2018-11-09T15:50:51-06:00 2017-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE20 FLOOR CHICAGO IL 60606 990 2017-01-01 350877574 Elkhart General Hospital Inc % JEFFREY COSTELLO ELKH 5745233208 600 EAST BLVD ELKHART IN 46514 JEFFREY COSTELLO CFO 5746473549 2018-11-09 true JACOB J ZEHNDER P01564049 3128792702 164.57.159.254 36964520183135000006 2018-11-09 P B9D8C5BF7BCF14EB945B1CDCFB1C91A89991B4A8 277A2553AC5F9787DA5E6FE751E73415AFB5A6AE 2017 2019-02-21 02:37:17Z CARL RISK 600 EAST BLVD ELKHART IN 46514 300026687 false X www.beaconhealthsystem.org X 1909 IN SEE SCHEDULE O 10 10 2108 190 361619 -19273 288036 249150 296397005 295366729 -419879 213027 7010038 3645762 303275200 299474668 399290 215853 0 0 103739220 102612211 0 0 0 171371793 177760242 275510303 280588306 27764897 18886362 290050693 274650255 142289743 109080292 147760950 165569963 X TO CREATE A HEALTHIER COMMUNITY BY BEING A PREMIER PROVIDER OF HEALTHCARE; PROMOTING THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES BY PROVIDING EDUCATION THAT MAY AID IN DETECTION AND PREVENTION OF DISEASE; CONDUCTING OUR ACTIVITIES WITH COMPASSION AND RESPECT; ACTING WITH RECOGNITION THAT HEALTH IS HOLISTIC AND EMBRACES THE BODY, MIND, AND SPIRIT; SEEKING AND PARTNERING WITH THOSE WHO SHARE OUR MISSION; CONTINUOUSLY IMPROVING THE QUALITY AND COST-EFFECTIVENESS OF OUR SERVICES; MAINTAINING THE FINANCIAL VIABILITY OF THE HOSPITAL WHILE CONTINUING OUR CHARITABLE ROLE IN THE COMMUNITY. false true 243706012 215853 296524390 Elkhart General Hospital, Inc. has been providing comprehensive, advanced medical care primarily to Elkhart County and other contiguous counties in north central Indiana and south central Michigan for over 100 years. Elkhart General Hospital, Inc. consists of a 365-bed licensed hospital that provides services without regard to patient race, religion, national origin, economic status, or ability to pay. During 2017, the Hospital admitted 10,340 patients for a total of 41,109 inpatient days. Inpatient units consisted of medical, post-surgical, oncology, pediatric, critical care, cardiac care, behavioral health, rehabilitation, obstetric, and nursery intensive care. The Hospital also provided services for 193,524 of outpatient visits including 3,728 outpatient surgeries, 60,249 emergency room visits, and 129,547 visits for diagnostic services. During 2017, the unreimbursed cost of free or discounted medical care provided to patients that were deemed indigent under state, county, or internal guidelines was $4,060,747. Elkhart General Hospital also provided $36,319,451 in unreimbursed care to the elderly covered by Medicare, and $1,218,336 in Charity Care. Part of the mission of Elkhart General Hospital is to provide for a healthier community through medication assistance programs and community health education, the hospital incurred $815,000 in unbilled services to the poor and broader community. 243706012 true true false true false false false false false true true false false false true true false true false false true false false false false false true true true true true true false false false false false false false false false false false false false false false true true true false false true 171 0 true 2108 true true true false false false false false false false false false X 10 10 false false false false true true true true true false false true true true true true true false false true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 X Wilbur Bontrager Chair 2.0 0.0 X X 0 0 0 Bruce Newswanger DO Director 2.0 0.0 X 1792 0 0 Matthew Pletcher Director 2.0 0.0 X 0 0 0 Leonard Kibiloski MD DIRECTOR 2.0 0.0 X 1792 0 0 Kelly Puster MD DIRECTOR 2.0 0.0 X 0 0 0 Alex Strati Jr Vice Chair 2.0 0.0 X X 3439 0 0 Tim Shelly Sec./Treasurer 2.0 0.0 X X 1792 0 0 JOHN DEPUTY DIRECTOR 2.0 0.0 X 1792 0 0 SAMIR PATEL MD DIRECTOR 2.0 0.0 X 0 0 0 AMISH SHAH DIRECTOR 2.0 0.0 X 1643 0 0 Jeffrey P Costello CFO/Asst. Treasurer 2.0 46.0 X 0 597602 178765 Phillip A Newbold CEO THRU 10/2017 2.0 46.0 X 0 1710952 233242 KREG R GRUBER CEO 2.0 46.0 X 0 640757 180512 Carl W Risk II President 40.0 0.0 X 329042 0 69983 KARRA L HEGGEN VP OF NURSING 40.0 0.0 X 290745 0 137586 CINDIE L MCPHIE VP OF OPERATIONS 40.0 0.0 X 204372 0 18527 LIANG Q WANG SENIOR PHYSICIST 40.0 0.0 X 229748 0 29050 Maria A Behr Director of Pharmacy 40.0 0.0 X 174742 0 15694 JAMES E CANTRELL PERFUSIONIST 40.0 0.0 X 164374 0 19556 Gregory Losasso Former President 0.0 0.0 X 225968 0 3413 1631241 2949311 886328 62 true true false South Bend Medical Foundation 530 North Lafayette Blvd SOUTH BEND IN 46601 Lab Services 10904950 Northern Indiana Anesthesia Service 600 East Bvld ELKHART IN 46514 Anesthesia Services 4758701 APOGEE PHYSICIANS 2525 E CAMELBACK RD PHOENIX AZ 85016 PHYSICIAN SERVICES 2566136 SODEXO OPERATIONS 9801 WASHINGTON BLVD GAITHERSBURG MD 20878 NUTRITION MANAGEMENT 1516683 RESTORIX HEALTH 155 WHITE PLAIN STE222 TARRYTOWN NY 10591 MEDICAL SERVICES 908407 55 214377 26738 8035 8000 249150 PATIENT SERVICE REVENUE 622110 289207266 289207266 OUTPATIENT PHARMACY 446110 5132077 227738 4904339 RENT FROM RELATED PARTIES 622110 988493 988493 MEDICAL EDUCATION 611710 38893 38893 295366729 11355 11355 0 0 1588610 422191 1166419 0 1166419 1166419 331500 129828 201672 201672 201672 0 0 0 0 0 0 0 0 0 REBATES AND DISCOUNTS 622110 769034 769034 CAFETERIA 722514 418767 418767 INTERCOMPANY CHARGEBACKS-MICHIANA LINEN 812331 151637 126149 25488 1139905 1031512 108393 2479343 299474668 291392313 361619 7471586 X 163957 163957 51896 51896 0 0 411275 411275 229381 229381 78056540 64530352 13526188 5585430 4624816 960614 12864830 10576906 2287924 5464755 4486564 978191 7634984 6268322 1366662 131164 131164 127476 127476 10631 10631 0 412807 412807 28098508 23062515 5035993 39592 32505 7087 2626984 2156356 470628 5899 4843 1056 0 3203497 2594912 608585 257815 211666 46149 0 265920 218320 47600 1526642 1253373 273269 0 17836394 14636011 3200383 1656038 1359607 296431 PATIENT SUPPLIES, DRUGS 52772554 52772554 0 0 BAD DEBT EXPENSE 25104176 25104176 0 0 HOSPITAL ASSESSMENT FEE 12360748 10148174 2212574 0 CORPORATE ALLOCATION FEES 22518614 18487782 4030832 0 1169799 960405 209394 280588306 243706012 36882294 0 9585 9585 11447989 14505066 0 0 58737753 47390928 0 0 0 0 81156 92792 7966066 7075885 1528330 968412 371084234 177550174 198758305 193534060 6099617 6722517 414286 445366 488734 26357 2536226 2536226 1982646 1343061 290050693 274650255 21244549 21956186 0 0 0 0 76837940 74089968 0 0 0 0 0 0 0 0 44207254 13034138 142289743 109080292 X 141247047 158402080 6113903 6767883 400000 400000 147760950 165569963 290050693 274650255 X 18886362 653980 -1731329 X false true X true false X false false false false false false false false true 10631 10631 false Part II-B, Line 1i Elkhart General Hospital pays the dues TO THE FOLLOWING ORGANIZATION FOR WHICH THE PERCENTAGE LISTED WAS ATTRIBUTED TO LOBBYING: INDIANA HOSPITAL ASSOCIATION - 22.98% GREATER ELKHART CHAMBER OF COMMERCE - 2.5% WHEN UNABLE TO ASCERTAIN ALLOCATION OF DUES ATTRIBUTED TO LOBBYING A CONSERVATIVE ESTIMATE OF 23% IS APPLIED BASED ON THE INDIANA HOSPITAL ASSOCIATION PERCENTAGE. 