2018-11-15T18:13:14-06:00 2017-12-31 ERNST & YOUNG US LLP 111 MONUMENT CIR STE 4000 INDIANAPOLIS IN 46204 990 2017-01-26 815174295 INDIANA UNIVERSITY HEALTH FRANKFORT INC % CRAIG J JONES INDI 3179634842 950 N MERIDIAN STREET SUITE 300 INDIANAPOLIS IN 46204 TODD A WILLIAMS CFO 3179634842 2018-11-12 JENNIFER D RHODERICK P00395735 3176817000 162.1.129.9 35198520183195000019 2018-11-15 P 49A42BAE7DB19B68098C55D96BB751E89F2C86F0 B5629F424D143381A8D4CEB53CEB5536823EBB68 2017 2019-02-21 02:37:17Z X KELLY L BRAVERMAN 950 N MERIDIAN ST STE 300 INDIANAPOLIS IN 46204 8388662 false X SEE SCHEDULE O X 2017 IN IMPROVE THE HEALTH OF OUR PATIENTS AND COMMUNITY THROUGH INNOVATION AND EXCELLENCE IN CARE, EDUCATION, RESEARCH AND SERVICE. 12 7 142 30 0 0 0 0 0 8244721 0 0 0 143941 0 8388662 0 0 0 0 0 4805168 0 0 0 0 10440495 0 15245663 0 -6857001 0 8129811 0 14986812 0 -6857001 Improve the health of our patients and community through innovation and excellence in care, education, research and service. false false 8632610 0 8244721 Indiana University Health Frankfort, Inc. ("IU Health Frankfort Hospital"), located in Frankfort, Indiana, is a 25-bed acute-care and critical access hospital that offers a comprehensive range of services to care for its patients without regard to their ability to pay. IU Health Frankfort Hospital is part of the Indiana University Health system, Indiana's largest comprehensive health system. IU Health is dedicated to providing leading-edge care. Our unique partnership with the Indiana University School of Medicine gives our highly skilled physicians access to innovative treatments using the latest research and technology. IU Health Frankfort Hospital strives to deliver extraordinary patient care every day. We offer a comprehensive range of healthcare services that includes a 24-hour emergency department, diagnostic imaging services, general medical and surgical services, cancer care and more. 8632610 true false false true false false false false false false true false false true true true false true false false false false false false false false true true false false true false false false false false false false false false false false false false true true true false false true 5 0 true 142 true false false false false false false false false false false X 12 7 false false false false true true true true false false false true true true true true true false false false IN X CRAIG J JONES 3179634842 950 N MERIDIAN STREET SUITE 300 INDIANAPOLIS IN 46204 X VICTOR L LECHTENBERG CHAIRMAN (WCR) 2.0 7.0 X X 0 6750 0 CHRISTOPHER A MANSFIELD MD VICE CHAIR (WCR)/PHY.DIV.DIR. 2.0 58.0 X X 0 432785 40407 ROGER G BANGS MD DIRECTOR (WCR)/PHY. DIV. DIR. 2.0 58.0 X 0 618616 33638 P RON ELLIS DIRECTOR (WCR) (PARTIAL YEAR) 2.0 7.0 X 0 8250 0 JOY KLEINMAIER INITIAL DIRECTOR 10.0 45.0 X 0 341289 26961 DANIEL F EVANS JR DIRECTOR (WCR) 2.0 58.0 X 0 777081 25144 GARY HENRIOTT DIRECTOR (WCR) 2.0 60.0 X 0 7500 0 KENNETH MARNOCHA MD DIRECTOR (WCR) 2.0 58.0 X 0 644145 10800 RANDALL R MITCHELL DIRECTOR (WCR) 2.0 7.0 X 3600 8250 0 RUBAN NIRMALAN MD DIRECTOR (WCR) 2.0 58.0 X 0 697583 34950 RANDY PRICE DIRECTOR (WCR) 2.0 7.0 X 0 4500 0 REV KATE L WALKER DIRECTOR (WCR) 2.0 7.0 X 0 12750 0 ESMERELDA CRUZ DIRECTOR (WCR) 2.0 7.0 X 0 0 0 SHAN SHERIDAN DIRECTOR (WCR) 2.0 7.0 X 0 3750 0 DEREK E EMPIE INITIAL DIR./SECRETARY (WCR) 10.0 45.0 X X 0 193345 36497 DONALD E CLAYTON INITIAL DIR. / PRESIDENT(WCR) 10.0 45.0 X X 0 661622 29148 JEFFREY ZEH PRESIDENT (PART YR)/COO (WCR) 25.0 30.0 X 0 296755 11865 KELLY BRAVERMAN PRESIDENT 30.0 25.0 X 118585 101511 8011 CARA L BREIDSTER CFO / TREASURER (WCR) 10.0 45.0 X 0 292331 32757 JEFFREY P BROWN MD CMO (WCR) 10.0 45.0 X 0 334014 41067 MARILYN RILEY CNO 20.0 35.0 X 56676 74337 7317 JAMES PARSONS VP, CHIEF PRACTICE OFFICER 10.0 40.0 X 0 143517 34459 LAWRENCE STAUFFER DIRECTOR, OPERATIONS REGIONAL 10.0 40.0 X 0 127703 24735 KOREEN KYNELL VP, HUMAN RESOURCES REGIONAL 10.0 40.0 X 0 189955 30264 178861 5978339 428020 1 false true false EM CARE INC 13737 NOEL RD STE 1600 DALLAS TX 75240 PHYSICIAN SERVICES 559980 HMH CONTRACTORS 817 MILLBROOK LN KOKOMO IN 46901 MECHANIC. CONTRACTOR 134941 HAGERMAN CONSTRUCTION CORP 10315 ALLISONVILLE RD FISHERS IN 46038 CONSTRUCTION 393805 MULHAUPTS INC 8227 NORTHWEST BLVD INDIANAPOLIS IN 46278 SECURITY 338467 MEDEFIS 2121 N 117TH AVE STE 200 OMAHA NE 68164 VENDOR MGMT 314611 8 0 NET PATIENT SERVICE REVENUE 621111 8244721 8244721 8244721 0 0 0 96483 96483 0 96483 96483 0 0 0 0 0 0 0 0 0 0 CAFETERIA 722210 35751 35751 ALL OTHER REVENUE 900099 11707 11707 47458 8388662 8244721 143941 0 0 0 0 126596 93245 33351 0 0 3920041 2887327 1032714 0 126383 77975 48408 0 387893 296643 91250 244255 164720 79535 0 0 0 2237 2237 0 0 5753076 2132326 3620750 0 186958 29839 157119 15727 14792 935 0 1060020 48494 1011526 6437 4443 1994 0 1595 1595 1282 1282 0 476231 149092 327139 62269 11124 51145 BAD DEBT 1294636 1294636 DRUGS AND MEDICAL SUPPLIES 677240 673107 4133 INSTITUTIONAL DUES/LICENSES 4812 2215 2597 HOSPITAL ASSESSMENT FEE 447044 447044 450931 305588 145343 15245663 8632610 6613053 0 0 0 0 0 0 0 0 2174072 0 0 0 0 0 0 0 287688 0 69373 5257045 475739 0 4781306 0 0 0 0 0 0 0 0 0 817372 0 8129811 0 9687723 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5299089 0 14986812 X 0 -6857001 0 0 0 0 0 -6857001 0 8129811 -6857001 X false true X true false X false false false false false false false false true 2237 2237 false Schedule C, Part II-B, Line 1i Other Activities IU Health Frankfort, Inc. paid institutional membership dues to the American Hospital Association ("AHA") during 2017 in the amount of $10,269. Each membership organization notified IU Health Frankfort that a portion of the dues it paid were used for lobbying purposes. The AHA used 21.78%, or $2,237 of 2017 membership dues paid by IU Health Frankfort for lobbying expenditures. The total membership dues paid to these organizations by IU Health Frankfort during 2017 that were attributable to lobbying expenditures was $2,237. 5257045 475739 4781306 4781306 DUE FROM THIRD PARTY PAYERS 817372 817372 0 INTERCOMPANY PAYABLES (NET) 5299089 5299089 X Schedule D, Part X, Line 2 FIN 48 (ASC 740) Footnote IU Health Frankfort, Inc. is a subsidiary in IU Health's Consolidated Audited Financial Statements. The Internal Revenue Service (IRS) has determined that IU Health and certain of its affiliated entities are tax-exempt organizations as defined in Section 501(c)(3) of the Internal Revenue Code (IRC). IU Health and its tax-exempt affiliates are, however, subject to federal and state income taxes on unrelated business income under the provision of IRC Section 511. Deferred income taxes, which as of December 31, 2017 and 2016, have no net carrying value, reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amount used for income tax purposes. As of December 31, 2017 and 2016, the Indiana University Health System had gross deferred tax assets of $93,794,000 and $116,490,000, respectively, primarily relating to net operating loss carryovers. Management determined that a full valuation allowance at both December 31, 2017 and 2016 was necessary to reduce the deferred tax assets to the amount that would more likely than not be realized. ASC Topic 740-10-50-3, Income Taxes: Disclosure, requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The change in valuation allowance for the current year is $22,696,000. At December 31, 2017, the Indiana University Health System has available net operating loss carryforwards of $377,123,000. These net operating losses will expire between 2018 and 2037. Certain subsidiaries of IU Health are taxable entities. The tax expense and liabilities of these subsidiaries are not material to the consolidated financial statements. true true X true X false true false false 926 903509 903509 0.06480 1817 3699393 1395280 2304113 0.16520 2743 4602902 1395280 3207622 0.23000 2 151 234438 234438 0.01680 1 0 4182 4182 0.00030 3 151 238620 238620 0.01710 3 2894 4841522 1395280 3446242 0.24710 false 705188 6403873 6354322 49551 X true true 1 1 IU HEALTH FRANKFORT HOSPITAL 1300 S JACKSON STREET FRANKFORT IN 46041 SEE PART V, SECTION C 17-005039-1 X X X X IU HEALTH FRANKFORT HOSPITAL INC 1 false true false false true X 200. 