2018-05-14T14:23:06-05:00 2017-06-30 860133881 HENRY & HORNE LLP 2055 E WARNER RD STE 101 TEMPE AZ 85284 990 2016-07-01 860892673 LOS NINOS HOSPITAL INC LOSN 6022434231 1402 E SOUTH MOUNTAIN AVENUE PHOENIX AZ 85040 WILLIAM TIMMONS CEO 6022434231 2018-05-11 1 COLETTE KAMPS CPA P00367616 4808394900 2018-05-11 2016 2022-09-23 18:48:47Z WILLIAM TIMMONS 1402 E SOUTH MOUNTAIN AVENUE PHOENIX AZ 85040 19028787 0 X WWW.HACIENDAHEALTHCARE.ORG X 1997 AZ CHILDREN'S HOSPITAL SERVING THE NEEDS OF ACUTE AND CHRONICALLY ILL PATIENTS. 9 9 185 9 0 0 9164 38362 11815697 11511576 -983524 436943 0 195522 10841337 12182403 0 0 0 0 7187789 6285830 0 0 0 5499673 6835177 12687462 13121007 -1846125 -938604 27961531 21793907 5256460 1520711 22705071 20273196 X TO PROVIDE ACUTE AND SUBACUTE HOSPITAL CARE TO INFANTS, CHILDREN AND TEENS. 0 0 2911692 3052696 HOME HEALTH CARE: HOME HEALTH CARE SPECIALIZES IN THE CARE OF INFANTS, CHILDREN AND ADULTS WITH SPECIAL HEALTH CARE NEEDS REQUIRING HOME HEALTH CARE FROM NURSES AND THERAPISTS WITH SPECIAL TRAINING. 2249739 3221877 SYNAGIS CLINICS - THE ORGANIZATION OPERATES SIX OUTPATIENT SYNAGIS CLINICS LOCATED IN ARIZONA AND COLORADO. SYNAGIS IS AN INJECTABLE USED TO IMMUNIZE INFANTS AND YOUNG CHILDREN AGAINST RESPIRATORY SYNCYTIAL VIRUS (RSV). THE CLINICS ARE OPEN FROM NOVEMBER TO APRIL EACH YEAR, WITH IS THE HIGH SEASON FOR RSV. 3194688 644312 INPATIENT - INPATIENT CARE IS A 15-BED, FAMILY ORIENTED HOSPITAL SPECIALIZING IN HIGH QUALITY ACUTE AND SUB-ACUTE CARE FOR INFANTS, CHILDREN AND TEENS. 3698025 4788213 VENTILATOR PROGRAM: THE VENTILATOR PROGRAM ENABLES VENTILATOR DEPENDENT INDIVIDUALS TO FUNCTION IN SOCIETY AT THE OPTIMAL LEVEL OF THEIR CAPABILITIES AND POTENTIAL BY COMBINING TECHNOLOGY, SERVICES AND MEDICAL SUPPLIES. THIS IS ACHIEVED BY PROVIDING PRODUCTS, EDUCATION, TRAINING AND ON-GOING MONITORING OF EQUIPMENT. THE VENTILATOR PROGRAM PROVIDES SERVICE ON VENTILATORS AND OTHER MEDICAL EQUIPMENT IN PATIENTS' HOMES, AS WELL AS A HOME ENTERAL FEEDING SERVICE THAT SERVES THE NUTRITIONAL NEEDS OF MEDICALLY FRAGILE PATIENTS BY PROVIDING FORMULA AND SUPPLIES. NURSE CONSULTING: THE ORGANIZATION CONTRACTS WITH THE DIVISION OF DEVELOPMENTAL DISABILITES (DDD), A DIVISION OF THE ARIZONA DEPARTMENT OF ECONOMIC SECURITY, FOR CERTAIN SPECIALIZED CLINICAL CONSULTING SERVICES. UNDER THE ARRANGEMENT AND ON BEHALF OF DDD, QUALIFIED NURSING PERSONNEL EMPLOYED BY THE ORGANIZATION ASSESS AND MONITOR NURSING SERVICES RENDERED BY VARIOUS PROVIDERS OF SERVICES TO DEVELOPMENTALLY DISABLED CONSUMERS IN ARIZONA. SUCH SERVICES INCLUDE THOSE PROVIDED IN A CONSUMER'S HOME, A GROUP HOME, A DEVELOPMENTAL HOME, A LEVEL II OR LEVEL III BEHAVIORAL HEALTH FACILITY AND ANY DAY CARE PROGRAM. REGISTRY SERVICES: INNOVATIVE STAFFING, BEGAN IN 