40368863 2155261 3423343 4284345 249461 40639 41373022 32772897 9605449 850963 2645907 178250 36289 40368863 36228784 4093832 -1549515 5789367 174135 36702 32772897 33921099 2833644 330764 714487 125000 17236 36228784 29895939 2180336 2985268 984717 125000 30727 33921099 0.66020 0.01150 0.32830 false true true 4146907 4146907 250819014 106918789 143900225 113851273 70631385 43219888 2267040 2267040 193534060 0 ACCRUED PENSION LIABILITY 12882740 CAPITAL LEASES 151398 13034138 X SCHEDULE D, PART V, LINE 4 Permanently restricted net assets have been restricted by donors to be maintained by the Hospital and/or it's related entities, in perpetuity. In accordance with the restrictions, a majority of the investment income and investment gains or losses from permanently restricted net assets are to be reinvested with the principal and are therefore temporarily restricted. A specified portion of income earned by the temporarily restricted net assests is released from restriction and used for operations each year. The Hospital has one endowment fund established for patient care purposes with a value of $7,167,883. The Hospital has established investment and spending policies related to the appreciation of this endowment. Should the underlying assets fall below this targeted amount the Hospital pursues action consistent with established policies to return the endowment to the targeted amount. Based on these policies, endowment amounts are temporarily restricted until Board authorized release of funds for patient care purposes are approved. As a member organization of Beacon Health System, the Hospital also can benefit from endowment funds held by related entities, the value of which was $34,205,140 at 12/31/2017. In 2017, the Hospital received $0 from the related party endowment funds. FIN 48 DISCLOSURE PART X, LINE 2 ASC 740, Income Taxes, requires that realization of an uncertain income tax position is more likely than not (i.e., greater than 50% likelihood of receiving a benefit) before it is recognized in the financial statements as the amount most likely to be realized assuming a review by tax authorities having all relevant information and applying current conventions. This interpretation also clarifies the financial statement classification of tax-related penalties and interest and sets forth new disclosures regarding unrecognized tax benefits. No amount was recorded for the years ended December 31, 2017 or 2016. Central America and the Caribbean Investments 445366 445366 445366 false false true false false false true true X true X true X true true true false true true 1313879 1313879 0.00510 46847674 32884027 13963647 0.05470 48161553 32884027 15277526 0.05980 1204800 72311 1132489 0.00440 938132 38893 899239 0.00350 2142932 111204 2031728 0.00790 50304485 32995231 17309254 0.06770 38717 38717 0.00020 62615 62615 0.00250 101332 101332 0.00270 true 7006576 3503288 57633759 85633233 -27999474 X true true WAKARUSA MED CLINIC MEDICAL BUILDING-FINAL 2017 0.42 0.58 1 1 Elkhart General Hospital Inc 600 East Blvd Elkhart IN 46514 www.beaconhealthsystem.org 16-005017-1 X X X Elkhart General Hospital Inc 1 false false true X X X X X X X X X 15 true true false true X SEE SECTION C FOR FULL URL X X true 15 true beaconhealthsystem.org/about-us/publications false true X 200. 350. X X X true true X X X true X See Section C for full URL X See Section C for full URL X See Section C for full URL X X X X X X true X false X X X X true X false false PART V, SECTION B, LINE 5 During 2015, Beacon Health System conducted a joint Community Health Needs Assessment (CHNA) for the approximate 200,000 residents of Elkhart County and the approximate 267,000 residents of St. Joseph County, which reflect the primary market service areas for Elkhart General Hospital (EGH), and Memorial Hospital of South Bend, respectively. In late 2014 through February 2015, dialogue on the CHNA planning and coordination occurred among Beacon Health System executives and the Community Benefit staff from both Elkhart General Hospital and Memorial Hospital of South Bend. It was agreed that a third party consultant - Holleran Consulting from Lancaster, Pennsylvania - would serve as data gathering entity for both hospitals. The CHNA process included a compilation and review of secondary data; a key informant online survey on input of community health priorities and barriers to health; a community-based online survey from community members at large regarding perceptions of health priorities in Elkhart County; and community leader dialogue on prioritizing identified health needs. Community engagement and feedback were integral to the integrity and validity of the Elkhart County CHNA process. Throughout the process, input was actively solicited and secured from persons who hold a broad knowledge of and represent the broad interests of Elkhart County, including public health; minority, cultural, and underserved populations; from the community members at large; and from the medical and health services fields. Dialogue with key community health stakeholders, philanthropic funders, and members of the healthcare field helped identify health priorities, current dedicated resources for community health needs, and resource constraints. Through March 2015, the first stage of assessment was engaged, and sought to gather input from key informants who hold a broad knowledge of, and represent the broad interests of, Elkhart County. The key informants were solicited from multiple sectors of Elkhart County, including the public health, education, minority, faith, cultural, economic development, non-profit, child and youth, health care, public health, medical care, emergency and relief services, and private sectors. Organizations invited to provide input included the following: Elkhart General Hospital, Child Abuse Prevention Services, Center for Healing and Hope, Elkhart County Council on Aging, Elkhart County Health Department, SPA Ministries, Beacon Medical Group, Elkhart County United Way, Emergency Physicians Inc., Elkhart County Minority Health Coalition, Association for the Disabled of Elkhart County, Elkhart Community Schools, Goshen Community Schools, Northern Indiana Hispanic Health Coalition, St. Vincent de Paul Catholic Church, Middlebury Community Schools, Baugo Community Schools, WaNee Community Schools, La Casa, Inc., Greater Elkhart Chamber of Commerce, Belmont Mennonite Church, Ribbon of Hope Ecumenical Cancer Ministry, Guidance Ministries, Heart City Health Center, YWCA of North Central Indiana, City of Goshen Planning Department, River Oaks Community Church, Fairfield Community Schools, Golden Living Center, Church Community Services, Golden Living Center, and selected health leaders representing the Amish community of Elkhart County. A full listing of specific key informants and their affiliated organizations can be found in Appendix B of the 2015 Holleran Final Summary Report for Beacon Health System. Through an online CHNA survey conducted through March 2015, key informants provided input on community health priorities, barriers to accessing care, the impact of social determinants of health, how to best address wellness in the community, resources and wellness programs in the