2019-05-15T08:34:41-05:00 2018-06-30 271235638 MCM CPAS & ADVISORS LLP 462 S FOURTH ST SUITE 2600 LOUISVILLE KY 402023445 990 2017-07-01 452696517 ARH MARY BRECKENRIDGE HEALTH SERVICE INC ARHM 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 DANNY HARRIS TREASURER 8592262440 2019-05-10 1 BOB MORELAND CPA P00418596 5027491900 2019-05-10 69.135.99.226 2019-05-10 08:51:25 ED P 08A7767D339909E48BBC6A9B1C6A0EA56EDBCF12 DB6CDEF414225833A1C1F93DB3E0669B0B82E7DE 2017 2019-02-21 02:37:17Z JOSEPH GROSSMAN 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 36919388 0 X WWW.ARH.ORG X 2011 KY TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL THE PEOPLE IN LESLIE COUNTY, KENTUCKY AND SURROUNDING COUNTIES. 4 1 423 0 0 0 20576 1390 41880938 35963285 625109 776023 438573 178690 42965196 36919388 0 0 0 0 17521581 19429076 0 0 0 21879216 16174814 39400797 35603890 3564399 1315498 21519417 26546079 9299157 12239525 12220260 14306554 X TO PROVIDE LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. 0 0 32543136 35977754 MARY BRECKINRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. LOCATED IN AN AREA WITH A LARGE UNINSURED OR UNDERINSURED POPULATION, MARY BRECKINRIDGE ARH PROVIDED NEARLY $390K IN UNCOMPENSATED CARE IN THE PAST YEAR ALONE. IN EFFORTS TO PROMOTE THE BENEFITS OF PREVENTATIVE CARE TO GOOD HEALTH, THE HOSPITAL PROVIDED $26,341 IN COMMUNITY BENEFITS THROUGH 154 COMMUNITY EVENTS THAT WERE ATTENDED BY NEARLY 1,359 PEOPLE LAST YEAR. IN ADDITION, THE HOSPITAL REACHED OUT TO LESLIE COUNTY RESIDENTS THROUGH ITS ANNUAL COMMUNITY APPRECIATION PICNIC WHERE HEALTH INFORMATION AND SCREENINGS WERE PROVIDED AND FREE LUNCH WAS SERVED TO MORE THAN 800 COMMUNITY MEMBERS. ADDITIONALLY, 249 SCHOOL CHILDREN WERE BUSSED IN TO THE EVENT AND GIVEN A BAG FILLED WITH HEALTHY SNACKS. THE HOSPITAL ALSO PROMOTED PHYSICAL FITNESS TO AREA GRADE SCHOOL CHILDREN DURING A FITNESS FAIR WHERE THE CHILDREN PARTICIPATED IN A SERIES OF PHYSICAL ACTIVITIES. STUDENTS WERE MEASURED ON UPPER AND LOWER BODY STRENGTH, ENDURANCE, FLEXIBILITY AND COORDINATION. ACTIVITIES INCLUDED SIT AND REACH, CURL-UPS, PUSH-UPS, GRIP STRENGTH AND WALKING OR RUNNING A MILE. HEIGHT AND WEIGHT FOR EACH STUDENT WERE TAKEN SO THE BODY MASS INDEX (BMI) COULD BE CALCULATED. ONCE ALL DATA WAS COMPILED, THE ARH TEAM SHARED IT WITH THE SCHOOL ADMINISTRATORS AND DISCUSSED RECOMMENDATIONS FOR FOLLOW-UP HEALTH EVALUATIONS FOR THOSE STUDENTS WHO MAY NEED TO SEE A HEALTHCARE PROVIDER. THE PRETTY IN PINK TEA AND CRUMPETS EVENT IN OCTOBER HAD AROUND 75 LADIES FROM THE COMMUNITY IN ATTENDANCE. THE HOSPITAL ALSO HOSTED ITS ANNUAL CHILDREN'S CHRISTMAS PARTY IN THE HOSPITAL LOBBY. AS PART OF THE EVENT, EMPLOYEES DONATE ENOUGH MONEY TO PURCHASE GIFTS FOR EVERY CHILD WHO COMES TO THE CELEBRATION. IN THE PAST YEAR, AROUND 250 CHILDREN FROM WITHIN THE LESLIE COUNTY COMMUNITY ATTENDED THE EVENT AND IN ADDITION TO RECEIVING A WRAPPED GIFT, THEY WERE ALSO GIVEN A STOCKING FILLED WITH FRUIT AND OTHER TREATS. MARY BRECKINRIDGE ARH HOSPITAL ALSO HELD AN ANNUAL EASTER EGG HUNT AT THE HYDEN CITY PARK WITH MORE THAN 400 CHILDREN IN ATTENDANCE, RANGING FROM 0-9 YEARS OLD. ARH PROVIDED 5,000 EGGS FOR THIS HUNT AND BAGS FOR ALL THE CHILDREN. PROVIDED NARCAN ADMINISTRATION TRAINING TO 60 PEOPLE ON THE USE. WORKING WITH THE COMMUNITY PARTNERS FOR A NEEDLE EXCHANGE PROGRAM. RAISED MONEY FOR THE LESLIE COUNTY RELAY FOR LIFE THROUGH BAKE SALES , SOUP COOK OFFS, AND SILENT AUCTION. 32543136 1 0 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 40 0 1 423 1 0 0 0 0 0 0 0 0 0 0 X 4 1 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X DANNY HARRIS 8592262440 2260 EXECUTIVE DRIVE LEXINGTON KY 40505 JOSEPH GROSSMAN PRESIDENT/CEO 5.00 35.00 X X 0 773920 75212 BOBBY RICK KING SECRETARY 5.00 35.00 X X 0 290238 58924 DANNY HARRIS TREASURER 5.00 35.00 X X 0 303576 38601 RAYMOND COX TRUSTEE 3.00 3.00 X 0 0 0 ELLEN WRIGHT VP AND CHIEF NURSING OFFIC 40.00 X 0 175718 36362 HOLLIE P HARRIS VP CORPORATE STRATEGY 40.00 X 0 254475 62643 PAUL V MILES CMO/ VP MEDICAL SERVICES 40.00 X 0 312728 70195 MARIA BRAMAN COO/VP OPERATIONS 5.00 35.00 X 0 