2019-05-14T16:54:52-05:00 2018-06-30 ERNST & YOUNG US LLP 425 HOUSTON ST SUITE FORT WORTH TX 76102 990 2017-07-01 371485773 CHC Community Care LLC % James Hill CHCC 9729436431 7800 N Dallas Parkway Suite 200 Plano TX 75024 James Hill Treasurer 9729436431 2019-05-14 true MELVA SCOTT P01207335 8173351900 164.57.159.253 75306120191345000088 2019-05-14 P 0FD3178183619286035AA06C9BAA1B15F55AB8A5 BEE816BADD25910960E744A98AF4267C63CAEDF6 2017 2019-02-21 02:37:17Z James Hill 7800 N Dallas Parkway SUITE Plano TX 75024 6054359 false 9703 X http://continuecare.org/ X 2004 DE TO PROVIDE EFFECTIVE, VALUE-ADDED POST-ACUTE CARE SERVICES THAT COMPLEMENT THE CONTINUUM OF PATIENT CARE OF PATIENT CARE. 3 0 58 0 0 0 0 0 5996581 6054359 0 0 0 0 5996581 6054359 0 0 0 0 3553449 3779746 0 0 0 1974951 1789688 5528400 5569434 468181 484925 3419106 3379032 8498902 7973903 -5079796 -4594871 X CHC COMMUNITY CARE LLC (CCC) WAS ORGANIZED FOR THE PURPOSE OF OWNING AND OPERATING LONG-TERM ACUTE CARE HOSPITALS (LTACHS). CCC'S LONG-TERM MISSION IS TO PROVIDE EFFECTIVE, VALUE-ADDED POST-ACUTE CARE SERVICES THAT COMPLEMENT THE CONTINUUM OF PATIENT CARE PROVIDED BY NOT-FOR-PROFIT AND PUBLICLY GOVERNED HOSPITALS IN THE U.S. DURING THE YEAR CCC OWNED AND OPERATED EIGHT HOSPITALS, CONTINUECARE HOSPITAL OF TYLER, A 51 BED LTACH IN TYLER, TEXAS, CONTINUECARE HOSPITAL AT HENDRICK MEDICAL CENTER, A 19 BED LTACH IN ABILENE, TEXAS, CONTINUECARE HOSPITAL AT BAPTIST HEALTH, A 32 BED LTACH IN CORBIN, KENTUCKY, CONTINUECARE HOSPITAL AT BAPTIST HEALTH MADISONVILLE, A 35 BED LTACH IN MADISONVILLE, KENTUCKY, CONTINUECARE HOSPITAL AT BAPTIST HEALTH PADUCAH, A 37 BED LTACH IN PADUCAH, KENTUCKY, CONTINUECARE HOSPITAL AT ODESSA, A 25 BED LTACH IN ODESSA, TEXAS, CONTINUECARE HOSPITAL OF MIDLAND, A 29 BED LTACH IN MIDLAND, TEXAS AND CONTINUECARE HOSPITAL AT PALMETTO HEALTH BAPTIST, A 35 BED LTACH IN COLUM false false 4864046 0 6054359 CCC PROVIDES MANAGEMENT SERVICES AND SUPPORT TO EIGHT LONG-TERM ACUTE CARE HOSPITALS, CONTINUECARE HOSPITAL OF TYLER, A 51 BED LTACH IN TYLER, TEXAS, CONTINUECARE HOSPITAL AT HENDRICK MEDICAL CENTER, A 19 BED LTACH IN ABILENE, TEXAS, CONTINUECARE HOSPITAL AT BAPTIST HEALTH, A 32 BED LTACH IN CORBIN, KENTUCKY,CONTINUECARE HOSPITAL AT BAPTIST HEALTH MADISONVILLE, A 35 BED LTACH IN MADISONVILLE, KENTUCKY, CONTINUECARE HOSPITAL AT BAPTIST HEALTH PADUCAH, A 37 BED LTACH IN PADUCAH, KENTUCKY, CONTINUECARE HOSPITAL AT ODESSA, A 25 BED LTACH IN ODESSA, TEXAS, CONTINUECARE HOSPITAL OF MIDLAND, A 29 BED LTACH IN MIDLAND, TEXAS AND CONTINUECARE HOSPITAL AT PALMETTO HEALTH BAPTIST, A 35 BED LTACH IN COLUMBIA, SOUTH CAROLINA. LTACHS PROVIDE A VENUE OF CARE FOR PATIENTS THAT REQUIRE EXTENDED LENGTHS OF STAY IN AN ACUTE CARE SETTING. TYPICALLY, LENGTHS OF STAY WILL AVERAGE 25 DAYS OR LONGER. CONDITIONS APPROPRIATE FOR THE TREATMENT IN AN LTACH INCLUDE THE FOLLOWING: MEDICALLY COMPLEX, RESPIRATORY DISORDERS INCLUDING TRACHEOTOMY, VENTILATOR DEPENDENT, CARDIAC/CARDIOVASCULAR CONDITIONS, RENAL DISEASE, ONCOLOGY ANDWOUND CARE. DURING THE FISCAL YEAR ENDED JUNE 30, 2018 THE LTACHS ADMITTED 2,134 PATIENTS AND PROVIDED 58,927 DAYS OF PATIENT CARE. 4864046 true false false false false false false false false false true false false true true false false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 6 0 true 58 true false false false false false false false false false false X 3 0 false false false false true true true true false false false true true