2017-11-06T16:23:13-06:00 2016-12-31 990 2016-01-01 810231785 ST JAMES HEALTHCARE STJA 4067232500 400 SOUTH CLARK STREET BUTTE MT 59701 PAM PALAGI VP FINANCE & CFO 4067232500 2017-11-06 170.188.5.33 2017-11-06 12:26:16 MS P D592015B8FE208EA5042194ABEAF8E5B275B46FB D592015B8FE208EA5042194ABEAF8E5B275B46FB 2016 2018-03-14 21:41:22Z JAMES DOYLE 400 SOUTH CLARK STREET BUTTE MT 59701 107961432 0 0928 X WWW.STJAMESHEALTHCARE.ORG X 1976 MT WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE. 16 12 602 48 1595904 495337 1394931 476750 118127746 104702818 445756 784581 1468370 1512881 121436803 107477030 186948 232173 0 0 40164771 41949848 0 0 0 63164939 59353623 103516658 101535644 17920145 5941386 91464202 87505048 7906336 9050795 83557866 78454253 X WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE. 0 0 83536481 232173 105127213 ST. JAMES HEALTHCARE HAS PLAYED AN IMPORTANT ROLE IN THE HISTORY OF BUTTE. FOUNDED IN 1881 BY THE SISTERS OF CHARITY OF LEAVENWORTH, ST. JAMES HAS BEEN KNOWN FOR GENERATIONS FOR ITS MISSION OF COMPASSIONATE CARE AND SERVICE TO THE POOR. FOR MORE THAN 130 YEARS, ST. JAMES HAS PROVIDED CARE FOR THE SICK AND SERVED THE POOR AND THE VULNERABLE. ST. JAMES HEALTHCARE IS ONE OF MONTANA'S LARGEST COMPREHENSIVE HOSPITALS, SERVING THE HEALTH CARE NEEDS OF PEOPLE IN A SEVEN-COUNTY REGION.MISSIONWE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.VISIONINSPIRED BY OUR FAITH,WE WILL BE DISTINGUISHED AS THE TRUSTED PERSON-CENTERED PARTNER TO THOSE WHO ENGAGE WITH US IN THEIR PHYSICAL, MENTAL AND SPIRITUAL HEALTH DECISIONS.WE WILL SHARE ACCOUNTABILITY WITH OUR CLINICIANS, ASSOCIATES AND AFFILIATED STAKEHOLDERS TO DELIVER EXCEPTIONAL CARE THAT IS WELL-COORDINATED, ACCESSIBLE, AFFORDABLE, SAFE, AND RESULTS IN OPTIMAL OUTCOMES FOR INDIVIDUALS AND POPULATIONS.WE WILL GROW AS COMMUNITY-BASED HEALTH NETWORKS IN PARTNERSHIP WITH OTHERS WHO SHARE OUR VISION AND VALUES AND ALIGN WITH US TO BE AN ESSENTIAL PROVIDER TO THOSE WE SERVE.VALUES CARING SPIRIT - WE HONOR THE SACRED DIGNITY OF EACH PERSON. EXCELLENCE - WE SET AND SURPASS HIGH STANDARDS. GOOD HUMOR - WE CREATE JOYFUL AND WELCOMING ENVIRONMENTS. INTEGRITY - WE DO THE RIGHT THING WITH OPENNESS AND PRIDE. SAFETY - WE DELIVER CARE THAT SEEKS TO ELIMINATE ALL HARM FOR PATIENTS AND ASSOCIATES. STEWARDSHIP - WE ARE ACCOUNTABLE FOR THE RESOURCES ENTRUSTED TO US.ST. JAMES HEALTHCARE OFFERS A WIDE RANGE OF SERVICES ACROSS MANY DEPARTMENTS:CANCER TREATMENT, DIABETES EDUCATION, EMERGENCY/LEVEL III TRAUMA CENTER, HEART HEALTH, INTENSIVE CARE UNIT, IMAGING SERVICES, JOINT SURGERY & REPLACEMENT CENTER, LAB SERVICES, OCCUPATIONAL THERAPY, PAIN CENTER, PHYSICAL THERAPY, LABOR DELIVERY NURSERY, WOUND TREATMENT, AND SPORTS MEDICINE.ST. JAMES HEALTHCARE STATISTICAL DATA FOR 2016 INCLUDED THE FOLLOWING RESULTS:TOTAL ADMISSIONS - 3,235TOTAL OUTPATIENT, CLINIC, AND HOME HEALTH VISITS - 96,824TOTAL EMERGENCY DEPARTMENT VISITS - 17,495BIRTHS - 283TOTAL SURGERIES - 2,050TOTAL LABORATORY TESTS - 198,742ST. JAMES HEALTHCARE IS RELATED TO ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC, A SINGLE MEMBER LIMITED LIABILITY COMPANY OWNED BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC IS A GROUP OF PHYSICIAN CLINICS THAT PROVIDE PROFESSIONAL SERVICES TO THE ST. JAMES HEALTHCARE COMMUNITY AND SUPPORTS THE MISSION OF ST. JAMES HEALTHCARE.ALTHOUGH ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC IS NOT OWNED DIRECTLY BY ST. JAMES HEALTHCARE, ST. JAMES HEALTHCARE IS REQUIRED TO FUND ALL OPERATING LOSSES OF ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC THROUGH EQUITY TRANSFERS TO SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. IN 2016, LOSSES RELATED TO THE PHYSICIAN PRACTICES WERE $5,146,236. 83536481 1 1 0 1 0 0 0 0 0 0 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 1 94 0 1 602 1 1 1 0 0 0 0 0 0 0 0 0 X 16 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 1 1 X KYLE ENGMAN 3038135543 500 ELDORADO BLVD SUITE 4200 BROOMFIELD CO 80021 FRANCENE ARCHIBALD DIRECTOR 1.00 0.00 X 0 0 0 MARILYN CAMERON DIRECTOR 1.00 0.00 X 0 0 0 TAMMY COX SECRETARY/TREASURER 2.00 0.00 X X 0 0 0 SHAWN DUFFORD MD DIRECTOR 9/1-12/31 1.00 50.00 X 0 557563 109394 DANETTE GLEASON DIRECTOR 1.00 0.00 X 0 0 0 SISTER MARGARET HOGAN DIRECTOR 1.00 0.00 X 0 0 0 BRETT KAMRUD DIRECTOR 1.00 0.00 X 0 0 0 MARKO LUCICH DIRECTOR 1.00 0.00 X 0 0 0 BERNARD MCCARTHY CHAIR 2.00 0.00 X X 0 0 0 THERESE MCCLAFFERTY DIRECTOR 1.00 0.00 X 0 0 0 BILL MCGLADDERY DIRECTOR 1.00 0.00 X 0 0 0 THOMAS PETERSON MD DIRECTOR 1/1-8/31 1.00 50.00 X 0 513397 35018 SISTER MARY JO QUINN DIRECTOR 1.00 0.00 X 0 0 0 RITA SPEAR VICE CHAIR 2.00 0.00 X X 0 0 0 TODD TREGIDGA DIRECTOR 1.00 0.00 X 0 0 0 CHARLES WRIGHT PRESIDENT & CEO 50.00 0.00 X X 0 389349 201307 MARK ZORA DIRECTOR 1.00 0.00 X 0 0 0 DAVID BRAIN VP & CFO 6/15-11/1 50.00 0.00 X 0 72218 11336 PAM PALAGI VP & CFO 11/1-12/31 50.00 0.00 X 0 55287 930 TRAVIS SCHEVING VP & CFO 1/1-6/15 50.00 0.00 X 0 178367 46009 JEREMY BLANCHARD CHIEF PHYSICIAN EXECUTIVE 50.00 0.00 X 0 211935 50591 KEVIN DENNEHY VP STRATEGY-BUS DEVELOP-SJB 50.00 0.00 X 0 195260 52690 DENNIS SALISBURY MD PSO VP CMO HEALTH NET 50.00 0.00 X 0 303032 69296 MARC NASH MD PHYSICIAN RADIATION ONCOLOGIST 50.00 0.00 X 535616 0 23643 DANAE HANSEN MD ANESTHESIOLOGIST 50.00 0.00 X 413466 0 41515 MARWAN MASSOUH MD PHYSICIAN 50.00 0.00 X 409158 0 23784 DAVID SILK MD PHYSICIAN ED 50.00 0.00 X 281799 0 40374 ALAN MAYER MD PHYSICIAN ED 50.00 0.00 X 281060 0 35877 JAMES DOYLE FORMER OFFICER 0.00 50.00 X 0 249231 59738 MOHAN NANDALUR MD FORMER HIGHEST PAID EMPLOYEE 0.00 50.00 X 0 478065 27345 THOMAS AUFIERO MD FORMER HIGHEST PAID EMPLOYEE 0.00 50.00 