2017-05-11T08:29:36-05:00 2016-06-30 990 2015-07-01 232367707 Lehigh Valley Hospital - Muhlenberg LEHI 4848840130 2100 Mack Blvd Allentown PA 181035622 Edward F O'Dea Exec. VP & CFO 6104027501 2017-05-11 2015 2021-01-29 14:40:06Z Brian A Nester 2100 Mack Blvd Allentown PA 181035622 345662401 0 X www.lvhn.org X 1985 PA Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 7 3 1885 376 356067 145475 675687 539437 245361575 263082895 15806181 8862825 4288869 3258523 266132312 275743680 0 0 0 0 100259899 109056252 0 0 542107 126364207 131082606 226624106 240138858 39508206 35604822 502394561 558337707 167279368 201186938 335115193 357150769 X Our mission is to heal, comfort and care for the people of our community by providing advanced and compassionate health care of superior quality and value, supported by education and research. 0 0 231760545 269506692 LVH-Muhlenberg is a non-profit corporation organized and existing under the laws of the Commonwealth of Pennsylvania, which owns and operates a general, acute patient care facility totaling approximately 844,000 square feet and operates 139 medical/surgical beds, 28 cardiac care beds, and 28 intensive care beds as of June 30, 2016. LVH-Muhlenberg offers a full range of inpatient and outpatient services, with the exception of obstetrics. LVH-Muhlenberg is a subsidiary of LVHN, which is LVH-Muhlenberg's sole corporate member.LVH-Muhlenberg is located on the northern edge of the City of Bethlehem. It is located at the intersection of Route 22 and Route 378 and is highly accessible from these highways with entrance/exit ramps located less than one-quarter mile from LVH-Muhlenberg. The local public transportation system, LANTA/METRO, has a bus stop located near the entrance of LVH-Muhlenberg.Starting in summer 2017, obstetrics and newborn services will be located in the new LVH-Muhlenberg Family Health Pavilion. This is LVHN's newest birthing facility designed with input from parents throughout our community. Services and amenities will include: a mother-baby unit with 20 private patient rooms, an admitting-holding nursery, a Level II NICU with 10 private rooms, eight labor, delivery and recovery rooms, two operating rooms, five obstetrics triage beds, a three-bay post-anesthesia care unit area, a four-bed antepartum unit, as well as comfort measures during labor and delivery. In addition, Maternal Fetal Medicine (MFM) specialists for high-risk pregnancy will be available on call 24 hours a day, along with seamless transportation and admission to LVH-Cedar Crest should a family require higher level care for babies born before 32 weeks gestation or other complex care needs. LVH-Muhlenberg provides a broad range of services, including the following:Acute CareAdolescent Behavioral HealthAmbulatory SurgeryAnatomical PathologyBlood BankBreast Health ServicesCancer ServicesCardiac CatheterizationCardiac RehabilitationCardiovascular LabChest Pain ServiceClinical Psychology ServicesCT ScannerDental ClinicDiagnostic Radioisotope FacilityDiagnostic Radiology DepartmentEchocardiography ServicesElectrocardiographyElectroencephalographyElectrophysiologyEmergency Department/Express EREndoscopic UltrasoundGI LabHistopathologyHospiceHyperbaric Oxygen TherapyInterventional RadiologyMagnetic Resonance ImagingMammographyNeuro Diagnostics LaboratoryNon-invasive Vascular LaboratoryNuclear MedicineOccupational HealthOccupational TherapyOpen Heart SurgeryOutpatient ServicesPain ManagementPathology(HNL Clinical and Anatomic) Pediatric Ambulatory SurgeryPediatric Hematology/OncologyPerioperative ServicesPeripheral Vascular SurgeryPharmacyPhysical TherapyPodiatry ServicesPost Anesthesia Care UnitPsychiatric Inpatient UnitPsychiatric Outpatient UnitPulmonary/Vascular RehabRadiation TherapyRenal DialysisRegional Heart CenterRehabilitation ServicesRespiratory TherapySleep LabSocial Service DepartmentSPECT CTSpeech TherapySports MedicineStress Test LaboratoryStroke CenterTele-Intensivist ServicesThoracic SurgeryValet ServicesVascular Medicine and SurgeryVolunteer Services DepartmentUltrasound/Vascular ImagingWound CareACCREDITATION, APPROVAL AND MEMBERSHIPLVH-Muhlenberg is currently accredited by TJC under the most recent three-year accreditation effective July 2015. LVH-Muhlenberg's facilities and services are licensed by the Pennsylvania Department of Health and have been fully certified for Medicare and Medicaid reimbursement. LVH-Muhlenberg's licenses, accreditations, approvals and memberships are as follows:Licenses and AccreditationsThe Joint CommissionDepartment of Health, Commonwealth of PennsylvaniaDepartment of Human Services, Commonwealth of PennsylvaniaPathology Laboratory: Bureau of Laboratories, Department of Health, Commonwealth of Pennsylvania College of American Pathologists American Association of Blood Banks HCFA, CLIA CertificationPennsylvania State Board of PharmacyPA Department of Environmental Protection American College of RadiologyApprovalsU.S. Department of Health & Human Services - Hospital certified for participation in Health Insurance for the Aged and Disabled Program (Medicare)MembershipsAmerican Hospital AssociationHospital Association of PennsylvaniaAmerican Association of Medical CollegesCouncil of Teaching HospitalsAssociation for Hospital Medical EducationMAGNET STATUS FOR NURSING EXCELLENCEIn August 2002, the American Nurses Credentialing Center (ANCC) granted Magnet designation to LVH and LVH-Muhlenberg, the first full-service hospitals in Pennsylvania to receive the recognition. Developed by the ANCC in 1994, the Magnet designation is the American Nurses Association's highest honor for excellence in nursing and recognizes both hospitals as national leaders in nursing education, research, patient satisfaction, quality care, job retention and the central role of nursing in the organization. Magnet designation is for a period of four years, at which time an organization must reapply. The reapplication process is intense, necessitating that hospitals demonstrate increasingly higher standards than previous applications. In 2006, 2011, and 2016, LVHN hospitals were redesignated as Magnet hospitals, continuing to demonstrate the required