2017-05-15T12:09:11-05:00 2016-06-30 GRANT THORNTON LLP 2001 MARKET STREET SUITE 700 PHILADELPHIA PA 19103 990 2015-07-01 208544021 St Joseph Medical Group % COURTNEY COFFMAN STJO 6103782300 2500 Bernville Road PO Box 316 Reading PA 19605 COURTNEY COFFMAN VP of Finance 6103782300 2017-05-15 true Russlee Armstrong P00288383 2155614200 2015 2021-01-29 14:40:06Z John Morahan 2500 Bernville Road Reading PA 19605 39544582 false X www.thefutureofhealthcare.org X 2007 PA OPERATE SEVERAL PHYSICIAN CLINICS TO PROVIDE HEALTHCARE SERVICES AND PROMOTE A HEALTHIER COMMUNITY THROUGH SERVICES AND EDUCATION THAT EMPHASIZES WELLNESS. 3 1 0 1 0 0 17323946 21461001 15214352 17784181 -1194 230 273009 299170 32810113 39544582 0 0 0 0 23790715 13989935 0 0 0 9342729 27223507 33133444 41213442 -323331 -1668860 3416815 3631016 2914853 5299876 501962 -1668860 X THE MISSION OF THE CORPORATION IS TO NURTURE THE HEALING MINISTRY OF THE CHURCH, SUPPORTED BY EDUCATION AND RESEARCH. FIDELITY TO THE GOSPEL URGES THE CORPORATION TO EMPHASIZE HUMAN DIGNITY AND SOCIAL JUSTICE AS IT CREATES HEALTHIER COMMUNITIES. THE CORPORATION, SPONSORED BY A LAY-RELIGIOUS PARTNERSHIP, CALLS OTHER CATHOLIC SPONSORS AND SYSTEMS TO UNITE TO ENSURE THE FUTURE OF CATHOLIC HEALTH CARE. TO FULFILL THIS MISSION, THE CORPORATION, AS A VALUES-BASED ORGANIZATION, WILL ASSURE THE INTEGRITY OF THE MINISTRY IN BOTH CURRENT AND DEVELOPING ORGANIZATIONS AND ACTIVITIES; RESEARCH AND DEVELOP NEW MINISTRIES THAT INTEGRATE HEALTH, EDUCATION, PASTORAL, AND SOCIAL SERVICES; PROMOTE LEADERSHIP DEVELOPMENT AND FORMATION FOR MINISTRY THROUGHOUT THE ENTIRE ORGANIZATION; ADVOCATE FOR SYSTEMIC CHANGES WITH SPECIFIC CONCERN FOR PERSONS WHO ARE POOR, ALIENATED, AND UNDERSERVED; AND STEWARD RESOURCES BY GENERAL OVERSIGHT OF THE ENTIRE ORGANIZATION. false false 39028847 17809181 ST. JOSEPH MEDICAL GROUP (SJMG) PROVIDES QUALITY PROFESSIONAL MEDICAL SERVICES TO ITS COMMUNITY IN CONJUNCTION WITH, AND IN SUPPORT OF, ST. JOSEPH REGIONAL HEALTH NETWORK, IN READING, PENNSYLVANIA, WHICH IS ALSO A 501(C)(3) CHARITABLE, TAX EXEMPT ORGANIZATION. SJMG PROVIDES THESE SERVICES TO THE CITIZENS OF ITS COMMUNITY WITHOUT REGARD TO RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP OR AGE. IT IS RECOGNIZED THAT NOT ALL INDIVIDUALS POSSESS THE ABILITY TO PAY FOR ESSENTIAL MEDICAL SERVICES AND MEDICAL EDUCATION. THEREFORE, IN KEEPING WITH THE COMMITMENT OF SJMG AND ST. JOSEPH REGIONAL HEALTH NETWORK TO SERVE ALL MEMBERS OF THE COMMUNITY, FREE CARE AND/OR SUBSIDIZED CARE, CARE PROVIDED TO PERSONS COVERED BY GOVERNMENT PROGRAMS AT BELOW COST, AND HEALTH ACTIVITIES AND PROGRAMS TO SUPPORT THE COMMUNITY WILL BE CONSIDERED WHERE THE NEED AND INDIVIDUAL'S INABILITY TO PAY COEXIST. SJMG PROVIDES THE FOLLOWING PROFESSIONAL MEDICAL SERVICES TO ITS COMMUNITY THROUGH ITS DULY-LICENSED PHYSICIANS, EMPLOYEES AND CONTRACTORS: FAMILY MEDICINE, OB/GYN, GENERAL SURGICAL SERVICES, NEUROLOGY, NEUROSURGERY, VASCULAR SERVICES, ORTHOPEDICS, AND CONTINUING COMMUNITY AND MEDICAL EDUCATION SERVICES. 