X 0 456480 30314 ALLEN NICHOLS MD FORMER HIGHEST PAID EMPLOYEE 0.00 50.00 X 0 381358 15404 1921099 4041542 874565 45 1 1 0 INPATIENT SERVICES PC 1515 WYNKOOP STREET STE 360 DENVER CO 80202 MEDICAL SERVICES 2010235 MONTANA INTERVENTIONAL & DIAG 2969 AIRPORT RD STE 1C HELENA MT 59601 RADIOLOGY 1089264 MONTANA ORTHOPEDICS 435 SOUTH CRYSTAL STE 400 BUTTE MT 59701 MEDICAL SERVICES 684995 WEATHERBY LOCUMS PO BOX 972633 DALLAS TX 75397 CONTRACT LABOR 555079 MEDEFIS INC 10826 OLD MILL RD OMAHA NE 68154 TECHNOLOGY SERVICES 480949 17 417450 2000 57300 476750 PATIENT CARE 622110 104702818 103810721 892097 104702818 842322 842322 796340 411661 384679 384679 384679 15000 72741 -57741 -57741 -57741 SUMMIT SURGERY CTR 621400 633816 633816 CAFETERIA REVENUE 722310 494386 424395 69991 1128202 107477030 104235116 1595904 1169260 232173 232173 1157350 1094173 63177 32028390 30280045 1748345 2256102 2074777 181325 4230459 4122765 107694 2277547 2205340 72207 10622 10622 242 242 8295743 7573578 722165 660664 19815 640849 190045 184987 5058 6429983 6429983 1350126 1340530 9596 244314 192276 52038 59979 42473 17506 301160 301160 4272793 4272793 1448444 1448444 MEDICAL SUPPLIES 19379127 19379127 SERVICE CONTRACTS 4654938 4353547 301391 BILLING & COLLECTION - 2797926 2797926 BAD DEBT EXPENSE 2203915 2203915 7053602 2214563 4839039 101535644 83536481 17999163 0 351 399 7378 4294 18440595 17657516 20682 40865 13889 3419315 2952219 1378587 1299578 121624117 66422872 52746387 55201245 2481367 2494658 12928675 7881250 91464202 87505048 7906336 8983007 67788 7906336 9050795 X 83479752 78382362 78114 71891 83557866 78454253 91464202 87505048 X 5941386 -11044999 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 242 242 0 PART II-B, LINE 1: LOBBYING EXPENSES WERE DERIVED AS A PERCENTAGE OF DUES PAID TO THE MONTANA HOSPITAL ASSOCIATION. 4146731 4146731 78669560 43475114 35194446 1976494 1931914 44580 36045859 21015844 15030015 785473 785473 55201245 INTERCOMPANY RECEIVABLE 5961605 SETTLEMENT RECEIVABLES 1919645 7881250 1 1 X 1 X 1 X 1 1 0 1 1 1170823 0 1170823 0.01180 18056760 11397367 6659393 0.06700 222958 453883 0 0.00000 19450541 11851250 7830216 0.07880 1503046 236303 1266743 0.01280 296645 0 296645 0.00300 3376744 1454644 1922100 0.01940 148947 0 148947 0.00150 5325382 1690947 3634435 0.03670 24775923 13542197 11464651 0.11550 143520 0 143520 0.00140 207128 0 207128 0.00210 350648 350648 0.00350 1 2203915 0 32414519 41498033 -9083514 X 1 1 1 SUMMIT SURGERY CENTER OUTPATIENT SURGERY CENTER 0.50000 0.50000 2 MONTANA PHYSICIAN HOSPITAL ORGANIZATION PHYSICIAN HOSPITAL ORGANIZATION 0.50000 0.50000 1 1 ST JAMES HEALTHCARE 400 SOUTH CLARK ST BUTTE MT 59701 WWW.SCLHEALTH.ORG/LOCATIONS/ 13287 X X X SKILLED NURSING & PHYSICIAN CLINIC ST JAMES HEALTHCARE 1 0 0 1 X X X X X X X X X 14 1 0 1 1 X SEE PART V, SECTION C X 1 15 1 SEE PART V, SECTION C 0 1 X 200.000000000000 400.000000000000 X X X 1 1 X X X X 1 X SEE PART V, SECTION C X SEE PART V, SECTION C X SEE PART V, SECTION C X X X X X X 1 X 0 X X X X 1 X 0 0 ST. JAMES HEALTHCARE PART V, SECTION B, LINE 5: THE 2014 COMMUNITY HEALTH NEEDS ASSESSMENT FOR ST. JAMES HEALTHCARE REPRESENTS A SYSTEMATIC APPROACH TO IDENTIFY TOP HEALTH PRIORITIES FOR 2015-2017 TO GUIDE EFFORTS FOR IMPROVEMENT IN COMMUNITY HEALTH AND WELLNESS IN BUTTE-SILVER BOW COUNTY.THIS ASSESSMENT INCORPORATES DATA FROM BOTH QUANTITATIVE AND QUALITATIVE SOURCES. QUANTITATIVE DATA INPUT INCLUDES PRIMARY RESEARCH (THE PRC COMMUNITY HEALTH SURVEY), WHICH ALLOWS FOR COMPARISON TO BENCHMARK DATA AT THE STATE AND NATIONAL LEVELS. QUALITATIVE DATA INPUT INCLUDES PRIMARY RESEARCH GATHERED THROUGH AN ONLINE KEY INFORMANT SURVEY PERFORMED BY PROFESSIONAL RESEARCH CONSULTANTS, INC. BASED ON THE DATA COLLECTED, 11 "AREAS OF OPPORTUNITY" WERE IDENTIFIED AS REPRESENTING THE SIGNIFICANT HEALTH NEEDS OF THE COMMUNITY, BASED ON THE INFORMATION GATHERED THROUGH THIS COMMUNITY HEALTH NEEDS ASSESSMENT AND THE GUIDELINES SET FORTH IN HEALTHY PEOPLE 2020. ON OCTOBER 23, 2014, APPROXIMATELY 40 REPRESENTATIVES OF VARIOUS COMMUNITY ORGANIZATIONS MET TO EVALUATE, DISCUSS AND PRIORITIZE HEALTH ISSUES FOR THE COMMUNITY; BASED ON FINDINGS OF THE 2014 PRC COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA). FOLLOWING THE DATA REVIEW, PRC ANSWERED QUESTIONS AND FACILITATED A GROUP DIALOGUE, ALLOWING PARTICIPANTS TO ADVOCATE FOR ANY OF THE HEALTH ISSUES DISCUSSED. REPRESENTATIVES OF ST. JAMES HEALTHCARE, BUTTE-SILVER BOW HEALTH DEPARTMENT AND SOUTHWEST MONTANA COMMUNITY HEALTH CENTER ALSO PROVIDED GUIDANCE TO THE GROUP, DESCRIBING EXISTING ACTIVITIES, INITIATIVES, RESOURCES, ETC., RELATING TO THE AREAS OF OPPORTUNITY. FINALLY, PARTICIPANTS WERE PROVIDED AN OVERVIEW OF THE PRIORITIZATION EXERCISE THAT FOLLOWED. IN ORDER TO ASSIGN PRIORITY TO THE IDENTIFIED HEALTH NEEDS (I.E., AREAS OF OPPORTUNITY), A WIRELESS AUDIENCE RESPONSE SYSTEM WAS USED IN WHICH EACH PARTICIPANT WAS ABLE TO REGISTER HIS/HER RATINGS USING A SMALL REMOTE KEYPAD. THE PARTICIPANTS WERE ASKED TO EVALUATE EACH HEALTH ISSUE ALONG TWO CRITERIA: SCOPE AND SEVERITY AND ABILITY TO IMPACT.BASED ON THE OUTCOME OF THAT RANKING PROCESS, THREE AREAS WERE IDENTIFIED FOR ADDITIONAL WORK: MENTAL HEALTH; NUTRITION, PHYSICIAL ACTIVITIES & WEIGHT AND TOBACCO USE. ST. JAMES HEALTHCARE PART V, SECTION B, LINE 6B: ORGANIZATIONS THAT PARTICIPATED WITH ST. JAMES HEALTHCARE FOR COMPLETION OF THE COMMUNITY HEALTH NEEDS ASSESSMENT INCLUDED: - 2ND JUDICIAL DISTRICT YOUTH COURT PROBATION - AARON M. SHEARMAN DDS - BUTTE DENTISTRY - ADULT PROTECTIVE SERVICES - AWARE INC./AWARE EARLY HEAD START - BIG BROTHERS BIG SISTERS - BSW, INC. - BUTTE BROADCASTING - BUTTE