evidence of a practice environment in which professional nurses and interdisciplinary colleagues deliver the highest standards of quality care. In October, 2013, Lehigh Valley Health Network was honored with the prestigious Magnet Prize for innovations in telehealth. The Magnet Prize recognizes innovative nursing programs and practices in ANCC Magnet-designated organizations. The $25,000 purse is being used to continue, advance, and disseminate the winning innovation. Estimated Value of Free Care, Community Service, Charitable Contributions, and Professional and Community Education Medicare Shortfall 17,004,896, Medical Assistance Shortfall 13,191,615, Uncompensated Charity Care 1,838,000, Bad Debt 7,952,952, Clinics Subsidy 893,705, Real Estate Taxes Paid on Owned and Leased Property 585,007, Financial Support to City of Bethlehem 45,000, Support to City of Bethlehem Health Bureau 20,085, Physical Examinations - Firefighters & HazMat Personnel 106,917, Value of Volunteer Assistance 872,782, Department of Community Health in-kind, Division of Education - Office of Student Affairs in-kind, Helwig Diabetes Center Education & Outreach Programs in-kind, Pastoral Care 108,230, Patient Representative - Press, Ganey Survey 124,811, Foreign Language & Sign Language Interpreting Service in-kind, Community Health Education Programs 32,720, Patient Education Publications 97,163, Materials to Promote Health-Related Activities 53,000, Physician Referral & Health Information Line in-kind, Community Outreach in-kind, Voluntarism in-kind, Transportation for Discharged Patients 14,217, Infection Control Community Service in-kind, Dental Screenings and Free Procedures in-kind, Library Services to the Community in-kind, Stroke Center Community Education Programs in-kind, Sleep Disorders Center Community Education in-kind, Patient Care Services - Community Service (includes support groups and other programs) in-kind, HealthWorks Workplace Safety Activities 8,020.Medical Education $15,926,693, Nursing Education $440,618Total $59,316,431 231760545 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 1 0 0 1 60 0 1 1885 1 1 1 0 0 0 0 1 1 0 0 0 0 X 7 3 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 PA X X X The Organization 4848840130 2100 Mack Blvd Allentown PA 181035622 Martin K Till Trustee/Chair 1.00 X X 0 0 0 Steven R Follett Trustee/Vice Chair 1.00 X 0 0 0 Edward F O'Dea Treasurer 1.00 60.00 X 0 753482 41278 James A Rotherham Assistant Treasurer 1.00 60.00 X 0 272759 50524 Thomas Kennedy Esq Secretary 1.00 X 0 0 0 Thomas V Whalen MD Assistant Secretary 1.00 60.00 X 0 922154 15400 James Geiger President, LVH-M 60.00 X 0 404691 34586 Anne M Dainauski Registered Nurse 60.00 X 145874 0 19303 Robert A Begliomini VP Operations 60.00 X 263147 0 19298 Rhonda Thomas Pharmacy 60.00 X 157521 0 8493 Joseph Tomko Pharmacy 60.00 X 140960 0 18589 Jacqueline Fenicle VP Patient Care Services 60.00 X 168130 0 26422 Jarret R Patton MD Former Trustee 0.00 0.00 X 0 357101 39672 Ronald W Swinfard MD Former Trustee/CEO 0.00 X 0 1118609 0 875632 3828796 273565 34 1 1 0 Crothall Healthcare 13028 Collection Center Drive Chicago IL 60693 Housekeeping Services 3788787 Sodexho Inc & Affiliates PO Box 360170 Pittsburgh PA 152516170 Dietary Services 2355053 Arcadia Recovery Bureau LLC 645 Penn Street Reading PA 19601 Collection Services 419968 The Pidcock Company 2451 Parkwood Drive Allentown PA 181039608 Architectural & Engineering Services 374788 Harmelin Media 525 Righters Ferry Road Bala Cynwyd PA 19004 Advertising Services 266325 10 539437 97398 539437 Outpatient revenue 624100 167139279 167139279 Inpatient revenue 624100 95943616 95943616 263082895 4589263 4589263 3074299 2613154 461145 461145 461145 71349717 66821790 254365 4527927 -254365 4273562 4273562 520488 229412 291076 291076 Misc. Income 900099 1705077 1520239 184838 Health Network Labs 621500 789455 618226 171229 Lehigh Valley PHO 900003 11770 11770 2506302 275743680 269506692 356067 5341484 X 967738 967738 86601508 82474481 3811295 315732 5121455 4875430 227117 18908 10097691 9699101 372444 26146 6267860 5969051 275601 23208 5400 2556 2844 27574802 26490058 1084407 337 763125 747623 15502 294035 258546 23489 12000 765483 763416 2067 6398746 6398727 19 281209 277675 3534 296353 280459 15894 5541606 5541606 13178511 13176645 1866 612048 612048 Medical Supplies 27712159 27712159 Purchased Services 27348534 27348534 Bad Debt Expense 12720108 12720108 Other supplies 1319877 1319877 6270610 4124707 2000127 145776 240138858 231760545 7836206 542107 1011 1211 8372970 37164278 438300 255615 33822155 33459454 4464280 -3930583 3058888 3146507 446752 589116 271659862 133752791 113148879 137907071 310129976 319793296 25822575 26437738 2688775 3514004 502394561 558337707 13731388 18796228 44629 42738 141504170 161157670 7264017 11999181 13926285 167279368 201186938 X 332712303 354964435 1426039 1189283 976851 997051 335115193 357150769 502394561 558337707 X 35604822 -13352691 -216555 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 850153 5200 50473 3361 -381378 1283843 820370 7275 46653 600 23545 850153 765903 13342 54095 3100 9870 820370 728286 3955 38943 183 5098 765903 719801 1113 17225 -3257 13110 728286 0.00000 0.78000 0.22000 0 0 9787346 9787346 161458131 84330157 77127974 8034696 4467229 3567467 56955149 44157344 12797805 35424540 798061 34626479 137907071 Pension Liability 5049630 Haz Mat Remediation Liability 403632 Insurance Liability 2984142 Security Deposits 1200 SWAP Liability 5487681 13926285 X Part V, Line 4: The endowment funds are used for continuing education, scholarships, research, clinical equipment, and nursing awards. Part X, Line 2: In 2008, the Organization adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 has become part of ASC 740. FIN 48/ASC 740 establishes that the financial statement effects of a tax position taken or expected to be taken are to be recognized in the financial statements when it is more likely than not, based on technical merits, that the position will be sustained upon IRS examination. FIN 48 became effective for fiscal year 2008 for the Organization. The Organization has analyzed tax positions taken on federal