2016-11-14T08:56:56-06:00 2015-12-31 BKD LLP 1201 Walnut Suite 1700 Kansas City MO 641062246 990 2015-01-01 481088982 OLATHE MEDICAL SERVICES INC % TIERNEY L GRASSER OLAT 9137914461 20333 W 151ST STREET OLATHE KS 66061 TIERNEY L GRASSER SENIOR VP/CFO 9137914461 2016-11-15 true Michael J Engle P00482834 8162216300 2015 2017-02-10 21:41:12Z TIERNEY L GRASSER 20333 W 151ST STREET OLATHE KS 66061 62667286 false X WWW.OLATHEHEALTH.ORG X 1990 KS TO IMPROVE HEALTH OF ALL INDIVIDUALS IN THE COMMUNITIES WE SERVE BY PROVIDING COMPASSIONATE, QUALITY HEALTHCARE IN AN ENVIRONMENT OF TRUST AND COLLABORATION. 9 9 697 10 915 -1844 0 0 63974981 62361790 -89946 -88736 366900 301540 64251935 62574594 0 0 0 0 67401879 70743256 0 0 0 22130931 20807016 89532810 91550272 -25280875 -28975678 50617698 46380003 18240216 16930198 32377482 29449805 X THE MISSION OF OLATHE MEDICAL SERVICES IS TO IMPROVE THE HEALTH OF ALL SERVED, BY PROVIDING COMPASSIONATE, QUALITY HEALTHCARE IN AN ENVIRONMENT OF TRUST AND COLLABORATION. false false 73611157 0 62428881 SEE SCHEDULE O 73611157 true false false false false false false false false false true false false true true false false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 39 0 true 697 true false false false false false false false false false false X 9 9 true false false false true true true true true false true true true true true true true true true true false KS X TIERNEY L GRASSER 9137914461 20333 W 151ST STREET OLATHE KS 66061 DAVID R GABOURY TRUSTEE/CHAIRPERSON 2.0 2.0 X X 0 0 0 KRISTEN GISH HERRON MD TRUSTEE 1.0 0.0 X 0 0 0 JAMES R HUBBARD TRUSTEE 1.0 1.0 X 0 0 0 DOUGLAS M HUSTON TRUSTEE 1.0 0.0 X 0 0 0 KENNETH A STELZER TRUSTEE/SECRETARY/TREASURER 1.0 1.0 X X 0 0 0 CLARK D STEWART TRUSTEE 1.0 0.0 X 0 0 0 RICHARD K SUMMERS TRUSTEE/VICE-CHAIRPERSON 1.0 0.0 X X 0 0 0 ELAINE TATHAM TRUSTEE 1.0 1.0 X 0 0 0 CHIP WOOD TRUSTEE 1.0 6.0 X 0 0 0 FRANK H DEVOCELLE PRESIDENT/CEO 7.0 43.0 X 0 1018513 21602 TIERNEY L GRASSER SVP/CHIEF FINANCIAL OFFICER 9.0 41.0 X 0 497511 91961 CHERYL L ROSS ASSISTANT SECRETARY 2.0 43.0 X 0 132177 14631 PATRICIA KATZER VICE PRESIDENT/COO 50.0 0.0 X 231467 0 15629 JAMES L WETZEL MD SVP/CHIEF MEDICAL OFFICER 1.0 51.0 X 0 500023 25314 PHANI A ATTALURI PHYSICIAN 50.0 0.0 X 1159894 0 20308 DAVID LEE PHYSICIAN 50.0 0.0 X 955815 0 82380 JAMES MILLER PHYSICIAN 50.0 0.0 X 937418 0 0 LARRY CORUM PHYSICIAN 50.0 0.0 X 889101 0 77769 RAVI YARLAGADDA PHYSICIAN 50.0 0.0 X 889296 0 0 5062991 2148224 349594 115 false true false THERAPEUTIC RADIOLOGISTS INC PO BOX 219222 KANSAS CITY MO 64121 MEDICAL SERVICES 524799 PHYSICIANS