2018-05-15T07:45:44-05:00 2017-06-30 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2016-07-01 460360899 Regional Health Network Inc REGI 6057559130 2925 Regional Way PO Box 6000 Rapid City SD 57701 Mark Thompson CFO 6057559130 2018-05-10 1 Kim Hunwardsen CPA P00484560 6122536500 2018-05-10 2016 2022-09-23 18:48:47Z Brent Phillips 2925 Regional Way PO Box 6000 Rapid City SD 57701 155612190 0 X www.regionalhealth.com X 1981 SD Helping Patients and Communities Live Well 11 8 1416 284 2154537 -137537 1497752 914625 154371886 154546086 3077127 102685 78333 19877 159025098 155583273 0 0 0 0 83859273 85551812 0 0 0 68987437 74394900 152846710 159946712 6178388 -4363439 78958381 81174246 7681560 14247152 71276821 66927094 X Purpose: Helping Patients and Communities Live WellVision: We aspire to be the best healthcare system in AmericaValues: Compassion, Innovation, Courage, Mutual Respect, IntegrityPriorities: Patient & Family EXPERIENCE; Culture of Safety & Quality CARE; Physician & Caregiver EMPOWERMENT; Community & Financial STEWARDSHIP. 0 0 97996217 111041728 Regional Health Network owns the following acute care hospitals (including physician clinics) and senior care facilities; Custer Regional Hospital / Custer Regional Senior Care, Lead-Deadwood Regional Hospital, Spearfish Regional Hospital and Sturgis Regional Hospital / Sturgis Regional Senior Care. The Health Network also owns leases and operates physician clinics in the South Dakota communities of Belle Fourche, Buffalo, Hot Springs, and the clinics in the Wyoming communities of Newcastle and Upton. Together, these facilities provide common access to compassionate, quality, advanced health care through its numerous healing environments to the greater Black Hills region. 7574154 31207500 Spearfish Regional Hospital's surgery department offers surgical services provided by General Surgeons, Dermatology, ENT, OB/Gyns, Orthopedic Surgeons and Podiatrists. In FY17, a total of 1,991 surgeries were completed at the main campus. 6527743 5978517 Spearfish Regional Hospital's Queen City Medical Clinic is a hospital outpatient department providing primary care. It has a total of 47.20 full time equivalents that includes physicians (9.74) and advanced practice providers (4.38) provided by its related entity, Regional Health Physicians. This hospital outpatient department had 35,090 encounters throughout the year. 4761716 4172778 Spearfish Regional Hospital's Orthopedic Clinic is a hospital outpatient department providing orthopedic care. It has a total of 17.76 full time equivalents that includes orthopedic surgeons (2.93) and advanced practice providers (4.09) provided by its related entity, Regional Health Physicians. This hospital outpatient department experienced 14,587 encounters during the year. 4761716 4172778 116859830 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 X 0 0 1416 1 1 1 0 0 0 0 1 1 0 0 0 0 X 11 8 1 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X X Mark Thompson 6057559127 2925 Regional Way Rapid City SD 57701 Richard Tysdal Chairman 1.37 0.03 X X 0 0 0 David Thom Vice Chairman 0.45 0.00 X X 0 0 0 Dusty Pinske Board member 1.02 0.02 X 0 0 0 Robert Haivala Board member 0.53 0.00 X 0 0 0 Lee B Bailey MD Board member/Emergency Physician 40.31 0.00 X 359808 0 61934 Paul Bisson Board member 0.72 0.00 X 0 0 0 Christopher Gasbarre DO Board member 0.84 40.03 X 0 648415 66168 Ross Lamphere Board member 0.45 0.00 X 0 0 0 Donovin Sprague Board member 0.08 0.00 X 0 0 0 Pat Walker Board member 0.84 0.00 X 0 0 0 Brent Phillips President and CEO 12.56 47.44 X 0 1002798 180200 Mark A Thompson CFO/Treasurer 11.51 43.49 X 0 486982 89668 Mary E Masten General Counsel/Secretary 11.51 43.49 X 0 382350 81638 Paulette Davidson Chief Operating Officer 11.51 43.49 X 0 487508 91910 Maureen Henson VP Human Resources 11.51 43.49 X 0 317431 43944 Richard S Latuchie VP Info Technology/CIO 11.51 43.49 X 0 403618 25252 Laura Wightman Chief Nursing Officer 11.51 43.49 X 0 280207 52803 Kyle Richards President - Hills Mkt 55.00 0.00 X 324091 0 62423 Mark Schmidt President Lead-Deadwood 55.00 0.00 X 209221 0 47647 Veronica Schmidt President - Custer 55.00 0.00 X 216610 0 51262 Mark Schulte President - Sturgis 55.00 0.00 X 209777 0 48757 Larry Veitz President - Spearfish 55.00 0.00 X 283419 0 55955 Krista Birkelo DO Physician - Emergency Serv 40.00 0.00 X 311870 0 34208 Christopher FrommMD Physician - Emergency Serv 40.00 0.00 X 336097 0 59645 Matthew FinkeMD Physician - Emergency Services 40.00 0.00 X 232855 0 40170 Sherry Bea Smith VP Network Integration 40.00 0.00 X 178990 0 26573 Thomas Reid Nurse Anesthetist 40.00 0.00 X 188614 0 35488 2851352 4009309 1155645 39 0 1 0 Athena Health Inc 311 Arsenal St Watertown MA 02472 Computer Software-Practice Management Bi 2294310 Alliance Recruiting Resources Inc PO Box 670416 Dallas TX 752670416 Temporary Physician Staffing Services 1540739 MEDEFIS 10826 Old Mill Rd 101 Omaha NE 68105 Temporary Medical Staff Coverage 1422870 Weatherby Locums Inc PO Box 972633 Dallas TX 75397 Temporary Medical Staff Coverage 1233539 MAYO Collaborative Service PO Box 9146 Minneapolis MN 55480 LABORATORY TESTS 459031 19 1229 107439 805957 914625 Acute Care Hospital IP and OP 623000 95397276 95397276 Physician Clinics 621110 31040000 31040000 Long Term Care Facilities 623000 10219000 10219000 Home Care Services 621610 1506000 1506000 Assisted Living Facilities 623000 398000 398000 15985810 13831273 2154537 154546086 1802 1802 35309 14188 21121 21121 21121 100883 0 100883 100883 100883 13485 1229 14729 -1244 -1244 155583273 152391549 2154537 122562 1713776 401723 1312053 66498436 56728120 9770316 1327348 1111695 215653 11809030 9890429 1918601 4203222 3462881 740341 220117 220117 15062 15062 10078217 7453522 2624695 81718 7536 74182 341104 192609 148495 1011460 689096 322364 2651298 509454 2141844 219255 152868 66387 404528 373425 31103 7958 1069 6889 6187187 2933695 3253492 961901 618107 343794 Intercompany Charges 25233801 7331971 17901830 Medical Supplies 14093417 14043169 50248 Miscellaneous 6890733 4961317 1929416 Bad Debt Expense 5997144 5997144 159946712 116859830 43086882 0 119100 312969 21018316 19534170 1880769 2049191 549402 546365 98256709 42287859 49032843 55968850 260005 309284 54656 6097946 2398761 78958381 81174246 7681560 6077435 0 8169717 7681560 14247152 X 68501806 65080538 2675015 1746556 100000 100000 71276821 66927094 78958381 81174246 -4363439 13712 0 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 15062 15062 0 Part II-B, Line 1: Annual dues are paid to the South Dakota Association of Healthcare Organizations. A portion of the dues are applicable to lobbying activities. For calendar year 2017 dues, which were paid in fiscal year 2017, in the amount of $97,160.45, 6.185% was used for lobbying purposes. In addition, annual dues were paid to the American Hospital Association, a portion of which is applicable to lobbying activities. For calendar year 2017 dues, which were paid in fiscal year 2017, in the amount of $41,563.00, 21.780% was used for lobbying purposes. 121703 24882 146585 120509 1194 121703 116730 3779 120509 100000 16730 116730 100000 100000 0.68220 0.31780 0 0 9331968 9331968 47103839 23032587 24071252 1137888 634087 503801 29174777 18621185 10553592 11508237 11508237 55968850 Due To Related Parties 8169717 8169717 X Part V, Line 4: Endowed funds are permanently restricted from use and are held in an interest bearing account. The interest earned may be used by the organization at its discretion. Part X, Line 2: References to "Regional Health" apply to all entities controlled or leased by Regional Health, Inc. and its subsidiaries. This includes the reporting entity. Regional Health is organized as a nonprofit corporation as described in Section 501(c)(3) of the Internal Revenue Code, and is exempt from federal income taxes on related income pursuant to Section 501(a) of the Code. Certain consolidated subsidiaries, including Regional Health Home Plus are not tax-exempt entities and are considered disregarded entities for tax purposes. Regional Health is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, Regional Health is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose (Form 990T). Regional Health believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the consolidated financial statements. Regional Health would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Regional Health's federal Form 990T filings are no longer subject to federal tax examinations by tax authorities for years before 2013. 