2017-11-15T20:16:45-06:00 2016-12-31 HOLTHOUSE CARLIN & VAN TRIGT LLP 3011 TOWNSGATE ROAD SUITE 400 WESTLAKE VILLAGE CA 91361 990 2016-01-01 741393060 KNAPP MEDICAL CENTER % GLORIA MONTALVO KNAP 9569695112 1401 E 8TH STREET - PO BOX 1110 WESLACO TX 78596 MICHAEL HEATHER CFO (PHF) 2017-11-15 true ROBIN M PAULE P00358939 8053748555 172.13.234.0 95206420173195000017 2017-11-15 P AC144D2C5944885D7D87D465B4329167CD393E1C D0B7512D8211446A79798A7359B3DA21E2768048 2016 2017-02-10 21:41:12Z MICHAEL HEATHER 1401 E 8TH STREET WESLACO TX 78596 159728207 false X WWW.KNAPPMED.ORG X 1962 TX KNAPP MEDICAL CENTER USHERS IN NEW LIFE, MENDS BROKEN BODIES AND PROVIDES DIGNIFIED END OF LIFE CARE, ALWAYS STRIVING FOR CONSISTENT EXCELLENCE, EVERY PATIENT, EVERY TIME. 4 3 970 220 0 4185469 3385224 150381185 154398973 27938 53608 1977774 1890402 156572366 159728207 0 0 0 0 48071642 54814848 0 0 0 114870545 117154238 162942187 171969086 -6369821 -12240879 141434863 97650399 102475222 71536462 38959641 26113937 X KNAPP MEDICAL CENTER USHERS IN NEW LIFE, MENDS BROKEN BODIES AND PROVIDES DIGNIFIED END OF LIFE CARE, ALWAYS STRIVING FOR CONSISTENT EXCELLENCE, EVERY PATIENT, EVERY TIME TO SERVE THE HEALTHCARE NEEDS OF OUR COMMUNITY, KNAPP VALUES UNSURPASSED CARE AND CARING, APPROPRIATE CLINICALLY ADVANCED SERVICES, RESPECT AND DIGNITY TOWARD ALL, A TEAMWORK ENVIRONMENT, AND EFFICIENT USE OF RESOURCES. false false 157327884 156289375 KNAPP MEDICAL CENTER IS A NOT-FOR-PROFIT, ACUTE CARE HOSPITAL IN SOUTH TEXAS PROVIDING EXCEPTIONAL HEALTHCARE SERVICES TO RESIDENTS OF THE RIO GRANDE VALLEY. DURING THIS REPORTING PERIOD, KNAPP MEDICAL CENTER HAD 8,523 ADMISSIONS, 35,177 EMERGENCY ROOM VISITS, 1,578 DELIVERIES, AND 4,171 SURGERIES. 157327884 true true false true false false false false false false true true false true true true false true false false false false false false false false true true false false true false false false false false false false false false false false false true true true true false false true 350 0 true 970 true false false false false false false false false false false X 4 3 false true false false true true true true true false false false true true true true true true true false TX X GLORIA MONTALVO 9569695260 1401 E 8TH STREET WESLACO TX 78596 X KAVITHA BHATIA MD DIRECTOR 2.0 0.0 X 0 0 0 EUGENE HERNANDEZ DIRECTOR 2.0 0.0 X 0 0 0 WILLIAM RUH DIRECTOR 2.0 0.0 X 0 0 0 DAVID THORSON DIRECTOR 2.0 0.0 X 0 0 0 PREM REDDY MD CHAIRMAN/PRESIDENT/CEO 2.0 0.0 X 0 0 0 TROY SCHELL SECRETARY AND GENERAL COUNSEL 2.0 0.0 X 0 0 0 MICHAEL HEATHER CFO (PHF) 2.0 0.0 X 0 0 0 MIKE SARIAN CHAIR, PRESIDENT, AND CEO 2.0 0.0 X 0 0 0 ANNA T HINOJOSA CNO 40.0 0.0 X 181562 0 5675 DINAH L GONZALEZ FORMER ADMIN/CFO 40.0 2.0 X 287774 0 8132 RENE LOPEZ ADMINISTRATOR/CEO 40.0 0.0 X 278495 0 12585 DAVID GLASSBURN CFO (REGIONAL) 16.0 0.0 X 230797 0 0 EMMETT CRAIG REGIONAL HR DIRECTOR 40.0 0.0 X 168035 0 13917 CLAUDIA SANDER DIRECTOR - PHARMACY 40.0 0.0 X 169350 0 9758 MADELENE RAMOS RN 40.0 0.0 X 161323 0 10571 CESAR ORTEGA PHARMACIST 40.0 0.0 X 155257 0 13917 FOMBIN L FONGU PHARMACIST 40.0 0.0 X 155856 0 0 1788449 0 74555 57 false true true PRIME HEALTHCARE MANAGEMENT II INC 3300 E GUASTI ROAD 3RD FLOOR ONTARIO CA 91761 MANAGEMENT 1273623 McKesson Corp 1220 Sentac DRIVE CARROLLTON TX 75006 COMPUTER SERVICES 4644453 Northstar Anesthesia PA 6225 N State Hwy 161 STE 200 IRVING TX 75038 Anesthesia 2307852 JACOB WHITE CONSTRUCTION COMPANY 2000 W PARKWOOD SUITE 100 FRIENDSWOOD TX 77546 CONSTRUCTION 2512245 BIO-MED SERVICES INC 3300 E GUASTI ROAD 3RD FLOOR ONTARIO CA 91761 