2018-07-16T14:35:04-05:00 2017-08-31 346565596 Ernst & Young US LLP 1900 Scripps Center 312 Walnut Street Cincinnati OH 45202 990 2016-09-01 610654587 Baptist Health Madisonville Inc BAPT 2708255201 900 Hospital Drive Madisonville KY 42431 Robert Ramey President 5028965000 2018-07-16 1 Tricia M Johnson P00627205 5136121400 2016 2022-09-23 18:48:47Z Stephen R Oglesby 2701 Eastpoint Pkwy Louisville KY 40223 188766167 0 X www.baptisthealthmadisonville.com X 1956 KY Our mission is to demonstrate the love of Christ by providing and coordinating care and improving health in our communities. Our vision is to lead in clinical excellence, compassionate care, and growth to meet the needs of our patients. Baptist Health Madisonville will live out its Christ-centered mission and achieve its vision guided by integrity, respect, excellence, collaboration and joy. 10 9 1890 77 3041 109 941149 1416685 135538004 148681259 1094042 3263063 62235144 27817776 199808339 181178783 633604 340682 0 0 85022672 85163531 0 0 0 102802639 97926133 188458915 183430346 11349424 -2251563 188176177 177861150 23958218 15253540 164217959 162607610 X Our mission is to demonstrate the love of Christ by providing and coordinating care and improving health in our communities. Our vision is to lead in clinical excellence, compassionate care, and growth to meet the needs of our patients. Baptist Health Madisonville will live out its Christ-centered mission and achieve its vision guided by integrity, respect, excellence, collaboration and joy. 0 0 170511520 340682 170997075 See Schedule O. 170511520 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 1 0 1 170 0 1 1890 1 1 1 0 0 0 0 0 0 0 X 10 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X Stephen R Oglesby 5028965000 2701 Eastpoint Parkway Louisville KY 40223 Steven R Cox Chairman & Director 1.00 0.00 X X 0 3000 0 Linda Thomas PHD Vice Chairman & Director 1.00 0.00 X 0 3000 0 Janet R Berry Director 1.00 0.00 X 0 3000 0 Barry Eveland Director 1.00 0.00 X 0 3000 0 Kent T Mills Director 1.00 0.00 X 0 3000 0 Ron Poole Director 1.00 0.00 X 0 3000 0 Amy Sanderson Director 1.00 0.00 X 0 3000 0 Jason Vincent Director 1.00 0.00 X 0 3000 0 Linda Q Zellich Director 1.00 0.00 X 0 3000 0 Diana Nims Director (1/1/16) & Physician 40.00 0.00 X 299505 0 22823 Allen C Rudd Director (Through 12/31/16) 1.00 2.00 X 0 3000 0 Imran Dosani MD Director (Through 12/31/16) 1.00 0.00 X 0 3000 0 Robert Ramey President 40.00 0.00 X 0 357341 26567 Stephen C Hanson System CEO (Through 3/21/17) 1.00 40.00 X 0 1080344 269953 Carl Herde VP & Treasurer (Through 8/31/16) 1.00 40.00 X 0 687401 46265 Janet Norton VP, Secretary, Interim Co-CEO 1.00 40.00 X 0 806859 48374 Stephen R Oglesby VP, Treasurer, Interim Co-Ceo 1.00 40.00 X 0 399453 61365 Ursula Dugger Assistant Secretary 40.00 0.00 X 51522 0 3364 William McColl Medical Physicist 40.00 0.00 X 220282 0 36106 Richard Blair Physician 40.00 0.00 X 226950 0 6911 Robert L Wood Physician 40.00 0.00 X 317630 0 36561 Tara Henson Physician 40.00 0.00 X 388238 0 23805 Kimberly Ashby Vice President of Finance 40.00 0.00 X 209514 0 13662 Mark Fitzmaurice MD Director (Through 12/14) 0.00 2.00 X 0 171653 967 Andy Sears Vice Chair (Through 12/14) 1.00 40.00 X 0 443214 37892 Isaac Myers MD Vice President 1.00 40.00 X 0 623212 145034 1713641 4602477 779649 52 1 1 0 Southeastern Emergency Physicians 3920 Dutchmans Lane Louisville KY 40207 Medical Staffing 3250014 Aramark CTS Inc 12483 Collections Center Drive Chicago IL 60693 Biomedical Services 1751668 Fresenius Medical Care 920 Winter Street Waltham MA 02451 Physician Services 473462 Siemens Medical Systems 51 Valley Stream Parkway Malvern PA 19355 Service Contract 440336 Logans PO Box 643958 Cincinnati OH 45264 Service Contract 353169 23 1212896 203789 1416685 Patient Service Rev 621110 136435944 136432903 3041 Home Health & Hospice 621610 4882231 4882231 Fam Practice Residency 611600 3428955 3428955 Other 611600 3088249 3088249 Anesthesia Program 611600 845880 845880 148681259 727273 727273 4828443 2169504 2658939 2658939 2658939 3057810 0 522020 3057810 -522020 2535790 2535790 26964141 4895860 22068281 22068281 Cafeteria Sales 722210 1995902 1995902 Fitness Center 541700 545623 545623 Gift Shop Revenue 453220 141105 141105 407926 250576 157350 3090556 181178783 170997075 3041 8761982 X 340682 340682 1342539 1342539 3043 3043 67324372 65908592 1415780 3036381 3014710 21671 8391870 6968835 1423035 5065326 4508812 556514 1199392 688431 510961 47756 47756 19822 19822 26509400 22310104 4199296 38924 29934 8990 2277603 1866895 410708 10287 7307 2980 3873669 2970659 903010 467862 202638 265224 55946 38131 17815 486002 486002 12704446 11517434 1187012 2835436 2127914 707522 Medical Supplies 33669110 33669110 Purchased Svcs-Non-Med 10014651 9370099 644552 Provider Tax 2574530 2574530 Minor Equipment 730640 730640 410657 320481 90176 183430346 170511520 12918826 0 13464 13152 8301457 6885589 35176436 25470533 72175 15381 3499573 3620174 596007 2007928 228718180 152230247 83970951 76487933 53197423 58064181 3348691 5296279 188176177 177861150 12707429 8700068 6198621 5437352 5052168 1116120 23958218 15253540 X 164217959 162492386 115224 164217959 162607610 188176177 177861150 X -2251563 765812 -124598 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 0 0 1 19822 19822 0 Part II-B, Line 1: The organization and certain employees are members of various associations that attribute a portion of their dues to lobbying expense. The organization has disclosed a lobbying expense allocation of $19,822 per Form 990. These associations include the American Medical Association, the Kentucky Hospital Association, the Kentucky Medical Association, and various others. 