2016-05-16T13:30:05-05:00 2015-06-30 BKD LLP 910 E ST LOUIS 200/PO BOX 1190 SPRINGFIELD MO 658062523 990 2014-07-01 250585280 ELK REGIONAL HEALTH CENTER % LAURIE MACDONALD ELKR 8147888233 763 JOHNSONBURG ROAD ST MARYS PA 15857 LAURIE MACDONALD CFO 8147888233 2016-05-09 true Brian D Todd P00422601 4178658701 2014 2016-08-17 19:52:53Z PENN HIGHLANDS ELK ROSE CAMPBELL 763 JOHNSONBURG ROAD ST MARYS PA 15857 74074294 false X WWW.PHHEALTHCARE.ORG X 1999 PA PROVIDE PREMIER HEALTHCARE SERVICES INCLUDING INPATIENT AND OUTPATIENT CARE, FAMILY, INTERNAL AND GENERAL MEDICINE, AND LONG TERM CARE SERVICES TO OUR SURROUNDING COMMUNITIES. 14 13 929 164 63257 1530397 627995 73511921 64154063 184202 246841 628036 1023010 75854556 66051909 2125 0 0 0 41331759 31987634 0 0 0 33621751 31342484 74955635 63330118 898921 2721791 72010087 65359724 52551566 48095173 19458521 17264551 X ELK REGIONAL HEALTH CENTER D/B/A PENN HIGHLANDS ELK WILL BE THE HEALTHCARE PROVIDER OF CHOICE FOR OUR COMMUNITIES THROUGH A COMMITMENT TO SERVICE, QUALITY, PEOPLE, FINANCE AND GROWTH. true false 41623506 52664696 PHH ELK IS A SOLE COMMUNITY HOSPITAL PROVIDING PRIMARY ACUTE CARE MEDICAL SERVICES TO TWO CAMPUSES, THE ST. MARYS HEALTH CENTER IN ST. MARYS, PENNSYLVANIA, AND THE RIDGWAY HEALTH CENTER IN RIDGWAY, PENNSYLVANIA. OTHER PROGRAM SERVICES INCLUDE MEALS ON WHEELS, COMMUNITY NURSING, HEALTHY BEGINNINGS, AND SPORTS MEDICINE AND OTHER HEALTHCARE RELATED ACTIVITIES. ADDITIONALLY, THE HEALTH CENTER RECEIVED EHR INCENTIVE PAYMENTS THROUGH THE MEANINGFUL USE PROGRAM. 10314533 10754047 PHH ELK PROVIDES A 138-BED LONG TERM CARE FACILITY SERVING THE NEED OF ELK AND CAMERON COUNTIES AND THE SURROUNDING COMMUNITIES. WE ARE AT A 90% OCCUPANCY RATE. WE PROVIDE SOCIAL SERVICES AND RESIDENT ACTIVITIES. OUR TEAM OF QUALIFIED PROFESSIONALS PROVIDES 24-HOUR NURSING CARE AND REHABILITATIVE THERAPY WITH PERSONALIZED ATTENTION TO EACH RESIDENT. OTHER SERVICES OFFERED AT THE FACILITY INCLUDE HOSPICE SERVICES, TRANSPORTATION TO OUTSIDE HEALTH APPOINTMENTS, DIETICIANS, AND PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY. 1870943 735320 PHH ELK PROVIDES FAMILY, INTERNAL AND GENERAL MEDICINE, OB/GYN, AND ORTHOPEDIC PHYSICIAN OFFICES TO SERVE THE COMMUNITY. MANY OF THE OFFICES ARE LOCATED ON THE ERHC CAMPUS WITH A FEW OTHER LOCATIONS TO BETTER SERVE THE COMMUNITY. 53808982 true true false true false false false false false false true false false false true false false true false false false false false false false false true true false false true false false false false false true true true false false false false true true false false false true 58 0 true 929 true true true false false false false false false false false false X 14 13 false false false false true true true true true false false true true true true true true false false false X LAURIE MACDONALD 8147888743 763 JOHNSONBURG ROAD ST MARYS PA 15857 X ROSE CAMPBELL CEO/PRESIDENT 40.0 2.0 X X 233728 0 8076 FRANK SCUTELLA DIRECTOR ENDING 8/2014 1.0 1.0 X 0 0 0 DON FLEMING DIRECTOR 1.0 0.0 X 0 0 0 JOHN ROGERS DIRECTOR 1.0 1.0 X 0 0 0 FATHER ERIC VOGT DIRECTOR 1.0 0.0 X 0 0 0 FRANK STRAUB DIRECTOR 1.0 0.0 X 0 0 0 BILL CONRAD SECRETARY 1.0 1.0 X X 0 0 0 JUNE SORG DIRECTOR 1.0 0.0 X 0 0 0 BOB ORDIWAY CHAIRMAN 1.0 1.0 X X 0 0 0 JOANNE RYAN TREASURER 1.0 1.0 X X 0 0 0 JOHN PICCOLO DIRECTOR 1.0 0.0 X 0 0 0 DAVE NEDZINSKI VICE CHAIRMAN 1.0 1.0 X X 0 0 0 JIM RYAN DIRECTOR 1.0 0.0 X 0 0 0 MIKE RENAUD DIRECTOR 1.0 0.0 X 0 0 0 DR DAVID JOHE DIRECTOR 1.0 0.0 X 0 0 0 MARY ELLEN SMITH CNO 40.0 0.0 X 138127 0 11413 LAURIE MACDONALD CFO 40.0 0.0 X 181002 0 18338 CURT OBERHOLTZER HR DIRECTOR ENDING 12/2014 40.0 0.0 X 153118 0 4468 DR SCOTT MCKIMM PHYSICIAN 14.0 26.0 X 174212 398513 31980 DR CHRIS COLOSIMO PHYSICIAN 14.0 26.0 X 159305 439949 27847 MARK HOFFMAN DIRECTOR OF PHYSICAL THERAPY 40.0 0.0 X 110647 0 227 DAVID WOLFE PCM ADMINISTRATOR 40.0 0.0 X 110680 0 10861 GREG BAUER FORMER CEO/PRES ENDING 6/13 0.0 40.0 X 287457 0 15769 1548276 838462 128979 13 true true false SODEXO 6500 BROOKTREE RD WEXFORD PA 15090 NUTRITION/HSKPG SERV 2550668 ASSOCIATED CLINICAL LABORATORIES LAB SERVICES 619275 SMP HOME MEDICAL PHARMACY SERVICES 298314 AHSA NURSE STAFFING SERVI 264678 DELTA LOCUM TENENS PHYS LOCUM SERVICES 225969 16 79264 200000 348731 627995 NET PATIENT SERVICE