1 1 X 1 X 1 X 1 1 0 1 1 4337275 4337275 0.02820 16690128 11629098 5061030 0.03290 21027403 11629098 9398305 0.06110 8 817 2009337 2009337 0.01310 2 4173 4173 0.00000 9 4894392 4404054 490338 0.00320 2 125 6853 6853 0.00000 21 942 6914755 4404054 2510701 0.01630 21 942 27942158 16033152 11909006 0.07740 1 1093 1093 0.00000 1 545 1984 1984 0.00000 2 545 3077 3077 0.00000 1 5997144 210649 40873301 40469617 403684 X 1 1 4 1 Spearfish Regional Hospital 1440 N Main Street Spearfish SD 57783 www.regionalhealth.com 10566 X X X 6 Provider-based clinics A 2 Custer Regional Hospital 1039 Montgomery Street Custer SD 57730 www.regionalhealth.com 47660 X X X X 2 Provider-based clinics A 3 Sturgis Regional Hospital 949 Harmon Street Sturgis SD 57785 www.regionalhealth.com 10567 X X X X A 4 Lead-Deadwood Regional Hospital 61 Charles Street Deadwood SD 57732 www.regionalhealth.com 10535 X X X X 1 Provider-based clinic A Facility Reporting Group - A 0 0 1 X X X X X X X X X 15 1 1 0 1 X See Section C, Line 7d X X 1 15 1 See Section C, Line 7d 0 1 X 200.000000000000 250.000000000000 X X X 1 1 X X X X 1 X See Section C, Line 16a-c X See Section C, Line 16a-c X See Section C, Line 16a-c X X X X X X 1 X 0 X X X X 1 X 0 1 Part V, Section B Facility Reporting Group A Facility Reporting Group A consists of: - Facility 1: Spearfish Regional Hospital, - Facility 2: Custer Regional Hospital, - Facility 3: Sturgis Regional Hospital, - Facility 4: Lead-Deadwood Regional Hospital Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 5: As part of the community health needs assessment, an online key informant survey was conducted that solicited input from individuals who have a broad interest in the health of the community. Participants were chosen because of their ability to identify primary concerns of the populations with whom they work, as well as of the community overall.Key informants were contacted by email, introducing the purpose of the survey and providing a link to take the survey online; reminder emails were sent as needed to increase participation. A total of 294 community stakeholders comprised of physicians, public health representatives, other health professionals, social service providers, and a variety of other community leaders completed the key informant survey for the Regional Health service area. Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 6a: The Community Health Needs Assessment was undertaken by Regional Health, including: Rapid City Regional Hospital, Same Day Surgery Center, Spearfish Regional Hospital, Sturgis Regional Hospital, Lead-Deadwood Regional Hospital, and Custer Regional Hospital. Under a management contract with Regional Health, Hans P. Peterson Memorial Hospital in Philip, SD, also collaborated on the project. Hans P. Peterson Memorial Hospital provided funding for their portion of the assessment. Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 7d: http://www.regionalhealth.com/about-us/community-needs-assessment Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 11: In review of the needs identified in the 2015 CHNA, Spearfish Regional Hospital (SPRH), the areas below will not be addressed due to prioritization of health needs:1)Cancer: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. Awareness activities through the American Cancer Society also currently exist in the community and surrounding area. 2)Dementia: Including Alzheimer's Disease: This issue will not be addressed as a primary need, but will be impacted through the mental health priority. In addition, there are local licensed skilled nursing facilities providing services to the elderly of the community. 3)Diabetes: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.4)Heart Disease & Stroke: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.5)Infant health and Family Planning: Data from the CHNA revealed that infant mortality and teen births were of greatest concern in this area in the community. However, limited resources and lower priority excluded this as an area chosen for action. 6)Injury & violence: Limited resources and lower priority excluded this as an area chosen for action.7)Oral Health: Limited resources, services and expertise available to address oral health and access to oral health insurance resulted in excluding this as an area chosen for action. Other community organizations have infrastructure and programs in place to better meet this need. 8)Respiratory Disease: This priority area falls more within the purview of other community resources, including outpatient clinical settings.9)Sexually Transmitted Diseases: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. 10)Substance Abuse: This issue will not be addressed as a primary need, but will be impacted through the mental health priority.During FY17, Regional Health focused on the following three priority areas identified through the most recent CHNA: Access to Healthcare Services, Mental Health, and Wellness (Physical Activity, Nutrition, and Weight). A workgroup for each priority was formed comprised of representatives from Rapid City Regional Hospital, Same Day Surgery Center, Regional Health Network, and the community. Workgroups met on a monthly basis to work on the strategies outlined in the Community Health Improvement Plan (CHIP) for the selected priority area. Oversight for the workgroups was provided by a Community Health Steering Team which includes leadership representing Rapid City Regional Hospital, Same Day Surgery Center, and Regional Health Network. In FY17, the Access to Healthcare Services workgroup focused on strategies to support access to primary and preventive care for vulnerable populations. This included increasing support for the All Women Count SD program which provides free breast and cervical cancer screenings for low income women. The team worked to identify methods of identifying and reaching out to patients that would qualify for the program. The other three objectives identified on the Access portion of the CHIP were addressed through the work of strategic objective teams formed at a system level. These include the following:-Improve Patient Access for Primary Care, Specialists, and Diagnostic Procedures.-Develop and implement a community-based population health program.-Investigate, Plan, Build and Launch First Phase of a Digital Health StrategyThe goal of the Mental Health priority is to increase access and awareness of culturally appropriate mental health resources and education using the following three objectives:-Reduce stigma of mental health and increase public and provider awareness of mental health resources available in their community.Improve mental health screening process across the Black Hills region (starting with Regional Health system).Explore adding mental health access into primary care clinics.In FY17, the Mental Health workgroup worked on the following strategies to meet these objectives: -Review and create process for updating 211 Helpline's Behavioral Health Guide to ensure accuracy of the list of mental health resources in the service area.-Standardize mental health screening tool - review current mental health screening tools used across the Regional Health system and provide recommendations to the Epic implementation team on which tool to include in the new electronic health record going live in October 2017.Develop publicity campaign in partnership with community to reduce stigma of mental health - exploring collaboration with statewide youth suicide grant.The goal of the Wellness priority is to explore, develop, and support opportunities that will positively impact the health of our community in the areas of physical activity, nutrition, and weight management. There are two objectives under this priority area: -Increase community awareness of chronic disease prevention and management programs that promote healthy lifestyle choices. Enhance access to organized well-being programs and activities in the community.In FY17, the Wellness workgroup worked on the following strategies to meet these objectives: -Enhance access to the Regional Health Diabetes Prevention Program - developed and sent surveys to current DPP participants to help identify future locations and times of classes and need for additional trainers.-Develop pediatric diabetes prevention program - grant development for CATCH (Coordinated Approach to Child Health) Program to be piloted in Spearfish and Rapid City communities.