2017-05-15T14:41:34-05:00 2016-06-30 ERNST & YOUNG US LLP 425 HOUSTON STREET SUITE 600 FORT WORTH TX 76102 990 2015-07-01 741303720 Baptist Hospitals of Southeast Texas % Gary Troutman CFO BAPT 4092125003 PO Box 1591 Beaumont TX 77704 GARY TROUTMAN CFO 2017-05-15 true MELVA SCOTT P01207335 8173351900 2015 2021-01-29 14:40:06Z DAVID PARMER PO BOX 1591 BEAUMONT TX 77704 350079184 false X www.bhset.net X 1945 TX NOT-FOR-PROFIT, COMMUNITY OWNED, HEALTH CARE FACILITIES WITH SPIRITUAL VALUES, DEDICATED TO PROVIDING HIGH QUALITY HEALTH SERVICES IN A CHRISTIAN ENVIRONMENT. 21 18 2078 500 1046137 -893055 526895 582719 271723012 345271667 280492 384401 3886557 3840397 276416956 350079184 29500 17500 0 0 113123703 114284680 0 0 0 178194626 230731725 291347829 345033905 -14930873 5045279 210091004 205703690 159468251 149204982 50622753 56498708 X THE BAPTIST HOSPITALS OF SOUTHEAST TEXAS (BHSET) ARE NOT-FOR-PROFIT, COMMUNITY-OWNED, HEALTH CARE FACILITIES WITH SPIRITUAL VALUES, DEDICATED TO PROVIDING HIGH QUALITY HEALTH SERVICES AND SACRED WORK, IN A CHRISTIAN ENVIRONMENT. false false 264703766 17500 345271667 WE HAVE ONE PRIMARY SERVICE ACTIVITY AND THAT IS TO PROVIDE HIGH QUALITY HEALTH SERVICES TO THE SOUTHEAST TEXAS COMMUNITY. PATIENT SERVICE REVENUE FOR THE BEAUMONT AND ORANGE FACILITIES INCLUDES BOTH INPATIENT AND OUTPATIENT ROUTINE AND ANCILLARY REVENUE. FOR OVER SIXTY YEARS, BHSET HAS BEEN DEDICATED TO PROVIDING QUALITY HEALTH SERVICES IN A CHRISTIAN ENVIRONMENT. OUR PARTNERS IN CARING - OUR PHYSICIANS, OUR NURSES AND STAFF - PRACTICE A PHILOSOPHY THAT INSPIRES AN ENVIRONMENT OF TEAMWORK, RESPECT, ENCOURAGEMENT, OPPORTUNITY AND TRUST. OUR EFFORTS CONTINUE EACH DAY AS WE STRIVE TO OFFER NEWER AND BETTER PROGRAMS, SERVICES AND TECHNOLOGIES FOR THE MEMBERS OF OUR COMMUNITY. WITH A COMMITMENT TO EXCEED CUSTOMER EXPECTATIONS THROUGH DISTINGUISHED QUALITY, SAFETY, CUSTOMER SERVICE, SPIRITUAL VALUES, OPERATIONAL EXCELLENCE AND INNOVATION IN MEETING THE HEALTHCARE NEEDS OF THOSE BEING SERVICED, PLANS FOR ADDITIONAL SERVICES BECAME A REALITY. CANCER SERVICES FOR SOUTHEAST TEXAS BEGAN IN 1990 WHEN THE BEN AND JULIE ROGERS CANCER INSTITUTE WAS DEDICATED TO PROVIDING OUTPATIENT CHEMOTHERAPY AS WELL AS INPATIENT AND OUTPATIENT RADIATION THERAPY SERVICES. EACH YEAR ADVANCEMENTS CONTINUE IN GROWTH AND IMPROVEMENTS INCLUDING CONSTRUCTION OF THE NEW BAPTIST BEAUMONT HOSPITAL, WHICH INCLUDE APPROXIMATELY 160,000 SQUARE FEET TO THE EXISTING EAST CAMPUS. THE INNOVATIVE ADDITION WOULD INCLUDE ADDITIONAL INTENSIVE CARE AND TELEMETRY ROOMS AND A NEW EMERGENCY DEPARTMENT THAT iNCREASED THE NUMBER OF PATENTS WHO CAN BE SERVED TO 90,000 PER YEAR. THE NEW CONSTRUCTION ALSO INCLUDED NEW SURGERY SUITES, ENDOSCOPY, CATHETERIZATION LABS, IMAGING DEPARTMENT, OUTPATIENT HOLDING AREA, HOSPITAL CAFETERIA, CHAPEL, PHARMACY, AND GIFT SHOP. ANOTHER 52,000 SQUARE FEET OF RENOVATIONS WERE COMPLETED PROVIDING NEW GASTROINTESTINAL LABS, A NEW LABORATORY, REHABILITATION UNIT, PULMONARY FUNCTIONS LAB AND DAY SURGERY UNITS. WITH THE COMPLETION OF THE "NEW CITY OF HEALING" IN 2003, THE EXPANSION OF SERVICES WAS AT THE HEART OF THE ORGANIZATION. FOCUSING ON THE SMALLEST MEMBERS OF THE COMMUNITY, THE CHILDREN'S UNIT AT BAPTIST BEAUMONT HOSPITAL ORIGINATED-PROVING CARING FOR KIDS IS JUST THE RIGHT SIZE AT BAPTIST BEAUMONT HOSPITAL. MEETING THE UNIQUE NEEDS OF CHILDREN, THE FIRST CERTIFIED CHILD LIFE SPECIALIST WAS ADDED TO HELP CHILDREN FROM INFANTS TO TEENS AND THEIR FAMILIES COPE WITH A HOSPITAL EXPERIENCE. THE CHILD LIFE SPECIALIST PROVIDES EMOTIONAL AND DEVELOPMENTAL SUPPORT WHILE GIVING HONEST INFORMATION GEARED TO A CHILD'S LEVEL OF UNDERSTANDING AND, OF COURSE, PLENTY OF CHILD'S PLAY! WITH OVER 40 MILLION PEOPLE FEELING EXHAUSTED BECAUSE THEY ARE EXPERIENCING A SLEEP DISORDER, BAPTIST BEAUMONT HOSPITAL PROUDLY ANNOUNCED THE SLEEP CENTER LOCATED AT THE MAIN CAMPUS. CHRONIC SLEEP DISORDERS CAN DISTURB FAMILY LIFE, AFFECT PRODUCTIVITY AT WORK AND EVEN RESULT IN DEATH. THE SLEEP CENTER WAS ESTABLISHED TO PROVIDE COMPREHENSIVE CARE TO PATIENTS WHO ARE EXPERIENCING SLEEP PROBLEMS. SOME OF THE MOST COMMON DISORDERS INCLUDE: SLEEP APNEA, NARCOLEPSY, RESTLESS LEG SYNDROME AND INSOMNIA. BAPTIST BEAUMONT HOSPITAL'S WOUND HEALING AND BARIATRIC CENTER PROVIDES COMPREHENSIVE, OUTPATIENT WOUND CARE SERVICES, INCLUDING HYPERBARIC OXYGEN THERAPY. THE CENTER UTILIZES A MULTIDISCIPLINARY APPROACH TO WOUND CARE BY COORDINATING THE EFFORTS OF MULTIPLE SPECIALTIES TRAINED TO TREAT PATIENTS WITH CHRONIC OR NON-HEALING WOUNDS. THE CENTER IS STAFFED BY PHYSICIANS IN THE FOLLOWING SPECIALTIES: FAMILY MEDICINE, INFECTIOUS DISEASE, PODIATRY, AND THORACIC/VASCULAR SURGERY. THE CERTIFIED PROGRAM IS COMPLIANT WITH THE MOST STRINGENT STANDARDS OF PERFORMANCE. BY UTILIZING THE RIGOROUS STANDARDS AND CLINICAL PRACTICE GUIDELINES, SUPERIOR CARE IS PROVIDED TO THE COMMUNITY. THE WOUND HEALING AND BARIATRIC CENTER HAS RECEIVED THE GOLD SEAL OF APPROVAL IN DISEASE STATE MANAGEMENT FROM THE JOINT COMMISSION ON ACCREDITATION OF HOSPITAL ORGANIZATIONS. OVER THE NEXT FEW YEARS, ADDITIONAL PROGRAMS AND SERVICES SUCH AS THE STRYKER NAVIGATION TECHNOLOGY HAVE BEEN ADDED TO COMPLEMENT THE SERVICES PROVIDED AT BAPTIST BEAUMONT HOSPITAL. THE STRYKER NAVIGATION SYSTEM OFFERS A TECHNOLOGY OPTION THAT HELPS FACILITATE ACCURATE IMPLANT ALIGNMENT AND PROPER LIGAMENT BALANCING, WHICH ARE THE MOST IMPORTANT PREREQUISITES FOR THE ARTIFICIAL KNEE JOINT STABILITY, DURABILITY AND SUFFICIENT RANGE OF MOTION. NAVIGATED TOTAL KNEE REPLACEMENT IS AN EXTREMELY SUCCESSFUL WAY TO TREAT QUALIFYING PATIENTS WITH SEVERE KNEE PAIN. THE NEW