2017-11-08T10:27:51-06:00 2016-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2016-01-01 810232121 Bozeman Deaconess Health Services BOZE 4065855000 915 Highland Boulevard Bozeman MT 59715 Gordon Davidson VP of Finance/CFO 4065855000 2017-10-31 1 Kim Hunwardsen CPA P00484560 6122536500 2017-10-31 72.175.213.18 2017-10-31 15:15:14 MD P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 B1517DAAED479AA3B0236E79C14EA2E11B9BE589 2016 2018-03-14 21:41:22Z Bozeman Health Gordon Davidson 915 Highland Boulevard Bozeman MT 59715 80501997 0 X www.bozemanhealth.org X 1911 MT To improve community health and quality of life for residents and visitors of the Bozeman, MT area. X 11 10 530 269 863990 -87183 1360972 1543224 243243458 78771445 4015698 2759 521110 160507 249141238 80477935 623600 468139 0 0 117496661 52508538 0 0 0 117186530 28203127 235306791 81179804 13834447 -701869 404683357 111101357 115530049 57635766 289153308 53465591 X To improve community health and quality of life. 1 1 30182757 26623692 Bozeman Health Medical Group employs physicians under the Bozeman Health system umbrella. This group of providers compassionately serves the patients of Bozeman Health Deaconess Hospital, Big Sky Medical Center and Bozeman Health Urgent Care. 8954796 8000925 In efforts to reach our community and surrounding area in multiple facets of healthcare, the Bozeman Health system operates additional healthcare facilities which allows more access and levels of care.Bozeman Health opened a 4 licensed bed hospital in Big Sky in December 2015. With a full year in operations, the Emergency Room saw over 3,100 patients in 2016. About 39% of those patients were fixed payor sources of Medicare/Medicaid or self-insured without insurance. Due to this patient demographic over 48% of the $5,925,160 patient charges were uncollectible. Operating expenses ran at $9,511,009 in this first year of operations. Together with other and non-operating income, the hospital netted a ($3,982,046) for the year. Bozeman Health is committed to providing access and patient care to the Big Sky community in spite of the financial operational challenge this first year.Bozeman Health also continues to operate our Main Street Urgent Care as an outpatient healthcare access point. In 2016, of the $5,333,841 patient charges, over 43% were written off as uncollectible. With $3,873,654 in operational expenses, the Urgent Care netted a loss of ($721,967.) 28811478 468139 44146828 Bozeman Health serves as the parent company of the Bozeman Health system. As the corporate parent, management, general and administrative services are centralized here and provided to the operating units caring for our patients. These administrative and support services aim to optimize executive, organizational and financial responsibilities to allow the health system to continue to grow and serve the population. In this past year, Bozeman Health had 18,495 inpatient days, 165,199 outpatient hospital visits, 230,011 outpatient clinic visits, 35,640 emergency room visits and performed 6,712 surgeries. 67949031 1 1 0 1 0 0 0 0 0 1 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 1 89 0 1 530 1 1 1 0 0 0 0 0 0 0 0 0 X 11 10 0 0 0 0 0 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 1 X Gordon Davidson 4065851036 915 Highland Blvd Bozeman MT 59715 Julie Jackson Chair 1.00 1.00 X X 0 0 0 Brian Brown 1st Vice Chair 1.00 1.00 X X 0 0 0 Katie Daughenbaugh 2nd Vice Chair 1.00 1.00 X X 0 0 0 Dr Dane Sobek Secretary/Cardiologist 50.00 1.00 X X 614610 0 59989 Dennis Munson Treasurer 1.00 1.00 X X 0 0 0 John Murdoch Treasurer (Jan-Jun) 1.00 1.00 X X 0 0 0 Kerri Brown Trustee 1.00 1.00 X 0 0 0 Jerry Cashman Director 1.00 1.00 X 0 0 0 Rev Dave McConnell Director 1.00 1.00 X 0 0 0 Kerry Petitt Director 1.00 1.00 X 0 0 0 Walt Sales Director 1.00 1.00 X 0 0 0 Robert Watson Director 1.00 1.00 X 0 0 0 John Hill President/CEO (Aug-Dec) 35.00 15.00 X 270822 0 9340 Gordon Davidson Interim CEO (Jan-Aug)/VP Finance/CFO 15.00 35.00 X 494253 0 61385 David Chen MD