2018-07-16T17:59:40-05:00 2017-08-31 346565596 Ernst & Young US LLP 1900 Scripps Center 312 Walnut Street Cincinnati OH 45202 990 2016-09-01 610461940 Baptist Health Richmond Inc BAPT 8596253131 PO Box 1600 Richmond KY 404762603 Stephen R Oglesby Treasurer 5028965000 2018-07-16 1 Tricia M Johnson P00627205 5136121400 2016 2022-09-23 18:48:47Z Christopher T Jones PO Box 1600 Richmond KY 40476 95097142 0 X www.baptisthealthrichmond.com X 1892 KY To provide quality health care by a team of highly-skilled physicians & staff through nurturing, personalized services. 9 8 561 38 0 0 294284 36635 82783674 91266225 2108583 868468 1063676 1947367 86250217 94118695 29378 170698 0 0 33109226 35101592 0 0 0 45117048 51553582 78255652 86825872 7994565 7292823 79548559 84786866 39072533 49684917 40476026 35101949 X The mission of Baptist Health Richmond is to exemplify our Christian heritage of providing quality healthcare services by enhancing the health of the people and communities we serve. 0 0 76388003 170698 91266225 See Schedule O. 76388003 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 74 0 1 561 1 0 0 0 0 0 0 0 0 X 9 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 KY X Christopher T Jones 8596233131 801 Eastern Bypass Richmond KY 40475 Earl Baldwin Director & Chairman 2.00 0.00 X X 0 3000 0 Helen Fardo Director 2.00 0.00 X 0 3000 0 Jeffrey Fultz Director 2.00 0.00 X 0 3000 0 Harry Moberly Jr Director 2.00 0.00 X 0 3000 0 Douglas G Owen DMD Director 2.00 0.00 X 0 3000 0 Laura S Steidle Director & Vice Chair 2.00 0.00 X X 0 3000 0 Stephen B Gates Director 2.00 0.00 X 0 3000 0 Kristi Runyon Middleton Director 2.00 0.00 X 0 3000 0 Ashish Patel MD Director 2.00 40.00 X 0 342528 28891 Christopher T Jones President 40.00 0.00 X 0 286367 39271 Carl Herde Treasurer (Through 8/31/16) 1.00 40.00 X 0 687401 46265 Janet Norton Secretary & Interim Co-CEO 1.00 40.00 X 0 806859 48374 Stephen R Oglesby Treasurer & Interim Co-CEO 1.00 40.00 X 0 399453 61365 Linda M Park Assistant Secretary 40.00 0.00 X 50913 0 12836 Stephen C Hanson CEO (Through 3/21/2017) 2.00 40.00 X 0 1080344 269953 Kimberly Richards Pharmacist 40.00 0.00 X 167488 0 11068 Sheila Mullins Pharmacist 40.00 0.00 X 134918 0 23980 Cathy Edwards Pharmacist 40.00 0.00 X 138701 0 24181 Donna Poindexter Pharmacist 40.00 0.00 X 129114 0 15100 Daniel Moses Pharmacist 40.00 0.00 X 135294 0 16114 William Sisson Director (Through 12/31/14) 0.00 0.00 X 0 1325603 53719 756428 4952555 651117 13 1 1 0 Aramark CTS Inc 1101 Market Street Philadelphia PA 19107 Hospital Services 821945 Morrison Healthcare Inc 350 Missouri Avenue Jeffersonville IN 47130 Construction Services 734743 Anesthesia Service PLLC 789 Eastern Bypass Richmond KY 40475 Hospital Services 700717 Dixon Electric Inc 516 West 4th Street Lexington KY 40508 Maintenance Services 301584 ABM Healthcare Support Services Inc 2353 Alexandria Drive Lexington KY 40504 Hospital Services 253808 12 36635 36635 Net Patient Service Re 623990 91266225 91266225 91266225 899905 899905 659939 432944 226995 226995 226995 514066 507136 38367 6930 -38367 -31437 -31437 Pharmacy Revenue 900009 1129531 1129531 Cafeteria Revenue 900009 425918 425918 164923 164923 1720372 94118695 91266225 0 2815835 170698 170698 27391994 24845715 2546279 1961967 1788295 173672 3734565 3503242 231323 2013066 1836922 176144 82441 82441 3662595 3025501 637094 5013 4697 316 13957509 13699172 258337 2200 2200 1363556 1287297 76259 56295 10450 45845 1668 1478 190 921245 921245 6607387 6607387 1322502 4764 1317738 Medical Supplies 15674034 15674034 Purchased Services 4839050 4839050 Pharmacy 1523663 1523663 Provider Tax 1162833 1162833 371591 318410 53181 86825872 76388003 10437869 0 8221647 10223210 8727818 11853296 1907370 2504931 133197 190299 105181295 66645969 40052781 38535326 19618919 21291154 886827 188650 79548559 84786866 653486 4268550 38419047 45416367 39072533 49684917 X 10193273 -8403690 10663834 22214485 19618919 21291154 40476026 35101949 79548559 84786866 X 7292823 266745 -12933645 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 22429731 1949212 275129 24103814 22566130 138730 275129 22429731 23914216 -1072957 275129 22566130 21024428 3164917 275129 23914216 19033081 2266481 275134 21024428 0.18490 0.81510 0.00000 0 0 1191020 1191020 42293330 24764863 17528467 60227769 40861196 19366573 1469176 1019910 449266 38535326 Perpetual Trusts Held By Trustee 21291154 F 21291154 Inter-Company Loans 37976832 Pension Liability 7439535 45416367 Part V, Line 4: Intended Use of Endowment Funds: Assets whose use is limited include assets set aside by the hospital's Board of Directors for long-term uses, over which the Board retains control and may, at its discretion, subsequently use for other purposes. The permanently restricted net assets represent the hospital's beneficial interest in perpetual trusts. 