2017-08-14T13:34:31-05:00 2016-09-30 410746749 CLIFTONLARSONALLEN LLP 600 WASHINGTON AVENUE SUITE 1800 ST LOUIS MO 63101 990 2015-10-01 430662495 HANNIBAL REGIONAL HEALTHCARE SYSTEM INC HANN 5732481300 6500 HOSPITAL DRIVE PO BOX 551 HANNIBAL MO 63401 ROB GASAWAY CHIEF FINANCIAL OFFICER 5732481300 2017-08-14 1 JEFF PARKER P00970069 3149254300 2015 2021-01-29 14:40:06Z C TODD AHRENS 6500 HOSPITAL DRIVE PO BOX 551 HANNIBAL MO 63401 141293028 0 X HOSPITAL.HANNIBALREGIONAL.ORG X 1987 MO THE SYSTEM OPERATES A FULL SERVICE ACUTE CARE FACILITY. 13 12 1043 286 0 0 917708 480397 122089502 133507994 2014873 2895120 2171452 2232078 127193535 139115589 44699 38323 0 0 66695836 69329159 0 0 371781 54181374 60507117 120921909 129874599 6271626 9240990 142040624 143832455 48497274 40716317 93543350 103116138 X TO PROVIDE EXCEPTIONAL HEALTHCARE SERVICES FOR A BETTER LIFE. 1 0 114347172 38323 134643866 THE SYSTEM OPERATES A FULL SERVICE 86 BED ACUTE CARE HOSPITAL FACILITY, A 13 BED IP REHAB FACILITY, SEVERAL PHYSICIAN PRACTICES AND PRIMARY CARE CLINICS, AND A HOME HEALTH AGENCY IN HANNIBAL MISSOURI AND SURROUNDING COUNTIES. 17,294 TOTAL INPATIENT DAYS WERE PROVIDED DURING THE COURSE OF THE YEAR. THE SYSTEM PROVIDES SERVICES TO PATIENTS THAT MEET THE HOSPITAL'S CHARITY CARE POLICY AS WELL AS SERVICES TO OTHER MEDICALLY INDIGENT PATIENTS UNDER CERTAIN GOVERNMENT-REIMBURSED PUBLIC AID PROGRAMS. THE TOTAL COST OF UNCOMPENSATED CARE WAS: CHARITY CARE - $3,350,373 AND STATE MEDICAID AND OTHER PUBLIC AID PROGRAMS - $4,289,861. 114347172 1 1 0 1 0 1 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 140 0 1043 1 0 0 0 0 0 0 0 0 0 0 X 13 12 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X ROB GASAWAY 5732481300 6500 HOSPITAL DRIVE HANNIBAL MO 63401 ROBERT GILSTRAP DIRECTOR 1.00 X 0 0 0 JACK WHITAKER DIRECTOR 1.00 X 0 0 0 CAROLYN SHAW SECRETARY 1.00 X X 0 0 0 PAUL EWERT CHAIRPERSON 1.00 X X 0 0 0 DIRK SAUER DIRECTOR 1.00 X 0 0 0 STEVE MILLER ASST SECRETARY 1.00 X X 0 0 0 JASON POAGE TREASURER 1.00 X X 0 0 0 LINDA STRAUBE DIRECTOR 1.00 X 0 0 0 GENE SCHOLES JR DIRECTOR 1.00 X 0 0 0 PAT BENSON VICE CHAIRPERSON 1.00 X X 0 0 0 DEBORAH THORNBURG DIRECTOR 1.00 X 0 0 0 LACEY YOUNG DIRECTOR 1.00 X 0 0 0 RICHARD VALUCK DIRECTOR & CARDIOLOGIST 40.00 X 599239 0 37344 C TODD AHRENS PRESIDENT & CEO 40.00 1.00 X 526052 0 139432 ROGER DIX VICE PRESIDENT - FINANCIAL SERVICES 40.00 X 391376 0 89502 TIMOTHY REUSCHEL VICE PRESIDENT - GENERAL COUNSEL 40.00 X 303640 0 51281 JULIE LEVERENZ VICE PRESIDENT - STATEGY & PLANNING 40.00 X 226063 0 80622 SUSAN WATHEN VICE PRESIDENT - HUMAN RESOURCES 40.00 X 178033 0 39291 SARAH BRADSHAW VICE PRESIDENT - NURSING 40.00 X 157506 0 35778 G DOUG RUBLE VICE PRESIDENT - FACILITIES 40.00 X 177312 0 51680 PRANAV PARIKH MD V.P. - QUALITY & MEDICAL AFFAIRS 