Interim CEO (Jan-Aug)/CMO 15.00 35.00 X 481497 0 56465 Elizabeth Lewis COO 50.00 0.00 X 315602 0 55913 Annie Castillo MD Oncology 50.00 0.00 X 547775 0 18448 Blair Erb MD Cardiology 50.00 0.00 X 560943 0 54110 Nathanial Madsen MD Cardiology 50.00 0.00 X 625505 0 56657 Hugh Hetherington MD Otolaryngology/Plastic Surgery 50.00 0.00 X 498133 0 63644 Ken May MD Oncology 50.00 0.00 X 549337 0 26755 4958477 0 462706 119 0 1 0 Absaroka Emergency Physicians 1184 N 15th Street Suite 1 Bozeman MT 59715 ER Physicians Fee 4511616 Drinker Biddle & Reath LLP One Logan Square Ste 2000 Philadelphia PA 191036996 Legal Services 744221 Marjan and Associates 1333 East Maryland Ln Laurel MT 59044 Legacy AR Management 513101 Witt Kieffer Inc 2015 Spring Rd Ste 510 Oak Brook IL 60523 Recruiting Services 220384 Trusthcs 2042 Brentwood Blvd Ste A Springfield MO 65804 Coding Services 213462 12 1543224 1543224 Hlth System Corp Servi 900099 37608137 37608137 Hlth System Physician 622110 28623692 28623692 Patient Service Revenu 622110 6929837 6929837 Pharmacy Revenue 446110 1016459 152469 863990 4593320 4593320 78771445 26821 26821 160507 0 160507 160507 160507 24062 -24062 -24062 -24062 80477935 77907455 863990 163266 468139 468139 2390050 667346 1722704 42373638 39187138 3186500 1418454 1409758 8696 3996903 3171249 825654 2329493 2005147 324346 1224671 19224 1205447 113080 106774 6306 56400 56400 7640169 4520844 3119325 1305869 1222473 83396 392114 344129 47985 1202443 895338 307105 163810 90254 73556 109207 60170 49037 1383603 1383603 5020054 5020054 1891525 49701 1841824 Equipment Rent & Mainte 5289138 5176395 112743 Medical Supplies 1256733 1252294 4439 Provision for Bad Debts 718158 718158 Taxes & Licenses 63989 23401 40588 372164 157442 214722 81179804 67949031 13230773 0 21687710 14411732 34374057 8116201 401518 33478 6977267 256339 1810883 1153203 75379236 21328644 168927617 54050592 126050801 3955714 22646 16078906 13356233 10493626 9725021 17858326 6042844 404683357 111101357 31975864 18459364 423116 62528669 22063092 3088675 9050000 17513725 8063310 115530049 57635766 X 282036280 52357699 5411160 1107892 1705868 0 289153308 53465591 404683357 111101357 X -701869 -234985848 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 56400 0 1 4014 60414 0 Part II-B, Line 1: Hired consultant to provide lobbying services in connection with governmental affairs representation to ensure hospital, community, and employee interests and needs are represented. Bozeman Deaconess Health Services reimburses certain professional membership dues of employees, a portion of such membership dues are used by the professional associations for lobbying activities. These are dues for MHA and AHA. 13928221 122889 843418 146615 14747913 13788550 99933 216493 176755 13928221 12396438 785403 619492 12783 13788550 10913019 15645 1686800 219026 12396438 9765686 385183 873051 110901 10913019 0.74020 0.15110 0.10870 0 1 1 6650455 6650455 27048411 1179933 25868478 41281223 20148711 21132512 399147 399147 54050592 Investment in Affiliated Organizations 13356233 C 13356233 Due from affiliates 4699988 Other Assets 234964 Interest in net assets of Foundation 1107892 6042844 Deposits 16588 Capitalized Lease Obligation 8046722 8063310 X Part V, Line 4: Each endowment fund is privy to a separate agreement. Donations made for each purpose shall be received, held, and invested by the Bozeman Deaconess Foundation according to established policies governing gift acceptance, investment, and distribution. The principal of the fund shall be retained in perpetuity. The interest income is utilized for the greatest needs of the designated department. Policy says the organization can use a portion of interest for operations. The endowment fund reported in Line 1 is currently being held by a related organization, Bozeman Health Foundation, and benefits Bozeman Health and related system entities. Part X, Line 2: The Organization consists of Montana nonprofit organizations and has been recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Internal Revenue Code Section 501(c)(3). The Organization is annually required to file a Return of Organization Exempt from Income Tax(Form 990) with the IRS. In addition, the Organization is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. The Organization files an Exempt Organization Business Income Tax Return (Form 990T) with the IRS to report its unrelated business taxable income. The Organization believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the consolidated financial statements. The Organization would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. 