0. X X X X X true true X X X true X SEE PART V, SECTION C X SEE PART V, SECTION C X SEE PART V, SECTION C X X X X X X X true X false X X X X true X false false Schedule H, Part V, Section B, Line 13b Income Level Other than FPG In addition to FPG, IU Health Frankfort may take into consideration a patients income and/or ability to pay in calculation of a financial assistance award. Schedule H, Part V, Section B, Line 13h Other FAP Factors IU Health Frankfort takes into consideration several other factors in determining patient eligibility for financial assistance. These factors include the following: 1. IU Healths Individual Solutions Department Prior to seeking Financial Assistance under the FAP, all patients or their guarantors must consult with a member of IU Healths Individual Solutions department to determine if healthcare coverage may be obtained from a government insurance/assistance product or from the Health Insurance Exchange Marketplace. 2. Alternate Sources of Assistance When technically feasible, a patient will exhaust all other state and federal assistance programs prior to receiving an award from IU Health Frankforts Financial Assistance Program. Patients who may be eligible for coverage under an applicable insurance policy, including, but not limited to, health, automobile, and homeowners, must exhaust all insurance benefits prior to receiving an award from IU Health Frankforts Financial Assistance Program. This includes patients covered under their own policy and those who may be entitled to benefits from a third-party policy. Patients may be asked to show proof that such a claim was properly submitted to the proper insurance provider at the request of IU Health Frankfort. Eligible patients who receive medical care from IU Health Frankfort as a result of an injury proximately caused by a third party, and later receive a monetary settlement or award from said third party, may receive Financial Assistance for any outstanding balance not covered by the settlement or award to which IU Health Frankfort is entitled. In the event a Financial Assistance Award has already been granted in such circumstances, IU Health Frankfort reserves the right to reverse the award in an amount equal to the amount IU Health Frankfort would be entitled to receive had no Financial Assistance been awarded. 3. Alternate Methods of Eligibility Determination IU Health Frankfort will conduct a quarterly review of all accounts placed with a collection agency partner for a period of no less than one hundred and twenty (120) days after the account is eligible for an Extraordinary Collection Action ("ECA"). Said accounts may be eligible for assistance under the FAP based on the patients individual scoring criteria. To ensure all patients potentially eligible for Financial Assistance under the FAP may receive Financial Assistance, IU Health Frankfort will deem patients/guarantors to be presumptively eligible for Financial Assistance if they are found to be eligible for one of the following programs, received emergency or direct admit care, and satisfied his/her required co-pay/deductible: - Indiana Childrens Special Health Care Services - Medicaid - Health Indiana Plan - Patients who are awarded Hospital Presumptive Eligibility (HPE) - Enrolled in a state and/or federal program that verifies the patient's gross household income is less than or equal to 200% of the Federal Poverty Level 4. Additional Considerations Financial Assistance may be granted to a deceased patients account if said patient is found to have no estate. Additionally, IU Health Frankfort will deny or revoke Financial Assistance for any patient or guarantor who falsifies any portion of a Financial Assistance application. 5. Non-Emergent Services Down Payment Uninsured Patients presenting for scheduled or other non-emergent services will not be charged more than the AGB for their services. Patients will receive an estimated AGB cost of their care prior to IU Health Frankfort rendering the services and will be asked to pay a down-payment percentage of the AGB adjusted cost prior to receiving services. In the event a patient is unable to fulfill the down-payment, their service may be rescheduled for a later date as medically prudent and in accordance with all applicable federal and state laws and/or regulations. 6. Emergency Services Non-Refundable Deposit This section will be implemented with a strict adherence to EMTALA and IU Health Policy ADM 1.32, Screening and Transfer of Emergency or Unstable Patients. Amount of Non-Refundable Deposit All Uninsured Patients presenting for services at IU Health Frankforts Emergency Department, via transfer from another hospital facility, or direct admission, will be responsible for a one-hundred dollar ($100.00) non-refundable deposit for services rendered. Patients/guarantors will be responsible for any copays and/or deductibles required by their plan prior to full Financial Assistance being applied. Uninsured Patients wishing to make an application for Financial Assistance greater than the AGB must fulfill their non-refundable deposit prior to IU Health Frankfort processing said application. Uninsured Patients making payments toward their outstanding non-refundable deposit balance will have said payments applied to their oldest application on file, if applicable. Schedule H, Part V, Section B, Line 16a FAP Website A copy of IU Health Frankforts FAP is available on the following website: https://iuhealth.org/pay-a-bill/financial-assistance Schedule H, Part V, Section B, Line 16b FAP Application A copy of IU Health Frankforts FAP application is available on the following website: https://iuhealth.org/pay-a-bill/financial-assistance Schedule H, Part V, Section B, Line 16c FAP PLS Website A plain language summary of the FAP, including translated copies, is available on the following website: https://iuhealth.org/pay-a-bill/financial-assistance Schedule H, Part V, Section B, Line 16j Other Measures to Publicize IU Health Frankfort takes several other measures to publicize its FAP within the community. These measures include the following: 1. Conspicuous public displays will be posted in appropriate acute care settings such as the emergency department and registration areas describing the available assistance and directing eligible patients to the Financial Assistance Application. 2. IU Health Frankfort will include a conspicuous written notice on all patient billing statements that notifies the patient about the availability of this Policy, and the telephone number of its Customer Service Department which can assist patients with any questions they may have regarding this Policy. 3. IU Health Frankfort Customer Service representatives will be available via telephone Monday through Friday, excluding major holidays, from 8:00 a.m. to 7:00 p.m. Eastern Time to address questions related to this Policy. 4. IU Health Frankfort will broadly communicate this Policy as part of its general outreach efforts. 