20.00 X 246429 0 11089 LYNN OLSON CEO - HOSPITAL 40.00 1.00 X 386395 0 46898 WENDY HARRINGTON PRESIDENT & CEO - HRH FOUNDATION 1.00 40.00 X 170120 0 53506 TIMOTHY POLLEY EXECUTIVE DIRECTOR 40.00 X 312753 0 46133 LUVELL GLANTON ANESTHESIOLOGIST - PAIN MANANGEMENT 40.00 X 855360 0 32099 HARSHA DESAI PATHOLOGIST 40.00 X 610140 0 48398 PERVEZ ALVI CARDIOLOGIST 40.00 X 544877 0 32457 THELMA PEERY EMERGENCY ROOM PHYSICIAN 40.00 X 515254 0 30394 STEPHEN SHERWOOD EMERGENCY ROOM PHYSICIAN 40.00 X 418433 0 34199 6618982 0 860103 72 0 1 0 MURRAY COMPANY INC 1215 FERN RIDGE PARKWAY SUITE 213 SAINT LOUIS MO 63141 BUILDING CONTRACTOR 2018829 ALLSCRIPTS LLC PO BOX 8538-0133 PHILADELPHIA PA 19171 IT SYSTEMS 1752846 BANC OF AMERICA LEASING PO BOX 100918 ATLANTA GA 30384 LEASING COMPANY 1264739 HOUSE AFH LLC 148 STONE RIDGE DRIVE HANNIBAL MO 63401 LOCUM PHYSICIAN 787263 JOHNSON CONTROLS INC PO BOX 730068 DALLAS TX 75373 MAINTENANCE CONTRACTOR 735358 45 480397 480397 NET PATIENT SERVICE REVENUE 621110 132238438 132238438 EHR MEANINGFUL USE 621110 1269556 1269556 133507994 1401742 1401742 332682 25355 307327 307327 307327 3192690 452772 1967639 184445 1225051 268327 1493378 1493378 CHILDREN'S DEVELOPMENT CENTER 624410 706075 706075 CAFETERIA 722210 613526 613526 CONTRACTED SERVICES 621110 259044 259044 346106 170753 175353 1924751 139115589 134643866 0 3991326 X 38323 38323 4158197 730036 3314521 113640 49286144 42519072 6557312 209760 2159972 1885212 268181 6579 10384398 9067376 1285394 31628 3340448 2916789 413485 10174 67578 67578 97500 97500 14064 12275 1789 14775555 14694696 80859 725771 725771 18285605 15959582 2326023 950040 829190 120850 1557968 1359786 198182 650191 567483 82708 107145 93516 13629 501774 437946 63828 8758320 8758320 609538 532002 77536 BAD DEBT EXPENSE 7808573 7808573 PHARMACY DRUGS 3390390 3390390 RECRUITING EXPENSE 854066 745424 108642 FOOD 679503 679503 673536 595907 77629 129874599 114347172 15155646 371781 15979575 18239051 1512892 1520546 14681850 15051045 22500 1212160 1313654 2699743 2523994 773239 832787 146520323 101571061 48058543 44949262 50005661 52059632 404174 333782 349383 336908 6340904 6671794 142040624 143832455 25200855 20211323 47523 78921 12466969 9015000 5766918 5087420 5015009 6323653 48497274 40716317 X 89143883 98575052 4399467 4541086 93543350 103116138 142040624 143832455 X 9240990 2087376 -1755578 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 14064 14064 0 PART II-B, LINE 1: PORTION OF MISSOURI HOSPITAL ASSOCIATION DUES RELATED TO LOBBYING 1 941 4254 21711 0 0 2479295 2479295 64943200 39319840 25623360 7119227 5940375 1178852 70385850 56310846 14075004 1592751 1592751 44949262 MINIMUM PENSION LIABILITY 4171234 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN 2152419 6323653 X PART X, LINE 2: THE SYSTEM APPLIES THE INCOME TAX STANDARD FOR UNCERTAIN TAX POSITIONS. THIS STANDARD CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS IN ACCORDANCE WITH THE INCOME TAX STANDARD. THIS STANDARD PRESCRIBES RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN THAT ARE NOT CERTAIN TO BE REALIZED. 