-Enhance access to the Better Choices Better Health (BCBH) Program - Regional Health's Community Health Specialist served on BCBH steering team and the Senior Director for Community Case Management from Rapid City Regional Hospital selected as a fellow for the program.-Live Well Black Hills resource support - 3 members of workgroup serving on Live Well Black Hills. Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 13b: Must reside within 200 mile radius of the location where the service was received. Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 16j: A summary of the hospital's financial assistance policy is posted for all patients at various points of entry, on the facility website, in waiting rooms, and in the admissions office. The policy in its entirety is also available upon request.The FAP application form was translated into the primary language spoken by LEP populations. This is posted on the website listed for line 16a. The FAP and plain language summary will be translated and posted on the website prior to filing of this 990. Group A-Facility 1 -- Spearfish Regional Hospital Part V, Section B, line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for medically necessary care. The financial assistance policy does not apply to certain elective procedures. Therefore, FAP-eligible patients without insurance may be charged gross charges on certain elective procedures. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 5: As part of the community health needs assessment, an online key informant survey was conducted that solicited input from individuals who have a broad interest in the health of the community. Participants were chosen because of their ability to identify primary concerns of the populations with whom they work, as well as of the community overall.Key informants were contacted by email, introducing the purpose of the survey and providing a link to take the survey online; reminder emails were sent as needed to increase participation. A total of 294 community stakeholders comprised of physicians, public health representatives, other health professionals, social service providers, and a variety of other community leaders completed the key informant survey for the Regional Health service area. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 6a: The Community Health Needs Assessment was undertaken by Regional Health, including: Rapid City Regional Hospital, Same Day Surgery Center, Spearfish Regional Hospital, Sturgis Regional Hospital, Lead-Deadwood Regional Hospital, and Custer Regional Hospital. Under a management contract with Regional Health, Hans P. Peterson Memorial Hospital in Philip, SD, also collaborated on the project. Hans P. Peterson Memorial Hospital provided funding for their portion of the assessment. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 7d: http://www.regionalhealth.com/about-us/community-needs-assessment Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 11: In review of the needs identified in the 2015 CHNA, Custer Regional Hospital (CRH), the areas below will not be addressed due to prioritization of health needs:1)Cancer: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. Awareness activities through the American Cancer Society also currently exist in the community and surrounding area. 2)Dementia: Including Alzheimer's Disease: This issue will not be addressed as a primary need, but will be impacted through the mental health priority. In addition, there are local licensed skilled nursing facilities providing services to the elderly of the community. 3)Diabetes: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.4)Heart Disease & Stroke: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.5)Infant health and Family Planning: Data from the CHNA revealed that infant mortality and teen births were of greatest concern in this area in the community. However, limited resources and lower priority excluded this as an area chosen for action. 6)Injury & violence: Limited resources and lower priority excluded this as an area chosen for action.7)Oral Health: Limited resources, services and expertise available to address oral health and access to oral health insurance resulted in excluding this as an area chosen for action. Other community organizations have infrastructure and programs in place to better meet this need. 8)Respiratory Disease: This priority area falls more within the purview of other community resources, including outpatient clinical settings.9)Sexually Transmitted Diseases: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. 10)Substance Abuse: This issue will not be addressed as a primary need, but will be impacted through the mental health priority.11)Potentially Disabling Conditions: This issue will not be addressed as a primary need, but could be impacted through the Nutrition, Physical Activity and Weight and Access to Health Care Services priorities.12)Hearing & Vision: Limited resources excluded this as an area chosen for action. Other community organizations have infrastructure and programs in place to better meet this need.During FY17, Regional Health focused on the following three priority areas identified through the most recent CHNA: Access to Healthcare Services, Mental Health, and Wellness (Physical Activity, Nutrition, and Weight). A workgroup for each priority was formed comprised of representatives from Rapid City Regional Hospital, Same Day Surgery Center, Regional Health Network, and the community. Workgroups met on a monthly basis to work on the strategies outlined in the Community Health Improvement Plan (CHIP) for the selected priority area. Oversight for the workgroups was provided by a Community Health Steering Team which includes leadership representing Rapid City Regional Hospital, Same Day Surgery Center, and Regional Health Network. In FY17, the Access to Healthcare Services workgroup focused on strategies to support access to primary and preventive care for vulnerable populations. This included increasing support for the All Women Count SD program which provides free breast and cervical cancer screenings for low income women. The team worked to identify methods of identifying and reaching out to patients that would qualify for the program. The other three objectives identified on the Access portion of the CHIP were addressed through the work of strategic objective teams formed at a system level. These include the following:-Improve Patient Access for Primary Care, Specialists, and Diagnostic Procedures.-Develop and implement a community-based population health program.-Investigate, Plan, Build and Launch First Phase of a Digital Health StrategyThe goal of the Mental Health priority is to increase access and awareness of culturally appropriate mental health resources and education using the following three objectives:-Reduce stigma of mental health and increase public and provider awareness of mental health resources available in their community.Improve mental health screening process across the Black Hills region (starting with Regional Health system).Explore adding mental health access into primary care clinics.In FY17, the Mental Health workgroup worked on the following strategies to meet these objectives: -Review and create process for updating 211 Helpline's Behavioral Health Guide to ensure accuracy of the list of mental health resources in the service area.-Standardize mental health screening tool - review current mental health screening tools used across the Regional Health system and provide recommendations to the Epic implementation team on which tool to include in the new electronic health record going live in October 2017.Develop publicity campaign in partnership with community to reduce stigma of mental health - exploring collaboration with statewide youth suicide grant.The goal of the Wellness priority is to explore, develop, and support opportunities that will positively impact the health of our community in the areas of physical activity, nutrition, and weight management. There are two objectives under this priority area: -Increase community awareness of chronic disease prevention and management programs that promote healthy lifestyle choices. Enhance access to organized well-being programs and activities in the community.In FY17, the Wellness workgroup worked on the following strategies to meet these objectives: -Enhance access to the Regional Health Diabetes Prevention Program - developed and sent surveys to current DPP participants to help identify future locations and times of classes and need for additional trainers.