CENTRAL CATHOLIC HIGH SCHOOL - BUTTE COMMUNITY HEALTH CENTER - BUTTE RESCUE MISSION - BUTTE 4-C'S - BUTTE-SILVER BOW COUNCIL OF COMMISSIONERS - BUTTE-SILVER BOW HEALTH DEPARTMENT - DENTIST - EASTER SEALS-GOODWILL - FRONTIER HOME HEALTH & HOSPICE - HOMEWARD BOUND - LOWNEY DENTAL - MERCURY STREET MEDICAL - MONTANA INDEPENDENT LIVING PROJECT - MONTANA ORTHOPEDICS - MONTANA TECH - MT TECH - RSVP - SOUTHWEST MONTANA AGING & DISABILITY SERVICES - ST. JAMES HEALTHCARE - ST. JAMES MEDICAL GROUP - TOWN PUMP INC. - UNITED WAY OF BUTTE AND ANACONDA - YOUTH DYNAMICSST. JAMES HEALTHCARE:PART V, SECTION B, LINE 7A: WWW.SCLHEALTH.ORG/LOCATIONS/ST-JAMES-HEALTHCARE/ABOUT/COMMUNITY-BENEFIT/ST. JAMES HEALTHCARE:PART V, SECTION B, LINE 10A: WWW.SCLHEALTH.ORG/LOCATIONS/ST-JAMES-HEALTHCARE/ABOUT/COMMUNITY-BENEFIT/ ST. JAMES HEALTHCARE PART V, SECTION B, LINE 11: ACTION TEAMS WERE FORMED FOR EACH OF THE THREE KEY AREAS MADE UP OF KEY COMMUNITY HEALTHCARE LEADERS, PUBLIC HEALTH OFFICIALS, AND INTERNAL SENIOR HOSPITAL LEADERS FOR THE THREE TOP HEALTH NEEDS IDENTIFIED: MENTAL HEALTH; NUTRITION, PHYSICAL ACTIVITY & WEIGHT; AND TOBACCO USE.GIVEN THE LIMITED FINANCIAL RESOURCES, AS WELL AS LIMITED STAFF, THE DECISION WAS MADE TO FOCUS ON THESE THREE TOP HEALTH NEEDS. THE ABILITY TO MAKE A SIGNIFICANT IMPACT WILL BE GREATLY IMPROVED BY NARROWING THE FOCUS TO THREE TOP HEALTH NEEDS. THE ACTION TEAMS MET THROUGHOUT 2015 AND 2016 AND CONTINUE TO MEET IN 2017.MENTAL HEALTH: WORKING WITH THE MONTANA SOARS PROJECT, A NEW DATA BASE, CONNECT, IS BEING IMPLEMENTED. THE PURPOSE IS TO ENSURE THAT PEOPLE WHO HAVE A MENTAL ILLNESS OR PROPENSITY TOWARD MENTAL ILLNESS ARE APPROPRIATELY REFERRED FOR ADDITIONAL HELP AND ARE TRACKED TO ENSURE THEY DO NOT "FALL BETWEEN THE CRACKS." ST. JAMES HEALTHCARE, MONTANA SOARS (BUTTE SCHOOL DISTRICT NO. 1) AND THE BUTTE HEALTH DEPARTMENT HAVE ALL SIGNED A MEMORANDUM OF UNDERSTANDING TO ALLOW THIS WORK TO MOVE FORWARD. THE PROJECT INITIALLY FOCUSES ON CHILDREN BUT WILL BE EXPANDED TO COVER ADULTS BY 2019. TEAM IS ALSO WORKING ON EXPANDING THE MENTAL HEALTH QUESTIONS ASKED BY PRIMARY CARE PROVIDERS.THE ACTION TEAM WORKING ON NUTRITION, PHYSICAL HEALTH AND WEIGHT MET SEVERAL TIMES AND DETERMINED THAT ONE OF THE PROBLEMS IS THAT MANY OF OUR CHILDREN DO NOT HAVE THE FINANCIAL MEANS TO BE INVOLVED IN PHYSICAL ACTIVITIES. WE ALSO DISCOVERED THAT MANY OF THE FAMILIES ARE NOT AWARE OF ALL THE PROGRAMS AVAILABLE IN THE COMMUNITY. A NEW GROUP, THE KIDS COALITION WAS FORMED. OUR FIRST ACTION WAS TO COMPILE A LIST OF ALL ACTIVITIES AVAILABLE TO CHILDREN IN THE COMMUNITY ALONG WITH THE APPROPRIATE CONTACT PERSON(S). THE LIST WAS PRINTED IN THE 2016 PARKS AND RECREATION GUIDE FOR BUTTE-SILVER BOW, A PUBLICATION THAT IS INSERTED INTO THE LOCAL NEWPAPER. ST. JAMES ADDITIONALLY PAID $6,000 FOR 4,500 ADDITIONAL COPIES THAT WERE HAND DELIVERED TO ALL THE SCHOOLS AND SENT HOME WITH STUDENTS. CURRENTLY, THE KIDS' COALITION HAS HIRED AN AMERICORP VOLUNTEER TO UPDATE THE LIST FOR 2017 AND BEGIN PLANNING FOR A FITNESS FAIR FOR CHILDREN AND FAMILIES. THE GROUP IS SEEKING DONATIONS OF SPORTING EQUIPMENT AND DOLLARS TO PROVIDE CHILDREN WITH EQUIPMENT THEY NEED TO PARTICIPATE IN ACTIVITIES AND TO PROVIDE SCHOLARSHIPS FOR THOSE WHO DO NOT HAVE THE FINANCIAL MEANS TO PARTICIPATE. ST. JAMES ALSO IS CONTINUING TO OFFER ITS FITKIDS 360 CLASSES TO FAMILIES WHO HAVE AN OVERWEIGHT CHILD. PRIMARY CARE PHYSICIANS REFER FAMILIES TO THE PROGRAM WHERE THEY LEARN ABOUT LIFE STYLE CHANGES, EXERCISE, ETC., TO HELP THEM LIVE HEALTHIER LIVES.THE ACTION GROUP FOR TOBACCO USE HAS BEGUN TO DEVELOP MATERIALS FOR "COMMUNITY AMBASSADORS" TO PROVIDE TO YOUTH AND YOUNG ADULTS ABOUT TOBACCO CESSATION. IN ADDITION, ST. JAMES HEALTHCARE REFERS ALL INPATIENTS WHO USE TOBACCO TO THE MONTANA QUIT LINE. IN 2015 AND 2016, ST. JAMES REFERRED THE HIGHEST NUMBER OF PARTICIPANTS TO THE PROGRAM. ST. JAMES HEALTHCARE CONTINUES TO SUPPORT ALL COMMUNITY ACTIVITIES AND EVENTS AIMED AT CHILDREN. THIS IS DONE WITH BOTH IN-KIND AND FINANCIAL SUPPORT.THE REMAINDER OF NEEDS IDENTIFIED IN THE CHNA ARE IMPORTANT TO ST. JAMES HEALTHCARE, BUT BECAUSE OF LIMITED RESOURCES AT THE HOSPITAL LEVEL, AND THE AVAILABILITY OF COMMUNITY ORGANIZATIONS WHO ARE ALREADY ADDRESSING NEEDS, ST. JAMES CONTINUES TO COLLABORATE WITH COMMUNITY ORGANIZATIONS TO ENSURE ALL NEEDS AND HEALTH INDICATORS ARE BEING ADDRESSED.ST. JAMES HEALTHCARE:PART V, SECTION, B, LINE 16A, 16B, 16C:HTTPS://WWW.SCLHEALTH.ORG/LOCATIONS/ST-JAMES-HEALTHCARE/PATIENTS-VISITORS/BILLING-INSURANCE/FINANCIAL-ASSISTANCE/ 3 1 - ST JAMES CANCER CENTER - INFUSION THPY 400 S CLARK ST BUTTE MT 59701 OUTPATIENT PHYSICIAN CLINIC 2 - ST JAMES CANCER CENTER - MED ONC 400 S CLARK ST BUTTE MT 59701 OUTPATIENT PHYSICIAN CLINIC 3 - SUMMIT SURGERY CENTER LLC 434 S CLARK STREET BUTTE MT 59701 OUTPATIENT SURGERY CENTER PART I, LINE 6A: THIS ORGANIZATION IS PART OF SCL HEALTH SYSTEM WHICH PREPARES AN ANNUAL COMMUNITY BENEFIT REPORT ON A CONSOLIDATED BASIS. THE REPORT IS PREPARED BY THE PARENT COMPANY, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. PART I, LINE 7: THE AMOUNTS REPORTED ON FORM 990, SCHEDULE H, PART I, LINE 7A, 7B AND 7C WERE DETERMINED USING THE COST TO CHARGE RATIO DERIVED FROM WORKSHEET 2, IN THE SCHEDULE H, FORM 990 INSTRUCTIONS. FORM 990, SCHEDULE H, PART I, LINES 7E, 7F, 7G, 7H AND 7I ARE REPORTED AT COST AS REPORTED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 2,203,915. PART II, COMMUNITY BUILDING ACTIVITIES: ST. JAMES HEALTHCARE CONTINUES TO WORK WITH COMMUNITY ORGANIZATIONS THAT SUPPORT ACTIVITIES AND POLICY IN ITS COMMUNITY. IN 2016, ST. JAMES CONTINUED ITS COMMITMENT TO