community, and underserved populations. Additional input on perceived health priorities and barriers to accessing health care was solicited from the community at large through an online survey conducted in the spring through early summer of 2015. Consideration was given to ensuring the ease of access to the survey completion for hard to reach populations, including Amish, Hispanic Latino, African American, and low-income populations. As such, the online survey could be accessed directly from home or work via the internet or through the free, community service computers located at all seven Elkhart County Public Libraries sites. The availability of the online community member survey was heavily promoted through libraries, fliers, Public Service Announcements (PSA's), billboards, community presentations, and other promotional means. The survey, consisting of 50 questions, asked community members AT LARGE to provide input on access to health care, health status and behaviors, social constraints, and health-related community strengths and opportunities. A total of 510 persons identifying as residing or working in Elkhart County responded to the survey. A copy of the survey tool can be found in Appendix C of the 2015 Beacon Health System CHNA Final Summary Report. August and September 2015, several community health stakeholder meetings were held to review the results of 2015 Elkhart County CHNA secondary data report, the Key Informant Survey summary, and the community member survey. The purpose of these meetings was to review results and solicit input on Elkhart County community health priorities. These community health stakeholders include members of the Elkhart General Hospital Board of Directors, Beacon Health System leaders, key Elkhart County medical providers, Elkhart County community funders, and Elkhart County schools personnel. Discussion was focused on the priority needs, current dedicated resources for community health needs, resource constraints, and the viability of identifying a singular community health need for which all funders could collectively support. September and October 2015, EGH gathered input from community stakeholders to establish a list of the recommended health priorities as identified from stakeholder discussion, compiled an Implementation Strategy to address the selected priority needs, and presented to EGH Board of Directors in November 2015. The EGH Board of Directors approved the 2015 Elkhart County CHNA Implementation Strategy as presented. PART V, SECTION B, LINE 6A ELKHART GENERAL HOSPITAL CONDUCTED THE 2015 ELKHART COUNTY CHNA WITH MEMORIAL HOSPITAL OF SOUTH BEND, A BEACON HEALTH SYSTEM PARTNER. PART V, SECTION B, LINE 7A, 7D The 2015 Elkhart County Community Health Needs Assessment (CHNA) and Implementation Strategies Report were submitted to the Elkhart General Hospital Board of Directors for review and were approved in November 2015. These documents were subsequently made widely available to the community through posting on the Elkhart General Hospital website at BEACONHEALTHSYSTEM.ORG/CHNA; through hard copies made available by request; through paper copy made available at EGH Administration; and through email transmission upon request. Elkhart General Hospital staff were also available to discuss the results of the CHNA and the 2015 implementation strategies in requested community forums. PART V, SECTION B, LINE 11 EGH remained committed to improving the community health status of Elkhart County as an organizational priority through its mission and through community identification. As a non-profit, charitable organization, we continue to expand our ambulatory health capabilities in the region. The Beacon Health System strategic plan calls for greater focus on health and wellness, and as a Beacon Health System partner, Elkhart General Hospital is implementing population-based health strategies with enhanced focus on community health and wellness. Ongoing support and enhanced focus on community health initiatives will occur through continued Community Benefit activities, including specific alignment with goals and objectives to achieve enhanced prevention and detection of disease at the earliest onset to avoid adverse health outcomes and maximize quality of life for all residents of Elkhart County. OBESITY Currently EGH engages in multiple efforts aimed at addressing obesity. In March 2015, Elkhart's Youth and Community Center, formerly known as the Elkhart YMCA, a magnet health and fitness facility with which EGH has historically partnered with in obesity prevention and reduction initiatives, abruptly announced its imminent closing due to lack of funding for critical infrastructure needs, and other concerns. A regional redevelopment plan unveiled in September 2015 proposed massive changes to the downtown area of Elkhart known as the Market District. The anticipated impact of the redevelopment of the Elkhart Youth and Community Center is the resurgence in community-based fitness opportunities for Elkhart residents, including seniors, school-age, disabled, and low-income and minority populations, which is expected to ultimately manifest as reductions in obesity and overweight rates in Elkhart residents. At present, the CH Part I, Line 3c Factors to be considered for Financial Assistance Household Size and Income The following factors may be considered in determining the eligibility of the patient for assistance and must be provided by all income earning residents in the countable household unit unless they are not dependents based on IRS guidelines for determining whether a household member can be considered a dependent. 1. Indiana workforce wage report for last 2 quarters (unemployment income) 2. Last 3 pay stubs or a letter or printout from employer(s) providing verification of gross income if currently employed. This documentation should not be more than 30 days old from date of issue and include year-to-date information. 3. Last 3 bank statements (including explanations of regular deposits not explained by pay stubs) 4. Social Security award or entitlement letter or other proof of gross monthly award. 5. Retirement income. 6. Investment income. 7. Statement from person(s) that are providing direct support. 8. Number of dependents. 9. Most recent tax return (including W2 and all supporting schedules) 1 10. Other financial obligations. 11. The amount and frequency of hospital/medical bills. 12. Other financial resources that produce income. 13. If Self-Employed, Gross Income less Cost of Goods sold and employee salaries. Financial Capacity 1. Individuals with the financial capacity to purchase health insurance coverage through the Health Insurance Marketplace may be required to purchase and will be provided access to meet with an Indiana Certified Navigator as a means of assuring access to healthcare services, for their overall personal health, and for the protection of their individual assets. 2. Individuals found to be ineligible for Medicaid or other affordable health care coverage must provide proof of denial. 3. Food Stamps or Supplemental Nutrition Assistance Program (SNAP) will not be counted as income. 