-Develop pediatric diabetes prevention program - grant development for CATCH (Coordinated Approach to Child Health) Program to be piloted in Spearfish and Rapid City communities.-Enhance access to the Better Choices Better Health (BCBH) Program - Regional Health's Community Health Specialist served on BCBH steering team and the Senior Director for Community Case Management from Rapid City Regional Hospital selected as a fellow for the program.-Live Well Black Hills resource support - 3 members of workgroup serving on Live Well Black Hills. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 13b: Must reside within 200 mile radius of the location where the service was received. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 16j: A summary of the hospital's financial assistance policy is posted for all patients at various points of entry, on the facility website, in waiting rooms, and in the admissions office. The policy in its entirety is also available upon request.The FAP application form was translated into the primary language spoken by LEP populations. This is posted on the website listed for line 16a. The FAP and plain language summary will be translated and posted on the website prior to filing of this 990. Group A-Facility 2 -- Custer Regional Hospital Part V, Section B, line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for medically necessary care. The financial assistance policy does not apply to certain elective procedures. Therefore, FAP-eligible patients without insurance may be charged gross charges on certain elective procedures. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 5: As part of the community health needs assessment, an online key informant survey was conducted that solicited input from individuals who have a broad interest in the health of the community. Participants were chosen because of their ability to identify primary concerns of the populations with whom they work, as well as of the community overall.Key informants were contacted by email, introducing the purpose of the survey and providing a link to take the survey online; reminder emails were sent as needed to increase participation. A total of 294 community stakeholders comprised of physicians, public health representatives, other health professionals, social service providers, and a variety of other community leaders completed the key informant survey for the Regional Health service area. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 6a: The Community Health Needs Assessment was undertaken by Regional Health, including: Rapid City Regional Hospital, Same Day Surgery Center, Spearfish Regional Hospital, Sturgis Regional Hospital, Lead-Deadwood Regional Hospital, and Custer Regional Hospital. Under a management contract with Regional Health, Hans P. Peterson Memorial Hospital in Philip, SD, also collaborated on the project. Hans P. Peterson Memorial Hospital provided funding for their portion of the assessment. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 7d: http://www.regionalhealth.com/about-us/community-needs-assessment Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 11: In review of the needs identified in the 2015 CHNA, Sturgis Regional Hospital (STRH), the areas below will not be addressed due to prioritization of health needs:1)Cancer: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. Awareness activities through the American Cancer Society also currently exist in the community and surrounding area. 2)Dementia: Including Alzheimer's Disease: This issue will not be addressed as a primary need, but will be impacted through the mental health priority. In addition, there are local licensed skilled nursing facilities providing services to the elderly of the community. 3)Diabetes: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.4)Heart Disease & Stroke: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.5)Infant health and Family Planning: Data from the CHNA revealed that infant mortality and teen births were of greatest concern in this area in the community. However, limited resources and lower priority excluded this as an area chosen for action. 6)Injury & violence: Limited resources and lower priority excluded this as an area chosen for action.7)Oral Health: Limited resources, services and expertise available to address oral health and access to oral health insurance resulted in excluding this as an area chosen for action. Other community organizations have infrastructure and programs in place to better meet this need. 8)Respiratory Disease: This priority area falls more within the purview of other community resources, including outpatient clinical settings.9)Sexually Transmitted Diseases: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. 10)Substance Abuse: This issue will not be addressed as a primary need, but will be impacted through the mental health priority.11)Tobacco Use: Limited resources and lower priority excluded this as an area chosen for action. Sturgis Regional Hospital does provide smoking/tobacco cessation information to patients.During FY17, Regional Health focused on the following three priority areas identified through the most recent CHNA: Access to Healthcare Services, Mental Health, and Wellness (Physical Activity, Nutrition, and Weight). A workgroup for each priority was formed comprised of representatives from Rapid City Regional Hospital, Same Day Surgery Center, Regional Health Network, and the community. Workgroups met on a monthly basis to work on the strategies outlined in the Community Health Improvement Plan (CHIP) for the selected priority area. Oversight for the workgroups was provided by a Community Health Steering Team which includes leadership representing Rapid City Regional Hospital, Same Day Surgery Center, and Regional Health Network. In FY17, the Access to Healthcare Services workgroup focused on strategies to support access to primary and preventive care for vulnerable populations. This included increasing support for the All Women Count SD program which provides free breast and cervical cancer screenings for low income women. The team worked to identify methods of identifying and reaching out to patients that would qualify for the program. The other three objectives identified on the Access portion of the CHIP were addressed through the work of strategic objective teams formed at a system level. These include the following:-Improve Patient Access for Primary Care, Specialists, and Diagnostic Procedures.-Develop and implement a community-based population health program.-Investigate, Plan, Build and Launch First Phase of a Digital Health StrategyThe goal of the Mental Health priority is to increase access and awareness of culturally appropriate mental health resources and education using the following three objectives:-Reduce stigma of mental health and increase public and provider awareness of mental health resources available in their community.Improve mental health screening process across the Black Hills region (starting with Regional Health system).Explore adding mental health access into primary care clinics.In FY17, the Mental Health workgroup worked on the following strategies to meet these objectives: -Review and create process for updating 211 Helpline's Behavioral Health Guide to ensure accuracy of the list of mental health resources in the service area.-Standardize mental health screening tool - review current mental health screening tools used across the Regional Health system and provide recommendations to the Epic implementation team on which tool to include in the new electronic health record going live in October 2017.Develop publicity campaign in partnership with community to reduce stigma of mental health - exploring collaboration with statewide youth suicide grant.The goal of the Wellness priority is to explore, develop, and support opportunities that will positively impact the health of our community in the areas of physical activity, nutrition, and weight management. There are two objectives under this priority area: -Increase community awareness of chronic disease prevention and management programs that promote healthy lifestyle choices. Enhance access to organized well-being programs and activities in the community.In FY17, the Wellness workgroup worked on the following strategies to meet these objectives: -Enhance access to the Regional Health Diabetes Prevention Program - developed and sent surveys to current DPP participants to help identify future locations and times of classes and need for additional trainers.