BIO-MEDICAL SERVICES 1706183 76 X 3385224 3385224 NET PATIENT SERVICE REVENUE 621500 153841641 153841641 RENTAL INCOME 531390 557332 557332 154398973 53608 53608 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CAFETERIA/VENDING 900099 575236 575236 PURCHASE DISCOUNTS 900099 82398 82398 EDUCATION SERVICES 900099 49201 49201 1183567 1183567 1890402 159728207 156289375 53608 0 0 0 0 774223 658090 116133 0 37545979 31969172 5576807 0 347708 295944 51764 12624706 10744954 1879752 3522232 2999077 523155 5773623 4907580 866043 412675 350774 61901 172706 146800 25906 0 0 0 12032802 10234443 1798359 335671 285358 50313 369184 313950 55234 0 0 0 93900 79815 14085 0 0 1263112 1073645 189467 0 6239900 5317210 922690 0 1920144 1633115 287029 MEDICAL SUPPLIES 17083834 17083834 BAD DEBT EXPENSE 56386708 56386708 MAINTENANCE AND REPAIRS 2294356 1951906 342450 FOOD EXPENSE 979304 832431 146873 11796319 10063078 1733241 171969086 157327884 14641202 0 33394214 3745377 0 0 0 0 19602184 17308963 0 0 0 0 0 0 3014922 2210718 5941795 577975 59037486 15906182 41042935 43131304 0 0 9624958 10072188 0 0 13596766 11657672 15217089 8946202 141434863 97650399 11048472 10142710 0 0 47371 0 43560261 0 0 0 0 0 0 0 0 74467 47819118 61319285 102475222 71536462 X 29334683 16041749 9624958 10072188 0 0 38959641 26113937 141434863 97650399 X -12240879 -604825 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false true 6251 false false false 6251 false PART II-B, LINE 1F AMOUNT REPORTED IN PART II-B, LINE 1F REPRESENTS PORTION OF DUES PAID TO TRADE ASSOCIATIONS THAT IS ATTRIBUTABLE TO LOBBYING ACTIVITES. 4271405 4271405 28220728 7803920 20416808 23171563 8102262 15069301 3373790 0 3373790 43131304 INTEREST IN KMC FOUNDATION 10072188 F 10072188 DUE FROM MEDICARE 8946202 8946202 0 DUE TO AFFILIATES 56103804 INTEREST RATE SWAP AGREEMENT 0 OTHER LIABILITIES 3121733 INTEREST PAYABLE 0 IBNR 2064321 LINE OF CREDIT 29427 61319285 X SCHEDULE D, PART X, LINE 2 THE LITERATURE RELATED TO UNCERTAIN TAX POSITIONS PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PROCESS FOR ACCOUNTING FOR UNCERTAIN TAX POSITIONS AND ALSO PROVIDES GUIDANCE ON VARIOUS RELATED MATTERS SUCH AS DERECOGNITION, INTEREST, PENALTIES AND DISCLOSURES REQUIRED. THE COMPANY DOES NOT HAVE ANY ENTITY LEVEL UNCERTAIN TAX POSITIONS. true true true X true X true true true false true true 710547 710547 0.00610 20244697 13296390 6948307 0.06010 5089431 1950699 3138732 0.02720 26044675 15247089 10797586 0.09340 18776 18776 0.00020 18776 18776 0.00020 26063451 15247089 10816362 0.09360 true 56386708 14096677 30035024 26367927 3667097 X true true 1 1 KNAPP MEDICAL CENTER 1401 E 8TH STREET WESLACO TX 78596 WWW.KNAPPMED.ORG 000480 X X X KNAPP MEDICAL CENTER 1 false false true X X X X X X X X X 16 true false false true X www.knappmed.org/About-Us.aspx X true 17 true www.knappmed.org/About-Us.aspx false true X 100 200. X X X X X true true X X X X true X WWW.KNAPPMED.ORG X X X X true X false X X X X true X false false PART V, SECTION B, LINE 5 THE HOSPITAL FACILITY OBTAINED INPUT FROM KEY STAKEHOLDERS (PERSONS WITH KNOWLEDGE OF OR EXPERTISE IN PUBLIC HEALTH, COMMUNITY MEMBERS WHO REPRESENT THE BROAD INTEREST OF THE COMMUNITY OR PERSONS REPRESENTING VULNERABLE POPULATIONS) IN CONDUCTING ITS MOST RECENT CHNA. THIS INPUT WAS INTENDED TO ASCERTAIN OPINIONS AMONG INDIVIDUALS LIKELY TO BE KNOWLEDGEABLE ABOUT THE COMMUNITY AND INFLUENTIAL OVER THE OPINIONS OF OTHERS ABOUT HEALTH CONCERNS IN THE COMMUNITY. ELECTRONIC SURVEYS WERE DISTRIBUTED TO STAKEHOLDERS REPRESENTING HIDALGO COUNTY. STAKEHOLDERS WERE DETERMINED