true true true true false false false X James Hill 9729436431 7800 N DALLAS PARKWAY SUITE 200 Plano TX 75024 WILSON WEBER DIRECTOR 1.0 39.0 X 0 662521 39294 James Hill DIRECTOR/Treasurer 1.0 39.0 X X 0 254689 38013 Jim Kendrick PRESIDENT/DIRECTOR 1.0 39.0 X X 0 670443 103823 April Myers Vice President 40.0 0.0 X 0 210488 43747 David Butler Secretary 1.0 39.0 X 0 382510 31287 Lisa Young LTACH CFO (UNTIL 3/18) 40.0 0.0 X 189958 0 11903 Sally Parnell VP, CLIN SVCS POST ACUTE CARE 40.0 0.0 X 220451 0 35736 Stephanie Hyde CEO CONTINUECARE TYLER 1.0 39.0 X 225082 0 27181 Tom Harlan CEO CONTINUECARE Palmetto 1.0 39.0 X 188280 0 20533 Keith Rogers Regional VP, Post Acute SVCS 40.0 0.0 X 190906 0 21368 Michael Williams Former President/Director 0.0 0.0 X 0 2098576 20774 Leslie Boney Former Vice President 0.0 0.0 X 0 109271 0 1014677 4388498 393659 23 true true false HEALTHCARE SOFTWARE INC 1350 CAMPUS PARKWAY SUITE 202 WALL TOWNSHIP NJ 07753 SOFTWARE LICENSE 452114 SOUTHEAST REIMBURSEMENT GROUP 335 PARKWAY 575 SUITE 110 WOODSTOCK GA 30188 Cost report consult. 181081 AMN HEALTHCARE 12400 High Bluff Drive San Diego CA 92130 Temporary nursing 127851 3 0 0 0 Management fee income 541610 3654359 3654359 0 0 INFORMATION TECHNOLOGY FEE 541519 2400000 2400000 0 0 6054359 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6054359 6054359 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3065706 3065706 0 0 0 0 0 0 495803 495803 0 0 218237 218237 0 0 464400 464400 0 0 10991 0 10991 0 430248 0 430248 0 0 0 0 0 0 0 0 0 0 0 279180 110668 168512 0 10238 10238 0 0 51886 51886 0 0 67640 48378 19262 0 0 0 0 0 70124 0 70124 0 65026 65026 0 0 0 0 0 0 3106 3106 0 0 234 234 0 0 0 0 0 0 275723 275723 0 0 0 0 0 0 LICENSE & PERMITS 32463 32463 0 0 PENALTIES 7245 7245 0 0 DUES & SUBSCRIPTIONS 12502 12502 0 0 ALL OTHER EXPENSE 8682 2431 6251 0 5569434 4864046 705388 0 0 51474 27712 0 0 0 0 0 0 0 0 0 0 0 0 0 0 107363 83194 1471141 1249401 481548 221740 0 0 0 0 0 0 0 0 2778721 3046386 3419106 3379032 299020 525200 0 0 0 0 0 0 0 0 0 0 24174 0 0 0 8175708 7448703 8498902 7973903 X -5079796 -4594871 0 0 0 0 -5079796 -4594871 3419106 3379032 484925 0 0 0 0 X X false true X true false X X X 10 CONTINUECARE HOSPITAL OF TYLER INC 200991990 3 true 666792 0 CONTINUECARE HOSPITAL OF SE TEXAS INC 201150480 3 true 0 0 CONTINUECARE HOSPITAL OF MIDLAND INC 463053684 3 true 274024 0 CONTINUECARE HOSPITAL AT BAPTIST HEALTH LLC 200925675 3 true 267319 0 CONTINUECARE HOSPITAL AT HENDRICK MEDICAL CENTER INC 463607347 3 true 270009 0 CONTINUECARE HOSPITAL AT BAKERSFIELD INC 465236524 3 true 0 0 CONTINUECARE HOSPITAL AT BAPTIST HEALTH MADISONVILLE INC 465033192 3 true 261665 0 CONTINUECARE HOSPITAL AT BAPTIST HEALTH PADUCAH INC 465032999 3 true 249111 0 CONTINUECARE HOSPITAL AT ODESSA INC 473539943 3 true 294317 0 CONTINUECARE HOSPITAL AT PALMETTO HEALTH BAPTIST INC 813048423 3 true 471122 0 10 2754359 true false false false false false false false false false false false false false false true true true X true true Schedule A, Part IV, Section D, Line 3 The organization manages each of the supported organizations, including the maintenance and issuance of the supported organizations' policies and procedures. The majority of the directors and the officers of the supporting organization that manage the supported organizations serve as either directors or officers of its supported organizations. This board overlap of officers and directors between the supported