2018-02-15T15:36:47-06:00 2017-03-31 381357951 PLANTE & MORAN PLLC 750 Trade Centre Way Ste 300 Portage MI 49002 990 2016-04-01 381368347 ELLA E M BROWN CHARITABLE CIRCLE ELLA 2697814271 200 N MADISON STREET MARSHALL MI 49068 GINGER WILLIAMS MD FACEP FACHE President & CEO 2697814271 2018-02-15 1 Carol LaLonde CPA P00181637 2695674500 2018-02-15 2016 2022-09-23 18:48:47Z OAKLAWN HOSPITAL GREGG BEEG 200 N MADISON STREET MARSHALL MI 49068 228089524 0 X WWW.OAKLAWNHOSPITAL.ORG X 1925 MI WE WILL PROVIDE PERSONAL, ACCESSIBLE AND HIGH QUALITY CARE TO IMPROVE THE HEALTH AND WELL-BEING OF THE COMMUNITIES WE SERVE. 11 11 1235 212 0 0 276915 299889 129158814 141071742 1420704 1009659 3022278 3306452 133878711 145687742 0 0 0 0 66768903 71483166 0 0 0 63314394 71556641 130083297 143039807 3795414 2647935 180603591 172331463 108521330 94417780 72082261 77913683 X WE WILL PROVIDE PERSONAL, ACCESSIBLE AND HIGH QUALITY CARE TO IMPROVE THE HEALTH AND WELL-BEING OF THE COMMUNITIES WE SERVE. 0 0 62794203 78155219 NURSING - PATIENT CARE ON AN ACUTE LEVEL TO IN/OUT PATIENTS INCLUDING INTENSIVE CARE, OBSTETRICAL, EMERGENCY, SURGICAL AND PSYCHIATRIC. IN FISCAL YEAR 2017, THERE WERE 11,896 DAYS OF CARE, 3,811 ADMISSIONS, 833 BIRTHS, AND 5,444 SURGICAL PROCEDURES. 30312578 22283820 PHYSICIANS - PROVIDING CARE FOR INPATIENTS AND OUTPATIENTS. 9460955 8169910 PHARMACY - PROVIDING FULL PHARMACEUTICAL SERVICES TO INPATIENT AND OUTPATIENTS. 21030768 32462793 ANCILLARY DEPARTMENTS 21030768 32462793 123598504 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 163 0 1 1235 1 0 0 0 0 0 1 1 0 0 0 0 X 11 11 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 1 1 X GREGG BEEG 2697893921 200 N MADISON ST MARSHALL MI 49068 HEATHER LUCIANI Chair, Board of Directors 1.00 0.00 X X 0 0 0 JACK W TOWNSEND Vice Chair 1.00 0.00 X X 0 0 0 JOSEPH P PALCHAK Secretary/Treasurer 1.00 0.00 X X 0 0 0 BRUCE RASHER Director 1.00 0.00 X 0 0 0 EILEEN WICKLAND Director 1.00 0.00 X 0 0 0 THOMAS NEIDLINGER MD Director 1.00 0.00 X 0 0 0 MARK P O'CONNELL Director 1.00 0.00 X 0 0 0 REV TIMOTHY MARVIL Director 1.00 0.00 X 0 0 0 CATHERINE YATES Director 1.00 0.00 X 0 0 0 RON KITCHENS Director 1.00 0.00 X 0 0 0 E MICHAEL BECK DIRECTOR 1.00 0.00 X 0 0 0 JERRI-LYNN WILLIAMS-HARPER DIRECTOR - PART YEAR 1.00 0.00 X 0 0 0 GINGER WILLIAMS MD FACEP FACHE President & CEO 40.00 0.00 X 846695 0 8946 GREGG BEEG Chief Financial Officer 40.00 0.00 X 306192 0 14072 SHARON THOMAS-BOYD Chief Support & Ancillary 40.00 0.00 X 339053 0 19305 MARTIN GOINS III MD CHIEF OF STAFF 40.00 0.00 X 371612 0 21536 THERESA DAWSON CHIEF NURSING OFFICER 40.00 0.00 X 217454 0 6145 SUBHASH THAKUR MD 40.00 0.00 X 732967 0 26773 FARID ZAYED MD 40.00 0.00 X 539258 0 21473 MORAD TEHRANI MD 40.00 0.00 X 530700 0 14706 MICHAEL STERRETT MD 40.00 0.00 X 701180 0 8789 KURT PIATKOWSKI MD 40.00 0.00 X 598650 0 14425 5183761 0 156170 94 0 1 0 GORDON MARTIN BUILDERS INC PO BOX 717 ALBION MI 49224 CONSTRUCTION 2189048 AMERICAN HEALTHCARE SERVICES ASSOCIATION PO BOX 945 TRAVERSE CITY MI 49685 TEMPORARY LABOR 982972 BLUFISH 115 W MICHIGAN MARSHALL MI 49068 MARKETING CONSULTING 430918 LARRY LAZARO 3269 QUIGGLE AVE SE ADA MI 49301 SURGERY LOCUM TENENS 335800 SCHROEDER DEGRAW PLLC 203 E MICHIGAN AVE MARSHALL MI 49068 CORPORATE COUNSEL 335114 22 26870 273019 299889 NET PATIENT SERVICE REVENUE 621110 141071742 141071742 141071742 848304 848304 193582 0 193582 193582 193582 14455340 68041100 13996209 68338876 459131 -297776 161355 161355 117625 26870 66697 50928 50928 CAFETERIA REVENUE 