2005, PROVIDES STAFFING NEEDS TO FILL VACANT POSITIONS AND OPEN SHIFTS WITH MEDICAL PROFESSIONALS INCLUDING REGISTERED NURSES, LICENSED PRACTICAL NURSES, CERTIFIED NURSING ASSISTANTS, CAREGIVERS AND RESPIRATORY THERAPISTS. THERAPY SERVICES: THERAPY SERVICES PROVIDE PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY TO INFANTS, CHILDREN AND ADULTS. SERVICES ARE PROVIDED IN BOTH INPATIENT AND OUTPATIENT SETTINGS, INCLUDING HOME HEALTH CARE. THESE SERVICES INCLUDE EVALUATIONS, CONSULTATIONS, INTERVENTION, SKILLED HANDS-ON CARE, ADAPTIVE EQUIPMENT AND FAMILY/CAREGIVER TRAINING. 3698025 4788213 12054144 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 2 0 185 1 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AZ X THE ORGANIZATION 6022434231 1402 E SOUTH MOUNTAIN AVENUE PHOENIX AZ 85040 X JIM GERDES BOARD MEMBER 0.50 1.00 X 0 0 0 KEVIN BERGER BOARD MEMBER 0.50 1.00 X 0 0 0 THOM NIEMIEC BOARD MEMBER 0.50 1.00 X 0 0 0 PATRICK WHITE BOARD MEMBER 0.50 1.00 X 0 0 0 GARY ORMAN EXEC. VICE PRESIDENT 0.50 1.00 X X 0 0 0 TOM POMEROY PRESIDENT 1.00 2.00 X X 0 0 0 KATHRYN L DEL REAL VICE PRESIDENT 1.00 2.00 X X 0 0 0 RALPH WALLWORK TREASURER 1.00 2.00 X X 0 0 0 MIKE WADE SECRETARY 1.00 2.00 X X 0 0 0 WILLIAM TIMMONS CHIEF EXECUTIVE OFFICER 10.00 30.00 X 0 628432 45780 JOSEPH O'MALLEY CHIEF FINANCIAL OFFICER 10.00 30.00 X 0 209110 12849 KEVIN PAYNE CHIEF OPERATING OFFICER OP 10.00 30.00 X 0 170725 35313 JOHN WIDDER DIRECTOR HOME MEDICAL SERV 40.00 0.00 X 136032 0 9360 DAVENA BALLARD DIRECTOR SYNAGIS 40.00 0.00 X 138575 0 15015 NAYREE ROSS DIRECTOR OF NURSING LNH 40.00 0.00 X 103382 0 3266 377989 1008267 121583 3 0 1 0 HACIENDA INC 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 MANAGEMENT SERVICES 636001 1 38362 1000 38362 PRIVATE PATIENT REVENUE 623990 7084690 7084690 GOVERNMENT PATIENT REVENUE 623990 3588786 3588786 THERAPY INCOME FROM RELATED AFFIL 623990 648356 648356 VENT EQUIPMENT RENTAL INCOME 623990 189744 189744 11511576 87208 87208 7196119 6846384 349735 349735 349735 MISCELLANEOUS 900099 195522 195522 195522 12182403 11707098 0 436943 5268912 5268912 15407 15407 526411 516886 9525 475100 475100 636001 636001 98886 79886 19000 25123 25123 13069 13069 482727 456365 26362 3044 3044 60675 60675 420109 291163 128946 305078 305078 SUPPLIES 3024885 3024885 DISPROPORTIONATE SHARE 1320584 1320584 EQUIPMENT EXPENSE 265352 115986 149366 MISCELLANEOUS 121909 85120 36789 57735 57536 199 13121007 12054144 1066863 0 14449902 8378444 70000 70000 1233908 1316932 1681085 1323634 23591 25366 6514603 4855511 1758468 1659092 8740994 9020429 3583 10 27961531 21793907 1115779 820711 4140681 700000 5256460 1520711 X 22700625 20263744 4446 9452 22705071 20273196 27961531 21793907 X -938604 292472 -1785743 X X 0 1 X 1 0 X 1628014 44965 1140701 