2018-11-15T08:41:49-06:00 2017-12-31 990 2017-01-01 581728803 NOVANT MEDICAL GROUP INC NOVA 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 FRED HARGETT EVP & CFO 3367182003 2018-11-12 170.98.106.254 2018-11-12 16:34:37 ES P B07FDA97AAC7713492025A2A90B7F2A504042AC6 2E0617DCF860B22C3F0F9F24470DBB0FF68CD602 2017 2018-06-14 16:35:46Z NOVANT HEALTH MEDICAL GROUP CARL ARMATO 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 853304586 0 X WWW.NOVANTHEALTH.ORG X 1987 NC SEE SCHEDULE O 5 4 6376 8 234277 0 100000 2416777 757787683 846847037 -128467 -151884 7402349 3723979 765161565 852835909 73242 77950 0 0 595739612 673462785 0 0 0 240885622 255405327 836698476 928946062 -71536911 -76110153 120326039 149221369 769264152 876040887 -648938113 -726819518 X SEE SCHEDULE O 0 0 849980495 77950 848975182 NOVANT MEDICAL GROUP OFFERS VARIOUS PHYSICIAN SERVICES TO THE COMMUNITY AT MULTIPLE LOCATIONS. NOVANT MEDICAL GROUP PROVIDED 3,287,255 PATIENT ENCOUNTERS DURING 2017. THE ORGANIZATION'S OPERATIONS SERVE THE COMMUNITY BY PROVIDING ACCESS TO MUCH NEEDED HEALTHCARE SERVICES REGARDLESS OF THE PATIENTS' ABILITY TO PAY. 849980495 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 6376 1 1 1 0 0 0 0 0 0 0 0 0 X 5 4 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 0 0 0 1 0 NC X KAREN DAUGHERTY 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 X BARR ROBERT MD CHAIR 2.00 X X 0 0 0 ELY JOSEPH TRUSTEE 2.00 X 0 0 0 MURPHY DANIEL VICE CHAIR 2.00 X X 0 0 0 PHIPPS JOHN MD EVP & PRESIDENT NHMG 60.00 X X 1225463 0 211096 VALENTINE PEGGY SEC/TREAS 2.00 X X 0 0 0 MOORE ALICE ASST SEC 2.00 X 0 260978 58152 WALSH BETSY ASST SEC 2.00 X 0 320949 90622 CAPPS RICHARD MD SVP & COO NHMG 60.00 X 699326 0 155577 GARDNER GEOFFREY SVP OPERATIONAL FINANCE 60.00 X 0 609493 149719 LAMBETH MARTY VP NH CLINICAL SERVICES 60.00 X 530636 0 83316 MOTEW STEPHEN MD SVP & MARKET PRESIDENT 60.00 X 0 744585 161650 MUELLER ANDREW MD SVP & MARKET PRESIDENT 60.00 X 821839 0 166454 BARRON JERRY ORTHOPAEDIST 40.00 X 1303125 0 31198 GARCIA JOSEPH FAMILY PRACTITIONER 40.00 X 1314779 0 83242 HOMESLEY HOWARD ORTHOPAEDIST 40.00 X 2137705 0 90593 KWON ANTHONY ORTHOPAEDIST 40.00 X 2325775 0 87396 WHITAKER ROBERT ENT SPECIALIST 40.00 X 1553953 0 97413 CLEGG HERBERT MD SVP CLINICAL EXCELLENCE NHMG 0.00 X 684129 0 86102 COOK DAVID MD FMR SVP NMG 0.00 X 0 850044 168940 JENIKE THOMAS MD FMR SVP NMG 0.00 X 0 684823 141799 WEEMS II LARRY MD VP HOSPITALIST SERVICES 0.00 X 538092 0 81889 WOOLLEN THOMAS MD FORMER SVP 0.00 X 0 718887 165704 13134822 4189759 2110862 1214 1 1 0 LABORATORY CORPORATION OF AMERICA HOLDIN PO BOX 12140 BURLINGTON NC 27216 LAB SERVICES 4845041 LANDMARK BUILDERS OF THE TRIAD 3520 TRIAD COURT WINSTON SALEM NC 27107 CONSTRUCTION SERVICES 4317598 HOSTETTER & KEACH INC PO BOX 1137 PINEVILLE NC 28134 CONSTRUCTION SERVICES 2601214 SHELCO LLC 2320 CASCADE POINTE BLVD CHARLOTTE NC 28208 CONSTRUCTION SERVICES 2342039 CHANGE HEALTHCARE SOLUTIONS PO BOX 572490 MURRAY UT 84157 REVENUE CYCLE SERVICES 1748005 69 290747 2126030 2416777 NET PATIENT REVENUE 621111 729614962 729614962 PHYSICIAN SERVICES 621111 77150872 77150872 VALUE BASED INCENTIVE 900099 36809234 36809234 EMR SYSTEM SUPPORT 541511 3052899 3052899 EKG READS 621999 219070 219070 846847037 1355001 0 1355001 1355001 1355001 316793 468677 -151884 -151884 -151884 MISCELLANEOUS INCOME 900099 2096645 2096645 HEALTHCARE ADMINISTRATION SERVICE 900099 234277 234277 PROFESSIONAL FEES 900099 31500 31500 6556 6556 2368978 852835909 848975182 234277 1209673 X 77950 77950 5283916 5283916 59332 59332 560678691 545708570 14970121 20176392 19637682 538710 58727751 57159720 1568031 28536703 27774773 761930 19925 19925 3404 3404 22927768 20483116 2444652 707231 688348 18883 11176020 8482259 2693761 1455343 1416485 38858 44444675 43258002 1186673 3811682 3709910 101772 633512 616597 16915 1611348 1568325 43023 13573272 13210866 362406 4960622 4794708 165914 UBI TAXES 48 48 CORPORATE SUPPORT 44348752 44348752 DRUGS 40605377 40605377 BAD DEBT 26106039 26106039 39020309 34681768 4338541 928946062 849980495 78965567 0 628394 819981 56969347 69673715 5343751 5852313 2771581 559696 303596 330039 151409188 91345123 42379296 60064065 11921560 11921560 8514 0 120326039 149221369 53262172 66845773 1635812 1575377 714366168 807619737 769264152 876040887 X -648938113 -726819518 -648938113 -726819518 120326039 149221369 X -76110153 -1771252 X 0 1 X 1 0 X 1 1 0 0 0 0 1 3404 0 1 33932 37336 0 PART II-B, LINE 1: LINE 1A THERE IS LIMITED ENGAGEMENT OF THE BOARD. LINE 1B THERE IS MINIMAL TIME OF SENIOR LEADERS. LINE 1G THERE IS LIMITED CONTACT MADE BY SENIOR LEADERS DURING ADVOCACY DAY. LINE 1I DUES PAID TO CERTAIN ORGANIZATIONS WHICH INCLUDE A PORTION RELATED TO LOBBYING ACTIVITIES. 