0 181325 66101 115224 171094 890 171984 0 164488 5625 -981 171094 164559 4023 4094 164488 159404 9552 4397 164559 1.00000 0 0 9879050 9879050 104629226 57176846 47452380 107998082 90515075 17483007 6211822 4538326 1673496 76487933 MCC Building Pledge 200000 Third Party Payables 916120 1116120 Part V, Line 4: Endowment funds are used to support patient care initiatives. 1 1 1 X 1 X 1 1 1 0 1 1 4065953 862632 3203321 0.01730 39019767 38610522 409245 0.00220 43085720 39473154 3612566 0.01950 613490 613490 0.00330 6297824 833513 5464311 0.02980 16922115 10365721 6556394 0.03550 210515 210515 0.00110 1188887 1188887 0.00650 25232831 11199234 14033597 0.07620 68318551 50672388 17646163 0.09570 216 216 0.00000 7054 7054 0.00000 7270 7270 0.00000 1 716959 52390352 63567611 -11177259 X 1 1 1 1 Baptist Health Madisonville 900 Hospital Drive Madisonville KY 42431 www.baptisthealthmadisonville.com 100184 X X X Baptist Health Madisonville 1 0 0 1 X X X X X X X X 14 1 0 0 1 X www.baptisthealthmadisonville.com X X 1 14 1 www.baptisthealthmadisonville.com 0 1 X 200.000000000000 400.000000000000 X X X X X 1 1 X X X X 1 X www.baptisthealthmadisonville.com X www.baptisthealthmadisonville.com X www.baptisthealthmadisonville.com X X X X X 1 X 0 X X X X X 1 X 0 0 Baptist Health Madisonville Part V, Section B, Line 5: Input From Community Representatives:Interviews with 25 key informants were conducted over a three day period. Interviewees were determined based on:a) specialized knowledge or expertise in public health b) their affiliation with local government, schools, or industry or c) their involvement with underserved and minority populations.All interviews were conducted using a standard questionnaire. A summary of their opinions is reported without judgment as to the truthfulness or accuracy of their remarks. Community leaders provided comments on the following issues: health and quality of life for residents of the primary community, barriers to improving health and quality of life for residents of the primary community, opinions regarding the important health issues that affect Hopkins, Webster and Muhlenberg county residents and the types of services that are important for addressing these issues, and delineation of the most important healthcare issues discussed and actions necessary for addressing these issues. Name and organizational affiliations were not connected to the information presented in the report. Key informants from the community worked for the following types of organizations and agencies: social service agencies, local school system and community college, local city and county government, public health agencies, industry, faith community, and medical providers. Baptist Health Madisonville Part V, Section B, Line 7d: Availability of CHNA Report:Copies of the CHNA were distributed internally and externally to those who participated in the needs assessment (individuals and organizations). Baptist Health Madisonville Part V, Section B, Line 11: CHNA Significant Needs:Baptist Health Madisonville's approach to providing community benefit is to target the intersection of documented unmet community health needs and our organization's key strengths and mission commitment.Information was gathered, analyzed and reviewed to identify the health issues of uninsured persons, low-income persons, minority groups and the community as a whole. Health needs were ranked using the following criteria:1) The ability to evaluate and measure outcomes, 2) The size of the problem, 3) The seriousness of the problem, and4) The prevalence of common themes.Health needs were then prioritized taking into account the perceived degree of influence the hospital has to impact the need and the impact on overall health.PRIORITY: Heart DiseaseStrategies:A. Promote environments that support the prevention of heart disease, i.e, healthy eating, increased physical activity, tobacco-free lifestyle, and moderate alcohol use.1. Work with Sports Medicine staff to provide education on the benefits of exercise on heart health.B. Target heart healthy education and prevention among those in high risk groups.1. Obtain and distribute educational materials on risk factors for heart disease and methods of preventing it to churches, health departments and community agencies that serve people at high risk of heart disease.2. Schedule short heart health presentations to target groups.C. Collaborate with the health care community to develop and promote a public campaign for all individuals "to know their numbers" including blood pressure, Hemoglobin A1c, and cholesterol.1. Obtain the "Know Your Numbers" program and highly promote its use in conjunction with our collaborative partners.D. Encourage worksites to educate their employees about their benefit package, including preventive services.1. Contact the Human Resources staff in local businesses and educate them about the benefit of using personal health risk assessments to pinpoint the health needs of their employees.PRIORITY: Smoking Prevention/CessationStrategies:A. Engage youth in tobacco prevention education and advocacy.1. Work with community partners to identify individuals who have the opportunity to assist in creating working groups of young people to develop an anti-smoking marketing campaign for their peers.2. Provide educators at every level with the latest information regarding the effects of smoking and secondhand smoke on children and youth. Meet with school administrators to emphasize the need to deter students and staff from smoking and to make all campuses smoke free.B. Increase availability and access to cessation resources including components targeting diverse/special populations.1. Conduct community awareness campaigns on how to contact the Smoke Free Kentucky hotline, where to