326539 26520 ROY VARGHESE MD FAMILY PHYSICIAN 40.00 X 338138 0 7661 NAGABHUSHANAM BOLLAVARAM PULMONARY 40.00 X 534989 0 27572 MARJORIE M HAAS PEDIATRICIAN 40.00 X 212938 0 8300 LATHA CHANDRASHEKAR FAMILY PHYSICIAN 40.00 X 203007 0 46236 BHOODEV P SHARMA FAMILY PHYSICIAN 40.00 X 210074 0 0 1499146 2437194 458226 5 0 1 0 SOUTHERN MEDICAL PARTNERS 277 ROY CAMPBELL DR HAZARD KY 41701 PHYSICIAN SERVICES 1050256 SIEMENS 300 NEW JERSEY AVENUE SUITE 1000 WASHINGTON DC 20001 IMAGING SERVICES 735593 HYDEN EMERGENCY PHYSICIANS LLC PO BOX 82368 LAFAYETTE LA 75059 PHYSICIAN SERVICES 731232 COMPUTER PROGRAMS & SYSTEMS 6600 WALL STREET MOBILE AL 36695 TECHNOLOGY SERVICES 637993 TRIANGLE ANESTHESIA GROUP 425 LEWIS HARGETT CIRCLE LEXINGTON KY 40503 PHYSICIAN SERVICES 449182 7 1390 1390 PATIENT REVENUE 621110 35963285 35963285 35963285 585082 585082 9216 0 9216 9216 9216 190941 0 190941 190941 190941 CAFETERIA INCOME 722210 103327 103327 MISCELLANEOUS 900099 51678 51678 CONTRACT ACCOUNTS 900099 14469 14469 169474 36919388 35977754 0 940244 X 12882197 12877679 4518 642189 642189 5013907 5013907 890783 890783 3035 3035 5455740 5412006 43734 397210 232005 165205 1918229 1918229 19766 19766 19311 19311 10108 10108 884738 883444 1294 355197 355197 SHARED EXPENSES 3250601 948839 2301762 SUPPLIES 3230681 3230681 EQUIP RENTAL AND MAINTE 833159 833159 PROVIDER TAX 541206 541206 -744167 -744167 35603890 32543136 3060754 0 5001 526520 4916144 1578563 808565 729806 498391 638404 12673422 4495031 7517962 8178391 7773354 14894395 21519417 26546079 875412 1221794 39007 54708 8384738 10963023 9299157 12239525 X 12220260 14306554 12220260 14306554 21519417 26546079 1315498 770796 0 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 3034 3034 0 PART II-B, LINE 1: MARY BRECKENRIDGE IS A MEMBER OF THE KENTUCKY HOSPITAL ASSOCIATION. 15.7% OF DUES PAID GO TO LOBBYING EXPENSES. 201300 201300 4940928 922937 4017991 5082882 3423804 1659078 2448312 148290 2300022 8178391 DUE FROM RELATED ORGANIZATION 14780370 SECURITY DEPOSITS 71214 MISC RECEIVABLES 42811 14894395 MEDICARE AND MEDICAID ESTIMATED SETTLEMENTS 6808241 REFUNDS DUE PATIENTS 469843 SELF INSURANCE RESERVE 3092680 CAPITAL LEASE OBLIGATIONS 592259 10963023 X PART X, LINE 2: THE CORPORATION IS A NOT-FOR-PROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE IRC. HOWEVER, THE CORPORATION IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. GAAP REQUIRES THE CORPORATION TO EVALUATE ITS TAX POSITIONS AND RECOGNIZE A TAX LIABILITY (OR ASSET) IF IT HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS). THE CORPORATION HAS EVALUATED ITS TAX POSITIONS AND HAS CONCLUDED THAT THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY (OR ASSET) OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE CORPORATION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. 1 1 X 1 X 1 X 100.000000000000 1 1 0 1 1 793557 955 792602 0.02230 11143929 5196886 5947043 0.16700 11937486 5197841 6739645 0.18930 48 3323 42996 42996 0.00120 146 129 20382 20382 0.00060 370 2400 15107 15107 0.00040 564 5852 78485 78485 0.00220 564 5852 12015971 5197841 6818130 0.19150 1 45 220 220 0.00000 6 39 300 300 0.00000 7 84 520 520 0.00000 1 84502 930519 10773057 13940819 -3167762 X 1 1 2 1 ARH MARY BRECKINRIDGE HEALTH SERVICES INC 130 KATE IRELAND DRIVE HYDEN KY 41749 X X X X A 2 BARBOURVILLE ARH HOSPITAL 80 HOSPITAL DR BARBOURVILLE KY 40906 X X X X A FACILITY REPORTING GROUP - A 0 0 1 X X X X X X X X 16 1 0 0 1 X WWW.ARH.ORG/CHNA X 1 13 1 WWW.ARH.ORG/CHNA 0 1 X 100.000000000000 200.000000000000 X 1 1 X X X X 1 X WWW.ARH.ORG X WWW.ARH.ORG X WWW.ARH.ORG X X X X X 1 X X 0 1 X 0 0 PART V, SECTION B FACILITY REPORTING GROUP A FACILITY REPORTING GROUP A CONSISTS OF: - FACILITY 1: ARH MARY BRECKINRIDGE HEALTH SERVICES, INC, - FACILITY 2: BARBOURVILLE ARH HOSPITAL FACILITY REPORTING GROUP - A PART V, SECTION B, LINE 5: A COMMUNITY STEERING COMMITTEE PROVIDED GUIDANCE OVER THE COMMUNITY HEALTH NEEDS ASSESSMENT PROCESS IN EACH OF ARH'S COMMUNITIES. THIS STEERING COMMITTEE WAS MADE UP OF REPRESENTATIVES FROM VARIOUS ORGANIZATIONS AND AGENCIES THROUGHOUT EACH HOSPITAL'S