2019-05-10T06:44:48-05:00 2018-06-30 481026809 Wendling Noe Nelson & Johnson LLC 534 S Kansas Ave Suite 1500 Topeka KS 666033491 990 2017-07-01 480799105 McPherson Hospital Inc MCPH 6202412250 1000 Hospital Drive McPherson KS 674602326 Teresa Gehring CEO 6202412250 2019-05-01 1 Heather R Eichem P01515553 7852334226 2019-05-01 98.172.114.81 2019-05-01 09:26:04 CD P 9F7EBC9589AE17E2573C2859A0CADE418873F4F6 638EAE9CC524C49A0C8FE3B7257167BE3F03B25F 2017 2019-02-21 02:37:17Z Teresa Gehring 1000 Hospital Drive McPherson KS 674602326 30983483 0 X http://www.mcphersonhospital.org/ X 1972 KS Provision of acute hospital care to patients regardless of ability to pay. 12 9 411 132 0 0 3103156 3804308 23711804 26742691 183854 56437 430774 380047 27429588 30983483 23000 24000 0 0 17267073 16881614 0 0 0 16663471 13845555 33953544 30751169 -6523956 232314 17615156 20076365 6721141 8807004 10894015 11269361 To meet our community's need by providing superior health care and exceptional service for each person, every time. 0 0 26571184 24000 26827403 Provision of inpatient and outpatient hospital services. 26571184 1 1 0 1 0 0 0 0 0 1 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 15 0 1 411 1 0 0 0 0 0 0 0 0 0 0 X 12 9 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X George Kimbro CFO 6202412250 1000 Hospital Drive McPherson KS 674602326 Lenny Favara Trustee 2.00 X 0 0 0 Bill Glazner Trustee 2.00 X 0 0 0 Craig Harms Secretary 2.00 X X 0 0 0 Sheila Gorman Physician/Trustee as of 1/2018 40.00 X 228797 0 25916 Tim Karstetter Trustee 2.00 X 0 0 0 Chet Lang Trustee 2.00 X 0 0 0 Joan Reichenberger Vice Chair 2.00 X X 0 0 0 Paul Taliaferro Chairperson 2.00 X X 0 0 0 Brent Wall Trustee 2.00 X 0 0 0 Michael Bloustine Trustee/Physician 40.00 X 234195 0 13701 Tom Pruitt Trustee as of 1/2018 2.00 X 0 0 0 Andrea Herrera Trustee 2.00 X 54000 0 0 Brian Billings Trustee thru 12/31/2017 2.00 X 0 0 0 Teresa Gehring CEO 40.00 X 142792 0 21229 George Kimbro CFO 40.00 X 92750 0 0 John Worden COO 40.00 X 151588 0 24985 David Buller Physician 40.00 X 258929 0 24281 Clayton Fetsch Physician 40.00 X 330541 0 28238 Bret Heskett Physician 40.00 X 347940 0 23051 Dan Lichty Physician 40.00 X 293275 0 29988 Edward Stanton Physician 40.00 X 242356 0 124 2377163 0 191513 17 0 1 0 EmCare Bank of America 7032 Collection Dri Chicago IL 60693 ER coverage 2009267 RehabVisions 11623 Arbor St Omaha NE 68144 Therapy services 579752 CPSI Inc PO Box 850309 Mobile AL 36685 Computer support and billing services 488126 Via Christi Health 8200 E Thorn Wichita KS 67226 Contract labor and services 448590 TRIMEDX LLC PO Box 636129 Cincinnati OH 452636129 Equipment maintenance 239520 10 984825 2713800 105683 3804308 Net patient service revenue 900099 26742691 26742691 26742691 25115 25115 35574 0 35574 35574 35574 31322 0 31322 31322 31322 Nonpatient meals 722210 188540 188540 Auxiliary 900099 60242 60242 Fitness center 713940 42301 42301 53390 53390 344473 30983483 26827403 0 351772 X 24000 24000 1150152 534784 615368 13606912 12305836 1301076 63940 57984 5956 1072350 978443 93907 988260 874309 113951 -562471 -421853 -140618 30363 30363 6632806 5556139 1076667 47116 5420 41696 226319 128803 97516 249348 187011 62337 508705 409508 99197 32226 26044 6182 13541 8385 5156 128970 103821 25149 1200929 966748 234181 188390 86172 102218 Medical supplies 1743932 1743932 Pharmacy supplies 1408216 1408216 Equipment rental & main 1188414 1037146 151268 Dietary food & supplies 275004 266834 8170 533747 283502 250245 30751169 26571184 4179985 0 61711 37805 862580 632221 2905373 4994461 493710 477223 51925 181574 33827458 26324791 7298768 7502667 5941089 6250414 17615156 20076365 4226384 5102379 2388880 3704625 105877 0 6721141 8807004 X 5496509 5738634 4002243 4134464 1395263 1396263 10894015 11269361 17615156 20076365 X 232314 143032 X X 0 1 X 1 0 X 0 0 0 0 0 1 6421 0 0 0 6421 0 Part II-B, Line 1: McPherson Hospital, Inc., is a member of the Kansas Hospital Association and the American Hospital Association. Both of these organizations engage in lobbying activities for hospital and general health care interests as part of the services provided to members. 3896531 1176511 129338 630986 16509 4554885 3191328 779637 214695 269581 19548 3896531 2451101 1040269 -19295 267877 12870 3191328 1190121 1262657 80038 81715 2451101 1065492 46956 162884 -73602 1190121 0.00000 0.27930 0.72070 1 1 1 26697 26697 16796267 12814669 3981598 12971401 12143471 827930 4033093 1366651 2666442 7502667 Other receivables 522588 Beneficial interest in net assets of the Foundation 5230600 Intangible assets 144000 Estimated third-party payor settlements 353226 6250414 X 31126515 143032 143032 30983483 0 30983483 30751169 0 30751169 0 30751169 Part V, Line 4: Donor restricted and board designated funds for special projects and operating purposes. Part X, Line 2: Management is not aware of any uncertainties in income tax positions. Part XI, Line 2d - Other Adjustments: Change in beneficial interest in net assets of the Foundation 143,032. 