education protocols. This group is comprised of hospital clinical professionals, school administrators, local college administrators, emergency preparedness officials and local health department officials, to name a few. Another assessment BHR conducts on a regular basis is the physician needs analysis, to ensure the community has adequate physician coverage in all needed disciplines. Part VI, Line 3: Patient education of eligibility for assistance:The following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - financial counselors advise and/or screen uninsured patients before or during hospital services, - a third party vendor advises and/or screens uninsured patients during hospital services, - financial counselors provide follow-up contact for patients missed during services, - the State-sponsored DSH form is provided to all ER uninsured patients, - telephone calls and in-person visits are handled by staff trained to discuss financial assistance, - information regarding financial assistance is included in patient statements. - The BHR sponsored charity care program policy is posted in key areas of each hospital. - The BHR sponsored charity care program policy is posted on the website of each hospital and the System. Part VI, Line 4: Community information:Baptist Health Richmond is located in the foothills of Appalachia, in central Kentucky in the community of Richmond. Richmond is the county seat of Madison, one of Kentucky's largest and fastest growing areas, and Berea is the county's other principal city. Like many other regional facilities throughout the country, BHR provides healthcare services to a number of counties. BHR's immediate service area is Madison, Estill, Garrard and Jackson counties. In addition, people from over ten surrounding counties come to BHR to take advantage of the wide variety of specialty medical services.According to the U.S. Census Bureau, the population of Madison County in 2017 was 90,128 and that is projected to increase to 94,196 by 2022. Richmond is the seventh largest city in Kentucky with a population of 31,364, and Berea's population has increased to 13,561. The population is predominantly white, followed by African-Americans, Hispanic and Latinos, and people who reported being two or more races. There are few reported American Indians and Asians. There are approximately 73,398 persons in the adult population (16+) with a labor force of 45,697. Residents are less wealthy and much more racially and ethnically homogenous than the U.S. as a whole. The per capita income for the county was $22,271. Approximately 21.3% of the population was below the poverty line. Seventy-five thousand patients sought care at Baptist Health Richmond last year; many of them were among the area's rural poor. More than one third of its patients are from low-income households or underserved populations, and 97% of them live in Appalachia.BHR has charity care policies and procedures in place to determine a patient's ability to pay for services. BHR operates an emergency department that is open 24 hours a day, 365 days a year, where patients are treated without regard to their payment ability. BHR had 31,026 emergency department visits; 2,912 inpatients admitted; 471 obstetric deliveries and provided surgical services to 7,330 patients from Madison and surrounding counties during the twelve months ended August 31, 2018. Part VI, Line 5: Promotion of community health:The hospital furthers its exempt purpose of promoting the health of the community by having a majority of independent governing body members who all reside in the hospital's primary service area; having an open medical staff; and re-investing any operating surplus to continue providing quality healthcare to all in the hospital's service area. Part VI, Line 6: Affiliated Health Care System:The organization is part of Baptist Healthcare System, Inc. (BHS). Part VI, Line 7, Reports Filed With States KY 1 Daniel Ellis Foundation PO Box 1956 Richmond KY 40475 810948181 501(c)(3) 5000 General Support Baptist Health Foundation Richmond 2701 Eastpoint Parkway Louisville KY 40223 311506378 501(c)(3) 151025 General Support 2 Procedures For Monitoring The Use Of Grants: Baptist Health Richmond, Inc. provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed. 1 1 0 0 0 0 0 0 0 Greg G Gerard Interim President (Eff 1/27/18) 0 178851 0 0 0 0 0 5516 0 17261 0 201628 0 0 Christopher T Jones President (Through 1/26/18) 0 270510 0 0 0 32605 