2016-11-03T14:50:11-05:00 2015-12-31 346565596 ERNST & YOUNG US LLP 190 CARONDELET PLAZA CLAYTON MO 63105 990 2015-01-01 237379161 SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM INC SIST 3038135190 500 ELDORADO BLVD SUITE 4300 BROOMFIELD CO 80021 LYDIA JUMONVILLE EVP FINANCE & CFO 3038135190 2016-11-03 P00366526 3142901000 2015 2017-02-10 21:41:12Z MICHAEL SLUBOWSKI 500 ELDORADO BLVD SUITE 4300 BROOMFIELD CO 80021 451495174 0 X WWW.SCLHEALTHSYSTEM.ORG X 1972 KS WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE. 16 15 2646 0 -2123217 -2371376 280000 1844653 304597623 374990782 30439255 65683477 9076028 8549478 344392906 451068390 1748613 15517172 0 0 133383216 223489307 0 0 0 219432971 297828263 354564800 536834742 -10171894 -85766352 2458570599 2439912230 2804973870 2972946859 -346403271 -533034629 X WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE. 1 0 522816575 15517172 383511824 SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH) IS A FAITH-BASED, NONPROFIT HEALTHCARE ORGANIZATION THAT OPERATES NINE HOSPITALS, TWO SAFETY NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES - COLORADO, KANSAS AND MONTANA. THE HEALTH SYSTEM INCLUDES 15,000 FULL-TIME ASSOCIATES AND MORE THAN 500 EMPLOYED PROVIDERS.BASED IN DENVER, THE HEALTH NETWORK IS DEDICATED TO IMPROVING THE HEALTH OF THE COMMUNITIES AND INDIVIDUALS IT SERVES, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE. IN 2015, SCL HEALTH CONTRIBUTED MORE THAN $222 MILLION IN COMMUNITY BENEFIT, INCLUDING SERVICES FOR THE POOR, HEALTH SCREENINGS, EDUCATIONAL PROGRAMS, COMMUNITY DONATIONS AND RESEARCH.SCL HEALTH WAS FOUNDED BY THE SISTERS OF CHARITY OF LEAVENWORTH (SCL), WHO TRACE THEIR ORIGIN AS A RELIGIOUS COMMUNITY TO THE 1600S IN FRANCE, WHERE VINCENT DE PAUL AND LOUISE DE MARILLAC ESTABLISHED THE DAUGHTERS OF CHARITY. THESE WOMEN WERE DEDICATED TO SERVING THE SICK AND POOR THROUGH AN ACTIVE MINISTRY.IN 1857, A SMALL CONGREGATION OF SISTERS FROM NASHVILLE, TENN., LED BY MOTHER XAVIER ROSS, VENTURED TO THE EDGE OF AN EXPANDING FRONTIER IN THE THEN-INDIAN TERRITORY OF KANSAS. THEY OPENED THE FIRST PRIVATE HOSPITAL IN THE STATE IN 1864, WITH THE FIRST TRAINED NURSE IN THE STATE AND SURELY THE FIRST WOMAN IN THE WESTERN TERRITORY TO RUN A HOSPITAL. IN 1873, THE SISTERS FOUNDED WHAT IS NOW SAINT JOSEPH HOSPITAL IN DENVER, THE OLDEST PRIVATE TEACHING HOSPITAL IN COLORADO, AND ONE OF THE FIVE COLORADO HOSPITALS OF SCL HEALTH.SCL HEALTH WAS FORMED IN 1972 TO STRENGTHEN AND UNIFY THE HEALTHCARE FACILITIES SPONSORED BY SCL. IN 2011, THE SISTERS TRANSFERRED SPONSORSHIP OF SCL HEALTH TO LEAVEN MINISTRIES. OUR ORGANIZATION'S RICH HERITAGE AND ENDURING LEGACY SERVE AS THE FOUNDATION FOR OUR HEALTH MINISTRY TODAY, AND OUR MISSION, VISION AND VALUES SERVE AS THE FRAMEWORK FOR OUR SUCCESS.SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) IS THE PARENT CORPORATION OF A LARGE HOSPITAL AND HEALTHCARE SYSTEM. SCLHS IS THE MANAGEMENT COMPANY PROVIDING CENTRALIZED SERVICES FOR ALL SCL HEALTH SUBSIDIARIES.SCLHS PERFORMS NUMEROUS COORDINATED AND CENTRALIZED SERVICES FOR THE ENTITIES & CARE SITES THAT COMPRISE ITS SYSTEM, SUCH AS ADMINISTERING FINANCING & CAPITAL FORMATION PROGRAMS, ETHICAL & RELIGIOUS DIRECTION, FINANCIAL REPORTING, HUMAN RESOURCES FUNCTIONS INCLUDING EXECUTIVE RECRUITING & ADMINISTERING & MAINTAINING WELFARE, BENEFIT & RETIREMENT PLANS, INFORMATION TECHNOLOGY SERVICES INCLUDING ELECTRONIC MEDICAL RECORD SYSTEMS, BUSINESS MANAGEMENT SYSTEMS, EQUIPMENT & CONNECTIVITY, INTERNAL AUDIT FUNCTIONS, LEGAL SERVICES, PHYSICIAN NETWORK DEVELOPMENT, PROCUREMENT & SUPPLY CHAIN MANAGEMENT, INCLUDING MEDICAL DEVICES, SUPPLIES & EQUIPMENT, PROFESSIONAL LIABILITY INSURANCE THROUGH A CAPTIVE PROVIDER INCLUDING GROUP EXCESS COVERAGE AND REINSURANCE AND LITIGATION MANAGEMENT, PUBLIC RELATIONS, COMMUNICATIONS & LEGISLATIVE AFFAIRS, REAL ESTATE MANAGEMENT SERVICES, INCLUDING LEASING & CONSTRUCTION, PURCHASE & SALE, REGULATORY COMPLIANCE SERVICES, REVENUE CYCLE MANAGEMENT SERVICES INCLUDING BILLING & COLLECTIONS, RISK MANAGEMENT SERVICES INCLUDING SELF-INSURANCE, GROUP EXCESS COVERAGE & REINSURANCE, LITIGATION MANAGEMENT, INSPECTION & CONTROLS.THE CENTRALIZATION OF MANAGEMENT SERVICES PROVIDES FOR HIGH QUALITY, COST EFFECTIVE AND COMPASSIONATE HEALTH CARE MANAGEMENT AND MEDICAL SERVICES FOR THE COMMUNITIES WE SERVE. THEREFORE, THESE MANAGEMENT SERVICES RELATE DIRECTLY TO THE EXEMPT PURPOSE OF OWNING AND MANAGING PUBLIC HOSPITALS AND A HEALTHCARE SYSTEM. OUR MISSION, VISION AND VALUES ARE LISTED BELOW. MISSIONWE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE.VISIONINSPIRED BY OUR FAITH,WE WILL BE DISTINGUISHED AS THE PREMIER PERSON-CENTERED HEALTH SYSTEM AND TRUSTED PARTNER.WE WILL ENGAGE PATIENTS IN THEIR CARE DECISIONS AND SHARE ACCOUNTABILITY WITH CLINICIANS AND OTHER STAKEHOLDERS TO COORDINATE CARE ACROSS ALL SETTINGS AND IMPROVE ACCESS, QUALITY, HEALTH OUTCOMES AND AFFORDABILITY.WE WILL GROW AS COMMUNITY-BASED HEALTH NETWORKS IN PARTNERSHIP WITH OTHERS WHO SHARE OUR VISION AND VALUES AND ALIGN WITH US TO BE AN ESSENTIAL PROVIDER TO THOSE WE SERVE.VALUESCARING SPIRIT - WE HONOR THE SACRED DIGNITY OF EACH PERSON.EXCELLENCE - WE SET AND SURPASS HIGH STANDARDS.GOOD HUMOR - WE CREATE JOYFUL AND WELCOMING ENVIRONMENTS.INTEGRITY - WE DO THE RIGHT THING WITH OPENNESS AND PRIDE.SAFETY - WE DELIVER CARE THAT SEEKS TO ELIMINATE ALL HARM FOR PATIENTS AND ASSOCIATES. STEWARDSHIP - WE ARE ACCOUNTABLE FOR THE RESOURCES ENTRUSTED TO US. 522816575 1 1 0 1 0 0 0 0 0 1 1 1 1 0 1 0 0 1 0 0 1 0 0 0 0 0 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 460 0 1 2646 1 1 1 1 CJ EI 0 0 0 0 0 0 0 0 X 16 15 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 X KYLE ENGMAN 3038135543 500 ELDORADO BLVD SUITE 4200 BROOMFIELD CO 80021 JERRY BELL JR MEMBER 1.00 0.00 X 0 0 0 SISTER LYNN CASEY SCL PAST CHAIR 2.00 0.00 X X 0 0 0 SISTER MAUREEN HALL SCL MEMBER 1.00 0.00 X 0 0 0 C GORDON HOWIE MEMBER 1.00 0.00 X 0 0 0 STEVEN HUEBNER MEMBER 1.00 0.00 X 0 0 0 SISTER EILEEN HURLEY SCL MEMBER 1.00 0.00 X 0 0 0 DONNA KING MEMBER 1.00 0.00 X 0 0 0 KNUTE KNUDSON CHAIR 2.00 0.00 X X 0 0 0 MAUREEN MAHONEY MEMBER 1.00 0.00 X 0 0 0 KATHRYN PAUL VICE CHAIR 2.00 0.00 X X 0 0 0 MARLON PRIEST MD MEMBER 1.00 0.00 X 0 0 0 KENT RUSSELL MEMBER 1.00 0.00 X 0 0 0 VINOD SAHNEY PHD MEMBER 1.00 0.00 X 0 0 0 MICHAEL SALEM MD MEMBER 1.00 0.00 X 0 0 0 MICHAEL SLUBOWSKI SYSTEM PRESIDENT AND CEO 50.00 0.00 X X 1951682 0 34759 J PAUL SOLVERSON MEMBER 1.00 0.00 X 0 0 0 LYDIA JUMONVILLE TREASURER & CFO/EVP 50.00 0.00 X 722449 0 229971 ROSLAND MCLEOD SECRETARY/SVP CHIEF LEGAL OFFICER 50.00 0.00 X 568031 0 152220 LYNN SMITH ASSISTANT SECRETARY/EXEC ASST-CEO 50.00 0.00 X 102246 0 16785 MICHAEL TAYLOR CHIEF OPERATING OFF-HOSP OPS 50.00 0.00 X 862381 0 133729 WILLIAM ANDERSON SVP-CHIEF HUMAN RESOURCES OFCR 50.00 0.00 X 548687 0 38319 STEVEN CHYUNG CHIEF STEWARDSHP & TRNFMTN OFC 50.00 0.00 X 444572 0 92515 SHAWN DUFFORD SVP CHIEF MEDICAL OFFICER SYS 50.00 0.00 X 529543 0 99381 TAJQUAH HUDSON SVP-CHIEF STRAT-BUS DEV OFCR 50.00 0.00 X 542264 0 126457 RICHARD LOPES EVP CHF POP HEALTH OFFCR 1/1-10/9 50.00 0.00 X 802709 0 36638 WILLIAM PACK VP FINANCE OPERATIONS 50.00 0.00 X 419236 0 83821 DAVID PECORARO SVP-CHIEF INFORMATION OFFICER 50.00 0.00 X 1241517 0 35829 DAVID PRINGLE SVP MISSION INTEGRATION 50.00 0.00 X 338430 0 48094 TROY SPRING VP REVENUE CYCLE 50.00 0.00 X 236129 0 41563 GERALDINE TOWNDROW SVP CHIEF NURSING OFFICER SYS 50.00 0.00 X 389815 0 22790 DEBORAH WELLE-POWELL VP ACCT HLTH PYR CONTR STRT 1/1-6/1 50.00 0.00 X 198813 0 47851 