REVENUE 621990 62412800 62412800 CAFETERIA INCOME 722514 374791 374791 EHR INCENTIVE REVENUE 621990 670171 670171 OTHER SERVICE REVENUE 621990 696301 696301 64154063 189382 189382 0 0 722297 215459 506838 0 506838 506838 7806401 57984 7806926 -525 57984 57459 57459 0 0 0 MOB HOUSEKEEPING 812900 49580 49580 PHYSICIAN BILLING 519100 13677 13677 GAIN ON INVESTMENT IN EQUITY INVESTEE 900099 452915 452915 516172 66051909 64154063 63257 1206594 X 0 0 0 0 348880 149540 199340 127299 127299 25208266 21759478 3448788 294716 263585 31131 3959505 3557608 401897 2048968 1832534 216434 0 232954 232954 131216 131216 0 0 32145 32145 7729511 5133349 2596162 0 6883203 6444638 438565 306964 306964 0 1340145 1181676 158469 59358 43827 15531 0 74714 36619 38095 904593 805533 99060 0 3914943 3486227 428716 541257 130318 410939 MEDICAL SUPPLIES & DRUGS 4735124 4735124 BAD DEBT 4196815 4196815 RECRUITING & RETENTION 129653 363 129290 LICENSES, DUES, SUBSCRIPTIONS 129197 51748 77449 692 692 63330118 53808982 9521136 0 35917 136161 5959952 6681219 417770 196984 7644242 5854592 0 0 0 0 0 0 667166 524317 1096990 959981 45549159 7323640 40762612 38225519 5452302 6636921 2572663 2758509 0 0 1500000 1500000 5900473 1885521 72010087 65359724 13642366 8460520 0 0 0 0 27445537 26106608 0 0 0 0 1752344 1300521 0 0 9711319 12227524 52551566 48095173 X 19042389 17084960 416132 179591 0 0 19458521 17264551 72010087 65359724 X 2721791 -121022 -4794739 X false true X true false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 2000 2000 false SCHEDULE C, PART II-B, LINE 1I LOBBYING ACTIVITIES: THE ORGANIZATION IS A MEMBER OF THE HOSPITAL COUNCIL OF WESTERN PENNSYLVANIA, OF WHICH 20% OF ITS $10,000 DUES ARE ATTRIBUTABLE TO LOBBYING, OR $2,000. 0 4342843 4342843 0 32407918 3641142 28766776 0 7633123 3518008 4115115 0 1165275 164490 1000785 38225519 0 ACCRUED PENSION LIABILITY 11317109 DUE TO THIRD PARTY PAYERS 910415 12227524 61747512 -121022 -4196815 -4317837 66065349 -13440 -13440 66051909 59348762 215459 215459 59133303 4196815 4196815 63330118 SCHEDULE D, PART X, LINE 2 UNCERTAIN TAX POSITIONS: 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 AMOUNTS INCLUDED ON LINE 1, BUT NOT FORM 990, PART VIII, LINE 12: $ (4,196,815) BAD DEBT EXPENSE SCHEDULE D, PART XI, LINE 4B OTHER REVENUE INCLUDED ON FORM 990, PART VIII, LINE 12, BUT NOT LINE 1: $ (215,459) RENTAL EXPENSE 202,019 TEMPORARILY RESTRICTED CONTRIBUTIONS ------------ $ ( 13,440) SCHEDULE D, PART XII, LINE 2D OTHER EXPENSES INCLUDED ON LINE 1, BUT NOT FORM 990, PART IX, LINE 25: $ 215,459 RENTAL EXPENSES SCHEDULE D, PART XII, LINE 4B OTHER EXPENSES INCLUDED ON FORM 990, PART IX, LINE 25, BUT NOT LINE 1: $ 4,196,815 BAD DEBT EXPENSE true true X true X true X true false false 70902 70902 0.00120 8878281 7500038 1378243 0.02330 8949183 7500038 1449145 0.02450 84206 33214 50992 0.00090 116834 17502 99332 0.00170 10600485 7797291 2803194 0.04740 850 850 10802375 7848007 2954368 0.05000 19751558 15348045 4403513 0.07450 true 4196815 407091 14094653 15350478 -1255825 X true false 1 1 ELK REGIONAL HEALTH CENTER 963 JOHNSONBURGH ROAD ST MARYS PA 15857 www.phhealthcare.org 010901 X X SKILLED NURSING PHYSICIAN OFFICES ELK REGIONAL HEALTH CENTER 1 false false true X X X X X 15 true true false true X SEE PART V, SECTION C true 12 true SEE PART V, SECTION C false false true X 100 300. true true X true X SEE PART V, SECTION C X SEE PART V, SECTION C true false X X true X false false SCHEDULE H, PART V, SECTION B, LINE 5 COMMUNITY INPUT: THE CHNA ASSESSMENT CONDUCTED BY TRIPP UMBACH FOR ELK REGIONAL HEALTH CENTER INCLUDED PRIMARY AND SECONDARY DATA COLLECTION, INTERVIEWS WITH COMMUNITY STAKEHOLDERS, FOCUS GROUPS WITH KEY AUDIENCES, AND A COMMUNITY PLANNING RETREAT. THE CHNA REPRESENTED A COMPREHENSIVE COMMUNITY-WIDE PROCESS WHERE ELK REGIONAL HEALTH CENTER CONNECTED WITH A WIDE RANGE OF PUBLIC AND PRIVATE ORGANIZATIONS SUCH AS EDUCATIONAL INSTITUTIONS, HEALTH-RELATED PROFESSIONALS, LOCAL GOVERNMENT OFFICIALS, HUMAN SERVICE ORGANIZATIONS, AND FAITH-BASED ORGANIZATIONS TO EVALUATE THE COMMUNITY'S HEALTH AND SOCIAL NEEDS. SCHEDULE H, PART V, SECTION B, LINE 6A CHNA CONDUCTED WITH OTHER HOSPITAL FACILITIES: - PH DUBOIS - PH BROOKVILLE - PH CLEARFIELD SCHEDULE H, PART V, SECTION B, LINE 7A WEBSITE WHERE CHNA IS AVAILABLE: