2017-11-14T21:11:35-06:00 2016-12-31 ERNST & YOUNG US LLP 155 N WACKER DRIVE 20 FLOOR CHICAGO IL 60606 990 2016-01-01 350877574 Elkhart General Hospital Inc % JEFFREY COSTELLO ELKH 5745233208 600 EAST BLVD ELKHART IN 46514 JEFFREY COSTELLO CFO 5746473549 2017-11-13 true JACOB J ZEHNDER P01564049 3128792702 73.247.118.182 36964520173185000075 2017-11-14 P B4C2A451C92BF714E340DC7BBD04F1217FFA4BFD AA66391A3EB419599D985CB7941CE455993313B6 2016 2017-02-10 21:41:12Z CARL RISK 600 EAST BLVD ELKHART IN 46514 303700775 false X www.beaconhealthsystem.org X 1909 IN SEE SCHEDULE O 10 10 2145 208 840774 -111828 338666 288036 295797315 296397005 -77989 -419879 6996736 7010038 303054728 303275200 392456 399290 0 0 102871684 103739220 0 0 0 172393722 171371793 275657862 275510303 27396866 27764897 281288952 290050693 154438488 142289743 126850464 147760950 X TO CREATE A HEALTHIER COMMUNITY BY BEING A PREMIER PROVIDER OF HEALTHCARE; PROMOTING THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES BY PROVIDING EDUCATION THAT MAY AID IN DETECTION AND PREVENTION OF DISEASE; CONDUCTING OUR ACTIVITIES WITH COMPASSION AND RESPECT; ACTING WITH RECOGNITION THAT HEALTH IS HOLISTIC AND EMBRACES THE BODY, MIND, AND SPIRIT; SEEKING AND PARTNERING WITH THOSE WHO SHARE OUR MISSION; CONTINUOUSLY IMPROVING THE QUALITY AND COST-EFFECTIVENESS OF OUR SERVICES; MAINTAINING THE FINANCIAL VIABILITY OF THE HOSPITAL WHILE CONTINUING OUR CHARITABLE ROLE IN THE COMMUNITY. false false 239823027 399290 299922491 Elkhart General Hospital, Inc. has been providing comprehensive, advanced medical care primarily to Elkhart County and other contiguous counties in north central Indiana and south central Michigan for over 100 years. Elkhart General Hospital, Inc. consists of a 365-bed licensed hospital that provides services without regard to patient race, religion, national origin, economic status, or ability to pay. During 2016, the Hospital admitted 10,887 patients for a total of 44,363 inpatient days. Inpatient units consisted of medical, post-surgical, oncology, pediatric, critical care, cardiac care, behavioral health, rehabilitation, obstetric, and nursery intensive care. The Hospital also provided services for 198,467 of outpatient visits including 3,730 outpatient surgeries, 65,265 emergency room visits, and 129,472 visits for diagnostic services. During 2016, the unreimbursed cost of free or discounted medical care provided to patients that were deemed indigent under state, county, or internal guidelines was $5,016,900. Elkhart General Hospital also provided $34,001,773 in unreimbursed care to the elderly covered by Medicare, and $1,732,009 in Charity Care. Part of the mission of Elkhart General Hospital is to provide for a healthier community through medication assistance programs and community health education, the hospital incurred $660,000 in unbilled services to the poor and broader community. 239823027 true true false true false false false false false true true false false false true true false true false false true false false false false false true true true true true true false false false false false false false false false false false false false false false true true true false false true 179 0 true 2145 true true true false false false false false false false false false X 10 10 false false false false true true true true true false false true true true true true true false false true true IN X JEFFREY COSTELLO 5746473549 615 N MICHIGAN STREET SOUTH BEND IN 46601 Pam Hluchota Vice Chair thru 4/2016 2.0 0.0 X X 1843 0 0 Wilbur Bontrager Chairman 2.0 0.0 X X 0 0 0 Todd Martin VOL BOARD MEMBER thru 5/2016 2.0 0.0 X 1843 0 0 Bruce Newswanger DO VOLUNTEER BOARD MEMBER 2.0 0.0 X 197 0 0 Matthew Pletcher Volunteer Board Member 2.0 0.0 X X 0 0 0 Gregory Losasso President thru 9/2016 40.0 0.0 X X 710515 0 137257 Laura Munkel MD Physician thru 9/2016 2.0 40.0 X 0 310122 34422 Leonard Kibiloski MD Volunteer Board Member 2.0 0.0 X 149 0 0 Kelly Puster MD Volunteer Board Member 2.0 0.0 X 0 0 0 Alex Strati Jr Vice Chair 2.0 0.0 X X 3959 0 0 Tim Shelly Sec./Treasurer 2.0 0.0 X X 149 0 0 JOHN DEPUTY VOLUNTEER BOARD MEMBER 2.0 0.0 X 0 0 0 PETER FRETZ MD VOL BOARD MEMBER thru 4/2016 2.0 0.0 X 0 0 0 ANITA KNUDTSON VOL BOARD MEMBER thur 4/2016 2.0 0.0 X 149 0 0 SAMIR PATEL MD VOLUNTEER BOARD MEMBER 2.0 0.0 X 0 0 0 AMISH SHAH VOLUNTEER BOARD MEMBER 2.0 0.0 X 149 0 0 Jeffrey P Costello CFO/Asst. Treasurer 2.0 46.0 X 0 575784 176531 Phillip A Newbold CEO 2.0 46.0 X 0 1206427 172549 KREG R GRUBER PRESIDENT 6.0 34.0 X 0 647771 186157 Carl W Risk II President 40.0 0.0 X 124434 0 5979 GENEVIEVE A LANKOWICZ VP OF MEDICAL AFFAIRS 40.0 0.0 X 316298 0 11584 KARRA L HEGGEN VP OF NURSING 40.0 0.0 X 280705 0 11480 CINDIE L MCPHIE VP OF OPERATIONS 40.0 0.0 X 204213 0 15080 LIANG Q WANG SENIOR PHYSICIST 40.0 0.0 X 235314 0 29293 Maria A Behr Director of Pharmacy 40.0 0.0 X 176048 0 16156 2055965 2740104 796488 63 false true false South Bend Medical Foundation 530 North Lafayette Blvd SOUTH BEND IN 46601 Lab Services 12286262 Northern Indiana Anesthesia Service 600 East Bvld ELKHART IN 46514 Anesthesia Services 4223871 Accretive Health Inc 401 N Michigan Ave Suite 2700 CHICAGO IL 60611 CONTRACT SERVICES 3345964 POWER CONSTRUCTION 8750 W BRYN MAWR CHICAGO IL 60631 CONSTRUCTION SERVICE 4135467 APOGEE PHYSICIANS 2525 E CAMELBACK RD PHOENIX AZ 85016 PHYSICIAN SERVICES 2494242 54 259903 24133 4000 288036 PATIENT SERVICE REVENUE 622110 290794901 290794901 OUTPATIENT PHARMACY 446110 4687501 232392 4455109 RENT FROM RELATED PARTIES 622110 888402 888402 MEDICAL EDUCATION 611710 26201 26201 296397005 16250 16250 0 0 1643548 425575 1217973 0 1217973 1217973 -436129 -436129 -436129 -436129 0 0 0 0 0 0 0 0 0 REBATES AND DISCOUNTS 622110 564210 564210 CAFETERIA 722514 1093987 1093987 INTERCOMPANY CHARGEBACKS-MICHIANA LINEN 812331 2190216 1851983 338233 1943652 1673503 270149 5792065 303275200 295234990 840774 6911400 X 287281 287281 112009 112009 0 0 978183 978183 0 77928672 65118328 12810344 5928819 5001711 927108 13281170 10997377 2283793 5622376 4649705 972671 6783033 5609568 1173465 61210 61210 129900 129900 3025 3025 0 529839 529839 34287343 28349711 5937632 17377 14371 3006 2634544 2176316 458228 2463 2037 426 0 3339420 2729056 610364 221056 182813 38243 0 185617 153505 32112 1308391 1082039 226352 0 16043377 13260479 2782898 1694777 1401581 293196 PATIENT SUPPLIES, DRUGS 50729793 50729793 0 0 BAD DEBT EXPENSE 21982823 21982823 0 0 HOSPITAL ASSESSMENT FEE 10827778 8954572 1873206 0 CORPORATE ALLOCATION FEES 19325394 15982101 3343293 0 1264633 1045851 218782 275510303 239823027 35687276 0 9585 9585 12236716 11447989 0 0 47380495 58737753 0 0 0 0 100486 81156 7899826 7966066 1334925 1528330 359261476 160503171 199393877 198758305 5820892 6099617 395984 414286 662650 488734 2536226 2536226 3517290 1982646 281288952 290050693 26452649 21244549 0 0 0 0 80330770 76837940 0 0 0 0 0 0 0 0 47655069 44207254 154438488 142289743 X 120633589 141247047 5816875 6113903 400000 400000 126850464 147760950 281288952 290050693 X 27764897 297027 -7151438 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 3025 3025 false Part II-B, Line 1i Elkhart General Hospital pays the dues TO THE FOLLOWING ORGANIZATIONS FOR WHICH THE PERCENTAGE LISTED WAS ATTRIBUTED TO LOBBYING: GREATER ELKHART CHAMBER OF COMMERCE - 2.5% TRAUMA CENTER ASSOCIATION OF AMERICA - 29% WHEN UNABLE TO ASCERTAIN ALLOCATION OF DUES ATTRIBUTED TO LOBBYING A CONSERVATIVE ESTIMATE OF 22% IS APPLIED BASED ON THE INDIANA HOSPITAL ASSOCIATION PERCENTAGE. 