1 1 X 1 X 1 X 1 1 0 1 1 2103115 980703 1122412 0.01290 29324 23008633 24725201 0 0.00000 29324 25111748 25705904 1122412 0.01290 1925 20833 0 20833 0.00020 1872 3524884 2127243 1397641 0.01610 175982 0 175982 0.00200 3797 3721699 2127243 1594456 0.01830 33121 28833447 27833147 2716868 0.03120 0 439772 122334 20342613 23594600 -3251987 X 1 1 1 1 Baptist Health Richmond Inc 801 Eastern Bypass Richmond KY 40475 www.baptisthealthrichmond.com X X Baptist Health Richmond Inc 1 0 0 1 X X X X X X X X X 14 1 0 0 1 X www.baptisthealthrichmond.com X X 1 14 1 www.baptisthealthrichmond.com 0 1 X 200.000000000000 400.000000000000 X X X X X 1 1 X X X X 1 X www.baptisthealthrichmond.com X www.baptisthealthrichmond.com X www.baptisthealthrichmond.com X X X X X X 1 X 0 X X X X X 1 X 0 0 Baptist Health Richmond, Inc. Part V, Section B, Line 5: A community collaborative group including Baptist Health Richmond (BHR) representatives worked to identify Madison County's major health needs. To assess the needs of Madison County, Baptist Health Richmond participated with the Madison County Health Department in the Community Health Needs Assessment facilitated and analyzed by the University of Kentucky College of Public Health and Eastern Kentucky University Department of Health. Representatives of BHR submitted information as well as participated in the community forums to identify and prioritize the needs of the community based on the primary data. This is a community-driven process which engaged the community and is designed to develop partnerships. This committee represented the health department, public and higher education, policy makers from both cities and the county, police and emergency management, the state human rights commission and an area development council, county extension services, business and industry, area and statewide health nonprofits, and hospital management. Committee members studied the primary data gathered from a community wide survey; along with the secondary data, a collection of published statistics; then came together to discuss the issues and set priorities. Baptist Health Richmond, Inc. Part V, Section B, Line 7d: Availability of CHNA Report:Copies of the CHNA were also distributed internally and externally to those who participated in the needs assessment (individuals and organizations). Baptist Health Richmond, Inc. Part V, Section B, Line 11: The need for additional primary care physicians was addressed by Baptist Health Richmond's recruitment of additional primary care physicians to our service area based upon calculations made using published physician needs assessment models. These physicians are instrumental in addressing both of the top priorities identified by this needs assessment: outpatient disease management and preventive health. Through an aggressive community outreach initiative, Baptist Health Richmond has focused on educating the people of Madison County on the importance of preventive health measures and maintaining a relationship with a primary care physician. This approach has combined hospital hosted events, community events, special events and activities designed specifically to increase awareness and understanding of the importance of the annual exams and screenings necessary for a person to take personal responsibility for their health. The outreach focused on preventable disease, disease management and making health decisions a priority. In addition, Baptist Health Richmond has continued to increase preventive health screenings.Baptist Health Richmond also continues to meet the need for the prevention of obesity and the promotion of healthy lifestyle choices through a partnership with the Madison County Health Department Community Health Improvement Plan. Needs Not Addressed:Mental Health Services:Psychiatric care is not central to the hospital's core services. Provision of mental health services would require renovation of the hospital to build and equip an inpatient psychiatric wing and recruitment of psychiatrists, psychologists and/or other mental health professionals. We do not have the resources or capital to pursue mental health services at this time. Baptist Health Richmond, Inc. Part V, Section B, Line 20e: Prior to referring individuals to a collection agency, BHR processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Part I, Line 3c: 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 Kentuckyb. 