MARK WILKINSON VP TREASURER 50.00 0.00 X 299565 0 52146 CHRISTINE WOOLSEY SVP AND CHIEF COMM-MKTG OFCR 50.00 0.00 X 488130 0 92199 J GRANT WICKLUND PRESIDENT-CEO ELMC 0.00 50.00 X 854425 0 256438 DAVID HAMM PRESIDENT-CEO EGSM 0.00 50.00 X 775540 0 202578 MICHAEL MCBRIDE PRESIDENT SMGJ 1/1-12/6 0.00 50.00 X 729680 0 166145 BAIN FARRIS PRESIDENT - SJH 1/1-7/15 0.00 50.00 X 585009 0 30309 STEVE LOVELESS PRESIDENT CEO SVH-MT REG 0.00 50.00 X 563584 0 88745 EDWARD BARKER FORMER OFFICER 0.00 0.00 X 247504 0 0 JOHN BYRNES MD FORMER KEY EMPLOYEE 0.00 0.00 X 124443 0 4585 ROBERT LADENBURGER FORMER KEY EMPLOYEE 0.00 0.00 X 703851 0 12600 IRMA NAPOLI FORMER KEY EMPLOYEE 0.00 0.00 X 163571 0 2742 15433806 0 2149209 334 1 1 0 PRICE WATERHOUSE COOPERS LLP PO BOX 676384 DALLAS TX 75267 CPA SERVICES 6243862 DENTONS US LLP 233 S WACKER DRIVE STE 7800 CHICAGO IL 60606 LEGAL SERVICES 4405855 WEATHERBY LOCUMS INC PO BOX 972633 DALLAS TX 75397 CONTRACT LABOR 2640859 CHG COMPANIES INC PO BOX 972651 DALLAS TX 75397 CONTRACT LABOR 2393282 MEDIFAX EDI HOLDING COMPANY & SUBS 3055 LEBANON PIKE STE 1000 NASHVILLE TN 03641 INFORMATION SYSTEMS 2304425 87 1340736 503667 250 1844653 MANAGEMENT SERVICES 541900 303966152 303936152 30000 PATIENT SERVICE REVENUE 622110 47598598 47598598 PROGRAM RELATED INVESTMENTS 900099 23480292 23480292 JOINT VENTURES - MEDICAL SERVICE 622110 -54260 -54260 374990782 38020719 -2153217 40173936 28436 0 28436 28436 28436 28086942 2600 0 426784 28086942 -424184 27662758 27662758 VENDOR ADMINISTRATION REBATE 900099 8521042 8521042 8521042 451068390 383481824 -2123217 67865130 15454382 15454382 62790 62790 12071265 8412154 3659111 171641227 171641227 6584594 6584594 19870718 19870718 13321503 13321503 7839241 7839241 1580473 1580473 61255 61255 878087 878087 23645638 23645638 1575923 1575923 20959358 20959358 11187129 11187129 8939596 8939596 4257735 4257735 1315205 1315205 119999530 119999530 38767070 38767070 1255506 1255506 MAINTENANCE CONTRACTS 30841763 30841763 BANK FEES 7747557 7747557 COLLECTION AGENCIES 4831397 4831397 DUES & SUBSCRIPTIONS 2721946 2721946 9423854 9423854 536834742 522816575 14018167 0 43932598 44421354 150227 5947634 60000 304508 13785469 14432452 413207249 187257954 208655076 225949295 1213745735 1117812707 433628525 506412767 531332141 510330252 0 1417333 13431055 12733701 2458570599 2439912230 152437624 127128973 94412 1525745858 1487706042 1126790388 1358017432 2804973870 2972946859 X -362781503 -549999666 14378232 14965037 2000000 2000000 -346403271 -533034629 2458570599 2439912230 X -85766352 -71589736 -29275270 X 0 1 X 1 1 1 X X 11 ST FRANCIS HEALTH CENTER INC 480547719 3 0 0 0 ST JAMES HEALTHCARE 810231785 3 0 150 0 SAINT JOSEPH HOSPITAL INC 840417134 3 0 0 0 SCL HEALTH - FRONT RANGE INC 841103606 3 0 0 0 ST MARY'S HOSPITAL AND MEDICAL CENTER INC 840425720 3 0 3400 0 ST VINCENT HEALTHCARE 810232124 3 0 14000000 0 HOLY ROSARY HEALTHCARE 810231792 3 0 0 0 CARITAS CLINICS INC 481009910 3 0 206722 0 MARIAN CLINIC INC 481046905 3 0 211317 0 MARILLAC CLINIC INC 841085822 3 0 0 0 MOUNT ST VINCENT HOME 840405260 9 0 1029493 0 11 15451082 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 0 X 1 1 SCHEDULE A, PART IV, SECTION A, LINE 1 THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. IS THE PARENT OF EACH OF ITS SUPPORTED ORGANIZATIONS AND CONTROLS THEM AS PART OF AN INTEGRATED HEALTH SYSTEM. EACH SUPPORTED ORGANIZATION IS CONTROLLED BY THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. A CLOSE AND HISTORIC ORGANIZATIONAL RELATIONSHIP ENSURES THAT SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. AND ITS SUPPORTED ORGANIZATIONS SHARE A SUBSTANTIAL IDENTITY OF INTERESTS. SCHEDULE A, PART IV, SECTION A, LINE 5A MARILLAC CLINIC, INC. EIN: 84-1085822 MARILLAC CLINIC WAS REMOVED AS A SUPPORTED ORGANIZATION DURING 2015. MARILLAC CLINIC DESIRED TO BE A SEPARATE ORGANIZATION IN ORDER TO QUALIFY AS A FEDERALLY QUALIFIED HEALTH CENTER. DUE TO THE REMOVAL OF MARILLAC, IT WILL NO LONGER BE A SUPPORTED ORGANIZATION OF SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). AS THE SOLE MEMBER, SCLHS HAD FULL AUTHORITY TO REMOVE MARILLAC CLINIC AS A SUPPORTED ORGANIZATION. SCHEDULE A, PART IV, SECTION A, LINE 6 SUPPORT WAS PROVIDED TO MEDICAL AND OTHER CHARITABLE ORGANIZATIONS NOT CONSIDERED SUPPORTED ORGANIZATIONS. HOWEVER, THESE INSTITUTIONS ARE SUPPORTING MEDICAL AND OTHER ACTIVITIES BENEFITING THE COMMUNITIES SERVED BY SUPPORTED ORGANIZATIONS. AMOUNTS GRANTED ARE INSIGNIFICANT TO THE OVERALL OPERATIONS OF SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. SCHEDULE A, PART IV, SECTION E, LINE 3A SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) IS THE SOLE MEMBER OF THE SUPPORTED ORGANIZATIONS. SCLHS APPOINTS MEMBERS OF THE SUPPORTED ORGANIZATIONS' BOARD OF DIRECTORS. SCHEDULE A, PART IV, SECTION E, LINE 3B SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) HAS CERTAIN RESERVE POWERS TO APPROVE CHANGES TO THE ARTICLES OF INCORPORATION AND THE BYLAWS INCLUDING THE APPOINTMENT OR REMOVAL OF BOARD MEMBERS AND THE PRESIDENT/CEO. SCLHS ALSO HAS CERTAIN RESERVE POWERS OVER ANY CHANGE IN OWNERSHIP OF THE CORPORATION, CHANGE IN MISSION, ACQUISITION OF ASSETS, DISPOSAL OF ASSETS, LEASING OF ASSETS, INCURRENCE OF DEBT, MERGER OR DISSOLUTION, APPROVAL OF STRATEGIC PLANS AND BUDGETS, APPOINTMENT OF AUDITORS AND OVERSIGHT AND APPROVAL OF COMPENSATION AND BENEFITS FOR DIRECTORS, OFFICERS, KEY EMPLOYEES AND PHYSICIANS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 61255 61255 0 PART II-B, LINE 1: LOBBYING EXPENSES WERE DERIVED AS A PERCENTAGE OF DUES PAID TO THE AMERICAN HOSPITAL ASSOCIATION. 3813121 25463 1838584 2000000 3663849 149272 3813121 3521063 142786 3663849 3524552 140511 144000 3521063 3639978 17492 132918 3524552 1.00000 0 0 37697597 37697597 19290193 11488609 7801584 15026208 4428958 10597250 321701144 171340387 150360757 19492107 19492107 225949295 VHA STOCK INVESTMENT 598055 F ABSOLUTE RETURN INVESTMENTS 10152396 F TACTICAL - PINEBRIDGE 101594016 F OPPORTUNISTIC INVESTMENTS 8572075 F EXECUTIVE DB PLAN INVESTMENTS 18065777 F JOINT VENTURE - LUTHERAN CAMPUS ASC, LLC 858540 F JOINT VENTURE - DENVER WEST ENDOSCOPY CTR, LLC 518126 F JOINT VENTURE - E + PET IMAGING X, LP 376103 F JOINT VENTURE - SCL HEALTH - EMERUS, LLC 1293525 F JOINT VENTURE - NORTHERN ROCKIES HEALTHCARE ALLIANCE, LLC 522357 F JOINT VENTURE - SCLTDI JV, LLC 10222279 F REAL RETURN INVESTMENTS 279089587 F SWEEP ACCOUNTS 74549931 F 506412767 NOTES REC - ST. JOSEPH HOSPITAL, INC. 196910377 C NOTES REC - SCL HEALTH - FRONT RANGE, INC. 285520000 C NOTES REC - ST. JAMES HEALTHCARE 7850324 C NOTES REC - ST. MARY'S HOSPITAL & MEDICAL CENTER, INC. 20049551 C 510330252 INTERCOMPANY PAYABLE 1286130027 DEFERRED COMPENSATION PLAN PAYABLE 48490256 INTEREST RATE SWAP PAYABLE 22917204 INFORMATION TECHNOLOGY SERVICES PAYABLE 479945 1358017432 PART V, LINE 4: SCLHS HAS A PERMANENT ENDOWMENT IN THE AMOUNT OF $2,000,000. THE EARNINGS FROM THE PERMANENT ENDOWMENT ARE A TERM ENDOWMENT TO BE USED FOR EDUCATIONAL PURPOSES AS DETERMINED BY SCLHS MANAGEMENT. CENTRAL AMERICA/CARIBBEAN 0 0 PROGRAM SERVICES CAPTIVE INSURANCE PREMIUM 12397139 CENTRAL AMERICA/CARIBBEAN 0 0 INVESTMENTS, PROGRAM-RELATED 130121 EUROPE 0 0 INVESTMENTS, PROGRAM-RELATED 2477026 0 0 0 0 0 0 15004286 0 15004286 1 0 1 1 1 0 SCHEDULE F, PART I, LINE 3 SCLHS' EXPENDITURES (PREMIUMS PAID) FOR ITS CAPTIVE INSURANCE PREMIUMS WERE $12,397,139 NET OF PREMIUM DISCOUNTS. 