1 1 X 1 X 1 X 1 1 0 1 1 814080 814080 0.01020 1417312 719639 697673 0.00870 2231392 719639 1511753 0.01890 360926 360926 0.00450 8000 8000 0.00010 3561509 3270658 290851 0.00360 494958 494958 0.00620 4425393 3270658 1154735 0.01440 6656785 3990297 2666488 0.03330 1 1284741 0 2136552 3215289 -1078737 X 1 1 1 Rocky Mountain Surgical Center LLC Outpatient Surgical Center 0.51010 0.00000 0.48990 2 Deaoness Intercity Imaging LLC Radiology 0.77500 0.00000 0.20920 1 2 Big Sky Medical Center 334 Town Center Ave Big Sky MT 59716 www.bigskymedicalcenter.com 13563 X X X Big Sky Medical Center LLC 2 1 1 0 0 1 X 150.000000000000 250.000000000000 X X X X 1 1 X X X 1 X See Part V, Page 8 X See Part V, Page 8 X See Part V, Page 8 X X X X X X X 1 X 0 X X X X 1 X 0 1 Big Sky Medical Center, LLC Part V, Section B, Line 2: Hospital license granted December 10, 2015. Big Sky Medical Center, LLC Part V, Section B, Line 13h: Any individual and their dependents who are at 150% of the Federal Poverty income level or below will be eligible to receive a 100% write-off of the self-pay portion of incurred charges, upon completion of an application. Completion of the Financial Assistance application will be required. Catastrophic Financial Assistance is available to individuals who have a large balance remaining after all third party payments have been taken into account. The balance under consideration is that amount which is deemed to be the patient's financial responsibility. If such responsibility is greater than 50% of the family's annual household income, the excess amount will be treated as Catastrophic Financial Assistance and written off of the patient's account. This assistance is available without respect to the FPG, but they must follow the same process as all other patients seeking financial assistance based upon FPG. Asset tests are not used for determining any level of financial assistance. Prior to providing services, BH will make an effort to notify the patient regarding their eligibility for financial assistance. Big Sky Medical Center, LLC Part V, Section B, Line 16j: Medical Advocacy Services in Healthcare (MASH) will give out our financial application after determining patient is ineligible for federal and state programs. A summary of the financial assistance policy is attached to billing invoices, posted in patient admissions area, and provided to patient on admission to the hospital facility. Big Sky Medical Center, LLC Part V, Section B, Line 24: All individuals eligible under the hospital financial assistance policy are provided a discount for emergency and other medically necessary care. The financial assistance policy does not apply to elective procedures. Therefore, FAP-eligible patients without insurance may be billed gross charges on elective procedures. Schedule H, Part V, Section B, Line 16a-16c: www.bigskymedicalcenter.org/For-Patients-Visitors/Financial- Services/Financial-Assistance-Program.aspx 5 1 - Deaconess Intercity Imaging LLC 915 Highland Blvd Bozeman MT 59715 Outpatient Imaging Center 2 - Rocky Mountain Surgery Center LLC 1450 Ellis St Suite 101 Bozeman MT 59715 Outpatient Surgical Center 3 - Hospice of Southwest Montana LLC 3810 Valley Commons Dr Ste 1 Bozeman MT 59715 Hospice Services 4 - Bozeman Health Urgent Cares LLC 106 W Main Bozeman MT 59715 Outpatient Health Care 5 - Bozeman Health Medical Group LLC 915 Highland Blvd Bozeman MT 59715 Contracted Physician Services Part I, Line 