39028847 true true false false false false false false false false true false false false true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true 0 0 0 true false false false false false false false false false false X 3 1 false false true false true true true true true false false true true true true true true false false false PA X COURTNEY COFFMAN 6103782300 2500 BERNVILLE ROAD Reading PA 19605 X David Lim board mem/Sec/Treas/SJRHN-CFO 2.0 38.0 X X 0 401263 42101 John Morahan board mem/President/SJRHN-CEO 2.0 38.0 X X 0 767259 43583 Heidi Masano Board Member 2.0 0.0 X 0 0 0 Martin Ross physician 40.0 0.0 X 0 713189 37675 Kirk McMurtry physician 40.0 0.0 X 0 642012 24728 Christian Gilbert physician 40.0 0.0 X 0 536992 32810 Andre Robinson physician 40.0 0.0 X 0 534176 35314 Pathanjali Sharma physician 40.0 0.0 X 0 466133 19218 0 4061024 235429 0 false true false Milton S Hershey Medical Center 500 University DrIVE HERSHEY PA 17033 Physician Services 1242939 Mountain Management Services 5600 Brainerd ROAd Suite 500 CHATTANOOGA TN 37411 Billing Services 1141171 Comphealth PO Box 972625 DALLAS TX 75397 healthcare staffing 449530 Cental Penn Management Group 1600 Cloister DrIVE LANCASTER PA 17601 Billing Services 302278 Allied Health 4775 peachtree industrial blvd ste BERKELEY LAKE GA 30092 healthcare staffing 241850 5 21461001 21461001 NET PATIENT SERVICE REVENUE 621111 17784181 17784181 17784181 230 230 0 0 9900 9900 0 9900 9900 0 0 0 0 LEASED EMPLOYEES 900099 264250 264250 MEDICAL DIRECTOR FEES - RELATED PARTY 900099 25000 25000 MISCELLANEOUS REVENUE 900099 20 20 289270 39544582 17809181 274400 0 0 0 0 0 0 0 11392814 11172020 220794 600339 573848 26491 1119342 1031352 87990 877440 838586 38854 0 0 0 0 0 0 21009548 19803032 1206516 0 461934 438214 23720 423058 423058 0 1963852 1902494 61358 62574 61418 1156 0 9438 7905 1533 0 0 129779 85391 44388 800404 799966 438 BAD DEBTS 1558408 1558408 0 0 MEDICAL SUPPLIES 606097 606097 0 0 MISCELLANEOUS EXPENSES 88947 42198 46749 DUES & SUBSCRIPTIONS 75428 74118 1310 34040 33800 240 41213442 39028847 2184595 0 0 0 1088548 531136 0 0 2179407 1669902 0 0 0 0 0 0 0 0 3436 697686 862071 129779 145424 732292 0 0 0 0 0 0 0 0 0 0 3416815 3631016 2604288 2729357 0 0 0 0 0 0 0 0 0 0 0 0 0 0 310565 2570519 2914853 5299876 X 501962 -1668860 0 0 0 0 501962 -1668860 3416815 3631016 X -1668860 -501962 X false true X true false X 7051149 10116370 14624364 13859824 21461001 67112708 9930932 10656957 13485018 18678474 17784181 70535562 0 0 0 16982081 20773327 28109382 32538298 39245182 137648270 0 0 0 137648270 1023 1465 92 10506 10130 23216 0 1023 1465 92 10506 10130 23216 0 0 