SURGICAL NAVIGATION TECHNOLOGY THAT IS NOW IN PLACE GREATLY ENHANCES THE ABILITY TO RESTORE RANGE OF MOTION, OVERALL FUNCTION AND RETURNS PATIENTS TO NORMAL ACTIVITIES. AT BAPTIST BEAUMONT HOSPITAL, THE NEWEST ARRIVAL TO WOMEN'S SERVICES IS THE "HUGS AND KISSES" INFANT PROTECTION SYSTEM. LOCATED IN THE PEDIATRIC AND WOMEN'S SERVICES UNIT, AN ADVANCED SYSTEM HAS BEEN IMPLEMENTED FOR ENSURING THE SAFETY OF BABIES, HELPING TO ENSURE THAT A BABY IS MATCHED WITH ITS OWN MOTHER WHEN BROUGHT TO A ROOM FROM THE NURSERY AND THAT ONLY AUTHORIZED INDIVIDUALS MOVE A BABY THROUGH THE UNITS. THE VERICHIP RADIO TRANSMITTER IS PLACED ON THE BABY'S ANKLE. WITH A WIRELESS SYSTEM IN PLACE THROUGHOUT THE AREA, "HUGS" POLLS THE BABY'S MOTIONS EVERY SEVEN SECONDS TO DETERMINE THE EXACT LOCATION OF THE INFANT IN RELATION TO AN ELECTRONIC FLOOR PLAN THAT IS OBSERVED BY HOSPITAL STAFF. IN MAY 2006 THE NEW DAUPHIN CANCER SCREENING AND PREVENTION CENTER PARTNERED WITH THE JULIE AND BEN ROGERS CANCER INSTITUTE OPENED TO THE COMMUNITY. A FIRST IN SOUTHEAST TEXAS, THE CENTER OFFERS SCREENING TESTS FOR PROSTATE CANCER AND BREAST CANCER ALONG WITH PREVENTION PROGRAMS. THE DAUPHIN CENTER WAS THE FIRST IN THE AREA TO OFFER DIGITAL MAMMOGRAM IN SOUTHEAST TEXAS. IN 2007 THE TEXAS NURSES ASSOCIATION (TNA), A STATEWIDE PROFESSIONAL ORGANIZATION OF REGISTERED NURSES, ANNOUNCED THE NEW ADDITIONS TO THE LIST OF HOSPITALS IN TEXAS TO EARN THE NURSE-FRIENDLY HOSPITAL DESIGNATION. AWARDED ONLY TWICE A YEAR, THE TNA'S NURSE-FRIENDLY HOSPITAL DESIGNATION NOW BELONGS TO THE BAPTIST BEAUMONT CAMPUS. THE NEWEST RECIPIENTS JOIN ONLY THIRTY-ONE OTHER HOSPITALS FROM THE STATE'S 581 IN ATTAINING THE THREE-YEAR DESIGNATION. THIS AWARD TELLS THE COMMUNITY THAT BAPTIST BEAUMONT HOSPITAL IS COMMITTED TO THE HIGHEST QUALITY OF PATIENT CARE AND IT TELLS NURSES THAT THE HOSPITAL PROVIDES THE TYPE OF ENVIRONMENT THAT ALLOWS NURSES TO PRACTICE EXCELLENT PRACTICE CARE. LATER THE SAME YEAR, THE GREATER BEAUMONT CHAMBER OF COMMERCE RECOGNIZED BAPTIST BEAUMONT HOSPITAL FOR ITS LONG-TIME COMMITMENT TO SOUTHEAST TEXAS WHEN IT ANNOUNCED THE BEAUMONT FACILITY HAD BEEN RECOGNIZED AS THE RECIPIENT OF THE 2007 SPINDLETOP AWARD. RECOGNITION WAS GIVEN FOR THE ACCOMPLISHMENTS WITH THE NEW EXPANSION AND THE LEVEL OF HEALTHCARE PROVIDED TO THE COMMUNITY. BAPTIST HOSPITAL'S AWARD-WINNING CARE IS COMPLEMENTED BY BEING CERTIFIED AS AN ADVANCED PRIMARY STROKE CARE CENTER BY THE JOINT COMMISSION FOR DISEASE-SPECIFIC CARE. THE STROKE PROGRAM AT BAPTIST BEAUMONT HOSPITAL HAS BEEN RECOGNIZED FOR EXCEPTIONAL EFFORTS TO FOSTER BETTER OUTCOMES FOR STROKE PATIENTS. THE STROKE PROGRAM HAS PARTNERED WITH LOCAL VENDORS, MEDICAL PERSONNEL AND PHYSICIANS TO ESTABLISH THE NEW STROKEWISE SUPPORT GROUP DESIGNED TO PROVIDE STROKE SURVIVORS AND THEIR FAMILIES A WAY TO MEET OTHER STROKE SURVIVORS OR CAREGIVERS. BAPTIST BEAUMONT HOSPITAL'S FOCUS ON INNOVATION IMPLEMENTED THE MEDIVANCE'S COOLING TECHNOLOGY. THE ARCTIC SUN THERAPEUTIC TEMPERATURE MANAGEMENT DEVICE, THE ONLY ONE IN SOUTHEAST TEXAS, IS A PRECISE NONINVASIVE PATIENT COOLING DEVICE THAT IS USED AT MORE THAN SEVENTY PERCENT OF THE NATION'S TOP HOSPITALS. THE NEWEST MEMBER OF THE EMERGENCY DEPARTMENT IS THE RP-6 MOBILE ROBOT SYSTEM, MADE BY INTOUCH HEALTH, THE ROBOT ALLOWS DOCTORS TO "VIRTUALLY" CONSULT WITH PATIENTS, FAMILY MEMBERS, AND HEALTHCARE STAFF AT A MOMENT'S NOTICE, EVEN IF MILES AWAY FROM THE HOSPITAL. THE RP-6 WILL ALLOW PHYSICIANS IMMEDIATE ACCESS TO PATIENTS IN SITUATIONS WHERE TIME IS CRITICAL. THE HOSPITAL WAS ALSO RECOGNIZED BY THE TEXAS HEALTH CARE QUALITY IMPROVEMENT AWARD PROGRAM WITH THE AWARD OF EXCELLENCE. OTHER AWARDS INCLUDE THE 2005 PRESS GANEY COMPASS AWARD PRESENTED TO BAPTIST BEAUMONT HOSPITAL FOR OUTSTANDING IMPROVEMENT IN PATIENT SATISFACTION. MOST RECENTLY, THE VHA AWARDED BAPTIST BEAUMONT HOSPITAL WITH THE 2006 LEADERSHIP AWARD FOR CLINICAL EXCELLENCE IN CARDIAC CARE. WITH THE ADDITION OF A FIFTY-TWO BED PATIENT TOWER, A CONVENIENT CARE CLINIC, A NEW 64 SLICE CT SCANNER AND MRI THAT ALLOWS PHYSICIANS NEW INNOVATIONS IN TECHNOLOGY, AND THE NEWLY ESTABLISHED INFANT TRANSPORT TEAM, BAPTIST BEAUMONT HOSPITAL CONTINUES TO CARRY ITS COMMITMENT TO SOUTHEAST TEXAS INTO THE TWENTY-FIRST CENTURY. SINCE 1949, BHSET HAS CONTINUOUSLY INVESTED IN THE LATEST MEDICAL INSTRUMENTS, EQUIPMENT AND TECHNOLOGY TO ASSURE THE RIGHT HEALTHCARE FOR SOUTHEAST TEXAS IS RIGHT HERE. IN THE HANDS OF OUR HIGHLY SKILLED PARTNERS IN CARING-OUR 264703766 true true false true false false false false false false true false false true true false false true false true true false false false false false true true true false true false false false false false false false false false false false false false true true true false false true 243 0 true 2078 true true true true CJ false false false false false false false false X 21 18 false false true false true true true true true false false true true true true true true false true true true X Gary Troutman CFO 4092125003 3080 College Street Beaumont TX 77701 Bo Crawford Chairman of the Board 1.0 1.0 X 0 0 0 Jeff Dyson Third Vice President 1.0 0.0 X 0 0 0 Dr Saku Kumar Director - Board Member 1.0 0.0 X 0 0 0 Gary Rothenberger Chairman Human Resources Comm 1.0 0.0 X 0 0 0 Ann Scoggin Director - Board Member 1.0 0.0 X 0 0 0 Walter D Snider Second Vice President 1.0 0.0 X 0 0 0 Larry Walker Secretary 1.0 0.0 X 0 0 0 Terry Whiddon First Vice President 1.0 0.0 X 0 0 0 David Parmer CEO/Pres Bapt Hospitals S/E TX 40.0 0.0 X X 0 432088 45390 Wilson Weber Director-Board Member/Ex-Offic 1.0 39.0 X X 0 784902 36757 Greg Dykeman Director - Board Member 1.0 0.0 X 0 0 0 D'Lana Barbay Director-Board Member 1.0 0.0 X 0 0 0 Cheri Cook Director-Board Member 1.0 0.0 X 0 0 0 Dr Pat Bransforduntil 1116 Director-Board Member 1.0 0.0 X 0 0 0 Dr Dave S Carpenter Director-Board Member 1.0 0.0 X 0 0 0 Dr John R Adolph Director - Board Member 1.0 0.0 X 0 0 0 Gehrig Brown Director - Board Member 1.0 0.0 X 0 0 0 Dr Shariq Ahmad beg 1116 Director - Board Member 1.0 0.0 X 0 0 0 Jimmie Carpenter Chair Patient Safety & Quality 1.0 0.0 X 0 0 0 John Winston Coates Director - Board Member 1.0 0.0 X 0 0 0 Gary W Coker Director - Board Member 1.0 0.0 X 0 0 0 MICHAEL D WILLIAMS CEO-Comm Hosp Corp/EX-OFFICIO 4.0 36.0 X X 0 1470244 32394 Gary Troutman CFO Baptist Hospitals S/E TX 40.0 0.0 X 0 550913 38773 Karen Tomsu CNO Baptist Hospitals S/E TX 40.0 0.0 X 0 169981 13771 Patrick Shannon COO Baptist Hospitals S/E TX 40.0 0.0 X 0 155348 7787 David Butler Assistant Secretary 1.0 39.0 X 0 446457 31538 Bryan Chandler Vice Pres Business Development 40.0 0.0 X 192198 0 28188 Mathis T Haynes Admin Dir CBO 40.0 0.0 X 304798 0 24706 Gary Hay Perfusionist 40.0 0.0 X 180478 0 30517 Graydon D Parchmont Director - Cardiac Cath Lab 40.0 0.0 X 179756 0 25628 Dorrell M Dixon Director - Renal Dialysis 40.0 0.0 X 153062 0 24862 Neil A Capili Registered Nurse 40.0 0.0 X 157515 0 20505 1167807 4009933 360816 120 false true false Crothall Healthcare Inc 13028 Collection Center Dr Chicago IL 60693 Environmental Svcs 3223740 TX Institute of Sleep Partners 14000 N Portland Ave Suite 201 Oklahoma City OK 73134 Purchased Services 2062830 Sodexo CTM Inc PO Box 415000 MSC-410672 Nashville TN 372415000 Environmental Svcs 1439019 The Greeley Company Inc PO Box 3049 Peabody MA 019613049 Consulting Services 1316127 HB Mechanical Services PO Box 569 Porter TX 77365 Mechanical Services 887271 163 49005 10126 523588 582719 Net Patient Revenue 621300 342659753 342659753 0 0 HITECH FUNDS 621300 1146523 1146523 WALGREENS 340B REV 621300 891648 891648 HIV Revenue 621300 204131 204131 0 0 Radiology School Tuition 611600 156445 156445 0 0 213167 213167 0 0 345271667 370401 370401 0 0 2682558 2682558 0 2682558 1046137 1636421 14000 14000 14000 14000 0 0 0 Cafeteria Income 722310 1128759 0 0 1128759 Vending Machine Income 722310 29080 0 0 29080 1157839 350079184 345271667 1046137 3178661 17500 17500 0 0 0 0 0 0 1399046 285335 1113711 0 0 0 0 0 93873259 75151632 18721627 0 1563336 1203769 359567 0 10742959 8133643 2609316 0 6706080 5163701 1542379 0 13754466 4018208 9736258 0 1099181 0 1099181 0 210286 0 210286 0 18089 18089 0 0 0 0 0 0 0 21472648 11076234 10396414 78528 0 78528 0 5161498 3035086 2126412 0 4036670 827065 3209605 0 0 0 0 0 4605555 22379 4583176 0 195572 26036 169536 0 0 0 0 0 67593 53353 14240 0 6057195 4664040 1393155 0 0 0 0 0 11362402 8749050 2613352 0 1896400 0 1896400 0 Medical Supplies 50050256 45545733 4504523 0 Bad Debt 94202187 94202187 0 0 REPAIRS & MAINTENANCE 5551867 1779222 3772645 0 LPPF ASSESSMENT - TAX 6561089 6561089 0 4350243 749593 3600650 345033905 264703766 80330139 0 13830426 14053094 1216818 1218425 0 0 31792188 34119181 0 0 0 0 2593855 3148802 5921377 5104742 2636020 5514105 384739373 275174556 113786989 109564817 378915 393986 6 0 0 0 335002 930797 37599408 31655741 210091004 205703690 36707773 37166340 0 0 0 0 0 0 0 0 0 0 111597502 101685459 0 0 11162976 10353183 159468251 149204982 X 50453091 56316472 169662 182236 0 0 50622753 56498708 210091004 205703690 X 5045279 -4851 0 0 0 835527 X X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false 0 false 0 false 0 true 18089 false 0 false 0 false 0 18089 false Schedule C, Part II-B, Line 1F MEMBERSHIP DUES TO AMERICAN HOSPITAL ASSOCIATION, (AHA) and TEXAS HOSPITAL ASSOCIATION, (THA): BAPTIST HOSPITALS OF SOUTHEAST TEXAS PAID $43,078 TO AHA AND $61,492 TO THA IN FISCAL YEAR 2016. THE PORTION OF DUES THAT WERE USED FOR LOBBYING PURPOSES WAS 24.42% FOR AHA AND 12.31% FOR THA. TOTAL DUES PAID FOR LOBBYING ACTIVITES WERE $18,089. ($10,520 AHA and $7,569 THA = $18,089) 8251935 8251935 186622415 130131506 56490909 6579389 5195148 1384241 160762028 129089122 31672906 22523606 10758780 11764826 109564817 HUD 242 MRF Fund 15326835 Captive Insurance Fund 12145542 HPL Excess 2153910 Deferred Financing Costs 1785842 Restricted Funds 181760 HUD 241 MRF Fund 176630 Intracompany Accounts 84503 USPI Mgmt fee Recv 5309 Limited Funds 3415 Other Misc -208005 31655741 0 LT HPL LEGAL RESERVE 9195787 Asbestos Abatement 958452 DEF RENT PHELAN MEAD 198944 10353183 Central America and the Caribbean 1 Program services CAPTIVE INSURANCE 2628337 Central America and the Caribbean Investments, program-relate CAPTIVE INSURANCE 12145542 1 1 14773879 14773879 true false true false false false SCHEDULE F, PART I, LINE 3 THE AMOUNT IN PART I, LINE 3, COLUMN F REPRESENTS ALL EXPENDITURES IN THE REGION ON AN ACCRUAL METHOD OF ACCOUNTING. true true X true X true X true true true false true true 11658657 11658657 0.04650 36119578 15305059 20814519 0.08290 461396 325744 135652 0.00050 48239631 15630803 32608828 0.12990 304647 98032 206615 0.00080 159777 156445 3332 0.00000 292385 292385 0.00120 756809 254477 502332 0.00200 48996440 15885280 33111160 0.13190 10 1195 2000 2000 0.00000 15 2912 3000 3000 0.00000 81 19795 16200 16200 0.00010 106 23902 21200 21200 0.00010 true 94202187 23550547 63533639 63607772 -74133 X true true 1 1 BAPTIST BEAUMONT HOSPITAL 3080 COLLEGE Beaumont TX 77701 www.bhset.net 000389 X X X Baptist Beaumont Hospital 1 false false true X X X X X X X X X 15 true true false true X www.bhset.net X true 15 true www.bhset.net false false true X 200. 