BASED ON: A) THEIR SPECIALIZED KNOWLEDGE OR EXPERTISE IN PUBLIC HEALTH, B) THEIR INVOLVEMENT WITH UNDERSERVED AND MINORITY POPULATIONS, OR C) THEIR AFFILIATION WITH LOCAL GOVERNMENT, SCHOOLS, AND INDUSTRY. ADDITIONALLY, TELEPHONE INTERVIEWS WERE CONDUCTED WITH FOUR KEY STAKEHOLDERS. A TOTAL OF 16 STAKEHOLDERS PROVIDED INPUT ON THE FOLLOWING ISSUES: - HEALTH AND QUALITY OF LIFE FOR RESIDENTS OF THE PRIMARY COMMUNITY - UNDERSREVED POPULATIONS AND COMMUNITIES OF NEED - BARRIERS TO IMPROVING HEALTH AND QUALITY OF LIFE FOR RESIDENTS OF THE COMMUNITY - OPINIONS REGARDING THE IMPORTANT HEALTH ISSUES THAT AFFECT COMMUNITY RESIDENTS AND THE TYPE OF SERVICES THAT ARE IMPORTANT FOR ADDRESSING THESE ISSUES. THE SURVEY CONSISTED OF A SERIES OF 12 QUESTIONS AND THE TELEPHONE INTERVIEWS CONSISTED OF 14 QUESTIONS. THE KEY STAKEHOLDERS WORKED FOR THE FOLLOWING TYPES OF ORGANIZATIONS AND AGENCIES: - KNAPP MEDICAL CENTER - SOCIAL SERVICE AGENCIES AND NONPROFIT ORGANIZATIONS - LOCAL SCHOOL SYSTEMS AND UNIVERSITIES - OTHER MEDICAL PROVIDERS - LOCAL ELECTED OFFICIALS AND GOVERNMENTAL AGENCIES - LOCAL BUSINESSES - PUBLIC HEALTH AGENCIES PART V, SECTION B, LINE 13 STATE REGULATIONS ARE ALSO USED TO DETERMINE AMOUNTS CHARGED TO PATIENTS. PART V, SECTION B, LINE 11 Health needs were identified based on information gathered and analyzed through the 2016 CHNA conducted by KNAPP Medical Center. Using findings obtained through the collection of primary and secondary data, the Medical Center completed an analysis of these inputs to identify community health needs. The following data was analyzed to identify health needs for the community: Leading Causes of Death Leading causes of death for the community and the death rates for the leading causes of death for each county within the Medical Centers CHNA community were compared to U.S. adjusted death rates. Causes of death in which the county rate compared unfavorably to the U.S. adjusted death rate resulted in a health need for the Medical Centers CHNA community. Health Outcomes and Factors An analysis of the County Health Rankings health outcomes and factors data was prepared for each county within Knapps CHNA community. County rates and measurements for health behaviors, clinical care, social and economic factors and the physical environment were compared to state benchmarks. County rankings in which the county rate compared unfavorably (by greater than 30% of the national benchmark) resulted in an identified health need. The indicators falling within the least favorable quartile from the Community Health Status Indicators (CHSI) resulted in an identified health need. Primary Data Health needs identified through key informant interviews were included as health needs. Needs for vulnerable populations were separately reported on the analysis in order to facilitate the prioritization process. Health Needs of Vulnerable Populations Health needs of vulnerable populations were included for ranking purposes. THE FOLLOWING HEALTH NEEDS WERE IDENTIFIED AS THE MOST SIGNIFICANT HEALTH NEEDS FOR THE COMMUNITY: - LACK OF PRIMARY CARE PHYSICIANS - POVERTY/CHILDREN IN POVERTY - LACK OF MENTAL HEALTH PROVIDERS - HEALTHY BEHAVIORS/LIFESTYLE CHANGES - ADULT OBESITY - UNINSURED - LIMITED ACCESS TO HEALTH FOODS - HIGH COST OF HEALTH CARE - DIABETES - SAFE/AFFORDABLE HOUSING - PHYSICAL INACTIVITY THESE NEEDS WERE FURTHER REVIEWED AND PRIORITIZED DURING THE PREPARATION OF THE UPDATED IMPLEMENTATION PLAN. 6 KNAPP SURGERY CENTER 1402 E 6TH ST WESLACO TX 78596 AMBULATORY SURGERY CENTER KNAPP MEDICAL GROUP - WESLACO CLINIC 1600 