1 1 X 1 X 1 X 500.000000000000 1 0 0 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 0 0 0 0 0.00000 1 0 0 0 0 1 1 1 1 SCL HEALTH COMM HOSP - WESTMINSTER 6500 WEST 104TH AVE SUITE 100 WESTMINSTER CO 80020 WWW.SCLHEALTHCOMMUNITY.ORG 01A413 X X SCL HEALTH COMM HOSP - WESTMINSTER 1 1 1 0 0 1 X 200.000000000000 500.000000000000 X 1 1 X X X 1 X WWW.SCLHEALTHCOMMUNITY.ORG/HELPINGHANDS X WWW.SCLHEALTHCOMMUNITY.ORG/HELPINGHANDS X WWW.SCLHEALTHCOMMUNITY.ORG/HELPINGHANDS X X X X 1 X 0 X X 1 X 0 0 SCL HEALTH COMM HOSP - WESTMINSTER PART V, SECTION B, LINE 2: SCL HEALTH COMMUNITY HOSPITAL WAS PLACED IN SERVICE IN NOVEMBER OF 2015. THE HOSPITAL IS OWNED THROUGH A JOINT VENTURE, SCL HEALTH - EMERUS, LLC. SCL HEALTH COMM HOSP - WESTMINSTER PART V, SECTION B, LINE 22D: ONCE A PATIENT IS DETERMINED TO BE FAP-ELIGIBLE, THE CHARGES ARE WRITTEN OFF 100% FOR THOSE ELIGIBLE FOR FREE CARE OR THE CHARGES ARE REDUCED BY 95% FOR THOSE PATIENTS THAT ARE ELIGIBLE FOR DISCOUNTED CARE. UNTIL A PATIENT IS DETERMINED TO BE FAP-ELIGIBLE, THE HOSPITAL CHARGES THE PATIENT THE ALLOWABLE AMOUNT BASED ON THEIR INSURANCE COVERAGE. PART I, LINE 7: THE HOSPITAL OPENED IN LATE NOVEMBER 2015. THE HOSPITAL WAS NOT CERTIFIED FOR MEDICARE AND MEDICAID IN 2015. DUE TO THE SHORT PERIOD OF TIME THE FACILITY WAS OPERATIONAL IN 2015, THERE WERE NO FINANCIAL ASSISTANCE AND COMMUNITY BENEFIT EXPENSES TO REPORT ON SCHEDULE H, PART I, LINES 7A-7K. PART II, COMMUNITY BUILDING ACTIVITIES: THE HOSPITAL OPENED IN LATE NOVEMBER 2015. DUE TO THE SHORT PERIOD OF TIME THE FACILITY WAS OPERATIONAL IN 2015, THERE WERE NO COMMUNITY BUILDING ACTIVITIES EXPENSE TO REPORT ON SCHEDULE H, PART II.PART III, LINE 1:THE ORGANIZATION REPORTS BAD DEBT IN ACCORDANCE WITH HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION (HFMA) STATEMENT NO. 15 TO THE EXTENT THAT HFMA STATEMENT NO. 15 FOLLOWS THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) FOR THE REPORTING OF BAD DEBT. PART III, LINE 2: THE BAD DEBT EXPENSE REPORTED ON PART III, LINE 2 IS $0. THE HOSPITAL OPENED IN LATE NOVEMBER 2015. DUE TO THE SHORT PERIOD OF TIME THE FACILITY WAS OPERATIONAL IN 2015, THERE WAS NO BAD DEBT RECORDED IN THE HOSPITAL'S FINANCIAL STATEMENTS FOR 2015. THE COMPANY REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHER. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE COMPANY ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE PROVISION FOR UNCOLLECTIBLE ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE COMPANY ANALYZES CONTRACTUALLY DUE AMOUNTS AND RECORDS A PROVISION FOR UNCOLLECTIBLE ACCOUNTS, IF NECESSARY. FOR EXAMPLE, FOR 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, THE ACCOUNT IS WRITTEN OFF AS BAD DEBT. 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), THE COMPANY RECORDS A SIGNIFICANT PROVISION FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE. THE DIFFERENCE BETWEEN THE DISCOUNTED RATES PER THE COMPANY'S POLICY AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS WRITTEN OFF AS BAD DEBT. PART III, LINE 4: THE ALLOWANCE FOR BAD DEBT IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING THE BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS.THE BAD DEBT ALLOWANCE IS CALCULATED AS A PERCENTAGE OF PATIENT RECEIVABLES AFTER DEDUCTIONS FOR ESTIMATED PROVISIONS FOR CONTRACTUAL ADJUSTMENTS (DISCOUNTS) ON SERVICES PROVIDED TO ENROLLEES OF MEDICARE, MEDICAID, THIRD-PARTY PAYOR PROGRAMS, CHARITY CARE, UNINSURED DISCOUNTS, AND OTHER ADMINISTRATIVE ADJUSTMENTS.THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN AND PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS.CERTAIN PATIENT ACCOUNTS ARE WRITTEN OFF TO BAD DEBT BECAUSE THE ORGANIZATION DOES NOT HAVE SUFFICIENT INFORMATION TO DETERMINE IF THE PATIENT WOULD QUALIFY FOR FREE CARE OR FINANCIAL AID. THEREFORE, IT IS POSSIBLE THAT SOME BAD DEBT IS ACTUALLY CHARITY CARE. HOWEVER, IF A PATIENT ACCOUNT IS WRITTEN OFF TO BAD DEBT AND THE COLLECTION AGENCY LATER DETERMINES THAT THE PATIENT WOULD HAVE QUALIFIED FOR FREE CARE OR FINANCIAL AID, THEN THE BAD DEBT EXPENSE IS RECLASSIFIED TO CHARITY CARE. THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TO THE ORGANIZATIONS FINANCIAL STATEMENTS THAT DESCRIBE THE BAD DEBT ALLOWANCE AND BAD DEBT EXPENSE: THE COMPANY REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHER. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE COMPANY ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE PROVISION FOR UNCOLLECTIBLE ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE COMPANY ANALYZES CONTRACTUALLY DUE AMOUNTS AND RECORDS A PROVISION FOR UNCOLLECTIBLE ACCOUNTS, IF NECESSARY. FOR EXAMPLE, FOR 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, THE ACCOUNT IS WRITTEN OFF AS BAD DEBT. 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), THE COMPANY RECORDS A SIGNIFICANT PROVISION FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE. THE DIFFERENCE BETWEEN THE DISCOUNTED RATES PER THE COMPANY'S POLICY AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS WRITTEN OFF AS BAD DEBT. PART III, LINE 8: THE HOSPITAL OPENED IN LATE NOVEMBER 2015. THE HOSPITAL WAS NOT CERTIFIED FOR MEDICARE IN 2015. PART III, LINE 9B: AN INTEGRAL COMPONENT OF OUR MISSION IS TO BE GOOD FINANCIAL STEWARDS. THIS REQUIRES US TO DETERMINE WHICH PATIENTS ARE IN NEED OF CHARITY CARE AND WHICH ARE ABLE TO CONTRIBUTE SOME PAYMENT FOR CARE RECEIVED. WE MAINTAIN A BALANCE THAT ENABLES US TO CONTINUE TO PROVIDE CHARITY CARE TOTHOSE WHO NEED IT MOST AND ENSURE THAT WE MANAGE OUR RESOURCES SO WE CAN CONTINUE TO BE HERE WHEN PEOPLE NEED US MOST. THE ORGANIZATION NOTIFIES PATIENTS ABOUT THE FINANCIAL ASSISTANCE POLICY BY PROVIDING A PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY TO ALL PATIENTS. NOTICES ABOUT THE FINANCIAL ASSISTANCE POLICY ARE DISPLAYED IN THE HOSPITAL. IN ADDITION, THE PATIENTS RECEIVES INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. UNINSURED/UNDERINSURED PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE WILL HAVE DISCOUNTS APPLIED TO OUTSTANDING BALANCES BASED ON THE CORRESPONDING DISCOUNT GUIDELINES PROVIDED WITHIN THE FINANCIAL ASSISTANCE POLICY. REASONABLE EFFORT TO QUALIFY PATIENTS FOR FINANCIAL ASSISTANCE THROUGH THE PRESUMPTIVE ELIGIBILITY PROCESS WILL BE MADE IN ACCORDANCE WITH THE FINANCIAL ASSISTANCE POLICY. IF PATIENTS DO NOT QUALIFY UNDER THIS PROCESS, THEY MAY INITIATE AND SUBMIT A FINANCIAL APPLICATION FOR FURTHER CONSIDERATION. PATIENTS ARE CONTACTED MULTIPLE TIMES ABOUT UNPAID BALANCES PRIOR TO INITIATING ANY COLLECTION ACTION. IF A PATIENT IS DETERMINED TO BE ELIGIBLE FOR FINANCIAL ASSISTANCE AT ANY TIME DURING THE COLLECTION PROCESS, THE ACCOUNT IS RECLASSIFIED AS FINANCIAL ASSISTANCE AND DEBT COLLECTION EFFORTS ARE CEASED. PART VI, LINE 2: SCL COMMUNITY HOSPITAL (SCLCH) OPENED ITS DOORS IN NOVEMBER OF 2015 AND IS CURRENTLY IN THE PROCESS OF CONDUCTING THE COMMUNITY HEALTH NEEDS ASSESSMENT PER THE COMPLIANCE TIMELINES. THE MISSION OF SCL HEALTH COMMUNITY HOSPITAL IS TO INCREASE THE COMMUNITY'S ACCESS TO HIGH-QUALITY HEALTH CARE THROUGH AN EXPERIENCED STAFF AND STATE-OF-THE-ART RESOURCES. SERVICES INCLUDE EMERGENCY CARE, INPATIENT CARE, DIAGNOSTIC AND SURGICAL SERVICES. FOLLOWING COMPLETION OF THE COMMUNITY HEALTH NEEDS ASSESSMENT WHICH WILL INCLUDE A PROCESS TO ENGAGE COMMUNITY MEMBERS THROUGH BOTH QUANTITATIVE AND QUALITATIVE DATA INPUT, A COMMUNITY HEALTH IMPROVEMENT PLAN WILL BE DEVELOPED TO INDICATE SPECIFIC PRIORITIES AND EXPECTED IMPACT. PLANNED COMMUNITY ACTIVITIES WILL INCLUDE A VARIETY OF CLASS OFFERINGS (IN PARTNERSHIP WITH AREA ACUTE CARE LOCATIONS) ON HEALTHY LIFESTYLE, COMMUNITY HEALTH AND SAFETY CLINICS, CANCER SCREENINGS AND CHRONIC