2016-07-15T21:46:55-05:00 2015-08-31 ERNST & YOUNG US LLP 1900 SCRIPPS CENTER 312 WALNUT ST CINCINNATI OH 45202 990 2014-09-01 610444707 Baptist Healthcare System Inc % CARL G HERDE BAPT 5028965000 2701 Eastpoint Parkway Louisville KY 40223 CARL G HERDE CFO 5028965000 2016-07-15 true Tricia M Johnson P00627205 5136121400 2014 2016-09-27 15:27:22Z STEPHEN C HANSON 2701 EASTPOINT PARKWAY Louisville KY 40223 4938222112 false X www.baptisthealth.com X 1918 KY PROVIDE QUALITY HEALTHCARE SERVICES BY ENHANCING THE HEALTH OF THE PEOPLE/COMMUNITIES WE SERVE. 15 15 12038 997 3792430 521027 4600875 2468823 1352847882 1503841672 63890480 33041855 19180281 15777360 1440519518 1555129710 2235644 1931803 0 0 609631805 681540423 0 0 0 624209753 693201289 1236077202 1376673515 204442316 178456195 2286559034 2389242122 872062920 943596048 1414496114 1445646074 X THE MISSION OF BAPTIST HEALTHCARE SYSTEM (BHS) IS TO EXEMPLIFY OUR CHRISTIAN HERITAGE OF PROVIDING QUALITY HEALTHCARE SERVICES BY ENHANCING THE HEALTH OF THE PEOPLE AND THE COMMUNITIES WE SERVE. THE VISION OF BHS IS TO BE NATIONALLY RECOGNIZED AS THE HEALTHCARE LEADER IN KENTUCKY. BHS WILL LIVE OUT ITS CHRIST-CENTERED MISSION AND ACHIEVE ITS VISION GUIDED BY: INTEGRITY, RESPECT, STEWARDSHIP, EXCELLENCE AND COLLABORATION. false false 1195454623 1931803 1509611594 Since its inception in 1924, Baptist Healthcare System, Inc. ("Baptist") is dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist under tax identification number 61-0444707 include: Baptist Health Louisville Louisville, Kentucky Baptist Health Corbin Corbin, Kentucky Baptist Health Lexington Lexington, Kentucky Baptist Health Paducah Paducah, Kentucky Baptist Health LaGrange LaGrange, Kentucky VISION: The vision of Baptist is to be the healthcare leader in Kentucky. Having earned a reputation of providing high quality patient care and utilizing the latest in medical technology, patients seek out Baptist facilities for their care. According to state statistics in 2015, Baptist is one of the largest healthcare providers in the state. KENTUCKY 2015 HOSPITAL STATISTICS: LICENSED BEDS 1,527 BEDS - SECOND LARGEST NUMBER OF BEDS OF ANY HEALTH SYSTEM IN KENTUCKY EMPLOYEES 12,038 EMPLOYEES AT END OF the FISCAL YEAR - ONE OF THE TOP EMPLOYERS IN KENTUCKY INPATIENT CARE 68,450 ADMISSIONS/331,679 DAYS - LARGEST NUMBER OF ADMISSIONS IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - ONE OUT OF EVERY EIGHT INPATIENTS RECEIVING CARE IN KENTUCKY RECEIVED CARE AT A SYSTEM-OWNED OR MANAGED HOSPITAL OBSTETRIC (DELIVERIES) 9,336 BABIES - LARGEST NUMBER OF BABIES DELIVERED IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - Almost one in four babies in Kentucky was delivered at Baptist hospitals at a system-owned or managed hospital CARDIOLOGY (OPEN HEART SURGERIES) 1,039 CASES - SECOND LARGEST NUMBER OF OPEN-HEART SURGERIES PERFORMED BY ANY SYSTEM-OWNED OR MANAGED HOSPITAL IN KENTUCKY - ONE IN five OPEN-HEART SURGERIES IN KENTUCKY WAS PERFORMED AT A SYSTEM-OWNED OR MANAGED HOSPITAL EMERGENCY VISITS 191,541 REGISTRATIONS - THE SECOND LARGEST NUMBER OF EMERGENCY VISITS IN KENTUCKY AT A SYSTEM-OWNED OR MANAGED HOSPITAL - ONE IN THIRTEEN ER PATIENTS WAS TREATED AT A SYSTEM-OWNED OR MANAGED HOSPITAL OUTPATIENT VISITS 1,092,126 HOSPITAL VISITS - ONE IN ELEVEN OUTPATIENTS IN KENTUCKY RECEIVING CARE IN AN ACUTE-CARE SETTING WAS SEEN AT A SYSTEM-OWNED OR MANAGED HOSPITAL MISSION: As indicated by its mission statement, Baptist strives to continue its "Christian heritage of service and to enhance the health of the people and the communities we serve." Baptist is organized and operated exclusively for the benefit of each community and each hospital is considered a valuable community asset. The Baptist Boards of Directors are comprised of local representatives who, along with the hospitals' management and employees, understand that they are responsible to the communities for providing high quality health care services. Over the years, Baptist has gained a reputation for providing compassionate, high quality, cost efficient, patient friendly care. RESPONSIVE TO COMMUNITY NEED Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2015, Baptist was able to re-invest over $81 million into the communities in new technology, construction, renovation and systems improvement. Because of the need to generate a modest margin while caring for all patients, Baptist strives to fulfill its community responsibility of collecting appropriate reimbursement from all patients who have the necessary resources while providing a generous, yet accountable charity care policy to assist those patients who do not have the means to pay for the services rendered. (See "Charity Care Policy" later in this section for further discussion). From a broad perspective, Baptist hospitals consistently provide a high level of quality care to every patient and enhance the health of the people it serves through health promotions, health screenings, medical research, and training of health professionals. Other community benefits include: - Maintaining necessary, but unprofitable services that meet community needs - Helping to recruit physicians to underserved areas - Helping patients coordinate services with other healthcare providers - Providing resources for support groups - Promoting and providing preventive care services - Monitoring clinical outcomes in order to ensure quality care - Committing resources to improving safety and processes of care - Providing services conveniently accessible by patients. In addition, Baptist employees volunteer thousands of hours in community services and leadership. Baptist's support for community activities underscores its commitment to improving the lives of those served. Because Baptist and its employees contribute so much of their time, talent and resources to serve others, communities served by Baptist are better places to live and work. Quantification of many of the community benefits is detailed later in this section. However, what the Statement of Program Service Accomplishments doesn't measure is the economic benefit derived by each community from Baptist being one of the largest employers in the state. The economic impact of the wages paid to Baptist employees is significant considering the dollars they spend on food, housing, services, and other products. CHARITY CARE POLICY To further the mission of enhancing the health of the people and communities it serves, Baptist provides medically necessary inpatient and outpatient care to patients regardless of race, religion, sex, national origin, disability, age or their ability to pay. Recognizing that not all patients have the ability to pay, Baptist has a charity care policy to accurately evaluate a patient's ability to pay for services received. Baptist relies solely on the physician order to determine whether treatment is medically necessary and whether the patient is treated on an inpatient or outpatient basis. Neither the patient's financial condition nor their ability to pay for services has any bearing upon whether, or how, the patient is treated in a Baptist facility. Patients are transferred only when Baptist does not provide the specialized service that is required, or by specific request of the patient. Baptist has notices posted throughout the hospital that clearly communicate Baptist's charity care policy. Baptist employees are instructed in the application of the charity care policy and are trained to recognize situations that indicate the financial resources of a patient may be inadequate. These employees freely and willingly volunteer information regarding the charity care policy to any patient who may express a concern regarding the ability to pay for services. The policy provides that: 1. Patients/guarantors with resources of less than 200% of the Poverty Guideline for their family size will receive full charity. 