400. X X X X true true X X X X true X www.bhset.net X www.bhset.net X www.bhset.net X X X X true X false X X X X true X false false SCHEDULE H, PART V, LINE 5 INPUT FROM COMMUNITY REPRESENTATIVES In preparing the Community Health Needs Assessment (CHNA) Baptist Hospitals of Southeast Texas (BHSET) consulted with the following representative from the community: *Sally Broussard Chief Administrative Officer for the Spindletop Center *Rasheeda Daughtery Community Director for the local March of Dimes office *Carol Fernandez President and CEO of the Catholic Charities of Southeast Texas *Colleen Halliburton Community Services Division Director of the Southeast Texas Regional Planning Commission *Karyn Hawkins President and Chief Executive Officer of the United Way of Beaumont and North Jefferson County *Chester Jourdan Executive Director of the American Red Cross of Southeast and Deep East Texas *John Neely Executive Director of the Southeast Texas Council on Alcohol and Drug Abuse *Michael Perez Executive Director of the Salvation Army boys and Girls Club of Beaumont *Seth Stephens Director of Disease Management Services at Baptist Hospitals of Southeast Texas *Sherry Ulmer Director of Beaumont Public Health Department These interviews were conducted over the telephone. Data from these interviews was utilized in developing the needs assessment for the organizations service are. SCHEDULE H, PART V, LINE 6A CHNA HOSPITAL FACILITIES A CHNA WAS CONDUCTED FOR THE BAPTIST BEAUMONT FACILITY. SCHEDULE H, PART V, LINE 11 The most recently conducted CHNA indicated that there were five main needs in the community served by Baptist Hospitals of Southeast Texas. Hospital Leadership prioritized those five needs using a structured matrix. The final list of prioritized needs, in descending order is listed below: 1. Access to Mental and Behavioral Health Care 1.A. BBH will continue to provide the only inpatient and outpatient psychiatric and chemical dependency programs between Houston and New Orleans. The hospital will focus efforts to promote these available services to the public. 1.B. Baptist Beaumont partners with the Spindletop Center to offer mental health and substance abuse treatment services. Baptist Beaumont pays for the first 72 hours for qualified patients, such as the uninsured. 1.C. BBH provides a detox program through its partnership with the Spindletop Center. 1.D. BBH is available to provide crisis care through its newly opened Crisis Stabilization Unit in partnership with the Spindletop Center. The Crisis Stabilization Unit is open 24 hours a day, 7 days per week, and provides a more affordable alternative to hospitalization. Services include group therapy, medication management, and psychiatric evaluation 1.E. BBH therapists will continue to work with patients to refer them to appropriate facilities for their needed care. 1.F. In addition to the 3 recently recruited psychiatrists, BBH is currently exploring the addition of Nurse Practitioners to the Behavioral Health Center and is always exploring the recruitment of additional psychiatrists to the area. 1.G. BBH will continue to be available to speak at local middle and high schools with regard to promoting mental or behavioral health on an as needed basis. BBH personnel have presented to local middle and high schools on emerging issues such as bullying, self-harm, and recreational drug abuse. 1.H. BBH will continue to support the local Mental Health Association dinner every year in January through a donation towards their fundraising efforts. 1.I. BBH will continue to provide a full-time psychiatric Nurse Practitioner in the Emergency Room to screen and appropriately address any applicable mental health patients that present to the Emergency Room. 1.J. BBH is an active member of the Community Mental Health Consortium, including all 3 hospitals in the area as well as law enforcement and EMS services, that meets quarterly to discuss how to better address mental health services in the community. 1.K. BBH will continue to strive to staff bilingual Psychiatrists in its Behavioral Health Center, as well as to provide a translation language line. 1.L. BBH will continue to create and release Public Service Announcements (PSA), such as its current synthetic marijuana PSA, regarding any emerging health issues in the area. 1.M. BBH will continue to provide transportation for mental health patients to get to their necessary therapy through the mobile van and/or through the Chaplain Fund. 1.N. BBH will continue to provide geriatric psychiatry services through its Senior Care Unit. 1.O. BBH will continue to provide detox services through its newly opened Detox Unit. 1.P. Upon discharge from the Behavioral Health Center, patients may seek available services through the Chemical Dependency Intensive Outpatient Program or the Partial Hospitalization Program that allows for patients to go back to work while still seeking necessary mental and behavioral health care. 2. Prevention Education and Services to Address High Mortality Rates, Chronic diseases, Preventable Conditions and Unhealthy Lifestyles 2.A. BBH is actively participating with the City of Beaumont IN the "let's move" initiative in Southeast Texas. This national program is designed to promote healthy lifestyles, activities and education on wellness. 2.B. BBH will continue to reach out to the community by offering numerous classes, speakers and other informative activities. Hospital personnel are made available as speakers for civic groups, industrial partners, media appearance and health fairs to address health topics of particular concern to the public. 