DISEASE MANAGEMENT. IN ADDITION, A FOCUS ON PREVENTION INTERVENTIONS WILL COMPRISE OUTREACH TO UNDERSERVED COMMUNITIES, INCLUDING FLU SHOTS, ANNUAL YOUTH PHYSICALS, HEALTH LITERACY SEMINARS AND ASSISTING COMMUNITY MEMBERS IN CONNECTING TO OTHER COMMUNITY HEALTH RESOURCES (E.G. TRANSPORTATION, HOME HEALTH, HOUSING, AND OTHER SOCIAL SERVICES). PART VI, LINE 3: THE ORGANIZATION NOTIFIES PATIENTS ABOUT THE FINANCIAL ASSISTANCE POLICY BY PROVIDING A PLAIN LANGUAGE SUMMARY OF THE FINANCIAL ASSISTANCE POLICY TO ALL PATIENTS. NOTICES ABOUT THE FINANCIAL ASSISTANCE POLICY ARE DISPLAYED IN THE HOSPITAL. IN ADDITION, PATIENTS RECEIVE INFORMATION ABOUT THE FINANCIAL ASSISTANCE POLICY WITH THEIR PATIENT BILLS. THE FINANCIAL ASSISTANCE POLICY AND APPLICATION ARE POSTED ON THE HOSPITAL'S WEBSITE. THE POLICY AND APPLICATION ARE ALSO AVAILABLE UPON REQUEST. THE ORGANIZATION HAS A FINANCIAL ASSISTANCE PROGRAM THAT PROVIDES PATIENTS OPPORTUNITIES TO APPLY FOR FREE OR DISCOUNTED CARE OR TO BE ENROLLED IN A GOVERNMENT SPONSORED MEDICAL CARE PROGRAM. THE PROCESS INCLUDES IDENTIFYING PATIENTS WITH A FINANCIAL CONCERN, PROVIDING FINANCIAL COUNSELING AND ASSISTANCE IN APPLYING FOR THE ORGANIZATION'S CHARITY CARE AND OTHER FINANCIAL ASSISTANCE PROGRAMS. PART VI, LINE 4: SCL COMMUNITY HOSPITAL (SCLCH) IS LOCATED IN THE CITY OF WESTMINSTER, COLORADO. WESTMINSTER IS LOCATED IN JEFFERSON COUNTY, BUT INCLUDES A UNIQUE SERVICE AREA OF THREE INTERSECTING COUNTIES (ADAMS, BROOMFIELD AND JEFFERSON). WITH THE POSITIONING OF THE COMMUNITY HOSPITAL, ALONG A MAJOR TRANSPORTATION CORRIDOR, THE PRIMARY SERVICE AREA IS DEFINED BY A GEOGRAPHIC RADIUS OF 50 MILES FOR HEALTH DATA REVIEW.SCL COMMUNITY HOSPITAL OPENED ITS DOORS IN NOVEMBER OF 2015 AND IS CURRENTLY IN THE PROCESS TO CONDUCT THE COMMUNITY HEALTH NEEDS ASSESSMENT PER THE COMPLIANCE TIMELINES. DATA SHARED BELOW REPRESENTS A COMBINATION OF COUNTY AND SERVICE MARKET DATA AS OF 2010-2012 GATHERED AS A CHNA PRECURSOR FROM MULTIPLE PUBLIC HEALTH DEPARTMENTS - (JEFFERSON COUNTY PUBLIC HEALTH, BOULDER COUNTY PUBLIC HEALTH, TRI-COUNTY PUBLIC HEALTH AND GOOD SAM MEDICAL CENTER).DEMOGRAPHICS OF THE COMMUNITY (U.S. CENSUS BUREAU 2010)JEFFERSON COUNTY'S POPULATION AS OF 2010 WAS 534,543; ADAM'S COUNTY 441,603; AND BROOMFIELD 55,889. PRIMARY SERVICE AREA POPULATION FOR SCLCH IS 302,901 WHICH REPRESENTS APPROXIMATELY 115,911 HOUSEHOLDS.GENDER: THE POPULATION OF MALES AND FEMALES IS NEARLY EQUAL - 49.7% (MALE) AND 50.3% (FEMALE)AGE: SERVICE AREA SHOWS A DOMINANCE OF PERSONS BETWEEN THE AGES OF 18 AND 64 (53.4%) WITH A MEDIAN AGE OF 36.1RACIAL AND ETHNIC DIVERSITY: THE POPULATION IN JEFFERSON AND BROOMFIELD COUNTIES IS PREDOMINANTLY WHITE, WITH HISPANIC ORIGIN FOLLOWING. PRIMARY SERVICE AREA PERCENTAGES SHOW 78.4% (WHITE) AND 27.7% (HISPANIC). OTHER RACES (ASIAN, BLACKS/AFRICAN AMERICAN AND AMERICAN INDIAN/ALASKA NATIVES) HAVE RELATIVELY SMALL PERCENTAGES. EDUCATION: WITHIN SERVICE AREA, 40,207 HOLD HIGH SCHOOL DIPLOMAS AND 43,464 HOLD BACHELOR'S DEGREES. 23,183 REPRESENT A GRADUATE DEGREE OR HIGHER. ADAMS COUNTY HAS ONE OF THE LOWEST EDUCATION LEVELS IN THE STATE WITH ONLY 81% HAVING A HIGH SCHOOL EDUCATION AND 20% WITH A BACHELOR DEGREE OR HIGHER.LANGUAGE: FOR JEFFERSON COUNTY 10.5% OF PERSONS AGE 5 YEARS AND OVER SPEAK A LANGUAGE OTHER THAN ENGLISH IN THE HOME; FOR BROOMFIELD THAT PERCENTAGE IS 12.2 AND ADAMS 26.2.ECONOMICS: THE MEDIAN HOUSEHOLD INCOME IS $62,890 FOR SERVICE AREA, COMPARED TO $61,303 FOR THE STATE. HOWEVER ADAMS COUNTY HAS ONE OF THE HIGHEST POVERTY RATES IN THE STATE AT 13.3% AND BROOMFIELD IS ONE OF THE LOWEST LEVELS IN THE STATE AT 4.9%.OVERALL HEALTH RANK: THIS MEASURE RANKS THE OVERALL HEALTH OF COUNTY CITIZENS FOR ALL COUNTIES IN COLORADO. THE RANKINGS ARE BASED ON A MODEL OF POPULATION HEALTH THAT EMPHASIZES THE MANY FACTORS THAT, IF IMPROVED, CAN HELP TO MAKE COMMUNITIES HEALTHIER PLACES TO LIVE, LEARN, WORK AND PLAY. FACTORS INCLUDED IN THE RANKING ARE HEALTH OUTCOMES, HEALTH FACTORS, POLICIES/PROGRAMS AND SOCIAL DETERMINANTS OF HEALTH. JEFFERSON RANKS 14TH; BROOMFIELD RANKS 2ND AND ADAMS RANKS 37TH.HEALTH BEHAVIORS: ADULT OBESITY IS 20% IN BROOMFIELD COUNTY; COMMUNITY HEALTH NEEDS SHOWING PREVALENCE:JEFFERSON COUNTY- ACCESS TO CARE- OBESITY- BEHAVIORAL HEALTH- FALLS PREVENTIONBROOMFIELD COUNTY- ACCESS TO CARE- BEHAVIORAL HEALTH- OBESITY- CANCERADAMS COUNTY- ACCESS TO CARE- BEHAVIORAL HEALTH- SMOKING PART VI, LINE 5: SCL HEALTH COMMUNITY HOSPITAL IS A NATIONALLY RECOGNIZED INNOVATIVE LEADER IN THE DELIVERY OF EMERGENCY, INPATIENT AND DIAGNOSTIC MEDICAL HEALTH CARE THAT STRIVES TO BE THERE FOR ANYONE, ANYWHERE, ANYTIME.WE UNDERSTAND THAT SUPPORTING OUR PATIENTS AND THEIR FAMILIES AS THEY HEAL IS AN IMPORTANT PART OF HEALTH AND WELL-BEING. WE STRIVE TO OFFER PATIENT-CENTERED CARE AND OPERATIONALLY EFFICIENT FACILITIES THAT ARE STAFFED BY MEDICAL PROFESSIONALS WHO TREAT YOU LIKE THEIR OWN FAMILY. OUR COMMUNITY HOSPITAL PRIORITIZES LIMITED INPATIENT STAYS, EFFICIENT EMERGENCY ROOMS AND COST-EFFECTIVE PRICING IN A SMALLER-CAMPUS SETTING.AT AN SCL HEALTH COMMUNITY HOSPITAL, YOU WILL SEE A PHYSICIAN WITHIN MINUTES. OUR PROFESSIONAL TEAM WILL TREAT YOUR CONDITION WITH SPEED, COMPASSION AND MEDICAL EXPERTISE.ALTHOUGH MOST OF OUR PATIENTS ARE TREATED AND RELEASED THE SAME DAY, SOME CASES MAY REQUIRE AN OVERNIGHT STAY FOR OBSERVATION OR ONGOING CRITICAL CARE. WITH A STATE-OF-THE-ART FACILITY, COMFORTABLE ROOMS AND EXCELLENT AROUND-THE-CLOCK CARE, SCL HEALTH COMMUNITY HOSPITAL IS WELL-EQUIPPED TO OFFER SUPERIOR INPATIENT SERVICES. OR, WHEN IN THE BEST INTERESTS OF THE PATIENT, WE'LL HELP FACILITATE A SMOOTH TRANSFER TO THE APPROPRIATE SPECIALTY HOSPITAL.SCL HEALTH COMMUNITY HOSPITAL OFFERS PATIENT-CENTERED DIAGNOSTIC CARE THAT INCLUDES LABORATORY TESTING AND IMAGING SERVICES 24 HOURS A DAY, 7 DAYS A WEEK.SCL HEALTH COMMUNITY HOSPITAL OFFERS STATE-OF-THE-ART, PATIENT-CENTERED SURGICAL CARE THAT INCLUDES A DEDICATED TEAM AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK WITH INPATIENT ROOMS AVAILABLE IF NEEDED.AS PART OF THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM (SCL HEALTH), OUR NEW SCL HEALTH COMMUNITY HOSPITAL IS NATIONALLY RECOGNIZED INNOVATIVE LEADERS IN THE DELIVERY OF EMERGENCY, INPATIENT AND DIAGNOSTIC MEDICAL HEALTH CARE.THE MISSION OF SCL HEALTH COMMUNITY HOSPITAL IS TO INCREASE THE COMMUNITY'S ACCESS TO HIGH-QUALITY HEALTH CARE THROUGH AN EXPERIENCED STAFF AND STATE-OF-THE-ART RESOURCES.OUR GOAL IS TO OFFER THE QUALITY OF CARE WE WOULD EXPECT AND DEMAND FOR OUR OWN FAMILIES. A PATIENT-CENTERED APPROACH, STREAMLINED ADMITTING PROCEDURES, HIGHLY QUALIFIED PHYSICIAN AND MEDICAL SPECIALISTS AT EVERY LEVEL OF CARE, AND THE LATEST DIAGNOSTIC EQUIPMENT ARE JUST A FEW OF THE DISTINCTIONS WE OFFER.SCL HEALTH COMMUNITY HOSPITAL IS COMMITTED TO PROVIDING OUR PATIENTS WITH THE FINEST EMERGENCY CARE, ANY HOUR OF THE DAY OR NIGHT. OUR PHYSICIANS AND HIGHLY TRAINED NURSES AND TECHNICIANS OFFER OUR PATIENTS THE ASSURANCE THAT WHILE IN OUR HANDS, THEY'LL BE TREATED PROMPTLY, RESPECTFULLY AND EFFECTIVELY.SCL HEALTH COMMUNITY HOSPITAL IS WELL EQUIPPED TO HANDLE ANY EMERGENCY, WITH THE KIND OF EQUIPMENT AND SERVICES YOU WOULD EXPECT FROM A TOP-QUALITY HOSPITAL. PART VI, LINE 6: SCL HEALTH COMMUNITY HOSPITAL IS AFFILIATED WITH SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS). SCLHS AND ITS AFFILIATED ENTITIES HAVE A COMMON CALLING AND MISSION: "WE REVEAL AND FOSTER GOD'S HEALING LOVE BY IMPROVING THE HEALTH OF THE PEOPLE AND COMMUNITIES WE SERVE, ESPECIALLY THOSE WHO ARE POOR AND VULNERABLE." WE