722210 424878 424878 INCENTIVE BONUSES 900099 280783 280783 PHARMACY SERVICES 900099 211052 211052 2145229 2145229 3061942 145687742 141071742 0 4316111 1809198 399881 1409317 58596059 52943438 5652621 1032524 925133 107391 6245495 5520140 725355 3799890 3343903 455987 191138 2500 188638 76091 8777 67314 153840 131509 22331 11981382 9729522 2251860 607971 12693 595278 611426 224915 386511 1768702 1547601 221101 232782 218368 14414 295886 41597 254289 2987483 2553821 433662 8465295 7236475 1228820 688332 619477 68855 SUPPLIES 29012113 28303348 708765 BAD DEBT 6746024 6746024 CERTIFICATIONS 6605114 3445092 3160022 EQUIPMENT 906576 266977 639599 226486 -622687 849173 143039807 123598504 19441303 0 7372365 7617443 10098257 12214650 1803139 3143223 2174006 2467340 1577454 1677559 186438670 87482746 101172955 98955924 39578254 43453730 15348513 1355915 0 526013 1478648 919666 180603591 172331463 20714675 20094439 60510000 71398883 10906388 1683427 16390267 1241031 108521330 94417780 X 72082261 77913683 72082261 77913683 180603591 172331463 X 2647935 1741276 1442211 X 0 1 X 0 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 6721131 6721131 106853274 39368535 67484739 2672329 1464825 1207504 67802827 46649386 21153441 2389109 2389109 98955924 OTHER LIABILITIES 785895 OTHER DEBT 455136 1241031 148790591 1741276 6505 1442211 3189992 145600599 153840 -66697 87143 145687742 142959169 6505 66697 73202 142885967 153840 153840 143039807 Part XI, Line 2d - Other Adjustments: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP AGREEMENTS 1,442,211. Part XI, Line 4b - Other Adjustments: SPECIAL EVENT EXPENSE -66,697. Part XII, Line 2d - Other Adjustments: Special Event Expense 66,697. ANNUAL BENEFIT AUCTION 103119 19720 83399 10000 1300 17095 CLASSIC RACE 23486 23486 365 2000 1778 499 19306 3 17890 7150 10740 75 452 10273 200 3354 144495 26870 117625 365 2075 2230 20772 1500 39755 66697 50928 1 1 X 1 X 1 X 1 1 0 0 524420 524420 0.00380 21951935 6957796 14994139 0.11000 22476355 6957796 15518559 0.11380 22476355 6957796 15518559 0.11380 1 6746024 1011904 24298481 31254780 -6956299 X 1 1 1 ALBION DIALYSIS REAL ESTATE LLC REAL ESTATE 0.70000 0.00000 0.30000 2 OAKLAWN DIALYSIS CENTER OF ALBION LLC HEALTHCARE 0.55000 0.00000 0.30000 1 1 ELLA E M BROWN CHARITABLE CIRCLE 200 N MADISON STREET MARSHALL MI 49068 WWW.OAKLAWNHOSPITAL.ORG 864-281 X X X OAKLAWN HOSPITAL 1 0 0 1 X X X X X X X X 15 1 1 1 1 X http://oaklawnhospital.org/wp-content/uploads/2016/03/Calhoun-County-CHNA-2 X 1 15 1 HTTP://OAKLAWNHOSPITAL.ORG/ABOUT-US/COMMUNITY-HEALTH-NEEDS-ASSESSMENT/ 0 1 X 150.000000000000 250.000000000000 X X X X 1 1 X X X 1 X HTTPS://OAKLAWNHOSPITAL.ORG/PATIENT-TOOLS/FINANCIAL-ASSISTANCE-PROGRAM-FAP/ X http://oaklawnhospital.org/wp-content/uploads/2016/06/Application_Revised_0 X http://oaklawnhospital.org/wp-content/uploads/2016/03/About-Your-Bill-broch X X X X X 1 X 0 X X X X 1 X 0 0 OAKLAWN HOSPITAL Part V, Section B, Line 5: OAKLAWN HOSPITAL CONDUCTED THIS COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) TO FURTHER ITS COMMITMENT TO THE COMMUNITY AND TO FULFILL THE REQUIREMENTS OF THE AFFORDABLE CARE ACT. FOR THE PURPOSES OF THIS CHNA, THE DEFINITION OF COMMUNITY IS ALL RESIDENTS OF CALHOUN COUNTY, MICHIGAN. THIS CHNA BEGAN IN OCTOBER 2015 AND WAS COMPLETED AND APPROVED BY OAKLAWN'S BOARD OF DIRECTORS IN MARCH 2016. DATA ON HEALTH NEEDS WERE DERIVED USING THE FOLLOWING METHODS:1. DATA GATHERED AND ANALYZED FROM SECONDARY SOURCES SUCH AS US CENSUS, MICHIGAN DEPARTMENT OF COMMUNITY HEALTH, AND