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. The individual meets the following income and resources criteria: HOUSEHOLD SIZE ANNUAL INCOME LIMIT 1 $12,140.00 2 $16,460.00 3 $20,780.00 4 $25,100.00 5 $29,420.00 For each additional member add $4,320 annually. Part I, Line 7: Baptist Health Richmond, (BHR), utilizes a cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Additionally, BHR uses a cost-to-charge ratio, derived from worksheet 2, of patient care cost-to-charges. Patients are also categorized by:1. Patient type (inpatient and outpatient), 2. Payer plan (42 unique categories of payer plans. Charity, state-sponsored charity and the uninsured are among the uniquely identified payer plans), and3. Clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care under a state-sponsored or BHR sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient. For insured patients who also qualify for partial charity under the BHR sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. The cost of care for uninsured patients who do not qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services. Part II, Community Building Activities: Community building activities:See Form 990, Part III, Line 4a, Program Service Accomplishments. Part III, Line 2: The Cost to Charge ratio is the methodology used in determining bad debt expense at cost. 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:A separate footnote for bad debt expense is not included in the audited financial statements. However, beginning in 2012 Baptist Healthcare System and BHR reported the provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenue. Costing methodology of bad debt is outlined in Schedule H, Part VI, Line 1. The estimated amount of bad debt expense attributable to patients eligible under the organization's FAP was determined using a historical percent to total of net amounts written off as bad debt for those patients with a low propensity to pay or low income to total net amounts written off as bad debt. Part III, Line 8: 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. 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. Part III, Line 9b: COLLECTION PRACTICES:Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account. Guarantors who have an ability to pay for services will be billed based on the following guidelines: - Patients or guarantors may be asked to pay an estimated patient liability at point of service. - BHR facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors. - Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHR Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs. - Patients requesting detailed charge information will be provided with an itemized bill. - BHR Patient Financial Services will provide all patients the same information concerning services and charges. - Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility. Part VI, Line 2: Needs assessment:Baptist Health Richmond, Inc., ("BHR"), assesses the health care needs of our served communities in a variety of ways. One example is community work groups, which meet monthly to discuss various current and emerging community health issues, ultimately determining treatment and education protocols. This group is comprised of hospital clinical professionals, school administrators, local college administrators, emergency preparedness officials and local health department officials, to name a few. Another assessment BHR conducts on a regular basis is the physician needs analysis, to ensure the community has adequate physician coverage in all needed disciplines. Part VI, Line 3: Patient education of eligibility for assistance:The following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - financial counselors advise and/or screen uninsured patients before or during hospital services, - a third party vendor advises and/or screens uninsured patients during hospital services, - financial counselors provide follow-up contact for