4. Cosmetic Services are not eligible for any type of assistance and cannot be included in the amount of hospital/medical bills owed. Part I, Line 6a CREATING COMMUNITY HEALTH IS AT THE CORE OF ELKHART GENERAL HOSPITAL'S MISSION. PROMOTION OF COMMUNITY HEALTH IS OUR SOCIAL RESPONSIBILITY AND A KEY TO LONG-TERM COST EFFECTIVENESS. IN ADDITION, IMPROVING THE HEALTH STATUS OF A COMMUNITY IS AS MUCH A SOCIAL, ECONOMIC, AND ENVIRONMENTAL ISSUE, AS IT IS A MEDICAL ONE. CONSEQUENTLY, THE ORGANIZATION TAKES A BROAD APPROACH TO CREATING COMMUNITY HEALTH. THIS APPROACH HAS INCLUDED: ONGOING EDUCATION OF BOARD MEMBERS, STAFF AND LOCAL LEADERS THROUGH COMMUNITY PLUNGES (EXPERIENTIAL ACTIVITIES TO INVOLVE THE COMMUNITY RESIDENTS WITH A NEIGHBORHOOD-BASED AGENCY), COMMUNITY FOUNDATION SUPPORT, STRATEGIC ALLOCATION OF TITHING RESOURCES, A CLEAR STATEMENT OF VISION AND GOALS, A COMMITMENT TO CONTINUOUS QUALITY IMPROVEMENT AND PROMOTION OF VOLUNTEER INVOLVEMENT AND COMMUNITY PARTNERSHIPS. ELKHART GENERAL HOSPITAL TITHES 10% OF THE PREVIOUS YEAR'S INCOME FROM OPERATIONS AND TRANSFERS IT TO THE COMMUNITY BENEFIT FUND FOR INVESTMENT IN THE COMMUNITY. THIS INVESTMENT IS IN ADDITION TO THE HOSPITAL'S FINANCIAL ASSISTANCE AND PREVENTION, AND EDUCATION ACTIVITIES SUPPORTED THROUGH ITS OPERATING BUDGET. THE COMMUNITY HEALTH ENHANCEMENT COMMITTEE OF THE BOARD MAKES ONGOING POLICY AND OVERSEES THE ADMINISTRATION OF THE FUND AND DETERMINES SPECIFIC INVESTMENT ALLOCATIONS BASED UPON THE ASSETS AND NEEDS OF THE COMMUNITY. VOLUNTEERS AND STAFF ARE COMMITTED TO PRUDENTLY INVESTING THESE RESOURCES IN AN ACCOUNTABLE MANNER. AS A COMMUNITY NOT-FOR-PROFIT ORGANIZATION, WE TAKE SERIOUSLY OUR RESPONSIBILITY TO INVEST OUR RESOURCES AND ENERGIES INTO UNDERSTANDING AND MEETING THE DIVERGENT HEALTH CARE NEEDS OF ALL, AND ENSURE THAT EVERYONE, REGARDLESS OF THEIR ABILITY TO PAY, RECEIVES THE CARE THEY NEED. ELKHART GENERAL HOSPITAL HAS LONG BEEN RECOGNIZED FOR THE COLLABORATION EFFORTS WHICH ENGAGE INDIVIDUALS AND ORGANIZATIONS WITH DIVERSE SOCIO-ECONOMIC RELIGIOUS, ETHNIC, RACE, AGE, AND GENDER IDENTITY CHARACTERISTICS. OUR TEAM OF PASSIONATE AND DEDICATED HEALTH CARE PROFESSIONALS, ALONG WITH MANY PARTNERS THROUGHOUT THE NORTHERN INDIANA AND SOUTHERN MICHIGAN (MICHIANA) REGION, HELPED US CONTRIBUTE SIGNIFICANTLY TO THE HEALTH AND WELL-BEING OF OUR COMMUNITY. FURTHER, ELKHART GENERAL HOSPITAL PLAYS A KEY ROLE IN SERVING THE COMMUNITY AS A WHOLE. ELKHART GENERAL HOSPITAL'S COMMUNITY BENEFIT REPORT IS CONTAINED IN A REPORT PREPARED BY MEMORIAL HOSPITAL, EIN #35-0868132. Part I, Line 7 The costing method used to calculate Financial Assistance reported on lines 7 a through d was the cost-to-charge ratio. All other community benefits were calculated using direct costs. Part I, Line 7 Column (f) Bad debt expense of $25,104,176 was removed from total expenses. Part II COMMUNITY BUILDING ACTIVITIES 3. Community Support - mentoring and support groups In 2017 Elkhart General Hospital (EGH) provided community building activities that focused largely on mentoring opportunities to young teens and at-risk youth. The PEERS Project in Elkhart County is a middle school risk avoidance curriculum that emphasizes nurturing and maintaining the emotional health of youth. This peer-led program focuses on abstinence from sexual involvement, alcohol, drugs, and smoking. It empowers youth with assertive life skills, and helps them learn to regulate their emotional health to make positive life decisions. PEERS project provided a five-session, abstinence and risk avoidance curriculum to 1,100 Elkhart County middle school children in two school systems. Additionally, 175 high school youth were trained to facilitate the five-session series in the middle schools. Line 7. Community Health Improvement/Advocacy - improve public health, access to health care services In 2017, EGH continued to participate in a public health-based coalition to identify trends in perinatal outcomes to ultimately reduce perinatal race disparity in the region. The partners in this effort included Beacon Health System partner Memorial Hospital of South Bend, Indiana University Health Goshen Hospital, the health departments of Elkhart and St. Joseph Counties, minority health partners, and the Michiana Health Information Network. Perinatal outcomes are critical indicators of community health status, and this forum identifies opportunities to produce consistent perinatal risk reporting from the hospitals and the health information exchange. Access to health care/access to health coverage has been identified as a priority health need for Elkhart County through the 2015 Elkhart County community health needs assessment. Improving access to health care/health coverage continues to be a priority for EGH, and one that will ultimately improve the health of and quality of life for Elkhart County residents. Beacon Health System Navigators Beacon Health System Navigators provides outreach-based, free enrollment and advocacy services for low-income and/or eligible residents through health coverage enrollment efforts. Elkhart General Hospital also funds a contracted Indiana Navigator enrollment position through a collaboration with covering kids & families, an entity of United Health Services. In 2017, insurance enrollment providers were able to serve 1,677 people across the region, with 86% getting health insurance. A six-month follow-up process was piloted to discover and record how effective initial efforts were. Phone calls went out to 87 participants who were successfully enrolled, and 59% said they now had a Primary Care Physician. Throughout 2017, EGH continued to provide health coverage enrollment assistance and program navigation through Beacon Health System health coverage enrollment effort for the Affordable Care Act (ACA) Marketplace, as well as the emergence of Healthy Indiana Plan 2.0, which was Indiana's response to Medicaid expansion under the ACA. In alignment with the ACA, EGH provided full-service assistance for enrolling uninsured persons into health coverage programs through its Community Based Enrollment and Advocacy Center (CBEAC). The CBEAC services provide advocacy, education, linguistic, and application assistance for the purpose of assisting eligible low-income Elkhart County residents in enrolling and maintaining viable coverage in the health coverage programs for Indiana residents, including not only ACA Marketplace, but also Medicaid, Hoosier Healthwise (Medicaid for children), and Healthy Indiana Plan 2.0 programs. Elkhart General Hospital remains committed to enrolling uninsured, low-income persons into existing programs for which they are currently eligible but unenrolled as a practical first step in addressing access to health care for the community. Eligibility criteria, while similar between the programs, vary with respect to household income level and its documentation, residency verification, and various other factors. The complexity of eligibility criteria and successful navigation through the application process can be formidab Part III, Line 2 THE CORPORATION EVALUATES THE COLLECTABILITY OF ITS ACCOUNTS RECEIVABLE BASED ON THE LENGTH OF TIME THE RECEIVABLE IS OUTSTANDING, PAYOR CLASS, AND