-Develop pediatric diabetes prevention program - grant development for CATCH (Coordinated Approach to Child Health) Program to be piloted in Spearfish and Rapid City communities.-Enhance access to the Better Choices Better Health (BCBH) Program - Regional Health's Community Health Specialist served on BCBH steering team and the Senior Director for Community Case Management from Rapid City Regional Hospital selected as a fellow for the program.-Live Well Black Hills resource support - 3 members of workgroup serving on Live Well Black Hills. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 13b: Must reside within 200 mile radius of the location where the service was received. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 16j: A summary of the hospital's financial assistance policy is posted for all patients at various points of entry, on the facility website, in waiting rooms, and in the admissions office. The policy in its entirety is also available upon request.The FAP application form was translated into the primary language spoken by LEP populations. This is posted on the website listed for line 16a. The FAP and plain language summary will be translated and posted on the website prior to filing of this 990. Group A-Facility 3 -- Sturgis Regional Hospital Part V, Section B, line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for medically necessary care. The financial assistance policy does not apply to certain elective procedures. Therefore, FAP-eligible patients without insurance may be charged gross charges on certain elective procedures. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 5: As part of the community health needs assessment, an online key informant survey was conducted that solicited input from individuals who have a broad interest in the health of the community. Participants were chosen because of their ability to identify primary concerns of the populations with whom they work, as well as of the community overall.Key informants were contacted by email, introducing the purpose of the survey and providing a link to take the survey online; reminder emails were sent as needed to increase participation. A total of 294 community stakeholders comprised of physicians, public health representatives, other health professionals, social service providers, and a variety of other community leaders completed the key informant survey for the Regional Health service area. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 6a: The Community Health Needs Assessment was undertaken by Regional Health, including: Rapid City Regional Hospital, Same Day Surgery Center, Spearfish Regional Hospital, Sturgis Regional Hospital, Lead-Deadwood Regional Hospital, and Custer Regional Hospital. Under a management contract with Regional Health, Hans P. Peterson Memorial Hospital in Philip, SD, also collaborated on the project. Hans P. Peterson Memorial Hospital provided funding for their portion of the assessment. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 7d: http://www.regionalhealth.com/about-us/community-needs-assessment Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 11: In review of the needs identified in the 2015 CHNA, Lead/Deadwood Regional Hospital (LDRH), the areas below will not be addressed due to prioritization of health needs:1)Cancer: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. Awareness activities through the American Cancer Society also currently exist in the community and surrounding area. 2)Dementia: Including Alzheimer's Disease: This issue will not be addressed as a primary need, but will be impacted through the mental health priority. In addition, there are local licensed skilled nursing facilities providing services to the elderly of the community. 3)Diabetes: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.4)Heart Disease & Stroke: This issue will not be addressed as a primary need, but will be impacted through the Nutrition, Physical Activity and Weight priority.5)Infant health and Family Planning: Data from the CHNA revealed that infant mortality and teen births were of greatest concern in this area in the community. However, limited resources and lower priority excluded this as an area chosen for action. 6)Injury & violence: Limited resources and lower priority excluded this as an area chosen for action.7)Oral Health: Limited resources, services and expertise available to address oral health and access to oral health insurance resulted in excluding this as an area chosen for action. Other community organizations have infrastructure and programs in place to better meet this need. 8)Respiratory Disease: This priority area falls more within the purview of other community resources, including outpatient clinical settings.9)Sexually Transmitted Diseases: This issue will not be addressed as a primary need, but will be impacted through the access to healthcare services priority. 10)Substance Abuse: This issue will not be addressed as a primary need, but will be impacted through the mental health priority.During FY17, Regional Health focused on the following three priority areas identified through the most recent CHNA: Access to Healthcare Services, Mental Health, and Wellness (Physical Activity, Nutrition, and Weight). A workgroup for each priority was formed comprised of representatives from Rapid City Regional Hospital, Same Day Surgery Center, Regional Health Network, and the community. Workgroups met on a monthly basis to work on the strategies outlined in the Community Health Improvement Plan (CHIP) for the selected priority area. Oversight for the workgroups was provided by a Community Health Steering Team which includes leadership representing Rapid City Regional Hospital, Same Day Surgery Center, and Regional Health Network. In FY17, the Access to Healthcare Services workgroup focused on strategies to support access to primary and preventive care for vulnerable populations. This included increasing support for the All Women Count SD program which provides free breast and cervical cancer screenings for low income women. The team worked to identify methods of identifying and reaching out to patients that would qualify for the program. The other three objectives identified on the Access portion of the CHIP were addressed through the work of strategic objective teams formed at a system level. These include the following:-Improve Patient Access for Primary Care, Specialists, and Diagnostic Procedures.-Develop and implement a community-based population health program.-Investigate, Plan, Build and Launch First Phase of a Digital Health StrategyThe goal of the Mental Health priority is to increase access and awareness of culturally appropriate mental health resources and education using the following three objectives:-Reduce stigma of mental health and increase public and provider awareness of mental health resources available in their community.Improve mental health screening process across the Black Hills region (starting with Regional Health system).Explore adding mental health access into primary care clinics.In FY17, the Mental Health workgroup worked on the following strategies to meet these objectives: -Review and create process for updating 211 Helpline's Behavioral Health Guide to ensure accuracy of the list of mental health resources in the service area.-Standardize mental health screening tool - review current mental health screening tools used across the Regional Health system and provide recommendations to the Epic implementation team on which tool to include in the new electronic health record going live in October 2017.Develop publicity campaign in partnership with community to reduce stigma of mental health - exploring collaboration with statewide youth suicide grant.The goal of the Wellness priority is to explore, develop, and support opportunities that will positively impact the health of our community in the areas of physical activity, nutrition, and weight management. There are two objectives under this priority area: -Increase community awareness of chronic disease prevention and management programs that promote healthy lifestyle choices. Enhance access to organized well-being programs and activities in the community.In FY17, the Wellness workgroup worked on the following strategies to meet these objectives: -Enhance access to the Regional Health Diabetes Prevention Program - developed and sent surveys to current DPP participants to help identify future locations and times of classes and need for additional trainers.