N WESTGATE DR WESLACO TX 78596 CLINIC KNAPP MEDICAL GROUP - ELSA CLINIC 720 E EDINBURG AVE SUITE 100 ELSA TX 78543 CLINIC KNAPP MEDICAL GROUP - DONNA CLINIC 702 E EXPRESSWAY 83 SUITE A-5 DONNA TX 78537 CLINIC KMG GASTROENTEROLOGY PRACTICE 1330 E 6TH STREET SUITE 20 WESLACO TX 78596 PRACTICE KNAPP MEDICAL GROUP WESLACO EAST CLINIC 1401 E 8TH STREET WESLACO TX 78596 CLINIC PART III, LINE 4 The Company's patient accounts receivable are reduced by allowances for contractual adjustments and doubtful accounts. In evaluating the collectability of patient accounts receivable, the Company analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowances for both contractual adjustments and doubtful accounts and provision for bad debts. Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of these allowances. For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), the Company records a provision for doubtful accounts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the expected rates (or the discounted rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. PART III, LINE 8 THE MEDICAL CENTER USES COST REPORT METHODOLOGY, WHICH APPORTIONS ROUTINE COSTS BASED ON MEDICARE OR MEDICAID DAYS TO TOTAL DAYS AND APPORTIONS ANCILLARY COSTS BASED ON PROGRAM CHARGES TO TOTAL CHARGES. PART III, LINE 9B CHARITY ACCOUNTS ARE THOSE WHICH HAVE EXHAUSTED THEIR RESOURCES, OR DID NOT QUALIFY FOR THIRD-PARTY ASSISTANCE, AND/OR GUARANTOR DOES NOT HAVE RESOURCES TO PAY THE ACCOUNT. GUARANTOR MUST COMPLETE A MONTHLY BUDGET SHEET; THEY WILL ASSIST TO DETERMINE ELIGIBILITY FOR CHARITY CARE. NEEDS ASSESSMENT THE HEALTH CARE NEEDS OF THE COMMUNITIES SERVED BY KNAPP MEDICAL CENTER ARE ASSESSED IN A VARIETY OF WAYS INCLUDING DIRECT INPUT FROM THE COMMUNITY DURING COMMUNITY EVENTS AND TELEPHONE SURVEYS. PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE PATIENTS AND/OR FAMILY MEMBERS ARE INFORMED OF THE CHARITY CARE PROGRAM AT TIME OF REGISTRATION VIA THE PATIENT INFORMATION HANDBOOK. THERE ARE SIGNS POSTED IN PATIENT ACCESS AREAS DENOTING THE CHARITY CARE POLICY. ALSO, THE CHARITY CARE POLICY AND GUIDELINES ARE ADVERTISED YEARLY IN LOCAL NEWSPAPERS. COMMUNITY INFORMATION THE PRIMARY SERVICE AREA FOR KNAPP MEDICAL CENTER ENCOMPASSES AN ARRAY OF DIFFERENT TOWNS AND CITIES IN WHAT IS CONSIDERED THE MID-VALLEY AREA. EACH COMMUNITY HAS ITS OWN DISTINCT CULTURE, FINANCIAL AND SOCIO-ECONOMIC DEMOGRAPHICS. IN GENERAL, THE OVERALL AREA IS LOCATED IN EASTERN HIDALGO COUNTY DEEP IN SOUTH TEXAS. THIS AREA IS PREDOMINATELY HISPANIC, WITH A HIGH SPANISH SPEAKING POPULATION, HIGH ILLITERACY RATE, HIGH PREVALENCE OF DIABETES, HIGH BIRTH RATES, AND HIGH UNINSURED AND UNDERINSURED INDIVIDUALS WHO LACK A MEDICAL HOME. COMMUNITY BUILDING ACTIVITIES SINCE KNAPP MEDICAL CENTER IS LOCATED IN A MEDICALLY UNDERSERVED AREA (MUA), IT IS IMPORTANT TO RECRUIT NEEDED PHYSICIANS TO OUR AREA. EMERGENCY RESPONSE IS AN ONGOING EFFORT ON THE PART OF THE HOSPITAL. KNAPP WORKS CLOSELY WITH THE DIRECTOR OF HOMELAND SECURITY FOR THE CITIES OF WESLACO AND DONNA AND PARTNERS WITH OTHER AREA AGENCIES (HIDALGO COUNTY, POLICE, FIRE, EMS, ETC.) TO ENSURE THAT EVERYONE UNDERSTANDS PROCESSES AND PROCEDURES IN THE EVENT OF A REAL COMMUNITY-WIDE EMERGENCY DUE TO A NATURAL DISASTER OR MAN-MADE INCIDENT. KNAPP PARTICIPATED IN THE DARE TO PREPARE DISASTER FAIRS THAT WERE ORGANIZED BY THE HIDALGO COUNTY HEALTH DEPARTMENT. SIX FAIRS WERE HELD THROUGHOUT HIDALGO COUNTY TO EDUCATE COUNTY RESIDENTS ABOUT DISASTER PREPARATION. KNAPP'S SAFETY DEPARTMENT PARTNERED WITH THE WESLACO POLICE DEPARTMENT FOR KNAPP'S