1 1 X 1 X 0 1 1 1 0 1 1 2851767 1453474 1398293 0.01080 10445260 11720364 -1275104 0.00000 13297027 13173838 123189 0.01080 15346263 5930252 9416011 0.07250 286262 286262 0.00220 301684 301684 0.00230 15934209 5930252 10003957 0.07700 29231236 19104090 10127146 0.08780 1712135 730698 981437 0.00760 1100 1100 0.00000 639906 639906 0.00490 2353141 730698 1622443 0.01250 1 7808573 5856430 35471624 41044073 -5572449 X 1 1 1 HANNIBAL MEDICAL SUPPLY DME COMPANY 0.33330 0.33330 2 HANNIBAL MOBILE DIAGNOSTICS MOBILE IMAGING/RADIOLOGY SERVICES 0.50000 0.50000 3 ADVANCE HANNIBAL REGIONAL HOSPITAL LLC OUTPATIENT PHYSICAL THERAPY 0.50000 0.50000 5 HANNIBAL REGIONAL PHYSICIAN HOSPITAL ORGANIZATION INC INSURANCE REPRICING 0.50000 0.50000 1 1 HANNIBAL REGIONAL HOSPITAL 6000 HOSPITAL DRIVE HANNIBAL MO 63401 HRHONLINE.ORG 101-57 X X X HANNIBAL REGIONAL HEALTHCARE SYSTEM INC 1 0 0 1 X X X X X X X X X 15 1 0 1 1 X HTTPS://HANNIBALHEALTH.ORG/COMMUNITYHEALTH/CHNA X 1 13 1 HTTPS://HANNIBALHEALTH.ORG/COMMUNITYHEALTH/CHNA/2016-2019REGIONALHEALTHSTRA 0 0 1 X 200.000000000000 200.000000000000 X X X X X 1 1 X X X X 1 X HTTPS://HANNIBALHEALTH.ORG/PATIENTSVISITORS/PATIENTSERVICES/FINANCIALASSIST X HTTPS://HANNIBALHEALTH.ORG/PATIENTSVISITORS/PATIENTSERVICES/FINANCIALASSIST X HTTPS://HANNIBALHEALTH.ORG/PATIENTSVISITORS/PATIENTSERVICES/FINANCIALASSIST X X X 1 X 0 X X X X X 1 X 0 0 HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 5: A BROAD-BASED STEERING COMMITTEE OF HEALTHCARE LEADERS FROM THROUGHOUT THE SIX COUNTY REGION WAS FORMED TO GUIDE THE ASSESSMENT PROCESS AND ESTABLISH THE THREE-YEAR STRATEGY TO ADDRESS THE PRIORITIES IDENTIFIED. HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 6B: MARION COUNTY HEALTH DEPARTMENT HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 11: BROAD-BASED OVERSIGHT GROUP IS MEETING ON A QUARTERLY BASIS TO ASSESS PROGRESS AND INFLUENCE THE WORK ESTABLISHED IN THE PLAN; A VARIETY OF BEHAVIORAL HEALTH SERVICES HAVE EMERGED IN TEH REGION DUE TO THE VISIBILITY OF THIS PROBLEM; MENTAL HEALTH FIRST AID CLASSES ARE RAISING HEALTH LITERACY; SERVICES HAVE BEEN EXPANDED AT THE LOCAL FREE CLINIC TO ADDRESS BY ACCESS TO CARE, MENTAL HEALTH AND DENTAL HEALTH; A POPULATION HEALTH GRANT IS RESULTING IN REDUCING THE INCIDENCE OF EMERGENCY DEPARTMENT VISITS FOR PATIENTS WITH CHRONIC DISEASE WHO WERE FORMERLY HIGH UTILIZERS; A NEW FQHC HAS ADDED MENTAL HEALTH AND DENTAL HEALTH CAPACITY IN THE REGION; A COMMUNITY HEALTH INITIATIVE KNOWN AS "LIVING BETTER" IS