-Develop pediatric diabetes prevention program - grant development for CATCH (Coordinated Approach to Child Health) Program to be piloted in Spearfish and Rapid City communities.-Enhance access to the Better Choices Better Health (BCBH) Program - Regional Health's Community Health Specialist served on BCBH steering team and the Senior Director for Community Case Management from Rapid City Regional Hospital selected as a fellow for the program.-Live Well Black Hills resource support - 3 members of workgroup serving on Live Well Black Hills. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 13b: Must reside within 200 mile radius of the location where the service was received. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 16j: A summary of the hospital's financial assistance policy is posted for all patients at various points of entry, on the facility website, in waiting rooms, and in the admissions office. The policy in its entirety is also available upon request.The FAP application form was translated into the primary language spoken by LEP populations. This is posted on the website listed for line 16a. The FAP and plain language summary will be translated and posted on the website prior to filing of this 990. Group A-Facility 4 -- Lead-Deadwood Regional Hospital Part V, Section B, line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for medically necessary care. The financial assistance policy does not apply to certain elective procedures. Therefore, FAP-eligible patients without insurance may be charged gross charges on certain elective procedures. Part V, Lines 16a-c All Facilities The Financial Assistance Policy, Application form, and plain language summary are available at http://www.regionalhealth.com/patients-and-families 9 1 - Regional Health Care Center - Custer 1065 Montgomery Street Custer SD 57730 Skilled Long Term Nursing Home 2 - Regional Health Medical Clinic 890 Lazelle Street Sturgis SD 57785 Clinic 3 - Regional Health Care Center - Sturgis 949 Harmon Street Sturgis SD 57785 Skilled Long Term Nursing Home 4 - Regional Health Medical Clinic 1121 Washington Blvd Newcastle WY 82701 Clinic 5 - Regional Health Assisted Living 423 N 10th Street Custer SD 57730 Assisted Living 6 - Regional Health Medical Clinic 130 North 15th St Hot Springs SD 57747 Clinic 7 - Regional Health Medical Clinic 209 Ramsland Street Buffalo SD 57720 Clinic 8 - Regional Health Medical Clinic 717 Pine Street Upton WY 82730 Clinic 9 - Regional Health Medical Clinic 1100 Highway 71 South Suite 101 Hot Springs SD 57747 Clinic Part I, Line 3c: References to "Regional Health" apply to all entities controlled or leased by Regional Health, Inc. This includes the reporting entity.Part I, Line 3c: Financial assistance debt reduction write-offs for free or discounted care are based on an income matrix utilizing the current Federal Poverty Level (FPL) income guidelines after satisfying applicable co-pay requirements. The income matrix is updated annually as the FPL guidelines are released. Part I, Line 6a: Regional Health Network is included in the community benefit report prepared by Regional Health. This report is available on the Regional Health website. Part I, Line 7: Ratio of patient care cost to charges is used for the calculation of cost of services provided for lines 7a, 7b and 7g. Actual costs are used for the calculation of costs of services provided for lines 7e,7f and 7i. Part I, Ln 7 Col(f): The Bad Debt expense included on Form 990, Part IX, Line 25(A), but subtracted for purposes of calculating the percentage in this column is $5,997,144. Part II, Community Building Activities: Regional Health provides numerous community benefit health events and screenings throughout the Black Hills Region. Regional Health also provides financial support to other nonprofit organizations to help support community health outreach. Additionally, Regional Health provides in-kind support and employee volunteers to help support community heath events and activities. Part III, Line 2: The bad debt reported on line 2 is at charges as reported on the financial statements. Part III, Line 3: The estimated amount of bad debt attributable to patients eligible under the financial assistance policy is determined through a review of the bad debt records to identify patient accounts that would be eligible for a discount under the financial assistance policy. The organization follows HFMA Statement 15, however the amount reported on Part III, Line 3 reflects amounts not previously determined to be charity care in prior years, however were determined in the current year to be charity care amounts. Part III, Line 4: The footnote to the financial statements that describes bad debt expense is located on page nine and ten of the audited financials. Part III, Line 8: The Medicare surplus is derived from the actual payments received from the Medicare program for services provided to patients with Medicare coverage. The payments are compared to the actual cost of providing the service as arrived at through the Medicare cost reports. The result is a surplus with reimbursements exceeding the costs.Medical services are provided to patients with Medicare coverage regardless of whether or not a surplus or deficit is realized. Providing Medicare services promotes access to healthcare services which are vitally needed by our community. Part III, Line 9b: The collection policy requires invoking of the financial assistance policy at any time a patient expresses financial difficulty in meeting their debt obligation. Upon invoking the FAP, all collection activity is suspended. If the patient is approved for charity, then the account is closed out of the collection process and classified as charity. If a patient expresses financial concern but fails to complete the application process, additional notification is sent to the patient prior to re-instituting collection activity. We are following the 501(r) Final Regulations timelines for notifications and collections. Part V, Line 16i Financial Assistance Policy Description of failureType of failure: 501(r)(4) - The hospital is required to translate the financial assistance policy, plain language summary and financial assistance policy application into Spanish as more than the lesser of 1,000 individuals or 5% of the community served by the hospital speaks Spanish as a primary language. The hospital did not translate the financial assistance policy or plain language summary into Spanish. Cause of the failure: The hospital facility did not realize the FAP and plain language summary were required to be translated in addition to the application. The facility uses an interpreter telephone service that allows for interpretation in 170 languages, including Spanish. This service can be used by limited English proficiency (LEP) patients for questions related to the financial assistance policy.Facility or facilities where the failure occurred: The failure occurred in all facilities operated under Regional Health Network. However, it is possible that the service area of some of the individual facilities may not be subject to the translation requirements based on specific populations.The date(s) of the failure and its discovery: February 2, 2018 The number of occurrences: UnknownDescription of the correction of the failureMethod of correction: The financial assistance policy and plain language summary were translated into Spanish. The documents were made available at each facility and on the website.Date of correction: March 26, 2018Description of the practices or procedures put into placeThe financial assistance policy and plain language summary were translated into Spanish and posted on the website at https://www.regionalhealth.com/patients-and-families. The translated documents are also available at each facility. In addition, Regional Health Network continues to provide translation services to assist LEP patients with questions they may have regarding financial assistance. Part VI, Line 2: Providing patient and family centered care is essential for advancing the patient experience here at Regional Health. Currently, HealthStream, a third party CMS approved survey vendor, has partnered with Regional Health to conduct and analyze survey data from our Inpatient, Emergency Department, Urgent Care, Physician Clinics, Outpatient ancillary services, outpatient ambulatory surgical