3c: Any individual and their dependents who are at 150% of the Federal Poverty income level or below will be eligible to receive a 100% write-off of the self-pay portion of incurred charges, upon completion of an application. Completion of the Financial Assistance application will be required. Catastrophic Financial Assistance is available to individuals who have a large balance remaining after all third party payments have been taken into account. The balance under consideration is that amount which is deemed to be the patient's financial responsibility. If such responsibility is greater than 50% of the family's annual household income, the excess amount will be treated as Catastrophic Financial Assistance and written off of the patient's account. This assistance is available without respect to the FPG, but they must follow the same process as all other patients seeking financial assistance based upon FPG. Asset tests are not used for determining any level of financial assistance. Prior to providing services, BH will make an effort to notify the patient regarding their eligibility for financial assistance. Part I, Line 6a: The organization's community benefit report can be found on its website at http://www.bigskymedicalcenter.org/For-Community.aspx Part I, Line 7: The cost to charge ratio from Worksheet 2 was used to obtain the costs related to Charity Care, Medicaid, and Other Means-Tested Programs. All net benefit expenses were calculated using direct costs and revenue with reasonable indirect overhead allocation methods. Benefits are allocated at 23% of payroll dollars. For Subsidized Services, other indirect overhead costs are allocated based on historical reasonableness of 15% of total expenses. Our internal system does record patient revenues based on type (inpatient vs. outpatient vs. emergency) and payor (Medicaid, Medicare, Commercial, Self-Pay, etc.). Related costs are then determined based on the pro-rated share as a percentage of the total. For example, if Medicaid comprises 7% of a department's revenue, Medicaid expenses are calculated at 7% of the total as well. Part I, Line 7g: Amount of cost attributable to a physician clinic is $3,561,509. The Urgent Care disregarded entity was reported as a subsidized services, pulling out the financial assistance and Medicaid to report separately as appropriate. 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 $ 1,284,741. Part III, Line 2: Bad debt is reported at charges as recorded by the organization and included joint ventures. Bad debt is reported based upon actual bad debt expense net of discounts and contractual adjustments, less recoveries. Part III, Line 4: The footnote to the organization's financial statements that describes bad debt expenses is located in Footnote 1 on page 9 of the attached financial statements. Part III, Line 8: The entire amount of shortfall should be considered a community benefit.The Medicare shortfall represents a cost absorbed by the Hospital as a result of providing care to Medicare patients. The contract driving this loss is a nondiscretionary contract, as is providing the services to this population of individuals. The cost of providing this benefit to the community should be reportable as such. Medicare allowable costs of care are based on the Medicare cost report. The Medicare cost report is completed based on the rules and regulations set forth by Centers for Medicare and Medicaid Services.For the Joint Ventures, Net Medicare Revenue was used as the revenue received, and that percentage of total revenues was applied against operating expenses to determine related costs. The Joint Venture portion of the shortfall is $767,508. Part III, Line 9b: Bozeman Health's Financial Assistance Policy explains the patient notification practice that includes providing the patient, either directly or through its contracted collection agency with at least one written notice informing the patient about the Extraordinary Collection Actions that we intend to take if the patient does not submit