organization and the supporting organizations allows the supported organizations to have a significant voice in the direction, management and policies of the supporting organization. Schedule A, Part IV, Section E, Line 3A AS THE SOLE MEMBER OF EACH OF THE SUPPORTED ORGANIZATIONS, THE ORGANIZATION HAS THE AUTHORITY TO APPOINT ALL OF THE SUPPORTED ORGANIZATIONS' OFFICERS AND DIRECTORS. Schedule A, Part IV, Section E, Line 3B THE ORGANIZATION MANAGES EACH OF THE SUPPORTED ORGANIZATIONS, INCLUDING THE MAINTENANCE AND ISSUANCE OF THE SUPPORTED ORGANIZATIONS' POLICIES AND PROCEDURES. 0 1471141 1249401 221740 221740 DUE FROM MIDLAND LTACH 1118386 DUE FROM PALMETTO LTACH 615889 DUE FROM PADUCAH LTACH 452331 DUE FROM BAP HLTH LLC LTACH 230588 DUE FROM CRAWLEY LTACH 115597 DUE FROM COMM HOSP CONSULTING 103866 DUE FROM MADISONVILLE LTACH 87565 DUE FROM BAKERSFIELD LTACH 82169 Other 1776 DUE FROM HENDRICK LTACH 49609 DUE FROM TYLER LTACH 12024 DUE FROM ODESSA LTACH 42813 DUE FROM PINEVILLE LTACH 38699 DUE FROM CCC LTACH 95074 3046386 0 DUE TO COMMUNITY HOSPITAL CORP 7448703 7448703 true true false false false false false true false Michael Williams Former President/Director 0 527618 0 0 0 1570958 0 7950 0 12824 0 2119350 0 0 April Myers Vice President 0 199139 0 0 0 11349 0 14954 0 28793 0 254235 0 0 David Butler Secretary 0 359967 0 0 0 22543 0 5505 0 25782 0 413797 0 0 Leslie Boney Former Vice President 0 0 0 0 0 109271 0 0 0 0 0 109271 0 0 Lisa Young LTACH CFO (UNTIL 3/18) 188059 0 0 0 1899 0 11903 0 0 0 201861 0 0 0 Sally Parnell VP, CLIN SVCS POST ACUTE CARE 207323 0 0 0 13128 0 13704 0 22032 0 256187 0 0 0 Stephanie Hyde CEO CONTINUECARE TYLER 182995 0 39312 0 2775 0 13262 0 13919 0 252263 0 0 0 Tom Harlan CEO CONTINUECARE Palmetto 161924 0 0 0 26356 0 8423 0 12110 0 208813 0 0 0 Keith Rogers Regional VP, Post Acute SVCS 188054 0 0 0 2852 0 12658 0 8710 0 212274 0 0 0 WILSON WEBER DIRECTOR 0 514779 0 0 0 147742 0 7950 0 31344 0 701815 0 0 James Hill DIRECTOR/Treasurer 0 240108 0 0 0 14581 0 7669 0 30344 0 292702 0 0 Jim Kendrick PRESIDENT/DIRECTOR 0 467742 0 0 0 202701 0 83594 0 20229 0 774266 0 0 SCHEDULE J, PART I, LINE 3 CHC COMMUNITY CARE, LLC (CCC) DOES NOT COMPENSATE THE PRESIDENT OF THE ORGANIZATION. COMMUNITY HOSPITAL CORPORATION (CHC) COMPENSATES CCCS OFFICERS, THEREFORE, FOLLOWS THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITIES AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THE ORGANIZATION FOLLOWED THE PROCESS FOR THE YEAR ENDED 6/30/18 FOR ITS OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES AND OTHER MANAGEMENT OFFICIALS. SCHEDULE J, PART I, LINE 4A LESLIE BONEY, An OFFICER OF CHC COMMUNITY CARE UNTIL OCTOBER 2016, RECEIVED $109,271 IN SEVERANCE PAYMENTS FROM A RELATED ORGANIZATION DURING 2017. MIKE WILLIAMS, AN OFFICER AND DIRECTOR OF CHC COMMUNITY CARE UNTIL APRIL 2017, RECEIVED A SEVERANCE PAYMENT FROM A RELATED ORGANIZATION UPON HIS TERMINATION OF EMPLOYMENT. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, QUESTION 4B NON QUALIFIED RETIREMENT PLAN PARTICIPATION WAS PAID TO: MICHAEL WILLIAMS - $157,802 DAVID BUTLER - $12,706 JAMES HILL - $10,225 WILSON WEBER - $117,595 April Myers - $1,740 Jim Kendrick - $76,924 COMPENSATION CONTINGENT ON NET EARNINGS SCHEDULE J, PART I, LINE 7 A PORTION OF THE DISCRETIONARY INCENTIVE COMPENSATION PROGRAM FOR JIM KENDRICK, DAVID BUTLER, JAMES HILL, APRIL MYERS, SALLY PARNELL, KEITH ROGERS AND WILSON WEBER WAS BASED ON THE CONSOLIDATED