services, and Dialysis services. Recently, HealthStream has been acquired by Press Ganey so we will still conduct Patient Experience surveys with the same intention but on different survey platform. Regional Health currently meets all CAHPS requirements and adequately prepares for future regulatory programs related to patient experience metrics. Through our several patient experience surveys types, we focus on the patient perception of communication, coordination and compassion. Meeting with executives frequently to discuss current data, areas of opportunity and highlighting achievements. Physicians are held accountable for their individual performance as measured by patient experience surveys and are evaluated, supported, and coached on best practices by members of the Regional Health patient experience team. In our current process, HealthStream collects patient experience survey feedback through mail, phone and electronic survey options after discharge/or after visit. Part VI, Line 3: Financial Assistance Program brochures explaining the policy, a copy of the policy and Financial Assistance applications are available at each point of entry. Signs alerting patients to the availability of Financial Assistance are prominently displayed and a plain language summary describing the Financial Assistance program accompanies one billing statement for hospital services sent to the patient. The Financial Assistance policy, plain language summary and Financial Assistance application are provided free upon request and are also available on the hospital website at www.regionalhealth.com. Regional Health contracts with Midland Medical Group (an unrelated entity) to meet with uninsured patients to assist them with finding a funding source or applying for financial assistance; and our self-pay outsource partner also communicates any funding and financial assistance opportunities with our patients. Part VI, Line 4: Regional Health and its affiliates provide health care services to the 380,000 people who live in the Black Hills of South Dakota and the surrounding region, as well as thousands of visitors each year. Regional Health serves a 38-county region comprised of western South Dakota, southeastern Montana, northeastern Wyoming, southwestern North Dakota and northwestern Nebraska. Part VI, Line 5: Regional Health collaborates with agencies and community-wide coalitions to address prioritized health needs within the communities we serve. Regional Health addresses its community's health needs by: 1) sustaining efforts operating within a targeted health priority area; 2) developing new programs and initiatives to address identified health needs: and 3) promoting an understanding of these health needs among other community organizations and within the public itself. Regional Health also provides financial support to other nonprofit organizations to help support community health outreach. Additionally, Regional Health provides in-kind support and employee volunteers to help support community health events and activities. Part VI, Line 6: Regional Health is committed to partnering with the communities it serves to meet the needs of each respective community. Regional Health, Inc. is the parent organization of Rapid City Regional Hospital, Inc. and Regional Health Network, Inc. These corporations work together to meet the health care needs of the region. X 1 1 1 1 0 0 0 0 0 1 0 Lee B Bailey MD Board member/Emergency Physician 336227 0 0 0 23581 0 38319 0 25521 0 423648 0 23581 0 Christopher Gasbarre DO Board member 0 618189 0 0 0 30226 0 42424 0 23744 0 714583 0 30226 Brent Phillips President and CEO 0 775117 0 222181 0 5500 0 161691 0 18509 0 1182998 0 0 Mark A Thompson CFO/Treasurer 0 407154 0 74136 0 5692 0 76949 0 12719 0 576650 0 5692 Mary E Masten General Counsel/Secretary 0 322717 0 59633 0 0 0 69302 0 12336 0 463988 0 0 Paulette Davidson Chief Operating Officer 0 406326 0 66221 0 14961 0 69824 0 22086 0 579418 0 0 Maureen Henson VP Human Resources 0 268475 0 48956 0 0 0 45908 0 -1965 0 361374 0 0 Richard S Latuchie VP Info Technology/CIO 0 347006 0 56612 0 0 0 15017 0 10235 0 428870 0 0 Laura Wightman Chief Nursing Officer 0 255718 0 24489 0 0 0 33950 0 18852 0 333009 0 0 Kyle Richards President - Hills Mkt 284519 0 39572 0 0 0 36643 0 25780 0 386514 0 0 0 Mark Schmidt President Lead-Deadwood 188499 0 20722 0 0 0 25054 0 22593 0 256868 0 0 0 Veronica Schmidt President - Custer 185615 0 25862 0 5133 0 25608 0 25654 0 267872 0 5133 0 Mark Schulte President - Sturgis 184915 0 24862 0 0 0 25013 0 23744 0 258534 0 0 0 Larry Veitz President - Spearfish 244294 0 28320 0 10805 0 38742 0 17212 0 339373 0 10805 0 Krista Birkelo DO Physician - Emergency Serv 311870 0 0 0 0 0 29300 0 4908 0 346078 0 0 0 Christopher FrommMD Physician - Emergency Serv 320582 0 0 0 15515 0 36387 0 23258 0 395742 0 15515 0 Matthew FinkeMD Physician - Emergency Services 191497 0 30222 0 11136 0 23935 0 16235 0 273025 0 0 0 Sherry Bea Smith VP Network Integration 86921 0 0 0 92069 0 19620 0 6953 0 205563 0 0 0 Thomas Reid Nurse Anesthetist 179877 0 8737 0 0 0 9596 0 25892 0 224102 0 0 0 Part I, Line 3 The Executive Committee, which is a committee of the Regional Health (parent) Board, reviews and approves base salary and total compensation ranges for all executives within the Regional Health System. Part I, Lines 4a-b Severance payments were made to the following individual: Smith, Sherry Bea 80,069 Regional Health provides a supplemental nonqualified retirement plan and a flexible benefit plan that can include deferred compensation for its executives. The following individuals had amounts deferred into the account as reported in column c on Schedule J: Bailey MD, Lee 23,704 Birkelo DO, Krista B. 20,442 Davidson, Paulette R. 61,874 Finke MD, Matthew P. 16,774 Fromm MD, Christopher K. 22,436 Gasbarre DO, Christopher 33,240 Henson, Mareen G. 37,575 Masten, Mary E. 44,401 Phillips, Brent 153,500 Richards, Kyle L. 28,250 Schmidt, Mark C. 18,525 Schmidt, Veronica L. 18,250 Schulte, Mark D. 18,250 Smith, Sherry Bea 3,717 Thompson, Mark A. 57,787 Veitz, Larry W. 24,850 Wightman, Laura C. 26,000 The following individuals had supplemental non-qualified retirement plan amounts included in schedule J, column B(iii) that were previously reported as deferred compensation on Form 990. These amounts are identified in Schedule J, column f. Bailey MD, Lee 23,581 Fromm MD, Christopher K. 15,515 Gasbarre DO, Christopher 30,226 Schmidt, Veronica L. 5,133 Thompson, Mark A. 5,692 Veitz, Larry W. 10,805 Part I, Line 7 Executives and Other Employees of System Entities will be eligible to receive annual incentive awards that are competitive with the incentives offered by the organizations in the System's Peer group(s) in accordance with the terms of the Regional Health, Inc. Annual Incentive Plan for Selected Executives and Other Employees (Incentive Plan). In accordance with this plan, the parent Board's Executive Committee reviews and approves all incentive compensation performance measures and all awards, if any. The committee ensures that the total compensation, including incentive awards, is reasonable. Patricia M Yanzick Family Member of Director Robert Haivala 17149 Employment Earnings, LPN 0 Form 990, Part V, Line 1a: All 1099's are issued centrally by Rapid City Regional Hospital, Inc., a related organization. Form 990, Part VI, Section A, line 1 The membership of the Executive Committee of the Corporation shall consist of the following: Chair of the Board of Directors, Vice Chair of the Board of Directors, two other Board members appointed by the Chair, and the Corporation's President. The Chair of the Board of Directors shall serve as the Chair of the Executive Committee. Directors on the Executive Committee shall serve during the term of office they hold which places them on the Executive Committee, or, for the two Chair-appointed members, for a term of one (1) year or until their successors are appointed. The Executive Committee, when the Board of Directors is not in session, shall have and may exercise all of the authority of the Board of Directors, except to the extent, if any, that such authority shall be limited by a motion or resolution of the Board of Directors or that is authority reserved to the Member. It is intended that the powers of the Executive Committee to act for the whole Board be confined to such urgent matters as reasonably should not be deferred until the next regularly-scheduled meeting of the full Board. Additionally, the