32772897 9605449 850963 2645907 178250 36289 40368863 36228784 4093832 -1549515 5789367 174135 36702 32772897 33921099 2833644 330764 714487 125000 17236 36228784 29895939 2180336 2985268 984717 125000 30727 33921099 26862451 1501904 2551948 923860 69000 27504 29895939 0.76980 0.01650 0.21370 false true true 3943259 3943259 246861061 98818908 148042153 101997807 61684262 40313545 6459348 6459348 198758305 0 ACCRUED PENSION LIABILITY 43980155 OTHER LIABILITIES 227099 44207254 X SCHEDULE D, PART V, LINE 4 Permanently restricted net assets have been restricted by donors to be maintained by the Hospital and/or it's related entities, in perpetuity. In accordance with the restrictions, a majority of the investment income and investment gains or losses from permanently restricted net assets are to be reinvested with the principal and are therefore temporarily restricted. A specified portion of income earned by the temporarily restricted net assests is released from restriction and used for operations each year. The Hospital has one endowment fund established for patient care purposes with a value of $6,513,903. The Hospital has established investment and spending policies related to the appreciation of this endowment. Should the underlying assets fall below this targeted amount the Hospital pursues action consistent with established policies to return the endowment to the targeted amount. Based on these policies, endowment amounts are temporarily restricted until Board authorized release of funds for patient care purposes are approved. As a member organization of Beacon Health System, the Hospital also can benefit from endowment funds held by related entities, the value of which was $33,854,961 at 12/31/2016. In 2016, the Hospital received $0 from the related party endowment funds. FIN 48 DISCLOSURE ASC 740, Income Taxes, requires that realization of an uncertain income tax position is more likely than not (i.e., greater than 50% likelihood of receiving a benefit) before it is recognized in the financial statements as the amount most likely to be realized assuming a review by tax authorities having all relevant information and applying current conventions. This interpretation also clarifies the financial statement classification of tax-related penalties and interest and sets forth new disclosures regarding unrecognized tax benefits. No amount was recorded for the years ended December 31, 2016 or 2015. Central America and the Caribbean Investments 414286 414286 414286 false false true false false false true true X true X true X true true true false true true 1724368 1724368 0.00680 46108566 32424924 13683642 0.05400 47832934 32424924 15408010 0.06080 991252 106471 884781 0.00350 736101 22405 713696 0.00280 1727353 128876 1598477 0.00630 49560287 32553800 17006487 0.06710 26379 26379 0.00010 188456 188456 0.00070 214835 214835 0.00080 true 6163984 3081992 57734620 85318118 -27583498 X true true RIVERPOINTE SURG CTR SURGERIES 0.4 0.6 Wakarusa Med Clin Medical Clinic Building 0.42 0.58 WaNee Walk-in Clinic Medical Clinic 0.5 0.5 1 1 Elkhart General Hospital Inc 600 East Blvd Elkhart IN 46514 www.beaconhealthsystem.org 16-005017-1 X X X Elkhart General Hospital Inc 1 false false true X X X X X X X X X 15 true true false true X beaconhealthsystem.org/about-us X X true 15 true beaconhealthsystem.org/about-us/publications false true X 200. 350. X X X true true X X X true X See Section C for full URL X See Section C for full URL X See Section C for full URL X X X X X X true X false X X X X true X false false PART V, SECTION B, LINE 5 During 2015, Beacon Health System conducted a joint Community Health Needs Assessment (CHNA) for the approximate 200,000 residents of Elkhart County and the approximate 267,000 residents of St. Joseph County, which reflect the primary market service areas for Elkhart General Hospital, and Memorial Hospital of South Bend, respectively. In late 2014 through February 2015, dialogue on the CHNA planning and coordination occurred among Beacon Health System executives and the Community Benefit staff from both Elkhart General Hospital and Memorial Hospital of South Bend. It was agreed that a third party consultant Holleran Consulting from Lancaster, Pennsylvania would serve as data gathering entity for both hospitals. The CHNA process included a compilation and review of secondary data; a key informant online survey (n=60) on input of community health priorities and barriers to health; a community-based online survey from community members at large (n=510) regarding perceptions of health priorities in Elkhart County; and community leader dialogue on prioritizing identified health needs. Community engagement and feedback were integral to the integrity and validity of the Elkhart County CHNA process. Throughout the process, input was actively solicited and secured from persons who hold a broad knowledge of and represent the broad interests of Elkhart County, including public health; minority, cultural, and underserved populations; from the community members at large; and from the medical and health services fields. Dialogue with key community health stakeholders, philanthropic funders, and members of the healthcare field helped identify health priorities, current dedicated resources for community health needs, and resource constraints. Through March 2015, the first stage of assessment was engaged, and sought to gather input from key informants who hold a broad knowledge of and represent the broad interests of Elkhart County. The key informants were solicited from multiple sectors of Elkhart County, including the public health, education, minority, faith, cultural, economic development, non-profit, child and youth, health care, public health, medical care, emergency and relief services, and private sectors. Organizations invited to provide input included the following: Elkhart General Hospital, Child Abuse Prevention Services, Center for Healing and Hope, Elkhart County Council on Aging, Elkhart County Health Department, SPA Ministries, Beacon Medical Group, Elkhart County United Way, Emergency Physicians Inc., Elkhart County Minority Health Coalition, Association for the Disabled of Elkhart County, Elkhart Community Schools, Goshen Community Schools, Northern Indiana Hispanic Health Coalition, St. Vincent de Paul Catholic Church, Middlebury Community Schools, Baugo Community Schools, WaNee Community Schools, La Casa, Inc., Greater Elkhart Chamber of Commerce, Belmont Mennonite Church. Ribbon of Hope Ecumenical Cancer Ministry, Guidance Ministries, Heart City Health Center, YWCA of North Central Indiana, City of Goshen Planning Department, River Oaks Community Church, Fairfield Community Schools, Golden Living Center, Church Community Services, Golden Living Center, and selected health leaders representing the Amish community of Elkhart County. A full listing of specific key informants and their affiliated organizations can be found in Appendix B of the 2015 Holleran Final Summary Report Beacon Health System. Through an online CHNA survey conducted through March 2015, key informants provided