2.C. BBH will continue to host quarterly community seminars on topics such as joint replacement and bariatrics, as well as increase awareness of these service offerings through social media outlets. 2.D. BBH provides support groups to encourage follow-up and continued education for patients during and after an illness. BBH initiates support groups for patients and family members based on demand for the programs. Some of the groups currently meeting include: Stroke Wise Support Group, Bariatrics, Cancer Support Group and Diabetes Education. 2.E. BBH partners with community organizations to host a variety of free health screenings which can include blood pressure, weight, glucose, pulmonary function, diabetes and heart disease on an as needed basis. 2.F. BBH partners with the Beaumont Independent School District to host educational wellness programs at school campuses on a variety of topics. The programs are provided to both school staff as well as students. 2.G. BBH will continue to partner with EMS to promote better health in the community, including quarterly lunch and learns surrounding trauma and emergency education. 2.H. BBH provides regular Tobacco Awareness programs in the hospital, at employer locations and at community events to outline the risks of smoking and tobacco use, including lung cancer and other pulmonary diseases. 2.I. BBH will continue to engage in a variety of employee wellness initiatives, including: promoting employee and family wellness via Accountable Health and the Hospital Wellness Committee; offering need specific special programs; CHIP (Coronary Health Improvement Plan); smoking cessation; weight management; collaborating with hospital cafeteria providers to highlight healthy food options; promoting fitness opportunities and exercise classes on campus, as well as discounted gym membership offerings; charitable fitness events; providing mental health education through the Employee Assistance Program via Beacon Health Options; and continuing to implement the tobacco-free new hire policy. 2.J. BBH will strive to maintain designation as a Texas Ten Step Facility by the Department of State Health Services and the Texas Hospital Association 2.K. BBH will evaluate the opportunity to establish a Breast Milk Depot. This program involves healthy, lactating women to donate their extra breast milk to preterm and ill infants in need when a mother cannot provide her own breast milk. Partnering with the Breast Milk Bank of Austin, potential donors are evaluated and screened. Once approved, they will be allowed to donate breast milk on site at Baptist Beaumont Hospital and the breast milk will be sent to Austin to be used by all Texas hospitals. 2.L. BBH will continue to offer educational seminars on health, wellness and independent living issues including taking medications, basic first aid, health screening and defensive driving classes to the 55+ members of the population. 2.M. BBH will continue to partner with the Congregational Health Ministry (Parish Nursing) to provide a Faith Community Nursing program designed to promote the ministry of the nurse in local congregations, training and certifying nurses to become Faith Community Nurses (FCN). This program provides unreimbursed services and training to educate faith-based nurses to function in their respective congregations and assist them with the implementation of their congregational programming. BBH, Faith Community Nurses, partnering with Congregational Health Ministry, SCHEDULE H, PART I, LINE 6A COMMUNITY BENEFIT REPORT OUR COMMUNITY BENEFIT REPORT FOR FY 2016 WAS PREPARED BY VIVANTI GROUP, LLC WITH THE ASSISTANCE OF OUR CORPORATE OFFICE. SCHEDULE H, PART I, LINE 7 COMMUNITY BENEFIT EXPENSE LINE 7A: RATIO OF COST TO CHARGES FOR THE PATIENTS THAT RECEIVED A CHARITY DISCOUNT BASED ON THE HOSPITALS COST ACCOUNTING SYSTEM. LINE 7B: RATIO OF COST TO CHARGES FOR THE MEDICAID PATIENTS BASED ON THE HOSPITALS COST ACCOUNTING SYSTEM. LINE 7C: RATIO OF COST TO CHARGES FOR CHIP PATIENTS BASED ON THE HOSPITALS COST ACCOUNTING SYSTEM. LINE 7E: ACTUAL EXPENSES LESS ANY DIRECT OFFSETTING REVENUE. LINE 7F: ACTUAL EXPENSES LESS ANY DIRECT OFFSETTING REVENUE. LINE 7I: ACTUAL EXPENSE OF THE CONTRIBUTIONS. SCHEDULE H, PART II COMMUNITY BUILDING ACTIVITIES Baptist Hospitals of Southeast Texas are a not-for-profit healthcare system with spiritual values, dedicated to providing high quality health services in order to improve the health of the people in Southeast Texas. Baptist Hospitals of Southeast Texas supports and participates in, either through funding or manpower or both, many projects across the community. With a stronger focus on a healthier community, Baptist Hospitals of Southeast Texas sponsored the Gusher Marathon that included over 1,800 participants. Hospital employees coordinated a community educational event in recognition of National Stroke Month with included educational booths and health screenings. LifeShare Blood drives held at Baptist Hospitals of Southeast Texas revealed 139 units of blood products. Employees of Baptist Hospitals of Southeast Texas participated in the Annual Alzheimers Walk, Relay for Life, March of Dimes WalkAmerica, Diabetes Stroll, Walk for Lupus, American Heart WalkCancer Strides for Life and the March of Dimes Community Baby Shower. To extend their reach into the community, Baptist Hospitals of Southeast Texas adopted three families that experienced the devastating flood waters in Deweyville. Employees collected household products, clothes, food, cleaning supplies, baby formula and $4,000.00 in gift cards to present to these three