151713 255000 261309 289270 957292 16983104 20926505 28364474 32810113 39544582 138628778 0.99293 0.99390 0.00017 0.00012 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 335150 48687 286463 526921 81092 445829 0 0 732292 0 MEDICAL PROFESSIONAL FEES 1117175 ACCRUED EXPENSES 850550 401K CONTRIBUTION 321287 PHYSICIAN BILLING FEES 280316 RENT 750 USE TAX 441 2570519 false true false false false false false false false David Lim board mem/Sec/Treas/SJRHN-CFO 0 278655 0 48554 0 74054 0 16330 0 25771 0 443364 John Morahan board mem/President/SJRHN-CEO 0 496185 0 64728 0 206346 0 27738 0 15845 0 810842 Martin Ross physician 0 555835 0 26811 0 130543 0 9275 0 28400 0 750864 Kirk McMurtry physician 0 597003 0 20000 0 25009 0 9275 0 15453 0 666740 Christian Gilbert physician 0 498563 0 17500 0 20929 0 7337 0 25473 0 569802 Andre Robinson physician 0 533336 0 0 0 840 0 9260 0 26054 0 569490 Pathanjali Sharma physician 0 438600 0 12250 0 15283 0 9275 0 9943 0 485351 SCHEDULE J, PART I, LINE 3 THE FIRST HALF OF THE CALENDAR YEAR 2015 COMPENSATION TO THE CEO WAS PAID BY CATHOLIC HEALTH INITIATIVES (CHI). THE SECOND HALF OF THE CALENDAR YEAR 2015 COMPENSATION TO THE CEO WAS PAID BY PENN STATE HEALTH OR ITS RELATED ORGANIZATION. ARRANGEMENT USED TO ESTABLISH THE CEO'S COMPENSATION FOR THE PERIOD 1/1/2015 - 6/30/2015: COMPENSATION FOR THE CEO THAT WAS ESTABLISHED AND PAID BY CHI USED THE FOLLOWING TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) WRITTEN EMPLOYMENT CONTRACTS; (4) COMPENSATION SURVEY OR STUDY; (5) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. ARRANGEMENT USED TO ESTABLISH THE CEO'S COMPENSATION FOR THE PERIOD 7/1/2015 - 12/31/2015: COMPENSATION FOR THE CEO THAT WAS ESTABLISHED AND PAID BY PENN STATE HEALTH OR ITS RELATED ORGANIZATION USED THE FOLLOWING TO ESTABLISH THE TOP MANAGEMENT OFFICIAL'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) COMPENSATION SURVEY OR STUDY; (4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING THE 2015 CALENDAR YEAR CATHOLIC HEALTH INITIATIVES (CHI), A RELATED ORGANIZATION, MAINTAINED A SUPPLEMENTAL NON-QUALIFIED DEFERRED COMPENSATION PLAN FOR MARKET BASED ORGANIZATION CEOS AND OTHER CHI EMPLOYEES AT THE LEVEL OF SENIOR VICE PRESIDENT AND ABOVE. THE FOLLOWING REPORTABLE INDIVIDUALS WERE ELIGIBLE TO PARTICIPATE IN THAT PLAN: JOHN MORAHAN DURING 2015 THE FOLLOWING CONTRIBUTIONS WERE MADE BY CHI TO THE DEFERRED COMPENSATION PLAN: JOHN MORAHAN $20,611 DURING 2015 THE FOLLOWING DISTRIBUTIONS WERE MADE BY CHI FROM THE DEFERRED COMPENSATION PLAN: JOHN MORAHAN $109,277 SCHEDULE J, PART I, LINE 7 Bonuses, paid by a related organization, are based on a number of variables including but not limited to individual goal achievements as well as organization operation achievements. The final determination of the bonus amount is determined and approved by