input on community health priorities, barriers to accessing care, the impact of social determinants of health, how to best address wellness in the community, resources and wellness programs in the community, and underserved populations. According to 2015 Enroll America data, there are 32,833 uninsured persons residing in Elkhart County. Of these, 59% are below the 138% federal poverty guidelines, 34% are between 139 to 400% income based on federal poverty guidelines (which would establish eligibility for the ACA Marketplace affordability programs), and seven percent are above 400% federal poverty guidelines. Of these uninsured, 20% are children (0-18 years of age), 19% are 19-25 years of age, 19% are 26-34 years of age, 32% are 35-45 years of age, and 11% are 55-64 years of age. Elkhart County has two identified areas with medically underserved population designations, and a dentally underserved designation. Elkhart County has two hospitals: Elkhart General Hospital, a Beacon Health System partner, and Indiana University Health Goshen. Elkhart County residents can access a wide range of healthcare services through the Elkhart County Health Department. Heart City Health Center (HCHC) is a non-profit, Federally Qualified Health Center (FQHC) providing health and dental services in Elkhart County. Maple City Health Center is a non-profit health center established to provide a broad range of health care and support services to the community, especially the low income and uninsured. The Center for Healing and Hope provides urgent medical care and supportive care, on a first come first serve basis, and is supported by over 2oo volunteers from area churches. Additional input on perceived health priorities and barriers to accessing health care was solicited from the community at large through an online survey conducted in the spring through early summer of 2015. Consideration was given to ensuring the ease of access to the survey completion for hard to reach populations, including Amish, Hispanic Latino, African American, and low-income populations. As such, the online survey could be accessed directly from home or work via the internet or through the free, community service computers located at all seven Elkhart County Public Libraries sites. The availability of the online community member survey was heavily promoted through libraries, fliers, Public Service Announcements (PSA's), billboards, community presentations, and other promotional means. The survey, consisting of 50 questions, asked community members to provide input on access to health care, health status and behaviors, social constraints, and health-related community strengths and opportunities. A total of 510 persons identifying as residing or working in Elkhart County responded to the survey. A copy of the survey tool can be found in Appendix C of the 2015 Beacon Health System CHNA Final Summary Report. In August and September 2015, several community health stakeholder meetings were held to review the results of 2015 Elkhart County CHNA secondary data report, the Key Informant Survey summary, and the community member survey. The purpose of these meetings was to review results and solicit input on Elkhart County community health priorities. These community health stakeholders include members of the Elkhart General Hospital Board of Directors, Beacon Health System leaders, key Elkhart County medical providers, Elkhart County community funders, and Elkhart County schools personnel. Discussion was focused on the priority needs, current dedicated resources for community health needs, resource constraints, and the viability of identifying a singular community health need for which all funders could collectively support. In September and October 2015, EGH gathered input from community stakeholders to establish a list of the recommended health priorities as identified from stakeholder discussion, compiled an Implementation Strategy to address the selected priority needs, and presented to EGH Board of Directors in November 2015. The EGH Board of Directors approved the 2015 Elkhart County CHNA Implementation Strategy as presented. PART V, SECTION B, LINE 6A ELKHART GENERAL HOSPITAL CONDUCTED THE 2015 ELKHART COUNTY CHNA WITH MEMORIAL HOSPITAL OF SOUTH BEND, A BEACON HEALTH SYSTEM PARTNER. PART V, SECTION B, LINE 7D In 2015 the Elkhart County Community Health Needs Assessment (CHNA) and Implementation Strategies Report were submitted to the Elkhart General Hospital Board of Directors for review and were approved in November 2015. These documents were subsequently made widely available to the community through posting on the Elkhart General Hospital website; through hard copies made available by request; through paper copy made available at EGH Administration; and through email transmission upon request. Elkhart General Hospital staff were also available to discuss the results of the CHNA and the 2015 implementation strategies in requested community forums. PART V, SECTION B, LINE 11 Elkhart General Hospital (EGH) remained committed to improving the community health status of Elkhart County as an organizational priority of EGH through its mission and through community identification. As a non-profit, charitable organization, we continue to expand our ambulatory health capabilities in the region. The Beacon Health System strategic plan calls for greater focus on health and wellness, and as a Beacon Health Sys Part I, Line 3c Factors to be considered for Financial Assistance Household Size and Income The following factors may be considered in determining the eligibility of the patient for assistance and must be provided by all income earning residents in the countable household unit unless they are not dependents based on IRS guidelines for determining whether a household member can be considered a dependent. 1. Indiana workforce wage report for last 2 quarters (unemployment income) 2. Last 3 pay stubs or a letter or printout from employer(s) providing verification of gross income if currently employed. This documentation should not be more than 30 days old from date of issue and include year-to-date information. 3. Last 3 bank statements (including explanations of regular deposits not explained by pay stubs) 4. Social Security award or entitlement letter or other proof of gross monthly award. 5. Retirement income. 6. Investment income. 7. Statement from person(s) that are providing direct support. 8. Number of dependents. 9. Most recent tax return (including W2 and all supporting schedules) 10. Other financial obligations. 11. The amount and frequency of hospital/medical bills. 12. Other financial resources that produce income. 13. If Self-Employed, Gross Income less Cost of Goods sold and employee salaries Financial Capacity 1. Individuals with the financial capacity to purchase health insurance coverage through the Health Insurance Marketplace may be required to purchase and will be provided access to meet with an Indiana Certified Navigator as a means of assuring access to healthcare services, for their overall personal health, and for the protection of their individual assets. 2. Individuals have been found they are ineligible for Medicaid or other affordable health care coverage must provide proof of denial. 3. Food Stamps or Supplemental Nutrition Assistance Program (SNAP) will not be counted as income. 