REFERENCE LAB PO BOX 875865 KANSAS CITY MO 64187 LABORATORY SERVICES 324651 LABCORP OF AMERICA PO BOX 8025 BURLINGTON NC 27216 LABORATORY SERVICES 298121 HARMON CONSTRUCTION 18989 W 158TH ST OLATHE KS 66062 CONSTRUCTION 221881 GE HEALTHCARE IITS USA 15724 COLLECTIONS CTR DR CHICAGO IL 60693 SOFTWARE SUPPORT 259815 10 0 Net Patient Service Revenue 621110 62164875 62164875 Electronic Medical Records Revenue 900099 196000 196000 EKG OVERREADS 900099 915 915 62361790 3956 3956 0 0 0 0 0 92692 -92692 -92692 -92692 0 0 0 RESEARCH STUDY 900099 67091 67091 ALL OTHER MISC REVENUE 900099 234449 234449 301540 62574594 62427966 915 145713 0 0 0 0 247883 191654 56229 0 60944794 47120290 13824504 1356595 1177123 179472 5229839 4937853 291986 2964145 2771443 192702 0 174945 312 174633 31747 122 31625 0 0 0 3241654 2025327 1216327 324797 324797 1214116 226738 987378 2070824 1760200 310624 0 2760136 2530081 230055 71325 3228 68097 0 198236 174462 23774 81416 81416 0 2746215 2574027 172188 780819 731862 48957 BAD DEBT EXPENSE 1410848 1410848 Medical Supplies 4955582 4955582 Dues & Licenses 204965 172260 32705 Repairs & Maintenance 427949 401117 26832 111442 40415 71027 91550272 73611157 17939115 0 2457405 1316855 0 0 0 0 6166602 5655375 0 0 0 0 0 0 1339128 907967 303106 385977 50128567 19010926 33313783 31117641 0 0 0 0 49000 0 0 0 6988674 6996188 50617698 46380003 16188653 16390482 0 0 0 0 0 0 0 0 0 0 46989 30486 0 0 2004574 509230 18240216 16930198 X 32377482 29449805 0 0 0 0 32377482 29449805 50617698 46380003 X -28975678 26048001 X false true X true false X 0 0 0 0 0 0 52873808 54307358 54999458 63970375 62361790 288512789 0 0 0 0 0 0 52873808 54307358 54999458 63970375 62361790 288512789 15279 15279 0 0 0 0 0 0 0 0 0 0 15279 15279 288497510 7948 4005 2303 3290 3956 21502 0 7948 4005 2303 3290 3956 21502 0 0 0 0 0 0 177338 281030 275420 366900 301540 1402228 53059094 54592393 55277181 64340565 62667286 289936519 0.99504 0.99508 0.00007 0.00019 X 5703834 5703834 28132923 8399964 19732959 6627111 3031455 3595656 9124326 7361066 1763260 540373 218441 321932 31117641 Deferred Benefits 6996188 6996188 0 Due to Affiliates 509230 509230 322255824 261092080 261092080 61163744 1410850 1410850 62574594 306749392 216609970 216609970 90139422 1410850 1410850 91550272 SCHEDULE D, PART X, LINE 2 MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. SCHEDULE D, PART XI, LINE 2D RELATED ORGANIZATIONS' REVENUE $ 261,092,080 SCHEDULE D, PART XI, LINE 4B BAD DEBT EXPENSE $ 1,410,850 SCHEDULE D, PART XII, LINE 2D RELATED ORGANIZATION EXPENSES $ 216,609,970 SCHEDULE D, PART XII, LINE 4B BAD DEBT