patients missed during services, - the State-sponsored DSH form is provided to all ER uninsured patients, - telephone calls and in-person visits are handled by staff trained to discuss financial assistance, - information regarding financial assistance is included in patient statements. - The BHR sponsored charity care program policy is posted in key areas of each hospital. - The BHR sponsored charity care program policy is posted on the website of each hospital and the System. Part VI, Line 4: Community information:Baptist Health Richmond is located in the foothills of Appalachia, in central Kentucky in the community of Richmond. Like many other regional facilities throughout the country, BHR provides healthcare services to a number of counties. BHR's immediate service area is Madison, Estill, Garrard, and Jackson counties. In addition, people from over ten surrounding counties come to BHR take advantage of the wide variety of specialty medical services. BHR is located in Madison County. From the 2016 census, there were 89,547 people, 32,409 households, and 36,277 housing units. The racial makeup of the county was 91.8% White, 4.7% Black or African American, 0.3% Native American, 1.2% Asian, and 2.3% were Hispanic or Latino. The median income for a household in the county was $43,707. The per capita income for the county was $22,271. Approximately 21.3% of the population was below the poverty line. Part VI, Line 5: Promotion of community health:The hospital furthers its exempt purpose of promoting the health of the community by having a majority of independent governing body members who all reside in the hospital's primary service area; having an open medical staff; and re-investing any operating surplus to continue providing quality healthcare to all in the hospital's service area. Part VI, Line 6: Affiliated Health Care System:The organization is part of Baptist Healthcare System, Inc. (BHS). Part VI, Line 7, Reports Filed With States KY 1 Baptist Health Foundation Richmond Inc PO Box 1600 Richmond KY 40476 311506378 501(c)(3) 144391 General Support Daniel Ellis Foundation PO Box 1956 Richmond KY 40475 810948181 501(c)(3) 10000 General Support 2 0 Procedures For Monitoring The Use Of Grants: Baptist Health Richmond, Inc. provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed. 0 1 0 0 0 0 0 0 0 Ashish Patel MD Director 0 290772 0 50256 0 1500 0 7950 0 20941 0 371419 0 0 Christopher T Jones President 0 256625 0 18094 0 11648 0 7950 0 31321 0 325638 0 0 Carl Herde Treasurer (Through 8/31/16) 0 629796 0 48792 0 8813 0 7950 0 38315 0 733666 0 0 Janet Norton Secretary & Interim Co-CEO 0 475888 0 38194 0 292777 0 7950 0 40424 0 855233 0 211104 Stephen R Oglesby Treasurer & Interim Co-CEO 0 377505 0 15577 0 6371 0 26991 0 34374 0 460818 0 0 Stephen C Hanson CEO (Through 3/21/2017) 0 1041011 0 0 0 39333 0 211366 0 58587 0 1350297 0 0 Kimberly Richards Pharmacist 165560 0 1901 0 27 0 5020 0 6048 0 178556 0 0 0 Sheila Mullins Pharmacist 134582 0 0 0 336 0 4182 0 19798 0 158898 0 0 0 Cathy Edwards Pharmacist 137558 0 0 0 1143 0 4272 0 19909 0 162882 0 0 0 Daniel Moses Pharmacist 134735 0 0 0 559 0 4099 0 12015 0 151408 0 0 0 William Sisson Director (Through 12/31/14) 0 657397 0 546849 0 121357 0 7950 0 45769 0 1379322 0 0 Part I, Line 3 Baptist Healthcare System, Inc., a related organization of Baptist Health Richmond, 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, Line 4b Two 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 participate in and accrued amounts from the Supplemental Executive Retirement Plan: Stephen Hanson $203,416 Stephen R. Oglesby $19,041 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: William Sisson $102,885 Janet Norton $279,199 Form 990, Part III, Line 4a Program Accomplishments: Baptist Health Richmond, Inc. ("BHR") realizes that not all patients have the financial resources to pay their bill. In light of this, BHR has charity care policies and procedures in place to determine a patient's ability to pay for services. BHR operates an emergency department that is open 24 hours a day, every day. Patients are treated without regard to their payment ability. BHR experienced 31,633 emergency department visits for the twelve months ended August 31, 2017. BHR provided inpatient services to the citizens of Madison and surrounding counties. A total of 2,907 inpatients were admitted during the twelve months ended