1975097 1072089 903008 69682709 46118191 23564518 59863049 42733401 17129648 19888333 1421442 18466891 60064065 48 DUE TO AFFILIATES 797190383 OTHER LIABILITIES 10429306 807619737 X PART X, LINE 2: PART X, LINE 2: LIABILITY UNDER FIN 48 (ASC 740) FOOTNOTE THE AUDIT FOR NOVANT HEALTH AND ITS AFFILIATES IS PREPARED ON A CONSOLIDATED BASIS. THE COMPANY IS REQUIRED TO EVALUATE UNCERTAIN TAX POSITIONS. THIS EVALUATION INCLUDES A QUANTIFICATION OF TAX RISK IN AREAS SUCH AS UNRELATED BUSINESS TAXABLE INCOME AND THE TAXATION OF OUR FOR-PROFIT SUBSIDIARIES. THIS EVALUATION DID NOT HAVE A MATERIAL EFFECT ON THE COMPANY'S CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016. 1 MARCH OF DIMES FOUNDATION 1275 MAMARONECK AVE WHITE PLAINS NY 10605 131846366 501(C)(3) 38000 COMMUNITY OUTREACH NORTH CAROLINA CHAMBER 701 CORPORATE CENTER DR SUITE 400 RALEIGH NC 27607 560340499 501(C)(6) 10000 SPONSORSHIPS 1 1 PART I, LINE 2: PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS THE FILING ORGANIZATION IS PART OF THE INTEGRATED HEALTHCARE SYSTEM OPERATED BY NOVANT HEALTH, INC. ("NOVANT HEALTH"), THE PARENT ORGANIZATION. NOVANT HEALTH'S BYLAWS AUTHORIZE IT TO ESTABLISH CERTAIN POLICIES FOR ALL OF ITS SUBSIDIARIES WITHIN THE SYSTEM. NOVANT HEALTH HAS ESTABLISHED A SYSTEM-WIDE CORPORATE POLICY WITH STANDARDIZED GUIDELINES THAT ARE TO BE USED IN REVIEWING THE ELIGIBILITY AND SELECTION OF GRANTEES RECEIVING CERTAIN EXEMPT PURPOSE FUNDS. THE FILING ORGANIZATION MAINTAINS DOCUMENTATION OF THE ELIGIBILITY AND SELECTION CRITERIA AND RECORDS OF THE AMOUNTS ARE MAINTAINED VIA THE GENERAL LEDGER. FUNDS ARE GENERALLY NOT TRACKED AFTER BEING GRANTED, AS THE ORIGINAL ELIGIBILITY AND SELECTION CRITERIA HAVE ALREADY BEEN MET. X X X X X 1 1 0 1 0 0 0 0 0 0 0 PHIPPS JOHN MD EVP & PRESIDENT NHMG 582961 0 487743 0 154759 0 183002 0 28094 0 1436559 0 95450 0 MOORE ALICE ASST SEC 0 220209 0 37790 0 2979 0 37355 0 20798 0 319131 0 0 WALSH BETSY ASST SEC 0 267805 0 47741 0 5403 0 59659 0 30963 0 411571 0 0 CAPPS RICHARD MD SVP & COO NHMG 400288 0 263296 0 35742 0 120521 0 35055 0 854902 0 7500 0 GARDNER GEOFFREY SVP OPERATIONAL FINANCE 0 388945 0 192387 0 28161 0 116310 0 33409 0 759212 0 0 LAMBETH MARTY VP NH CLINICAL SERVICES 306139 0 200424 0 24073 0 58614 0 24701 0 613951 0 0 0 MOTEW STEPHEN MD SVP & MARKET PRESIDENT 0 434129 0 273152 0 37304 0 131343 0 30307 0 906235 0 7500 MUELLER ANDREW MD SVP & MARKET PRESIDENT 443446 0 281347 0 97046 0 127313 0 39142 0 988294 0 63750 0 BARRON JERRY ORTHOPAEDIST 1052862 0 236570 0 13693 0 0 0 31198 0 1334323 0 7500 0 GARCIA JOSEPH FAMILY PRACTITIONER 941218 0 371851 0 1710 0 48229 0 35013 0 1398021 0 0 0 HOMESLEY HOWARD ORTHOPAEDIST 1868223 0 259333 0 10149 0 58708 0 31885 0 2228298 0 7500 0 KWON ANTHONY ORTHOPAEDIST 1675151 0 649484 0 1140 0 52200 0 35196 0 2413171 0 0 0 WHITAKER ROBERT ENT SPECIALIST 522769 0 1020183 0 11001 0 65577 0 31836 0 1651366 0 0 0 CLEGG HERBERT MD SVP CLINICAL EXCELLENCE NHMG 388824 0 262665 0 32640 0 58109 0 27993 0 770231 0 0 0 COOK DAVID MD FMR SVP NMG 0 451226 0 303663 0 95155 0 133717 0 35223 0 1018984 0 67500 JENIKE THOMAS MD FMR SVP NMG 0 393889 0 257732 0 33202 0 107457 0 34342 0 826622 0 7500 WEEMS II LARRY MD VP HOSPITALIST SERVICES 332868 0 173919 0 31305 0 65700 0 16189 0 619981 0 7500 0 WOOLLEN THOMAS MD FORMER SVP 0 380035 0 250412 0 88440 0 123235 0 42469 0 884591 0 60000 PART I, LINE 1A PART I, LINE 1A: FRINGE OR EXPENSE EXPLANATION FIRST-CLASS OR CHARTER TRAVEL: FIRST-CLASS OR CHARTER TRAVEL IS NOT A COVERED TRAVEL EXPENSE FOR EXECUTIVES; THEY ARE LIMITED TO BUSINESS OR COACH CLASS FARES FOR COMMERCIAL FLIGHTS. HOWEVER, CHARTER TRAVEL IS AVAILABLE TO CERTAIN EXECUTIVES, BOARD MEMBERS, AND APPROVED BUSINESS PERSONNEL MEETING APPLICABLE POLICY CRITERIA. TRAVEL FOR COMPANIONS: COMPANIONS ARE ALLOWED ON CERTAIN CHARTER FLIGHTS PAID FOR BY THE ORGANIZATION. IN THAT CASE, THE VALUE OF THE COMPANION'S FLIGHT IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. DISCRETIONARY SPENDING ACCOUNT: CERTAIN EXECUTIVES RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THE DOLLAR AMOUNT IN THE ACCOUNT IS PRE-APPROVED BY THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD OF TRUSTEES. THE