families. Baptist Hospitals of Southeast Texas reaches out to the community by offering numerous classes, speakers and other informative activities. Hospital personnel are made available as speakers for civic groups, industrial partners, and media appearance and health fairs to address health topics of particular concern to the public. In 2015-2016, 23,902 individuals received information needed to make healthy lifestyle choices. (See Community Report.) For over 60 years, Baptist Hospitals of Southeast Texas has been built on a solid nine county area that we serve. Meeting the communitys needs was the underlying principle upon which this hospital was founded. Baptist Hospitals of Southeast Texas are making fundamental differences in the general health and well-being of the communities we serve. SCHEDULE H, PART III, LINE 2 BAD DEBT METHODOLOGY THE BAD DEBT EXPENSE IS THE BAD DEBT EXPENSE PER THE AUDITED FINANCIAL STATEMENTS. SCHEDULE H, PART III, LINE 3 METHODOLOGY USED TO ESTIMATE BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE FOR FINANCIAL ASSISTANCE IN ORDER FOR A PATIENT TO RECEIVE FINANCIAL ASSISTANCE THEY MUST COMPLETE THE CHARITY APPLICATION SO THAT WE HAVE DOCUMENTATION THAT THEY QUALIFY FOR ASSISTANCE. THE PATIENTS THAT WOULD BE ELIGIBLE BUT THAT DO NOT COMPLETE THE CHARITY APPLICATION ARE WRITTEN OFF TO BAD DEBT. THE BUSINESS OFFICE ESTIMATES THE PERCENTAGE OF PATIENTS THAT WOULD QUALIFY FOR ASSISTANCE BASED ON CONVERSATIONS WITH THOSE PATIENTS THAT DO NOT COMPLETE THE APPLICATION. WE DISCLOSE THAT AMOUNT ON SCHEDULE H, PART III, LINE 3, as the amount of the organizations bad debt expense attributable to patients eligible under the organizations financial assistance policy. SCHEDULE H, PART III, LINE 4 FOOTNOTE TO FINANCIAL STATEMENTS REGARDING BAD DEBT Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the collectability of accounts receivable, BHSET analyzes its past history and identifies trends for each of its major payer sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for uncollectible accounts. Management regularly reviews data about these major payer sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts. For receivables associated with services provided to patients who have third-party coverage, BHSET analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for uncollectible accounts, if necessary, (for example, for expected uncollectible deductibles and copayments on accounts for which the third-party payer has not yet paid, or for payers who are known to be having financial difficulties that make the realization of amounts due unlikely). For receivables associated with self-pay patients (which includes both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), BHSET records a significant provision for uncollectible accounts in the period of service on the basis of its past experience, which indicates that many patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates or the discounted rates as provided by BHSETs internal policy and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. During 2016, BHSET changed its policy for discounting self-pay patients. Prior to the change, BHSETs policy was to apply a self-pay discount of 78% for uninsured patients. After the change, the 78% discount is applied to uninsured patients that complete a charity application but do not qualify for charity. This change in policy did not impact net patient accounts receivable but did increase the allowance for bad debt approximately, primarily related to self-pay patients, $41,000,000 at June 30, 2016. SCHEDULE H, PART III, LINE 8 TREATMENT OF MEDICARE SHORTFALL AS COMMUNITY BENEFIT THE SHORTFALL IS A COMMUNITY BENEFIT AS IT IS THE COST OF PROVIDING CARE TO THE COMMUNITY THAT IS NOT REIMBURSED BY THE MEDICARE PROGRAM. BY PROVIDING CARE TO THESE INDIVIDUALS, THE HOSPITAL IS IMPROVING THE HEALTH OF THE COMMUNITY. COST METHODOLOGY FOR MEDICARE WE UTILIZED THE COST INFORMATION PROVIDED IN OUR 8/31/2015 COST REPORT AS FILED WITH MEDICARE. SCHEDULE H, PART III, LINE 9B WRITTEN DEBT COLLECTION POLICY PATIENTS WITHOUT A PAYOR SOURCE ARE EDUCATED ABOUT THE HOSPITAL'S CHARITY POLICY. BASED UPON THE HOSPITAL'S CHARITY POLICY, A PATIENT MAY QUALIFY FOR CHARITY ON A SLIDING SCALE. THE MINIMUM CHARITY LEVEL IS 10% UP TO A MAXIMUM OF 100%. PATIENTS THAT QUALIFY FOR CHARITY HAVE THEIR ACCOUNT REDUCED BASED ON THE LEVEL OF CHARITY THEY QUALIFY FOR. PATIENTS WITH A BALANCE REMAINING AFTER APPLICATION OF THE CHARITY ARE HANDLED CONSISTENT WITH THE HOSPITAL'S COLLECTION POLICY. SCHEDULE H, PART VI, QUESTION 2 COMMUNITY NEEDS ASSESSMENT A comprehensive CHNA was conducted for Baptist Hospitals of Southeast Texas in 2016. The Hospitals study area was defined as Jefferson and Orange Counties. The analysis included a careful review of the most current health data available and input from numerous community representatives with special knowledge of public health. Findings indicated that there were five main needs in the communities serviced by BHSET. On May 16, 2016 leadership from BHSET including Bryan Chandler (Vice President of Business Development and Mary Poole (Director of Public Relations) met with CHC to review findings and prioritize the communitys health needs. Leadership ranked the health needs based on three factors: Size and Prevalence of Issue, Effectiveness of Interventions and Hospitals capacity. Hospital leadership ranked the five significant health needs based on the three factors discussed, resulting in the following list (in descending order): *Access to Mental and Behavioral Health Care *Prevention, Education and