2. Patients/guarantors with resources of 200% but less than 400% of the Poverty Guideline for their family size will qualify for partial charity. The ratio of resources up to 400% of the Poverty Guideline determines the percentage of the bill that will be the responsibility of the applicant. However, the liability is capped at 10% of the resources. 3. Patients/guarantors with resources of 400% of the Poverty Guideline for their family size but no more than 1200% of the Poverty Guideline for their family of one will qualify for partial charity if the liability exceeds 20% of their resources. In these situations, the patient/guarantor will be responsible for an amount not to exceed 20% of their resources. 4. If eligible for a charity discount, a patient will receive the discount regardless of whether they pay the balance on the bill. If necessary, payment arrangements may be made on the balance of the patient's bill in accordance with hospital procedures. If charity care eligibility cannot be determined, good stewardship requires that the hospital initially begin the collection process. However, immediately upon determining that the guarantor is eligible for charity care, collection efforts on the balance eligible for charity will cease and the appropriate balance will be designated as charity. TAX-EXEMPT STATUS REQUIREMENTS The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. Baptist operates Emergency Departments that are open 24 hours a day, 365 days a year and treated 191,541 emergency patients during fiscal year 2015. Baptist facilities and emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient Baptist may verify insurance prior to rendering services in the emergency department. 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Secretary(thru 6/20/14) 40.0 0.0 X 100638 0 16600 Susan Stout Tamme Vice President (thru 11/2011) 40.0 0.0 X 449055 0 29329 9059152 0 1230480 413 true true false Central Ky Anesthesia 425 Lewis Hargett Circle LEXINGTON KY 40503 Anesthesia services 3113267 Anesthesiology of Paducah 2507 Broadway PADUCAH KY 42001 Anesthesia services 2191658 ONX USE LLC 15305 DALLAS PARKWAY DALLAS TX 75001 DATA MANAGEMENT, IT 2223575 EVOLENT HEALTH LLC 800 N GLEBE ROAD ARLINGTON VA 22203 HEALTH CARE ANALYTIC 2065000 ALLSCRIPTS 1302 CLEAR SPRINGS TRACE LOUISVILLE KY 40223 PRACTICE MANAGEMENT 2122944 134 1712377 756446 2468823 INSUR & PT PMTS 621300 742643967 739980743 2663224 MEDICARE & MEDICAID PMTS 621300 688861062 688861062 MGMT FEES-EXEMPT REV 561000 45538468 45538468 INTERCO INT/MOB RENT 900099 18264660 18264660 OTHER PROGRAM SVC REV 900099 5086596 5086596 3446919 3446919 1503841672 16102257 16102257 0 0 0 0 0 3399863000 169000 3382969583 122819 16893417 46181 16939598 16939598 0 0 0 CAFE & COFFEE SHOPS 722514 7289747 7289747 PURCHASING PTRSHP REV 900099 3154547 3090574 63973 DAY CARE CENTER 624410 2524645 936160 1588485 2808421 2679348 129073 15777360 1555129710 1506948370 3792430 41920087 1931803 1931803 0 0 0 6793263 6793263 528153 528153 544892587 468770937 76121650 19368790 19085750 283040 72479182 71642995 836187 37478448 37457769 20679 2889721 2664721 225000 2083343 238312 1845031 533590 533590 116221 116221 0 0 45053379 33219885 11833494 11819939 29947 11789992 70212139 55382035 14830104 21186412 42 21186370 0 25694360 24082495 1611865 4690380 2167422 2522958 0 0 0 423665 242184 181481 13184967 13184967 0 0 0 89487474 88650295 837179 13464960 11391 13453569 MEDICAL SUPPLIES 317804400 316888557 915843 PURCHASED SVC NON-MEDICAL 33306012 30188881 3117131 PROVIDER TAX 21079400 21079400 ADMINISTRATIVE 14017761 5662706 8355055 6153166 2343976 3809190 1376673515 1195454623 181218892 0 35469 36219 169211787 145826856 0 0 225193581 205943525 0 0 0 0 0 0 26198593 28963663 13785647 26811768 2176658093 1264494810 772222363 912163283 854722903 835797421 0 0 17358491 4388762 13893473 14106322 193936727 215204303 2286559034 2389242122 144645652 212960291 0 0 0 0 589983112 579423915 0 0 0 0 0 0 0 0 137434156 151211842 872062920 943596048 X 1412077904 1443663673 2418210 1982401 0 0 1414496114 1445646074 2286559034 2389242122 X 178456195 -35643688 -111662547 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false true 48750 false true 67471 116221 false Part II-B line 1g Direct Contact Fees paid for lobbyist and related expenses. Part II-B Line 1i Other activities for lobbying purposes Lobbying portion of Ky. Hospital Assoc & American Hospital Assoc dues. 857141112 22188064 -704296 67115064 2809861 808699955 762097721 8449636 99265139 9949063 2722321 857141112 706444672 9233782 72369664 23559813 2390584 762097721 648747137 11668086 58290845 10123939 2137407 706444722 596233194 3759866 69420829 18794907 1871845 648747137 0.99800 0.00200 false false 98917043 98917043 873259121 532034958 341224163 931126349 732459852 198666488 273355589 273355589 912163283 OTHER CURRENT ASSETS 30487397 DUE FROM AFFILIATE 57086800 TRUSTEE FUNDS-MALPRACTICE 77590429 TRUSTEE FUNDS-WORKERS COMP 19500000 UNAMORTIZED ISSUE COSTS 4947179 OTHER INVESTMENTS 13480497 OTHER ASSETS 12112001 215204303 0 MALPRACTICE LIABILITY 85090743 WORKERS COMP LIABILITY 18420000 POST-RETIREMENT/MISC 24187124 THIRD PARTY PAYABLE 23513975 151211842 Schedule D, Part V, Line 4 Intended use of endowment funds The endowment funds are used to support & enhance patient care at the hospitals, finance capital improvements, and provide educational & financial assistance to hospital employees. true true X true X true X true true false true true 58173 33841995 9600001 24241994 0.01760 158047 180755665 170865572 9890093 0.00720 216220 214597660 180465573 34132087 0.02480 69363 2202449 15130 2187319 0.00160 78946 78946 0.00010 117303 48805328 39652403 9152925 0.00660 1189153 1189153 0.00090 186666 52275876 39667533 12608343 0.00920 402886 266873536 220133106 46740430 0.03400 true 13438395 3738225 383817790 421682603 -37864813 X true true 5 1 Baptist Health Louisville 4000 Kresge Way Louisville KY 40207 www.baptisthealth.com 100451 X X X A 2 Baptist Health Lexington 1740 Nicholasville Rd Lexington KY 40503 www.baptisthealth.com 100101 X X X A 3 Baptist Health Paducah 2501 Kentucky Avenue Paducah KY 42003 www.baptisthealth.com 100313 X X X A 4 Baptist Health Corbin 1 Trillium Way Corbin KY 40701 www.baptisthealth.com 100417 X X X A 5 Baptist Health LaGrange 1025 New Moody Lane LaGrange KY 40031 www.baptisthealth.com 100575 X X X A A false false true X X X X X X X X X 14 true false false true X www.baptisthealth.com X true 14 true www.baptisthealth.com false false true X 200. 