ACCOUNT CAN BE USED ONLY FOR AN APPROVED LIST OF EXPENDITURES. ALL OPTIONS OTHER THAN A DEFERRED, AT-RISK, COMPENSATION OPTION ARE CONSIDERED TAXABLE AND ARE INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: WE PROVIDE TEMPORARY HOUSING ALLOWANCES IN CERTAIN EXECUTIVE RECRUITMENT AND RELOCATION PACKAGES. IN THE CASE THAT SUCH EXPENSE IS NOT REIMBURSABLE UNDER THE ACCOUNTABLE PLAN RULES, THE VALUE IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES: IN CASES WHERE CORPORATE MEMBERSHIPS ARE NOT AVAILABLE, A MEMBERSHIP MAY BE OBTAINED IN AN EXECUTIVE'S NAME WITH A "BUSINESS USE ONLY" RESTRICTION. PART I, LINE 3 PART I, LINE 3: THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM. NOVANT HEALTH, INC. IS THE PARENT ORGANIZATION AND USES THE PROCESS DESCRIBED IN PART VI, LINE 15A OF THIS RETURN TO ESTABLISH THE COMPENSATION OF THE TOP MANAGEMENT OFFICIAL OF THE FILING ORGANIZATION. THIS PROCESS ADHERES TO THE REQUIREMENTS SET FORTH TO SECURE THE REBUTTABLE PRESUMPTION OF REASONABLENESS AND INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT AND DISINTERESTED MEMBERS OF A COMPENSATION COMMITTEE, CONSULTATION WITH INDEPENDENT COMPENSATION CONSULTANTS, THE UTILIZATION OF THIRD-PARTY COMPARABILITY DATA SUCH AS PUBLISHED COMPENSATION SURVEYS, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. PART I, LINE 4B PART I, LINES 4A-C: SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SEVERANCE NONQUALIFIED EQUITY-BASED COOK, DAVID 67,500 MUELLER, ANDREW 63,750 PHIPPS, JOHN 95,450 WOOLLEN, THOMAS 60,000 PART I, LINE 4A - SEVERANCE PLAN: ELIGIBLE EXECUTIVES MAY RECEIVE SEVERANCE PAY THAT IS BASED ON ANNUAL COMPENSATION FOR A SPECIFIED PERIOD OF TIME. THE SEVERANCE PAY WOULD BE PAID ONLY IN THE EVENT OF CERTAIN TYPES OF EMPLOYMENT TERMINATION, AND IS FURTHER CONTINGENT ON THE SATISFACTION OF OTHER CONDITIONS SUCH AS COMPLIANCE WITH A NON-COMPETITION COVENANT. ANY CURRENT YEAR PAYMENTS HAVE BEEN INCLUDED IN THE COMPENSATION AMOUNTS REPORTED IN PART VII AND IN COLUMN (B)(III) OF SCHEDULE J. THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS, INCLUDING THE AMOUNTS AWARDED UNDER THIS SEVERANCE PLAN. PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS: THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") IS INTENDED TO SUPPORT RETENTION OF KEY EXECUTIVES, AND TO OFFER COMPETITIVE TOTAL COMPENSATION. ELIGIBLE EXECUTIVES WILL BE NOMINATED BY THE CEO AND APPROVED BY THE NOVANT HEALTH COMPENSATION AND LEADERSHIP COMMITTEE ("THE COMMITTEE") TO PARTICIPATE. GENERALLY, ANNUAL CONTRIBUTIONS TO THE PLAN OR PAYMENTS TO PARTICIPANTS WILL BE BASED ON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AS OF JANUARY 1ST OF THE PREVIOUS PLAN YEAR AND ARE REPORTED IN COLUMN (C) OF SCHEDULE J. PRIOR TO MAKING THE CONTRIBUTIONS OR PAYMENTS, THE COMMITTEE WILL APPROVE THE AMOUNTS AS TO REASONABLENESS, WHEN COMBINED WITH ALL OTHER ANNUAL COMPENSATION. A 3 YEAR CLASS-YEAR VESTING PERIOD WILL APPLY UP TO AGE 62, WHEN ALL MONEY WOULD BE VESTED AND PAID OUT TO THE PARTICIPANT. OTHERWISE, VESTING WILL OCCUR ON JANUARY 1ST OF EACH YEAR FOR THE APPROPRIATE CLASS-YEAR VESTING PERIOD. THE COMMITTEE REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS. FORM 990, PI, LINE 1: ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES NOVANT MEDICAL GROUP, INC. DOING BUSINESS AS NOVANT HEALTH MEDICAL GROUP (NHMG) IS AN INTEGRAL PART OF THE NOVANT HEALTH SYSTEM (COLLECTIVELY KNOWN AS "NOVANT HEALTH"), A NOT-FOR-PROFIT INTEGRATED GROUP OF HOSPITALS, PHYSICIAN CLINICS, OUTPATIENT CENTERS AND OTHER HEALTHCARE SERVICE PROVIDERS. NOVANT HEALTH CONSISTS OF MORE THAN 1,500 PHYSICIANS AND OVER 28,000 EMPLOYEES WHO MAKE HEALTHCARE REMARKABLE AT OVER 580 LOCATIONS, INCLUDING 14 MEDICAL CENTERS AND HUNDREDS OF OUTPATIENT FACILITIES AND PHYSICIAN CLINICS. HEADQUARTERED IN WINSTON SALEM, NC, NOVANT HEALTH IS COMMITTED TO MAKING HEALTHCARE REMARKABLE FOR PATIENTS AND COMMUNITIES, SERVING MORE THAN 4.7 MILLION PATIENTS ANNUALLY. DIVERSITY MBA HAS RECOGNIZED THE ORGANIZATION AS ONE OF THE 50 BEST PLACES FOR WOMEN AND MANAGERS OF DIVERSE BACKGROUNDS TO WORK AND SK&A RANKS NOVANT HEALTH AMONG THE TOP 25 INTEGRATED HEALTH SYSTEMS IN THE NATION. IN 2017, THE NOVANT HEALTH SYSTEM REPORTED $4.6 BILLION IN REVENUES. GENERAL INFORMATION NOVANT HEALTH MEDICAL GROUP IS A PHYSICIAN-LEAD ORGANIZATION COMPRISED OF PHYSICIANS AND ADVANCED PRACTICE CLINICIANS AT OVER 500 CLINIC LOCATIONS THROUGHOUT NORTH CAROLINA, SOUTH CAROLINA AND VIRGINIA. THE