https://www.phhealthcare.org/about/search~default.aspx?q=Financial assistance SCHEDULE H, PART V, SECTION B, LINE 10A WEBSITE WHERE IMPLEMENTATION STRATEGY IS AVAILABLE: https://www.phhealthcare.org/data/uploads/contentblock/2013%20Community%20 Needs%20Assessment%20PHE.pdf SCHEDULE H, PART V, SECTION B, LINE 11 ADDRESSING IDENTIFIED NEEDS: ELK REGIONAL HEALTH CENTER LISTENS TO COMMUNITY CONCERNS, ANALYZES HEALTHCARE UTILIZATION AND COSTS, EXPLORES ACCESS ISSUES, AND COLLABORATES WITH AND DEVELOPS EFFECTIVE PROGRAMS TO IMPROVE THE HEALTH OF THOSE IN WEST CENTRAL PENNSYLVANIA. BASED ON THE ABOVE COMMUNITY HEALTH NEEDS ASSESSMENT FINDINGS AND THE PRIORITIZED NEEDS, TWO COMMUNITY NEEDS WILL BE IMPLEMENTED AND FURTHER EXPLORED. IT IS IMPORTANT TO NOTE THAT WHILE "PROVIDER WORKFORCE" WAS NOT A COMMUNITY NEED THAT WAS A DIRECT RESULT FROM THE CHNA FINDINGS, ELK REGIONAL HEALTH CENTER WILL TACKLE THIS ISSUE IN ORDER TO INCREASE THE MANPOWER ISSUE AND ADDRESS THE WORKFORCE ISSUES THAT DIRECTLY AFFECT COMMUNITY RESIDENTS. TACKLING THE LACK OF AVAILABLE PHYSICIANS AND ALLIED HEALTH PROFESSIONALS IN THE AREA WILL ALSO HELP AND IMPROVE COMMUNITY RESIDENTS' ABILITY TO ACCESS AFFORDABLE HEALTHCARE SERVICES AND INFORMATION. ACCESS TO AFFORDABLE HEALTHCARE AND PREVENTIVE HEALTHCARE AND WELLNESS WERE IDENTIFIED AS DIRECT NEEDS FROM THE COMMUNITY HEALTH NEEDS ASSESSMENT. THE PROGRAMS DESCRIBED IN THE FOLLOWING IMPLEMENTATION PLAN ADDRESSES THE TARGETED HEALTH PRIORITIES THAT HOSPITAL LEADERS BELIEVE WILL HAVE THE MOST IMPACT WITHIN THE COMMUNITY. OF THE IDENTIFIED CHNA AND PRIORITIZED HEALTH NEEDS, ELK REGIONAL HEALTH CENTER WILL FOCUS ON TWO OF THE COMMUNITY REQUIREMENTS: 1) DENTAL CARE 2) PROVIDER WORKFORCE THE HEALTH NEEDS NOT BEING ADDRESSED FROM THE CHNA ARE STILL IMPORTANT FOR THE COMMUNITY. HOWEVER, ELK REGIONAL HEALTH CENTER REPORTED THAT THESE NEEDS ARE BEING ADDRESSED TO SOME DEGREE BY ORGANIZATIONS, PROGRAMS/INITIATIVES OPERATED BY REGIONAL AND LOCAL COMMUNITY-BASED ORGANIZATIONS LOCALLY. THROUGH ANALYSIS AND DISCUSSIONS RESULTING FROM A WORK SESSION HELD WITH REPRESENTATIVES FROM ELK REGIONAL HEALTH CENTER, THE FOLLOWING NEEDS IDENTIFIED IN THE CHNA THAT WILL NOT BE ADDRESSED ARE: 1) ACCESS TO AFFORDABLE HEALTHCARE 2) PREVENTIVE HEALTHCARE & WELLNESS ON APRIL 15, 2013, ELK REGIONAL HEALTH CENTER COMPLETED A WORK SESSION FACILITATED BY TRIPP UMBACH, WHERE AN IMPLEMENTATION PLAN WAS DISCUSSED AND CONCEPTS WERE DEVELOPED FOR THE NEEDS SELECTED BY ELK REGIONAL HEALTH CENTER. THE IMPLEMENTATION PLANNING PROCESS INCLUDED THE FOLLOWING STEPS: 1)SELECT KEY COMMUNITY NEEDS WHERE THE HOSPITAL WILL TAKE A LEADERSHIP ROLE 2) IDENTIFY GOALS AND KEY OBJECTIVES THAT WILL BE ACHIEVED THROUGH THE HOSPITAL'S LEADERSHIP IN THE SELECTED NEED AREAS 3) DEVELOP INVENTORIES OF INTERNAL HOSPITAL AS WELL AS EXTERNAL COMMUNITY RESOURCES ALREADY FOCUSED ON THE SELECTED NEED AREAS 4) DEVELOP SPECIFIC STRATEGIES TO BE IMPLEMENTED BY THE HOSPITAL TO ACHIEVE MEASURABLE COMMUNITY HEALTH IMPROVEMENT IN SELECTED NEED AREAS BASED ON THE CHNA FINDINGS, ELK REGIONAL HEALTH CENTER SHOULD ALSO COORDINATE ITS EFFORTS WITH THE PENNSYLVANIA'S STATE HEALTH IMPROVEMENT PLAN (SHIP). SHIP'S APPROACH IS A RECOGNIZED, COORDINATED, CONTINUOUS, AND INTEGRATED SYSTEM OF CARE; LINKING COMMUNITY HEALTH AND INDIVIDUAL HEALTH THAT WOULD CREATE THE MOST BENEFIT FOR THE LARGEST GROUP OF PEOPLE. SHIP PROVIDES INFORMATION AND DATA TO ASSIST COMMUNITIES, STAKEHOLDERS, AND OTHER STATE AGENCIES IN THEIR EFFORTS TO IDENTIFY ISSUES AND TRENDS THAT IMPACT OVERALL HEALTH. THREE MAIN COMPONENTS CHARACTERIZE SHIP'S FOCUS ON LINKING COMMUNITY HEALTH AND INDIVIDUAL HEALTH: 1. EMPHASIS ON HEALTH STATUS: PLANNING BY ADDRESSING THE ROOT OR UNDERLYING CAUSES OF PREMATURE DISEASE, DEATH, AND DISABILITY. 