go for smoking cessation classes, how to acquire nicotine patches, etc.2. Assure that media campaign reaches the special populations that have the highest risk from smoking and intensify messages for that group.C. Identify health care professionals, organizations, and agencies that represent the interest of pregnant women and encourage them to participate in tobacco prevention and cessation efforts.1. Encourage pregnant women to participate in Centering Pregnancy and the Centering Parenting program where available.2. Educate health providers on evidence-based strategies for treating tobacco use dependence.3. Educate pediatric health care providers to assess exposure to secondhand smoke and encourage parents and family members to quit and/or "take it outside".PRIORITY: Diabetes and ObesityStrategies:A. Increase prevention behaviors in persons identified as being at high risk for diabetes by working with providers to encourage prevention strategies in this population.1. Promote increased physical activity, weight loss, reduction of fat or calories in diets and maintain provider/patient relationships to monitor the disease.B. Increase participation in diabetes education classes and maternal and child health nutrition programs via BHM, local health departments and schools, and in prenatal classes.1. Increase awareness of types of exercises and places to go to exercise, i.e., gyms, YMCA's, parks, walking/bike trails, athletics/team sports, etc.C. Educate community members about the risk factors for diabetes by developing and distributing culturally appropriate public awareness materials.D. Promote and support local farmers' markets in the communities.E. Encourage school districts to offer healthy food choices at lunch and to limit access to soft drink/snack machines and to promote physical fitness and exercise in schools.1. Promote "Two Hour Tours and "Take 10!" programs, and the incorporation of physical fitness and exercise into the school day and after school activities. Health Needs Not Addressed:The most notable health needs not addressed at this time are mental health and substance abuse. Unfortunately, most of rural America is without the necessary resources to adequately address the pandemic increase in people who are impacted by these problems. Our service area is no different. BHM does not have the resources that would be required to effect the changes that are needed to adequately address the lack of mental health and substance abuse care in its service area. However, we continue to explore potential partnerships and internal strategies to find a way to provide these essential services to our patients, and every effort will be made to assist our existing mental health and substance abuse providers in maintaining and/or expanding the services that they currently provide.The need for inpatient mental health services was partially met when BHM opened an adult psychiatry unit in the fall of 2015 through a services agreement with Horizon Health for a 20 bed inpatient adult behavioral health unit at the hospital which provides an additional 20 inpatient beds for our service area. Baptist Health Madisonville Part V, Section B, Line 13b: Criteria for determining eligibility for free or discounted care: As provided for in the written charity care policy, an individual must meet all of the following conditions to qualify for charity:a. The individual is a resident of Kentucky,b. The individual is not eligible for Medicaid, c. The individual is not covered by a 3rd party payor, d. The individual is not in the custody of a unit of government which is responsible for coverage of the acute care needs of the individual. e. The individual meets the following income and resources criteria: HOUSEHOLD SIZE ANNUAL INCOME LIMIT 1 $12,140 2 $16,460 3 $20,780 4 $25,100 5 $29,420For each additional member, add $4,320 annually. Baptist Health Madisonville Part V, Section B, Line 20e: Prior to referring individuals to a collection agency, BHM processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. 3 1 - Baptist Health Sports Medicine & Rehab 500 Clinic Drive Madisonville KY 42431 Rehab Services 2 - Baptist Health Hospice 418 North Scott Street Madisonville KY 42431 Hospice Care 3 - Baptist Health Transitional Care 900 Hospital Drive Madisonville KY 42431 Skilled Nursing Facility Part I, Line 7: Costing Methodology:A cost-to-charge ratio based on the most recent as-filed Medicaid cost report was used to calculate the amounts reported on each line of the table. Part III, Line 3: Rationale for including other bad debt amount in community benefit:No other bad debt amounts have been included as community benefit. The hospital educates patients with limited ability to pay regarding financial assistance and for this reason, the organization believes it accurately captures all charity care deductions provided according to the financial assistance policy, and the amount of bad debt expense attributable to patients eligible under the organization's charity care policy is negligible. Part III, Line 4: Bad debt expense footnote:Per the financial statements of Baptist Healthcare System, Inc. (which include the activity of Baptist Health Madisonville), there is no bad debt footnote for the current year. The amount on line 2 was calculated using a cost-to-charge ratio. Part III, Line 8: Treatment of Medicare shortfall as community benefit:Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit.Medicare Costing Methodology: Medicare revenues and allowable costs were taken from the as-filed Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Part III, Line 9b: Collection practices: Once a patient has been determined to qualify for charity care, the patient is classified as such for three