CLINICS PROVIDE A CONTINUUM OF GENERAL AND SPECIALTY MEDICAL CARE IN LOCAL NEIGHBORHOODS, COMMUNITIES AND HOSPITALS - MANAGING 4.7 MILLION PATIENT ENCOUNTERS IN 2017, ALONE. MEDICAL GROUP PHYSICIAN SPECIALISTS HAVE ADVANCED TRAINING IN AREAS SUCH AS CARDIOLOGY, OBSTETRICS AND GYNECOLOGY, ENDOCRINOLOGY, PEDIATRICS, NEUROLOGY, ORTHOPEDICS, OTOLARYNGOLOGY (I.E., EAR, NOSE AND THROAT DISORDERS) AND MANY MORE. WE LEAD THE COUNTRY IN OUR FOCUS ON PATIENT SAFETY IN A MEDICAL GROUP SETTING. ANTIBIOTIC STEWARDSHIP, PATIENT SAFETY COACHES, PLAN, DO, STUDY, ACT (PDSA) CYCLES FOCUSED ON SAFETY AND A GROWING ACKNOWLEDGMENT OF SAFETY IMPROVEMENT OPPORTUNITIES SETS NOVANT HEALTH MEDICAL GROUP APART. WE FOLLOW AN ARRAY OF QUALITY METRICS AND CONTINUE TO IMPROVE AND PERFORM WELL WITH PARTICULAR PROGRESS BEING SEEN IN THE MANAGEMENT OF DIABETES AND IMPROVEMENT IN HEALTH MAINTENANCE AND ANNUAL HEALTH SCREENINGS. IN ADDITION TO OUR QUALITY OF SERVICES AND COMPREHENSIVE CATEGORIES OF SERVICES, WE'RE VERY PROUD OF OUR PATIENT FINANCIAL ASSISTANCE PROGRAM. WE WORK WITH CUSTOMERS TO HELP QUALIFY THEM FOR PUBLIC ASSISTANCE, ESTABLISH A REASONABLE PAYMENT PLAN, DISCOUNT THEIR BILL OR PROVIDE THEM WITH FREE CARE FOR THOSE THAT QUALIFY FOR FINANCIAL ASSISTANCE. ITS HUMAN EXPERIENCE INNOVATION COUNCIL FOCUSES ON ENHANCING THE PATIENT, FAMILY AND TEAM MEMBER EXPERIENCE FROM AN OPERATIONAL PERSPECTIVE. THE COUNCIL INCLUDES LEADERS FROM ALL OF OUR MARKETS AND DIFFERENT TEAMS SUCH AS RISK, PATIENT EXPERIENCE, CLINIC OPERATIONS, REVENUE CYCLE AND CLINIC SERVICES. THE COUNCIL IS WORKING ON SEVERAL PROJECTS THAT INCLUDE BRINGING SERVICE STANDARDS TO LIFE AND ENHANCING TEAM MEMBER REWARDS AND RECOGNITION. COMMUNITY OUTREACH COMMUNITY OUTREACH IS A CRITICAL COMPONENT TO THE MISSION OF NOVANT HEALTH MEDICAL GROUP. AT FREE CLINICS SPONSORED BY THE NOVANT HEALTH FOUNDATION, MEDICAL GROUP TEAM MEMBERS VOLUNTEER TO PROVIDE MEDICAL ASSISTANCE TO VULNERABLE POPULATIONS SUCH AS LOCAL RESIDENTS WITHOUT INSURANCE AND THE UNDER-INSURED. WE ARE ALSO WORKING TO IMPROVE HEALTH AND WELLNESS THROUGHOUT THE COMMUNITY. BY OFFERING FREE HEALTH SCREENINGS, PHYSICIANS, NURSES AND ADVANCED PRACTICE CLINICIANS ARE EDUCATING THE COMMUNITY ABOUT PREDIABETES, DIABETES, HIGH BLOOD PRESSURE AND OBESITY. FOR EXAMPLE, IN MAY, NOVANT HEALTH HOSTED THE SEVENTH ANNUAL COMPETITIVE EDGE SPORTS SCREENING DAYS. AT THESE EVENTS, WE OFFERED FREE, COMPREHENSIVE SPORTS PRE-PARTICIPATION EXAMS TO MIDDLE SCHOOL AND HIGH SCHOOL STUDENT-ATHLETES. PHYSICIANS, PHYSICIAN ASSISTANTS, NURSE PRACTITIONERS AND CLINICAL STAFF SERVED AS VOLUNTEERS IN HELPING CONDUCT THESE EXAMS. ADDITIONALLY, NOVANT HEALTH MEDICAL GROUP TEAM MEMBERS SERVE AS TEAM PHYSICIANS AT LOCAL SCHOOLS, PARTICIPATE IN MISSION TRIPS TO AREAS WHERE MEDICAL CARE IS OFTEN NOT AVAILABLE AND SERVE ON BOARDS AND COMMITTEES OF COMMUNITY HEALTH ORGANIZATIONS. NEW TECHNOLOGY & SERVICES A CONCURRENT ELECTRONIC HEALTH RECORD (EHR) INITIATIVE HAS BEEN IMPLEMENTED BY BOTH THE ACUTE AND AMBULATORY FACILITIES IN THE NOVANT HEALTH SYSTEM. CLINICIANS CAN SHARE PATIENTS' MEDICAL INFORMATION BETWEEN PHYSICIAN OFFICES, OUTPATIENT CENTERS AND HOSPITALS. THIS SHARING OF INFORMATION IMPROVES SAFETY AND COORDINATION OF CARE AND PROMOTES CONNECTIVITY AND COMMUNICATION BETWEEN HOSPITAL CAREGIVERS, SPECIALISTS AND PRIMARY CARE PROVIDERS. EMBARKING ON THE JOURNEY TO CREATE A SHARED EHR IS THE MOST SIGNIFICANT AND IMPORTANT INVESTMENT NOVANT HEALTH HAS EVER MADE FOR ITS PATIENTS AND TEAM MEMBERS. NOVANT HEALTH ALSO CONTINUED TO IMPLEMENT THE USE OF "MYCHART," A FREE ONLINE TOOL OFFERED THROUGH THE EHR THAT ALLOWS PATIENTS TO ACCESS THEIR HEALTH INFORMATION, COMMUNICATE WITH THE PHYSICIANS VIA EMAIL, SCHEDULE APPOINTMENTS AND REFILL PRESCRIPTIONS. BY THE END OF 2017, NEARLY 800,000 PATIENTS WERE ENROLLED IN MYCHART. NOVANT HEALTH INTRODUCED ITS MYCHART SPANISH FEATURE IN 2017. SPANISH-SPEAKING PATIENTS ARE NOW ABLE TO VIEW THEIR MYCHART ACCOUNT IN SPANISH AS WELL AS SEND AND RECEIVE MYCHART MESSAGES IN SPANISH. PATIENTS CONTINUE TO ENJOY USING MYCHART TO REVIEW PERSONALIZED HEALTH INFORMATION, EMAIL CARE TEAMS, REQUEST PRESCRIPTION RENEWALS, MANAGE APPOINTMENTS ONLINE, VIEW LABORATORY RESULTS AND ACCESS FAMILY RECORDS. IN 2017, NOVANT HEALTH MEDICAL GROUP ALSO CONTINUED ITS USE OF E-VISITS AND VIDEO VISITS, WHICH PROVIDED PATIENTS WITH OTHER OPTIONS FOR CARE AT AN AFFORDABLE PRICE. AS A RESULT, MORE THAN 23,000 E-VISITS WERE CONDUCTED BY THE