THE CENTER FOR DISEASE CONTROL (CDC)2. A COMMUNITY WIDE SURVEY3. GEOGRAPHIC AND DEMOGRAPHIC BASED FOCUS GROUPS (ALBION COMMUNITY, MARSHALL COMMUNITY, SENIORS, AND INDIVIDUALS CURRENTLY STRUGGLING WITH HOMELESSNESS AND SUBSTANCE ABUSE RECOVERY)4. KEY INFORMANT INTERVIEWS WITH REPRESENTATIVES KNOWLEDGEABLE IN THE COMMUNITY, SERVICE PROVIDERS, HEALTH CARE PROVIDERS, MEDICALLY UNDERSERVED POPULATIONS, MINORITY POPULATIONS, RURAL POPULATIONS, AND BUSINESSESTHIS DATA WAS ANALYZED TO IDENTIFY THE TOP HEALTH NEEDS OF RESIDENT'S OF CALHOUN COUNTY:1. ACCESS TO HEALTHCARE2. CHRONIC DISEASE MANAGEMENT3. HEALTHY LIFESTYLE EDUCATION & SUPPORT4. HEALTH DISPARITIES5. MENTAL HEALTH6. MATERNAL & INFANT HEALTH7. OBESITY & WEIGHT REDUCTION8. OLDER ADULT & SENIOR HEALTH9. SEXUAL HEALTH & STI'S OAKLAWN HOSPITAL Part V, Section B, Line 6a: IN 2015, OAKLAWN ELECTED TO JOIN WITH SEVERAL COMMUNITY PARTNERS COMING TOGETHER TO CARRY OUT A COUNTYWIDE CHNA, INCLUDING THE IDENTIFICATION OF PRIORITY HEALTH ISSUES AND STRATEGIES TO ADDRESS THOSE ISSUES. THE HOSPITAL FACILITY PARTNER INVOLVED IN THIS EFFORT INCLUDED BRONSON HEALTHCARE GROUP. OAKLAWN HOSPITAL Part V, Section B, Line 6b: IN 2015, OAKLAWN ELECTED TO JOIN WITH SEVERAL COMMUNITY PARTNERS COMING TOGETHER TO CARRY OUT A COUNTYWIDE CHNA, INCLUDING THE IDENTIFICATION OF PRIORITY HEALTH ISSUES AND STRATEGIES TO ADDRESS THOSE ISSUES. THE PARTNERS INVOLVED IN THIS EFFORT INCLUDED ALBION HEALTH ALLIANCE, BATTLE CREEK COMMUNITY FOUNDATION, CALHOUN COUNTY PUBLIC HEALTH DEPARTMENT, COMMUNITY HEALTHCARE CONNECTIONS, FOUNTAIN CLINIC OF MARSHALL, GRACE HEALTH, INTEGRATED HEALTH PARTNERS, NOTTAWASEPPI HURON BAND OF THE POTAWATOMI HEALTH DEPARTMENT, SENIOR HEALTH PARTNERS, SHARE CENTER, SUMMI POINTE, AND THE UNITED WAY OF BATTLE CREEK AND KALAMAZOO REGION. OAKLAWN HOSPITAL Part V, Section B, Line 11: OAKLAWN ELECTED TO JOIN WITH SEVERAL COMMUNITY PARTNERS COMING TOGETHER TO CARRY OUT A COUNTYWIDE CHNA, INCLUDING THE IDENTIFICATION OF TEN PRIORITY HEALTH ISSUES AND STRATEGIES TO ADDRESS THOSE ISSUES. THE COMMITTEE DEVELOPED A FRAMEWORK FOR COLLECTIVE ACTION THAT INCLUDES BROAD GOALS, POPULATION-BASED MEASURES, AND OVERACHING STRATEGIES FOR EACH OF THE TEN ISSUES IDENTIFIED. INCLUDED BELOW IS ONE STRATEGY EXAMPLE FOR THE GOAL FOR EACH HEALTH ISSUE:1. INCREASE THE PROPORTION OF ADULTS AND CHILDREN WHO ARE AT A HEALTHLY WEIGHT PROVIDE NUTRITION AND PHYSICAL ACTIVITY EDUCATION TO THE COMMUNITY2. INCREASE PROPORTION OF PEOPLE WITH ACCESS TO QUALITY, CULTURALLY COMPETENT PRIMARY AND SPECIALTY MEDICAL AND MENTAL HEALTH SERVICES PROVIDE TRANSPORTATION FOR INDIVIDUALS TO ACCESS SERVICES3. REDUCE THE RATE OF MORTALITY ASSOCIATED WITH DIABETES, HEART DISEASE, AND STROKE INCREASE SCREENINGS FOR CHRONIC DISEASES4. INCREASE THE PROPORTION OF PEOPLE WHO EXPERIENCE POSITIVE MENTAL AND EMOTIONAL WELL- BEING RECRUIT ADDITIONAL MENTAL HEALTH PROVIDERS5. REDUCE THE RATE OF TEEN PREGENCY AMONG ALL DEMOGRAPHIC GROUPS PROVIDE EDUCATION IN THE COMMUNITY ON TEEN PREGENCY6. INCREASE THE PROPORTION OF BIRTHS THAT HAVE A HEALTHY BIRTH OUTCOME PROVIDE HOME-VISITING PROGRAMS TO SUPPORT THE VULNERABLE MOTHERS AND THEIR CHILDREN7. REDUCE THE OVERALL USE/ABUSE OF TOBACCO, PRESCRIPTION DRUGS, RECREATIONAL SUBSTANCES, AND ALCOHOL PROMOTE BEST- PRACTICE POLICIES FOR REDUCING ADDICTIONS8. REDUCE CANCER MORTALITY RATES AMONG ALL DEMOGRAPHIC GROUPS INCREASE ACCESS TO CANCER SCREENING, REFERRAL, AND TREATMENT SERVICES9. REDUCE THE NUMBER OF CHILDREN AND ADULTS WITH DENTAL CARIES EXPERIENCE AND