an Application for Financial Assistance or pay the amount due by at least thirty days following the date of the notice. The notice will include a copy of the plain language summary and will not be mailed or delivered to a patient earlier than 30 days prior to the end of the Notification Period. No Extraordinary Collection Actions will be undertaken during the 120 day Notification Period, during which time we will take reasonable efforts to determine whether the patient is eligible for Financial Assistance. After the 120 day Notification Period, an Extraordinary Collection Action will be undertaken only if the patient has received the 30 day written notice described above. Extraordinary Collection Actions are defined as those actions that may be taken in the event of non-payment following the expiration of the notification period. These may include the reporting of adverse information about the individual to consumer credit reporting agencies or credit bureaus, garnishment of an individual's wages, and/or commencement of a legal civil action against an individual. Part VI, Line 2: Bozeman Health (BH) had previously conducted a Health Needs Assessment for a hospital which is now formed as a separate corporation, Bozeman Health Deaconess Hospital (BHDH). Currently, the only hospital facility that rolls into Bozeman Health as a disregarded entity is Big Sky Medical Center (BSMC).In the fall of 2016 and in collaboration with our partners in the Healthy Gallatin Coalition on Nutrition and Physical Activity, BH led an in-depth qualitative study of parents and children in Gallatin County to gain insight into why there is a decrease in healthy weight and behaviors. The objective of this project was to learn and understand what children and families understood about healthy living and behaviors related to it and use the information to develop strategies to reverse the trend. Bozeman Health also reviews surveys completed by health initiative partners such as HRDC. Part VI, Line 3: Bozeman Health is deeply committed to providing financial assistance to patients needing, but unable to afford, medically necessary health care services. As a hospital operating in the Bozeman Health system, Big Sky Medical Center (BSMC) posts notice of its Financial Assistance Policy in all admitting areas, as well as on the website. At the earliest feasible time, BSMC will attempt to determine whether a patient has third party coverage for any part of the hospital services provided. If a patient does not have third party coverage, a patient advocate from the MASH program will screen all inpatient cases and any outpatient cases exceeding $1,000 in total charges to determine if the patient qualifies for third party funding. If not, the patient advocate will explain the Financial Assistance Policy and give the patient an application if desired. In circumstances where payment in full will cause financial hardship that will significantly harm the patient or patient's family, the applicant may be asked to visit with Consumer Credit Counseling Services to further review their financial situations. Upon request, patients may be asked to complete an application for Medicaid participation or for coverage by other governmental payment programs. Patient bills also contain billing information explaining financial options and provide contact information to the appropriate resources. Part VI, Line 4: Bozeman Health Big Sky Medical Center (BSMC) primarily serves a three zip code region in Gallatin County Montana: 59716 Big Sky, 59730 Gallatin Gateway, and 59758 West Yellowstone (note that in certain zip code boundary definitions, 59716 Big Sky is in both Gallatin and Madison County-although the most populous area is in Gallatin County). These 3 communities account for more than 70% of clinic visits at BSMC Big Sky Clinic in 2016. In addition, these same communities account for 33.33% of BSMC's inpatient admissions while 54.17% were of patients originating outside Montana-likely because the Big Sky area is a popular tourist destination.The population of the tri-zip code area was an estimated 6,201 (59716: 2,117, 59730: 1,862, and 59758: 2,222) in 2016. The average per capita income in the combined communites was an estimated $33,300 and 4.6% of families were estimated to be in poverty in 2015 (ACS 5yr estimates, 2015). 