2. ENGAGEMENT OF COMMUNITY-BASED HEALTH IMPROVEMENT PARTNERSHIPS: ENGAGING PARTNERSHIPS, KNOWN AS SHIP-AFFILIATED PARTNERSHIPS, TO COORDINATE RESOURCES AND ADDRESS LOCAL HEALTH IMPROVEMENT ISSUES AND PRIORITIES IN MEANINGFUL WAYS. 3. ACCESS TO RELEVANT DATA: PROVIDING THE INFORMATION AND DATA NECESSARY FOR COMMUNITIES TO ASSESS LOCAL HEALTH STATUS AND TO DEVELOP LOCAL HEALTH IMPROVEMENT PRIORITIES. SHORT-TERM GOALS WILL BE MEASURED ANNUALLY IN EACH OF THE PRIORITY AREAS RELATED TO THE PROGRAM. ADJUSTMENTS AND MODIFICATIONS WILL BE MADE TO THE PROGRAM AS ISSUES EMERGE AND DEVELOP. IT IS IMPORTANT TO REPORT THAT ELK REGIONAL HEALTH CENTER WILL TAKE THE PRIMARY LEADER ROLE IN ADDRESSING DENTAL CARE AND PROVIDER WORKFORCE NEEDS. REGIONAL HOSPITALS AND OTHER COMMUNITY ORGANIZATIONS AND HEALTHCARE PROVIDERS WILL ALSO PROVIDE SUPPORTIVE ROLES TO OTHER HEALTH AND COMMUNITY ISSUES AS NEEDED. SCHEDULE H, PART V, SECTION B, LINES 16A & 16B FINANCIAL ASSISTANCE POLICY: https://www.phhealthcare.org/about/search~default.aspx?q=Financial assistance SCHEDULE H, PART V, SECTION B, LINE 22D MAXIMUM AMOUNTS CHARGED TO FAP-ELIGIBLE INDIVIDUALS: DURING FISCAL YEAR 15, THE INSURANCE RATE WAS CHARGED WHICH WAS THEN REDUCED BY THE FINANCIAL AID. THE ORGANIZATION IS IN THE PROCESS OF REVISING THIS POLICY FOR FISCAL YEAR 16. 5 ERHC RIDGWAY CAMPUS 304 METOXET STREET RIDGWAY PA 15853 MEDICAL EXPRESS PHYSICIAN OFFICES PHYSICAL THERAPY DR STOKES 275 E FOURTH STREET EMPORIUM PA 15834 PHYSICIAN OFFICES DR CARUSO 174 SKYLINE DRIVE KERSEY PA 15846 PHYSICIAN OFFICES DR MCKIMM 416 N BROAD ST EMPORIUM PA 15834 PHYSICIAN OFFICES DR SORG 1095 MILLION DOLLAR HIGHWAY ST MARYS PA 15857 PHYSICIAN OFFICES SCHEDULE H, PART I, LINE 7, COLUMN F PERCENT OF TOTAL EXPENSE: TO ARRIVE AT THE PERCENT OF TOTAL EXPENSES, THE DENOMINATOR WHICH EQUALS TOTAL OPERATING EXPENSES PER PART IX, LINE 25 OF THE FORM 990, WAS REDUCED BY BAD DEBT EXPENSE OF $4,196,815. SCHEDULE H, PART I, LINE 7 COSTING METHODOLOGY: THE COST TO CHARGE RATIO COMPUTED ON IRS WORKSHEET 2 WAS USED IN THE CALCULATIONS ON IRS WORKSHEETS 1 AND 3. WORKSHEET 6 USED ACTUAL COST DATA. SCHEDULE H, PART III, SECTION A, LINES 2, 3 & 4 BAD DEBT EXPENSE METHODOLOGY: THE MONTHLY BAD DEBT EXPENSE IS COMPRISED OF TWO COMPONENTS. ONE IS THE DIRECT WRITE OFFS FROM ACCOUNTS RECEIVABLE (THE 5500 ACCOUNTS THAT RELATE TO SELF-PAY ADJUSTMENTS) WHICH GO DIRECTLY TO BAD DEBT EXPENSE AND WILL VARY ACCORDING TO THE LEVEL OF ACTIVITY. THE OTHER COMPONENT IS THE ADJUSTMENT TO THE RESERVE ACCOUNT WHICH IS BASED ON THE BALANCES SITTING IN THE VARIOUS SELF-PAY AGE BUCKETS AT THE END OF EACH MONTH. THE ASSIGNMENT OF SELF-PAY BALANCES TO COLLECTION AGENCIES THROUGHOUT THE MONTH AFFECT THIS RESERVE ENTRY. DISCOUNTS ON PATIENT ACCOUNTS ARE PROCESSED BY CREDIT ACCORDING THE ESTABLISHED POLICY GUIDELINES. SPECIAL CIRCUMSTANCE DISCOUNTS ARE APPROVED ON A CASE BY-CASE BASIS BY THE PATIENT ACCOUNTS MANAGER. PAYMENTS ON PATIENT ACCOUNTS ARE POSTED BY CREDIT AND ARE BASED ON CASH SUMMARY SHEETS PREPARED BY AN INDIVIDUAL IN THE PAYROLL/FINANCE DEPARTMENT. LINE 2 REPORTS THE BAD DEBT ATTRIBUTABLE TO PATIENT ACCOUNTS FROM THE AUDITED FINANCIAL STATEMENTS. BAD DEBT ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY CARE POLICY WAS DETERMINED USING POVERTY LIMIT DEMOGRAPHIC INFORMATION OBTAINED THROUGH THE US CENSUS BUREAU. PAGE 11 OF THE AUDITED FINANCIAL STATEMENTS INCLUDES A FOOTNOTE REGARDING BAD DEBT EXPENSE. SCHEDULE H, PART III, SECTION B, LINE 8 COMMUNITY BENEFIT: SERVING PATIENTS WITH GOVERNMENT HEALTH BENEFITS, SUCH AS MEDICARE, IS A COMPONENT OF THE COMMUNITY BENEFIT STANDARD THAT TAX-EXEMPT HOSPITALS ARE HELD TO. THIS IMPLIES THAT SERVING MEDICARE PATIENTS IS A COMMUNITY BENEFIT AND THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. SCHEDULE H, PART III, SECTION C, LINE 9B COLLECTION POLICY: COLLECTION PRACTICES FROM DAY 1 SELF-PAY ARE CONSISTENT ACROSS THE ENTIRE SELF-PAY POPULATION. ONCE A PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE (IE CHARITY CARE TO SOME DEGREE) THEN THAT PATIENT'S ACCOUNT(S) ARE PROCESSED ACCORDINGLY BALANCE-WISE. SCHEDULE H, PART VI, LINE 2 NEEDS ASSESSMENT: THE ORGANIZATION COMPLETED A COMMUNITY HEALTH NEEDS ASSESSMENT IN 2015. SEE PART V, SECTION B, FOR ADDITIONAL INFORMATION. THIS IS NOW DONE AT THE PHH LEVEL. SCHEDULE H, PART VI, LINE 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE: THE CHARITY CARE POLICY, IN ITS ENTIRETY, APPEARS ON THE HOSPITAL WEBSITE. THE ASSOCIATED ELIGIBILITY FORM IS OBTAINABLE HERE AS WELL. THE SELF-PAY COLLECTION PROCESS PROVIDES FOR A CHARITY CARE APPLICATION AND EXPLANATION LETTER TO BE SENT ON EVERY OUTSTANDING PATIENT ACCOUNT FOR WHICH THERE IS NOT A PAYMENT MADE SUBSEQUENT TO THE INITIAL STATEMENT BEING RECEIVED. THERE ARE ALSO SIGNS POSTED IN CERTAIN AREAS OF THE HEALTH CENTER WHICH PROMOTE THE EXISTENCE OF THE CHARITY