STRIVE TO PROVIDE HIGH-QUALITY, COMPASSIONATE AND AFFORDABLE HEALTHCARE IN EACH OF OUR HOSPITAL SITES AND THEIR RESPECTIVE COMMUNITIES, AS WELL AS IN A VARIETY OF OUTPATIENT SETTINGS AND IN THE HOME. SCLHS IS A FAITH-BASED, NONPROFIT HEALTHCARE ORGANIZATION THAT OPERATES NINE HOSPITALS, TWO SAFETY NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES - COLORADO, KANSAS AND MONTANA. THE HEALTH SYSTEM INCLUDES MORE THAN 15,000 FULL-TIME ASSOCIATES AND MORE THAN 500 EMPLOYED PROVIDERS.AS OUR HEALTH SYSTEM GROWS, WE'RE LEVERAGING THAT GROWTH TO ACHIEVE BENEFITS OF SCALE - IDENTIFYING COST AND OTHER ADVANTAGES THAT WE GAIN DUE TO OUR SIZE. WE'RE ALSO WORKING TO STREAMLINE AND UNIFY OUR SYSTEM-WIDE PROCESSES TO ELIMINATE COSTLY DUPLICATION OF EFFORT. WE ACTIVELY ENCOURAGE OUR PEOPLE TO PURSUE CREATIVE IDEAS THAT IMPROVE EFFICIENCY, SERVICE AND THE OVERALL CARE EXPERIENCE. WHEN OUR ASSOCIATES OR LEADERSHIP TEAMS IDENTIFY BEST PRACTICES IN ANY AREA OF CARE, WE RAPIDLY REPLICATE THOSE ACROSS ALL CARE SITES.SCLHS AND ITS AFFILIATED ENTITIES PROMOTE THE HEALTH OF THEIR COMMUNITIES BY DELIVERING DIRECT HIGH QUALITY HEALTHCARE SERVICES THAT ARE RESPONSIVE TO THE NEEDS OF ITS PATIENTS AND THEIR FAMILIES. THIS INCLUDES COORDINATING COMMUNITY BENEFIT PROCESSES, PROVIDING GUIDANCE WITH COMMUNITY NEEDS ASSESSMENTS, AND ESTABLISHING CONSISTENT FINANCIAL ASSISTANCE AND CHARITY CARE POLICIES AND PROCEDURES. ADDITIONALLY, SCLHS BENEFITS AFFILIATES THROUGH QUALITY IMPROVEMENT AND PERFORMANCE EXCELLENCE INITIATIVES; SYSTEM-WIDE INFORMATION TECHNOLOGY IMPLEMENTATION AND INFRASTRUCTURE; STRATEGIC AND OPERATIONS DIRECTION AND OVERSIGHT; SUPPLY CHAIN MANAGEMENT AND PURCHASING; FINANCE ADMINISTRATION AND REVENUE CYCLE SUPPORT, BENEFITS ADMINISTRATION, RISK MANAGEMENT; DISASTER PLANNING AND CRISIS ASSISTANCE, CENTRAL CASH MANAGEMENT AND INVESTMENT, INTERNAL AUDIT, LEGAL SERVICES, TAX SERVICES AND MISSION INTEGRATION. 1 ST VINCENT HEALTHCARE 1233 NORTH 30TH STREET BILLINGS MT 59101 810232124 501(C)(3) 14000000 SUPPORT MISSION MOUNT SAINT VINCENT HOME 4159 LOWELL BOULEVARD DENVER CO 80211 840405260 501(C)(3) 1029493 SUPPORT MISSION MARIAN CLINIC 1001 SW GARFIELD AVE TOPEKA KS 66604 481046905 501(C)(3) 211317 SUPPORT MISSION CARITAS CLINICS 818 NORTH 7TH STREET LEAVENWORTH KS 66048 481009910 501(C)(3) 206722 SUPPORT MISSION 4 SECONDARY EDUCATION SCHOLARSHIP 31 62790 PART I, LINE 2: SCLHS' MISSION DEPARTMENT REQUIRES WRITTEN STATEMENTS THREE TIMES A YEAR REGARDING THE PROGRESS AND STATUS OF THE GRANT. X 0 1 X X X X X X 1 1 0 0 0 0 0 1 0 MICHAEL SLUBOWSKI SYSTEM PRESIDENT AND CEO 1120589 0 260730 0 570363 0 19080 0 15679 0 1986441 0 0 0 LYDIA JUMONVILLE TREASURER & CFO/EVP 578202 0 126835 0 17412 0 210888 0 19083 0 952420 0 0 0 ROSLAND MCLEOD SECRETARY/SVP CHIEF LEGAL OFFICER 455055 0 96746 0 16230 0 127498 0 24722 0 720251 0 0 0 MICHAEL TAYLOR CHIEF OPERATING OFF-HOSP OPS 666411 0 0 0 195970 0 113501 0 20228 0 996110 0 0 0 WILLIAM ANDERSON SVP-CHIEF HUMAN RESOURCES OFCR 358800 0 81893 0 107994 0 18047 0 20272 0 587006 0 0 0 STEVEN CHYUNG CHIEF STEWARDSHP & TRNFMTN OFC 357629 0 70877 0 16066 0 64845 0 27670 0 537087 0 0 0 SHAWN DUFFORD SVP CHIEF MEDICAL OFFICER SYS 450362 0 69601 0 9580 0 77580 0 21801 0 628924 0 0 0 TAJQUAH HUDSON SVP-CHIEF STRAT-BUS DEV OFCR 424527 0 83532 0 34205 0 118074 0 8383 0 668721 0 0 0 RICHARD LOPES EVP CHF POP HEALTH OFFCR 1/1-10/9 520599 0 137331 0 144779 0 19080 0 17558 0 839347 0 0 0 WILLIAM PACK VP FINANCE OPERATIONS 356975 0 57307 0 4954 0 61680 0 22141 0 503057 0 0 0 DAVID PECORARO SVP-CHIEF INFORMATION OFFICER 405317 0 89673 0 746527 0 19080 0 16749 0 1277346 0 354158 0 DAVID PRINGLE SVP MISSION INTEGRATION 277116 0 0 0 61314 0 33500 0 14594 0 386524 0 0 0 TROY SPRING VP REVENUE CYCLE 196667 0 0 0 39462 0 19583 0 21980 0 277692 0 0 0 GERALDINE TOWNDROW SVP CHIEF NURSING OFFICER SYS 276279 0 53562 0 59974 0 14514 0 8276 0 412605 0 0 0 DEBORAH WELLE-POWELL VP ACCT HLTH PYR CONTR STRT 1/1-6/1 148920 0 47811 0 2082 0 44164 0 3687 0 246664 0 0 0 MARK WILKINSON VP TREASURER 257604 0 40066 0 1895 0 42780 0 9366 0 351711 0 0 0 CHRISTINE WOOLSEY SVP AND CHIEF COMM-MKTG OFCR 306666 0 65427 0 116037 0 76782 0 15417 0 580329 0 102932 0 J GRANT WICKLUND PRESIDENT-CEO ELMC 437957 0 142365 0 274103 0 232149 0 24289 0 1110863 0 248291 0 DAVID HAMM PRESIDENT-CEO EGSM 423111 0 101927 0 250502 0 183639 0 18939 0 978118 0 229028 0 MICHAEL MCBRIDE PRESIDENT SMGJ 1/1-12/6 377336 0 83509 0 268835 0 148928 0 17217 0 895825 0 0 0 BAIN FARRIS PRESIDENT - SJH 1/1-7/15 261070 0 116652 0 207287 0 19080 0 11229 0 615318 0 0 0 STEVE LOVELESS PRESIDENT CEO SVH-MT REG 441345 0 109303 0 12936 0 70757 0 17988 0 652329 0 0 0 EDWARD BARKER FORMER OFFICER 0 0 0 0 247504 0 0 0 0 0 247504 0 0 0 JOHN BYRNES MD FORMER KEY EMPLOYEE 0 0 0 0 124443 0 0 0 4585 0 129028 0 0 0 ROBERT LADENBURGER FORMER KEY EMPLOYEE 0 0 0 0 703851 0 0 0 12600 0 716451 0 0 0 IRMA NAPOLI FORMER KEY EMPLOYEE 0 0 0 0 163571 0 0 0 2742 0 166313 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS THE ORGANIZATION AND RELATED ORGANIZATIONS ALLOW FOR CERTAIN TAX INDEMNIFICATION AND GROSS-UP PAYMENTS IN THE INSTANCES OF RELOCATION. THESE AMOUNTS ARE TREATED AS TAXABLE COMPENSATION. THE INDIVIDUALS THAT RECEIVED TAX GROSS-UP PAYMENTS IN 2015 WERE: WILLIAM ANDERSON - $2,397, DAVID PRINGLE - $3,486, TROY SPRING - $1,922, MICHAEL TAYLOR - $43,010. PART I, LINE 1B TAX INDEMNIFICATION AND GROSS-UP PAYMENTS - WRITTEN POLICY THE ORGANIZATION AND RELATED ORGANIZATIONS DO NOT HAVE A FORMAL WRITTEN POLICY FOR TAX INDEMNIFICATION AND GROSS-UP PAYMENTS. HOWEVER, BEFORE ANY TAX INDEMNIFICATION AND GROSS-UP PAYMENTS ARE MADE; PROPER APPROVAL FROM THE EMPLOYEE'S MANAGER IS REQUIRED. IN ADDITION, APPROVAL IS ALSO REQUIRED FROM HUMAN RESOURCES. PART I, LINE 3 COMPENSATION OF THE ORGANIZATION'S CEO/EXECUTIVE DIRECTOR COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH) BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. PART I, LINES 4A-B SCHEDULE J, PART I, LINE 4A THE ORGANIZATION AND RELATED ORGANIZATIONS PERIODICALLY INCUR SEVERANCE PAYMENTS TO FORMER EMPLOYEES. THE INDIVIDUALS AND THE AMOUNTS PAID FOR SEVERANCE IN 2015 WERE: EDWARD BARKER - $247,504, JOHN BYRNES - $120,515, ROBERT LADENBURGER - $696,280, IRMA NAPOLI - $161,039. SCHEDULE J, PART I, LINE 4B PAYMENTS FROM NONQUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN THE ORGANIZATION PROVIDES NONQUALIFIED DEFERRED COMPENSATION PLANS (NQDC) KNOWN AS SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM (SERP) FOR EXECUTIVES (SENIOR MANAGEMENT) TO COMPENSATE FOR REGULATORY IMPOSED LIMITATIONS IN QUALIFIED RETIREMENT PLANS AND TO PROVIDE A BENEFIT CONSISTENT WITH OTHER NOT FOR PROFIT HEALTH SYSTEMS. THESE PLANS ENABLE THE EXECUTIVE TO EARN BENEFITS DURING EACH YEAR THAT THEY PARTICIPATE. IN 2014, IN AN EFFORT TO REDUCE LONG-TERM COST AND HAVE GREATER CONTROL OVER FINANCIAL RISK, THE SERP WAS CONVERTED FROM A DEFINED BENEFIT (DB) TO A DEFINED CONTRIBUTION (DC) DESIGN. CERTAIN MEMBERS OF SENIOR MANAGEMENT WHOSE BENEFITS WERE CONVERTED FROM DB TO DC WOULD HAVE BEEN DISPROPORTIONATELY AND NEGATIVELY AFFECTED BY THE CHANGE, SO THE COMMITTEE DETERMINED IT WOULD BE APPROPRIATE TO GRANT "TRANSITION CREDITS" IN ORDER TO MITIGATE THE NEGATIVE IMPACT OF THE CHANGE ON THEIR RETIREMENT BENEFITS. THIS IS A COMMON APPROACH EMPLOYED BY OTHER ORGANIZATIONS UNDERGOING A SIMILAR TRANSITION. THE TRANSITION CREDITS VEST IN ACCORDANCE WITH THE TERMS OF THE DC SERP (I.E., AFTER THREE YEARS) AND ARE PAID TO THE EXECUTIVE UPON VESTING. NQDC SERP PLANS PRIOR TO 2014 PRIOR TO 