SERVICE AREA. IN PARTICULAR, SOME OF THE COMMITTEE MEMBERS REPRESENTED THE LOCAL HEALTH DEPARTMENT, SENIOR SERVICES, SCHOOL SYSTEM, SOCIAL SERVICE ORGANIZATIONS, AND EMERGENCY MANAGEMENT. THESE INDIVIDUALS ASSISTED WITH DISTRIBUTING SURVEYS AND ORGANIZING FOCUS GROUPS THROUGHOUT THE COMMUNITY ENSURING THAT VARIED COMMUNITY INTERESTS AND EXPERTISE WERE REPRESENTED. SPECIAL ATTENTION WAS PAID TO ENSURING THAT REPRESENTATION FROM THE PUBLIC HEALTH SECTOR WAS INCLUDED IN THIS ASSESSMENT PROCESS AND THAT THE SENIOR CITIZEN AND UNDERSERVED POPULATION WERE REPRESENTED. A COMPLETE LIST OF THE COMMUNITY STEERING COMMITTEE MEMBERS FOR EACH ARH FACILITY IS INCLUDED IN EACH ASSESSMENT'S FINAL REPORT. FACILITY REPORTING GROUP - A PART V, SECTION B, LINE 11: THE MOST RECENT COMMUNITY HEALTH NEEDS ASSESSMENT WAS COMPLETED BY ARH IN 2015-2016. THIS OFFERED A GOOD OPPORTUNITY TO EXAMINE PROGRESS MADE SINCE THE PREVIOUS CHNA PROCESS WHILE OUTLINING NEW STRATEGIES TO GUIDE ACTIVITIES, OUTREACH, AND AREAS OF IMPROVEMENT FOR RECENTLY IDENTIFIED NEEDS. ALL OF THE NEEDS IDENTIFIED DURING THIS PROCESS WERE REVIEWED AND PRIORITIZED BY EACH FACILITY. SOME NEEDS MAY NOT HAVE BEEN SELECTED AS A HIGH PRIORITY SINCE ANOTHER COMMUNITY AGENCY MAY ALREADY BE ADDRESSING THAT NEED AND REFERRALS JUST NEED TO BE MADE TO THAT PARTNER AGENCY. MEASURES WERE TAKEN TO ENSURE THAT EACH IDENTIFIED NEED WAS EITHER ADDRESSED TO SOME DEGREE BY ARH OR REFERRED TO OTHER APPROPRIATE COMMUNITY ENTITIES. BELOW ARE THE MAIN SYSTEM-WIDE NEEDS IDENTIFIED DURING ARH'S MOST RECENT CHNA. THESE AREAS ARE THE MAIN FOCUS OF THE HOSPITALS' ACTIVITIES. PREVENTIVE SERVICES AND EDUCATIONAL PROGRAMSTHE RESULTS FROM THE MOST RECENT CHNA IDENTIFIED THE NEED FOR ARH'S FACILITIES TO FOCUS ON PROVIDING MORE PREVENTIVE AND EDUCATIONAL SERVICES. FOR SOME COMMUNITIES, THIS ALSO MEANT FURTHER PUBLICIZING THE PREVENTIVE AND EDUCATIONAL SERVICES THAT THEY WERE ALREADY OFFERING TO FURTHER INCREASE COMMUNITY PARTNERSHIPS AND AWARENESS. CHNA RESPONDENTS ALSO REQUESTED INCREASED EDUCATIONAL TOPICS AND MORE VARIETY OF LOCATIONS FOR THE EVENTS. WITH THESE RESULTS IN MIND, SOME COMMUNITIES ARE FOCUSING ON OFFERING MORE COMMUNITY HEALTH EDUCATION AND SCREENING EVENTS WHILE OTHERS OFFERED MORE FOCUSED EVENTS BASED ON THEIR CHNA RESULTS TARGETING SPECIFIC DISEASES OR SEGMENTS OF THE COMMUNITY.ACCESS TO CAREAN ADDITIONAL AREA IDENTIFIED DURING THE MOST RECENT CHNA ACROSS THE SYSTEM WAS THE NEED TO INCREASE ACCESS TO CARE. RESPONDENTS WANTED INCREASED ACCESS THROUGH THE AVAILABILITY OF AFTER/EXTENDED HOURS SERVICES, ADDITIONAL SPECIALTY COVERAGE (ESPECIALLY ENT AND DERMATOLOGY), AND THROUGH THE POSSIBLE ADDITION OF TELEMEDICINE CAPABILITIES. SINCE RECEIVING THOSE CHNA RESULTS, MANY OF ARH'S FACILITIES HAVE ADDED SOME FORM OF AFTER-HOURS COVERAGE OR HAVE FURTHER PROMOTED AFTER HOURS SERVICES THAT HAD PREVIOUSLY BEEN UNDERUTILIZED. VARIOUS PHYSICIAN SPECIALTIES AND HOSPITAL SERVICES HAVE ALSO BEEN EVALUATED AND POSSIBLY ADDED ACROSS THE SYSTEM DUE TO THE IDENTIFIED NEED THROUGH THE CHNA PROCESS. TELEMEDICINE UNITS ARE ALSO BEING ADDED TO SOME OF ARH'S CLINIC LOCATIONS TO HOPEFULLY ENHANCE ACCESS TO NEEDED SPECIALTIES. COMMUNICATIONONE OTHER NEED THAT WAS ALSO APPARENT WITH THE MOST RECENT CHNA RESULTS WAS THE NEED TO IMPROVE SOME LEVEL OF COMMUNICATIONS. THIS NEED RANGED FROM ENSURING THAT THERE WAS FASTER COMMUNICATION REGARDING TEST RESULTS, IMPROVING COMMUNICATION TO THE PUBLIC ON ARH SERVICES AND ACTIVITIES VIA SOCIAL MEDIA, AND PROVIDING MORE PATIENT NAVIGATORS/ADVOCATES TO ASSIST PATIENTS WITH NEGOTIATING THE HEALTHCARE PROCESS. THESE VARIOUS IDENTIFIED COMMUNICATION ISSUES HAVE BEEN TACKLED INDIVIDUALLY BY EACH FACILITY AS NEEDED. ALL ARH FACILITIES NOW HAVE A SOCIAL MEDIA PRESENCE AND ARE TRYING TO UTILIZE THAT FORUM TO FURTHER PROMOTE ACTIVITIES AND EVENTS. FACILITIES ARE ALSO EXPLORING HOW TO ADD PATIENT NAVIGATION SERVICES/ADVOCATES TO ASSIST PATIENTS AS NEEDED. 