CARE POLICY AND DIRECT INTERESTED INDIVIDUALS ACCORDINGLY. SCHEDULE H, PART VI, LINE 4 COMMUNITY INFORMATION: THE ORGANIZATION PROVIDES SERVICES TO RESIDENTS OF ALL AGES IN ELK AND CAMERON COUNTIES AND THE SURROUNDING AREAS. ELK AND CAMERON COUNTIES HAVE A POPULATION OF APPROXIMATELY 37,000. ADULTS OVER AGE 65 REPRESENT ABOUT 20% OF THE POPULATION. PERSONS BELOW POVERTY LEVEL ACCOUNT FOR ABOUT 11% OF THE POPULATION. THE MEDIAN HOUSEHOLD INCOME IS APPROXIMATELY $43,000, AND THE MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS IS APPROXIMATELY $89,000. ELK REGIONAL IS ONE OF TWO MAJOR HEALTH SYSTEMS THAT SERVE THE ELK AND CAMERON COUNTY COMMUNITIES. SCHEDULE H, PART VI, LINE 5 PROMOTION OF COMMUNITY HEALTH: ERHC STRIVES TO PROVIDE WELLNESS AND EDUCATIONAL PROGRAMS FOR COMMUNITY MEMBERS TO MAINTAIN A HEALTHY LIFESTYLE. ERHC PROVIDES SMOKE DETECTORS TO PARENTS OF NEWBORNS TO TAKE HOME WITH THEM AND INSTALL IN THEIR HOMES. ERHC WORKS WITH THE LOCAL LIONS CLUB AND ROTARY CLUB TO PROVIDE SERVICES TO THE COMMUNITY. ERHC PARTICIPATES IN ACTIVITIES WITH THE ST. MARYS CHAMBER OF COMMERCE AND BELONGS TO THE BOARDS OF THE FAMILY RESOURCE NETWORK AND THE STATE HEALTH IMPROVEMENT PLAN. ERHC PROVIDES JOB SHADOWING TO THE LOCAL HIGH SCHOOL STUDENTS AND HAS A SCHOOL TO WORK PROGRAM FOR STUDENTS. ERHC ALSO PARTICIPATES IN THE PHEAA PROGRAM TO HIRE STUDENTS AS SUMMER WORKERS TO GIVE THEM WORK EXPERIENCE IN VARIOUS FIELDS. THE ORGANIZATION HAS AN OPEN MEDICAL STAFF AND THE BOARD IS COMPRISED OF PEOPLE WHO ARE LEADERS IN THE COMMUNITY. THE PHYSICIAN OFFICES AND OUTPATIENT THERAPY OFFICES LOCATED THROUGHOUT THE COMMUNITIES GIVE PATIENTS EASIER ACCESS TO VARIOUS SERVICES. ERHC PARTICIPATES IN AND HOLDS HEALTH FAIRS WHERE FREE SCREENINGS AND LOW OR NO COSTS TESTING ARE PROVIDED TO PROMOTE PREVENTATIVE CARE AND HEALTH LIFESTYLES. ERHC HOLDS MANY EDUCATIONAL CLASSES FOR THE PUBLIC SUCH AS DIABETES EDUCATION, WOMEN'S HEALTH ISSUES, SUPPORT GROUPS, ETC. ERHC ALSO OFFERS VARIOUS EXERCISE CLASSES SUCH AS PILATES, BOOT CAMP, YOGA, ETC., ALONG WITH WELLNESS CLASSES. THE ORGANIZATION PERIODICALLY HAS PRESS RELEASES ON DIFFERENCE HEALTH ISSUES. SCHEDULE H, PART VI, LINE 6 AFFILIATED HEALTH CARE SYSTEM: ELK REGIONAL HEALTH CENTER IS A FULLY-ACCREDITED, NOT-FOR-PROFIT 80 BED GENERAL ACUTE CARE INSTITUTION BACKED BY THE EXPERTISE OF A DEDICATED, EMPLOYED PHYSICIAN GROUP. WITH CAMPUSES IN ST. MARYS AND RIDGWAY AND PHYSICIAN OFFICES IN A NUMBER OF LOCATIONS THROUGHOUT THE REGION, ELK REGIONAL PROUDLY SERVES THE RESIDENTS OF ELK AND CAMERON COUNTIES. IT IS THE ONGOING MISSION OF THE ELK REGIONAL HEALTH SYSTEM TO PROVIDE PREMIER HEALTHCARE SERVICES TO PATIENTS THROUGH COMMITMENTS TO SERVICE, QUALITY, PEOPLE, FINANCE AND GROWTH - ALL WHILE MAINTAINING ECONOMIC VIABILITY AND KEEPING AN EYE ON THE FUTURE. THE HOSPITAL AND PHYSICIAN OFFICES WORK WITH COMMUNITY NURSES INC., TO PROVIDE FLU SHOT CLINICS TO THE COMMUNITY. THE FOUNDATION AND AUXILIARY PROVIDE EDUCATIONAL CLASSES AND SCHOLARSHIPS. THERE ARE MANY SCREENINGS & HEALTH CLINICS HELD THROUGHOUT THE YEAR TO PROMOTE HEALTHY LIVING & PREVENTATIVE CARE. ERHC ALSO OFFERS EXERCISE, NUTRITION, AND RELAXATION CLASSES. THE HEALTH SYSTEM FOUNDATION PROVIDES FUNDS FOR TWO SCHOLARSHIPS EACH YEAR TO STUDENTS PURSUING HEALTH CARE FIELDS. THESE SCHOLARSHIPS ARE ADMINISTERED BY THE ELK COUNTY COMMUNITY FOUNDATION. COMMUNITY NURSES INC ESTABLISHED A SERENITY GARDEN FOR PINE CREST MANOR (SKILLED NURSING FACILITY) RESIDENTS AND FAMILY AND FOR THE GENERAL PUBLIC TO USE AS A MEDIATION GARDEN. CNI ALSO PROVIDES ADULT DAY CARE SERVICES FOR THE COMMUNITY. THE HOSPITAL AUXILIARY GIVES A SCHOLARSHIP TO A TEEN VOLUNTEER FROM EACH LOCAL SCHOOL WHO ARE GOING TO STUDY A HEALTH CARE RELATED FIELD. THE PHYSICIAN OFFICES AND COMMUNITY NURSES WORK TOGETHER TO PUT ON VARIOUS FLU CLINICS TO PROVIDE ANNUAL FLU SHOTS TO MEMBERS OF THE COMMUNITY. ERHC PROVIDES A SMOKING CESSATION PROGRAM TO THE PUBLIC FOR THOSE WHO ARE TRYING TO QUIT SMOKING. ERHC HAS A CRNP THAT GOES INTO THE LOCAL SCHOOLS EACH YEAR TO EDUCATE STUDENTS ABOUT GOOD HYGIENE AND HEALTH ISSUES ASSOCIATED WITH ADOLESCENCE. THE ORGANIZATION ALSO PROVIDES FREE SPORTS PHYSICALS FOR THE LOCAL YOUTH FOOTBALL TEAM. THE AFFILIATED HEALTH CARE SYSTEM INCLUDES THE COMMUNITY NURSES, INC. AND SUBSIDIARIES, ELK