SUBSIDIZE ATHLETIC TRAINERS AT 6 AREA HIGH SCHOOLS. WITHOUT OUR SUPPORT, THE SCHOOLS WOULD NOT BE ABLE TO PROVIDE THIS SERVICE TO ITS YOUNG ATHLETES. ST. JAMES ALSO PROVIDES FOOD TO THE HOMELESS THREE DAYS EACH WEEK.PART III, LINE 1THE ORGANIZATION REPORTS BAD DEBT IN ACCORDANCE WITH HEALTHCARE FINANCIALMANAGEMENT ASSOCIATION (HFMA) STATEMENT NO. 15 TO THE EXTENT THAT HFMASTATEMENT NO. 15 FOLLOWS THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(GAAP) FOR THE REPORTING OF BAD DEBT. PART III, LINE 2: THE BAD DEBT EXPENSE REPORTED ON PART III, LINE 2 IS AT CHARGES AS RECORDED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. THE ALLOWANCE FOR BAD DEBT IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS.THE BAD DEBT ALLOWANCE IS CALCULATED AS A PERCENTAGE OF PATIENT RECEIVABLES AFTER DEDUCTIONS FOR ESTIMATED PROVISIONS FOR CONTRACTUAL ADJUSTMENTS (DISCOUNTS) ON SERVICES PROVIDED TO ENROLLEES OF MEDICARE, MEDICAID, THIRD-PARTY PAYOR PROGRAMS, CHARITY CARE, UNINSURED DISCOUNTS, AND OTHER ADMINISTRATIVE ADJUSTMENTS. PART III, LINE 4: THE ALLOWANCE FOR BAD DEBT IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS.THE BAD DEBT ALLOWANCE IS CALCULATED AS A PERCENTAGE OF PATIENT RECEIVABLES AFTER DEDUCTIONS FOR ESTIMATED PROVISIONS FOR CONTRACTUAL ADJUSTMENTS (DISCOUNTS) ON SERVICES PROVIDED TO ENROLLEES OF MEDICARE, MEDICAID, THIRD-PARTY PAYOR PROGRAMS, CHARITY CARE, UNINSURED DISCOUNTS, AND OTHER ADMINISTRATIVE ADJUSTMENTS.THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN AND PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS.CERTAIN PATIENT ACCOUNTS ARE WRITTEN OFF TO BAD DEBT BECAUSE THE ORGANIZATION DOES NOT HAVE SUFFICIENT INFORMATION TO DETERMINE IF THE PATIENT WOULD QUALIFY FOR FREE CARE OR FINANCIAL AID. THEREFORE, IT IS POSSIBLE THAT SOME BAD DEBT IS ACTUALLY CHARITY CARE. HOWEVER, IF A PATIENT ACCOUNT IS WRITTEN OFF TO BAD DEBT AND THE COLLECTION AGENCY LATER DETERMINES THAT THE PATIENT WOULD HAVE QUALIFIED FOR FREE CARE OR FINANCIAL AID, THEN THE BAD DEBT EXPENSE IS RECLASSIFIED TO CHARITY CARE. THE FOLLOWING IS THE TEXT OF THE FOOTNOTE IN THE ORGANIZATION'S FINANCIAL STATEMENTS THAT DESCRIBE THE BAD DEBT ALLOWANCE AND BAD DEBT EXPENSE: THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITION IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON HISTORICAL COLLECTION EXPERIENCE BY PAYOR CATEGORY AND OTHER FACTORS. THE RESULTS OF THESE REVIEWS ARE THEN USED TO MAKE MODIFICATIONS TO THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS INCLUDES A RESERVE FOR BOTH UNINSURED PATIENTS AND BALANCES DUE FROM PATIENTS AFTER INSURANCE. PART III, LINE 8: THE ORGANIZATION BELIEVES THAT AT LEAST SOME PORTION OF THE COSTS WE INCUR IN EXCESS OF PAYMENTS RECEIVED FROM THE FEDERAL GOVERNMENT FOR PROVIDING MEDICAL SERVICES TO MEDICARE ENROLLEES AND BENEFICIARIES UNDER THE FEDERAL MEDICARE PROGRAM (SHORTFALL OR MEDICARE SHORTFALL) CONSTITUTES A COMMUNITY BENEFIT. PROVIDING THESE SERVICES CLEARLY LESSENS THE BURDENS OF THE GOVERNMENT BY ALLEVIATING THE FEDERAL GOVERNMENT FROM HAVING TO DIRECTLY PROVIDE THESE MEDICAL SERVICES. AS DEMONSTRATED AND CALCULATED ON FORM 990, SCHEDULE H, PART III, LINES 5, 6 AND 7, OUR MEDICARE "ALLOWABLE COSTS" CLEARLY EXCEED THE PAYMENTS WE RECEIVE FOR PROVIDING THESE MEDICAL SERVICES UNDER THE MEDICARE PROGRAM. BY ABSORBING THE MEDICARE SHORTFALL COSTS WE ARE PROVIDING A COMMUNITY BENEFIT AS WELL AS EASING THE BURDEN OF THE FEDERAL GOVERNMENT HAVING TO COVER THESE COSTS.TO ARRIVE AT THE FORM 990, SCHEDULE H, PART III, LINE 6 AMOUNT, WE USED ACTUAL MEDICARE CHARGES FROM INTERNAL RECORDS AND APPLIED AN ESTIMATED COST TO CHARGE RATIO TO DETERMINE THE MEDICARE ALLOWABLE COSTS. THE ESTIMATED MEDICARE COST TO CHARGE RATIO IS THE PRIOR PERIOD MEDICARE COST REPORT COST TO CHARGE RATIO. PART III, LINE 9B: AN INTEGRAL COMPONENT OF OUR MISSION IS TO BE GOOD FINANCIAL STEWARDS. THIS REQUIRES US TO DETERMINE WHICH PATIENTS ARE IN NEED OF CHARITY CARE AND WHICH ARE ABLE TO CONTRIBUTE SOME PAYMENT FOR CARE RECEIVED. WEMAINTAIN A BALANCE THAT ENABLES US TO CONTINUE TO PROVIDE CHARITY CARE TOTHOSE WHO NEED IT MOST AND ENSURE THAT WE MANAGE OUR RESOURCES SOWE CAN CONTINUE TO BE HERE WHEN PEOPLE NEED US MOST. THE ORGANIZATION NOTIFIES PATIENTS OF FINANCIAL ASSISTANCE POLICY UPON ADMISSION AND DISCHARGE. IN ADDITION, THE PATIENTS RECEIVE INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. PATIENTS ARE CONTACTED MULTIPLE TIMES ABOUT UNPAID BALANCES PRIOR TO INITIATING ANY COLLECTION ACTION. IF A PATIENT IS DETERMINED TO BE ELIGIBLE FOR FINANCIAL ASSISTANCE AT ANY TIME DURING THE COLLECTION PROCESS, THE ACCOUNT IS RECLASSIFIED AS FINANCIAL ASSISTANCE AND DEBT COLLECTION EFFORTS ARE CEASED. PART VI, LINE 2: AS PART OF OUR CORE VALUE OF RESPONSE TO NEED, ST. JAMES TAKES ONGOING STEPS TO DETERMINE WHERE THERE IS THE MOST NEED TO PROVIDE THE GREATEST GOOD. ST. JAMES REGULARLY PARTICIPATES IN ANNUAL REVIEW OF NEEDS TO IDENTIFY CHANGING NEEDS OF THE COMMUNITY IN PARTNERSHIP WITH BUTTE HEALTH DEPARTMENT AND SW MONTANA COMMUNITY HEATLH CENTER. THIS STRONG PARTNERSHIP ENSURES THAT ALL NEEDS REMAIN IN FOCUS WITH BOTH COUNTY ORGANIZATIONS AND THEIR COMMUNITY PARTNERS. PART VI, LINE 3: THE ORGANIZATION NOTIFIES PATIENTS ABOUT THE FINANCIAL ASSISTANCE POLICY UPON ADMISSION AND PRIOR TO DISCHARGE. NOTICES ABOUT THE FINANCIAL ASSISTANCE POLICY ARE DISPLAYED THROUGHOUT THE HOSPITAL. IN ADDITION, PATIENTS RECEIVE INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. THE FINANCIAL ASSISTANCE POLICY AND APPLICATION ARE POSTED ON THE HOSPITAL'S WEBSITE. THE POLICY AND APPLICATION ARE ALSO AVAILABLE UPON REQUEST. THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN, PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS. PART VI, LINE 4: ST. JAMES HEALTHCARE IS LOCATED IN THE CITY OF BUTTE, MONTANA IN SILVER BOW COUNTY. DEMOGRAPHIC CONSTITUENTS, ACCORDING TO 2014 US CENSUS DATA:POPULATION: THE 2014 ESTIMATED POPULATION OF BUTTE SILVER BOW IS 34,680, REPRESENTING A 1% CHANGE FROM 2010.GENDER: THE POPULATION OF MALES AND FEMALES IS NEARLY EQUAL (40.5% FEMALE).AGE: MEDAN AGE IS 40.8 YEARS.THE POPULATION IS PRIMARILY COMPRISED OF WHITES (91.6%), HISPANIC/LATINOS (3.9%), AMERICAN INDIAN (1.9%), AND BLACKS/AFRICAN AMERICAN (0.03%).ECONOMICS: THE MEDIAN HOUSEHOLD INCOME IN 2014 WAS $37,503. THE PERCENTAGE OF PERSONS LIVING IN POVERTY IS 20.8%.HEALTH BEHAVIORS: ADULT OBESITY IS 31.6% AND CHILDREN ARE 15.7% (AGES 5 TO 17). 