2014, THE ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS 5 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN AFTER DECEMBER 31, 2013. THE ORGANIZATION HAS DETERMINED THAT THESE BENEFITS SHOULD BE SUBJECT TO TAXATION AS THE AMOUNTS ARE VESTED RATHER THAN WHEN THEY ARE RECEIVED. AS A RESULT, THE TOTAL NONQUALIFIED RETIREMENT PLAN BENEFITS, WHICH WERE VESTED IN THE CURRENT YEAR, ARE CONSIDERED TAXABLE AND THUS WERE TAXED TO THE PARTICIPANTS. FOR SOME OF THE PARTICIPANTS, AN AMOUNT EQUAL TO THE PARTICIPANT'S EXPECTED INCOME TAX LIABILITY WAS WITHDRAWN FROM THE PARTICIPANT'S ACCOUNT AND REMITTED TO THE FEDERAL AND STATE GOVERNMENTS AS WITHHOLDING ON THE TAXABLE BENEFIT. NO CASH PAYMENT IS MADE DIRECTLY TO THE PARTICIPANT AND THE REMAINING BENEFIT AMOUNT STAYS IN THE RETIREMENT PLAN. THE AMOUNTS WITHDRAWN FROM THE PLAN FOR TAXES IN 2015 WERE: DAVID PECORARO - $162,629, CHRISTINE WOOLSEY - $43,371, J. GRANT WICKLUND - $113,937, DAVID HAMM - $105,105. FOR AMOUNTS CONTRIBUTED TO THE NQDC SERP PLAN PRIOR TO 2014, VESTED AMOUNTS ARE PAYABLE UPON THE END OF EMPLOYMENT. THE VESTED AMOUNTS WITHDRAWN INCLUDE AMOUNTS PREVIOUSLY TAXED TO THE RECIPIENT AND AMOUNTS TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. NQDC SERP PLANS STARTING IN 2014 STARTING IN 2014, THE ORGANIZATION'S NQDC SERP PLAN PROVIDED A BENEFIT TO ELIGIBLE PARTICIPANTS BASED ON A PERCENTAGE OF THEIR BASE COMPENSATION. THE VESTING PERIOD IS ROLLING 3 YEARS OR WHEN THE PARTICIPANT IS AGE 65 OR OLDER. THERE WERE NO CONTRIBUTIONS TO THIS PLAN BEFORE JANUARY 1, 2014. ANY DISTRIBUTIONS FROM THIS PLAN ARE REPORTED BELOW. STARTING IN 2014, FOR CONTRIBUTIONS TO THE NQDC SERP PLAN, CERTAIN PARTICIPANTS ARE VESTED OR BECAME VESTED IN THE PLAN DURING 2015. VESTED AMOUNTS ARE PAYABLE TO THE RECIPIENT. THE VESTED AMOUNTS ARE TAXABLE TO THE RECIPIENT IN THE CURRENT YEAR. THE TAXABLE AMOUNTS ARE INCLUDED ON THE RECIPIENT'S W-2. THE AMOUNTS WITHDRAWN FROM THE NQDC SERP PLANS IN 2015 WERE: MICHAEL SLUBOWSKI - $544,919, WILLIAM ANDERSON - $72,597, RICHARD LOPES - $441,401, DAVID PECORARO - $369,595, GERALDINE TOWNDROW - $47,049, MICHAEL MCBRIDE - $194,604, BAIN FARRIS - $478,849. IN ACCORDANCE WITH THE REQUIREMENTS OF SCHEDULE J, DEFERRED COMPENSATION EARNED OVER THE VESTING PERIOD IS REPORTED IN COLUMN C AND ANY AMOUNTS VESTED/PAID FROM A DEFERRED COMPENSATION PLAN ARE REPORTED IN COLUMN B(III). THUS, THE SAME AMOUNT WOULD BE REPORTED TWICE (FIRST WHEN IT ACCRUED DURING THE VESTING PERIOD AND AGAIN WHEN IT IS VESTED/PAID). THIS RESULTS IN THE APPEARANCE OF CERTAIN EXECUTIVES RECEIVING MORE THAN THEY ARE ACTUALLY PAID FROM THE DEFERRED COMPENSATION PLANS. COLUMN F IS INTENDED TO RECONCILE THIS DUPLICATION (BY REPORTING AMOUNTS INCLUDED IN COLUMN B(III) THAT HAD BEEN REPORTED AS DEFERRED COMPENSATION ON A SCHEDULE J FOR A PREVIOUS YEAR). HOWEVER, THE SIGNIFICANCE OF THE AMOUNTS LISTED IN COLUMN F IS OFTEN OVERLOOKED AND GIVEN THE COMPLEXITY OF THE SCHEDULE J REPORTING REQUIREMENTS, THE AMOUNTS SHOWN ARE EASILY MISUNDERSTOOD. TO DETERMINE TOTAL AMOUNT EARNED (RATHER THAN THE AMOUNT VESTED/PAID OUT) DURING THE YEAR, SUBTRACT THE AMOUNT IN COLUMN F FROM COLUMN E. PART I, LINE 7 OTHER NON-FIXED PAYMENTS THE AT RISK COMPENSATION PLAN WAS ESTABLISHED TO ENABLE THE HEALTH CARE SYSTEM AND ITS CARE SITES TO ATTRACT AND ENGAGE QUALIFIED LEADERS AND TO PROVIDE SUCH LEADERS WITH AN ADDITIONAL PERFORMANCE COMPENSATION OPPORTUNITY TO PROMOTE AND FURTHER ITS CHARITABLE MISSION, VISION, STRATEGIC PRIORITIES AND KEY INITIATIVES. THE PLAN OPERATES ON A CALENDAR-YEAR BASIS AND IS FUNDED EACH YEAR BY MEETING THRESHOLD LEVELS OF OPERATING INCOME. TARGET AWARD AMOUNTS ARE A PERCENTAGE OF LEADERS' BASE PAY AS DETERMINED BY THEIR SPECIFIC ROLE AT THE HEALTH CARE SYSTEM. ACTUAL AWARDS ARE PAID OUT BASED ON ATTAINMENT OF BOARD APPROVED GOALS, INCLUDING OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. AWARDS ARE BASED ON THE BOARD'S DETERMINATION ON HOW WELL THE HEALTH CARE SYSTEM PERFORMS RELATIVE TO THE PLAN'S STATED PERFORMANCE STANDARDS AND THE WEIGHT GIVEN TO EACH OF THE PERFORMANCE MEASURES AS DEFINED FOR THAT PLAN YEAR. THE AT RISK COMPENSATION PLANS ARE BASED ON A COMBINATION OF PERFORMANCE MEASURES. PERFORMANCE MEASURES INCLUDE OPERATING INCOME, STEWARDSHIP, PATIENT EXPERIENCE, EMPLOYEE SAFETY AND COMMUNITY BENEFIT/MISSION TARGETS. THE AT RISK COMPENSATION PLAN SHALL BE INTERPRETED, APPLIED AND ADMINISTERED AT ALL TIMES IN ACCORDANCE WITH CODE SECTION 409A AND GUIDANCE ISSUED THEREUNDER. THE HEALTH CARE SYSTEM RESERVES THE RIGHT TO AMEND OR TERMINATE THIS PLAN AT ANY TIME FOR ANY REASON. ADDITIONAL OFFICER AND BOARD DISCLOSURES THE SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) AND RELATED TAX EXEMPT ORGANIZATIONS CONSISTS OF NINE HOSPITALS, NINE FOUNDATIONS, TWO SAFETY-NET CLINICS, ONE CHILDREN'S MENTAL HEALTH CENTER AND MORE THAN 190 AMBULATORY SERVICE CENTERS IN THREE STATES. SCLHS AND RELATED TAX EXEMPT ORGANIZATIONS ADHERE TO GOVERNANCE EXCELLENCE STANDARDS INCLUDING TRANSPARENCY AND ACCOUNTABILITY. IN KEEPING WITH SCLHS' CORE VALUE OF STEWARDSHIP, NO BOARD MEMBER SERVING ON THE BOARD OF DIRECTORS (BOARD) IS COMPENSATED FOR THAT SERVICE. SCLHS' BOARD COMPENSATION COMMITTEE (COMMITTEE) HAS RETAINED THE SERVICES OF AN INDEPENDENT COMPENSATION ADVISOR. THE COMPENSATION ADVISOR IS RESPONSIBLE FOR ADVISING THE COMMITTEE ON ALL MATTERS RELATING TO EXECUTIVE COMPENSATION INCLUDING SUPPORTING THE COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. THE SISTERS WHO SERVE AS OFFICERS AND/OR BOARD MEMBERS ARE MEMBERS OF THE SISTERS OF CHARITY OF LEAVENWORTH (A RELIGIOUS ORDER OF WOMEN). THE SISTERS HAVE TAKEN VOWS OF POVERTY AND RECEIVE NO COMPENSATION, EXPENSE ACCOUNT ALLOWANCE, OR CONTRIBUTIONS TO BENEFIT PLANS FOR THEIR SERVICES TO THE HEALTH CARE SYSTEM. HOWEVER, A PAYMENT IS MADE DIRECTLY TO THE SISTERS OF CHARITY OF LEAVENWORTH FOR THE SERVICES OF THOSE WHO PERFORM PROFESSIONAL, ADMINISTRATIVE, AND OTHER SUCH SERVICES. A COLORADO HEALTH FACILITIES AUTHORITY 840752932 196474K58 2003-12-05 103035000 2/2/1994 & 9/9/1992 REFI 0 0 0 B COLORADO HEALTH FACILITIES AUTHORITY 840752932 19648AST3 2010-05-20 605460143 3/24/98, 11/13/02, 7/18/02 0 0 0 C MONTANA FACILITY FINANCE AUTHORITY 810302402 61204KHV6 2010-05-20 217535868 3/24/98 & 5/25/00 REFI+HOSP FAC 0 0 0 D KANSAS DEVELOPMENT FINANCE AUTHORITY 481066589 48542K5N5 2010-05-20 202625401 3/24/98 & 5/25/00 REFI+HOSP FAC 0 0 0 A 78705000 103035433 714438 22369995 79951000 2003 1 0 1 1 B 60145000 605500535 6836215 310650923 288013397 2010 1 1 1 1 C 25210000 217665906 2529281 94781550 120355075 2010 1 0 1 1 D 26735000 202625401 2488006 77008019 123129376 2010 1 0 1 1 A 0 1 1 1 0 0 1 0.03780 1 1 B 0 1 1 1 0 0 0 1 C 0 1 1 1 0 0.01500 0.00100 0.01600 0 0 1 D 0 1 1 1 0 1 1 0.64520 1 1 A 0 0 0 1 1 1 MERRILL LYNCH 20.000000000000 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 C 0 0 0 1 0 0 0 0 1 D 0 0 0 1 0 0 0 0 1 A 1 B 1 C 1 D 1 PART IV, LINE 2C REBATE COMPLETION DATES: A - COLORADO HEALTH FACILITIES AUTHORITY 2003 - 1/14/16 B - COLORADO HEALTH FACILITIES AUTHORITY 2010 - 7/2/15 C - MONTANA FACILITY FINANCE AUTHORITY 2010 - 7/2/2015 D - KANSAS DEVELOPMENT FINANCE AUTHORITY 2010 - 7/2/15 A - COLORADO HEALTH FACILITIES AUTHORITY 2011 - 9/17/15 B - KANSAS DEVELOPMENT FINANCE AUTHORITY 2012 - 5/12/15 C - COLORADO HEALTH FACILITIES AUTHORITY 2013 - 1/17/16 PART I COLUMN (E) & PART II LINE 3 ANY DIFFERENCE BETWEEN ISSUES PRICE REPORTED ON PART I, COLUMN (E) AND TOTAL PROCEEDS REPORTED ON PART II, LINE 3 IS DUE TO INVESTMENT EARNINGS. PART III, LINE 