2017 estimates suggest that 12.8% of the population in the tri-zip code area are covered by Medicaid, 5.5% are uninsured, and 14.7% are insured under Medicare (Truven Health Analytics). Bozeman Health Big Sky Medical Center is the only hospital in the BSMC three zip code service area, and is one of two hospitals in Gallatin County (Bozeman Health Big Sky Medical Center and Bozeman Health Deaconess Hospital). Prior to opening of BSMC in Dec 2015, the communities served by BSMC were designated as a Primary Care Health Professional Shortage (HPSA) Geographic Area (http://dphhs.mt.gov/publichealth/primarycare/-shortage-area-designations) based on 2014 HPSA data, most recently available from MT DPHHS. Part VI, Line 5: As a sole community hospital, Bozeman Health Big Sky Medical Center (BSMC) is committed to providing quality care and promoting health to the very community that supports us. BSMC governing body is represented by individuals of our community, with all but one being independent to our organization. To ensure immediate access to care, BSMC has an open medical staff and requires each medical staff member to care for anyone presenting a need for care in the Emergency Department. We also devote a significant amount of surplus funds to maintaining a high level of patient care through quality initiatives and technology investments.Various employees, physicians, administrators, and board members of the Hospital are actively involved in volunteer roles including community board positions in numerous other activities, groups, and organizations that actively promote the health of the community. Part VI, Line 6: Bozeman Deaconess Health Services owned a majority interest in Deaconess Intercity Imaging, LLC and Rocky Mountain Surgery Center in 2016. Although these joint ventures are not licensed hospitals, these organizations hold similar policies regarding providing care to all members of the community and offering financial assistance as determined by ability to pay. 1 Western Montana Mental Health Center Bldg T-9 Fort Missoula Rd Missoula MT 59804 810307814 501(c)(3) 317500 Support community health crisis programs within our service area Greater Gallatin United Way 945 Technology Blvd 101F Bozeman MT 59718 810384820 501(c)(3) 50000 Support human service needs within our service area Community Health Partners 126 S Main Street Livingston MT 59047 841420492 501(c)(3) 38000 Support community health programs within our service area GoNoodle 209 10th Ave S STE 350 Nashville TN 37203 203456491 31239 Provide healthy activity options to school districts Nami Montana 616 Helena Ave 218 Helena MT 59601 810441706 501(c)(3) 10000 Support community mental health crisis programs within our service area 4 1 Part I, Line 2: Recipients of grants and assistance prepare informational reports substantiating the use of the funds that were earmarked to support community health programs. Involvement of Bozeman Deaconess Health Services staff and/or administration as volunteers in the activities being supported also ensures proper usage of funds. X 1 0 X X X 0 0 0 0 0 0 0 0 0 Dr Dane Sobek Secretary/Cardiologist 573770 0 40300 0 540 0 38194 0 22770 0 675574 0 0 0 John Hill President/CEO (Aug-Dec) 205248 0 50000 0 15574 0 0 0 9915 0 280737 0 0 0 Gordon Davidson Interim CEO (Jan-Aug)/VP Finance/CFO 430525 0 50045 0 13683 0 44790 0 17570 0 556613 0 0 0 David Chen MD Interim CEO (Jan-Aug)/CMO 423142 0 52573 0 5782 0 32525 0 24914 0 538936 0 0 0 Elizabeth Lewis COO 260343 0 39069 0 16190 0 40818 0 16070 0 372490 0 0 0 Annie Castillo MD Oncology 487459 0 58768 0 1548 0 15900 0 3523 0 567198 0 0 0 Blair Erb MD Cardiology 509395 0 50000 0 1548 0 33855 0 21230 0 616028 0 0 0 Nathanial Madsen MD Cardiology 