5. IU Health Frankfort will educate its patient facing team members of the FAP and the process for referring patients to the Program. Schedule H, Part V, Section B, Line 2 - First Year Tax-Exempt Hospital IU Health Frankfort, Inc. was incorporated with the State of Indiana on January 26, 2017. IU Health Frankfort, Inc. assumed operations of the hospital on June 1, 2017. Schedule H, Part V, Section A, Line 1 Primary Website Address https://iuhealth.org/find-locations/iu-health-frankfort-hospital Schedule H, Part I, Line 3c Other Factors Used in Determining Elig. IU Health Frankfort uses several factors other than Federal Poverty Guidelines ("FPGs") in determining eligibility for free care under its FAP. These factors include the following: 1. Indiana Residency Requirement Financial Assistance will only be made available to residents of the State of Indiana and those eligible for assistance under 42 U.S.C.A. 1396b(v). IU Health Frankfort will employ the same residency test as set forth in Indiana Code 6-3-1-12 to define an Indiana resident. The term Resident includes any individual who was domiciled in Indiana during the taxable year, or any individual who maintains a permanent place of residence in Indiana and spends more than one hundred eight-three (183) days of the taxable year in Indiana. Patients residing in the state of Indiana while attending an institution of higher education may be eligible for assistance under the FAP if they meet the aforementioned residency test and are not claimed as a dependent on a parents or guardians federal income tax return. 2. IU Health Frankfort's Individual Solutions Department Prior to seeking Financial Assistance under the FAP, all patients or their guarantors must consult with a member of IU Health Frankfort's Individual Solutions department to determine if healthcare coverage may be obtained from a government insurance/assistance product or from the Health Insurance Exchange Marketplace. 3. Uninsured Patients All Uninsured Patients presenting for services at IU health Frankfort eligible under the FAP will not be charged more than the AGB as described in the FAP. 4. Services Rendered by Individual Providers The FAP does not cover services rendered by individual providers. A full listing of providers and services not covered by the FAP is available at https://iuhealth.org/pay-a-bill/financial-assistance and is updated on a quarterly basis. 5. Alternate Sources of Assistance When technically feasible, a patient will exhaust all other state and federal assistance programs prior to receiving an award from IU Health Frankforts Financial Assistance Program. Patients who may be eligible for coverage under an applicable insurance policy, including, but not limited to, health, automobile, and homeowners, must exhaust all insurance benefits prior to receiving an award from IU Health Frankforts Financial Assistance Program. This includes patients covered under their own policy and those who may be entitled to benefits from a third-party policy. Patients may be asked to show proof that such a claim was properly submitted to the proper insurance provider at the request of IU Health Frankfort. Eligible patients who receive medical care from IU Health Frankfort as a result of an injury proximately caused by a third party, and later receive a monetary settlement or award from said third party, may receive Financial Assistance for any outstanding balance not covered by the settlement or award to which IU Health Frankfort is entitled. In the event a Financial Assistance Award has already been granted in such circumstances, IU Health Frankfort reserves the right to reverse the award in an amount equal to the amount IU Health Frankfort would be entitled to receive had no Financial Assistance been awarded. 6. Alternate Methods of Eligibility Determination IU Health Frankfort will conduct a quarterly review of all accounts placed with a collection agency partner for a period of no less than one hundred and twenty (120) days after the account is eligible for an ECA. Said accounts may be eligible for assistance under the FAP based on the patients individual scoring criteria. To ensure all patients potentially eligible for Financial Assistance under the FAP may receive Financial Assistance, IU Health Frankfort will deem patients/guarantors to be presumptively eligible for Financial Assistance if they are found to be eligible for one of the following programs, received emergency or direct admit care, and satisfied his/her required co-pay/deductible: - Indiana Childrens Special Health Care Services - Medicaid - Health Indiana Plan - Patients who are awarded Hospital Presumptive Eligibility (HPE) - Enrolled in a state and/or federal program that verifies the patient's gross household income is less than or equal to 200% of the Federal Poverty Level 7. Additional Considerations Financial Assistance may be granted to a deceased patients account if said patient is found to have no estate. Additionally, IU Health Frankfort will deny or revoke Financial Assistance for any patient or guarantor who falsifies any portion of a Financial Assistance application. 8. Patient Assets IU Health Frankfort may consider patient/guarantor Assets in the calculation of a patient's true financial burden. A patient's/guarantor's primary residence and one (1) motor vehicle will be exempted from consideration in most cases. A patient's primary residence is defined as the patient's principal place of residence and will be excluded from a patient's extraordinary asset calculation so long as the patient's equity is less than five-hundred thousand dollars ($500,000) and the home is occupied by the patient/guarantor, patient's/guarantor's spouse or child under twenty-one (21) years of age. One (1) motor vehicle may be excluded as long as the patient's equity in the vehicle is less than fifty-thousand dollars ($50,000). IU Health Frankfort reserves the right to request a list of all property owned by the patient/guarantor and adjust a patient's award of Financial Assistance if the patient demonstrates a claim or clear title to any extraordinary Asset not excluded from consideration under the above guidance. 9. Non-Emergent Services Down Payment Uninsured Patients presenting for scheduled or other non-emergent services will not be charged more than the AGB for their services. Patients will receive an estimated AGB cost of their care prior to IU Health Frankfort rendering the services and will be asked to pay a down-payment percentage of the AGB adjusted cost prior to receiving services. In the event a patient is unable to fulfill the down-payment, their service may be rescheduled for a later date as medically prudent and in accordance with all applicable federal and state laws and/or regulations. 10. Emergency Services Non-Refundable Deposit This section will be implemented with a strict adherence to EMTALA and IU Health Policy ADM 1.32, Screening and Transfer of Emergency or Unstable Patients. Amount of Non-Refundable Deposit All Uninsured Patients presenting for services at IU Health Frankforts Emergency Department, via transfer from another hospital facility, or direct admission, will be responsible for a one-hundred dollar ($100.00) non-refundable deposit for services rendered. Patients/guarantors will be responsible for any copays and/or deductibles required by their plan prior to full Financial Assistance being applied. Uninsured Patients wishing to make an application for Financial Assistance greater than the AGB must fulfill their non-refundable deposit prior to IU Health Frankfort processing said application. Uninsured Patients making payments toward their outstanding non-refundable deposit balance will have said payments applied to their oldest application on file, if applicable. Schedule H, Part I, Line 6a C.B. Report Prepared by a Related Org. IU Health Frankfort, Inc. was formed January 26, 2017 and was not included in the IU Health Community Benefit Report as of December 31, 2017. IU Health Frankfort was in its first year of operations in 2017. IU Health Frankfort will be included in the 2018 Community Benefit Report for IU Health, Inc. Schedule H, Part I, Line 7, Column (f) Bad Debt Expense The amount of bad debt expense included on Form 990, Part IX, Line 25, column (A), but subtracted for purposes of calculating the percentage of total expense is $1,294,636. Schedule H, Part I, Line 7 Total Community Benefit Expense Schedule H, Part I, Line 7, Column (f), Percent of Total Expense, is based