REGIONAL PROFESSIONAL GROUP, INC., ELK REGIONAL HEALTH CENTER AUXILIARY, INC., ELCO HOUSING, INC., AND ELK REGIONAL HEALTH CENTER FOUNDATION. IN OCTOBER 2012, THE ELK ENTITIES SIGNED AN AFFILIATION AGREEMENT EFFECTIVE JULY 1, 2013, WITH PENN HIGHLANDS HEALTHCARE, A PENNSYLVANIA NONPROFIT CORPORATION (PENN HIGHLANDS). PENN HIGHLANDS BECAME THE SOLE MEMBER OF ERHC. THIS AFFILIATION EXPANDS TO INCLUDE RELATIONSHIPS WITH ADDITIONAL PENNSYLVANIA NOT-FOR-PROFIT HOSPITALS INCLUDING DUBOIS REGIONAL MEDICAL CENTER LOCATED IN DUBOIS, PA, BROOKVILLE HOSPITAL LOCATED IN BROOKVILLE, PA, AND CLEARFIELD HOSPITAL LOCATED IN CLEARFIELD, PA, AS WELL AS THEIR SUBSIDIARY ORGANIZATIONS. true true false false false false false false false ROSE CAMPBELL CEO/PRESIDENT 193699 0 29537 0 10492 0 7748 0 328 0 241804 0 0 0 CURT OBERHOLTZER HR DIRECTOR ENDING 12/2014 81818 0 0 0 71300 0 0 0 4468 0 157586 0 0 0 DR SCOTT MCKIMM PHYSICIAN 174132 373353 0 25000 80 160 4846 13154 4932 9048 183990 420715 0 0 DR CHRIS COLOSIMO PHYSICIAN 159225 414789 0 25000 80 160 0 13154 6564 8129 165869 461232 0 0 LAURIE MACDONALD CFO 151530 0 19022 0 10450 0 0 0 18338 0 199340 0 0 0 GREG BAUER FORMER CEO/PRES ENDING 6/13 258521 0 0 0 28936 0 0 0 15769 0 303226 0 0 0 SCHEDULE J, PART I, LINE 3 CEO COMPENSATION: PENN HIGHLANDS HEALTHCARE, INC. (PHH), A RELATED ORGANIZATION, DETERMINES THE COMPENSATION OF THE CEO. PHH USES THE FOLLOWING METHODS TO DETERMINE THE COMPENSATION: INDEPENDENT COMPENSATION CONSULTANT, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY BOARD OR COMPENSATION COMMITTEE. SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENT: $ 70,699 CURT OBERHOLTZER SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN: 457(F) PLAN EMPLOYEE CONTRIBUTIONS GREG BAUER $4,500 ST MARY'S PHARMACYHOME MEDICAL SEE PART V. 325652 SEE PART V. false NICKLAS INSURANCE AGENCY SEE PART V. 158928 SEE PART V. false KAREN GASPARI SEE PART V. 31461 SEE PART V. false REBECCA PICCOLO SEE PART V. 95838 SEE PART V. false SCHEDULE L, PART IV BUSINESS TRANSACTIONS: (1) FRANK STRAUB, DIRECTOR, IS THE OWNER OF ST. MARYS PARMACY AND SMP HOME MEDICAL. THE ORGANIZATION PURCHASED PHARMACY DRUGS FOR PINECREST MANOR AND OXYGEN CONCENTRATORS AT A TOTAL COST OF $325,652 FOR FYE 6/30/2015. (2) FRANK SCUTELLA, FORMER DIRECTOR, IS AN OWNER OF NICKLAS INSURANCE AGENCY. THE ORGANIZATION RECEIVES PROPERTY, BOILER, AND BUSINESS AUTO INSURANCE FROM THE AGENCY, WITH TOTAL PAYMENT EQUAL TO $158,928 FOR THE YEAR. (3) KAREN GASPARI IS THE SISTER OF LAURIE MACDONALD, ERHC CFO. SHE IS EMPLOYED BY ERHC AND RECEIVED TOTAL COMPENSATION AND BENEFITS $31,461. (4) REBECCA PICCOLO IS THE WIFE OF JOHN PICCOLO, A DIRECTOR OF THE BOARD. SHE IS EMPLOYED AS AN OCCUPATIONAL THERAPIST AND RECEIVED COMPENSATION OF $95,838. FORM 990, PART III, LINE 2 ELK REGIONAL HEALTH CENTER PURCHASED REGIONAL AMBULATORY SURGERY CENTER, LLC, EFFECTIVE 6/24/2014. DURING FY2015 THIS ENTITY BECAME PART OF ELK REGIONAL HEALTH CENTER'S EXISTING OR DEPARTMENT. FORM 990, PART VI, SECTION A, LINES 6, 7A, & 7B MEMBERS: PENN HIGHLANDS HEALTHCARE (PHH) HOLDS CERTAIN POWERS, INCLUDING THE APPROVAL OF THE ELECTION AND REMOVAL OF OFFICERS AND DIRECTORS AND APPROVAL OF ANY AND ALL AMENDMENTS TO THE BYLAWS OR OTHER ORGANIZATIONAL/GOVERNANCE DOCUMENTS. PHH SHALL HAVE THE FOLLOWING POWERS WITH RESPECT TO THE ELECTION AND REMOVAL OF DIRECTORS: PRIOR TO THE END OF PHH'S FISCAL YEAR, THE PHH BOARD WILL MEET TO ELECT THE DIRECTORS, WITH THE EXCEPTION OF EX-OFFICIO DIRECTORS. AT LEAST SIXTY (60) DAYS IN ADVANCE OF THIS MEETING, ELK SHALL PROVIDE TO PHH'S GOVERNANCE/NOMINATING COMMITTEE (THE "PHH GOVERNANCE/NOMINATING COMMITTEE") A LIST OF ONE OR MORE CANDIDATES (THE NUMBER OF CANDIDATES TO BE DETERMINED IN THE PHH GOVERNANCE/NOMINATING COMMITTEE'S DISCRETION) FOR EACH EXPIRING DIRECTOR POSITION, WITH THE EXCEPTION OF ANY EX-OFFICIO DIRECTORS. THE LIST OF CANDIDATES SHALL HAVE BEEN DEVELOPED BY ELK IN CONSULTATION WITH THIS ORGANIZATION'S BOARD. THE PHH GOVERNANCE/NOMINATING COMMITTEE SHALL REVIEW EACH CANDIDATE IN ACCORDANCE WITH THE CRITERIA SET FORTH IN THE PHH BYLAWS, THE CRITERIA, IF ANY, SET FORTH IN THIS ORGANIZATION'S BYLAWS OR POLICIES FOR WHICH SAID CANDIDATE IS BEING CONSIDERED FOR BOARD SERVICE, AND THE POLICIES AND RULES OF PHH, INCLUDING, WITHOUT LIMITATION, THE CONFLICT