END OF 2017. FORM 990, PART III, LINE 1: MISSION, VISION, AND VALUES MISSION: NOVANT HEALTH EXISTS TO IMPROVE THE HEALTH OF COMMUNITIES, ONE PERSON AT A TIME. VISION: WE, THE NOVANT HEALTH TEAM, WILL DELIVER THE MOST REMARKABLE PATIENT EXPERIENCE, IN EVERY DIMENSION, EVERY TIME. VALUES: - COMPASSION: WE TREAT OUR CUSTOMERS AND THEIR FAMILIES, STAFF AND OTHER HEALTHCARE PROVIDERS AS FAMILY MEMBERS BY SHOWING THEM KINDNESS, PATIENCE, EMPATHY AND RESPECT. - DIVERSITY AND INCLUSION: WE RECOGNIZE THAT EVERY PERSON IS DIFFERENT, EACH SHAPED BY UNIQUE LIFE EXPERIENCES. THIS ENABLES US TO BETTER UNDERSTAND ONE ANOTHER AND OUR CUSTOMERS. BY ENGAGING THE STRENGTHS AND TALENTS OF EACH TEAM MEMBER, WE ENSURE A STRONG ORGANIZATION CAPABLE OF PROVIDING REMARKABLE HEALTHCARE TO OUR PATIENTS, FAMILIES AND COMMUNITIES. - PERSONAL EXCELLENCE: WE STRIVE TO GROW PERSONALLY AND PROFESSIONALLY, AND WE APPROACH EACH SERVICE OPPORTUNITY WITH A POSITIVE, FLEXIBLE ATTITUDE. HONESTY AND PERSONAL INTEGRITY GUIDE ALL THAT WE DO. - TEAMWORK: THE NEEDS AND EXPECTATIONS OF ANY ONE CUSTOMER ARE GREATER THAN THAT WHICH ONE PERSON'S SERVICE EFFORTS CAN SATISFY. WE SUPPORT EACH OTHER SO THAT TOGETHER AS A TEAM, WE CAN BE SUCCESSFUL IN THE EYE OF THE CUSTOMER AS A QUALITY SERVICE PROVIDER. - COURAGE: WE ACT BOLDLY IN MAKING THE CHANGES NECESSARY TO ACHIEVE OUR MISSION, VISION AND PROMISE OF DELIVERING REMARKABLE HEALTHCARE. OUR PEOPLE: WE ARE AN INCLUSIVE TEAM OF PURPOSE-DRIVEN PEOPLE INSPIRED AND UNITED BY OUR PASSION TO CARE FOR EACH OTHER, OUR PATIENTS AND OUR COMMUNITIES. OUR PROMISE TO PATIENTS: WE ARE MAKING YOUR HEALTHCARE EXPERIENCE REMARKABLE. WE WILL BRING YOU WORLD-CLASS CLINICIANS, CARE AND TECHNOLOGY - WHEN AND WHERE YOU NEED THEM. WE ARE REINVENTING THE HEALTHCARE EXPERIENCE TO BE SIMPLER, MORE CONVENIENT AND MORE AFFORDABLE, SO THAT YOU CAN FOCUS ON GETTING BETTER AND STAYING HEALTHY. FORM 990, PART I, LINE 6: THE NUMBER OF VOLUNTEERS REPORTED INCLUDES THOSE VOLUNTEERS SERVING AS BOARD MEMBERS. FORM 990, PART I, LINE 1 AWARDS, RECOGNITIONS & CERTIFICATIONS/RE-CERTIFICATIONS NOVANT HEALTH MEDICAL GROUP PHYSICIAN CLINICS ARE ALSO LEADING NEW DEVELOPMENTS IN HOW HEALTH SERVICES WILL BE DELIVERED IN THE FUTURE. THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE RECOGNIZED 133 MEDICAL GROUP CLINICS WITH LEVEL 3 PATIENT-CENTERED MEDICAL HOME (PCMH) STATUS. IN THIS MODEL OF CARE, A PHYSICIAN-LED TEAM OF NURSES, APCS, PHARMACISTS, SOCIAL WORKERS AND MEDICAL ASSISTANTS (CMAS) COLLABORATE TO ENSURE THAT EVERY PATIENT RECEIVES APPROPRIATE PREVENTIVE AND MEDICAL CARE, EDUCATION AND SUPPORT. EARNING PCMH RECOGNITION SUPPORTS MANY MEDICAL GROUP INITIATIVES INCLUDING: -DIABETES AND HEART/STROKE RECOGNITION PROGRAMS -IMPROVING SAME-DAY ACCESS -PERFORMANCE MEASUREMENT AND QUALITY IMPROVEMENT -TEAM-BASED CARE AND POPULATION HEALTH ADDITIONALLY, 47 NOVANT HEALTH SPECIALTY CLINICS ARE RECOGNIZED BY NCQA AS PATIENT-CENTERED SPECIALTY PRACTICES (SAME PROGRAM EMPHASIS). IN 2017, NOVANT HEALTH MEDICAL GROUP WAS FEATURED BY THE AMERICAN MEDICAL GROUP ASSOCIATION (AMGA) FOR ITS FORWARD-THINKING APPROACH TO DISEASE PREVENTION. THE AMGA'S GROUP PRACTICE JOURNAL SPOTLIGHTED NOVANT HEALTH AS AN EXAMPLE OF A HEALTH SYSTEM THAT HAS DEMONSTRATED SUCCESS IN IMPROVING ADULT IMMUNIZATION RATES WHILE PROVIDING A BLUEPRINT FOR OTHER HEALTH SYSTEMS TO BETTER LEVERAGE THE ELECTRONIC HEALTH RECORD TO MAXIMIZE RESULTS. IN ADDITION, OUR QUALITY OPERATIONS GROUP WAS RECOGNIZED FOR SUCCESSFULLY CASCADING BEST PRACTICES THROUGHOUT NHMG VIA MEDICAL GROUP NEWS AND TAKE ACTION, WHILE ALSO ISSUING SHARED REPORTS OF CLINIC-SPECIFIC IMMUNIZATION RATES BY SPECIALTY TO ALLOW FOR EASY COMPARISONS BETWEEN CLINICS. THE GROUP PRACTICE JOURNAL REACHES APPROXIMATELY 80,000 READERS ACROSS THE COUNTRY. ACCREDITATION ALL NOVANT HEALTH MEDICAL GROUP CLINICS HAVE BEEN FULLY ACCREDITED BY THE JOINT COMMISSION, AN INDEPENDENT ORGANIZATION THAT EVALUATES A HEALTHCARE ORGANIZATION'S PERFORMANCE IN AREAS THAT MOST AFFECT PATIENT HEALTH AND SAFETY. IN 2017, 45 NOVANT HEALTH MEDICAL GROUP CLINIC LABS RECEIVED CLINICAL LABORATORY IMPROVEMENT AMENDMENTS CERTIFICATION. THE JOINT COMMISSION ACCREDITED OR REACCREDITED 69 NOVANT HEALTH MEDICAL GROUP CLINICS THROUGHOUT NORTH CAROLINA. IN ADDITION, INDIVIDUAL LOCATIONS EARNED REACCREDITATION BY VARIOUS ENTITIES, INCLUDING THE FOLLOWING: - NOVANT HEALTH VASCULAR DIAGNOSTICS WITH LOCATIONS IN WINSTON-SALEM AND KERNERSVILLE WERE GRANTED AN