0 8100 0 9431 0 320646 0 0 Janet Norton Secretary & Vice President 0 481488 0 50622 0 96592 0 8100 0 25169 0 661971 0 0 Stephen R Oglesby Treasurer & Vice President 0 441167 0 56558 0 22375 0 70285 0 25059 0 615444 0 0 Kimberly Richards Pharmacist 172740 0 0 0 624 0 5191 0 896 0 179451 0 0 0 Cathy Edwards Pharmacist 151685 0 0 0 1206 0 4643 0 5004 0 162538 0 0 0 Daniel Moses Pharmacist 144877 0 0 0 564 0 4405 0 1964 0 151810 0 0 0 Stephen C Hanson CEO (Through 3/21/2017) 0 342480 0 0 0 1584180 0 7607 0 21504 0 1955771 0 380763 William Sisson Director (Through 12/31/14) 0 641206 0 0 0 94681 0 8100 0 26307 0 770294 0 0 Ashish Patel MD Director (Through 8/31/17) 0 291967 0 53156 0 117 0 8100 0 15003 0 368343 0 0 Part I, Line 3 Baptist Healthcare System, Inc., a related organization of Baptist Health Richmond, Inc., uses the following to establish the compensation of the organization's CEO: - Compensation committee - Independent compensation consultant - Form 990 of other organizations - Written employment contract - Compensation survey or study - Approval by the Board or Compensation Committee. Part I, Lines 4a-b Line 4a: One officer received a severance payment from a related organization: Stephen Hanson $809,824 Line 4b: Two officers and executives who participated in the Supplemental Executive Retirement Plan accrued amounts for 2017 which is a portion of the amount reported as deferred compensation in Schedule J, Column C. Other retirement and deferred compensation reported in Schedule J, Column C include amounts for the Retirement Accumulation Plan and Thrift Plan. The following individuals participate in and accrued amounts from the Supplemental Executive Retirement Plan: Gerard Colman $11,827 Stephen R. Oglesby $62,185 The following individuals received a payout from the Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan, as they are fully vested in the plan: William Sisson $62,949 Janet Norton $68,897 Stephen Hanson $767,496 Form 990, Part III, Line 4a Program Accomplishments: Baptist Health Richmond is a fully accredited, non-profit 501 (c) (3) hospital in Richmond, Kentucky. Licensed for 105 beds, Baptist Health Richmond is a rural, acute care facility. Established in 1892, the hospital has served Madison and surrounding counties with primary and secondary services for more than a century. Its core programs include inpatient, outpatient, diagnostic and community services. Its doctors provide care in 20 specialty areas, and have five board-certified hospitalists. Baptist Health Richmond offers cardiac rehabilitation, occupational, physical and respiratory therapy and women's health and childbirth services. Staffed with board-certified emergency physicians and nurses, the Emergency Department treats more than 31,000 patients a year and trains for disaster preparedness annually with the federal government's Chemical Stockpile Emergency Preparedness Program (CSEPP). The hospital offers outpatient surgery and infusion services on campus. The diagnostic services include a clinical laboratory, CT, MRI and radiologic imaging, nuclear medicine, cardiac catheterization, angioplasty, and sleep disorders. The original hospital mission-to care for all members of our community regardless of their race, creed or ability to pay-still guides the hospital today. Seventy-five thousand patients sought care at Baptist Health Richmond last year; many of them were among the area's rural poor. More than one third of its patients are from low-income households or underserved populations, and 97% of them live in Appalachia. BHR has charity care policies and procedures in place to determine a patient's ability to pay for services. BHR operates an emergency department that is open 24 hours a day, every day. Patients are treated without regard to their payment ability. BHR provided inpatient services to the citizens of Madison and surrounding counties, with 2,912 inpatients admitted and 7,330 surgical services performed during the twelve months ended August 31, 2018. BHR also provided obstetric services, a total of 471 deliveries were performed. The hospital is an active community partner, working with local government, businesses and civic organizations, education systems, and social service agencies to strengthen the community and provide opportunities for those less fortunate. Part V, Line 1a Form 1096 is filed by Baptist Healthcare System, Inc., FEIN 61-0444707. Form 990, Part VI, Section A, line 6 Members or