INTEREST POLICY (ALL OF WHICH SHALL BE REFERRED TO COLLECTIVELY HEREIN AS THE "ELIGIBILITY CRITERIA") AND DEVELOP A LIST OF ONE OR MORE CANDIDATES FOR EACH OPEN POSITION (THE NUMBER OF CANDIDATES TO BE DETERMINED IN THE PHH GOVERNANCE/NOMINATING COMMITTEE'S DISCRETION). ONCE THE SLATE OF CANDIDATES IS NOMINATED BY THE PHH GOVERNANCE/NOMINATING COMMITTEE, THE BOARD OF ELK SHALL SUBMIT TO THE PHH BOARD FOR ELECTION SUCH SLATE OF CANDIDATES FOR THE OPEN BOARD POSITIONS. THE PHH BOARD MAY ELECT BY A VOTE OF THE MAJORITY OR REFUSE TO ELECT EACH CANDIDATE SUBMITTED BY THE BOARD OF ELK AND MAY NOT ELECT ANY CANDIDATE NOT SUBMITTED BY THE BOARD OF ELK AND NOMINATED BY THE PHH GOVERNANCE/NOMINATING COMMITTEE. THE BOARD OF PHH HAS THE POWER TO REMOVE SUCH DIRECTOR AT ANY TIME WITH OR WITHOUT CAUSE. IN THE EVENT THAT THIS ORGANIZATION DESIRES TO FILL A VACANCY OCCURRING ON ITS BOARD, THE PHH GOVERNANCE/NOMINATING COMMITTEE AND THE BOARD OF PHH, AT THE REQUEST OF ELK, SHALL ACT TO FILL SUCH VACANCY. SUBJECT TO THE APPROVAL OF PHH AS SET FORTH IN THE BYLAWS, THE ARTICLES AND THE BYLAWS MAY BE ALTERED, AMENDED, OR REPEALED AND NEW BYLAWS OR ARTICLES MAY BE ADOPTED BY THE AFFIRMATIVE VOTE OF TWO-THIRDS (2/3) OF THE BOARD. WRITTEN NOTICE OF THE INTENT TO AMEND THE BYLAWS OR THE ARTICLES AND A DRAFT OF THE PROPOSED CHANGE SHALL BE SENT TO ALL DIRECTORS, BY THE SECRETARY, AT LEAST FIVE (5) DAYS PRIOR TO ANY MEETING AT WHICH AMENDMENT OF THE BYLAWS OR THE ARTICLES IS INTENDED. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM BASED ON THE AUDITED FINANCIAL STATEMENTS AND INFORMATION PROVIDED BY THE ACCOUNTING DEPARTMENT OF THE ORGANIZATION. THE DRAFT FORM 990 IS REVIEWED BY THE CFO AND THE CONTROLLER. AFTER ALL SUGGESTED CHANGES FROM THE CFO AND CONTROLLER ARE MADE, THE UPDATED DRAFT FORM 990 IS PROVIDED FOR REVIEW TO THE FULL BOARD. ANY QUESTIONS OR COMMENTS FROM THE BOARD ARE ADDRESSED BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C MONITORING COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY: PENN HIGHLANDS HEALTHCARE, INC. (PHH), MAINTAINS A CONFLICT OF INTEREST POLICY WHICH APPLIES TO ALL SUBSIDIARIES. THE CONFLICT OF INTEREST POLICY APPLIES TO BOARD MEMBERS, OFFICERS, EXECUTIVE EMPLOYEES, AND ANY OTHER MANAGER OR SUPERVISOR EXERCISING SUBSTANTIAL INFLUENCE OVER OPERATIONS. EACH COVERED PERSON WILL PROMPTLY AND FULLY DISCLOSE ALL MATERIAL FACTS OF EVERY ACTUAL OR POTENTIAL DUAL INTEREST EXISTING AT THE TIME WHEN HE/SHE BECOMES A COVERED PERSON, AND ANNUALLY THROUGH EACH PHH SYSTEM ENTITY'S DISCLOSURE STATEMENT, WHICH REQUESTS DISCLOSURE OF RELATIONSHIPS, INVESTMENTS, AND TRANSACTIONS THAT MAY LEAD TO AN ACTUAL CONFLICT OF INTEREST. ALL COMPLETED DISCLOSURE STATEMENTS WILL BE PROVIDED TO THE PHH GOVERNANCE/NOMINATING COMMITTEE. THIS COMMITTEE, IN CONSULTATION WITH THE CHAIRPERSON OR VICE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD, SHALL EVALUATE THE COMPLETED DISCLOSURE STATEMENTS AND DETERMINE IF THERE ARE ANY CONFLICTS THAT ARE SO PERVASIVE AS TO RENDER ANY COVERED PERSON INELIGIBLE FOR SERVICE. THE CHAIRPERSON OF EACH PHH SYSTEM ENTITY'S BOARD WILL DISCLOSE TO THE FULL BOARD OF SAID PHH SYSTEM ENTITY ALL DUAL INTERESTS REPORTED TO HIM OR HER UNDER THE POLICY AND WILL ALSO MAKE THE DISCLOSURE STATEMENTS OF ALL COVERED PERSONS AVAILABLE TO DIRECTORS AT ANY TIME DURING THE YEAR. IF A POTENTIAL DUAL INTEREST ARISES AS A RESULT OF A CONTEMPLATED PHH SYSTEM ENTITY BOARD (OR COMMITTEE) ACTION, THE CHAIRPERSON OF SAID PHH SYSTEM ENTITY'S BOARD OR THE INTERESTED PERSON SHALL, OR ANY OTHER DIRECTOR MAY, RAISE THE QUESTION OF THE INTERESTED PERSON'S DUAL INTEREST. THE DISINTERESTED MEMBERS OF THE PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) WILL EVALUATE THE DISCLOSURES AND THE MATERIAL FACTS RELATING TO THE TRANSACTION, ARRANGEMENT, OR POLICY GIVING RISE TO THE DUAL INTEREST TO DETERMINE WHETHER THEY INVOLVE ACTUAL CONFLICTS OF INTEREST AND MAY ATTEMPT TO DEVELOP ALTERNATIVES TO REMOVE THE CONFLICT FROM THE TRANSACTION, ARRANGEMENT, OR POLICY. A COVERED PERSON WHO HAS A DUAL INTEREST SHALL NOT BE PRESENT FOR OR SHALL LEAVE ANY PORTION OF A MEETING AT WHICH A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE) IS VOTING TO DETERMINE WHETHER A CONFLICT EXISTS, BUT MAY BE PRESENT PRIOR TO THE VOTE TO MAKE A PRESENTATION