BEGINNING TO EMERGE AND IS INTENDED TO ENHANCE THE SOCIAL VALUING OF HEALTH; COME COMMITTED COALITIONS FOCUSING ON THE PRIORITY PROBLEMS IDENTIFIED IN THE CHNA ARE NOW IN PLACE. HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 13B: THE PATIENTS ABILITY TO PAY OUTSIDE OF NORMAL LIVING EXPENSES AND DEBT. HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 20E: COMMUNICATIONS THROUGH MAIL AND PHONE INTERVIEWS ARE PURSUED TO RESOLVE ISSUES AND OBTAIN NEEDED INFORMATION TO QUALIFY PATIENTS. HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. PART V, SECTION B, LINE 22D: THE ABILITY TO PAY IS BASED ON THE PATIENTS AVAILABLE ASSETS OR EXPECTED INCOME AVAILABLE TO MEET THE AMOUNTS OUTSTANDING. PART I, LINE 3C: THE CRITERIA UTILIZED TO DETERMINE ELIGIBILITY FOR CHARITY CARE IS BASED ON THE ABILITY TO PAY. A PERSON IS ELIGIBLE FOR CHARITY CARE IF THEY MEET ANY OF THE FOLLOWING CRITERIA: THEIR INSURANCE IS INADEQUATE, THEY ARE UNINSURED, PATIENTS WITH A FAMILY INCOME AT OR BELOW 200% OF THE FEDERAL POVERTY GUIDELINE, PATIENTS WITH A SPENDABLE INCOME THAT IS LESS THAN 5% OF THE BALANCE OWED TO THE HOSPITAL, THE PATIENT HAS LESS THAN $2,000 IN TOTAL ASSETS AVAILABLE TO PAY HOSPITAL EXPENSES (EXCEPTIONS INCLUDE HOME EQUITY, AUTO EQUITY, LIFE INSURANCE EQUITY). PART I, LINE 6A: THE MISSOURI HOSPITAL ASSOCIATION HAS INCLUDED HANNIBAL REGIONAL HEALTHCARE SYSTEM, INC. IN THEIR ANNUAL COMMUNITY BENEFIT REPORT. PART I, LINE 7: COST ACCOUNTING PART I, LN 7 COL(F): A GROSS ESTIMATE WAS MADE BASED ON CURRENT EXPERIENCE. PART II, COMMUNITY BUILDING ACTIVITIES: THE ORGANIZATION'S COMMUNITY BUILDING ACTIVITIES THAT PROMOTE THE HEALTH OF THE HOSPITAL'S COMMUNITY INCLUDES ITS CHILDREN'S CENTER FOR EDUCATION, DISASTER RECOVERY PLANNING, INTERPRETIVE SERVICES FOR NON-ENGLISH SPEAKING PATIENTS, AND RECRUITMENT COSTS FOR PHYSICIANS. PART III, LINE 2: HISTORICAL EXPERIENCE WAS USED TO ESTIMATE BAD DEBTS BY PAYOR CLASSIFICATION AND AGING CO-HORT. PART III, LINE 3: THE ESTIMATE WAS BASED ON AVAILABLE DATA. PART III, LINE 4: THE SYSTEM REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYORS, PATIENTS AND OTHERS. THE SYSTEM PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION AND EXISTING ECONOMIC CONDITIONS. AS A SERVICE TO THE PATIENT, THE SYSTEM BILLS THIRD-PARTY PAYORS DIRECTLY AND BILLS THE PATIENT WHEN THE PATIENT'S LIABILITY IS DETERMINED. PATIENT ACCOUNTS RECEIVABLE ARE DUE IN FULL WHEN BILLED. ACCOUNTS ARE CONSIDERED DELINQUENT AND SUBSEQUENTLY WRITTEN OFF AS BAD DEBTS BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE ACCOUNT. AT SEPTEMBER 30, 2016 AND 2015, THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS WAS APPROXIMATELY $5,310,000 AND $4,501,000, RESPECTIVELY. PART III, LINE 8: SOME MEDICARE SERVICES ARE PAID AT SUBSTANTIALLY LESS THAN COST