UNTREATED DENTAL DECAY PROVIDE COMMUNITY ACCESS TO ORAL HEALTH SERVICES IN THE COMMUNITY10. DECREASE THE PROPORTION OF THE POPULCATION WITH SEXUALLY TRANSMITTED INFECTIONS PROVIDE COMMUNITY EDUCATION ABOUT SEXUALLY TRANSMITTED INFECTIONSOAKLAWN HOSPITAL INTENDS TO ADDRESS ALL ISSUES IDENTIFIED IN THE MOST RECENTLY CONDUCTED CHNA TO SOME LEVEL. PART V, SECTION B, LINE 7A THE COMMUNITY HEALTH NEEDS ASSESSMENT CAN BE FOUND ON-LINE AT:http://oaklawnhospital.org/wp-content/uploads/2016/03/Calhoun-County-CHNA-2016-Oaklawn-rt2.pdf PART V, SECTION B, LINE 10A THE IMPLEMENTATION STRATEGY CAN BE FOUND ON-LINE AT: https://oaklawnhospital.org/about-us/community-health-needs-assessment/ 25 1 - Wright Medical Office Building 215 E Mansion Marshall MI 49068 Physician Clinics, Oncology/Chemo Clinic, Physician-Owned Condominiums, Offi 2 - Oaklawn Life Improvement Center 13697 15 Mile Road Marshall MI 49068 Fitness Center, PT & Wound Clinics 3 - OMG Beadle Lake 14231 Beadle Lake Road Battle Creek MI 49014 Physician & PT Clinic 4 - Brooks Building 310 E Michigan Ave Marshall MI 49068 Dialysis Clinic, PFS office 5 - OMG MIFM 14900 Old US-27 N Marshall MI 49068 Physician Clinic 6 - OFFICE BUILDING 13444 PRESTON DRIVE MARSHALL MI 49068 HOSPITAL OFFICE 7 - Oaklawn Psychological Services 15209 W Michigan Marshall MI 49068 Psychological Clinic 8 - Ricketson Building 103 E Mansion Marshall MI 49068 Physician Clinic, HIM office, Women's Diagnostic Services, Cardiac & Pulmona 9 - OMG Specialty Clinic 203 Winston Drive Marshall MI 49068 Physician Clinics 10 - OMG Albion 300 B Drive N Albion MI 49224 Physician & PT Clinic 11 - Oaklawn Specialty Clinic 111 S Hamilton Marshall MI 49068 Physician Clinic 12 - OMG Tekonsha 2218 Old US 27 N Tekonsha MI 49092 Physician Clinic 13 - OMG Olivet 202 North Main Olivet MI 49076 Physician & PT Clinic 14 - Staff Lodging House 215 High Marshall MI 49068 On-call staff lodging 15 - Oaklawn Holistic Center Rental Property 15217 W Michigan Marshall MI 49068 Physician Clinic 16 - OMG Central Billing Office 106 E Michigan Marshall MI 49068 Leased space - physician billing office 17 - OMG Bellevue 205 North Main Bellevue MI 49021 Physician Clinic 18 - OMG Homer 420 S Hillsdale Homer MI 49245 Physician Clinic 19 - Oaklawn Homecare 122 High Marshall MI 49068 Home Health Care 20 - Oaklawn Home Medical Equipment 413 E Michigan Marshall MI 49068 Durable Medical Equipment 21 - Oaklawn Sleep Center 401 E Michigan Marshall MI 49068 Physician Clinic 22 - Oaklawn Hospice 110 High Marshall MI 49068 Hospice 23 - Office Building 116 E Prospect Marshall MI 49068 Hospital office 24 - OMG Orthopedics 1174 W Michigan Marshall MI 49068 Leased space -Physician Clinic 25 - Draw Station 115 Market Place Albion MI 49224 Laboratory draw station Part I, Line 7: A COST-TO-CHARGE RATIO WAS USED TO COMPLETE THE CHARITY CARE (LINE 7A) AND MEANS-TESTED GOVERNMENT PROGRAMS (LINE 7B). THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2 THAT ACCOMPANIES THE INSTRUCTIONS TO THIS SCHEDULE. Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 6,746,024. Part II, Community Building Activities: THE COMMUNITY BUILDING ACTIVITIES THAT OAKLAWN PARTICIPATES IN INCLUDE SERVING ON COMMITTEES AND BOARDS WITHIN THE COMMUNITY AND SURROUNDING AREAS. THESE INCLUDE BUT ARE NOT LIMITED TO, REGIONAL HEALTH ALLIANCE, FOUNTAIN CLINIC BOARD, MARSHALL SCHOOL BOARD, CISD SCHOOL WELLNESS PROGRAM AND HABITAT FOR HUMANITY. THESE AND OTHER ORGANIZATIONS WORK TO PROMOTE AWARENESS OF HEALTHY LIVING ALONG WITH ECONOMIC DEVELOPMENT. WHEN AN ECONOMY IS HEALTHY THE RESIDENTS ARE HEALTHIER. Part III, Line 2: FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYOR HAS NOT YET PAID, OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE HOSPITAL RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IN THE PERIOD IT IS DETERMINED TO BE UNCOLLECTIBLE. Part III, Line 3: MANAGEMENT BELIEVES THAT APPROXIMATELY 15% OF THE TOTAL BAD DEBT EXPENSE SHOULD BE TREATED AS COMMUNITY BENEFIT. Part III, Line 4: ACCOUNTS RECEIVABLE FOR PATIENTS, INSURANCE COMPANIES, AND GOVERNMENTAL AGENCIES ARE BASED ON GROSS CHARGES. AN ALLOWANCE FOR CONTRACTUAL ADJUSTMENTS AND INTERIM PAYMENT ADVANCES IS BASED ON EXPECTED PAYMENT RATES FROM PAYORS BASED ON CURRENT REIMBURSEMENT METHODOLOGIES. ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALULATING THE COLLECTIBILITY OF ACCOUNTS RECEIVABLE, THE HOSPITAL ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE HOSPITAL ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYOR HAS NOT YET PAID, OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY). FOR RECIEVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE HOSPITAL RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IN THE PERIOD IT IS DETERMINED TO BE UNCOLLECTIBLE. Part III, Line 8: THE MEDICARE SURPLUS (SHORTFALL), TAKEN FROM THE MEDICARE COST REPORT, WAS CALCULATED USING A COST-TO-CHARGE RATIO METHODOLOGY. THE MARCH 31, 2017 MEDICARE COST REPORT WAS UTILIZED FOR THIS TAX RETURN. ALL OF THE MEDICARE SHORTFALL SHOULD BE CONSIDERED A COMMUNITY BENEFIT BECAUSE SERVICES WERE PROVIDED AT LESS THAN OUR COSTS. Part III, Line 9b: IF THE PATIENT QUALIFIES FOR CHARITY, THE CHARITY WRITE-OFF IS TAKEN REGARDLESS OF THE PAYMENT OF THE BALANCE, WHICH WILL FOLLOW THE NORMAL BILLING CYCLE. EVERY ATTEMPT SHOULD BE MADE TO SECURE PAYMENT ARRANGEMENTS FOR THE BALANCE OWING AT THE TIME THE CHARITY CARE IS APPROVED. PROMPT PAY DISCOUNTS DO NOT APPLY SINCE THE ACCOUNT HAS ALREADY BEEN DISCOUNTED. Part VI, Line 2: DURING ANNUAL BUDGET REVIEW AND PLANNING CYCLES, OAKLAWN ASSESSES THE HEALTHCARE NEEDS OF THE PEOPLE IN COMMUNITIES IT SERVES THROUGH PUBLIC HEALTH DATA PROVIDED AT THE COUNTY LEVEL BY CALHOUN DEPARTMENT OF PUBLIC HEALTH AND THE COORDINATING COUNCIL. THESE RESOURCES ARE COMPLEMENTED BY THE HOSPITAL'S PROPRIETARY SERVICE UTILIZATION DATA, ALONG WITH MARKET DATA FROM THE MICHIGAN INPATIENT AND OUTPATIENT DATABASES (MIDB/MODB) AND SYNDICATED PUBLIC HEALTH/USAGE DATA TO WHICH IT SUBSCRIBES. OAKLAWN FURTHER REQUIRES THAT COMMUNITY/PATIENT HEALTH NEED BE ESTABLISHED AS PART OF JUSTIFYING NEW OR EXPANDED SERVICES, AND CAPITAL EXPENDITURES.ULTIMATELY, A COMMUNITY HEALTH NEEDS ASSESSMENT IS THE PROCESS OF GATHERING INFORMATION AND FEEDBACK ABOUT THE HEALTH STATUS OF A COMMUNITY TO IDENTIFY PROGRAMS AND INITIATIVES THAT WILL CONTRIBUTE TO IMPROVED HEALTH STATUS. DURING FISCAL YEAR ENDED 3/31/16, OAKLAWN CONDUCTED A FORMAL COMMUNITY HEALTH NEEDS ASSESSMENT OF THE 22 ZIP CODES IN ITS SERVICE AREA. CONSISTENT WITH THE MARCH 2010 PATIENT PROTECTION AND AFFORDABLE CARE ACT OF 2010, OAKLAWN'S INITIATIVE HAS FOUR KEY FEATURES:A. INFORMATION AND FEEDBACK OBTAINED FROM A VARIETY OF SOURCES.B. COMMUNITY LEADERS, HEALTH CARE PROVIDERS, RESIDENTS AND OTHER KEY AUDIENCES FULLY PARTICIPATE IN THE PROCESS.C. PROCESS SERVES TO IDENTIFY, THEN PRIORITIZE, UNMET OR UNDER-MET HEALTH NEEDS.D. RESULTS UTILIZED TO DEVELOP AND IMPLEMENT PROGRAMS AND INITIATIVES THAT CONTRIBUTE TO IMPROVED HEALTH STATUS IN OAKLAWN'S SERVICE AREA. Part VI, Line 3: OAKLAWN