575770 0 49375 0 360 0 36861 0 20770 0 683136 0 0 0 Hugh Hetherington MD Otolaryngology/Plastic Surgery 496585 0 0 0 1548 0 37063 0 27556 0 562752 0 0 0 Ken May MD Oncology 488242 0 60735 0 360 0 15900 0 11830 0 577067 0 0 0 Part I, Line 1a Per contract, the CEO is reimbursed $12,500 for housing. This benefit is reported as taxable compensation. The housing allowance was agreed upon as part of the compensation determination and employment agreement of the CEO, and therefore the orgnazation does not require the CEO to submit a receipt for this allowance. A Montana Facility Finance Authority 364615155 61240MBM8 2014-11-05 23005852 Refinance 2004 bond issued 3/4/2004 & fund add'n of Big Sky Medical Facility 0 0 0 B Montana Facility Finance Authority 364615155 2015-01-09 6300000 Portion for Big Sky Medical Facility 0 0 0 A 485000 23005852 3032 377976 17500000 5127876 2015 1 0 0 1 B 6300000 15123 6284877 2016 0 0 0 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 0 0 0 0 0 1 B 0 0 0 0 0 0 0 0 1 A 1 B 1 Schedule K, Part II, Line 3, column(C): The amount on line 3 includes $20,680,164 of proceeds and $13,042 of interest earned. Schedule K, Part I, Line B(e): Part I issue price and Part II Line 3 bond proceeds differ due to interest earned on the proceeds. Schedule K, Part I, Line C(e): Part I issue price and Part II Line 3 bond proceeds differ due to interest earned on the proceeds. Cash 2016-01-01 5973 Book value 474717998 Bozeman Health Deaconess Hospital 915 Highland Blvd Bozeman MT 59715 501(c)(3) Net Receivables 2016-01-01 40166798 Book value 474717998 Bozeman Health Deaconess Hospital 916 Highland Blvd Bozeman MT 59716 501(c)(3) Inventory 2016-01-01 6809369 Book value 474717998 Bozeman Health Deaconess Hospital 917 Highland Blvd Bozeman MT 59717 501(c)(3) Prepaid Expenses 2016-01-01 790285 Book value 474717998 Bozeman Health Deaconess Hospital 918 Highland Blvd Bozeman MT 59718 501(c)(3) Investments 2016-01-01 118764109 Book value 474717998 Bozeman Health Deaconess Hospital 919 Highland Blvd Bozeman MT 59719 501(c)(3) PP&E 2016-01-01 104048322 Book value 474717998 Bozeman Health Deaconess Hospital 920 Highland Blvd Bozeman MT 59720 501(c)(3) Goodwill 2016-01-01 1798133 Book value 474717998 Bozeman Health Deaconess Hospital 921 Highland Blvd Bozeman MT 59721 501(c)(3) Payables 2016-01-01 -13682482 Book value 474717998 Bozeman Health Deaconess Hospital 922 Highland Blvd Bozeman MT 59722 501(c)(3) Debt 2016-01-01 -22218774 Book value 474717998 Bozeman Health Deaconess Hospital 923 Highland Blvd Bozeman MT 59723 501(c)(3) 1 0 0 0 Part II, Line 2e: Person(s) Involved: Bozeman health and Bozeman Health Deaconess Hospital have the same governing boards. Bozeman Health is the sole member of Bozeman Health Deaconess Hospital. Form 990, Part III, line 2 Bozeman Health opened a 4 licensed bed hospital in Big Sky in December 2015. Form 990, Part III, line 3 The Organization conducted a reorganization effective January 1, 2016. The Organization no longer operates Bozeman Deaconess Health Services inside this entity. The operations of that hospital are operated under the newly formed Bozeman Health Deaconess Hospital, a separately filing nonprofit. Hillcrest Senior Living LLC and Bozeman Health Clinical Research, previous disregarded entities, legally dissolved in 2015. The operations of these entities are operated under the newly formed Bozeman Health Deaconess Hospital. Form 990, Part VI, Section A, line 7a The Yellowstone Conference of the Methodist Church confirms the Board Members and has authority to appoint the clergy member of the board. Form 990, Part VI, Section A, line 7b Changing the Articles of Incorporation in relationship to the process of selecting board membership must be approved by the Yellowstone Conference of the United Methodist Church. Form 990, Part VI, Section A, line 8b The organization does not have any committees with the authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b The Finance Committee will review Form 990 in detail and will make a