4. Cosmetic Services are not eligible for any type of assistance and cannot be included in the amount of hospital/medical bills owed. Part I, Line 6a CREATING COMMUNITY HEALTH IS AT THE CORE OF ELKHART GENERAL HOSPITAL'S MISSION. PROMOTION OF COMMUNITY HEALTH IS OUR SOCIAL RESPONSIBILITY AND A KEY TO LONG-TERM COST EFFECTIVENESS. IN ADDITION, IMPROVING THE HEALTH STATUS OF A COMMUNITY IS AS MUCH A SOCIAL, ECONOMIC, AND ENVIRONMENTAL ISSUE, AS IT IS A MEDICAL ONE. CONSEQUENTLY, THE ORGANIZATION TAKES A BROAD APPROACH TO CREATING COMMUNITY HEALTH. THIS APPROACH HAS INCLUDED: ONGOING EDUCATION OF BOARD MEMBERS, STAFF AND LOCAL LEADERS THROUGH COMMUNITY PLUNGES (EXPERIENTIAL ACTIVITIES TO INVOLVE THE COMMUNITY RESIDENTS WITH A NEIGHBORHOOD-BASED AGENCY), COMMUNITY FOUNDATION SUPPORT, STRATEGIC ALLOCATION OF TITHING RESOURCES, A CLEAR STATEMENT OF VISION AND GOALS, A COMMITMENT TO CONTINUOUS QUALITY IMPROVEMENT AND PROMOTION OF VOLUNTEER INVOLVEMENT AND COMMUNITY PARTNERSHIPS. ELKHART GENERAL HOSPITAL TITHES 10% OF THE PREVIOUS YEAR'S INCOME FROM OPERATIONS AND TRANSFERS IT TO THE COMMUNITY BENEFIT FUND FOR INVESTMENT IN THE COMMUNITY. THIS INVESTMENT IS IN ADDITION TO THE HOSPITAL'S FINANCIAL ASSISTANCE AND PREVENTION, AND EDUCATION ACTIVITIES SUPPORTED THROUGH ITS OPERATING BUDGET. THE COMMUNITY HEALTH ENHANCEMENT COMMITTEE OF THE BOARD MAKES ONGOING POLICY AND OVERSEES THE ADMINISTRATION OF THE FUND AND DETERMINES SPECIFIC INVESTMENT ALLOCATIONS BASED UPON THE ASSETS AND NEEDS OF THE COMMUNITY. VOLUNTEERS AND STAFF ARE COMMITTED TO PRUDENTLY INVESTING THESE RESOURCES IN AN ACCOUNTABLE MANNER. AS A COMMUNITY NOT-FOR-PROFIT ORGANIZATION, WE TAKE SERIOUSLY OUR RESPONSIBILITY TO INVEST OUR RESOURCES AND ENERGIES INTO UNDERSTANDING AND MEETING THE DIVERGENT HEALTH CARE NEEDS OF ALL, AND ENSURE THAT EVERYONE, REGARDLESS OF THEIR ABILITY TO PAY, RECEIVES THE CARE THEY NEED. ELKHART GENERAL HOSPITAL HAS LONG BEEN RECOGNIZED FOR THE COLLABORATION EFFORTS WHICH ENGAGE INDIVIDUALS AND ORGANIZATIONS WITH DIVERSE SOCIO-ECONOMIC RELIGIOUS, ETHNIC, RACE, AGE, AND GENDER IDENTITY CHARACTERISTICS. OUR TEAM OF PASSIONATE AND DEDICATED HEALTH CARE PROFESSIONALS, ALONG WITH MANY PARTNERS THROUGHOUT THE NORTHERN INDIANA AND SOUTHERN MICHIGAN (MICHIANA) REGION, HELPED US CONTRIBUTE SIGNIFICANTLY TO THE HEALTH AND WELL-BEING OF OUR COMMUNITY. FURTHER, ELKHART GENERAL HOSPITAL PLAYS A KEY ROLE IN SERVING THE COMMUNITY AS A WHOLE. ELKHART GENERAL HOSPITAL'S COMMUNITY BENEFIT REPORT IS CONTAINED IN A REPORT PREPARED BY MEMORIAL HOSPITAL, EIN #35-0868132. Part I, Line 7 The costing method used to calculate Financial Assistance reported on lines 7 a through d was the cost-to-charge ratio. All other community benefits were calculated using direct costs. Part I, Line 7 Column (f) Bad debt expense removed from total expenses 21,982,823. Part II COMMUNITY BUILDING ACTIVITIES 3. Community Support mentoring and support groups In 2016 Elkhart General Hospital (EGH) provided community building activities that focused largely on mentoring opportunities to young teens and at-risk youth. EGH partnered with Baugo School Systems to provide PEERS Project: A Positive Teen Network effort. EGH staff interviewed, recruited, and trained approximately 150 teen high-school mentors who in turn facilitated a five-session risk avoidance curriculum to 1,100 seventh and eighth graders. The PEERS Project curriculum focused on identifying the consequences of, and assertiveness training in abstaining from, health risk behaviors of early sexual activity, sexting, alcohol, smoking, and drug use. The program aims to optimize opportunities for community youth to create healthy and successful futures, and to mitigate the mental health consequences of these behaviors. The high school students completed a significant leadership peer mentor training prior to facilitating the classroom lessons to the underclassmen. In recognition of the importance of modeling the lifestyle being promoted, teen mentors signed a leadership agreement pledging to practice risk avoidance behaviors in their lifestyles. In 2016, approximately 750 mentoring youths taught just under 200 risk avoidance lessons with over 900 Elkhart County middle school-aged children. In 2016, Elkhart General Hospital sponsored and helped facilitate two American Cancer Society Look Good Feel Better support groups for cancer patients. In these groups, cosmetologists trained in enhancing the appearance of persons undergoing chemotherapy or radiation treatment worked with cancer patients to improve their self-esteem and confidence regarding their physical appearance. A total of 5 women participated. Line 7. Community Health Improvement/Advocacy improve public health, access to health care services In 2016, EGH continued to participate in a public health-based coalition to identify trends in perinatal outcomes to ultimately reduce perinatal race disparity in the region. The partners in this effort with Elkhart General Hospital included Beacon Health System partner Memorial Hospital of South Bend, Indiana University Health Goshen Hospital, the health departments of Elkhart and St. Joseph Counties, minority health partners, and the Michiana Health Information Network. Perinatal outcomes are critical indicators of community health status, and this forum identifies opportunities to produce consistent perinatal risk reporting from the hospitals and the health information exchange. Access to health care/access to health coverage has been identified as a priority health need for Elkhart County through the 2016 Elkhart County community health needs assessment. Improving access to health care/health coverage continues to be a priority for EGH, and one that will ultimately improve the health of and quality of life for Elkhart County residents. Throughout 2016, EGH continued to provide health coverage enrollment assistance and program navigation through Beacon Health System health coverage enrollment effort for the Affordable Care Act (ACA) Marketplace as well as the emergence of Healthy Indiana Plan 2.0, which was Indianas response to Medicaid expansion under the ACA. In alignment with the ACA, EGH provided full-service assistance for enrolling uninsured persons into health coverage programs through its Community Based Enrollment and Advocacy Center (CBEAC). The CBEAC services provide advocacy, education, linguistic, and application assistance for the purpose of assisting eligible low-income Elkhart County residents in enrolling and maintaining viable coverage in the health coverage programs for Indiana residents, including not only ACA Marketplace, but also Medicaid, Hoosier Healthwise (Medicaid for children), and Healthy Indiana Plan 2.0 programs. Elkhart General Hospital remains committed to enrolling uninsured, low-income persons into existing programs for which they are currently eligible but have not enrolled as a practical first step in addressing access to health care for the community. Eligibility criteria, while similar between the programs, vary with respect Part III, Line 2, 3 THE CORPORATION EVALUATES THE COLLECTABILITY OF ITS ACCOUNTS RECEIVABLE BASED ON THE LENGTH OF TIME THE RECEIVABLE IS OUTSTANDING, PAYOR CLASS, AND THE ANTICIPATED FUTURE UNCOLLECTIBLE AMOUNTS BASED ON HISTORICAL