income tax returns for all open tax years for the taxable entities and has determined that as of June 30, 2016, there are no uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Organization has analyzed specific criteria regarding the exempt 501(c) 3 status for the tax exempt entities and has determined that as of June 30, 2016 the Organization is compliant with the qualifications for exemption from Federal income tax. Golf & Tennis 345817 345817 112514 Muhlenberg Summer Festival 174671 174671 116898 520488 520488 229412 229412 291076 1 1 X 1 X 1 X 1 1 0 1 1 1838000 1838000 0.00810 25405730 12214115 13191615 0.05800 27243730 12214115 15029615 0.06610 610163 610163 0.00270 19405465 3478772 15926693 0.07000 1934356 1040651 893705 0.00390 21949984 4519423 17430561 0.07660 49193714 16733538 32460176 0.14270 1 7952952 3701689 61279002 60464202 814800 X 1 1 1 LVHN Reciprocal Risk Retention Group Malpractice Insurance 0.16670 0.00000 0.00000 2 Health Network Laboratories LLC Laboratory Services 0.14690 0.00000 0.00000 3 Health Network Laboratories LP Laboratory Services 0.14350 0.00000 0.00000 4 Lehigh Valley Physician Hospital Organization Inc Health Care Services 0.05000 0.00000 0.00000 1 1 Lehigh Valley Hospital - Muhlenberg 2545 Schoenersville Road Bethlehem PA 18017 www.lvhn.org 134601 X X X X X Lehigh Valley Hospital - Muhlenberg 1 0 0 1 X X X X X X X X X 15 1 1 1 1 X www.lvhn.org/about_us X X 1 15 1 www.lvhn.org/about_us 1 0 1 X 200.000000000000 400.000000000000 X X X 1 1 X X X X 1 X www.lvhn.org X www.lvhn.org X www.lvhn.org X X X X 1 X 0 X X X X 1 X 0 0 Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 5: The Council's community needs assessment focused on the health status of the Lehigh Valley (Lehigh and Northampton Counties). The CHNA approach incorporated best practice standards as recommended by the American Public Health Association and the Association for Community Health Improvement of the American Hospital Association. The Council employed several health assessment techniques that used both qualitative and quantitative data. There were three forms of data used by the HCC to create the CHNA. First, the member agencies of the HCC provided guidance about some of the key issues their institutions face regarding the health of people in the Lehigh Valley. The discussions at the monthly HCC meetings provided meaningful insight into the priorities and root causes that were further investigated through secondary data sources and through qualitative methods.Second, a thorough review of secondary data sources was conducted. All sources and indicators utilized in the first Community Health Needs Assessment Health Profile from 2013 were updated. Then, the HCC group requested the inclusion of many additional indicators that were also gathered from secondary sources. The complete list of secondary sources consulted throughout the CHNA Health Profile process is as follows:County Health Rankings www.countyhealthrankings.orgCommunity Commons www.communitycommons.orgCDC Wonder www.wonder.cdc.govCenters for Disease Control and Prevention, Community Health Status Indicators http://wwwn.cdc.gov/CommunityHealth/homeNational Center for Health Statistics Health Indicators Warehouse http://www.healthindicators.gov/Pennsylvania Department of Health www.health.pa.govPennsylvania Department of Education www.education.pa.gov American Community Survey https://www.census.gov/programs-surveys/acs/Qualitative information was collected through three different focus groups. One was conducted in Lehigh County, one was conducted in Northampton County, and the third comprised teens between the ages of 13-19 from both Lehigh and Northampton Counties. The focus groups solicited information about the needs of the community, particularly vulnerable populations, and ranked those needs. St. Luke's University Health Network conducted a focus group in Allentown with key stakeholders in 2015, and made the results available to the HCC for use in the CHNA Health Profile.Good Shepherd Rehabilitation Network also commissioned a study conducted by the Lehigh Valley Research Consortium in 2015 called, "The Lehigh Valley Disability Community: Re-Examining Community Needs & Opportunities." Good Shepherd shared this report with the HCC for use in the CHNA Health Profile. There were two focus group sessions during evening hours, and participants only attended one session. The sessions were not video taped, but they were audio taped to ensure the discussion was captured appropriately. The content of the focus group discussion elicited feedback and suggestions from the group regarding increasing our collective understanding of how, as health care providers, we can work to support healthy behaviors, healthy social influences, and make the access to health care more meaningful and effective. The focus group discussed issues common to everyone living in the Lehigh Valley. The focus group questions did not include discussions about particular providers, discussions about specific health systems in the Lehigh Valley, or comparisons and/or debates about particular health issues (i.e. it's harder to have diabetes than heart disease, etc.).Northampton and Lehigh Community College Campuses were selected as the locations for the two focus groups. By selecting these locations we were able to maximize diverse participation by having locations in Northampton County and Lehigh County, have sessions after traditional work hours to make it convenient for workers, have sessions during the week so they do not conflict with weekend activities and refreshments were available. KidsPeace, an HCC member agency that has as a specialty area providing mental health care for children and youth, volunteered to have one of their teen support groups serve as a focus group to gather feedback from young people. The HCC group agreed to utilize the KidsPeace teen group as a third focus group. The youth focus group was comprised of eight teens ranging in age from 13-19 who reside in a variety of different towns and school districts in Lehigh and Northampton counties. The group meets weekly on Thursday evenings at a community site operated by KidsPeace. Consent to participate in the focus group was given to KidsPeace by the teens and their parents. The HCC project manager together with the KidsPeace staff responsible for the teen group conducted the focus group.The process, methods and content of the youth focus group discussion was conducted in exactly the same way as the adult groups, using the same tools. The major difference was that all participants were already engaged in services with KidsPeace, and were not recruited in equal numbers by the other HCC member agencies. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 6a: The Health Care Council of the Lehigh Valley is comprised of representatives from each of the five non-profit hospitals in the Lehigh Valley (Good Shepherd Rehabilitation Network, KidsPeace, Lehigh Valley Health Network, Sacred Heart Hospital Network, St. Luke's University Health Network), the Allentown and Bethlehem Health Bureaus, Neighborhood Health Centers of the Lehigh Valley, and the Dorothy Rider Pool Health Care Trust. Each agency sends 1-3 representatives, typically representing staff who have responsibility for community work. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 7d: The Community Health Needs Assessment was mailed to key community leaders and was provided press coverage in the community newapaper and local television station. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 18d: Collection activities are limited to hospital sending four statements requesting payment. The statements include information about the hospital's Financial Assistance Policy, soliciting the patients participation in the Financial Assistance Program. Lehigh Valley Hospital - Muhlenberg Part V, Section B, Line 22d: The hospital facility used the average of its negotiated commercial insurance rates and Medicare rates when calculating the maximum amounts that can be charged. Part I, Line 6a: The Community Benefit Report is issued by Lehigh Valley Health Network - EIN 22-2458317, the parent company of Lehigh Valley Hospital - Muhlenberg. Part I, Line 7: The costing methodology is cost to charge ratio for programs with gross charges and direct costs for programs without gross charges. Part I, Line 7g: The clinics subsidy of $893,705 is the difference between the cost of services provided in the hospital clinics and the payments received for those services. The clinics at LVH-Muhlenberg include the dental clinic that is operated in conjunction with the dental residency program, and the outpatient mental health clinic (Base Service Unit) which provides evaluation, counseling and case management services to residents of Lehigh and Northampton counties. The Clinics Subsidy does not include the cost of any Uncompensated Charity Care as reported above. Clinic costs do include $19,387 of the wage and benefits expense of dental residents who provided care to clinic patients. This amount has been deducted from the total value of Health Professions Education reported. 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 $ 12,720,108. Part III, Line 2: Patient accounts written off as bad debt are identified. The cost to provide care to these patients is calculated by multiplying the total charges written off as bad debt by the cost to charge ratio. Part III, Line 3: This amount is the cost to provide care to uninsured patients that do not participate in the process to determine if they are eligible for financial assistance. The cost is determined using cost to charge ratios. The rationale for including the cost to provide care to uninsured patients that do not participate in the financial assistance process is the hospital's experience with uninsured patients that do participate in the financial assistance program. When the hospital evaluates uninsured patients for financial assistance, the most common finding is that uninsured patients have income less than 400% of the Federal poverty guideline and qualify for financial assistance. The hospital believes that uninsured people who choose not to participate in the financial assistance process and have their accounts written off as bad debt, have income that would qualify for the hospital financial assistance program. Part III, Line 4: BAD DEBTS - The Organization records a provision for bad debts related to uninsured accounts net of the AGB discount to record the net self-pay accounts receivable at the estimated amounts the Organization expects to collect. Coinsurances and deductibles within the third-party payer agreements are the patient's responsibility so the Organization includes these amounts in the self-pay accounts receivable and considers these amounts in its determination of the provision for bad debts based on historical collection experience.In instances where the Organization believes a patient has the ability to pay for services and, after appropriate collection effort, payment is not made, the amount of services not paid is written-off as bad debts. Amounts recorded as Provision for bad debts do not include charity care. The Provision for bad debts for the years ended June 30, 2016 and 2015, was $12,720,000 and $11,914,000 respectively. Part III, Line 8: The source of the Medicare allowable costs relating to revenue received from Medicare is the FY '16 Medicare Cost Report. The revenue and expenses are both determined using Medicare principles. Part III, Line 9b: Financial Counseling staff will determine whether patients meet eligibility criteria for financial assistance. Accounts that do not meet the eligiblilty requirements will be referred to an external receivables follow up agency, and if not paid referred to a collection agency and subsequently transferred to bad debt status if the accounts remain unpaid. Part VI, Line 2: The Health Care Council of the Lehigh Valley (HCCLV) used quantitative and qualitative methods to assess the health care needs of the Lehigh Valley community. There were three forms of data used by the HCCLV to create the CHNA. First, the member agencies of the HCCLV provided guidance about some of the key issues their institutions face regarding the health of people in the Lehigh Valley. The discussions at the monthly HCCLV meetings provided