months. If the patient returns for services within three months, they are automatically qualified for charity care, which improves their access to healthcare services. Part VI, Line 2: NEEDS ASSESSMENT: The community served by the hospital was defined by utilizing inpatient and outpatient data regarding patient origin. Population demographics and socioeconomic characteristics of the community were gathered and reported utilizing various third parties. The health status of the community was then reviewed. Information on the leading causes of death and morbidity information was analyzed in conjunction with health outcomes and factors reported for the community by countyhealthrankings.org. Health factors with significant opportunity for improvement were noted. An inventory of health care facilities and resources were prepared and the estimated demand for physician and hospital services were evaluated. Community input was provided through key information interviews and surveys. Information gathered was analyzed and reviewed to identify health issues of uninsured persons, low-income persons, minority groups and the community as a whole. Health needs were ranked utilizing a weighting method and then prioritized taking into account the perceived degree of influence the hospital has to impact the need. Information gaps were identified during the prioritization process and were reported. Part VI, Line 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE:The organization identifies uninsured patients by requesting insurance information at the time of the appointment request. If the patient has no insurance benefits, appointment scheduling staff will inform the patient of the self-pay policy. Except for emergency room visits, new patients who are unable to pay at the time of service are provided services by financial counselors for education and assistance. Emergency department patients are not asked for payment or insurance upon registration or admission. During financial counseling, patients will be informed of the Kentucky Physicians Care Program (KPC) in coordination with the Disproportionate Share Hospital (DSH) Program. They will also be counseled on potential eligibility for Medicaid and disability programs. Patients will also be advised of the financial assistance policy and applications will be provided. Part VI, Line 4: COMMUNITY INFORMATION:The organization is based in Madisonville, Kentucky (Hopkins County) near interstate 69, approximately 50 miles south of Evansville, Indiana. The bulk of the community's population is concentrated in and around the city of Madisonville, with portions of the nearby counties of Webster and Muhlenberg also having significant discharge numbers. Approximately 23% of the community's population falls in the under 18 age range and 18% in the over 65 age range. Approximately 51% are female and 49% are male based on 2017 data. Part VI, Line 5: PROMOTION OF COMMUNITY HEALTH:The organization promotes the health of the community through an open medical staff, service on community boards, a 24 hour emergency department, an occupational medicine program, free athletic physicals, health fairs and screenings, courtesy memberships to a fitness center for athletes, police officers and fire department personnel, educational programs, athletic trainers at school events, and a centering pregnancy program.See also Schedule O, Part III, Line 4a for additional detail. Part VI, Line 6: AFFILIATED HEALTH CARE SYSTEM:Baptist Healthcare System, Inc. (BHS), Baptist Health Madisonville's parent company is also a non-profit organization that shares the same mission and supports the promotion of health in the local communities serviced by the organization as a whole. Part VI, Line 7, Reports Filed With States KY 1 Madisonville Community College 2000 College Drive Madisonville KY 42431 611320380 501(c)(3) 10000 General Support United Way PO Box 366 Madisonville KY 42431 610732633 501(c)(3) 15000 General Support Project Fit America PO Box 308 Boyes Hot Springs CA 95416 363730823 501(c)(3) 16785 General Support Happy Feet Equals Learning Feet Inc 1020 State Route 56 East Morganfield KY 42437 455231361 501(c)(3) 18000 General Support Hopkins County Board of Education 320 S Seminary Street Madisonville KY 42431 616001319 Government 20916 General Support MadisonvilleHopkins County Chamber of Commerce 15 East Center Street Madisonville KY 42431 610561820 501(c)(6) 37615 General Support Muhlenberg County Board of Education 501 Robert L Draper Way Greenville KY 42345 616001286 Government 91503 General Support Baptist Health Foundation Madisonville Inc 2701 Eastpoint Parkway Louisville KY 40223 472893430 501(c)(3) 100000 General Support 7 1 Part I, Line 2: There is a committee that is responsible for approving all donations. The committee selects the organization based on nonprofit criteria. An annual budget is established to determine the total amount of funds to be distributed each year. 1 1 1 0 0 0 0 0 1 0 Diana Nims Director (1/1/16) & Physician 236031 0 63079 0 395 0 7616 0 15207 0 322328 0 0 0 Robert Ramey President 0 335484 0 18077 0 3780 0 7950 0 18617 0 383908 0 0 Stephen C Hanson System CEO (Through 3/21/17) 0 1041011 0 0 0 39333 0 211366 0 58587 0 1350297 0 0 Carl Herde VP & Treasurer (Through 8/31/16) 0 629796 0 48792 0 8813 0 7950 0 38315 0 733666 0 0 Janet Norton VP, Secretary, Interim Co-CEO 0 475888 0 38194 0 292777 0 7950 0 40424 0 855233 0 211104 Stephen R Oglesby VP, Treasurer, Interim Co-Ceo 0 377505 0 15577 0 6371 0 26991 0 34374 0 460818 0 0 William McColl Medical Physicist 219033 0 0 0 1249 0 6626 0 29480 0 256388 0 0 0 Richard Blair Physician 189815 0 35497 0 1638 0 0 0 6911 0 233861 0 0 0 Robert L Wood Physician 240320 0 75607 0 1703 