HOSPITAL MAKES BROCHURES CALLED "ABOUT YOUR HOSPITAL BILL" WHICH ARE AVAILABLE TO OUR PATIENTS BY HANDING THEM OUT AND HAVING THEM IN WAITING ROOMS ETC. OAKLAWN HOSPITAL CALLS PATIENTS THAT HAVE LARGE BALANCES ($5,000 AND OVER) AND MAKE THEM AWARE OF THE ASSISTANCE THAT IS AVAILABLE. OAKLAWN HOSPITAL INCLUDES A STANDARD MESSAGE ON OUR STATEMENTS MAKING PATIENTS AWARE THAT ASSISTANCE MAY BE AVAILABLE. PATIENTS ARE ALSO EDUCATED ABOUT ASSISTANCE AVAILABLE WHEN HARDSHIP IS MENTIONED (INCLUDING INABILITY TO PAY TIMELY AND/OR NEEDING LONG TERM PAYOFFS) DURING PHONE CALLS WITH PATIENT FINANCIAL SERVICES. REGISTRARS ARE ALSO TRAINED TO DIRECT PATIENT TO PFS IF THEY EXPRESS ANY CONCERN WITH PAYING THEIR BILL.OAKLAWN HOSPITAL'S PATIENT CARE RESPONSIBILITY COVERS HEALTH CARE NEEDS FOR UNDERINSURED AND UNINSURED AREA RESIDENTS SEEKING TREATMENT THROUGH OUR EMERGENCY AND URGENT CARE FACILITIES, AND AT THE HOSPITAL. OAKLAWN WORKS PROACTIVELY TO ENROLL QUALIFIED AREA RESIDENTS IN OUR CHARITY CARE PROGRAM, AND TO ASSIST THEM WITH MEDICAID APPLICATIONS IF APPROPRIATE. THIS SUPPORTS THE ACTUAL CARE PROCESS NOT ONLY FOR PATIENTS BUT FOR PROVIDERS AS WELL. IT SAVES THE HOSPITAL TIME AND EFFORT, AND KEEPS PEOPLE FROM HAVING MORE SUBSTANTIAL PROBLEMS WITH CREDIT AGENCIES. OAKLAWN'S PATIENT CARE SUBSIDIES TO ASSIST THE AREA'S UNINSURED AND UNDERINSURED RESIDENTS HAVE INCREASED STEADILY SINCE 2000, AND MORE MARKEDLY IN THE PAST THREE YEARS DUE TO THE ECONOMY. OAKLAWN IS SIMILAR TO ALL NONPROFIT HOSPITALS AND WILL WRITE OFF LARGE AMOUNTS OF MONEY EACH YEAR AS THE NUMBER OF PEOPLE WHO SIMPLY CANNOT PAY FOR THEIR HEALTHCARE SERVICES PERSISTS AT A HIGH LEVEL. THESE PEOPLE INCLUDE THOSE WHO:- HAVE ABSOLUTELY NO INSURANCE;- ARE "UNDERINSURED AND CANNOT AFFORD TO MAKE UP THE DIFFERENCE OF WHAT THEIR INSURANCE PAYS FOR THE ACTUAL COSTS INCURRED FOR THEIR CARE;- ARE PART OF THE UNDER-REIMBURSED MEDICARE OR MEDICAID PROGRAMS.OAKLAWN HOSPITAL PROVIDES PATIENT CARE WITHOUT DISCRIMINATION ON THE BASIS OF RACE, SEX, OR RELIGIOUS AFFILIATION. CHARITY CARE NEEDS ARE DETERMINED IN ACCORDANCE WITH ESTABLISHED GUIDELINES THAT ARE UPDATED ANNUALLY BY THE FEDERAL CENTER FOR MEDICARE AND MEDICAID SERVICES (FORMERLY THE DEPARTMENT OF HEALTH & HUMAN SERVICES). THOSE RECEIVING COMPENSATED PATIENT CARE INCLUDE ALL AGES AND BOTH GENDERS, AND MAY BE ASSISTED FOR MENTAL HEALTH AS WELL AS MEDICINE AND MEDICAL CARE. OAKLAWN DOES NOT RECORD AND TRACK RACIAL/ETHNIC GROUPS OF OUR PATIENTS IN PROVISION OF CHARITY CARE. Part VI, Line 4: OAKLAWN HOSPITAL'S SERVICE AREA INCLUDES CALHOUN COUNTY, MICHIGAN, AND PARTS OF BRANCH AND EATON COUNTIES. OVERALL, THE HOSPITAL SERVES AN ESTIMATED MARKET POPULATION OF 178,840 FROM THE 22 ZIP CODES COMPRISING ITS SERVICE AREA. ACCORDING TO THE US CENSUS FINDINGS, CALHOUN COUNTY'S POPULATION (CLOSEST PROXY TO THE SERVICE AREA) SKEWS SIGNIFICANTLY OLDER THAN NATIONAL AND STATE AVERAGES, AT A MEDIAN AGE OF 39.2 YEARS COMPARED TO 37.6 AND 37.2 YEARS RESPECTIVELY. BY RACE AND ETHNICITY, 96.9% OF THE COUNTY'S POPULATION SELF-REPORTS AS ONE RACE, VERSUS 97.7% (MICHIGAN) AND 97.3% (US). IT IS 82.2% WHITE; 10.9% BLACK/AFRICAN AMERICAN; 0.6% AMERICAN INDIAN/ALASKA NATIVE; AND 1.6% ASIAN. THE COUNTY'S CENSUS SHOWED 4.5% CLAIM HISPANIC/LATINO OF ANY RACE. OAKLAWN WAS FOUNDED IN 1925 AS A 12-BED HOSPITAL IN A RESIDENTIAL HOME IN MARSHALL, MICHIGAN, AND HAS SINCE EVOLVED INTO A HIGHLY-REGARDED REGIONAL HEALTH CARE ORGANIZATION, LICENSED FOR 77 ACUTE CARE BEDS AND A 17-BED INPATIENT PSYCHIATRIC UNIT. ITS