ADDITIONAL THREE-YEAR ACCREDITATION BY THE INTERSOCIETAL ACCREDITATION COMMISSION IN VASCULAR TESTING IN THE FOLLOWING AREAS: EXTRACRANIAL CEREBROVASCULAR TESTING, VISCERAL VASCULAR TESTING, PERIPHERAL VENOUS TESTING AND PERIPHERAL ARTERIAL TESTING. FIRST ACCREDITED IN 2005, THIS REACCREDITATION DEMONSTRATES THE CLINIC'S ONGOING COMMITMENT TO PROVIDING QUALITY CARE IN VASCULAR TESTING. THE CLINIC USES THE MOST ADVANCED NONINVASIVE DIAGNOSTIC TOOLS TO ANALYZE THE VASCULAR SYSTEM, LEADING TO EARLY DETECTION OF LIFE-THREATENING DISORDERS. - THE INTERSOCIETAL ACCREDITATION COMMISSION (IAC) ALSO RECOGNIZED THE FOLLOWING NOVANT HEALTH CLINICS AS ACCREDITED FACILITIES: - NOVANT HEALTH NEUROLOGY - HICKORY (MRI) - NOVANT HEALTH PINEVILLE PRIMARY CARE (ECHOCARDIOGRAPHY) - NOVANT HEALTH FIRST CHARLOTTE PHYSICIANS - MATTHEWS (ECHOCARDIOGRAPHY) - NOVANT HEALTH CARDIOLOGY - CLEMMONS (ECHOCARDIOGRAPHY) - NOVANT HEALTH CARDIOLOGY - EDEN (ECHOCARDIOGRAPHY) - NOVANT HEALTH CARDIOLOGY - KERNERSVILLE (ECHOCARDIOGRAPHY) - NOVANT HEALTH LAKESIDE FAMILY PHYSICIANS - HUNTERSVILLE (ECHOCARDIOGRAPHY) - NOVANT HEALTH CARDIOLOGY - WINSTON-SALEM HEALTH CARE (ECHOCARDIOGRAPHY) - NOVANT HEALTH FORSYTH HEART & WELLNESS - HEART FAILURE CLINIC (ECHOCARDIOGRAPHY) - NOVANT HEALTH PEDIATRIC CARDIOLOGY (PEDIATRIC ECHOCARDIOGRAPHY) - NOVANT HEALTH CARDIOLOGY - THOMASVILLE (ECHOCARDIOGRAPHY, NUCLEAR/PET) - NOVANT HEALTH CARDIOLOGY - GALAX (ECHOCARDIOGRAPHY, NUCLEAR/PET) - NOVANT HEALTH CARDIOLOGY - WINSTON-SALEM (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH CARDIOLOGY - MOUNT AIRY (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH HEART AND VASCULAR INSTITUTE - MONROE (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH HEART AND VASCULAR INSTITUTE - MATTHEWS (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH HEART AND VASCULAR INSTITUTE - CHARLOTTE (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH HEART AND VASCULAR INSTITUTE - SALISBURY (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH HEART AND VASCULAR INSTITUTE - HUNTERSVILLE (ECHOCARDIOGRAPHY, NUCLEAR/PET, VASCULAR TESTING) - NOVANT HEALTH WOUND CARE & HYPERBARIC MEDICINE IN WINSTON-SALEM RECEIVED ACCREDITATION FROM THE UNDERSEA & HYPERBARIC MEDICAL SOCIETY (UHMS). EARNING THIS ACCREDITATION REQUIRES A RIGOROUS AND ONGOING EVALUATION OF THE CLINIC'S OPERATIONS TO ENSURE THAT THE HIGHEST STANDARDS OF CARE AND SAFETY ARE MAINTAINED. HYPERBARIC OXYGEN THERAPY INVOLVES THE USE OF 100 PERCENT OXYGEN ADMINISTERED IN A PRESSURIZED CHAMBER AT LEVELS HIGHER THAN ATMOSPHERIC PRESSURE. THE PATIENTS RECEIVE ABOUT 10 TIMES AS MUCH OXYGEN IN EACH BREATH AS IS NORMALLY PRESENT IN AIR. THIS HIGHER CONCENTRATION OF OXYGEN IS DISSOLVED DIRECTLY IN THE BLOOD AND PROMOTES WOUND HEALING IN TISSUES THAT HAVE POOR CIRCULATION, SUCH AS DIABETIC FOOT WOUNDS AND IN TISSUES THAT HAVE BEEN INJURED DURING RADIATION TREATMENT FOR CANCER. AT THE TIME, WOUND CARE & HYPERBARIC MEDICINE WAS THE ONLY UHMS-ACCREDITED FACILITY IN THE TRIAD AREA AND ONE OF FIVE IN NORTH CAROLINA. - THE NOVANT HEALTH ST. JUDE AFFILIATE CLINIC BECAME THE FIRST FEDERALLY FUNDED PEDIATRIC HEMOPHILIA TREATMENT CENTER (HTC) IN CHARLOTTE IN APRIL. ALL CHILDREN WITH BLEEDING DISORDERS NOW HAVE A SPECIALTY MEDICAL HOME FOR TREATMENT, EDUCATION AND SUPPORTIVE SERVICES IN CHARLOTTE. THE ST. JUDE AFFILIATE CLINIC HTC PROVIDES ACCESS TO SPECIALTY TRAINED PHYSICIANS, NURSES, PHYSICAL THERAPISTS AND SOCIAL WORKERS. HEMOPHILIA TREATMENT CENTERS PROVIDE TREATMENT THAT ADHERES TO NATIONAL STANDARDS WHILE OFFERING INNOVATIVE THERAPIES AND A NATIONAL NETWORK OF CONSULTANTS FOR THIS UNIQUE PATIENT POPULATION. THE CLINIC ALLOWS PATIENTS TO PARTICIPATE IN A NATIONAL HEMOPHILIA REGISTRY AND OTHER RESEARCH OPPORTUNITIES CURRENTLY NOT AVAILABLE IN CHARLOTTE. - NOVANT HEALTH SLEEP CENTER WAS RECOGNIZED BY THE ACCREDITATION COMMISSION FOR HEALTH CARE (ACHC). - NOVANT HEALTH CAROLINA UROLOGICAL ASSOCIATES - KIMEL PARK AND NOVANT HEALTH SALISBURY UROLOGY RECEIVED ACCREDITATION FROM THE AMERICAN COLLEGE OF RADIOLOGY FOR COMPUTED TOMOGRAPHY (CT). - NOVANT HEALTH ONCOLOGY SPECIALISTS - WINSTON-SALEM RECEIVED URAC SPECIALTY PHARMACY ACCREDITATION. - NOVANT HEALTH BARIATRIC SOLUTIONS - ROWAN IS ACCREDITED BY THE AMERICAN SOCIETY FOR METABOLIC & BARIATRIC SURGERY. COMMUNITY BENEFIT REPORT HTTPS://WWW.NOVANTHEALTH.ORG/HOME/ABOUT-US/COMMUNITY-INVOLVEMENT/ COMMUNITY-BENEFIT.ASPX THE COMMUNITY BENEFIT REPORT PREPARED BY NOVANT HEALTH IS A