meaningful insight into the priorities and root causes that were further investigated through secondary data sources and through qualitative methods.Second, a thorough review of secondary data sources was conducted. All sources and indicators utilized in the first Community Health Needs Assessment Health Profile from 2013 were updated. Then, the HCCLV group requested the inclusion of many additional indicators that were also gathered from secondary sources. The complete list of secondary sources consulted throughout the CHNA Health Profile process is as follows:- County Health Rankings www.countyhealthrankings.org- Community Commons www.communitycommons.org- CDC Wonder www.wonder.cdc.gov- Centers for Disease Control and Prevention, Community Health Status Indicators http://wwwn.cdc.gov/CommunityHealth/home- National Center for Health Statistics Health Indicators Warehouse http://www.healthindicators.gov/- Pennsylvania Department of Health www.health.pa.gov- Pennsylvania Department of Education www.education.pa.gov - American Community Survey https://www.census.gov/programs-surveys/acs/Qualitative information was collected through three different focus groups. One was conducted in Lehigh County, one was conducted in Northampton County, and the third comprised teens between the ages of 13-19 from both Lehigh and Northampton Counties. The focus groups solicited information about the needs of the community, particularly vulnerable populations, and ranked those needs. Part VI, Line 3: Consistent with the mission and values of Lehigh Valley Health Network, it is the policy to provide medical care to all individuals without regard to their ability to pay for services. The Financial Assistance Policy applies to uninsured and under-insured individuals who participate in the process to evaluate their ability to pay for LVHN services.Patients are identified by LVHN registration, Benefits and Verification, Customer Service, and Financial Counselors as being in financial need. The Financial Counselors help patients complete the application for Financial Assistance. LVHN follows the Federal Poverty Guidelines to evaluate eligibility. Patients whose family income falls below 200% of the Federal Poverty guideline will have their entire balance forgiven for their qualifying services at a participating LVHN provider. Patients with a family income below 400% of the Federal Poverty guidelines will have a portion of their balance forgiven for qualifying services at a participating LVHN provider. Patients are evaluated for no cost or reduced premium insurance plans. The LVHN Financial Counselors will offer information to patients who are interested in seeing if they qualify for these programs offered by commercial insurance companies.Patients often express financial concern or need by contacting the LVHN Customer Service departments. The Customer Service representatives explain the programs available; Financial Assistance and support in applying for Medical Assistance or insurance through the Federal Health Insurance Exchange. Patients will be referred to the Financial Counselors who work with patients to apply for Pennsylvania Medical Assistance. The Financial Counselors are located onsite. The Financial Counselors visit patients in their inpatient rooms, in the Cancer Center, and in the Emergency Department. In addition, LVHN advertises Financial Assistance in the local newspaper, on our public website and on the statements sent to our patients. Part VI, Line 4: The primary service area of LVH-Muhlenberg is comprised the eastern portion of Lehigh County and all of Northampton County. Based on U.S. Census Bureau data for the year 2010 census, the population of the primary service area was approximately 413,156 people. During the fiscal year 2016, approximately 90.9% of the discharges from LVH-Muhlenberg were residents of the primary service area. According to the American Community Survey (U.S. Census), the estimated population for the Primary service area in 2015 was 481,156.The 2010 population of the secondary service area was approximately 294,855. During the fiscal year 2016, approximately 7.5% of the discharges from LVH-Muhlenberg were residents of the secondary service area. Based on U.S. Census Bureau data, the current population of the combined primary and secondary LVH-Muhlenberg service areas is projected to increase approximately 5.4% (CAGR* - .59%) by the year 2017, based on the extrapolation of the population CAGR from Census year 2000 - 2010. During the fiscal year 2016, 1.6% of the discharges from LVH-Muhlenberg were residents outside the primary and secondary service areas. Discharges from the secondary and primary services are widely dispersed for patients of LVH-Muhlenberg. Since these patients are randomly distributed it is difficult to define secondary and tertiary service areas. It is assumed the secondary and tertiary services area for LVH-Muhlenberg will mirror those of LVH-CC. The secondary service area of LVH-CC consists of Berks, Luzerne, Monroe, and Schuylkill counties as well as northern portions of Bucks and Montgomery counties. Part VI, Line 5: Lehigh Valley Hospital - Muhlenberg qualifies as an Institution of Purely Public Charity in Pennsylvania. This regulation is referred to as Act 55. To be considered a purely public charity, nonprofits must: (1) advance a charitable purpose; (2) donate or render gratuitously a substantial portion of its services; (3) benefit a substantial and indefinite class of persons who are legitimate subjects of charity; (4) relieve the government of some burden; and (5) operate entirely free from private profit motive.LVHM is required to reapply for this charitable status every five years and currently qualifies through February 28, 2021. Part VI, Line 6: LVHN's Community Health Needs Implementation Plans have been prepared in response to concerns identified in the CHNA reports. Each licensed facility within LVHN - LVH Cedar Crest/LVH 17th Street, LVH Muhlenberg, LVH Hazleton and the two new campuses at LVH Schuylkill (LVH South Jackson and LVH East Norwegian) - has prepared an implementation plan. Our implementation plans include activities