12.6% SUFFER FROM COPD AND 20.9% ARE SMOKERS. 22.9% ARE IN FAIR/POOR PHYSICAL HEALTH.ACCESS TO CARE: 39.2% HAD DIFFICULTY ACCESSING PRIMARY CARE PHYSICIANS. PART VI, LINE 5: COLLECTIVELY WITH ITS 98 LICENSED BEDS, ST. JAMES HAS SERVED ITS COMMUNITY BY PROVIDING COMPREHENSIVE MEDICAL SERVICES INCLUDING CARDIOLOGY, ONCOLOGY, ORTHOPEDIC, WOMEN AND FAMILY, EMERGENCY AND TRAUMA, NEONATAL INTENSIVE CARE, NEUROLOGY, OB/GYN, GENERAL SURGICAL, PRIMARY CARE, AND INTERNAL MEDICINE.COMMUNITY ACTIVITIES INCLUDE A PUBLIC PRESENTATIONS ON A VARIETY OF HEALTH TOPICS; STEPPING ON CLASSES (BALANCE) FOR SENIOR CITIZENS; SUPPORT GROUPS FOR CANCER AND DIABETES PREVENTION AND MANAGEMENT CLASSES, TO NAME A FEW.ST. JAMES PROVIDES FREE BLOOD PRESSURE SCREENINGS SEVERAL TIMES A YEAR. WHEN ST. JAMES HAS EXCESS REVENUE OVER OPERATING EXPENSES, WE USE THOSE FUNDS TO OBTAIN CURRENT HEALTH CARE TECHNOLOGIES AND EQUIPMENT, IMPROVE PATIENT CARE, PROVIDE MEDICAL TRAINING EDUCATION, AND TO EXPAND ACCESS TO CARE. THESE INVESTMENTS ENSURE WE'LL BE HERE TO CARE FOR FUTURE GENERATIONS. CAPITAL INVESTMENTS FOR NEW EQUIPEMENT AND TECHNOLOGIES HAS BEEN OVER $32 MILLION SINCE 2014. PART VI, LINE 6: THE ORGANIZATION IS A CONTROLLED ENTITY OF THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). SCLHS AND ITS AFFILIATED ENTITIES HAVE A COMMON CALLING AND MISSION: "WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE." WE STRIVE TO PROVIDE HIGH-QUALITY, COMPASSIONATE AND AFFORDABLE HEALTHCARE IN EACH OF OUR HOSPITAL SITES AND THEIR RESPECTIVE COMMUNITY, AS WELL AS IN A VARIETY OF OUTPATIENT SETTINGS AND IN THE HOME. SCLHS IS A FAITH-BASED, NONPROFIT HEALTHCARE ORGANIZATION THAT OPERATES NINE HOSPITALS, TWO SAFETY NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES - COLORADO, KANSAS AND MONTANA. THE HEALTH SYSTEM INCLUDES MORE THAN 15,000 FULL-TIME ASSOCIATES AND MORE THAN 500 EMPLOYED PROVIDERS.AS OUR HEALTH SYSTEM GROWS, WE'RE LEVERAGING THAT GROWTH TO ACHIEVE BENEFITS OF SCALE - IDENTIFYING COST AND OTHER ADVANTAGES THAT WE GAIN DUE TO OUR SIZE. WE'RE ALSO WORKING TO STREAMLINE AND UNIFY OUR SYSTEM-WIDE PROCESSES TO ELIMINATE COSTLY DUPLICATION OF EFFORT. WE ACTIVELY ENCOURAGE OUR PEOPLE TO PURSUE CREATIVE IDEAS THAT IMPROVE EFFICIENCY, SERVICE AND THE OVERALL CARE EXPERIENCE. WHEN OUR ASSOCIATES OR LEADERSHIP TEAMS IDENTIFY BEST PRACTICES IN ANY AREA OF CARE, WE RAPIDLY REPLICATE THOSE ACROSS ALL CARE SITES.THE ORGANIZATION PROMOTES THE HEALTH OF THE COMMUNITY BY DELIVERING DIRECT HIGH QUALITY HEALTHCARE SERVICES THAT ARE RESPONSIVE TO THE NEEDS OF ITS PATIENTS AND THEIR FAMILIES. THIS INCLUDES COORDINATING COMMUNITY BENEFIT PROCESSES, PROVIDING GUIDANCE WITH COMMUNITY NEEDS ASSESSMENTS, AND ESTABLISHING CONSISTENT FINANCIAL ASSISTANCE AND CHARITY CARE POLICIES AND PROCEDURES. ADDITIONALLY, SCLHS BENEFITS AFFILIATES THROUGH QUALITY IMPROVEMENT AND PERFORMANCE EXCELLENCE INITIATIVES; SYSTEM-WIDE INFORMATION TECHNOLOGY IMPLEMENTATION AND INFRASTRUCTURE; STRATEGIC AND OPERATIONS DIRECTION AND OVERSIGHT; SUPPLY CHAIN MANAGEMENT AND PURCHASING; FINANCE ADMINISTRATION AND REVENUE CYCLE SUPPORT, BENEFITS ADMINISTRATION, RISK MANAGEMENT; DISASTER PLANNING AND CRISIS ASSISTANCE, CENTRAL CASH MANAGEMENT AND INVESTMENT, INTERNAL AUDIT, LEGAL SERVICES, TAX SERVICES AND MISSION INTEGRATION. 1 ST JAMES HEALTHCARE FOUNDATION 400 SOUTH CLARK ST BUTTE MT 59701 651202190 501(C)(3) 211348 SUPPORT FOR MISSION DIGGER ATHLETIC ASSOCIATION 1300 W PARK ST BUTTE MT 59701 237010408 501(C)(3) 6000 SUPPORT FOR MISSION 2 0 PART I, LINE 2: PROCESS FOR MONITORING GRANTS AND AWARDS THE ORGANIZATION KEEPS RECORDS TO SUPPORT THE AMOUNTS PROVIDED OR REASON FOR SUCH SUPPORT. ELIGIBILITY FOR FUNDING IS DETERMINED ON AN INDIVIDUAL BASIS, CONSIDERING THE USE OF THE FUNDS AND HOW THE USE RELATES TO THE ORGANIZATION'S MISSION. 1 1 0 0 0 0 0 1 0 SHAWN DUFFORD MD DIRECTOR 9/1-12/31 0 476834 0 65891 0 14838 0 87580 0 21814 0 666957 0 0 THOMAS PETERSON MD DIRECTOR 1/1-8/31 0 229046 0 36417 0 247934 0 14095 0 20923 0 548415 0 0 CHARLES WRIGHT PRESIDENT & CEO 0 301364 0 51124 0 36861 0 183583 0 17724 0 590656 0 0 TRAVIS SCHEVING VP & CFO 1/1-6/15 0 165298 0 12467 0 602 0 27896 0 18113 0 224376 0 0 JEREMY BLANCHARD CHIEF PHYSICIAN EXECUTIVE 0 178009 0 33926 0 0 0 38607 0 11984 0 262526 0 0 KEVIN DENNEHY VP STRATEGY-BUS DEVELOP-SJB 0 171295 0 20285 0 3680 0 31436 0 21254 0 247950 0 0 DENNIS SALISBURY MD PSO VP CMO HEALTH NET 0 261753 0 30625 0 10654 0 46990 0 22306 0 372328 0 0 MARC NASH MD PHYSICIAN RADIATION ONCOLOGIST 508614 0 0 0 27002 0 21200 0 2443 0 559259 0 0 0 DANAE HANSEN MD ANESTHESIOLOGIST 410414 0 0 0 3052 0 21200 0 20315 0 454981 0 0 0 MARWAN MASSOUH MD PHYSICIAN 405006 0 0 0 4152 0 7287 0 16497 0 432942 0 0 0 DAVID SILK MD PHYSICIAN ED 276091 0 3750 0 1958 0 21200 0 19174 0 322173 0 0 0 ALAN MAYER MD PHYSICIAN ED 272370 0 3750 0 4940 0 