SYSTEM-WIDE REPORT THAT INCLUDES QUALITATIVE AND QUANTITATIVE INFORMATION. PLEASE NOTE THAT THE NUMERIC DATA IN THIS REPORT IS NOT BASED UPON THE FORM 990, SCHEDULE H CRITERIA, BUT RATHER IT HAS BEEN PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HOSPITAL ASSOCIATION REPORTING GUIDELINES. IT SHOULD NOT BE RELIED UPON AS THE ORGANIZATION'S FORM 990, SCHEDULE H COMMUNITY BENEFIT REPORT, ITS COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY. IN THIS REPORT, THE NOVANT HEALTH SYSTEM'S COMMUNITY BENEFIT WAS APPROXIMATELY $794,000,000, INCLUDING $138,000,000 IN FINANCIAL ASSISTANCE FOR 2017. FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 6: CLASSES OF MEMBERS OR STOCKHOLDERS THE CORPORATION IS A NONPROFIT CORPORATION WITH MEMBERS (OR A MEMBER). FORM 990, PART VI, SECTION A, LINE 7A FORM 990, PART VI, SECTION A, LINE 7A: ELECTION OF MEMBERS AND THEIR RIGHTS THE BOARD OF NOVANT HEALTH, INC. APPOINTS THE NOVANT MEDICAL GROUP TRUSTEES. FORM 990, PART VI, SECTION A, LINE 7B FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS SUBJECT TO APPROVAL OF MEMBERS THE BOARD OF NOVANT HEALTH, INC. APPROVES CHANGES TO THE BYLAWS. FORM 990, PART VI, SECTION B, LINE 11B FORM 990, PART VI, SECTION B, LINE 11: ORGANIZATION'S PROCESS TO REVIEW FORM 990 THE BOARD HAS DELEGATED REVIEW OF THE FORM 990 TO NOVANT HEALTH'S BOARD OF TRUSTEES' AUDIT AND COMPLIANCE COMMITTEE ("THE COMMITTEE"), WHICH OVERSEES TAX MATTERS FOR ENTITIES IN THE NOVANT HEALTH SYSTEM. THE COMMITTEE IS THE REVIEW BODY FOR ALL OF THE FORM 990S FILED FOR ORGANIZATIONS WITHIN THE NOVANT HEALTH SYSTEM. THE COMMITTEE MEETS BEFORE THE FORM 990S ARE FILED WITH THE IRS AND AFTER ALL BOARD MEMBERS HAVE BEEN PROVIDED A PAPER OR ELECTRONIC COPY OF THE FORM 990 AND A SUMMARY OF ITS CONTENTS. THE VICE PRESIDENT OF TAX AND LEGAL COUNSEL FOR NOVANT HEALTH ATTEND THE MEETING TO ANSWER ANY QUESTIONS AND ADDRESS ANY SIGNIFICANT DISCLOSURES WITHIN THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C FORM 990, PART VI, SECTION B, LINE 12C: MONITORING AND ENFORCEMENT OF COI THE ORGANIZATION'S TRUSTEE CONFLICT OF INTEREST POLICY APPLIES TO ALL TRUSTEES, PRINCIPAL OFFICERS OR MEMBERS OF A COMMITTEE WITH BOARD DELEGATED POWERS INCLUDING ANY APPLICABLE DISREGARDED ENTITIES. ALL TRUSTEES ARE SENT AN ANNUAL DISCLOSURE QUESTIONNAIRE. THE TRUSTEE ANNUAL DISCLOSURE QUESTIONNAIRES ARE REVIEWED BY THE COMPLIANCE DEPARTMENT. WITH RESPECT TO PARTICULAR TRANSACTIONS THAT COME BEFORE THE BOARD, THE CONFLICT OF INTEREST POLICY WOULD BE FOLLOWED. THE POTENTIAL CONFLICT OF INTEREST WOULD BE DISCLOSED BY THE BOARD MEMBER BEFORE A VOTE ON THE TRANSACTION AND THE REST OF THE BOARD WOULD DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. IF THE REST OF THE BOARD DETERMINED THAT A CONFLICT OF INTEREST EXISTED THEN THE BOARD MEMBER WITH THE CONFLICT OF INTEREST WOULD NOT PARTICIPATE IN THE DELIBERATIONS AND VOTE. FORM 990, PART VI, SECTION B, LINE 13: WRITTEN WHISTLEBLOWER POLICY THE FILING ORGANIZATION IS PART OF THE INTEGRATED HEALTHCARE SYSTEM OPERATED BY NOVANT HEALTH, INC. ("NOVANT HEALTH"), THE PARENT ORGANIZATION. NOVANT HEALTH'S BYLAWS AUTHORIZE IT TO ESTABLISH CERTAIN POLICIES FOR ALL OF ITS SUBSIDIARIES WITHIN THE SYSTEM. NOVANT HEALTH HAS ESTABLISHED A WHISTLEBLOWER POLICY AND ALL SUBSIDIARY ORGANIZATIONS FOLLOW ALL APPLICABLE NOVANT HEALTH CORPORATE POLICIES IN THEIR OPERATIONS. THE INDIVIDUAL SUBSIDIARY ORGANIZATION'S BOARD OF TRUSTEES DOES NOT SPECIFICALLY ADOPT OR APPROVE EACH OPERATING POLICY, AS THERE ARE HUNDREDS OF POLICIES THAT APPLY TO ALL SUBSIDIARY ORGANIZATIONS AND THEY CANNOT PRACTICABLY BE APPROVED BY ALL OF THE INDIVIDUAL BOARDS. FORM 990, PART VI, SECTION B, LINE 14: WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY THE FILING ORGANIZATION IS PART OF THE INTEGRATED HEALTHCARE SYSTEM OPERATED BY NOVANT HEALTH, INC. ("NOVANT HEALTH"), THE PARENT ORGANIZATION. NOVANT HEALTH'S BYLAWS AUTHORIZE IT TO ESTABLISH CERTAIN POLICIES FOR ALL OF ITS SUBSIDIARIES WITHIN THE SYSTEM. NOVANT HEALTH HAS ESTABLISHED A DOCUMENT RETENTION AND DESTRUCTION POLICY AND ALL SUBSIDIARY ORGANIZATIONS FOLLOW ALL APPLICABLE NOVANT HEALTH CORPORATE POLICIES IN THEIR OPERATIONS. THE INDIVIDUAL SUBSIDIARY ORGANIZATION'S BOARD OF TRUSTEES DOES NOT SPECIFICALLY ADOPT OR APPROVE EACH OPERATING POLICY, AS THERE ARE HUNDREDS OF POLICIES THAT APPLY TO ALL SUBSIDIARY ORGANIZATIONS AND THEY CANNOT PRACTICABLY BE APPROVED BY ALL OF THE INDIVIDUAL BOARDS. FORM 990, PART VI, SECTION B, LINE 15B FORM 990, PART VI, SECTION B, LINE 15A: COMPENSATION PROCESS FOR TOP OFFICIAL THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM COLLECTIVELY REFERRED TO AS "NOVANT HEALTH." NOVANT HEALTH, INC. IS THE PARENT ORGANIZATION AND INDEPENDENT AND DISINTERESTED MEMBERS OF THE NOVANT HEALTH, INC. BOARD OF TRUSTEES (WHO COMPRISE THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE BOARD) REVIEW, APPROVE, AND OVERSEE ALL ASPECTS OF COMPENSATION AND BENEFITS FOR CERTAIN EXECUTIVES ("EXECUTIVES") SERVING AS THE TOP MANAGEMENT OFFICIAL(S) FOR NOVANT HEALTH ENTITIES. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT AND USES THIRD PARTY COMPARABILITY DATA FOR FUNCTIONALLY SIMILAR POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS FOR EACH EXECUTIVE IS REASONABLE FOR THAT EXECUTIVE'S POSITION. THE COMMITTEE REVIEWS AND APPROVES EXECUTIVE COMPENSATION AND BENEFITS ANNUALLY, CONSISTENT WITH THE WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY OF NOVANT HEALTH, AND IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, THEREBY ASSURING THAT TOTAL COMPENSATION AND BENEFITS PROVIDED TO EACH EXECUTIVE IS REASONABLE. FORM 990, PART VI, SECTION B, LINE 15B: COMPENSATION PROCESS FOR OFFICERS THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM COLLECTIVELY REFERRED TO AS "NOVANT HEALTH." NOVANT HEALTH, INC. IS THE PARENT ORGANIZATION AND INDEPENDENT AND DISINTERESTED MEMBERS OF THE NOVANT HEALTH, INC. BOARD OF TRUSTEES (WHO COMPRISE THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE BOARD) REVIEW, APPROVE, AND OVERSEE ALL ASPECTS OF COMPENSATION AND BENEFITS FOR CERTAIN LEADERS AND EXECUTIVES ("EXECUTIVES") SERVING AS OFFICERS OR KEY EMPLOYEES FOR NOVANT HEALTH ENTITIES. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT AND USES THIRD PARTY COMPARABILITY DATA FOR FUNCTIONALLY SIMILAR POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS FOR EACH EXECUTIVE IS REASONABLE FOR THAT EXECUTIVE'S POSITION. THE COMMITTEE REVIEWS AND APPROVES EXECUTIVE COMPENSATION AND BENEFITS ANNUALLY, CONSISTENT WITH THE WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY OF NOVANT HEALTH, AND IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, THEREBY ASSURING THAT TOTAL COMPENSATION AND BENEFITS PROVIDED TO EACH EXECUTIVE IS REASONABLE. FORM 990, PART VI, SECTION C, LINE 19 FORM 990, PART VI, SECTION C, LINE 19: GOVERNING DOCUMENTS DISCLOSURE THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAINING ALL ORGANIZATIONS IN THE NOVANT HEALTH SYSTEM ARE POSTED TO THE NOVANT HEALTH WEBSITE. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION B: INDEPENDENT CONTRACTORS THE FILING ENTITY IS PART OF THE NOT-FOR-PROFIT INTEGRATED HEALTHCARE SYSTEM KNOWN AS NOVANT HEALTH. NOVANT HEALTH, INC., THE PARENT, A SUPPORTING ORGANIZATION, IS RESPONSIBLE FOR CERTAIN CORPORATE SUPPORT FUNCTIONS INCLUDING ACCOUNTS PAYABLE AND ISSUES FORMS 1099 FOR CERTAIN ENTITIES IN THE SYSTEM INCLUDING THE FILING ENTITY. INFORMATION REPORTED IN PART VII, SECTION B REPRESENTS THE EXPENSES PAID ON BEHALF OF THE FILING ENTITY TO INDEPENDENT CONTRACTORS OVER $100,000. FORM 990, PART VII, SECTION A, COLUMN B: RELATED ORGANIZATIONS THE ORGANIZATION EMPLOYS CERTAIN EXECUTIVES WHOSE ROLES ARE SUCH THAT THEY PROVIDE SERVICES TO NOT ONLY THE ORGANIZATION, BUT ALSO TO SOME OR ALL OF THE OTHER TAX-EXEMPT ORGANIZATIONS WITHIN THE HEALTHCARE SYSTEM. FOR EXAMPLE, MANY OF THESE EXECUTIVES' ROLES FOCUS ON PARTICULAR SERVICE LINES WHICH CROSS THE VARIOUS GEOGRAPHIC MARKETS OUR ORGANIZATIONS SERVE, THUS THE SERVICES PROVIDED BY THESE EXECUTIVES MAY BENEFIT AND BE RECEIVED BY MULTIPLE ORGANIZATIONS WITHIN THE SYSTEM. THE EXECUTIVES DO NOT ALLOCATE THEIR HOURS BETWEEN THE VARIOUS ORGANIZATIONS, BUT RATHER THEIR TIME SPENT ON SERVICES TO THE ORGANIZATION IS INCLUSIVE OF SERVICES TO ALL OF THE ORGANIZATIONS THEY SERVE WITHIN THE SYSTEM. FORM 990, PART IX, LINE 6: COMPENSATION OF DISQUALIFIED PERSONS THE AMOUNTS REPORTED HERE INCLUDE AMOUNTS ATTRIBUTABLE TO DISQUALIFIED PERSONS (DQP) AS DEFINED IN THE INSTRUCTIONS, BUT NOW ALSO INCLUDES AMOUNTS ATTRIBUTABLE TO INDIVIDUALS THAT MAY NOT DEFINITIVELY BE CONSIDERED DQPS UNDER THE 4958 RULES. WE HAVE OPTED TO TAKE A MORE EXPANSIVE APPROACH AS TO WHO MAY BE CONSIDERED A DQP AND REPORT THEM HERE AS WELL. FORM 990, PART XI, LINE 9: MALPRACTICE INSURANCE: -1,741,940. CONTRIBUTIONS: -24,900. AFFILIATE TRANSFER: -3,503. ROUNDING: -909. 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