ACTIVE, COURTESY, AND CONSULTING MEDICAL STAFF CONSISTS OF MORE THAN 150 PHYSICIANS REPRESENTING 34 SPECIALTIES. THE HOSPITAL HAS CONTINUED TO BE AN INDEPENDENTLY OWNED NON-PROFIT HOSPITAL, WITH ITS MAIN CAMPUS RESIDING ON THE SAME SITE AS THE ORIGINAL HOSPITAL. Part VI, Line 5: HOSPITALS ARE ALREADY KNOWN AS LOCAL CAREGIVERS AND MAJOR EMPLOYERS, BUT THEY MUST ALSO BECOME MORE RECOGNIZED AS COMMUNITY STEWARDS, AFFIRMING THEIR PURPOSE AS TAX-EXEMPT ENTITIES. THE MICHIGAN HOSPITAL & HEALTH ASSOCIATION'S ANNUAL COMMUNITY BENEFITS SURVEY IS OAKLAWN HOSPITAL'S PRIMARY OPPORTUNITY TO PRESENT THE ENTIRETY OF ITS COMMUNITY BENEFIT PROGRAMS AND SERVICES AND TO PROMOTE THE SUCCESS AND IMPACT OF THESE PROGRAMS AND SERVICES. OAKLAWN'S "COMMUNITY BENEFITS" REACHED $17,774,209 IN 2010, THE MOST RECENT REPORTING YEAR AVAILABLE. THE HOSPITAL CONTRIBUTED FINANCIAL OR IN-KIND BENEFITS OF $635,699 TOWARD IMPROVED HEALTH SERVICES, $1,765,000 IN MEDICAL EDUCATION AND RESEARCH, AND $293,246 TO COMMUNITY-BUILDING EFFORTS. OAKLAWN PROVIDED $15.08 MILLION IN UNCOMPENSATED MEDICAL CARE IN 2010, INCLUDING $672,702 IN CHARITY CARE, $2,216,000 IN BAD DEBTS, AND $12,191,672 IN "BELOW COST" REIMBURSEMENTS FROM MEDICAID, MEDICARE, AND OTHER GOVERNMENT-AUTHORIZED PROGRAMS.A MONTHLY "WHAT'S HAPPENING AT OAKLAWN" SCHEDULE IS PUBLISHED IN AREA NEWSPAPERS AND ONLINE AT OAKLAWN'S WEB SITE TO SHOWCASE THE MONTH'S COMMUNITY PROGRAM OFFERINGS AND EVENTS. FURTHER, OAKLAWN ALIGNS WITH AREA SCHOOLS, COMMUNITY AGENCIES, HEALTH CLINICS, AND HEALTHCARE COLLABORATIONS TO PROVIDE EXPERTISE, SERVICES AND PUBLIC HEALTH EVENT SUPPORT ONGOING. Part VI, Line 7, Reports Filed With States MI X 1 1 X X X 1 1 0 0 0 0 0 1 0 GINGER WILLIAMS MD FACEP FACHE President & CEO 446844 0 126456 0 273395 0 5300 0 3646 0 855641 0 0 0 GREGG BEEG Chief Financial Officer 256480 0 49712 0 0 0 5300 0 8772 0 320264 0 0 0 SHARON THOMAS-BOYD Chief Support & Ancillary 191588 0 31265 0 116200 0 4505 0 14800 0 358358 0 0 0 MARTIN GOINS III MD CHIEF OF STAFF 337000 0 17600 0 17012 0 5300 0 16236 0 393148 0 0 0 THERESA DAWSON CHIEF NURSING OFFICER 184154 0 33300 0 0 0 4381 0 1764 0 223599 0 0 0 SUBHASH THAKUR MD 522953 0 201000 0 9014 0 5300 0 21473 0 759740 0 0 0 FARID ZAYED MD 539258 0 0 0 0 0 0 0 21473 0 560731 0 0 0 MORAD TEHRANI MD 386968 0 0 0 143732 0 0 0 14706 0 545406 0 0 0 MICHAEL STERRETT MD 530000 0 171180 0 0 0 5300 0 3489 0 709969 0 0 0 KURT PIATKOWSKI MD 586900 0 0 0 11750 0 5300 0 9125 0 613075 0 0 0 Part I, Line 1a THE ORGANIZATION PROVIDES A FITNESS CLUB MEMBERSHIP TO ALL EMPLOYEES. Part I, Lines 4a-b MORAD TEHRANI RECEIVED A SEVERANCE PAYMENT DURING THE YEAR IN THE AMOUNT OF $143,732. GINGER WILLIAMS, SHARON BOYD-THOMAS, THERESA DAWSON, AND GREGG BEEG ALL PARTICIPATED IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN. Part I, Line 7 ORGANIZATION HAS A BONUS PLAN IN PLACE, IT IS BASED ON THE INDIVIDUAL ACHIEVEMENT OF PRESET OAKLAWN HOSPITAL GOALS. THESE GOALS ARE A COMBINATION OF FINANCIAL, CLINICAL, DEVELOPMENT AND INDIVIDUAL SPECIFIC OBJECTIVES. THE DETERMINATION OF THE ACHIEVEMENT OF THESE GOALS IS MADE BY THE PRESIDENT/CEO AND FOR THE PRESIDENT/CEO BY THE BOARD OF DIRECTORS. A COUNTY OF CALHOUN HOSPITAL FINANCE AUTHORITY 386004358 noneavail 2008-11-05 8000000 CURRENT REFUND OF PRIOR BOND ISSUE 0 0 0 B COUNTY OF CALHOUN HOSPITAL FINANCE AUTHORITY 386004358 12964UAK8 2016-11-01 68516856 CURRENT REFUND OF PRIOR BOND ISSUE 0 0 0 A 3690000 8000000 8000000 2008 1 0 1 1 B 68517019 1253297 67158531 105191 2018 1 0 0 