EXPENSE $ 1,410,850 false true false false false false false false false FRANK H DEVOCELLE PRESIDENT/CEO 0 689583 0 192540 0 136390 0 2500 0 19102 0 1040115 0 0 TIERNEY L GRASSER SVP/CHIEF FINANCIAL OFFICER 0 391368 0 65285 0 40859 0 68144 0 23817 0 589472 0 26643 PATRICIA KATZER VICE PRESIDENT/COO 206652 0 21582 0 3233 0 2500 0 13129 0 247096 0 0 0 JAMES L WETZEL MD SVP/CHIEF MEDICAL OFFICER 0 394514 0 44127 0 61382 0 2500 0 22814 0 525337 0 0 PHANI A ATTALURI PHYSICIAN 1159137 0 0 0 756 0 0 0 20308 0 1180202 0 0 0 DAVID LEE PHYSICIAN 952203 0 0 0 3612 0 62128 0 20252 0 1038195 0 0 0 JAMES MILLER PHYSICIAN 931875 0 0 0 5544 0 0 0 0 0 937418 0 0 0 LARRY CORUM PHYSICIAN 887841 0 0 0 1260 0 57792 0 19977 0 966870 0 0 0 RAVI YARLAGADDA PHYSICIAN 888456 0 0 0 840 0 0 0 0 0 889296 0 0 0 FORM 990, PART VII; SCHEDULE J, PART I, LINE 3 THE COMPENSATION BEING REPORTED FOR FRANK H. DEVOCELLE, TIERNEY L. GRASSER AND JAMES L. WETZEL IS FROM OLATHE MEDICAL CENTER, INC., A RELATED TAX EXEMPT ORGANIZATION. OLATHE MEDICAL CENTER, INC. USES A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT BOARD MEMBERS TO ESTABLISH AND APPROVE COMPENSATION AND BENEFITS FOR ALL OFFICERS OF OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATED CORPORATIONS. THE COMPENSATION COMMITTEE UTILIZED AN INDEPENDENT COMPENSATION CONSULTANT AND COMPENSATION SURVEYS TO ESTABLISH FAIR MARKET VALUE SALARIES AND BENEFITS FOR OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATES' OFFICERS. FORM 990, PART VII; SCHEDULE J, PART I, LINE 3 THE COMPENSATION BEING REPORTED FOR PATRICIA KATZER WAS REVIEWED AND APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD OF OLATHE MEDICAL CENTER, INC. THE COMPENSATION COMMITTEE UTILIZED AN INDEPENDENT COMPENSATION CONSULTANT AND THIRD PARTY SALARY SURVEYS IN THE ESTABLISHMENT OF THEIR COMPENSATION. SCHEDULE J, PART I, LINE 4B A SERP IS PROVIDED TO TIERNEY L GRASSER, SENIOR VICE PRESIDENT/CHIEF FINANCIAL OFFICER, WHICH IS FUNDED OVER A SHORT TIME PERIOD BASED UPON THE IMPLEMENTATION DATE OF THE SERP IN 2005. MS. GRASSER'S CAREER SERVICE AT OLATHE MEDICAL CENTER, INC. AND ITS AFFILIATED ENTITIES IS CURRENTLY AT 27 YEARS, MOST OF WHICH DID NOT INCLUDE FUNDING FOR THE SERP BENEFIT. A MAJORITY OF THE DEFERRED COMPENSATION IS DUE TO FUNDING OF THE SERP BENEFIT FOR PRIOR YEARS OF SERVICE. IN 2015, THERE WAS A PAYOUT OF $32,779 FROM THE SERP. A 457F PLAN WAS STARTED IN 2015 AND $65,643 WAS ACCRUED FOR THE BENEFIT OF TIERNEY L. GRASSER. A SERP IS PROVIDED TO FRANK H. DEVOCELLE, PRESIDENT/CEO, AND JAMES WETZEL, SVP/CHIEF MEDICAL OFFICER. FRANK H. DEVOCELLE AND