EXPERIENCE. ACCOUNTS RECEIVABLE ARE CHARGED TO THE ALLOWANCE FOR DOUBTFUL ACCOUNTS WHEN THEY ARE DEEMED UNCOLLECTIBLE. COSTING METHODOLOGY IS THE SAME AS TAX FORM 990, SCHEDULE H, WORKSHEET 2 METHODOLOGY. PATIENT CARE IS COST ADJUSTED BY NON-PATIENT ACTIVITY, EXPENSES, AND PATIENT CARE CHARGES. BAD DEBT EXPENSE WHICH IS ATTRIBUTABLE TO ELIGIBLE PATIENTS is CONSIDERED PART OF ELKHART GENERAL HOSPITAL'S COMMUNITY BENEFIT BECAUSE OF OUR MISSION TO CREATE A HEALTHIER COMMUNITY WHILE CONTINUING OUR CHARITABLE ROLE IN THE COMMUNITY. PART III, LINE 4 THE PROVISION FOR BAD DEBTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS, TAKING INTO CONSIDERATION THE TRENDS IN HEALTH CARE COVERAGE, HISTORICAL ECONOMIC TRENDS, AND OTHER COLLECTION INDICATORS. MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCES PERIODICALLY THROUGHOUT THE YEAR BASED UPON HISTORICAL WRITE-OFF EXPERIENCE BY MAJOR PAYOR CATEGORY. THE RESULTS OF THE REVIEW ARE THEN UTILIZED TO MAKE MODIFICATIONS, AS NECESSARY, TO THE PROVISION FOR BAD DEBTS TO PROVIDE FOR AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. A SIGNIFICANT PORTION OF THE CORPORATION'S UNINSURED PATIENTS WILL BE UNWILLING TO PAY FOR THE SERVICES PROVIDED. THUS, THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS RELATED TO UNINSURED PATIENTS IN THE PERIOD THE SERVICES ARE PROVIDED. PART III, LINE 8 RATIONALE FOR INCLUSION OF THE MEDICARE SHORTFALL AS A COMMUNITY BENEFIT. PARTICIPATION IN THE GOVERNMENTAL MEDICARE PROGRAM DOES NOT PROVIDE THE OPPORTUNITY FOR A HOSPITAL TO NEGOTIATE A REIMBURSEMENT RATE OR STRUCTURE THAT WOULD ALLOW THE HOSPITAL TO COVER THE COST OF THE MEDICAL SERVICE RENDERED TO THE PROGRAM PARTICIPANT, AS WOULD BE THE CASE IN CONTRACTUAL NEGOTIATIONS WITH COMMERCIAL INSURANCE COMPANIES. NOR IS THE HOSPITAL ALLOWED TO PROVIDE ONLY THE SERVICES FOR WHICH REIMBURSEMENT COVERS THE DIRECT COST OF CARE. THIS PRODUCES THE SAME SHORTFALL OUTCOME AS DOES THE PARTICIPATION IN THE MEDICAID PROGRAM. THE MEDICAID PROGRAM IS RECOGNIZED AS A COMMUNITY BENEFIT ON SCHEDULE H AND ON COMMUNITY BENEFIT REPORTS FOR MOST STATES. THE QUALITY AND COST OF THE PATIENT CARE IS THE SAME REGARDLESS OF PAYOR SOURCE. HENCE THE ACCEPTANCE OF MEDICARE REIMBURSEMENT REPRESENTS A REDUCTION OR RELIEF OF THE GOVERNMENT BURDEN TO PAY THE FULL COST OF CARE PROVIDED. THE SOURCE USED FOR THE COSTING METHODOLOGY FOR THE AMOUNT REPORTED ON LINE 6 WAS THE 2016 MEDICARE COST REPORT. PART III, LINE 9B COLLECTION PRACTICES PATIENTS KNOWN TO QUALIFY FOR FINANCIAL ASSISTANCE FOLLOW THE SAME COLLECTION POLICY AS ALL INDIVIDUALS WITH BALANCES REMAINING AFTER APPLICATION OF FINANCIAL ASSISTANCE. 2. Needs Assessment CHNA Process & Methods In March through August 2015, work began on gathering the community engagement and feedback essential to the integrity and validity of the CHNA process. Throughout the process, input was actively solicited and secured from persons who hold a broad knowledge of Elkhart County including public health, minority, cultural, and underserved populations; from the community members at large; and from the medical and health services fields. These key informants (n=60) provided input on community health priorities, barriers to accessing care, the impact of social determinants of health, and how to best address wellness in the community and underserved populations. Additional input on perceived health priorities and barriers to accessing care was solicited from the community at large (n=510) through an online survey that could be accessed directly from home or through the free community service computer access located at Elkhart County Public Libraries. Consideration was given to ensuring the ease of access among Amish, Hispanic Latino, African American, and low-income populations. The survey, consisting of 50 questions, asked community members at large to provide input on access to health care, health status and behaviors, social constraints, and health-related community strengths and opportunities. To maintain a connection with emergent needs in the county, EGH held focus groups, stakeholder meetings, and our annual community benefit meeting; as well as received direct input from communtiy leaders. Many of our project leaders go out into the community to find out directly from community members the changing needs they see that may need addressing. Identifying and Prioritizing Significant Health Needs In August and September 2015, several community health stakeholder meetings were held to review the results of 2015 Elkhart County CHNA secondary data report, the Key Informant Survey summary, and the community member survey. The purpose of these meetings was to review results and solicit input on Elkhart County community health priorities. These community health stakeholders include members of the Elkhart General Hospital Board of Directors, Beacon Health System leaders, key Elkhart County medical providers, Elkhart County community funders, and Elkhart County schools personnel. Discussion was focused on the priority needs, current dedicated resources for community health needs, resource constraints, and the viability of identifying community health needs for which all funders could collectively support. The following three health needs were selected as Elkhart General Hospitals 2016-2018 priorities: Access to Health Care/Uninsured Maternal/Infant Health/Prenatal Care Obesity/Overweight Obesity/Overweight 3. Patient Education of Eligibility for Assistance WHEN UNINSURED PATIENTS PRESENT TO OUR HOSPITAL, THEY ARE OFFERED THE OPPORTUNITY TO MEET WITH OUR ELIGIBILITY SPECIALISTS. OUR ELIGIBILITY SPECIALISTS DISCUSS THE POTENTIAL ELIGIBILITY OF THE PATIENT FOR MULTIPLE ASSISTANCE PROGRAMS, INCLUDING OUR OWN INTERNAL FINANCIAL ASSISTANCE PROGRAM. OUR STATEMENTS ALSO INCLUDE A NOTICE THAT FINANCIAL ASSISTANCE IS AVAILABLE TO PATIENTS, AND THEY CAN CONTACT OUR CUSTOMER SERVICE GROUP FOR GUIDELINES. Patients are also made aware of our financial assistance program via telephone conversation with our Patient Accounts staff. Staff is particularly sensitive to address this program with anyone who indicates there might be a financial need. 4. Community Information Elkhart County, Indiana, was established in 1830, with the original county seat in Dunlap and was later moved to Goshen. Today Elkhart County has three growing cities, four towns, and 16 townships. Elkhart County is located in northern Indiana and borders the state of Michigan. The County is approximately 463.91 square miles in size. Elkhart County lies halfway between Chicago and Cleveland and is located near Interstate 80/90 and the Indiana Toll Road. Elkhart Countys service providers have a history of actively forming partnerships in an effort to meet the health needs of its residents. Elkhart County takes pride in offering its residents a great place to live and continually striving to establish new businesses and provide an entrepreneurial atmosphere. Elkhart County is considered Elkhart General Hospitals (EGH) primary service area. According to the 2015 US Census estimates, Elkhart County population rose to 203,474. The percentage of persons 65 years and older was estimated at 14.0%. Census data show that 90% of Elkhart County residents are white persons not of Hispanic descent; 15% are Hispanic/Latino; and 6% are black. In 2016 7% of the total labor force were unemployed. The median household income (2015) of Elkhart County residents was $47,913. The percentage of persons living in poverty was 14%. EGH HAS HISTORICALLY DEFINED ITS GEOGRAPHIC PRIMARY MARKET AREA AS ELKHART COUNTY. FOR THE PURPOSE OF THE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA), THE COMMUNITY SERVED IS DEFINED AS THOSE PERSONS RESIDING IN ELKHART COUNTY. AS IDENTIFIED THROUGH U.S. CENSUS DATA, ELKHART COUNTY ENCOMPASSES A MIX OF CULTURAL, ETHNIC, AND ECONOMIC POPULATIONS. 