9164 38362 2861206 17252217 15697744 13074504 11815697 11511576 69351738 18880231 15742709 14215205 11824861 11549938 72212944 0 0 0 72212944 539596 373602 468268 421434 87208 1890108 539596 373602 468268 421434 87208 1890108 32137 48933 42310 45909 385266 554555 19451964 16165244 14725783 12292204 12022412 74657607 0.96730 0.97090 0.02530 0.02680 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 322545 261711 60834 6192058 4593800 1598258 1659092 X 11154291 292472 -1320584 -1028112 12182403 0 12182403 11800423 0 11800423 1320584 1320584 13121007 PART X, LINE 2: THE ORGANIZATION RECOGNIZES UNCERTAIN TAX POSITIONS IN THE FINANCIAL STATEMENTS WHEN IT IS MORE LIKELY THAN NOT THE POSITIONS WILL NOT BE SUSTAINED UPON EXAMINATION BY THE TAX AUTHORITIES. AS OF JUNE 30, 2017, THE ORGANIZATION HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: DISPROPORTIONATE SHARE HOSPITAL REFUND -1,320,584. PART XII, LINE 4B - OTHER ADJUSTMENTS: DISPROPORTIONATE SHARE HOSPITAL REFUND 1,320,584. 1 1 1 X 1 X 1 0 1 1 11706600 11706600 0.89220 11706600 11706600 0.89220 11706600 11706600 0.89220 1 30764 402292 295628 106664 X 1 1 1 1 LOS NINOS HOSPITAL 2303 E THOMAS RD PHOENIX AZ 85016 X X LOS NINOS HOSPITAL INC 1 0 0 1 X X X X X X X X X 15 1 0 0 1 X HTTP://HACIENDAINC.ORG/WP-CONTENT/UPLOADS/LNH-CHNA_2016-2018_REV.PDF X 1 16 1 HTTP://HACIENDAINC.ORG/WP-CONTENT/UPLOADS/LNH-CHNA_2016-2018_REV.PDF 0 1 X 100.000000000000 200.000000000000 X X X X 1 1 X X X 1 X 1 X X X 0 X 0 X 0 0 LOS NINOS HOSPITAL, INC. PART V, SECTION B, LINE 5: PHOENIX CHILDREN'S HOSPITAL REPRESENTATIVES SHARED WITH US "RESEARCH THAT MATTERS: PEDIATRIC DROWNINGS IN THE STATE OF ARIZONA" WHEN THEY LEARNED OF OUR ASSESSMENT AND FOCUS. USE OF PCH'S DATA FROM THEIR INJURY PREVENTION CENTER CREATES AN OPPORTUNITY FOR LNH TO FOCUS ON PREVENTION EFFORTS WHERE THEY MATTER MOST AND HELPS FURTHER OUR IMPLEMENTATION STRATEGY. LOS NINOS HOSPITAL ALSO TOOK INTO CONSIDERATION SEVERAL SOURCES OF DATA TO IDENTIFY THE COMMUNITY NEEDS. DATA COMPILED AT THE COUNTY LEVEL, DATA COMPILED BY THE PUBLIC HEALTH DEPARTMENT AND DATA COMPILED BY THE HEALTH CARE SYSTEMS WE RECEIVE OUR PATIENTS FROM. THIS INCLUDES TAKING INTO ACCOUNT PHOENIX CHILDREN'S HOSPITAL REPRESENTATIVES SHARED WITH US "RESEARCH THAT MATTERS: PEDIATRIC DROWNINGS IN THE STATE OF ARIZONA" WHEN THEY LEARNED OF OUR ASSESSMENT AND FOCUS. USE OF PCH'S DATA FROM THEIR INJURY PREVENTION CENTER CREATES AN OPPORTUNITY FOR LNH TO FOCUS ON PREVENTION EFFORTS WHERE THEY MATTER MOST AND HELPS FURTHER OUR IMPLEMENTATION STRATEGY. LOS NINOS HOSPITAL ALSO TOOK INTO CONSIDERATION SEVERAL SOURCES OF DATA TO IDENTIFY THE COMMUNITY NEEDS. DATA COMPILED AT THE COUNTY LEVEL, DATA COMPILED BY THE PUBLIC HEALTH DEPARTMENT AND DATA COMPILED BY THE HEALTH CARE SYSTEMS