THROUGH THE PROGRAM. THESE SERVICES COULD BE ELIMINATED TO INCREASE MARGIN BUT ARE PROVIDED IN THIS COMMUNITY DESPITE THE LOSS. PART III, LINE 9B: WHEN CHARITY CONSIDERATION IS REQUESTED ALL COLLECTION EFFORTS ARE HALTED UNTIL A DETERMINATION ON ELIGIBILITY IS MADE. COLLECTION EFFORTS ARE RESUMED ONLY IF THE INDIVIDUAL DOES NOT MEET ONE OF THE CHARITY CRITERIA. PART VI, LINE 2: THE ORGANIZATION RECEIVES ANNUAL UPDATES ON THE HEALTH STATUS OF ITS POPULATION FROM THE STATE THAT INCLUDE MORTALITY AND DISEASE STATUS. THE ORGANIZATION ALSO MONITORS NATIONAL DATA ON TRENDS AND DISEASE STATUS. PART VI, LINE 3: PERSONAL CONTACT AND WEBSITE ACCESS ARE THE MAIN POINTS OF CONTACT. PART VI, LINE 4: THE ORGANIZATION SERVES THE POPULACE OF AN 8 COUNTY REGION IN NORTHEAST MISSOURI. THE AREA IS PRIMARILY A RURAL FARMING AREA WITH NUMEROUS POCKETS OF MEDICALLY UNDERSERVED AREAS. RESIDENTS ARE SERVED BY DISTANT ORGANIZATIONS IN COLUMBIA, MO AND ST. LOUIS, MO. CARE CAN ALSO BE ACCESSED IN QUINCY, IL. PART VI, LINE 5: SEE STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS ON FORM 990, PART III, LINE 4A. 1 AMERICAN CANCER SOCIETY 3145 HIGHWAY 61 HANNIBAL MO 63401 131788491 501(C)(3) 7885 2015 PARTNERSHIP COMMITMENT AND THE 2015 JECCC ON T-SHIRT AND SPONSORSHIP. MHA CENTER FOR EDUCATION PO BOX 60 JEFFERSON CITY MO 65102 430898947 501(C)(3) 30438 MCE HEALTH IMPR., RESEARCH AND SCHOLARSHIP FUND, MHA SPECIAL PROJECTS, MISSOURI CENTER FOR PATIENT SAFETY CONTRIBUTION AND DELIVERABLES, MISSOURI POISON CENTER CONTRIBUTION. 2 PART I, LINE 2: POLICY GA 1-112 CORPORATE CITIZENSHIP GUIDES THE ORGANIZATION IN CONTRIBUTING TO OTHER ORGANIZATIONS. ALL ACTIVITIES WHICH CONSTITUTE A CHARITABLE CONTRIBUTION ARE DOCUMENTED ON THE CHARITABLE CONTRIBUTION FORM. X X X X 0 1 0 0 0 0 0 1 0 RICHARD VALUCK DIRECTOR & CARDIOLOGIST 599039 0 0 0 200 0 0 0 37344 0 636583 0 0 0 C TODD AHRENS PRESIDENT & CEO 420221 0 94160 0 11671 0 90736 0 48696 0 665484 0 0 0 ROGER DIX VICE PRESIDENT - FINANCIAL SERVICES 266536 0 59155 0 65685 0 55660 0 33842 0 480878 0 0 0 TIMOTHY REUSCHEL VICE PRESIDENT - GENERAL COUNSEL 243299 0 53362 0 6979 0 25590 0 25691 0 354921 0 0 0 JULIE LEVERENZ VICE PRESIDENT - STATEGY & PLANNING 197078 0 21620 0 7365 0 39310 0 41312 0 306685 0 0 0 SUSAN WATHEN VICE PRESIDENT - HUMAN RESOURCES 154071 0 17183 0 6779 0 16636 0 22655 0 217324 0 0 0 SARAH BRADSHAW VICE PRESIDENT - NURSING 151373 0 0 0 6133 0 0 0 35778 0 193284 0 0 0 G DOUG RUBLE VICE PRESIDENT - FACILITIES 138776 0 15661 0 22875 0 14736 0 36944 0 228992 0 0 0 PRANAV PARIKH MD V.P. - QUALITY & MEDICAL AFFAIRS 222179 0 24250 0 0 0 0 0 11089 0 257518 0 0 0 LYNN OLSON CEO - HOSPITAL 313155 0 59215 0 14025 0 0 0 46898 0 433293 0 0 0 WENDY HARRINGTON PRESIDENT & CEO - HRH FOUNDATION 145931 0 17589 0 6600 0 15750 0 37756 0 