designed to address needs within our communities, while also promoting health. Note that the implementation plans are presented in two separate documents - one for theLVH Schuylkill campuses and one for the other LVHN communities. Schuylkill Health System conducted its Community Health Needs Assessment prior to joining LVHN. While we worked together to craft its implementation plan, the team at LVH Schuylkill and the residents of Schuylkill County have a much deeper understanding of what needs to be done there. We felt it was important to present Schuylkill's CHNA report and implementation plan as a separate "matched set". The implementation plans are presented in a table format and are organized by four Key Focus Areas: Community Engagement, At-Risk Populations, Access to Care and Health Equity, and Prevention and Wellness. Within each Key Focus Area, objectives and tactics are described. These address "priority areas" named in the CHNA reports (housing and homelessness, for example). Each LVHN campus has its own column, with their specific tactics marked. Some activities will be adopted across multiple campuses. Community collaborators for a particular item also are listed.The implementation plans for all facilities are found at https://www.lvhn.org/about_us/2016_community_health_needs_assessment/community_health_needs_implementation_plans Part III, Section B. Medicare, Line 8 Medicare program costs included in the annual LVHN Community Benefit Report not included or allowable in the Medicare Cost Report totaled $17,819,696. The costs of Medicare Managed Care, included in this amount is $6,889,920. The remaining $10,929,776 of costs not included in the Medicare Cost Report consists primarily of LVPG practice subsidies, non-reimburseable interest expense, LVAS subsidy, University of South Florida school costs, and disallowable related organization costs. X X X X X 1 1 0 0 0 0 0 0 0 Edward F O'Dea Treasurer 0 513070 0 136247 0 104165 0 0 0 41278 0 794760 0 0 James A Rotherham Assistant Treasurer 0 235429 0 41927 0 -4597 0 13868 0 36656 0 323283 0 0 Thomas V Whalen MD Assistant Secretary 0 616446 0 163937 0 141771 0 0 0 15400 0 937554 0 0 James Geiger President, LVH-M 0 311696 0 67664 0 25331 0 0 0 34586 0 439277 0 0 Anne M Dainauski Registered Nurse 141171 0 6570 0 -1867 0 0 0 19303 0 165177 0 0 0 Robert A Begliomini VP Operations 231327 0 37260 0 -5440 0 0 0 19298 0 282445 0 0 0 Rhonda Thomas Pharmacy 147214 0 13173 0 -2866 0 0 0 8493 0 166014 0 0 0 Joseph Tomko Pharmacy 140734 0 838 0 -612 0 0 0 18589 0 159549 0 0 0 Jacqueline Fenicle VP Patient Care Services 152660 0 19088 0 -3618 0 0 0 26422 0 194552 0 0 0 Jarret R Patton MD Former Trustee 0 307941 0 37728 0 11432 0 0 0 39672 0 396773 0 0 Ronald W Swinfard MD Former Trustee/CEO 0 0 0 471615 0 646994 0 0 0 0 0 1118609 0 0 Part I, Lines 4a-b Gregory Brusko, DO $25,040 Jarret Patton, MD $19,042 James A. Rotherham $13,528 Thomas V. Whalen $129,506 Edward F. O'Dea $105,668 Robert J. Motley $16,290 James Geiger $23,882 Joseph Patruno, MD $18,645 These amounts are accruals to a nonqualified supplemental executive retirement plan. A Lehigh County General Purpose Authority 911886539 52480GAY0 2008-06-04 18876416 construct, renovate & equip facilities 0 0 0 B Lehigh County General Purpose Authority 911886539 52480GBG8 2011-04-01 54648270 refund 9/12/96 & 4/21/99A issues; reissuance of 7/7/05 and 6/5/08 issues 0 0 0 C Lehigh County General Purpose Authority 911886539 52480GCB8 2012-12-12 75067274 construct, renovate & equip facilities; refund 10/17/01 and 5/21/03 issues 0 0 0 D Lehigh County General Purpose Authority 911886539 52480GCF9 2015-07-30 96890936 construct, renovate & equip facilities 0 0 0 A 2324400 18932776 247575 464911 18220290 2010 0 0 1 1 B 6175020 54648270 54528750 119520 2011 1 0 1 1 C 75067274 58470215 896598 15700000 461 2012 1 1 1 1 D 96898489 976500 21560989 74361000 2017 0 0 0 1 D 0 0 0 0 0 0 1 A 0 0 1 0 0 0 0 0 0 B 0 0 1 0 1 1 Merrill Lynch & Goldman Sachs 20.000000000000 0 0 0 0 0 C 0 0 1 0 0 0 0 0 0 D 0 0 1 0 0 0 0 0 1 A 0 B 0 C 0 Susan C Yee-Trustee Partner in 94 Brodhead Associates - Trustee of LVHN/HWC 126640 94 Brodhead Associates leases office space to LVPG at fair market value. 0 Kathryn P Taylor-Trustee Board Member of Capital Blue Cross - Former Trustee of LVHN 341233472 Capital BlueCross is a third party insurer doing business with LVHN. 0 Susan C Yee-Trustee CEO and Owner of Active Data - Trustee of LVHN/HWC 26720 Donation of software licenses for use by LVH 0 Steven Follett-Trustee President and CEO of Follett LLC - Trustee of LVHN/LVH/LVHM 149779 Follett LLC manufactures and sells ice and water dispensers and medical grade refrigeration equipment to LVH, LVHM, & LVPG at fair market value. 0 X 21682 fair market value X 7 6850 fair market value X Gift Cards 130 33823 cost X Family Activity Items 53 30860 fair market value 0 0 0 Form 990, Part VI, Section A, line 6 The Organization's sole corporate member is Lehigh Valley Health Network, Inc. Form 990, Part VI, Section A, line 7a The Organization's sole corporate member, Lehigh Valley Health Network, Inc., has the power to elect, appoint, approve, or reject members of the Organization's governing body. Form 990, Part VI, Section A, line 7b The Organization's sole corporate member, Lehigh Valley Health Network, Inc., has the power to approve or reject certain major operating decisions made by the Organization's governing body. Form 990, Part VI, Section B, line 11 The process to review the 990's includes: Draft 1 of the returns is reviewed in detail with a focus on accuracy, completeness, and perspective by the LVHN Vice-President, Finance & Controller and the LVHN Corporate Legal Counsel. Draft 2 of the returns is reviewed by the Executive Vice President & Chief Financial Officer. All Compensation disclosures are reviewed by the Director, Compensation - Human Resources. Draft 3 of the returns is reviewed together with the President & CEO, the Executive Vice President & Chief Financial Officer, the Vice-President, Finance & Controller, and the Director, Tax. Final returns are reviewed with the LVHN Board Leadership Group (the Board Chair and three Vice