WE RECEIVE OUR PATIENTS FROM. THIS INCLUDES TAKING INTO ACCOUNT THE ARIZONA STATE HEALTH ASSESSMENT PUBLISHED IN 2014. THIS ASSESSMENT INCLUDES PUBLIC INPUT FROM COMMUNITY MEMBERS AND AGENCIES, SURVEYS FROM THE UNDER-SERVED AND MINORITY COMMUNITIES AND ANALYSIS OF DATA COLLECTED THROUGH PUBLIC DATA BANKS. IN ADDITION, DATA WAS OBTAINED FROM THE MARICOPA COUNTY DEPARTMENT OF PUBLIC HEALTH AND MARICOPA COUNTY AREA NONPROFIT HOSPITALS- INCLUDING BANNER HEALTH, DIGNITY HEALTH, SCOTTSDALE HEALTHCARE, MAYO CLINIC, AND PHOENIX CHILDREN'S HOSPITAL. LOS NINOS HOSPITAL, INC. PART V, SECTION B, LINE 11: LOS NINOS HOSPITAL'S STRATEGY TO ADDRESS THE SIGNIFICANT HEALTH NEEDS IDENTIFIED AS WATER-RELATED INCIDENTS INCLUDES IMPROVING ACCESS TO RESOURCES AND PROVIDE EDUCATION TO THE UNDERSERVED FAMILIES AND MINORITY POPULATIONS WE SERVE IN THE COMMUNITY. LNH HAS HAD AN OUTSTANDING AND LONG-LASTING RELATIONSHIP WITH THE ARIZONA DROWNING PREVENTION COALITION WHICH CAN BE RELIED ON AS AN EXISTING RESOURCE AND TO FURTHER DEVELOP CURRENT PROGRAMS AND MATERIALS AS WELL AS CREATE NEW INITIATIVES. DUE TO THE SMALL SIZE OF OUR BUSINESS MODEL LNH RECOGNIZES THAT THEY DO NOT HAVE THE RESOURCES TO FOCUS ON AN IMPLEMENTATION STRATEGY FOR ALL OF THE SIGNIFICANT HEALTH NEEDS IDENTIFIED AS IMPORTANT TO THE LNH COMMUNITY. IT WAS ALSO DETERMINED THAT THERE ARE A SIGNIFICANT NUMBER OF POTENTIAL RESOURCES THAT ARE ALREADY COMMITTED TO EACH OF THE NEEDS IDENTIFIED. LNH PLANS TO ADDRESS ADDITIONAL SIGNIFICANT HEALTH CARE NEEDS IDENTIFIED IN FUTURE YEAR'S ASSESSMENTS. PART II, COMMUNITY BUILDING ACTIVITIES: IN FISCAL 2017 LNH DISTRIBUTED WATER SAFETY BAGS TO EACH OF ITS CLIENT FAMILIES. PRIOR TO THE CHILD PATIENT DISCHARGE, EACH FAMILY WAS GIVEN A WATER SAFETY BAG AND A CONSULTATION ON HOW TO KEEP THEIR CHILD/CHILDREN SAFE AROUND WATER. THE INFORMATION IN THE WATER SAFETY BAGS WERE PUBLISHED BOTH IN ENGLISH AND SPANISH. THE PERSON GIVING THE CONSULTATION WOULD MAKE SURE THAT THE FAMILY MEMBER/S UNDERSTOOD THE ABC'S OF DROWNING PREVENTION AND THE INFORMATION WITHIN THE BAG. INFORMATION IN THE WATER SAFETY BAGS COVERED THE ABC'S ( ADULT SUPERVISION ALWAYS WITHIN ARMS LENGTH, BARRIERS AROUND POOLS-FENCES WITH AUTO LOCKS, CPR TRAINING FOR FAMILY MEMBERS AND SWIM CLASSES FOR CHILDREN AND FAMILY MEMBERS WHO COULD NOT SWIM AND CALL 911). OTHER INFORMATION INCLUDED WATER SAFETY WITHIN THE HOME, BY POOLS, SPA'S, CANALS, BOATING, AND ANY OTHER AREA WHERE WATER COULD BE A DANGER TO CHILDREN.THE MARKETING DEPARTMENT DISTRIBUTED WATER SAFETY BAGS/MATERIAL, AND LANYARDS AT SEVERAL LOCAL EVENTS INCLUDING FUNDRAISING GOLF TOURNAMENTS, GET TO THE POINT FOR WATER SAFETY EVENT (FOR FAMILIES AND KIDS), AND EMPLOYEE SAFETY FAIRS. OUR WEBSITE WAS UPDATED AND CONTAINS INFORMATION ON