20542 0 15335 0 316937 0 0 0 JAMES DOYLE FORMER OFFICER 0 215501 0 23192 0 10538 0 37633 0 22105 0 308969 0 0 MOHAN NANDALUR MD FORMER HIGHEST PAID EMPLOYEE 0 478065 0 0 0 0 0 21200 0 6145 0 505410 0 0 THOMAS AUFIERO MD FORMER HIGHEST PAID EMPLOYEE 0 425884 0 26500 0 4096 0 21200 0 9114 0 486794 0 0 ALLEN NICHOLS MD FORMER HIGHEST PAID EMPLOYEE 0 381358 0 0 0 0 0 15404 0 0 0 396762 0 0 PART I, LINE 3 THE ORGANIZATION'S OFFICERS AND SENIOR MANAGEMENT ARE PAID BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH). COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SCL HEALTH BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. PART I, LINES 4A-B SEVERANCE PAYMENTS THE ORGANIZATION AND RELATED ORGANIZATIONS PERIODICALLY INCUR SEVERANCE PAYMENTS TO FORMER EMPLOYEES. THE INDIVIDUALS AND THE AMOUNTS PAID FOR SEVERANCE IN 2016 WERE: TOM PETERSON, MD - $100,522. PAYMENTS FROM NONQUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN A RELATED ORGANIZATION PROVIDES NONQUALIFIED DEFERRED COMPENSATION PLANS (NQDC) KNOWN AS SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM (SERP) FOR EXECUTIVES (SENIOR MANAGEMENT) TO COMPENSATE FOR REGULATORY IMPOSED LIMITATIONS IN QUALIFIED RETIREMENT PLANS AND TO PROVIDE A BENEFIT CONSISTENT WITH OTHER NOT FOR PROFIT HEALTH SYSTEMS. THESE PLANS ENABLE THE EXECUTIVE TO EARN BENEFITS DURING EACH YEAR THAT THEY PARTICIPATE. IN 2014, IN AN EFFORT TO REDUCE LONG-TERM COST AND HAVE GREATER CONTROL OVER FINANCIAL RISK, THE SERP WAS CONVERTED FROM A DEFINED BENEFIT (DB) TO A DEFINED CONTRIBUTION (DC) DESIGN. CERTAIN MEMBERS OF SENIOR MANAGEMENT WHOSE BENEFITS WERE CONVERTED FROM DB TO DC WOULD HAVE BEEN DISPROPORTIONATELY AND NEGATIVELY AFFECTED BY THE CHANGE, SO THE COMMITTEE DETERMINED IT WOULD BE APPROPRIATE TO GRANT "TRANSITION CREDITS" IN ORDER TO MITIGATE THE NEGATIVE IMPACT OF THE CHANGE ON THEIR RETIREMENT BENEFITS. THIS IS A COMMON APPROACH EMPLOYED BY OTHER ORGANIZATIONS UNDERGOING A SIMILAR TRANSITION. THE TRANSITION CREDITS VEST IN ACCORDANCE WITH THE TERMS OF THE DC SERP (I.E., AFTER THREE YEARS) AND ARE PAID TO THE EXECUTIVE UPON VESTING. NQDC SERP PLANS PRIOR TO 2014 PRIOR TO 2014, THE RELATED ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS 5 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN AFTER DECEMBER 31, 2013. THE RELATED ORGANIZATION HAS DETERMINED THAT THESE BENEFITS SHOULD BE SUBJECT TO TAXATION AS THE AMOUNTS ARE VESTED RATHER THAN WHEN THEY ARE RECEIVED. AS A RESULT, THE TOTAL NONQUALIFIED RETIREMENT PLAN BENEFITS, WHICH WERE VESTED IN THE CURRENT YEAR, ARE CONSIDERED TAXABLE AND THUS WERE TAXED TO THE PARTICIPANTS. FOR SOME OF THE PARTICIPANTS, AN AMOUNT EQUAL TO THE PARTICIPANT'S EXPECTED INCOME TAX LIABILITY WAS WITHDRAWN FROM THE PARTICIPANT'S ACCOUNT AND REMITTED TO THE FEDERAL AND STATE GOVERNMENTS AS WITHHOLDING ON THE TAXABLE BENEFIT. NO CASH PAYMENT IS MADE DIRECTLY TO THE PARTICIPANT AND THE REMAINING BENFIT AMOUNT STAYS IN THE RETIREMENT PLAN. THE AMOUNTS WITHDRAWN FROM THE PLAN FOR TAXES IN 2016 WERE: NONE. FOR AMOUNTS CONTRIBUTED TO THE NQDC SERP PLAN PRIOR TO 2014, VESTED AMOUNTS ARE PAYABLE UPON THE END OF EMPLOYMENT. THE VESTED AMOUNTS WITHDRAWN INCLUDE AMOUNTS PREVIOUSLY TAXED TO THE RECIPIENT AND AMOUNTS TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. NQDC SERP PLANS STARTING IN 2014 STARTING IN 2014, THE RELATED ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS ROLLING 3 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN BEFORE JANUARY 1, 2014. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. STARTING IN 2014, FOR CONTRIBUTIONS TO THE NQDC SERP PLAN, CERTAIN PARTICIPANTS ARE VESTED OR BECAME VESTED IN THE PLAN DURING 2016. VESTED AMOUNTS ARE PAYABLE TO THE RECIPIENT. THE VESTED AMOUNTS ARE TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. THE AMOUNTS WITHDRAWN FROM THE NQDC SERP PLANS IN 2016 WERE: TOM PETERSON, MD - $114,483. IN ACCORDANCE WITH THE REQUIREMENTS OF SCHEDULE J, DEFERRED COMPENSATION EARNED OVER THE VESTING PERIOD IS REPORTED IN COLUMN C AND ANY AMOUNTS VESTED/PAID FROM A DEFERRED COMPENSATION PLAN ARE REPORTED IN COLUMN B(III). THUS, THE SAME AMOUNT WOULD BE REPORTED TWICE (FIRST WHEN IT ACCRUED DURING THE VESTING PERIOD AND AGAIN WHEN IT IS VESTED/PAID). THIS RESULTS IN THE APPEARANCE OF CERTAIN EXECUTIVES RECEIVING MORE THAN THEY ARE ACTUALLY PAID FROM THE DEFERRED COMPENSATION PLANS. COLUMN F IS INTENDED TO RECONCILE THIS DUPLICATION (BY REPORTING AMOUNTS INCLUDED IN COLUMN B(III) THAT HAD BEEN REPORTED AS DEFERRED COMPENSATION ON A SCHEDULE J FOR A PREVIOUS YEAR). HOWEVER, THE SIGNIFICANCE OF THE AMOUNTS LISTED IN COLUMN F IS OFTEN OVERLOOKED AND GIVEN THE COMPLEXITY OF THE SCHEDULE J REPORTING REQUIREMENTS, THE AMOUNTS SHOWN ARE EASILY MISUNDERSTOOD. TO DETERMINE TOTAL AMOUNT EARNED (RATHER THAN THE AMOUNT VESTED/PAID OUT) DURING THE YEAR, SUBTRACT THE AMOUNT IN COLUMN F FROM COLUMN E. PART I, LINE 7 THE AT RISK COMPENSATION PLAN WAS ESTABLISHED TO ENABLE THE HEALTH CARE SYSTEM AND ITS CARE SITES TO ATTRACT AND ENGAGE QUALIFIED LEADERS AND TO PROVIDE SUCH LEADERS WITH AN ADDITIONAL PERFORMANCE COMPENSATION OPPORTUNITY TO PROMOTE AND FURTHER ITS CHARITABLE MISSION, VISION, STRATEGIC PRIORITIES AND KEY INITIATIVES. THE PLAN OPERATES ON A CALENDAR-YEAR BASIS AND IS FUNDED EACH YEAR BY MEETING THRESHOLD LEVELS OF OPERATING INCOME. TARGET AWARD AMOUNTS ARE A PERCENTAGE OF LEADERS' BASE PAY AS DETERMINED BY THEIR SPECIFIC ROLE AT THE HEALTH CARE SYSTEM. ACTUAL AWARDS ARE PAID OUT BASED ON ATTAINMENT OF BOARD APPROVED GOALS, INCLUDING OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. AWARDS ARE BASED ON THE BOARD'S