JAMES WETZEL ARE VESTED IN THE SERP IN THE YEAR EARNED. IN 2015, THERE WAS A PAYOUT OF $102,191 TO FRANK H. DEVOCELLE AND $52,755 TO JAMES WETZEL FROM THE SERP, WHICH IS REPORTED AS TAXABLE INCOME AND IS INCLUDED IN THEIR W-2 . FORM 990, PART III, LINE 4A OLATHE MEDICAL SERVICES, INC. (OMSI) PROVIDES PHYSICIAN AND ANCILLARY SERVICES IN OLATHE, KANSAS AND SURROUNDING AREAS WHICH INCLUDE RURAL AND MEDICALLY UNDERSERVED COUNTIES IN KANSAS. IN 2015, OMSI PROVIDED PHYSICIAN AND ANCILLARY SERVICES AS FOLLOWS: PROGRAM NAME NUMBER OF VISITS PRIMARY CARE PHYSICIAN SERVICES 308,103 SPECIALISTS PHYSICIAN SERVICES 118,412 OMSI'S CONTRIBUTIONS TO THE HEALTH OF THE COMMUNITIES INCLUDES: CHARITY AND UNCOMPENSATED CARE OLATHE MEDICAL SERVICE'S MISSION IS TO PROVIDE QUALITY AND COMPASSIONATE HEALTH CARE SERVICES TO INDIVIDUALS IN THE COMMUNITIES IT SERVES. OLATHE MEDICAL SERVICES PROVIDES HEALTH CARE TO INDIVIDUALS WHO HAVE INADEQUATE RESOURCES TO AFFORD THE SERVICES AND ARE UNINSURED OR UNDERINSURED OR PARTICIPATE IN GOVERNMENTAL HEALTH PROGRAMS FOR THE POOR, ELDERLY OR DISABLED. UNCOMPENSATED CARE TO THE POOR INCLUDES THE COST OF PROVIDING CARE TO PATIENTS WHO MEET THE GUIDELINES OF THE OLATHE MEDICAL SERVICES' CHARITY CARE PROGRAM AND THE COST OF PROVIDING CARE IN EXCESS OF REIMBURSEMENT TO PARTICIPANTS IN THE MEDICAID PROGRAM AND OTHER INDIGENT PUBLIC PROGRAMS SUCH AS FREE CLINICS. CHARITY CARE PROVIDED AT COST $251,000 MEDICAID COST IN EXCESS OF PAYMENTS $3,005,000 PROVISION OF CARE IN RURAL HEALTH CLINICS OLATHE MEDICAL SERVICES, INC. HAS 5 RURAL HEALTH CLINICS OPERATING IN AREAS DESIGNATED AS MEDICALLY UNDERSERVED. THESE CLINICS HELP MEET THE NEEDS OF THEIR RESPECTIVE COMMUNITIES BY PROVIDING PRIMARY CARE PHYSICIANS AND MID-LEVEL PROVIDERS, LAB SERVICES AND X-RAY SERVICES. RURAL HEALTH CARE CLINICS COST IN EXCESS OF PAYMENTS $1,568,000 EDUCATIONAL SUPPORT IN ADDITION TO PROVIDING UNCOMPENSATED CARE FOR PATIENTS IN NEED, OLATHE MEDICAL SERVICES PROVIDES OTHER HEALTH CARE RELATED BENEFITS TO THE COMMUNITIES IT SERVES BY PROVIDING EDUCATION FOR A VARIETY OF MEDICAL PROFESSIONALS, INCLUDING MEDICAL STUDENTS' HEALTH CARE SCREENINGS, NURSING STUDENTS, MID-LEVEL PROVIDERS, AND PHYSICIANS. THE COST OF THIS SUPPORT IS $127,000. FORM 990, PART VI, SECTION A, LINE 2 FRANK H. DEVOCELLE AND TIERNEY L. GRASSER HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER. THEY SERVE AS OFFICERS OF RELATED FOR PROFIT COMPANIES. DAVID R. GABOURY, CHIP WOOD, FRANK H. DEVOCELLE, TIERNEY L. GRASSER, JAMES L. WETZEL, AND CHERYL L. ROSS HAVE A BUSINESS RELATIONSHIP. THE BUSINESS RELATIONSHIP IS AN