DROWNING PREVENTION. MARKETING SENDS OUT EMAILS PERIODICALLY REMINDING ITS EMAIL LIST TO WATCH CHILDREN AROUND WATER. STORIES RELATED TO NON-FATAL DROWNING HAVE BEEN PUBLISHED AND MEMBERS OF THE MARKETING TEAM HAVE BEEN INTERVIEWED ON TELEVISION FOR SPECIALS ON DROWNING PREVENTION.LNH, CONTINUES ITS LONG STANDING ACTIVE MEMBERSHIP AND BOARD PARTICIPATION WITH THE DROWNING PREVENTION COALITION OF ARIZONA. PART III, LINE 4: THE CARRYING AMOUNT OF ACCOUNTS RECEIVABLE MAY BE REDUCED BY A VALUATION ALLOWANCE THAT REFLECTS MANAGEMENT'S BEST ESTIMATE OF UNCOLLECTIBLE AMOUNTS. MANAGEMENT REVIEWS ALL ACCOUNTS RECEIVABLE BALANCES PERIODICALLY, AND BASED ON AN ASSESSMENT OF CREDITWORTHINESS AND AN ANALYSIS OF THE AGING OF INVOICES, ESTIMATES THE PORTION, IF ANY, OF THE BALANCES THAT WILL NOT BE COLLECTED. BECAUSE OF THE INHERENT UNCERTAINTIES IN ESTIMATING THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, IT IS AT LEAST REASONABLY POSSIBLE THAT THE ESTIMATES USED WILL CHANGE WITHIN THE NEAR TERM. PART III, LINE 9B: ALL GUARANTORS WITH SELF-PAY BALANCES ARE PROVIDED WITH A CHARITY CARE FINANCIAL ASSISTANCE APPLICATION TO DETERMINE IF THEY QUALIFY FOR ASSISTANCE. HOSPITAL BILLING STAFF REVIEWS EACH RETURNED APPLICATION, FOLLOWS UP WITH THE GUARANTOR FOR ANY QUESTIONS AND MISSING INFORMATION, AND COMMUNICATES ELIGIBILITY STATUS TO THE GUARANTOR. PART VI, LINE 2: A FOCUSED APPROACH TO UNDERSTANDING THE NEEDS WITHIN THE UNDERSERVED AND MINORITY POPULATION IN WHICH LNH SERVES INCLUDED AN ANALYSIS OF THE INPUT PROVIDED BY THE MARICOPA COUNT COMMUNITY HEALTH ASSESSMENT 2012 (MCCHA)AS WELL AS THE FIST THINGS FIRST HEALTH IMPACT ASSESSMENT. PART VI, LINE 4: AS DESCRIBED IN FORM 990, PART III, SUPPLEMENTED IN SCHEDULE O, LOS NINOS HOSPITAL PROVIDES A VARIETY OF CLINICAL PROGRAMS THAT ARE CRITICAL TO THE HEALTH OF INFANTS, CHILDREN AND YOUNG ADULTS WHO ARE CHRONICALLY ILL AND MEDICALLY FRAGILE. NEARLY ALL PATIENTS ARE COVERED BY GOVERNMENTAL HEALTH PROGRAMS, SUCH AS THE STATE OF ARIZONA'S DIVISION OF DEVELOPMENTAL DISABILITIES, THE ARIZONA MEDICAID PROGRAM (KNOWN AS AHCCCS), OR MEDICAID MANAGED CARE PLANS. AS A RESULT, FEW PATIENTS HAVE A NEED FOR CHARITY DISCOUNTS. THE LOS NINOS HOSPITAL INPATIENT UNIT PROVIDES ACUTE AND SUBACUTE HOSPITAL CARE TO INFANTS AND CHILDREN LESS EXPENSIVELY THAN LARGER ACCUTE CARE HOSPITALS. MEDICAL SERVICES PAYORS OFTEN REQUIRE THE TRANSFER OF PATIENTS TO LOS NINOS FROM MORE EXPENSIVE SETTINGS WHEN THEY'RE CLINICALLY APPROPRIATE, THEREBY SAVING SCARCE GOVERNMENT FUNDS. LOS NINOS HOSPITAL'S SIX SYNAGIS CLINICS PROTECT HIGH RISK INFANTS FROM CONTRACTING RESPRITORY SYNCYTIAL VIRUS, THEREBY SAVING LIVES AND MINIMIZING THE POTENTIAL FOR EXPENSIVE LIFE-LONG RESPIRATORY TREATMENT. LOS NINOS HOSPITAL'S HOME VENTILATOR PROGRAM