400. X X X X X true true X X X X true X www.baptisthealth.com X www.baptisthealth.com X www.baptisthealth.com X X X X X true X false X X X X true X false false Part V Section B, Line 5 Schedule H, Part V, Section B, Line 5 A-1 Baptist Health Louisville (BHLOU) Contact was made with the health departments responsible for the counties in the service area. There are four health departments responsible for the counties BHLOU serves: Louisville Metro Public Health & Wellness (Jefferson County); the Bullitt County Health Department; the Oldham County Public Health Department; and the North Central District Health Department, which serves both Shelby and Spencer Counties. Through these contacts, the public meetings that were held, and public surveys conducted in Jefferson and Oldham counties, BHLOU solicited primary feedback on the health issues confronting its service area. Schedule H, Part V, Section B, Line 5 A-2 Baptist Health Lexington (BHLEX) To assess the needs of the greater community of the Lexington-Fayette County area in which Baptist Health Lexington resides, the hospital partnered with the Lexington-Fayette County Health Department as a participant in the MAPP process (Mobilizing for Action through Planning and Partnerships). The MAPP framework is a process designed to assess the community health status and needs, prioritize health issues and identify resources to address them. This is a community-driven process which engages the community and develops partnerships. Schedule H, Part V, Section B, Line 5 A-3 Baptist Health Paducah (BHPAD) The Purchase District Coalition for Health is a group comprised of representatives from the Purchase District Health Department, which Serves Ballard, Carlisle, Fulton, Hickman, and McCracken counties in the Purchase Area Development District; the City of Paducah; UK County Extension Offices; United Way of Paducah-McCracken County; Lourdes Hospital and Baptist Health Paducah. Bringing these groups together helps avoid duplication of efforts in data collection and resource allocation. Through these contacts and public surveys, BHPAD collected primary data and feedback on the health issues confronting its service area. Secondary data from demographic and socioeconomic sources, Kentucky vital statistics, disease prevalence and health indicators and statistics were collected from national, state and local sources. Schedule H, Part V, Section B, Line 5 A-4 Baptist Health Corbin (BHCOR) Primary data was obtained by Baptist Health Corbin through electronic surveys targeting the community considered in the assessment. The survey data was obtained over a two month time period. Surveys were also conducted through the Whitley County Health Department and Laurel County Health Department/St. Joseph Hospital of London. The broad surveys were intended to gather information regarding overall health of the community. Schedule H, Part V, Section B, Line 5 A-5 Baptist Health LaGrange (BHLAG) There are three health departments responsible for the counties BHLAG serves: the Oldham County Public Health Department; the North Central District Health Department, which serves both Henry and Trimble Counties and the Three Rivers District Health Department, which serves Carroll County. Public feedback via Surveymonkey, used to assess what the public views as their top three (3) health related issues for 2015 and forward were reviewed. Public surveys by the other health departments were also used to collect relevant data. Part V, Section B, Line 11 A-1 Baptist Health Louisville Based on the data analyzed through this assessment, three main issues were identified that the hospital will focus on over the next three years. They are: health literacy, cancer and cardiovascular disease. The other five areas of focus are the aging population, mental health, substance abuse, obesity and diabetes. The consensus of the team conducting the assessment is that many of these issues are related and efforts to combat one will result in improvements in one or more of the others. Health literacy was defined as an increased awareness of the public to their overall healthcare environment, including knowledge of how and when to access care, understanding their personal health status, and the necessity of compliance to medicine and lifestyle regimens assigned by their physicians. Only through the combined efforts of medical professionals, schools, churches and government agencies will we be successful in educating and engaging individuals in caring for themselves. Kentucky has some of the highest rates in the nation for preventable health conditions and for behaviors that have been identified as unhealthy. The committee felt that continued focus on health literacy and personal responsibility would improve the general health of the population more than any other activity. As cancer continues to be a leading cause of death in this service area, the committee ranked it as their second priority in terms of public health issues. Although Jefferson county mortality levels are better than the state average they are still higher than the national average. The committee acknowledged the continued need for board certified oncologists and easy access to cancer related services such as chemotherapy and radiation therapy. Cardiovascular disease ranked as the committee's third priority and encompasses coronary artery disease, heart attack, arrhythmias, heart failure, cardiomyopathy and vascular disease. The discussion focused on education, prevention and treatment. The goal is to expand public awareness of disease root causes and common associated conditions to increase compliance with standard of care protocols. It is not within the scope of Baptist Health Louisville's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. But it is through networking and partnerships with other community stakeholder organizations and agencies that these issues are being addressed. Baptist Health Louisville works collaboratively with other community resources to provide support and serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. Impact issues such as unemployment and uninsured populations are being