on column (e) Net Community Benefit Expense. The percent of total expense based on column (c) Total Community Benefit Expense, which includes direct offsetting revenue, is 34.71%. Schedule H, Part II - Promotion of Health in Communities Served IU Health Frankfort participates in a variety of community-building activities that address the social determinants of health in the communities it serves. IU Health and its related hospital entities across the State of Indiana ("IU Health Statewide System") invest in economic development efforts across the state, collaborate with like-minded organizations through coalitions that address key issues, and advocate for improvements in the health status of vulnerable populations. This includes making contributions to community-building activities by providing investments and resources to local community initiatives that addressed economic development, community support and workforce development. Several examples include IU Healths support of the following organizations and initiatives that focus on some of the root causes of health issues, such as lack of education, employment and poverty: - Starfish Initiative - Teach for America - United Way Additionally, through the IU Health Statewide Systems team member community benefit service program, "Strength That Cares", team members across the state make a difference in the lives of thousands of Hoosiers every year. Schedule H, Part III, Line 2 Methodology Used to Est. Bad Debt Exp. The bad debt expense of $705,188 reported on Schedule H, Part III, Line 2 is reported at cost, as calculated using the cost to charge ratio methodology. Schedule H, Part III, Line 4 Bad Debt Expense IU Health Frankfort is a subsidiary in the consolidated financial statements of IU Health. IU Healths bad debt expense footnote is as follows: The Indiana University Health System does not require collateral or other security for the delivery of health care services from its patients, substantially all of whom are residents of the state of Indiana. However, assignment of benefit payments payable under patients health insurance programs and plans (e.g., Medicare, Medicaid, health maintenance organizations, and commercial insurance policies) is routinely obtained, consistent with industry practice. The provision for uncollectible accounts, for all payers, is recognized when services are provided based upon managements assessment of historical and expected net collections, taking into consideration business and economic conditions, changes and trends in health care coverage, and other collection indicators. Periodically, management assesses the adequacy of the allowance for uncollectible accounts based upon accounts receivable payer composition and aging, the significance of individual payers to outstanding accounts receivable balances, and historical write-off experience by payer category, as adjusted for collection indicators. The results of this review are then used to make any modifications to the provision for uncollectible accounts and the allowance for uncollectible accounts. In addition, the Indiana University Health System follows established guidelines for placing certain past-due patient balances with collection agencies. Patient accounts that are uncollected, including those placed with collection agencies, are initially charged against the allowance for uncollectible accounts in accordance with collection policies of the Indiana University Health System and, in certain cases, are reclassified to charity care if deemed to otherwise meet financial assistance policies of the Indiana University Health System. Schedule H, Part III, Line 8 Medicare Shortfall IU Health Frankfort did not have a Medicare shortfall for 2017. IU Health Frankfort accepts all Medicare patients knowing that there may be shortfalls; therefore it has taken the position that any shortfall should be counted as part of its community benefit. Additionally, it is implied in Internal Revenue Service Revenue Ruling 69-545 that treating Medicare patients is a community benefit. Revenue Ruling 69-545, which established the community benefit standard for nonprofit hospitals, states that if a hospital serves patients with governmental health benefits, including Medicare, then this is an indication that the hospital operates to promote the health of the community. The amount reported on Schedule H, Part III, Line 6 is calculated, in accordance with the Form 990 instructions, using "allowable costs" from the IU Health Frankfort Medicare Cost Report. "Allowable costs" for Medicare Cost Report purposes, however, are not reflective of all costs associated with IU Health Frankfort's participation in Medicare programs. For example, the Medicare Cost Report excludes certain costs such as billed physician services, the costs of Medicare Parts C and D, fee schedule reimbursed services, and durable medical equipment services. Inclusion of all costs associated with IU Health Frankfort's participation in Medicare programs would significantly reduce the Medicare surplus reported on Schedule H, Part III, Line 7. Schedule H, Part III, Line 9b Written Debt Collection Policy IU Health Frankforts FAP and Written Debt Collection Policy describe the collection practices applicable to patients, including those who may qualify for financial assistance. 1. Financial Assistance Application Patients or their guarantors wishing to apply for Financial Assistance are encouraged to submit a Financial Assistance Application within ninety (90) days of their discharge. Patients or their guarantors may submit an application up to two-hundred and forty (240) days from the date of their first billing statement from IU Health, however, accounts may be subject to ECA as soon as one hundred and twenty (120) days after having received their first billing statement. Patients or their guarantors submitting an incomplete application will receive written notification of the applications deficiency upon discovery by IU health. The application will be pended for a period of forty-five (45) days from the date the notification is mailed. IU Health will suspend any ECA until the application is complete, or the patient fails to cure any deficiencies in their application in the allotted period. Patients with limited English proficiency may request to have a copy of the FAP, a FAP Application, and FAP Plain Language Summary in one of the below languages: - Arabic - Burmese - Burmese-Falam - Burmese-Hakha Chin - Mandarin/Chinese - Spanish The patient, and/or their representative, such as the patients physician, family members, legal counsel, community or religious groups, social services or hospital personnel may request a FAP Application to be mailed to a patients primary mailing address free of charge. IU Health Frankfort keeps all applications and supporting documentation confidential. Patients applying for assistance under the FAP will be required to complete a Financial Assistance Application. Patients must include the following documentation with their Financial Assistance Application: - All sources of Income for the last three (3) months; - Most recent three (3) months of pay stubs or Supplemental Security Income via Social Security; - Most recent three (3) statements from checking and savings accounts, certificates of deposit, stocks, bonds and money market accounts; - Most recent state and Federal Income Tax forms including schedules C, D, E, and F. In the event a patients and/or guarantors income does not warrant the filing of a federal tax return, the patient may submit a notarized affidavit attesting to the foregoing; - Most recent W-2 statement; - For patients or members of the Household who are currently unemployed, Wage Inquiry from WorkOne; and - If applicable, divorce/dissolution decrees and child custody order 2. Eligibility Determination IU Health Frankfort will inform patients or guarantors of the results of their application by providing the patient or guarantor with a Financial Assistance Determination within ninety (90) days of receiving a completed Application and all requested documentation. If a patient or guarantor is granted less than full charity assistance and the patient or guarantor provides additional information for reconsideration, IU Health Revenue Cycle Services may amend a prior Financial Assistance Determination. If a patient or guarantor seeks to appeal the Financial Assistance Determination further, a written request must be submitted, along with the supporting documentation, to the Financial Assistance Committee for additional review/reconsideration. All decisions of the Financial Assistance Committee are final. A patients Financial Assistance Application and eligibility determination are specific to each individual date(s) of service and related encounters. 