THE ANTICIPATED FUTURE UNCOLLECTIBLE AMOUNTS BASED ON HISTORICAL EXPERIENCE. ACCOUNTS RECEIVABLE ARE CHARGED TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WHEN THEY ARE DEEMED UNCOLLECTIBLE. COSTING METHODOLOGY IS THE SAME AS TAX FORM 990, SCHEDULE H, WORKSHEET 2 METHODOLOGY. PATIENT CARE IS COST ADJUSTED BY NON-PATIENT ACTIVITY, EXPENSES, AND PATIENT CARE CHARGES. THE AMOUNT OF BAD DEBT REPORTED ON PART III, LINE 2 IS CALCULATED BY APPLYING THE COST-TO-CHARGE RATIO, AS DETERMINED BY WORKSHEET 2, TO TOTAL BAD DEBT EXPENSE PER THE AUDITED FINANCIAL STATEMENTS. BAD DEBT EXPENSE WHICH IS ATTRIBUTABLE TO ELIGIBLE PATIENTS is CONSIDERED PART OF ELKHART GENERAL HOSPITAL'S COMMUNITY BENEFIT BECAUSE OF OUR MISSION TO CREATE A HEALTHIER COMMUNITY WHILE CONTINUING OUR CHARITABLE ROLE IN THE COMMUNITY. PART III, LINE 3 BAD DEBT ATTRIBUTABLE TO THE FAP IS ESTIMATED BASED ON THE HISTORICAL TREND OF THE SOURCES OF THE BAD DEBT. THE MAJORITY OF BAD DEBT IS ATTRIBUTABLE TO UNINSURED PATIENTS WHICH REPRESENT THE MAJORITY OF THE POPULATION THAT WOULD FALL UNDER THE FAP. WE HAVE APPLIED THE HISTORICAL ESTIMATE (50%) TO THE TOTAL BAD DEBT EXPENSE TO DETERMINE THE AMOUNT ATTRIBUTABLE TO THE FAP. PART III, LINE 4 THE PROVISION FOR BAD DEBTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, TAKING INTO CONSIDERATION THE TRENDS IN HEALTH CARE COVERAGE, HISTORICAL ECONOMIC TRENDS, AND OTHER COLLECTION INDICATORS. MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCES PERIODICALLY THROUGHOUT THE YEAR BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY MAJOR PAYOR CATEGORY. THE RESULTS OF THE REVIEW ARE THEN UTILIZED TO MAKE MODIFICATIONS, AS NECESSARY, TO THE PROVISION FOR BAD DEBTS TO PROVIDE FOR AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. A SIGNIFICANT PORTION OF THE CORPORATION'S UNINSURED PATIENTS WILL BE UNWILLING TO PAY FOR THE SERVICES PROVIDED. THUS, THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS RELATED TO UNINSURED PATIENTS IN THE PERIOD THE SERVICES ARE PROVIDED. PART III, LINE 8 RATIONALE FOR INCLUSION OF THE MEDICARE SHORTFALL AS A COMMUNITY BENEFIT. PARTICIPATION IN THE GOVERNMENTAL MEDICARE PROGRAM DOES NOT PROVIDE THE OPPORTUNITY FOR A HOSPITAL TO NEGOTIATE A REIMBURSEMENT RATE OR STRUCTURE THAT WOULD ALLOW THE HOSPITAL TO COVER THE COST OF THE MEDICAL SERVICE RENDERED TO THE PROGRAM PARTICIPANT, AS WOULD BE THE CASE IN CONTRACTUAL NEGOTIATIONS WITH COMMERCIAL INSURANCE COMPANIES. NOR IS THE HOSPITAL ALLOWED TO PROVIDE ONLY THE SERVICES FOR WHICH REIMBURSEMENT COVERS THE DIRECT COST OF CARE. THIS PRODUCES THE SAME SHORTFALL OUTCOME AS DOES THE PARTICIPATION IN THE MEDICAID PROGRAM. THE MEDICAID PROGRAM IS RECOGNIZED AS A COMMUNITY BENEFIT ON SCHEDULE H AND ON COMMUNITY BENEFIT REPORTS FOR MOST STATES. THE QUALITY AND COST OF THE PATIENT CARE IS THE SAME REGARDLESS OF PAYOR SOURCE. HENCE THE ACCEPTANCE OF MEDICARE REIMBURSEMENT REPRESENTS A REDUCTION OR RELIEF OF THE GOVERNMENT BURDEN TO PAY THE FULL COST OF CARE PROVIDED. THE SOURCE USED FOR THE COSTING METHODOLOGY FOR THE AMOUNT REPORTED ON LINE 6 WAS THE 2017 MEDICARE COST REPORT. PART III, LINE 9B COLLECTION PRACTICES PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE FOLLOW THE SAME COLLECTION POLICY AS ALL INDIVIDUALS WITH BALANCES REMAINING AFTER APPLICATION OF FINANCIAL ASSISTANCE. IF A PATIENT HAS BEGUN MAKING PAYMENTS BUT THEN IS LATER DETERMINED TO QUALIFY UNDER FAP, ELKHART GENERAL HOSPITAL WOULD ISSUE A REFUND TO THE PATIENT FOR ANY AMOUNT THAT HAS BEEN DETERMINED TO EXCEED THEIR NEWLY DETERMINED FINANCIAL RESPONSIBILITY. 2. Needs Assessment CHNA Process & Methods In March through August 2015, work began on gathering the community engagement and feedback essential to the integrity and validity of the CHNA process. Throughout the process, input was actively solicited and secured from persons who hold a broad knowledge of Elkhart County including public health, minority, cultural, and underserved populations; from the community members at large; and from the medical and health services fields. These key informants provided input on community health priorities, barriers to accessing care, the impact of social determinants of health, and how to best address wellness in the community and underserved populations. Other than CHNA, health needs are assessed using secondary data. Information and data trends on relevant health and socioeconomic indicators were collected. The data profile depicted population and household statistics, morbidity and mortality rates, incidence rates, and other health statistics for both Elkhart and St. Joseph counties. Secondary data was collected from reputable data sources, including the U.S. Census Bureau, Centers for Disease Control and Prevention, and Indiana State Department of Health. When available county, state, and national data points were used as benchmarks. Additional input on perceived health priorities and barriers to accessing care was solicited from the community at large through an online survey that could be accessed directly from home or through the free community service computer access located at Elkhart County Public Libraries. Consideration was given to ensuring the ease of access among Amish, Hispanic Latino, African American, and low-income populations. The survey, consisting of 50 questions, asked community members at large to provide input on access to health care, health status and behaviors, social constraints, and health-related community strengths and opportunities. Identifying and Prioritizing Significant Health Needs In August and September 2015, several community health stakeholder meetings were held to review the results of 2015 Elkhart County CHNA secondary data report, the Key Informant Survey summary, and the community member survey. The purpose of these meetings was to review results and solicit input on Elkhart County community health priorities. These community health stakeholders include members of the Elkhart General Hospital Board of Directors, Beacon Health System leaders, key Elkhart County medical providers, Elkhart County community funders, and Elkhart County schools personnel. Discussion was focused on the priority needs, current dedicated resources for community health needs, resource constraints, and the viability of identifying community health needs for which all funders could collectively support. The following three health needs were selected as Elkhart General Hospital's 2016-2018 priorities: Access to Health Care/Uninsured Maternal/Infant Health/Prenatal Care Obesity/Overweight 3. Patient Education of Eligibility for Assistance WHEN UNINSURED PATIENTS PRESENT TO OUR HOSPITAL, THEY ARE OFFERED THE OPPORTUNITY TO MEET WITH OUR ELIGIBILITY SPECIALISTS. OUR ELIGIBILITY SPECIALISTS DISCUSS THE POTENTIAL ELIGIBILITY OF THE PATIENT FOR MULTIPLE ASSISTANCE PROGRAMS, INCLUDING OUR OWN INTERNAL FINANCIAL ASSISTANCE PROGRAM. OUR STATEMENTS ALSO INCLUDE A NOTICE THAT FINANCIAL ASSISTANCE IS AVAILABLE TO PATIENTS, AND THEY CAN CONTACT OUR CUSTOMER SERVICE GROUP FOR GUIDELINES. Patients are also made aware of our financial assistance program via telephone conversation with our Patient Accounts staff. Staff is