5. Promotion of Community Health The mission of Elkhart General Hospital, as a Beacon Health System partner, is to enhance the physical, mental, emotional and spiritual well-being of the communities we serve. Beacon Health System is committed to clinical excellence, compassionate care, and the ongoing improvement of quality of life. Our commitment will lead the Health System to be the community's provider of outstanding quality, superior value and comprehensive health care services. Both Beacon Health System and Elkhart General Hospital have community Boards of Directors, and consistently invest funds to improve the quality of life for our communities. Beacon Health System values reflect an unwavering commitment to the communities we serve. Elkhart General Hospital, as a Beacon Health System partner, has as its values: Patients are at the center - Patient needs, care and safety are our top priority. Trust - Our actions will firmly demonstrate reliability on our integrity, abilities and our character. Respect - We will treat our patients, community members and each other with the highest level of regard, demonstrating an understanding of different perspectives, cultures, interests and needs of others. Integrity - We will continually do the right thing for our patients, associates and communities we serve. Compassion - We will demonstrate the emotional capacities of empathy and sympathy, and express the desire to help. Elkhart General seeks to promote the health and well-being of Elkhart County residents, with specific focus on the most vulnerable populations, by providing education to aid in early detection and prevention of disease and to improve the health status of the community as a whole. A key mechanism by which this goal is carried out is Elkhart General Hospital's serious, consistent, deliberate search for and partnership with like-minded organizations. Elkhart General Hospital continues to seek out partnerships with multiple community entities to address the needs of the medically underserved and to improve the health status of our community. These collaborative alliances included local public health, schools, churches, social service agencies, minority advocacy groups, victim assistance, and community health providers. 6. Affiliated Health Care System Elkhart General Hospital's governing body is comprised of persons who reside in Elkhart County. The 14 member Board of Directors, who serve without pay, guide the system in its mission to provide high quality, affordable health care to the communities it serves. The Board's responsibilities include guaranteeing fair and equal access, approving new medical staff members and approving long-term strategies for the continued success of the hospital. Additionally, Elkhart General Hospital extends medical staff privileges to all qualified physicians in our community. In 2011 Elkhart General Hospital affiliated with Memorial Hospital of South Bend, Indiana, under the name of Beacon Health System, Inc. Both organizations continue as full-care providers for their respective counties, and both organizations are committed to promoting the health of the communities they serve. THE BEACON HEALTH SYSTEM BOARD OF DIRECTORS CONSISTS OF 14 VOTING BOARD MEMBERS. 7. State Filing of Community Benefit Report Elkhart General Hospital, Inc., prepares a Community Benefit Report both for the State of Indiana and for the Annual Report, which is posted at www.beaconhealthsystem.org/chna. true RIBBON OF HOPE 600 EAST BOULEVARD ELKHART IN 46514 352118856 501(c)(3) 25000 CASH CANCER SUPPORT UNITED WAY OF ELKHART COUNTY 601 CR 17 ELKHART IN 46515 350953433 501(C)(3) 72000 CASH CORPORATE MATCH BOYS & GIRLS CLUB OF ELKHART CO PO BOX 614 GOSHEN IN 46527 351156334 501 (C)(3) 15000 CASH SPONSORSHIP CENTER FOR HEALING AND HOPE PO BOX 195 GOSHEN IN 46527 020560511 501(c)(3) 10000 CASH ECONOMIC DEVELOPMENT CORP 300 BIBCO PARKWAY ELKHART IN 46516 351973845 501(C)(3) 10000 CASH FOUNDATION FOR THE CENTER FOR HOSPICE 111 SUNNYBROOK CT SOUTH BEND IN 46637 300433147 501(C)(3) 20000 CASH SPONSORSHIP ELKHART COUNTY HEALTH DEPARTMENT 117 N SECOND STREET GOSHEN IN 46526 356000142 501(C)(3) 70833 CASH SPONSORSHIP 7 TRANSPORTATION SERVICES 200 111091 Scholarships 1 794 Bereavement Assistance 2 124 SCHEDULE I, PART I, LINE 2 PART OF ELKHART GENERAL HOSPITAL'S MISSION IS TO IMPROVE THE HEALTH OF ITS COMMUNITY. IN ORDER TO FULFILL THIS GOAL, OUR ADMINISTRATORS HAVE THE ABILITY TO MAKE DONATIONS TO ORGANIZATIONS THAT IMPROVE THE HEALTH AND WELL BEING OF OUR COMMUNITY. SINCE ALL PAYMENTS ARE MADE TO 501(C)(3) ENTITIES, THERE ARE NO PROCEDURES FOR MONITORING THE USE OF THE FUNDS. ELKHART GENERAL HOSPITAL ALSO PAYS FOR THE TRANSPORTATION OF SPECIFIC INDIVIDUALS FROM THE HOSPITAL FACILITY TO NEARBY NURSING HOMES AND OTHER ASSISTED LIVING FACILITIES. THESE PAYMENTS ARE MADE DIRECTLY TO THE THIRD PARTY TRANSPORTATION SERVICE PROVIDER AT COST. SCHEDULE I, PART III NUMBER OF RECIPIENTS IS ESTIMATED BASED ON THE NUMBER OF INVOICES FROM OUTSIDE ORGANIZATIONS FOR OTHER ASSISTANCE MADE FOR THE BENEFIT OF INDIVIDUAL RECEPIENTS. X X X true true true true false false false false false true false Gregory Losasso President thru 9/2016 90731 94426 525358 119199 0 18058 0 847772 0 190440 0 Laura Munkel MD Physician thru 9/2016 296619 12591 912 0 10600 0 23822 0 344544 0 0 Jeffrey P Costello CFO/Asst. Treasurer 438769 107800 29215 0 156942 0 19589 0 752315 0 0 Phillip A Newbold CEO 769777 235000 201650 0 157077 0 15472 0 1378976 0 142540 GENEVIEVE A LANKOWICZ VP OF MEDICAL AFFAIRS 275810 37564 2924 10600 0 984 0 327882 0 0 0 KARRA L HEGGEN VP OF NURSING 244346 35148 1211 10600 0 880 0 292185 0 0 0 CINDIE L MCPHIE VP OF OPERATIONS 166076 30776 7361 4890 0 10190 0 219293 0 0 0 LIANG Q WANG SENIOR PHYSICIST 218760 16554 9554 0 19739 0 264607 0 0 0 KREG R GRUBER PRESIDENT 439513 194395 13863 0 159767 0 26390 0 833928 0 0 Maria A Behr Director of Pharmacy 156401 8323 11324 7107 0 9049 0 192204 0 0 0 Supplemental Compensation Information PART I, LINE 1A ELKHART GENERAL HOSPITAL, INC. REIMBURSES DIRECTORS FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS OF COMPLIMENTARY USE OF BEACON'S HEALTH AND LIFESTYLE CENTER AND SPOUSAL TRAVEL. BEACON HEALTH SYSTEM REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL FOR THE FOLLOWING 1 INDIVIDUAL WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR. HEALTH OR SOCIAL CLUB DUES FOR THE FOLLOWING 1 INDIVIDUAL WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR. TAX INDEMNIFICATION AND GROSS-UP PAYMENTS FOR THE FOLLOWING 1 INDIVIDUAL WAS INCLUDED IN TAXABLE COMPENSATION: ALEX STRATI, JR. PART I, LINE 3 ELKHART GENERAL HOSPITAL,INC. USES A RELATED ORGANIZATION'S (BEACON HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION. PART I, LINE 4A DUE TO A