August 31, 2017 resulting in 11,187 inpatient days. BHR provided obstetric services to the citizens of Madison and surrounding counties. A total of 487 deliveries were performed during twelve months ended August 31, 2017. BHR provided surgical services to 7,327 patients during the twelve months ended August 31, 2017. In addition to the largest program services, BHR also provides or supports the following community programs at free or substantially reduced cost to the community: Annual Paint the Town Pink Campaign: A month long breast cancer awareness campaign that promotes the importance of early detection in preventing cancer. The annual campaign hosts more than four community events, including mammogram and a movie where a physician panel leads a question and answer discussion about breast cancer screening, diagnosis and treatment. (Approximately 2,500 community participants.) Heart Health Education Campaign: A series of educational and outreach events are hosted to educate all demographics on the signs and symptoms of a heart attack and the importance of calling 9-1-1. This includes Save-A-Heart, where heart patients and physicians describe their experience and the benefits of life saving heart care; Cold Heart Truth, a lunch and learn session on a heart healthy diet and the impact that your lifestyle has on your heart health; and community and student educational classes where members of the heart care team visit schools and businesses teaching individuals how to recognize the signs and symptoms of a heart attack. (Approximately 200 community participants.) Community Educational Programs: Childbirth classes, breastfeeding classes, smoking cessation classes, nutritional and diabetes education and stress management classes. Participation in Health Fairs: Provide health education materials, free screening and health risk assessments for various health fairs in the community. (More than 3,500 community members served). Support of Community Projects: Served on a variety of community action committees, participated in economic development discussions and enrolled at least one member of the management team in Leadership Madison County annually. Provide speakers on health careers and tours of the hospital. (Benefits approximately 300 students annually). Leadership Madison County: Provide classes for participants, food, meeting space, etc. (Approximately 25 leaders served). 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: Board of Directors are appointed by resolution of the organization's sole member, Baptist Heatlhcare System, Inc. (BHS). Form 990, Part VI, Section A, line 7b Decisions reserved to members or stockholders: The sole member, BHS, has the following reserved powers, acting through its Board of Directors, that include: 1. Approve the mission, vision, and values of the corporation and amendments there to. 2. Approve amendments to the articles of incorporation and the bylaws. 3. Approve the strategic plan of the corporation. 4. 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. 5. Approve the capital expenditure and operating budgets of the corporation, and any unbudgeted expenditures over $500,000. 6. Selection of the corporation's auditor. 7. 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. 8. 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. 9. 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. 10. 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. 11. 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. 12. 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 provided to each voting member of the Board of Directors prior to filing for their review. Form 990, Part VI, Section B, line 12c Monitoring and Enforcement of Compliance with Conflict of Interest Policy: Annually, the Secretary of Baptist Health System, Inc., (BHS), sends out a conflict of interest questionnaire to each of the directors and officers serving on the Board of Baptist Health Richmond, (BHR). After completion, they are returned to the Secretary and reviewed by the Board or the Governance Effectiveness Committee for any potential conflicts. A conflict of interest is any circumstance, relationship (financial or otherwise), activity or decision (made in the course of governance, management or professional responsibilities or otherwise) that adversely influences or appears to adversely influence the ability of a covered person to: 