Chairs). Copies of all 990's are provided to the full Board prior to filing. Form 990, Part VI, Section B, line 12c In January 2016, LVHN implemented an electronic tool designed to send notifications and track disclosures reported on Conflict of Interest Questionnaires. The Network also expanded the scope of the Conflict of Interest or Commitment Policy, such that additional colleagues are now required to complete a questionnaire each year. Prior to January, the VP, Internal Audit and Compliance Services issued a notice to Board Members and members of the Senior Management Council when it was time for them to submit their conflict of interest questionnaires. The VP also instructed members of the Senior Management Council to identify and request completed conflict of interest questionnaires from individuals who had potential conflicts of interest and to provide her with the identity of those individuals. Compliance Services tracked completion of the questionnaires. All physicians on LVHN's medical staff are also required to complete a conflict of interest questionnaire annually. Medical Staff Services monitors this process to ensure that all physicians comply. Potential conflicts are managed by the LVHN Conflict of Interest Committee and/or by the Board of Trustees, depending on whose interest(s) pose the conflict and the nature of the conflict. Form 990, Part VI, Section B, line 15 2016 Executive Compensation Review In compliance with the rebuttable presumption of reasonableness process outlined in the Intermediate Sanctions regulations (issued under Section 4958 of the Internal Revenue Code); Sullivan Cotter and Associates, Inc. (Sullivan Cotter) qualifies as an independent executive compensation expert, specializing in the health care industry. Sullivan Cotter provides advice to the Lehigh Valley Health Network Executive Compensation Committee of the Board of Trustees to support its attainment of the rebuttable presumption of reasonableness under the Intermediate Sanctions regulations. They also support the committee in ensuring that the LVHN executive compensation program is competitive and aligned with the organization's executive compensation philosophy. Chief Executive Officer Total Compensation Review: Program Analysis: Analyze the market position of total compensation (base salary, incentive, benefits, and perquisites) for LVHN's President and Chief Executive Officer (CEO) in relation to CEO market data obtained for a defined peer group of comparable health systems. This includes the preparation of tally sheets for the President and CEO as well as an analysis of Form 990 compensation data. They assess the alignment of the President and CEO's compensation with LVHN's compensation philosophy and note the implications of the review. Sullivan Cotter's analyses and findings are summarized in a report to the Committee that provides a reasonableness opinion for the Intermediate Sanctions compliance. The report was provided by Sullivan Cotter at the August 17, 2015 Executive Compensation Committee Meeting. Senior Management Council (SMC) Total Compensation Review: Program Analysis: Analyze the market position of total compensation (salaries, incentives, benefits, and perquisites) for LVHN's SMC executives and Clinical Chairs (approximately 30 total positions) in relation to comparable positions in peer organizations. This includes the preparation of tally sheets for each individual. Sullivan Cotter's analyses and findings are summarized in a report to the Committee that also provides an opinion of reasonableness for Intermediate Sanctions compliance. The report was provided by Sullivan Cotter at the August 17, 2015 Executive Compensation Committee Meeting. Summary of Methodology To conduct this analysis, Sullivan Cotter: Collected background information regarding LVHN's operations, structure, size and scope, as well as each position's duties. Compiled market data for SMC executives consistent with the Executive Compensation Philosophy approved by the Committee during its September 15, 2015 meeting: The market data used for LVHN system executives in this assessment are an equally weighted blend of (1) a peer group of 33 not-for-profit health systems located in the Northeast region (excluding New York City) with net operating revenues between $1.0 billion and $4.3 billion (average of $1.8 billion), and (2) national data reflecting organizations of similar scope and size to LVHN. National data are used where peer group data are not available. Peer group and national market data were abstracted from Sullivan Cotter's 2015 Survey of Manager and Executive Compensation in Hospitals and Health Systems, as well as other published compensation surveys reflecting pay at comparably sized organizations, which included national hospitals and national medical groups. Sullivan Cotter notes that no market data are provided for the SVP, Medical Services as the responsibilities of that position are unique, so no benchmark data are available. They recommend that the Committee assess the compensation for that position based on internal equity considerations. Compiled market data for the LVHN clinical chairs prepared by the Association of American Medical Colleges (AAMC) for the chairs of clinical departments in medical schools, LVHN's traditional comparator group for these jobs. Adjusted the market data to an effective date of January 1, 2016 at an annualized rate of 3.0% based on salary increase trends. Compared each component of LVHN's benefit program against typical market benefit practices in health systems and hospitals based on multiple published surveys, supplemented by Sullivan Cotter's proprietary data and experience. Developed market total compensation data by combining market TCC with typical market benefit costs. Compared LVHN's TC to market rates and assessed overall positioning. For physician executives having both clinical and administrative roles, relevant market data were collected based on FTE allocation. Sullivan Cotter has not completed an assessment of the physicians' productivity or the Fair Market Value (FMV) of their clinical compensation, as LVHN has advised that such amounts are