Services to Address High Mortality Rates, Chronic Diseases, Preventable Conditions and Unhealthy Lifestyles *Access to Affordable Care and Reducing Health Disparities among Specific Populations *Need for Increased Emphasis on a Collaborative Continuum of Care *Access to Specialty Care Services Hospital leadership decided to address all of the ranked health needs through its Implementation Plan. The objectives were identified by studying the prioritized health needs, within the context of the hospitals overall strategic plan and the availability of finite resources. The plan includes a rationale for each priority, followed by objectives, specific implementation activities and the anticipated impact and evaluation. SCHEDULE H, PART VI, QUESTION 3 PATIENT EDUCATION PATIENTS WITHOUT A PAYOR SOURCE ARE EDUCATED ABOUT THE HOSPITAL'S CHARITY POLI true Sports Society for American Health 9270 Glen Meadow Beaumont TX 77706 760646118 501(c)(3) 12500 Community Support 1 0 SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING THE USE OF GRANTS THE DIRECTOR OF MARKETING MAINTAINS THE RECORDS TO SUBSTANTIATE ANY RECIPIENT (OTHER THAN EMPLOYEES) THAT RECEIVES GRANTS OR ASSISTANCE FROM BAPTIST HOSPITALS OF SOUTHEAST TEXAS. THIS IS ALSO RECORDED ON OUR ANNUAL COMMUNITY BENEFITS REPORT. RECORDS ARE MAINTAINED TO DOCUMENT AND MONITOR THE AMOUNT OF ASSISTANCE AS WELL AS THE SELECTION CRITERIA USED TO GRANT THE AWARD. false true false false false false false true false David Parmer CEO/Pres Bapt Hospitals S/E TX 0 415332 0 0 0 16756 0 24905 0 20485 0 477478 0 0 Wilson Weber Director-Board Member/Ex-Offic 0 459476 0 269690 0 55736 0 8722 0 28035 0 821659 0 0 Gary Troutman CFO Baptist Hospitals S/E TX 0 262159 0 0 0 288754 0 17638 0 21135 0 589686 0 0 Bryan Chandler Vice Pres Business Development 192198 0 0 0 0 0 17908 0 10280 0 220386 0 0 0 Mathis T Haynes Admin Dir CBO 304798 0 0 0 0 0 21015 0 3691 0 329504 0 0 0 Gary Hay Perfusionist 180478 0 0 0 0 0 20538 0 9979 0 210995 0 0 0 Graydon D Parchmont Director - Cardiac Cath Lab 179756 0 0 0 0 0 21575 0 4053 0 205384 0 0 0 Dorrell M Dixon Director - Renal Dialysis 151377 0 1685 0 0 0 20049 0 4813 0 177924 0 0 0 Neil A Capili Registered Nurse 156517 0 998 0 0 0 4475 0 16030 0 178020 0 0 0 Karen Tomsu CNO Baptist Hospitals S/E TX 0 132669 0 6000 0 31312 0 7274 0 6497 0 183752 0 0 Patrick Shannon COO Baptist Hospitals S/E TX 0 122088 0 0 0 33260 0 7704 0 83 0 163135 0 0 David Butler Assistant Secretary 0 286488 0 133548 0 26421 0 6032 0 25506 0 477995 0 0 MICHAEL D WILLIAMS CEO-Comm Hosp Corp/EX-OFFICIO 0 665522 0 507455 0 297267 0 9078 0 23316 0 1502638 0 0 SCHEDULE J, PART I, LINE 3 THE ORGANIZATION'S EXECUTIVES ARE EMPLOYED BY THE PARENT ORGANIZATION, COMMUNITY HOSPITAL CORPORATION (CHC), AND THEREFORE FOLLOW THE COMPENSATION POLICY OF SOUTHWEST COMMUNITY HOSPITAL, ITS CLASS A MEMBER, WHICH IN TURN FOLLOWS THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THE ORGANIZATION FOLLOWED THIS PROCESS FOR THE YEAR ENDED 6/30/2016 FOR ITS OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER MANAGEMENT OFFICIALS. SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN PARTICIPATION WAS PAID TO: DAVID BUTLER - 17,376 WILSON WEBER - 29,037 MICHAEL D. WILLIAMS - 259,340 SCHEDULE J, PART I, LINE 7 A PORTION OF THE DISCRETIONARY INCENTIVE COMPENSATION PROGRAM WAS BASED ON THE CONSOLIDATED EBIDA OF CHC. FORM 990, PART VI, LINE 6 MEMBERS OR STOCKHOLDERS BHSET HAS TWO CLASSES OF MEMBERS DESIGNATED AS CLASS A AND CLASS B. THE SOLE CLASS A MEMBER OF THE CORPORATION IS SOUTHWEST COMMUNITY HOSPITAL, INC. THE SOLE CLASS B MEMBER OF THE CORPORATION IS MEMORIAL HERMANN HOSPITAL SYSTEM ("MHHS"). FORM 990, PART VI, LINE 7A DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS THERE ARE TWO CLASSES OF MEMBERS DESIGNATED AS CLASS A AND CLASS B. THE SOLE CLASS A MEMBER OF THE CORPORATION IS SOUTHWEST COMMUNITY HOSPITAL, INC., A TEXAS NON-PROFIT CORPORATION. THE SOLE CLASS B MEMBER OF THE CORPORATION IS MHHS. MHHS HAS THE RIGHT TO APPOINT A SINGLE INDIVIDUAL TO THE BOARD OF DIRECTORS BUT HAS NO VOTING, VETO, APPROVAL OR CONSENT RIGHTS AS A MEMBER OF THE CORPORATION OTHER THAN THE RIGHTS THAT ARE EXPRESSLY SET FORTH IN THE ARTICLES OF INCORPORATION OF THE CORPORATION OR THE BYLAWS. THE CLASS A MEMBER DETERMINES THE TOTAL NUMBER OF DIRECTORS. AFTER HAVING RECEIVED NOMINATIONS FROM THE BOARD, AND AFTER CONSIDERING THE NOMINATIONS AS WELL AS OTHER CANDIDATES AT THE DISCRETION OF THE CLASS A MEMBER, THE CLASS A MEMBER, AT ITS ANNUAL MEETING IN DECEMBER OF EACH YEAR, SHALL ELECT DIRECTORS FOR TERMS COMMENCING ON THE FIRST DAY OF THE NEXT MONTH FOLLOWING THE MONTH IN WHICH SUCH ELECTION OCCURS AND CONTINUING FOR THREE (3) YEARS AND UNTIL THEIR RESPECTIVE SUCCESSORS SHALL HAVE BEEN ELECTED AND QUALIFIED EXCEPT AS PROVIDED IN THE BYLAWS. AT LEAST (50%) OF THE DIRECTORS APPOINTED BY THE CLASS A MEMBER SHALL BE MEMBERS OF THE BAPTIST DENOMINATION. UNLESS PROHIBITED BY LAW. ACTIVE MEMBERS OF THE BEAUMONT HOSPITAL MEDICAL STAFF ARE ELIGIBLE TO BE ELECTED AS DIRECTORS OF THE CORPORATION AND ARE ENTITLED TO THE SAME PRIVILEGES AND SUBJECT TO THE SAME RESPONSIBILITIES IN THE SAME MANNER AS OTHER INDIVIDUALS. FORM 990, PART VI, LINE 7B DESCR CLASSES OF PERSONS, DECS REQUIRING APPR & TYPE OF VOTING RIGHTS THE FOLLOWING ACTIONS WILL REQUIRE THE PRIOR WRITTEN CONSENT OF THE CLASS B MEMBER: (I) THE AMENDMENT OF THE ARTICLES OF INCORPORATION OR THE BYLAWS TO THE EXTENT, AND ONLY TO THE EXTENT, AN AMENDMENT AFFECTS A RIGHT, POWER, OR PRIVILEGE OF THE CLASS B MEMBER. (II) MERGER OR CONSOLIDATION OF THE CORPORATION WITH ANY OTHER ORGANIZATION