1 1 1 X 1 X 1 1 0 0 623562 236791 386771 0.01260 2872544 2171494 701050 0.02280 3496106 2408285 1087821 0.03540 10536 10536 0.00030 24000 24000 0.00080 7214054 4512343 2701711 0.08790 20724 20724 0.00070 7269314 4512343 2756971 0.08970 10765420 6920628 3844792 0.12510 1 939511 5842338 7195316 -1352978 X 1 1 1 1 McPherson Hospital Inc 1000 Hospital Drive McPherson KS 67460 X X X McPherson Hospital Inc 1 0 0 1 X X X X X X X 15 1 1 1 1 X http://www.mcphersonhospital.org X http://www.lindsborgcommunityhospital.org X 1 15 1 http://www.mcphersonhospital.org 0 1 X 200.000000000000 200.000000000000 X X X X 1 1 X X X 1 X http://www.mcphersonhospital.org X http://www.mcphersonhospital.org/patients-visitors/billing-financial-assist X http://www.mcphersonhospital.org X X X X X X X 1 X 0 X X X 1 X 0 0 McPherson Hospital, Inc. Part V, Section B, Line 5: The assessment was achieved through the co-leadership of the director of the McPherson County Health Department along with input from other county hospitals, Lindsborg Community Hospital and Mercy Hospital in Moundridge. The McPherson County CHNA process included gathering opinions from the public and area sources through the use of a survey and quantitative data from secondary sources. A survey instrument comprised of 33 questions was developed by the leadership of the participating hospitals and the public health department. The electronic survey was made available throughout the county through various means including media, social media, hospital websites, and was publicized through said sources as well as newspaper and radio. A focus group was formed to provide input regarding the results of the survey. Included in the focus group were individuals representing health care, law enforcement, family advocacy, indigent populations, mental health, public health, civic leadership, education, religion, and senior services, fitness, and Chamber of Commerce, among others. A total of 322 survey responses were received with each community in the county represented in the respondent group. McPherson Hospital, Inc. Part V, Section B, Line 6a: Lindsborg Community Hospital in Lindsborg and Mercy Hospital in Moundridge McPherson Hospital, Inc. Part V, Section B, Line 6b: McPherson County Health Department McPherson Hospital, Inc. Part V, Section B, Line 11: The annual update below pertains to the CHNA and implementation strategy completed for the 2015 tax year (fiscal year ended 06/30/2016), which is the second annual update for the three-year cycle. Activities with the Kansas State University Extension Office: The hospital had hoped to partner with the Kansas State University Extension Office in a couple of initiatives in 2018, but as the lead sponsoring organization, the Kansas State University Extension office did not include McPherson Hospital in their plans to help promote and administer the Walk Kansas nor the Dining with Diabetes events. The hospital continues to reach out and offer financial and personnel resources as available to assist with these types of events with this local organization. Lunch and Learn Events: Due to limited financial resources and a restructuring of the hospital's management agreement with Via Christi Health, these events were not able to be sponsored this year. They continue to be on the strategy for future years as resources allow. Speaker's Bureau: The hospital did have staff who presented lectures in the community on various health topics, but due to the audiences who invited the lectures, the topics identified in the CHNA were not appropriate for those groups. The hospital will continue to make staff available as feasible for public information sharing as needed and appropriate. Radio show: A radio show on the local radio station airs once monthly, hosted by a former hospital general surgeon and the Chief Operating Officer, who is also director of the hospital pharmacy. A variety of health topics are discussed that include nutrition and weight control, heart health, diabetes, and general health concerns. Guests are sometimes utilized to bring special emphasis and expertise to the topic. The information-only half-hour show receives positive feedback from listenership; however, actual number of listeners is unknown as the radio station does not track such statistics. The hospital spends nearly $2,000 annually to air this educational program.Theraband Classes: These classes are held twice weekly and are targeted for senior citizens at no charge, reaching approximately ten or more individuals each week, aged 60 and over. The classes are led by staff from the hospital's fitness center. Promote healthy meals: Due to limited financial and personnel resources in the fiscal year, this initiative will be reconsidered for the next implementation