SERIOUS HEALTH ISSUE, A MUTUALLY AGREED UPON SEVERANCE AGREEMENT WAS ENTERED INTO WITH MR. LOSASSO TOTALING $369,705. IN 2016, $270,169 IN SEVERANCE WAS PAID OUT TO MR. LOSASSO THROUGH NORMAL PAYROLL PROCESSES. THE REMAINING $99,536 WILL BE PAID OUT IN 2017. PART I, LINE 4B BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE RETENTION PLAN TO ATTRACT AND RETAIN KEY EMPLOYEES BY PROVIDING ADDITIONAL DEFERRED COMPENSATION. THE CHIEF EXECUTIVE OFFICER WILL PARTICIPATE IN THE PLAN AND WILL SELECT OTHER PARTICIPANTS PURSUANT TO THE GUIDELINES SET BY THE EMPLOYER'S BOARD OF DIRECTORS. THE EMPLOYER MAY MAKE CONTRIBUTIONS UNDER THE PLAN AND HAS SOLE DISCRETION OVER WHETHER TO MAKE A CONTRIBUTION. VESTING OCCURS ON JANUARY 1 OF THE FIFTH YEAR FOR WHICH SUCH CONTRIBUTIONS ARE MADE FOR PARTICIPANTS WHO HAVE BEEN CONTINUOUSLY EMPLOYED. THE PLAN ALSO ALLOWS VESTING TO OCCUR IF THE PARTICIPANT ATTAINS THE AGE OF 62. THE FOLLOWING INDIVIDUALS RECEIVED VESTED PAYMENTS IN 2016, REFLECTED IN COLUMN (B)(III): PHIL NEWBOLD $143,631 IN MARCH 2016. GREGORY LOSASSO $244,358 IN MAY 2016 THE FOLLOWING INDIVIDUALS RECEIVED DEFERRED PAYMENTS IN 2016 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: PHIL NEWBOLD $135,317 JEFFREY COSTELLO $74,414 KREG GRUBER $84,167 BEACON HEALTH SYSTEM IMPLEMENTED AN EXECUTIVE LONGEVITY BONUS PLAN FOR THE PURPOSE OF PROVIDING A LONGEVITY BONUS FOR ITS' DESIGNATED EXECUTIVES. THIS UNFUNDED PLAN WAS EFFECTIVE APRIL 1, 2014. THE PARTICIPANTS MUST REMAIN IN AN ACTIVE EMPLOYMENT STATUS WITH BEACON FOR A PERIOD OF 5 CONSECUTIVE YEARS FROM THE EFFECTIVE DATE TO BE ELIGIBLE TO RECEIVE THE FULL LONGEVITY BONUS AMOUNT AT WHICH TIME VESTING IS 100%. VESTING PRIOR TO THE 5 YEARS IS AT 0%. THE MAXIMUM BONUS AWARD AT 100% VESTING IS $325,000. THE FOLLOWING INDIVIDUALS RECEIVED DEFFERED PAYMENTS IN 2016 THAT WILL VEST IN FUTURE YEARS, WHICH ARE REFLECTED IN COLUMN C: JEFFREY COSTELLO, $65,000 GREGORY LOSASSO, $16,250 KREG GRUBER, $65,000 PART I, LINE 7 THE ORGANIZATION HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGEMENT EMPLOYEES FOR BEACON HEALTH SYSTEM, INC. AND THE AFFILIATED ENTITIES. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $4,500,000. THE PAYOUT AND AMOUNT OF THE PAYOUT FOR THE EMPLOYEE INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. THE MANAGEMENT INCENTIVE PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET OPERATING INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME. THE PAYOUT OF THE MANAGEMENT INCENTIVE PLAN IS MADE AT THE DISCRETION OF THE BOARD. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN (ESTIP). THE ESTIP PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETS OPERATING INCOMES. THE PAYOUT OF THE ESTIP IS MADE AT THE DISCRETION OF THE BOARD. A HOSPITAL AUTHORITY OF ELKHART COUNTY 351657690 287468EMO 2008-12-09 47800000 REFUND BONDS ISSUED 04/02/2003 false false false B INDIANA FINANCE AUTHORITY 351602316 45471ALS9 2013-05-21 38582380 REFUND BONDS ISSUED 12/15/1998 false false false A 6620000 0 47800000 0 0 0 566012 33988 0 0 47200000 0 2004 true false true true B 6579432 0 38582380 0 0 0 307145 0 0 0 38275235 0 2000 true false false true A false true true true false 0.01900 0.01900 false false false true B 0 A false false true true true false 0 false 0 false true B false true true false false false 0 false 0 false true A true B true PART III, COLUMN B: COLUMN B IS NOT COMPLETED BECAUSE SUCH BONDS WERE ISSUED AFTER 12/31/2002 TO REFUND BONDS ISSUED BEFORE 01/01/2003. PART IV, LINE 2C THE DATE THE REBATE COMPUTATION WAS PERFORMED ON THE HOSPITAL AUTHORITY OF ELKHART COUNTY WAS 12/9/2016. MISSION STATEMENT FORM 990, PART I, LINE 1 ELKHART GENERAL HOSPITAL IS A NOT-FOR-PROFIT HOSPITAL GOVERNED BY A BOARD OF DIRECTORS COMPRISED OF COMMUNITY VOLUNTEERS. EMPHASIS IS PLACED ON ENSURING EVERYONE IN THE COMMUNITY RECEIVES THE HEALTH CARE THEY NEED. MEMBERS OF THE ORGANIZATION Form 990, Part VI, SECTION A, LINE 6 Beacon Health System, Inc. is the sole corporate member of Elkhart General Hospital, Inc. ELECTION OF BOARD MEMBERS FORM 990, PART VI, SECTION A, LINE 7A THE CORPORATE MEMBER SHALL APPOINT THE BOARD OF DIRECTORS OF ELKHART GENERAL HOSPITAL, INC. AND SHALL HAVE SUCH POWERS OF ADVANCE APPROVAL REGARDING CORPORATE ACTIONS AS ARE DELINEATED IN THE BY-LAWS OF ELKHART GENERAL HOSPITAL, INC. In the absence of such selection by the corporate member, or until the corporate member determines otherwise, Directors shall be selected as follows: Ten (10) directors shall be elected by the Elkhart General Hospital, Inc. Board from nominations proposed by the nominating committee pursuant to the following guidelines. Two (2) directors shall be representatives from the medical staff, elected by the board from recommendations submitted to the nominating committee by the medical staff. Two (2) directors shall be representatives from the United Labor Agency for Community Services, Inc. ("ULA") elected by the board from recommendations submitted to the nomination committee from the ULA. Two (2) directors shall be representatives from the Elkhart General Foundation elected by the board from recommendations by the Elkhart Foundation made to the nominating committee. One (1) director shall be the president of Elkhart General Hospital, Inc. GOVERNANCE DECISIONS FORM 990, PART VI, SECTION A, LINE 7B DECISIONS OF THE BOARD OF DIRECTORS MUST BE APPROVED BY THE CORPORATE MEMBER. Beacon Health System, the Sole Member of Elkhart General Hospital, has control over Elkhart General Hospital's operations. The following matters require the approval of Beacon Health System's Board: 1. Changes to the Articles of Incorporation or Bylaws of Elkhart General Hospital. 2. Appointing or removing with or without cause, the members of the Board, provided, however, that the process of appointment and removal of members of the Board of Elkhart General Hospital shall be as set forth in Elkhart General Hospital's Bylaws, and that appointment of members of the Board of Elkhart General Hospital shall be upon the recommendation of Beacon Health System's Nominating and Governance Committee. 3. The incurrence of debt of Elkhart General Hospital. 4. The sale, transfer or substantial change in use of all or substantially all of the assets of Elkhart General Hospital or the divestiture, dissolution, closure, merger, consolidation, change in corporate membership or ownership, or corporate reorganization of Elkhart General Hospital. 5. The formation of a subsidiary of Elkhart General Hospital, or the sale, transfer or substantial change in use of all or substantially all of the assets of a subsidiary of Elkhart General Hospital, or the divestiture, dissolution, closure, merger, consolidation or change in corporate membership or ownership of a subsidiary of Elkhart General Hospital. 6. The material transfer or encumbrance of the assets of Elkhart General Hospital or a subsidiary of Elkhart General Hospital. 7. The annual operating budget, capital plan, strategic plan, and business plan for Elkhart General Hospital and subsidiaries of Elkhart General Hospital. 8. The mission and vision statements for Elkhart General Hospital and subsidiaries of Elkhart General Hospital. 