dealt with by economic development groups, the Kentucky Chamber of Commerce, city and county governments, and county health departments. Schedule H, Part V, Section B, Line 11 A-2 Baptist Health Lexington After compiling and analyzing all of the data in this assessment, BHL will pursue benchmarking, identifying targets and ideas and implementing strategies. Some of the strategies will address multiple needs. These lists are not intended to be exhaustive and do not imply there is only one way to address the identified health needs. Obesity, cardiovascular disease and cancer, including breast, colorectal and lung were the health needs of the community with the highest priority. Obesity issues will be addressed through education, prevention and community-based initiatives to decrease the no exercise rate in Fayette County as measured by the BRFSS, (Behavioral Risk Factor Surveillance System), which collects data through the CDC, (the Centers for Disease Control and Prevention)), by 2018. Efforts will continue to expand the program directory for physical activity venues and identify mechanisms of assistance for participation in programs. The identification of, and increase in the number of organizations in Fayette County that offer worksite wellness programs should produce measurable results and a healthier lifestyle. Baptist Health Lexington works collaboratively with other community resources to provide support and to serve as a referral source to address the additional identified health needs that fall below the significant prevalence level for our service area. It is not within the scope of Baptist Health Lexington's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. But it is through networking and partnerships with other community stakeholder organizations and agencies that these issues are being addressed. Impact issues such as unemployment and uninsured populations are being dealt with by economic development groups, the Kentucky Chamber of Commerce, city and county governments, and county health departments. Schedule H, Part V, Section B, Line 11 A-3 Baptist Health Paducah The committee identified and prioritized community needs for the service area that Baptist Health Paducah can address and affect by implementing programs, education and preventive screenings. Obesity prevention and illnesses related to obesity are a primary concern. Plans are being implemented to increase the awareness of obesity as a health threat to our service area residents and to encourage healthier living through diet, exercise and other means. The hospital is providing additional support to meet this need through its new bariatric surgery and metabolic disease management program; Project Fit America fitness programs in area elementary schools and internal programs to improve employees' health. The ability of individuals in a community to access health care resources to preserve or improve health is essential. Access to health care has an impact on overall health status, the prevention of disease and the quality of life. Efforts are underway through education and the availability of additional resources to remove the potential barriers to receiving necessary health care services. It is not within the scope of Baptist Health Paducah's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. But it is through networking and partnerships with other community stakeholder organizations and agencies that these issues are being addressed. Impact issues such as unemployment and uninsured populations are being dealt with by economic development groups, the Kentucky Chamber of Commerce, city and county governments, and county health departments. The use of illicit drugs or the abuse of prescription or over-the-counter medications for purposes other than those for which they are indicated or in a manner or in quantities other than directed is a growing problem in McCracken County. This particular issue presents a need that cannot be met by Baptist Health Paducah, but is better met by services already in the community including those at Four Rivers Behavioral Health. Schedule H, Part V, Section B, Line 11 A-4 Baptist Health Corbin Baptist Health Corbin will work to increase the awareness of the importance of early detection and prevention of cardiovascular diseases including Stroke, Hypertension and CHF through screening and educational programs for residents of Whitley, Knox and Laurel County. The development of community partnerships to educate local residents on healthy lifestyles and ways to manage cardiovascular diseases, diabetes and cancer are primary objectives. Increased availability to preventive screenings will provide benefits for these and additional health issues. It is not within the scope of Baptist Health Corbin's services, expertise or resources to be able to address all of the risk factors that have been identified as influencers of our community's health status. But it is through networking and partnerships with other community stakeholder organizations and agencies that these issues are being addressed. Impact issues such as unemployment and uninsured populations are being dealt with by economic development groups, the Kentucky Chamber of Commerce, city and county governments, and county health departments. Schedule H, Part V, Section B, Line 11 A-5 Baptist Health LaGrange Based on the data analyzed through this assessment, three main issues were identified that the hospital will focus on over the next three years. They are: health literacy, cancer and cardiovascular disease. The other five areas of focus are the aging population, mental health, substance abuse, obesity and diabetes. The consensus of the team conducting the assessment is that many of these issues are related and efforts to combat one will result in improvements in one or more of the others. Health literacy was defined as an increased awareness of the public to their overall healthcar Part V, Section B, Line 19 Billing and Collections Prior to referring individuals to a collection agency, BHS processes all self-pay accounts through an external scoring application to determine additional eligibility for financial assistance. Schedule H, Part I, Line 6a COMMUNITY BENEFIT REPORT Each hospital within Baptist Healthcare System ("BHS") (61-0444707) prepares a community benefits report. In addition, a summary community benefits report is prepared on a consolidated basis for all entities within BHS. Schedule H, Part I, Line 7g No physician clinic costs are included in the costs of subsidized health services. Schedule H, Part I, Line 7 COSTING METHODOLOGY BHS utilizes a sophisticated cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Patients are also categorized by: 1.patient type (inpatient and outpatient), 2.payer plan (42 unique categories of payer plans. Charity, State-sponsored charity and the Uninsured are among the uniquely identified payer plans), and 3.clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care (under a State-sponsored or BHS sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient. For insured patients who also qualify for partial charity under the BHS sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. The cost of care for uninsured patients who do NOT qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt. Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services. Schedule H, Part III, Line 4 BAD DEBT EXPENSE FOOTNOTE A separate footnote for bad debt expense is not included in the audited financial statements. However, beginning in 2012 BHS reported the provision for uncollectible accounts related to patient service revenue as a deduction from patient service revenue. Costing methodology of bad debt is outlined in Schedule H, Part VI, line 1. The estimated amount of bad debt expense attributable to patients eligible under the organization's FAP was determined using a historical percent to total of net amounts written off as bad debt for those patients with a low propensity to pay or low income to total net amounts written off as bad debt. Schedule H, Part III, Line 8 MEDICARE COSTING METHODOLOGY Medicare revenues and allowable costs were taken from the "as filed" Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit. Schedule H, Part III, line 9b COLLECTION PRACTICES Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account. Guarantors who have an ability to pay for services will be billed based on the following guidelines: - Patients or guarantors may be asked to pay an estimated patient liability at point of service. - BHS facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors. - Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHS Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs. - Patients requesting detailed charge information will be provided with an itemized bill. - BHS Patient Financial Services will provide all patients the same information concerning services and charges. - Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility. Schedule H, Part VI, line 2 NEEDS ASSESSMENT BHS conducts a tri-annual planning process that is driven by the strategic vision to be the health care leader in Kentucky. Key industry and community issues (such as prominent health conditions present within each community, underserved areas and underprovided clinical services) are considered and analyzed for their impact on BHS and the five hospitals. Frequently, outside experts reaffirm the assessment and assist in the development of plans to address the community need. A course of action, including key strategies and goals, are shared with and approved by the BHS Board and the Hospital's administrative Boards. Schedule H, Part VI, line 3 PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE Following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - financial counselors advise and/or screen uninsured patients before or during hospital services, - a third party vendor advises and/or screens uninsured patients during hospital services, - financial counselors provide follow-up contact for patients missed during services, - the State-sponsored DSH form is provided to all ER uninsured patients, - telephone calls and in-person visits are handled by staff trained to discuss financial assistance, - information regarding financial assistance is included in patient statements. - The BHS sponsored charity care program policy is posted in key areas of each hospital. - The BHS sponsored charity care program policy is posted on the website of each hospital and the System. Schedule H, Part VI, Line 4 Community Information BHS is comprised of five regional hospitals. each one serves a unique and separate geographic area within Kentucky. Baptist Health Louisville (BHLOU) opened in 1975 and is located in St. Matthews, approximately five miles east of downtown Louisville area. BHLOU is strategically located near interstate 64, a main access to downtown, and interstate 264, a main beltway around Louisville. The primary geographic service area for BHLOU consists of Jefferson, Oldham, Shelby, Spencer and Bullitt Kentucky counties. BHLOU serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and comprehensive rehabilitation services that are much needed in the area. in addition, BHLOU operates one of the busiest emergency rooms in the state of Kentucky. Approximately 14.6% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 5.9%, as compared to the national average of 6.2%. Baptist Health Corbin (BHCOR) opened in 1986 in Corbin, Kentucky. it is located one-half mile off of interstate 75, approximately three miles from downtown Corbin and near U.S. highway 25, which is a main access to several of the surrounding communities. The primary geographic service area for BHCOR consists of the counties of Knox, Laurel and Whitley in Kentucky. BHCOR serves as a general acute care facility, specializing in services such as psychiatric, substance abuse, comprehensive rehabilitation and emergency care services. The psychiatric program at BHCOR has grown over the past several years and BHCOR has plans to continue its growth. Approximately 15.2% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 8.8%, as compared to the national average of 6.2%. Baptist Health Lexington (BHLEX) opened in 1954 in Lexington, the second largest city in Kentucky. It is located approximately five miles from Interstate 75 and Interstate 64 which provide access for the immediate Lexington metro area patients as well as patients from other areas of central and eastern Kentucky which the hospital serves. The primary geographic service area for BHLEX consists of the Kentucky counties of Bourbon, Clark, Fayette, Franklin, Jessamine, Madison, Scott and Woodford. In addition, BHLEX serves as a regional referral center with approximately 42% of its discharges coming from Kentucky counties outside of the primary service area. As such, BHLEX provides tertiary care services not offered by many hospitals in the surrounding areas including specialty cardiovascular, orthopedic and intensive care services. Approximately 13.4% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 5.2%, as compared to the national average of 6.2%. Baptist Health Paducah (BHPAD) was opened in 1953 in Paducah, Kentucky, the largest city in BHPAD's service area. the hospital is located approximately one and one-half miles from Interstate 64. BHPAD is one of only two hospitals located in Paducah. The primary geographic service area for BHPAD consists of Ballard, Carlisle, Graves, Livingston, Lyon, Marshall and McCracken counties in Kentucky and Massac county in Illinois. BHPAD draws nearly 80% of its discharges from the primary service area. BHPAD serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and