EBIDA OF CHC. SERVICES RENDERED TO RELATED HOSPITAL SCHEDULE J PART II AND FORM 990 PART VII CCC PAYS COMPENSATION TO STEPHANIE HYDE AND TOM HARLAN FOR SERVICES RENDERED TO A RELATED HOSPITAL. CCC REPORTS SUCH COMPENSATION ON W-2 FORMS FOR THESE INDIVIDUALS, AND, AS SUCH, REPORTS THE AMOUNTS AS COMPENSATION PAID BY THE FILING ORGANIZATION ON SCHEDULE J. THE RELATED HOSPITAL REIMBURSES CCC FOR THESE PAYMENTS. DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 THE COMPANY SHALL HAVE THIRTEEN CLASSES OF MEMBERS, DESIGNATED AS CLASS A, CLASS B, CLASS C, CLASS D, CLASS E, CLASS F, CLASS G, CLASS H, CLASS I, CLASS J, CLASS K, CLASS L AND CLASS P AS SET FORTH IN THE CERTIFICATE OF FORMATION AND COMPANY AGREEMENT AS FOLLOWS: (A) THE SOLE CLASS A MEMBER OF THE COMPANY IS COMMUNITY LTACH, LLC. EXCEPT AS OTHERWISE PROVIDED IN THE CERTIFICATE OR THIS AGREEMENT, THE CLASS A MEMBER SHALL BE THE SOLE VOTING MEMBER OF THE COMPANY. (B) THE SOLE CLASS B MEMBER OF THE COMPANY IS TRINITY MOTHER FRANCES HEALTH SYSTEM, A TEXAS NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT TRINITY MOTHER FRANCES HEALTH SYSTEM CEASES TO BE A CLASS B MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS B MEMBER OF THE COMPANY. (C) THERE SHALL BE NO MORE THAN ONE CLASS C MEMBER. IT SHALL BE AN ORGANIZATION THAT SATISFIES THE REQUIREMENTS FOR MEMBERSHIP SET FORTH IN THE CERTIFICATE AND THIS AGREEMENT. FROM THE DATE THAT THE FIRST CLASS CMEMBER (WHENEVER DESIGNATED BY THE MANAGERS) CEASES TO BE A CLASS C MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS C MEMBER OF THE COMPANY. (D) THERE SHALL BE NO MORE THAN ONE CLASS D MEMBER. IT SHALL BE AN ORGANIZATION THAT SATISFIES THE REQUIREMENTS FOR MEMBERSHIP SET FORTH IN THE CERTIFICATE AND THIS AGREEMENT. FROM THE DATE THAT THE FIRST CLASS D MEMBER (WHENEVER DESIGNATED BY THE MANAGERS) CEASES TO BE A CLASS D MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS D MEMBER OF THE COMPANY. (E) EACH AND EVERY CLASS E MEMBER (WHENEVER DESIGNATED BY THE MANAGERS) SHALL BE AN ORGANIZATION THAT SATISFIES THE REQUIREMENTS FOR MEMBERSHIP SET FORTH IN THE CERTIFICATE AND THIS AGREEMENT. (F) THE SOLE CLASS F MEMBER OF THE COMPANY IS MIDLAND MEMORIAL COMMUNITY CARE, A TEXAS NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT MIDLAND MEMORIAL COMMUNITY CARE CEASES TO BE A CLASS F MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS F MEMBER OF THE COMPANY. (G) THE SOLE CLASS G MEMBER OF THE COMPANY IS BAPTIST COMMUNITY HEALTH SERVICES, A KENTUCKY NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT BAPTIST COMMUNITY HEALTH SERVICES CEASES TO BE A CLASS G MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS G MEMBER OF THE COMPANY. (H) THE SOLE CLASS H MEMBER OF THE COMPANY IS HENDRICK MEDICAL CENTER, A TEXAS NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT HENDRICK MEDICAL CENTER CEASES TO BE A CLASS H MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS H MEMBER OF THE COMPANY. (I) THERE SHALL BE NO MORE THAN ONE CLASS I MEMBER. IT SHALL BE AN ORGANIZATION THAT SATISFIES THE REQUIREMENTS FOR MEMBERSHIP SET FORTH IN THE CERTIFICATE AND THIS AGREEMENT. FROM THE DATE THAT THE FIRST CLASS I MEMBER (WHENEVER DESIGNATED BY THE MANAGERS) CEASES TO BE A CLASS I MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS I MEMBER OF THECOMPANY. (J) THE SOLE CLASS J MEMBER OF THE COMPANY IS BAPTIST COMMUNITY HEALTH SERVICES, A KENTUCKY NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT BAPTIST COMMUNITY HEALTH SERVICES CEASES TO BE A CLASS J MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS J MEMBER OF THE COMPANY. (K) THE SOLE CLASS K MEMBER OF THE COMPANY IS BAPTIST COMMUNITY HEALTH SERVICES, A KENTUCKY NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT BAPTIST COMMUNITY HEALTH SERVICES CEASES TO BE A CLASS K MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS K MEMBER OF THE COMPANY. (L) THE SOLE CLASS L MEMBER OF THE COMPANY IS MEDICAL CENTER HEALTH SYSTEM FOUNDATION, A TEXAS NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT MEDICAL CENTER HEALTH SYSTEM FOUNDATION CEASES TO BE A CLASS L MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS L MEMBER OF THE COMPANY. (M) THE SOLE CLASS P MEMBER OF THE COMPANY IS PALMETTO HEALTH BAPTIST, A SOUTH CAROLINA NOT-FOR-PROFIT CORPORATION. IN THE EVENT THAT PALMETTO HEALTH BAPTIST CEASES TO BE A CLASS P MEMBER OF THE COMPANY, THERE SHALL NO LONGER BE A CLASS P MEMBER OF THE COMPANY. DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, QUESTION 7A NO MEMBER, OTHER THAN CLASS A MEMBER, SHALL HAVE ANY VOTING, VETO, APPROVAL OR CONSENT RIGHTS. DESCRIPTION OF PERSONS, DECISIONS REQUIRING APPROVAL & TYPE OF VOTING RIGHTS FORM 990, PART VI, QUESTION 7B THE FOLLOWING ACTIONS BY THE ORGANIZATION WILL REQUIRE THE PRIOR WRITTEN CONSENT OF ALL OF THE MEMBERS: (A) MERGER OR CONSOLIDATION OF THE ORGANIZATION WITH ANY ENTITY (B) VOLUNTARY PETITION IN BANKRUPTCY, DISSOLUTION OR LIQUIDATION OF THE ORGANIZATION (C) ANY INTENTIONAL CHANGE IN THE TAX EXEMPTION STATUS OF THE ORGANIZATION (D) ANY CHANGE IN THE MEMBERSHIP OF THE ORGANIZATION, EXCEPT AS OTHERWISE PERMITTED BY THE LIMITED LIABILITY AGREEMENT.THE ORGANIZATION, EXCEPT AS OTHERWISE PERMITTED BY THE LIMITED LIABILITY AGREEMENT. DESCRIPTION OF COMMITTEES OF GOVERNING BODY FORM 990, PART VI, QUESTION 8B THERE WERE NO COMMITTEES OF THE GOVERNING BODY. DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, QUESTION 11B THE DETAILED REVIEW OF THE FORM 990 IS CONDUCTED BY MANAGEMENT FOLLOWING THE PREPARATION AND REVIEW OF THE RETURN BY THE ORGANIZATION'S PAID PREPARER. AN ELECTRONIC COPY OF THE FINAL FORM 990 IS EMAILED TO EACH BOARD MEMBER PRIOR TO FILING WITH THE IRS. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, QUESTION 12C PROCEDURES: 1. ACTUAL OR POTENTIAL CONFLICTS OF INTEREST MUST BE DISCLOSED BY THE INTERESTED PARTY TO THE APPROPRIATE GOVERNING BODY OR A COMMITTEE OF THE SAID ORGANIZATION BEING CONSIDERED BY THE GOVERNING BODY OR COMMITTEE OR IF AN INTERESTED PERSON BECOMES AWARE OF A POTENTIAL CONFLICT BEFORE THE MATTER IS UNDER CONSIDERATION BY THE GOVERNING BODY OR THE COMMITTEE, THEN THE INTERESTED PERSON MAY DISCLOSE THE POTENTIAL CONFLICT OF INTEREST TO THE ORGANIZATION'S APPROPRIATE MANAGEMENT PERSONNEL, CHIEF COMPLIANCE OFFICER, GENERAL COUNSEL OR THE AUDIT AND COMPLIANCE COMMITTEE OF THE GOVERNING BODY (OR IF NONE, THE CHAIRMAN OF THE BOARD) 2. AN INTERESTED PERSON MAY MAKE A PRESENTATION AND ANSWER QUESTIONS POSED AT THE GOVERNING BODY OR COMMITTEE MEETING, BUT AFTER THE PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POTENTIAL CONFLICT OF INTEREST. 3. THE CHAIRPERSON OF THE ORGANIZATION'S GOVERNING BODY OR COMMITTEE SHALL, IF HE/SHE DEEMS APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE THE POTENTIAL CONFLICT OF INTEREST AND ALTERNATIVES TO THE APPLICABLE TRANSACTION OR ARRANGEMENT OR OTHER RESOLUTION OF A POTENTIAL CONFLICT OF INTEREST. 