0 7950 0 28611 0 354191 0 0 0 Tara Henson Physician 298752 0 89172 0 314 0 5842 0 17963 0 412043 0 0 0 Kimberly Ashby Vice President of Finance 196271 0 12363 0 880 0 6112 0 7550 0 223176 0 0 0 Mark Fitzmaurice MD Director (Through 12/14) 0 158849 0 12804 0 0 0 967 0 0 0 172620 0 0 Andy Sears Vice Chair (Through 12/14) 0 356392 0 29349 0 57473 0 7950 0 29942 0 481106 0 0 Isaac Myers MD Vice President 0 563303 0 46138 0 13771 0 101957 0 43077 0 768246 0 0 Part I, Line 3 Baptist Healthcare System, Inc., a related organization of Baptist Health Madisonville, Inc., uses the following to establish the compensation of the organization's CEO: - Compensation committee - Independent compensation consultant - Form 990 of other organizations - Written employment contract - Compensation survey or study - Approval by the Board or Compensation Committee. Part I, Lines 4a-b Three current and former officers and executives who participated in the Supplemental Executive Retirement Plan accrued amounts for 2016 which is a portion of the amount reported as deferred compensation in Schedule J, Column C. Other retirement and deferred compensation reported in Schedule J, Column C include amounts for the Retirement Accumulation Plan and Thrift Plan. The following individuals participated in and accrued amounts from the Supplemental Executive Retirement Plan: Stephen Hanson $203,416 Stephen R. Oglesby $19,041 Isaac Myers, MD $94,007 The following individuals received a payout from the Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan, as they are fully vested in the plan: Andrew Sears, MD $46,187 Janet Norton $279,199 Part I, Line 7 Several physicians are compensated based upon an incentive compensation plan. The incentive compensation payments are not contingent upon gross revenues or net earnings of the organization, but are based upon the physician's individual productivity and quality measures. Gail Eveland Family Member-Dir 3043 Compensation 0 Form 990, Part III, Line 4a: Statement of Program Service Accomplishments: a. Baptist Health Madisonville is an acute care hospital serving numerous rural communities and offering a broad range of inpatient and outpatient services. Baptist Health Madisonville provides a substantial amount of charity care as detailed below in the Community Service section. Baptist Health Madisonville provided care for 8,442 inpatient adult, pediatric, and nursery admissions during fiscal year 2017. Patient days totaled 42,023 and there were 756 live births. Surgery visits totaled 8,468 for fiscal year 2017. Baptist Health Madisonville's Mahr Cancer Center is approved by the American College of Surgeons' Commission on Cancer, receiving the No. 1 overall rating. The Mahr Center provided approximately 33,000 treatments to patients during fiscal year 2017, and is affiliated with the James Graham Brown Cancer Center at the University of Louisville. b. The Baptist Health Madisonville Residency Program is an educational program in which hospital physicians instruct and work with residents. The Residency Program is affiliated with the University Of Louisville School Of Medicine. Eighteen residents were involved in the Residency Program during 2017. c. The Baptist Health Madisonville Medical Education and Research Center provides numerous educational programs that benefit the communities of Western Kentucky. In addition to the Family Practice Residency Program, the Center collaborates with Murray State University to offer a graduate degree in nurse anesthesia. The program is dedicated to graduating nurse anesthetists of the highest professional competence who are committed to returning to rural areas to practice and had 53 students during the fiscal year. Baptist Health Madisonville serves as the primary clinical site. The Baptist Health Madisonville Education and Research Center also coordinates the West Area Health Education Center (AHEC) program, connecting the academic health centers at the University of Kentucky and University of Louisville with medically underserved communities throughout the state, in an effort to address Kentucky health care access problems. The Center is a regional campus for the University Of Louisville School Of Medicine through the Center's off-campus Teaching Center. The Center provides individualized clinical training in a small-town environment, with a goal toward increasing the number of physicians in rural areas. The Center also is a location for the University of Kentucky's Center for Rural Health, created to improve the health status of the rural population of the state, and also sponsors the Delta Project for 20 counties in Kentucky. The goal of the Delta Project is to improve the health status and health care system in each county served. During the 2017 fiscal year 54,900 students were contacted in approximately 110 different schools. d. Baptist Health Hospice is a program assisting terminally ill patients and their families through the death and bereavement process. The Hospice program provided service for approximately 8,100 hospice days during the fiscal year. 2017 COMMUNITY SERVICE: Community Service Detail: Hours No. of Events Contacts Educational & Health Events: Improvement Events- 10,000 1,000 60,000 Community Events- 1,300 50 4,000 Donations/Support- 5,000 2,350 4,000 Total 16,300 3,400 68,000 CHARITY AND COMMUNITY BENEFIT CARE: Baptist Health Madisonville provides care to patients who meet guidelines established in the organization's charity care policy at no charge or at charges less than established rates. Other uncompensated care relates principally to contractual allowances for government payors, discounts taken by commercial payors and bad debts. The following summary quantifies additional community benefit