skilled nursing that are much needed in the area. Approximately 19.1% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 7.19%, as compared to the national average of 6.2%. Baptist Health LaGrange, (BHLAG) became part of the BHS system in 1992. Baptist Health LaGrange can serve all of the primary healthcare needs of its service area. BHLAG defines its service area by looking at where the majority of its inpatients reside. Approximately 85% of BHLAG's inpatients come from Oldham, Henry, Trimble, and Carroll Counties. Oldham County is a shared service area between Baptist Health Louisville and BHLAG. Approximately 13.1% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 6.2%, as compared to the national average of 6.2%. Schedule H, Part VI, Line 5 Promotion of Community Health The BHS board of directors is comprised of local representatives who, along with the hospital's management and employees, understand that they are responsible for providing high quality health care services to the communities they serve. Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2015, Baptist was able to re-invest over $81 million into the communities in new technology, construction, renovation and systems improvement. BHS hospitals reach out to the community in many ways through: - Conducting health fairs for local schools, businesses and churches. - Participating in fund-raising and other events to help local agencies such as the American Heart Association, Metro United Way, American Cancer Society, Big Brothers and Big Sisters and the American Red Cross. - Donating hospital space for community group meetings. - Participating on community health assessment teams that are dedicated to identifying and addressing local health needs in each of the counties we serve. - Hosting educational programs, including our pre-natal classes, and safe sitter program. - Maintaining necessary, but unprofitable services that meet community needs. - Helping to recruit physicians to underserved areas. - Helping patients coordinate services with other healthcare providers. - Providing resources for support groups, such as cancer recovery groups. - Promoting and providing preventive care services. - Monitoring clinical outcomes in order to ensure quality care. - Committing resources to improving safety and processes of care. - Providing services conveniently accessible by patients. In addition, BHS employees volunteer thousands of hours in community services and leadership. BHS's support for community activities underscores its commitment to improving the lives of those served. because BHS and its employees contribute so much of their time, talents and resources to serve others, communities served by BHS are better places to live and work. Quantification of many of the community benefits is detailed elsewhere in this schedule. However, what the quantifiable amount doesn't measure is the economic benefit derived by the community from BHS being one of the major employers in the area. The economic impact of the wages paid to BHS employees is significant considering the dollars they spend on food, housing, services, and other products. The Internal Revenue Service revenue ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. BHS hospitals operate emergency departments that are open 24 hours a day, 365 days a year and treated over 191,541 emergency patients during fiscal year 2015. BHS and its emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient BHS may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, BHS does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention. Schedule H, Part VI, line 6 Affiliated Health Care System BHS is a nonprofit, tax-exempt organization that owns and operates five hospitals. Baptist Health Richmond, INC. is a nonprofit, tax-exempt affiliate that owns and operates a hospital in Richmond, KY. Baptist Health Madisonville, INC. is a nonprofit, tax-exempt affiliate that owns and operates a hospital in Madisonville, KY. Baptist Community Health Services, INC. is a nonprofit, tax-exempt affiliate that owns and operates rehabilitation centers, urgent care centers, and occupational and physical therapy clinics within the regions surrounding the hospitals. Baptist Health Medical Group, Inc. is a nonprofit, tax-exempt affiliate that owns and operates physician practices. Baptist Healthcare Foundation, INC., Baptist Health Foundation of Greater Louisville, INC., Baptist Health Foundation Corbin, INC., Baptist Health foundation Richmond, Inc., Baptist Health Foundation Madisonville, Inc., Lexington Cardiac Research Foundation, INC., Baptist Health Foundation Lexington, INC., and Baptist Health Foundation Paducah, Inc. are nonprofit, tax-exempt affiliate corporations. Baptist Health Plan, INC. (BHP) is a nonprofit, taxable affiliate health maintenance organization. Baptist Ventures, INC. is an affiliate corporation. Baptist Physicians' Surgery Center is a limited liability corporation, of which Baptist Community Health Services, INC. owns 55%. Pet/Ct Management, LLC is a limited liability corporation, of which Baptist Healthcare System, INC. owns 83%. Baptist Eastpoint Surgery Center, LLC is a limited liability company of which Baptist Community Health Services, INC. owns 80%. Baptist Health Employer Solutions, INC. (BHES), formed in 2010, is a non-profit corporation in which BHS is the sole member. BHES is a network of healthcare providers, hospitals and physicians. BHES's activities and purposes serve to support the charitable activities and operations of BHS. Purchase Health Quality Collaborative, LLC ("PHQC"), formed in 2011, is a non-profit limited liability company whose sole member is BHS. PHQC was formed to support a physician/hospital network established by PHP, working with BHPAD to engage in clinical integration activities. Mercy Regional Emergency Medical System, LLC ("MREMS"), formed in 1996, is a non-profit taxable corporation, which owns and operates an ambulance service in McCracken county, Kentucky in the service area of BH Paducah. BHS owns a 50% interest in MREMS and the remaining 50% interest is owned by Mercy Health System, INC. D.B.A. Lourdes Hospital. All entities are located in the Commonwealth of Kentucky. All entities described in Schedule H, Part VI, Line 6 contributed a combined community benefit amount as follows: Charity Care at Cost $24,242,000 Unreimbursed Medicaid 9,890,000 Community Health Improvement 2,187,000 Health Professions Education 79,000 Subsidized Health Services 9,153,000 Cash and In-Kind Contributions 1,189,000 ----------- Total Community Benefit $46,740,000 false BAPTIST HLTH FNDTN OF GREATER LOUISVILLE 4000 Kresge Way Louisville KY 40207 200292291 501(c)(3) 282944 General support PADUCAH JUNIOR COLLEGE PO Box 7380 Paducah KY 42002 616001156 501(c)(3) 100500 General support HOPE CENTER PO Box 6 Lexington