particularly sensitive to address this program with anyone who indicates there might be a financial need. 4. Community Information Elkhart County, Indiana, was established in 1830, with the original county seat in Dunlap and was later moved to Goshen. Today Elkhart County has three growing cities, four towns, and 16 townships. Elkhart County is located in northern Indiana and borders the state of Michigan. The County is approximately 463.91 square miles in size. Elkhart County lies halfway between Chicago and Cleveland and is located near Interstate 80/90 and the Indiana Toll Road. Elkhart County's service providers have a history of actively forming partnerships in an effort to meet the health needs of its residents. Elkhart County takes pride in offering its residents a great place to live and continually strives to establish new businesses and provide an entrepreneurial atmosphere. Elkhart County is considered EGH'S primary service area. According to the 2015 U.S. Census estimates, Elkhart County population rose to 203,474. The percentage of persons 65 years and older was estimated at 14.0%. Census data show that 90% of Elkhart County residents are white persons not of Hispanic descent; 15% are Hispanic/Latino; and 6% are black. In 2015 7% of the total labor force were unemployed. The median household income (2015) of Elkhart County residents was $47,913. The percentage of persons living in poverty was 14%. EGH HAS HISTORICALLY DEFINED ITS GEOGRAPHIC PRIMARY MARKET AREA AS ELKHART COUNTY. FOR THE PURPOSE OF THE CHNA, THE COMMUNITY SERVED IS DEFINED AS THOSE PERSONS RESIDING IN ELKHART COUNTY. AS IDENTIFIED THROUGH U.S. CENSUS DATA, ELKHART COUNTY ENCOMPASSES A MIX OF CULTURAL, ETHNIC, AND ECONOMIC POPULATIONS. 5. Promotion of Community Health The mission of Elkhart General Hospital, as a Beacon Health System partner, is to enhance the physical, mental, emotional and spiritual well-being of the communities we serve. Beacon Health System is committed to clinical excellence, compassionate care, and the ongoing improvement of quality of life. Our commitment will lead the Health System to be the community's provider of outstanding quality, superior value and comprehensive health care services. Both Beacon Health System and Elkhart General Hospital have community Boards of Directors, and consistently invest funds to improve the quality of life for our communities. Beacon Health System values reflect an unwavering commitment to the communities we serve. Elkhart General Hospital, as a Beacon Health System partner, has as its values: Patients are at the center - Patient needs, care and safety are our top priority. rust - Our actions will firmly demonstrate reliability on our integrity, abilities and our character. Respect - We will treat our patients, community members and each other with the highest level of regard, demonstrating an understanding of different perspectives, cultures, interests and needs of others. Integrity - We will continually do the right thing for our patients, associates and communities we serve. Compassion - We will demonstrate the emotional capacities of empathy and sympathy, and express the desire to help. Elkhart General seeks to promote the health and well-being of Elkhart County residents, with specific focus on the most vulnerable populations, by providing education to aid in early detection and prevention of disease and to improve the health status of the community as a whole. A key mechanism by which this goal is carried out is Elkhart General Hospital's serious, consistent, deliberate search for and partnership with like-minded organizations. Elkhart General Hospital continues to seek out partnerships with multiple community entities to address the needs of the medically underserved and to improve the health status of our community. These collaborative alliances included local public health, schools, churches, social service agencies, minority advocacy groups, victim assistance, and community health providers. Elkhart General Hospital's governing body is comprised of persons who reside in Elkhart County. The 10 member Board of Directors, who serve without pay, guide the system in its mission to provide high quality, affordable health care to the communities it serves. The Board's responsibilities include guaranteeing fair and equal access, approving new medical staff members and approving long-term strategies for the continued success of the hospital. Additionally, Elkhart General Hospital extends medical staff privileges to all qualified physicians in our community. responsibilities include guaranteeing fair and equal access, approving new medical staff members and approving long-term strategies for the continued success of the hospital. Additionally, Elkhart General Hospital extends medical staff privileges to all qualified physicians in our community. 6. Affiliated Health Care System In 2011 Elkhart General Hospital affiliated with Memorial Hospital of South Bend, Indiana, under the name of Beacon Health System, Inc. Both organizations continue as full-care providers for their respective counties, and both organizations are committed to promoting the health of the communities they serve. THE BEACON HEALTH SYSTEM BOARD OF DIRECTORS CONSISTS OF 14 VOTING BOARD MEMBERS. 7. State Filing of Community Benefit Report Elkhart General Hospital, Inc., prepares a Community Benefit Report both for the State of Indiana and for the Annual Report, which is posted at www.beaconhealthsystem.org/chna. true RIBBON OF HOPE 600 EAST BOULEVARD ELKHART IN 46514 352118856 501(c)(3) 25000 CASH CANCER SUPPORT UNITED WAY OF ELKHART COUNTY 601 CR 17 ELKHART IN 46515 350953433 501(C)(3) 72000 CASH CORPORATE MATCH ECONOMIC DEVELOPMENT CORP 300 BIBCO PARKWAY ELKHART IN 46516 351973845 501(C)(3) 10000 CASH ELKHART COUNTY HEALTH DEPARTMENT 117 N SECOND STREET GOSHEN IN 46526 356000142 501(C)(3) 33333 CASH SPONSORSHIP ELKHART FESTIVALS 410 S MAIN ST ELKHART IN 46514 475394067 501(C)(3) 12500 CASH SPONSORSHIP 5 TRANSPORTATION SERVICES 120 33249 Diabetes Education 69 18647 SCHEDULE I, PART I, LINE 2 PART OF ELKHART GENERAL HOSPITAL'S MISSION IS TO IMPROVE THE HEALTH OF ITS COMMUNITY. IN ORDER TO FULFILL THIS GOAL, OUR ADMINISTRATORS HAVE THE ABILITY TO MAKE DONATIONS TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL BEING OF OUR COMMUNITY. SINCE ALL GRANTS TO ORGANIZATIONS ARE MADE TO 501(C)(3) ENTITIES, THERE ARE NO PROCEDURES FOR MONITORING THE USE OF THE FUNDS. ELKHART GENERAL HOSPITAL ALSO PAYS FOR THE TRANSPORTATION OF SPECIFIC INDIVIDUALS FROM THE HOSPITAL FACILITY TO NEARBY NURSING HOMES AND OTHER ASSISTED LIVING FACILITIES. THESE PAYMENTS ARE MADE DIRECTLY TO THE THIRD PARTY TRANSPORTATION SERVICE PROVIDER AT COST. SCHEDULE I, PART III NUMBER OF RECIPIENTS FOR THE TRANSPORTATION SERVICES IS ESTIMATED BASED ON THE NUMBER OF INVOICES FROM OUTSIDE ORGANIZATIONS FOR OTHER ASSISTANCE MADE FOR THE BENEFIT OF INDIVIDUAL RECEPIENTS. X X X true true true true false false false false false true false Gregory Losasso Former President 0 0 225968 0 0 3413 0 229381 0 225968 0 Jeffrey P Costello CFO/Asst. Treasurer 0 459929 0 108072 0 29601 0 159176 0 19589 0 776367 0 0 Phillip A Newbold CEO THRU 10/2017 0 807254 0 215000 0 688698 0 217827 0 15415 0 1944194 0 135543 KARRA L HEGGEN VP OF NURSING 251012 37373 2360 136682 0 904 0 428331 0 0 0 CINDIE L MCPHIE VP OF OPERATIONS 171975 24756 7641 8181 0 10346 0 222899 0 0 0 LIANG Q WANG SENIOR PHYSICIST 220075 9673 9332 0 19718 0 258798 0 0 0 KREG R GRUBER CEO 515723 111282 13752 0 159087 0 21425 0 821269 0 0 Maria A Behr Director of Pharmacy 162415 7140 5187 7036 0 8658 0 190436 0 0 0 Carl W Risk II President 322442 6600 47720 0 22263 0 399025 0 0 0 JAMES E CANTRELL PERFUSIONIST 124219 40000 155 1883 0 17673 0 183930 0 0 0 Supplemental Compensation Information PART I, LINE 1A ELKHART GENERAL HOSPITAL, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS OF COMPLIMENTARY USE OF BEACON'S HEALTH AND LIFESTYLE CENTER AND SPOUSAL TRAVEL. BEACON HEALTH SYSTEM REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR., PHIL NEWBOLD AND KREG GRUBER. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR., TIM SHELLY, LEONARD KIBILOWSKI, MD, BRUCE NEWSWANGER, DO, JOHN DEPUTY, AND AMISH SHAH. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING INDIVIDUALS WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR., TIM SHELLY, LEONARD KIBILOSKI, MD, BRUCE NEWSWANGER, DO, JOHN DEPUTY, AND AMISH SHAH. PART I, LINE 3 ELKHART GENERAL HOSPITAL,INC. USES A RELATED ORGANIZATION'S (BEACON HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION. PART I, LINE 4A SEVERANCE WAS PAID AND/OR ACCRUED FOR: A 1 YEAR SEVERANCE AGREEMENT WAS ENTERED INTO WITH GREGORY LOSASSO IN APRIL 2016 TOTALING $368,283, OF WHICH $270,169 WAS PAID IN 2016. THE REMAINDER OF $98,114 PAID OUT IN 2017. A 1 YEAR SEVERANCE AGREEMENT WAS ENTERED INTO WITH KARRA HEGGEN IN DECEMBER 2017, TOTALING $125,882 WHICH IS REFLECTED AS DEFERRED COMPENSATION. THE PAYOUT WILL OCCUR IN 2018. PART I, LINE 4B BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2017, REFLECTED IN COLUMN (B)(III): PHIL NEWBOLD $135,543 THE FOLLOWING INDIVIDUALS RECEIVED DEFERRED PAYMENTS IN 2017 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: PHIL NEWBOLD $197,348 JEFFREY COSTELLO $77,367 KREG GRUBER $83,287 CARL RISK $43,682 BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE LONGEVITY BONUS PLAN FOR THE PURPOSE OF PROVIDING A LONGEVITY BONUS FOR ITS' DESIGNATED EXECUTIVES. THIS UNFUNDED PLAN WAS EFFECTIVE APRIL 1, 2014. THE PARTICIPANTS MUST REMAIN IN AN ACTIVE EMPLOYMENT STATUS WITH BEACON FOR A PERIOD OF 5 CONSECUTIVE YEARS FROM THE EFFECTIVE DATE TO BE ELIGIBLE TO RECEIVE THE FULL LONGEVITY BONUS AMOUNT AT WHICH TIME VESTING IS 100%. VESTING PRIOR TO THE 5 YEARS IS AT 0%. THE MAXIMUM BONUS AWARD AT 100% VESTING IS $325,000. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2017, REFLECTED IN COLUMN (B) (III): GREG LOSASSO, $130,000 THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2017 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: JEFFREY COSTELLO, $65,000 KREG GRUBER, $65,000 PART I, LINE 7 THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGEMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC. AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET OPERATING INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME. THE PAYOUT OF THE MANAGEMENT INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETS OPERATING INCOMES. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. A INDIANA FINANCE AUTHORITY 351602316 45471AQM7 2017-09-08 40210000 REFUND BONDS ISSUED 12/09/2008 false false false B INDIANA FINANCE AUTHORITY 351602316 45471ALS9 2013-05-21 38582380 REFUND BONDS ISSUED 12/15/1998 false false false A 0 0 40210000 0 0 0 0 0 0 0 40210000 0 2017 true false true true B 8319279 0 38582380 0 0 0 134933 0 0 0 38275235 0 2013 true false true true A false true true true false 0.01900 0.00000 0.01900 false false false true B 0 A false false true false true false 0 false 0 false true B false false false true false false 0 false 0 false true A true B true PART III, COLUMN B: COLUMN B IS NOT COMPLETED BECAUSE SUCH BONDS WERE ISSUED AFTER 12/31/2002 TO REFUND, THROUGH A SERIES OF REFUNDING, BONDS ISSUED BEFORE 01/01/2003. PART IV, LINE 2C, COLUMN B THE DATE THE REBATE COMPUTATION WAS PERFORMED ON THE HOSPITAL AUTHORITY OF ELKHART COUNTY WAS 12/9/2016. MISSION STATEMENT FORM 990, PART I, LINE 1 ELKHART GENERAL HOSPITAL IS A NOT-FOR-PROFIT HOSPITAL GOVERNED BY A BOARD OF DIRECTORS COMPRISED OF COMMUNITY VOLUNTEERS. EMPHASIS IS PLACED ON ENSURING EVERYONE IN THE COMMUNITY RECEIVES THE HEALTH CARE THEY NEED. FORM 990, PART III, QUESTION 3 ELKHART GENERAL HOSPITAL NO LONGER HAS A JOINT VENTURE WITH RIVERPOINT SURGERY CENTER AND WANEE WALK-IN CLINIC. ALSO, ELKHART GENERAL HOSPITAL NO LONGER PROVIDES LAUNDRY SERVICES WHICH HAS DECREASED REVENUE. MEMBERS OF THE ORGANIZATION Form 990, Part VI, SECTION A, LINE 6 Beacon Health System, Inc. is the sole corporate member of Elkhart General Hospital, Inc. ELECTION OF BOARD MEMBERS FORM 990, PART VI, SECTION A, LINE 7A THE CORPORATE MEMBER SHALL APPOINT THE BOARD OF DIRECTORS OF ELKHART GENERAL HOSPITAL, INC. AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF ELKHART GENERAL HOSPITAL, INC. In the absence of such selection by the corporate member, or until the corporate member determines otherwise, Directors shall be selected as follows: Eight (8) directors shall be determined by the Member or by the Board with the approval of the Member. The Chief of the Medical Staff of the Corporation shall be an additional non-voting ex officio member of the Board of Directors, so long as such individual holds the position of Chief of the Medical Staff of the Corporation. GOVERNANCE DECISIONS FORM 990, PART VI, SECTION A, LINE 7B DECISIONS OF THE BOARD OF DIRECTORS MUST BE APPROVED BY THE CORPORATE MEMBER. Beacon Health System, the Sole Member of Elkhart General Hospital, has control over Elkhart General Hospital's operations. The following matters require the approval of Beacon Health System's Board: 1. Changes to the Articles of Incorporation or Bylaws of Elkhart General Hospital. 2. Appointing or removing with or without cause, the members of the Board, provided, however, that the process of appointment and removal of members of the Board of Elkhart General Hospital shall be as set forth in Elkhart General Hospital's Bylaws, and that appointment of members of the Board of Elkhart General Hospital shall be upon the recommendation of Beacon Health System's Nominating and Governance Committee. 3. The incurrence of debt of Elkhart General Hospital. 4. The sale, transfer or substantial change in use of all or substantially all of the assets of Elkhart General Hospital or the divestiture, dissolution, closure, merger, consolidation, change in corporate membership or ownership, or corporate reorganization of Elkhart General Hospital. 5. The formation of a subsidiary of Elkhart General Hospital, or the sale, transfer or substantial change in use of all or substantially all of the assets of a subsidiary of Elkhart General Hospital, or the divestiture, dissolution, closure, merger, consolidation or change in corporate membership or ownership of a subsidiary of Elkhart General Hospital. 6. The material transfer or encumbrance of the assets of Elkhart General Hospital or a subsidiary of Elkhart General Hospital. 