appropriate and within FMV. Sullivan Cotter used the following methodology to assess the competitiveness and reasonableness of LVHN's executive total compensation levels: Collected background information regarding LVHN's operations, structure, size and scope. Collected information on each Senior Management Council (SMC) member's current compensation. Data collected include base salaries, annual incentive opportunity levels (target and maximum), actual annual incentive payout amounts, annual costs of all standard and supplemental benefits and annual cost and description of executive perquisites. Reviewed job descriptions and organizational charts to identify each position's functional responsibilities and reporting relationships. Selected the appropriate benchmark position match for each position and applied premiums/discounts to the market data in instances where LVHN's job duties differ materially from benchmark position matches. Position matches and market adjustments were reviewed with LVHN's Senior Vice President, Human Resources and Compensation staff. LVHN's projected FY2015 net revenues and physician FTE's were used as the scope size for each entity. Form 990, Part VI, Section C, line 18 Another's Website - Guidestar. Upon request - hard copies with senior management and marketing. Form 990, Part VI, Section C, line 19 The Organization makes its financial statements available to the public through its Annual Report to the community. The Annual Report is distributed to all attendees at the Organizations annual public meeting. In addition, it is distributed via mail to members of the community. The Organizations governing documents and conflict of interest policy are not made available to the public. Form 990, Part IX, line 11g Other fees-ProgServ-990 : Program service expenses -1,084,744. Management and general expenses 0. Fundraising expenses 0. Total expenses -1,084,744. CREDIT CARD & COLLECTION FEES : Program service expenses 538,059. Management and general expenses 0. Fundraising expenses 0. Total expenses 538,059. CONSULTING FEES : Program service expenses 312,120. Management and general expenses 0. Fundraising expenses 0. Total expenses 312,120. CLEANING, LAUNDRY & WASTE : Program service expenses 920,196. Management and general expenses 0. Fundraising expenses 0. Total expenses 920,196. BLOOD PROCESSING FEES : Program service expenses 1,985,976. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,985,976. OTHER FEES : Program service expenses 472,722. Management and general expenses 0. Fundraising expenses 0. Total expenses 472,722. PHYSICIAN & PROFESSIONAL FEES : Program service expenses 8,562,079. Management and general expenses 0. Fundraising expenses 0. Total expenses 8,562,079. OUTSIDE IMAGING & LAB FEES : Program service expenses 14,783,650. Management and general expenses 0. Fundraising expenses 0. Total expenses 14,783,650. Other fees-Fndrsng-990 : Program service expenses 0. Management and general expenses 0. Fundraising expenses 337. Total expenses 337. Other fees-Mngmnt-990 : Program service expenses 0. Management and general expenses 1,084,407. Fundraising expenses 0. Total expenses 1,084,407. Form 990, Part XI, line 9: Temporarily and Permanently Restricted -216,555. Lehigh Valley Health Network 1200 S Cedar Crest Blvd Allentown PA 18103 222458317 Parent Company PA 501(c)(3) Line 11c, III-FI N/A 0 Lehigh Valley Hospital 1200 S Cedar Crest Blvd Allentown PA 18103 231689692 Health Care Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Lehigh Valley Physician Group 1200 S Cedar Crest Blvd Allentown PA 18103 232700908 Physician Practice Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Muhlenberg Realty Corporation 1200 S Cedar Crest Blvd Allentown PA 18103 232245513 Real Estate Rentals PA 501(c)(3) Line 11c, III-FI Lehigh Valley Health Network 0 Lehigh Valley Health Network Realty Holding Co 1200 S Cedar Crest Blvd Allentown PA 18103 232586770 Real Estate Holding Co. PA 501(c)(2) Lehigh Valley Health Network 0 Northeastern Pennsylvania Health Corporation 700 E Broad St Hazleton PA 18201 232421970 Health Care Organization PA 501(c)(3) Line 3 Lehigh Valley Health Network 0 Hazleton Health & Wellness Center 700 E Broad St Hazleton PA 18201 232580968 Staffing Services PA 501(c)(3) Line 11a, I Northeastern Pennsylvania Health Corporation 0 Hazleton Professional Services 700 E Broad St Hazleton PA 18201 205880364 Physician Services PA 501(c)(3) Line 3 Lehigh Valley Physician Group 0 Hazleton Surgical Alliance 700 E Broad St Hazleton PA 18201 202038456 Physician Services PA 501(c)(3) Line 3 Northeastern Pennsylvania Health Corporation 0 LVHN Reciprocal Risk Retention Group 151 Meeting Street Ste 301 Charleston SC 29401 200037118 Insurance PA Lehigh Valley Health Network Related 4275819 0 0 0.16670 Health Network Laboratories LLC 794 Roble Road Allentown PA 18109 232932802 Laboratory Services PA Lehigh Valley Hospital Related 26389 146250 0 0 0.14690 Health Network Laboratories LP 794 Roble Road Allentown PA 18109 232948774 Laboratory Services PA Lehigh Valley Hospital Related 2728089 23725682 0 0 0.14310 Lehigh Magnetic Imaging Center 1230 S Cedar Crest Blvd Allentown PA 18103 232429077 Imaging Center PA N/A Lehigh Valley Imaging LLC 1230 S Cedar Crest Blvd Allentown PA 18103 464551937 Imaging Center PA N/A Hazleton Surgery Center LLC 17480 Dallas Parkway - Suite 210 Dallas TX 75287 201232531 Surgical Services TX N/A Lehigh Valley Health Services Inc 2100 Mack Blvd Allentown PA 181035622 232263665 Health Care Related Services PA N/A C 0 Lehigh Valley Anesthesia Services PC 2100 Mack Blvd Allentown PA 181035622 233096124 Anesthesia Services PA N/A C 0 Westgate Professional Center Inc 2100 Mack Blvd Allentown PA 181035622 231657333 Real Estate Rentals PA Lehigh Valley Hospital - Muhlenberg C 14946 5240616 1.00000 0 Lehigh Valley Physician Hospital Organization Inc 2100 Mack Blvd Allentown PA 181035622 232750430 Health Care Related Services PA N/A C 0 Hazleton Saint Joseph Medical Office Building Inc 700 E Broad St Hazleton PA 18201 232500981 Medical Office Rental PA N/A C 0 1 0 0 1 1 0 0 0 0 1 1 1 1 1 1 1 1 0 1 Westgate Professional Center Inc K 66000 Fair Market Value