TO SAID BOARD (OR COMMITTEE), TO DISCLOSE ADDITIONAL FACTS, OR TO RESPOND TO QUESTIONS. IF A PHH SYSTEM ENTITY'S BOARD (OR COMMITTEE DETERMINES THAT AN ACTUAL CONFLICT OF INTEREST EXISTS, THE INTERESTED PERSON SHALL BE SO ADVISED AND THE CHAIRPERSON OF A PHH SYSTEM ENTITY'S BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE OR DIRECT MANAGEMENT TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, IF THIS HAS NOT ALREADY BEEN DONE. ANY INTERESTED PERSON WHO HAS AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT DOES NOT PARTICIPATE IN AND IS NOT PRESENT FOR THE VOTE REGARDING ANY SUCH TRANSACTION OR ARRANGEMENT. IF AN INDIVIDUAL WHOSE COMPANY OR EMPLOYER HAS A BUSINESS RELATIONSHIP WITH A PHH SYSTEM ENTITY, BUT THE INDIVIDUAL DOES NOT HAVE AN ACTUAL CONFLICT OF INTEREST WITH RESPECT TO THIS BUSINESS RELATIONSHIP, THE INDIVIDUAL MAY NONETHELESS VOLUNTARILY RECUSE HIM/HERSELF FROM VOTING ON ANY MATTERS RELATED TO THE RELATIONSHIP. FORM 990, PART VI, SECTION B, LINES 15A & 15B COMPENSATION DETERMINATION: PENN HIGHLANDS HEALTHCARE, INC. (PHH) PERFORMS THE COMPENSATION REVIEW FOR THE PHH EXECUTIVES, INCLUDING THE CEO OF PHH ELK. AN INDEPENDENT COMPENSATION CONSULTANT, YAFFE & COMPANY, IS CONTRACTED TO COMPLETE AN ANNUAL COMPENSATION REVIEW. INCLUDED IN THIS REVIEW IS COMPARATIVE DATA. THE PHH BOARD REVIEWS AND APPROVES THE COMPENSATION. THE CEO ALSO HAS AN ANNUAL EVALUATION COMPLETED BY THE PHH ELK BOARD THAT IS SHARED WITH THE PHH BOARD DURING AN EXECUTIVE SESSION AT EACH OF THE BOARDS. THESE PROCESSES ARE DOCUMENTED IN THE BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENT AVAILABILITY: THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON WRITTEN REQUEST FROM LORI SCUTELLA, ADMINISTRATIVE SECRETARY. DOCUMENTS MAY BE MAILED, E-MAILED, FAXED, OR HELD FOR PICKUP BY REQUESTING PERSONS. FORM 990, PART VII, SECTION A BOARD MEMBER COMPENSATION: NO DIRECTORS RECEIVE ANY COMPENSATION FOR THEIR DIRECTOR DUTIES. ROSE CAMPBELL IS COMPENSATED FOR HER DUTIES AS CEO OF PHH AND PHH ELK. FORM 990, PART IX, LINE 11G OTHER FEES FOR SERVICES: $ 7,492,411 PROFESSIONAL SERVICE FEES 114,040 PHYSICIAN FEES 123,060 BILLING FEES ----------- $ 7,729,511 FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS: $ (3,490,656) CHANGE IN ACCRUED PENSION LIABILITY (1,393,083) REM TRANSFER TO AFFILIATES 89,000 TRANSFERS FROM AFFILIATES ------------ $ (4,794,739) ELK VENTURES LLC 763 JOHNSONBURG ROAD ST MARYS PA 15857 251924733 MEMBER SVCS PA 0 42100 ERHC ELK REGIONAL SURGERY CENTER REAL ESTATE 1376 BUCKTAIL ROAD ST MARYS PA 15857 272160971 REAL EST MGMT PA 0 0 ERHC ELK REGIONAL HEALTH CENTER FOUNDATION 763 JOHNSONBURG ROAD ST MARYS PA 15857 251636685 SUPPORT PA 501(C)(3) 11A I PHH false ELCO HOUSING 759 JOHNSONBURG ROAD ST MARYS PA 15857 251639115 HOUSING PA 501(C)(3) 7 PHH false ELK REGIONAL PROFESSIONAL GROUP INC 763 JOHNSONBURG ROAD ST MARYS PA 15857 251875183 HEALTH CARE PA 501(C)(3) 3 PHH false ELK REGIONAL HEALTH CENTER AUXILIARY 763 JOHNSONBURG ROAD ST MARYS PA 15857 251429093 SUPPORT PA 501(C)(3) 7 PHH false COMMUNITY NURSES HOME HEALTH & HOSPICE 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 250996070 HEALTH CARE PA 501(C)(3) 9 CNI false COMMUNITY NURSES HOME SUPPORT SERVICES 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 251623601 HEALTH CARE PA 501(C)(3) 9 CNI false COMMUNITY NURSES INC 757 JOHNSONBURG ROAD STE 200 ST MARYS PA 15857 251623598 HEALTH CARE PA 501(C)(3) 7 PHH false DUBOIS REGIONAL MEDICAL CENTER 100 HOSPITAL AVE DUBOIS PA 15801 251490707 HOSPITAL PA 501(C)(3) 3 PHH false BROOKVILLE HOSPITAL 100 HOSPITAL RD BROOKVILLE PA 15825 250984595 HOSPITAL PA 501(C)(3) 3 PHH false CLEARFIELD HOSPITAL 809 TURNPIKE DR CLEARFIELD PA 16830 250979346 HOSPITAL PA 501(C)(3) 3 PHH false NATHANIEL D YINGLING CANCER CENTER 815 DOCTORS DR CLEARFIELD PA 16830 205114093 RADIATION ONC PA 501(C)(3) 3 PHH false CLEAR-MED PROVIDER CORPORATION PO BOX 1260 CLEARFIELD PA 16830 251657668 OUTPAT. PHYS. PA 501(C)(3) 3 PHH false DRMC EMPLOYEE BENEFITS PLAN TRUST 100 HOSPITAL AVE DUBOIS PA 15810 256332829 DRMC EMP BENE PA 501(C)(9) PHH false PENN HIGHLANDS HEALTHCARE PO BOX 447 DUBOIS PA 15801 320345810 MGMT SERVICES PA 501(C)(3) 11 C III-FI NA false false false true true false false false false false true true false false true true false false true true