the board as part of the overall compensation review of the officers, key employees and highest compensated. FORM 990, PART VI, LINE 4 SIGNIFICANT CHANGES TO GOVERNING DOCUMENTS: THE FILING ORGANIZATION WAS ACQUIRED ON JULY 1, 2015, BY PENN STATE HEALTH. AS A RESULT OF THE ACQUISITION, THE FILING ORGANIZATION'S GOVERNING DOCUMENTS WERE FULLY REVISED. FORM 990, PART VI, LINE 6 CLASSES OF MEMBERS OR STOCKHOLDERS: AT JULY 1, 2015, THE FILING ORGANIZATION'S SOLE MEMBER BECAME PENN STATE HEALTH, A PENNSYLVANIA NONPROFIT CORPORATION. FORM 990, PART VI, LINE 7A ELECTING MEMBERS OF GOVERNING BODY: DIRECTORS SHALL BE ELECTED BY THE CORPORATE MEMBER, PENN STATE HEALTH. THE CORPORATE MEMBER MAY AT ANY TIME REMOVE, WITH OR WITHOUT CAUSE, ANY MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VI, LINE 7B DECISIONS REQUIRING APPROVAL BY MEMBERS OR STOCKHOLDERS: PURSUANT TO THE FILING ORGANIZATION'S BYLAWS THE CORPORATE MEMBER HAS RESERVED POWERS AS FOLLOWS: - TO DETERMINE THE NUMBER OF AND TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE DIRECTORS OF THE FILING ORGANIZATION; - TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, AND TO DETERMINE THE COMPENSATION OF, THE EXECUTIVE DIRECTOR OF THE FILING ORGANIZATION; - TO ELECT AND REMOVE, WITH OR WITHOUT CAUSE, THE CHAIRPERSON AND VICE CHAIRPERSON OF THE FILING ORGANIZATION; - TO UNDERTAKE OR TO APPROVE THE ISSUANCE OF ANY DEBT BY THE FILING ORGANIZATION; - TO REQUIRE THE TRANSFER OF ASSETS FROM THE FILING ORGANIZATION TO THE CORPORATE MEMBER TO FURTHER THE OBJECTIVES OF THE CORPORATE MEMBER; - TO UNDERTAKE OR APPROVE ANY TRANSFER OF ASSETS TO ANY ENTITY OTHER THAN THE CORPORATE MEMBER OR ANY SUBSIDIARY OR AFFILIATE OF THE FILING ORGANIZATION OR THE CORPORATE MEMBER; - TO ESTABLISH OR APPROVE ALL LONG-RANGE AND STRATEGIC PLANS OF THE FILING ORGANIZATION; - TO ESTABLISH OR APPROVE THE ADOPTION OF ALL OPERATING AND CAPITAL BUDGETS AND AMENDMENTS THERETO; - TO APPROVE ANY EXPENDITURES FOR NON-BUDGETED ITEMS IN EXCESS OF CERTAIN DOLLAR LIMITS SET BY THE CORPORATE MEMBER, AS WELL AS FOR ANY ITEMS INCLUDED IN THE FILING ORGANIZATION'S ANNUAL BUDGETS BUT EXCEEDING THE BUDGETED AMOUNT BY MORE THAN CERTAIN DOLLAR LIMITS SET BY THE CORPORATE MEMBER; - TO INITIATE OR APPROVE ANY AND ALL AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS OF THE FILING ORGANIZATION; - TO INITIATE OR TO APPROVE ALL FUNDAMENTAL CHANGE TRANSACTIONS AND ALL OTHER TRANSACTIONS NOT IN THE ORDINARY COURSE OF BUSINESS, INCLUDING WITHOUT LIMITATION, ALL MERGERS, CONSOLIDATIONS, DIVISIONS, SALES OF SUBSTANTIALLY ALL ASSETS, AND LIQUIDATION OR DISSOLUTION OF THE FILING ORGANIZATION; - TO SELECT AND APPOINT AUDITORS FOR, AND TO DESIGNATE THE FISCAL YEAR OF, THE FILING ORGANIZATION AND ITS SUBSIDIARIES; - TO RETAIN COUNSEL ON BEHALF OF AND SETTLE ANY LITIGATION AGAINST THE FILING