4 1 - HYDEN ARH CLINIC 130 KATE IRELAND DRIVE HYDEN KY 41749 CLINIC 2 - MB ARH HOME HEALTH AGENCY 166 KATE IRELAND DRIVE HYDEN KY 41749 HOME HEALTH 3 - BIG CREEK ARH CLINIC PO BOX 8 BIG CREEK KY 40914 CLINIC 4 - BEECHFORK ARH CLINIC 805 MIDDLE FORK ROAD ASHER KY 40803 CLINIC PART I, LINE 3C: THE DISCOUNTS ARE BASED ON A SLIDING FEE SCHEDULE STARTING AT 100% OF FPG QUALIFYING FOR FREE CARE, RANGING UP TO UNLIMITED INCOME LEVELS FOR A 40% DISCOUNT ON ALL UNINSURED CARE PROVIDED. PART I, LINE 7: THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2. PART II, COMMUNITY BUILDING ACTIVITIES: MARY BRECKENRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUDING COUNTIES WITH AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. THE RURAL SERVICE AREA COVERED BY ARH IN EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA COVERS MORE THAN 20 COUNTIES.THIS REGION IS FRAUGHT WITH SOME OF THE HIGHEST CHRONIC HEALTH PREVALENCE RATES IN THE COUNTRY FOR LUNG CANCER, DIABETES, AND HEART DISEASE. TO COMPOUND THESE PROBLEMS, MOST OF ARH'S FACILITIES ARE LOCATED IN AREAS THAT ARE AT LEAST PARTIALLY CLASSIFIED AS MEDICALLY UNDERSERVED AREAS AND HEALTH PROFESSIONAL SHORTAGE AREAS BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. IN ADDITION, THE AREAS SERVED BY ARH ALSO FACE UNEMPLOYMENT RATES THAT ARE SUBSTANTIALLY HIGHER THAN STATE AND NATIONAL AVERAGES AND A HIGHER NUMBER OF CITIZENS IN THESE AREAS RANK BELOW THE NATIONAL POVERTY LEVEL. FOR MORE THAN 60 YEARS, ARH HAS CARRIED A HEAVY LOAD IN CARING FOR THIS POPULATION. IN FISCAL YEAR 2017, ARH PROVIDED CLOSE TO $55 MILLION IN UNCOMPENSATED CARE AND DURING THAT SAME FISCAL YEAR APPROXIMATELY 70 PERCENT OF ARH'S INPATIENTS WERE MEDICARE OR MEDICAID BENEFICIARIES. PART III, LINE 2: COSTING METHODOLOGY: TO DETERMINE THE BAD DEBT EXPENSE ON LINE 2, THE BADDEBT EXPENSE PER THE FINANCIAL STATEMENTS, WHICH CONSISTS OF GROSS CHARGESLESS DISCOUNTS, WAS CONVERTED TO COST USING THE GLOBAL COST-TO-CHARGERATIO DEVELOPED IN WORKSHEET 2. PATIENT DISCOUNTS ARE NOT REFLECTED INBAD DEBT. ANY PAYMENTS ON AN ACCOUNT AFTER IT IS WRITTEN OFF TO BAD DEBTRESULT IN A REVERSAL OF THE ENTIRE ACCOUNT OUT OF BAD DEBT, REINSTATEMENTOF THE PATIENT ACCOUNT RECEIVABLE, AND ANY NEGOTIATED DIFFERENCE IN THEFULL AMOUNT OF THE ACCOUNT AND THE PAYMENT MADE IS WRITTEN OFF TOCONTRACTUAL ALLOWANCE. PATIENTS WHO MAY QUALIFY FOR CHARITY CARE BUT DONOT APPLY CANNOT BE ESTIMATES. ALL PATIENTS ARE EDUCATED ABOUT AND GIVENEVERY OPPORTUNITY TO APPLY FOR CHARITY CARE AND, THEREFORE, ARH HAS NOINFORMATION FOR THOSE WHO CHOOSE NOT TO APPLY. PART III, LINE 3: MANAGEMENT CONTINUALLY MONITORS AND ADJUSTS THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS ASSOCIATED WITH CREDIT RISK.THE CORPORATION'S ABILITY TO COLLECT OUTSTANDING RECEIVABLES IS CRITICALTO ITS RESULTS OF OPERATIONS AND CASH FLOWS. TO PROVIDE FOR ACCOUNTSRECEIVABLE THAT COULD BECOME UNCOLLECTIBLE IN THE FUTURE, THE CORPORATIONESTABLISHES AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS TO REDUCE THE CARRYINGVALUE OF SUCH RECEIVABLES TO THEIR ESTIMATED NET REALIZABLE VALUE. THEPRIMARY UNCERTAINTY OF SUCH ALLOWANCES LIES WITH UNINSURED PATIENTRECEIVABLES AND DEDUCTIBLES, CO-PAYMENTS OR OTHER AMOUNTS DUE FROMINDIVIDUAL PATIENTS.THE CORPORATION HAS AN ESTABLISHED PROCESS TO DETERMINE THE ADEQUACY OFTHE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS THAT RELIES ON A NUMBER OFANALYTICAL TOOLS AND BENCHMARKS TO ARRIVE AT A REASONABLE ALLOWANCE. NOSINGLE STATISTIC OR MEASUREMENT DETERMINES THE ADEQUACY OF THE ALLOWANCEFOR UNCOLLECTIBLE ACCOUNTS. SOME OF THE ANALYTICAL TOOLS THAT THECORPORATION UTILIZES INCLUDE, BUT ARE NOT LIMITED TO, HISTORICAL CASHCOLLECTION EXPERIENCE BY PAYOR, REVENUE TRENDS BY PAYOR CLASSIFICATION ANDAGED ACCOUNTS FROM DATE OF SERVICE BY PAYOR. ACCOUNTS RECEIVABLE AREWRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITHTHE CORPORATION'S POLICIES. PART III, LINE 4: THE CORPORATION HAS AN ESTABLISHED PROCESS TO DETERMINE THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS THAT RELIES ON A NUMBER OF ANALYTICAL TOOLS AND BENCHMARKS TO ARRIVE AT A REASONABLE ALLOWANCE. NO SINGLE STATISTIC OR MEASUREMENT DETERMINES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. SOME OF THE ANALYTICAL TOOLS THAT