3. Extraordinary Collection Actions IU Health Frankfort may refer delinquent patient accounts to a third-party collection agency after utilizing reasonable efforts to determine a patients eligibility for assistance under the FAP. IU Health Frankfort and its third-party collection agencies may initiate ECA against a patient or their guarantor in accordance with this Policy and 26 C.F.R. 1.501(r). Said ECA may include the following: - Selling a patients or their guarantors outstanding financial responsibility to a third party. - Reporting adverse information about the patient or their guarantor to consumer credit reporting agencies or credit bureaus. - Deferring or denying, or requiring a payment before providing, medically necessary care because of a patients or their guarantors nonpayment of one or more bills for previously provided care covered under the FAP. - Actions requiring a legal or judicial process, including but not limited to placing a lien on patients or their guarantors property, foreclosing on a patients or their guarantors real property attaching or seizing a patients or their guarantors bank account or other personal property, commencing a civil action against a patient or their guarantor, causing a patient or guarantors arrest, causing a patient and/or guarantor to be subject to a writ of body attachment, and garnishing a patient or guarantors wages. When it is necessary to engage in such action, IU Health Frankfort and its third party collection agencies, will engage in fair, respectful and transparent collections activities. Patients or guarantors currently subject to an ECA who have not previously applied for Financial Assistance may apply for assistance up to two-hundred and forty (240) days of the date of their first billing statement from IU Health. IU Health and their third-party collection agencies will suspend any ECA engaged on a patient or their guarantor while an Application is being processed and considered. 4. Refunds Patients eligible for assistance under the FAP who remitted payment to IU Health Frankfort in excess of their patient responsibility will be alerted to the overpayment as promptly after discovery as is reasonable given the nature of the overpayment. Patients with an outstanding account balance on a separate account not eligible for assistance under the FAP will have their refund applied to the outstanding balance. Patients without an outstanding account balance described above will be issued a refund check for their overpayment as soon as technically feasible. Schedule H, Part VI, Line 2 Needs Assessment IU Health Frankfort, Inc. was formed January 26, 2017. IU Health Frankfort began conducting operations as a hospital within the IU Health System on June 1, 2017. IU Health Frankfort has not yet conducted its first CHNA as of December 31, 2017. IU Health Frankfort, Inc. worked closely with the Healthy Communities of Clinton County Coalition to identify and address local health needs. The HCCCC is an established coalition that works diligently on local health needs. Schedule H, Part VI, Line 3 Patient Education of Eligibility for Assist. IU Health Frankfort is committed to serving the healthcare needs of all of its patients regardless of their ability to pay for such services. To assist in meeting those needs, IU Health Frankfort has established a FAP to provide Financial Assistance to Uninsured Patients. IU Health Frankfort is committed to ensuring its patients are compliant with all provisions of the Patient Protection & Affordable Care Act. To that end, IU Health Frankfort will make a good faith effort to locate and obtain health insurance coverage for patients prior to considering patients for coverage under the FAP. IU Health Frankfort takes several measures to inform its patients of the FAP and FAP-eligibility. These measures include the following: 1. Conspicuous public displays will be posted in appropriate acute care settings such as the emergency department and registration areas describing the available assistance and directing eligible patients to the Financial Assistance Application. 2. IU Health Frankfort will include a conspicuous written notice on all patient billing statements that notifies the patient about the availability of this Policy, and the telephone number of its Customer Service Department which can assist patients with any questions they may have regarding this Policy. 3. IU Health Frankfort Customer Service representatives will be available via telephone Monday through Friday, excluding major holidays, from 8:00 a.m. to 7:00 p.m. Eastern Time to address questions related to this Policy. 4. IU Health Frankfort will broadly communicate this Policy as part of its general outreach efforts. 5. IU Health Frankfort will educate its patient facing team members of the FAP and the process for referring patients to the Program. Schedule H, Part VI, Line 4 Community Information IU Health Frankfort is located in Clinton County, Indiana, a county located in central northwest Indiana. Clinton County includes ZIP codes within the towns of Colfax, Forest, Frankfort, Kirklin, Michigantown, Mulberry, Rossville and Sedalia. Based on the most recent Census Bureau (2017) statistics, Clinton Countys population is 32,317. The countys population estimates by race are 82.1% White, 16.1% Hispanic, 0.7% Black, 0.4% Asian, and 0.5% American Indian. Clinton County has modest levels of educational attainment. About 86.1% attained a high school degree or higher. About 15% of the population obtained a bachelor's degree or higher. Schedule H, Part VI, Line 5 Promotion of Community Health IU Health Frankfort is a subsidiary of IU Health, a tax-exempt healthcare organization, whose Board of Directors is composed of members, of which the majority is independent community members. In addressing the identified community priorities, IU Health Frankfort has participated in events, health fairs, and programs to provide health and wellness information and educational resources to the community. Since the acquisition, IU Health Frankfort has supported the Clinton County Health Department by providing free space in the hospital for an immunization clinic. The IU Health Frankfort also provides free space to the Healthy Communities of Clinton County Coalition, a coalition that addresses various significant health needs of the community. The Hospital has also provided funding to Healthy Communities of Clinton County Coalition for the purchase of free health screening supplies and car seats For its first Day of Service as an IU Health facility, the IU Health Frankfort team members volunteered in the community at local schools to build a gaga ball pit and Buddy Benches to encourage children to be more physically active in the school setting. For its first Day of Service as an IU Health facility, the hospital team members volunteered in the community at local schools to build a gaga ball pit and Buddy Benches to encourage children to be more physically active in the school setting. Schedule