TWO ANNUAL FAIRS DISTRIBUTING INFORMATION ON HOME SAFEGUARDS DURING HURRICANES AND HALLOWEEN SAFETY AWARENESS FOR CHILDREN AND ADULTS. KNAPP SERVES AS A DISTRIBUTION AND TRAINING SITE FOR CAR SEATS PROVIDED THROUGH THE SAFE RIDER PROGRAM OF THE DEPARTMENT OF STATE HEALTH SERVICES TO LOW INCOME FAMILIES WHO HAVE A VEHICLE WITH A WORKING SAFETY BELT. ELIGIBLE FAMILIES MUST TAKE A ONE HOUR TRAINING COURSE TO LEARN THE PROPER USE OF THE CAR SEAT TO KEEP THEIR CHILD SAFE. DURING 2016, KNAPP DISTRIBUTED 71 SEATS. KNAPP IS A TRAINING CENTER FOR THE AMERICAN HEART ASSOCATION'S CERTIFICATION PROGRAMS: BASIC LIFE SUPPORT (BLS), ADVANCED CARDIOVASCULAR LIFE SUPPORT (ACLS), AND PEDIATRIC ADVANCED LIFE SUPPORT (PALS), AND IS FULLY ACCREDITED AS A PROVIDER OF CONTINUING MEDICAL EDUCATION (CME) BY THE TEXAS MEDICAL ASSOCIATION. THE KNAPP WELLNESS PROGRAM OFFERS A SERIES OF LOW-COST LAB SCREENINGS THROUGH THE OUTPATIENT DEPARTMENT. THE KNAPP WOMEN'S HEALTH DEPARTMENT COORDINATES AN ANNUAL BREASTFEEDING CONFERENCE FOR LOCAL WIC EDUCATORS AND OTHER CASE MANAGERS AT KNAPP'S CONFERENCE CENTER AND OF COURSE, KNAPP OFFERS BREAST FEEDING EDUCATION THROUGH THE FAMILY BIRTHING CLASSES. THE KNAPP CONFERENCE CENTER IS FREQUENTLY OFFERED FREE TO NUMEROUS GOVERNMENTAL AND NON-PROFIT ORGANIZATIONS WHO NEED A PLACE TO PROVIDE EDUCATION AND SKILLS TRAINING FOR HEALTH PROFESSIONALS AND THE PUBLIC. KNAPP WORKS WITH PLANNED PARENTHOOD ON A PROJECT CALLED "BRAS ENDING CANCER." PROCEEDS FROM THIS FUNDRAISER PROVIDE VOUCHERS FOR INDIGENT WOMEN NEEDING MAMMOGRAMS. FUNDING IS AVAILABLE FOR FOLLOW UP CARE BUT NO FUNDS WERE AVAILABLE FOR SCREENINGS BEFORE THIS PROGRAM BEGAN. PLANNED PARENTHOOD ISSUES THE AVAILABLE VOUCHERS AND PROVIDES FOLLOW UP TO THE SCREENINGS. THE VOLUNTEER PROGRAM IS A LARGE PART OF KNAPP WITH 146 ADULT VOLUNTEERS AND 74 TEENS AGES 15-18 AS JUNIOR VOLUNTEERS. THE JUNIOR VOLUNTEER PROGRAM ALLOWS TEENS TO VOLUNTEER IN SEVERAL AREAS TO EXPLORE CAREER OPTIONS. EACH SUMMER KNAPP CONDUCTS A SAFE SITTER COURSE TO TRAIN 11-15YR OLDS IN SAFE CHILD CARE PROCEDURES INCLUDING CPR. KNAPP IS A MEMBER OF THE WESLACO AREA CHAMBER OF COMMERCE, RIO GRANDE VALLEY PARTNERSHIP, AND MERCEDES CHAMBER OF COMMERCE. THE HOSPITAL PARTICIPATES IN LEADERSHIP MID VALLEY, SPONSORED BY THE WESLACO AREA CHAMBER, SPONSORING A CLASS MEMBER AND PROVIDING ONE OF THE EDUATIONAL SESSIONS ON LOCAL AND NATIONAL HEALTHCARE SERVICES AND ISSUES. KNAPP ALSO HAS PARTICIPATED IN THE TEXAS SCHOLARS PROGRAM WITH STAFF SPEAKING TO EIGHTH GRADERS ENCOURAGING THEM TO STAY IN SCHOOL AND TAKE CHALLENGING COURSES TO BE BETTER PREPARED FOR JOBS UPON GRADUATION. KNAPP EMPLOYEES SERVE ON THE SOUTH TEXAS COMMUNITY COLLEGE RN AND LVN ADVISORY BOARD, THE UNIVERSITY OF TEXAS AT BROWNSVILLE WORKFORCE DEVELOPMENT FOR HEALTHCARE INFORMATION TECHNOLOGY AND REGIONAL EXTENSION CENTERS, THE RIO GRANDE VALLEY HEALTH INFORMATION EXCHANGE BOARD, SOUTH TEXAS COLLEGE RESPIRATORY THERAPY ADVISORY BOARD, TEXAS STATE TECHNICAL INSTITUTE SURGICAL TECHNOLOGY ADVISORY BOARD AND THE HEALTH INFORMATION TECHNOLOGY ADVISORY COMMITTEE. THE HOSPITAL IS AN OBSERVATION AND CLINICAL SITE FOR STUDENTS WHO ARE WORKING TOWARD BECOMING LICENSED VOCATIONAL NURSES, REGISTERED NURSES, NURSE PRACTITIONERS, DIETITIANS, MEDICAL TECHNOLOGISTS (LAB), LAB TECHNICIANS, TRANSCRIPTIONISTS, HEALTH INFORMATION TECHNICIANS, SOCIAL WORKERS, PHARMACISTS, PHARMACY TECHNICIANS, PHYSICIAN ASSISTANTS, PHYSICIANS, RESPIRATORY THERAPISTS, RADIOLOGIC TECHNOLOGISTS, SONOGRAPHERS, SURGICAL TECHNOLOGISTS, MEDICAL OFFICE ASSISTANTS, MEDICAL ASSISTANTS, EMERGENCY