expense in terms of uncompensated care, services to the indigent and benefits to the broader community during 2017: Uncompensated care: Bad debt expense (at cost) $717,000 Benefits for the poor: Traditional charity care $3,203,000 Unpaid costs of Medicare $11,177,000 Total quantifiable benefits for the poor $14,380,000 Benefits for the broader community: Educational & Health Improvement Events $6,078,000 Donations/Support $1,189,000 Research $211,000 Total quantifiable benefits for the broader community $7,478,000 Total quantifiable community benefits $22,575,000 Community benefit expense represents approximately 10% of the total organization's expense for the period ended August 31, 2017. In addition to the above, Baptist Health Madisonville provides a wide range of community benefits including coordination of charitable activities by the organization's staff. Form 990, Part III, Line 4a: Statement of Program Service Accomplishments: EDUCATIONAL EVENTS: A component of Baptist Health Madisonville's mission is excellent care, every time. In order to support this mission, the organization strives to be involved in numerous educational programs. The Certified Registered Nurse Anesthesia Program has trained more than 250 nurses to become CRNAs since the program's inception. The University of Louisville/Baptist Health Madisonville Education and Research Center's Medical Campus provided training for 33 medical students, and provided educational activities for high school students interested in a medical career, including shadowing and enhancement classes. Centering Pregnancy Smiles is a partnership between UK, the Baptist Health Madisonville Education and Research Center, the Hopkins County Health Department, the national Centering Pregnancy initiative and other federal, state, and local leaders. The alliance, established to end the cycle of preterm births, low birth weight, and poor oral health in Kentucky, has already saved Kentucky more than $2.0 million in medical procedures needed by those babies at birth. In over 1,000 events, the Center has offered everything from tours to seminars to participation in community educational events. Baptist Health Madisonville maintains a website for consumer health education topics in both English and Spanish which includes daily consumer health news and interactive consumer health tools such as quizzes and calculators. The fees for maintaining this website were $12,000 in 2017. Other educational events sponsored or supported by the organization include the First Step Nursing Program and shadowing opportunities for students. Baptist Health Madisonville served over 3,000 individuals through health fairs and screenings in 2017. The Center provided blood sugar and blood pressure screenings regularly at satellite locations. Working with the Kentucky Cancer Program, The Mahr Cancer Center provided prostate cancer screenings and colorectal screenings. Baptist Health Madisonville provided free sports physicals to over 1,500 high school students in Hopkins, Christian, Crittenden, Caldwell, McLean, Webster, Union, Muhlenburg, Ohio, Trigg, Todd and Lyon counties. The organization also operates a full-time dedicated research center, established to ensure that the community has early access to promising new medicine and medical treatments. The support groups offered at no cost by the organization served over 500 patients and families with over 100 hours of employee time. These groups discuss such topics as Alzheimer's disease, cancer, diabetes, fibromyalgia, multiple sclerosis, asthma, and several others. To enhance access, some support groups are held at satellite locations. Most groups meet once or twice a month, typically at night for optimum patient convenience. This also requires staff to work additional hours above their normal workloads. The organization employs a full-time chaplain for our employees, patients, and guests, as well as a full-time chaplain for the Hospice program. These services, provided at a cost to the organization of almost $70,000, include consultation, pastoral care, counseling, and in-service seminars. COMMUNITY EVENTS: Baptist Health Madisonville has always been an organization that the community looks to for support of community events. Whether it is financial support, the human resources of our employees, or both, the people of western Kentucky have come to rely on the organization to help make community events successful. In order to improve the general well-being of the communities served, the organization is involved in numerous community events, working with local organizations, schools and businesses to promote health and education through various events, such as Friday Night Live. Baptist Health Madisonville's real passion is health care. For that reason, we give emphasis to helping organizations with health care missions. BHM supports the March of Dimes, the Salvation Army, the 911 Heroes Run, the Take 10! Program, local 4-H Councils, the Boy Scouts and numerous other organizations. Form 990, Part III, Line 4a: Statement of Program Service Accomplishments: DONATIONS/SUPPORT: Baptist Health Madisonville supported its communities through financial and in-kind donations. Approximately 3,400 events were supported. Examples include giveaways for local school events, tours, in-class speakers, sponsorship of both school and non-school related ball teams, cheerleading, dance teams, community events, high school bands, and similar events, as well as financial support for community events at the Glema Mahr Center for the Arts. Baptist Health Madisonville's Fitness Formula fitness center provided free or discounted memberships during 2017 valued at over $837,000. The free or discounted memberships were