9. Any material transactions of Elkhart General Hospital or a subsidiary of Elkhart General Hospital which are not otherwise included in the approved operating or capital budgets of Elkhart General Hospital or a subsidiary of Elkhart General Hospital or as otherwise authorized in the bylaws or operating agreement of Elkhart General Hospital or a subsidiary of Elkhart General Hospital. 10. Resolving any issues between Elkhart General Hospital or a subsidiary of Elkhart General Hospital and other affiliates of Beacon Health System as to participation, or failure to participate in, specific managed care agreements, and the terms thereof. 11. Any management agreement for the management of all or any substantial part of Elkhart General Hospital or a subsidiary of Elkhart General Hospital operations. Describe the Process used by Management &/or Governing Body to Review 990 Form 990, Part VI, Section B, LINE 11B THE ORGANIZATION INCORPORATES NUMEROUS PARTIES IN THE PRODUCTION AND REVIEW OF THE FORM 990 AND ASSOCIATED SCHEDULES. SENIOR ACCOUNTING STAFF AND MANAGEMENT COMPLETE THE FORM 990 AND SCHEDULES. SOME FORMS AND SCHEDULES ARE REVIEWED BY THE CONTROLLER. SUBSEQUENT TO THOSE STEPS, THE ORGANIZATION ENGAGED ERNST & YOUNG TO REVIEW THE COMPLETED FORM 990 AND APPROPRIATE SCHEDULES. PRIOR TO FILING THE RETURN, THE CFO, THE COMPENSATION COMMITTEE OF THE ORGANIZATION, AND THE CEO CONDUCT A GENERAL OVERVIEW OF THE FORM 990, INCLUDING APPLICABLE COMPENSATION SCHEDULES. IN ADDITION, EACH BOARD MEMBER RECEIVES NOTIFICATION OF THE IRS FORM 990 PLACEMENT ON THE ORGANIZATION'S BOARD PORTALS WHICH ALLOWS FOR BOARD MEMBER REVIEW PRIOR TO FILING THE RETURN. CONFLICT OF INTEREST STATEMENTS FORM 990, PART VI, SECTION B, LINE 12C THERE ARE THREE SEPARATE FORMS THAT ARE SENT OUT THROUGH THE INTERNAL AUDIT DEPARTMENT TO KEY EMPLOYEES OR BOARD MEMBERS REGARDING CONFLICT OF INTEREST. THEY ARE AS FOLLOWS: 1. THE FIRST IS A CONFLICT OF INTEREST STATEMENT THAT IS SENT TO SENIOR LEVEL ADMINISTRATION, MANAGEMENT, AND SELECT STAFF SUCH AS PURCHASING DEPARTMENT EMPLOYEES. THE PURPOSE OF THE STATEMENT IS TO REQUIRE THESE EMPLOYEES TO DISCLOSE ANY POTENTIAL CONFLICT OF INTERESTS THEY MAY HAVE. THE STATEMENTS ARE SENT IN JANUARY OF EACH YEAR for the previous year activities. WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT OVER 346 STATEMENTS AND are WORKING TO ACHIEVE A 100% RESPONSE RATE. EACH RESPONSE IS REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT AND THE RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AS WELL AS THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 2. THE SECOND STATEMENT IS THE BOARD DUALITY OF INTEREST STATEMENT THAT is SENT TO CURRENT BOARD MEMBERS, FORMER BOARD MEMBERS FROM THE LAST FIVE YEARS, and OTHER KEY EMPLOYEES. THE DUALITY OF INTEREST STATEMENT is sent using a web-based survey tool provided by Ernst & Young. THE REPLIES ARE REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT. THE RESULTS of the surveys are summarized using the web-based tool, and are reviewed by Ernst & Young in completing the 990. The RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AND THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 3. THE THIRD STATEMENT IS ENTITLED "CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS." THE STATEMENT REQUIRES AN ACKNOWLEDGEMENT FORM TO BE SIGNED BY Beacon Health System's KEY FINANCIAL EMPLOYEES THAT Beacon's FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT IN EARLY JANUARY, 2017 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2017, 20 DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST would be EXCLUDED FROM ALL REVIEW PROCEEDINGS. COMPENSATION PROCESS FORM 990, PART VI, SECTION B, LINES 15A & 15B BEACON HEALTH SYSTEM, INC., THE PARENT COMPANY OF ELKHART GENERAL HOSPITAL, CONDUCTS THE REVIEW OF ALL COMPENSATION. VICE PRESIDENT AND HIGHER COMPENSATION IS DETERMINED AFTER AN EXTENSIVE EXAMINATION IS CONDUCTED USING COMPARABLE MARKET DATA AND THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. HUMAN RESOURCES CONDUCTS THE ANALYSIS AND MAKES RECOMMENDATIONS TO THE CEO WHO THEN MAKES THE RECOMMENDATIONS TO THE BOARD FOR APPROVAL. RECOMMENDATIONS ARE PRESENTED TO THE COMPENSATION COMMITTEE OF THE BEACON HEALTH SYSTEM, INC. BOARD FOR DELIBERATION AND FINAL DECISION. DELIBERATION AND FINAL DECISION ARE PERFORMED BY THE INDEPENDENT MEMBERS OF THE BOARD. PUBLIC AVAILABILITY FOR DOCUMENTS FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. THE FINANCIAL STATEMENTS ARE DISTRIBUTED QUARTERLY TO THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE AS PART OF THE CONTINUING DISCLOSURES FOR BEACON HEALTH SYSTEM, INC. BONDS. Form 990, Part XI, line 9 Pension Liability - (17,574) Write off Intercompany Balances, Beacon Medical Group - (567,080) Write off Intercompany Balances, Memorial Hospital - (6,410,604) Write off Intercompany Balances, Beacon Health System - (573,338) Write off Intercompany Balances, Beacon Health Ventures - 411,733 Write off Intercompany Balances, Memorial Health Foundation - 5,143 Write off Intercompany Balances, COM - 282 Total - (7,151,438). FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING FEES TOTAL FEES:643316 FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN FEES TOTAL FEES:3119935 FORM 990 PART IX LINE 11G DESCRIPTION:LAB FEES TOTAL FEES:11162456 FORM 990 PART IX LINE 11G DESCRIPTION:BLOOD PRODUCTS TOTAL FEES:2577496 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:7441250 FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:2082511 FORM 990 PART IX LINE 11G DESCRIPTION:REPAIR AND MAINTENANCE TOTAL FEES:1911780 FORM 990 PART IX LINE 11G DESCRIPTION:SERVICE CONTRACTS TOTAL FEES:5348599 Beacon Medical Group Inc 615 N MICHIGAN STREET SOUTH BEND IN 46601 351536132 PHY PRACTICES IN 501(C)(3) 9 BHS true BEACON HEALTH FOUNDATION INC 615 N MICHIGAN STREET SOUTH BEND IN 46601 351536129 FINANCIAL SUP IN 501(C)(3) 7 BHS true MEMORIAL ENDOWMENT FUND FOR MEMORIAL HOS PO BOX 1602 SOUTH BEND IN 46634 356068581 ENDOWMENT IN 501(C)(3) 11D III-O MHSB true BEACON HEALTH SYSTEM INC 615 N MICHIGAN STREET SOUTH BEND IN 46601 453864076 PARENT ORG. IN 501(C)(3) 11AI NA false Memorial Hospital of South Bend Inc 615 N Michigan Street South Bend IN 46601 350868132 Hospital IN 501(C)(3) 3 BHS true ELKHART GENERAL HOSPITAL FOUNDATION 600 EAST BLVD ELKHART IN 46514 356061200 CHAR SUPPORT IN 501(C)(3) 11C,TYPEIII NA false ELKHART GENERAL HOSPITAL AUXILIARY 600 EAST BLVD ELKHART IN 46514 350938148 VOL SUPPORT IN 501(C)(3) 11A,TYPE I NA false WaNee Walk-In Cl 1028-A East Waterford St PO Box 3 Wakarusa IN 46573 272192375 Medical Clini IN EGH RELATED -4518 27371 false 0 true 0.50000 Beacon Health Ventures Inc 615 N Michigan St South Bend IN 46601 351901068 Home Medical IN C Beacon Health Ventures Michigan Inc 615 N Michigan St South Bend IN 46601 208259773 Home Medical MI C false true true false false false false false false true true true true true true true true true true Memorial Hospital of South Bend q 1928882 ACTUAL CHARGES Memorial Hospital of South Bend b 6410604 WRITEOFFINTERCO Memorial Hospital of South Bend p 22748414 ACTUAL CHARGES Memorial Hospital of South Bend s 27232233 INTERCO TRNSF Beacon Health Ventures q 411733 WRITEOFFINTERCO Beacon Medical Group p 896586 ACTUAL CHARGES Beacon Medical Group s 337249 ACTUAL CHARGES Beacon Medical Group b 567080 WRITEOFFINTERCO Beacon Medical Group j 1094530 ACTUAL CHARGES BEACON HEALTH FOUNDATION C 68387 ACTUAL CHARGES