H, Part VI, Line 6 Affiliated Health Care System IU Health Frankfort is part of the IU Health Statewide System. The IU Health Statewide system is Indianas most comprehensive healthcare system. A unique partnership with the Indiana University School of Medicine, one of the nations leading medical schools, gives patients access to innovative treatments and therapies. IU Health is comprised of hospitals, physicians and allied services dedicated to providing preeminent care throughout Indiana and beyond. National Recognition - Six hospitals designated as Magnet by the American Nurses Credentialing Center recognizing excellence in nursing care - Seven clinical programs ranked among the top 50 national programs in U.S. News & World Reports 2017-18 edition of Americas Best Hospitals - Ten out of ten specialty programs at Riley Hospital for Children at IU Health ranked among the top 50 childrens hospitals in the nation Education and Research As an academic health center, IU Health works in partnership with the IU School of Medicine to train physicians, blending breakthrough research and treatments with the highest quality of patient care. Each year, more than 1,000 residents and fellows receive training in IU Health hospitals. Research conducted by IU School of Medicine faculty gives IU Health physicians and patients access to the most leading-edge and comprehensive treatment options. In 2012, IU Health and the IU School of Medicine announced that they would invest $150 million over five years in the Strategic Research Initiative, a new research collaboration that has enhanced the institutions joint capabilities in fundamental scientific investigation, translational research and clinical trials. The initial focus is on projects in the fields of neuroscience, cancer and cardiovascular disease with the goal to fund transformative proposals that will fundamentally change our understanding of these diseases and lead to important new therapies for patients. The three target research areas represent research strengths at IU School of Medicine, key strategic service lines for IU Health, and important medical needs in a time of an aging population and rising healthcare costs: - Cancer: One of the initiative's primary goals is to enable the IU Health Melvin and Bren Simon Cancer Center to attain the National Cancer Institute's top status of "comprehensive," which would recognize it as one of the top-tier cancer centers in the nation. - Neuroscience: The neurosciences research program will tackle a broad range of brain injuries, neurodegenerative disorders and neurodevelopmental disorders. - Cardiovascular: The cardiovascular research initiative will develop a comprehensive program for the study and treatment of heart failure, from newborns to older adults. A top priority is developing a cardiovascular genetics program. The Strategic Research Initiative will provide patients with access to internationally renowned physicians and to new therapies developed through translational research and clinical trials, and will make use of the latest genetic tools to develop personalized therapies that are more effective for individuals and efficient for healthcare providers. IU Health Statewide System IU Health is a part of the IU Health Statewide System which continues to broaden its reach and positive impact throughout the state of Indiana. IU Health is Indianas most comprehensive academic health center and consists of IU Health Methodist Hospital, IU Health University Hospital, Riley Hospital for Children at IU Health, and IU Health Saxony Hospital. Other hospitals in the IU Health Statewide System include the following: - IU Health Arnett Hospital - IU Health Ball Memorial Hospital - IU Health Bedford Hospital - IU Health Blackford Hospital - IU Health Bloomington Hospital - IU Health Frankfort Hospital - IU Health North Hospital - IU Health Paoli Hospital - IU Health Tipton Hospital - IU Health West Hospital - IU Health White Memorial Hospital Although each hospital in the IU Health Statewide System prepares and submits its own community benefits plan relative to the local community, the IU Health Statewide System considers its community benefit plan as part of an overall vision for strengthening Indianas overall health. A comprehensive community outreach strategy and community benefit plan is in place that encompasses the academic medical center downtown Indianapolis, suburban Indianapolis and statewide entities around priority areas that focus on health improvement efforts statewide. IU Health is keenly aware of the positive impact it can have on the communities of need in the state of Indiana by focusing on the most pressing needs in a systematic and strategic way. Some ways we address our community health priorities as a system include: IU Health Day of Service The annual IU Health Days of Service is a high-impact event aimed at engaging IU Health team members in activities that address an identified community priority. Each year, more than 2,000 IU Health team members volunteer during the Days of Service. Community Health Initiatives With investments in high-quality and impactful initiatives to address community health needs statewide, IU Health is helping Indiana residents improve their health and their quality of life. In 2017, IU Health impacted many people statewide through presentations, health risk screenings, health education programs, and additional health educational opportunities made available to the community, especially to our community members in the greatest need of such services. Examples of the types of programming and investment we make in community outreach areas include: Access to Healthcare IU Health is committed to providing quality and complete healthcare for Hoosiers. Access to healthcare was a leading community health need identified in all communities served by IU Health across the state. IU Health is focusing on the needs of the underserved to create initiatives and support efforts that: - Educate community members to understand and navigate the healthcare system - Increase the availability of low-cost services and provide financial assistance IU Health provides free or reduced-cost care and supports a number of clinics to provide free or reduced-cost care to individuals without access to insurance or the ability to pay the full cost of their healthcare. These clinics include: - IU Student Outreach Clinic - Hope Healthcare Services - Gennesaret Free Clinics - Trinity Free Clinic Healthy Weight & Nutrition Like most of the nation, Hoosiers see the alarming rise of obesity in their communities as a leading concern. Nationally, Indiana has the 15th highest adult obesity rate in the nation (The State of Obesity: Better Policies for a Healthier America, 2016). Obesity prevention was a critical community health need identified in IU Health communities across the state. IU Health is committed to launching innovative efforts aimed at preventing and reversing obesity in our communities to help community members get active, get healthy and get strong. IU Health is working to create initiatives and support efforts to: - Improve access to healthy foods - Create healthier school environments - Increase access to safe places for community members to be physically active IU Health initiatives aimed at preventing and reversing obesity in our communities include: - Strong Schools - Change the Play - Youth Diabetes Prevention Clinic Healthy Food Access Grant The Healthy Food Access Grant is an extension of the work started in 2011 with the Garden on the Go program to address obesity in the Indianapolis community. According to the USDA, between 25 and 30 million (9%) Americans are currently living in communities that do not provide adequate access to healthy food within a mile of their home. In Indianapolis, it is estimated that over 300,000 (36%) residents live in food deserts and have limited access to