recommendation to the full Board for approval before filing of the Form 990. The CFO reviews the Form 990 at a higher level with the board before approval is granted. Form 990, Part VI, Section B, line 12c In-house Counsel identifies potential conflicts from annual disclosures and informs the Board Chair. The Board Chair discusses the conflict and decides whether the conflict is of such a nature to exclude the conflicted party from discussion and/or vote. This policy covers all Board members, Officers, Senior Administration, and key employees. Form 990, Part VI, Section B, line 15 The Executive Committee receives a formal presentation by an independent compensation consultant (as selected by the Board) qualified to perform compensation reviews including usage of comparability data. This person presents recommendations to the Compensation Committee of the Board. The Compensation Committee makes recommendations to the full Board on an annual basis for Officers and Senior Administration. This annual process was performed in fall 2016 to determine 2017 compensation. Form 990, Part VI, Section C, line 19 Governing documents, conflict of interest policy, and all tax related information required to be available for public inspection are available via walk-in, telephone call, e-mail, and/or mail-in request. The audited financial statements are required to be attached to the Form 990 and provided to the Municipal Securities Rulemaking Board, which is our tax-exempt bonds trustee, via an on-line, central filing location called Electronic Municipal Market Access (EMMA). The financial statements can be obtained by the general public at the EMMA website. Form 990, Part XI, line 9: Transfers to related parties -234,699,089. Change in Temp & Perm Restricted Investment of Foundation -286,759. Big Sky Medical Center LLC 334 Town Center Ave Big Sky MT 59716 474718253 Healthcare - Inpatient and Outpatient Servcies MT 4154482 34915128 Bozeman Deaconess Health Services Bozeman Health Urgent Cares LLC 915 Highland Blvd Bozeman MT 59715 465318746 Healthcare - Physician Outpatient Care MT 3151720 3797824 Bozeman Deaconess Health Services Bozeman Health Medical Group LLC 915 Highland Blvd Bozeman MT 59715 475126599 Physician Employment & Contract to Bozeman Health System MT 31026037 1410159 Bozeman Deaconess Health Services Bozeman Deaconess Foundation dba Bozeman Health Foundation 931 Highland Blvd Suite 3200 Bozeman MT 59715 841407943 Raise funds to support Bozeman Deaconess Health Services MT 501(c)(3) Line 7 Bozeman Deaconess Health Services 1 Bozeman Health Deaconess Hospital 915 Highland Blvd Bozeman MT 59715 474717998 Healthcare - Inpatient and Outpatient Services MT 501(c)(3) Line 3 Bozeman Deaconess Health Services 1 Deaconess Intercity Imaging LLC 915 Highland Blvd Bozeman MT 59715 810666871 Healthcare - Imaging Services MT Bozeman Deaconess Health Services Related 1548189 3321743 0 1 0.77500 Rocky Mountain Surgical Center LLC 1450 Ellis St Suite 101 Bozeman MT 59715 364462300 Healthcare - Surgical Services MT Bozeman Deaconess Health Services Related 3375642 3626822 0 0 0.51010 Spanish Peaks Plaza LLC 120 N 19th Ave Suite A Bozeman MT 59718 810539803 Rental Real Estate for VA Med Clinic & Chiro MT Bozeman Deaconess Health Services Related 14153 265425 0 1 0.44990 Bozeman Deaconess Real Estate Development Corp PO Box 10490 Bozeman MT 59719 205496567 Sale of real estate property and residences to seniors MT Bozeman Deaconess Health Services C 4324963 9622288 1.00000 1 0 1 1 1 0 0 0 0 1 0 0 1 1 1 1 1 1 1 1 Deaconess Intercity Imaging LLC B 1069500 General ledger and corp. records Deaconess Intercity Imaging LLC S 1531400 General ledger and corp. records Bozeman Health Deaconess Hospital I 236481656 General ledger and corp. records Bozeman Deaconess Foundation C 1543224 General ledger and corp. records Bozeman Deaconess Foundation Q 72457 General ledger and corp. records Rocky Mountain Surgical Center LLC S 3012982 General ledger and corp. records Bozeman Health Deaconess Hospital L 66220128