strategy. Disease Awareness: National health awareness dates are communicated through the hospital-produced newsletter which is available to patients, families, guests and staff. The hospital is also a platinum sponsor ($1,000 annually) for the local Relay for Life event each year for the American Cancer Society, and a financial supporter ($250 annually) of a local independent group whose focus is on providing assistance to women and children who are fighting cancer and creating cancer awareness and education. The hospital also participates in events associated with these groups to distribute information and address questions. These initiatives provide resources and leadership to raise awareness and encourage healthy lifestyles. Expert speaker on relevant topic: Because of unique fiscal year financial and operational challenges, this initiative will be considered in the future. Local college student initiative: Due to prior-mentioned limited resources, the hospital was not able to develop this strategy. The hospital did begin discussion through one of the local colleges on an initiative to assist with support of a new educational offering for the college. As this partnership develops, it is hoped that additional initiatives such as healthy lifestyles education can develop. The death rate due to drug poisoning in McPherson County is trending upward to 13.7 deaths per 100,000 population as of April 2017. This validates the hospital's commitment to creating strategies with area organizations to help bring this trend in a positive direction. Though mental health issues were not specifically addressed as a strategy in 2016, the hospital has since begun initiatives to increase awareness of this issue. The hospital has engaged in a task force along with mental health providers, law enforcement and other key partners in the community to develop strategies for cooperative care of patients and addressing their unique needs as patients. Meeting quarterly, this task force is working expand their scope in addressing broader mental health issues in the community in the coming years. They are targeting events in the public to build education and awareness and generate discussion as a community.Likely due to increased awareness of factors impacting weight gain and overall health, the percent of adults who are obese in McPherson County is trending downward since 2015, according to the Kansas Department of Health and Environment. The latest data from 2017 shows this percentage down to 24.5 from 32.3 in 2015. Though the highest Kansas counties for percentage of Medicare beneficiaries who were treated for cancer have values greater than 7.7%, the Centers for Medicare and Medicaid Services shows McPherson County trending downward to 8.5% after a reported high of 10% in 2009. McPherson Hospital, Inc. Part V, Section B, Line 16j: We assist applicants in filling out the form. 3 1 - Family Practice Associates 1010 Hospital Drive McPherson KS 67460 Physician clinic 2 - McPherson Medical & Surgical Associates 1000 Hospital Drive McPherson KS 67460 Physician clinic, family & internal medicine, surgery and hospitalists 3 - McPherson Urgent Care Clinic 823 N Main Street McPherson KS 67460 Urgent care clinic Part I, Line 7g: Subsidized health services community benefit expenses include $7,214,054 of expenses attributable to a physician clinic that has net operating losses. Part III, Line 4: See Note 3A (page 7) of the audited financial statements regarding the allowance for uncollectible accounts. Part III, Line 8: Amounts were obtained from the cost report filed with Medicare for the period ending June 30, 2018. The total amount of shortfall between Medicare revenue received and relating allowable costs is considered community benefit. Part III, Line 9b: Patients who have qualified for financial assistance are considered qualified for six months. Updated information must be provided for any subsequent account balances. Patients who have qualified for partial financial assistance are to make payment arrangements for any remaining balance according to the policies that apply to other patients. Part III, Line 3: McPherson Hospital, Inc. is unable to determine the amount of bad debt expense attributable to patients eligible under its charity care policy for the year covered by this return. Suggested methods for estimation were either not in place or proved to be unreliable. For example, the number of financial assistance applications distributed but not returned was not tracked. Using demographic data to estimate an amount did not provide reasonable results. Rather than provide an estimate that cannot be substantiated, McPherson Hospital Inc. has chosen to report zero dollars as bad debt expense attributable to charity care patients. Part III, Line 2: The Hospital's bad debt at cost was determined by applying an overall ratio of cost to charges. Part