DETERMINATION ON HOW WELL THE HEALTH CARE SYSTEM PERFORMS RELATIVE TO THE PLAN'S STATED PERFORMANCE STANDARDS AND THE WEIGHT GIVEN TO EACH OF THE PERFORMANCE MEASURES AS DEFINED FOR THAT PLAN YEAR. THE AT RISK COMPENSATION PLANS ARE BASED ON A COMBINATION OF PERFORMANCE MEASURES. PERFORMANCE MEASURES INCLUDE OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. THE AT RISK COMPENSATION PLAN SHALL BE INTERPRETED, APPLIED AND ADMINISTERED AT ALL TIMES IN ACCORDANCE WITH CODE SECTION 409A AND GUIDANCE ISSUED THEREUNDER. THE HEALTH CARE SYSTEM RESERVES THE RIGHT TO AMEND OR TERMINATE THIS PLAN AT ANY TIME FOR ANY REASON. ADDITIONAL OFFICER AND BOARD DISCLOSURES THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) AND RELATED TAX EXEMPT ORGANIZATIONS CONSISTS OF NINE HOSPITALS, NINE FOUNDATIONS, TWO SAFETY-NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES. SCLHS AND RELATED TAX EXEMPT ORGANIZATIONS ADHERE TO GOVERNANCE EXCELLENCE STANDARDS INCLUDING TRANSPARENCY AND ACCOUNTABILITY. IN KEEPING WITH SCLHS' CORE VALUE OF STEWARDSHIP, NO BOARD MEMBER SERVING ON THE BOARD OF DIRECTORS (BOARD) IS COMPENSATED FOR THAT SERVICE. SCLHS' BOARD COMPENSATION COMMITTEE (COMMITTEE) HAS RETAINED THE SERVICES OF AN INDEPENDENT COMPENSATION ADVISOR. THE COMPENSATION ADVISOR IS RESPONSIBLE FOR ADVISING THE COMMITTEE ON ALL MATTERS RELATING TO EXECUTIVE COMPENSATION INCLUDING SUPPORTING THE COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. THE SISTERS WHO SERVE AS OFFICERS AND/OR BOARD MEMBERS ARE MEMBERS OF THE SISTERS OF CHARITY OF LEAVENWORTH (A RELIGIOUS ORDER OF WOMEN). THE SISTERS HAVE TAKEN VOWS OF POVERTY AND RECEIVE NO COMPENSATION, EXPENSE ACCOUNT ALLOWANCE, OR CONTRIBUTIONS TO BENEFIT PLANS FOR THEIR SERVICES TO THE HEALTH CARE SYSTEM. HOWEVER, A PAYMENT IS MADE DIRECTLY TO THE SISTERS OF CHARITY OF LEAVENWORTH FOR THE SERVICES OF THOSE WHO PERFORM PROFESSIONAL, ADMINISTRATIVE, AND OTHER SUCH SERVICES. SALLY DWYER SEE PART V 86809 EMPLOYMENT 0 MICAUL MCCLAFFERTY SEE PART V 11352 EMPLOYMENT 0 JESSIE SALISBURY SEE PART V 255678 EMPLOYMENT 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: DANETTE GLEASON (BOARD MEMBER), IS THE SISTER-IN-LAW OF SALLY DWYER, AN EMPLOYEE OF ST. JAMES HEALTHCARE.THERESE MCCLAFFERTY (BOARD MEMBER), IS THE MOTHER OF MICAUL MCCLAFFERTY, AN EMPLOYEE OF ST. JAMES HEALTHCARE.DENNIS SALISBURY (KEY EMPLOYEE), IS THE SPOUSE OF JESSIE DWYER, AN EMPLOYEE OF ST. JAMES HEALTHCARE. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) IS THE SOLE MEMBER OF ST. JAMES HEALTHCARE. FORM 990, PART VI, SECTION A, LINE 7A POWER TO ELECT OR APPOINT MEMBERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC., THE SOLE MEMBER OF ST. JAMES HEALTHCARE, APPROVES MEMBERS OF ST. JAMES HEALTHCARE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS RESERVED TO MEMBERS OR STOCKHOLDERS SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) HAS CERTAIN RESERVE POWERS TO APPROVE CHANGES TO THE ARTICLES OF INCORPORATION AND THE BYLAWS INCLUDING THE APPOINTMENT OR REMOVAL OF BOARD MEMBERS AND THE PRESIDENT/CEO. SCLHS ALSO HAS CERTAIN RESERVE POWERS OVER ANY CHANGE IN OWNERSHIP OF THE CORPORATION, CHANGE IN MISSION, ACQUISITION OF ASSETS, DISPOSAL OF ASSETS, LEASING OF ASSETS, INCURRENCE OF DEBT, MERGER OR DISSOLUTION, APPROVAL OF STRATEGIC PLANS AND BUDGETS, APPOINTMENT OF AUDITORS AND OVERSIGHT AND APPROVAL OF COMPENSATION AND BENEFITS FOR DIRECTORS, OFFICERS, KEY EMPLOYEES AND PHYSICIANS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE TAX DEPARTMENT OF THE PARENT ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). THE FORM 990 IS REVIEWED BY CERTAIN MEMBERS OF SENIOR MANAGEMENT. A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO THE FILING OF THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. ANY QUESTIONS ARE ADDRESSED TO THE TAX DIRECTOR OF SCLHS PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY ST. JAMES HEALTHCARE AND THE PARENT ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (COLLECTIVELY REFERRED TO AS SCL HEALTH), REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES ITS CONFLICT OF INTEREST POLICY BY PROVIDING EDUCATION AND TRAINING FOR ITS EMPLOYEES, STAFF, OFFICERS AND DIRECTORS. PERSONS CONSIDERED TO BE IN AN INFLUENTIAL POSITION, SUCH AS BOARD MEMBERS, OFFICERS, PHYSICIANS, EXECUTIVES AND MANAGERS ARE ALL REQUIRED TO COMPLETE A CONFLICT OF INTEREST STATEMENT ON AN ANNUAL BASIS TO DISCLOSE ANY POTENTIAL CONFLICT ISSUES. THESE STATEMENTS ARE CAREFULLY REVIEWED BY THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT AND APPROPRIATE LEADERSHIP. A REPORT IS PROVIDED TO SCLHS' PRESIDENT/CEO AND THE BOARD OF DIRECTORS. THE BUSINESS AND AFFAIRS OF SCL HEALTH WILL AT ALL TIMES BE CONDUCTED IN A MANNER THAT IS SOLELY IN THE BEST INTERESTS OF SCL HEALTH AND NOT BE INFLUENCED BY CONFLICTING INTERESTS OF PERSONS RESPONSIBLE FOR ADMINISTERING THOSE AFFAIRS. THE EXISTENCE OF ANY CONFLICTS OF INTEREST WILL BE DISCLOSED AND THE PROCEDURES SET FORTH HEREIN WILL BE FOLLOWED. CERTAIN TRANSACTIONS SUGGESTIVE OF A CONFLICT OF INTEREST ARE PROHIBITED. ANY PERSON IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER SCL HEALTH IS CONSIDERED AN INTERESTED PERSON. THIS TERM INCLUDES, BUT IS NOT LIMITED TO THE FOLLOWING: - BOARD MEMBERS, BOARD COMMITTEE MEMBERS, OFFICERS AND DIRECTORS; - SENIOR LEADERS AND EXECUTIVES (CEO, PRESIDENT, SVP, VP, EXECUTIVE DIRECTORS); - EMPLOYED PHYSICIANS AND PHYSICIANS IN MEDICAL STAFF LEADERSHIP ROLES (E.G., DEPARTMENT CHAIRS, MEMBERS OF MEDICAL STAFF COMMITTEES); - MEDICAL DIRECTORS OF CLINICAL PROGRAMS THAT ASSESS, REVIEW, RECOMMEND OR REQUEST PURCHASE OF ANY SPECIFIC PHARMACEUTICAL