THE CORPORATION UTILIZES INCLUDE, BUT ARE NOT LIMITED TO, HISTORICAL CASH COLLECTION EXPERIENCE BY PAYOR, REVENUE TRENDS BY PAYOR CLASSIFICATION AND AGED ACCOUNTS FROM DATE OF SERVICE BY PAYOR. ACCOUNTS RECEIVABLE ARE WRITTEN OFF AFTER COLLECTION EFFORTS HAVE BEEN FOLLOWED IN ACCORDANCE WITH THE CORPORATION'S POLICIES. PART III, LINE 9B: THE PROVISIONS IN THE WRITTEN DEBT COLLECTION POLICY ARE THAT CHARITY AND FINANCIAL ASSISTANCE APPLICATIONS ARE VALID FOR 6 MONTHS. AFTER THAT TIME, THE PATIENT MUST REAPPLY AND PRESENT CURRENT FINANCIAL DOCUMENTS AS NECESSARY. PART VI, LINE 2: IN ADDITION TO THE COMMUNITY HEALTH NEEDS ASSESSMENT THAT IS CONDUCTED BY ARH EVERY THREE YEARS AND REPORTED ELSEWHERE IN THIS DOCUMENT, ARH ALSO CONTINUALLY ASSESSES COMMUNITY NEEDS IN OTHER FORMS AS WELL. THE NEEDS OF THE COMMUNITIES THAT ARH SERVES THROUGHOUT EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA ARE ASSESSED BY FOLLOWING EMERGING MEDICAL PRACTICE NEEDS AS A WHOLE ACROSS THE NATION AND SPECIFICALLY IN THE APPALACHIAN REGION. THE HEALTH NEEDS ARE EXAMINED BY LOOKING AT HEALTH STATISTICS AND DISEASE PREVALENCE COMPARED TO SERVICE/PHYSICIAN AVAILABILITY. PATIENT AND COMMUNITY SURVEYS ARE ALSO REGULARLY CONDUCTED TO ASSESS CONSUMER PERCEIVED NEEDS.LOCAL ADVISORY COUNCILS (LACS) ALSO EXIST IN EACH OF ARH'S HOSPITAL COMMUNITIES. THE COUNCILS ARE COMPRISED OF LOCAL CITIZENS WHO VOLUNTEER TO HELP ARH IMPROVE THE HEALTH OF ITS COMMUNITIES THROUGH REGULAR MEETINGS THAT DISCUSS COMMUNITY HEALTH ISSUES AND HELP ARH IDENTIFY AND ADDRESS THEM. MEMBERS ALSO ADVISE ARH ABOUT IMPROVEMENTS NEEDED AND COMMUNITY PERCEPTIONS OF ARH FACILITIES AND THESE INDIVIDUALS SERVE AS EXCELLENT AMBASSADORS FOR ARH AND ITS SERVICES. THESE INDIVIDUALS HAVE DEMONSTRATED THEIR LEADERSHIP IN LOCAL CIVIC AFFAIRS AND REFLECT A CROSS SECTION OF THE COMMUNITY. QUARTERLY, ONE REPRESENTATIVE FROM EACH OF THESE LACS MEETS TO DISCUSS COMMON ISSUES ACROSS THE SYSTEM AT A REGIONAL ADVISORY COUNCIL MEETING. FROM THIS GROUP OF REPRESENTATIVES, ONE MEMBER IS SELECTED TO ALSO SERVE ON THE HEALTH SYSTEM'S BOARD OF TRUSTEES. PART VI, LINE 3: APPALACHIAN REGIONAL HEALTHCAREFINANCIAL ASSISTANCE ELIGIBILITYUNDER ARHS FINANCIAL ASSISTANCE PROGRAM AND POLICY EACH PATIENT WITHOUT MEDICAL COVERAGE FOR RENDERED SERVICES IS OFFERED A 40% DISCOUNT OF GROSS CHARGES AT TIME OF SERVICE. IF THE PATIENT EXTENDS PAYMENT AT TIME OF SERVICE THEY ARE GIVEN ANOTHER 10% DISCOUNT, MAKING THEIR LIABILITY 50% OF GROSS CHARGES. ALL OF THESE DISCOUNTS ARE APPLIED AT TIME OF CHARGE AND BILLED AFTER THE DISCOUNT IS TAKEN. IF SAID PATIENT IS UNABLE TO MEET THE FINANCIAL OBLIGATIONS FOR SERVICE, THEY ARE EDUCATED AND SCREENED FOR POTENTIAL FEDERAL AND/OR STATE ASSISTANCE PROGRAMS. BY DOING THIS THE PATIENT IS REVIEWED AND EDUCATED BY ON-SITE FINANCIAL COUNSELORS AND/OR ELIGIBILITY AGENCY TO GET THE INDIVIDUAL PLACED A PROGRAM. BASED ON INCOME AND FAMILY STATUS THE PATIENT IS SCREENED IN CONJUNCTION WITH THE FEDERAL AND STATE POVERTY GUIDELINES. AT THIS TIME, ALL APPLICATIONS ARE COMPLETED WITH THE ASSISTANCE OF ARH PERSONNEL AND SUBMITTED FOR APPROVAL. IN THE EVENT AN AGENCY REQUIRES THE PATIENT/GUARANTOR TO APPLY IN PERSON THE INDIVIDUAL IS ASKED TO MAKE AN APPOINTMENT WITH THAT AGENCY AND FILE THEIR COMPLETED DOCUMENTS. IF THE RESPONSIBLE PARTY IS NOT ELIGIBLE FOR FEDERAL OR STATE ASSISTANCE, THEY ARE ADDITIONALLY SCREENED BY ARH FOR ELIGIBILITY INTO OUR INTERNAL SLIDING FEE SCHEDULE CHARITY PROGRAM FOR ADDITIONAL DISCOUNTS UP TO 100% OF GROSS CHARGES. IF THE PATIENT IS HELD RESPONSIBLE ADDITIONAL EFFORTS TO ASSIST THE PATIENT ARE OFFERED BY OFFERING REASONABLE PAYMENT PLANS AND DEFERRED PAYMENTS. IN THE EVENT THE PATIENT/GUARANTOR DOES NOT MAKE A REASONABLE EFFORT TO COMPLETE NECESSARY DOCUMENTATION TO APPLY OR BECOME ELIGIBLE FOR A FINANCIAL ASSISTANCE PROGRAM THEY ARE THEN STILL GIVEN THE INITIAL 40% DISCOUNT AND MOVED THROUGH THE NORMAL COLLECTION PROCESS. PART VI, LINE 4: THE RURAL SERVICE AREA COVERED BY ARH IN EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA COVERS MORE THAN 20 COUNTIES.THIS REGION IS FRAUGHT WITH SOME