given to coaches, athletes, senior citizens, employees, rehab patients, schools and other community organizations. The Sports Medicine Center provided free athletic trainer coverage at 6 area schools for all sports. In 2017, the organization provided direct financial support as well as insurance coverage for Baptist Health Madisonville care providers volunteering at the local community clinic. This clinic provides health care for the working poor. EMERGENCY: The Baptist Health Madisonville Emergency Department operates 24 hours a day, 365 days a year. In 2017, the department served over 26,228 patients. The department served as the area referral center for serious or traumatic injuries and disease. Care is provided regardless of ability to pay for medically necessary, non-elective care. VOLUNTEER DEPARTMENT: In 2017, Baptist Health Madisonville volunteers gave 11,000 hours to the community. This program exists solely for service and is not a fund-raising group for the organization. Volunteers provide help to community members who use the hospital including the gift shop, waiting rooms, information desk, patient mail delivery, and other areas. The program also offers nursing scholarships Form 990, Part VI, Section A, line 6 Members or stockholders: The organization's sole member is Baptist Healthcare System, Inc. ("BHS"), a non-profit, tax-exempt corporation organized under and pursuant to the provisions of the law of the Commonwealth of Kentucky. Form 990, Part VI, Section A, line 7a Power to elect or appoint members: The Board of Directors of Baptist Health Madisonville, Inc. is appointed by Baptist Healthcare System, Inc., (BHS). Form 990, Part VI, Section A, line 7b Decisions reserved to members or stockholders: The consent & approval of the sole member shall be required for all major corporate actions, and any act the result of which would be to: a. Approve the mission, vision, and value of the corporation and amendments thereto; b. Approve amendments to the articles of incorporation and the bylaws of the corporation; c. Approve the strategic plan of the corporation; d. Approve the transfer or disposition of all or substantially all of the corporation's assets or investment or interest in any business enterprise; any merger, combination, or reorganization of the corporation; any liquidation, reorganization, or recapitalization of the corporation; or any agreement to do the foregoing; e. Approve the capital expenditure and operating budgets of the corporation, and any unbudgeted expenditures over $500,000; f. Selection of the corporation's auditor; g. Approve the incurrence of debt of the corporation above $500,000 or other amount established by BHS and the making of any capital expenditure above $500,000 or other amount established by BHS; h. Approve the appointment, removal, and evaluation of the president or chief executive officer of the corporation acting through the president and chief executive officer of BHS; i. Appoint or remove, with or without cause, the members of the board of directors of the corporation. Appointment and removal shall not require a recommendation of the corporation's board; j. Appoint or remove, with or without cause, the chair of the board of the corporation. Appointment and removal shall not require a recommendation of the corporation's board; k. Authorize execution of any contract, agreement, or similar instrument by which the corporation may be obligated to pay more than an amount established by BHS; l. Acquire any stock of any corporation or any equity in another corporate form, or invest in or acquire any interest in any business enterprise. Form 990, Part VI, Section B, line 11b Process used to review the Form 990: The internally prepared Form 990 is reviewed and approved by tax consultants. Copies are given to each voting member of the Board of Directors prior to filing for their review. The Form 990 is then presented at a monthly meeting of the hospital's Board of Directors. Form 990, Part VI, Section B, line 12c Monitoring and enforcement of compliance with conflict of interest policy: Conflict of Interest statements are completed for each board member, principal officer, and committee member with board delegated powers. The chairman of the Board of Directors is responsible for being familiar with the statements and identifying existing or contemplated transactions or relationships which may give rise to a conflict of interest. Affected board members, officers, and committee members are also responsible for bringing conflicts which they may be a part of to the attention of the Board. Such affected parties are required to withdraw from the meetings for the time in which the matter continues under discussion. If the matter is brought to a vote, the affected party will not vote on it. If the matter requires a special called meeting, the affected party will not be counted in establishing a quorum. The Board will also appoint a non-interested person to investigate alternatives to the proposed transaction. Form 990, Part VI, Section B, line 15 Compensation determination process: The President of Baptist Health Madisonville, Inc. is not an employee of Baptist Health Madisonville, Inc. but is an employee of Baptist Healthcare System, Inc., a tax-exempt 501(c)(3) organization which is the sole member of Baptist Health Madisonville, Inc. The President is compensated by Baptist Healthcare System, Inc. Annually in September, the Baptist Healthcare System, Inc. Compensation Committee reviews the compensation, including base compensation and incentive compensation for the President. The Baptist Healthcare System, Inc. Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of Baptist Healthcare System, Inc. The compensation of officers is either reviewed and approved by the Compensation Committee of the Baptist Healthcare System, Inc. Board or is reviewed and approved by the Baptist Healthcare System, Inc. President and CEO or the Baptist Health Madisonville President and CEO. The organization makes every effort to ensure that the compensation of all employees is reasonable and appropriate for the value of the services received by the organization. Form 990, Part VI, Section C, line 19 Process for making documents available to the public: The organization's governing documents, conflict of interest policy and financial statements are available upon request in the organization's administrative office. Form 990, Part IX, line 11g Adminstrative Services: Program service expenses 15,534,845. Management and general expenses 3,997,237. Fundraising expenses 0. Total expenses 19,532,082. Physician Fees: Program service expenses 4,325,966. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,325,966. Consulting Fees: Program service expenses 349,028. Management and general expenses 95,667. Fundraising expenses 0. Total expenses 444,695. Professional Fees: Program service expenses 2,100,265. Management and general expenses 106,392. Fundraising expenses 0. Total expenses 2,206,657. Form 990, Part XI, line 9: Capitalized Interest 25,169. Physician Entity Funding -26,612,140. IS Depreciation 3,515,473. Other -3,955,589. InterCompany 26,902,489. Baptist Community Health Services Inc 2701 Eastpoint Parkway Louisville KY 40223 611141242 Medical Services KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Corbin Inc 2701 Eastpoint Parkway Louisville KY 40223 473033550 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Lexington Inc 1740 Nicholasville Rd Lexington KY 40503 611480774 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Madisonville Inc 2701 Eastpoint Parkway Louisville KY 40223 472893430 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation of Greater Louisville Inc 4000 Kresge Way Louisville KY 402074604 200292291 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Paducah Inc 2501 Kentucky Ave Paducah KY 42003 264057759 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Foundation Richmond Inc PO Box 1600 Richmond KY 40476 311506378 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Medical GroupInc 2701 Eastpoint Parkway Louisville KY 40223 205497203 Physician Services KY 501(c)(3) Schedule A, Line 3 Baptist Healthcare System Inc 1 Baptist Health Richmond Inc 801 Eastern Bypass Richmond KY 40475 610461940 Hospital KY 501(c)(3) Schedule A, Line 3 Baptist Healthcare System Inc 1 Baptist Healthcare Foundation Inc 2701 Eastpoint Parkway Louisville KY 40223 311122867 Fundraising KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist Healthcare System Inc 2701 Eastpoint Parkway Louisville KY 40223 610444707 Hospital KY 501(c)(3) Schedule A, Line 3 N/A 0 Lexington Cardiac Research Foundation Inc 1740 Nicholasville Rd Lexington KY 40503 204242792 Medical Research KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Medical Center Ambulance Services Inc 629 Lafoon Street Madisonville KY 42431 610946210 Ambulance Services KY 501(c)(3) Schedule A, Line 10 N/A 1 Mercy Regional Emergency Medical System LLC 126 Lone Oak Rd Paducah KY 42001 611310466 Ambulance Services KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Pattie A Clay Hospital Auxiliary PO Box 1600 Richmond KY 40476 510172717 Support Hospital KY 501(c)(3) Schedule A, Line 12a Baptist Healthcare System Inc 1 Baptist EastMilestone LLC 750 Cypress Station Dr Louisville KY 40207 611355065 Fitness Center KY Baptist Ventures Inc Excluded 0 0 Baptist Physicians' Surgery Center LLC 1720 Nicholasville Rd 101 Lexington KY 405031490 043665929 Ambulatory Surgery Center KY Baptist Community Health Services Inc Related 0 0 Baptist Eastpoint Surgery Center LLC 2400 Eastpoint Parkway Louisville KY 40223 260834852 Ambulatory Surgery Center KY Baptist Community Health Services Inc Related 0 0 Medical Associates of Middletown LLC 4000 Kresge Way Louisville KY 40207 200399400 Medical Office Building KY Baptist Healthcare System Inc Related 0 0 Baptist Health Performance Training LLC 2701 Eastpoint Parkway Louisville KY 40223 473567887 Sports Training KY Baptist Ventures Inc Related 0 0 Cumberland Valley Surgical Center LLC 1850 State Street New Albany IN 47150 611348280 Ambulatory Surgery Center IN BCHS Related 0 0 Baptist Ventures Inc 2701 Eastpoint Parkway Louisville KY 40223 611217018 Management KY Baptist Healthcare System Inc C 1 Baptist Health Plan Inc 651 Perimeter Park Ste 300 Lexington KY 40517 611241101 Insurance KY Baptist Healthcare System Inc C 1 Baptist Health Employer Solutions Inc 2701 Eastpoint Parkway Louisville KY 40223 272939694 Accountable Care Organization KY Baptist Healthcare System Inc C 1 Hopkins County Credit Services Inc 2701 Eastpoint Parkway Louisville KY 40223 610660705 Collection Agency KY Baptist Healthcare System Inc C 1 MS Community Health LLC 2701 Eastpoint Parkway Louisville KY 40223 611303514 Health Clinic KY Baptist Health Medical Group Inc C 1 Baptist Medical Management Services Inc 2701 Eastpoint Parkway Louisville KY 40223 371519513 HC MSO KY Baptist Healthcare System Inc C 0 1 1 1 0 0 0 0 0 0 1 0 0 0 0 1 1 0 1 1 Baptist Healthcare System Inc A 249321 Cost Baptist Healthcare System Inc S 12468542 Cost Baptist Healthcare System Inc P 24499890 Cost Baptist Healthcare System Inc C 109508 Cost Baptist Health Medical Group Inc R 16036317 Cost Baptist Health Medical Group Inc P 629744 Cost Baptist Health Medical Group Inc J 4130165 Cost Baptist Health Foundation Madisonville Inc B 142818 Cost Baptist Health Foundation Madisonville Inc S 905787 Cost Baptist Community Health Services Inc S 206380 Cost