4. AFTER EXERCISING DUE DILIGENCE, THE GOVERNING BODY OR COMMITTEE SHALL DETERMINE WHETHER THE ORGANIZATION CAN OBTAIN WITH REASONABLE EFFORTS A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. 5. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE UNDER CIRCUMSTANCES NOT PRODUCING A CONFLICT OF INTEREST, THE GOVERNING BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE CHC COMMUNITY CARE ORGANIZATION'S BEST INTEREST, FOR ITS OWN BENEFIT, AND WHETHER IT IS REASONABLE. THE GOVERNING BOARD OR COMMITTEE SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO OR CONTINUE THE TRANSACTION OR ARRANGEMENT. 6. EMPLOYEES AND OTHERS ENGAGED BY THE ORGANIZATION MUST SEEK GUIDANCE AND APPROVAL FROM APPROPRIATE MANAGEMENT PERSONNEL PRIOR TO PURSUING ANY BUSINESS OR PERSONAL ACTIVITY THAT MIGHT CONSTITUTE A CONFLICT OF INTEREST. 7. THE ORGANIZATION'S CHIEF COMPLIANCE OFFICER WORKING WITH THE CHIEF FINANCIAL OFFICER WILL BE RESPONSIBLE TO ENSURE THOSE CONDUCTING AUDITING AND MONITORING REVIEWS OF INTERNAL CONTROLS ARE FREE FROM ANY CONFLICTS OF INTEREST OR OTHER INFLUENCES THAT WOULD IMPAIR THEIR ABILITY TO OBJECTIVELY CARRY OUT THEIR WORK WITHOUT BIAS. 8. IF THE GOVERNING BOARD OR COMMITTEE OF THE ORGANIZATION HAS REASONABLE CAUSE TO BELIEVE A BOARD/COMMITTEE MEMBER OR EMPLOYEE HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, THE MEMBER OR EMPLOYEE WILL BE INFORMED OF THE BASIS FOR SUCH BELIEF AND AFFORDED AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. 9. IF AFTER HEARING A MEMBER'S OR EMPLOYEE'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, IT IS DETERMINED THAT THERE WAS A FAILURE TO DISCLOSE, THERE WILL BE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION, WHICH COULD INCLUDE, WITHOUT LIMITATION, TERMINATION OF THE PERSON'S MEMBERSHIP, EMPLOYMENT OR CONTRACT. RECORDS: MINUTES OF THE GOVERNING BOARD AND ALL COMMITTEES OF THE ORGANIZATIONS WITH BOARD DELEGATED POWERS SHALL CONTAIN: A. THE NAMES OF THE PERSONS WHO DISCLOSED OR OTHERWISE WERE FOUND TO HAVE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, THE NATURE OF THE INTEREST, ANY ACTION TAKEN TO DETERMINE WHETHER A CONFLICT OF INTEREST WAS OR IS PRESENT, AND THE GOVERNING BOARD'S OR COMMITTEE'S DECISION AS TO WHETHER A CONFLICT OF INTEREST IN FACT EXISTED OR EXISTS. B. THE NAMES OF THE PERSONS WHO WERE PRESENT FOR DISCUSSIONS AND VOTES RELATING TO THE TRANSACTION OR ARRANGEMENT, THE CONTENT OF THE DISCUSSION, INCLUDING ANY ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, AND A RECORD OF ANY VOTES TAKEN IN CONNECTION WITH THE PROCEEDINGS. C. RECORDS OF EMPLOYEE CONFLICT OF INTEREST WILL BE MAINTAINED ACCORDING TO THE COMPLIANCE PROGRAM RECORDS MANAGEMENT POLICY. ANNUAL STATEMENTS: ANNUALLY THE GOVERNING BOARD AND EMPLOYEES OF THE ORGANIZATION WILL SIGN A STATEMENT WHICH AFFIRMS EACH PERSON: A. HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, B. HAS READ AND UNDERSTANDS THE POLICY, C. HAS AGREED TO COMPLY WITH THE POLICY, AND D. UNDERSTANDS THE ORGANIZATION IS CHARITABLE AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY INACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. PERIODIC REVIEWS: TO ENSURE THE ORGANIZATION OPERATES IN A MANNER CONSISTENT WITH ITS CHARITABLE PURPOSES AND THAT IT DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS STATUS AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX, PERIODIC REVIEWS SHALL BE CONDUCTED. PERIODIC REVIEWS WILL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION AND THE RESULT OF ARM'S LENGTH BARGAINING. B. WHETHER ACQUISITIONS OF PHYSICIAN PRACTICE AND OTHER PROVIDER SERVICES RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT. C. WHETHER PARTNERSHIPS, JOINT VENTURES, AND ARRANGEMENTS WITH MANAGEMENT ORGANIZATIONS CONFORM TO THE ORGANIZATION'S WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT,IMPERMISSIBLE PRIVATE ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. PERIODIC REVIEWS: TO ENSURE THE ORGANIZATION OPERATES IN A MANNER CONSISTENT WITH ITS CHARITABLE PURPOSES AND THAT IT DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS STATUS AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX, PERIODIC REVIEWS SHALL BE CONDUCTED. PERIODIC REVIEWS WILL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION AND THE RESULT OF ARM'S LENGTH BARGAINING. B. WHETHER ACQUISITIONS OF PHYSICIAN PRACTICE AND OTHER PROVIDER SERVICES RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT. C. WHETHER PARTNERSHIPS, JOINT VENTURES, AND ARRANGEMENTS WITH MANAGEMENT ORGANIZATIONS CONFORM TO THE ORGANIZATION'S WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR IN AN EXCESS BENEFIT TRANSACTION. D. WHETHER AGREEMENTS TO PROVIDE HEALTH CARE AND AGREEMENTS WITH OTHER HEALTH CARE PROVIDERS, EMPLOYEES, AND THIRD-PARTY PAYORS FURTHER THE ORGANIZATION'S CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT OR IMPERMISSIBLE PRIVATE BENEFIT. PROCESS FOR DETERMING COMPENSATION FORM 990, PART VI, QUESTIONS 15A & 15B THE ORGANIZATION FOLLOWS THE COMPENSATION POLICY OF ITS SOLE VOTING MEMBER, COMMUNITY LTACH LLC WHICH FOLLOWS THE POLICY OF COMMUNITY HOSPITAL CORPORATION (CHC). CHC ENGAGED SULLIVAN COTTER TO CONDUCT COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITIES AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THE ORGANIZATION FOLLOWED THE PROCESS FOR THE YEAR ENDED 6/30/18 FOR ITS OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES AND OTHER MANAGEMENT OFFICIALS. THIS PROCESS IS PERFORMED EACH YEAR PRIOR TO THE ANNUAL EMPLOYEE EVALUATION PROCESS, WHICH ENDS ON JULY 1ST OF EACH THIS PROCESS IS PERFORMED EACH YEAR PRIOR TO THE ANNUAL EMPLOYEE EVALUATION PROCESS, WHICH ENDS ON JULY 1ST OF EACH YEAR. PROCESS FOR MAKING DOCUMENTS AVAILABLE TO THE PUBLIC FORM 990, PART VI, QUESTION 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE AT ITS BUSINESS OFFICE UPON REQUEST. Change in oversight or selection process FORM 990, PART XII, QUESTION 2C THE AUDIT COMMITTEE OF COMMUNITY HOSPITAL CORPORATION, WHICH IS THE PARENT ORGANIZATION, IS RESPONSIBLE FOR OVERSEEING THE EXTERNAL AUDIT OF THE CONSOLIDATED FINANCIALS. BAPTIST HOSPITALS OF SOUTHEAST TEXAS PO BOX 1591 BEAUMONT TX 77704 741303720 HOSPITAL TX 501(c)(3) 3 SWCH INC false BAPTIST PHYSICIAN NETWORK 3080 COLLEGE ST BEAUMONT TX 77701 760453250 PRIMARY CARE TX 501(c)(3) 3 BHSET false SOUTHWEST COMMUNITY HOSPITAL INC 7800 N DALLAS PKWY STE 200 PLANO TX 75024 752725353 SUPPORT ORG TX 501(c)(3) 12C-III-FI CHC false YOAKUM COMMUNITY HOSPITAL 1200 CARL RAMERT DR YOAKUM TX 77995 742323822 HOSPITAL TX 501(c)(3) 3 CHC false CONTINUECARE HOSPITAL OF TYLER 800 E DAWSON ST TYLER TX 75701 200991990 HOSPITAL DE 501(c)(3) 3 CCC true CONTINUECARE HOSPITAL OF SOUTHEAST TEXAS 7800 N DALLAS PKWY STE 200 PLANO TX 75024 201150480 HOSPITAL TX 501(c)(3) 3 CCC true ST MARK'S MEDICAL CENTER ONE ST MARKS PLACE LA GRANGE TX 78945 743019849 HOSPITAL TX 501(c)(3) 3 CHC false CONTINUECARE HOSPITAL OF MIDLAND 4214 