223626 0 0 0 TIMOTHY POLLEY EXECUTIVE DIRECTOR 234651 0 45452 0 32650 0 24021 0 22112 0 358886 0 0 0 LUVELL GLANTON ANESTHESIOLOGIST - PAIN MANANGEMENT 716610 0 138750 0 0 0 0 0 32099 0 887459 0 0 0 HARSHA DESAI PATHOLOGIST 544117 0 65986 0 37 0 0 0 48398 0 658538 0 0 0 PERVEZ ALVI CARDIOLOGIST 544877 0 0 0 0 0 0 0 32457 0 577334 0 0 0 THELMA PEERY EMERGENCY ROOM PHYSICIAN 510986 0 0 0 4268 0 0 0 30394 0 545648 0 0 0 STEPHEN SHERWOOD EMERGENCY ROOM PHYSICIAN 415933 0 0 0 2500 0 0 0 34199 0 452632 0 0 0 PART I, LINE 4B ROGER DIX, SERP, $55,660 SARAH BRADSHAW, SERP, $20 G. DOUG RUBLE, SERP, $14,736 TIMOTHY POLLEY, SERP $24,021 PART I, LINE 7 THE ORGANIZATION PROVIDES INCENTIVE COMPENSATION BASED ON ANNUAL GOALS SET BY THE BOARD OF DIRECTORS FOR QUALITY, SAFETY, GROWTH, AND FINANCIAL METRICS. A THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF HANNIBAL MISSOURI 531320446 2015-12-11 10560000 HOSPITAL REFUNDING REVENUE BONDS 0 0 0 A 1545000 10560000 49428 10510572 1 0 0 0 A 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 SCHEDULE K, PART I THE 2006 SERIES BONDS HAVE BEEN REMOVED FROM SCHEDULE K BECAUSE OF A REFUNDING BY THE ISSUANCE OF 2015 SERIES BONDS THAT CAUSED THE OUSTANDING LIABILITY TO BE LESS THAN $100K REPORTING THRESHOLD AT THE END OF THE YEAR. SCHEDULE K, PAGE 1, PART II, LINE 17 THE ORGANIZATION MAINTAINS BOOKS AND RECORDS TO SUPPORT A FINAL ALLOCATION ONCE IT IS MADE. FORM 990, PART III, LINE 2 THE SYSTEM ADDED AN INPATIENT REHABILITATION FACILITY DURING THE CURRENT YEAR. FORM 990, PART VI, SECTION B, LINE 11 THE PREPARED FORM 990 WILL BE FORWARDED TO EACH MEMBER OF THE BOARD OF DIRECTORS, AS WELL AS THE OFFICERS OF THE CORPORATION APPROXIMATELY ONE WEEK PRIOR TO A REGULAR BOARD MEETING AT WHICH THE PREPARED FORM 990 WILL BE ON THE AGENDA. THE CHIEF FINANCIAL OFFICER OR CHIEF EXECUTIVE OFFICER WILL PRESENT THE PREPARED FORM 990 TO THE BOARD OF DIRECTORS AND ENTERTAIN QUESTIONS FROM DIRECTORS AND OFFICERS. THE GENERAL COUNSEL FOR THE CORPORATION WILL ALSO BE PRESENT TO ASSIST WITH QUESTIONS FOR THE DIRECTORS AND OFFICERS. THIS PROCEDURE WILL BE COMPLETED PRIOR TO THE FILING OF THE PREPARED FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A POLICY TITLED BUSINESS ETHICS AND CONFLICT OF INTEREST WHICH REQUIRES THAT ALL DIRECTORS, OFFICERS, AND EMPLOYEES OF THE SYSTEM ALWAYS ACT IN THE BEST INTEREST OF THE SYSTEM WITHOUT CONFLICTS OF INTEREST. ANNUALLY EACH MEMBER OF THE BOARD OF DIRECTORS, EACH OFFICER OF THE ORGANIZATION, AND CERTAIN OTHER MANAGERS RECEIVE A COPY OF THE POLICY AND ARE REQUIRED TO COMPLETE A CONFIDENTIALITY AGREEMENT AND A CONFLICT OF INTEREST QUESTIONNAIRE WHEREBY THE INDIVIDUAL ANSWERS QUESTIONS REGARDING FAMILY MEMBERS, SUBSTANTIAL BUSINESS OR INVESTMENT HOLDINGS, AND OTHER TRANSACTIONS OR AFFILIATIONS