1) make objective decisions on behalf of BHR and/or 2) act in the best interests of BHR in a manner consistent with the tax-exempt purposes of BHR. The board or committee will determine by a majority vote of disinterested directors whether the disclosed financial or special interest may result in a conflict of interest. Form 990, Part VI, Section B, line 15 Process For Determining Compensation: The President of Baptist Health Richmond, Inc. is not an employee of Baptist Health Richmond, 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 Richmond, 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. Officers of Baptist Health Richmond, Inc. are not employees of Baptist Health Richmond, Inc. nor are they compensated by Baptist Health Richmond, Inc. The Baptist Health Richmond, Inc. officers are employees of Baptist Healthcare System, Inc. and are compensated by Baptist Healthcare System, Inc. The compensation of these officers is either reviewed and approved by the Compensation Committee of the Baptist Healthcare System, Inc. Board or are reviewed and approved by the Baptist Healthcare System, Inc. and/or the Baptist Health Richmond, Inc. President and/or 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 makes its governing documents, conflict of interest policy and financial statements available to the public upon request. Form 990, Part XI, line 9: Physician Entity Funding -15,613,622. IS Depreciation 2,196,748. Intercompany Transfers 1,672,235. Other Adjustments -1,189,006. Baptist Community Health Services Inc 2701 Eastpoint Parkway Louisville KY 40223 611141242 Medical services KY 501(c)(3) Scehdule 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) Scehdule 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) Scehdule 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) Scehdule 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) Scehdule 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) Scehdule 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) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist Health Madisonville Inc 900 Hospital Dr Madisonville KY 42431 610654587 Hospital KY 501(c)(3) Schedule A, Line 3 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 Healthcare Foundation Inc 2701 Eastpoint Parkway Louisville KY 40223 311122867 Fundraising KY 501(c)(3) Scehdule 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) Scehdule 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 Baptist Healthcare System Inc 1 Mercy Regional Emergency Medical System LLC 126 Lone Oak Rd Paducah KY 42001 611310466 Ambulance Services KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Pattie A Clay Hospital Auxiliary PO Box 1600 Richmond KY 40476 510172717 Support KY 501(c)(3) Scehdule A, Line 12a Baptist Healthcare System Inc 1 Baptist EastMilestone LLC 750 Cypress Station Dr Louisville KY 40207 611355065 Fitness center KY N/A Baptist Eastpoint Surgery Center LLC 2400 Eastpoint Parkway Louisville KY 40223 260834852 Ambulatory surgery center KY N/A Baptist Physicians' Surgery Center LLC 1720 Nicholasville Rd 101 Lexington KY 405031490 043665929 Ambulatory surgery center KY N/A Baptist Health Performance Training LLC 2701 Eastpoint Parkway Louisville KY 40223 473567887 Sports training KY N/A Medical Associates of Middletown LLC 4000 Kresge Way Louisville KY 40207 200399400 Medical office building KY N/A Baptist Health Employer Solutions Inc 2701 Eastpoint Parkway Louisville KY 40223 272939694 Accountable care organization KY N/A C 0 Baptist Health Plan Inc 651 Perimeter Park Ste 300 Lexington KY 40517 611241101 Insurance KY N/A C 0 Baptist Medical Management Services Inc 900 Hospital Drive Madisonville KY 42431 371519513 HC MSO KY N/A C 0 Baptist Ventures Inc 2701 Eastpoint Parkway Louisville KY 40223 611217018 Management KY N/A C 0 MS Community Health LLC 2701 Eastpoint Parkway Louisville KY 40223 611303514 Health Clinic KY N/A C 0 Hopkins County Credit Services Inc 2701 Eastpoint Parkway Louisville KY 40223 610660705 Collections KY N/A C 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 1 Baptist Health Foundation Richmond Inc S 145686 Cost Baptist Health Medical Group Inc J 405964 Cost Baptist Healthcare System Inc P 10712712 Cost Baptist Healthcare System Inc R 918073 Cost Baptist Healthcare System Inc S 8610599 Cost Baptist Health Medical Group Inc P 488690 Cost Baptist Health Medical Group Inc R 141402