VI, Line 2: McPherson Hospital, Inc. does not have a formal community needs assessment process, with the exception of the process utilized for the CHNA. Part VI, Line 3: All self-pay patients are screened by a contractor for eligibility under federal, state, or local government programs. Notice of the Hospital's financial assistance program is posted in patient registration areas and on the Hospital's website. The availability of financial assistance is also communicated to patients with the first billing statement and at any time during the collection process if an inability to pay is expressed by the patient/guarantor. Part VI, Line 4: McPherson Hospital, Inc.'s primary service area is McPherson, Kansas, a rural community of approximately 13,100. According to 2018 census information, the per capita income for McPherson was $30,236. The percent of individuals below poverty level was 8.4. For the year ending June 30, 2018, 12 percent of the Hospital's inpatient admissions were Medicaid recipients and 2 percent were uninsured. Larger hospitals in Hutchinson, Salina, and Newton also provide services to the residents of McPherson. The distances between these facilities and McPherson Hospital, Inc. are approximately 23, 29, and 28 miles respectively. There are no federally-designated medically underserved areas or populations in McPherson. Part VI, Line 5: McPherson Hospital, Inc.'s governing body is comprised of individuals who reside in the primary service area. All Board members, with the exception of the CEO, are not employed by the Hospital. Annually, all trustees sign a conflict of interest statement and disclose any potential conflicts of interest. With limited exceptions for hospital-based services, the Hospital extends medical staff privileges to all qualified physicians in the community. Surplus funds are used by the Hospital to update facilities and equipment, recruit needed physicians and staff, and otherwise improve patient care. 1 Scholarship awards for local students pursuing education in health care industry. 23 23000 Part I, Line 2 Scholarship checks are not provided to students until verification is received from the school that the student has begun classes. X X X 0 0 0 0 0 0 0 0 0 Sheila Gorman Physician/Trustee as of 1/2018 193653 0 35144 0 0 0 2971 0 22945 0 254713 0 0 0 Michael Bloustine Trustee/Physician 234195 0 0 0 0 0 4221 0 9480 0 247896 0 0 0 Teresa Gehring CEO 136446 0 6346 0 0 0 1774 0 19455 0 164021 0 0 0 John Worden COO 151588 0 0 0 0 0 2215 0 22770 0 176573 0 0 0 David Buller Physician 220244 0 38685 0 0 0 4482 0 19799 0 283210 0 0 0 Clayton Fetsch Physician 330541 0 0 0 0 0 4933 0 23305 0 358779 0 0 0 Bret Heskett Physician 332253 0 15687 0 0 0 0 0 23051 0 370991 0 0 0 Dan Lichty Physician 210414 0 82861 0 0 0 10000 0 19988 0 323263 0 0 0 Edward Stanton Physician 240969 0 1387 0 0 0 0 0 124 0 242480 0 0 0 Form 990, Part VI, Section A, line 6 Organization's sole member is MACCO Healthcare, Inc. Form 990, Part VI, Section A, line 7a MACCO Healthcare, Inc. approves members of the governing body of McPherson Hospital, Inc. Form 990, Part VI, Section B, line 11b A copy of the Form 990 is provided to all board members with an opportunity to comment or ask questions prior to filing. Form 990, Part VI, Section B, line 12c The conflict of interest policy is reviewed annually by the governing body. Updated individual disclosure forms are also required annually. Form 990, Part VI, Section B, line 15 Organization participates annually in salary surveys sponsored by the Kansas Hospital Association and uses MGMA and other national references in establishing physician compensation. Terms of employment contracts are approved by the governing body. Form 990, Part VI, Section C, line 19 The Organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon written request. Form 990, Part IX, line 11g Physician professional fees: Program service expenses 2,649,955. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,649,955. Other medical personnel professional fees: Program service expenses 2,020,257. Management and general expenses 43,695. Fundraising expenses 0. Total expenses 2,063,952. Other purchased services: Program service expenses 885,927. Management and general expenses 1,032,972. Fundraising expenses 0. Total expenses 1,918,899. Form 990, Part XI, line 9: Change in beneficial interest in net assets of Foundation 143,032. FORM 990 PART XI, LINE 2C: The Finance Committee reviews the audit prior to submitting to the Board. MACCO Healthcare Inc 1000 Hospital Drive McPherson KS 67460 481059194 Sole Member of McPherson Hopsital, Inc. and McPherson Healthcare Fdn, Inc. KS 501(c)(3) Line 7 0 McPherson Healthcare Foundation Inc 1016 N Main McPherson KS 67460 481043952 Raise funds to support the operation of McPherson Hopsital, Inc. KS 501(c)(3) Line 7 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0