WITH BUSINESSES OR OTHER ORGANIZATIONS THAT MIGHT AFFECT THEIR RELATIONSHIP WITH THE SYSTEM. AS PART OF THE CONFLICTS OF INTEREST QUESTIONNAIRE THE INDIVIDUAL IS ASKED TO ACKNOWLEDGE THAT THEY HAVE RECEIVED AND READ A COPY OF THE POLICY, AGREE TO COMPLY WITH THE POLICY, ACKNOWLEDGE THAT THE SYSTEM IS A CHARITABLE ORGANIZATION, WHICH MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH OUR TAX EXEMPT PURPOSES IN ORDER TO MAINTAIN OUR TAX EXEMPT STATUS, AGREE TO REPORT PROMPTLY TO THE BOARD OF DIRECTORS ANY CHANGES IN THEIR ANSWERS TO THE QUESTIONS OR ANY CHANGE IN CIRCUMSTANCE THAT MIGHT DEVELOP PRIOR TO THE COMPLETION OF THEIR NEXT ANNUAL QUESTIONNAIRE. WITH RESPECT TO DIRECTORS OF THE ORGANIZATION, THEY ALSO ACKNOWLEDGE THAT NONE OF THE CONDITIONS OF THE POLICY WHICH WOULD MAKE THEM INELIGIBLE TO REMAIN ON THE BOARD EXIST AT THE TIME THEY SIGN THE ACKNOWLEDGMENT AND THAT THEY WOULD REPORT ANY CONDITIONS WHICH BECOME APPLICABLE IMMEDIATELY TO THE CHAIRPERSON OF THE BOARD OF DIRECTORS. ON AN ANNUAL BASIS THESE DOCUMENTS ARE SENT BY THE SECRETARY OF THE SYSTEM TO EACH INTERESTED PERSON AND TO THOSE EMPLOYEES OF THE SYSTEM THAT THE BOARD DETERMINES. THE DOCUMENT IS COMPLETED BY THE INDIVIDUAL AND RETURNED TO THE SECRETARY OF THE BOARD THROUGH GENERAL COUNSEL, WHO ANNUALLY ANALYZES ANY DISCLOSED CONFLICT OF INTEREST OR ANY OTHER FACT THAT MIGHT MAKE THE INDIVIDUAL NOT INDEPENDENT FOR IRS TAX EXEMPT PURPOSES. THE SECRETARY THEN SUBMITS TO THE BOARD OF DIRECTORS A CONFIDENTIAL REPORT CONCERNING ANY INTEREST OF EMPLOYEES OF THE SYSTEM DISCLOSED BY SUCH QUESTIONNAIRE, ANY INTEREST OF DIRECTORS AND OFFICERS WHO ARE NOT EMPLOYEES OF THE SYSTEM, AND WHAT ACTIONS THE PRESIDENT OF THE ORGANIZATION MAY TAKE AS A RESULT OF ANY CONFLICTS DISCLOSED BY SUCH INDIVIDUALS. AN INDIVIDUAL IS INELIGIBLE TO SERVE ON THE BOARD OF DIRECTORS FOR ANY OF THE FOLLOWING REASONS AS TAKEN FROM HANNIBAL REGIONAL SYSTEM BOARD OF DIRECTORS POLICY B-VII: A. FAILURE TO ADHERE COMPLETELY TO DISCLOSURE REQUIREMENTS; B. THE INDIVIDUAL IS AN OWNER, PARTNER, EMPLOYEE, BOARD MEMBER OR INVESTOR IN A DIRECT COMPETITOR OF THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM. AN OWNERSHIP OR INVESTMENT INTEREST IN A DIRECT COMPETITOR OF THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM, OF FIVE (5) PERCENT OR LESS WILL NOT MAKE INDIVIDUAL INELIGIBLE TO SERVE ON THE BOARD OF DIRECTORS; C. THE INDIVIDUAL IS AN EMPLOYEE OF THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM, OR A FAMILY MEMBER IS A MEMBER OF THE MANAGEMENT TEAM OF THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM; D. THE INDIVIDUAL RECEIVES DIRECT COMPENSATORY BENEFIT FOR ONGOING SERVICES PROVIDED TO THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM (SERVING AS A "DE FACTO EMPLOYEE"); E. THE INDIVIDUAL