ORGANIZATION; - TO ESTABLISH AN OBLIGATED GROUP FOR FINANCING PURPOSES; - TO ADOPT EMPLOYEE BENEFIT PLANS; AND - TO GIVE SUCH OTHER APPROVALS AND TAKE SUCH OTHER ACTIONS AS ARE SPECIFICALLY RESERVED TO MEMBERS OF PENNSYLVANIA NONPROFIT CORPORATIONS. FORM 990, PART VI, LINE 11B REVIEW OF FORM 990 BY GOVERNING BODY: THE FORM 990 IS PREPARED BY AN EXTERNAL ACCOUNTING FIRM; IT IS REVIEWED BY ACCOUNTING/FINANCE DEPARTMENT PERSONNEL AND THE CHIEF FINANCIAL OFFICER. ONCE THE FORM 990 IS COMPLETE, IT IS DISTRIBUTED TO ALL MEMBERS OF THE BOARD BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, LINE 12C CONFLICT OF INTEREST POLICY: THE FILING ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST (COI) POLICIES FOR OFFICERS, DIRECTORS, AND KEY EMPLOYEES (COVERED PERSONS). PER THE POLICY, NO COVERED PERSONS MAY ENGAGE IN ANY TRANSACTION OR ARRANGEMENT OR UNDERTAKE POSITIONS WITH OTHER ORGANIZATIONS THAT INVOLVE A CONFLICT OF INTEREST, EXCEPT IN COMPLIANCE WITH THE POLICY. COVERED PERSONS WOULD AVOID BOTH ACTUAL CONFLICTS AND THE APPEARANCE OF CONFLICTS OF INTEREST. EVERY COVERED PERSON SHALL DISCLOSE ALL ACTUAL AND POTENTIAL CONFLICTS AND RECUSE HIMSELF OR HERSELF FROM VOTING ON ANY TRANSACTION OR ARRANGEMENT IN WHICH HE OR SHE HAS A POTENTIAL OR ACTUAL CONFLICT OF INTEREST, AND SHALL NOT BE PRESENT WHEN ANY SUCH VOTE IS TAKEN. ON AN ANNUAL BASIS, EVERY COVERED PERSON SHALL SIGN A STATEMENT THAT AFFIRMS THAT HE OR SHE HAS RECEIVED A COPY OF THE COI POLICY, HAS READ AND UNDERSTANDS IT, AND HAS AGREED TO COMPLY WITH IT, AND SHALL COMPLETE A QUESTIONNAIRE DISCLOSING HIS OR HER ACTUAL AND POTENTIAL CONFLICTS OF INTEREST ON AN ANNUAL BASIS. THE FILING ORGANIZATION DEFINES A POTENTIAL COI WHEN A COVERED PERSON OR ANY OF HIS OR HER FAMILY MEMBERS (SPOUSE, SIBLINGS, SPOUSES OF SIBLINGS, ANCESTORS, CHILDREN, GRANDCHILDREN, GREAT GRANDCHILDREN, AND SPOUSES OF CHILDREN, GRANDCHILDREN, AND GREAT GRANDCHILDREN), (1) RECEIVES COMPENSATION FROM THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY AS AN EMPLOYEE OR INDEPENDENT CONTRACTOR AND THE ARRANGEMENT AT ISSUE IS THE DETERMINATION OF THAT INDIVIDUAL'S COMPENSATION; (2) HAS OR ANTICIPATES HAVING ANY FINANCIAL INTEREST, INCLUDING AN OWNERSHIP INTEREST, INVESTMENT INTEREST, OR COMPENSATION ARRANGEMENT, IN OR WITH ANY ENTITY OR INDIVIDUAL THAT (I) SELLS GOODS OR SERVICES TO, OR PURCHASES SERVICES FROM, THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY; OR (II) HAS ANY OTHER TRANSACTION OR ARRANGEMENT WITH THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY; OR (3) SERVES OR ANTICIPATES SERVING AS A DIRECTOR, TRUSTEE OR OFFICER OF ANY ENTITY THAT EITHER: (I) SELLS GOODS OR SERVICES TO, OR PURCHASES SERVICES FROM THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY; OR (II) HAS ANY OTHER TRANSACTION OR ARRANGEMENT WITH THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY; OR (4) HAS ANY OTHER RELATIONSHIP THAT COULD LEAD TO USE OF INFORMATION RELATING TO THE BUSINESS OF THE FILING ORGANIZATION OR APPLICABLE SUBSIDIARY FOR PERSONAL PROFIT OR ADVANTAGE. ALL DISCLOSURES INVOLVING A TRANSACTION OR ARRANGEMENT BEING CONSIDERED AT A MEETING OF THE BOARD OF DIRECTORS OR COMMITTEE SHALL BE MADE TO ALL MEMBERS PRESENT AT SUCH MEETING. ALL OTHER DISCLOSURES SHALL BE MADE TO THE CHAIR (WHO SHALL DISCLOSURE HIS OR HER CONFLICT TO THE EXECUTIVE COMMITTEE AND/OR PRESIDENT/CEO). THE CHAIR AND OTHER APPLICABLE PERSONS SHALL DISCLOSE TO THE BOARD OF DIRECTORS ALL POTENTIAL CONFLICTS OF INTEREST REPORTED TO THEM UNDER THE POLICY. THE BOARD WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION OR ARRANGEMENT TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION OR ARRANGEMENT. A COVERED PERSON WHO HAS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH THE BOARD OF DIRECTORS OR A COMMITTEE IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE PRESENTATION TO THE BOARD OR COMMITTEE TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. THE MINUTES OF THE BOARD OF DIRECTORS OR ANY COMMITTEE OF THE BOARD FOR ANY MEETINGS SHALL CONTAIN THE NAMES OF THE PERSONS WHO DISCLOSED A CONFLICT OF INTEREST OR OTHERWISE WERE FOUND TO HAVE A CONFLICT OF INTEREST; THE NATURE OF THE CONFLICT OF INTEREST; ANY ACTION TAKEN TO DETERMINE WHETHER A CONFLICT OF INTEREST WAS PRESENT; THE BOARD'S OR COMMITTEE'S DECISION AS TO WHETHER A CONFLICT OF INTEREST IN FACT EXISTED; THE NAME OF THE PERSONS WHO WERE PRESENT FOR DISCUSSIONS AND VOTES RELATING TO THE TRANSACTION OR ARRANGEMENT; THE CONTENT OF THE DISCUSSION, INCLUDING ANY ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT CONSIDERED ANY COMPARARBILITY DATA RELIED UPON; AND A RECORD OF ANY VOTES TAKEN IN CONNCTION WITH THE ISSUE, TRANSACTION OR ARRANGEMENT. THE MINUTES OF ANY MEETINGS SHALL BE PREPARED BY THE LATTER OF THE NEXT SUCCEEDING MEETING OF THE BOARD OF DIRECTORS OR COMMITTEE, OR SIXTY DAYS AFTER THE FINAL ACTION ON THE MATTER IS TAKEN BY THE BOARD OF DIRECTORS OR COMMITTEE. IF THE BOARD OF DIRECTORS HAS REASONABLE CAUSE TO BELIEVE THAT A COVERED PERSON HAS FAILED TO COMPLY WITH THE POLICY, THE BOARD MAY COUNSEL THE COVERED PERSON REGARDING SUCH FAILURE AND, IF THE ISSUE IS NOT RESOLVED TO THE BOARD'S SATISFACTION, MAY CONSIDER ADDITIONAL CORRECTIVE ACTION, INCLUDING REMOVAL FROM THE BOARD OF DIRECTORS OR OTHER POSITION WITH THE FILING ORGANIZATION, AS APPROPRIATE. FORM 990, PART VI, LINE 15A & 15B PROCESS USED TO ESTABLISH COMPENSATION OF CEO 1/1/2015 - 6/30/2015 UNDER CATHOLIC HEALTH INITIATIVES: THE ORGANIZATIONS CEOS COMPENSATION IS PAID BY CATHOLIC HEALTH INITIATIVES (CHI), A RELATED ORGANIZATION. CHI HAS A DEFINED COMPENSATION PHILOSOPHY. BOTH THE EXECUTIVE AND NON-EXECUTIVE COMPENSATION