AND HOME HEALTH SEVICES PROVIDE PATIENTS WITH EFFECTIVE HEALTH CARE IN THEIR HOMES, A FAR LESS EXPENSIVE SETTING THAN HOSPITALS, THEREBY FURTHER SAVING INCREASINGLY SCARCE GOVERNMENT FUNDS. X X X 0 0 0 0 0 0 0 0 0 WILLIAM TIMMONS CHIEF EXECUTIVE OFFICER 0 548432 0 80000 0 0 0 40000 0 5780 0 674212 0 0 JOSEPH O'MALLEY CHIEF FINANCIAL OFFICER 0 186891 0 22219 0 0 0 8732 0 4117 0 221959 0 0 KEVIN PAYNE CHIEF OPERATING OFFICER OP 0 156685 0 14040 0 0 0 26520 0 8793 0 206038 0 0 DAVENA BALLARD DIRECTOR SYNAGIS 127876 0 10699 0 0 0 8428 0 6587 0 153590 0 0 0 PART I, LINE 3 HACIENDA HEALTHCARE COMPLETES AN ANNUAL EXECUTIVE COMPENSATION COMPARABILITY DATA STUDY TO ENSURE THAT THE VALUE OF THE SERVICES PROVIDED BY ITS EXECUTIVES IS COMMENSURATE WITH THEIR COMPENSATION. THIS ANNUAL PROCESS DOCUMENTS HOW IMPORTANT THIS MATTER IS TO HACIENDA HEALTHCARE. IN ARIZONA MOST NON-PROFIT ORGANIZATIONS ONLY DO AN EXECUTIVE COMPENSATION ANALYSIS EVERY 3-5 YEARS WITH EVERY 3 YEARS BEING THE AUDITORS' RECOMMENDATION AND EVERY 5 YEARS BEING ACCEPTABLE. THE REASON THAT HACIENDA HEALTHCARE DOES ANNUAL EXECUTIVE COMPENSATION COMPARABILITY DATA STUDIES IS BECAUSE THE ALREADY COMPLEX AND MULTI-FACETED SERVICE DELIVERY SYSTEM CONTINUES TO GROW. FOR EXAMPLE, OVER THE LAST 25 YEARS A NEW PROGRAM WAS ADDED TO THE SERVICE DELIVERY SYSTEM APPROXIMATELY EVERY 11 MONTHS. HACIENDA HEALTHCARE IS A COMPLEX, MULTI-FACETED HEALTH CARE AND SOCIAL SERVICE DELIVERY SYSTEM THAT PROVIDES 43 PROGRAMS THROUGHOUT THE STATE OF ARIZONA, MANY OF WHICH ARE ONE-OF-A-KIND. THUS, A THREE COMPONENT EXECUTIVE COMPENSATION COMPARABILITY DATA STUDY IS USED. IT INCLUDES TWO SALARY/PAYROLL WEBSITES AND A THOROUGH COMPENSATION COMPARABILITY STUDY USING 990'S FROM APPROXIMATELY 50 NOT-FOR-PROFIT HEALTH CARE ORGANIZATIONS THAT SHARE A NUMBER OF COMMON VARIABLES WITH HACIENDA HEALTHCARE. WE CONSIDERED THE UTILIZATION OF REBUTTABLE PRESUMPTION STUDIES AS ANOTHER WAY TO DETERMINE APPROPRIATE EXECUTIVE COMPENSATION. WE DETERMINED THAT A COMPARABLE ORGANIZATION WOULD HAVE TO BE SIMILAR TO HACIENDA HEALTHCARE IN 12 WAYS IN ORDER TO BE VALID. WE REQUESTED THE NAMES OF SEVERAL COMPANIES THAT PERFORM REBUTTABLE PRESUMPTION STUDIES. WE WERE PROVIDED FOUR NAMES. NONE OF THE COMPANIES WE CONTACTED WERE WILLING TO CONTRACT WITH HACIENDA HEALTHCARE SINCE THEY DID NOT FEEL THEY COULD MEET THE 12 CATEGORIES REQUIREMENT. THE HACIENDA HEALTHCARE BOARD OF DIRECTORS APPROVES CHANGES IN EXECUTIVE COMPENSATION ANNUALLY BEFORE THE CHANGES TAKE PLACE. THE ANNUAL EXECUTIVE COMPENSATION COMPARABILITY DATA STUDY AND THE BOARD OF DIRECTORS' APPROVAL OF EXECUTIVE COMPENSATION ARE THOROUGHLY DOCUMENTED. SOUTH MOUNTAIN HEALTH SUPPLY INC(SMHS) OFFICERS OF SMHS ARE BOARD MEMBERS OF FILING ORGANIZATION 1101442 LOS NINOS HOSPITAL PURCHASES HEALTH CARE SUPPLIES FROM SMHS. 0 FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION'S BOARD TREASURER, CEO AND CONTROLLER WILL REVIEW AND APPROVE THE FORM 990 PRIOR TO FILING. THEY WILL THEN REVIEW THE FINAL FORM 990 WITH THE ENTIRE BOARD. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY THAT ADDRESSES THE CONSIDERATION OF POTENTIAL CONFLICTS OF INTEREST BY THE BOARD OF DIRECTORS, COMMITTEE MEMBERS, KEY EMPLOYEES, AND THEIR RELATIVES. AS PER THE POLICY, SUCH PERSONS MUST MAKE DISCLOSURE OF ANY POTENTIAL CONFLICTS OF INTEREST AND MUST ABSTAIN FROM VOTING ON ANY ACTION IN WHICH THEY MAY HAVE AN INTEREST. ON AN ANNUAL BASIS, ALL BOARD MEMBERS ARE REQUIRED TO SIGN OFF ON AN ANNUAL CONFLICT OF INTEREST FORM, EITHER STATING ANY KNOWN CONFLICTS, OR STATING THAT THERE ARE NONE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS DETERMINES REASONABLE AND APPROPRIATE SALARIES FOR KEY EMPLOYEES OF THE ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION GENERALLY MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, LINE 1A LOS NINOS HOSPITAL, INC. IS RELATED TO TWO TAX EXEMPT AFFILIATES, HACIENDA, INC. AND HACIENDA SKILLED NURSING FACILITY, INC. THESE THREE ORGANIZATIONS SHARE A COMMON MANAGEMENT TEAM. THE INDIVIDUALS ON THE MANAGEMENT TEAM ARE COMPENSATED AS EMPLOYEES THROUGH HACIENDA, INC. HACIENDA, INC. CHARGES A MANAGEMENT FEE FOR THESE SERVICES TO BOTH LOS NINOS HOSPITAL, INC. AND TO HACIENDA SKILLED NURSING FACILITY, INC. THE COMPENSATION AMOUNTS LISTED IN PART VII ARE THE TOTAL GROSS WAGES AND OTHER COMPENSATION PAID TO THESE INDIVIDUALS FOR THEIR SERVICES TO ALL THREE ORGANIZATIONS. FORM 990, PART XI, LINE 9: TRANSFERS TO AFFILIATES -1,785,743. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS NOT CHANGED THE PROCESS FROM PRIOR YEARS. HACIENDA SKILLED NURSING FACILITY INC 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 141906233 NURSING CARE & RESPIRATORY INTERVENTION AZ 501(C)(3) LINE 10 N/A 0 HACIENDA INC 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 860253158 PROVIDE SERVICES FOR HANDICAPPED & CHRONICALLY ILL CHILDREN AZ 501(C)(3) LINE 10 N/A 0 HACIENDA CHILDRENS HOSPITAL INC 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 473035370 NON-PROFIT CHILDREN'S HOSPITAL AZ 501(C)(3) LINE 10 N/A 0 SOUTH MOUNTAIN HEALTH SUPPLY 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 860858893 MEDICAL SUPPLY COMPANY AZ HACIENDA HEALTHCARE C 0 INNOVATIVE HOME HEALTH INC 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 262398755 HOME HEALTH NURSING SERVICES AZ HACIENDA HEALTHCARE C 0 HACIENDA HEALTHCARE 1402 E SOUTH MOUNTAIN AVE PHOENIX AZ 85042 272988610 BRAND NAME FOR AFFILIATE ORGANIZATIONS AZ HACIENDA HEALTHCARE C 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 1 0 1 0