OF THE HIGHEST CHRONIC HEALTH PREVALENCE RATES IN THE COUNTRY FOR LUNG CANCER, DIABETES, AND HEART DISEASE. TO COMPOUND THESE PROBLEMS, MOST OF ARH'S FACILITIES ARE LOCATED IN AREAS THAT ARE AT LEAST PARTIALLY CLASSIFIED AS MEDICALLY UNDERSERVED AREAS AND HEALTH PROFESSIONAL SHORTAGE AREAS BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES. IN ADDITION, THE AREAS SERVED BY ARH ALSO FACE UNEMPLOYMENT RATES THAT ARE SUBSTANTIALLY HIGHER THAN STATE AND NATIONAL AVERAGES AND A HIGHER NUMBER OF CITIZENS IN THESE AREAS RANK BELOW THE NATIONAL POVERTY LEVEL. FOR MORE THAN 60 YEARS, ARH HAS CARRIED A HEAVY LOAD IN CARING FOR THIS POPULATION. IN FISCAL YEAR 2017, ARH PROVIDED CLOSE TO $55 MILLION IN UNCOMPENSATED CARE AND DURING THAT SAME FISCAL YEAR APPROXIMATELY 70 PERCENT OF ARH'S INPATIENTS WERE MEDICARE OR MEDICAID BENEFICIARIES. PART VI, LINE 5: MARY BRECKINRIDGE ARH HOSPITAL PROVIDES LESLIE AND SURROUNDING COUNTIES AN ABUNDANCE OF HEALTHCARE AND COMMUNITY ORIENTED SERVICES THROUGH ITS HOSPITAL, CLINICS AND HOME HEALTH OPERATIONS AS WELL AS COMMUNITY OUTREACH SERVICES. TODAY, APPALACHIAN REGIONAL HEALTHCARE CONTINUES ITS MISSION IN THE MOUNTAINS BY OFFERING RESIDENTS OF EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA A LOCAL OPTION FOR QUALITY HEALTHCARE SERVICES. ARH HOLDS STEADFAST TO THE MISSION TO IMPROVE HEALTH AND PROMOTE WELL-BEING OF ALL THE PEOPLE IN CENTRAL APPALACHIA IN PARTNERSHIP WITH OUR COMMUNITIES.ARH HAS EVOLVED INTO AN INTEGRATED HEALTHCARE DELIVERY SYSTEM SERVING MORE THAN 370,000 RESIDENTS AND EMPLOYING NEARLY 5,000 PEOPLE ACROSS EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA WITH HOSPITALS, CLINICS, HOME HEALTH AGENCIES, PHARMACIES AND HOME DURABLE MEDICAL EQUIPMENT STORES. IN FISCAL YEAR 2014, ARH'S 10 HOSPITALS RANGE IN SIZE FROM CRITICAL-ACCESS FACILITIES TO THE SYSTEM'S FLAGSHIP REGIONAL MEDICAL CENTER WITH 308-LICENSED BEDS IN HAZARD, KENTUCKY.WHILE PROVIDING THIS REGION WITH QUALITY HEALTHCARE, ARH REINVESTS ANY EARNINGS BACK INTO OPERATIONS TO FURTHER THE SYSTEMS EFFORTS IN IMPROVING AND ACCESSING HEALTHCARE SERVICES FOR THE REGION.CREATED TO ADDRESS THE UNMET HEALTH NEEDS OF AN UNDERSERVED REGION, ARH LEADERSHIP AND STAFF MEMBERS REALIZE THAT SERVING THIS POPULATION IS ABOUT MORE THAN JUST ADDRESSING THE HEALTH NEEDS, IT IS ALSO ABOUT PREVENTING CHRONIC DISEASES. THROUGH PARTNERSHIPS WITH AREA SCHOOLS, BUSINESSES, ORGANIZATIONS AND HEALTH DEPARTMENTS, ARH IS ONE OF THE PRIMARY SOURCES FOR HEALTH EDUCATION AND DISEASE PREVENTION IN EACH COMMUNITY AND PARTNERS WITH ALL OF THESE VARIOUS COMMUNITY ENTITIES TO FURTHER THESE EFFORTS.ARH SPONSORS MANY COMMUNITY-WIDE WELLNESS EVENTS THROUGHOUT ITS COMMUNITIES, INCLUDING HEALTH FAIRS AND VARIOUS SUPPORT GROUPS. EACH YEAR, ARH PROVIDES FREE OR DISCOUNTED HEALTH SCREENINGS FOR COLORECTAL, BREAST AND PROSTATE CANCERS AS WELL AS ROUTINE BLOOD PRESSURE, CHOLESTEROL, GLUCOSE AND BODY MASS INDEX (BMI) SCREENINGS IN EFFORTS TO PREVENT THE ONSET OF ILLNESSES OR CATCH MEDICAL CONDITIONS BEFORE THEY BECOME LIFE THREATENING. ARH ALSO ACTIVELY UTILIZES ALL FORMS OF MEDIA TO PROMOTE WELLNESS AND EDUCATE THE PUBLIC ON THE SIGNS AND SYMPTOMS OF MANY COMMON HEALTH CONDITIONS. THIS INCLUDES HEALTH EDUCATION NEWSLETTERS THAT ARE MAILED DIRECTLY TO RESIDENTS' HOMES. PART VI, LINE 6: DURING FISCAL YEAR 2017, ARH'S SERVICES WERE MAINLY ORGANIZED AROUND ITS 11 HOSPITAL SPECIFIC COMMUNITIES ACROSS EASTERN KENTUCKY AND SOUTHERN WEST VIRGINIA. IN EACH OF THESE COMMUNITIES A HOSPITAL EXISTS ALONG WITH A COMPLIMENTARY ARRANGEMENT OF OTHER ARH SERVICES WHICH MAY INCLUDE CLINICS, HOME HEALTH AGENCIES, PHARMACIES, AND/OR HOME DURABLE MEDICAL EQUIPMENT STORES.AT THE SYSTEM-LEVEL VARIOUS HEALTH PROMOTION ACTIVITIES ARE ORGANIZED AND PROMOTED ACROSS THE FACILITIES, INCLUDING THE INTRODUCTION OF NEW SERVICE LINES AND NEW TECHNOLOGY. HOWEVER, IN EACH OF ARH'S 11 COMMUNITIES, VARIOUS COMMUNITY OUTREACH PROGRAMS ARE ALSO UNDERWAY AND AGGRESSIVELY ADDRESSING THE HEALTH CONCERNS OF THAT PARTICULAR AREA WHILE STRONG COMMUNITY COLLABORATION IS BEING DEVELOPED. FROM SENIOR CITIZEN WELLNESS