8B PROVIDENCE MEDICAL CENTER (KANSAS CITY, KS) AND SAINT JOHN HOSPITAL (LEAVENWORTH, KS) WERE SOLD APRIL 2013 AND REMEDIAL ACTIONS (REISSUANCE AND REDEMPTION) WERE TAKEN WITH RESPECT TO THE OUTSTANDING BONDS. A COLORADO HEALTH FACILITIES AUTHORITY 840752932 NONEAVAIL 2011-06-15 62620000 REFI 7/18/02 & 2/4/09 0 0 0 B KANSAS DEVELOPMENT FINANCE AUTHORITY 481066589 NONEAVAIL 2012-04-04 76290000 REFI 3/7/06 0 0 0 C COLORADO HEALTH FACILITY AUTHORITY 840752932 19648AN84 2013-11-12 302719375 CONSTRUCT HOSPITAL FACILITY 0 0 0 D KANSAS DEVELOPMENT FINANCE AUTHORITY 481066589 48542K5N5 2013-04-01 32775000 REISSUANCE OF KANSAS 2010 0 0 0 A 4000000 62620000 420000 62200000 2011 1 0 1 1 B 14520000 76290000 265000 76025000 2012 1 0 1 1 C 302719375 3005563 299713812 2013 0 0 1 1 D 32775000 32775000 2013 0 0 0 1 A 0 1 1 1 0 0 0 1 B 0 1 1 1 0 0.00100 0.00100 0 1 0.15070 1 1 C 0 1 1 1 0 0 0 1 D 0 1 1 1 0 0 0 1 A 0 0 0 1 1 0 0 0 1 B 0 0 0 1 1 1 DEUTSCHE BANK 25.000000000000 0 0 0 0 1 C 0 0 0 1 0 0 0 0 1 D 0 0 0 1 0 0 0 0 1 A 1 B 1 C 1 D 1 A COLORADO HEALTH FACILITIES AUTHORITY 840752932 NONEAVAIL 2014-11-20 85635000 REFI 4/9/02 & 12/5/03 0 0 0 B MONTANA FACILITY FINANCE AUTHORITY 364615144 NONEAVAIL 2014-11-20 61690000 REFI 12/5/03 & 3/7/06 0 0 0 A 85635000 85635000 2014 1 0 1 1 B 61690000 61690000 2014 1 0 1 1 A 0 1 1 1 0 0 0 1 B 0 1 1 1 0 0.01800 0.01800 0 0 1 A 0 1 0 0 1 1 MERRILL LYNCH 20.000000000000 0 0 0 0 1 B 0 1 0 0 1 0 0 0 1 A 1 B 1 FORM 990, PART III, LINE 2 IN 2015, SCL HEALTH PARTNERS, LLC, A 100% OWNED LIMITED LIABILITY COMPANY (LLC) WAS TRANSFERRED TO THE PARENT COMPANY, SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) FROM A SUBSIDIARY TAX EXEMPT ORGANIZATION, SCL HEALTH - FRONT RANGE, INC. THE TRANSFER WAS DONE TO BETTER MANAGE AND OPERATE THE TAX EXEMPT ACTIVITIES OF THE LLC. SCL HEALTH PARTNERS, LLC OWNS AND OPERATES A PORTION OF THE FOLLOWING HEALTHCARE RELATED ENTITIES: - DENVER WEST ENDOSCOPY CENTER, LLC (ENDOSCOPY SERVICES JOINT VENTURE) - LUTHERAN CAMPUS ASC, LLC (SURGERY CENTER SERVICES JOINT VENTURE) - SCL HEALTH - EMERUS, LLC (HOSPITAL SERVICES JOINT VENTURE) - SCLTDI JV, LLC (IMAGING SERVICES JOINT VENTURE) - NORTHERN ROCKIES HEALTHCARE ALLIANCE, LLC (ACCOUNTABLE CARE ORGANIZATION) - SCL HOME HEALTH SOLUTIONS, LLC (HOME HEALTHCARE SERVICES) ALSO IN 2015, SEVERAL PHYSICIAN CLINICS WERE TRANSFERRED TO THE ORGANIZATION FROM SUBSIDIARY TAX EXEMPT HOSPITAL ORGANIZATIONS. THE PHYSICIAN CLINICS WERE TRANSFERRED FROM ST. VINCENT HEALTHCARE AND ST. JAMES HEALTHCARE. THE TRANSFER WAS DONE TO BETTER MANAGE AND OPERATE THE TAX EXEMPT ACTIVITIES OF THE PHYSICIAN CLINICS. THE PHYSICIAN CLINICS ARE OPERATED UNDER THE FOLLOWING LLC'S WHICH ARE 100% OWNED BY SCLHS: - SCL HEALTH MEDICAL GROUP - BILLINGS, LLC (PHYSICIAN CLINIC SERVICES) - ST. JAMES HEALTHCARE PHYSICIAN BILLING, LLC (PHYSICIAN CLINIC SERVICES) FORM 990, PART VI, SECTION A, LINE 6 THE MEMBERS OF SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCLHS) SHALL BE THE MEMBERS OF LEAVEN MINISTRIES. THE MEMBERS OF LEAVEN MINISTRIES SHALL SERVE AS MEMBERS OF SCLHS DURING THEIR TERMS OF OFFICE AS MEMBERS OF LEAVEN MINISTRIES. FORM 990, PART VI, SECTION A, LINE 7A THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF THE CORPORATION AND THE CHAIR OF LEAVEN MINISTRIES, OR HIS/HER DESIGNEE, SHALL BE EX-OFFICIO MEMBERS OF THE BOARD WITH FULL VOTING RIGHTS. THE CHAIR OF LEAVEN MINISTRIES SHALL APPOINT AN ADDITIONAL MEMBER OF THE CORPORATION TO SERVE ON THE BOARD OF DIRECTORS OF THE CORPORATION. THE BOARD OF DIRECTORS SHALL ENSURE THE PRESENCE OF REPRESENTATIVES NOMINATED BY THE PARTICIPATING ENTITIES ON THIS BOARD AND ON THE BOARD OF ANY CORPORATION OF WHICH THIS CORPORATION IS A CONTROLLING MEMBER. EXCEPT FOR EX-OFFICIO MEMBERS OF THE BOARD OF DIRECTORS, THE MEMBERS SHALL APPOINT DIRECTORS AT THE ANNUAL MEETING OF THE MEMBERS. A SLATE OF NAMES PROPOSED BY A NOMINATING COMMITTEE OF THE BOARD OF DIRECTORS FOR APPOINTMENT AS DIRECTORS SHALL BE SUBMITTED TO THE MEMBERS BY THE CHAIRPERSON OF THE BOARD, PROVIDED, HOWEVER, THAT THE MEMBERS MAY APPOINT INDIVIDUALS AS DIRECTORS WHO HAVE NOT BEEN NOMINATED BY THE NOMINATING COMMITTEE. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS OF THE CORPORATION SHALL BE THE MEMBERS OF LEAVEN MINISTRIES. THE MEMBERS OF LEAVEN MINISTRIES SHALL SERVE AS MEMBERS OF THE CORPORATION DURING THEIR TERM OF OFFICE AS MEMBERS OF LEAVEN MINISTRIES. IN ADDITION TO ALL MATTERS REQUIRED BY LAW OR BY THE ARTICLES OF INCORPORATION OR OTHER PROVISIONS OF THESE BYLAWS WHICH ARE REQUIRED TO BE PERFORMED BY THE MEMBERS, THE MEMBERS SHALL HAVE THE SOLE PREROGATIVE TO ACT UPON ANY OF THE FOLLOWING MATTERS AND, IF ANY ACTION WITH RESPECT TO ANY OF THE FOLLOWING IS INITIATED BY A BODY OTHER THAN THE MEMBERS, IT SHALL NOT BECOME EFFECTIVE UNTIL APPROVED BY AN AFFIRMATIVE VOTE OF THE MEMBERS: TO ESTABLISH/APPROVE THE MISSION/PHILOSOPHY OF THIS CORPORATION AND ANY CORPORATION OF WHICH THIS CORPORATION IS THE CONTROLLING MEMBER; TO ADOPT, AMEND OR REPEAL THE ARTICLES OF INCORPORATION OR BYLAWS OF THIS CORPORATION AND THE ARTICLES AND BYLAWS OF ANY CORPORATION OF WHICH THIS CORPORATION IS THE CONTROLLING MEMBER; TO FIX THE NUMBER OF DIRECTORS OF THIS CORPORATION AND APPOINT THE CORPORATION'S BOARD OF DIRECTORS, AFTER RECEIVING RECOMMENDATIONS FROM THE BOARD, PROVIDED THAT THE MEMBERS' APPOINTMENT AUTHORITY SHALL NOT BE LIMITED TO THE NOMINATIONS RECEIVED; TO REMOVE, WITH OR WITHOUT CAUSE, AFTER CONSULTATION WITH THE BOARD OF DIRECTORS, ANY MEMBER OF THE BOARD OF THIS CORPORATION; TO APPOINT AND REMOVE, WITH OR WITHOUT CAUSE, AFTER CONSULTATION WITH THE BOARD OF DIRECTORS, THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF THIS CORPORATION; TO APPROVE FOR THIS CORPORATION, OR FOR ANY CORPORATION OF WHICH THIS CORPORATION IS THE CONTROLLING MEMBER, THE INCURRENCE OF INDEBTEDNESS OR THE SALE, TRANSFER, ASSIGNMENT, OR ENCUMBERING OF THE ASSETS, PURSUANT TO POLICIES ESTABLISHED FROM TIME TO TIME BY THE MEMBERS OF THIS CORPORATION; TO APPROVE THE MERGER, DISSOLUTION OR CORPORATE RESTRUCTURING OF THIS CORPORATION OR ANY CORPORATION OF WHICH THIS CORPORATION IS THE CONTROLLING MEMBER. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY THE TAX DEPARTMENT. THE FORM 990 IS REVIEWED BY SENIOR MANAGEMENT. A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO THE FILING OF THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. ANY QUESTIONS ARE ADDRESSED TO THE TAX DIRECTOR OF SCLHS PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. THE FORM 990 WAS ALSO REVIEWED BY AN OUTSIDE ACCOUNTING FIRM. FORM 990, PART VI, SECTION B, LINE 12C MONITORING AND ENFORCEMENT OF COMPLIANCE WITH CONFLICT OF INTEREST POLICY SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH) REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES ITS CONFLICT OF INTEREST POLICY BY PROVIDING EDUCATION AND TRAINING FOR ITS EMPLOYEES, STAFF, OFFICERS AND DIRECTORS. PERSONS CONSIDERED TO BE IN AN INFLUENTIAL POSITION, SUCH AS BOARD MEMBERS, OFFICERS, PHYSICIANS, EXECUTIVES AND MANAGERS ARE ALL REQUIRED TO COMPLETE A CONFLICT OF INTEREST STATEMENT ON AN ANNUAL BASIS TO DISCLOSE ANY POTENTIAL CONFLICT ISSUES. THESE STATEMENTS ARE CAREFULLY REVIEWED BY THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT AND APPROPRIATE LEADERSHIP. A REPORT IS PROVIDED TO SCLHS' PRESIDENT/CEO AND THE BOARD OF DIRECTORS. THE BUSINESS AND AFFAIRS OF SCL HEALTH WILL AT ALL TIMES BE CONDUCTED IN A MANNER THAT IS SOLELY IN THE BEST INTERESTS OF SCL HEALTH AND NOT BE INFLUENCED BY CONFLICTING INTERESTS OF PERSONS