MEDICAL TECHNICIANS, PHYSICAL THERAPY ASSISTANTS, PHLEBOTOMY TECHNICIANS, EKG TECHNICIANS, MEDICAL BILLERS, AND OCCUPATIONAL THERAPY ASSISTANTS. SCHOOL AFFILIATION FOR OBSERVATION AND/OR CLINIC ROTATIONS INCLUDE GALVESTON COLLEGE, KAPLAN COLLEGE, HEALTHWEBCE-EMERGENCY MEDICAL TECHNOLOGY, LAREDO COMMUNITY COLLEGE, NIGHTINGALE'S SCHOOL OF NURSING & TECHNOLOGY, RGV CAREERS - AN INSTITUTE FOR HIGHER LEARNING, SOUTH TEXAS COLLEGE, SOUTH TEXAS HIGH SCHOOL FOR HEALTH PROFESSIONS (MED HIGH), SOUTH TEXAS VO-TECH, TEXAS STATE TECHNICAL COLLEGE, UNIVERSITY OF THE INCARNATE WORD FEIK SCHOOL OF PHARMACY, UNIVERSITY OF TEXAS AT AUSTIN, UNIVERSITY OF TEXAS AT BROWNSVILLE, UNIVERSITY OF TEXAS PAN AMERICAN, VALLEY GRANDE INSTITUTE FOR ACADEMIC STUDIES AND WESLACO INDEPENDENT SCHOOL DISTRICT. IN ADDITION, RESIDENTS (ALREADY PHYSICIANS) WHO ARE WITH THE MCALLEN FAMILY PRACTICE RESIDENCY PROGRAM DO A CLINICAL ROTATION AT KNAPP, AND THE CITY OF WESLACO EMS DEPARTMENT PARTICIPATES IN CLINICAL TRAINING PROGRAMS AT KNAPP. AURORA HOUSE IS A LICENSED SPECIAL CARE FACILITY WHICH PROVIDES A RESIDENCE FOR THOSE NEEDING END-OF-LIFE CARE. KNAPP HOSPICE STAFF CARE FOR PATIENTS AND FAMILIES AT AURORA HOUSE AND ALSO MENTOR NURSING STUDENTS FROM SOUTH TEXAS COLLEGE. THE HOSPICE SOCIAL WORKER ALSO IS A PRECEPTOR FOR SOCIAL WORK STUDENTS FROM THE UNIVERSITY OF TEXAS PAN AMERICAN. KNAPP MEDICAL CENTER'S ANNUAL CHRISTMAS TOY DRIVES PROVIDE TOYS AND BLANKETS FOR CHILDREN WHO ARE IN THE CARE OF CHILD PROTECTIVE SERVICES. IN ADDITION, MANY COMMUNITY CHILDREN IN WESLACO WERE PROVIDED A GIFT AS A RESULT OF THE RAMIRO SALAS TOY DRIVE. SANTA GAVE TOYS AND CANDY ALONG TO CHILDREN LIVING IN A LOW-INCOME NEIGHBORHOOD OUTSIDE THE CITY LIMITS. OTHER INFORMATION KNAPP MEDICAL CENTER HAS AN OPEN MEDICAL STAFF. KNAPP OFFERS A STRONG VOLUNTEER PROGRAM FOR TEENS, COLLEGE STUDENTS NEEDING VOLUNTEER SERVICE IN THEIR FIELD OF STUDY AND RETIREES, WHO OFTEN REMARK THAT THEY RECEIVE MORE FROM VOLUNTEERING THAN WHAT THEY GIVE. LIST OF ALL STATES IN WHICH ORGANIZATION FILES A COMMUNITY BENEFIT REPORT: TEXAS BILLING AND COLLECTIONS NEITHER KNAPP MEDICAL CENTER, NOR THIRD PARTIES AUTHORIZED BY KMC, TAKE ANY ACTIONS UPON NON-PAYMENT FROM A PATIENT BEFORE MAKING A REASONABLE EFFORT TO DETERMINE IF THE PATIENT IS ELIGIBLE FOR THE FACILITY'S FINANCIAL ASSISTANCE POLICY. PERCENT OF TOTAL EXPENSE BAD DEBT EXPENSE OF $56,386,708 WAS INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT WAS SUBTRACTED FROM TOTAL EXPENSE FOR THE CALCULATION OF "PERCENT OF TOTAL EXPENSE" IN THIS COLUMN. PART III, LINE 2 THE AMOUNT REPORTED ON LINE 2 IS BASED ON BAD DEBTS PER THE AUDITED FINANCIAL STATEMENTS. PART III, LINE 3 THE AMOUNT REPORTED IN ITEM 3 IS THE ORGANIZATION'S ESTIMATE OF THE AMOUNT OF BAD DEBT ATTRIBUTABLE TO CHARITY CARE PATIENTS ESTIMATED AT 25% OF LINE 2. AFFILIATED HEALTH CARE SYSTEM ROLES KNAPP MEDICAL CENTER (THE MEDICAL CENTER) OPERATES AN ACUTE CARE HOSPITAL LOCATED IN WESLACO, TEXAS. THE MEDICAL CENTER PRIMARILY EARNS REVENUES BY PROVIDING INPATIENT, OUTPATIENT, EMERGENCY ROOM AND PHYSICIAN SERVICES TO PATIENTS LIVING IN THE MID-RIO GRANDE VALLEY OF SOUTH TEXAS. THE MEDICAL CENTER IS THE SOLE MEMBER OF MID-VALLEY PHYSICIAN'S ASSOCIATION (MVPA), A NONPROFIT ENTITY. ON JULY 1, 2008, THE MEDICAL CENTER PURCHASED THE WESLACO EYE SURGERY CENTER (THE CENTER), A FREESTANDING SURGERY CENTER LOCATED IN WESLACO, TEXAS. THE CENTER PROVIDES AMBULATORY SURGICAL SERVICES TO PATIENTS RESIDING IN WESLACO, TEXAS. IN PRIOR YEARS, APPROXIMATELY 13% OF MEMBERSHIP UNITS WERE OWNED BY AREA PHYSICIANS. DURING 