KY 40588 611107296 501(c)(3) 25000 General support PROJECT FIT AMERICA PO BOX 308 BOYeS HOT SPRINGS CA 95416 363730823 501(c)(3) 65400 General support UNIVERSITY OF KENTUCKY ARBORETUM 500 ALUMNI DRIVE Lexington KY 40503 616001218 501(c)(3) 25000 GENERAL SUPPORT AMERICAN HEART ASSOCIATION 240 Whittington Pkwy Louisville KY 40222 135613797 501(c)(3) 52750 General support AMERICAN CANCER SOCIETY 1504 College Way Lexington KY 40502 640329009 501(c)(3) 51450 General support GREATER PADUCAH ECONOMIC DEVELOPMENT COUNCIL PO Box 1155 Paducah KY 420021155 611181577 501(c)(6) 40000 General support SUPPLIES OVER SEAS INTERNATIONAL INC 1500 Arlington Ave Louisville KY 40206 272624272 501(c)(3) 14920 General support MARCH OF DIMES 196 W Lowry Lane Lexington KY 40503 131846366 501(c)(3) 47134 General support PADUCAH SYMPHONY 2101 Broadway Paducah KY 42001 610965156 501(c)(3) 28924 General support FOUR RIVERS CENTER 100 Kentucky Ave Paducah KY 42001 611293428 501(c)(3) 23500 General support COMMERCE LEXINGTON 330 E Main St Ste 100 Lexington KY 40588 610258800 501(c)(6) 25000 General support MISSION LEXINGTON 230 S MLK Blvd Lexington KY 40508 202824933 501(c)(3) 25000 General support ST NICHOLAS FAMILY CLINIC 1733 Broadway Paducah KY 42001 611260945 501(c)(3) 26000 General support GREATER LOUISVILLE INC 614 W Main St 6000 Louisville KY 40202 237084835 501(c)(3) 50000 General support METRO UNITED WAY 334 E Broadway Louisville KY 40202 610444680 501(c)(3) 20500 General support FUND FOR THE ARTS 623 W Main St Louisville KY 40202 610479626 501(c)(3) 25000 General support WOMEN LEADING KENTUCKY PO Box 961 Lexington KY 40511 861120254 501(c)(3) 10000 General support SUSAN KOMEN FOR THE CURE 324 N Ashland Ave Lexington KY 40502 751835298 501(c)(3) 10600 General support LEXINGTON ROTARY CLUB 401 W MAIN STREET Lexington KY 40507 611387338 501(c)(3) 17500 General support AMERICAN DIABETES ASSOCIATION PO BOX 1638 Merrifield VA 22116 131623888 501(c)(3) 6500 General support AMERICAN RED CROSS 1450 NEWTOWN PIKE LEXINGTON KY 40507 530196605 501(c)(3) 6000 General support GODS FOOD PANTRY 119 SOUTH CENTRAL AVENUE SOMERSET KY 42501 310979404 501(c)(3) 8000 General support KSISA 3425 STONY SPRINGS CIR LOUISVILLE KY 40220 611335267 501(c)(3) 6500 GENERAL SUPPORT LEXINGTON PHILHARMONIC SOCIETY 161 N MILL STREET LEXINGTON KY 40507 616033529 501(c)(3) 8000 GENERAL SUPPORT OLDHAM CHAMBER & ECONOMIC DEVELOPMENT 112 S 1ST AVENUE PO BOX 366 LAGRANGE KY 40031 614630770 501(c)(6) 5336 GENERAL SUPPORT OPERATION PARENT 1390 KY-393 LAGRANGE KY 40031 203857612 501(c)(3) 15000 GENERAL SUPPORT SHAPING OUR APPALACHIAN REGION 137 MAIN STREET PIKEVILLE KY 41501 614885874 501(c)(3) 25000 GENERAL SUPPORT KY BAPTIST CONVENTION 13420 Eastpoint Cen Dr LOUISVILLE KY 40223 610549873 501(c)(3) 72520 GENERAL SUPPORT UNITED WAY 333 BROADWAY SUITE 502 PADUCAH KY 42001 610444680 501(c)(3) 14000 GENERAL SUPPORT BAPTIST HEALTH FOUNDATION CORBIN 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 473033550 501(c)(3) 10000 GENERAL SUPPORT BAPTIST HEALTH RICHMOND PO BOX 1600 RICHMOND KY 40476 610461940 501(c)(3) 6500 GENERAL SUPPORT 30 3 Form 990, Schedule I, Part I, Line 2 Description of Organization's Procedures for Monitoring the Use of Grants: Baptist Healthcare System provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed. X X X X X X false true false false false false false false false Janet Norton Secretary 417982 0 142725 0 15245 0 76530 0 32640 0 685122 0 0 0 Mary Lou Tipgos Asst. Secretary(thru 6/20/14) 96240 0 0 0 4398 0 2340 0 14260 0 117238 0 0 0 Stephen Hanson President & CEO 940038 0 654800 0 28553 0 318782 0 42970 0 1985143 0 0 0 William Sisson Vice President 613208 0 210528 0 234928 0 18200 0 37066 0 1113930 0 123782 0 David Gray Vice President 580172 0 167412 0 11087 0 109800 0 36486 0 904957 0 0 0 Carl Herde Treasurer & CFO 604265 0 196630 0 11311 0 111756 0 29713 0 953675 0 0 0 William Brown Vice President (1/1/2014) 490565 0 155000 0 115104 0 9679 0 36200 0 806548 0 19962 0 Timothy Jahn MD Chief Clinical Officer 492247 0 143333 0 11408 0 65949 0 33734 0 746671 0 0 0 Andrew Sears MD Chief Strategy Officer 335704 0 112746 0 108896 0 18200 0 24349 0 599895 0 0 0 Isaac Myers MD Chief Health Integration Offic 411573 0 119313 0 13633 0 57069 0 29271 0 630859 0 0 0 John Barton MD Physician 539420 0 0 0 0 0 16120 0 33312 0 588852 0 0 0 Kenneth Anderson MD Chief Medical Officer, VP 539827 0 40790 0 9016 0 13000 0 33725 0 636358 0 0 0 Susan Stout Tamme Vice President (thru 11/2011) 339752 0 100000 0 9303 0 7543 0 21786 0 478384 0 0 0 Form 990, Schedule J, Part I, Line 4b SIX OFFICERS AND EXECUTIVES WHO PARTICIPATED IN THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ACCRUED AMOUNTS FOR 2014 WHICH IS A PORTION OF THE AMOUNT REPORTED AS DEFERRED COMPENSATION IN SCHEDULE J, COLUMN C. OTHER RETIREMENT AND DEFERRED COMPENSATION REPORTED IN SCHEDULE J, COLUMN C INCLUDE AMOUNTS FOR THE RETIREMENT ACCUMULATION PLAN AND THRIFT PLAN. THE FOLLOWING INDIVIDUALS PARTICIPATE IN AND ACCRUED AMOUNTS FROM THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN: DAVID GRAY $93,680 CARL HERDE $93,556 JANET NORTON $60,410 ISAAC MYERS, MD. $57,069 TIMOTHY JAHN, MD. $59,718 STEPHEN HANSON $308,829 THE FOLLOWING INDIVIDUALS RECEIVED A PAYOUT FROM THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN, A NONQUALIFIED DEFERRED COMPENSATION PLAN, AS THEY ARE FULLY VESTED IN THE PLAN: WILLIAM BROWN $95,513 ANDREW SEARS, MD $91,673 WILLIAM SISSON $220,953 A KY Economic Development Finance Authority 610600439 49126KFM8 2009-02-09 502227848 See Part VI false false false B KY Economic Development Finance Authority 610600439 49126KHR5 2011-12-14 136101238 See Part VI false false false A 46065000 0 502247678 0 0 0 4753545 661234 0 99994925 396837974 0 2010 true false true true B 0 0 136716070 0 13542795 0 1482800 0 0 121712708 1617 0 2015 false false true true A false false true true false 0.00100 0.00000 0.00100 false false false true B false false false false 0 false false false true A false true true false 0 false 0 false true B false true false false 0 false 0 false true A true B true Schedule K, Part I, Line A Description of Purpose Series 2009A and 2009B Revenue Bonds were issued to redeem the 1/99, 1/05 & 12/05 Bonds and for the costs of acquiring and constructing hospital facilities and equipment. Schedule K, Part II, Line 3, Column A The diference between Part I, Column (e) and Part II, Line 3 is due to investment earnings of $19,830. Schedule K, Part I, Line B Description of Purpose Series 2011 Fixed Rate Hospital Revenue Bonds were issued for the costs of certain hospital projects, including a portion of the costs of constructing and equipping a new medical structure connected to the existing hospital building at Baptist Health Lexington (fka Central Baptist Hospital). Schedule K, Part II, Line 3, Column B THE