stockholders: The organization's sole member is Baptist Healthcare System, Inc. ("BHS"), a non-profit, tax-exempt corporation organized under and pursuant to the provisions of the law of the Commonwealth of Kentucky. Form 990, Part VI, Section A, line 7a Power to Elect or Appoint Members: Board of Directors are appointed by resolution of the organization's sole member, Baptist Healthcare System, Inc. (BHS). Form 990, Part VI, Section A, line 7b Decisions reserved to members or stockholders: The sole member, BHS, has the following reserved powers, acting through its Board of Directors, that include: 1. Approve the mission, vision, and values of the corporation and amendments there to. 2. Approve amendments to the articles of incorporation and the bylaws. 3. Approve the strategic plan of the corporation. 4. Approve the transfer or disposition of all or substantially all of the corporation's assets or investment or interest in any business enterprise; any merger, combination, or reorganization of the corporation; any liquidation, reorganization, or recapitalization of the corporation; or any agreement to do the foregoing. 5. Approve the capital expenditure and operating budgets of the corporation, and any unbudgeted expenditures over $500,000. 6. Selection of the corporation's auditor. 7. Approve the incurrence of debt of the corporation above $500,000 or other amount established by BHS and the making of any capital expenditure above $500,000 or other amount established by BHS. 8. Approve the appointment, removal, and evaluation of the president or chief executive officer of the corporation acting through the president and chief executive officer of BHS. 9. Appoint or remove, with or without cause, the members of the board of directors of the corporation. Appointment and removal shall not require a recommendation of the corporation's board. 10. Appoint or remove, with or without cause, the chair of the board of the corporation. Appointment and removal shall not require a recommendation of the corporation's board. 11. Authorize execution of any contract, agreement, or similar instrument by which the corporation may be obligated to pay more than an amount established by BHS. 12. Acquire any stock of any corporation or any equity in another corporate form, or invest in or acquire any interest in any business enterprise. Form 990, Part VI, Section B, line 11b Process Used To Review The Form 990: The internally prepared Form 990 is reviewed and approved by tax consultants. Copies are provided to each voting member of the Board of Directors prior to filing for their review. Form 990, Part VI, Section B, line 12c Monitoring and Enforcement of Compliance with Conflict of Interest Policy: Annually, the Secretary of Baptist Health System, Inc., (BHS), sends out a conflict of interest questionnaire to each of the directors and officers serving on the Board of Baptist Health Richmond, (BHR). After completion, they are returned to the Secretary and reviewed by the Board or the Governance Effectiveness Committee for any potential conflicts. A conflict of interest is any circumstance, relationship (financial or otherwise), activity or decision (made in the course of governance, management or professional responsibilities or otherwise) that adversely influences or appears to adversely influence the ability of a covered person to: 1) make objective decisions on behalf of BHR and/or 2) act in the best interests of BHR in a manner consistent with the tax-exempt purposes of BHR. The board or committee will determine by a majority vote of disinterested directors whether the disclosed financial or special interest may result in a conflict of interest. Form 990, Part VI, Section B, line 15 Process For Determining Compensation: The President of Baptist Health Richmond, Inc. is not an employee of Baptist Health Richmond, Inc. but is an employee of Baptist Healthcare System, Inc., a tax-exempt 501(c)(3) organization which is the sole member of Baptist Health Richmond, Inc. The President is compensated by Baptist Healthcare System, Inc. Annually in September, the Baptist Healthcare System, Inc. Compensation Committee reviews the compensation, including base compensation and incentive compensation for the President. The Baptist Healthcare System, Inc. Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of Baptist Healthcare System, Inc. Officers of Baptist Health Richmond, Inc. are not employees of Baptist Health Richmond, Inc. nor are they compensated by Baptist Health Richmond, Inc. The Baptist Health Richmond, Inc. officers are employees of Baptist Healthcare System, Inc. and are compensated by Baptist Healthcare System, Inc. The compensation of these officers is either reviewed and approved by the Compensation Committee of the Baptist Healthcare System, Inc. Board or are reviewed and approved by the Baptist Healthcare System, Inc. and/or the Baptist Health Richmond, Inc. President and/or CEO. The organization makes every effort to ensure that the compensation of all employees is reasonable and appropriate for the value of the services received by the organization. Form 990, Part VI, Section C, line 19 Process for Making Documents Available to the Public: The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request. Form 990, Part XI, line 9: Physician Entity Funding -9,813,209. IS Depreciation 2,407,295. Intercompany Transfers 18,361,462. Other Adjustments 1,373,381. Baptist Community Health Services Inc 2701 Eastpoint Parkway Louisville KY 40223 611141242 Medical services KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Corbin Inc 2701 Eastpoint Parkway Louisville KY 40223 473033550 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Lexington Inc 1740 Nicholasville Rd Lexington KY 40503 611480774 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Madisonville Inc 2701 Eastpoint Parkway Louisville KY 40223 472893430 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation of Greater Louisville Inc 4000 Kresge Way Louisville KY 402074604 200292291 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Paducah Inc 2501 Kentucky Avenue Paducah KY 42003 264057759 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Richmond Inc PO Box 1600 Richmond KY 40476 311506378 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Madisonville Inc 900 Hospital Dr Madisonville KY 42431 610654587 Hospital KY 501(c)(3) Schedule A, Line 3 Baptist Healthcare System Inc 1 Baptist Health Medical GroupInc 2701 Eastpoint Parkway Louisville KY 40223 205497203 Physician services KY 501(c)(3) Schedule A, Line 3 Baptist Healthcare System Inc 1 Baptist Healthcare Foundation Inc 2701 Eastpoint Parkway Louisville KY 40223 311122867 Fundraising KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Healthcare System Inc 2701 Eastpoint Parkway Louisville KY 40223 610444707 Hospital KY 501(c)(3) Schedule A, Line 3 N/A 0 Medical Center Ambulance Services Inc 629 LaFoon Street Madisonville KY 42431 610946210 Ambulance Services KY 501(c)(3) Schedule A, Line 10 Baptist Healthcare System Inc 1 Mercy Regional Emergency Medical System LLC 126 Lone Oak Road Paducah KY 42001 611310466 Ambulance Services KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Pattie A Clay Hospital Auxiliary PO Box 1600 Richmond KY 40476 510172717 Support KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist EastMilestone LLC 750 Cypress Station Dr Louisville KY 40207 611355065 Fitness center KY N/A Baptist Eastpoint Surgery Center LLC 2400 Eastpoint Parkway Louisville KY 40223 260834852 Ambulatory surgery center KY N/A Baptist Physicians' Surgery Center LLC 1720 Nicholasville Rd 101 Lexington KY 405031490 043665929 Ambulatory surgery center KY N/A Baptist Health Performance Training LLC 2701 Eastpoint Parkway Louisville KY 40223 473567887 Sports training KY N/A Medical Associates of Middletown LLC 4000 Kresge Way Louisville KY 40207 200399400 Medical office building KY N/A Cumberland Valley Surgical Center PO Box 1620 Corbin KY 40701 611348280 Ambulatory surgery center KY N/A Baptist Health Plan Inc 651 Perimeter Park Ste 300 Lexington KY 40517 611241101 Insurance KY N/A C 0 Baptist Medical Management Services Inc 900 Hospital Drive Madisonville KY 42431 371519513 HC MSO KY N/A C 0 Baptist Ventures Inc 2701 Eastpoint Parkway Louisville KY 40223 611217018 Management KY N/A C 0 MS Community Health LLC 2701 Eastpoint Parkway Louisville KY 40223 611303514 Health Clinic KY N/A C 0 Hopkins County Credit Services Inc 2701 Eastpoint Parkway Louisville KY 40223 610660705 Collections KY N/A C 0 0 1 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 1 0 Baptist Health Foundation Richmond Inc B 151025 Cost Baptist Health Foundation Richmond Inc C 129121 Cost Baptist Healthcare System Inc P 15103294 Cost Baptist Healthcare System Inc R 2621227 Cost Baptist Health Medical Group Inc J 384237 Cost Baptist Health Medical Group Inc P 2329794 Cost Baptist Health Medical Group Inc R 2689469 Cost