healthy and affordable food options. Indianapolis is reported as having the highest incidence of food deserts in the country (USDA, 2014). The lack of consumption and lack of access to healthy affordable food, particularly fresh produce, contributes to a poor diet and often can lead to higher rates of obesity and other diet-related diseases, such as diabetes and heart disease. Approximately 31% of Marion County residents are considered obese, up nearly 7% from 2010. When controlling for obesity, weight-related health problems, and health of environment, the Indianapolis area ranks among the worst metropolitan areas in the United States in terms of health. In sum, obesity is on the rise while increasingly more Indianapolis residents have less access to healthy and affordable food, which can contribute to lower consumption rates of fresh fruits and vegetables and higher rates of diet-related diseases. To address this important community and population health issue, IU Health Community Outreach and Engagement launched a new Healthy Food Access Grant Initiative specifically aimed at addressin false true false false false false false true false CHRISTOPHER A MANSFIELD MD VICE CHAIR (WCR)/PHY.DIV.DIR. 0 413876 0 0 0 18909 0 10800 0 29607 0 473192 0 0 ROGER G BANGS MD DIRECTOR (WCR)/PHY. DIV. DIR. 0 591752 0 6119 0 20745 0 10800 0 22838 0 652254 0 0 JOY KLEINMAIER INITIAL DIRECTOR 0 303198 0 24366 0 13725 0 10800 0 16161 0 368250 0 0 DANIEL F EVANS JR DIRECTOR (WCR) 0 481901 0 269134 0 26046 0 10800 0 14344 0 802225 0 0 KENNETH MARNOCHA MD DIRECTOR (WCR) 0 617946 0 4212 0 21987 0 10800 0 0 0 654945 0 0 RUBAN NIRMALAN MD DIRECTOR (WCR) 0 678620 0 0 0 18963 0 10800 0 24150 0 732533 0 0 JEFFREY ZEH PRESIDENT (PART YR)/COO (WCR) 0 272297 0 23648 0 810 0 10613 0 1252 0 308620 0 0 KELLY BRAVERMAN PRESIDENT 112962 96698 5416 4636 207 177 4316 3695 0 0 122901 105206 0 0 DEREK E EMPIE INITIAL DIR./SECRETARY (WCR) 0 179585 0 13310 0 450 0 7354 0 29143 0 229842 0 0 CARA L BREIDSTER CFO / TREASURER (WCR) 0 267132 0 23046 0 2153 0 10526 0 22231 0 325088 0 0 DONALD E CLAYTON INITIAL DIR. / PRESIDENT(WCR) 0 444492 0 119483 0 97647 0 13089 0 16059 0 690770 0 0 JEFFREY P BROWN MD CMO (WCR) 0 287141 0 24094 0 22779 0 10460 0 30607 0 375081 0 0 JAMES PARSONS VP, CHIEF PRACTICE OFFICER 0 130536 0 12735 0 246 0 6093 0 28366 0 177976 0 0 LAWRENCE STAUFFER DIRECTOR, OPERATIONS REGIONAL 0 125322 0 2000 0 381 0 5328 0 19407 0 152438 0 0 KOREEN KYNELL VP, HUMAN RESOURCES REGIONAL 0 170550 0 17504 0 1901 0 7825 0 22439 0 220219 0 0 Schedule J, Part I, Line 3 Comp. of the Org.s CEO/Executive Director IU Health Frankforts President is employed by IU Health Arnett, Inc. and IU Health Frankfort, Inc. IU Health Arnett's process for determining compensation includes the use of a compensation survey/study conducted by an independent compensation consultant with review and approval by the Committee on Personnel and Compensation and the Board of Directors. Please see Schedule O for additional details. Schedule J, Part I, Line 4b Supplemental Nonqualified Retirement Plan Donald E. Clayton, M.D. participates in an IU Health supplemental executive retirement plan, provisions of which are designed to retain its critical employees. The plan provides for an additional retirement benefit for service through normal retirement or other key dates. If the executive leaves prior to retirement or other key dates, the benefit may be forfeited or reduced. Donald E. Clayton, M.D. has an amount included in Column B(iii), other reportable compensation, representing the current year vested amount received under the supplemental executive retirement plan: - Donald E. Clayton, M.D. ($79,523) Schedule J, Part I, Line 7 - Non-fixed payments Amounts disclosed in Column B(ii) include a long-term and short-term incentive for certain executives and short-term incentive for other employees. Although these plans are based on a fixed formula that has been approved by the Board of Directors based upon certain qualitative and quantitative factors and goals, all discretionary incentive plans must be approved by the Committee on Personnel and Compensation and Board of Directors prior to any incentive payout. Page 1, Line J Web Site: https://iuhealth.org/find-locations/iu-health-frankfort-hospital Part VI, Section A, Lines 6, 7a and 7b Members or Stockholders Line 6: The sole member of IU Health Frankfort, Inc. is Indiana University Health, Inc. ("IU Health"), a 501(c)(3) tax-exempt organization. Line 7a: The Member, IU Health, Inc, will have the right to appoint all of the members of the Corporations Board Directors, who shall include up to two (2) Directors who reside in Clinton County. At all times, the Corporations Directors shall consist of the same individuals appointed by the Member to serve as directors of IU Health Arnett and IU Health White Memorial Hospital. Line 7b: The following are subject to IU Healths approval: - Any proposed amendment to the Corporations Articles of Incorporation or Bylaws; - Adoption of the Corporations annual capital and operating budgets; - Approval of any unbudgeted operating or capital budget items or deviations, including any issuance or guarantee of any unbudgeted debt, greater than the budgeted amount by (i) $250,000 per fiscal year per budget line item and (ii) $750,000 per fiscal year in the aggregate; provided, however, the foregoing limit shall be subject to change in the event certain performance standards are not met; - Approval of any strategic plan for the Corporation, including any amendments to a strategic plan; - Approval of any encumbrance, sale or conveyance of assets in excess of five percent (5%), on a cumulative basis, of the Corporations Net Book Value, during any fiscal year; - Any merger, consolidation, joint venture or affiliation involving the Corporation or any of its affiliates and any other entity; - Appointment and removal of the Corporations President and other officers; - Projects or contracts that require Member approval in accordance with the Members resolution and policy governing system-wide Contract Execution Authority and Payment Approval Limits; and - The dissolution of the Corporation or any of its affiliates. Part VI, Section A, Line 8b Documentation of Meetings IU Health Frankfort, Inc.s Board of Directors does not have any committees with the authority to act on behalf of the Board of Directors. Part VI, Section B, Line 11b Review of Form 990 The CFO reviewed and approved the Form 990. Following their review and approval, a complete copy of the Form 990 was made available to each board member prior to its filing. Each member was also informed of the availability of IU Healths Tax Department to answer any questions. Part VI, Section B, Lines 12, 13, 14, and 16b Policies IU Health Frankfort is part of the IU Health system. As the sole member and controlling parent of IU Health Frankfort, IU Health and its board of directors have mandated that certain policies be followed to ensure greater standardization throughout the system. Thus, IU Health Frankforts Board of Directors was not required to separately adopt a conflict of interest, whistleblower, document retention and destruction and joint venture policies because IU Healths Board of Directors had already adopted and required these policies to be followed by its subsidiaries. Part VI, Section B, Line 12c Conflict of Interest Policy IU Health Frankfort follows IU Healths Conflict of Interest Policy. IU Healths Conflict of Interest Policy includes the following provisions: All IU Health employees, associates, colleagues and contracted personnel, including employed physicians and paid medical directors ("IU Health Representatives") are covered by and subject to its Conflict of Interest Policy. IU Health regularly and consistently monitors and enforces compliance with the policy through the following procedures: (a) On an annual basis, each IU