2013, THE MEDICAL CENTER BOUGHT BACK THOSE UNITS AND AS OF 12/31/2013, THE MEDICAL CENTER IS THE SOLE MEMBER OF THE CENTER. IN APRIL 2008, THE MEDICAL CENTER CREATED KNAPP MEDICAL GROUP (THE GROUP), A NONPROFIT ORGANIZATION THAT PROVIDES PHYSICIAN SERVICES. OPERATIONS AT THE GROUP BEGAN IN FEBRUARY 2010. ON 1/1/2013, SOLE MEMBERSHIP OF THE MEDICAL CENTER WAS TRANSFERRED TO PRIME HEALTHCARE FOUNDATION, INC. (PHF). Disclosure pursuant to Revenue Procedure 2015-21: Professional advisors to Prime Healthcare Foundation, Inc., the sole member of the hospital, recently identified that the existing financial assistance policy ("FAP") did not contain every provision required under Treasury Regulations Section 1.501(r)-4 (e.g., excluded providers list) and may not have been consistently available on the hospitals website. These issues were identified by auditors on July 21, 2017 and by legal counsel on August 4, 2017. Efforts have been underway since then to prepare a revised systemwide FAP that meets the requirements of the final regulations as well as applicable state laws for the various hospitals across the Foundation health system. This revised FAP will be presented shortly for review and approval by the governing body at the earliest opportunity and will be translated into languages spoken by significant hospital populations. The revised FAP will be widely publicized, including on the hospitals website, in paper form by mail and in key hospital areas such as admissions and emergency room, through inclusion of information in billing statements, and conspicuous signage at the facility. It was also brought to the attention of management that the FAP, Plain Language Summary, and application form have inadvertently not been consistently posted on the hospitals website. The dates during which this problem existed are not clear. As of November 15, 2017, this has been corrected and the FAP is posted on the hospitals website. Safeguards have been put in place to communicate with responsible personnel and highlight the importance of web access, and the newly-revised FAP will contain an explicit procedural requirement that the policy be posted on the hospitals website. Despite these inadvertent failures, the hospital has consistently had a financial assistance program in effect that is consistent with the intent of Code Section 501(r) and has publicized the availability of charity care and discounted care through a written summary notice provided to all patients (including in languages spoken by significant hospital populations), conspicuous notices posted in the emergency department and admissions office, and notices (including translations) included in billing statements to patients who have not provided proof of insurance. Therefore the hospital does not believe there have been qualifying individuals who were unaware of the program. X X X X X false false false false false false false false false EMMETT CRAIG REGIONAL HR DIRECTOR 156358 0 5000 0 6677 0 0 0 13917 0 181952 0 0 0 CLAUDIA SANDER DIRECTOR - PHARMACY 169350 0 0 0 0 0 0 0 9758 0 179108 0 0 0 MADELENE RAMOS RN 149986 0 10740 0 597 0 0 0 10571 0 171894 0 0 0 CESAR ORTEGA PHARMACIST 155257 0 0 0 0 0 0 0 13917 0 169174 0 0 0 FOMBIN L FONGU PHARMACIST 155856 0 0 0 0 0 0 0 0 0 155856 0 0 0 ANNA T HINOJOSA CNO 164057 0 10000 0 7505 0 0 0 5675 0 187237 0 0 0 DINAH L GONZALEZ FORMER ADMIN/CFO 272968 0 0 0 14806 0 0 0 8132 0 295906 0 0 0 RENE LOPEZ ADMINISTRATOR/CEO 228862 0 38465 0 11168 0 0 0 12585 0 291080 0 0 0 DAVID GLASSBURN CFO (REGIONAL) 230797 0 0 0 0 0 0 0 0 0 230797 0 0 0 