ANDREWS HIGHWAY MIDLAND TX 79703 463053684 HOSPITAL DE 501(c)(3) 3 CCC true CONTINUECARE HOSP AT HENDRICK MED CTR 1900 PINE ST 5TH FL ABILENE TX 79601 463607347 HOSPITAL DE 501(c)(3) 3 CCC false CONTINUECARE HOSPITAL AT BAKERSFIELD 7800 N DALLAS PKWY STE 200 PLANO TX 75024 465236524 HOSPITAL DE 501(c)(3) 3 CCC false CONTINUECARE HOSP BPTST HLT MADISONVILLE 900 HOSPITAL DRIVE 4TH FL MADISONVILLE KY 42431 465033192 HOSPITAL DE 501(c)(3) 3 CCC false CONTINUECARE HOSP AT BAPTIST HLT PADUCAH 2501 KENTUCKY AVENUE 5TH FL PADUCAH KY 42003 465032999 HOSPITAL DE 501(c)(3) 3 CCC false CONTINUECARE HOSPITAL AT BAPTIST HEALTH 1 TRILLIUM WAY CORBIN KY 40701 200925675 HOSPITAL KY 501(c)(3) 3 CCC false CRAWLEY MEMORIAL HOSPITAL 706 KINGS STREET KINGS MOUNTAIN NC 28086 560691100 HOSPITAL NC 501(c)(3) 3 CAR CC false CAROLINAS COMMUNITY CARE LLC 7800 N DALLAS PKWY STE 200 PLANO TX 75024 465590355 SUPPORT ORG DE 501(c)(3) 12B-II CHC false JELLICO COMMUNITY HOSPITAL INC 188 HOSPITAL LANE JELLICO TN 37762 620924706 HOSPITAL TN 501(c)(3) 3 CHC false CONTINUECARE HOSPITAL AT ODESSA INC 500 W 4TH STREET ODESSA TX 79761 473539943 HOSPITAL DE 501(c)(3) 3 CCC true COMMUNITY HOSPITAL CORPORATION 7800 N DALLAS PKWY STE 200 PLANO TX 75024 752638469 SUPPORT ORG TX 501(C)(3) 12C-III-FI NA false YOAKUM COMMUNITY HOSPITAL FOUNDATION 1200 CARL RAMERT DRIVE YOAKUM TX 77995 453609830 SUPPORT ORG TX 501(C)(3) 12A-1 YCH false BHSETX FOUNDATION 810 HOSPITAL DRIVE 235 BEAUMONT TX 77701 611557670 SUPPORT ORG TX 501(C)(3) 7 BHSET false MERCY RESTORATIVE CARE HOSPITAL INC 10648 PARK ROAD CHARLOTTE NC 28210 753054855 HOSPITAL NC 501(c)(3) 3 CAR CC false RURAL AND COMMUNITY HEALTHCARE COLLABORA 7800 N DALLAS PKWY STE 200 PLANO TX 75024 814337246 SUPPORT ORG TX 501(c)(3) 7 CHC false CONTINUECARE HOSPITAL AT PALMETTO HEALTH 7800 N DALLAS PKWY STE 200 PLANO TX 75024 813048423 HOSPITAL TX 501(c)(3) 3 CCC true CRITICAL ACCESS HOSPCOALITION 120 G ST NW STE 1000 Wa DC 20005 821088069 HOSP. COALITION DE NA COMMUNITY HEALTH ASSURANCE SPC LTD POB 69GT GRAND CAYMAN CJ CAPTIVE INSURANCE CJ CHC C Corp false COMMUNITY HOSPITAL CONSULTING INC 7800 N Dallas Parkway Suite Plano TX 75024 204710183 MGMT CONSULTING TX CHC C Corp false false false false false false false false false false false false false false false true true true true true CONTINUECARE HOSPITAL OF TYLER o 345222 Cost CONTINUECARE HOSPITAL OF TYLER q 756485 Cost CONTINUECARE HOSPITAL OF TYLER s 699000 Cost CONTINUECARE HOSPITAL OF MIDLAND o 247487 Cost CONTINUECARE HOSPITAL OF MIDLAND q 553197 Cost CONTINUECARE HOSPITAL AT BAPTIST HEALTH o 288087 Cost CONTINUECARE HOSPITAL AT BAPTIST HEALTH q 570432 Cost CONTINUECARE HOSPITAL AT HENDRICK MED CENTER o 362756 Cost CONTINUECARE HOSPITAL AT HENDRICK MED CENTER q 572277 Cost CONTINUECARE HOSPITAL AT BAPTIST HLTH MADISON o 259367 Cost CONTINUECARE HOSPITAL AT BAPTIST HLTH MADISON q 547658 Cost CONTINUECARE HOSPITAL AT BAPTIST HLTH PADUCAH o 315959 Cost CONTINUECARE HOSPITAL AT BAPTIST HLTH PADUCAH q 530427 Cost CRAWLEY MEMORIAL HOSPITAL o 309693 Cost CRAWLEY MEMORIAL HOSPITAL q 1215982 Cost CONTINUECARE HOSPITAL AT ODESSA o 249218 Cost CONTINUECARE HOSPITAL AT ODESSA q 599554 Cost MERCY RESTORATIVE CARE o 314096 Cost MERCY RESTORATIVE CARE q 615642 Cost CONTINUECARE HOSPITAL AT PALMETTO HEALTH BAPT o 301641 Cost CONTINUECARE HOSPITAL AT PALMETTO HEALTH BAPT q 810911 Cost COMMUNITY HOSPITAL CORPORATION p 1546828 Cost COMMUNITY HOSPITAL CORPORATION r 699000 Cost