DIFERENCE BETWEEN PART I, COLUMN (E) AND PART II, LINE 3 IS DUE TO INVESTMENT EARNINGS OF $614,833. Schedule K, Part II, Col A, Line 7-8 THE AMOUNTS ON THE 8038 REPRESENTED ESTIMATES OF THE ISSUANCE COSTS AND THE CREDIT ENHANCEMENT FEES AND THE AMOUNTS REPORTED HERE ARE ACTUAL AMOUNTS PAID FROM THE PROCEEDS. Schedule K, Part II, Col B, Line 7-8 THE AMOUNTS ON THE 8038 REPRESENTED ESTIMATES OF THE ISSUANCE COSTS AND THE CREDIT ENHANCEMENT FEES AND THE AMOUNTS REPORTED HERE ARE ACTUAL AMOUNTS PAID FROM THE PROCEEDS. Juanita Baker Family member of director 62026 Wages false Nicole Jackson-Gary Family member of director 42696 Wages false PETCT Management Board member 494964 Equipment services false St Matthews Surgery Center Board member 33402 Management fees false Baptist Physicians Surgery Center Board member 1201369 Lease agreement false Baptist Eastpoint Surgery Center Board member 887910 Mgmt fees & lease agreement false SUSAN D WHITE Family member of director 127824 WAGES false CLARK LESTER FAMILY MEMBER OF DIRECTOR 291696 wages false SCHEDULE L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS ALL TRANSACTIONS REPORTED ON PART IV ARE REPORTED AS ARMS-LENGTH FOR FAIR MARKET VALUE. (A) NAME OF PERSON: JUANITA BAKER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: ROBERT BAKER, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. (A) NAME OF PERSON: NICOLE JACKSON-GARY (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FRANCES HAMILTON, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. (A) NAME OF PERSON: PET/CT MANAGEMENT (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: JANET NORTON AND DAVID GRAY, Former officer and current OFFICER OF BHS, Were officers OF PET/CT MANAGEMENT, A LIMITED LIABILITY CORPORATION, prior to the legal dissolution of the corporation on 7/31/2015. (A) NAME OF PERSON: ST. MATTHEWs SURGERY CENTER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DAVID GRAY, VICE PRESIDENT OF BHS, WAS A BOARD MEMBER OF ST. MATTHEWS SURGERY CENTER. (OPERATIONS CEASED 12/31/2014.) (A) NAME OF PERSON: BAPTIST PHYSICIANS SURGERY CENTER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: WILLIAM SISSON, OFFICER OF BHS IS A BOARD MEMBER OF BAPTIST PHYSICIANS SURGERY CENTER, A LIMITED LIABILITY CORPORATION. (A) NAME OF PERSON: BAPTIST EASTPOINT SURGERY CENTER, LLC (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: SUE STOUT TAMME, former OFFICER OF BHS, IS A BOARD MEMBER OF BAPTIST EASTPOINT SURGERY CENTER, LLC. (A) NAME OF PERSON: SUSAN D. WHITE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: VICTORIA B. BUSTER, DIRECTOR OF BHS, HAS A FAMILY MEMBER EMPLOYED BY BHS. (A) NAME OF PERSON: CLARK LESTER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: REV. TERRY LESTER, DIRECTOR OF BHC, HAS A FAMILY MEMBER EMPLOYED BY BAPTIST HEALTH CORBIN. Form 990, Part VI, Sect A, line 2 Description of Relationships The Board of Directors is made up of executives from related organizations. The following individuals have a business relationship in that they serve on the Board of Directors of the organization and are officers and/or directors of a related organization: William Sisson, Carl Herde, Janet Norton, David Gray, Robert Baker, Lindsey Ingram, Jr., Victoria Buster and Stephen Hanson. Form 990, Part VI, Sect B, line 11b DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 A copy of the 990 is provided to the board of directors prior to the filing of the return. Any questions or comments are addressed by explanation or a change to the form. Form 990, Part VI, Sect B, line 12c DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST Annually the secretary of BHS sends out a conflict of interest questionnaire to each of the directors and officers serving on the board of BHS. After completion, they are returned to the secretary and reviewed by the Board or the Governance Effectiveness Committee for any potential conflicts. A conflict of interest is any circumstance, relationship (financial or otherwise), activity or decision (made in the course of governance, management or professional responsibilities or otherwise) that adversely influences or appears to adversely influence the ability of a Covered Person to: 1) make objective decisions on behalf of BHS and/or 2) act in the best interests of BHS in a manner consistent with the tax-exempt purposes of BHS. The Board or Committee will determine by a majority vote of disinterested directors whether the disclosed Financial or Special Interest may result in a Conflict of Interest. Form 990, Part VI, Sect B, line 15a & 15b COMPENSATION DETERMINATION PROCESS Annually in September, the BHS Compensation Committee reviews the compensation, including base compensation and incentive compensation for the CEO and all officers and key employees of BHS except for the Secretary and Assistant Secretary. Compensation for these employees is reviewed and approved by the CEO of BHS. The BHS Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of BHS. Form 990, Part VI, Sect C, line 19 AVAILability OF GOVerning DOCuments, CONFLICT OF INTEREST POLICY, & FINancial STateMentS TO GENeral PUBLIC: In adherence to the Master Trust Indenture among BHS and U.S. Bank National Association, as Master Trustee, Dated as of February 1, 2009, BHS reports its financial results on a quarterly basis to the Master Trustee who in turn makes them available through Electronic Municipal Market Access. Additionally, the organization will provide any documents open to public inspection upon request. Form 990, Part VII HOURS WORKED FOR RELATED ORGANIZATION Officers for BHS provide services to BHS and its subsidiaries. Hours worked are not tracked on an entity by entity basis. Therefore, all officers' hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week for all entities. Form 990, Part XI, line 9 Other Changes in Net Assets Distribution: POST RETIREMENT CHANGE ($4,389,031) IS DEPRECIATION ($4,410,420) FUNDING FOR STRATEGIC AND CAPITAL NEEDS ($87,535,035) TRANSFER FROM OTHER ASSETS ($15,328,061) --------------- TOTAL OTHER CHANGES ($111,662,547) =============== Purchase Health Quality Collaborative 2501 Kentucky Avenue Paducah KY 42001 454290974 Phys Ntwrk KY -317556 0 BHSI BAPTIST COMMUNITY HEALTH SERVICES INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 611141242 MEDICAL svcs KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH MEDICAL GROUP INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 205497203 PHYSICIAN svc KY 501(c)(3) line 3 bhsi true BAPTIST HEALTHCARE FOUNDATION INC 2701 EASTPOINT PARKWAY LOUISVILLE KY 40223 311122867 FUNDRAISING KY 501(c)(3) line 11a bhsi true BH FOUNDATION GREATER LOUISVILLE 4000 KRESGE WAY LOUISVILLE KY 40207 200292291 FUNDRAISING KY 501(c)(3) line 11a bhsi true BAPTIST HEALTH FOUNDATION LEXINGTON INC 1740 NICHOLASVILLE ROAD 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