METHODS TO ESTABLISH COMPENSATION OF CEO/EXECUTIVE DIRECTOR PART 1, LINE 3 A RELATED ORGANIZATION USES THE FOLLOWING METHODS TO ESTABLISH COMPENSATION: WRITTEN EMPLOYMENT CONTRACT COMPENSATION SURVEY OR STUDY OFFICER COMPENSATION IS ESTABLISHED BY PRIME HEALTHCARE MANAGEMENT INC (PHMI) IN ACCORDANCE WITH A MANAGEMENT AGREEMENT WITH KNAPP MEDICAL CENTER. WRITTEN EMPLOYMENT CONTRACTS ARE FORWARDED TO THE FACILITY ONCE EXECUTED. COMPENSATION SURVEY OR STUDIES ARE UTILIZED. UNRELATED ORGANIZATION COMPENSATION: DAVID GLASSBURN WAS COMPENSATED BY THE UNRELATED ORGANIZATION BELOW: UNRELATED ORGANIZATION NAME: HARLINGEN MEDICAL CENTER ADDRESS: 5501 E EXPRESSWAY 83 HARLINGEN, TEXAS 78550 COMPENSATION TYPE: BASE COMPENSATION COMPENSATION AMOUNT: $230,797 FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE FORM 990. ONCE PREPARED, THE FORMS ARE REVIEWED BY THE ORGANIZATION'S CFO AND OUTSIDE COUNSEL PRIOR TO FILING AND THEN THE RETURNS ARE PROVIDED TO THE BOARD FOR THEIR REVIEW CONTEMPORANEOUSLY WITH THEIR FILING. FORM 990, PART VI, SECTION B, QUESTION 12C THE CONFLICT OF INTEREST POLICY IS MONITORED BY THE REVIEW OF QUESTIONNAIRES THAT OFFICERS, DIRECTORS, AND KEY EMPLOYEES COMPLETE ANNUALLY. FORM 990, PART VI, SECTION B, LINES 15A & 15B A RELATED ORGANIZATION USES THE FOLLOWING METHODS TO ESTABLISH COMPENSATION: WRITTEN EMPLOYMENT CONTRACT COMPENSATION SURVEY OR STUDY OFFICER COMPENSATION IS ESTABLISHED BY PRIME HEALTHCARE MANAGEMENT INC (PHMI) IN ACCORDANCE WITH A MANAGEMENT AGREEMENT WITH KNAPP MEDICAL CENTER. WRITTEN EMPLOYMENT CONTRACTS ARE FORWARDED TO THE FACILITY ONCE EXECUTED. COMPENSATION SURVEY OR STUDIES ARE UTILIZED. FORM 990, PART VI, QUESTION 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 CHANGE IN INTEREST IN KCCF $ 447,230 CHANGE IN FAIR VALUE SWAP - $ 1,052,055 ------------ OTHER CHANGES TO NET ASSETS - $ 604,825 FORM 990, PART VI, SECTION A, LINE 6 ON JANUARY 1, 2013, SOLE CORPORATE CONTROLLING MEMBERSHIP OF THE MEDICAL CENTER WAS TRANSFERRED TO PRIME HEALTHCARE FOUNDATION, INC. (PHF). FORM 990, PART VI, SECTION A, LINE 7A PRIME HEALTHCARE FOUNDATION, INC. (PHF) HAS THE POWER TO APPOINT THE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B THE ORGANIZATION'S GOVERNING BOARD IS AN ADVISORY BOARD THEREFORE THE GOVERNING DECISIONS ARE ULTIMATELY MADE BY PRIME HEALTHCARE FOUNDATION, INC. (PHF) AS THE CORPORATE CONTROLLING MEMBER. FORM 990, PART VI, SECTION A, LINE 3 EFFECTIVE JANUARY 1, 2013, THE ORGANIZATION IS BEING MANAGED BY PRIME HEALTHCARE MANAGEMENT, INC., AN AFFILIATE OF PRIME HEALTHCARE FOUNDATION, INC. (PHF). FORM 990, PART IV, LINE 20B THE AUDITED FINANCIAL STATEMENTS THAT ARE ATTACHED TO THIS RETURN INCLUDE PRIME HEALTHCARE FOUNDATION INC. AND ITS SUBSIDIARIES, INCLUDING KNAPP MEDICAL CENTER AND KNAPP MEDICAL CENTER ASC, LLC. THE OTHER ENTITIES INCLUDED IN THE AUDITED FINANCIAL STATEMENTS ARE NOT INCLUDED IN THIS RETURN AS THEY ARE SEPARATE ENTITIES FOR TAX PURPOSES THAT FILE THEIR OWN TAX RETURNS. KNAPP MEDICAL CENTER ASC LLC 1401 E 8TH STREET WESLACO TX 78596 262887948 AMBULATORY SU TX -354858 567346 KMC MID-VALLEY PHYSICIANS ASSOCIATION 1401 E 8TH STREET WESLACO TX 78596 742755150 SUPPORT TX 501(C)(3) 11A KMC true KNAPP MEDICAL GROUP 1402 E 8TH ST WESLACO TX 78596 271619835 HEALTHCARE TX 501(C)(3) 3 KMC true PRIME HEALTHCARE FOUNDATION INC 16850 BEAR VALLEY ROAD SUITE 1600 VICTORVILLE CA 92395 208065139 HOSPITAL/MGMT DE 501(C)(3) 3 NA false false false false false false false false false false false false false false false false true false false false KNAPP MEDICAL GROUP P 3602885 CASH TRANSFER