7. The annual operating budget, capital plan, strategic plan, and business plan for Elkhart General Hospital and subsidiaries of Elkhart General Hospital. 8. The mission and vision statements for Elkhart General Hospital and subsidiaries of Elkhart General Hospital. 9. Any material transactions of Elkhart General Hospital or a subsidiary of Elkhart General Hospital which are not otherwise included in the approved operating or capital budgets of Elkhart General Hospital or a subsidiary of Elkhart General Hospital or as otherwise authorized in the bylaws or operating agreement of Elkhart General Hospital or a subsidiary of Elkhart General Hospital. 10. Resolving any issues between Elkhart General Hospital or a subsidiary of Elkhart General Hospital and other affiliates of Beacon Health System as to participation, or failure to participate in, specific managed care agreements, and the terms thereof. 11. Any management agreement for the management of all or any substantial part of Elkhart General Hospital or a subsidiary of Elkhart General Hospital operations. DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION INCORPORATES NUMEROUS PARTIES IN THE PRODUCTION AND REVIEW OF THE FORM 990 AND ASSOCIATED SCHEDULES. SENIOR ACCOUNTING STAFF AND MANAGEMENT COMPLETE THE FORM 990 AND SCHEDULES. SOME FORMS AND SCHEDULES ARE REVIEWED BY THE CONTROLLER. SUBSEQUENT TO THOSE STEPS, THE ORGANIZATION ENGAGED ERNST & YOUNG TO REVIEW THE COMPLETED FORM 990 AND APPROPRIATE SCHEDULES. PRIOR TO FILING THE RETURN, THE CFO, THE COMPENSATION COMMITTEE OF THE ORGANIZATION, AND THE CEO CONDUCT A GENERAL OVERVIEW OF THE FORM 990, INCLUDING APPLICABLE COMPENSATION SCHEDULES. IN ADDITION, EACH BOARD MEMBER RECEIVES NOTIFICATION OF THE IRS FORM 990 PLACEMENT ON THE ORGANIZATION'S BOARD PORTALS WHICH ALLOWS FOR BOARD MEMBER REVIEW PRIOR TO FILING THE RETURN. CONFLICT OF INTEREST STATEMENTS FORM 990, PART VI, SECTION B, LINE 12C THERE ARE THREE SEPARATE FORMS THAT ARE SENT OUT THROUGH THE INTERNAL AUDIT DEPARTMENT TO KEY EMPLOYEES OR BOARD MEMBERS REGARDING CONFLICT OF INTEREST. THEY ARE AS FOLLOWS: 1. THE FIRST IS A CONFLICT OF INTEREST STATEMENT THAT IS SENT TO SENIOR LEVEL ADMINISTRATION, MANAGEMENT, AND SELECT STAFF SUCH AS PURCHASING DEPARTMENT EMPLOYEES. THE PURPOSE OF THE STATEMENT IS TO REQUIRE THESE EMPLOYEES TO DISCLOSE ANY POTENTIAL CONFLICT OF INTERESTS THEY MAY HAVE. THE STATEMENTS ARE SENT IN JANUARY OF EACH YEAR for the previous year activities. WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT OVER 320 STATEMENTS AND are WORKING TO ACHIEVE A 100% RESPONSE RATE. EACH RESPONSE IS REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT AND THE RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AS WELL AS THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 2. THE SECOND STATEMENT IS THE BOARD DUALITY OF INTEREST STATEMENT THAT is SENT TO CURRENT BOARD MEMBERS, FORMER BOARD MEMBERS FROM THE LAST FIVE YEARS, and OTHER KEY EMPLOYEES. THE DUALITY OF INTEREST STATEMENT is sent using a web-based survey tool provided by Ernst & Young. THE REPLIES ARE REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT. THE RESULTS of the surveys are summarized using the web-based tool, and are reviewed by Ernst & Young in completing the 990. The RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AND THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 3. THE THIRD STATEMENT IS ENTITLED "CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS." THE STATEMENT REQUIRES AN ACKNOWLEDGEMENT FORM TO BE SIGNED BY Beacon Health System's KEY FINANCIAL EMPLOYEES THAT Beacon's FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT IN EARLY MARCH, 2018 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2018, 17 DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST would be EXCLUDED FROM ALL REVIEW PROCEEDINGS. EXCLUDED FROM ALL REVIEW PROCEEDINGS. COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST would be EXCLUDED FROM ALL REVIEW PROCEEDINGS. EXCLUDED FROM ALL REVIEW PROCEEDINGS. COMPENSATION PROCESS FORM 990, PART VI, SECTION B, LINES 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF ELKHART GENERAL HOSPITAL, CONDUCTS THE REVIEW OF ALL COMPENSATION. VICE PRESIDENT AND HIGHER COMPENSATION IS DETERMINED AFTER AN EXTENSIVE EXAMINATION IS CONDUCTED USING COMPARABLE MARKET DATA AND THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. HUMAN RESOURCES CONDUCTS THE ANALYSIS AND MAKES RECOMMENDATIONS TO THE CEO WHO THEN MAKES THE RECOMMENDATIONS TO THE BOARD FOR APPROVAL. RECOMMENDATIONS ARE PRESENTED TO THE COMPENSATION COMMITTEE OF THE BEACON HEALTH SYSTEM, INC. BOARD FOR DELIBERATION AND FINAL DECISION. DELIBERATION AND FINAL DECISION ARE PERFORMED BY THE INDEPENDENT MEMBERS OF THE BOARD. PUBLIC AVAILABILITY FOR DOCUMENTS FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. THE FINANCIAL STATEMENTS ARE DISTRIBUTED QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR BEACON HEALTH SYSTEM, INC. BONDS. Form 990, Part XI, line 9 Pension Liability - (19,000) Write off of Intercompany Balances, Beacon Health System - (4,987,457) ACCOUNTING CHANGE - 3,605,071 LOSS ON BOND REFUNDING - (329,943) Total - (1,731,329). FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING FEES TOTAL FEES:687539 FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN FEES TOTAL FEES:2857876 FORM 990 PART IX LINE 11G DESCRIPTION:LAB FES TOTAL FEES:9728954 FORM 990 PART IX LINE 11G DESCRIPTION:BLOOD PRODUCTS TOTAL FEES:1040194 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:6338835 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:1307378 FORM 990 PART IX LINE 11G DESCRIPTION:REPAIR AND MAINTENANCE TOTAL FEES:1737256 FORM 990 PART IX LINE 11G DESCRIPTION:SERVICE CONTRACTS TOTAL FEES:4400476 Beacon Medical Group Inc 615 N MICHIGAN STREET SOUTH BEND IN 46601 351536132 PHY PRACTICES IN 501(C)(3) 10 BHS true BEACON HEALTH FOUNDATION INC 615 N MICHIGAN STREET SOUTH BEND IN 46601 351536129 FINANCIAL SUP IN 501(C)(3) 7 BHS true MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(C)(3) 12D III-O MHSB true BEACON HEALTH SYSTEM INC 615 N MICHIGAN STREET SOUTH BEND IN 46601 453864076 PARENT ORG. IN 501(C)(3) 12AI NA false Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 Hospital IN 501(C)(3) 3 BHS true ELKHART GENERAL HOSPITAL AUXILIARY 600 EAST BLVD ELKHART IN 46514 350938148 VOL SUPPORT IN 501(C)(3) 12A,TYPE I NA false Beacon Health Ventures Inc 615 N Michigan St South Bend IN 46601 351901068 Home Medical IN C Beacon Health Ventures Michigan Inc 615 N Michigan St South Bend IN 46601 208259773 Home Medical MI C true false true false false false false false true true false true true true true true true true true Memorial Hospital of South Bend q 215328 ACTUAL CHARGES Memorial Hospital of South Bend p 9926807 ACTUAL CHARGES Memorial Hospital of South Bend s 7502174 INTERCO TRNSF Beacon Medical Group P 599352 ACTUAL CHARGES Beacon Medical Group i 816406 ACTUAL CHARGES Beacon Medical Group r 180061 ACTUAL CHARGES Beacon Medical Group S 347712 ACTUAL CHARGES Beacon Medical Group j 913078 ACTUAL CHARGES BEACON HEALTH FOUNDATION C 214377 ACTUAL CHARGES