STRUCTURES AND RANGES ARE REVIEWED ANNUALLY IN COMPARISON TO MARKET DATA. CHI USES THE HAY GROUP AS THE INDEPENDENT THIRD PARTY TO ASSESS EXECUTIVE COMPENSATION PROGRAMS AND TO ENSURE THE REASONABLENESS OF ACTUAL SALARIES AND TOTAL COMPENSATION PACKAGES. COMPENSATION OF THE SENIOR MOST EXECUTIVES IS REVIEWED ANNUALLY. THE HAY GROUP REVIEWS BOTH CASH AND TOTAL COMPENSATION FOR OVERALL REASONABLENESS, FOR ADHERENCE TO CHIS COMPENSATION PHILOSOPHY, AND FOR COMPARABILITY TO THE NOT-FOR-PROFIT HEALTHCARE MARKET. THIS INDEPENDENT REVIEW IS DELIVERED BY HAY GROUP TO THE HR COMMITTEE OF THE CHI BOARD OF STEWARDSHIP TRUSTEES ANNUALLY AT THEIR SEPTEMBER MEETING AND MINUTES ARE SHARED WITH THE FULL BOARD AT THE DECEMBER MEETING. THE LAST REVIEW WAS SEPTEMBER 18, 2015. IN ADDITION, IN DECEMBER 2009, HAY GROUP COMPLETED A COMPREHENSIVE REVIEW OF ALL POSITIONS AT THE LEVEL OF VICE PRESIDENT AND ABOVE TO DETERMINE AND VALIDATE APPROPRIATE COMPENSATION LEVELS. THESE LEVELS HAVE BEEN REVIEWED ANNUALLY SINCE AND REVISED BASED ON MARKET DATA, WHERE APPLICABLE. ALL COMPENSATION PAID TO OFFICERS, DIRECTORS, AND KEY EMPLOYEES IS REVIEWED AND APPROVED IN THE CONTRACT APPROVAL PROCESS. THIS PROCESS INCLUDES A REVIEW OF COMPARABILITY INFORMATION. ALL COMPENSATION DECISIONS ARE DOCUMENTED IN THE EMPLOYEES FILE AS WELL AS IN THEIR EMPLOYMENT CONTRACT. PROCESS USED TO ESTABLISH COMPENSATION OF CEO, OFFICERS, AND KEY EMPLOYEES 7/1/2015 - 12/31/2015 UNDER PENN STATE HEALTH: ANNUALLY, THE COMPENSATION COMMITTEE OF THE BOARD OF PENN STATE HEALTH ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT A COMPENSATION ANALYSIS FOR THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER, OFFICERS, AND KEY EMPLOYEES. AS PART OF THE ANALYSIS, THE INDEPENDENT COMPENSATION CONSULTANT IDENTIFIES, GATHERS, AND ANALYZES APPROPRIATE COMPARABILITY DATA UOPN WHICH THE COMMITTEE AND THE FULL BOARD WILL RELY TO ASSESS THE REASONABLENESS OF THE TOTAL PROPOSED COMPENSATION (INCLUDING BENEFITS) OF THE CEO, OFFICERS, AND KEY EMPLOYEES. ONCE THE COMPENSATION ANALYSIS IS COMPLETE AND DOCUMENTED IN REPORTS, THE REPORTS ARE PROVIDED TO PSH'S BOARD FOR REVIEW AND CONSIDERATION, TOGETHER WITH WRITTEN OPINIONS FROM THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION ARRANGEMENTS FOR THE CEO, OFFICERS, AND KEY EMPLOYEES ARE "REASONABLE" WITHIN THE MEANING OF TREASURY REGULATION 53.4958-4(B)(1)(II)(A). WITH INPUT FROM THE COMPENSATION COMMITTEE, THE FULL BOARD MAKES ANNUAL DECISIONS WITH RESPECT TO COMPENSATION FOR THE CEO, OFFICERS, AND KEY EMPLOYEES BASED UPON THE DATA IN THE REPORT AND THE OPINION OF THE COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION IS REASONABLE. THESE DECISIONS, THE BASIS FOR THESE DECISIONS, THE BOARD MEMBERS' NAMES WHO VOTE ON COMPENSATION, AND THAT NONE OF THE BOARD MEMBERS HAVE A CONFLICT OF INTEREST WITH RESPECT