EMPLOYER/EMPLOYEE RELATIONSHIP, WHERE CHIP WOOD AND DAVID GABOURY ARE BOARD MEMBERS OF OLATHE MEDICAL CENTER, INC. AND FRANK DEVOCELLE, TIERNEY GRASSER, JAMES WETZEL, AND CHERYL ROSS ARE EMPLOYED BY OLATHE MEDICAL CENTER, INC. FORM 990, PART VI, SECTION A, LINE 6 OLATHE MEDICAL CENTER, INC., A NOT-FOR-PROFIT, 501 (C) (3) ORGANIZATION, IS THE SOLE MEMBER OF OLATHE MEDICAL SERVICES, INC. FORM 990, PART VI, SECTION A, LINE 7A OLATHE MEDICAL CENTER, INC. IS THE SOLE MEMBER OF OLATHE MEDICAL SERVICES, INC. AND HAS THE RIGHT TO ELECT OR APPOINT ALL THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 7B OLATHE MEDICAL CENTER, INC. IS THE SOLE MEMBER, AND HAS THE RIGHT TO APPROVE OLATHE MEDICAL SERVICES, INC.'S BYLAWS AND ARTICLES OF INCORPORATION AND ALSO APPROVE OLATHE MEDICAL SERVICES' BOARD MEMBERS AND HAVE AUTHORITY OVER CERTAIN TRANSACTIONS. FORM 990, PART VI, SECTION B, LINE 11B THE TAX RETURN FORM 990 IS REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE OLATHE MEDICAL CENTER, INC. (OLATHE MEDICAL SERVICES, INC.'S SOLE MEMBER) BOARD ON BEHALF OF ALL OF ITS AFFILIATES PRIOR TO FILING THE RETURN WITH THE INTERNAL REVENUE SERVICE. THE AUDIT AND COMPLIANCE COMMITTEE IS COMPRISED OF INDEPENDENT BOARD MEMBERS OF OLATHE MEDICAL CENTER, INC. THE FINAL FORM 990 WITH ALL REQUIRED SCHEDULES IS THEN PROVIDED TO ALL BOARD MEMBERS FOR REVIEW PRIOR TO FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE PURPOSE OF THE ORGANIZATIONS CONFLICT OF INTEREST POLICY IS TO PROTECT THE ORGANIZATIONS INTEREST WHEN IT IS CONTEMPLATING A DECISION OR ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF ANY PERSON IN A POSITION OF AUTHORITY OVER THE ORGANIZATION, OR MIGHT RESULT IN A POSSIBLE EXCESS BENEFIT TRANSACTION. CORPORATE OFFICERS AND MEMBERS OF THE BOARD OF TRUSTEES REVIEW THE CONFLICT OF INTEREST POLICY AND COMPLETE A DISCLOSURE OF INFORMATION FORM ANNUALLY. A SUMMARY OF THE ANNUAL DISCLOSURES OF INFORMATION IS PROVIDED TO THE FULL BOARD FOR REVIEW AT LEAST ONE TIME PER YEAR. THE CONFLICT OF INTEREST POLICY CALLS FOR ANY INTERESTED PERSON TO DISCLOSE THE EXISTENCE OF A FINANCIAL RELATIONSHIP OR COMPETITIVE INTEREST IN CONNECTION WITH ANY PENDING TRANSACTION OR ARRANGEMENT. THE INDIVIDUAL IS GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE TRUSTEES CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT THAT GAVE RISE TO THE DISCLOSURE. WHEN A TRANSACTION INVOLVES AN INTERESTED PARTY, THE FOLLOWING PROCEDURES ARE FOLLOWED: 1. THE INTERESTED PARTY LEAVES THE MEETING AFTER PROVIDING ANY MATERIAL FACTS OR DISCUSSION REGARDING THE MATTER THAT GIVES RISE TO THE INTEREST UNLESS REQUESTED TO STAY BY THE REMAINING BOARD OR COMMITTEE MEMBERS. 