Health Representative at the level of Manager or above, together with every other person designated by the Corporate Compliance Department ("Department"), must complete, sign and submit a Conflict of Interest Questionnaire ("Questionnaire") to the Department. Governing board members, committee members, corporate officers, medical staff and researchers must comply with the administrative requirements noted in the respective policies and procedures relative to those areas. (b) An IU Health Representative must supplement a Questionnaire in writing, if after completion of the original Questionnaire, a situation arises, or may reasonably be expected to arise, that would change any answer or information on the original Questionnaire if the situation had existed or been anticipated at the time of completion of the original Questionnaire. (c) If a fully and properly completed Questionnaire reveals facts or other information that might reasonably indicate a Conflict of Interest or violation of the policy, the IU Health Representative completing the questionnaire must secure approval by his/her supervisor, evidenced in writing. (d) The Department will review each Questionnaire and determine whether a Conflict of Interest exists and, if so, whether and how it should or may be eliminated, avoided or managed in order to comply with the spirit of the policy and with the best interests of IU Health and its patients. In making the determination, the Corporate Compliance Department may consult with the IU Health Representatives supervisor and other appropriate individuals and groups. (e) The scope of the policy is not limited to those who are required to complete Questionnaires. If an IU Health Representative is involved in a situation or relationship that would constitute a violation of the policy in the absence of disclosure and approval as described above, then the IU Health Representative must disclose the matter to his/her supervisor, secure his/her supervisors approval in writing, and disclose the matter to the Department. Otherwise, the IU Health Representative is in violation of the policy and subject to corrective action, up to and including termination. (f) The Chief Compliance Officer, in consultation with onsite Compliance personnel, may from time to time appoint standing or ad hoc committees to assist in resolving issues that arise under provisions of the policy. Part VI, Section B, Line 15 Process for Determining Compensation IU Health Frankforts President is employed by IU Health Arnett. IU Health Arnett utilizes IU Health's process for determining compensation as follows: (1) The Board of Directors has established a Committee on Personnel and Compensation. The individuals on this Committee are made up of individuals who are on the Board and who do not have a conflict of interest with IU Health. There are no physicians or employees on this Committee. This Committee develops and reviews annually the executive compensation philosophy, market analysis as to comparability and reasonableness. One of the purposes of this Committee is to review, approve and make recommendations regarding executive compensation and benefits to the IU Health Board. As deemed appropriate, this Committee also reviews the same detail with the Committee on Finance. The Committee on Finance is represented by certain members of the Board as well. (2) Each year the Committee on Personnel and Compensation engages an outside compensation consulting firm to conduct a compensation and benefits study for all senior vice presidents and above. The current compensation advisor is the Hay Group. Hay Group performs an independent compensation survey. The relevant comparability data includes: compensation and benefit levels paid by similarly situated organizations (both governmental and tax exempt) for functionally comparable positions as well as the availability of similar services in the geographic area. The Committee reviews the entire compensation package including: base compensation, short term and long term incentive plans, basic health and welfare benefits, qualified and nonqualified plans as well as any additional fringe benefits. Further, Hay Group will provide recommendations based upon the reasonable compensation information as it relates to salary increases, bonuses and benefits that are consistent with the compensation philosophy of the Committee. A separate analysis using the same methodology is done for the Chief Executive Officer. (3) The Committee reviews the salary survey and, if appropriate, makes recommendations on increases in salary and any changes in bonuses or benefits. The Committee's goal is to ensure that the total compensation and benefits package is reasonable based upon the independent data provided by Hay Group. The Committee votes on any changes in compensation or benefits. This review, discussion and vote are documented in the minutes for the meeting. There are no executives present during the final discussion and approval of compensation. (4) The Board reviews the report prepared by the Hay Group as well as the recommendations of the Committee on Personnel and Compensation as to changes in compensation approved by the Committee. As requested, the Committee on Finance also provides its review of recommendations on changes in executive compensation and benefits. This review, discussion and vote are documented in the minutes. (5) The Board then reviews the recommendations provided by the Committee on Personnel and Compensation and votes on the changes as well. No additional compensation or benefits are paid to the executives until the changes have been approved by the Committee and the Board. The discussion and approval are documented in the minutes of the meeting. There are no executives present during the final discussion and approval of compensation. The General Counsel prepares a formal written opinion reviewing the compensation and benefits approval process, comparing that process to the Intermediate Sanctions Test of IRC Section 4958 and, if the facts warrant, provides comments regarding the compensation and benefits approval process as this relates to meeting the requirements for a rebuttable presumption of reasonableness as provided in the Intermediate Sanctions Test. (6) After the end of each year, the Committee and Board also reviews the achievements of the executive group as it relates to the long-term and short-term shared and individual goals developed by the executive and the Board. These achievements may also be reviewed with the Committee on Finance. The Board, at its discretion, may approve bonus payments based upon the achievement of the goals and the compensation survey. The discussion and vote of the Committee and Board is documented in the minutes for each such meeting. The bonuses are not paid until approval is made by the Board. (7) The Committee on Personnel and Compensation and Audit Committee also review the required Form 990 disclosures related to executive compensation and benefits as well as compensation practices and approval processes prior to the filing of the Form 990 return with the Internal Revenue Service. Part VI, Section C, Line 19 Public Disclosure IU Health Frankfort's Articles of Incorporation are available for public inspection through the Indiana Secretary of State's website. IU Health Frankfort's conflict of interest procedures are described on Form 990, Schedule O. IU Health Frankfort is a subsidiary in IU Health's Consolidated Audited Financial Statements. IU Health's Consolidated Audited Financial Statements are available for public inspection through its bond filings and as an attachment to IU Health's Form 990 as well as IU Health Frankfort's Form 990. Form 990, Part VII - ACRONYM DESCRIPTION THE ACRONYM FOR WEST CENTRAL REGION (WCR) IS USED THROUGHOUT FORM 990, MOST NOTABLY IN PART VII AND IN SCHEDULE J. 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