TO THESE COMPENSATION ARRANGEMENTS IS ALL CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES. FORM 990, PART VI, LINE 19 REQUIRED DOCUMENTS AVAILABLE TO THE PUBLIC: THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS ARE AVAILABLE AT WWW.PSU.EDU. FORM 990, PART VII St. Joseph Medical Center did not pay employees for the calendar year 2015; however, the Medical Group is electing for transparency to show five highest compensated individuals that were paid by a related organization because their services were rendered for the benefit of the Medical Group. FORM 990, PART XI, LINE 9 Reconciliation of Net Assets: Transfer of beginning fund balance to Catholic Health Initiatives ($501,962) FORM 990 PART IX LINE 11G DESCRIPTION:PHYSICIAN FEES TOTAL FEES:3841407 FORM 990 PART IX LINE 11G DESCRIPTION:BILLING FEES TOTAL FEES:1446007 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT LABOR TOTAL FEES:52500 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PURCHASED SERVICES TOTAL FEES:2262049 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACT SERVICES FOR MEDICAL TOTAL FEES:13407585 ST JOSEPH REGIONAL HEALTH NETWORK 2500 BERNVILLE RD PO BOX 316 READING PA 19603 231352211 HEALTHCARE PA 501(C)(3) 3 PSH false ST JOSEPH MEDICAL CENTER FOUNDATION 2500 BERNVILLE RD PO BOX 316 READING PA 19603 232649362 FUNDRAISING PA 501(C)(3) 9 SJRHN false Penn State Health 500 UNIVERSITY DRIVE MC H16 Hershey PA 17033 473769205 HEALTHCARE PA 501(C)(3) 11a PSU false The Pennsylvania State University One Old Main University Park PA 16802 246000376 UNIVERSITY PA 115 N/A false The Milton S Hershey Medical Center 90 Hope Drive Hershey PA 17033 251854772 Healthcare PA 115 PSH false Centre County Cancer Center 1800 E PARK AVE STATE COLLEGE PA 16803 800866636 HEALTHCARE PA 501(C)(3) 9 MSHMC false Pennsylvania Psychiatric Institute 2501 NORTH THIRD STREET HARRISBURG PA 17110 261699000 HEALTHCARE PA 501(c)(3) 3 MSHMC false HORIZON HEALTHCARE SERVICES LLP 555 NORTH DUKE ST LANCASTER PA 17604 232910102 HEALTHCARE PA NA N/A HERSHEY ENDOSCOPY CENTER LLC 905 W GOVERNOR ROAD HERSHEY PA 17033 562336622 HEALTHCARE PA NA N/A HERSHEY OUTPATIENT SURGERY CENTER LP 15305 DALLAS PKWY ADDISON TX 75001 200469951 HEALTHCARE PA NA N/A PENN STATE HERSHEY REHABILITATION LLC 4714 GETTYSBURG ROAD MECHANICSBURG PA 17055 651305248 HEALTHCARE PA NA N/A PAL MSO LLC 1600 CLOISTER DRIVE LANCASTER PA 17601 263260424 PRACTICE MGMT PA NA N/A CENTRAL PA HEALTH NETWORK LLC 2500 BERNVILLE ROAD READING PA 19605 465750407 ACCTABLE CARE NTK PA NA N/A CGH REALTY ASSOCIATES LP 2500 BERNVILLE ROAD READING PA 19603 232344074 REAL ESTATE PA NA N/A NITTANY HEALTH INC 408 OLD MAIN UNIVERSITY PARK PA 16802 251769611 HOMECARE INTEGRAT PA NA c corp false CGH REALTY CO INC 2500 BERNVILLE ROAD READING PA 19603 232326801 REAL ESTATE PA NA c corp false true true