PRODUCTS, MEDICAL DEVICES, SUPPLIES AND/OR EQUIPMENT; - DEPARTMENT DIRECTORS AND MANAGERS; AND - OTHER SELECT INDIVIDUALS IDENTIFIED BY LEADERSHIP WHICH MAY INCLUDE, BUT IS NOT LIMITED TO, SUPPLY CHAIN AND FINANCE. UPON BECOMING AN INTERESTED PERSON AND ON AN ANNUAL BASIS, INTERESTED PERSONS ARE REQUIRED TO DISCLOSE ANY RELATIONSHIPS THAT CONSTITUTE OR MIGHT LEAD TO A CONFLICT OF INTEREST BY COMPLETING THE CURRENT CONFLICT OF INTEREST AND GIFT DISCLOSURE STATEMENT ("STATEMENT") AS APPROVED BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER. THE CHIEF INTEGRITY AND COMPLIANCE OFFICER WILL OVERSEE THE REVIEW OF THE STATEMENTS AND THE RESOLUTION OF ANY IDENTIFIED CONFLICTS OF INTEREST AND ALERT THE SCL HEALTH CEO AND/OR THE CHAIR OF THE SCL HEALTH BOARD OF DIRECTORS TO ANY ITEMS OF CONCERN. WHEN AN INTERESTED PERSON BECOMES AWARE OF A CONFLICT OF INTEREST WHICH HAS NOT BEEN DISCLOSED ON A STATEMENT, HE OR SHE SHALL CONTACT THE LOCAL COMPLIANCE AND PRIVACY OFFICER OR THE CHIEF INTEGRITY AND COMPLIANCE OFFICER, OBTAIN A STATEMENT FORM, COMPLETE AND RETURN IT TO THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT. WHENEVER AN INTERESTED PERSON BECOMES AWARE THAT AN ARRANGEMENT WITH RESPECT TO WHICH HE OR SHE HAS A CONFLICT OF INTEREST IS BEING CONSIDERED, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS CONCERNING THE EXISTENCE AND NATURE OF THE CONFLICT OF INTEREST TO HIS OR HER SUPERVISOR (IF AN EMPLOYEE OTHER THAN THE ORGANIZATIONS SCL HEALTH CEO) OR TO THE APPLICABLE BOARD OR COMMITTEE CHAIR (IF THE SCL HEALTH CEO OR A BOARD OR COMMITTEE MEMBER), EVEN IF THE CONFLICT OF INTEREST HAS BEEN PREVIOUSLY DISCLOSED. WITH REGARD TO EMPLOYEES OTHER THAN THE SCL HEALTH CEO, THE INTERESTED PERSON'S SUPERVISOR WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. WITH REGARD TO THE SCL HEALTH CEO AND BOARD OR COMMITTEE MEMBERS, THE REMAINING MEMBERS OF THE BOARD OR COMMITTEE WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. PERSON(S) RESPONSIBLE FOR THE DETERMINATION SHOULD OBTAIN FURTHER GUIDANCE FROM THE SCL HEALTH INTEGRITY AND COMPLIANCE OR LEGAL DEPARTMENTS. UPON MAKING HIS OR HER DISCLOSURE, THE INTERESTED PERSON WILL LEAVE THE MEETING OR OTHERWISE REMOVE HIM OR HERSELF FROM THE DELIBERATIONS OR OTHER DECISION-MAKING PROCESS UNTIL SUCH TIME AS A DETERMINATION IS REACHED. IF A DETERMINATION HAS BEEN MADE THAT NO CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON MAY BE PRESENT AND PARTICIPATE IN THE DELIBERATION REGARDING THE TRANSACTION OR ARRANGEMENT. HOWEVER, IF AN INTERESTED PERSON HAS BEEN DETERMINED TO HAVE A CONFLICT OF INTEREST, HE OR SHE MAY NOT PARTICIPATE IN THE DELIBERATION OR DECISION REGARDING THE TRANSACTION OR ARRANGEMENT; BE PRESENT DURING THE DELIBERATION OR DECISION-MAKING; OR BE ALLOWED TO MAKE A PRESENTATION PRIOR TO THE DELIBERATION AND DECISION-MAKING ACTIVITIES. WHEN AN INTERESTED PERSON HAS A CONFLICT OF INTEREST, THE DECISION-MAKER/DECISION-MAKING BODY CONSIDERING THE TRANSACTION OR ARRANGEMENT WILL TAKE REASONABLE MEASURES, PRIOR TO APPROVING OR ENTERING INTO THE TRANSACTION OR ARRANGEMENT, TO ENSURE THAT THE PROPOSAL IS IN SCL HEALTH'S BEST INTERESTS. THE PROPOSED TRANSACTION OR ARRANGEMENT MAY PROCEED IF THE DECISION-MAKER/DECISION-MAKING BODY, AFTER HAVING BEEN FULLY INFORMED OF THE MATERIAL FACTS ESTABLISHING THE CONFLICT OF INTEREST, DETERMINES THAT THE TRANSACTION OR ARRANGEMENT IS IN SCL HEALTH'S BEST INTERESTS AND IS FAIR AND REASONABLE. A MAJORITY VOTE OF THE DISINTERESTED DECISION-MAKERS IS REQUIRED WHEN A DETERMINATION IS MADE BY A BOARD, COMMITTEE OR OTHER DECISION-MAKING BODY. MANAGEMENT OF POTENTIAL CONFLICTS IS DONE BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER AND/OR CARE SITE COMPLIANCE AND PRIVACY OFFICERS AND REPORTED ANNUALLY TO THE CARE SITE LEADERSHIP COMMITTEES AND/OR EXECUTIVE INTEGRITY AND COMPLIANCE COMMITTEE, THE AUDIT COMMITTEE, ORGANIZATIONAL INTEGRITY AND COMPLIANCE COMMITTEE OF THE SCL HEALTH BOARD OF DIRECTORS. ANY REPORTED CONFLICTS OR POTENTIAL CONFLICTS WILL ALSO BE REPORTED TO AND REVIEWED BY THE SCL HEALTH TAX DIRECTOR FOR COMPLIANCE WITH THE FORM 990 TAX RETURN. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S OFFICERS AND SENIOR MANAGEMENT ARE PAID BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH). COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SCL HEALTH BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 AVAILABILITY OF GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THE ORGANIZATION MAKES ITS CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS, AND GOVERNING DOCUMENTS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: ADJUSTMENT TO JOINT VENTURE INCOME -19,521. EQUITY TRANSFER - FUND NEGATIVE CASH BALANCES IN PHYSICIAN CLINICS -10,400,000. EQUITY TRANSFER - INTEREST EXPENSE IN EXCESS OF INTEREST INCOME -625,478. FORM 990, PART XI: ST. JAMES HEALTHCARE IS RELATED TO ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC, A SINGLE MEMBER LIMITED LIABILITY COMPANY OWNED BY A RELATED ORGANIZATION, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC IS A GROUP OF PHYSICIAN CLINICS THAT PROVIDE PROFESSIONAL SERVICES TO THE ST. JAMES HEALTHCARE COMMUNITY AND SUPPORTS THE MISSION OF ST. JAMES HEALTHCARE. ALTHOUGH ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC IS NOT OWNED DIRECTLY BY ST. JAMES HEALTHCARE, ST. JAMES HEALTHCARE IS REQUIRED TO FUND ALL OPERATING LOSSES OF ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC THROUGH EQUITY TRANSFERS TO SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. IN 2016, LOSSES RELATED TO THE PHYSICIAN PRACTICES WERE $5,146,236. 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