IS AN OWNER, PARTNER, EMPLOYEE, BOARD MEMBER OR INVESTOR OR OTHER VENDOR WHO RECEIVES A SUBSTANTIAL AMOUNT OF REVENUE FROM THE SYSTEM, OR ANY ENTITY AFFILIATED WITH THE SYSTEM - THE GREATER OF $200,000.00 OR 2% OF THE ANNUAL REVENUES OF THAT VENDOR IN THE PRECEDING OR CURRENT YEAR. F. THE INDIVIDUAL IS AN OWNER, PARTNER, EMPLOYEE, BOARD MEMBER OR INVESTOR OF AN ENTITY WHO HAS CONTRACTED WITH SYSTEM FOR THE EXCLUSIVE PROVISION OF ANY MEDICAL SERVICES WITHIN THE SYSTEM, OR ITS AFFILIATES. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS HAS DELEGATED TO THE COMPENSATION COMMITTEE, PURSUANT TO A CHARTER ADOPTED BY THE BOARD OF DIRECTORS, THE RESPONSIBILITY TO ACT ON BEHALF OF THE BOARD OF DIRECTORS IN ADMINISTERING COMPENSATION PLANS AND IN MAKING DECISIONS ON THE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER AND THOSE EXECUTIVES WHO REPORT DIRECTLY TO THE CHIEF EXECUTIVE OFFICER WHO QUALIFY AS "DISQUALIFIED PERSONS" WITHIN THE MEANING OF SECTION 4958 OF THE INTERNAL REVENUE CODE. THE COMMITTEE ENGAGES AN INDEPENDENT CONSULTANT TO ASSIST THE COMMITTEE WITH ITS GOVERNANCE AND OVERSIGHT ROLE AND ITS COMPLIANCE WITH SECTION 4958 OF THE INTERNAL REVENUE CODE, BY PROVIDING AN OPINION ON THE REASONABLENESS OF THE ORGANIZATION'S COMPENSATION PLAN. THE CONSULTANT USES PUBLISHED SURVEY DATA TO PROVIDE COMPARATIVE MARKET DATA FOR EACH POSITION. THE COMMITTEE THEN REPORTS ITS ACTIONS TO THE BOARD OF DIRECTORS. THE COMMITTEE IS COMPOSED SOLELY OF INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS. THE SCOPE OF THE COMMITTEE INCLUDES, BUT IS NOT LIMITED TO, REVIEWING AND APPROVING THE ANNUAL BASE SALARY LEVELS, ANNUAL INCENTIVE OPPORTUNITY LEVELS, EXECUTIVE PERQUISITES, EMPLOYMENT AGREEMENTS, BENEFITS AND SUPPLEMENTAL BENEFITS. FORM 990, PART VI, SECTION C, LINE 19 THE ARTICLES OF INCORPORATION AND AMENDMENTS THERETO ARE AVAILABLE ON THE MISSOURI SECRETARY OF STATE'S WEBSITE. FORM 990, PART IX, LINE 11G CONSULTING FEES: PROGRAM SERVICE EXPENSES 554,802. MANAGEMENT AND GENERAL EXPENSES 80,859. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 635,661. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 4,992,015. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,992,015. PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 8,888,321. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 8,888,321. LAUNDRY SERVICE: PROGRAM SERVICE EXPENSES 259,558. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 259,558. FORM 990, PART XI, LINE 9: CHANGE IN MINIMUM PENSION LIABILITY -1,897,197. PEARL LOWRIE FUND NET ACTIVITY -3,315. NET CONTRIBUTION REVENUE FROM FOUNDATION 144,934. FORM 990, PART XII, LINE 2C THE ORGANIZATION'S POLICY REGARDING OVERSIGHT OF AUDIT IS CONSISTENT WITH THE PRIOR YEAR. 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