2. IF APPROPRIATE, THE BOARD MAY APPOINT A NON-INTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION; 3. THE INTERESTED TRUSTEE MAY NOT VOTE ON THE MATTER THAT GIVES RISE TO THE INTEREST. 4. IN ORDER TO APPROVE THE TRANSACTION, THE BOARD MUST FIRST FIND, BY A MAJORITY VOTE OF THE TRUSTEES THEN IN OFFICE, WITHOUT COUNTING THE VOTE OF THE INTERESTED TRUSTEE, a. THAT THE PROPOSED TRANSACTION IS IN THE ORGANIZATIONS BEST INTERESTS AND FOR ITS OWN BENEFIT, AND b. THAT, AFTER REASONABLE INVESTIGATION, THE BOARD HAS DETERMINED THAT THE ORGANIZATION CANNONT OBTAIN A MORE ADVANTAGEOUS TRANSACTION WITH EFFORTS UNDER THE CIRCUMSTANCES. FORM 990, PART VI, SECTION B, LINE 15A & 15B THE COMPENSATION COMMITTEE OF THE OLATHE MEDICAL CENTER, INC. (OLATHE MEDICAL SERVICES, INC.'S SOLE MEMBER) IS COMPRISED OF INDEPENDENT MEMBERS OF THE BOARD OF OLATHE MEDICAL CENTER, INC. ANNUALLY, THE COMPENSATION COMMITTEE REVIEWS AND APPROVES THE COMPENSATION OF OTHER OFFICERS IN ACCORDANCE WITH THEIR COMPENSATION POLICY. THE COMPENSATION COMMITTEE REVIEWS THIRD PARTY SALARY SURVEYS, USES INDEPENDENT CONSULTANTS AND ALSO UTILIZES THE WRITTEN CONTRACT FOR THE OTHER OFFICERS TO DETERMINE THE FAIR MARKET VALUE OF THE CURRENT COMPENSATION, SALARY RANGES AND BENEFITS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9 TRANSFER FROM AFFILIATE $ 26,048,001 OLATHE MEDICAL CENTER INC 20333 W 151ST ST OLATHE KS 66061 480577664 HOSPITAL KS 501 (C) (3) 3 OHSI true OLATHE HEALTH SYSTEM INC 20333 W 151ST ST OLATHE KS 66061 480979845 SUPPORT ORG KS 501 (C) (3) 11B NA false MIAMI COUNTY MEDICAL CENTER INC 2100 BAPTISTE DR PAOLA KS 66071 481155548 HOSPITAL KS 501 (C) (3) 3 OMCI true OLATHE MEDICAL CENTER CHARITABLE FDN 20333 W 151ST ST OLATHE KS 66061 481136010 FUNDRAISING KS 501 (C) (3) 11A OMCI true OMC DOCTOR'S BLDG CONDO OWNERS ASSOC INC 20333 W 151ST ST OLATHE KS 66061 481244766 REAL ESTATE KS OMCI C CORPORATION 0 0 true OLATHE HEALTH DEVELOPMENT CORPORATION 20333 W 151ST ST OLATHE KS 66061 363445097 MEDICAL SERVI KS OHSI C CORPORATION 0 0 true false false true false false false false false true false false false true true true true true false false MIAMI COUNTY MEDICAL CENTER INC I 60834 COST MIAMI COUNTY MEDICAL CENTER INC N 89072 COST MIAMI COUNTY MEDICAL CENTER INC P 93397 COST OLATHE MEDICAL CENTER INC C 26048001 COST OLATHE MEDICAL CENTER INC I 577639 COST OLATHE MEDICAL CENTER INC M 89738 COST OLATHE MEDICAL CENTER INC N 2043232 COST OLATHE MEDICAL CENTER INC O 5875418 COST OLATHE MEDICAL CENTER INC Q 17956537 COST