PROGRAMS TO PATIENT ASSISTANCE VIA A CANCER NAVIGATOR, ARH'S COMMUNITIES ARE REAPING THE BENEFITS OF SUCCESSFUL COMMUNITY OUTREACH. X X X X 0 1 0 0 0 0 1 0 0 JOSEPH GROSSMAN PRESIDENT/CEO 0 617875 0 152700 0 3345 0 47000 0 28212 0 849132 0 0 BOBBY RICK KING SECRETARY 0 244980 0 45258 0 0 0 41320 0 17604 0 349162 0 0 DANNY HARRIS TREASURER 0 256240 0 47336 0 0 0 18116 0 20485 0 342177 0 0 ELLEN WRIGHT VP AND CHIEF NURSING OFFIC 0 147832 0 27886 0 0 0 16739 0 19623 0 212080 0 0 HOLLIE P HARRIS VP CORPORATE STRATEGY 0 214549 0 39926 0 0 0 33151 0 29492 0 317118 0 0 PAUL V MILES CMO/ VP MEDICAL SERVICES 0 263790 0 48938 0 0 0 41983 0 28212 0 382923 0 0 MARIA BRAMAN COO/VP OPERATIONS 0 275499 0 51040 0 0 0 0 0 26520 0 353059 0 0 ROY VARGHESE MD FAMILY PHYSICIAN 336538 0 1600 0 0 0 7661 0 0 0 345799 0 0 0 NAGABHUSHANAM BOLLAVARAM PULMONARY 534989 0 0 0 0 0 18000 0 9572 0 562561 0 0 0 MARJORIE M HAAS PEDIATRICIAN 212938 0 0 0 0 0 8300 0 0 0 221238 0 0 0 LATHA CHANDRASHEKAR FAMILY PHYSICIAN 203007 0 0 0 0 0 17498 0 28738 0 249243 0 0 0 BHOODEV P SHARMA FAMILY PHYSICIAN 210074 0 0 0 0 0 0 0 0 0 210074 0 0 0 PART I, LINE 3 THE RELATED ORGANIZATION USES THE FOLLOWING METHODS TO DETERMINE COMPENSATION FOR ITS CEO: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - COMPENSATION SURVEY OR STUDY - APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 4B ARH PROVIDES SENIOR EXECUTIVES A CONTRIBUTION OF SEVEN (7) PERCENT OF PAY (SUBJECT TO DOLLAR CAP) INTO THE TOP HAT 457(B) RETIREMENT PLAN, IF THE EXECUTIVE SIGNS A NON-COMPETE AGREEMENT. THE CONTRIBUTION AND EARNINGS ARE TAX DEFERRED UNTIL ASSETS ARE DISTRIBUTED OR WITHDRAWN. THE MAXIMUM CONTRIBUTION IS SUBJECT TO THE IRS COMPENSATION CAP, WHICH ALLOWS A CONTRIBUTION OF UP TO $18,000 IN 2017. THIS CONTRIBUTION TOTAL IS AN AGGREGATE TOTAL REGARDLESS OF WHETHER ARH OR THE EXECUTIVE MAKES THE CONTRIBUTION. CONTRIBUTION TO THE 457(B) DOES NOT AFFECT THE AMOUNTS THE EXECUTIVE MIGHT CONTRIBUTE TO THE 403(B) THRIFT PLAN. THE EXECUTIVE MAY CONTRIBUTE HIS/HER OWN MONEY TO THE PLAN PRE-TAX, TO THE EXTENT THE IRS CAPS ALLOW ROOM AFTER ARH'S CONTRIBUTION. CATCH UP CONTRIBUTIONS ARE ALLOWED WITHIN IRS LIMITS IN THE LAST THREE YEARS PRIOR TO RETIREMENT (AND, IF 7% OF PAY EXCEEDS THE REGULAR DOLLAR CAP, ARH MAY USE THE BALANCE OF THE 7% TO FUND UP THE CATCH UP LIMIT). BENEFITS ARE SUBJECT TO SOCIAL SECURITY AND MEDICARE TAXES AS THEY ACCRUE. THE FUNDS ARE INVESTED AS DIRECTED BY THE EXECUTIVE, BUT THE ACCOUNT REMAINS A GENERAL ASSET OF ARH. IF ARH BECOMES INSOLVENT, THE EXECUTIVE WILL BE AN UNSECURED CREDITOR AND WILL HAVE NO PREFERRED CLAIM TO ANY ASSETS. TO RECEIVE THE ARH CREDIT TO THE 457(B) PLAN, THE EXECUTIVE MUST SIGN A NON-COMPETE, CONFIDENTIALITY, ETC. AGREEMENT RESTRICTING WORK FOR A COMPETING ORGANIZATION FOR TWO (2) YEARS POST TERMINATION. IF THE FUNDING OF THE 457(B), INCLUDING ANY CATCH UP PROVISIONS, IS LESS THAN 7% OF BASE PAY, THEN ARH WILL CONTRIBUTE THE REMAINDER TO A 457(F) PLAN. INDIVIDUALS PARTICIPATING IN THE 457(F) PLAN AND THE RESPECTIVE EMPLOYER CONTRIBUTIONS FOR EACH INCLUDE: JOE GROSSMAN $18,000. PART I, LINE 6 THE COMPENSATION AND CONTRACTS COMMITTEE OF THE ARH BOARD OF TRUSTEES ADOPTED A SHORT-TERM INCENTIVE COMPENSATION PROGRAM FOR EXECUTIVES IN SEPTEMBER 2002. THE PROGRAM ESTABLISHED INCENTIVES FOR ACHIEVING SYSTEM AND COMMUNITY OBJECTIVES FOR EXECUTIVE LEADERSHIP BY INTEGRATING THE PERFORMANCE MANAGEMENT AND EXECUTIVE COMPENSATION SYSTEMS. THE INCENTIVE THRESHOLDS HAVE BEEN MODIFIED ACROSS TIME TO REFLECT INCREASED PERFORMANCE EXPECTATIONS AS IDENTIFIED IN THE SYSTEM'S STRATEGIC, BUDGET AND OPERATIONS PLAN. THE INCENTIVE AWARDS PROVIDE ADDITIONAL CASH COMPENSATION AS A PERCENTAGE OF BASE SALARY IN RELATION TO LEVELS OF ACHIEVEMENT. THESE ACHIEVEMENT LEVELS RANGE FROM THRESHOLD (LOWEST), TO TARGET (10% ABOVE THE THRESHOLD), AND MAXIMUM (HIGHEST AND 20% ABOVE THE THRESHOLD) AND VARY BASED UPON EXECUTIVE LEVEL. THE EXECUTIVE INCENTIVE PLAN WILL BE ADMINISTERED IN ACCORDANCE WITH THE FOLLOWING GUIDELINES: A OBJECTIVES AND TARGETS ARE SET THROUGH THE STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT PROCESSES. B. SYSTEM MARGIN AND CASH BUDGET THRESHOLDS MUST BE MET BEFORE INDIVIDUAL AWARDS WILL BE CONSIDERED. C. AWARDS WILL BE CONSIDERED AS HAVING BEEN EARNED UPON AFFIRMATION BASED ON AUDITED FINANCIAL RESULTS AND ACTUAL OPERATING PERFORMANCE. D. THE PRESIDENT AND CEO WILL RECOMMEND PAYMENT OF INDIVIDUAL AWARDS, IF ANY, TO THE COMPENSATION AND CONTRACTS COMMITTEE FOR CONSIDERATION. E. THE COMPENSATION AND CONTRACTS COMMITTEE MAY ACCEPT, REJECT, OR MODIFY THE PRESIDENT AND CEO'S RECOMMENDATION. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION'S SOLE MEMBER IS APPALACHIAN REGIONAL HEALTHCARE, INC. FORM 990, PART VI, SECTION A, LINE 7A APPALACHIAN REGIONAL HEALTHCARE, INC. APPOINTS THE BOARD OF DIRECTORS OF THE ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION A, LINE 7B APPALACHIAN REGIONAL HEALTHCARE, INC. HAS THE POWER TO APPROVE AMENDMENTS TO THE ARTICLES OF INCORPORATION OF ARH MARY BRECKINRIDGE. FORM 990, PART VI, SECTION B, LINE 11B APPALACHIAN REGIONAL HEALTHCARE'S (ARH) DIRECTOR OF ACCOUNTING AND CFO BOTH REVIEW THE 990 PRIOR TO THE ARH BOARD REVIEW. THE ARH BOARD THEN REVIEWS THE 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ARH MARY BRECKINRIDGE FOLLOWS ARH'S CONFLICT OF INTEREST POLICY AND ONGOING MONITORING. ARH'S MONITORING PROCESS IS: A SECURE WEBSITE IS PROVIDED TO OFFICERS AND TRUSTEES FOR ANNUAL DISCLOSURES, AND IS MONITORED REGULARLY BY THE VICE PRESIDENT OF LEGAL AFFAIRS AND THE CORPORATE COMPLIANCE OFFICERS. POTENTIAL CONFLICTS OF INTEREST ARE REPORTED DIRECTLY TO THE CHAIRMAN OF THE BOARD. TRUSTEES IDENTIFIED AS HAVING A CONFLICT OF INTEREST IN A PARTICULAR MATTER BEFORE THE BOARD MAY NOT PARTICIPATE IN THE BOARD'S DECISION-MAKING PROCESS. FAILURE TO DISCLOSE IS SUBJECT TO DISCIPLINE, INCLUDING CENSURE, AND IN SOME CASES, REMOVAL FROM THE BOARD. EMPLOYEE OFFICERS ARE SUBJECT TO DISCIPLINE IN ACCORDANCE WITH THE CORPORATION'S HUMAN RESOURCE POLICIES AND THE ARH CODE OF BUSINESS AND PROFESSIONAL CONDUCT. FORM 990, PART VI, SECTION B, LINE 15 THE RELATED ORGANIZATION, APPALACHIAN REGIONAL HEALTHCARE, INC.'S (ARH) BOARD SETS COMPENSATION LEVELS FOR PRESIDENT/CEO AND OTHER ARH EXECUTIVES AND KEY EMPLOYEES. THE BOARD CONTRACTS WITH A CONSULTING FIRM TO REVIEW THE MARKET FOR THE POSITIONS ON THE SYSTEM OPERATING COUNCIL WHO MAKES RECOMMENDATIONS ON THE SALARY RANGES AND ASSESSES THE COMPETITIVENESS OF THE SALARIES. WITH THAT INFORMATION, THE COMPENSATION AND CONTRACTS COMMITTEE SET THE RANGES AND THE PRESIDENT'S COMPENSATION. THE BOARD REVIEWS AND FINALIZES COMPENSATION AMOUNTS. THE CONSULTING FIRM FOLLOWS UP WITH A LETTER ATTESTING TO THE REASONABLENESS OF COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 WHILE ARH MARY BRECKINRIDGE HAS NOT YET ADOPTED A POLICY OF SHARING ITS FINANCIAL STATEMENTS WITH THE PUBLIC, IT DOES PROVIDE FINANCIAL INFORMATION THROUGH THE FORM 990 AND ALSO PROVIDES CERTAIN FINANCIAL INFORMATION IN OTHER PUBLIC DOCUMENTS, INCLUDING ITS PERIODIC REPORTS TO THE COMMUNITIES IT SERVES. FORM 990, PART IX, LINE 11G PHYSICIAN SERVICES: PROGRAM SERVICE EXPENSES 4,055,009. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,055,009. OUTSIDE SERVICES: PROGRAM SERVICE EXPENSES 1,356,997. MANAGEMENT AND GENERAL EXPENSES 43,734. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,400,731. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR. PRIOR TO THE START OF THE AUDIT, THE VICE PRESIDENT OF FINANCE MEETS WITH THE INDEPENDENT AUDITORS. AT THE CONCLUSION OF THE AUDIT, THE FINANCE COMMITTEE MEETS WITH THE INDEPENDENT AUDITORS FOR PRESENTATION OF THE FINANCIAL STATEMENTS. THE INDEPENDENT AUDITORS ARE SELECTED WHEN DEEM NECESSARY BY MANAGEMENT THROUGH A FORMAL "REQUEST FOR PROPOSAL" (RFP) PROCESS. THE ARH FOUNDATION FOR HEALTHIER COMMUNITIES INC 100 AIRPORT GARDENS RD HAZARD KY 41701 204840007 CARRYING OUT FUNDRAISING AND CHARITABLE ACTIVITIES FOR ARH KY 501(C)(3) LINE 7 APPALACHIAN REGIONAL HEALTHCARE INC 0 APPALACHIAN REGIONAL HEALTHCARE INC 2285 EXECUTIVE DR LEXINGTON KY 40505 520795508 HEALTH CARE KY 501(C)(3) LINE 3 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0