Executive Committee is delegated the Board's final authority to act on individual applications for Medical Staff and Allied Health Professional Staff appointments, reappointments and privileges. Form 990, Part VI, Section A, line 2 Director Pat Walker, Dusty Pinke and Key Employee Mark Schulte serve on the Board of First Interstate Bank in Custer and Sturgis, respectively. Brent Phillips has a business relationship with the following individuals due to being the CEO of the supporting organization that exercises reserve powers over the supported organizations that employ each of these key employees: Paulette Davidson, Maureen Henson, Richard Latuchie, Mary Masten, Kyle Richards, Mark Schmidt, Veronica Schmidt, Mark Schulte, Mark Thompson, Larry Veitz, Laura Wightman and employed Board Members: Lee Bailey MD, and Chris Gasbarre MD. Form 990, Part VI, Section A, line 4 1.Amended the language regarding the composition of each Board of Directors to require "at least one" overlapping board member as between Regional Health Inc (RH) and Rapid City Regional Health (RCRH) and between RH and Regional Health Network (RHN). Previously, two overlapping members were required. (The board membership of RH and Regional Health Physicians, Inc. is identical - 100% overlap.) The overlapping membership is one way we assure that RH, as a Supporting Organization, remains responsive to its Supported Organizations. The reason for the change is that with the implementation of "System Committees" in 2016 (Governance, Clinical Quality, Finance and Investment, and Compliance Audit and Compensation) we are better assuring responsiveness by the supporting organization because the System Committee membership consists of at least one member from each Board (RH, RCRH and RHN). The System Committees, through representation from each corporation, not only assure RH responsiveness; they provide a means of shared decision-making. Also, by using the language "at least one", more than one overlapping member remains permitted. For FY17 two overlapping members remained in place as between RCRH and RH and three overlapping members remained in place as between RHN and RH. 2.Amended the language regarding Board Officers. Each corporation's bylaws provide for four Board officers: Chair, Vice-Chair, Secretary and Treasurer. Previously all four offices were held by Board members elected by their respective boards. The bylaws were amended to designate the person (employee) holding the position of General Counsel as the Secretary and the person holding the position of Chief Financial Officer as Treasurer. The amended bylaw language makes clear the Secretary and Treasurer are not members of the Board; they simply fulfill the duties of the respective offices as described in the bylaws. 3.Amended the composition of the Executive Committees of each Board. Because the Executive Committee membership previously consisted of all four Board Officers, but, per the above amendment, two of the Offices were now filled by non-board member employees, the bylaws were amended to delete the Secretary and Treasurer as members of each Executive Committee. Instead the amended language includes the Board Chair and Vice-Chair and two other Board members appointed by the Board Chair. 4.Amended the language regarding Quorum to clarify that a quorum (majority of members) is required to start a meeting but that the meeting may continue even if a quorum is lost unless a Point of Order is made. 5.Deleted the language included under the System Compliance, Audit and Compensation Committee regarding hire/fire/evaluation of the Compliance Officer. Form 990, Part VI, Section A, line 6 Regional Health, Inc. is the sole member of Regional Health Network, Inc. Form 990, Part VI, Section A, line 7a Regional Health, Inc., being the sole member of Regional Health Network, Inc., has the ability to appoint or remove all members of Regional Health Network, Inc.'s board. Form 990, Part VI, Section A, line 7b Regional Health, Inc. provides compliance, governance, financial, and planning support to its Supported Organizations to best assure the functions and services of the Supported Organizations are coordinated and supported in a manner that furthers the shared charitable mission of the Supported Organizations and RHI, as a whole (the System). Regional Health, Inc. has final authority in significant business decisions affecting the Supported Organizations. Form 990, Part VI, Section B, line 11b The 990 is prepared and reviewed by an independent accounting firm. It is then reviewed internally by finance and legal management. The Form 990 is further reviewed, prior to filing, by the organization's board of directors through a portal to the organization's internal information system, to which each board member has access. Educational sessions have been provided to each board member on how to access the portal. Form 990, Part VI, Section B, line 12c As part of the annual disclosure of potential conflicts process, all board members, officers, and management are required to complete an annual disclosure statement on financial interests and conflicting interests. At Board and Board Committee meetings, the meeting agenda includes an initial item "Conflicts of Interest" where the Chair asks members if they have any conflicting interests or financial interests related to an agenda item. If a conflicting or financial interest is disclosed, it is noted in the minutes and there is discussion or determination of whether the disclosure requires the board or committee member to be excused from discussion or action on that agenda item. Board or committee members whose disclosure is found to be conflicting may be invited to speak on the matter by the Chair, but are not permitted to vote on the matter and may be required to leave the meeting during discussion, after they have made any comments invited by the Chair. Failure to comply with the Conflict of Interest policy constitutes grounds for removal from office or membership on the Board or Board Committee and, in the case of all employees, termination of employment. Form 990, Part VI, Section B, line 15a The Executive Committee of Regional Health Inc. (RHI; parent) engaged an independent third party compensation firm to conduct a review of all executives, Vice President level and above, to determine an appropriate compensation range in which their compensation would be established. The independent compensation consultant provided peer group market comparative data for base salary, total cash compensation, benefits and total compensation for executives. The CEO or his designee determines the actual base salary of the executives within the committee-approved base salary range based on experience and performance, providing the total compensation is within the targeted market percentile, e.g. 50th percentile. In May 2017, the independent consultant met with Committee members and presented 2017 data upon which the Committee determined all elements of compensation for the member's CEO (base salary, total cash compensation, benefits and total compensation) and reaffirmed the organization's executive compensation philosophy, which includes the targeted market percentile for all other executives. Actual compensation is paid by Rapid City Regional Hospital and charged to RHI. Form 990, Part VI, Section C, line 19 The Articles of Incorporation of the organization are filed in the office of the Secretary of State of South Dakota and are available to the public from the Office of the Secretary of State. Other documents (Bylaws, conflict of interest policy and financial statements) are not posted for the public but are available or described in other public documents or sites such as offering statements in bond issues or municipal securities rulemaking board's electronic municipal market access (EMMA) data port. Regional Health Inc 353 Fairmont Blvd Rapid City SD 57701 201487506 Healthcare SD 501(c)(3) Line 12c, III-FI N/A 0 Rapid City Regional Hospital Inc 353 Fairmont Blvd Rapid City SD 57701 460319070 Healthcare SD 501(c)(3) Line 3 Regional Health Inc 0 Regional Health Physicians Inc 353 Fairmont Blvd Rapid City SD 57701 460372454 Healthcare SD 501(c)(3) Line 3 Regional Health Inc 0 Medical & Dental Building 2805 S 5th St Rapid City SD 57701 460339629 Medical Office Bldg SD N/A Black Hills Medical Office BD LLC 353 Fairmont Blvd Rapid City SD 57701 411992146 Medical Office Bldg SD N/A 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0