RESPONSIBLE FOR ADMINISTERING THOSE AFFAIRS. THE EXISTENCE OF ANY CONFLICTS OF INTEREST WILL BE DISCLOSED AND THE PROCEDURES SET FORTH HEREIN WILL BE FOLLOWED. CERTAIN TRANSACTIONS SUGGESTIVE OF A CONFLICT OF INTEREST ARE PROHIBITED. ANY PERSON IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER SCL HEALTH IS CONSIDERED AN INTERESTED PERSON. THIS TERM INCLUDES, BUT IS NOT LIMITED TO THE FOLLOWING: - BOARD MEMBERS, BOARD COMMITTEE MEMBERS, OFFICERS AND DIRECTORS; - SENIOR LEADERS AND EXECUTIVES (CEO, PRESIDENT, SVP, VP, EXECUTIVE DIRECTORS); - EMPLOYED PHYSICIANS AND PHYSICIANS IN MEDICAL STAFF LEADERSHIP ROLES (E.G., DEPARTMENT CHAIRS, MEMBERS OF MEDICAL STAFF COMMITTEES); - MEDICAL DIRECTORS OF CLINICAL PROGRAMS THAT ASSESS, REVIEW, RECOMMEND OR REQUEST PURCHASE OF ANY SPECIFIC PHARMACEUTICAL PRODUCTS, MEDICAL DEVICES, SUPPLIES AND/OR EQUIPMENT; - DEPARTMENT DIRECTORS AND MANAGERS; AND - OTHER SELECT INDIVIDUALS IDENTIFIED BY LEADERSHIP WHICH MAY INCLUDE, BUT IS NOT LIMITED TO, SUPPLY CHAIN AND FINANCE. UPON BECOMING AN INTERESTED PERSON AND ON AN ANNUAL BASIS, INTERESTED PERSONS ARE REQUIRED TO DISCLOSE ANY RELATIONSHIPS THAT CONSTITUTE OR MIGHT LEAD TO A CONFLICT OF INTEREST BY COMPLETING THE CURRENT CONFLICT OF INTEREST AND GIFT DISCLOSURE STATEMENT ("STATEMENT") AS APPROVED BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER. THE CHIEF INTEGRITY AND COMPLIANCE OFFICER WILL OVERSEE THE REVIEW OF THE STATEMENTS AND THE RESOLUTION OF ANY IDENTIFIED CONFLICTS OF INTEREST AND ALERT THE SCL HEALTH CEO AND/OR THE CHAIR OF THE SCL HEALTH BOARD OF DIRECTORS TO ANY ITEMS OF CONCERN. WHEN AN INTERESTED PERSON BECOMES AWARE OF A CONFLICT OF INTEREST WHICH HAS NOT BEEN DISCLOSED ON A STATEMENT, HE OR SHE SHALL CONTACT THE LOCAL COMPLIANCE AND PRIVACY OFFICER OR THE CHIEF INTEGRITY AND COMPLIANCE OFFICER, OBTAIN A STATEMENT FORM, COMPLETE AND RETURN IT TO THE SCL HEALTH INTEGRITY AND COMPLIANCE DEPARTMENT. WHENEVER AN INTERESTED PERSON BECOMES AWARE THAT AN ARRANGEMENT WITH RESPECT TO WHICH HE OR SHE HAS A CONFLICT OF INTEREST IS BEING CONSIDERED, THE INTERESTED PERSON MUST DISCLOSE ALL MATERIAL FACTS CONCERNING THE EXISTENCE AND NATURE OF THE CONFLICT OF INTEREST TO HIS OR HER SUPERVISOR (IF AN EMPLOYEE OTHER THAN THE ORGANIZATIONS SCL HEALTH CEO) OR TO THE APPLICABLE BOARD OR COMMITTEE CHAIR (IF THE SCL HEALTH CEO OR A BOARD OR COMMITTEE MEMBER), EVEN IF THE CONFLICT OF INTEREST HAS BEEN PREVIOUSLY DISCLOSED. WITH REGARD TO EMPLOYEES OTHER THAN THE SCL HEALTH CEO, THE INTERESTED PERSON'S SUPERVISOR WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. WITH REGARD TO THE SCL HEALTH CEO AND BOARD OR COMMITTEE MEMBERS, THE REMAINING MEMBERS OF THE BOARD OR COMMITTEE WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. PERSON(S) RESPONSIBLE FOR THE DETERMINATION SHOULD OBTAIN FURTHER GUIDANCE FROM THE SCL HEALTH INTEGRITY AND COMPLIANCE OR LEGAL DEPARTMENTS. UPON MAKING HIS OR HER DISCLOSURE, THE INTERESTED PERSON WILL LEAVE THE MEETING OR OTHERWISE REMOVE HIM OR HERSELF FROM THE DELIBERATIONS OR OTHER DECISION-MAKING PROCESS UNTIL SUCH TIME AS A DETERMINATION IS REACHED. IF A DETERMINATION HAS BEEN MADE THAT NO CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON MAY BE PRESENT AND PARTICIPATE IN THE DELIBERATION REGARDING THE TRANSACTION OR ARRANGEMENT. HOWEVER, IF AN INTERESTED PERSON HAS BEEN DETERMINED TO HAVE A CONFLICT OF INTEREST, HE OR SHE MAY NOT PARTICIPATE IN THE DELIBERATION OR DECISION REGARDING THE TRANSACTION OR ARRANGEMENT; BE PRESENT DURING THE DELIBERATION OR DECISION-MAKING; OR BE ALLOWED TO MAKE A PRESENTATION PRIOR TO THE DELIBERATION AND DECISION-MAKING ACTIVITIES. WHEN AN INTERESTED PERSON HAS A CONFLICT OF INTEREST, THE DECISION-MAKER/DECISION-MAKING BODY CONSIDERING THE TRANSACTION OR ARRANGEMENT WILL TAKE REASONABLE MEASURES, PRIOR TO APPROVING OR ENTERING INTO THE TRANSACTION OR ARRANGEMENT, TO ENSURE THAT THE PROPOSAL IS IN SCL HEALTH'S BEST INTERESTS. THE PROPOSED TRANSACTION OR ARRANGEMENT MAY PROCEED IF THE DECISION-MAKER/DECISION-MAKING BODY, AFTER HAVING BEEN FULLY INFORMED OF THE MATERIAL FACTS ESTABLISHING THE CONFLICT OF INTEREST, DETERMINES THAT THE TRANSACTION OR ARRANGEMENT IS IN SCL HEALTH'S BEST INTERESTS AND IS FAIR AND REASONABLE. A MAJORITY VOTE OF THE DISINTERESTED DECISION-MAKERS IS REQUIRED WHEN A DETERMINATION IS MADE BY A BOARD, COMMITTEE OR OTHER DECISION-MAKING BODY. MANAGEMENT OF POTENTIAL CONFLICTS IS DONE BY THE CHIEF INTEGRITY AND COMPLIANCE OFFICER AND/OR CARE SITE COMPLIANCE AND PRIVACY OFFICERS AND REPORTED ANNUALLY TO THE CARE SITE LEADERSHIP COMMITTEES AND/OR EXECUTIVE INTEGRITY AND COMPLIANCE COMMITTEE, THE AUDIT COMMITTEE, ORGANIZATIONAL INTEGRITY AND COMPLIANCE COMMITTEE OF THE SCL HEALTH BOARD OF DIRECTORS. ANY REPORTED CONFLICTS OR POTENTIAL CONFLICTS WILL ALSO BE REPORTED TO AND REVIEWED BY THE SCL HEALTH TAX DIRECTOR FOR COMPLIANCE WITH THE FORM 990 TAX RETURN. FORM 990, PART VI, SECTION B, LINE 15 SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC. (SCL HEALTH) PROCESS FOR DETERMINING COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS THE RESPONSIBILITY OF THE COMPENSATION COMMITTEE. COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT IS MANAGED BY THE SCL HEALTH BOARD COMPENSATION COMMITTEE (COMMITTEE) ON BEHALF OF SCL HEALTH AND ALL OF ITS AFFILIATES. THE COMMITTEE REVIEWS AND APPROVES COMPENSATION ARRANGEMENTS OF THE OFFICERS AND SENIOR MANAGEMENT AND MAKES RECOMMENDATIONS TO SCL HEALTH'S BOARD FOR APPROVAL OF ANY CHANGES TO COMPENSATION FOR THE OFFICERS AND SENIOR MANAGEMENT. THE COMMITTEE'S REVIEW IS CONDUCTED IN A MANNER THAT IS INTENDED TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE INTERMEDIATE SANCTIONS RULES OF INTERNAL REVENUE CODE SECTION 4958. THE COMMITTEE CONDUCTS THE REVIEW WITH THE ASSISTANCE OF AN EXPERIENCED AND INDEPENDENT COMPENSATION CONSULTING FIRM THAT HAS DEEP NATIONAL EXPERTISE IN HEALTH SYSTEMS' EXECUTIVE COMPENSATION PROGRAMS AND LEVELS. THE COMMITTEE OBTAINS AND RELIES UPON CURRENT, COMPARABLE MARKET DATA FOR PEER ORGANIZATIONS PRIOR TO MAKING COMPENSATION RELATED DECISIONS. THE INFORMATION REVIEWED INCLUDES COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS, THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA SERVED BY SCL HEALTH AND CURRENT COMPENSATION SURVEYS COMPILED BY AN INDEPENDENT FIRM. CONSISTENT WITH THE PAY PHILOSOPHY SET BY SCL HEALTH'S BOARD, THE COMMITTEE EMPHASIZES THE IMPORTANCE OF ENSURING TOTAL REMUNERATION IS REASONABLE AND APPROPRIATE WHEN REVIEWING AND MAKING RECOMMENDATIONS WITH RESPECT TO COMPENSATION PACKAGES FOR THE OFFICERS AND SENIOR MANAGEMENT. AS PART OF THE REVIEW PROCESS, SCL HEALTH USES THE FOLLOWING IN ESTABLISHING THE COMPENSATION OF OFFICERS AND SENIOR MANAGEMENT. 1) COMPENSATION COMMITTEE 2) INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER ORGANIZATIONS 4) WRITTEN EMPLOYMENT CONTRACTS 5) COMPENSATION SURVEYS AND STUDIES 6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE THE ITEMS LISTED ABOVE SUPPORT THE COMPENSATION COMMITTEE'S EFFORTS TO ENSURE THAT THE LEVEL OF COMPENSATION PROVIDED TO ITS OFFICERS AND SENIOR MANAGEMENT IS REASONABLE, APPROPRIATE AND CONSISTENT WITH THE PAY PHILOSOPHY SET BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS, AND GOVERNING DOCUMENTS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: FAS 158 UNRECOGNIZED FROZEN DB PLAN -37,842,522. FAS 157 CREDIT RISK ADJUSTMENT 50,167. EQUITY TRANSFERS TO/FROM SUBSIDIARIES 3,363,763. CHANGE IN SELF INSURED LIABILITY 753,322. 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