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 1 1 0 0 0 1 B 0 1 0 0 0 0 0 0 1 A 1 B 1 PART I, LINE A, COLUMN (F): DATE OF ISSUANCE OF PRIOR BOND ISSUE CURRENTLY REFUNDED: 12/22/2005 PART I, LINE B, COLUMN (F): ALSO REFINANCED CONVENTIONAL BANK LOANS AND FINANCED TERMINATION OF THREE QUALIFIED HEDGES RELATING TO REFUNDED BOND ISSUES PART I, LINE B, COLUMN (F): DATES OF ISSUANCE OF PRIOR BOND ISSUES CURRENTLY REFUNDED: 12/22/2009, 12/22/2009, 12/23/2010 PART II, LINE 3, COLUMN (B): DIFFERENCE BETWEEN THIS FIGURE AND THAT IN PART 1, LINE D, COLUMN (E) ATTRIBUTABLE TO INVESTMENT EARNINGS PART II, LINE 11, COLUMN (B): SUM EQUAL TO PROCEEDS SPENT ON CURRENT REFUNDINGS OF PRIOR BOND ISSUES + REFUNDINGS OF CONVENTIONAL BANK LOANS + TERMINATION OF QUALIFIED HEDGES PART II, LINE 12, COLUMN (B): PROCEEDS PENDING DISBURSEMENT FOR COSTS OF ISSUANCE DURING 2018 PART IV, LINE 2C, COLUMN (A): DATE OF COMPUTATION WAS OCTOBER 31, 2013 Form 990, Part VI, Section B, line 11b A DRAFT OF THE FORM 990 IS REVIEWED BY THE CFO AND PRESIDENT/CEO. Form 990, Part VI, Section B, line 12c THE CONFLICT OF INTEREST POLICY IS SUBMITTED TO EACH BOARD MEMBER ANNUALLY AND EACH MEMBER ACKNOWLEDGES RECEIPT IN WRITING S0 THAT THE MEMBERS ARE CONTINUOUSLY AWARE OF THE POLICY. IT IS THE DUTY OF THE COMPLIANCE OFFICER TO PERIODICALLY MONITOR COMPLIANCE WITH THE POLICY AND REPORT THE RESULTS OF THIS REVIEW TO THE BOARD OF DIRECTORS. After the material information has been disclosed and the potential conflict analyzed, if no conflict of interest exists, the disclosure, analysis and resolution shall be documented and submitted as directed in the above procedure. If a conflict is identified, then measures shall be instituted for management of the conflict. In most instances, disclosure of the conflicting or potentially conflicting interest may itself suffice to protect the integrity of the activity. In other words, once such a conflict is fully disclosed to the pertinent parties, often they will be able to take into consideration the possible influence of disclosed interest. For those instances where disclosure alone will not protect the integrity of the activity, conflict resolution strategies may include, but are not limited to, the following: - Full disclosure of potential conflicts to the decision-making body before action is taken that may be affected by the potential conflict - Removal from a part(s) of the decision-making process - Removal from final decision-making process - Retention of equity until decision is completed Form 990, Part VI, Section B, line 15 A BOARD SUBCOMMITTEE REVIEWS THE COMPENSATION PACKAGE ANNUALLY WITH THE ASSISTANCE OF AN INDEPENDENT CONSULTING FIRM. THE MOST RECENT YEAR THIS PROCESS WAS UNDERTAKEN WAS FISCAL YEAR ENDING MARCH 31, 2017. Form 990, Part VI, Section C, line 19 DOCUMENTS ARE AVAILABLE UPON REQUEST Form 990, Part XI, line 9: change in fair value of interest swap agreements 1,442,211. ALBION DIALYSIS REAL ESTATE LLC 203 NORTH MADISON MARSHALL MI 49068 811548893 REAL ESTATE MI ELLA E M BROWN CHARITABLE CIRCLE (DBA OAKLAWN HOSPITAL) EXCLUDED 33389 1757046 0 1 0.70000 OAKLAWN PAIN MANAGEMENT CENTER LLC 200 N MADISON AVE MARSHALL MI 49068 474876605 HEALTHCARE MI ELLA E M BROWN CHARITABLE CIRCLE (DBA OAKLAWN HOSPITAL) EXCLUDED 63548 102453 0 1 0.51000 OAKLAWN DIALYSIS CENTER OF ALBION LLC 350 B DRIVE NORTH ALBION MI 49233 474284465 HEALTHCARE MI ELLA E M BROWN CHARITABLE CIRCLE (DBA OAKLAWN HOSPITAL) EXCLUDED -143489 1292290 0 1 0.55000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0