UNLESS: (A) THE BALANCE OF THE CAPITAL CONTRIBUTIONS OF THE CLASS B MEMBER AND ALL DEBT DESCRIBED IN THE MASTER AGREEMENT AMONG THE CLASS A MEMBER, CLASS B MEMBER AND CORPORATION OWED BY THE CORPORATION TO MHHS WILL BE PAID IN FULL TO MHHS; (B) THE TRANSACTION OCCURS WITH AN AFFILIATE OF THE CLASS A MEMBER; OR (C) THE TRANSACTION IS THE MERGER OF BAPTIST HOSPITAL ORANGE INTO THE CORPORATION. (III) BANKRUPTCY, DISSOLUTION, OR LIQUIDATION OF THE CORPORATION. (IV) TRANSFER, CONVEYANCE, OR ANY OTHER DISPOSITION OF ASSETS IN EXCESS OF $250,000 OTHER THAN IN THE ORDINARY COURSE OF BUSINESS. (V) ANY CONTRIBUTION REQUESTED OF THE CLASS B MEMBER. (VI) INCURRENCE OF DEBT BY THE CORPORATION IN EXCESS OF $500,000 OTHER THAN IN THE ORDINARY COURSE OF BUSINESS. (VII) ANY CHANGE IN THE MEMBERSHIP OF THE CORPORATION, EXCEPT REPLACEMENT OF THE CLASS A MEMBER WITH AN AFFILIATE OF SOUTHWEST COMMUNITY HOSPITAL, INC. OR MHHS (OR ITS SUCCESSOR AUTOMATICALLY CEASING TO BE THE CLASS B MEMBER). (VIII) ANY INTENTIONAL CHANGE IN THE TAX-EXEMPT STATUS OF THE CORPORATION. (IX) THE CORPORATION'S CREATION OF, OR INVESTMENT IN, ANY ORGANIZATION NOT AFFILIATED WITH THE CLASS A MEMBER WHEREBY THE CORPORATION SPENDS OR INVESTS OVER $1,000,000. (X) ANY AMENDMENT TO THE FORMULA FOR DETERMINING THE MANAGEMENT SERVICES FEE SET FORTH IN THE MANAGEMENT AGREEMENT BETWEEN THE CLASS A MEMBER, THE CORPORATION, BAPTIST HOSPITAL, ORANGE, AND Community Hospital CORPORATION. (XI) ANY RETURN OF A MEMBERSHIP CONTRIBUTION, DISTRIBUTION, OR PAYMENT OF ANY OTHER KIND NOT IN THE ORDINARY COURSE OF BUSINESS TO THE MEMBERS OF THE CORPORATION EXCEPT AS PERMITTED UNDER THE MANAGEMENT AGREEMENT BETWEEN THE CLASS A MEMBER AND THE CORPORATION, THE MANAGEMENT AGREEMENT BETWEEN THE CLASS B MEMBER AND THE CORPORATION, THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION, OR THE MASTER AGREEMENT BETWEEN THE CLASS A MEMBER, THE CLASS B MEMBER, AND THE CORPORATION. THE POWER TO ALTER, AMEND, OR RESTATE THE ARTICLES OF INCORPORATION OF THE CORPORATION OR TO ALTER, AMEND, OR REPEAL THE BYLAWS OR TO ADOPT NEW BYLAWS IS VESTED SOLELY IN THE CLASS A MEMBER, EXCEPT AS SET FORTH IN THE BYLAWS. ALL POWERS AND DUTIES OF THE CORPORATION ARE RESERVED SOLELY TO THE CLASS A MEMBER EXCEPT AS PROVIDED IN THE BYLAWS AND SPECIFICALLY DELEGATED TO THE CORPORATION'S BOARD OF DIRECTORS BY THE CLASS A MEMBER, AND AS SPECIFICALLY DELEGATED TO PERSONS OR GROUPS OTHER THAN THE CLASS A MEMBERS BY THE BYLAWS OR BY THE LOCAL GOVERNING BODY. WHILE MAINTAINING AUTHORITY TO ACT UNILATERALLY, THE CLASS A MEMBER MAY CONSULT WITH THE CORPORATION'S BOARD OF DIRECTORS BEFORE EXERCISING ITS RIGHTS. FORM 990, PART VI, LINE 11B PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 THE DETAILED REVIEW OF THE FORM 990 IS CONDUCTED BY THE CFO, CORPORATE CONTROLLER, AND HOSPITAL CONTROLLER, FOLLOWING THE PREPARATION AND REVIEW OF THE RETURN BY THE ORGANIZATION'S PAID PREPARER. AN ELECTRONIC COPY OF THE FINAL FORM 990 IS EMAILED TO EACH BOARD MEMBER PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, LINE 12C DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST THE COMPLIANCE OFFICER FOR BAPTIST HOSPITALS OF SOUTHEAST TEXAS MAINTAINS THE CONFLICT OF INTEREST STATEMENTS AND REGULARLY MONITORS THEM AS WELL AS ANY OTHER ACTIVITIES THAT MAY CONSTITUTE A CONFLICT OF INTEREST. THE ORGANIZATION'S PRACTICE IS TO SEND OUT ANNUAL DISCLOSURE QUESTIONNAIRES TO BOARD MEMBERS, SENIOR OFFICERS, AND DIRECTORS OF THE ORGANIZATION. THE RESPONSES ARE TAKEN TO THE AUDIT AND COMPLIANCE COMMITTEE OF BOARD MEMBERS TO DETERMINE IF A CONFLICT OF INTEREST EXISTS. IF THERE IS ANY POSSIBILITY OF FINANCIAL GAIN BY A MEMBER FROM ANY DECISION THAT IS TO BE DELIBERATED ON, THEN THAT MEMBER IS REMOVED FROM THOSE DISCUSSIONS TO ENSURE THAT THE MEMBER WILL NOT TAKE PART IN ANY DELIBERATIONS THAT HE OR SHE MIGHT PERSONALLY GAIN FROM. THE MEMBER OPERATING UNDER A CONFLICT IS PROHIBITED FROM VOTING ON ANY MATTER TO WHICH THE CONFLICT RELATES. FORM 990, PART VI, LINE 15B OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN THE ORGANIZATION'S EXECUTIVES ARE EMPLOYED BY THE PARENT ORGANIZATION, COMMUNITY HOSPITAL CORPORATION (CHC), AND THEREFORE FOLLOW THE COMPENSATION POLICY OF SOUTHWEST COMMUNITY HOSPITAL, ITS CLASS A MEMBER, WHICH IN TURN FOLLOWS THE COMPENSATION POLICY OF CHC. CHC ENGAGED SULLIVAN COTTER TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. SULLIVAN COTTER GATHERED DATA RELATED TO JOB DESCRIPTIONS, SCOPE OF RESPONSIBILITY, AND CURRENT INCUMBENTS' COMPENSATION. SULLIVAN COTTER RECOMMENDED APPROPRIATE COMPARISON DATA AND UTILIZED SURVEY DATA FROM FOUR MAJOR EXECUTIVE COMPENSATION SURVEY PROVIDERS TO PROVIDE MARKET DATA AND EXECUTIVE COMPENSATION RECOMMENDATIONS THAT MEET CHC'S COMPENSATION PHILOSOPHY. SULLIVAN COTTER'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. THIS PROCESS IS PERFORMED EACH YEAR PRIOR TO THE ANNUAL EMPLOYEE EVALUATION PROCESS, WHICH ENDS ON JULY 1ST OF EACH YEAR. FORM 990, PART VI, LINE 19 AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY & FIN STMTS TO GEN PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE AT ITS BUSINESS OFFICE UPON REQUEST. FORM 990, PART XI, LINE 9 CHANGE IN OWNERSHIP INTEREST - $822,952 CHANGE IN TEMPORARILY RESTRICTED NET ASSETS - $12,575 TOTAL - $835,527 FORM 990, PART XII, QUESTION 2C AUDITED FINANCIAL STATEMENTS THE AUDIT COMMITTEE OF COMMUNITY HOSPITAL CORPORATION, WHICH IS THE PARENT ORGANIZATION OF BAPTIST HOSPITALS OF SOUTHEAST TEXAS, IS RESPONSIBLE FOR OVERSEEING THE EXTERNAL AUDIT OF THE CONSOLIDATED FINANCIALS. 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